Attached files
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| 8-K - FORM 8-K - AMEDISYS INC | d254405d8k.htm |
| EX-99.2 - RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES - AMEDISYS INC | d254405dex992.htm |
 November
2011 Investor Presentation
clinical
quality
clinical
quality
innovative
care models
innovative
care models
better
communities
better
communities
Leading Home Health & Hospice
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 83%
17%
Home Health
Hospice
Company overview
1
3
•
Founded in 1982, publicly listed 1994
•
572 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:
-3Q11 admissions of 69,000
-8.4 million annualized visits
Hospice Division:
-
Average daily census = 4,902
-
Average length of stay = 86 days
1
For the quarter ended September 30, 2011
Stats
Revenue Mix |
 Leading Home
Health & Hospice Management team
William F. Borne, Chairman and CEO
Founder and CEO since 1982
29 years leading the industry
Ronald LaBorde, President
Board member since 1997; 23 years of executive level
management and financial experience
HR Solutions, Piccadilly Cafeterias
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
James T. Robinson, Executive VP Home Health
and Hospice
20 years in health care innovation and leadership
American CareSource Holding, VistaCare, St. Jude Medical,
Hewlet Packard Medical, Xerox Corp.
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 home health industry CMO
G. Patrick Thompson, Chief Information Officer
24 years of corporate administration experience
Arthur Andersen, Turner Industries, The Shaw Group |
 Leading Home
Health & Hospice Agency Locations
5
482 -
Home Health locations
90 -
Hospice locations
*As of September 30, 2011 |
 Leading Home
Health & Hospice Home Health Division
6
•
Industry leader
–
Strong national footprint –
482 locations across 45 states
–
$310 million revenue in 3Q 2011
–
83% Medicare revenue in 3Q 2011
•
Strong clinical quality
•
World-class technology platform
•
Well positioned to capitalize
on organic and consolidation
opportunities |
 Leading Home
Health & Hospice Hospice Division
7
•
90 locations across 24 states
–
$65 million revenue in 3Q 2011
–
94% Medicare revenue in 3Q 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 |
 Leading Home
Health & Hospice 8
Source: Congressional Budget Office baseline reports (home health figures from 2010
report, hospice figures from 2009 report) Medicare market size
|
 Leading Home
Health & Hospice Medicare Reimbursement
9 |
 Leading Home
Health & Hospice Legislative Update
10
Joint Select Committee
•
November 23 committee vote deadline
•
December 23 Congress vote deadline
•
Failure results in sequestration
Industry legislative proposal
•
Targeting fraud and abuse
•
Removing therapy thresholds
•
Promoting value based pricing
•
Meeting deficit reduction goals while minimizing impact to patients
|
 Leading Home
Health & Hospice Company Realignment/Executive Changes
11
•
Realignment
–
Disposing of ~50 care centers with annualized revenue of $34 million
and $10 million in contribution losses
–
Reorganizing field into 5 geographic regions
–
Enhanced leadership focus on business development
•
Chief Operating Officer departed
–
Combining leadership of home health and hospice under Jim
Robinson
–
Better capture of home health and hospice synergies
•
Chief Financial Officer retiring in 1Q 2012
–
Ronnie LaBorde appointed President, additionally assuming CFO role
in 1Q 2012 |
 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
12
*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 |
 Leading Home
Health & Hospice Our Long Term Operating Tenets
13 |
 Leading Home
Health & Hospice Focus on Clinical Outcomes
Amedisys vs. Footprint –
Outcomes June 2011
•
Exceeded or met 8 out of 8 outcomes vs. footprint of reported measures
*
Lower % is better
Source: Medicare
14 |
 Leading Home
Health & Hospice Growth -
Organic
15
1
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.
•
Utilizing CRM tool
•
Training
•
Reorganized business development leadership
•
Managed care |
 Leading Home
Health & Hospice Beacon Acquisition
•
Premier hospice in Northeast
–
23 locations
–
$80 million in revenue
–
Quality provider
–
Strong leadership and operations
–
Closed acquisition in June 2011
Beacon Hospice Care Centers
Amedisys Hospice Care Centers
Amedisys Home Health Care Centers
16 |
 Leading Home
Health & Hospice Efficiency –
Systems Infrastructure
17 |
 Leading Home
Health & Hospice Financial Review
18 |
 Leading Home
Health & Hospice Goodwill & Other Adjustments
•
3Q11 non-cash goodwill impairment of $574 million
–
Charge associated with home health division
–
Non cash; no impact on liquidity, debt covenants or cash flow
•
Other one-time costs
–
Legal costs
–
Severance, closures and write-offs
–
Medicare quality bonus payments
19 |
 Leading Home
Health & Hospice Financial highlights
20 |
 Leading Home
Health & Hospice 21
Summary financial results
($ in millions, except per share data and
DSO)
2009
2010
3Q10
3Q11
Net revenue
$1,513.5
$1,634.3
$404.7
$374.9
Gross margin
789.0
813.9
198.4
169.2
CFFO
247.7
206.3
47.2
27.8
Adjusted EBITDA¹
261.8
242.0
51.9
29.4
Adjusted Fully-diluted EPS²
$4.89
$4.29
$0.89
$0.36
Days Sales Outstanding
33.9
32.8
30.8
35.9
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 November 1,
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
November
1,
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
3Q10
3Q11
Home Health
Agencies at period end
521
486
537
482
Total visits
8,702,146
9,065,549
2,260,608
2,113,413
Episodic-based admissions
231,782
253,763
63,472
58,145
Episodic-based completed
episodes
411,975
424,988
104,997
98,020
Episodic-based revenue
per episode
$3,166
$3,311
$3,294
$2,975
Hospice
Agencies at period end
65
67
72
90
Total admissions
9,002
11,510
2,782
4,608
Hospice days
784,577
1,051,209
273,989
450,956
Daily census
2,150
2,880
2,978
4,902
Average length of stay
82
87
87
86 |
 Leading Home
Health & Hospice 23
Summary balance sheet
Dec. 31, 2010
Sep. 30, 2011
Assets
Cash
$ 120.3
$ 29.5
Accounts Receivable, Net
141.5
151.2
Property and Equipment
138.6
146.9
Goodwill
791.4
335.8
Other
108.1
183.4
Total Assets
$ 1,299.9
$ 846.8
Liabilities and Equity
Debt
$ 181.9
$ 153.3
All Other Liabilities
238.3
181.5
Equity
879.7
512.0
Total Liabilities and Equity
$ 1,299.9
$ 846.8
Leverage Ratio
0.8x
0.9x |
 Leading Home
Health & Hospice 24
Liquidity
•
Cash balance at 9/30/11 = $29M
•
Available line of credit (LOC): 9/30/11 = $231M
•
2011 estimated CFFO -
Cap Ex = $75M -
$85M |
 Leading Home
Health & Hospice 25
Guidance
Calendar Year 2011
Net revenue:
$1.475 -
$1.5 billion
EPS:
$1.90 -
$2.00
Diluted shares:
29.3 million
1
Guidance
excludes
the
effects
of
the
following:
non-cash
impairment
charge,
any
future
acquisitions,
if
any
are
made;
effects
of
any
share
repurchases;
non-recurring
costs
(i.e.
certain
items)
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
November
1,
2011.
1
2 |
 Leading Home
Health & Hospice Investment Rationale
•
Favorable industry growth rates
•
IT infrastructure/scalability
•
Clinical quality and innovation
•
Strong liquidity and capital position
•
Future consolidation opportunities
26 |
 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 |