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Section 1: 8-K (8-K)

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): July 31, 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 July 31, 2018, Amedisys, Inc. (“we,” “us,” “our” or the “Company”) issued a press release announcing our financial results for the three and six-month periods ended June 30, 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 Wednesday, August 1, 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 July 31, 2018 announcing the Company’s financial results for the three and six-month periods ended June  30, 2018 (furnished only)
99.2    Supplemental slides provided in connection with the second 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 Financial Officer)

DATE: July 31, 2018

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS SECOND QUARTER 2018 FINANCIAL RESULTS

AND UPDATES 2018 GUIDANCE

BATON ROUGE, Louisiana (July 31, 2018) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month period ended June 30, 2018.

Three Month Periods Ended June 30, 2018 and 2017

 

    Net service revenue increased $36.7 million to $411.6 million compared to $374.9 million in 2017 (1).

 

    Net income attributable to Amedisys, Inc. of $33.3 million compared to $4.5 million in 2017.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.98 per diluted share compared to $0.13 in 2017.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $49.7 million compared to $36.1 million in 2017.

 

    Adjusted net service revenue of $413.3 million compared to $374.9 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. of $34.1 million compared to $21.4 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.00 compared to $0.62 in 2017.

Six Month Periods Ended June 30, 2018 and 2017

 

    Net service revenue increased $71.3 million to $810.9 million compared to $739.6 million in 2017 (1).

 

    Net income attributable to Amedisys, Inc. of $60.5 million compared to $19.6 million in 2017.

 

    Net income attributable to Amedisys, Inc. per diluted share of $1.76 per diluted share compared to $0.57 in 2017.

Adjusted Year to Date Results*

 

    Adjusted EBITDA of $91.4 million compared to $68.1 million in 2017.

 

    Adjusted net service revenue of $812.6 million compared to $739.6 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. of $61.4 million compared to $37.4 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.79 compared to $1.09 in 2017.

 

* See pages 12 and 13 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, 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 extremely pleased with the results that our team delivered during the second quarter of 2018. We continued to demonstrate solid growth across all three lines of business, improved upon our quality scores for the thirteenth straight quarter, leveraged our operational platform to drive impressive margin and lowered our

 

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turnover; all of which helped deliver significant increases in revenue, EBITDA and earnings per share. A special thank you to all Amedisys employees that continue to provide industry leading care to our patients and help drive significant value to our shareholders. We look forward to continuing to serve more patients and executing upon our strategic pillars during the second half of the year.”

Updated 2018 Guidance

 

    Net service revenue is anticipated to be in the range of $1.63 billion to $1.65 billion.

 

    Adjusted EBITDA is anticipated to be in the range of $168 million to $172 million.

 

    Adjusted diluted earnings per share is anticipated to be in the range of $3.32 to $3.41 based on an estimated 33.50 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 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 Wednesday, August 1, 2018, at 11:00 a.m. ET to discuss its second 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 September 1, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13681543.

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 service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) 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 who 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 18,300 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.

 

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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.

 

Contact:    Investor Contact:       Media Contact:
     Amedisys, Inc.         Amedisys, Inc.
     Nick Muscato         Kendra Kimmons
     Vice President, Strategic Finance         Vice President, Marketing & Communications
   (855) 259-2046       (225) 299-3720
     IR@amedisys.com         kendra.kimmons@amedisys.com

 

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AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the Three-Month
Periods Ended June 30
    For the Six-Month
Periods Ended June 30
 
     2018     2017     2018     2017  

Net service revenue

   $ 411,603     $ 374,946     $ 810,865     $ 739,607  

Cost of service, excluding depreciation and amortization

     242,564       220,541       480,873       436,870  

General and administrative expenses:

        

Salaries and benefits

     77,215       74,943       152,846       149,402  

Non-cash compensation

     3,767       4,356       7,811       8,230  

Other

     42,104       41,617       83,784       82,034  

Depreciation and amortization

     3,125       4,537       6,718       8,954  

Securities Class Action Lawsuit settlement, net

     —         28,712       —         28,712  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     368,775       374,706       732,032       714,202  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     42,828       240       78,833       25,405  

Other income (expense):

        

Interest income

     114       41       234       60  

Interest expense

     (2,140     (1,197     (3,843     (2,265

Equity in earnings from equity method investments

     2,976       2,355       4,836       2,249  

Miscellaneous, net

     359       1,127       960       2,239  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income, net

     1,309       2,326       2,187       2,283  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     44,137       2,566       81,020       27,688  

Income tax (expense) benefit

     (10,596     1,963       (20,159     (7,960
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     33,541       4,529       60,861       19,728  

Net income attributable to noncontrolling interests

     (192     (68     (353     (137
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 33,349     $ 4,461     $ 60,508     $ 19,591  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 1.00     $ 0.13     $ 1.80     $ 0.58  

Weighted average shares outstanding

     33,439       33,637       33,705       33,540  

Diluted earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.98     $ 0.13     $ 1.76     $ 0.57  

Weighted average shares outstanding

     34,179       34,329       34,391       34,203  

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     June 30, 2018
(unaudited)
    December 31,
2017
 
ASSETS             

Current assets:

    

Cash and cash equivalents

   $ 25,904     $ 86,363  

Patient accounts receivable

     197,592       201,196  

Prepaid expenses

     10,493       7,329  

Other current assets

     24,784       16,268  
  

 

 

   

 

 

 

Total current assets

     258,773       311,156  

Property and equipment, net of accumulated depreciation of $101,128 and $146,814

     27,998       31,122  

Goodwill

     324,145       319,949  

Intangible assets, net of accumulated amortization of $31,864 and $30,610

     44,888       46,061  

Deferred income taxes

     46,919       56,064  

Other assets, net

     50,601       49,130  
  

 

 

   

 

 

 

Total assets

   $ 753,324     $ 813,482  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY             

Current liabilities:

    

Accounts payable

   $ 29,810     $ 25,384  

Payroll and employee benefits

     87,239       89,936  

Accrued expenses

     96,472       89,104  

Current portion of long-term obligations

     668       10,638  
  

 

 

   

 

 

 

Total current liabilities

     214,189       215,062  

Long-term obligations, less current portion

     123,937       78,203  

Other long-term obligations

     6,137       3,791  
  

 

 

   

 

 

 

Total liabilities

     344,263       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; 36,044,177 and 35,747,134 shares issued; and 31,801,357 and 33,964,767 shares outstanding

     36       35  

Additional paid-in capital

     585,137       568,780  

Treasury stock, at cost 4,242,820 and 1,782,367 shares of common stock

     (237,947     (53,713

Accumulated other comprehensive income

     15       15  

Retained earnings

     60,712       204  
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     407,953       515,321  

Noncontrolling interests

     1,108       1,105  
  

 

 

   

 

 

 

Total equity

     409,061       516,426  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 753,324     $ 813,482  
  

 

 

   

 

 

 

 

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AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING

(Amounts in thousands, except statistical information)

(Unaudited)

 

     For the Three-Month
Periods Ended June 30
    For the Six-Month
Periods Ended June 30
 
     2018     2017     2018     2017  

Cash Flows from Operating Activities:

        

Net income

   $ 33,541     $ 4,529     $ 60,861     $ 19,728  

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

        

Depreciation and amortization

     3,125       4,537       6,718       8,954  

Non-cash compensation

     3,767       4,356       7,811       8,230  

401(k) employer match

     2,327       2,140       4,894       4,367  

Loss on disposal of property and equipment

     87       163       650       147  

Deferred income taxes

     6,200       (1,863     9,145       7,582  

Equity in earnings from equity method investments

     (2,976     (2,355     (4,836     (2,249

Amortization of deferred debt issuance costs

     177       185       355       370  

Write off of deferred debt issuance costs

     38       —         38       —    

Return on equity investment

     1,579       3,266       2,204       3,416  

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

        

Patient accounts receivable

     (4,656     (681     3,604       (6,833

Other current assets

     (4,698     (3,489     (11,680     (6,892

Other assets

     642       (158     688       (1,148

Accounts payable

     5,146       1,000       3,623       1,093  

Securities Class Action Lawsuit settlement accrual, net

     —         28,712       —         28,712  

Accrued expenses

     6,355       (4,129     4,548       (2,743

Other long-term obligations

     (1     31       2,347       607  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     50,653       36,244       90,970       63,341  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     9       —         471       565  

Proceeds from the sale of property and equipment

     6       —         11       —    

Purchase of investment

     —         (180     —         (436

Purchases of property and equipment

     (149     (3,064     (1,611     (7,449

Acquisitions of businesses, net of cash acquired

     (1,824     (20,029     (4,074     (24,128
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,958     (23,273     (5,203     (31,448
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

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

     2,484       3,550       2,609       4,203  

Proceeds from issuance of stock to employee stock purchase plan

     560       575       1,157       1,187  

Shares withheld upon stock vesting

     (1,527     (4,968     (2,832     (5,726

Non-controlling interest distribution

     (322     (48     (350     (90

Proceeds from borrowings under revolving line of credit

     127,500       —         127,500       —    

Principal payments of long-term obligations

     (87,656     (1,250     (90,475     (2,500

Debt issuance costs

     (2,433     —         (2,433     —    

Purchase of company stock

     (181,402     —         (181,402     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (142,796     (2,141     (146,226     (2,926
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (94,101     10,830       (60,459     28,967  

Cash and cash equivalents at beginning of period

     120,005       48,334       86,363       30,197  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 25,904     $ 59,164     $ 25,904     $ 59,164  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 1,015     $ 466     $ 2,080     $ 1,172  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ 3,336     $ —       $ 6,149     $ 284  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding (1)

     41.1       40.2       41.1       40.2  

 

(1)

Our calculation of days revenue outstanding at June 30, 2018 and 2017 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended June 30, 2018 and 2017, respectively.

 

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AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

     For the Three-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 206.3     $ 198.3  

Non-Medicare

     85.2       72.0  
  

 

 

   

 

 

 

Net service revenue

     291.5       270.3  

Cost of service

     176.5       164.8  
  

 

 

   

 

 

 

Gross margin

     115.0       105.5  

Other operating expenses

     69.2       69.9  
  

 

 

   

 

 

 

Operating income

   $ 45.8     $ 35.6  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     6     (5 %) 

Non-Medicare revenue

     18     14

Total admissions

     6     —  

Total volume (2)

     8     2

Total Episodic admissions (3)

     5     (1 %) 

Total Episodic volume (4)

     6     2

Key Statistical Data - Total (5):

    

Medicare:

    

Admissions

     47,058       47,260  

Recertifications

     28,431       26,839  
  

 

 

   

 

 

 

Total volume

     75,489       74,099  

Completed episodes

     74,776       73,872  

Visits

     1,318,074       1,271,747  

Average revenue per completed episode (6)

   $ 2,874     $ 2,829  

Visits per completed episode (7)

     17.8       17.5  

Non-Medicare:

    

Admissions

     29,271       26,225  

Recertifications

     13,891       11,462  
  

 

 

   

 

 

 

Total volume

     43,162       37,687  

Visits

     690,548       579,328  

Total (5):

    

Visiting Clinician Cost per Visit

   $ 80.07     $ 80.61  

Clinical Manager Cost per Visit

   $ 7.76     $ 8.44  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 87.83     $ 89.05  

Visits

     2,008,622       1,851,075  

 

7


     For the Six-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 411.3     $ 397.0  

Non-Medicare

     164.3       140.9  
  

 

 

   

 

 

 

Net service revenue

     575.6       537.9  

Cost of service

     350.9       327.8  
  

 

 

   

 

 

 

Gross margin

     224.7       210.1  

Other operating expenses

     138.0       138.8  
  

 

 

   

 

 

 

Operating income

   $ 86.7     $ 71.3  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     5     (4 %) 

Non-Medicare revenue

     16     12

Total admissions

     5     1

Total volume (2)

     7     2

Total Episodic admissions (3)

     4     1

Total Episodic volume (4)

     6     2

Key Statistical Data - Total (5):

    

Medicare:

    

Admissions

     96,513       96,888  

Recertifications

     55,667       51,882  
  

 

 

   

 

 

 

Total volume

     152,180       148,770  

Completed episodes

     147,612       145,736  

Visits

     2,632,200       2,534,845  

Average revenue per completed episode (6)

   $ 2,833     $ 2,806  

Visits per completed episode (7)

     17.5       17.2  

Non-Medicare:

    

Admissions

     59,160       53,558  

Recertifications

     26,323       21,686  
  

 

 

   

 

 

 

Total volume

     85,483       75,244  

Visits

     1,351,481       1,134,876  

Total (5):

    

Visiting Clinician Cost per Visit

   $ 80.20     $ 80.84  

Clinical Manager Cost per Visit

   $ 7.88     $ 8.49  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 88.08     $ 89.33  

Visits

     3,983,681       3,669,721  

 

(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 includes 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.

 

8


(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.

Segment Information - Hospice

 

     For the Three-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 96.9     $ 85.8  

Non-Medicare

     4.5       4.5  
  

 

 

   

 

 

 

Net service revenue

     101.4       90.3  

Cost of service

     51.7       45.4  
  

 

 

   

 

 

 

Gross margin

     49.7       44.9  

Other operating expenses

     20.6       19.3  
  

 

 

   

 

 

 

Operating income

   $ 29.1     $ 25.6  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     13     19

Non-Medicare revenue

     (1 %)      8

Hospice admissions

     7     11

Average daily census

     12     16

Key Statistical Data - Total (2):

    

Hospice admissions

     6,746       6,248  

Average daily census

     7,554       6,717  

Revenue per day, net

   $ 147.58     $ 147.74  

Cost of service per day

   $ 75.20     $ 74.34  

Average discharge length of stay

     97       89  
     For the Six-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 188.7     $ 166.5  

Non-Medicare

     10.0       7.4  
  

 

 

   

 

 

 

Net service revenue

     198.7       173.9  

Cost of service

     101.8       88.4  
  

 

 

   

 

 

 

Gross margin

     96.9       85.5  

Other operating expenses

     40.8       37.5  
  

 

 

   

 

 

 

Operating income

   $ 56.1     $ 48.0  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     12     18

Non-Medicare revenue

     33     (7 %) 

Hospice admissions

     6     15

Average daily census

     12     16

Key Statistical Data - Total (2):

    

Hospice admissions

     13,679       12,753  

Average daily census

     7,385       6,542  

Revenue per day, net

   $ 148.66     $ 146.89  

Cost of service per day

   $ 76.15     $ 74.68  

Average discharge length of stay

     97       90  

 

9


(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 Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     18.7        14.3  
  

 

 

    

 

 

 

Net service revenue

     18.7        14.3  

Cost of service

     14.4        10.3  
  

 

 

    

 

 

 

Gross margin

     4.3        4.0  

Other operating expenses

     3.3        3.0  
  

 

 

    

 

 

 

Operating income

   $ 1.0      $ 1.0  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     797,228        618,401  

Clients served

     12,683        8,270  

Shifts

     356,874        283,130  

Revenue per hour

   $ 23.48      $ 23.12  

Revenue per shift

   $ 52.45      $ 50.50  

Hours per shift

     2.2        2.2  
     For the Six-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     36.6        27.8  
  

 

 

    

 

 

 

Net service revenue

     36.6        27.8  

Cost of service

     28.2        20.7  
  

 

 

    

 

 

 

Gross margin

     8.4        7.1  

Other operating expenses

     6.6        6.3  
  

 

 

    

 

 

 

Operating income

   $ 1.8      $ 0.8  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     1,547,181        1,206,618  

Clients served

     14,350        9,845  

Shifts

     705,040        548,247  

Revenue per hour

   $ 23.66      $ 23.04  

Revenue per shift

   $ 51.91      $ 50.72  

Hours per shift

     2.2        2.2  

 

10


Segment Information - Corporate

 

     For the Three-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Other operating expenses

   $ 31.1      $ 30.0  

Depreciation and amortization

     2.0        3.3  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     33.1        33.3  

Securities Class Action Lawsuit settlement, net

     —          28.7  
  

 

 

    

 

 

 

Total operating expenses

   $ 33.1      $ 62.0  
  

 

 

    

 

 

 
     For the Six-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Other operating expenses

   $ 61.3      $ 59.5  

Depreciation and amortization

     4.5        6.5  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     65.8        66.0  

Securities Class Action Lawsuit settlement, net

     —          28.7  
  

 

 

    

 

 

 

Total operating expenses

   $ 65.8      $ 94.7  
  

 

 

    

 

 

 

 

11


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 June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net income attributable to Amedisys, Inc.

   $ 33,349      $ 4,461      $ 60,508      $ 19,591  

Add:

           

Income tax expense (benefit)

     10,596        (1,963      20,159        7,960  

Interest expense, net

     2,026        1,156        3,609        2,205  

Depreciation and amortization

     3,125        4,537        6,718        8,954  

Certain items (1)

     1,035        27,958        1,224        29,424  

Interest component of certain items (1)

     (446      —          (829      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (2) (6)

   $ 49,685      $ 36,149      $ 91,389      $ 68,134  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Service Revenue Reconciliation:

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net service revenue

   $ 411,603      $ 374,946      $ 810,865      $ 739,607  

Add:

           

Certain items (1)

     1,687        —          1,687        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net service revenue (3) (6)

   $ 413,290      $ 374,946      $ 812,552      $ 739,607  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net income attributable to Amedisys, Inc.

   $ 33,349      $ 4,461      $ 60,508      $ 19,591  

Add:

           

Certain items (1)

     766        16,915        906        17,802  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. (4) (6)

   $ 34,115      $ 21,376      $ 61,414      $ 37,393  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

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

   $ 0.98      $ 0.13      $ 1.76      $ 0.57  

Add:

           

Certain items (1)

     0.02        0.49        0.03        0.52  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)

   $ 1.00      $ 0.62      $ 1.79      $ 1.09  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

12


(1)

The following details the certain items for the three and six month periods ended June 30, 2018 and 2017:

Certain Items:

 

     For the Three-
Month Period
Ended June 30, 2018
     For the Six-
Month Period
Ended June 30, 2018
 
     (Income) Expense      (Income) Expense  

Certain Items Impacting Net Service Revenue:

     

Florida self-audit (pre-acquisition)

   $ 1,687      $ 1,687  

Certain Items Impacting Operating Expenses:

     

Acquisition costs

     440        875  

Legal fees - non-routine

     543        1,105  

Certain Items Impacting Total Other Income (Expense):

     

Miscellaneous, other (income) expense, net

     (1,635      (2,443
  

 

 

    

 

 

 

Total

   $ 1,035      $ 1,224  
  

 

 

    

 

 

 

Net of tax

   $ 766      $ 906  
  

 

 

    

 

 

 

Diluted EPS

   $ 0.02      $ 0.03  
  

 

 

    

 

 

 
     For the Three-
Month Period
Ended June 30, 2017
     For the Six-
Month Period
Ended June 30, 2017
 
     (Income) Expense      (Income) Expense  

Certain Items Impacting Operating Expenses:

     

Acquisition costs

   $ 294      $ 976  

Legal fees - non-routine

     1,111        1,234  

Securities Class Action Lawsuit settlement accrual, net

     28,712        28,712  

Data center relocation

     226        940  

Certain Items Impacting Total Other Income (Expense):

     

Legal settlements

     (693      (1,367

Miscellaneous, other (income) expense, net

     (1,692      (1,071
  

 

 

    

 

 

 

Total

   $ 27,958      $ 29,424  
  

 

 

    

 

 

 

Net of tax

   $ 16,915      $ 17,802  
  

 

 

    

 

 

 

Diluted EPS

   $ 0.49      $ 0.52  
  

 

 

    

 

 

 

 

(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 service revenue is defined as net service revenue plus certain items as described in footnote 1.

(4)

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.

(5)

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.

(6)

Adjusted EBITDA, adjusted net service revenue, 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.

 

13

(Back To Top)

Section 3: EX-99.2 (EX-99.2)

EX-99.2

Slide 1

Amedisys Second Quarter 2018 Earnings Call Supplemental Slides August 1st, 2018 Exhibit 99.2


Slide 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


Slide 3

Our Key Areas of Focus Strategic areas of focus for 2018 and beyond Home Health*: Total same store volume +8%. Total same store admission +6% vs. guidance of +5%. Hospice: Continued growth (Admissions +7%, ADC +12%) for 2Q’18 Personal Care: Double digit growth in billable hours / quarter +29% 1 Organic Growth Quality: Amedisys improves STARS scores to 4.41 (Oct’18 preview) with 94% of providers at 4+ STAR rating 73 Amedisys care centers rated at 5-Stars in the Oct’18 Preview Hospice quality – outperforming industry average in all hospice item set categories Continued focus on 30-Day and 60-Day ACH rate reduction 3 Clinical Initiatives Productivity driving continued decrease in CPV (visiting clinician CPV down $0.54 year over year, in spite of annual raises) Director of Operations (DOO) leadership training completed Focusing on optimizing RN / LPN & PT / PTA staffing ratio 4 Impact Capacity and Productivity Preference to acquire assets in Hospice, Personal Care tuck-in’s, and opportunistic regional acquisitions in Home Health Unlevered balance sheet (0.6x) gives us access to capital Pipeline strong but price expectations challenging – will continue to remain disciplined on pricing Borrowing capacity expanded to $550M 5 M&A 2 Recruiting / Retention Fifth straight quarter of increased BD FTE’s ending 2Q’18 with 808 hitting target of 800 by 2Q’18 Targeting industry leading employee retention amongst all employee categories – currently at 18% Focus on reduction of clinical turnover with heavy focus on RN’s *Note: Home Health same store volume is defined as admissions plus recertifications 2019 Proposed Rule released July 2 with language detailing 2020 payment reform: Patient-Driven Groupings Model (PDGM) 2019 industry impact per Proposed Rule: +2.1% (+$400M) Analyzing AMED specific rate impact for 2019 and 2020 Comment period runs through August 31st Final Rule likely to be released early November 6 Regulatory


Slide 4

Highlights and Summary Financial Results (Adjusted): 2Q 2018(1) Home Health total same store volume +8%, total same store admissions up +6%. Hospice same store admissions +7%. Personal Care +29% billable hours Amedisys Consolidated Revenue Growth: +10% EBITDA: $50M (+38%) EBITDA Margin: 12% EPS: $1.00 (+61%) 2Q’18 Net debt: ($102.6M) Net Leverage ratio: 0.6x CFFO: $50.7M Free cash flow (4) : $50.6M DSO: 41.1 (vs. Q1’18 of 41.4) Balance Sheet & Cash Flow 2Q’18 Same Store Volume (2): Total: +8% Episodic (2): +6% Same Store Admissions: Total: +6% Episodic (3): +5% Other Statistics: Revenue per Episode: $2,874 (+$45) Total Cost per Visit: Down 1.4% Medicare Recert Rate: +170 bps Home Health Growth Metrics (5): Billable hours/quarter: +29% Clients served: +53% Closed on East TN acquisition Personal Care Same Store Volume: Admissions: +7% ADC: +12% Other Statistics: Revenue per Day: $147.58 (-0.1%) Cost per day: +1.2% Hospice 2Q’18 2Q’18 2Q’18 Adjusted Financial Results(1) 2Q’18 The financial results for the three-month periods ended June 30, 2017 and June 30, 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. Same Store volume – Includes admissions and recertifications. Episodic admissions and volume – Includes Medicare and non-Medicare payors that bill on a 60-day episode of care basis. Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments. Includes acquisitions.


Slide 5

Our revenue sources: 2Q18 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


Slide 6

Home Health and Hospice Segment (Adjusted) – 2Q 2018(1) Revenue per Episode up +$45 y/y Recert rate up +170 bps y/y Y/Y CPV decrease of 1.4% in Q2’18 despite planned wage increases EBITDA as a % percentage of revenue: +300bps Home Health Highlights Same store average daily census (ADC) up 12% Net revenue per day down 0.1% y/y Two providers over cap as of Q2’18: ~ $900k liability Hospice Highlights The financial results for the three-month periods ended June 30, 2017 and June 30, 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. Segment EBITDA does not include any corporate G&A expenses. 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


Slide 7

General & Administrative Expenses – Adjusted (1,2) Notes: Year over year total G&A as a percentage of revenue decreased 230 basis points Home Health segment G&A: 220 bps y/y decrease as % of revenue Hospice segment G&A: 80 bps decrease y/y as % of revenue Personal Care segment G&A: 380 bps decrease y/y as % of revenue (Personal Care G&A reflects reclassification of certain support personnel to corporate in 2018) Corporate G&A: 30 bps decrease y/y as % of total revenue Total G&A has increased $2.8M in 2Q18 vs. 2Q17: Mainly driven by planned wage increases The financial results for the three-month periods ended June 30, 2017, September 30, 2017, December 31, 2017, March 31, 2018 and June 30, 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. Adjusted G&A expenses do not include depreciation and amortization. Impact of G&A cost control materializing as operational efficiencies are realized


Slide 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 APR 18 Release Jul 18 PREVIEW OCT 18 PREVIEW Quality of Patient Care 4.30 4.38 4.41 Entities at 4+ Stars 89% 93% 94% 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) QPC Industry Performance PS Industry Performance *Scoring methodology changed dropped entire industry’s PS STAR scores Amedisys maintains a 4-Star average in the Oct 2018 HHC preview with 94% of our providers at 4+ Stars and 67% at 4.5+ Stars STAR score improvement for the thirteenth consecutive quarter (from initial Jul 15 release to Oct 18 preview) 40 Amedisys providers (representing 73 care centers) rated at 5-Stars in the Oct 2018 preview AMED received ~$250K in bonus payments related to Value Based Purchasing (VBP) during 1Q‘18 & 2Q’18


Slide 9

Hospice Quality: Amedisys Hospice Continues to Move Towards Best-in-Class Hospice Quality


Slide 10

Components 2Q’17 1Q’18 2Q’18 YoY Variance Detail Mitigation Plan Salaries $60.34 $60.93 $59.98 ($0.36) YoY decrease driven by increased volumes and productivity Staffing mix optimization, productivity and scheduling improvement initiatives in place helped us overcome planned salary increases Contractors $2.58 $2.93 $3.16 $0.58 YoY increased demand due to increasing volumes Focused efforts on filling positions with full-time clinicians Benefits $10.83 $9.84 $10.45 ($0.38) Sequential increase driven by seasonality of health insurance claims Focus on cost containment and spend optimization with specific focus on high cost claims Transportation & Supplies $6.86 $6.64 $6.48 ($0.38) YoY decrease primarily due to supplies costs More effective medical supply contracting cost initiatives are underway *Visiting Clinician CPV $80.61 $80.34 $80.07 ($0.54) Clinical Managers $8.44 $7.99 $7.76 ($0.68) Fixed cost associated with non-visiting clinicians Unit cost reduced as volume increases Total CPV $89.05 $88.33 $ 87.83 ($1.22) Operational Excellence: Home Health Cost Per Visit (CPV) Total CPV decreased due to improvement in clinician productivity *Note: Direct comparison with industry competitors CPV calculation $80.61 $80.34 $80.07


Slide 11

Driving Top Line Growth All three lines of business continue to grow. Hospice delivers another quarter of double digit ADC growth and Home Health total same store volume continues to improve Home Health Total Same Store Volume* Hospice ADC Personal Care Total Hours / Quarter *Total Home Health Same Store Volumes exclude 7 closed and consolidated care centers in Florida in 2017 Volume *Includes impact of Intercity (10/2) and East Tennessee (5/1) acquisitions


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Debt and Liquidity Metrics Our debt levels remain very low at 0.6x net leverage despite buying back 7.1% of our outstanding shares, providing us ample flexibility and available liquidity for strategic initiatives and inorganic growth opportunities Net debt defined as total debt outstanding ($128.5M) less cash balance ($25.9M). Leverage ratio (net) is defined as net debt divided by last twelve months adjusted EBITDA ($165M). 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


Slide 13

Cash Flow Statement Highlights (1) $50.6M in free cash flow for the quarter, with $183.2M in capital deployed Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments.


Slide 14

Income Statement Adjustments (1) Amount of non-GAAP adjustments remains low The financial results for the three-month periods ended June 30, 2017, September 30, 2017, December 31, 2017, March 31, 2018 and June 30, 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.


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2018 Guidance


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Amedisys Revised 2018 Guidance Increasing Revenue, Adjusted EBITDA and Adjusted EPS; EPS includes impact of tax reform and share repurchase 2017 Revenue Adjusted EBITDA $142.2M $1.54B $1.52B* Adjusted Earnings per Share $2.21 $158M – $163M $1.60B - $1.64B $2.97 – $3.08 *Adjusted for adoption of new revenue recognition accounting standard 2018 Original Guidance $168M – $172M $1.63B - $1.65B $3.32 – $3.41 2018 Updated Guidance


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Amedisys 2018 Guidance Considerations Amedisys Consolidated Tax rate ~25% (includes impact from Tax Cuts and Jobs Act) Cash tax rate ~10% Diluted share count ~33.5 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 Home Health Personal Care Hospice 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) Continued positive progress on underperforming care centers 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 Red text denotes updates numbers


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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%


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EBITDA Seasonality: As Reported Q1 Q2 Q3 Q4 Drivers of Seasonality Weather disruption Lower RPE (LUPA) Payroll tax reset Short Month (Feb.) Lower Hospice ADC & Higher Salary Cost per Day Highest Completed Episodes Stronger revenue per episode (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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EBITDA Seasonality: Excluding Health Insurance and Workers Compensation Q1 Q2 Q3 Q4 Drivers of Seasonality Weather disruption Lower RPE (LUPA) Payroll tax reset Short Month (Feb.) Lower Hospice ADC & Higher Salary Cost per Day Highest Completed Episodes Stronger revenue per episode (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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