AMEDISYS INC - FORM 8-K - EX-99.1 - PRESS RELEASE DATED MAY 8, 2012

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8-K - FORM 8-K - AMEDISYS INC	d347508d8k.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) 292-2031	(225) 299-3688
	kevin.leblanc@amedisys.com	jacqueline.chen@amedisys.com

AMEDISYS REPORTS FIRST QUARTER FINANCIAL RESULTS

AND REAFFIRMS 2012 GUIDANCE

AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (May 8, 2012) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the first quarter ended March 31, 2012.

Three-Month Periods Ended March 31, 2012 and 2011

•

Net service revenue of $370.8 million compared to $359.3 million in 2011, an increase of $11.5 million or 3.2%.

•

Net income from continuing operations attributable to Amedisys, Inc., of $6.5 million compared to $16.9 million in 2011, a decrease of 61.8%.

•

Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.22 compared to $0.59 per diluted share in 2011, a decrease of 62.7%.

•

Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $23.2 million compared to $39.3 million in 2011, a decrease of 41.0%.

William F. Borne, Chief Executive Officer, stated, “Results for the quarter met our expectations, and we are on track to meet our plans for the year. We believe the organizational changes we implemented in the second half of 2011 are having a positive impact on results.”

“The health care industry is in the midst of significant changes brought on by cost pressures and reform legislation,” continued Mr. Borne. “We see opportunity in these changes and are working to position the company for the industry’s long term favorable trends, including patient preference for care delivered at home, the lowest cost setting for care and growing demographics.”

2012 Guidance

•

Net service revenue is anticipated to be in the range of $1.475 billion to $1.525 billion.

•

Diluted earnings per share is expected to be in the range of $0.95 and $1.10 based on an estimated 30.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made; effects of any share repurchases; any non-recurring costs or charges 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 2012 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, 2011, 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 (866) 719-0110 (Toll free) or (719) 325-2308 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, May 8, 2012. A replay of the conference call will be available through May 15, 2012. The replay dial in number is (888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin number is 1192047.

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 care centers, acquire additional care centers and integrate and operate these care centers 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 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 measure as defined under SEC rules: EBITDA, defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization. In accordance with SEC rules, we have provided herein a reconciliation of this non-GAAP financial measure to the most directly comparable measure under GAAP. Management believes that this is a useful gauge of our performance and is a common measure 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 share, per share data and statistical information)

(Unaudited)

Balance Sheet Information


	March 31, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	41,290		$	48,004
Patient accounts receivable, net of allowance for doubtful accounts of $18,607 and $17,438		161,834			148,061
Prepaid expenses		12,765			11,321
Other current assets		22,072			24,630

Total current assets		237,961			232,016

Property and equipment, net of accumulated depreciation of $101,941, and $94,266		143,965			148,536
Goodwill		334,695			334,695
Intangible assets, net of accumulated amortization of $21,314 and $20,611		49,364			50,067
Deferred tax asset		65,674			68,649
Other assets, net		23,721			24,322

Total assets	$	855,380		$	858,285

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	20,532		$	25,475
Payroll and employee benefits		87,334			82,130
Accrued expenses		65,845			68,493
Current portion of long-term obligations		68,513			33,888
Current portion of deferred income taxes		10,193			11,748

Total current liabilities		252,417			221,734
Long-term obligations, less current portion		68,376			111,551
Other long-term obligations		4,613			4,852

Total liabilities		325,406			338,137

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; 31,443,152 and 31,017,363 share issued; and 30,730,529 and 30,328,549 share outstanding		31			30
Additional paid-in capital		437,024			432,390
Treasury stock at cost, 712,623 and 688,814 shares of common stock		(16,044	)		(15,770	)
Accumulated other comprehensive income		15			13
Retained earnings		107,625			102,205

Total Amedisys, Inc. stockholders’ equity		528,651			518,868
Noncontrolling interests		1,323			1,280

Total equity		529,974			520,148

Total liabilities and equity	$	855,380		$	858,285

Income Statement Information


	For the Three-Month Periods Ended March 31,
	2012			2011
Net service revenue	$	370,833		$	359,314
Cost of service, excluding depreciation and amortization		208,506			187,304
General and administrative expenses:
Salaries and benefits		87,077			83,388
Non-cash compensation		2,482			1,910
Other		44,394			44,296
Provision for doubtful accounts		5,863			3,114
Depreciation and amortization		10,054			9,180

Operating expenses		358,376			329,192

Operating income		12,457			30,122
Other (expense) income
Interest income		15			118
Interest expense		(2,074	)		(2,252	)
Equity in earnings from equity investments		305			323
Miscellaneous, net		429			(295	)

Total other expense, net		(1,325	)		(2,106	)

Income before income taxes		11,132			28,016
Income tax expense		(4,620	)		(11,058	)

Income from continuing operations		6,512			16,958
Discontinued operations, net of tax		(1,049	)		(1,634	)

Net income		5,463			15,324
Net (income) attributable to noncontrolling interests		(43	)		(36	)

Net income attributable to Amedisys, Inc.	$	5,420		$	15,288

Basic earnings per common share:
Income from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.22		$	0.60
Discontinued operations, net of tax		(0.04	)		(0.06	)

Net income attributable to Amedisys, Inc. common stockholders	$	0.18		$	0.54

Weighted average shares outstanding		29,389			28,366

Diluted earnings per common share:
Income from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.22		$	0.59
Discontinued operations, net of tax		(0.04	)		(0.06	)

Net income attributable to Amedisys, Inc. common stockholders	$	0.18		$	0.53

Weighted average shares outstanding		29,780			28,867

Amounts attributable to Amedisys, Inc. common stockholders:
Income from continuing operations	$	6,469		$	16,922
Discontinued operations, net of tax		(1,049	)		(1,634	)

Net income	$	5,420		$	15,288

Cash Flow Information


	For the Three-Month Periods ended March 31,
	2012			2011
Net cash provided by operating activities	$	11,871		$	52,554
Net cash used in investing activities		(10,053	)		(15,946	)
Net cash used in financing activities		(8,532	)		(8,035	)

Net increase (decrease) in cash and cash equivalents		(6,714	)		28,573
Cash and cash equivalents at beginning of period		48,004			120,295

Cash and cash equivalents at end of period	$	41,290		$	148,868

Home Health Division

The following table summarizes our home health segment results from continuing operations:


	For the Three-Month Periods Ended March 31,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	275.9		$	1.5		$	277.4		$	295.7	$	7.0		$	302.7
Non-episodic revenue		23.8			0.2			24.0			18.0		0.1			18.1

Net service revenue		299.7			1.7			301.4			313.7		7.1			320.8
Episodic-based revenue growth (2)		(7%	)					(8%	)

Cost of service		170.9			1.1			172.0			163.0		4.1			167.1

Gross margin		128.8			0.6			129.4			150.7		3.0			153.7
Other operating expenses		77.8			0.9			78.7			74.9		4.7			79.6

Operating income	$	51.0		$	(0.3	)	$	50.7		$	75.8	$	(1.7	)	$	74.1

*Key Statistical Data:*
Admissions:
Episodic-based		59,458			416			59,874			59,796		1,611			61,407
Non-episodic		14,368			103			14,471			10,405		141			10,546

Total admissions		73,826			519			74,345			70,201		1,752			71,953

Episodic-based admission growth (2)		(1%	)					(2%	)

Recertifications:
Episodic-based		40,648			151			40,799			42,535		726			43,261
Non-episodic		4,707			19			4,726			4,204		37			4,241

Total recertifications		45,355			170			45,525			46,739		763			47,502

Episodic-based recertification growth (2)		(4%	)					(6%	)

Completed Episodes:
Episodic-based		94,297			426			94,723			95,768		2,248			98,016

Visits:
Episodic-based		1,870,919			9,233			1,880,152			1,865,242		43,553			1,908,795
Non-episodic		248,046			1,673			249,719			195,981		1,827			197,808

Total visits		2,118,965			10,906			2,129,871			2,061,223		45,380			2,106,603

Cost per Visit	$	80.65		$	101.94		$	80.76		$	79.05	$	91.25		$	79.31

Average episodic-based revenue per completed episode (3)	$	2,853		$	3,061		$	2,854		$	3,025	$	3,178		$	3,028

Episodic-based visits per completed episode (4)		18.7			17.9			18.7			18.5		19.4			18.5

(1)	Care centers for the prior period which are not considered same store care centers (i.e., care centers consolidated in prior period or unopened startups).

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

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

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

Hospice Division

The following table summarizes our hospice segment results from continuing operations:


	For the Three-Month Periods Ended March 31,
	2012						2011
	Same Store		Start-ups/ Acquisitions		Total		Same Store		Other (1)			Total
*Financial Information (in millions):*
Medicare revenue	$	41.9	$	23.4	$	65.3	$	35.7	$	0.4		$	36.1
Non-Medicare revenue		2.8		1.3		4.1		2.3		0.1			2.4

Net service revenue		44.7		24.7		69.4		38.0		0.5			38.5
Medicare revenue growth (2)		17%				81%

Cost of service		23.0		13.5		36.5		19.6		0.6			20.2

Gross margin		21.7		11.2		32.9		18.4		(0.1	)		18.3
Other operating expenses		8.7		5.1		13.8		7.2		0.8			8.0

Operating income	$	13.0	$	6.1	$	19.1	$	11.2	$	(0.9	)	$	10.3

*Key Statistical Data:*
Hospice admits		3,298		1,604		4,902		3,110		53			3,163
Hospice days		327,885		144,364		472,249		278,022		3,273			281,295
Average daily census		3,603		1,587		5,190		3,089		36			3,125
Revenue per day	$	136.31	$	171.51	$	147.07	$	136.83	$	139.93		$	136.87
Cost of service per day	$	69.97	$	93.33	$	77.10	$	70.73	$	170.42		$	71.89
Average length of stay		91		92		91		88		56			88

(1)	Care centers for the prior period which are not considered same store care centers (i.e. care centers consolidated in prior period or unopened startups).

(2)	Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the prior period.

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL DATA AND

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)


	For the Three-Month Periods Ended March 31,
	2012		2011
Key Statistical Data:
General
Number of home health care centers		437		489
Number of hospice care centers		88		69
Number of care centers opened as start-up locations (1)		2		6
Days revenue outstanding, net (2)		38.4		34.8

(1)	Includes both home health and hospice care centers.

(2)

Our calculation of days revenue outstanding, net at March 31, 2012 and 2011 is derived by dividing our ending 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 March 31, 2012 and 2011, respectively.

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)


	For the Three-Month Periods Ended March 31,
	2012		2011
Net income from continuing operations attributable to Amedisys, Inc.	$	6,469	$	16,922
Add:
Provision for income taxes		4,620		11,058
Interest expense, net		2,059		2,134
Depreciation and amortization		10,054		9,180

EBITDA (1)	$	23,202	$	39,294

(1)

EBITDA is defined as net income from continuing operations 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.

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