AMEDISYS INC - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - AMEDISYS INC	d8k.htm

Exhibit 99.1

LOGO


Contacts:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Kevin LeBlanc	Jacqueline Chen Valencia
	Director of Investor	Senior Vice President
	Relations	Marketing & Communications
	(225) 299-3391	(225) 295-9688
	kevin.leblanc@amedisys.com	jacqueline.chen@amedisys.com

AMEDISYS REPORTS FOURTH QUARTER REVENUE AND EARNINGS

ISSUES 2011 GUIDANCE

AMEDISYS TO HOST CONFERENCE CALL

TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (February 22, 2011) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the fourth quarter and year ended December 31, 2010 and issues guidance for 2011.

Three-Month Periods Ended December 31, 2010 and 2009

•

Net service revenue of $394.3 million compared to $405.5 million in 2009, a decrease of $11.2 million or 2.8%. Same store agencies decreased $8.0 million and $11.5 million of the decrease related to agencies closed during the year offset by $8.3 million in revenue related to start-up and acquisition agencies.

•

Net income attributable to Amedisys, Inc. of $22.1 million compared to $37.8 million in 2009, a decrease of $15.7 or 41.5%.

•

Diluted earnings per share of $0.77 compared to $1.35 per diluted share in 2009, a decrease of 43.0%. The weighted average number of diluted shares outstanding increased to approximately 28.5 million compared to 28.1 million in 2009.

•

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $47.6 million compared to $71.3 million in 2009, a decrease of 33.2%.

•

After adding back $8.5 million ($5.2 million, net of income tax) or $0.18 per diluted share in certain items*, the following would have been our adjusted results:

•

Net income attributable to Amedisys, Inc. of $27.3 million compared to $37.8 million in 2009, a decrease of 27.9%.

•

Diluted earnings per share of $0.95 compared to $1.35 per diluted share in 2009, a decrease 29.6%.

•

EBITDA of $54.8 million compared to $71.3 million in 2009, a decrease of 23.2%.

Twelve-Month Periods Ended December 31, 2010 and 2009

•

Net service revenue of $1.6 billion compared to $1.5 billion in 2009, an increase of $120.8 million or 8.0%. Same store agencies increased $71.4 million and $70.9 million of the increase is related to start-up and acquisition agencies offset by $21.5 million decrease in revenue from closed agencies.

•

Net income attributable to Amedisys, Inc. of $112.6 million compared to $135.8 million in 2009, a decrease of $23.2 or 17.1%.

•

Diluted earnings per share of $3.95 compared to $4.89 per diluted share in 2009, a decrease of 19.2%. The weighted average number of diluted shares outstanding increased to approximately 28.5 million compared to 27.8 million in 2009.

•

EBITDA of $228.2 million compared to $261.8 million in 2009, a decrease of 12.8%.

•

After adding back $15.9 million ($9.7 million, net of income tax) or $0.34 per diluted share in certain items*, the following would have been our adjusted results:

•

Net income attributable to Amedisys, Inc. of $122.3 million compared to $135.8 million in 2009, a decrease of 10.0%.

•

Diluted earnings per share of $4.29 compared to $4.89 per diluted share in 2009, a decrease 12.3%.

•

EBITDA of $242.0 million compared to $261.8 million in 2009, a decrease of 7.6%.

*	See footnote 2 on page 11 for explanation of these certain items.

William F. Borne, Chief Executive Officer of Amedisys, Inc. stated, “We responded to a number of operational issues in 2010. Many of the actions we initiated in the third quarter contributed to the improved earnings in the fourth quarter and will continue to have a positive impact in 2011. These actions have resulted in a stronger operational infrastructure to grow the business and continue to enhance the quality of care we provide our patients.”

2011 Guidance

•

Net service revenue is anticipated to be in the range of $1.600 billion to $1.650 billion, excluding the effects of future acquisitions, if any are made.

•

Diluted earnings per share is expected to be in the range of $3.00 to $3.30 based on an estimated 29.3 million shares outstanding. This guidance does not include the effects of any share repurchases, future acquisitions, any non-recurring costs that may be incurred during the year or the impact of any future Medicare rate changes.

We urge caution in considering the current trends and 2011 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please dial (800) 967-7149 (Toll free) or (719) 325-2354 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, February 22, 2011. A replay of the conference call will be available through March 1, 2011. The replay dial in number is (888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin number is 9080078.

The call will also be available through our website and for seven days thereafter at the following web address: http://www.amedisys.com/investors.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open agencies, acquire additional agencies and integrate and operate these agencies effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, changes in or developments with respect to any litigation or investigations relating to the Company, including the United States Senate Committee on Finance inquiry, the SEC investigation and the U.S. Department of Justice Civil Investigative Demand and various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus certain items, adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. plus certain items and adjusted diluted earnings per share, defined as diluted earnings per share plus the earnings per share effect of certain items. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under generally accepted accounting principles (“GAAP”). Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except per share data and statistical information)

(Unaudited)

Balance Sheet Information


	As of December 31,
	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	120,295		$	34,485
Patient accounts receivable, net of allowance for doubtful accounts of $20,977 and $26,371		141,549			150,269
Prepaid expenses		9,947			10,279
Other current assets		22,139			23,003

Total current assets		293,930			218,036

Property and equipment, net of accumulated depreciation of $78,074 and $59,780		138,554			91,919
Goodwill		791,412			786,923
Intangible assets, net of accumulated amortization of $17,135 and $11,826		53,393			57,608
Other assets, net		22,536			17,865

Total assets	$	1,299,825		$	1,172,351


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	23,374		$	16,535
Payroll and employee benefits		100,700			119,619
Accrued expenses		36,149			33,035
Obligations due Medicare		4,618			4,618
Current portion of long-term obligations		37,178			44,254
Current portion of deferred income taxes		14,285			11,245

Total current liabilities		216,304			229,306

Long-term obligations, less current portion		144,688			170,899
Deferred income taxes		52,286			29,399
Other long-term obligations		6,832			6,412

Total liabilities		420,110			436,016


Commitments and Contingencies

Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 60,000,000 shares authorized; 29,867,701 and 28,303,216 shares issued; and 29,232,807 and 28,191,174 shares outstanding		29			28
Additional paid-in capital		407,156			363,670
Treasury stock at cost, 634,894 and 112,042 shares of common stock		(14,022	)		(735	)
Accumulated other comprehensive income		25			114
Retained earnings		484,669			372,089

Total Amedisys, Inc. stockholders’ equity		877,857			735,166
Noncontrolling interests		1,858			1,169

Total equity		879,715			736,335

Total liabilities and equity	$	1,299,825		$	1,172,351

Income Statement Information


	For the three-month periods ended December 31,						For the Years Ended December 31,
	2010			2009			2010			2009
Net service revenue	$	394,323		$	405,472		$	1,634,319		$	1,513,459
Cost of service, excluding depreciation and amortization		200,784			197,370			820,460			724,465
General and administrative expenses:
Salaries and benefits		90,439			85,398			357,502			327,738
Non-cash compensation		2,317			2,108			10,634			7,848
Other		47,786			45,714			198,410			174,170
Provision for doubtful accounts		5,145			3,697			19,214			20,178
Depreciation and amortization		9,292			7,630			34,589			28,312

Operating expenses		355,763			341,917			1,440,809			1,282,711

Operating income		38,560			63,555			193,510			230,748
Other (expense) income:
Interest income		61			52			435			213
Interest expense		(2,163	)		(2,575	)		(9,201	)		(11,670	)
Equity in earnings from unconsolidated joint ventures		706			622			3,016			2,343
Miscellaneous, net		(739	)		(219	)		(2,178	)		760

Total other expense, net		(2,135	)		(2,120	)		(7,928	)		(8,354	)

Income before income taxes		36,425			61,435			185,582			222,394
Income tax expense		(14,156	)		(23,397	)		(72,309	)		(86,171	)

Net income		22,269			38,038			113,273			136,223
Net (income) loss attributable to noncontrolling interests		(171	)		(246	)		(693	)		(386	)

Net income attributable to Amedisys, Inc.	$	22,098		$	37,792		$	112,580		$	135,837

Net income per share attributable to Amedisys, Inc. common stockholders:
Basic	$	0.79		$	1.37		$	4.02		$	4.99

Diluted	$	0.77		$	1.35		$	3.95		$	4.89

Weighted average shares outstanding:
Basic		28,105			27,607			28,032			27,231

Diluted		28,528			28,095			28,484			27,759

Cash Flow Information


	For the three-month periods ended December 31,						For the Year Ended December 31,
	2010			2009			2010			2009
Net cash provided by operating activities	$	33,665		$	28,737		$	206,273		$	247,659
Net cash (used in) investing activities		(31,956	)		(32,484	)		(73,616	)		(97,255	)
Net cash used in financing activities		(9,451	)		(6,928	)		(46,847	)		(118,766	)

Net increase (decrease) in cash and cash equivalents		(7,742	)		(10,675	)		85,810			31,638
Cash and cash equivalents at beginning of period		128,037			45,160			34,485			2,847

Cash and cash equivalents at end of period	$	120,295		$	34,485		$	120,295		$	34,485

Supplemental Information – Home Health


	For the Three-Months Ended March 31,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	343.1		$	18.6		$	—		$	361.7	$	301.8	$	2.8		$	304.6
Non-episodic revenue		17.5			1.3			—			18.8		16.2		0.7			16.9

Net service revenue		360.6			19.9			—			380.5		318.0		3.5			321.5
Same store episodic-based revenue growth (3)		14	%

Cost of service		174.6			12.4			—			187.0		150.6		2.9			153.5

Gross Margin		186.0			7.5			—			193.5		167.4		0.6			168.0
Other operating expenses		83.1			10.5			0.1			93.7		76.6		4.0			80.6

Operating income	$	102.9		$	(3.0	)	$	(0.1	)	$	99.8	$	90.8	$	(3.4	)	$	87.4

*Key Statistical Data:*
Admissions:
Episodic-based		61,340			3,938			—			65,278		55,682		430			56,112
Non-episodic		9,085			907			—			9,992		9,419		72			9,491

Total admissions		70,425			4,845			—			75,270		65,101		502			65,603

Same store episodic-based admission growth (3)		10	%

Recertifications:
Episodic-based		48,004			1,711			—			49,715		48,374		390			48,764
Non-episodic		4,740			156			—			4,896		5,744		25			5,769

Total recertifications		52,744			1,867			—			54,611		54,118		415			54,533

Same store episodic-based recertification growth (3)		(1	)%

Completed Episodes:
Episodic-based		100,261			4,835			—			105,096		95,259		1,040			96,299

Visits:
Episodic-based		1,998,384			92,869			—			2,091,253		1,806,274		16,291			1,822,565
Non-episodic		196,715			11,357			—			208,072		193,606		2,749			196,355

Total visits		2,195,099			104,226			—			2,299,325		1,999,880		19,040			2,018,920

Cost per Visit	$	79.53		$	119.00		$	—		$	81.32	$	75.32	$	146.60		$	76.05

Episodic-based visits per completed episode (4)		18.7			16.9			—			18.6		17.7		17.2			17.7


	For the Three-Months Ended June 30,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	356.2		$	13.1		$	—		$	369.3	$	335.0	$	2.7		$	337.7
Non-episodic revenue		17.7			1.0			—			18.7		16.9		0.1			17.0

Net service revenue		373.9			14.1			—			388.0		351.9		2.8			354.7
Same store episodic-based revenue growth (3)		6	%

Cost of service		181.0			9.7			—			190.7		163.9		2.4			166.3

Gross Margin		192.9			4.4			—			197.3		188.0		0.4			188.4
Other operating expenses		87.7			10.7			0.6			99.0		82.5		4.6			87.1

Operating income	$	105.2		$	(6.3	)	$	(0.6	)	$	98.3	$	105.5	$	(4.2	)	$	101.3

*Key Statistical Data:*
Admissions:
Episodic-based		60,110			2,966			—			63,076		57,835		374			58,209
Non-episodic		9,382			706			—			10,088		8,884		59			8,943

Total admissions		69,492			3,672			—			73,164		66,719		433			67,152

Same store episodic-based admission growth (3)		4	%

Recertifications:
Episodic-based		46,375			1,195			—			47,570		51,211		296			51,507
Non-episodic		4,609			127			—			4,736		5,501		25			5,526

Total recertifications		50,984			1,322			—			52,306		56,712		321			57,033

Same store episodic-based recertification growth (3)		(9	)%

Completed Episodes:
Episodic-based		105,676			3,744			—			109,420		101,430		779			102,209

Visits:
Episodic-based		2,037,881			69,572			—			2,107,453		1,956,014		11,787			1,967,801
Non-episodic		203,229			10,054			—			213,283		214,973		2,741			217,714

Total visits		2,241,110			79,626			—			2,320,736		2,170,987		14,528			2,185,515

Cost per Visit	$	80.75		$	122.36		$	—		$	82.18	$	75.48	$	168.46		$	76.10

Episodic-based visits per completed episode (4)		19.4			17.3			—			19.4		18.6		16.9			18.6


	For the Three-Months Ended September 30,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	336.9		$	12.3		$	—		$	349.2	$	339.5	$	3.4		$	342.9
Non-episodic revenue		18.1			1.2			—			19.3		16.2		0.3			16.5

Net service revenue		355.0			13.5			—			368.5		355.7		3.7			359.4
Same store episodic-based revenue growth (3)		(1	)%

Cost of service		177.2			9.0			—			186.2		166.0		2.7			168.7

Gross Margin		177.8			4.5			—			182.3		189.7		1.0			190.7
Other operating expenses		87.6			9.9			3.4			100.9		82.4		5.0			87.4

Operating income	$	90.2		$	(5.4	)	$	(3.4	)	$	81.4	$	107.3	$	(4.0	)	$	103.3

*Key Statistical Data:*
Admissions:
Episodic-based		60,556			2,916			—			63,472		57,087		680			57,767
Non-episodic		9,621			791			—			10,412		8,508		129			8,637

Total admissions		70,177			3,707			—			73,884		65,595		809			66,404

Same store episodic-based admission growth (3)		6	%

Recertifications:
Episodic-based		44,804			1,127			—			45,931		52,348		486			52,834
Non-episodic		4,453			141			—			4,594		5,090		86			5,176

Total recertifications		49,257			1,268			—			50,525		57,438		572			58,010

Same store episodic-based recertification growth (3)		(14	)%

Completed Episodes:
Episodic-based		101,379			3,618			—			104,997		103,979		1,128			105,107

Visits:
Episodic-based		1,986,014			66,353			—			2,052,367		2,020,117		18,753			2,038,870
Non-episodic		197,200			11,041			—			208,241		191,326		6,394			197,720

Total visits		2,183,214			77,394			—			2,260,608		2,211,443		25,147			2,236,590

Cost per Visit	$	81.17		$	116.62		$	—		$	82.38	$	75.08	$	108.07		$	75.45

Episodic-based visits per completed episode (4)		19.2			16.9			—			19.1		18.7		16.2			18.7


	For the Three-Months Ended December 31,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	331.9		$	6.4		$	—		$	338.3	$	345.8	$	10.0		$	355.8
Non-episodic revenue		17.9			0.2			—			18.1		17.5		0.5			18.0

Net service revenue		349.8			6.6			—			356.4		363.3		10.5			373.8
Same store episodic-based revenue growth (3)		(4	)%

Cost of service		176.1			4.6			—			180.7		173.9		7.7			181.6

Gross Margin		173.7			2.0			—			175.7		189.4		2.8			192.2
Other operating expenses		85.9			5.4			4.0			95.3		81.3		8.2			89.5

Operating income	$	87.8		$	(3.4	)	$	(4.0	)	$	80.4	$	108.1	$	(5.4	)	$	102.7

*Key Statistical Data:*
Admissions:
Episodic-based		60,500			1,437			—			61,937		57,887		1,807			59,694
Non-episodic		10,044			115			—			10,159		9,215		237			9,452

Total admissions		70,544			1,552			—			72,096		67,102		2,044			69,146

Same store episodic-based admission growth (3)		5	%

Recertifications:
Episodic-based		44,779			755			—			45,534		50,265		1,387			51,652
Non-episodic		4,393			46			—			4,439		5,112		73			5,185

Total recertifications		49,172			801			—			49,973		55,377		1,460			56,837

Same store episodic-based recertification growth (3)		(11	)%

Completed Episodes:
Episodic-based		103,443			2,032			—			105,475		105,148		3,212			108,360

Visits:
Episodic-based		1,952,738			37,290			—			1,990,028		1,997,040		55,212			2,052,252
Non-episodic		192,445			2,407			—			194,852		200,622		8,247			208,869

Total visits		2,145,183			39,697			—			2,184,880		2,197,662		63,459			2,261,121

Cost per Visit	$	82.09		$	115.13		$	—		$	82.69	$	79.09	$	120.88		$	80.26

Episodic-based visits per completed episode (4)		19.2			18.4			—			19.2		19.0		17.6			19.0


	For the Year Ended December 31,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	1,368.1		$	50.4		$	—		$	1,418.5	$	1,322.1	$	18.9		$	1,341.0
Non-episodic revenue		71.2			3.7			—			74.9		66.8		1.6			68.4

Net service revenue		1,439.3			54.1			—			1,493.4		1,388.9		20.5			1,409.4
Same store episodic-based revenue growth (3)		3	%

Cost of service		708.9			35.7			—			744.6		654.4		15.7			670.1

Gross Margin		730.4			18.4			—			748.8		734.5		4.8			739.3
Other operating expenses		344.3			36.5			8.1			388.9		322.8		21.8			344.6

Operating income	$	386.1		$	(18.1	)	$	(8.1	)	$	359.9	$	411.7	$	(17.0	)	$	394.7

*Key Statistical Data:*
Admissions:
Episodic-based		242,506			11,257			—			253,763		228,491		3,291			231,782
Non-episodic		38,132			2,519			—			40,651		36,026		497			36,523

Total admissions		280,638			13,776			—			294,414		264,517		3,788			268,305

Same store episodic-based admission growth (3)		6	%

*Recertifications:*
Episodic-based		183,962			4,788			—			188,750		202,198		2,559			204,757
Non-episodic		18,195			470			—			18,665		21,447		209			21,656

Total recertifications		202,157			5,258			—			207,415		223,645		2,768			226,413

Same store episodic-based recertification growth (3)		(9	)%

Completed Episodes:
Episodic-based		410,759			14,229			—			424,988		405,816		6,159			411,975

Visits:
Episodic-based		7,975,017			266,084			—			8,241,101		7,779,445		102,043			7,881,488
Non-episodic		789,589			34,859			—			824,448		800,527		20,131			820,658

Total visits		8,764,606			300,943			—			9,065,549		8,579,972		122,174			8,702,146

Cost per Visit	$	80.88		$	118.77		$	—		$	82.13	$	76.26	$	127.91		$	77.00

Episodic-based visits per completed episode (4)		19.2			17.2			—			19.1		18.5		17.2			18.5

(1)	Exit activity includes the results for the periods subsequent to the agencies closures or consolidations.

(2)	Agencies for the prior period which are not considered same store agencies during 2010 (i.e. agencies closed or consolidated in current period or unopened startups).

(3)	Same store episodic-based revenue, admissions or recertifications growth is the percent increase in our same store episodic-based revenue, admissions or recertifications for the period as a percent of the same store episodic-based revenue, admissions or recertifications of the prior period.

(4)	Episodic-based visits per completed episode as the home health episodic-based visits on completed episodes divided by the home health episodic-based episodes completed during the period.

Supplemental Information – Hospice


	For the Three-Months Ended March 31,
	2010										2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)		Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Medicare revenue	$	25.4		$	5.4		$	—	$	30.8	$	19.1	$	—		$	19.1
Non-Medicare revenue		1.4			0.3			—		1.7		1.2		—			1.2

Net service revenue		26.8			5.7			—		32.5		20.3		—			20.3
Same store medicare revenue growth (3)		33	%

Cost of service		13.4			3.7			—		17.1		11.2		0.3			11.5

Gross margin		13.4			2.0			—		15.4		9.1		(0.3	)		8.8
Other operating expenses		5.8			2.6			—		8.4		5.3		0.4			5.7

Operating income	$	7.6		$	(0.6	)	$	—	$	7.0	$	3.8	$	(0.7	)	$	3.1

*Key Statistical Data:*
Hospice admits		2,237			556			—		2,793		1,983		—			1,983
Hospice days		195,966			40,553			—		236,519		153,914		—			153,914
Average daily census		2,177			451			—		2,628		1,710		—			1,710
Revenue per day	$	136.54		$	141.08		$	—	$	137.32	$	132.00	$	—		$	132.00
Cost of service per day	$	68.03		$	92.68		$	—	$	72.26	$	73.02	$	—		$	74.68
Average length of stay		89			79			—		87		74		—			74


	For the Three-Months Ended June 30,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Medicare revenue	$	26.9		$	5.4		$	—		$	32.3	$	22.0	$	—		$	22.0
Non-Medicare revenue		1.7			0.3			—			2.0		1.2		—			1.2

Net service revenue		28.6			5.7			—			34.3		23.2		—			23.2
Same store medicare revenue growth (3)		22	%

Cost of service		14.8			3.8			—			18.6		11.8		0.3			12.1

Gross margin		13.8			1.9			—			15.7		11.4		(0.3	)		11.1
Other operating expenses		5.9			2.7			—			8.6		5.5		0.5			6.0

Operating income	$	7.9		$	(0.8	)	$	—		$	7.1	$	5.9	$	(0.8	)	$	5.1

*Key Statistical Data:*
Hospice admits		2,364			510			—			2,874		2,146		—			2,146
Hospice days		215,375			42,797			—			258,172		177,248		—			177,248
Average daily census		2,367			470			—			2,837		1,948		—			1,948
Revenue per day	$	132.87		$	133.03		$	—		$	132.90	$	131.90	$	—		$	131.90
Cost of service per day	$	68.63		$	89.07		$	—		$	72.02	$	66.60	$	—		$	68.34
Average length of stay		87			87			—			87		77		—			77

	For the Three-Months Ended September 30,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Medicare revenue	$	30.7		$	3.5		$	—		$	34.2	$	27.0	$	—		$	27.0
Non-Medicare revenue		1.8			0.2			—			2.0		1.9		—			1.9

Net service revenue		32.5			3.7			—			36.2		28.9		—			28.9
Same store medicare revenue growth (3)		14	%

Cost of service		17.5			2.6			—			20.1		14.6		0.3			14.9

Gross margin		15.0			1.1			—			16.1		14.3		(0.3	)		14.0
Other operating expenses		7.1			2.3			0.3			9.7		6.8		0.7			7.5

Operating income	$	7.9		$	(1.2	)	$	(0.3	)	$	6.4	$	7.5	$	(1.0	)	$	6.5

*Key Statistical Data:*
Hospice admits		2,432			350			—			2,782		2,339		3			2,342
Hospice days		247,053			26,936			—			273,989		218,112		127			218,239
Average daily census		2,685			293			—			2,978		2,371		1			2,372
Revenue per day	$	131.73		$	134.17		$	—		$	131.97	$	131.34	$	120.17		$	131.34
Cost of service per day	$	70.73		$	96.61		$	—		$	73.28	$	66.77	$	—		$	68.17
Average length of stay		91			61			—			87		84		49			83

	For the Three-Months Ended December 31,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Medicare revenue	$	34.2		$	1.7		$	—		$	35.9	$	29.2	$	0.9		$	30.1
Non-Medicare revenue		2.0			—			—			2.0		1.5		0.1			1.6

Net service revenue		36.2			1.7			—			37.9		30.7		1.0			31.7
Same store medicare revenue growth (3)		17	%

Cost of service		18.6			1.5			—			20.1		15.1		0.8			15.9

Gross margin		17.6			0.2			—			17.8		15.6		0.2			15.8
Other operating expenses		6.5			1.2			(0.1	)		7.6		7.5		0.9			8.4

Operating income	$	11.1		$	(1.0	)	$	0.1		$	10.2	$	8.1	$	(0.7	)	$	7.4

*Key Statistical Data:*
Hospice admits		2,905			156			—			3,061		2,431		100			2,531
Hospice days		269,872			12,657			—			282,529		228,457		6,719			235,176
Average daily census		2,933			138			—			3,071		2,483		73			2,556
Revenue per day	$	134.05		$	140.90		$	—		$	134.35	$	135.02	$	136.63		$	135.07
Cost of service per day	$	69.18		$	114.63		$	—		$	71.21	$	65.97	$	120.62		$	67.53
Average length of stay		90			49			—			88		91		58			90


	For the Year Ended December 31,
	2010											2009
	Same Store			Startups/ Acquisitions			Exit Activity (1)			Total		Same Store		Other (2)			Total
*Financial Information (in millions):*
Medicare revenue	$	117.2		$	16.0		$	—		$	133.2	$	97.3	$	0.9		$	98.2
Non-Medicare revenue		6.9			0.8			—			7.7		5.8		0.1			5.9

Net service revenue		124.1			16.8			—			140.9		103.1		1.0			104.1
Same store medicare revenue growth (3)		20	%

Cost of service		64.3			11.6			—			75.9		52.7		1.7			54.4

Gross margin		59.8			5.2			—			65.0		50.4		(0.7	)		49.7
Other operating expenses		25.3			8.8			0.2			34.3		25.1		2.5			27.6

Operating income	$	34.5		$	(3.6	)	$	(0.2	)	$	30.7	$	25.3	$	(3.2	)	$	22.1

*Key Statistical Data:*
Hospice admits		9,938			1,572			—			11,510		8,899		103			9,002
Hospice days		928,266			122,943			—			1,051,209		777,731		6,846			784,577
Average daily census		2,543			337			—			2,880		2,131		19			2,150
Revenue per day	$	133.68		$	136.75		$	—		$	134.04	$	132.68	$	136.32		$	132.71
Cost of service per day	$	69.22		$	94.54		$	—		$	72.18	$	67.73	$	246.54		$	69.29
Average length of stay		89			75			—			87		82		61			82

(1)	Exit activity includes the results for the periods subsequent to the agencies closure or consolidation.

(2)	Agencies for the prior period which are not considered same store agencies during 2010 (i.e. agencies closed or consolidated in current period or unopened startups).

(3)	Same Store Medicare revenue growth is the percent increase in our same store Medicare revenue for the period as a percent of the same store Medicare revenue of the prior period.

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA

(Financial Data in thousands)

(Unaudited)


	For the three-month periods ended December 31,						For the Year Ended December 31,
	2010			2009			2010			2009
Financial Data:
Depreciation and amortization expense	$	9,292		$	7,630		$	34,589		$	28,312
Capital expenditures	$	26,436		$	10,361		$	63,971		$	36,359
Key Statistical Data:
General
Number of home health agencies (1)		486			521			486			521
Number of hospice agencies (1)		67			65			67			65
Number of agencies acquired (2)		1			1			4			20
Number of agencies opened as start-up locations (2)		6			17			48			48
Days revenue outstanding, net (3)		32.8			33.9			32.8			33.9
Same Store episodic-based revenue growth (4)		(4	)%		13	%		3	%		16	%
Internal episodic-based revenue growth (5)		(5	)%		15	%		4	%		18	%
Same Store episodic-based admission growth (4)		5	%		5	%		6	%		3	%
Internal episodic-based admission growth (5)		4	%		7	%		8	%		6	%
Same Store episodic-based recertification growth (4)		(11	)%		1	%		(9	)%		7	%
Internal episodic-based recertification growth (5)		(12	)%		2	%		(9	)%		8	%
Home Health
Average episodic-based revenue per completed episode (6)	$	3,294		$	3,260		$	3,311		$	3,166

(1)	Includes the closure/consolidation of 57 and 78 home health agencies and 6 and 7 hospice agencies during the three and twelve-month periods ended December 31, 2010, respectively.

(2)	Includes both home health and hospice agencies.

(3)

Our calculation of days revenue outstanding, net at December 31, 2010 and 2009 is derived by dividing our ending net patient accounts receivable (i.e. net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three-month period ended December 31, 2010 and 2009, respectively.

(4)	Same store eposodic-based revenue, admissions or recertifications growth is the percent increase in our same store episodic-based revenue, admissions or recertifications for the period as a percent of the same store episodic-based revenue, admissions or recertifications of the prior period.

(5)	Internal episodic-based revenue, admission or recertification growth is the percent increase in our base/start-up episodic-based revenue, admissions or recertifications for the period as a percent of the total episodic-based revenue, admissions or recertifications of the prior period.

(6)	Average episodic-based revenue per completed episode is the average episodic-based revenue earned for each episodic-based completed episode of care.

AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA


	For the three-month periods ended December 31,					For the Year Ended December 31,
	2010			2009		2010			2009
Net income attributable to Amedisys, Inc.	$	22,098		$	37,792	$	112,580		$	135,837
Add:
Provision for income taxes		14,156			23,397		72,309			86,171
Interest expense, net		2,102			2,523		8,766			11,457
Depreciation and amortization		9,292			7,630		34,589			28,312

EBITDA (1)	$	47,648		$	71,342	$	228,244		$	261,777


Add:
Certain items (2)		8,467			—		15,947			—
Intangible write-off (2)		(1,343	)		—		(2,216	)		—

Adjusted EBITDA (3)	$	54,772		$	71,342	$	241,975		$	261,777

*Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation*
	For the three-month periods ended December 31,					For the Year Ended December 31,
	2010			2009		2010			2009
Net income attributable to Amedisys, Inc.	$	22,098		$	37,792	$	112,580		$	135,837
Add:
Certain items (2)		5,165			—		9,728			—

Adjusted net income attributable to Amedisys, Inc. (4)	$	27,263		$	37,792	$	122,308		$	135,837

*Adjusted Diluted Earnings Per Share Reconciliation*
	For the three-month periods ended December 31,					For the Year Ended December 31,
	2010			2009		2010			2009
Net income attributable to Amedisys, Inc. common stockholders - diluted	$	0.77		$	1.35	$	3.95		$	4.89
Add:
Certain items (2)		0.18			—		0.34			—

Adjusted net income attributable to Amedisys, Inc. common stockholders - diluted (5)	$	0.95		$	1.35	$	4.29		$	4.89

(1)

EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(2)

During the three-month period December 31, 2010 we incurred certain costs associated with the realignment of operations including severance and legal expenses related to the United States Senate Committee on Finance inquiry and SEC investigation. We also incurred costs associated with our exit activities for the three-and twelve month periods ended December 31, 2010, which includes $1.3 million and $2.2 million respectively, for the write-off of intangibles. During the three-month period ended September 30, 2010 we settled our Georgia indigent care liability for less than previously accrued and during the three-month period June 30, 2010 we received the Centers for Medicare and Medicaid Services (“CMS”) bonus payments as the result of a pay for performance demonstration. The following details these items for the three and twelve-month periods ended December 31, 2010:


	For the three-month period ended December 31, 2010									For the Year Ended December 31, 2010
	Income (Expense)			Net of tax			Diluted EPS			Income (Expense)			Net of tax			Diluted EPS
Georgia indigent care liability	$	—		$	—		$	—		$	3,676		$	2,242		$	0.08
CMS bonus payment		—			—			—			3,587			2,188			0.08
Exit activities		(5,261	)		(3,210	)		(0.11	)		(13,601	)		(8,297	)		(0.29	)
Certain costs		(3,206	)		(1,955	)		(0.07	)		(9,609	)		(5,861	)		(0.21	)

Total	$	(8,467	)	$	(5,165	)	$	(0.18	)	$	(15,947	)	$	(9,728	)	$	(0.34	)

(3)

Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization plus certain items as described in footnote 2. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(4)

Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. plus certain items as described in footnote 2. Adjusted net income attributable to Amedisys, Inc. should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted net income attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

(5)

Adjusted diluted earnings per share is defined as diluted earnings per share plus the earnings per share effect of certain items as described in footnote 2. Adjusted diluted earnings per share should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators or operating performance. This calculation of adjusted diluted earnings per share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

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