Amedisys Reports Fourth Quarter and Year-End 2023 Financial Results

Amedisys, Inc.

BATON ROUGE, La., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2023.

Three-Month Periods Ended December 31, 2023 and 2022

• Net service revenue increased $8.8 million to $570.8 million compared to $562.0 million in 2022. Prior year included $15.9 million of net service revenue from our personal care business which was divested on March 31, 2023.

• Net income attributable to Amedisys, Inc. of $19.3 million, which is inclusive of $11.5 million in costs associated with with our merger transactions, compared to $31.7 million in 2022.

• Net income attributable to Amedisys, Inc. per diluted share of $0.59 compared to $0.97 in 2022.
  

Adjusted Quarterly Results*

• Adjusted EBITDA of $56.7 million compared to $59.9 million in 2022.

• Adjusted net service revenue of $570.8 million compared to $562.0 million in 2022. Prior year included $15.9 million of net service revenue from our personal care business which was divested on March 31, 2023.

• Adjusted net income attributable to Amedisys, Inc. of $30.8 million compared to $38.0 million in 2022.

• Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.94 compared to $1.16 in 2022.

Years Ended December 31, 2023 and 2022

• Net service revenue increased $13.2 million to $2,236.4 million compared to $2,223.2 million in 2022. Prior year included $61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to $15.0 million in 2023.

• Net loss attributable to Amedisys, Inc. of $9.7 million, which is inclusive of $142.7 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $118.6 million in 2022.

• Net loss attributable to Amedisys, Inc. per diluted share of $0.30 compared to net income attributable to Amedisys, Inc. per diluted share of $3.63 in 2022.
  

Adjusted Year End Results*

• Adjusted EBITDA of $247.0 million compared to $262.1 million in 2022.

• Adjusted net service revenue of $2,236.4 million compared to $2,232.5 million in 2022. Prior year included $61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to $15.0 million in 2023.

• Adjusted net income attributable to Amedisys, Inc. of $140.6 million compared to $163.4 million in 2022.

• Adjusted net income attributable to Amedisys, Inc. per diluted share of $4.30 compared to $5.01 in 2022.

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

The supplemental slides provided in connection with the fourth quarter and year ended December 31, 2023 earnings release can be found on the Investor Relations page of our website. In light of the pending merger of the Company with UnitedHealth Group Incorporated, Amedisys will not conduct a quarterly earnings call to discuss the fourth quarter and year ended December 31, 2023 results.

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 (loss) 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 net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share calculated in accordance with GAAP 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 high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes, home-based 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. More than 3,000 hospitals and 110,000 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 19,000 employees in 521 care centers within 37 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 469,000 patients 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: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms and timetable; the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger; changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; 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 estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; 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
	Chief Strategy Officer	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,
		2023				2022				2023				2022
	(Unaudited)
Net service revenue	$	570,788			$	562,064			$	2,236,382			$	2,223,199
Operating expenses:
Cost of service, inclusive of depreciation		321,416				317,167				1,245,509				1,260,425
General and administrative expenses:
Salaries and benefits		140,603				132,003				521,529				508,791
Non-cash compensation		7,114				570				26,082				16,560
Merger-related expenses		11,521				—				36,672				—
Depreciation and amortization		4,143				5,230				17,747				24,935
Investment impairment		—				—				—				3,009
Other		51,982				60,856				232,449				228,707
Total operating expenses		536,779				515,826				2,079,988				2,042,427
Operating income		34,009				46,238				156,394				180,772
Other income (expense):
Interest income		818				70				3,270				178
Interest expense		(8,234	)			(5,781	)			(31,274	)			(22,228	)
Equity in earnings (loss) from equity method investments		1,394				397				10,760				(45	)
Merger termination fee		—				—				(106,000	)			—
Miscellaneous, net		1,211				412				6,473				1,567
Total other expense, net		(4,811	)			(4,902	)			(116,771	)			(20,528	)
Income before income taxes		29,198				41,336				39,623				160,244
Income tax expense		(10,178	)			(9,790	)			(50,559	)			(42,545	)
Net income (loss)		19,020				31,546				(10,936	)			117,699
Net loss attributable to noncontrolling interests		302				171				1,189				910
Net income (loss) attributable to Amedisys, Inc.	$	19,322			$	31,717			$	(9,747	)		$	118,609
Basic earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.59			$	0.98			$	(0.30	)		$	3.65
Weighted average shares outstanding		32,635				32,511				32,599				32,517
Diluted earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.59			$	0.97			$	(0.30	)		$	3.63
Weighted average shares outstanding		32,913				32,602				32,599				32,653

AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
	As of December 31,
		2023				2022
ASSETS
Current assets:
Cash and cash equivalents	$	126,450			$	40,540
Restricted cash		12,413				13,593
Patient accounts receivable		313,373				296,785
Prepaid expenses		14,639				11,628
Other current assets		30,060				26,415
Total current assets		496,935				388,961
Property and equipment, net of accumulated depreciation of $92,422 and $101,364		41,845				16,026
Operating lease right of use assets		88,939				102,856
Goodwill		1,244,679				1,287,399
Intangible assets, net of accumulated amortization of $14,008 and $14,604		102,675				101,167
Other assets		85,097				79,836
Total assets	$	2,060,170			$	1,976,245
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	28,237			$	43,735
Payroll and employee benefits		136,835				125,387
Accrued expenses		140,049				137,390
Termination fee paid by UnitedHealth Group		106,000				—
Current portion of long-term obligations		36,314				15,496
Current portion of operating lease liabilities		26,286				33,521
Total current liabilities		473,721				355,529
Long-term obligations, less current portion		361,862				419,420
Operating lease liabilities, less current portion		62,751				69,504
Deferred income tax liabilities		40,635				20,411
Other long-term obligations		1,418				4,808
Total liabilities		940,387				869,672
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; 38,131,478 and 37,891,186 shares issued; and 32,667,631 and 32,511,465 shares outstanding		38				38
Additional paid-in capital		787,177				755,063
Treasury stock at cost, 5,463,847 and 5,379,721 shares of common stock		(468,626	)			(461,200	)
Retained earnings		747,925				757,672
Total Amedisys, Inc. stockholders’ equity		1,066,514				1,051,573
Noncontrolling interests		53,269				55,000
Total equity		1,119,783				1,106,573
Total liabilities and equity	$	2,060,170			$	1,976,245

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,
		2023				2022				2023				2022
	(Unaudited)
Cash Flows from Operating Activities:
Net income (loss)	$	19,020			$	31,546			$	(10,936	)		$	117,699
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (inclusive of depreciation included in cost of service)		5,891				5,230				23,847				24,935
Non-cash compensation		9,400				570				29,024				16,560
Amortization and impairment of operating lease right of use assets		8,569				11,247				33,996				46,029
(Gain) loss on disposal of property and equipment		(27	)			12				319				519
Deferred income taxes		5,238				4,346				20,655				23,377
Loss on personal care divestiture		—				—				2,186				—
Merger termination fee		—				—				106,000				—
Equity in (earnings) loss from equity method investments		(1,394	)			(397	)			(10,760	)			45
Amortization of deferred debt issuance costs		248				248				991				991
Return on equity method investments		764				1,365				5,073				5,163
Investment impairment		—				—				—				3,009
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		6,207				4,036				(26,727	)			(14,230	)
Other current assets		8,796				16,404				(6,638	)			(3,525	)
Operating lease right of use assets		(983	)			(919	)			(3,786	)			(3,242	)
Other assets		(84	)			155				189				438
Accounts payable		(6,977	)			(992	)			(15,816	)			4,894
Accrued expenses		13,354				(12,592	)			23,694				(39,382	)
Other long-term obligations		(234	)			(9,065	)			(3,390	)			(8,822	)
Operating lease liabilities		(7,477	)			(10,311	)			(30,733	)			(41,175	)
Net cash provided by operating activities		60,311				40,883				137,188				133,283
Cash Flows from Investing Activities:
Proceeds from the sale of deferred compensation plan assets		29				163				54				252
Proceeds from the sale of property and equipment		36				—				136				66
Purchases of property and equipment		(1,892	)			(1,827	)			(5,620	)			(6,165	)
Investments in technology assets		(212	)			(202	)			(7,093	)			(1,050	)
Investment in equity method investee		—				—				—				(637	)
Purchase of cost method investment		—				—				—				(15,000	)
Return of investment		—				—				150				—
Proceeds from personal care divestiture		—				—				47,787				—
Acquisitions of businesses, net of cash acquired		—				—				(350	)			(71,952	)
Net cash (used in) provided by investing activities		(2,039	)			(1,866	)			35,064				(94,486	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		—				1,226				100				2,304
Proceeds from issuance of stock to employee stock purchase plan		—				991				2,602				3,848
Shares withheld to pay taxes on non-cash compensation		(2,116	)			(32	)			(6,529	)			(7,981	)
Noncontrolling interest contributions		220				1,401				1,452				3,501
Noncontrolling interest distributions		(259	)			(136	)			(1,873	)			(1,561	)
Proceeds from sale of noncontrolling interest		—				1,876				—				5,817
Purchase of noncontrolling interest		—				—				(800	)			—
Proceeds from borrowings under revolving line of credit		—				50,500				23,000				534,500
Repayments of borrowings under revolving line of credit		—				(69,000	)			(23,000	)			(534,500	)
Principal payments of long-term obligations		(8,900	)			(3,170	)			(76,013	)			(13,296	)
Purchase of company stock		—				—				—				(17,351	)
Payment of accrued contingent consideration		(2,370	)			—				(6,461	)			(5,714	)
Net cash used in financing activities		(13,425	)			(16,344	)			(87,522	)			(30,433	)
Net increase in cash, cash equivalents and restricted cash		44,847				22,673				84,730				8,364
Cash, cash equivalents and restricted cash at beginning of period		94,016				31,460				54,133				45,769
Cash, cash equivalents and restricted cash at end of period	$	138,863			$	54,133			$	138,863			$	54,133
	For the Three-Month  Periods Ended December 31,								For the Years Ended December 31,
		2023				2022				2023				2022
	(Unaudited)
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	7,888			$	5,786			$	29,766			$	14,939
Cash paid for Infinity ZPIC interest	$	—			$	1,211			$	—			$	12,755
Cash paid for income taxes, net of refunds received	$	4,809			$	431			$	29,127			$	24,013
Supplemental Disclosures of Non-Cash Activity:
Accrued contingent consideration	$	—			$	—			$	—			$	19,195
Noncontrolling interest contribution	$	—			$	—			$	—			$	8,900
Days revenue outstanding (1)		47.7				46.1				47.7				46.1

(1) Our calculation of days revenue outstanding at December 31, 2023 and 2022 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended December 31, 2023 and 2022, 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,
		2023				2022
Financial Information (in millions)(6):
Medicare	$	221.1			$	224.8
Non-Medicare		137.8				120.1
Net service revenue		358.9				344.9
Cost of service, inclusive of depreciation		208.0				197.3
Gross margin		150.9				147.6
General and administrative expenses		92.8				90.0
Depreciation and amortization		1.9				0.7
Operating income	$	56.2			$	56.9
Same Store Growth(1):
Medicare revenue		(1	%)			(6	%)
Non-Medicare revenue		15	%			8	%
Total admissions		7	%			5	%
Total volume(2)		5	%			1	%
Key Statistical Data - Total(3)(6):
Admissions		101,809				95,006
Recertifications		44,893				44,670
Total volume		146,702				139,676
Medicare completed episodes		73,892				76,357
Average Medicare revenue per completed episode(4)	$	2,997			$	2,995
Medicare visits per completed episode(5)		12.2				12.6
Visiting clinician cost per visit	$	108.64			$	104.12
Clinical manager cost per visit		12.12				11.77
Total cost per visit	$	120.76			$	115.89
Visits		1,721,985				1,702,334

	For the Years Ended December 31,
		2023				2022
Financial Information (in millions)(6):
Medicare	$	874.2			$	896.5
Non-Medicare		529.4				465.2
Net service revenue		1,403.6				1,361.7
Cost of service, inclusive of depreciation		801.1				773.9
Gross margin		602.5				587.8
General and administrative expenses		363.5				351.1
Depreciation and amortization		6.0				4.0
Operating income	$	233.0			$	232.7
Same Store Growth(1):
Medicare revenue		(3	%)			(5	%)
Non-Medicare revenue		13	%			2	%
Total admissions		6	%			3	%
Total volume(2)		4	%			—	%
Key Statistical Data - Total(3)(6):
Admissions		399,752				376,399
Recertifications		179,719				178,445
Total volume		579,471				554,844
Medicare completed episodes		295,017				305,455
Average Medicare revenue per completed episode(4)	$	2,998			$	3,013
Medicare visits per completed episode(5)		12.4				12.9
Visiting clinician cost per visit	$	103.31			$	100.03
Clinical manager cost per visit		11.58				11.19
Total cost per visit	$	114.89			$	111.22
Visits		6,972,929				6,958,541

(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 de novos.
(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 reflects the suspension of sequestration for the period May 1, 2020 through March 31, 2022 and the reinstatement of sequestration at 1% effective April 1, 2022 and at 2% effective July 1, 2022.
(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 has been recast to conform to the current year presentation.

Segment Information - Hospice

	For the Three-Month Periods Ended December 31,
		2023				2022
Financial Information (in millions):
Medicare	$	194.2			$	186.3
Non-Medicare		11.8				11.3
Net service revenue		206.0				197.6
Cost of service, inclusive of depreciation		107.8				103.3
Gross margin		98.2				94.3
General and administrative expenses		48.9				51.3
Depreciation and amortization		0.9				0.6
Operating income	$	48.4			$	42.4
Same Store Growth(1):
Medicare revenue		4	%			(4	%)
Hospice admissions		(3	%)			(8	%)
Average daily census		—	%			(2	%)
Key Statistical Data - Total(2):
Hospice admissions		12,226				12,629
Average daily census		12,859				12,878
Revenue per day, net	$	174.10			$	166.82
Cost of service per day	$	91.18			$	87.21
Average discharge length of stay		97				94

	For the Years Ended December 31,
		2023				2022
Financial Information (in millions):
Medicare	$	754.0			$	744.1
Non-Medicare		44.8				43.7
Net service revenue		798.8				787.8
Cost of service, inclusive of depreciation		412.2				426.5
Gross margin		386.6				361.3
General and administrative expenses		193.1				203.3
Depreciation and amortization		3.0				2.3
Operating income	$	190.5			$	155.7
Same Store Growth(1):
Medicare revenue		1	%			(1	%)
Hospice admissions		(5	%)			(1	%)
Average daily census		(1	%)			(1	%)
Key Statistical Data - Total(2):
Hospice admissions		49,587				52,656
Average daily census		12,863				13,091
Revenue per day, net	$	170.14			$	164.88
Cost of service per day	$	87.80			$	89.26
Average discharge length of stay		93				91

(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 de novos.

Segment Information - Personal Care⁽¹⁾

	For the Three-Month Periods Ended December 31,
		2023			2022
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		—			15.9
Net service revenue		—			15.9
Cost of service, inclusive of depreciation		—			12.3
Gross margin		—			3.6
General and administrative expenses		—			2.3
Depreciation and amortization		—			—
Operating income	$	—		$	1.3
Key Statistical Data - Total:
Billable hours		—			453,644
Clients served		—			7,720
Shifts		—			193,220
Revenue per hour	$	—		$	35.07
Revenue per shift	$	—		$	82.34
Hours per shift		—			2.3

	For the Years Ended December 31,
		2023			2022
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		15.0			61.4
Net service revenue		15.0			61.4
Cost of service, inclusive of depreciation		11.1			46.7
Gross margin		3.9			14.7
General and administrative expenses		2.3			9.2
Depreciation and amortization		—			0.1
Operating income	$	1.6		$	5.4
Key Statistical Data - Total:
Billable hours		440,464			1,851,563
Clients served		7,892			10,448
Shifts		191,379			791,596
Revenue per hour	$	33.97		$	33.15
Revenue per shift	$	78.19		$	77.55
Hours per shift		2.3			2.3

(1)    We completed the sale of our personal care business on March 31, 2023.

Segment Information - High Acuity Care

	For the Three-Month Periods Ended December 31,
		2023				2022
Financial Information (in millions)(1):
Medicare	$	—			$	—
Non-Medicare		5.9				3.6
Net service revenue		5.9				3.6
Cost of service, inclusive of depreciation		5.6				4.3
Gross margin		0.3				(0.7	)
General and administrative expenses		5.4				5.0
Depreciation and amortization		0.8				0.9
Operating loss	$	(5.9	)		$	(6.6	)
Key Statistical Data - Total:
Full risk admissions		105				108
Limited risk admissions		600				374
Total admissions		705				482
Full risk revenue per episode	$	10,919			$	12,282
Limited risk revenue per episode	$	6,901			$	5,545
Number of admitting joint ventures		10				8

	For the Years Ended December 31,
		2023				2022
Financial Information (in millions)(1):
Medicare	$	—			$	—
Non-Medicare		19.0				12.3
Net service revenue		19.0				12.3
Cost of service, inclusive of depreciation		21.1				13.3
Gross margin		(2.1	)			(1.0	)
General and administrative expenses		20.4				19.7
Depreciation and amortization		3.1				3.3
Investment impairment		—				3.0
Operating loss	$	(25.6	)		$	(27.0	)
Key Statistical Data - Total:
Full risk admissions		648				448
Limited risk admissions		1,804				1,142
Total admissions		2,452				1,590
Full risk revenue per episode	$	10,565			$	11,273
Limited risk revenue per episode	$	6,187			$	5,553
Number of admitting joint ventures		10				8

(1)    Prior year has been recast to conform to the current year presentation.

Segment Information - Corporate

	For the Three-Month Periods Ended December 31,
		2023			2022
Financial Information (in millions)(1):
General and administrative expenses	$	64.1		$	44.7
Depreciation and amortization		0.6			3.0
Total operating expenses	$	64.7		$	47.7

	For the Years Ended December 31,
		2023			2022
Financial Information (in millions)(1):
General and administrative expenses	$	237.5		$	170.8
Depreciation and amortization		5.6			15.2
Total operating expenses	$	243.1		$	186.0

(1)    Prior year has been recast to conform to the current year presentation.

  

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,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc.	$	19,322		$	31,717		$	(9,747	)		$	118,609
Add:
Income tax expense		10,178			9,790			50,559				42,545
Interest expense, net		7,416			5,711			28,004				22,050
Depreciation and amortization		5,891			5,230			23,847				24,935
Certain items(1)		13,846			7,441			154,344				58,361
Interest component of certain items(1)		—			—			—				(4,445	)
Adjusted EBITDA(2)(6)	$	56,653		$	59,889		$	247,007			$	262,055

Adjusted Net Service Revenue Reconciliation:

	For the Three-Month Periods Ended December 31,						For the Years Ended December 31,
		2023			2022			2023			2022
Net service revenue	$	570,788		$	562,064		$	2,236,382		$	2,223,199
Add:
Certain items(1)		—			—			—			9,305
Adjusted net service revenue(3)(6)	$	570,788		$	562,064		$	2,236,382		$	2,232,504

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

	For the Three-Month Periods Ended December 31,						For the Years Ended December 31,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc.	$	19,322		$	31,717		$	(9,747	)		$	118,609
Add:
Certain items(1)		11,500			6,251			150,384				44,838
Adjusted net income attributable to Amedisys, Inc.(4)(6)	$	30,822		$	37,968		$	140,637			$	163,447

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,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share	$	0.59		$	0.97		$	(0.30	)		$	3.63
Add:
Certain items(1)		0.35			0.19			4.60				1.37
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6)	$	0.94		$	1.16		$	4.30			$	5.01

(1) The following details the certain items for the three-month periods and years ended December 31, 2023 and 2022:

Certain Items:

	For the Three-Month Period Ended December 31, 2023				For the Year Ended December 31, 2023
	(Income) Expense				(Income) Expense
Certain Items Impacting Cost of Service, Inclusive of Depreciation:
Clinical optimization and reorganization costs		199				595
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		180				3,286
CEO transition		661				5,940
Merger-related expenses		11,521				36,672
Clinical optimization and reorganization costs		1,819				6,022
Personal care divestiture		—				525
Certain Items Impacting Total Other Income (Expense):
Other (income) expense, net*		(534	)			101,304
Total	$	13,846			$	154,344
Net of tax	$	11,500			$	150,384
Diluted EPS	$	0.35			$	4.60

*Includes $106,000 merger termination fee for the year ended December 31, 2023

	For the Three-Month Period Ended December 31, 2022			For the Year Ended December 31, 2022
	(Income) Expense			(Income) Expense
Certain Items Impacting Net Service Revenue:
Contingency accrual	$	—		$	9,305
Certain Items Impacting Cost of Service:
COVID-19 costs		1,510			8,747
Clinical optimization and reorganization costs		33			1,382
Fuel supplement		261			3,576
Integration costs		—			1,712
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		1,443			11,298
COVID-19 costs		107			503
CEO transition		—			3,500
Severance		993			993
Legal fees - non-routine		—			241
Clinical optimization and reorganization costs		2,247			5,792
Legal settlement		—			(1,058	)
Fuel supplement		33			251
Investment impairment		—			3,009
Certain Items Impacting Total Other Income (Expense):
Interest component of certain items		—			4,445
Other expense, net		814			4,665
Total	$	7,441		$	58,361
Net of tax	$	6,251		$	44,838
Diluted EPS	$	0.19		$	1.37

(2) Adjusted EBITDA is defined as net income (loss) 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 net income attributable to Amedisys, Inc. is defined as net income (loss) 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 (loss) 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.