OREANDA-NEWS. Amedisys, Inc. , a leading home health and hospice company, today reported its financial results for the three and six-month periods ended June 30, 2016.

Three-Month Periods Ended June 30, 2016 and 2015 

  • Net service revenue increased $46.6 million to $360.7 million compared to $314.1 million in 2015.
  • Net income attributable to Amedisys, Inc. of $10.7 million compared to $10.6 million in 2015.
  • Net income attributable to Amedisys, Inc. per diluted share remained at $0.32 per diluted share when compared to 2015.

Adjusted Results* 

  • Adjusted net service revenue of $361.7 million compared to $314.1 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. of $14.1 million compared to $14.5 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.42 compared to $0.43 in 2015.
  • Adjusted EBITDA (defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization excluding certain items) of $29.8 million compared to $31.7 million in 2015.

Six-Month Periods Ended June 30, 2016 and 2015 

  • Net service revenue increased $93.8 million to $709.5 million compared to $615.7 million in 2015.
  • Net income attributable to Amedisys, Inc. of $16.9 million compared to $24.4 million net loss in 2015.
  • Net income attributable to Amedisys, Inc. per diluted share increased $1.24 to $0.50 compared to $0.74 net loss per diluted share in 2015.

Adjusted Results* 

  • Adjusted net service revenue of $710.5 million compared to $615.7 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. of $25.0 million compared to $24.3 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.74 compared to $0.73 in 2015.
  • Adjusted EBITDA of $53.8 million compared to $58.0 million in 2015.

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

Executive Retirement

On August 2, 2016, Ronald A. LaBorde, the Vice Chairman and Chief Financial Officer of the Company, announced his intention to retire from the Company and the Board of Directors as of January 2, 2017.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of the strong results our team delivered in the second quarter, even as we incurred deeper than anticipated software implementation disruption costs. We delivered strong growth across the board in all segments, drove improving clinical quality metrics and saw reduced employee turnover. We are continuing to progress successfully through our technology transformation and remain confident in our ability to deliver on the efficiencies that we have promised to our shareholders.”

Kusserow continued, “Lastly, while five months away, I would like to thank Ronnie LaBorde for his contribution to Amedisys which been invaluable, particularly during the turnaround in 2014. I appreciate his contribution as a trusted colleague and friend. He will leave the company in a strong and stable position with a great future trajectory. You couldn’t ask for a better legacy.”

Earnings Call and Webcast Information

To participate on the conference call, please call a few minutes 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 September 3, 2016 by dialing (877) 660-6853 (Toll- Free) or (201) 612-7415 (Toll) and entering conference ID #13641920.

Amedisys, Inc. (the “Company”) is headquartered in Baton Rouge, Louisiana and our common stock trades on the NASDAQ Global Select Market under the symbol “AMED”.

Balance Sheet Information            
             
    June 30, 2016      December 31, 2015  
    (Unaudited)        
ASSETS            
Current assets:            
Cash and cash equivalents $   9,968   $   27,502  
Patient accounts receivable, net of allowance for doubtful accounts of $15,950 and $16,526   152,213      125,010  
Prepaid expenses   7,931     8,110  
Other current assets     9,407       14,641  
Total current assets   179,519     175,263  
Property and equipment, net of accumulated depreciation of $139,433 and $141,793   44,617     42,695  
Goodwill   280,349     261,663  
Intangible assets, net of accumulated amortization of $26,525 and $25,386   47,728     44,047  
Deferred income taxes   121,014     125,245  
Other assets, net     37,875       32,802  
Total assets $    711,102   $   681,715  
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $   35,070   $   25,682  
Payroll and employee benefits   86,075     72,546  
Accrued expenses   63,641     71,965  
Current portion of long-term obligations   5,000     5,000  
Total current liabilities   189,786     175,193  
Long-term obligations, less current portion   89,500     91,630  
Other long-term obligations   3,991     4,456  
Total liabilities   283,277     271,279  
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; 35,136,248 and 34,786,966 shares issued; and 33,499,944 and 33,607,282 shares outstanding   35     35  
Additional paid-in capital   523,583     504,290  
Treasury stock at cost, 1,636,304 and 1,179,684 shares of common stock   (45,829 )   (26,966 )
Accumulated other comprehensive income   15     15  
Retained earnings     (50,897 )     (67,806 )
Total Amedisys, Inc. stockholders’ equity   426,907     409,568  
Noncontrolling interests     918     868  
Total equity   427,825     410,436  
Total liabilities and equity $    711,102   $   681,715  
             
Statement of Operations Information (Unaudited)  
                         
    For the Three-Month Periods Ended June 30,     For the Six-Month Periods Ended June 30,  
    2016     2015     2016     2015  
Net service revenue $    360,746   $    314,152   $ 709,563   $ 615,724  
Cost of service, excluding depreciation and amortization   206,505     175,699     408,342     346,660  
General and administrative expenses:        
Salaries and benefits   77,343     71,249     154,060     139,804  
Non-cash compensation   3,736     2,193     7,806     4,577  
Other   45,576     42,113     92,293     75,183  
Provision for doubtful accounts   4,253     2,756     8,193     5,732  
Depreciation and amortization   4,975     4,615     9,448     11,152  
Asset impairment charge   —     —     —     75,193  
Operating expenses     342,388       298,625        680,142        658,301  
Operating income (loss)   18,358     15,527     29,421     (42,577 )
Other (expense) income:        
Interest income   9     4     31     26  
Interest expense   (1,303 )   (2,416 )   (2,415 )   (4,842 )
Equity in earnings from equity method investments   363     4,826     358     6,777  
Miscellaneous, net     658       498       1,393       2,632  
Total other (expense) income, net   (273 )   2,912     (633 )   4,593  
Income (loss) before income taxes   18,085     18,439     28,788     (37,984 )
Income tax (expense) benefit   (7,242 )   (7,566 )   (11,630 )   14,025  
Net income (loss)   10,843     10,873     17,158     (23,959 )
Net income attributable to noncontrolling interests   (147 )   (236 )   (249 )   (413 )
Net income (loss) attributable to Amedisys, Inc. $   10,696   $   10,637   $    16,909   $  (24,372 )
Basic earnings per common share:        
Net income (loss) attributable to Amedisys, Inc. common stockholders    $ 0.32   $   0.32   $   0.51   $   (0.74 )
Weighted average shares outstanding       33,197     33,004     33,059     32,871  
Diluted earnings per common share:        
Net income (loss) attributable to Amedisys, Inc. common stockholders   $   0.32   $   0.32   $   0.50   $   (0.74 )
Weighted average shares outstanding     33,708     33,459     33,641     32,871  
           
Cash Flow and Days Revenue Outstanding, Net Information  
                         
    For the Three-Month Periods Ended June 30,     For the Six-Month Periods Ended June 30,  
    2016     2015     2016     2015  
Net cash provided by operating activities $ 14,651   $ 42,554   $ 26,895   $ 57,037  
Net cash used in investing activities   (3,597 )   (9,754 )   (37,751 )   (11,822 )
Net cash used in financing activities   (8,910 )   (2,731 )   (6,678 )   (20,046 )
Net increase (decrease) in cash and cash equivalents   2,144     30,069     (17,534 )   25,169  
Cash and cash equivalents at beginning of period   7,824     3,132     27,502     8,032  
Cash and cash equivalents at end of period $   9,968   $   33,201   $   9,968   $    33,201  
Days revenue outstanding, net (1)   37.2     31.0     37.2     31.0  
                         

(1) Our calculation of days revenue outstanding, net at June 30, 2016 and 2015 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three-month period ended June 30, 2016 and 2015, respectively.