Press Release

Amedisys Reports Third Quarter 2019 Financial Results and Updates 2019 Guidance

Company Release - 10/29/2019 4:05 PM ET

BATON ROUGE, La., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month periods ended September 30, 2019.

Three Month Periods Ended September 30, 2019 and 2018

  • Net service revenue increased $77.3 million to $494.6 million compared to $417.3 million in 2018.
  • Net income attributable to Amedisys, Inc. of $34.1 million compared to $31.4 million in 2018.
  • Net income attributable to Amedisys, Inc. per diluted share of $1.03 compared to $0.96 in 2018.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $56.8 million compared to $45.3 million in 2018.
  • Adjusted net service revenue of $494.6 million compared to $417.3 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. of $37.9 million compared to $30.9 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.15 compared to $0.95 in 2018.

Nine Month Periods Ended September 30, 2019 and 2018

  • Net service revenue increased $226.7 million to $1,454.9 million compared to $1,228.2 million in 2018.
  • Net income attributable to Amedisys, Inc. of $99.2 million compared to $91.9 million in 2018.
  • Net income attributable to Amedisys, Inc. per diluted share of $3.01 compared to $2.71 in 2018.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $173.0 million compared to $136.7 million in 2018.
  • Adjusted net service revenue of $1,460.9 million compared to $1,229.9 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. of $114.2 million compared to $92.3 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.47 compared to $2.73 in 2018.

*   See pages 11 and 12 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am very proud of our third quarter results and our continued outperformance this year. All three of our lines of business continue to grow; we have made great progress integrating the Compassionate Care acquisition; and most importantly, we are once again near the top of the industry in quality for both Home Health and Hospice. We could not achieve such results without the unwavering efforts of all of our 21,000 employees and I want to thank each of you for your continued dedication to our mission of providing clinically excellent care to all of our patients, wherever they call home.”

Updated 2019 Guidance

  • Net service revenue is anticipated to be in the range of $1.94 billion to $1.98 billion.
  • Adjusted EBITDA is anticipated to be in the range of $220 million to $223 million.
  • Adjusted diluted earnings per share is anticipated to be in the range of $4.32 to $4.39 based on an estimated 33.1 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 2019 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, 2018, 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, October 30, 2019, at 11:00 a.m. ET to discuss its third 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 November 30, 2019 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13695473.

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. More than 3,000 hospitals and 65,000 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 more than 21,000 employees in 470 care centers within 38 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 376,000 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 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, 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, competition in the healthcare industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to consistently provide high-quality care, 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 realize the anticipated benefits of the acquisition of Compassionate Care Hospice (“CCH”), our ability to comply with requirements stipulated in the CCH 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 MuscatoKendra Kimmons
 Vice President, Strategic FinanceVice President, Marketing & Communications
 (855) 259-2046(225) 299-3720
 [email protected][email protected]
   


 
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
   
 For the Three-Month
Periods Ended September 30

 For the Nine-Month
Periods Ended September 30
 2019 2018 2019 2018
Net service revenue$494,631  $417,335  $1,454,955  $1,228,200 
Cost of service, excluding depreciation and amortization 288,708   249,739   854,734   730,612 
General and administrative expenses:    
Salaries and benefits 99,941   79,367   293,127   232,213 
Non-cash compensation 6,298   4,842   18,451   12,653 
Other 48,474   40,335   140,284   124,119 
Depreciation and amortization 4,366   3,164   12,440   9,882 
Operating expenses 447,787   377,447   1,319,036   1,109,479 
Operating income 46,844   39,888   135,919   118,721 
Other income (expense):    
Interest income 15   29   59   263 
Interest expense (3,778)  (1,991)  (11,459)  (5,834)
Equity in (losses) earnings from equity method investments (812)  1,625   4,120   6,461 
Miscellaneous, net 1,975   1,822   2,404   2,782 
Total other (expense) income, net (2,600)  1,485   (4,876)  3,672 
Income before income taxes 44,244   41,373   131,043   122,393 
Income tax expense (9,919)  (9,825)  (31,105)  (29,984)
Net income 34,325   31,548   99,938   92,409 
Net income attributable to noncontrolling interests (193)  (171)  (760)  (524)
Net income attributable to Amedisys, Inc.$34,132  $31,377  $99,178  $91,885 
                
Basic earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$1.06  $0.99  $3.09  $2.78 
Weighted average shares outstanding 32,211   31,815   32,096   33,075 
Diluted earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$1.03  $0.96  $3.01  $2.71 
Weighted average shares outstanding 33,002   32,691   32,944   33,852 
                


 
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
    
 September 30,
2019
(unaudited)
 
 December 31,
2018
ASSETS  
Current assets:  
Cash and cash equivalents$20,757  $20,229 
Patient accounts receivable 254,703   188,972 
Prepaid expenses 10,601   7,568 
Other current assets 13,458   7,349 
Total current assets 299,519   224,118 
Property and equipment, net of accumulated depreciation of $101,446 and $95,472 29,969   29,449 
Operating lease right of use assets 84,124    
Goodwill 660,472   329,480 
Intangible assets, net of accumulated amortization of $36,799 and $33,050 66,468   44,132 
Deferred income taxes 17,568   35,794 
Other assets 54,260   54,145 
Total assets$1,212,380  $717,118 
        
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable$35,901  $28,531 
Payroll and employee benefits 115,899   92,858 
Accrued expenses 127,111   99,475 
Current portion of long-term obligations 8,959   1,612 
Current portion of operating lease liabilities 26,783    
Total current liabilities 314,653   222,476 
Long-term obligations, less current portion 231,641   5,775 
Operating lease liabilities, less current portion 56,619    
Other long-term obligations 6,002   6,234 
Total liabilities 608,915   234,485 
        
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; 36,599,273 and 36,252,280 shares issued; and 32,246,575 and 31,973,505 shares outstanding 37   36 
Additional paid-in capital 634,854   603,666 
Treasury stock, at cost 4,352,698 and 4,278,775 shares of common stock (251,070)  (241,685)
Accumulated other comprehensive income 15   15 
Retained earnings 218,728   119,550 
Total Amedisys, Inc. stockholders’ equity 602,564   481,582 
Noncontrolling interests 901   1,051 
Total equity 603,465   482,633 
Total liabilities and equity$1,212,380  $717,118 
        


 
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
September 30
 
 For the Nine-Month
Periods Ended
September 30
 2019 2018 2019 2018
Cash Flows from Operating Activities:               
Net income$34,325  $31,548  $99,938  $92,409 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 4,366   3,164   12,440   9,882 
Non-cash compensation 6,298   4,842   18,451   12,653 
401(k) employer match 2,859   2,040   7,545   6,934 
Amortization and impairment of operating lease right of use assets 9,519      27,014    
Loss on disposal of property and equipment 8   88   6   738 
Deferred income taxes 11,923   5,771   17,798   14,916 
Equity in losses (earnings) from equity method investments 812   (1,625)  (4,120)  (6,461)
Amortization of deferred debt issuance costs/debt discount 220   203   653   596 
Return on equity investment 2,885   2,169   3,727   4,373 
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable (15,304)  2,562   (39,469)  6,166 
Other current assets (1,851)  11,648   (10,194)  (32)
Other assets 258   38   202   726 
Accounts payable 1,330   (4,293)  (8,145)  (670)
Accrued expenses (1,359)  10,210   27,903   14,758 
Other long-term obligations (50)  115   (231)  2,462 
Operating lease liabilities (7,916)     (24,116)   
Operating lease right of use assets (868)     (2,622)   
Net cash provided by operating activities 47,455   68,480   126,780   159,450 
                
Cash Flows from Investing Activities:    
Proceeds from sale of deferred compensation plan assets 74   92   287   563 
Proceeds from the sale of property and equipment 12   40   158   51 
Investments in equity method investees    (3,477)  (210)  (3,477)
Purchases of property and equipment (3,644)  (4,073)  (6,337)  (5,684)
Acquisitions of businesses, net of cash acquired (46)     (345,460)  (4,074)
Net cash used in investing activities (3,604)  (7,418)  (351,562)  (12,621)
                
Cash Flows from Financing Activities:    
Proceeds from issuance of stock upon exercise of stock options 2,045   140   3,388   2,749 
Proceeds from issuance of stock to employee stock purchase plan 850   630   2,384   1,787 
Shares withheld upon stock vesting (4,895)  (2,589)  (9,385)  (5,421)
Noncontrolling interest distribution (453)  (180)  (910)  (530)
Proceeds from borrowings under term loan       175,000    
Proceeds from borrowings under revolving line of credit 8,000      192,500   127,500 
Repayments of borrowings under revolving line of credit (41,000)  (70,000)  (133,000)  (70,000)
Principal payments of long-term obligations (1,543)  (596)  (3,820)  (91,071)
Debt issuance costs       (847)  (2,433)
Purchase of company stock          (181,402)
Repurchase of noncontrolling interest    (361)     (361)
Net cash (used in) provided by financing activities (36,996)  (72,956)  225,310   (219,182)
Net increase (decrease) in cash and cash equivalents 6,855   (11,894)  528   (72,353)
Cash and cash equivalents at beginning of period 13,902   25,904   20,229   86,363 
Cash and cash equivalents at end of period$20,757  $14,010  $20,757  $14,010 
                
Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest$3,569  $909  $7,756  $2,989 
Cash paid for income taxes, net of refunds received$9,807  $4,868  $17,656  $11,017 
Days revenue outstanding (1) 44.5   40.6   44.5   40.6 
                

(1) Our calculation of days revenue outstanding at September 30, 2019 and 2018 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended September 30, 2019 and 2018, respectively.

 
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
 
Segment Information - Home Health
  
 For the
Three-Month Periods
Ended September 30,
 2019 2018
Financial Information (in millions):       
Medicare$211.5  $208.0 
Non-Medicare 100.0   86.9 
Net service revenue 311.5   294.9 
Cost of service 188.9   181.8 
Gross margin 122.6   113.1 
Other operating expenses 76.5   69.6 
Operating income$46.1  $43.5 
Same Store Growth (1):  
Medicare revenue 2%  10%
Non-Medicare revenue 16%  20%
Total admissions 9%  4%
Total volume (2) 6%  6%
Total Episodic admissions (3) 8%  3%
Total Episodic volume (4) 5%  5%
Key Statistical Data - Total (5):  
Medicare:  
Admissions 48,295   46,371 
Recertifications 27,662   28,551 
Total volume 75,957   74,922 
Completed episodes 74,355   73,114 
Visits 1,281,380   1,301,090 
Average revenue per completed episode (6)$2,909  $2,855 
Visits per completed episode (7) 17.1   17.6 
Non-Medicare:  
Admissions 33,642   29,325 
Recertifications 15,678   14,539 
Total volume 49,320   43,864 
Visits 775,804   698,181 
Total (5):  
Visiting Clinician Cost per Visit$83.68  $82.78 
Clinical Manager Cost per Visit 8.09   8.18 
Total Cost per Visit$91.77  $90.96 
Visits 2,057,184   1,999,271 
        


  
 For the
Nine-Month Periods
Ended September 30,
 2019 2018
Financial Information (in millions):       
Medicare$644.0  $619.3 
Non-Medicare 296.2   251.2 
Net service revenue 940.2   870.5 
Cost of service 562.4   532.7 
Gross margin 377.8   337.8 
Other operating expenses 224.0   207.6 
Operating income$153.8  $130.2 
        
Same Store Growth (1):  
Medicare revenue 4%  7%
Non-Medicare revenue 18%  18%
Total admissions 7%  4%
Total volume (2) 6%  7%
Total Episodic admissions (3) 6%  3%
Total Episodic volume (4) 4%  6%
Key Statistical Data - Total (5):  
Medicare:  
Admissions 147,485   142,884 
Recertifications 82,551   84,218 
Total volume 230,036   227,102 
Completed episodes 224,635   220,726 
Visits 3,935,182   3,933,290 
Average revenue per completed episode (6)$2,922  $2,841 
Visits per completed episode (7) 17.4   17.5 
Non-Medicare:  
Admissions 100,184   88,485 
Recertifications 45,945   40,862 
Total volume 146,129   129,347 
Visits 2,303,576   2,049,662 
Total (5):  
Visiting Clinician Cost per Visit$82.23  $81.06 
Clinical Manager Cost per Visit 7.91   7.98 
Total Cost per Visit$90.14  $89.04 
Visits 6,238,758   5,982,952 
        

(1) Same store information represents the percent change 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. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(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 and denovos.
(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.

 
Segment Information - Hospice
  
 For the
Three-Month Periods
Ended September 30,
 2019 2018
Financial Information (in millions):       
Medicare$153.5  $98.0 
Non-Medicare 8.9   5.4 
Net service revenue 162.4   103.4 
Cost of service 84.5   53.4 
Gross margin 77.9   50.0 
Other operating expenses 36.2   21.7 
Operating income$41.7  $28.3 
        
Same Store Growth (1):  
Medicare revenue 10%  7%
Hospice admissions 4%  8%
Average daily census 5%  11%
Key Statistical Data - Total (2):  
Hospice admissions 9,914   6,765 
Average daily census 11,565   7,768 
Revenue per day, net$152.67  $144.71 
Cost of service per day$79.51  $74.72 
Average discharge length of stay 98   101 
  
 For the
Nine-Month Periods
Ended September 30,
 2019 2018
Financial Information (in millions):       
Medicare$430.0  $286.7 
Non-Medicare 22.6   15.4 
Net service revenue 452.6   302.1 
Cost of service 245.9   155.2 
Gross margin 206.7   146.9 
Other operating expenses 100.9   62.5 
Operating income$105.8  $84.4 
        
Same Store Growth (1):  
Medicare revenue 6%  11%
Hospice admissions 5%  7%
Average daily census 6%  12%
Key Statistical Data - Total (2):  
Hospice admissions 30,055   20,444 
Average daily census 10,997   7,514 
Revenue per day, net$150.77  $147.28 
Cost of service per day$81.92  $75.65 
Average discharge length of stay 98   98 
        

(1) Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2) Total includes acquisitions and denovos.

 
Segment Information - Personal Care
  
 For the
Three-Month Periods
Ended September 30,
 2019
 2018
Financial Information (in millions):       
Medicare$  $ 
Non-Medicare 20.7   19.0 
Net service revenue 20.7   19.0 
Cost of service 15.3   14.5 
Gross margin 5.4   4.5 
Other operating expenses 3.1   3.1 
Operating income$2.3  $1.4 
        
Key Statistical Data - Total (1):  
Billable hours 824,251   810,427 
Clients served 12,687   12,380 
Shifts 370,451   357,382 
Revenue per hour$25.12  $23.40 
Revenue per shift$55.90  $53.06 
Hours per shift 2.2   2.3 
  
 For the
Nine-Month Periods
Ended September 30,
 2019
 2018
Financial Information (in millions):       
Medicare$  $ 
Non-Medicare 62.1   55.6 
Net service revenue 62.1   55.6 
Cost of service 46.4   42.7 
Gross margin 15.7   12.9 
Other operating expenses 9.5   9.7 
Operating income$6.2  $3.2 
        
Key Statistical Data - Total (1):  
Billable hours 2,506,113   2,357,608 
Clients served 16,134   15,731 
Shifts 1,128,920   1,062,422 
Revenue per hour$24.77  $23.57 
Revenue per shift$55.00  $52.30 
Hours per shift 2.2   2.2 
        

(1) Total includes acquisitions.

 
Segment Information - Corporate
  
 For the
Three-Month Periods
Ended September 30,
 2019
 2018
Financial Information (in millions):       
Other operating expenses$40.4  $31.3 
Depreciation and amortization 2.9   2.0 
Total operating expenses$43.3  $33.3 
        
  
 For the
Nine-Month Periods
Ended September 30,
 2019
 2018
Financial Information (in millions):       
Other operating expenses$122.0  $92.6 
Depreciation and amortization 7.9   6.5 
Total operating expenses$129.9  $99.1 
        

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 September 30,
 For the Nine-
Month Period
Ended September 30,
 2019 2018 2019 2018
Net income attributable to Amedisys, Inc.$34,132  $31,377  $99,178  $91,885 
Add:    
Income tax expense 9,919   9,825   31,105   29,984 
Interest expense, net 3,763   1,962   11,400   5,571 
Depreciation and amortization 4,366   3,164   12,440   9,882 
Certain items (1) 5,088   (609)  20,259   615 
Interest component of certain items (1) (451)  (451)  (1,338)  (1,280)
Adjusted EBITDA (2) (6)$56,817  $45,268  $173,044  $136,657 
                

Adjusted Net Service Revenue Reconciliation:

 For the Three-
Month Period
Ended September 30,
 For the Nine-
Month Period
Ended September 30,
 2019  
 2018  
 2019  
 2018  
Net service revenue$494,631  $417,335  $1,454,955  $1,228,200 
Add:    
Certain items (1)       5,993   1,687 
Adjusted net service revenue (3) (6)$494,631  $417,335  $1,460,948  $1,229,887 
                

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 For the Three-
Month Period
Ended September 30,
 For the Nine-
Month Period
Ended September 30,
 2019  
 2018 2019  
 2018  
Net income attributable to Amedisys, Inc.$34,132  $31,377  $99,178  $91,885 
Add:    
Certain items (1) 3,765   (450)  14,992   455 
Adjusted net income attributable to Amedisys, Inc. (4) (6)$37,897  $30,927  $114,170  $92,340 
                

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

 For the Three-
Month Period
Ended September 30,
 For the Nine-
Month Period
Ended September 30,
 2019  
 2018 2019  
 2018  
Net income attributable to Amedisys, Inc. common stockholders per diluted share$1.03  $0.96  $3.01  $2.71 
Add:    
Certain items (1) 0.11   (0.01)  0.46   0.01 
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)$1.15  $0.95  $3.47  $2.73 
                

(1) The following details the certain items for the three and nine-month periods ended September 30, 2019 and 2018:

 
Certain Items:
    
 For the Three-Month Period
Ended September 30, 2019
 For the Nine-Month Period
Ended September 30, 2019
 (Income) Expense
 (Income) Expense
Certain Items Impacting Net Service Revenue:  
Contingency accrual$  $6,541 
Planned closures (7)    (548)
Certain Items Impacting Cost of Service:  
Planned closures (7) 15   1,172 
Certain Items Impacting Operating Expenses:  
Planned closures (7) 28   185 
Acquisition and integration costs 4,141   14,393 
Legal fees - non-routine 397   373 
Certain Items Impacting Total Other Income (Expense):  
Legal settlements (1,437)  (1,437)
Miscellaneous, other (income) expense, net 1,944   (420)
Total$5,088  $20,259 
Net of tax$3,765  $14,992 
Diluted EPS$0.11  $0.46 
        
   
 For the Three-Month Period
Ended September 30, 2018
 For the Nine-Month Period
Ended September 30, 2018
 (Income) Expense
 (Income) Expense
Certain Items Impacting Net Service Revenue:  
Florida self-audit (pre-acquisition)$  $1,687 
Certain Items Impacting Operating Expenses:  
Acquisition costs 857   1,732 
Legal fees - non-routine 304   1,409 
Certain Items Impacting Total Other Income (Expense):  
Legal settlements (1,437)  (1,437)
Miscellaneous, other (income) expense, net (333)  (2,776)
Total$(609) $615 
Net of tax$(450) $455 
Diluted EPS$(0.01) $0.01 
        

(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 measures 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.
(7) Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.

AMLogo_Vertical-7489U.jpg

Source: Amedisys, Inc.

Contact Information

Amedisys Corporate Headquarters
3854 American Way
Baton Rouge, LA 70816
(225) 292-2031
Amedisys Executive Office
209 10th Avenue S.
Suite 512
Nashville, TN 37203
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