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Amedisys Reports First Quarter 2024 Financial Results

Bay Street

BATON ROUGE, La., April 24, 2024 (GLOBE NEWSWIRE) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2024.

Three-Month Periods Ended March 31, 2024 and 2023

Adjusted Quarterly Results*

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

The supplemental slides provided in connection with the first quarter 2024 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 first quarter 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 attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (3) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income 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 18,700 employees in 520 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,” “will,” “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 merger; 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
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands, except per share data)
(Unaudited)
 
  For the Three-Month 
Periods Ended March 31,
    2024       2023  
Net service revenue $ 571,414     $ 556,389  
Operating expenses:      
Cost of service, inclusive of depreciation   321,537       315,010  
General and administrative expenses:      
Salaries and benefits   127,946       126,339  
Non-cash compensation   7,433       3,273  
Merger-related expenses   20,667       720  
Depreciation and amortization   4,271       4,443  
Other   57,941       64,225  
Total operating expenses   539,795       514,010  
Operating income   31,619       42,379  
Other income (expense):      
Interest income   1,727       406  
Interest expense   (8,119 )     (7,517 )
Equity in earnings from equity method investments   910       123  
Miscellaneous, net   1,090       (682 )
Total other expense, net   (4,392 )     (7,670 )
Income before income taxes   27,227       34,709  
Income tax expense   (12,633 )     (9,800 )
Net income   14,594       24,909  
Net (income) loss attributable to noncontrolling interests   (194 )     337  
Net income attributable to Amedisys, Inc. $ 14,400     $ 25,246  
Basic earnings per common share:      
Net income attributable to Amedisys, Inc. common stockholders $ 0.44     $ 0.78  
Weighted average shares outstanding   32,670       32,558  
Diluted earnings per common share:      
Net income attributable to Amedisys, Inc. common stockholders $ 0.44     $ 0.77  
Weighted average shares outstanding   32,979       32,643  
               
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
 
  March 31, 2024
(unaudited)		   December 31,
2023
ASSETS      
Current assets:      
Cash and cash equivalents $ 108,234     $ 126,450  
Restricted cash   12,470       12,413  
Patient accounts receivable   359,359       313,373  
Prepaid expenses   20,332       14,639  
Other current assets   26,053       30,060  
Total current assets   526,448       496,935  
Property and equipment, net of accumulated depreciation of $96,056 and $92,422   42,684       41,845  
Operating lease right of use assets   88,425       88,939  
Goodwill   1,244,679       1,244,679  
Intangible assets, net of accumulated amortization of $15,128 and $14,008   101,778       102,675  
Other assets   85,857       85,097  
Total assets $ 2,089,871     $ 2,060,170  
LIABILITIES AND EQUITY      
Current liabilities:      
Accounts payable $ 36,249     $ 28,237  
Payroll and employee benefits   131,631       136,835  
Accrued expenses   147,464       140,049  
Termination fee paid by UnitedHealth Group   106,000       106,000  
Current portion of long-term obligations   37,232       36,314  
Current portion of operating lease liabilities   26,284       26,286  
Total current liabilities   484,860       473,721  
Long-term obligations, less current portion   356,080       361,862  
Operating lease liabilities, less current portion   62,220       62,751  
Deferred income tax liabilities   43,229       40,635  
Other long-term obligations   828       1,418  
Total liabilities   947,217       940,387  
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; 38,146,546 and 38,131,478 shares issued; 32,676,115 and 32,667,631 shares outstanding   38       38  
Additional paid-in capital   795,063       787,177  
Treasury stock, at cost, 5,470,431 and 5,463,847 shares of common stock   (469,243 )     (468,626 )
Retained earnings   762,325       747,925  
Total Amedisys, Inc. stockholders’ equity   1,088,183       1,066,514  
Noncontrolling interests   54,471       53,269  
Total equity   1,142,654       1,119,783  
Total liabilities and equity $ 2,089,871     $ 2,060,170  
 
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)
(Unaudited)
 
  For the Three-Month
Periods Ended March 31,
    2024       2023  
Cash Flows from Operating Activities:      
Net income $ 14,594     $ 24,909  
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Depreciation and amortization (inclusive of depreciation included in cost of service)   6,138       5,694  
Non-cash compensation   7,886       3,273  
Amortization and impairment of operating lease right of use assets   8,566       8,622  
Loss (gain) on disposal of property and equipment   4       (70 )
Loss on personal care divestiture   —       2,186  
Deferred income taxes   2,594       2,772  
Equity in earnings from equity method investments   (910 )     (123 )
Amortization of deferred debt issuance costs   248       248  
Return on equity method investments   170       1,787  
Changes in operating assets and liabilities, net of impact of acquisitions:      
Patient accounts receivable   (46,806 )     (7,476 )
Other current assets   (1,696 )     (4,128 )
Operating lease right of use assets   (1,042 )     (918 )
Other assets   155       (111 )
Accounts payable   8,652       (3,457 )
Accrued expenses   3,029       741  
Other long-term obligations   (591 )     (28 )
Operating lease liabilities   (7,532 )     (7,960 )
Net cash (used in) provided by operating activities   (6,541 )     25,961  
Cash Flows from Investing Activities:      
Proceeds from the sale of deferred compensation plan assets   21       19  
Purchases of property and equipment   (2,670 )     (1,350 )
Investments in technology assets   (223 )     (210 )
Investment in equity method investee   (196 )     —  
Proceeds from personal care divestiture   —       47,787  
Acquisitions of businesses, net of cash acquired   —       (350 )
Net cash (used in) provided by investing activities   (3,068 )     45,896  
Cash Flows from Financing Activities:      
Proceeds from issuance of stock under employee stock purchase plan   —       816  
Shares withheld to pay taxes on non-cash compensation   (617 )     (1,308 )
Noncontrolling interest contributions   1,764       —  
Noncontrolling interest distributions   (756 )     (285 )
Purchase of noncontrolling interest   —       (800 )
Proceeds from borrowings under revolving line of credit   —       8,000  
Repayments of borrowings under revolving line of credit   —       (8,000 )
Principal payments of long-term obligations   (8,941 )     (55,313 )
Net cash used in financing activities   (8,550 )     (56,890 )
Net (decrease) increase in cash, cash equivalents and restricted cash   (18,159 )     14,967  
Cash, cash equivalents and restricted cash at beginning of period   138,863       54,133  
Cash, cash equivalents and restricted cash at end of period $ 120,704     $ 69,100  
       
  For the Three-Month 
Periods Ended March 31,
    2024       2023  
Supplemental Disclosures of Cash Flow Information:      
Cash paid for interest $ 8,188     $ 6,654  
Cash paid for income taxes, net of refunds received $ 828     $ 352  
Cash paid for operating lease liabilities $ 8,574     $ 8,878  
Cash paid for finance lease liabilities $ 2,236     $ 2,457  
Supplemental Disclosures of Non-Cash Activity:      
Right of use assets obtained in exchange for operating lease liabilities $ 7,173     $ 7,083  
Right of use assets obtained in exchange for finance lease liabilities $ 4,326     $ 20,790  
Reductions to right of use assets resulting from reductions to operating lease liabilities $ 168     $ 141  
Reductions to right of use assets resulting from reductions to finance lease liabilities $ 496     $ 369  
Days revenue outstanding (1)   54.1       46.3  
 
(1) Our calculation of days revenue outstanding at March 31, 2024 and 2023 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended March 31, 2024 and 2023, respectively.
 
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
Segment Information – Home Health
 
  For the Three-Month Periods
Ended March 31,
    2024       2023  
Financial Information (in millions):      
Medicare $ 215.8     $ 215.4  
Non-Medicare   148.2       127.9  
Net service revenue   364.0       343.3  
Cost of service, inclusive of depreciation   210.4       197.0  
Gross margin   153.6       146.3  
General and administrative expenses   91.0       89.1  
Depreciation and amortization   1.8       1.1  
Operating income $ 60.8     $ 56.1  
Same Store Growth(1):      
Medicare revenue   — %     (7 %)
Non-Medicare revenue   16 %     12 %
Total admissions   10 %     8 %
Total volume(2)   8 %     5 %
Key Statistical Data – Total(3):      
Admissions   112,215       101,963  
Recertifications   43,961       43,325  
Total volume   156,176       145,288  
       
Medicare completed episodes   72,998       73,563  
Average Medicare revenue per completed episode(4) $ 2,998     $ 2,974  
Medicare visits per completed episode(5)   11.9       12.4  
       
Visiting clinician cost per visit $ 105.38     $ 100.00  
Clinical manager cost per visit   11.99       10.97  
Total cost per visit $ 117.37     $ 110.97  
Visits   1,792,629       1,775,206  
 
(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, startups and de novos.
(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.
(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.
 

Segment Information – Hospice

  For the Three-Month Periods
Ended March 31,
    2024       2023  
Financial Information (in millions):      
Medicare $ 190.0     $ 182.7  
Non-Medicare   11.0       10.7  
Net service revenue   201.0       193.4  
Cost of service, inclusive of depreciation   105.3       101.4  
Gross margin   95.7       92.0  
General and administrative expenses   48.1       47.9  
Depreciation and amortization   0.7       0.6  
Operating income $ 46.9     $ 43.5  
Same Store Growth(1):      
Medicare revenue   4 %     — %
Hospice admissions   (3 %)     (5 %)
Average daily census   — %     (1 %)
Key Statistical Data – Total(2):      
Hospice admissions   12,657       12,998  
Average daily census   12,767       12,730  
Revenue per day, net $ 173.04     $ 168.83  
Cost of service per day $ 90.64     $ 88.21  
Average discharge length of stay   92       90  
 
(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 March 31,
    2024     2023  
Financial Information (in millions):      
Medicare $ —   $ —  
Non-Medicare   —     15.0  
Net service revenue   —     15.0  
Cost of service, inclusive of depreciation   —     11.1  
Gross margin   —     3.9  
General and administrative expenses   —     2.3  
Depreciation and amortization   —     —  
Operating income $ —   $ 1.6  
Key Statistical Data – Total:      
Billable hours   —     440,464  
Clients served   —     7,892  
Shifts   —     191,379  
Revenue per hour $ —   $ 33.97  
Revenue per shift $ —   $ 78.19  
Hours per shift   —     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 March 31,
    2024       2023  
Financial Information (in millions):      
Medicare $ —     $ —  
Non-Medicare   6.4       4.7  
Net service revenue   6.4       4.7  
Cost of service, inclusive of depreciation   5.8       5.5  
Gross margin   0.6       (0.8 )
General and administrative expenses   5.9       4.4  
Depreciation and amortization   0.9       0.8  
Operating loss $ (6.2 )   $ (6.0 )
Key Statistical Data – Total:      
Full risk admissions   139       158  
Limited risk admissions   622       459  
Total admissions   761       617  
Total admissions growth   23 %     85 %
       
Full risk revenue per episode $ 10,073     $ 11,343  
Limited risk revenue per episode $ 6,780     $ 5,711  
       
Number of admitting joint ventures   9       9  
               

Segment Information – Corporate

  For the Three-Month Periods
Ended March 31,
    2024     2023
Financial Information (in millions):      
General and administrative expenses $ 69.0   $ 50.9
Depreciation and amortization   0.9     1.9
Total operating expenses $ 69.9   $ 52.8
 
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 March 31,
    2024     2023  
Net income attributable to Amedisys, Inc. $ 14,400   $ 25,246  
Add:      
Income tax expense   12,633     9,800  
Interest expense, net   6,392     7,111  
Depreciation and amortization   6,138     5,694  
Certain items(1)   20,296     9,987  
Adjusted EBITDA(2)(5) $ 59,859   $ 57,838  
 

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

  For the Three-Month Periods
Ended March 31,
    2024     2023
Net income attributable to Amedisys, Inc. $ 14,400   $ 25,246
Add:      
Certain items(1)   19,548     7,489
Adjusted net income attributable to Amedisys, Inc.(3)(5) $ 33,948   $ 32,735
 

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

  For the Three-Month Periods
Ended March 31,
    2024     2023
Net income attributable to Amedisys, Inc. common stockholders per diluted share $ 0.44   $ 0.77
Add:      
Certain items(1)   0.59     0.23
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(4)(5) $ 1.03   $ 1.00
 
(1) The following details the certain items for the three-month periods ended March 31, 2024 and 2023:
 

Certain Items (in thousands):

  For the Three-Month Periods
Ended March 31,
    2024       2023  
  (Income) Expense   (Income) Expense
Certain Items Impacting Cost of Service, Inclusive of Depreciation:      
Clinical optimization and reorganization costs $ —     $ 114  
Certain Items Impacting General and Administrative Expenses:      
Acquisition and integration costs   —       1,667  
CEO transition   —       750  
Merger-related expenses   20,667       720  
Clinical optimization and reorganization costs   —       3,170  
Personal care divestiture   —       514  
Certain Items Impacting Total Other Income (Expense):      
Other (income) expense, net   (371 )     3,052  
Total $ 20,296     $ 9,987  
Net of tax $ 19,548     $ 7,489  
Diluted EPS $ 0.59     $ 0.23  
 
(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 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.
(4) 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.
(5)  Adjusted EBITDA, 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.
 


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