Amedisys Reports First Quarter Financial Results and Updates 2013 Guidance

  Amedisys Reports First Quarter Financial Results and Updates 2013 Guidance

           Amedisys to Host Conference Call Today at 10:00 a.m. ET

Business Wire

BATON ROUGE, La. -- April 30, 2013

Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company,
today reported its financial results for the first quarter ended March31,
2013.

Three-Month Periods Ended March31, 2013 and 2012

After adding back $2.0 million and $3.7 million ($1.2 million and $2.2
million, net of tax) or $0.04 and $0.07 per diluted share for legal fees
associated with investigations, the following would have been our adjusted
results:*

  *Net service revenue of $339.2 million compared to $370.8 million in 2012,
    a decrease of 8.5%.
  *Net income from continuing operations attributable to Amedisys, Inc., of
    $3.9 million compared to $8.6 million in 2012, a decrease of 54.8%.
  *Net income from continuing operations attributable to Amedisys, Inc. per
    diluted share of $0.13 compared to $0.29 per diluted share in 2012, a
    decrease of 55.2%.
  *Earnings before interest, taxes, depreciation and amortization
    attributable to continuing operations (“EBITDA”) of $17.3 million compared
    to $26.9 million in 2012, a decrease of 35.8%.

William F. Borne, Chief Executive Officer stated, “Results for the first
quarter were impacted by declining volumes and sequestration, but slightly
offset by year-over-year increases in admissions and cost control efforts.
Clearly, despite encouraging trends, quarterly performance did not meet our
expectations. Consequently, we are implementing plans to consolidate or divest
non-performing care centers, trim our corporate infrastructure and refine our
patient care management strategy focused on delivering the optimal level of
care to drive improved clinical outcomes for our patients. We believe these
initiatives, along with a strong focus on volume growth and continued cost
control efforts, will position Amedisys to capitalize on the changing
healthcare landscape and continue to provide the best care for our patients in
the lowest cost setting.”

2013 Guidance

  *Net service revenue is anticipated to be in the range of $1.280 billion to
    $1.320 billion.
  *Diluted earnings per share is expected to be in the range of $0.45 to
    $0.55 based on an estimated 31.5million shares outstanding.

This guidance excludes any one-time costs associated with our announced market
exit activity or corporate expense initiatives. Our guidance includes an
estimate of legal costs associated with our on-going government
investigations.

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 page 7 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, April30, 2013, to either (877)512-9171 (Toll free) or
(815)573-0979 (Toll), use conference ID #35067959. A replay of the conference
call will be available through May7, 2013. The replay dial in number is
(855)859-2056 (Toll free) or (404)537-3406 (Toll), use conference ID
#35067959.

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 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 legal fees associated with investigations, adjusted net
income from continuing operations attributable to Amedisys, Inc., defined as
net income from continuing operations attributable to Amedisys, Inc. plus
legal fees associated with investigations, and adjusted net income from
continuing operations attributable to Amedisys, Inc. per diluted share,
defined as net income from continuing operations attributable to Amedisys,
Inc. common stockholders per diluted share plus the earnings per share effect
of legal fees associated with investigations. 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
                                                             
                                                             
                                          March 31, 2013     December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents                 $  7,021           $   14,545
Patient accounts receivable, net of
allowance for doubtful accounts of           144,659             169,172
$18,991 and $20,994
Prepaid expenses                             14,478              10,631
Other current assets                        16,229            11,440    
Total current assets                         182,387             205,788
Property and equipment, net of
accumulated depreciation of $118,280,        156,481             156,709
and $113,154
Goodwill                                     209,994             209,594
Intangible assets, net of accumulated        46,792              47,050
amortization of $24,119 and $23,457
Deferred tax asset                           91,808              92,804
Other assets, net                           24,855            18,650    
Total assets                              $  712,317        $   730,595   
                                                             
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable                          $  27,646          $   29,175
Payroll and employee benefits                78,919              79,341
Accrued expenses                             57,054              54,855
Current portion of long-term                 35,807              35,807
obligations
Current portion of deferred income          3,395             5,609     
taxes
Total current liabilities                    202,821             204,787
Long-term obligations, less current          42,952              66,904
portion
Other long-term obligations                 4,761             4,671     
Total liabilities                           250,534           276,362   
                                                             
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;
32,173,099 and 31,876,508 shares             32                  32
issued; and 31,382,932 and 31,086,619
shares outstanding
Additional paid-in capital                   456,046             450,792
Treasury stock at cost, 790,167 and          (17,119  )          (17,116   )
789,889 shares of common stock
Accumulated other comprehensive              15                  15
income
Retained earnings                           21,296            18,617    
Total Amedisys, Inc. stockholders’           460,270             452,340
equity
Noncontrolling interests                    1,513             1,893     
Total equity                                461,783           454,233   
Total liabilities and equity              $  712,317        $   730,595   

                                                      
Income Statement Information
                                                             
                                   For the Three-Month Periods Ended March 31,
                                   2013                      2012
Net service revenue                $   339,175               $   370,833
Cost of service, excluding             192,504                   208,506
depreciation and amortization
General and administrative
expenses:
Salaries and benefits                  82,794                    87,077
Non-cash compensation                  2,056                     2,482
Other                                  43,562                    44,394
Provision for doubtful                 3,967                     5,863
accounts
Depreciation and amortization         10,123                  10,054    
Operating expenses                    335,006                 358,376   
Operating income                       4,169                     12,457
Other (expense) income:
Interest income                        11                        15
Interest expense                       (1,106    )               (2,074    )
Equity in earnings from equity         363                       305
investments
Miscellaneous, net                    59                      429       
Total other expense, net              (673      )              (1,325    )
Income before income taxes             3,496                     11,132
Income tax expense                    (1,363    )              (4,620    )
Income from continuing                 2,133                     6,512
operations
Discontinued operations, net          —                       (1,049    )
of tax
Net income                             2,133                     5,463
Net loss (income) attributable        546                     (43       )
to noncontrolling interests
Net income attributable to         $   2,679                $   5,420     
Amedisys, Inc.
Basic earnings per common
share:
Income from continuing
operations attributable to         $   0.09                  $   0.22
Amedisys, Inc. common
stockholders
Discontinued operations, net          —                       (0.04     )
of tax
Net income attributable to
Amedisys, Inc. common              $   0.09                 $   0.18      
stockholders
Weighted average shares               30,640                  29,389    
outstanding
Diluted earnings per common
share:
Income from continuing
operations attributable to         $   0.09                  $   0.22
Amedisys, Inc. common
stockholders
Discontinued operations, net          —                       (0.04     )
of tax
Net income attributable to
Amedisys, Inc. common              $   0.09                 $   0.18      
stockholders
Weighted average shares               31,104                  29,780    
outstanding
Amounts attributable to
Amedisys, Inc. common
stockholders:
Income from continuing             $   2,679                 $   6,469
operations
Discontinued operations, net          —                       (1,049    )
of tax
Net income                         $   2,679                $   5,420     

                                                      
Cash Flow Information
                                                             
                                   For the Three-Month Periods Ended March 31,
                                   2013                      2012
Net cash provided by operating     $   32,416                $   10,927
activities
Net cash used in investing             (16,825   )               (10,053   )
activities
Net cash used in financing            (23,115   )              (7,588    )
activities
Net decrease in cash and cash          (7,524    )               (6,714    )
equivalents
Cash and cash equivalents at          14,545                  48,004    
beginning of period
Cash and cash equivalents at       $   7,021                $   41,290    
end of period

                                                       
Supplemental Information—Home Health
                                                             
                                   For the Three-Month Periods Ended March 31,
                                   2013                      2012
Financial Information (in
millions):
Medicare                           $   221.1                 $  242.4
Non-Medicare                          51.2                   59.0       
Net service revenue                    272.3                    301.4
Cost of service                       157.1                  172.0      
Gross margin                           115.2                    129.4
Other operating expenses              89.7                   97.8       
                                                             
Operating income                   $   25.5                 $  31.6       
                                                             
Key Statistical Data:
Medicare:
Same Store Volume (1):
Revenue                                (8          )%           (8         )%
Admissions                             2           %            (2         )%
Recertifications                       (17         )%           (5         )%
Total:
Admissions                             52,122                   51,153
Recertifications                       29,698                   35,794
Completed Episodes                     78,816                   82,204
Visits                                 1,422,332                1,625,473
Average revenue per completed      $   2,782                 $  2,882
episode (2)
Visits per completed episode           17.4                     18.6
(3)
Non-Medicare:
Admissions                             22,423                   23,192
Recertifications                       8,407                    9,731
Visits                                 436,035                  504,398
Total:
Cost per Visit                     $   84.53                 $  80.76
Visits                                 1,858,367                2,129,871

      Medicare revenue, admissions or recertifications growth is the percent
(1)  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.
(2)   Average Medicare revenue per completed episode is the average Medicare
      revenue earned for each Medicare completed episode of care.
      Medicare visits per completed episode are the home health Medicare
(3)   visits on completed episodes divided by the home health Medicare
      episodes completed during the period.

                                                       
Supplemental Information—Hospice
                                                              
                                   For the Three-Month Periods Ended March 31,
                                   2013                       2012
Financial Information (in
millions):
Medicare                           $    63.0                  $   65.3
Non-Medicare                           3.9                     4.1      
Net service revenue                     66.9                      69.4
Cost of service                        35.4                    36.5     
Gross margin                            31.5                      32.9
Other operating expenses               19.8                    17.7     
Operating income                   $    11.7                 $   15.2     
Key Statistical Data:
Same store Medicare revenue             (5       )%               17       %
growth (1)
Hospice admits                          4,992                     4,902
Average daily census                    5,091                     5,190
Revenue per day                    $    146.07                $   147.07
Cost of service per day            $    77.10                 $   77.10
Average length of stay                  103                       91

      Same store Medicare revenue growth is the percent increase in our
(1)  Medicare revenue for the period as a percent of the Medicare revenue of
      the prior period.

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 and per share data)
(Unaudited)

                                                      
                                                                   
                                   For the Three-Month Periods Ended March 31,
                                   2013                            2012
Key Statistical Data:
General
Number of home health care         427                             437
centers
Number of hospice care centers     97                              88
Number of care centers             1                               —
acquired (1)
Number of care centers opened      —                               2
as start-up locations (1)
Days revenue outstanding, net      37.2                            38.4
(2)

(1)  Includes both home health and hospice care centers.
      Our calculation of days revenue outstanding, net at March 31, 2013 and
      2012 is derived by dividing our ending patient accounts receivable
(2)   (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 March 31, 2013 and 2012, respectively.

                                                       
Earnings From Continuing Operations Before Interest, Taxes, Depreciation and
Amortization (“EBITDA”) and Adjusted EBITDA:
                                                                
                                   For the Three-Month Periods Ended March 31,
                                   2013                         2012
Net income from continuing
operations attributable to         $     2,679                  $    6,469
Amedisys, Inc.
Add:
Provision for income taxes               1,363                       4,620
Interest expense, net                    1,095                       2,059
Depreciation and                        10,123                     10,054
amortization
EBITDA (1)                         $     15,260                 $    23,202
Add:
Legal fees (investigations)             2,003                      3,707
Adjusted EBITDA (2)                $     17,263                 $    26,909


Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc.:
                                                      
                                   For the Three-Month Periods Ended March 31,
                                   2013                        2012
Net income from continuing
operations attributable to         $     2,679                 $     6,469
Amedisys, Inc.
Add:
Legal fees (investigations)             1,222                      2,169
Adjusted net income from
continuing operations              $     3,901                 $     8,638
attributable to Amedisys, Inc.
(3)

                                                       
Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc.
per Diluted Share:
                                                                
                                   For the Three-Month Periods Ended March 31,
                                   2013                         2012
Net income from continuing
operations attributable to         $      0.09                  $     0.22
Amedisys, Inc. common
stockholders per diluted share
Add:
Legal fees (investigations)              0.04                       0.07
Adjusted net income from
continuing operations
attributable to Amedisys, Inc.     $      0.13                  $     0.29
common stockholders per
diluted share (4)

      EBITDA is defined as net income 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
(1)  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.
      Adjusted EBITDA is defined as net income from continuing operations
      attributable to Amedisys, Inc. before provision for income taxes, net
      interest expense, depreciation and amortization plus legal fees
      associated with investigations. Adjusted EBITDA should not be considered
(2)   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.
      Adjusted net income from continuing operations attributable to Amedisys,
      Inc. is defined as net income from continuing operations attributable to
      Amedisys, Inc. plus legal fees associated with investigations. Adjusted
      net income from continuing operations attributable to Amedisys, Inc.
      should not be considered as an alternative to, or more meaningful than,
(3)   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.
      Adjusted net income from continuing operations attributable to Amedisys,
      Inc. common stockholders per diluted share is defined as diluted
      earnings from continuing operations per share plus the earnings per
      share effect of legal fees associated with investigations. Adjusted net
      income from continuing operations attributable to Amedisys, Inc. common
      stockholders per diluted share should not be considered as an
(4)   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 Contact:
Tom Dolan, 225-299-3391
Senior Vice President, Finance and Treasurer
tom.dolan@amedisys.com
or
Media Contact:
Kendra Kimmons, 225-299-3720
Director of Communications
kendra.kimmons@amedisys.com
 
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