Amedisys Reports First Quarter Financial Results

Amedisys Reports First Quarter Financial Results  Amedisys to Host Conference Call Today at 10:00 a.m. ET  BATON ROUGE, La., May 8, 2014 (GLOBE NEWSWIRE) -- Amedisys, Inc. (Nasdaq:AMED), a leading home health and hospice company, today reported its financial results for the first quarter ended March 31, 2014.  Three-Month Periods Ended March 31, 2014 and 2013    *After adding back for the 2014 period, $16.1 million ($9.9 million, net of     income tax ) or $0.31 per diluted share and for the 2013 period $2.0     million ($1.3 million, net of income tax) or $0.04 per diluted share for     certain items*, our adjusted results from continuing operations were as     follows:         *Net service revenue of $298.7 million compared to $328.6 million in          2013.                  *Net loss from continuing operations attributable to Amedisys, Inc. of          $2.2 million compared to net income from continuing operations of          $4.7 million in 2013. (Net loss from continuing operations          attributable to Amedisys, Inc. of $12.1 million compared to net          income from continuing operations attributable to Amedisys, Inc. of          $3.4 million in 2013 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 $0.15 per diluted share          in 2013. (Net loss from continuing operations attributable to          Amedisys, Inc. per diluted share $0.38 compared to net income from          continuing operations attributable to Amedisys Inc. per diluted share          of $0.11 per diluted share in 2013 on a GAAP basis.)                  *Earnings before interest, taxes, depreciation and amortization          attributable to continuing operations ("EBITDA") of $5.5 million          compared to $18.3 million in 2013.  * See "Reconciliation of Non-GAAP Measurements to GAAP Financial Statements".  Ronald A. LaBorde, Interim Chief Executive Officer stated, "We are extremely proud of our dedicated teams in the field that provide care for over 60,000 patients every day. Their consistent efforts continue to yield improvement in clinical outcomes. Where we have fallen short is translating that clinical focus to consistent operating results. Our efforts are focused on turning that around."  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 December 31, 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 Thursday, May 8, 2014, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #35785199. A replay of the conference call will be available through June 8, 2014. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #35785199.  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 fund required settlement payments in the manner agreed upon in our settlement agreement to resolve both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter, our ability to comply with requirements stipulated in our corporate integrity agreement 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 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 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 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                                               March31,2014 December31,2013 ASSETS                                                       Current assets:                                              Cash and cash equivalents                    $2,840        $17,303 Patient accounts receivable, net of allowance 115,350       111,133 for doubtful accounts of $14,131 and $14,231 Prepaid expenses                             13,675        10,669 Deferred income taxes                        57,325        55,329 Other current assets                         14,309        10,785 Assets held for sale                         18            60 Total current assets                         203,517       205,279 Property and equipment, net of accumulated    157,034       159,025 depreciation of $137,022 and $129,891 Goodwill                                     208,923       208,915 Intangible assets, net of accumulated         34,336        36,690 amortization of $25,279 and $25,133 Deferred income taxes                        95,991        90,214 Other assets, net                            27,589        26,283 Total assets                                 $727,390      $726,406                                                             LIABILITIES AND EQUITY                                       Current Liabilities:                                         Accounts payable                             $24,198       $20,139 Accrued charge related to U.S. Department of  150,000       150,000 Justice settlement Payroll and employee benefits                76,066        70,801 Accrued expenses                             61,498        57,572 Current portion of long-term obligations     12,952        13,904 Total current liabilities                    324,714       312,416 Long-term obligations, less current portion  30,000        33,000 Other long-term obligations                  9,761         8,511 Total liabilities                            364,475       353,927                                                             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; 33,484,218 and 33,413,970  33            33 shares issued; and 32,608,356 and 32,538,971 shares outstanding Additional paid-in capital                   470,851       467,890 Treasury stock at cost, 875,862 and 874,999   (18,191)      (18,176) shares of common stock Accumulated other comprehensive income       15            15 Retained earnings                            (89,978)      (77,561) Total Amedisys, Inc. stockholders' equity    362,730       372,201 Noncontrolling interests                     185           278 Total equity                                 362,915       372,479 Total liabilities and equity                 $727,390      $726,406                                                                   Statement of Operations Information                                                  FortheThree-MonthPeriods                                                   EndedMarch31,                                                  2014         2013 Net service revenue                              $298,739      $328,602 Cost of service, excluding depreciation and       177,008       185,667 amortization General and administrative expenses:                             Salaries and benefits                            83,171        79,840 Non-cash compensation                            431           2,056 Other                                            42,698        41,848 Provision for doubtful accounts                  4,894         3,854 Depreciation and amortization                    7,902         9,970 Other intangibles impairment charge              2,208         — Operating expenses                               318,312        323,235 Operating (loss) income                          (19,573)      5,367 Other (expense) income:                                          Interest income                                  6             11 Interest expense                                 (1,261)       (1,092) Equity in earnings from equity investments       787           363 Miscellaneous, net                               190           59 Total other expense, net                         (278)         (659) (Loss) income before income taxes                (19,851)      4,708 Income tax benefit (expense)                     7,618         (1,851) (Loss) income from continuing operations         (12,233)      2,857 Discontinued operations, net of tax              (277)         (724) Net (loss) income                                (12,510)      2,133 Net loss attributable to noncontrolling           93            546 interests Net (loss) income attributable to Amedisys, Inc. $(12,417)     $2,679                                                                 Basic earnings per common share:                                 (Loss) income from continuing operations attributable to Amedisys, Inc. common             $(0.38)       $0.11 stockholders Discontinued operations, net of tax              (0.01)        (0.02) Net (Loss) income attributable to Amedisys, Inc.  $(0.39)       $0.09 common stockholders Weighted average shares outstanding              31,864        30,640                                                                 Diluted earnings per common share:                               (Loss) income from continuing operations attributable to Amedisys, Inc. common             $(0.38)       $0.11 stockholders Discontinued operations, net of tax              (0.01)        (0.02) Net (loss) income attributable to Amedisys, Inc.  $(0.39)       $0.09 common stockholders Weighted average shares outstanding              31,864        31,104                                                                 Amounts attributable to Amedisys, Inc. common                    stockholders: (Loss) income from continuing operations         $(12,140)     $3,403 Discontinued operations, net of tax              (277)         (724) Net (loss) income                                $(12,417)     $2,679                                                                                                          Cash Flow and Days Revenue Outstanding, Net Information                                                   FortheThree-MonthPeriods                                                   EndedMarch31,                                                  2014           2013 Net cash (used in) provided by operating          $(6,342)      $32,416 activities Net cash used in investing activities            (4,920)       (16,825) Net cash used in financing activities            (3,201)       (23,115) Net decrease in cash and cash equivalents        (14,463)      (7,524) Cash and cash equivalents at beginning of period  17,303        14,545 Cash and cash equivalents at end of period       $2,840        $7,021 Days revenue outstanding, net (1)                33.6          37.2  (1) Our calculation of days revenue outstanding, net at March31, 2014 and 2013 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 March31, 2014 and 2013, respectively.                                                                Supplemental Information - Home Health                                                FortheThree-MonthPeriods                                                EndedMarch31,                                               2014           2013 Financial Information (in millions):                          Medicare                                      $188.7        $212.6 Non-Medicare                                  48.0          49.4 Net service revenue                           236.7         262.0 Cost of service                               144.0         150.5 Gross margin                                  92.7          111.5 Other operating expenses                      82.6          84.7 Operating income before impairment charges (1) $10.1         $26.8                                                              Key Statistical Data:                                         Medicare:                                                     Same Store Volume(2):                                         Revenue                                       (7%)          (8%) Admissions                                    (2%)          2% Recertifications                              (6%)          (17%) Total(3):                                                     Admissions                                    46,527        50,007 Recertifications                              25,778        28,687 Completed episodes                            67,472        75,884 Visits                                        1,204,539     1,370,884 Average revenue per completed episode(4)      $2,778        $2,778 Visits per completed episode(5)               16.9          17.5 Non-Medicare(3):                                              Admissions                                    21,193        21,586 Recertifications                              7,451         8,200 Visits                                        390,140       422,357 Total(3):                                                     Cost per Visit                                $90.28        $83.89 Visits                                        1,594,679     1,793,241  (1)Operating income of $8.9 million on a GAAP basis for the three-month period ended March31, 2014.  (2)Medicare revenue, admissions or recertifications same store 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 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 which excludes 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                                               FortheThree-MonthPeriods                                                Ended March31,                                               2014          2013 Financial Information (in millions):                         Medicare revenue                              $58.4        $62.8 Non-Medicare revenue                          3.6          3.8 Net service revenue                           62.0         66.6 Cost of service                               33.0         35.2 Gross margin                                  29.0         31.4 Other operating expenses                      17.6         19.7 Operating income before impairment charge (1) $11.4        $11.7                                                             Key Statistical Data:                                        Same store Medicare revenue growth (2)        (6%)         (5%) Hospice admits                                4,595        4,957 Average daily census                          4,721        5,071 Revenue per day                               $145.95      $145.98 Cost of service per day                       $77.47       $77.04 Average length of stay                        99           103  (1)Operating income of $10.4 million on a GAAP basis for the three-month period ended March31, 2014.  (2)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 period.                                                    Supplemental Information - Corporate                                      FortheThree-MonthPeriods                                      EndedMarch31,                                     2014          2013 Financial Information (in millions):               Other operating expenses            $34.0        $26.4 Depreciation and amortization       4.9          6.7                                                   Total                               $38.9        $33.1                                                      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                                            FortheThree-MonthPeriods                                            Ended March31,                                           2014                2013 Net (loss) income attributable to          $(12,417)          $2,679 Amedisys, Inc. Less:                                                          Discontinued operations, net of tax       (277)              (724)                                                               Net (loss) income from continuing          (12,140)           3,403 operations attributable to Amedisys, Inc. Add:                                                           Provision for income taxes                (7,618)            1,851 Interest expense, net                     1,255              1,081 Depreciation and amortization             7,902              9,970                                                               EBITDA (1)                                (10,601)           16,305 Add:                                                           Certain items (2)                         16,100             2,031 Adjusted EBITDA (3)                       $5,499             $18,336                                                                     Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:                                                    FortheThree-MonthPeriods                                                    Ended March31,                                                   2014            2013 Net (loss) income attributable to Amedisys, Inc.  $(12,417)      $2,679 Less:                                                              Discontinued Operations, net of tax               (277)          (724)                                                                   Net (loss) income from continuing operations       (12,140)       3,403 attributable to Amedisys, Inc. Add:                                                               Certain items (2)                                 9,918          1,251 Adjusted net (loss) income from continuing         $(2,222)       $4,654 operations attributable to Amedisys, Inc. (4)                                                                    Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:                                                    FortheThree-MonthPeriods                                                    Ended March31,                                                   2014           2013 Net (loss) income attributable to Amedisys, Inc.   $(0.39)       $0.09 common stockholders per diluted share Less:                                                             Discontinued operations, net of tax               (0.01)        (0.02) Net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders (0.38)        0.11 per diluted share Add:                                                              Certain items (2)                                 0.31          0.04 Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common   $(0.07)       $0.15 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 certain other items for the three-months ended March31, 2014 and 2013:                                                                               For the Three-Month Period   For the Three-Month Period                   Ended March31, 2014       Ended March31, 2013                  (Income) Net     DilutedEPS (Income)  Net     DilutedEPS                   Expense                      Expense Other intangibles impairment        $2,208  $1,360 $0.04      $—      $—    $— charge Exit and restructuring     9,954   6,132  0.19       —       —     — activity costs Relator fees     3,938   2,426  0.08       —       —     — Legal fees       —      —     —         2,031    1,251  0.04                                                             Total            $16,100 $9,918 $0.31      $2,031   $1,251 $0.04                                                              (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 certain other items as described in footnote 2. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.  (4)Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. is defined as net loss from continuing operations attributable to Amedisys, Inc. excluding certain other items as described in footnote 2. 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 certain other items as described in footnote 2. 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: Investor Contact:          Amedisys, Inc.          David Castille          Director, Treasury/Finance          (225) 299-3665          david.castille@amedisys.com                   Media Contact:          Amedisys, Inc.          Kendra Kimmons          Managing Director, Marketing & Communications          (225) 299-3720          kendra.kimmons@amedisys.com  Amedisys, Inc. logo