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 June 30, 2004
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, par value $.001, outstanding as of August 4, 2004: 12,371,955 shares
1
FINANCIAL INFORMATION
Item 1. Financial Statements
2
Item 1. FINANCIAL STATEMENTS
AMEDISYS, INC. AND SUBSIDIARIES
As of June 30, 2004 and December 31, 2003
(Amounts in thousands, except share data)
| (Unaudited) | ||||||||
| June 30, 2004 |
December 31, 2003 |
|||||||
| ASSETS: |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 22,279 | $ | 29,779 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $3,624 at June 30, 2004 and $3,008 at December 31, 2003 |
19,841 | 15,185 | ||||||
| Prepaid expenses |
2,268 | 1,103 | ||||||
| Deferred income taxes |
— | 1,650 | ||||||
| Inventory and other current assets |
1,123 | 1,879 | ||||||
| Total current assets |
45,511 | 49,596 | ||||||
| Property and equipment, net |
8,121 | 7,219 | ||||||
| Goodwill and other assets, net |
57,383 | 35,658 | ||||||
| Total assets |
$ | 111,015 | $ | 92,473 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ | 3,255 | $ | 3,340 | ||||
| Accrued expenses: |
||||||||
| Payroll and payroll taxes |
13,536 | 9,163 | ||||||
| Insurance |
2,908 | 2,336 | ||||||
| Income taxes |
1,400 | 575 | ||||||
| Legal settlements |
1,367 | 1,248 | ||||||
| Other |
3,919 | 2,818 | ||||||
| Deferred income taxes |
532 | — | ||||||
| Current portion of long-term debt |
3,875 | 3,974 | ||||||
| Current portion of obligations under capital leases |
456 | 1,217 | ||||||
| Current portion of Medicare liabilities |
9,326 | 9,347 | ||||||
| Total current liabilities |
40,574 | 34,018 | ||||||
| Long-term debt |
921 | 2,696 | ||||||
| Obligations under capital leases |
486 | 391 | ||||||
| Deferred income taxes |
3,725 | 2,756 | ||||||
| Other long-term liabilities |
1,213 | 1,213 | ||||||
| Total liabilities |
46,919 | 41,074 | ||||||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Preferred stock, $.001 par value, 5,000,000 shares authorized; none issued and outstanding |
— | — | ||||||
| Common stock, $.001 par value, 30,000,000 shares authorized; 12,359,648 and 11,908,146 shares issued at June 30, 2004 and December 31, 2003, respectively |
12 | 12 | ||||||
| Additional paid-in capital |
58,980 | 55,465 | ||||||
| Treasury stock at cost, 4,167 shares held |
(25 | ) | (25 | ) | ||||
| Retained earnings (deficit) |
5,129 | (4,053 | ) | |||||
| Total stockholders’ equity |
64,096 | 51,399 | ||||||
| Total liabilities and stockholders’ equity |
$ | 111,015 | $ | 92,473 | ||||
See accompanying notes to consolidated financial statements.
3
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and six months ended June 30, 2004 and 2003
(Amounts in thousands, except per share data)
| (Unaudited) |
||||||||||||||||
| For the three months ended June 30 |
For the six months ended June 30 |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Income: |
||||||||||||||||
| Net service revenue |
$ | 56,896 | $ | 32,194 | $ | 104,235 | $ | 63,326 | ||||||||
| Cost of service revenue (excluding depreciation and amortization) |
23,613 | 13,100 | 43,093 | 26,009 | ||||||||||||
| Gross margin |
33,283 | 19,094 | 61,142 | 37,317 | ||||||||||||
| General and administrative expenses: |
||||||||||||||||
| Salaries and benefits |
14,794 | 9,881 | 27,351 | 19,742 | ||||||||||||
| Other |
10,406 | 6,657 | 18,803 | 12,835 | ||||||||||||
| Total general and administrative expenses |
25,200 | 16,538 | 46,154 | 32,577 | ||||||||||||
| Operating income |
8,083 | 2,556 | 14,988 | 4,740 | ||||||||||||
| Other income (expense): |
||||||||||||||||
| Interest income |
44 | 24 | 96 | 41 | ||||||||||||
| Interest expense |
(100 | ) | (341 | ) | (224 | ) | (701 | ) | ||||||||
| Miscellaneous, net |
(3 | ) | 199 | (7 | ) | 209 | ||||||||||
| Total other expense, net |
(59 | ) | (118 | ) | (135 | ) | (451 | ) | ||||||||
| Income before income taxes |
8,024 | 2,438 | 14,853 | 4,289 | ||||||||||||
| Income tax expense |
3,063 | 924 | 5,671 | 1,626 | ||||||||||||
| Net income |
$ | 4,961 | $ | 1,514 | $ | 9,182 | $ | 2,663 | ||||||||
| Basic weighted average common shares outstanding |
12,281 | 9,477 | 12,144 | 9,402 | ||||||||||||
| Basic income per common share: |
||||||||||||||||
| Net income |
$ | 0.40 | $ | 0.16 | $ | 0.76 | $ | 0.28 | ||||||||
| Diluted weighted average common shares outstanding |
12,804 | 9,666 | 12,683 | 9,583 | ||||||||||||
| Diluted income per common share: |
||||||||||||||||
| Net income |
$ | 0.39 | $ | 0.16 | $ | 0.72 | $ | 0.28 | ||||||||
See accompanying notes to consolidated financial statements.
4
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2004 and 2003
(Amounts in thousands)
| (Unaudited) |
||||||||
| Six months ended June 30 |
||||||||
| 2004 |
2003 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | 9,182 | $ | 2,663 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
1,805 | 1,502 | ||||||
| Provision for bad debts |
1,619 | 998 | ||||||
| Deferred income taxes |
3,151 | 1,529 | ||||||
| Tax benefit from stock option exercises |
1,050 | 9 | ||||||
| Compensation expense |
26 | — | ||||||
| Changes in assets and liabilities: |
||||||||
| (Increase) decrease in accounts receivable |
(6,276 | ) | 3,680 | |||||
| (Increase) decrease in inventory and other current assets |
(354 | ) | 104 | |||||
| (Increase) decrease in other assets |
(1,029 | ) | 31 | |||||
| Decrease in accounts payable |
(85 | ) | (466 | ) | ||||
| Decrease in Medicare liabilities |
(21 | ) | (232 | ) | ||||
| Increase in accrued expenses |
6,987 | 2,088 | ||||||
| Net cash provided by operating activities |
16,055 | 11,906 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Proceeds from sale of property and equipment |
23 | — | ||||||
| Purchase of property and equipment |
(1,884 | ) | (623 | ) | ||||
| Cash used in purchase acquisitions, net |
(20,742 | ) | — | |||||
| Net cash used in investing activities |
(22,603 | ) | (623 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Proceeds from issuance of notes payable |
417 | 679 | ||||||
| Payments on notes payable and capital leases |
(3,262 | ) | (3,472 | ) | ||||
| Decrease in Medicare liabilities, net |
— | (1,375 | ) | |||||
| Expenses incurred from 2003 private placement of stock, net |
(108 | ) | — | |||||
| Proceeds from issuance of stock from Employee Stock Purchase Plan |
350 | 312 | ||||||
| Proceeds from issuance of stock upon exercise of stock options and warrants |
1,651 | 513 | ||||||
| Net cash used in financing activities |
(952 | ) | (3,343 | ) | ||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS </ | ||||||||