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Amedisys Reports Fourth Quarter and Year End 2021 Financial Results; Issues 2022 Guidance

·27 min read
Amedisys, Inc.
Amedisys, Inc.

BATON ROUGE, La., Feb. 23, 2022 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2021.

Three-Month Periods Ended December 31, 2021 and 2020

  • Net service revenue increased $8.6 million to $559.3 million compared to $550.7 million in 2020.

  • Net income attributable to Amedisys, Inc. of $34.0 million compared to $45.2 million in 2020.

  • Net income attributable to Amedisys, Inc. per diluted share of $1.04 compared to $1.36 in 2020.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $64.8 million compared to $78.1 million in 2020.

  • Adjusted net service revenue of $559.3 million compared to $550.7 million in 2020.

  • Adjusted net income attributable to Amedisys, Inc. of $38.8 million compared to $49.5 million in 2020.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.18 compared to $1.49 in 2020.

Years Ended December 31, 2021 and 2020

  • Net service revenue increased $142.6 million to $2,214.1 million compared to $2,071.5 million in 2020.

  • Net income attributable to Amedisys, Inc. of $209.1 million compared to $183.6 million in 2020.

  • Net income attributable to Amedisys, Inc. per diluted share of $6.34 compared to $5.52 in 2020.

Adjusted Year End Results*

  • Adjusted EBITDA of $299.6 million compared to $273.5 million in 2020.

  • Adjusted net service revenue of $2,207.6 million compared to $2,071.5 million in 2020.

  • Adjusted net income attributable to Amedisys, Inc. of $196.1 million compared to $203.3 million in 2020.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $5.95 compared to $6.11 in 2020.

* See pages 2 and 14-16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

2022 Guidance

  • Adjusted net service revenue is anticipated to be in the range of $2.330 billion to $2.365 billion.

  • Adjusted EBITDA is anticipated to be in the range of $275 million to $285 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $5.23 to $5.45 based on an estimated 33.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions and potential share repurchases, if any are made. COVID-19 has continued to impact the operating metrics typically used to forecast both growth and costs assumptions for both core Amedisys and Contessa. We are basing our guidance on our current operating environment. COVID-19 continues to evolve in both the disease itself as well as disruptions to the healthcare systems and the economy. Any future regulations or government interventions, spike in clinicians and business development staff on quarantine, staffing shortages due to current and proposed federal, state and local vaccine mandates, reduction in elective procedures, change in patient behavior and further decline in senior living occupancy could impact our ability to achieve this guidance.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “I am very pleased with our fourth quarter and full year 2021 results. Though 2021 saw COVID-19 impact all our lines of business, the effort our nearly 21,000 Amedisys employees showed all year is something I am incredibly proud of. While it is hard to predict when the impacts of COVID-19 will truly subside, we remain very excited about all of the opportunity ahead of us. 2022 is a year that will set us up to capitalize on the aging demographics of the U.S. population which will position us for accelerated growth in the future. We continue to lead the industry in quality, are working through new and innovative workforce optimization initiatives and are seeing tremendous interest in what a combined Amedisys and Contessa platform can offer to payors. I am excited to see all the good that Amedisys will do as we work our way through 2022 and am confident that Chris and team will continue to lead this organization to new levels of success.”

We urge caution in considering the current trends and 2022 guidance disclosed in this press release. The home health, hospice, personal care and high acuity care industries are 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, 2021, 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 Thursday, February 24, 2022, at 11:00 a.m. ET to discuss its fourth quarter and year end 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 March 24, 2022 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13726704.

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 net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted other operating income, defined as other operating income excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5) 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, personal care and high acuity care services. 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 our patients to manage a chronic disease, or hospice care at the end of life. Over 3,000 hospitals and 90,000 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 approximately 21,000 employees in 530 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 445,000 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,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “could,” “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: the impact of the novel coronavirus pandemic (“COVID-19”), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations; the impact of current and proposed federal, state and local vaccine mandates, including potential staffing shortages; 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; our ability to keep our patients and employees safe; 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, widespread protests or civil unrest; our ability to integrate, manage and keep our information systems secure; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; and changes in laws 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

Senior Vice President, Finance

Vice President, Marketing & Communications

(615) 928-5452

(225) 299-3720

IR@amedisys.com

kendra.kimmons@amedisys.com


AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

For the Three-Month
Periods Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

(Unaudited)

Net service revenue

$

559,317

$

550,705

$

2,214,112

$

2,071,519

Other operating income

6,780

13,300

34,372

Cost of service, excluding depreciation and amortization

317,168

306,736

1,233,356

1,185,369

General and administrative expenses:

Salaries and benefits

125,185

119,119

474,718

449,448

Non-cash compensation

5,949

6,972

23,809

26,730

Other

53,718

49,506

212,713

192,122

Depreciation and amortization

9,138

8,847

30,901

28,802

Asset impairment charge

4,152

4,152

Operating expenses

511,158

495,332

1,975,497

1,886,623

Operating income

48,159

62,153

251,915

219,268

Other income (expense):

Interest income

34

49

292

Interest expense

(2,791

)

(2,363

)

(9,525

)

(11,038

)

Equity in earnings from equity method investments

1,017

1,567

4,949

3,966

Gain (loss) on equity method investments

6

31,098

(2,980

)

Miscellaneous, net

492

649

1,745

1,311

Total other (expense) income, net

(1,276

)

(113

)

28,316

(8,449

)

Income before income taxes

46,883

62,040

280,231

210,819

Income tax expense

(12,873

)

(16,460

)

(70,065

)

(25,635

)

Net income

34,010

45,580

210,166

185,184

Net loss (income) attributable to noncontrolling interests

37

(429

)

(1,094

)

(1,576

)

Net income attributable to Amedisys, Inc.

$

34,047

$

45,151

$

209,072

$

183,608

Basic earnings per common share:

Net income attributable to Amedisys, Inc. common stockholders

$

1.04

$

1.38

$

6.41

$

5.64

Weighted average shares outstanding

32,594

32,825

32,642

32,559

Diluted earnings per common share:

Net income attributable to Amedisys, Inc. common stockholders

$

1.04

$

1.36

$

6.34

$

5.52

Weighted average shares outstanding

32,823

33,243

32,972

33,268


AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

As of December 31,

2021

2020

ASSETS

Current assets:

Cash and cash equivalents

$

42,694

$

81,808

Restricted cash

3,075

1,549

Patient accounts receivable

274,961

255,145

Prepaid expenses

10,356

10,217

Other current assets

25,598

13,265

Total current assets

356,684

361,984

Property and equipment, net of accumulated depreciation of $96,937 and $95,024

18,435

23,719

Operating lease right of use assets

101,257

93,440

Goodwill

1,196,090

932,685

Intangible assets, net of accumulated amortization of $19,900 and $22,973

111,190

74,183

Deferred income taxes

289

47,987

Other assets

73,023

33,200

Total assets

$

1,856,968

$

1,567,198

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

38,217

$

42,674

Payroll and employee benefits

141,001

146,929

Accrued expenses

150,836

166,192

Provider relief fund advance

60,000

Current portion of long-term obligations

12,995

10,496

Current portion of operating lease liabilities

31,233

30,046

Total current liabilities

374,282

456,337

Long-term obligations, less current portion

432,075

204,511

Operating lease liabilities, less current portion

69,309

61,987

Other long-term obligations

4,979

33,622

Total liabilities

880,645

756,457

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; 37,674,868 and 37,470,212 shares issued; and 32,509,969 and 32,814,278 shares outstanding

38

38

Additional paid-in capital

728,118

698,287

Treasury stock at cost, 5,164,899 and 4,655,934 shares of common stock

(435,868

)

(319,092

)

Retained earnings

639,063

429,991

Total Amedisys, Inc. stockholders’ equity

931,351

809,224

Noncontrolling interests

44,972

1,517

Total equity

976,323

810,741

Total liabilities and equity

$

1,856,968

$

1,567,198


AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)

For the Three-Month
Periods Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

(Unaudited)

Cash Flows from Operating Activities:

Net income

$

34,010

$

45,580

$

210,166

$

185,184

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

Depreciation and amortization

9,138

8,847

30,901

28,802

Non-cash compensation

5,949

6,972

23,809

26,730

Amortization and impairment of operating lease right of use assets

10,183

9,991

40,364

39,140

(Gain) loss on disposal of property and equipment

(60

)

47

(124

)

(30

)

(Gain) loss on equity method investments

(6

)

(31,098

)

2,980

Write-off of other comprehensive income

(15

)

Deferred income taxes

9,853

(23,798

)

44,582

(26,560

)

Equity in earnings from equity method investments

(1,017

)

(1,567

)

(4,949

)

(3,966

)

Amortization of deferred debt issuance costs/debt discount

248

216

917

869

Return on equity method investments

1,075

1,525

5,343

5,444

Asset impairment charge

4,152

4,152

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

Patient accounts receivable

(392

)

(4,372

)

(18,030

)

2,114

Other current assets

(5,983

)

21,036

(12,202

)

(7,181

)

Other assets

(79

)

122

(1,017

)

31

Accounts payable

(3,161

)

3,568

(4,353

)

1,941

Accrued expenses

(17,552

)

14,245

(26,915

)

39,839

Other long-term obligations

(27,011

)

(10,764

)

(28,796

)

27,717

Operating lease liabilities

(9,273

)

(9,119

)

(36,645

)

(34,695

)

Operating lease right of use assets

(756

)

(769

)

(3,060

)

(3,544

)

Net cash provided by operating activities

5,166

65,912

188,893

288,952

Cash Flows from Investing Activities:

Proceeds from the sale of deferred compensation plan assets

9

7

135

101

Proceeds from the sale of property and equipment

4

144

80

Purchases of property and equipment

(1,115

)

(2,337

)

(6,302

)

(5,332

)

Investments in technology assets

(272

)

(419

)

Purchase of investment

(5,200

)

(5,200

)

(875

)

Proceeds from sale of equity method investment

17,876

Acquisitions of businesses, net of cash acquired

(5,093

)

765

(269,965

)

(298,958

)

Net cash used in investing activities

(11,667

)

(1,565

)

(281,607

)

(287,108

)

Cash Flows from Financing Activities:

Proceeds from issuance of stock upon exercise of stock options

348

255

2,054

6,325

Proceeds from issuance of stock to employee stock purchase plan

946

962

3,968

3,562

Shares withheld to pay taxes on non-cash compensation

(204

)

(321

)

(16,898

)

(54,493

)

Noncontrolling interest contributions

250

250

Noncontrolling interest distributions

(494

)

(450

)

(1,747

)

(1,122

)

Proceeds from borrowings under term loan

290,312

Proceeds from borrowings under revolving line of credit

252,200

500,700

684,200

Repayments of borrowings under revolving line of credit

(346,200

)

(551,700

)

(703,200

)

Principal payments of long-term obligations

(3,250

)

(2,889

)

(9,143

)

(10,249

)

Debt issuance costs

(2,792

)

Provider relief fund advance

(58,535

)

(60,000

)

60,000

Purchase of company stock

(14,999

)

(99,878

)

Net cash (used in) provided by financing activities

(75,938

)

(96,443

)

55,126

(14,977

)

Net decrease in cash, cash equivalents and restricted cash

(82,439

)

(32,096

)

(37,588

)

(13,133

)

Cash, cash equivalents and restricted cash at beginning of period

128,208

115,453

83,357

96,490

Cash, cash equivalents and restricted cash at end of period

$

45,769

$

83,357

$

45,769

$

83,357

Supplemental Disclosures of Cash Flow Information:

Cash paid for interest

$

1,812

$

1,305

$

5,291

$

6,207

Cash paid for income taxes, net of refunds received

$

8,615

$

20,431

$

34,097

$

50,721

Days revenue outstanding (1)

43.2

40.2

43.2

40.2

(1) Our calculation of days revenue outstanding at December 31, 2021 and 2020 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended December 31, 2021 and 2020, respectively.


AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)

Segment Information - Home Health

For the Three-Month Periods
Ended December 31,

2021

2020

Financial Information (in millions):

Medicare

$

230.1

$

228.3

Non-Medicare

107.2

101.1

Net service revenue

337.3

329.4

Other operating income

2.5

Cost of service

193.1

186.1

Gross margin

144.2

145.8

Depreciation and amortization

1.0

1.0

Asset impairment charge

3.4

Other operating expenses

84.7

80.5

Operating income

$

58.5

$

60.9

Same Store Growth (1):

Medicare revenue

1

%

6

%

Non-Medicare revenue

6

%

%

Total admissions

2

%

6

%

Total volume (2)(6)

2

%

5

%

Key Statistical Data - Total (3):

Admissions

87,142

85,474

Recertifications (6)

46,390

44,820

Total volume (6)

133,532

130,294

Medicare completed episodes

78,693

80,008

Average Medicare revenue per completed episode (4)

$

2,951

$

2,906

Medicare visits per completed episode (5)

13.7

14.0

Visiting Clinician Cost per Visit

$

98.16

$

92.62

Clinical Manager Cost per Visit

$

10.39

$

9.38

Total Cost per Visit

$

108.55

$

102.00

Visits

1,778,512

1,824,557


For the Years Ended
December 31,

2021

2020

Financial Information (in millions):

Medicare

$

914.5

$

847.3

Non-Medicare

439.3

401.9

Net service revenue

1,353.8

1,249.2

Other operating income

7.3

20.2

Cost of service

756.6

729.9

Gross margin

604.5

539.5

Depreciation and amortization

4.3

3.9

Asset impairment charge

3.4

Other operating expenses

328.5

307.2

Operating income

$

271.7

$

225.0

Same Store Growth (1):

Medicare revenue

8

%

(1

%)

Non-Medicare revenue

9

%

1

%

Total admissions

6

%

1

%

Total volume (2)(6)

5

%

2

%

Key Statistical Data - Total (3):

Admissions

353,075

331,354

Recertifications (6)

183,134

177,631

Total volume (6)

536,209

508,985

Medicare completed episodes

311,531

301,856

Average Medicare revenue per completed episode (4)

$

2,959

$

2,836

Medicare visits per completed episode (5)

13.9

14.9

Visiting Clinician Cost per Visit

$

93.44

$

89.62

Clinical Manager Cost per Visit

$

9.75

$

9.17

Total Cost per Visit

$

103.19

$

98.79

Visits

7,331,935

7,388,549

(1) Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. 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 includes acquisitions, start-ups and denovos.
(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode for the years ended December 31, 2021 and 2020 reflects the transition to PDGM effective January 1, 2020 and the suspension of sequestration effective May 1, 2020.
(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.
(6) Prior year amounts have been recast to conform to the current year calculation.

Segment Information - Hospice

For the Three-Month Periods
Ended December 31,

2021

2020

Financial Information (in millions):

Medicare

$

193.9

$

193.5

Non-Medicare

11.0

10.4

Net service revenue

204.9

203.9

Other operating income

4.2

Cost of service

110.8

107.5

Gross margin

94.1

100.6

Depreciation and amortization

0.7

0.5

Asset impairment

0.8

Other operating expenses

54.0

48.0

Operating income

$

39.4

$

51.3

Same Store Growth (1):

Medicare revenue

%

4

%

Hospice admissions

(1

%)

15

%

Average daily census

(4

%)

%

Key Statistical Data - Total (2):

Hospice admissions

13,857

13,939

Average daily census

13,237

13,793

Revenue per day, net

$

168.24

$

160.72

Cost of service per day

$

91.01

$

84.72

Average discharge length of stay

90

102


For the Years Ended
December 31,

2021

2020

Financial Information (in millions):

Medicare

$

750.1

$

710.0

Non-Medicare

41.7

40.1

Net service revenue

791.8

750.1

Other operating income

6.0

13.1

Cost of service

425.2

400.6

Gross margin

372.6

362.6

Depreciation and amortization

2.7

2.2

Asset impairment

0.8

Other operating expenses

198.4

175.4

Operating income

$

171.5

$

184.2

Same Store Growth (1):

Medicare revenue

%

4

%

Hospice admissions

2

%

6

%

Average daily census

(4

%)

1

%

Key Statistical Data - Total (2):

Hospice admissions

53,507

49,694

Average daily census

13,271

13,081

Revenue per day, net

$

163.47

$

156.69

Cost of service per day

$

87.77

$

83.67

Average discharge length of stay

94

99

(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. 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 December 31,

2021

2020

Financial Information (in millions):

Medicare

$

$

Non-Medicare

15.1

17.4

Net service revenue

15.1

17.4

Other operating income

0.1

Cost of service

11.7

13.2

Gross margin

3.4

4.3

Depreciation and amortization

0.1

Other operating expenses

2.4

2.9

Operating income

$

1.0

$

1.3

Key Statistical Data - Total:

Billable hours

500,546

662,163

Clients served

7,867

10,057

Shifts

215,167

281,445

Revenue per hour

$

30.09

$

26.24

Revenue per shift

$

69.99

$

61.74

Hours per shift

2.3

2.4


For the Years Ended
December 31,

2021

2020

Financial Information (in millions):

Medicare

$

$

Non-Medicare

65.0

72.2

Net service revenue

65.0

72.2

Other operating income

1.1

Cost of service

49.1

54.9

Gross margin

15.9

18.4

Depreciation and amortization

0.2

0.2

Other operating expenses

11.2

12.4

Operating income

$

4.5

$

5.8

Key Statistical Data - Total:

Billable hours

2,275,511

2,730,121

Clients served

12,074

15,019

Shifts

974,409

1,177,586

Revenue per hour

$

28.54

$

26.45

Revenue per shift

$

66.66

$

61.31

Hours per shift

2.3

2.3

Segment Information - High Acuity Care

For the Three-Month Periods
Ended December 31,

2021

2020

Financial Information (in millions):

Medicare

$

$

Non-Medicare

2.0

Net service revenue

2.0

Other operating income

Cost of service

1.6

Gross margin

0.4

Depreciation and amortization

0.8

Other operating expenses

6.1

Operating loss

$

(6.5

)

$

Key Statistical Data - Total:

Full risk admissions

61

Limited risk admissions

225

Total admissions

286

Direct medical loss ratio

54.6

%

Number of joint ventures

8

Market penetration

31

%

Patient satisfaction

97

%


For the Years Ended
December 31,

2021

2020

Financial Information (in millions):

Medicare

$

$

Non-Medicare

3.5

Net service revenue

3.5

Other operating income

Cost of service

2.5

Gross margin

1.0

Depreciation and amortization

1.3

Other operating expenses

10.0

Operating loss

$

(10.3

)

$

Key Statistical Data - Total:

Full risk admissions

107

Limited risk admissions

413

Total admissions

520

Direct medical loss ratio

54.0

%

Number of joint ventures

8

Market penetration

31

%

Patient satisfaction

97

%

Segment Information - Corporate

For the Three-Month Periods
Ended December 31,

2021

2020

Financial Information (in millions):

Other operating expenses

$

37.6

$

44.0

Depreciation and amortization

6.6

7.3

Total operating expenses

$

44.2

$

51.3


For the Years Ended
December 31,

2021

2020

Financial Information (in millions):

Other operating expenses

$

163.1

$

173.2

Depreciation and amortization

22.4

22.5

Total operating expenses

$

185.5

$

195.7


AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
(Amounts in thousands)
(Unaudited)

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

For the Three-Month Periods
Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

Net income attributable to Amedisys, Inc.

$

34,047

$

45,151

$

209,072

$

183,608

Add:

Income tax expense

12,873

16,460

70,065

25,635

Interest expense, net

2,791

2,329

9,476

10,746

Depreciation and amortization

9,138

8,847

30,901

28,802

Certain items (1)

6,412

5,815

(18,028

)

26,658

Interest component of certain items (1)

(451

)

(464

)

(1,888

)

(1,914

)

Adjusted EBITDA (2) (7)

$

64,810

$

78,138

$

299,598

$

273,535

Adjusted Net Service Revenue Reconciliation:

For the Three-Month Periods
Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

Net service revenue

$

559,317

$

550,705

$

2,214,112

$

2,071,519

Add:

Certain items (1)

(6,541

)

Adjusted net service revenue (3) (7)

$

559,317

$

550,705

$

2,207,571

$

2,071,519

Adjusted Other Operating Income Reconciliation:

For the Three-Month Periods
Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

Other operating income

$

$

6,780

$

13,300

$

34,372

Add:

Certain items (1)

(6,780

)

(13,300

)

(34,372

)

Adjusted other operating income (4) (7)

$

$

$

$

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

For the Three-Month Periods
Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

Net income attributable to Amedisys, Inc.

$

34,047

$

45,151

$

209,072

$

183,608

Add:

Certain items (1)

4,764

4,303

(12,923

)

19,727

Adjusted net income attributable to Amedisys, Inc. (5) (7)

$

38,811

$

49,454

$

196,149

$

203,335

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

For the Three-Month Periods
Ended December 31,

For the Years Ended
December 31,

2021

2020

2021

2020

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

$

1.04

$

1.36

$

6.34

$

5.52

Add:

Certain items (1)

0.15

0.13

(0.39

)

0.59

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7)

$

1.18

$

1.49

$

5.95

$

6.11

(1) The following details the certain items for the three-month periods and years ended December 31, 2021 and 2020:

Certain Items:

For the Three-Month Period
Ended December 31, 2021

For the Year Ended
December 31, 2021

(Income) Expense

(Income) Expense

Certain Items Impacting Net Service Revenue:

Contingency accrual

$

$

(6,541

)

Certain Items Impacting Other Operating Income:

CARES Act & State COVID-19 grants

(13,300

)

Certain Items Impacting Cost of Service:

COVID-19 costs

4,323

20,780

Certain Items Impacting Operating Expenses:

Acquisition and integration costs

1,310

7,559

COVID-19 costs

140

716

Pre-acquisition legal settlement

1,825

Certain Items Impacting Total Other Income (Expense):

Interest component of certain items

451

1,888

Other (income) expense, net

188

(30,955

)

Total

$

6,412

$

(18,028

)

Net of tax

$

4,764

$

(12,923

)

Diluted EPS

$

0.15

$

(0.39

)


For the Three-Month Period
Ended December 31, 2020

For the Year Ended
December 31, 2020

(Income) Expense

(Income) Expense

Certain Items Impacting Other Operating Income:

CARES Act & State COVID-19 grants

$

(6,780

)

$

(34,372

)

Certain Items Impacting Cost of Service:

COVID-19 costs

6,568

33,967

Severance - reductions in staffing levels

4,633

Certain Items Impacting Operating Expenses:

Acquisition and integration costs

1,234

10,795

COVID-19 costs

177

1,562

Severance - reductions in staffing levels

271

Asset impairment

4,152

4,152

Certain Items Impacting Total Other Income (Expense):

Interest component of certain items

464

1,914

Other (income) expense, net

3,736

Total

$

5,815

$

26,658

Net of tax

$

4,303

$

19,727

Diluted EPS

$

0.13

$

0.59

(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
(3) Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4) Adjusted other operating income is defined as other operating income excluding certain items as described in footnote 1.
(5) 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.
(6) 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.
(7) Adjusted EBITDA, adjusted net service revenue, adjusted other operating income, 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.