Amedisys Reports Fourth Quarter Financial Results

  Amedisys Reports Fourth Quarter Financial Results

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

Business Wire

BATON ROUGE, La. -- March 12, 2014

Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company,
today reported its financial results for the fourth quarter and year ended
December 31, 2013.

Three-Month Periods Ended December 31, 2013 and 2012

• After adding back for the 2013 period, $9.6 million ($5.9 million, net of
income tax) or $0.19 per diluted share for certain items* and after adding
back for the 2012 period $151.0 million ($112.5 million, net of income tax) or
$3.71 per diluted share for the goodwill and other intangibles impairment
charge and certain other items*, our adjusted results from continuing
operations were as follows:

• Net service revenue of $303.5 million compared to $351.6 million in 2012, a
decrease of $48.1 million or 13.7%.

• Net loss from continuing operations attributable to Amedisys, Inc. of $2.2
million compared to net income from continuing operations of $6.3 million in
2012, a decrease of 135.5%. (Net loss from continuing operations attributable
to Amedisys, Inc. of $8.2 million compared to $106.2 million in 2012 on a GAAP
basis.)

• Net loss from continuing operations attributable to Amedisys, Inc. per
diluted share of $0.07 compared to net income from continuing operations
attributable to Amedisys, Inc. of $0.21 per diluted share in 2012, a decrease
of 133.3%. (Net loss from continuing operations attributable to Amedisys, Inc.
per diluted share $0.26 compared to $3.50 per diluted share in 2012 on a GAAP
basis.)

• Earnings before interest, taxes, depreciation and amortization attributable
to continuing operations (“EBITDA”) of $6.8 million compared to $21.6 million
in 2012, a decrease of 68.7%.

Twelve-Month Periods Ended December 31, 2013 and 2012

• After adding back for the 2013 period $158.2 million ($98.3 million, net of
income tax) or $3.14 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 $148.6 million ($110.1 million, net of income
tax) or $3.67 per diluted share for the goodwill and other intangibles
impairment charge and certain other items*, our adjusted results from
continuing operations were as follows:

• Net service revenue of $1,249.3 million compared to $1,440.8 million in
2012, a decrease of $191.5 million or 13.3%.

• Net income from continuing operations attributable to Amedisys, Inc., of
$5.2 million compared to $29.8 million in 2012, a decrease of 82.5%. (Net loss
from continuing operations attributable to Amedisys, Inc. of $93.1 million
compared to $80.3 million in 2012 on a GAAP basis.)

• Net income from continuing operations attributable to Amedisys, Inc. per
diluted share of $0.16 compared to $0.99 per diluted share in 2012, a decrease
of 83.8%. (Net loss from continuing operations attributable to Amedisys, Inc.
per diluted share $2.98 compared to $2.68 per diluted share in 2012 on a GAAP
basis.)

• EBITDA of $48.9 million compared to $97.3 million in 2012, a decrease of
49.7%.

Ronald A. LaBorde, Interim Chief Executive Officer stated, “While volumes were
flat sequentially, our results for the quarter were below the guidance
previously shared by the Company. An unexpected increase in employee
healthcare costs contributed to the lower results.”

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

We urge caution in considering the current trends disclosed in this press
release. The home health and hospice industry is highly competitive and
subject to intensive regulations, and trends are subject to numerous factors,
risks, and uncertainties, some of which are referenced in the cautionary
language below and others that are described more fully in our reports filed
with the Securities and Exchange Commission (“SEC”) including our Annual
Report on Form 10-K for the fiscal year ended December31, 2013, 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 Wednesday, March12, 2014, to either (877)512-9171 (Toll free) or
(815)573-0979 (Toll), use conference ID #40243209. A replay of the conference
call will be available through March19, 2014. The replay dial in number is
(855)859-2056 (Toll free) or (404)537-3406 (Toll), use conference ID
#40243209.

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 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 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 (loss) income from continuing operations attributable to Amedisys, Inc.,
defined as net loss 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 (loss)
income from continuing operations attributable to Amedisys, Inc. per diluted
share, defined as net loss 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

                                                As of December 31,
                                                   2013          2012
ASSETS
Current assets:
Cash and cash equivalents                          $ 17,303        $ 14,545
Patient accounts receivable, net of
allowance for doubtful accounts of $14,231           111,133         169,172
and $20,994
Prepaid expenses                                     10,669          10,631
Deferred income taxes                                55,329          —
Other current assets                                 10,785          11,440
Assets held for sale                                60            —       

Total current assets                                 205,279         205,788
                                                                   
Property and equipment, net of accumulated           159,025         156,709
depreciation of $129,891, and $113,154
Goodwill                                             208,915         209,594
Intangible assets, net of accumulated                36,690          47,050
amortization of $25,133 and $23,457
Deferred income taxes                                90,214          92,804
Other assets, net                                   26,283        18,650  
                                                                   
Total assets                                       $ 726,406      $ 730,595 
                                                                   
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable                                   $ 20,139        $ 29,175
Accrued charge related to U.S. Department of         150,000         —
Justice settlement
Payroll and employee benefits                        70,801          79,341
Accrued expenses                                     57,572          54,855
Current portion of long-term obligations             13,904          35,807
Current portion of deferred income taxes            —             5,609   
                                                                   
Total current liabilities                            312,416         204,787
Long-term obligations, less current portion          33,000          66,904
Other long-term obligations                         8,511         4,671   
                                                                   
Total liabilities                                   353,927       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; 33,413,970 and 31,876,508         33              32
shares issued; and 32,538,971 and 31,086,619
shares outstanding
Additional paid-in capital                           467,890         450,792
Treasury stock at cost, 874,999 and 789,889          (18,176 )       (17,116 )
shares of common stock
Accumulated other comprehensive income               15              15
Retained earnings                                   (77,561 )      18,617  
                                                                   
Total Amedisys, Inc. stockholders’ equity            372,201         452,340
Noncontrolling interests                            278           1,893   
                                                                   
Total equity                                        372,479       454,233 
                                                                   
Total liabilities and equity                       $ 726,406      $ 730,595 
                                                                             


Statement of Operations Information

                     For the Three-Month Periods      For the Years Ended December
                  Ended                          31,
                     December 31,
                     2013          2012             2013            2012
Net service          $ 303,497       $ 351,586        $ 1,249,344       $ 1,440,836
revenue
Cost of
service,
excluding              179,336         198,899          717,996           810,704
depreciation
and
amortization
General and
administrative
expenses:
Salaries and           73,806          81,337           302,564           327,111
benefits
Non-cash               1,586           1,152            6,519             7,217
compensation
Other                  41,457          46,921           164,991           182,345
Provision for
doubtful               3,445           5,291            15,882            21,011
accounts
Depreciation
and                    8,565           9,845            36,871            39,200
amortization
U.S.
Department of          —               —                150,000           —
Justice
settlement
Goodwill and
other
intangibles           5,664         162,103        9,492           162,103   
impairment
charge
                                                                        
Operating             313,859       505,548        1,404,315       1,549,691 
expenses
                                                                        
Operating loss         (10,362 )       (153,962 )       (154,971  )       (108,855  )
Other
(expense)
income:
Interest               14              13               54                65
income
Interest               (1,934  )       (6,095   )       (4,412    )       (12,116   )
expense
Equity in
earnings from          466             604              1,520             1,695
equity
investments
Miscellaneous,        (1,740  )      3,635          4,334           3,934     
net
                                                                        
Total other
(expense)             (3,194  )      (1,843   )      1,496           (6,422    )
income, net
                                                                        
Loss before            (13,556 )       (155,805 )       (153,475  )       (115,277  )
income taxes
Income tax            5,038         34,400         58,773          20,020    
benefit
                                                                        
Loss from
continuing             (8,518  )       (121,405 )       (94,702   )       (95,257   )
operations
Discontinued
operations,           (1,459  )      (602     )      (3,073    )      (3,326    )
net of tax
                                                                        
Net loss               (9,977  )       (122,007 )       (97,775   )       (98,583   )
Net loss
attributable
to                    349           15,195         1,597           14,995    
noncontrolling
interests
                                                                        
Net loss
attributable         $ (9,628  )     $ (106,812 )     $ (96,178   )     $ (83,588   )
to Amedisys,
Inc.
                                                                        
Basic and
diluted
earnings per
common share:
Loss from
continuing
operations
attributable         $ (0.26   )     $ (3.50    )     $ (2.98     )     $ (2.68     )
to Amedisys,
Inc. common
stockholders
Discontinued
operations,           (0.04   )      (0.02    )      (0.10     )      (0.11     )
net of tax
                                                                        
Loss
attributable
to Amedisys,         $ (0.30   )     $ (3.52    )     $ (3.08     )     $ (2.79     )
Inc. common
stockholders
                                                                        
Weighted
average shares        31,685        30,358         31,247          29,896    
outstanding
                                                                        
Amounts
attributable
to Amedisys,
Inc. common
stockholders:
Loss from
continuing           $ (8,169  )     $ (106,210 )     $ (93,105   )     $ (80,262   )
operations
Discontinued
operations,           (1,459  )      (602     )      (3,073    )      (3,326    )
net of tax
                                                                        
Net loss             $ (9,628  )     $ (106,812 )     $ (96,178   )     $ (83,588   )
                                                                                    

Cash Flow and Days Revenue Outstanding, Net Information

                   For the Three-Month Periods     For the Years Ended
                Ended                         December 31,
                   December 31,
                   2013          2012            2013          2012
Net cash
provided by        $ 8,401         $ 15,628        $ 102,263       $ 69,494
operating
activities
Net cash
used in              (11,002 )       (19,744 )       (46,458 )       (59,993 )
investing
activities
Net cash
used in             (23,722 )      (20,445 )      (53,047 )      (42,960 )
financing
activities
                                                                   
Net
(decrease)
increase in          (26,323 )       (24,561 )       2,758           (33,459 )
cash and
cash
equivalents
Cash and
cash
equivalents         43,626        39,106        14,545        48,004  
at beginning
of period
                                                                   
Cash and
cash
equivalents        $ 17,303       $ 14,545       $ 17,303       $ 14,545  
at end of
period
                                                                   
Days revenue
outstanding,                                         32.1            41.5
net (1)
                                                                             
(1) Our calculation of days revenue outstanding, net at December31, 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
December31, 2013 and 2012, respectively.



Supplemental Information - Home Health

                    For the Three-Month Periods Ended                                         For the Year
                       March 31, 2013   June 30, 2013    September 30,    December 31.       Ended December
                                                             2013               2013               31, 2013
Financial
Information (in
millions):
Medicare               $ 212.6            $ 204.6            $ 193.5            $ 193.1            $ 803.8
Non-Medicare            49.4             45.9             43.3             45.3             183.9     
                                                                                                   
Net service              262.0              250.5              236.8              238.4              987.7
revenue
Cost of service         150.4            143.3            140.8            144.4            578.9     
                                                                                                   
Gross margin             111.6              107.2              96.0               94.0               408.8
Other operating         84.8             81.6             79.5             79.4             325.3     
expenses
                                                                                                   
Operating income
before                 $ 26.8            $ 25.6            $ 16.5            $ 14.6            $ 83.5      
impairment (1)
                                                                                                   
Key Statistical
Data:
Medicare:
Same Store
Volume (2)
Revenue                  (8        )%       (10       )%       (12       )%       (11       )%       (10       )%
Admissions               2         %        0         %        (1        )%       (1        )%       0         %
Recertifications         (17       )%       (18       )%       (21       )%       (16       )%       (18       )%
Total (3):
Admissions               50,007             47,734             45,420             45,405             188,566
Recertifications         28,687             27,493             26,119             25,609             107,908
Completed                75,884             75,461             70,401             69,034             290,780
Episodes
Visits                   1,370,884          1,323,138          1,253,329          1,230,625          5,177,976
Average revenue
per completed          $ 2,778            $ 2,831            $ 2,822            $ 2,840            $ 2,817
episode (4)
Visits per
completed                17.5               17.7               17.3               17.5               17.5
episode (5)
                                                                                                   
Non-Medicare
(3):
Admissions               21,586             18,235             17,832             18,898             76,551
Recertifications         8,200              7,532              7,262              7,310              30,304
Visits                   422,357            380,502            358,819            370,103            1,531,781
                                                                                                   
Total (3):
Cost per Visit         $ 83.89            $ 84.09            $ 87.31            $ 90.21            $ 86.27
Visits                   1,793,241          1,703,640          1,612,148          1,600,728          6,709,757
                                                                                                   


                    For the Three-Month Periods Ended                                         For the Year
                       March 31, 2012   June 30, 2012    September 30,    December 31,       Ended December
                                                             2012               2012               31, 2012
Financial
Information (in
millions):
Medicare               $ 233.1            $ 231.3            $ 226.9            $ 224.0            $ 915.3
Non-Medicare            56.8             61.5             62.9             55.6             236.8     
                                                                                                   
Net service              289.9              292.8              289.8              279.6              1,152.1
revenue
Cost of service         164.5            166.6            168.5            161.8            661.4     
                                                                                                   
Gross margin             125.4              126.2              121.3              117.8              490.7
Other operating         92.7             89.4             90.0             89.8             361.9     
expenses
                                                                                                   
Operating income
before                 $ 32.7            $ 36.8            $ 31.3            $ 28.0            $ 128.8     
impairment (1)
                                                                                                   
Key Statistical
Data:
Medicare:
Same Store
Volume (2)
Revenue                  (8        )%       (9        )%       (5        )%       (7        )%       (7        )%
Admissions               (2        )%       2         %        1         %        1         %        0         %
Recertifications         (5        )%       (7        )%       (6        )%       (12       )%       (8        )%
Total (3):
Admissions               49,044             48,351             47,347             47,633             192,375
Recertifications         34,611             34,204             34,048             31,652             134,515
Completed                79,115             80,320             78,691             79,220             317,346
Episodes
Visits                   1,566,514          1,560,587          1,513,255          1,435,814          6,076,170
Average revenue
per completed          $ 2,876            $ 2,883            $ 2,863            $ 2,845            $ 2,867
episode (4)
Visits per
completed                18.7               19.1               18.9               18.4               18.8
episode (5)
                                                                                                   
Non-Medicare
(3):
Admissions               22,357             23,103             23,416             21,141             90,017
Recertifications         9,509              10,493             11,253             10,013             41,268
Visits                   488,223            525,325            534,242            463,894            2,011,684
                                                                                                   
Total (3):
Cost per Visit         $ 80.04            $ 79.88            $ 82.31            $ 85.17            $ 81.78
Visits                   2,054,737          2,085,912          2,047,497          1,899,708          8,087,854
                                                                                                   
(1) Operating income of $9.9 million and $75.0 million on a GAAP basis for the quarter and year ended
December31, 2013, respectively. Operating loss of $133.5 million and $32.8 million for the quarter and the year
ended December31, 2012, 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) Based on continuing operations for all periods presented.
(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare
completed episode of care excluding the impact of sequestration.
(5) Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by
the home health Medicare episodes completed during the period.



Supplemental Information - Hospice

                For the Three-Month Periods Ended                             For the
                                                                                   Year
                   March 31,       June 30,        September       December        Ended
                   2013          2013          30,           31,             December
                                                   2013            2013            31, 2013
Financial
Information
(in
millions):
Medicare           $ 62.8            61.6          $ 60.6          $ 61.4          $ 246.4
Non-Medicare        3.8           3.8           3.9           3.7           15.2   
                                                                                   
Net service          66.6            65.4            64.5            65.1            261.6
revenue
Cost of             35.2          34.5          34.5          34.9          139.1  
service
                                                                                   
Gross margin         31.4            30.9            30.0            30.2            122.5
Other
operating           19.7          18.1          17.8          16.9          72.5   
expenses
                                                                                   
Operating
income
before             $ 11.7          12.8         $ 12.2         $ 13.3         $ 50.0   
impairment
(1)
                                                                                   
Key
Statistical
Data:
Same store
Medicare             (5     )%       (12    )%       (13    )%       (8     )%       (9     )%
revenue
growth (2)
Hospice              4,957           4,655           4,352           4,371           18,335
admits
Average              5,071           5,006           4,917           4,866           4,964
daily census
Revenue per        $ 145.98          143.61        $ 142.52        $ 145.60        $ 144.43
day
Cost of
service per        $ 77.04           75.34         $ 75.79         $ 77.63         $ 76.45
day
Average
length of            103             99              98              98              100
stay
                   
                   For the Three-Month Periods Ended                               For the
                                                                                   Year
                   March 31,       June 30,        September       December        Ended
                   2012            2012            30,             31,             December
                                                   2012            2012            31, 2012
Financial
Information
(in
millions):
Medicare           $ 65.1          $ 69.6          $ 70.2          $ 67.8          $ 272.7
Non-Medicare        4.1           3.9           3.9           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          20.5          77.2   
expenses
                                                                                   
Operating
income
before             $ 15.3         $ 16.8         $ 15.8         $ 14.3         $ 62.2   
impairment
(1)
                                                                                   
Key
Statistical
Data:
Same store
Medicare             17     %        22     %        13     %        3      %        13     %
revenue
growth (2)
Hospice              4,854           4,849           4,667           4,629           18,999
admits
Average              5,171           5,478           5,592           5,381           5,406
daily 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) Operating income of $12.2 million and $49.0 million on a GAAP basis for the quarter and
year ended December31, 2013, respectively. Operating income of $13.8 million and $61.7
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
                   2013          2013          30, 2013       31, 2013      31, 2013
Financial
Information
(in
millions):
Depreciation
and                $ 6.7         $ 6.2         $ 6.0          $ 5.6         $ 24.5
amortization
U.S.
Department           —             —             150.0          —             150.0
of Justice
settlement
Other
operating           26.4        25.8        25.4         26.9        104.5  
expenses
                                                                            
Operating          $ (33.1 )     $ (32.0 )     $ (181.4 )     $ (32.5 )     $ (279.0 )
loss
                                                                            
                                                                            
                   For the Three-Month Periods Ended                        For the
                                                                            Year Ended
                   March 31,     June 30,      September      December      December
                   2012          2012          30, 2012       31, 2012      31, 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
                                                                            


AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAPP FINANCIAL MEASURES 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 Periods     For the Years
                   Ended December 31,              Ended December 31,
                   2013         2012             2013           2012
Net loss
attributable       $ (9,628 )     $ (106,812 )     $ (96,178  )     $ (83,588 )
to Amedisys,
Inc.
Less:
Discontinued
operations,         (1,459 )      (602     )      (3,073   )      (3,326  )
net of tax
                                                                    
Net loss
from
continuing
operations           (8,169 )       (106,210 )       (93,105  )       (80,262 )
attributable
to Amedisys,
Inc.
Add:
Provision
for income           (5,038 )       (34,400  )       (58,773  )       (20,020 )
taxes
Interest             1,920          6,082            4,358            12,051
expense, net
Depreciation
and                 8,565        9,845          36,871         39,200  
amortization
                                                                    
EBITDA (1)           (2,722 )       (124,683 )       (110,649 )       (49,031 )
Add:
Certain              9,626          151,013          158,177          148,609
items (2)
Debt fees            (118   )       (4,681   )       (118     )       (4,681  )
(2)
Tax
adjustments         —            —              1,534          2,404   
(2)
                                                                    
Adjusted
EBITDA               6,786          21,649           48,944           97,301
(GUIDANCE
BASIS) (3)
Add:
Legal fees          862          2,404          5,431          8,494   
                                                                    
Adjusted           $ 7,648       $ 24,053        $ 54,375        $ 105,795 
EBITDA (3)
                                                                    

Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys,
Inc. Reconciliation:
                                                   
                   For the Three-Month Periods     For the Years
                   Ended December 31,              Ended December 31,
                   2013           2012             2013             2012
Net loss
attributable       $ (9,628 )     $ (106,812 )     $ (96,178  )     $ (83,588 )
to Amedisys,
Inc.
Less:
Discontinued
Operations,         (1,459 )      (602     )      (3,073   )      (3,326  )
net of tax
                                                                    
Net loss
from
continuing
operations           (8,169 )       (106,210 )       (93,105  )       (80,262 )
attributable
to Amedisys,
Inc.
Add:
Certain             5,930        112,511        98,326         110,075 
items (2)
                                                                    
Adjusted net
(loss)
income from
continuing
operations           (2,239 )       6,301            5,221            29,813
attributable
to Amedisys,
Inc.
(GUIDANCE
BASIS) (4)
Add:
Legal fees          531          1,433          3,345          4,990   
                                                                    
Adjusted net
(loss)
income from
continuing         $ (1,708 )     $ 7,734         $ 8,566         $ 34,803  
operations
attributable
to Amedisys,
Inc. (4)
                                                                              


Adjusted Net (Loss) Income From Continuing Operations Attributable to
Amedisys, Inc. per Diluted Share:
                                                 
                       For the Three-Month Periods     For the Years
                       Ended December 31,              Ended December 31,
                       2013            2012          2013        2012
Net loss
attributable
to Amedisys,
Inc. common            $  (0.30  )       $ (3.52 )     $ (3.08 )     $ (2.79 )
stockholders
per diluted
share
Less:
Discontinued
operations,              (0.04  )        (0.02 )      (0.10 )      (0.11 )
net of tax
                                                                     
Net loss from
continuing
operations
attributable
to Amedisys,              (0.26  )         (3.50 )       (2.98 )       (2.68 )
Inc. common
stockholders
per diluted
share
Add:
Certain items            0.19           3.71        3.14        3.67  
(2)
                                                                     
Adjusted net
(loss) income
from
continuing
operations
attributable
to Amedisys,              (0.07  )         0.21          0.16          0.99
Inc. common
stockholders
per diluted
share
(GUIDANCE
BASIS) (5)
Add:
Legal fees               0.02           0.04        0.11        0.16  
                                                                     
Adjusted net
(loss) income
from
continuing
operations
attributable           $  (0.05  )       $ 0.25       $ 0.27       $ 1.15  
to Amedisys,
Inc. common
stockholders
per diluted
share (5)
                                                                     
(1) EBITDA is defined as net 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 U.S. Department of Justice settlement, proceeds from our D&O insurance and
certain other items for the three-months and years ended December31, 2013 and 2012:

                   For the Three-Month Period Ended December   For the Year Ended December 31, 2013
                      31, 2013
                      (Income)      Net           Diluted       (Income)      Net           Diluted
                      Expense                         EPS           Expense                         EPS
U.S. Department
of Justice            $ —               —               —           $ 150,000         93,878          3.00
settlement
Goodwill and
other
intangibles             5,664           3,489           0.11          9,492           5,847           0.18
impairment
charge
D&O proceeds            —               —               —             (5,530  )       (3,406  )       (0.11 )
Exit activity           2,313           1,425           0.05          3,882           2,391           0.08
costs
Gain on sale of         —               —               —             (779    )       (480    )       (0.01 )
care centers
Debt costs              966             595             0.02          966             595             0.02
Tax adjustment          —               —               —             (1,534  )       (1,534  )       (0.05 )
OIG                     —               —               —             997             614             0.02
self-disclosure
Sale of                683           421           0.01        683           421           0.01  
airplane
                                                                                                    
Total                 $ 9,626        $ 5,930        $ 0.19        $ 158,177      $ 98,326       $ 3.14  
                                                                                                    
                                                                    
                      For the Three-Month Period Ended December     For the Year Ended December 31, 2012
                      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
Exit activities
related to              2,707           1,613           0.05          2,707           1,590           0.05
continuing
operations
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
Tax adjustment         —             —             —           (2,404  )      (2,404  )      (0.08 )
                                                                                                    
Total                 $ 151,013      $ 112,511      $ 3.71       $ 148,609      $ 110,075      $ 3.67  
                                                                                                            
(3) Adjusted EBITDA is defined as net loss from continuing operations attributable to Amedisys, Inc. before
provision for income taxes, net interest expense, depreciation and amortization excluding 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 (loss) income from continuing operations attributable to Amedisys, Inc. is defined as net
loss 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 (loss) 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 (loss) 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 (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders
per diluted share is defined as diluted loss 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 certain other items*. Adjusted net (loss) 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 (loss) 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:
David Castille, 225-299-3391
Director, Treasury/Finance
david.castille@amedisys.com
or
Media Contact:
Kendra Kimmons, 225-299-3720
Managing Director, Marketing & Communications
kendra.kimmons@amedisys.com
 
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