Amedisys Reports Fourth Quarter Financial Results

  Amedisys Reports Fourth Quarter Financial Results

                             Issues 2013 Guidance

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

Business Wire

BATON ROUGE, La. -- March 12, 2013

Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company,
today reported its financial results for the fourth quarter and year ended
December31, 2012 and issued 2013 guidance.

Three-Month Periods Ended December31, 2012 and 2011

• After adding back $153.4 million and $11.3 million ($113.9 million and $7.1
million, net of income tax ) or $3.75 and $0.24 per diluted share for certain
items* in 2012 and 2011, the following would have been our adjusted results**:

• Net service revenue of $362.9 million compared to $370.3 million in 2011, a
decrease of $7.4 million or 2.0%.

• Net income from continuing operations attributable to Amedisys, Inc., of
$7.2 million compared to $14.5 million in 2011, a decrease of 50.5%.

• Net income from continuing operations attributable to Amedisys, Inc. per
diluted share of $0.23 compared to $0.49 per diluted share in 2011, a decrease
of 53.1%.

• Earnings before interest, taxes, depreciation and amortization attributable
to continuing operations (“EBITDA”) of $23.3 million compared to $35.9 million
in 2011, a decrease of 35.1%.

Twelve-Month Periods Ended December31, 2012 and 2011

• After adding back $159.5 million and $588.7 million ($115.1 million and
$441.7 million, net of income tax) or $3.83 and $15.36 per diluted share for
certain items* in 2012 and 2011, the following would have been our adjusted
results**:

• Net service revenue of $1,487.9 million compared to $1,463.6 million in
2011, an increase of $24.3 million or 1.7%.

• Net income from continuing operations attributable to Amedisys, Inc., of
$32.8 million compared to $66.8 million in 2011, a decrease of 50.9%.

• Net income from continuing operations attributable to Amedisys, Inc. per
diluted share of $1.08 compared to $2.29 per diluted share in 2011, a decrease
of 52.8%.

• EBITDA of $103.2 million compared to $157.1 million in 2011, a decrease of
34.3%.

William F. Borne, Chief Executive Officer stated, “I’m pleased to report that
after appropriate adjustments, we generated $1.00 in earnings per diluted
share for the year, falling within the guidance we provided at both the
beginning of the year and on our last earnings call. To better reflect core
operations and as a basis to present adjusted results going forward, we have
further adjusted earnings for legal costs associated with governmental
investigations which were incurred in each quarter of the year and tax credits
earned in the third quarter. On this basis, we earned $1.08 in earnings per
diluted share for the year, compared to $2.29 per diluted share in 2011. In
2012, we faced another year of significant reimbursement cuts, slow industry
growth, and limited acquisition opportunities. Yet, in addition to achieving
guidance, we had a number of accomplishments including stabilizing our
Medicare home health admissions, increasing our managed care business,
lowering operating costs in the face of declining volumes, continuing
development of our next generation operating system, and improving our capital
structure.

“Moving into 2013, in addition to a focus on growth, operational efficiency,
and clinical excellence, we are making significant investments in technology
and evolving our model of care. This differentiating strategy recognizes the
changes taking place within the health care industry. We believe these
investments will yield positive long-term results for our patients, our
partners, employees and shareholders.”

2013 Guidance

• Net service revenue is anticipated to be in the range of $1.425 billion to
$1.45 billion.

• Diluted earnings per share is expected to be in the range of $0.60 to $0.70
based on an estimated 31.5 million shares outstanding.

This guidance includes an estimate of legal costs associated with our on-going
government investigations and anticipates that the 2% Medicare sequestration
goes into effect April 1, 2013 on any admissions starting on or after that
date.

We urge caution in considering the current trends and 2013 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
December31, 2012, 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.

* See footnote 2 on page 10 for explanation of these certain items.

** See page 9 for the reconciliations of non-GAAP financial measures.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00
a.m. ET on Tuesday, March12, 2013, to either (877)490-9717 (Toll free) or
(704)385-4855 (Toll), use conference ID #15174665. A replay of the conference
call will be available through March19, 2013. The replay dial in number is
(855)859-2056 (Toll free) or (404)537-3406 (Toll), use conference ID
#15174665.

The call will also be available through our website and for seven days
thereafter at the following web address: http://investors.amedisys.com.

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 (loss) 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 certain items, adjusted net service revenue, defined as
net service revenue plus certain items, adjusted net income from continuing
operations attributable to Amedisys, Inc., defined as net income (loss) from
continuing operations attributable to Amedisys, Inc. plus the certain items
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 certain items. 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
                                                                
                                                     As of December 31,
                                                     2012          2011
ASSETS
Current assets:
Cash and cash equivalents                            $ 14,545      $ 48,004
Patient accounts receivable, net of allowance for      169,172       148,061
doubtful accounts of $20,994 and $17,438
Prepaid expenses                                       10,631        11,321
Other current assets                                  11,440      24,630  
                                                                   
Total current assets                                   205,788       232,016
Property and equipment, net of accumulated             156,709       148,536
depreciation of $113,154, and $94,266
Goodwill                                               209,594       334,695
Intangible assets, net of accumulated amortization     47,050        50,067
of $23,457 and $20,611
Deferred tax asset                                     92,804        68,649
Other assets, net                                     18,650      24,322  
                                                                   
Total assets                                         $ 730,595    $ 858,285 
                                                                   
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable                                     $ 29,175      $ 25,475
Payroll and employee benefits                          79,341        82,130
Accrued expenses                                       54,855        68,493
Current portion of long-term obligations               35,807        33,888
Current portion of deferred income taxes              5,609       11,748  
                                                                   
Total current liabilities                              204,787       221,734
Long-term obligations, less current portion            66,904        111,551
Other long-term obligations                           4,671       4,852   
                                                                   
Total liabilities                                     276,362     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; 31,876,508 and 30,328,549 shares           32            30
issued; and 31,086,619 and 29,639,735 shares
outstanding
Additional paid-in capital                             450,792       432,390
Treasury stock at cost, 789,889 and 688,814 shares     (17,116 )     (15,770 )
of common stock
Accumulated other comprehensive income                 15            13
Retained earnings                                     18,617      102,205 
                                                                   
Total Amedisys, Inc. stockholders’ equity              452,340       518,868
Noncontrolling interests                              1,893       1,280   
                                                                   
Total equity                                          454,233     520,148 
                                                                   
Total liabilities and equity                         $ 730,595    $ 858,285 
                                                                             

                                                            
Statement of
Operations
Information
                                                                 
                  For the Three-Month Periods    For the Years Ended December
                  Ended                          31,
                  December 31,
                  2012             2011          2012            2011
Net service       $  362,949       $ 370,279     $ 1,487,905     $ 1,468,305
revenue
Cost of
service,
excluding            206,243         201,783       841,146         780,606
depreciation
and
amortization
General and
administrative
expenses:
Salaries and         84,325          85,361        339,528         332,536
benefits
Non-cash             1,152           27            7,217           8,292
compensation
Other                48,573          48,591        188,514         184,819
Provision for
doubtful             5,441           3,780         21,676          13,514
accounts
Depreciation
and                  10,004          10,169        39,926          38,558
amortization
Goodwill and
other
intangibles         162,103       5,841       162,103       579,955   
impairment
charge
                                                                 
Operating           517,841       355,552     1,600,110     1,938,280 
expenses
                                                                 
Operating            (154,892  )     14,727        (112,205  )     (469,975  )
income (loss)
Other (expense)
income:
Interest income      13              6             65              231
Interest             (6,111    )     (2,129  )     (12,169   )     (8,822    )
expense
Equity in
earnings from        604             380           1,695           1,494
equity
investments
Miscellaneous,      3,636         6           3,917         (837      )
net
                                                                 
Total other         (1,858    )    (1,737  )    (6,492    )    (7,934    )
expense, net
                                                                 
(Loss) income
before income        (156,750  )     12,990        (118,697  )     (477,909  )
taxes
Income tax
(expense)           34,808        (5,555  )    21,397        103,076   
benefit
                                                                 
(Loss) income
from continuing      (121,942  )     7,435         (97,300   )     (374,833  )
operations
Discontinued
operations, net     (65       )    (3,115  )    (1,283    )    (7,509    )
of tax
                                                                 
Net (loss)           (122,007  )     4,320         (98,583   )     (382,342  )
income
Net loss
(income)
attributable to     15,195        (6      )    14,995        (122      )
noncontrolling
interests
                                                                 
Net (loss)
income            $  (106,812  )   $ 4,314      $ (83,588   )   $ (382,464  )
attributable to
Amedisys, Inc.
                                                                 
Basic earnings
per common
share:
(Loss) income
from continuing
operations
attributable to   $  (3.52     )   $ 0.26        $ (2.75     )   $ (13.07    )
Amedisys, Inc.
common
stockholders
Discontinued
operations, net     —             (0.11   )    (0.04     )    (0.26     )
of tax
                                                                 
Net (loss)
income
attributable to   $  (3.52     )   $ 0.15       $ (2.79     )   $ (13.33    )
Amedisys, Inc.
common
stockholders
                                                                 
Weighted
average shares      30,358        29,011      29,896        28,693    
outstanding
                                                                 
Diluted
earnings per
common share:
(Loss) income
from continuing
operations
attributable to   $  (3.52     )   $ 0.25        $ (2.75     )   $ (13.07    )
Amedisys, Inc.
common
stockholders
Discontinued
operations, net     —             (0.10   )    (0.04     )    (0.26     )
of tax
                                                                 
Net (loss)
income
attributable to   $  (3.52     )   $ 0.15       $ (2.79     )   $ (13.33    )
Amedisys, Inc.
common
stockholders
                                                                 
Weighted
average shares      30,358        29,415      29,896        28,693    
outstanding
                                                                 
Amounts
attributable to
Amedisys, Inc.
common
stockholders:
(Loss) income
from continuing   $  (106,747  )   $ 7,429       $ (82,305   )   $ (374,955  )
operations
Discontinued
operations, net     (65       )    (3,115  )    (1,283    )    (7,509    )
of tax
                                                                 
Net (loss)        $  (106,812  )   $ 4,314      $ (83,588   )   $ (382,464  )
income
                                                                             

                                                             
Cash Flow
Information
                                                                  
               For the Three-Month Periods        For the Years Ended December
               Ended                              31,
               December 31,
               2012              2011             2012            2011
Net cash
provided by    $  12,590         $  36,917        $  69,494       $ 141,210
operating
activities
Net cash
used in           (19,744  )        (12,047  )       (59,993  )     (180,710 )
investing
activities
Net cash
used in          (17,407  )       (6,328   )      (42,960  )    (32,791  )
financing
activities
                                                                  
Net
(decrease)
increase in       (24,561  )        18,542           (33,459  )     (72,291  )
cash and
cash
equivalents
Cash and
cash
equivalents      39,106          29,462         48,004       120,295  
at beginning
of period
                                                                  
Cash and
cash
equivalents    $  14,545        $  48,004       $  14,545      $ 48,004   
at end of
period
                                                                             


Supplemental Information - Home Health
                                                                                  
                    For the Three-Month Periods Ended                                   For the
                                                                                        Year Ended
                    March 31,        June 30,         September 30,    December 31,     December 31,
                    2012             2012             2012             2012             2012
Financial
Information (in
millions):
Medicare            $ 242.4          $ 241.0          $ 236.0          $ 233.2          $ 952.6
Non-Medicare         59.0           63.8           65.1           57.5           245.4     
                                                                                        
Net service           301.4            304.8            301.1            290.7            1,198.0
revenue
Cost of service      172.0          174.3          175.9          168.9          691.1     
                                                                                        
Gross margin          129.4            130.5            125.2            121.8            506.9
Provision for         5.0              4.1              4.8              3.9              17.8
doubtful accounts
Depreciation and      3.5              3.6              3.7              3.1              13.9
amortization
Other operating      89.3           86.5           87.3           87.7           350.8     
expenses
                                                                                        
Operating income
before impairment   $ 31.6          $ 36.3          $ 29.4          $ 27.1          $ 124.4     
(1)
                                                                                        
Key Statistical
Data:
Medicare:
Same Store Volume
(2)
Revenue               (8        )%     (9        )%     (6        )%     (7        )%     (7        )%
Admissions            (2        )%     2         %      0         %      1         %      0         %
Recertifications      (5        )%     (7        )%     (6        )%     (12       )%     (8        )%
Admissions            51,153           50,490           49,395           49,552           200,590
Recertifications      35,794           35,299           35,217           32,732           139,042
Completed             82,204           83,403           81,745           82,223           329,575
Episodes
Visits                1,625,473        1,620,174        1,571,071        1,490,536        6,307,254
Average revenue
per completed       $ 2,882          $ 2,891          $ 2,869          $ 2,853          $ 2,874
episode (3)
Visits per
completed episode     18.6             19.1             18.8             18.4             18.7
(4)
Non-Medicare:
Admissions:
Episodic              8,721            8,578            8,592            4,366            30,257
Non-episodic         14,471         15,248         15,570         17,470         62,759    
                                                                                        
Total                 23,192           23,826           24,162           21,836           93,016
Recertifications:
Episodic              5,005            5,211            5,317            2,434            17,967
Non-episodic         4,726          5,560          6,238          7,909          24,433    
                                                                                        
Total                 9,731            10,771           11,555           10,343           42,400
Visits:
Episodic              254,679          253,395          251,670          151,303          911,047
Non-episodic         249,719        288,663        298,524        326,493        1,163,399 
                                                                                        
Total                 504,398          542,058          550,194          477,796          2,074,446
Total:
Cost per Visit      $ 80.76          $ 80.61          $ 82.90          $ 85.83          $ 82.45
Visits                2,129,871        2,162,232        2,121,265        1,968,332        8,381,700
                                                                                                    


Supplemental Information - Home Health (continued)
                                                                                  
                    For the Three-Month Periods Ended                                   For the
                                                                                        Year Ended
                    March 31,        June 30,         September 30,    December 31,     December 31,
                    2011             2011             2011             2011             2011
Financial
Information (in
millions):
Medicare            $ 268.1          $ 267.2          $ 252.9          $ 249.5          $ 1,037.7
Non-Medicare         52.7           54.4           53.1           52.6           212.8     
                                                                                        
Net service           320.8            321.6            306.0            302.1            1,250.5
revenue
Cost of service      167.1          164.2          167.2          165.5          664.0     
                                                                                        
Gross margin          153.7            157.4            138.8            136.6            586.5
Provision for         3.2              2.1              3.9              3.1              12.3
doubtful accounts
Depreciation and      3.1              3.8              3.6              3.5              14.0
amortization
Other operating      85.2           83.0           85.1           86.9           340.2     
expenses
                                                                                        
Operating income
before impairment   $ 62.2          $ 68.5          $ 46.2          $ 43.1          $ 220.0     
(1)
                                                                                        
Key Statistical
Data:
Medicare:
Same Store Volume
(2)
Revenue               (16       )%     (16       )%     (15       )%     (15       )%     (15       )%
Admissions            (1        )%     (5        )%     (6        )%     (7        )%     (5        )%
Recertifications      (13       )%     (6        )%     (3        )%     (5        )%     (7        )%
Admissions            53,401           50,385           49,835           48,982           202,603
Recertifications      38,183           38,575           37,949           37,411           152,118
Completed             86,373           87,528           84,454           84,481           342,836
Episodes
Visits                1,675,730        1,659,890        1,644,181        1,586,743        6,566,544
Average revenue
per completed       $ 3,055          $ 3,049          $ 2,994          $ 3,010          $ 3,027
episode (3)
Visits per
completed episode     18.5             18.9             18.6             18.9             18.7
(4)
Non-Medicare:
Admissions:
Episodic              8,006            7,510            7,377            7,903            30,796
Non-episodic         10,546         10,456         10,930         11,152         43,084    
                                                                                        
Total                 18,552           17,966           18,307           19,055           73,880
Recertifications:
Episodic              5,078            5,217            5,378            5,154            20,827
Non-episodic         4,241          4,380          4,277          4,535          17,433    
                                                                                        
Total                 9,319            9,597            9,655            9,689            38,260
Visits:
Episodic              233,065          244,558          236,855          235,412          949,890
Non-episodic         197,808        201,081        203,667        201,809        804,365   
                                                                                        
Total                 430,873          445,639          440,522          437,221          1,754,255
Total:
Cost per Visit      $ 79.31          $ 77.98          $ 80.24          $ 81.75          $ 79.80
Visits                2,106,603        2,105,529        2,084,703        2,023,964        8,320,799

(1) Operating loss of $134.5 million and $37.2 million on a GAAP basis for the quarter and year ended
December31, 2012, respectively. Operating loss of $527.8 million, operating income of $37.3 million
and operating loss of $359.9 million on a GAAP basis for the quarter ended September30, 2011, the
quarter ended December31, 2011 and the year ended December31, 2011, respectively.
(2) Medicare revenue, admissions or recertifications growth is the percent increase (decrease) in our
Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue,
admissions or recertifications of the prior period.
(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each
Medicare completed episode of care.
(4) 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.



Supplemental Information – Hospice
                                                              
                For the Three-Month Periods Ended                   For the
                                                                    Year Ended
                March 31,    June 30,     September    December     December
                2012         2012         30,          31,          31,
                                          2012         2012         2012
Financial
Information
(in
millions):
Medicare        $ 65.3       $ 69.8       $ 70.6       $ 68.1       $ 273.8
Non-Medicare     4.1        3.9        3.9        4.2        16.1   
                                                                    
Net service       69.4         73.7         74.5         72.3         289.9
revenue
Cost of          36.5       38.0       38.2       37.3       150.0  
service
                                                                    
Gross margin      32.9         35.7         36.3         35.0         139.9
Provision for
doubtful          0.8          0.6          1.0          1.5          3.9
accounts
Depreciation
and               0.3          0.3          0.5          0.4          1.5
amortization
Other
operating        16.6       18.0       19.2       18.6       72.4   
expenses
                                                                    
Operating
income before   $ 15.2      $ 16.8      $ 15.6      $ 14.5      $ 62.1   
impairment
(1)
                                                                    
Key
Statistical
Data:
Same store
Medicare          17     %     22     %     13     %     3      %     13     %
revenue
growth (2)
Hospice           4,902        4,891        4,706        4,662        19,161
admits
Average daily     5,190        5,497        5,615        5,405        5,427
census
Revenue per     $ 147.07     $ 147.36     $ 144.17     $ 145.31     $ 145.94
day
Cost of
service per     $ 77.10      $ 75.78      $ 74.03      $ 74.92      $ 75.43
day
Average
length of         91           95           102          105          99
stay
                                                                             

                                                              
                                                                    
                For the Three-Month Periods Ended                   For the
                                                                    Year Ended
                March 31,    June 30,     September    December     December
                2011         2011         30,          31,          31,
                                          2011         2011         2011
Financial
Information
(in
millions):
Medicare        $ 36.1       $ 43.7       $ 60.4       $ 64.3       $ 204.5
Non-Medicare     2.4        3.1        3.9        3.9        13.3   
                                                                    
Net service       38.5         46.8         64.3         68.2         217.8
revenue
Cost of          20.2       25.2       34.9       36.3       116.6  
service
                                                                    
Gross margin      18.3         21.6         29.4         31.9         101.2
Provision for
doubtful          (0.1   )     0.2          0.4          0.7          1.2
accounts
Depreciation
and               0.1          0.2          0.2          0.2          0.7
amortization
Other
operating        9.4        10.8       14.5       15.3       50.0   
expenses
                                                                    
Operating       $ 8.9       $ 10.4      $ 14.3      $ 15.7      $ 49.3   
income
                                                                    
Key
Statistical
Data:
Same store
Medicare          20     %     21     %     17     %     17     %     19     %
revenue
growth (2)
Hospice           3,163        3,702        4,589        4,435        15,889
admits
Average daily     3,126        3,746        4,879        5,010        4,197
census
Revenue per     $ 136.87     $ 137.34     $ 143.17     $ 147.91     $ 142.14
day
Cost of
service per     $ 71.89      $ 73.99      $ 77.32      $ 78.20      $ 75.85
day
Average
length of         88           86           86           93           88
stay
                                                                    
(1) Operating income of $14.0 million and $61.6 million on a GAAP basis for
the quarter and year ended December31, 2012, respectively.
(2) Same store Medicare revenue growth is the percent increase in our Medicare
revenue for the period as a percent of the Medicare revenue of the period.



Supplemental Information – Corporate
                                                              
                For the Three-Month Periods Ended                   For the
                                                                    Year Ended
                March 31,   June 30,    September      December     December
                2012        2012        30,            31,          31,
                                        2012           2012         2012
Financial
Information
(in
millions):
Depreciation
and               6.3         6.0          5.8            6.4         24.5
amortization
Other
operating        28.0      31.6       24.6         27.9      112.1  
expenses
                                                                    
Operating       $ (34.3 )   $ (37.6 )   $  (30.4  )    $  (34.3 )   $ (136.6 )
income
                                                                    

                                                              
                For the Three-Month Periods Ended                   For the
                                                                    Year Ended
                March 31,   June 30,    September      December     December
                2011        2011        30,            31,          31,
                                        2011           2011         2011
Financial
Information
(in
millions):
Depreciation
and               6.0         5.6          5.9            6.4         23.9
amortization
Other
operating        35.1      33.2       35.4         31.8      135.5  
expenses
                                                                    
Operating       $ (41.1 )   $ (38.8 )   $  (41.3  )    $  (38.2 )   $ (159.4 )
income
                                                                             


AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL DATA AND

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except key statistical data)

(Unaudited)
                                                               
                            For the Three-Month          For the Year Ended
                            Periods Ended                December 31,
                            December 31,
                            2012             2011        2012          2011
Key Statistical Data:
General
Number of home health       435              439         435           439
care centers
Number of hospice care      97               87          97            87
centers
Number of care centers      —                1           11            23
acquired (1)
Number of care centers
opened as start-up          4                2           7             12
locations (1)
Days revenue                41.5             35.3        41.5          35.3
outstanding, net (2)
                                                                       
(1) Includes both home health and hospice care centers.
(2) Our calculation of days revenue outstanding, net at December 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 December
31, 2012 and 2011, respectively.



Earnings From Continuing Operations Before Interest, Taxes, Depreciation and
Amortization (“EBITDA”) and Adjusted EBITDA
                                                             
                For the Three-Month Periods        For the Year Ended December
                Ended                              31,
                December 31,
                2012               2011            2012           2011
Net (loss)
income from
continuing
operations      $  (106,747  )     $  7,429        $  (82,305 )   $ (374,955 )
attributable
to Amedisys,
Inc.
Add:
Provision for      (34,808   )        5,555           (21,397 )     (103,076 )
income taxes
Interest           6,098              2,123           12,104        8,591
expense, net
Depreciation
and               10,004           10,169        39,926      38,558   
amortization
                                                                  
EBITDA (1)      $  (125,453  )     $  25,276      $  (51,672 )   $ (430,882 )
                                                                  
Add:
Certain items      153,417            11,314          159,507       588,734
(2)
Debt fees (2)      (4,681    )        —               (4,681  )     —
Intangible        —                (737    )      —           (737     )
write-off (2)
                                                                  
Adjusted        $  23,283         $  35,853      $  103,154    $ 157,115  
EBITDA (3)
                                                                             


Adjusted Net Service Revenue Reconciliation
                                                          
                 For the Three-month Periods
                 Ended                         For the Year Ended December 31,
                 December 31,
                 2012            2011          2012             2011
Net service      $   362,949     $  370,279    $  1,487,905     $  1,468,305
revenue
Add:
Certain items       —             —            —               (4,733    )
(2)
                                                                
Adjusted net
service          $   362,949     $  370,279    $  1,487,905     $  1,463,572 
revenue (4)
                                                                             


Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc.
Reconciliation:
                                                             
                 For the Three-Month Periods     For the Year Ended December
                 Ended                           31,
                 December 31,
                 2012               2011         2012             2011
Net income
(loss) from
continuing
operations       $  (106,747  )     $  7,429     $  (82,305  )    $ (374,955 )
attributable
to Amedisys,
Inc.
Add:
Certain items      113,944          7,097       115,065       441,739  
(2)
                                                                  
Adjusted net
income from
continuing
operations       $  7,197          $  14,526    $  32,760       $ 66,784   
attributable
to Amedisys,
Inc. (5)
                                                                             


Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc.
per Diluted Share:
                                                           
                     For the Three-Month         For the Year Ended December
                     Periods Ended               31,
                     December 31,
                     2012            2011        2012            2011
Net income (loss)
from continuing
operations
attributable to      $  (3.52  )     $  0.25     $  (2.75  )     $  (13.07  )
Amedisys, Inc.
common
stockholders per
diluted share
Add:
Certain items(2)       3.75          0.24       3.83          15.36   
                                                                 
Adjusted net
income from
continuing
operations
attributable to      $  0.23        $  0.49     $  1.08        $  2.29    
Amedisys, Inc.
common
stockholders per
diluted share (6)
                                                                            
(1) EBITDA is defined as net income (loss) 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.



(2) The following details the certain items for the three-months and years ended December31,
2012 and 2011 (amounts in thousands, except per share data):
                                                                               
                  For the Three-Month Periods Ended       For the Twelve-Month Periods Ended
                  December 31, 2012                       December 31, 2012
                  (Income)      Net           Diluted     (Income)      Net           Diluted
                  Expense                     EPS         Expense                     EPS
Goodwill and
other
intangibles       $ 162,103       125,130       4.12        162,103       125,130       4.17
impairment
charge
Non-controlling
interests
portion of          (14,874 )     (14,874 )     (0.49 )     (14,874 )     (14,874 )     (0.50 )
impairment
charges
Severance           2,244         1,337         0.04        2,244         1,318         0.04
Lease               463           276           0.01        463           272           0.01
terminations
Debt costs          4,681         2,790         0.09        4,681         2,750         0.09
Lawsuit             (3,604  )     (2,148  )     (0.06 )     (3,604  )     (2,117  )     (0.06 )
settlement
Legal fees          2,404         1,433         0.04        8,494         4,990         0.16
State tax          —           —           —         —           (2,404  )    (0.08 )
credits
                                                                                      
Total             $ 153,417    $ 113,944    $ 3.75     $ 159,507    $ 115,065    $ 3.83  
                                                                                      
                                                                                 
                  For the Three-Month Periods Ended       For the Twelve-Month Periods Ended
                  December 31, 2011                       December 31, 2011
                  (Income)      Net           Diluted     Income        Net           Diluted
                  Expense                     EPS         (Expense)                   EPS
CMS Bonus         $ —           $ —           $ —         $ (4,733  )   $ (2,864  )   $ (0.10 )
Goodwill and
other
intangibles         5,841         3,897         0.13        579,955       438,464       15.25
impairment
charge
Valuation
allowance           —             —             —           —             (1,924  )     (0.07 )
adjustment
Severance           1,559         898           0.04        3,268         1,949         0.07
Exit activities
related to          2,502         1,489         0.05        3,370         2,014         0.07
continuing
operations
Legal fees          1,412         813           0.02        7,125         4,250         0.15
Certain costs      —           —           —         (251    )    (150    )    (0.01 )
                                                                                      
Total             $ 11,314     $ 7,097      $ 0.24     $ 588,734    $ 441,739    $ 15.36 
                                                                                              
(3) Adjusted EBITDA is defined as net income (loss) from continuing operations attributable to
Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and
amortization plus certain items as described in footnote 2. Adjusted 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 adjusted 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.
(4) Adjusted net service revenue is defined as net service revenue plus certain items as
described in footnote 2. Adjusted net service revenue 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
adjusted net service revenue may not be comparable to a similarly titled measure reported by
other companies, since not all companies calculate this non-GAAP measure in the same manner.
(5) Adjusted net income from continuing operations attributable to Amedisys, Inc. is defined as
net income (loss) from continuing operations attributable to Amedisys, Inc. plus certain items
as described in footnote 2. Adjusted net income from continuing operations attributable to
Amedisys, Inc. 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 adjusted net income from continuing operations
attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by
other companies, since not all companies calculate this non-GAAP measure in the same manner.
(6) Adjusted net income from continuing operations attributable to Amedisys, Inc. common
stockholders per diluted share is defined as diluted earnings (loss) from continuing operations
per share plus the earnings per share effect of certain items as described in footnote 2.
Adjusted net income from continuing operations 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, cash flow from operating activities, or other
traditional indicators or operating performance. This calculation of adjusted net income from
continuing operations attributable to Amedisys, Inc. common stockholders per diluted share 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.


Contact:

Amedisys, Inc.
Investor Relations:
Kevin LeBlanc, 225-292-2031
Director of Investor Relations
kevin.leblanc@amedisys.com
or
Media Relations:
Jacqueline Chen Valencia, 225-299-3688
Senior Vice President - Marketing& Communications
jacqueline.chen@amedisys.com