Attached files
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| 8-K - 8-K - AMEDISYS INC | d774724d8k.htm |
 Amedisys
Investor Presentation August 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
33
states
•
Over
13,000
employees
•
Over
55,000
patients
currently
on
census
•
2013
revenue
of
$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
$192 / 63%
$156
45.6%
60-day episode of care
Non-Medicare Episodic
$21 / 7%
$159
46.6%
60-day episode of care
Non-Medicare Per Visit
$31 / 10%
$111
23.2%
Per visit
Total Home Health
$244 / 80%
Hospice
$61 / 20%
$145
46.2%
99% routine care; daily rate
Total
$305 / 100%
Based on 2Q14 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
$44
Source: MedPAC March 2014 report and Amedisys estimates; hospital information is
for inpatient facilities only and is estimated based on patient
discharges |
 6
Summary Financials –
Quarterly
($ in millions, except per share data)
2Q13
(1)
1Q14
(2)
2Q14
(1)
Net Revenue
$316
$299
$305
Adj. Gross Margin %
43.7%
41.0%
43.4%
Adjusted G&A Expenses
(3)
114
113
106
Adjusted EBITDA
$20
$5
$22
Adjusted EBITDA Margin
6.2%
1.8%
7.3%
Adjusted EPS
$0.18
($0.07)
$0.25
1.
The financial results for the three-month periods ended June 30, 2013 and
June 30, 2014 are adjusted for certain items and should be considered a non-
GAAP financial measure. A reconciliation of this non-GAAP financial
measure is included as Exhibit 99.1 to our Form 8-K filed with the Securities and
Exchange Commission on July 30, 2014
2.
The financial results for the three-month period ended March 31, 2014 are
adjusted for certain items and should be considered a non-GAAP financial
measure. A reconciliation of this non-GAAP financial measure is
included as Exhibit 99.1 to our Form 8-K filed with the Securities and Exchange
Commission on May 8, 2014
3.
Adjusted G&A expenses do not include bad debt, depreciation or amortization
expenses |
 7
($ in millions)
2Q13
(1)
1Q14
(2)
2Q14
(1)
Net Revenue
$251
$237
$244
Adj. Gross Margin %
42.8%
39.5%
42.8%
Key Operating Statistics
Medicare admissions
47,734
46,527
43,974
Revenue per episode
$2,831
$2,778
$2,845
Medicare recert rate
36.4%
38.2%
37.4%
Cost per visit
$84.09
$90.28
$85.08
Home Health Segment
1.
The financial results for the three-month periods ended June 30, 2013 and
June 30, 2014 are adjusted for certain items and should be considered a non-GAAP financial measure. A reconciliation of
this non-GAAP financial measure is included as Exhibit 99.1 to our Form 8-K
filed with the Securities and Exchange Commission on July 30, 2014 2.
The
financial
results
for
the
three-month
period
ended
March
31,
2014
are
adjusted
for
certain
items
and
should
be
considered
a
non-GAAP
financial
measure.
A
reconciliation
of
this
non-GAAP
financial measure is included as Exhibit 99.1 to our Form 8-K filed with the
Securities and Exchange Commission on May 8, 2014 •
Operating stats above include some contribution from closed/consolidated care
centers •
In
2Q14,
our
go-forward
home
health
portfolio
(316
care
centers)
exhibited
2.6%
year
over
year
growth
in
Medicare
admissions |
 8
($ in millions)
2Q13
(1)
1Q14
(2)
2Q14
(1)
Net Revenue
$65
$62
$61
Adj. Gross Margin %
47.2%
46.8%
46.0%
Key Operating Statistics
Average daily census
5,006
4,721
4,649
Admissions
4,655
4,595
4,350
Revenue per day
$143.61
$145.95
$145.44
Cost per day
$75.34
$77.47
$78.24
Hospice Segment
1.
The
financial
results
for
the
three-month
periods
ended
June
30,
2013
and
June
30,
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 99.1 to our Form 8-K
filed with the Securities and Exchange Commission on July 30, 2014 2.
The
financial
results
for
the
three-month
period
ended
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 99.1 to our Form 8-K filed with the
Securities and Exchange Commission on May 8, 2014 •
Operating stats above include some contribution from closed/consolidated care
centers •
In
2Q14,
our
go-forward
hospice
portfolio
(80
care
centers)
exhibited
a
1.9%
decline
in
average
daily
census |
 9
Credit Facilities
•
In late July, Amedisys amended its existing senior credit facility and announced a
new $70 million 2
nd
lien term loan
•
The senior facility’s revolving credit line was reduced by $45 million to $120
million total
•
$39 million outstanding senior term loan remains unchanged
•
The 2
nd
lien term loan has a term of six years with no amortization and
is priced
at L + 750 basis points with a 1% LIBOR floor (8.5% all-in)
•
OID of 2.5% and minimal call protection of 102 in the first year
and 101 in
the second year
•
Amended credit facilities provide adequate liquidity as we approach the final DOJ
payment of $35 million
•
Strong free cash flow in the second quarter has helped to further strengthen
our balance sheet
•
As we move forward and de-lever the company, the facilities also provide
increased flexibility around uses of capital |
 10
Summary Balance Sheet
Assets ($ in MM)
12/31/13
6/30/14
Cash
$17
$11
Accounts Receivable, net
111
111
Property and Equipment
159
148
Goodwill
209
206
Other
230
234
Total Assets
726
710
Liabilities and Equity
Other Liabilities
$157
$160
Senior Debt
47
144
2
nd
Lien Term Loan
--
--
DOJ Settlement Reserve
150
35
Equity
372
371
Total Liabilities and Equity
726
710
Leverage Ratio
2.9x
2.7x
Days Sales Outstanding
32
32 |
 11
Amedisys Turnaround –
2Q14 Progress
Continuing to deliver clinical excellence
•
Primary focus is improving or maintaining clinical outcomes
Driving consistent organic growth
•
Seeing positive volume trends from home health operations
•
Hospice volume lagging
Getting “back to basics”
on core operations
•
Progress in home health direct cost management
•
Continue to look for efficiencies in terms of direct costs and G&A
|
 12
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 |