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

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