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Section 1: 8-K (FORM 8-K)

Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MAY 7, 2018

Commission File Number: 0-24260

 

LOGO

 

 

AMEDISYS, INC.

(Exact Name of Registrant as specified in its Charter)

 

 

 

Delaware   11-3131700

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

3854 American Way, Suite A, Baton Rouge, LA 70816

(Address of principal executive offices, including zip code)

(225) 292-2031 or (800) 467-2662

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


SECTION 2 — FINANCIAL INFORMATION

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 7, 2018, Amedisys, Inc. (“we,” “us,” “our” or the “Company”) issued a press release announcing our financial results for the first quarter ended March 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information presented in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered “filed” under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

SECTION 7 – REGULATION FD

 

ITEM 7.01. REGULATION FD DISCLOSURE

Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.

In addition, a copy of the supplemental slides which will be discussed during the Company’s earnings call at 11:00 a.m. ET on Tuesday, May 8, 2018 is attached to this report as Exhibit 99.2 and incorporated herein by reference.

The information presented in Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered “filed” under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act or the Exchange Act.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

 

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

 

99.1    Press release dated May 7, 2018, announcing the Company’s financial results for the first quarter ended March 31, 2018 (furnished only)
99.2    Supplemental slides provided in connection with the first quarter 2018 earnings call of the Company (furnished only)


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMEDISYS, INC.

(Registrant)

 

By:  

/s/ Scott G. Ginn

  Scott G. Ginn
  Chief Financial Officer
  (Principal Accounting Officer)

DATE: May 7, 2018

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS

AND REAFFIRMS 2018 GUIDANCE

BATON ROUGE, Louisiana (May 7, 2018) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period ended March 31, 2018.

Three Month Periods Ended March 31, 2018 and 2017

 

    Net service revenue increased $34.6 million to $399.3 million compared to $364.7 million in 2017(1).

 

    Net income attributable to Amedisys, Inc. of $27.2 million compared to $15.1 million in 2017.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.44 in 2017.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $41.7 million compared to $32.0 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. of $27.3 million compared to $16.0 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.47 in 2017.

 

* See pages 8 and 9 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

 

(1) Subsequent to our adoption of Accounting Standards Updates 2014-09 and 2015-14 on January 1, 2018, using the full retrospective method, all amounts previously classified as provision for doubtful accounts are now classified as implicit price concessions in determining the transaction price of our net service revenue.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of our first quarter results as once again we have made great progress in all four key areas of our strategy. Total home health admissions and volumes are moving in the right direction as our business development staffing strategy takes hold. Continued strong performance from our hospice segment, personal care growth and disciplined cost controls have helped to deliver significant increases in revenue, EBITDA and earnings per share as compared to the first quarter of 2017. We have once again improved our position as an industry leader in quality, having increased our STARs score for the twelfth straight quarter. Our continued focus on our employees can be seen in our stabilized turnover rates and the investment we have made in operational efficiency has resulted in increased productivity from our clinical staff. We will continue to focus on organic growth in all three of lines of business throughout the remainder of 2018 and have a balance sheet that provides flexibility to execute upon a range of capital allocation priorities. A special thanks to our nearly 18,000 employees that helped to deliver such an impressive quarter.”

2018 Guidance

 

    Net service revenue is anticipated to be in the range of $1.60 billion to $1.64 billion.

 

    Adjusted EBITDA is anticipated to be in the range of $158 million to $163 million.

 

    Adjusted diluted earnings per share is anticipated to be in the range of $2.97 to $3.08 based on an estimated 34.85 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2018 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, 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.


Earnings Call and Webcast Information

Amedisys will host a conference call on Tuesday, May 8, 2018, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through June 8, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13679111.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (3) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. We partner with 3,000 hospitals and 59,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With 17,900 employees, in 420 care centers in 34 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 369,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor 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. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, changes in or our failure to comply with existing federal and state laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, our ability to comply with requirements stipulated in our corporate integrity agreement and changes in law or developments with respect to any litigation relating to the Company, including 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.

 

1


Contact:                Investor Contact:    Media Contact:   
   Amedisys, Inc.    Amedisys, Inc.   
   David Castille    Kendra Kimmons   
   Managing Director, Treasury/Finance    Vice President, Marketing & Communications   
   (855) 259-2046    (225) 299-3720   
   [email protected]    [email protected]   

 

2


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the Three Month Period Ended March 31,  
     2018     2017  

Net service revenue

   $ 399,262   $ 364,661

Cost of service, excluding depreciation and amortization

     238,309     216,329

General and administrative expenses:

    

Salaries and benefits

     75,631     74,459

Non-cash compensation

     4,044     3,874

Other

     41,680     40,417

Depreciation and amortization

     3,593     4,417
  

 

 

   

 

 

 

Operating expenses

     363,257     339,496
  

 

 

   

 

 

 

Operating income

     36,005     25,165

Other income (expense):

    

Interest income

     120     19

Interest expense

     (1,703     (1,068

Equity in earnings (loss) from equity method investments

     1,860     (106

Miscellaneous, net

     601     1,112
  

 

 

   

 

 

 

Total other income (expense), net

     878     (43
  

 

 

   

 

 

 

Income before income taxes

     36,883     25,122

Income tax expense

     (9,563     (9,923
  

 

 

   

 

 

 

Net income

     27,320     15,199

Net income attributable to noncontrolling interests

     (161     (69
  

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 27,159   $ 15,130
  

 

 

   

 

 

 

Basic earnings per common share:

    

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.80   $ 0.45

Weighted average shares outstanding

     33,971     33,443

Diluted earnings per common share:

    

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.79   $ 0.44

Weighted average shares outstanding

     34,592     34,073

 

3


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands, except share data)

 

     March 31, 2018     December 31, 2017  
     (Unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 120,005   $ 86,363

Patient accounts receivable, net

     192,936     201,196

Prepaid expenses

     12,430     7,329

Other current assets

     18,148     16,268
  

 

 

   

 

 

 

Total current assets

     343,519     311,156

Property and equipment, net of accumulated depreciation of $130,877 and $146,814

     28,213     31,122

Goodwill

     322,199     319,949

Intangible assets, net of accumulated amortization of $31,288 and $30,610

     45,382     46,061

Deferred income taxes

     53,119     56,064

Other assets, net

     49,856     49,130
  

 

 

   

 

 

 

Total assets

   $ 842,288   $ 813,482
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Accounts payable

   $ 22,966   $ 25,384

Payroll and employee benefits

     88,585     89,936

Accrued expenses

     88,842     89,104

Current portion of long-term obligations

     10,417     10,638
  

 

 

   

 

 

 

Total current liabilities

     210,810     215,062

Long-term obligations, less current portion

     75,782     78,203

Other long-term obligations

     6,138     3,791
  

 

 

   

 

 

 

Total liabilities

     292,730     297,056
  

 

 

   

 

 

 

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; 35,861,469 and 35,747,134 shares issued; and 34,056,627 and 33,964,767 shares outstanding

     35     35

Additional paid-in capital

     575,926     568,780

Treasury stock at cost, 1,804,842 and 1,782,367 shares of common stock

     (55,019     (53,713

Accumulated other comprehensive income

     15     15

Retained earnings

     27,363     204
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     548,320     515,321

Noncontrolling interests

     1,238     1,105
  

 

 

   

 

 

 

Total equity

     549,558     516,426
  

 

 

   

 

 

 

Total liabilities and equity

   $ 842,288   $ 813,482
  

 

 

   

 

 

 

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET

(Amounts in thousands, except statistical information)

(Unaudited)

 

     For the Three Month Period Ended March 31,  
     2018     2017  

Cash Flows from Operating Activities:

    

Net income

   $ 27,320   $ 15,199

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     3,593     4,417

Non-cash compensation

     4,044     3,874

401(k) employer match

     2,567     2,227

Loss (gain) on disposal of property and equipment

     563     (16

Deferred income taxes

     2,945     9,445

Equity in (earnings) loss from equity method investments

     (1,860     106

Amortization of deferred debt issuance costs

     178     185

Return on equity investment

     625     150

Changes in operating assets and liabilities, net of impact of acquisitions:

    

Patient accounts receivable

     8,260     (6,152

Other current assets

     (6,982     (3,403

Other assets

     46     (990

Accounts payable

     (1,523     93

Accrued expenses

     (1,807     1,386

Other long-term obligations

     2,348     576
  

 

 

   

 

 

 

Net cash provided by operating activities

     40,317     27,097
  

 

 

   

 

 

 

Cash Flows from Investing Activities:

    

Proceeds from sale of deferred compensation plan assets

     462     565

Proceeds from the sale of property and equipment

     5     —  

Purchase of investment

     —       (256

Purchases of property and equipment

     (1,462     (4,385

Acquisitions of businesses, net of cash acquired

     (2,250     (4,099
  

 

 

   

 

 

 

Net cash used in investing activities

     (3,245     (8,175
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds from issuance of stock upon exercise of stock options and warrants

     125     653

Proceeds from issuance of stock to employee stock purchase plan

     597     612

Shares withheld upon stock vesting

     (1,305     (758

Non-controlling interest distribution

     (28     (42

Principal payments of long-term obligations

     (2,819     (1,250
  

 

 

   

 

 

 

Net cash used in financing activities

     (3,430     (785
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     33,642     18,137

Cash and cash equivalents at beginning of period

     86,363     30,197
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 120,005   $ 48,334
  

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

    

Cash paid for interest

   $ 1,065   $ 706
  

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ 2,813   $ 284
  

 

 

   

 

 

 

Days revenue outstanding, net (1)

     41.4     40.5

 

(1) Our calculation of days revenue outstanding, net at March 31, 2018 and 2017 is derived by dividing our ending net patient accounts receivable by our average daily net patient revenue for the three month period ended March 31, 2018 and 2017, respectively.

 

5


AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

     For the Three Month Period Ended March 31,  
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 205.0   $ 198.7

Non-Medicare

     79.1     68.9
  

 

 

   

 

 

 

Net service revenue

     284.1     267.6

Cost of service

     174.4     163.0
  

 

 

   

 

 

 

Gross margin

     109.7     104.6

Other operating expenses

     68.8     68.9
  

 

 

   

 

 

 

Operating income

   $ 40.9   $ 35.7
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     5     (3 %) 

Non-Medicare revenue

     14     11

Total admissions

     4     2

Total volume (2)

     7     1

Total Episodic admissions (3)

     3     3

Total Episodic volume (4)

     6     2

Key Statistical Data - Total (5):

    

Medicare:

    

Admissions

     49,455     49,628

Recertifications

     27,236     25,043
  

 

 

   

 

 

 

Total volume

     76,691     74,671

Completed episodes

     72,836     71,864

Visits

     1,314,126     1,263,098

Average revenue per completed episode (6)

   $ 2,792   $ 2,782

Visits per completed episode (7)

     17.2     16.9

Non-Medicare:

    

Admissions

     29,889     27,333

Recertifications

     12,432     10,224
  

 

 

   

 

 

 

Total volume

     42,321     37,557

Visits

     660,933     555,548

Total (5):

    

Visiting Clinician Cost per Visit

   $ 80.34   $ 81.08

Clinical Manager Cost per Visit

   $ 7.99   $ 8.53
  

 

 

   

 

 

 

Total Cost per Visit

   $ 88.33   $ 89.61
  

 

 

   

 

 

 

Visits

     1,975,059     1,818,646

 

(1) Same store information represents the percent increase (decrease) in our Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume of the prior period.
(2) Total volume includes all admissions and recertifications.
(3) Total Episodic admissions include admissions for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.
(4) Total Episodic volume includes admissions and recertifications for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.
(5) Total includes acquisitions.
(6) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.
(7) 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.

 

6


Segment Information - Hospice

 

     For the Three Month Period Ended March 31,  
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 91.8   $ 80.7

Non-Medicare

     5.5     2.9
  

 

 

   

 

 

 

Net service revenue

     97.3     83.6

Cost of service

     50.1     42.9
  

 

 

   

 

 

 

Gross margin

     47.2     40.7

Other operating expenses

     20.2     18.3
  

 

 

   

 

 

 

Operating income

   $ 27.0   $ 22.4
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     12     17

Non-Medicare revenue

     84     (23 )% 

Hospice admissions

     5     20

Average daily census

     12     16

Key Statistical Data - Total (2):

    

Hospice admissions

     6,933     6,505

Average daily census

     7,214     6,365

Revenue per day, net

   $ 149.80   $ 145.99

Cost of service per day

   $ 77.17   $ 75.03

Average discharge length of stay

     97     92

 

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period.
(2) Total includes acquisitions.

Segment Information - Personal Care

 

     For the Three Month Period Ended March 31,  
     2018      2017  

Financial Information (in millions):

     

Medicare

   $ —      $ —  

Non-Medicare

     17.9      13.5
  

 

 

    

 

 

 

Net service revenue

     17.9      13.5

Cost of service

     13.8      10.4
  

 

 

    

 

 

 

Gross margin

     4.1      3.1

Other operating expenses

     3.3      3.3
  

 

 

    

 

 

 

Operating income (loss)

   $ 0.8    $ (0.2
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     749,953      588,216

Clients served

     12,536      8,543

Shifts

     348,166      265,117

Revenue per hour

     23.85      22.97

Revenue per shift

     51.36      50.95

Hours per shift

     2.2      2.2

Segment Information - Corporate

 

     For the Three Month Period Ended March 31,  
     2018      2017  

Financial Information (in millions):

     

Other operating expenses

   $ 30.2    $ 29.5

Depreciation and amortization

     2.5      3.2
  

 

 

    

 

 

 

Total operating expenses

   $ 32.7    $ 32.7
  

 

 

    

 

 

 

 

7


AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

(Amounts in thousands)

(Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”):

 

     For the Three Month Period Ended March 31,  
     2018     2017  

Net income attributable to Amedisys, Inc.

   $ 27,159   $ 15,130

Add:

    

Income tax expense

     9,563     9,923

Interest expense, net

     1,583     1,049

Depreciation and amortization

     3,593     4,417

Certain items (1)

     188     1,466

Interest component of certain items (1)

     (383     —  
  

 

 

   

 

 

 

Adjusted EBITDA (2) (5)

   $ 41,703   $ 31,985
  

 

 

   

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:

 

     For the Three Month Period Ended March 31,  
     2018      2017  

Net income attributable to Amedisys, Inc.

   $ 27,159    $ 15,130

Add:

     

Certain items (1)

     139      887
  

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. (3) (5)

   $ 27,298    $ 16,017
  

 

 

    

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:

 

     For the Three Month Period Ended March 31,  
     2018      2017  

Net income attributable to Amedisys, Inc. common stockholders per diluted share

   $ 0.79    $ 0.44

Add:

     

Certain items (1)

     —        0.03
  

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (4) (5)

   $ 0.79    $ 0.47
  

 

 

    

 

 

 

 

(1) The following details the certain items for the three month periods ended March 31, 2018 and 2017:

Certain Items:

 

     For the Three Month Period
Ended March 31, 2018
    For the Three Month Period
Ended March 31, 2017
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Operating Expenses:

    

Acquisition costs

   $ 435   $ 682

Legal fees - non-routine

     562     123

Data center relocation

     —       714

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     —       (674

Miscellaneous, other (income) expense, net

     (809     621
  

 

 

   

 

 

 

Total

   $ 188   $ 1,466
  

 

 

   

 

 

 

Net of tax

   $ 139   $ 887
  

 

 

   

 

 

 

Diluted EPS

   $ —     $ 0.03
  

 

 

   

 

 

 

 

8


(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.
(3) Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(4) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(5) Adjusted EBITDA, adjusted net income attributable to Amedisys, Inc. and adjusted net income 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 or other measure calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.

 

9

(Back To Top)

Section 3: EX-99.2 (EX-99.2)

EX-99.2
1
1
Amedisys First Quarter 2018 Earnings Call
Supplemental Slides
May 8
2018
Exhibit
99.2
th


2
This presentation may include forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are based
upon current expectations and assumptions about our business that are subject to a
variety of risks and uncertainties that could cause actual results to differ materially from
those described in this presentation. You should not rely on forward-looking statements as
a prediction of future events.
Additional information regarding factors that could cause actual results to differ materially
from those discussed in any forward-looking statements are described in reports and
registration statements we file with the SEC, including our Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,
copies
of
which
are
available
on
the
Amedisys
internet
website
http://www.amedisys.com
or by contacting the Amedisys Investor Relations department at (225) 292-2031.
We disclaim any obligation to update any 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.
www.amedisys.com
NASDAQ: AMED
We encourage everyone to visit the
Investors Section of our website at
www.amedisys.com, where we have
posted additional important
information such as press releases,
profiles concerning our business and
clinical operations and control
processes, and SEC filings.
Forward-looking statements


3
Our Key Areas of Focus
Strategic areas of focus for 2018 and beyond
1
Organic
Growth
3
Clinical
Initiatives
4
Impact Capacity
and Productivity
5
M&A
2
Recruiting /
Retention
*Note: Home Health same store volume is admissions plus recertifications
Hospice: Continued
impressive growth rate
(Admissions +5%,
ADC +12%) for 1Q’18
Home Health*:   
Total same store
admission +4%, same
store episodic
admission +3%, total
same store volume
+7%, same store
episodic volume +6%
for 1Q’18
Personal Care:
Double digit growth in
billable hours / quarter
+27%
Fifth straight quarter
of increased BD FTE’s
ending 1Q’18 with 753
Targeting industry
leading employee
retention amongst all
employee categories
Focus on reduction of
clinical turnover
Quality: Amedisys
improves STARS
scores to 4.38 (July’18
preview) with 93% of
providers at 4+ STAR
rating
72 Amedisys providers
rated at 5-Stars in the
July’18 Preview
Continued focus on
reduction of 30-Day
and 60-Day ACH rate
reduction
Since April 2017,
skilled nursing
productivity up 8%, PT
productivity up 11%
and OT productivity
up ~1% -
helping to
drive down CPV
Director of Operations
(DOO) leadership
training underway
Focusing on
optimizing RN / LPN
& PT / PTA staffing
ratio
Preference to acquire
assets in Hospice,
Personal Care tuck-
in’s, and opportunistic
regional acquisitions
in Home Health
Unlevered balance
sheet (0.2x) gives us
access to capital
Pipeline strong but
price expectations
challenging –
will
continue to remain
disciplined on pricing


4
Highlights
and
Summary
Financial
Results
(Adjusted):
1Q
2018
(1)
Same store Home Health total admissions up (+4%). Hospice (+5% same store admissions) and Personal Care (+27%
billable hours) continue their strong growth
Amedisys
Consolidated
Revenue Growth: +9%
EBITDA: $42M (+30%)
EBITDA Margin: 10.4%
EPS: $0.79 (+68%)
1Q’18
Net debt: ($32.1M)
Leverage ratio: (0.2)x (net)
CFFO: $40.3M
Free cash flow
(4)
: $36.2M
DSO: 41.4 (vs. Q4’17 of 44.0)
Balance
Sheet &
Cash
Flow
1Q’18
Same
Store
Admissions:
Total: +4%
Episodic
(2)
: +3%
Same Store Volume
(3)
:
Total: +7%
Episodic
(2)
: +6%
Other
Statistics:
Revenue per Episode: $2,792 (+$10)
Total Cost per Visit: (1.4%)
Medicare Recert Rate: +260 bps
Home
Health
Growth Metrics
(5)
:
Billable hours/quarter: +27% 
Clients served: +47%
Personal
Care
Same Store Volume:
Admissions: +5%
ADC: +12%
Other
Statistics:
Revenue per Day: $149.80
(+2.6%)
Cost per day: +2.9%
Hospice
1Q’18
1Q’18
1Q’18
Adjusted
Financial
Results(1)
1Q’18
1.
The financial results for the three-month periods ended  March 31, 2017  and March 31, 2018 are adjusted for certain items and should be considered a non-GAAP financial measure.  A
reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2.
Episodic
admissions
and
volume
Includes
Medicare
and
non-Medicare
payors
that
bill
on
a
60-day
episode
of
care
basis.
3.
Same Store volume –
Includes admissions and recertifications.
4.
Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments.
5.
Includes acquisitions.
$ in Millions, except EPS
1Q17
1Q18
% Change
Home Health
267.5
284.1
6.2%
Hospice
83.6
97.3
16.4%
Personal Care
13.5
17.9
32.6%
Total Revenue
364.7
$                
399.3
$               
9.5%
Gross Margin %
40.7%
40.3%
Adjusted EBITDA
32.0
41.7
30.3%
8.8%
10.4%
Adjusted EPS
$0.47
$0.79
68.1%
Free cash flow
(5)
$23.4
$36.2
54.7%


5
5
OUR REVENUE SOURCES
Medicare FFS: Paid episodically over a 60 day
episode
Private Episodic: MA and Commercial plans
who pay us over a 60 day episode. Generally at
rates ~90% –
100% of Medicare
Per Visit: Managed care, Medicaid and private
payors reimbursing us per visit provided
Per Day Reimbursement:
Routine Care: Patient at home with
symptoms controlled –
99% of the Hospice
care AMED provides
Continuous Care: Patient at home with
uncontrolled symptoms
Inpatient Care: Patient in facility with
uncontrolled symptoms
Respite Care: Patient at facility with
symptoms controlled
71.1%
24.4%
4.5%
Amedisys Consolidated Revenue
Home Health
Hospice
Personal Care
72.1%
11.0%
16.9%
Home Health Revenue
Medicare FFS
Private Episodic
Per Visit
94.4%
5.6%
Hospice Revenue
Medicare FFS
Private


6
Home Health and Hospice Segment (Adjusted) –
1Q 2018
(
1)      
Revenue per Episode up +$10 y/y
Recert rate up +260 bps y/y
Y/Y CPV decrease of (1.4%) in Q1’18 despite planned wage
increases
Home Health Highlights
Same store average daily census (ADC) up 12% in Q1’18
Net revenue per day up 3%
y/y
Two providers over cap as of Q1’18: ~ $200k liability
Hospice Highlights
1.
The financial results for the three-month periods ended  March 31, 2017 and March 31, 2018 are adjusted for certain items and should be considered a non-GAAP financial measure. 
A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2.
Segment EBITDA does not include any corporate G&A expenses.
3.
Same store admissions and volume exclude 7 closed and consolidated care centers in FL during 2017.
Home health growth continues to move in the right direction; Hospice continues with double digit ADC growth
$ in Millions
1Q17
1Q18
Medicare
80.7
91.8
Non-Medicare
Hospice Revenue
$83.6
$97.3
Gross Margin %
48.6%
48.5%
Segment EBITDA
(2)
$22.6
$27.2
27.0%
28.0%
Operating Statistics
Admit growth -
same store
20%
5%
ADC growth -
same store
16%
12%
Admits
6,505
6,933
ADC
6,365
7,214
Avg. discharge length of stay
92
97
Revenue per day (net)
$145.99
$149.80
Cost per day
$75.03
$77.17
HOSPICE
HOME HEALTH
$ in Millions
1Q17
1Q18
Medicare
198.7
205.0
Non-Medicare
68.8
79.2
Home Health Revenue
$267.5
$284.1
Gross Margin %
39.1%
38.6%
Segment EBITDA
(2)
$36.6
$41.6
13.7%
14.6%
Operating Statistics
Same Store Growth
(3)
Total Admit
3%
4%
Total Volume
2%
7%
Episodic Admit
4%
3%
Episodic Volume
3%
6%
Revenue per Episode
2,782
2,792
Recert Rate
34.8%
37.4%
Total Cost per visit
$89.61
$88.33
2.9
5.5


7
$ in Millions
1Q17
2Q17
3Q17
4Q17
1Q18
Corp G&A
1Q17
2Q17
3Q17
4Q17
1Q18
Home Health Segment
68.0
68.2
68.2
69.0
67.1
Salary and Benefits
13.9
14.1
13.6
14.7
14.9
Acquisitions - Tenet
-
        
0.7
1.1
1.0
1.0
Other
11.0
10.5
9.4
9.9
11.5
Home Health Segment - Total
68.0
68.9
69.3
70.0
68.1
Corp. G&A Subtotal
24.9
24.6
23.0
24.6
26.4
% of HH Revenue
25.4%
25.5%
25.6%
24.8%
24.0%
Non-cash comp
2.4
3.0
2.7
3.0
2.7
Adjusted corporate G&A
27.3
27.6
25.7
27.6
29.1
Hospice Segment
18.0
18.8
18.6
20.0
19.5
Acquisitions - Tenet
-
        
0.2
0.4
0.5
0.4
Hospice Segment - Total
18.0
19.0
19.0
20.5
19.9
% of HSP Revenue
21.5%
21.0%
19.8%
20.9%
20.5%
Personal Care Segment
3.1
2.8
2.8
3.3
2.2
Acquisitions - HomeStaff & Intercity
0.2
         
0.2
         
0.2
         
1.0
          
1.0
          
Personal Care Segment - Total
3.3
3.0
3.0
4.3
3.2
% of PC Revenue
24.4%
21.0%
21.9%
23.8%
17.9%
Corporate Expenses
27.3
27.6
25.7
27.6
29.1
Acquisition Integration Costs
0.6
0.8
0.1
0.2
0.1
Total Corporate
27.9
28.4
25.8
27.8
29.2
% of Total Revenue
7.7%
7.6%
6.8%
7.0%
7.3%
Total
117.2
119.3
117.1
122.6
120.4
% of Total Revenue
32.1%
31.8%
30.8%
30.8%
30.2%
General
&
Administrative
Expenses
Adjusted
(1,2)
Notes:
Year over year total G&A as a percentage of revenue decreased 190 basis points
Home Health segment G&A: 140 bps y/y decrease as % of revenue
Hospice segment G&A: 100 bps decrease y/y as % of revenue
Personal Care segment G&A: 650 bps decrease y/y as % of revenue (Personal Care G&A reflects reclassification of certain support
personnel to corporate in 1Q’18)
Corporate G&A: 40 bps decrease y/y as % of total revenue
G&A has increased $3.2M in 1Q18 vs. 1Q17: Mainly driven by planned wage increases
1.
The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018
are adjusted for certain items and should be considered a non-GAAP financial measure.  A reconciliation of these non-GAAP financial measures is
included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2.
Adjusted G&A expenses do not include depreciation and amortization.
Impact of G&A cost control materializing as operational efficiencies are realized
32.1%
31.8%
30.8%
30.8%
30.2%
29.0%
29.5%
30.0%
30.5%
31.0%
31.5%
32.0%
32.5%
1Q17
2Q17
3Q17
4Q17
1Q18
Total G&A as a Percent of Revenue
G&A as a Percent of Revenue


8
Star scores continue to trend upwards: Among industry leaders
Note: Top Competitor Avg weighted by CCN count and include LHC, Kindred, AFAM, HLS and BKD
Metric
JAN 18
Release
APR 18
Release
JUL 18
PREVIEW
Quality of
Patient Care
4.22
4.30
4.38
Entities at 4+
Stars
88%
89%
93%
Metric
OCT 17
Release
JAN 18
Release
APR 18
Release
Patient Satisfaction
Star
3.56
3.85
3.94
Performance Over
Industry
+6%
+7%
+7%
Quality of Patient Care (QPC)
Patient Satisfaction (PS)
Amedisys maintains a 4-Star average in the July 2018 HHC preview with 93% of our providers at 4+ Stars and 64% at
4.5+ Stars
STAR score improvement for the twelfth consecutive quarter (from initial Jul 15 release to Jul 18 preview)
37 Amedisys providers (representing 72 care centers) rated at 5-Stars in the July 2018 preview
AMED received ~$250K in bonus payments related to Value Based Purchasing (VBP) during 1Q’18
QPC Industry Performance
3.00
3.50
4.00
4.50
Jul 15
Oct 15
Jan 16Apr 16
Jul 16
Oct 16
Jan 17Apr 17
Jul 17
Oct 17
Jan 18Apr 18
Jul 18
QPC Top Competitor
AMED QPC Score
QPC Industry Avg
PS Industry Performance
*Scoring methodology changed dropped entire industry’s PS STAR scores
3.00
3.50
4.00
4.50
Jan 16
Apr 16
Jul 16
Oct 16
Jan 17
Apr 17
Jul 17
Oct 17
Jan 18
Apr 18
PS Top Competitor
AMED PS Score
PS Industry Avg


9
Hospice Quality: Amedisys Hospice Continues to Move Towards Best-
in-Class
Hospice
Quality
99.9%
98.3%
98.4%
96.0%
99.4%
96.9%
98.9%
98.3%
98.6%
94.5%
94.8%
81.5%
97.6%
95.2%
93.6%
93.7%
70.0%
80.0%
90.0%
100.0%
Treatment
Preferences
Beliefs & Values
Addressed
Pain Screening
Pain Assessment
Dyspnea
Screening
Dyspnea
Treatment
Patient Treated
with an Opioid
Who Are Given a
Bowel Regimen
HIS Rollup/
Average*
Hospice Item Set (HIS) Preview -
May 2018
Jul 2016 -
Jun 2017 Discharges
AMED
CMS NAT
80.4%
77.8%
90.1%
89.4%
73.9%
75.0%
79.4%
83.9%
81.2%
80.0%
78.0%
91.0%
89.0%
75.0%
75.0%
81.0%
85.0%
81.0%
65.0%
75.0%
85.0%
95.0%
Communication
Timely Care
Treat with
Respect
Emo / Rel
Support
Help for
Symptoms
Hospice
Training
Rating of
Hospice Care
Willingness to
Recommend
CAHPS Roll-Up/
Average*
Hospice CAHPS Preview -
May 2018
Jul 2015 -
Jun 2017 Discharges
AMED
CMS NAT


10
Components
1Q’17
4Q’17
1Q’18
YoY Variance
Detail
Mitigation Plan
Salaries
$61.48
$61.80
$60.93
($0.55)
YoY
decrease driven by
increased
productivity
Staffing
mix optimization, productivity
and scheduling improvement initiatives
in place helped us overcome planned
salary increases
Contractors
$2.35
$2.93
$2.93
$0.58
YoY increased demand due to
increasing volumes
Focused efforts on filling positions with
full-time clinicians
Benefits
$10.09
$12.35
$9.84
($0.25)
Sequential
decline driven by
seasonality of health insurance
claims
Focus
on cost containment and spend
optimization with specific focus on high
cost claims
Transportation & Supplies
$7.16
$6.80
$6.64
($0.52)
YoY decrease primarily due to
transportation costs
More effective medical supply
contracting
cost initiatives are
underway
*Visiting Staff CPV
$81.08
$83.88
$80.34
($0.74)
Clinical
Managers
$8.53
$8.49
$7.99
($0.54)
Fixed cost associated with non-
visiting clinicians
Unit cost reduced
as volume increases
Total CPV
$89.61
$92.37
$88.33
($1.28)
Operational Excellence: Cost Per Visit (CPV)
Total CPV decreased due to improvement in clinician productivity
*Note: Direct comparison with industry competitors CPV calculation
$25.00
$50.00
$75.00
$100.00
1Q17
4Q17
1Q18
Cost Per Visit (CPV)
Salaries
Contractors
Benefits
Transportation
$81.08
$83.88
$80.34


11
Driving Top Line Growth
All three lines of business continue to grow.  Hospice drives another quarter of double digit ADC growth
and Home Health total same store volume continue to improve year over year
Volume
*Total Home Health Same Store Volumes exclude 7
closed and consolidated care centers in Florida in 2017
Hospice
ADC
Personal Care
Total Hours / Quarter
1.6%
3.1%
5.8%
7.4%
6.7%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
50,000
100,000
150,000
1Q17
2Q17
3Q17
4Q17
1Q18
YoY
Growth
15.6%
16.2%
14.1%
12.2%
11.9%
0.0%
5.0%
10.0%
15.0%
20.0%
0
2,000
4,000
6,000
8,000
10,000
1Q17
2Q17
3Q17
4Q17
1Q18
ADC
YoY Growth
0
200,000
400,000
600,000
800,000
1,000,000
1Q17
2Q17
3Q17
4Q17
1Q18
Billable Hours
Home Health
Total Same Store Volume*


12
Debt and Liquidity Metrics
Our debt levels remain very low at (0.2x) net leverage ratio, providing us ample flexibility and available
liquidity for strategic initiatives and inorganic growth opportunities
1.
Net debt defined as total debt outstanding ($88M) less cash balance ($120M).
2.
Leverage ratio (net) is defined as net debt divided by last twelve months adjusted EBITDA ($152M).
3.
Liquidity defined as the sum of cash balance and available revolving line of credit.
Credit facility and cash provide significant
capital for accretive acquisitions and/or
other capital deployment options
As of:
Outstanding Debt
03/31/18
Term Loan
87.5
Outstanding Revolver / Other Notes Payable
0.4
Total Debt Outstanding
87.9
Less: Deferred Finance Fees
(1.7)
Total Debt - Balance Sheet
86.2
Total Debt Outstanding
87.9
Less: Cash
(120.0)
Net Debt
(1)
(32.1)
Leverage Ratio (net)
(2)
(0.2)
As of:
Credit Facility
03/31/18
Revolver Size
200.0
Oustanding Revolver
-
                                            
Letters of Credit
37.7
Available Revolver
162.3
Plus: Cash
120.0
Total Liquidity
(3)
282.3


13
Cash Flow Statement Highlights
(1)
$36.2M in free cash flow for the quarter, with $2.3M in capital deployed to M&A opportunities
1.
Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments. 
$ in Millions
1Q17
2Q17
3Q17
4Q17
1Q18
GAAP Net Income
15.2
                
4.5
                  
14.7
                
(3.7)
                 
27.3
                
Changes in working capital
(8.1)
                 
(7.3)
                 
15.8
                
(11.0)
               
(2.0)
                
Depreciation and amortization
4.4
                  
4.5
                  
4.2
                  
4.0
                  
3.6
                  
Non-cash compensation, includes 401(k) match expense
6.1
                  
6.5
                  
5.7
                  
6.7
                  
6.6
                  
Deferred income taxes
9.4
                  
(1.9)
                 
9.6
                  
35.0
                
2.9
                  
Securities class action lawsuit settlement
-
                   
28.7
                
(28.7)
               
-
                   
-
                   
Other
0.1
                  
1.1
                   
(11.1)
               
1.2
                  
1.9
                  
Cash flow from operations
27.1
               
36.2
              
10.2
               
32.2
               
40.3
              
Capital expenditures - routine
(2.4)
                
(1.4)
                 
(0.3)
                
(1.2)
                 
(1.3)
                 
Required debt repayments
(1.3)
(1.3)
(1.6)
(1.3)
(2.8)
Free cash flow
23.4
33.5
8.3
29.7
36.2
Capital Deployment
Acquisitions
(4.1)
                 
(20.0)
              
-
                   
(9.6)
                 
(2.3)
                 
Share Repurchases
-
                   
-
                   
-
                   
-
                   
-
                   
Total
(4.1)
(20.0)
-
                   
(9.6)
(2.3)


14
Income
Statement
Adjustments
(1)
Amount
of
non-GAAP
adjustments
have
substantially
decreased
1.
The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31,
2018 are adjusted for certain items and should be considered a non-GAAP financial measure.  A reconciliation of these non-GAAP financial measures
is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
Income Statement
$000s
Line Item
1Q17
2Q17
3Q17
4Q17
1Q18
Florida ZPIC audit
Revenue
6,506
Cost of Service
Restructuring activity
Cost of service, excluding depreciation and amortization
101
G&A
Restructuring activity
G&A, Salaries and benefits
2,474
Restructuring activity
G&A, Non-cash compensation
(905)
Restructuring activity
G&A, Other
648
Data Center relocation
G&A, Other
714
226
Acquisition costs
G&A, Other
682
294
48
435
Legal fees -
non-routine
G&A, Other
123
1,111
176
358
562
Securities Class Action Lawsuit settlement
G&A, Other
28,712
Asset impairment
Asset impairment
1,323
Legal settlements
Other, Miscellaneous, net
(674)
(693)
(647)
Miscellaneous, other (income) expense, net
Other, Miscellaneous, net
621
(1,692)
(115)
613
(809)
Deferred tax asset related to tax reform
Income tax expense
21,424
Total
1,466
27,958
7,590
24,414
188
EPS Impact
$0.03
$0.49
$0.13
$0.67
$0.00
Revenue
Other Items


2018 Guidance


16
Amedisys 2018 Guidance
Targeting 7% growth in revenue and 13% growth in EBITDA; EPS includes impact of tax reform
2017
2018
Revenue
Adjusted
EBITDA
Adjusted
Earnings per
Share
*Adjusted for adoption of new revenue recognition accounting standard
$142.2M
$1.54B
$1.52B*
$2.21
$158M –
$163M
$1.60B -
$1.64B
$2.97 –
$3.08


17
Amedisys 2018 Guidance Considerations
Amedisys
Consolidated
Home Health
Personal Care
Hospice
Total same store
admission growth 
~10%
Continue to leverage
industry-leading platform
by exploring growth
opportunities
Large acquisitions
Small acquisitions
Denovos ~ $1 million
Addition of business
development resources to
maintain organic growth ~
$3 million
Total billable hours
growth ~ 7%
Employer Medical
Assistance Contribution
(EMAC) ~$1 million
Includes impact of
Intercity acquisition
(closed Q4’17)
Project solid revenue and earnings growth while continuing to invest in people and future organic
growth
Tax rate ~26 -
27%
(includes impact from Tax
Cuts and Jobs Act)
Cash tax rate ~ 5%
Diluted share count ~34.85
million shares
Excludes potential
acquisitions and related
integration costs
Capital Expenditures ~$7-
$9 million
Benefits increase
~5% -
6%
Salary increase ~2% -
3%
Overall ~
$9 million
investment in business
development resources
Excludes acquisition
activity
Total same store
admission growth  ~5%
Focus on business
development staffing
strategy ~ $6 million
(Y/Y increase)
Continue focus on Quality
of Care (Stars and Acute
Care Hospitalization
rates)
Increase focus on
underperforming care
centers


18
Reimbursement Outlook
2018 Reimbursement Impact for Home Health and Hospice
Home Health
Hospice
2018
Market Basket Update
1.0%
Nominal Case Mix Adjustment
-0.90
Estimated Industry Impact
+0.1%
Estimated AMED-Specific Impact
-0.7%
2018
Market Basket Update
1.0%
Productivity / Other Adjustment
__
Estimated Industry Impact
+1.0%
Estimated AMED-Specific Impact
+1.0%


19
EBITDA Seasonality
Q1
Q2
Q3
Q4
*EBITDA further adjusted for health insurance and workers compensation
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
Q1
Q2
Q3
Q4
Historical Adj. EBITDA Trends*
2016
2017
Weather disruption
Lower RPE (LUPA)
Payroll tax reset
Short Month (Feb.)
Lower Hospice ADC
& Higher Salary Cost
per Day
Highest Completed
Episodes
Stronger RPE
Incremental holiday
vs. 1H
High PTO
Lower Volumes
Health Insurance
Increases
Raises
Incremental holiday
vs. 1H
Health Insurance
Increases
Better Volumes
Raises


20
EBITDA Seasonality (Unadjusted for Health Insurance and Workers Compensation)
Q1
Q2
Q3
Q4
20
25
30
35
40
Q1
Q2
Q3
Q4
Historical Adj. EBITDA Trends
2016
2017
Weather disruption
Lower RPE (LUPA)
Payroll tax reset
Short Month (Feb.)
Lower Hospice ADC
& Higher Salary Cost
per Day
Highest Completed
Episodes
Stronger RPE
Incremental holiday
vs. 1H
High PTO
Lower Volumes
Health Insurance
Increases
Raises
Incremental holiday
vs. 1H
Health Insurance
Increases
Better Volumes
Raises
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