Amedisys Reports Fourth Quarter Financial Results

Amedisys to Host Conference Call Today at 10:00 A.M. ET

Business Wire

BATON ROUGE, La.--(BUSINESS WIRE)--

Amedisys, Inc. ( AMED ), a leading home health and hospice company, today reported its financial results for the fourth quarter and year ended December 31, 2013.

Three-Month Periods Ended December 31, 2013 and 2012

" After adding back for the 2013 period, $9.6 million ($5.9 million, net of income tax) or $0.19 per diluted share for certain items* and after adding back for the 2012 period $151.0 million ($112.5 million, net of income tax) or $3.71 per diluted share for the goodwill and other intangibles impairment charge and certain other items*, our adjusted results from continuing operations were as follows:

" Net service revenue of $303.5 million compared to $351.6 million in 2012, a decrease of $48.1 million or 13.7%.

" Net loss from continuing operations attributable to Amedisys, Inc. of $2.2 million compared to net income from continuing operations of $6.3 million in 2012, a decrease of 135.5%. (Net loss from continuing operations attributable to Amedisys, Inc. of $8.2 million compared to $106.2 million in 2012 on a GAAP basis.)

" Net loss from continuing operations attributable to Amedisys, Inc. per diluted share of $0.07 compared to net income from continuing operations attributable to Amedisys, Inc. of $0.21 per diluted share in 2012, a decrease of 133.3%. (Net loss from continuing operations attributable to Amedisys, Inc. per diluted share $0.26 compared to $3.50 per diluted share in 2012 on a GAAP basis.)

" Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (EBITDA) of $6.8 million compared to $21.6 million in 2012, a decrease of 68.7%.

Twelve-Month Periods Ended December 31, 2013 and 2012

" After adding back for the 2013 period $158.2 million ($98.3 million, net of income tax) or $3.14 per diluted share for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items* and after adding back for the 2012 period $148.6 million ($110.1 million, net of income tax) or $3.67 per diluted share for the goodwill and other intangibles impairment charge and certain other items*, our adjusted results from continuing operations were as follows:

" Net service revenue of $1,249.3 million compared to $1,440.8 million in 2012, a decrease of $191.5 million or 13.3%.

" Net income from continuing operations attributable to Amedisys, Inc., of $5.2 million compared to $29.8 million in 2012, a decrease of 82.5%. (Net loss from continuing operations attributable to Amedisys, Inc. of $93.1 million compared to $80.3 million in 2012 on a GAAP basis.)

" Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.16 compared to $0.99 per diluted share in 2012, a decrease of 83.8%. (Net loss from continuing operations attributable to Amedisys, Inc. per diluted share $2.98 compared to $2.68 per diluted share in 2012 on a GAAP basis.)

" EBITDA of $48.9 million compared to $97.3 million in 2012, a decrease of 49.7%.

Ronald A. LaBorde, Interim Chief Executive Officer stated, While volumes were flat sequentially, our results for the quarter were below the guidance previously shared by the Company. An unexpected increase in employee healthcare costs contributed to the lower results.

* See pages 10 & 11 for explanation of these certain items and the reconciliations of non-GAAP financial measures.

We urge caution in considering the current trends disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (SEC) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SECs internet website, http://www.sec.gov , and our internet website, http://www.amedisys.com . We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Wednesday, March 12, 2014, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #40243209. A replay of the conference call will be available through March 19, 2014. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #40243209.

The call will also be available through our website and for seven days thereafter at the following web address: http://investors.amedisys.com .

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol AMED.

Additional information

Our company website address is www.amedisys.com . We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled Investors on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like believes, belief, expects, plans, anticipates, intends, projects, estimates, may, might, would, should and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, our ability to divest care centers currently held for sale, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, our ability to agree on the terms of a settlement to resolve both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter or fund required settlement payments in the manner currently contemplated and changes in law or developments with respect to any litigation or investigations relating the Company, including the SEC investigation, the OIG Self-Disclosure issues and various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*, adjusted net (loss) income from continuing operations attributable to Amedisys, Inc., defined as net loss from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*, and adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net loss from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

...
 
AMEDISYS, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION
(Amounts in thousands, except share, per share data and statistical information)

(Unaudited)

 

Balance Sheet Information

 
      As of December 31,
2013     2012
ASSETS
Current assets:
Cash and cash equivalents $ 17,303 $ 14,545
Patient accounts receivable, net of allowance for doubtful accounts of $14,231 and $20,994 111,133 169,172
Prepaid expenses 10,669 10,631
Deferred income taxes 55,329
Other current assets 10,785 11,440
Assets held for sale   60      
 
Total current assets 205,279 205,788
 
Property and equipment, net of accumulated depreciation of $129,891, and $113,154 159,025 156,709
Goodwill 208,915 209,594
Intangible assets, net of accumulated amortization of $25,133 and $23,457 36,690 47,050
Deferred income taxes 90,214 92,804
Other assets, net   26,283     18,650  
 
Total assets $ 726,406   $ 730,595  
 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 20,139 $ 29,175
Accrued charge related to U.S. Department of Justice settlement 150,000
Payroll and employee benefits 70,801 79,341
Accrued expenses 57,572 54,855
Current portion of long-term obligations 13,904 35,807
Current portion of deferred income taxes       5,609  
 
Total current liabilities 312,416 204,787
Long-term obligations, less current portion 33,000 66,904
Other long-term obligations   8,511     4,671  
 
Total liabilities   353,927     276,362  
 
Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value, 60,000,000 shares authorized; 33,413,970 and 31,876,508 shares issued; and 32,538,971 and 31,086,619 shares outstanding 33 32
Additional paid-in capital 467,890 450,792
Treasury stock at cost, 874,999 and 789,889 shares of common stock (18,176 ) (17,116 )
Accumulated other comprehensive income 15 15
Retained earnings   (77,561 )   18,617  
 
Total Amedisys, Inc. stockholders equity
372,201 452,340 Noncontrolling interests   278     1,893     Total equity   372,479     454,233     Total liabilities and equity $ 726,406   $ 730,595    
 

Statement of Operations Information

 
     

For the Three-Month Periods Ended
December 31,

   

For the Years Ended December 31,

2013     2012 2013     2012
Net service revenue $ 303,497 $ 351,586 $ 1,249,344 $ 1,440,836
Cost of service, excluding depreciation and amortization 179,336 198,899 717,996 810,704
General and administrative expenses:
Salaries and benefits 73,806 81,337 302,564 327,111
Non-cash compensation 1,586 1,152 6,519 7,217
Other 41,457 46,921 164,991 182,345
Provision for doubtful accounts 3,445 5,291 15,882 21,011
Depreciation and amortization 8,565 9,845 36,871 39,200
U.S. Department of Justice settlement 150,000
Goodwill and other intangibles impairment charge   5,664     162,103     9,492     162,103  
 
Operating expenses   313,859     505,548     1,404,315     1,549,691  
 
Operating loss (10,362 ) (153,962 ) (154,971 ) (108,855 )
Other (expense) income:
Interest income 14 13 54 65
Interest expense (1,934 ) (6,095 ) (4,412 ) (12,116 )
Equity in earnings from equity investments 466 604 1,520 1,695
Miscellaneous, net   (1,740 )   3,635     4,334     3,934  
 
Total other (expense) income, net   (3,194 )   (1,843 )   1,496     (6,422 )
 
Loss before income taxes (13,556 ) (155,805 ) (153,475 ) (115,277 )
Income tax benefit   5,038     34,400     58,773     20,020  
 
Loss from continuing operations (8,518 ) (121,405 ) (94,702 ) (95,257 )
Discontinued operations, net of tax   (1,459 )   (602 )   (3,073 )   (3,326 )
 
Net loss (9,977 ) (122,007 ) (97,775 ) (98,583 )
Net loss attributable to noncontrolling interests   349     15,195     1,597     14,995  
 
Net loss attributable to Amedisys, Inc. $ (9,628 ) $ (106,812 ) $ (96,178 ) $ (83,588 )
 
Basic and diluted earnings per common share:
Loss from continuing operations attributable to Amedisys, Inc. common stockholders $ (0.26 ) $ (3.50 ) $ (2.98 ) $ (2.68 )
Discontinued operations, net of tax   (0.04 )   (0.02 )   (0.10 )   (0.11 )
 
Loss attributable to Amedisys, Inc. common stockholders $ (0.30 ) $ (3.52 ) $ (3.08 ) $ (2.79 )
 
Weighted average shares outstanding   31,685     30,358     31,247     29,896  
 
Amounts attributable to Amedisys, Inc. common stockholders:
Loss from continuing operations $ (8,169 ) $ (106,210 ) $ (93,105 ) $ (80,262 )
Discontinued operations, net of tax   (1,459 )   (602 )   (3,073 )   (3,326 )
 
Net loss $ (9,628 ) $ (106,812 ) $ (96,178 ) $ (83,588 )
 

Cash Flow and Days Revenue Outstanding, Net Information

 
     

For the Three-Month Periods Ended
December 31,

   

For the Years Ended December 31,

2013     2012 2013     2012
Net cash provided by operating activities $ 8,401 $ 15,628 $ 102,263 $ 69,494
Net cash used in investing activities (11,002 ) (19,744 ) (46,458 ) (59,993 )
Net cash used in financing activities   (23,722 )   (20,445 )   (53,047 )   (42,960 )
 
Net (decrease) increase in cash and cash equivalents (26,323 ) (24,561 ) 2,758 (33,459 )
Cash and cash equivalents at beginning of period   43,626     39,106     14,545     48,004  
 
Cash and cash equivalents at end of period $ 17,303   $ 14,545   $ 17,303   $ 14,545  
 
Days revenue outstanding, net (1) 32.1 41.5
 

(1) Our calculation of days revenue outstanding, net at December 31, 2013 and 2012 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three month-period ended December 31, 2013 and 2012, respectively.

 
 

Supplemental Information - Home Health

 
      For the Three-Month Periods Ended    

For the Year
Ended December
31, 2013

March 31, 2013     June 30, 2013    

September 30,
2013

   

December 31.
2013

Financial Information (in millions):
Medicare $ 212.6 $ 204.6 $ 193.5 $ 193.1 $ 803.8
Non-Medicare   49.4     45.9     43.3     45.3     183.9  
 
Net service revenue 262.0 250.5 236.8 238.4 987.7
Cost of service   150.4     143.3     140.8     144.4     578.9  
 
Gross margin 111.6 107.2 96.0 94.0 408.8
Other operating expenses   84.8     81.6     79.5     79.4     325.3  
 
Operating income before impairment (1) $ 26.8   $ 25.6   $ 16.5   $ 14.6   $ 83.5  
 
Key Statistical Data:
Medicare:
Same Store Volume (2)
Revenue (8 )% (10 )% (12 )% (11 )% (10 )%
Admissions 2 % 0 % (1 )% (1 )% 0 %
Recertifications (17 )% (18 )% (21 )% (16 )% (18 )%
Total (3):
Admissions 50,007 47,734 45,420 45,405 188,566
Recertifications 28,687 27,493 26,119 25,609 107,908
Completed Episodes 75,884 75,461 70,401 69,034 290,780
Visits 1,370,884 1,323,138 1,253,329 1,230,625 5,177,976
Average revenue per completed episode (4) $ 2,778 $ 2,831 $ 2,822 $ 2,840 $ 2,817
Visits per completed episode (5) 17.5 17.7 17.3 17.5 17.5
 
Non-Medicare (3):
Admissions 21,586 18,235 17,832 18,898 76,551
Recertifications 8,200 7,532 7,262 7,310 30,304
Visits 422,357 380,502 358,819 370,103 1,531,781
 
Total (3):
Cost per Visit $ 83.89 $ 84.09 $ 87.31 $ 90.21 $ 86.27
Visits 1,793,241 1,703,640 1,612,148 1,600,728 6,709,757
 
 
      For the Three-Month Periods Ended    

For the Year
Ended December
31, 2012

March 31, 2012     June 30, 2012    

September 30,
2012

   

December 31,
2012

Financial Information (in millions):
Medicare $ 233.1 $ 231.3 $ 226.9 $ 224.0 $ 915.3
Non-Medicare   56.8     61.5     62.9     55.6     236.8  
 
Net service revenue 289.9 292.8 289.8 279.6 1,152.1
Cost of service   164.5     166.6     168.5     161.8     661.4  
 
Gross margin 125.4 126.2 121.3 117.8 490.7
Other operating expenses   92.7     89.4     90.0     89.8     361.9  
 
Operating income before impairment (1) $ 32.7   $ 36.8   $ 31.3   $ 28.0   $ 128.8  
 
Key Statistical Data:
Medicare:
Same Store Volume (2)
Revenue (8 )% (9 )% (5 )% (7 )% (7 )%
Admissions (2 )% 2 % 1 % 1 % 0 %
Recertifications (5 )% (7 )% (6 )% (12 )% (8 )%
Total (3):
Admissions 49,044 48,351 47,347 47,633 192,375
Recertifications 34,611 34,204 34,048 31,652 134,515
Completed Episodes 79,115 80,320 78,691 79,220 317,346
Visits 1,566,514 1,560,587 1,513,255 1,435,814 6,076,170
Average revenue per completed episode (4) $ 2,876 $ 2,883 $ 2,863 $ 2,845 $ 2,867
Visits per completed episode (5) 18.7 19.1 18.9 18.4 18.8
 
Non-Medicare (3):
Admissions 22,357 23,103 23,416 21,141 90,017
Recertifications 9,509 10,493 11,253 10,013 41,268
Visits 488,223 525,325 534,242 463,894 2,011,684
 
Total (3):
Cost per Visit $ 80.04 $ 79.88 $ 82.31 $ 85.17 $ 81.78
Visits 2,054,737 2,085,912 2,047,497 1,899,708 8,087,854
 

(1) Operating income of $9.9 million and $75.0 million on a GAAP basis for the quarter and year ended December 31, 2013, respectively. Operating loss of $133.5 million and $32.8 million for the quarter and the year ended December 31, 2012, respectively.

(2) Medicare revenue, admissions or recertifications growth is the percent increase (decrease) in our Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue, admissions or recertifications of the prior period.

(3) Based on continuing operations for all periods presented.

(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care excluding the impact of sequestration.

(5) Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.

 
 

Supplemental Information - Hospice

 
      For the Three-Month Periods Ended    

For the Year
Ended December
31, 2013

March 31,
2013

   

June 30, 2013

   

September 30,
2013

   

December 31,
2013

Financial Information (in millions):
Medicare $ 62.8 61.6 $ 60.6 $ 61.4 $ 246.4
Non-Medicare   3.8     3.8     3.9     3.7     15.2  
 
Net service revenue 66.6 65.4 64.5 65.1 261.6
Cost of service   35.2     34.5     34.5     34.9     139.1  
 
Gross margin 31.4 30.9 30.0 30.2 122.5
Other operating expenses   19.7     18.1     17.8     16.9     72.5  
 
Operating income before impairment (1) $ 11.7     12.8   $ 12.2   $ 13.3   $ 50.0  
 
Key Statistical Data:
Same store Medicare revenue growth (2) (5 )% (12 )% (13 )% (8 )% (9 )%
Hospice admits 4,957 4,655 4,352 4,371 18,335
Average daily census 5,071 5,006 4,917 4,866 4,964
Revenue per day $ 145.98 143.61 $ 142.52 $ 145.60 $ 144.43
Cost of service per day $ 77.04 75.34 $ 75.79 $ 77.63 $ 76.45
Average length of stay 103 99 98 98 100
 
For the Three-Month Periods Ended

For the Year
Ended December
31, 2012

March 31, 2012 June 30, 2012

September 30,
2012

December 31,
2012

Financial Information (in millions):
Medicare $ 65.1 $ 69.6 $ 70.2 $ 67.8 $ 272.7
Non-Medicare   4.1     3.9     3.9     4.1     16.0  
 
Net service revenue 69.2 73.5 74.1 71.9 288.7
Cost of service   36.3     37.8     38.1     37.1     149.3  
 
Gross margin 32.9 35.7 36.0 34.8 139.4
Other operating expenses   17.6     18.9     20.2     20.5     77.2  
 
Operating income before impairment (1) $ 15.3   $ 16.8   $ 15.8   $ 14.3   $ 62.2  
 
Key Statistical Data:
Same store Medicare revenue growth (2) 17 % 22 % 13 % 3 % 13 %
Hospice admits 4,854 4,849 4,667 4,629 18,999
Average daily census 5,171 5,478 5,592 5,381 5,406
Revenue per day $ 147.05 $ 147.31 $ 144.10 $ 145.24 $ 145.89
Cost of service per day $ 77.00 $ 75.68 $ 73.97 $ 74.85 $ 75.34
Average length of stay 92 95 102 106 99
 

(1) Operating income of $12.2 million and $49.0 million on a GAAP basis for the quarter and year ended December 31, 2013, respectively. Operating income of $13.8 million and $61.7 million on a GAAP basis for the quarter and year ended December 31, 2012, respectively.

(2) Same store Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the period.

 
 
Supplemental Information – Corporate
      For the Three-Month Periods Ended    

For the Year Ended
December 31, 2013

March 31, 2013     June 30, 2013     September 30, 2013    

December 31, 2013

Financial Information (in millions):
Depreciation and amortization $ 6.7 $ 6.2 $ 6.0 $ 5.6 $ 24.5
U.S. Department of Justice settlement 150.0 150.0
Other operating expenses   26.4     25.8     25.4     26.9     104.5  
 
Operating loss $ (33.1 ) $ (32.0 ) $ (181.4 ) $ (32.5 ) $ (279.0 )
 
 
For the Three-Month Periods Ended

For the Year Ended
December 31, 2012

March 31, 2012 June 30, 2012 September 30, 2012 December 31, 2012
Financial Information (in millions):
Depreciation and amortization $ 6.2 $ 6.0 $ 5.8 $ 6.5 $ 24.5
Other operating expenses   28.1     31.6     25.8     27.8     113.3  
 
Operating loss $ (34.3 ) $ (37.6 ) $ (31.6 ) $ (34.3 ) $ (137.8 )
 
 
AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAPP FINANCIAL MEASURES TO GAAP FINANCIAL STATEMENTS
(Amounts in thousands)

(Unaudited)

 
Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
         

For the Three-Month Periods
Ended December 31,

For the Years
Ended December 31,

2013     2012 2013     2012
Net loss attributable to Amedisys, Inc. $ (9,628 ) $ (106,812 ) $ (96,178 ) $ (83,588 )
Less:
Discontinued operations, net of tax   (1,459 )   (602 )   (3,073 )   (3,326 )
 
Net loss from continuing operations attributable to Amedisys, Inc. (8,169 ) (106,210 ) (93,105 ) (80,262 )
Add:
Provision for income taxes (5,038 ) (34,400 ) (58,773 ) (20,020 )
Interest expense, net 1,920 6,082 4,358 12,051
Depreciation and amortization   8,565     9,845     36,871     39,200  
 
EBITDA (1) (2,722 ) (124,683 ) (110,649 ) (49,031 )
Add:
Certain items (2) 9,626 151,013 158,177 148,609
Debt fees (2) (118 ) (4,681 ) (118 ) (4,681 )
Tax adjustments (2)           1,534     2,404  
 
Adjusted EBITDA (GUIDANCE BASIS) (3) 6,786 21,649 48,944 97,301
Add:
Legal fees   862     2,404     5,431     8,494  
 
Adjusted EBITDA (3) $ 7,648   $ 24,053   $ 54,375   $ 105,795  
 
 
Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:
 

For the Three-Month Periods
Ended December 31,

For the Years
Ended December 31,

2013 2012 2013 2012
Net loss attributable to Amedisys, Inc. $ (9,628 ) $ (106,812 ) $ (96,178 ) $ (83,588 )
Less:
Discontinued Operations, net of tax   (1,459 )   (602 )   (3,073 )   (3,326 )
 
Net loss from continuing operations attributable to Amedisys, Inc. (8,169 ) (106,210 ) (93,105 ) (80,262 )
Add:
Certain items (2)   5,930     112,511     98,326     110,075  
 
Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. (GUIDANCE BASIS) (4) (2,239 ) 6,301 5,221 29,813
Add:
Legal fees   531     1,433     3,345     4,990  
 
Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. (4) $ (1,708 ) $ 7,734   $ 8,566   $ 34,803  
 
 
Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:
         

For the Three-Month Periods
Ended December 31,

For the Years
Ended December 31,

2013     2012 2013     2012
Net loss attributable to Amedisys, Inc. common stockholders per diluted share $ (0.30 ) $ (3.52 ) $ (3.08 ) $ (2.79 )
Less:
Discontinued operations, net of tax   (0.04 )   (0.02 )   (0.10 )   (0.11 )
 
Net loss from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (0.26 ) (3.50 ) (2.98 ) (2.68 )
Add:
Certain items (2)   0.19     3.71     3.14     3.67  
 
Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (GUIDANCE BASIS) (5) (0.07 ) 0.21 0.16 0.99
Add:
Legal fees   0.02     0.04     0.11     0.16  
 
Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (5) $ (0.05 ) $ 0.25   $ 0.27   $ 1.15  
 

(1) EBITDA is defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

 
 

(2) The following details the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items for the three-months and years ended December 31, 2013 and 2012:

 
      For the Three-Month Period Ended December 31, 2013     For the Year Ended December 31, 2013

(Income)
Expense

    Net     Diluted EPS

(Income)
Expense

    Net     Diluted EPS
U.S. Department of Justice settlement $ $ 150,000 93,878 3.00
Goodwill and other intangibles impairment charge 5,664 3,489 0.11 9,492 5,847 0.18
D&O proceeds (5,530 ) (3,406 ) (0.11 )
Exit activity costs 2,313 1,425 0.05 3,882 2,391 0.08
Gain on sale of care centers (779 ) (480 ) (0.01 )
Debt costs 966 595 0.02 966 595 0.02
Tax adjustment (1,534 ) (1,534 ) (0.05 )
OIG self-disclosure 997 614 0.02
Sale of airplane   683     421     0.01     683     421     0.01  
 
Total $ 9,626   $ 5,930   $ 0.19 $ 158,177   $ 98,326   $ 3.14  
 
 
For the Three-Month Period Ended December 31, 2012 For the Year Ended December 31, 2012

(Income)
Expense

Net Diluted EPS

(Income)
Expense

Net Diluted EPS
Goodwill and other intangibles impairment charge $ 162,103 125,130 4.12 162,103 125,130 4.17
Non-controlling interests portion of impairment charges (14,874 ) (14,874 ) (0.49 ) (14,874 ) (14,874 ) (0.50 )
Exit activities related to continuing operations 2,707 1,613 0.05 2,707 1,590 0.05
Debt Costs 4,681 2,790 0.09 4,681 2,750 0.09
Lawsuit settlement (3,604 ) (2,148 ) (0.06 ) (3,604 ) (2,117 ) (0.06 )
Tax adjustment               (2,404 )   (2,404 )   (0.08 )
 
Total $ 151,013   $ 112,511   $ 3.71   $ 148,609   $ 110,075   $ 3.67  
 

(3) Adjusted EBITDA is defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization excluding the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(4) Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. is defined as net loss from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

(5) Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted loss from continuing operations per share excluding the earnings per share effect of the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators or operating performance. This calculation of adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

Contact:
Amedisys, Inc.
Investor Contact:
David Castille, 225-299-3391
Director, Treasury/Finance
david.castille@amedisys.com
or
Media Contact:
Kendra Kimmons, 225-299-3720
Managing Director, Marketing & Communications
kendra.kimmons@amedisys.com

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