Amedisys Reports First Quarter 2021 Financial Results Updates 2021 Guidance

BATON ROUGE, La., April 28, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc.,  (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2021.

Three-Month Periods Ended March 31, 2021 and 2020

  • Net service revenue increased $45.4 million to $537.1 million compared to $491.7 million in 2020.
  • Net income attributable to Amedisys, Inc. of $49.9 million compared to $31.8 million in 2020.
  • Net income attributable to Amedisys, Inc. per diluted share of $1.50 compared to $0.96 in 2020.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $78.6 million compared to $53.3 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. of $51.1 million compared to $34.8 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.54 compared to $1.05 in 2020.

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

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “I am proud of our first quarter results and our continued performance in our four strategic pillars. Home Health has carried its strong momentum exiting 2020 into the first quarter of 2021, and though Hospice continues to see the impact of COVID-19 on average daily census, we are performing ahead of our projections and expect to continue to make good progress throughout 2021. We are also innovating close-to-the-core, growing inorganically, generating a prodigious amount of cash flow and remain in a position of very low leverage. We are excited about the growth opportunity both organically and inorganically this year and beyond and expect to be at the forefront of industry consolidation. Our industry leading quality, innovations mindset and payor orientation have materially differentiated Amedisys and have helped us take incremental steps towards being the leading aging-in-place, chronic care management company. A special thank you to all of our clinical staff and teams whose unwavering dedication to providing best-in-class clinical care has once again translated into strong financial results.”

Updated 2021 Guidance

Revenue, adjusted EBITDA and adjusted diluted earnings per share guidance ranges for 2021 updated to reflect the extension of the suspension of sequestration through December 31, 2021.

  • Net service revenue is anticipated to be in the range of $2.302 billion to $2.342 billion.
  • Adjusted EBITDA is anticipated to be in the range of $342 million to $352 million.
  • Adjusted diluted earnings per share is anticipated to be in the range of $6.85 to $7.07 based on an estimated 33.4 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2021 guidance disclosed in this press release. The home health, hospice and personal 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, 2020, 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, April 29, 2021, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through May 29, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13718528.

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 other operating income, defined as other operating income excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional Information

Amedisys, Inc. (the “Company”) is a leading healthcare at home company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering our patients to manage a chronic disease; or hospice care at the end of life. More than 2,900 hospitals and 78,000 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 514 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 418,000 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, 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, changes in law or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

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

Contact: Investor Contact: Media Contact:
  Amedisys, Inc. Amedisys, Inc.
  Nick Muscato Kendra Kimmons
  Senior Vice President, Finance Vice President, Marketing & Communications
  (855) 259-2046 (225) 299-3720
  IR@amedisys.com kendra.kimmons@amedisys.com



 

 

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

  For the Three-Month
Periods Ended March 31,
 
  2021   2020  
Net service revenue $ 537,144   $ 491,685  
Other operating income   8,701      
Cost of service, excluding depreciation and amortization   297,203     285,737  
General and administrative expenses:    
Salaries and benefits   115,825     101,566  
Non-cash compensation   7,307     5,909  
Other   49,106     49,265  
Depreciation and amortization   7,555     5,338  
Operating expenses   476,996     447,815  
Operating income   68,849     43,870  
Other income (expense):    
Interest income   24     13  
Interest expense   (2,072 )   (3,231 )
Equity in earnings from equity method investments   1,118     477  
Miscellaneous, net   288     263  
Total other expense, net   (642 )   (2,478 )
Income before income taxes   68,207     41,392  
Income tax expense   (17,915 )   (9,346 )
Net income   50,292     32,046  
Net income attributable to noncontrolling interests   (422 )   (244 )
Net income attributable to Amedisys, Inc. $ 49,870   $ 31,802  
Basic earnings per common share:            
Net income attributable to Amedisys, Inc. common stockholders $ 1.52   $ 0.98  
Weighted average shares outstanding   32,780     32,331  
Diluted earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders $ 1.50   $ 0.96  
Weighted average shares outstanding   33,190     33,234  

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

    March 31, 2021
(unaudited)
  December 31,
2020
ASSETS        
Current assets:        
Cash and cash equivalents $ 77,344   $ 81,808  
Restricted cash   1,000     1,549  
Patient accounts receivable   275,632     255,145  
Prepaid expenses   15,449     10,217  
Other current assets   11,025     13,265  
Total current assets   380,450     361,984  
Property and equipment, net of accumulated depreciation of $97,698 and $95,024   21,679     23,719  
Operating lease right of use assets   94,620     93,440  
Goodwill   933,207     932,685  
Intangible assets, net of accumulated amortization of $12,738 and $22,973   69,764     74,183  
Deferred income taxes   40,576     47,987  
Other assets   32,913     33,200  
Total assets $ 1,573,209   $ 1,567,198  
             
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $ 38,865   $ 42,674  
Payroll and employee benefits   150,887     146,929  
Accrued expenses   170,954     166,192  
Provider relief fund advance   55,000     60,000  
Current portion of long-term obligations   10,329     10,496  
Current portion of operating lease liabilities   30,047     30,046  
Total current liabilities   456,082     456,337  
Long-term obligations, less current portion   231,380     204,511  
Operating lease liabilities, less current portion   63,359     61,987  
Other long-term obligations   32,814     33,622  
Total liabilities   783,635     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; 37,538,837 and 37,470,212 shares issued; and 32,567,712 and 32,814,278 shares outstanding   38     38  
Additional paid-in capital   707,006     698,287  
Treasury stock, at cost 4,971,125 and 4,655,934 shares of common stock   (398,752 )   (319,092 )
Retained earnings   479,861     429,991  
Total Amedisys, Inc. stockholders’ equity   788,153     809,224  
Noncontrolling interests   1,421     1,517  
Total equity   789,574     810,741  
Total liabilities and equity $ 1,573,209   $ 1,567,198  
             


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,
 
   2021    2020  
Cash Flows from Operating Activities:            
Net income $ 50,292   $ 32,046  
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization   7,555     5,338  
Non-cash compensation   7,307     5,909  
Amortization and impairment of operating lease right of use assets   9,850     9,058  
Loss on disposal of property and equipment   14     55  
Write-off of other comprehensive income       (15 )
Deferred income taxes   7,411     1,228  
Equity in earnings from equity method investments   (1,118 )   (477 )
Amortization of deferred debt issuance costs/debt discount   216     220  
Return on equity investment   1,500     2,369  
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable   (20,448 )   (25,459 )
Other current assets   (2,874 )   (5,756 )
Other assets   (115 )   417  
Accounts payable   (3,374 )   (2,673 )
Accrued expenses   8,370     (10,336 )
Other long-term obligations   (808 )   3,060  
Operating lease liabilities   (9,014 )   (8,132 )
Operating lease right of use assets   (762 )   (817 )
Net cash provided by operating activities   54,002     6,035  
Cash Flows from Investing Activities:            
Proceeds from sale of deferred compensation plan assets   19     16  
Proceeds from the sale of property and equipment   42     12  
Purchases of property and equipment   (1,618 )   (1,434 )
Acquisitions of businesses, net of cash acquired       (69,349 )
Net cash used in investing activities   (1,557 )   (70,755 )
Cash Flows from Financing Activities:            
Proceeds from issuance of stock upon exercise of stock options   364     1,184  
Proceeds from issuance of stock to employee stock purchase plan   1,048     860  
Shares withheld to pay taxes on non-cash compensation   (6,774 )   (4,050 )
Noncontrolling interest distribution   (518 )   (360 )
Proceeds from borrowings under revolving line of credit   215,200     187,500  
Repayments of borrowings under revolving line of credit   (186,200 )   (37,500 )
Principal payments of long-term obligations   (2,692 )   (1,592 )
Purchase of company stock   (72,886 )    
Provider relief fund advance   (5,000 )    
Net cash (used in) provided by financing activities   (57,458 )   146,042  
Net (decrease) increase in cash, cash equivalents and restricted cash   (5,013 )   81,322  
Cash, cash equivalents and restricted cash at beginning of period   83,357     96,490  
Cash, cash equivalents and restricted cash at end of period $ 78,344   $ 177,812  
             
Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest $ 1,011   $ 1,755  
Cash paid for income taxes, net of refunds received $ 971   $ 5,272  
Cash paid for operating lease liabilities $ 9,776   $ 8,949  
Cash paid for finance lease liabilities $ 503   $ 499  
             
Supplemental Disclosures of Non-Cash Activity:    
Right of use assets obtained in exchange for operating lease liabilities $ 10,548   $ 6,437  
Right of use assets obtained in exchange for finance lease liabilities $ 177   $ 254  
Reductions to right of use assets resulting from reductions to operating lease liabilities $ 279   $ 159  
Days revenue outstanding (1)   43.9     46.6  

(1)    Our calculation of days revenue outstanding, net is derived by dividing our ending patient accounts receivable at March 31, 2021 and 2020 by our average daily net patient service revenue for the three-month periods ended March 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 March 31,
 
   2021    2020  
Financial Information (in millions):            
Medicare $ 221.4   $ 203.9  
Non-Medicare   107.2     99.7  
Net service revenue   328.6     303.6  
Other operating income   5.0      
Cost of service   183.0     179.8  
Gross margin   150.6     123.8  
Other operating expenses   81.1     76.7  
Operating income $ 69.5   $ 47.1  
Same Store Growth (1):            
Medicare revenue   9 %   (4 %)
Non-Medicare revenue   8 %   3 %
Total admissions   5 %   3 %
Total volume (2)   6 %   1 %
Key Statistical Data—Total (3):    
Admissions   89,830     85,975  
Recertifications (6)   43,808     39,867  
Total volume (6)   133,638     125,842  
Medicare completed episodes   75,332     75,636  
Average Medicare revenue per completed episode (4) $ 2,931   $ 2,734  
Medicare visits per completed episode (5)   13.9     15.8  
Visiting Clinician Cost per Visit $ 90.32   $ 84.01  
Clinical Manager Cost per Visit $ 9.50   $ 8.97  
Total Cost per Visit $ 99.82   $ 92.98  
Visits   1,832,912     1,933,445  

(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 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 March 31,
 
  2021   2020  
Financial Information (in millions):            
Medicare $ 181.5   $ 160.5  
Non-Medicare   10.0     8.9  
Net service revenue   191.5     169.4  
Other operating income   3.7      
Cost of service   101.6     91.8  
Gross margin   93.6     77.6  
Other operating expenses   47.1     39.3  
Operating income $ 46.5   $ 38.3  
Same Store Growth (1):            
Medicare revenue   (2 %)   5 %
Hospice admissions   5 %   1 %
Average daily census   (4 %)   4 %
Key Statistical Data - Total (2):    
Hospice admissions   13,683     11,318  
Average daily census   13,321     12,046  
Revenue per day, net $ 159.76   $ 154.55  
Cost of service per day $ 84.80   $ 83.78  
Average discharge length of stay   94     98  

(1)    Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. 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, start-ups and denovos.

Segment Information - Personal Care

  For the Three-Month Periods
Ended March 31,
   2021    2020
Financial Information (in millions):          
Medicare $   $
Non-Medicare   17.0     18.7
Net service revenue   17.0     18.7
Other operating income      
Cost of service   12.6     14.1
Gross margin   4.4     4.6
Other operating expenses   3.1     3.4
Operating income $ 1.3   $ 1.2
Key Statistical Data - Total (1):          
Billable hours   607,437     752,077
Clients served   9,759     11,770
Shifts   257,609     333,464
Revenue per hour $ 27.95   $ 24.87
Revenue per shift $ 65.92   $ 56.09
Hours per shift   2.4     2.3

(1)    Total includes acquisitions, start-ups and denovos.

Segment Information - Corporate

   
For the Three-Month Periods
Ended March 31,
    2021   2020
Financial Information (in millions):      
Other operating expenses $ 42.6 $ 39.0
Depreciation and amortization   5.9   3.7
Total operating expenses $ 48.5 $ 42.7
     

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 March 31,
 
    2021     2020  
Net income attributable to Amedisys, Inc. $ 49,870   $ 31,802  
Add:            
Income tax expense   17,915     9,346  
Interest expense, net   2,048     3,218  
Depreciation and amortization   7,555     5,338  
Certain items (1)   1,712     4,036  
Interest component of certain items (1)   (517 )   (446 )
Adjusted EBITDA (2) (6) $ 78,583   $ 53,294  
             

Adjusted Other Operating Income Reconciliation:

    For the Three-Month Periods
Ended March 31,
    2021     2020
Other operating income $ 8,701   $
Add:        
Certain items (1)   (8,701 )  
Adjusted other operating income (3) (6) $   $
           

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

    For the Three-Month Periods
Ended March 31, 
    2021     2020
Net income attributable to Amedisys, Inc. $ 49,870   $ 31,802
Add:          
Certain items (1)   1,267     2,987
Adjusted net income attributable to Amedisys, Inc. (4) (6) $ 51,137   $ 34,789
           

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

    For the Three-Month Periods
Ended March 31,
    2021   2020
Net income attributable to Amedisys, Inc. common stockholders per diluted share $ 1.50 $ 0.96
Add:      
Certain items (1)   0.04   0.09
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6) $ 1.54 $ 1.05
         

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

Certain Items:

  For the Three-Month Periods
Ended March 31,
    2021   2020
    (Income) Expense   (Income) Expense
Certain Items Impacting Other Operating Income:        
CARES Act & State COVID-19 grants $ (8,701 ) $
Certain Items Impacting Cost of Service:    
COVID-19 costs   8,480     1,017
Certain Items Impacting Operating Expenses:    
Acquisition and integration costs   1,199     2,336
COVID-19 costs   217     12
Certain Items Impacting Total Other Income (Expense):    
Interest component of certain items   517     446
Other (income) expense, net       225
Total $ 1,712   $ 4,036
Net of tax   1,267     2,987
Diluted EPS $ 0.04   $ 0.09
         

(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 other operating income is defined as other operating income excluding certain items as described in footnote 1.
(4)    Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(5)    Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(6)    Adjusted EBITDA, adjusted 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.

 


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