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EX-99.1 - INVESTOR RELATIONS SLIDE SHOW - AMEDISYS INCd231867dex991.htm
8-K - FORM 8-K - AMEDISYS INCd231867d8k.htm

Exhibit 99.2

AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands)

 

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

 

  

     For the years ended December 31,     For the three-month periods ended June 30,  
     2009      2010     2010      2011  

Net income attributable to Amedisys, Inc.

   $ 135,837       $ 112,580      $ 32,202       $ 21,656   

Add:

          

Provision for income taxes

     86,171         72,309        20,663         14,175   

Interest expense, net

     11,457         8,766        2,258         2,165   

Depreciation and amortization

     28,312         34,589        8,279         9,726   
  

 

 

    

 

 

   

 

 

    

 

 

 

EBITDA (1)

   $ 261,777       $ 228,244      $ 63,402       $ 47,722   
  

 

 

    

 

 

   

 

 

    

 

 

 

Add:

          

Certain items (2)

     —           15,947        1,201         (3,606

Intangible write-off (2)

     —           (2,216     —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted EBITDA (3)

   $ 261,777       $ 241,975      $ 64,603       $ 44,116   
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted Diluted Earnings Per Share Reconciliation

 

          
     For the years ended December 31,     For the three-month periods ended June 30,  
     2009      2010     2010      2011  

Diluted earnings per share

   $ 4.89       $ 3.95      $ 1.13       $ 0.75   

Add:

          

Certain items (2)

     —           0.34        0.02         (0.08
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted diluted earnings per share (4)

   $ 4.89       $ 4.29      $ 1.15       $ 0.67   
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(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 twelve-month period ended December 31, 2010 we incurred certain costs of $9.6 million ($5.9 million, net of tax or $0.21 per diluted share) associated with the realignment of operations including severance and legal expenses related to the United States Senate Committee on Finance inquiry and SEC and DOJ investigation. We also incurred costs associated with our exit activities of $13.6 million ($8.3 million, net of tax or $0.29 per diluted share) for the twelve-month period ended December 31, 2010, which includes $2.2 million, 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 of $3.7 million ($2.2 million net of tax or $0.08 per diluted share) and during the three-month period June 30, 2010 we received the Centers for Medicare and Medicaid Services (“CMS”) bonus payments of $3.6 million ($2.2 million or $0.08 per diluted share) as the result of a pay for performance demonstration.

During the three-month period ended June 30, 2011, we incurred certain costs associated with acquisitions and related integration costs and legal expenses related to the United States Senate Committee on Finance inquiry and SEC and DOJ investigation and incurred costs associated with agency closings we announced in 2010 of $2.6 million ($1.6 million, net of tax or $0.05 per diluted share). These costs were offset by the reversal of accrued bonuses of $1.5 million ($0.9 million, net of tax or $0.03 per diluted share). In addition, during the three-month period ended June 30, 2011 we recorded a receivable for a CMS bonus payment as the result of the pay for performance demonstration in the amount of $4.7 million ($2.9 million net of tax or $0.10 per diluted share).

During the three-month period ended June 30, 2010, we incurred certain costs of $6.4 million ($3.9 million, net of tax or $0.14 per diluted share) associated with our realignment of our operations as well as legal expenses related to the United States Senate Committee on Finance inquiry and SEC investigation. We also incurred costs associated with our exit activities of $1.4 million ($0.9 million, net of tax or $0.03 per diluted share). These costs were offset by the reversal of accrued bonuses of $3.1 million ($1.9 million, net of tax or $0.07 per diluted share). In addition, during the three-month period ended June 30, 2010 we received a CMS bonus payment as the result of the pay for performance demonstration in the amount of $3.6 million ($2.2 million net of tax or $0.08 per diluted share).

 

(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 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.