BATON ROUGE, La., Nov. 1 /PRNewswire-FirstCall/ -- Amedisys, Inc. (“the Company”), one of America’s leading home health nursing companies, today reported its financial results for the third quarter of 2005.
For the quarter ended September 30, 2005, the Company reported net income of $7.8 million, or $0.48 per diluted share, on record net service revenue of $112.2 million. Net service revenue increased by 92 percent when compared with the $58.5 million reported for the comparable period in the prior year. Amedisys reported net income of $5.2 million, or $0.39 per diluted share for the quarter ended September 30, 2004. The diluted weighted average number of shares outstanding approximated 16.1 million in the quarter ended September 30, 2005 and 13.1 million in the comparable period of 2004.
For the nine months ended September 30, 2005, the Company reported net income of $22.8 million, or $1.44 per diluted share, on net service revenue of $262.7 million. For the same period the previous year, Amedisys reported net income of $14.4 million, or $1.12 per diluted share, on net service revenue of $162.7 million. The diluted weighted average number of shares outstanding approximated 15.9 million in the nine months ended September 30, 2005 and 12.8 million in the comparable period of 2004.
The financial results include a full quarter from the acquisition of Housecall Medical Resources, effective July 1, and two months of results from the acquisitions of Spectracare and Ncare, which were effective August 1.
The financial results for both the quarter and nine months ended September 30, 2005 were impacted by several items, including a write-off of deferred loan costs relating to the termination of a prior financing arrangement ($0.02 per diluted share), amortization of severance arrangements following the recently completed Housecall transaction ($0.02 per diluted share) and the impact of Hurricane Katrina on the Company’s operations in the Gulf Coast region (estimated at approximately $0.02 to $0.03 per diluted share). However, the Company resolved certain open Medicare cost reports, which had the effect of increasing reported earnings by approximately $0.02 per diluted share.
“Our significant year-over-year increase in net income of 50 percent for the third quarter is all the more gratifying given the extraordinary events of this quarter -- Hurricanes Katrina and Rita occurred while Amedisys was integrating our recent significant acquisitions, particularly Housecall. Given that we achieved the above financial results without yet seeing significant synergies from the Housecall acquisition, we remain confident that, based on currently available information, our earnings for fiscal 2005 will fall in the range of $1.95 and $2.01 per diluted share.
“Internal growth of Medicare patient admissions was approximately 18 percent in the third quarter, when compared with the previous year, which continues the strong rate of growth seen by the Company throughout 2005,” continued Borne. “The initiation of start-ups continues to accelerate, from seven new locations in 2003, thirteen in 2004, approximately twenty-five expected in 2005, and a significantly higher number expected in 2006.”
“Amedisys has a strong Balance Sheet, and we have continued to pay down the Revolving Line of Credit since the quarter end, with a current balance outstanding of $5 million, and cash on hand of approximately $25 million. With this in mind, based on currently available information, we are reaffirming previous earnings guidance for full-year 2006 of between $2.52 and $2.64 per diluted share, including stock option expense, as required by the change in accounting standards.”
The Company will provide further information today on these results during a teleconference call that is scheduled for 10:00 a.m. ET. To access this call, please dial 1-877-691-0877 (domestic) or 1-973-582-2767 (international). A replay of the conference call will be available until November 8th, 2005, by dialing 1-877-519-4471 (domestic) or 1-973-341-3080 (international). The replay pin number is 6610315.
Amedisys, Inc., a leading provider of home health nursing services, is headquartered in Baton Rouge, Louisiana. Its common stock trades on The Nasdaq Stock Market under the symbol “AMED”.
This press release includes statements that may constitute “forward- looking” statements, usually containing the words “believe”, “estimate”, “project”, “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s services in the marketplace, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, and other risks discussed in the Company’s periodic filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Additional information on the Company can be found on the World Wide Web http://www.amedisys.com
Contact: Amedisys, Inc. Gregory H. Browne Chief Financial Officer (225) 292-2031 gbrowne@amedisys.com Noonan Russo Investor Relations Brian Ritchie (212) 845-4269 brian.ritchie@eurorscg.com AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the three and nine months ended September 30, 2005 and 2004 (Amounts in thousands, except per share data) (Unaudited) For the three months ended For the nine months ended September 30, September 30, 2005 2004 2005 2004 Income: Net service revenue $112,166 $58,494 $262,664 $162,729 Cost of service revenue (excluding depreciation and amortization) 49,011 25,653 110,516 68,746 Gross margin 63,155 32,841 152,148 93,983 General and administrative expenses: Salaries and benefits 27,798 14,217 64,661 41,568 Other 21,395 10,184 49,292 28,987 Total general and administrative expenses 49,193 24,401 113,953 70,555 Operating income 13,962 8,440 38,195 23,428 Other income (expense): Interest income 240 84 1,140 180 Interest expense (1,470) (142) (1,757) (366) Miscellaneous, net 74 (21) 46 (28) Total other expense, net (1,156) (79) (571) (214) Income before income taxes 12,806 8,361 37,624 23,214 Income tax expense 5,045 3,175 14,824 8,846 Net income $7,761 $5,186 $22,800 $14,368 Basic weighted average common shares outstanding 15,692 12,669 15,531 12,319 Basic income per common share: Net income $0.49 $0.41 $1.47 $1.17 Diluted weighted average common shares outstanding 16,061 13,136 15,885 12,833 Diluted income per common share: Net income $0.48 $0.39 $1.44 $1.12 AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of September 30, 2005 and December 31, 2004 (Amounts in thousands, except share data) September 30, 2005 December 31, 2004 ASSETS: (unaudited) CURRENT ASSETS: Cash and cash equivalents $20,750 $89,679 Patient accounts receivable, net of allowance for doubtful accounts of $11,998 at September 30, 2005 and $3,751 at December 31, 2004 58,484 24,478 Prepaid expenses 2,570 1,356 Deferred Income Taxes 3,671 - Inventory and other current assets 5,827 3,377 Total current assets 91,302 118,890 Property and equipment, net 24,315 10,003 Goodwill 194,502 62,537 Intangible assets, net of $2,757 and $1,177 of accumulated amortization at September 30, 2005 and December 31, 2004, respectively 13,981 4,447 Other assets, net 5,778 3,856 Total assets $329,878 $199,733 LIABILITIES AND STOCKHOLDERS’ EQUITY: CURRENT LIABILITIES: Accounts payable $10,170 $6,681 Accrued expenses: Payroll and payroll taxes 28,930 11,914 Insurance 9,539 4,663 Income taxes 4,957 271 Legal settlements 1,739 1,833 Other 11,717 3,822 Current portion of deferred income taxes - 1,353 Current portion of long-term debt 9,301 1,689 Current portion of obligations under capital leases 223 423 Current portion of Medicare liabilities 10,856 9,327 Total current liabilities 87,432 41,976 Long-term debt 55,072 1,380 Obligations under capital leases 136 329 Deferred income taxes 5,010 6,749 Other long-term liabilities 826 826 Total liabilities 148,476 51,260 STOCKHOLDERS’ EQUITY: Preferred stock, $.001 par value, 5,000,000 shares authorized; None issued and outstanding - - Common stock , $.001 par value, 30,000,000 shares authorized; 15,787,752 and 15,310,547 shares issued at September 30, 2005 and December 31, 2004, respectively 16 15 Additional paid-in capital 142,917 132,032 Unearned Compensation (755) - Treasury stock at cost, 4,167 shares held at September 30, 2005 and December 31, 2004 (25) (25) Retained earnings (deficit) 39,249 16,451 Total stockholders’ equity 181,402 148,473 Total liabilities and stockholders’ equity $329,878 $199,733
Amedisys, Inc.
CONTACT: Gregory H. Browne, Chief Financial Officer of Amedisys, Inc.,+1-225-292-2031, gbrowne@amedisys.com; or Investor Relations, Brian Ritchieof Noonan Russo for Amedisys, Inc., +1-212-845-4269,brian.ritchie@eurorscg.com
Web site: http://www.amedisys.com/