Attached files
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| 8-K - 8-K - AMEDISYS INC | d726655d8k.htm |
 Amedisys
Investor Presentation May 2014
Exhibit 99.1 |
 2
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
(225)
292-2031.
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.
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. |
 3
Amedisys Snapshot
Overview
•
Founded in 1982,
publicly listed 1994
•
396 care centers in 34
states
•
Over 13,500 employees
•
Over 60,000 patients
cared for on a daily basis
•
2013 revenue of
approximately $1.25
billion
Amedisys Home Health Care Centers (316 locations)
Amedisys Hospice Care Centers (80 locations) |
 4
Business Overview
Business
$ (in millions) /
% of Revenue
Revenue per
Visit / Revenue
per Day
Gross Margin %
Reimbursement
Type
Home Health
Medicare
$189 / 63%
$157
42.4%
60-day episode of care
Non-Medicare Episodic
$20 / 7%
$154
41.5%
60-day episode of care
Non-Medicare Per Visit
$28 / 9%
$108
16.5%
Per visit
Total Home Health
$237 / 79%
Hospice
$62 / 21%
$146
46.7%
99% routine care; daily rate
Total
$299 / 100%
Based
on
1Q14
financials.
Gross
margin
computed
by
subtracting
cost
per
visit
from
revenue
per
visit
in
home
health
and
cost
per
day
from
hospice
revenue
per
day |
 5
Favorable Long Term Trends
•
Compelling demographics
•
Patient preference
•
Increased payer and hospital focus
•
Low cost of care delivery
Inpatient
Hospital
LTAC
IRF
SNF
Hospice
Home
Health
Average cost of stay
$12,000
$39,493
$17,995
$10,392
$11,852
$5,294
Average length of stay
5 days
26 days
13 days
27 days
88 days
120 days
Average per diem cost
$2,448
$1,507
$1,395
$399
$135
$44
Source:
MedPAC
March
2014
report
and
Amedisys
estimates;
hospital
information
is
for
inpatient
facilities
only
and
is
estimated
based
on
patient
discharges |
 6
($ in millions, except per share data)
2012
(1)
2013
(1)
Net Revenue
$1,441
$ 1,249
Gross Margin %
43.7%
42.5%
Adjusted EBITDA
$106
$ 54
Adjusted EBITDA Margin
7.3%
4.4%
Adjusted EPS
$1.15
$0.27
1.
The
financial
results
for
2012
and
2013
are
adjusted
for
certain
items
incurred
in
both
years
and
should
be
considered
non-GAAP
financial
measures.
A
reconciliation
of
these
non-GAAP
financial
measures
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
March
12,
2014.
Summary Financials |
 7
Summary Financials –
Quarterly
($ in millions, except per share data)
1Q13
(1)
4Q13
(2)
1Q14
(1)
Net Revenue
$329
$304
$299
Adj. Gross Margin %
43.5%
40.9%
41.0%
Adjusted EBITDA
$18
$8
$6
Adjusted EBITDA Margin
5.6%
2.5%
1.8%
Adjusted EPS
$0.15
($0.05)
($0.07)
1.
The
financial
results
for
the
three-month
period
ended
March
31,
2013
and
March
31,
2014
are
adjusted
for
certain
items
and
should
be
considered
a
non-
GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
May
8,
2014
2.
The
financial
results
for
the
three-month
period
ended
December
31,
2013
are
adjusted
for
certain
items
and
should
be
considered
a
non-GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
March
12,
2014 |
 8
($ in millions)
1Q13
(1)
4Q13
(2)
1Q14
(1)
Net Revenue
$262
$238
$237
Adj. Gross Margin %
42.6%
39.4%
39.5%
Key Operating Statistics
Medicare admissions
50,007
45,405
46,527
Revenue per episode
$2,778
$2,840
$2,778
Medicare recert rate
37.8%
37.1%
38.2%
Cost per visit
$83.89
$90.21
$90.28
Home Health Segment
1.
The
financial
results
for
the
three-month
period
ended
March
31,
2013
and
March
31,
2014
are
adjusted
for
certain
items
and
should
be
considered
a
non-
GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
May
8,
2014
2.
The
financial
results
for
the
three-month
period
ended
December
31,
2013
are
adjusted
for
certain
items
and
should
be
considered
a
non-GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
March
12,
2014 |
 9
($ in millions)
1Q13
(1)
4Q13
(2)
1Q14
(1)
Net Revenue
$67
$65
$62
Adj. Gross Margin %
47.1%
46.5%
46.8%
Key Operating Statistics
Average daily census
5,071
4,866
4,721
Admissions
4,957
4,371
4,595
Revenue per day
$145.98
$145.60
$145.95
Cost per day
$77.04
$77.63
$77.47
Hospice Segment
1.
The
financial
results
for
the
three-month
period
ended
March
31,
2013
and
March
31,
2014
are
adjusted
for
certain
items
and
should
be
considered
a
non-
GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
May
8,
2014
2.
The
financial
results
for
the
three-month
period
ended
December
31,
2013
are
adjusted
for
certain
items
and
should
be
considered
a
non-GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial
measure
is
included
as
Exhibit
99.2
to
our
Form
8-K
filed
with
the
Securities
and
Exchange
Commission
on
March
12,
2014 |
 10
Summary Balance Sheet
Assets ($ in MM)
12/31/12
12/31/13
3/31/14
Cash
$15
$17
$3
Accounts Receivable, net
169
111
115
Property and Equipment
157
159
157
Goodwill
210
209
209
Other
180
230
243
Total Assets
731
726
727
Liabilities and Equity
Other Liabilities
$176
$157
$171
Debt
103
47
43
DOJ Settlement Reserve
--
150
150
Equity
452
372
363
Total Liabilities and Equity
731
726
727
Leverage Ratio
1.1x
2.9x
3.2x
Days Sales Outstanding
42
32
34 |
 11
1Q14 Restructuring –
Impact on Results
Portfolio Rationalization
•
54 care centers closed or consolidated
•
This group, in addition to previous closures, reduced EBITDA by $4 million in 1Q14
•
10 care centers sold in April
•
16 lower volume care centers retained
•
396 core care centers generate ~$3M in average annual revenue
G&A Expense Reduction
•
Reduced G&A levels appropriate for reduced size and geographic footprint
•
G&A review is ongoing
•
Full run rate of reductions ($2.5 million/quarter) beginning in 3Q14
•
Full run rate of EBITDA improvement in 3Q14 |
 12
Amedisys Turnaround –
Focus Areas
Continuing to deliver clinical excellence
•
Trend of clinical outcomes improving
Driving consistent organic growth
•
Seeing positive volume trends from core group of care centers
Getting “back to basics”
on core operations
•
Focus on managing direct costs
Capital allocation strategy
•
Clear ROI for shareholders |
 13
Contact Information
Dale Redman
Interim Chief Financial Officer
dale.redman@amedisys.com
David Castille
Director, Treasury/Finance
david.castille@amedisys.com
Amedisys, Inc.
5959 S. Sherwood Forest Blvd.
Baton Rouge, LA 70816
Office: 225.292.2031 |