Attached files
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| 8-K - FORM 8-K - AMEDISYS INC | d231867d8k.htm |
| EX-99.2 - RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES - AMEDISYS INC | d231867dex992.htm |
 Investor Presentation
Leading Home Health Care & Hospice
September 2011
Exhibit 99.1 |
 Leading Home Health & Hospice
Forward-looking statements
This presentation may include forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon current expectations and assumptions about our
business that are subject to a variety of risks and uncertainties that could
cause actual
results
to
differ
materially
from
those
described
in
this
presentation.
You
should not rely on forward-looking statements as a prediction of future events.
Additional
information
regarding
factors
that
could
cause
actual
results
to
differ
materially from those discussed in any forward-looking statements are described
in reports and registration statements we file with the SEC, including our
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, copies of which are available
on the Amedisys internet
website
http://www.amedisys.com
or
by
contacting
the
Amedisys
Investor
Relations department at (800) 467-2662.
We disclaim any obligation to update any 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.
2
www.amedisys.com
NASDAQ: AMED
We encourage everyone to visit the
Investors Section of our website at
www.amedisys.com, where we
have posted additional important
information such as press releases,
profiles concerning our business
and clinical operations and control
processes, and SEC filings.
We intend to use our website to
expedite public access to time-
critical information regarding the
Company in advance of or in lieu of
distributing a press release or a
filing with the SEC disclosing the
same information. |
 Leading Home Health & Hospice
Company overview
1
3
•
Founded in 1982, publicly listed 1994
•
575 locations in 45 states
•
Leading provider of home health services
-
Services include skilled nursing and therapy
services
•
Growing hospice business
•
94% of Home Health revenue is episodic
based (both Medicare & non-Medicare)
17,000 employees
Home Health Division:
-Total admits. and recerts. in 2Q11 ~ 118,000
-8.5 million visits run rate in 2011
Hospice Division:
-
Average daily census = 3,784
-
Average length of stay = 86 days
2011 revenue guidance = $1.475 -
$1.5 billion
2
1
For the quarter ended June 30, 2011
2
Provided
as
of
the
date
of
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
August
2,
2011.
Stats
Revenue Mix
13%
Home Health
Hospice
87% |
 Leading Home Health & Hospice
Management team
William F. Borne, Chairman and CEO
Founder and CEO since 1982
29 years leading the industry
Michael D. Snow, Chief Operating Officer
31 years leading health care operations
Wellmont, HealthSouth, HCA
Tim Barfield, Chief Development Officer
16 years of corporate development experience
Gov. Bobby Jindal , Vinson & Elkins, The Shaw Group
Dale E. Redman, CPA, Chief Financial Officer
35 years of senior level financial experience
Winward Capital, United Companies Financial
4
Jeffrey D. Jeter, Chief Compliance Officer
15 years of health care law and compliance expertise
Former Medicaid prosecutor, LA AG for DOJ
Michael O. Fleming, Chief Medical Officer
29 years as a family physician
Former President of AAFP, first industry CMO
G. Patrick Thompson, Chief Information Officer
24 years of corporate administration experience
Arthur Andersen, Turner Industries, The Shaw Group
David R. Bucey, General Counsel
25 years of experience in corporate law
Coca-Cola Company, McKenna Long & Aldridge |
 Leading Home Health & Hospice
Agency Locations
5
485 -
Home Health locations
90 -
Hospice locations
*As of June 30, 2011 |
 Leading Home Health & Hospice
Home Health Division
6
•
Industry leader
–
Strong national footprint –
485 locations across 45 states as of June 30, 2011
–
$326 million revenue in 2Q 2011
•
Strong clinical quality
•
Experienced divisional leadership
•
World-class technology platform
•
Well positioned to capitalize
on organic and consolidation
opportunities
$1,118
$1,409
$1,493
$388
$326
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2008
2009
2010
2Q 2010
2Q 2011
Home Health Revenue |
 Leading Home Health & Hospice
Hospice Division
7
•
90 locations across 25 states as of June 30, 2011
–
$47 million revenue in 2Q 2011
•
Operational efficiencies drive strong margins
•
Quality care drives referral growth
•
Partnered with the country’s largest and leading Home Health company
–
Offering comprehensive
continuum of at-home care
–
Collective resources to drive
operational and clinical
excellence
–
Cross referral opportunities
to drive growth
$69
$104
$141
$34
$47
$-
$20
$40
$60
$80
$100
$120
$140
$160
2008
2009
2010
2Q 2010
2Q 2011
Hospice Revenue |
 Leading Home Health & Hospice
Medicare market size
8
Source: Congressional Budget Office baseline reports (Home health figures from 2010
report, Hospice figures from 2009 report) 2009-2019
CAGR
Home Health
9.35%
Hospice
5.40%
$18
$20
$21
$23
$25
$28
$31
$33
$37
$40
$44
$13
$13
$14
$15
$15
$16
$17
$18
$19
$20
$22
$-
$10
$20
$30
$40
$50
$60
$70
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Medicare Reimbursement
Home Health
Hospice |
 Leading Home Health & Hospice
Value Proposition
•
Home Health is the lowest total cost, lowest daily cost, and provides care
over the longest period of time
9
*Source: National Association for Home Health & Hospice, Medpac June 2010 Data
Book Hospital
SNF
Home Health
Average Cost of Stay
$28,191
$14,688
$5,293
Average Length of Stay
4.9 days
27 days
106 days
Per Diem Cost
$5,765
$544
$50 |
 Our
Long Term Operating Tenets 10
Leading Home Health & Hospice
Clinical
Excellence
Growth
Efficiency |
 Leading Home Health & Hospice
Focus on Clinical Outcomes
Amedisys vs. Footprint –
Outcomes March 2011
•
Exceeded or met 8 out of 8 outcomes vs. footprint of reported measures
*
Lower % is better
Source: Medicare
11
58
52
67
69
70
90
53
28
52
51
61
64
58
88
43
28
0
10
20
30
40
50
60
70
80
90
100
Amedisys
Footprint
Impovement in
Ambulation
Improvement in
Transferring
Improvement in
Bathing
Improvement in
Pain
Breathing
Improvement
Improvement of
Surgical Wounds
Improvement in
Mgmt of Oral
Meds
Acute Care
Hospitalization*
Growth
Efficiency
Clinical
Excellence |
 Leading Home Health & Hospice
Quality Care Initiatives
12
Leading Home Health & Hospice
Improve Patient
Outcome –
Reduce ER &
Hospitalization
Encore/
Telehealth
Nurse
Practitioners
Advanced
Chronic
Care Mgmt.
Evidence
based Best
Practices
Care
Transitions
Care Team
Conference
Growth
Efficiency
Clinical
Excellence
- |
 Leading Home Health & Hospice
Growth -
Organic
13
Tactical growth initiatives
•
Care center action plans
•
Heightened focus on low
performers
•
Leading indicators
•
Measure effectiveness
•
New regional leadership
•
Training & development
•
CRM tool / market intel
•
Incentive alignment
Growth
Efficiency
Excellence
Same store episodic-based admission growth is the percent increase in our same store
episodic-based admissions for the period as a percent of the same store episodic-based admissions of the
prior period.
Clinical
3%
6%
-4%
15%
12%
17%
-10%
-5%
0%
5%
10%
15%
20%
2009
2010
2Q 2011
Same Store Episodic-Based
Admission Growth
1
Home Health
Hospice |
 Leading Home Health & Hospice
Growth -
External
Industry Consolidation
–
11,400 home health
provider numbers
1
–
3,400 hospice provider
numbers
1
–
12-15% public company
market share
2
Focus
–
CON markets
–
Geographic expansion
–
Market penetration
–
Hospital JV’s
Continuum of
Care
Traditional Investments
Complementary Investments
–
Care management capabilities
–
Revenue diversification
–
Disease Management
14
1
Source: MedPac June 2011 data book
2
Source: CBO, NHE and public company 10-K’s
Growth
Clinical
Excellence
Efficiency |
 Leading Home Health & Hospice
Beacon Acquisition
•
Premier hospice in Northeast
–
23 locations
–
$80 million in revenue
–
Quality provider
–
Strong leadership and operations
Beacon Hospice Care Centers
Amedisys Hospice Care Centers
Amedisys Home Health Care Centers
15
Efficiency
Clinical
Excellence
Growth |
 Leading Home Health & Hospice
Efficiency –
Systems Infrastructure
16
Efficiency
Clinical
Excellence
Growth
•
Untethers
clinical staff
from bricks +
mortar
•
Accuracy
•
Completeness
•
At the bedside
•
F2F
•
Peoplesoft
•
Current/ future
growth
•
Proprietary
•
Home Care
design
•
F2F
AMS
ERP
System
Field
refresh
Point-
of-care |
 Leading Home Health & Hospice
Industry Challenges/Opportunities
17
Challenges
Opportunities
•
F2F
•
Therapy reassessment
•
2012 and future
reimbursement /rebasing
•
Regulatory focus
•
Demographics
•
Low cost setting
•
Quality differentiation
•
Value based pricing
•
Consolidation
•
Health care reform
•
Near-term hospice reimbursement
stability
Future state
•
Educating payors, policy
makers and health systems on
the value of a continuum
model
•
Regulatory inefficiencies
•
Risk sharing/capitation
•
Seamless patient care
•
ACO’s / Medical home
•
System savings |
 Leading Home Health & Hospice
Investment Rationale
•
Solid industry growth rate
•
IT leader
•
Clinical quality and innovation
•
Low cost setting in high cost healthcare industry
•
Scalable infrastructure
•
Expected industry consolidation
•
Strong liquidity and capital position
18
Tremendous
Opportunities |
 Leading Home Health & Hospice
Financial Review
19 |
 Leading Home Health & Hospice
Financial highlights
20
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2004
2005
2006
2007
2008
2009
2010
2011
Revenue
Projected Revenue
EPS
Projected EPS |
 Leading Home Health & Hospice
21
Summary financial results
($ in millions, except per share data and
DSO)
2009
2010
2Q10
2Q11
Net revenue
$1,513.5
$1,634.3
$422.3
$373.7
Gross margin
789.0
813.9
213.1
180.6
CFFO
247.7
206.3
54.4
24.0
Adjusted EBITDA
1
261.8
242.0
64.6
44.1
Adjusted Fully-diluted EPS
2
$4.89
$4.29
$1.15
$0.67
Days Sales Outstanding
33.9
32.8
32.5
36.0
1
Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income
taxes, net interest (income) expense, and depreciation and amortization plus certain
adjustments (i.e Certain items incurred in 2010 and 2011 which are detailed in our Form 8-K filed with the Securities and
Exchange Commission on February 22, 2011 and August 2, 2011, respectively). 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.
2
Adjusted diluted earnings per share is defined as diluted earnings per share plus the earnings per
share effect of certain adjustments (i.e. Certain items incurred in 2010 and 2011 which
are detailed in our Form 8-K filed with the Securities and Exchange Commission on February 22, 2011 and August 2, 2011,
respectively). 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 of 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. |
 Leading Home Health & Hospice
22
Summary performance results
2009
2010
2Q10
2Q11
Home Health
Agencies at period end
521
486
529
485
Total visits
8,702,146
9,065,549
2,320,736
2,136,806
Episodic-based admissions
231,782
253,763
63,076
58,980
Episodic-based completed
episodes
411,975
424,988
109,420
101,146
Episodic-based revenue per
episode
$3,166
$3,311
$3,372
$3,034
Hospice
Agencies at period end
65
67
72
90
Total admissions
9,002
11,510
2,874
3,740
Hospice days
784,577
1,051,209
258,172
344,353
Daily census
2,150
2,880
2,837
3,784
Average length of stay
82
87
87
86 |
 Leading Home Health & Hospice
23
Summary balance sheet
Dec. 31, 2010
Jun. 30, 2011
Assets
Cash
$ 120.3
$ 28.1
Accounts Receivable, Net
141.5
153.3
Property and Equipment
138.6
144.4
Goodwill
791.4
901.6
Other
108.1
113.2
Total Assets
$ 1,299.9
$ 1,340.6
Liabilities and Equity
Debt
$ 181.9
$ 163.3
All Other Liabilities
238.3
247.3
Equity
879.7
930.0
Total Liabilities and Equity
$ 1,299.9
$ 1,340.6
Leverage Ratio, Net of Cash
0.3x
0.4x |
 Leading Home Health & Hospice
24
Liquidity
•
Cash balance at 6/30/11 = $28M
•
Available line of credit (LOC): 6/30/11 = $231M
•
2011
Estimated
CFFO
-
Cap
Ex
=
$90M
-
$100M |
 Leading Home Health & Hospice
25
Guidance
1
Calendar Year 2011
2
Net revenue:
$1.475 -
$1.5 billion
EPS:
$2.20 -
$2.40
Diluted shares:
29.3 million
1
Guidance includes the effects of our recently announced Beacon acquisition but excludes the
effects of the following: any future acquisitions, if any are made; effects of any share
repurchases; non-recurring costs that may be incurred during the year; or the impact of the final 2012 Medicare rate changes.
2
Provided as of the date of our Form 8-K filed with the Securities and Exchange Commission on
August 2, 2011. |
 Leading Home Health & Hospice
Summary
26
Tremendous
Opportunities
•
Solid industry growth rate
•
IT leader
•
Clinical quality and innovation
•
Low cost setting in high cost healthcare industry
•
Scalable infrastructure
•
Expected industry consolidation
•
Strong liquidity and capital position |
 Leading Home Health & Hospice
Contact information
Kevin B. LeBlanc
Director of Investor Relations
Amedisys, Inc.
5959 S. Sherwood Forest Boulevard
Baton Rouge, LA 70816
Office: 225.299.3391
Fax: 225.298.6435
kevin.leblanc@amedisys.com
27 |