Amedisys Reports Third Quarter Financial Results

Amedisys to Host Conference Call Today At 10:00 A.M. ET

BATON ROUGE, La.--(BUSINESS WIRE)-- Amedisys, Inc. (NAS: AMED) , a leading home health and hospice company, today reported its financial results for the third quarter ended September 30, 2012.


Three-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.10 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $375.6 million compared to $370.3 million in 2011, an increase of $5.3 million or 1.4%.

• Net income from continuing operations attributable to Amedisys, Inc., of $10.0 million compared to $12.3 million in 2011, a decrease of 19.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.33 compared to $0.42 per diluted share in 2011, a decrease of 21.4%.

• Earnings before interest, taxes, depreciation and amortization attributable to continuing operations ("EBITDA") of $24.9 million compared to $29.0 million in 2011, a decrease of 14.0%.

Nine-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.18 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $1,124.9 million compared to $1,098.0 million in 2011, an increase of $26.9 million or 2.5%.

• Net income from continuing operations attributable to Amedisys, Inc., of $24.4 million compared to $52.2 million in 2011, a decrease of 53.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.81 compared to $1.80 per diluted share in 2011, a decrease of 55.0%.

• EBITDA of $73.8 million compared to $118.0 million in 2011, a decrease of 37.5%.

William F. Borne, Chief Executive Officer stated, "Overall, we were pleased with bottom line results for the quarter and remain on pace to meet our earnings plans for the year. Job and investment tax credits benefitted quarterly results. Operationally, we displayed our second consecutive quarter of positive year-over-year episodic admissions growth, continued to grow our managed care business and our hospice average census was up considerably. Our focus remains on providing excellent care to our patients, growing our business and achieving greater efficiencies as we navigate reimbursement pressures."

2012 Guidance

• Net service revenue is anticipated to be in the range of $1.485 billion to $1.505 billion.

• Diluted earnings per share is expected to be in the range of $1.00 to $1.06 based on an estimated 30.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made, any costs associated with the closing of our new credit agreement or any severance related charges.

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 (877) 490-9717 (Toll free) or (704) 385-4855 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, November 6, 2012. A replay of the conference call will be available through November 13, 2012. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll). The replay pin number is 43473527.

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 measures 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, adjusted EBITDA, defined as EBITDA plus the goodwill and other intangibles impairment charge, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus the goodwill and other intangibles impairment charge and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of the goodwill and other intangibles impairment charge. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures 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

 
 
September 30, 2012 December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents $ 39,106 $ 48,004
Patient accounts receivable, net of allowance for doubtful accounts of $20,447 and $17,438 163,461 148,061
Prepaid expenses 10,646 11,321
Other current assets   20,635     24,630  
 
Total current assets 233,848 232,016
Property and equipment, net of accumulated depreciation of $105,157, and $94,266 150,947 148,536
Goodwill 367,495 334,695
Intangible assets, net of accumulated amortization of $22,745 and $20,611 51,959 50,067
Deferred tax asset 54,512 68,649
Other assets, net   16,963     24,322  
 
Total assets $ 875,724   $ 858,285  
 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 21,690 $ 25,475
Payroll and employee benefits 81,751 82,130
Accrued expenses 64,460 68,493
Current portion of long-term obligations 54,307 33,888
Current portion of deferred income taxes   9,249     11,748  
 
Total current liabilities 231,457 221,734
Long-term obligations, less current portion 67,856 111,551
Other long-term obligations   4,431     4,852  
 
Total liabilities   303,744     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; 32,423,585 and 31,017,363 share issued; and 31,640,832 and 30,328,549 share outstanding 32 30
Additional paid-in capital 446,233 432,390
Treasury stock at cost, 782,753 and 688,814 shares of common stock (17,034 ) (15,770 )
Accumulated other comprehensive income 15 13
Retained earnings   125,429     102,205  
 
Total Amedisys, Inc. stockholders' equity 554,675 518,868
Noncontrolling interests   17,305     1,280  
 
Total equity   571,980     520,148  
 
Total liabilities and equity $ 875,724   $ 858,285  

Statement of Operations Information

   
For the Three-Month Periods Ended
September 30,
For the Nine-Month Periods Ended
September 30,
2012 2011 2012 2011
Net service revenue $ 375,625 $ 370,288 $ 1,124,956 $ 1,098,026
Cost of service, excluding depreciation and amortization 214,131 202,093 634,903 578,823
General and administrative expenses:
Salaries and benefits 81,627 85,092 255,203 247,175
Non-cash compensation 1,285 3,150 6,065 8,265
Other 48,261 46,711 139,941 136,228
Provision for doubtful accounts 5,677 4,354 16,235 9,734
Depreciation and amortization 9,963 9,659 29,922 28,389
Goodwill and other intangibles impairment charge       574,114         574,114  
 
Operating expenses   360,944     925,173     1,082,269     1,582,728  
 
Operating income (loss) 14,681 (554,885 ) 42,687 (484,702 )
Other (expense) income:
Interest income 10 18 52 225
Interest expense (1,982 ) (2,187 ) (6,058 ) (6,693 )
Equity in earnings from equity investments 390 325 1,091 1,114
Miscellaneous, net   (14 )   (172 )   281     (843 )
 
Total other expense, net   (1,596 )   (2,016 )   (4,634 )   (6,197 )
 
Income (loss) before income taxes 13,085 (556,901 ) 38,053 (490,899 )
Income tax (expense) benefit   (3,049 )   134,686     (13,411 )   108,631  
 
Income (loss) from continuing operations 10,036 (422,215 ) 24,642 (382,268 )
Discontinued operations, net of tax   (41 )   (1,482 )   (1,218 )   (4,394 )
 
Net income (loss) 9,995 (423,697 ) 23,424 (386,662 )
Net income attributable to noncontrolling interests   (73 )   (25 )   (200 )   (116 )
 
Net income (loss) attributable to Amedisys, Inc. $ 9,922   $ (423,722 )$   23,224   $ (386,778 )
 
Basic earnings per common share:
Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders $ 0.33 $ (14.68 ) $ 0.82 $ (13.38 )
Discontinued operations, net of tax       (0.05 )   (0.04 )   (0.15 )
 
Net income (loss) attributable to Amedisys, Inc. common stockholders $ 0.33   $ (14.73 ) $ 0.78   $ (13.53 )
 
Weighted average shares outstanding   30,055     28,770     29,741     28,587  
 
Diluted earnings per common share:
Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders $ 0.33 $ (14.68 ) $ 0.81 $ (13.38 )
Discontinued operations, net of tax       (0.05 )   (0.04 )   (0.15 )
 
Net income (loss) attributable to Amedisys, Inc. common stockholders $ 0.33   $ (14.73 ) $ 0.77   $ (13.53 )
 
Weighted average shares outstanding   30,423     28,770     30,068     28,587  
 
Amounts attributable to Amedisys, Inc. common stockholders:
Income (loss) from continuing operations $ 9,963

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