U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| x | Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2003
or
| ¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission file number: 0-24260
AMEDISYS, INC.
(Exact Name of Registrant as Specified in Charter)
| Delaware |
11-3131700 | |
| (State or Other Jurisdiction of |
(I.R.S. Employer Identification No.) | |
| Incorporation or Organization) |
11100 Mead Road, Suite 300, Baton Rouge, LA 70816
(Address of principal executive offices including zip code)
(225) 292-2031
(Registrant’s telephone number, including area code)
Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No þ
Number of shares of Common Stock outstanding as of May 8, 2003: 9,456,382 shares
PART I.
| Item 1. |
3 | |||
| Consolidated Balance Sheets as of March 31, 2003 and December 31, 2002 |
3 | |||
| Consolidated Statements of Operations for the Three Months Ended March 31, 2003 and 2002 |
4 | |||
| Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2003 and 2002 |
5 | |||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
14 | ||
| Item 3. |
19 | |||
| Item 4. |
19 | |||
| PART II. |
||||
| OTHER INFORMATION |
||||
| Item 1. |
20 | |||
| Item 2. |
20 | |||
| Item 3. |
20 | |||
| Item 4. |
20 | |||
| Item 5. |
20 | |||
| Item 6. |
20 |
2
AMEDISYS, INC. AND SUBSIDIARIES
As of March 31, 2003 and December 31, 2002
(Dollar amounts in 000’s)
| March 31, 2003 |
December 31, 2002 |
|||||||
| (unaudited) |
||||||||
| ASSETS: |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ |
8,341 |
|
$ |
4,861 |
| ||
| Patient accounts receivable, net of allowance for doubtful accounts of $2,309 in March 2003 and $1,865 in December 2002 |
|
10,227 |
|
|
13,467 |
| ||
| Prepaid expenses |
|
1,929 |
|
|
1,600 |
| ||
| Deferred income taxes |
|
2,080 |
|
|
1,803 |
| ||
| Inventory and other current assets |
|
1,092 |
|
|
857 |
| ||
| Total current assets |
|
23,669 |
|
|
22,588 |
| ||
| Property and equipment, net |
|
7,815 |
|
|
8,257 |
| ||
| Deferred income taxes |
|
774 |
|
|
1,711 |
| ||
| Other assets, net |
|
25,748 |
|
|
25,768 |
| ||
| Total assets |
$ |
58,006 |
|
$ |
58,324 |
| ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ |
1,776 |
|
$ |
2,495 |
| ||
| Accrued expenses: |
||||||||
| Payroll and payroll taxes |
|
6,437 |
|
|
6,504 |
| ||
| Insurance |
|
2,112 |
|
|
2,171 |
| ||
| Income taxes |
|
458 |
|
|
297 |
| ||
| Legal settlements |
|
2,181 |
|
|
1,887 |
| ||
| Other |
|
2,435 |
|
|
2,439 |
| ||
| Current portion of long-term debt |
|
3,970 |
|
|
3,903 |
| ||
| Current portion of obligations under capital leases |
|
2,561 |
|
|
2,476 |
| ||
| Current portion of Medicare liabilities |
|
8,617 |
|
|
8,948 |
| ||
| Total current liabilities |
|
30,547 |
|
|
31,120 |
| ||
| Long-term debt |
|
3,674 |
|
|
4,474 |
| ||
| Obligations under capital leases |
|
534 |
|
|
1,042 |
| ||
| Long-term Medicare liabilities |
|
3,328 |
|
|
3,898 |
| ||
| Other long-term liabilities |
|
826 |
|
|
827 |
| ||
| Total liabilities |
|
38,909 |
|
|
41,361 |
| ||
| STOCKHOLDER’S EQUITY: |
||||||||
| Preferred stock, .001 par value, 5,000,000 shares authorized; none outstanding |
|
— |
|
|
— |
| ||
| Common stock .001 par value, 30,000,000 shares authorized; (9,411,725 and 9,167,976 shares issued at March 31, 2003 and December 31, 2002, respectively) |
|
9 |
|
|
9 |
| ||
| Additional paid-in capital |
|
30,424 |
|
|
29,439 |
| ||
| Treasury stock at cost (4,167 shares of common stock held at March 31, 2003 and December 31, 2002) |
|
(25 |
) |
|
(25 |
) | ||
| Retained earnings (deficit) |
|
(11,311 |
) |
|
(12,460 |
) | ||
| Total stockholder’s equity |
|
19,097 |
|
|
16,963 |
| ||
| Total liabilities and stockholder’s equity |
$ |
58,006 |
|
$ |
58,324 |
| ||
The accompanying notes are an integral part of these consolidated financial statements.
3
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 2003 and 2002
(Unaudited, Dollar amounts in 000’s, except per share data)
| Three months ended |
||||||||
| March 31, 2003 |
March 31, 2002 |
|||||||
| Net service revenue |
$ |
31,132 |
|
$ |
31,850 |
| ||
| Cost of service revenue |
|
12,909 |
|
|
13,869 |
| ||
| Gross margin |
|
18,223 |
|
|
17,981 |
| ||
| General and administrative expenses: |
||||||||
| Salaries and benefits |
|
9,861 |
|
|
9,431 |
| ||
| Other |
|
6,178 |
|
|
5,557 |
| ||
| Total general and administrative expenses |
|
16,039 |
|
|
14,988 |
| ||
| Operating income |
|
2,184 |
|
|
2,993 |
| ||
| Other income and expense: |
||||||||
| Interest income |
|
17 |
|
|
18 |
| ||
| Interest expense |
|
(360 |
) |
|
(578 |
) | ||
| Other income, net |
|
10 |
|
|
131 |
| ||
| Total other expense, net |
|
(333 |
) |
|
(429 |
) | ||
| Income before income taxes |
|
1,851 |
|
|
2,564 |
| ||
| Income tax expense (benefit) |
|
702 |
|
|
(1,438 |
) | ||
| Net income |
$ |
1,149 |
|
$ |
4,002 |
| ||
| Basic weighted average common shares outstanding |
|
9,327,000 |
|
|
7,241,000 |
| ||
| Basic net income per common share |
$ |
0.12 |
|
$ |
0.55 |
| ||
| Diluted weighted average common shares outstanding |
|
9,501,000 |
|
|
7,768,000 |
| ||
| Diluted net income per common share |
$ |
0.12 |
|
$ |
0.52 |
| ||
The accompanying notes are an integral part of these consolidated financial statements.
4
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2003 and 2002
(Unaudited, Dollar amounts in 000’s)
| Three months ended |
||||||||
| March 31, 2003 |
March 31, 2002 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net Income |
$ |
1,149 |
|
$ |
4,002 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
|
740 |
|
|
773 |
| ||
| Provision for bad debts |
|
494 |
|
|
679 |
| ||
| Deferred income taxes |
|
660 |
|
|
(1,519 |
) | ||
| Tax benefit from stock option exercises |
|
9 |
|
|
— |
| ||
| Changes in assets and liabilities: |
||||||||
| Decrease in accounts receivable |
|
2,746 |
|
|
4,489 |
| ||
| (Increase) in inventory and other current assets |
|
(564 |
) |
|
(1,242 |
) | ||
| Decrease (increase) in other assets |
|
20 |
|
|
(51 |
) | ||
| (Decrease) in accounts payable |
|
(719 |
) |
|
(59 |
) | ||
| Increase (decrease) in accrued expenses |
|
848 |
|
|
(294 |
) | ||
| Net cash provided by operating activities |
|
5,383 |
|
|||||