Amedisys Reports First Quarter 2020 Financial Results

5/6, 10:15 PM (Source: GlobeNewswire)

BATON ROUGE, La., May 06, 2020 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2020.

Three-Month Periods Ended March 31, 2020 and 2019

  • Net service revenue increased $24.4 million to $491.7 million compared to $467.3 million in 2019.

  • Net income attributable to Amedisys, Inc. of $31.8 million compared to $31.3 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $0.96 compared to $0.95 in 2019.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $53.3 million compared to $54.9 million in 2019.

  • Adjusted net service revenue of $491.7 million compared to $467.8 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $34.8 million compared to $36.4 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.05 compared to $1.11 in 2019.

*   See pages 10 and 11 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am very proud of our first quarter results and even more proud of the way our employees on the front lines have battled through the Public Health Emergency. COVID-19 impacted our volumes and costs beginning the second half of March, and though we do expect near term disruption, this pandemic has only strengthened the medium and long-term value proposition of all of our lines of business. Caring for patients in wherever they call home and doing it by delivering the highest quality care is more important now than ever and will continue to be at the forefront of how care is delivered in the United States. A special thank you to all our essential healthcare workers. You are true heroes and none of this would be possible without you.”

2020 Guidance

Given the rapidly changing operating conditions related to the novel coronavirus pandemic (“COVID-19”), we have decided to withdraw our full-year 2020 guidance as we cannot accurately estimate the effects that COVID-19 will have on our annual financial results.

We urge caution in considering the current trends disclosed in this press release. The home health, hospice and personal care industries are highly competitive and subject to intensive regulations, and trends 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, 2019, 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

Earnings Call and Webcast Information

Amedisys will host a conference call on Thursday, May 7, 2020, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through June 7, 2020 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13702263.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering our patients to manage a chronic disease; or hospice care at the end of life. More than 2,600 hospitals and 67,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With more than 21,000 employees in 480 care centers within 38 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 415,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor 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. 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,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “could,” “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: the impact of the novel coronavirus pandemic (“COVID-19”), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations, 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, 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, competition in the healthcare 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 consistently provide high-quality care, our ability to attract and retain qualified personnel, our ability to keep our patients and employees safe, changes in payments and covered services by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions and changes in law or developments with respect to any litigation relating to the Company, including 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.

Contact:Investor Contact:Media Contact:
   
 Amedisys, Inc.Amedisys, Inc.
 Nick MuscatoKendra Kimmons
 Vice President, Strategic FinanceVice President, Marketing & Communications
 (855) 259-2046(225) 299-3720
 IR@amedisys.com kendra.kimmons@amedisys.com 
   
   


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 
 For the Three-Month
Periods Ended March 31,
 
  2020     2019   
Net service revenue$  491,685  $  467,340 
Cost of service, excluding depreciation and amortization    285,737     275,274 
General and administrative expenses:       
Salaries and benefits    101,566     94,830 
Non-cash compensation   5,909     6,615 
Other    49,265     43,402 
Depreciation and amortization   5,338     2,895 
Operating expenses   447,815     423,016 
Operating income    43,870     44,324 
Other income (expense):       
Interest income   13     24 
Interest expense    (3,231)    (3,349)
Equity in earnings from equity method investments   477     1,216 
Miscellaneous, net   263     236 
Total other expense, net   (2,478)    (1,873)
Income before income taxes   41,392     42,451 
Income tax expense   (9,346)    (10,878)
Net income   32,046     31,573 
Net income attributable to noncontrolling interests   (244)    (269)
Net income attributable to Amedisys, Inc $  31,802  $  31,304 
Basic earnings per common share:       
Net income attributable to Amedisys, Inc. common stockholders$  0.98  $  0.98 
Weighted average shares outstanding    32,331     32,001 
Diluted earnings per common share:       
Net income attributable to Amedisys, Inc. common stockholders$  0.96  $  0.95 
Weighted average shares outstanding   33,234     32,893 
        
        


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
        
 March 31, 2020
(unaudited)

 December 31,
2019

ASSETS       
Current assets:       
Cash and cash equivalents$174,756  $30,294 
Restricted cash 3,056   66,196 
Patient accounts receivable 268,551   237,596 
Prepaid expenses 12,487   8,243 
Other current assets 9,278   8,225 
Total current assets 468,128   350,554 
Property and equipment, net of accumulated depreciation of $98,472 and $96,137 26,477   28,113 
Operating lease right of use assets 83,693   84,791 
Goodwill 721,049   658,500 
Intangible assets, net of accumulated amortization of $9,341 and $7,044 68,251   64,748 
Deferred income taxes 20,199   21,427 
Other assets 52,287   54,612 
Total assets $1,440,084  $1,262,745 
LIABILITIES AND EQUITY       
Current liabilities:       
Accounts payable$31,147  $31,259 
Payroll and employee benefits 109,713   120,877 
Accrued expenses 136,659   137,111 
Current portion of long-term obligations 11,122   9,927 
Current portion of operating lease liabilities 27,465   27,769 
Total current liabilities 316,106   326,943 
Long-term obligations, less current portion 379,942   232,256 
Operating lease liabilities, less current portion 54,926   56,128 
Other long-term obligations 8,966   5,905 
Total liabilities  759,940   621,232 
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; 36,746,554 and 36,638,021       
 shares issued; and 32,370,345 and 32,284,051 shares outstanding 37   37 
Additional paid-in capital 656,266   645,256 
Treasury stock, at cost 4,376,209 and 4,353,970 shares of common stock (255,291)  (251,241)
Accumulated other comprehensive income    15 
Retained earnings 278,185   246,383 
Total Amedisys, Inc. stockholders’ equity 679,197   640,450 
Noncontrolling interests  947   1,063 
Total equity 680,144   641,513 
Total liabilities and equity$1,440,084  $1,262,745 
        
        


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)
(Unaudited)
  
 For the Three-Month
Periods Ended March 31,
 
  2020     2019   
Cash Flows from Operating Activities:       
Net income $  32,046  $  31,573 
Adjustments to reconcile net income to net cash provided by operating activities:       
Depreciation and amortization    5,338     2,895 
Non-cash compensation   5,909     6,615 
401(k) employer match    3,291     2,379 
Amortization and impairment of operating lease right of use assets   9,058     8,345 
Loss (gain) on disposal of property and equipment    55     (4)
Write-off of other comprehensive income   (15)    —  
Deferred income taxes   1,228     3,269 
Equity in earnings from equity method investments   (477)    (1,216)
Amortization of deferred debt issuance costs/debt discount    220     213 
Return on equity investment   2,369     725 
Changes in operating assets and liabilities, net of impact of acquisitions:       
Patient accounts receivable   (25,459)    (22,333)
Other current assets   (5,756)    (10,635)
Other assets   417     (338)
Accounts payable    (2,673)    (11,140)
Accrued expenses   (13,627)    18,838 
Other long-term obligations   3,060     (144)
Operating lease liabilities    (8,132)    (8,139)
Operating lease right of use assets   (817)    (844)
Net cash provided by operating activities   6,035     20,059 
Cash Flows from Investing Activities:       
Proceeds from sale of deferred compensation plan assets    16     208 
Proceeds from the sale of property and equipment   12     65 
Purchases of property and equipment    (1,434)    (1,198)
Investments in equity method investees    —      (120)
Acquisitions of businesses, net of cash acquired   (69,349)    (327,867)
Net cash used in investing activities   (70,755)    (328,912)
Cash Flows from Financing Activities:       
Proceeds from issuance of stock upon exercise of stock options   1,184     356 
Proceeds from issuance of stock to employee stock purchase plan   860     782 
Shares withheld upon stock vesting    (4,050)    (2,688)
Noncontrolling interest distribution   (360)    (366)
Proceeds from borrowings under term loan   —      175,000 
Proceeds from borrowings under revolving line of credit   187,500     161,500 
Repayments of borrowings under revolving line of credit   (37,500)    (34,000)
Principal payments of long-term obligations   (1,592)    (559)
Debt issuance costs   —      (847)
Net cash provided by financing activities   146,042     299,178 
Net increase (decrease) in cash, cash equivalents and restricted cash   81,322     (9,675)
Cash, cash equivalents and restricted cash at beginning of period   96,490     20,229 
Cash, cash equivalents and restricted cash at end of period$  177,812  $  10,554 
Supplemental Disclosures of Cash Flow Information:       
Cash paid for interest $  1,755  $  725 
Cash paid for income taxes, net of refunds received$  5,272  $  404 
Cash paid for operating lease liabilities$  8,949  $  8,983 
Cash paid for finance lease liabilities $  499  $  384 
Supplemental Disclosures of Non-Cash Activity:       
Right of use assets obtained in exchange for operating lease liabilities$  6,437  $  91,743 
Right of use assets obtained in exchange for finance lease liabilities$  254  $  808 
Reductions to right of use assets resulting from reductions to operating lease liabilities$  159  $  625 
Days revenue outstanding (1)   46.6     41.2 
        
(1)  Our calculation of days revenue outstanding at March 31, 2020 and 2019 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended March 31, 2020 and 2019, respectively.
 
 


AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
  
Segment Information - Home Health 
 For the Three-Month Periods
Ended March 31,
 
  2020     2019   
Financial Information (in millions):       
Medicare$  203.9  $  213.4 
Non-Medicare   99.7     96.7 
Net service revenue   303.6     310.1 
Cost of service   179.8     185.7 
Gross margin   123.8     124.4 
Other operating expenses   76.7     72.4 
Operating income $  47.1  $  52.0 
Same Store Growth (1):       
Medicare revenue    (4%)    4%
Non-Medicare revenue   3%    22%
Total admissions   3%    6%
Total volume (2)   1%    6%
Key Statistical Data - Total (3):       
Admissions    85,975     83,969 
Recertifications    40,541     41,795 
Total volume    126,516     125,764 
Medicare completed episodes (6)   75,636     75,483 
Average Medicare revenue per completed episode (4) (6)$  2,734  $  2,838 
Medicare visits per completed episode (5) (6)    15.8     17.2 
Visiting Clinician Cost per Visit $  84.01  $  81.05 
Clinical Manager Cost per Visit $  8.97  $  8.01 
Total Cost per Visit$  92.98  $  89.06 
Visits   1,933,445     2,085,088 

(1)  Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)  Total volume includes all admissions and recertifications.
(3)  Total includes acquisitions and denovos.
(4)  Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode for the three-month period ended March 31, 2020 reflects the transition to PDGM during the quarter and therefore includes reimbursement under both the 60-day episode of care (pre-PDGM) payment rate and the 30-day period of care (PDGM) payment rate.
(5)  Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.
(6)  Prior year amounts have been recast to conform to the current year calculation.

 
 
Segment Information - Hospice
  
 For the Three-Month Periods
Ended March 31,
 
  2020   2019 
Financial Information (in millions):       
Medicare $160.5  $130.7 
Non-Medicare  8.9   6.3 
Net service revenue  169.4   137.0 
Cost of service 91.8   74.1 
Gross margin 77.6   62.9 
Other operating expenses 39.3   29.4 
Operating income$38.3  $33.5 
Same Store Growth (1):       
Medicare revenue  5%  9%
Hospice admissions 1%  5%
Average daily census 4%  8%
Key Statistical Data - Total (2):       
Hospice admissions 11,318   9,711 
Average daily census 12,046   9,982 
Revenue per day, net$154.55  $152.56 
Cost of service per day$83.78  $82.43 
Average discharge length of stay 98   98 

(1)  Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)  Total includes acquisitions and denovos.

Segment Information - Personal Care

 For the Three-Month Periods
Ended March 31,
 2020 2019
Financial Information (in millions):     
Medicare$ $
Non-Medicare 18.7  20.2
Net service revenue 18.7  20.2
Cost of service 14.1  15.5
Gross margin 4.6  4.7
Other operating expenses 3.4  3.2
Operating income$1.2 $1.5
Key Statistical Data - Total (1):     
Billable hours 752,077  833,617
Clients served 11,770  12,801
Shifts 333,464  376,182
Revenue per hour$24.87 $24.19
Revenue per shift$56.09 $53.60
Hours per shift 2.3  2.2
      
(1)  Total includes acquisitions.     
      
      


Segment Information - Corporate
 
 For the Three-Month Periods
Ended March 31,

 2020 2019
Financial Information (in millions):     
Other operating expenses$39.0 $41.3
Depreciation and amortization 3.7  1.4
Total operating expenses$42.7 $42.7
      


AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
(Amounts in thousands)
(Unaudited)
 
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) Reconciliation:
 
 For the Three-
Month Periods
Ended March 31,
 2020
 2019
Net income attributable to Amedisys, Inc $31,802  $31,304 
Add:       
Income tax expense 9,346   10,878 
Interest expense, net 3,218   3,325 
Depreciation and amortization 5,338   2,895 
Certain items (1) 4,036   6,914 
Interest component of certain items (1) (446)  (441)
Adjusted EBITDA (2) (6)$53,294  $54,875 
        


Adjusted Net Service Revenue Reconciliation:
  
 For the Three-
Month Periods
Ended March 31,
 2020 2019
Net service revenue$491,685 $467,340
Add:     
Certain items (1)   478
Adjusted net service revenue (3) (6)$491,685 $467,818
      


Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:
  
 For the Three-
Month Periods
Ended March 31,
 
  2020    2019  
Net income attributable to Amedisys, Inc $  31,802 $  31,304
Add:     
Certain items (1)   2,987    5,141
Adjusted net income attributable to Amedisys, Inc. (4) (6)$  34,789 $  36,445
      


Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation:
  
 For the Three-
Month Periods
Ended March 31,
 
  2020    2019  
Net income attributable to Amedisys, Inc. common stockholders per diluted share $  0.96 $  0.95
Add:     
Certain items (1)    0.09    0.16
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)$  1.05 $  1.11
      

(1)  The following details the certain items for the three-month periods ended March 31, 2020 and 2019:

Certain Items:

 For the Three-Month Period
Ended March 31, 2020

 For the Three-Month Period
Ended March 31, 2019
 (Income) Expense
 (Income) Expense
Certain Items Impacting Net Service Revenue:      
Contingency accrual$ $1,018 
Planned closures (7)   (540)
Certain Items Impacting Cost of Service:      
Planned closures (7)   844 
COVID-19 costs 1,017   
Certain Items Impacting Operating Expenses:      
Planned closures (7)   88 
Acquisition and integration costs 2,336  5,758 
Legal fees - non-routine   (132)
COVID-19 costs 12   
Certain Items Impacting Total Other Income (Expense):      
Interest component of certain items 446  441 
Other (income) expense, net 225  (563)
Total$4,036 $6,914 
Net of tax$2,987 $5,141 
Diluted EPS$0.09 $0.16 
       

(2)  Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.
(3)  Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)  Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(5)  Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(6)  Adjusted EBITDA, adjusted net service revenue, adjusted net income attributable to Amedisys, Inc. and adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes or other measures calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.
(7)  Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.

Primary Logo

Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.