Amedisys Reports Third Quarter Financial Results

  Amedisys Reports Third Quarter Financial Results

             Records U.S. Department of Justice Settlement Charge

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

Business Wire

BATON ROUGE, La. -- November 12, 2013

Amedisys, Inc. (NASDAQ:AMED), a leading home health and hospice company, today
reported its financial results for the third quarter ended September30, 2013.

U.S. Department of Justice Settlement Charge

During the third quarter of 2013, we recorded an accrual of $150 million
related to the tentative settlement of both the U.S. Department of Justice
investigation and the Stark Law Self-Referral matter (the “U.S. Department of
Justice settlement”). We have agreed to this tentative settlement without any
admission of wrongdoing in order to resolve these matters and to avoid the
uncertainty and expense of protracted litigation. In connection with the
tentative settlement, we expect to enter into a corporate integrity agreement
with the Office of the Inspector General – HHS.

On November11, 2013, we entered into a second amendment to our Credit
Agreement dated as of October26, 2012, amending certain covenants,
representations and other provisions to, among other things, allow for the
U.S. Department of Justice settlement. In connection with entering into the
second amendment, we repaid the $20 million outstanding principal amount of
our Series B Senior Notes due March25, 2014.

Three-Month Periods Ended September 30, 2013 and 2012

  *After adding back for the 2013 period $145.0 million ($90.2 million, net
    of tax) or $2.86 per diluted share for the U.S. Department of Justice
    settlement, proceeds from our D&O insurance and certain other items* and
    deducting for the 2012 period $1.4 million ($1.8 million, net of income
    tax) or $0.06 per diluted share for certain other items*, our adjusted
    results were as follows:

       *Net service revenue of $301.6 million compared to $364.3 million in
         2012.
       *Net (loss) income from continuing operations attributable to
         Amedisys, Inc., of $(0.2) million compared to $8.5 million in 2012.
         (Net (loss) income from continuing operations of $(90.4) million
         compared to $10.4 million in 2012 on a GAAP basis.)
       *Net (loss) income from continuing operations attributable to
         Amedisys, Inc. per diluted share of $(0.01) compared to $0.28 per
         diluted share in 2012. (Net (loss) income from continuing operations
         attributable to Amedisys, Inc. per diluted share of $(2.87) compared
         to $0.34 per diluted share in 2012 on a GAAP basis.)
       *Earnings before interest, taxes, depreciation and amortization
         attributable to continuing operations (“EBITDA”) of $8.7 million
         compared to $26.4 million in 2012.

Nine-Month Periods Ended September 30, 2013 and 2012

  *After adding back for the 2013 period $152.1 million ($94.6 million, net
    of tax) or $3.04 per diluted share for the U.S. Department of Justice
    settlement, proceeds from our D&O insurance and certain other items* and
    after adding back for the 2012 period $3.7 million ($1.2 million, net of
    income tax) or $0.04 per diluted share for certain other items*, our
    adjusted results were as follows:

       *Net service revenue of $947.1 million compared to $1.1 billion in
         2012.
       *Net income from continuing operations attributable to Amedisys, Inc.,
         of $10.1 million compared to $26.8 million in 2012. (Net (loss)
         income from continuing operations of $(84.5) million compared to
         $25.7 million in 2012 on a GAAP basis.)
       *Net income from continuing operations attributable to Amedisys, Inc.
         per diluted share of $0.32 compared to $0.89 per diluted share in
         2012. (Net (loss) income from continuing operations attributable to
         Amedisys, Inc. per diluted share of $(2.72) compared to $0.85 per
         diluted share in 2012 on a GAAP basis.)
       *EBITDA of $46.5 million compared to $81.5 million

* See page 10 & 11 for explanation of these certain items and the
reconciliations of non-GAAP financial measures

William F. Borne, Chief Executive Officer, stated, “Adjusting for the accrual
related to our U.S. Department of Justice settlement, and for other certain
items disclosed in more detail elsewhere in this earnings release, we reported
results for the quarter that were below expectations. We ended the quarter
with an adjusted loss from continuing operations of 1 cent per diluted share
which caused us to lower our guidance for the year. Consistent with previous
communications, these adjusted numbers do not include legal costs associated
with the U.S. Department of Justice and other matters. Results were impacted
by soft volume in both our home health and hospice business units and higher
costs, primarily in our home health cost of revenue line.

Updated 2013 Guidance

  *Net service revenue is anticipated to be in the range of $1.240 billion to
    $1.250 billion.
  *Diluted earnings per share is expected to be in the range of $0.20 to
    $0.25 based on an estimated 31.7 million shares outstanding.

This guidance excludes the accrual related to our U.S. Department of Justice
settlement, and other certain items disclosed in more detail elsewhere in this
earnings release. However, our guidance includes an estimate of legal costs
associated with our on-going legal matters.

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.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00
a.m. ET on Tuesday, November12, 2013, to either (877)512-9171 (Toll free) or
(815)573-0979 (Toll), use conference ID #93623188. A replay of the conference
call will be available through November19, 2013. The replay dial in number is
(855)859-2056 (Toll free) or (404)537-3406 (Toll), use conference ID
#93623188.

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, our ability to divest
care centers currently held for sale, 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, our ability to agree on the
terms of a settlement to resolve both the U.S. Department of Justice
investigation and the Stark Law Self-Referral matter or fund required
settlement payments in the manner currently contemplated and changes in law or
developments with respect to any litigation or investigations relating to the
Company, including the SEC investigation, the OIG Self-Disclosure issues 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 (loss) 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 excluding the accrual for the U.S. Department of Justice
settlement, proceeds from our D&O insurance and certain other items*, adjusted
net income from continuing operations attributable to Amedisys, Inc., defined
as net (loss) income from continuing operations attributable to Amedisys, Inc.
excluding the accrual for the U.S. Department of Justice settlement, proceeds
from our D&O insurance and certain other items*, and adjusted net income from
continuing operations attributable to Amedisys, Inc. per diluted share,
defined as net (loss) income from continuing operations attributable to
Amedisys, Inc. common stockholders per diluted share excluding the accrual for
the U.S. Department of Justice settlement, proceeds from our D&O insurance and
certain other 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
                                                                             
                                                  September 30,   December 31,
                                                  2013            2012
ASSETS
Current assets:
Cash and cash equivalents                         $  43,626       $  14,545
Patient accounts receivable, net of allowance        111,149         169,172
for doubtful accounts of $15,601 and $20,994
Prepaid expenses                                     11,460          10,631
Deferred income taxes                                57,008          —
Other current assets                                 9,819           11,440
Assets held for sale                                1,348         —       
                                                                             
Total current assets                                 234,410         205,788
Property and equipment, net of accumulated           160,077         156,709
depreciation of $125,392, and $113,154
Goodwill                                             208,126         209,594
Intangible assets, net of accumulated                42,332          47,050
amortization of $24,926 and $23,457
Deferred tax asset                                   83,123          92,804
Other assets, net                                   26,501        18,650  
                                                                             
Total assets                                      $  754,569     $  730,595 
                                                                             
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable                                  $  24,362       $  29,175
Accrued charge related to U.S. Department of         150,000         —
Justice settlement
Payroll and employee benefits                        68,923          79,341
Accrued expenses                                     54,340          54,855
Current portion of long-term obligations             34,855          35,807
Current portion of deferred income taxes            —             5,609   
                                                                             
Total current liabilities                            332,480         204,787
Long-term obligations, less current portion          36,000          66,904
Other long-term obligations                         8,297         4,671   
                                                                             
Total liabilities                                   376,777       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; 33,278,397 and 31,876,508         33              32
share issued; and 32,409,474 and 31,086,619
share outstanding
Additional paid-in capital                           462,962         450,792
Treasury stock at cost, 868,923 and 789,889          (18,080  )      (17,116 )
shares of common stock
Accumulated other comprehensive income               15              15
Retained earnings                                   (67,932  )     18,617  
                                                                             
Total Amedisys, Inc. stockholders’ equity            376,998         452,340
Noncontrolling interests                            794           1,893   
                                                                             
Total equity                                        377,792       454,233 
                                                                             
Total liabilities and equity                      $  754,569     $  730,595 
                                                                             

                                                            
                                                                             
Statement of
Operations
Information
                                                                             
                   For the Three-Month Periods   For the Nine-Month Periods
                   Ended September 30,           Ended September 30,
                   2013            2012          2013            2012
Net service        $  301,639      $ 364,343     $ 947,165       $ 1,090,673
revenue
Cost of service,
excluding             175,483        206,970       539,582         612,929
depreciation and
amortization
General and
administrative
expenses:
Salaries and          73,993         78,711        229,123         246,155
benefits
Non-cash              1,653          1,284         4,933           6,065
compensation
Other                 40,360         46,760        123,734         135,564
Provision for
doubtful              3,971          5,487         12,531          15,788
accounts
Depreciation and      10,471         9,771         32,152          29,375
amortization
U.S. Department
of Justice           150,000      —           150,000       —         
settlement
                                                                             
Operating            455,931      348,983     1,092,055     1,045,876 
expenses
                                                                             
Operating (loss)      (154,292 )     15,360        (144,890  )     44,797
income
Other income
(expense):
Interest income       18             10            40              52
Interest expense      (687     )     (1,982  )     (2,523    )     (6,058    )
Equity in
earnings from         354            390           1,054           1,091
equity
investments
Gain on sale of       1,451          —             1,808           —
care centers
Miscellaneous,       5,102        (9      )    5,296         298       
net
                                                                             
Total other
income               6,238        (1,591  )    5,675         (4,617    )
(expense), net
                                                                             
(Loss) income
before income         (148,054 )     13,769        (139,215  )     40,180
taxes
Income tax
benefit              56,962       (3,332  )    53,454        (14,296   )
(expense)
                                                                             
(Loss) income
from continuing       (91,092  )     10,437        (85,761   )     25,884
operations
Discontinued
operations, net      (686     )    (442    )    (2,036    )    (2,460    )
of tax
                                                                             
Net (loss)            (91,778  )     9,995         (87,797   )     23,424
income
Net loss
(income)
attributable to      709          (73     )    1,248         (200      )
noncontrolling
interests
                                                                             
Net (loss)
income             $  (91,069  )   $ 9,922      $ (86,549   )   $ 23,224    
attributable to
Amedisys, Inc.
                                                                             
Basic earnings
per common
share:
(Loss) income
from continuing
operations
attributable to    $  (2.87    )   $ 0.34        $ (2.72     )   $ 0.86
Amedisys, Inc.
common
stockholders
Discontinued
operations, net      (0.02    )    (0.01   )    (0.06     )    (0.08     )
of tax
                                                                             
Net (loss)
income
attributable to    $  (2.89    )   $ 0.33       $ (2.78     )   $ 0.78      
Amedisys, Inc.
common
stockholders
                                                                             
Weighted average
shares               31,505       30,055      31,102        29,741    
outstanding
                                                                             
Diluted earnings
per common
share:
(Loss) income
from continuing
operations
attributable to    $  (2.87    )   $ 0.34        $ (2.72     )   $ 0.85
Amedisys, Inc.
common
stockholders
Discontinued
operations, net      (0.02    )    (0.01   )    (0.06     )    (0.08     )
of tax
                                                                             
Net (loss)
income
attributable to    $  (2.89    )   $ 0.33       $ (2.78     )   $ 0.77      
Amedisys, Inc.
common
stockholders
                                                                             
Weighted average
shares               31,505       30,423      31,102        30,068    
outstanding
                                                                             
Amounts
attributable to
Amedisys, Inc.
common
stockholders:
(Loss) income
from continuing    $  (90,383  )   $ 10,364      $ (84,513   )   $ 25,684
operations
Discontinued
operations, net      (686     )    (442    )    (2,036    )    (2,460    )
of tax
                                                                             
Net (loss)         $  (91,069  )   $ 9,922      $ (86,549   )   $ 23,224    
income
                                                                             

                                                              
                                                                             
Cash Flow and Days Revenue Outstanding, Net Information
                                                                             
                 For the Three-                      For the Nine-
                 Month Periods ended                 Month Periods ended
                 September 30,                       September 30,
                 2013              2012              2013          2012
Net cash
provided by      $  27,885         $  21,761         $ 93,862      $ 53,866
operating
activities
Net cash used
in investing        (11,241  )        (12,318  )       (35,456 )     (40,249 )
activities
Net cash used
in financing       (3,136   )       (7,495   )      (29,325 )    (22,515 )
activities
                                                                             
Net increase
(decrease) in       13,508            1,948            29,081        (8,898  )
cash and cash
equivalents
Cash and cash
equivalents        30,118          37,158         14,545      48,004  
at beginning
of period
                                                                             
Cash and cash
equivalents      $  43,626        $  39,106        $ 43,626     $ 39,106  
at end of
period
                                                                             
Days revenue
outstanding,        32.0              38.7             32.0          38.7
net(1)
                                                                             
(1) Our calculation of days revenue outstanding, net at September30, 2013 and
2012 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
September30, 2013 and 2012, respectively.
                                                                             

                                                                 
                                                                                  
Supplemental Information - Home Health
                                                                                  
                                                                      For the

                   For the Three-Month Periods Ended                  Nine-Month

                                                                      Period Ended
                   March 31,        June 30,         September 30,    September 30,
                   2013             2013             2013             2013
Financial
Information (in
millions):
Medicare           $ 213.0          $ 204.9          $ 193.7          $ 611.6
Non-Medicare        49.6           46.0           43.4           139.0     
                                                                                  
Net service          262.6            250.9            237.1            750.6
revenue
Cost of service     150.8          143.6          140.9          435.3     
                                                                                  
Gross margin         111.8            107.3            96.2             315.3
Other operating     85.0           81.8           79.7           246.5     
expenses
                                                                                  
Operating income   $ 26.8          $ 25.5          $ 16.5          $ 68.8      
                                                                                  
Key Statistical
Data:
Medicare:
Same Store
Volume (1)
Revenue              (8        %)     (10       %)     (12       %)     (10       %)
Admissions           3         %      0         %      (2        %)     0         %
Recertifications     (17       %)     (18       %)     (21       %)     (19       %)
Total (2):
Admissions           50,117           47,825           45,481           143,423
Recertifications     28,723           27,534           26,150           82,407
Completed            76,019           75,594           70,498           222,111
Episodes
Visits               1,373,446        1,325,248        1,254,903        3,953,597
Average revenue
per completed      $ 2,778          $ 2,831          $ 2,822          $ 2,810
episode (3)
Visits per
completed            17.5             17.7             17.3             17.5
episode (4)
Non-Medicare(2):
Admissions           21,675           18,283           17,884           57,842
Recertifications     8,223            7,555            7,279            23,057
Visits               423,903          381,770          359,822          1,165,495
Total(2):
Cost per Visit     $ 83.89          $ 84.11          $ 87.33          $ 85.05
Visits               1,797,349        1,707,018        1,614,725        5,119,092
                                                                                  

                                                                                    
                                                                                       
                   For the Three-Month Periods Ended                                   For the Year
                                                                                       Ended
                   March 31,       June 30,        September 30,   December 30,     December 31,
                   2012             2012             2012             2012             2012
Financial
Information (in
millions):
Medicare           $ 233.4          $ 231.7          $ 227.2          $ 224.3          $ 916.6
Non-Medicare        57.0           61.6           63.0           55.8           237.4     
                                                                                                   
Net service          290.4            293.3            290.2            280.1            1,154.0
revenue
Cost of service     164.8          167.0          168.9          162.1          662.8     
                                                                                                   
Gross margin         125.6            126.3            121.3            118.0            491.2
Other operating     92.9           89.6           90.2           90.0           362.7     
expenses
                                                                                                   
Operating income
before             $ 32.7          $ 36.7          $ 31.1          $ 28.0          $ 128.5     
impairment (5)
                                                                                                   
Key Statistical
Data:
Medicare:
Same Store
Volume (1)
Revenue              (8        %)     (8        %)     (5        %)     (7        %)     (7        %)
Admissions           (2        %)     2         %      1         %      1         %      0         %
Recertifications     (5        %)     (7        %)     (6        %)     (12       %)     (8        %)
Total (2):
Admissions           49,150           48,433           47,429           47,730           192,742
Recertifications     34,634           34,240           34,071           31,679           134,624
Completed            79,233           80,438           78,794           79,329           317,794
Episodes
Visits               1,569,067        1,563,444        1,515,731        1,438,125        6,086,367
Average revenue
per completed      $ 2,876          $ 2,884          $ 2,864          $ 2,846          $ 2,867
episode (3)
Visits per
completed            18.7             19.1             18.9             18.4             18.8
episode (4)
Non-Medicare
(2):
Admissions           22,406           23,160           23,469           21,209           90,244
Recertifications     9,528            10,518           11,273           10,040           41,359
Visits               489,276          526,712          535,280          465,248          2,016,516
Total (2):
Cost per Visit     $ 80.08          $ 79.91          $ 82.33          $ 85.19          $ 81.81
Visits               2,058,343        2,090,156        2,051,011        1,903,373        8,102,883
                                                                                                   
(1) Medicare revenue, admissions or recertifications volume 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 year.
(2) Based on continuing operations for all periods presented.
(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each
Medicare completed episode of care which excludes the impact of sequestration.
(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.
(5) Operating loss of $133.6 million and $33.1 million on a GAAP basis for the three-month period and
year ended December 31, 2012, respectively.
                                                                                                   

                                                            
                                                                            
Supplemental Information - Hospice
                                                                            
                                                                 For the

                     For the Three-Month Periods Ended           Nine-Month

                                                                 Period Ended
                     March 31,     June 30,      September 30,   September 30,
                     2013          2013          2013            2013
Financial
Information (in
millions):
Medicare             $ 62.8        $ 61.6        $  60.6         $   185.0
Non-Medicare          3.8         3.8          3.9            11.5   
                                                                            
Net service            66.6          65.4           64.5             196.5
revenue
Cost of service       35.2        34.5         34.5           104.2  
                                                                            
Gross margin           31.4          30.9           30.0             92.3
Other operating       19.7        18.1         17.8           55.6   
expenses
                                                                            
Operating income     $ 11.7       $ 12.8       $  12.2        $   36.7   
                                                                            
Key Statistical
Data:
Same store
Medicare revenue       (5     %)     (11    %)      (13     %)       (10    %)
growth (1)
Hospice Admits         4,957         4,655          4,352            13,964
Average daily          5,071         5,006          4,917            4,998
census
Revenue per day      $ 145.98      $ 143.61      $  142.52       $   144.04
Cost of service      $ 77.04       $ 75.34       $  75.79        $   76.06
per day
Average length of      103           99             98               100
stay
                                                                            

                                                              
                                                                    For the
                For the Three-Month Periods Ended                   Year
                                                                    Ended
                March 31,    June 30,     September    December     December
                2012         2012         30,          31,          31,
                                          2012         2012         2012
Financial
Information
(in
millions):
Medicare        $ 65.1       $ 69.5       $ 70.3       $ 67.8       $ 272.7
Non-Medicare     4.1        4.0        3.8        4.1        16.0   
                                                                             
Net service       69.2         73.5         74.1         71.9         288.7
revenue
Cost of          36.3       37.8       38.1       37.1       149.3  
service
                                                                             
Gross margin      32.9         35.7         36.0         34.8         139.4
Other
operating        17.6       18.9       20.2       20.9       77.6   
expenses
                                                                             
Operating       $ 15.3      $ 16.8      $ 15.8      $ 13.9      $ 61.8   
income
                                                                             
Key
Statistical
Data:
Same store
Medicare          17     %     22     %     13     %     3      %     13     %
revenue
growth (1)
Hospice           4,854        4,849        4,667        4,629        18,999
Admits
Average daily     5,171        5,478        5,592        5,381        5,406
census
Revenue per     $ 147.05     $ 147.31     $ 144.10     $ 145.24     $ 145.89
day
Cost of
service per     $ 77.00      $ 75.68      $ 73.97      $ 74.85      $ 75.34
day
Average
length of         92           95           102          106          99
stay
                                                                             
(1) Same store Medicare revenue volume is the percent increase (decrease) in
our Medicare revenue for the period as a percent of the Medicare revenue of
the prior year.
                                                                             

                                                            
                                                                             
Supplemental Information —Corporate
                                                                             
                                                                 For the

                         For the Three-Month Periods Ended       Nine-Month

                                                                 Period Ended
                         March 31,   June 30,    September 30,   September 30,
                         2013        2013        2013            2013
Financial Information
(in millions):
Depreciation and         $ 6.7       $ 8.5       $  7.5          $   22.7
amortization
U.S. Department of         —           —            150.0            150.0
Justice settlement
Other operating           26.4      25.8       25.5           77.7    
expenses
                                                                             
Operating (loss)         $ (33.1 )   $ (34.3 )   $  (183.0  )    $   (250.4  )
income
                                                                             

                                                              
                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             $ 6.2       $ 6.0       $  5.8         $  6.5       $ 24.5
amortization
Other
operating        28.1      31.6       25.8         27.8      113.3  
expenses
                                                                             
Operating       $ (34.3 )   $ (37.6 )   $  (31.6  )    $  (34.3 )   $ (137.8 )
(loss) income
                                                                             

                                                               
                                                                             
AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS
(Amounts in thousands)
(Unaudited)

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and
Amortization (“EBITDA”) and Adjusted EBITDA
                                                                             
                         For the Three-Month         For the Nine-Month
                         Periods Ended               Periods Ended
                         September 30,               September 30,
                         2013           2012         2013           2012
Net (loss) income from
continuing operations    $ (90,383  )   $ 10,364     $ (84,513  )   $ 25,684
attributable to
Amedisys, Inc.
Add:
Provision for income       (56,962  )     3,332        (53,454  )     14,296
taxes
Interest expense, net      669            1,972        2,483          6,006
Depreciation and          10,471       9,771      32,152       29,375 
amortization
                                                                             
EBITDA (1)               $ (136,205 )   $ 25,439    $ (103,332 )   $ 75,361 
                                                                             
Add:
Certain items (2)          144,955        (1,427 )     152,090        3,686
Intangible write-off       (1,542   )     —            (3,828   )     —
Tax adjustments           1,534        2,404      1,534        2,404  
                                                                             
Adjusted EBITDA (3)      $ 8,742       $ 26,416    $ 46,464      $ 81,451 
                                                                             

                                                               
                                                                             
Adjusted Net (Loss) Income From Continuing Operations Attributable to
Amedisys, Inc.:
                                                                             
                           For the Three-Month        For the Nine-Month
                           Periods Ended              Periods Ended
                           September 30,              September 30,
                           2013          2012         2013          2012
Net (loss) income from
continuing operations      $ (90,383 )   $ 10,364     $ (84,513 )   $ 25,684
attributable to
Amedisys, Inc.
Add:
Certain items (2)           90,181      (1,833 )    94,576      1,153  
                                                                             
Adjusted net (loss)
income from continuing     $ (202    )   $ 8,531     $ 10,063     $ 26,837 
operations attributable
to Amedisys, Inc. (4)
                                                                             

                                                                 
                                                                             
Adjusted Net (Loss) Income From Continuing Operations Attributable to
Amedisys, Inc. per Diluted Share:
                                                                             
                                  For the Three-Month     For the Nine-Month
                                  Periods Ended           Periods Ended
                                  September 30,           September 30,
                                  2013        2012        2013        2012
Net (loss) income from
continuing operations
attributable to Amedisys, Inc.    $ (2.87 )   $ 0.34      $ (2.72 )   $ 0.85
common stockholders per diluted
share
Add:
Certain items (2)                  2.86      (0.06 )    3.04      0.04 
                                                                             
Adjusted net (loss) income from
continuing operations
attributable to Amedisys, Inc.    $ (0.01 )   $ 0.28     $ 0.32     $ 0.89 
common stockholders per diluted
share (5)
                                                                             

(1) EBITDA is defined as net (loss) 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 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 U.S. Department of Justice settlement, proceeds
from our D&O insurance and certain other items for the three and nine month
periods ended September 30, 2013 and 2012:

                                                                              
                                                                                             
                   For the Three- Month                   For the Nine- Month
                   Period Ended                           Period Ended
                   September 30, 2013                     September 30, 2013
                   (Income)      Net          Diluted     (Income)      Net          Diluted
                   Expense                    EPS         Expense                    EPS
U.S. Department
of Justice         $ 150,000     $ 93,878     $ 2.98      $ 150,000     $ 93,878     $ 3.02
settlement
D&O proceeds         (5,530  )     (3,406 )     (0.11 )     (5,530  )     (3,406 )     (0.11 )
Exit activity        —             —            —           1,569         966          0.03
costs
Impairment of        1,542         950          0.03        3,828         2,358        0.08
intangibles
Gain on sale of      (1,451  )     (894   )     (0.03 )     (1,808  )     (1,114 )     (0.04 )
care centers
Legal fees           931           573          0.02        4,568         2,814        0.09
(investigations)
Tax adjustment       (1,534  )     (1,534 )     (0.05 )     (1,534  )     (1,534 )     (0.05 )
OIG                 997         614        0.02      997         614        0.02  
self-disclosure
                                                                                             
Total              $ 144,955    $ 90,181    $ 2.86     $ 152,090    $ 94,576    $ 3.04  
                                                                                             

                                                                            
                   For the Three- Month                  For the Nine- Month
                   Period Ended                          Period Ended
                   September 30, 2012                    September 30, 2012
                   (Income)     Net          Diluted     (Income)     Net          Diluted
                   Expense                   EPS         Expense                   EPS
Legal fees         $ 977        $ 571        $ 0.02      $ 6,090        3,557        0.12
(investigations)
Tax adjustment      (2,404 )    (2,404 )    (0.08 )    (2,404 )    (2,404 )    (0.08 )
                                                                                           
Total              $ (1,427 )   $ (1,833 )   $ (0.06 )   $ 3,686     $ 1,153     $ 0.04  
                                                                                           

(3) Adjusted EBITDA is defined as net (loss) income from continuing operations
attributable to Amedisys, Inc. before provision for income taxes, net interest
expense, depreciation and amortization excluding the accrual for the U.S.
Department of Justice settlement, proceeds from our D&O insurance and certain
other items*. 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 income from continuing operations attributable to Amedisys,
Inc. is defined as net (loss) income from continuing operations attributable
to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice
settlement, proceeds from our D&O insurance and certain other items*. 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.

(5) Adjusted net income from continuing operations attributable to Amedisys,
Inc. common stockholders per diluted share is defined as diluted (loss)
earnings from continuing operations per share excluding the earnings per share
effect of the accrual for the U.S. Department of Justice settlement, proceeds
from our D&O insurance and other certain other items*. 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:
Tom Dolan, 225-292-3391
Senior Vice President, Finance and Treasurer
tom.dolan@amedisys.com
or
Media Relations:
Jacqueline Chen Valencia, 225-299-3688
Senior Vice President – Marketing & Communications
jacqueline.chen@amedisys.com