EX-99.1 2 d691256dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Contact:   

Investor Contact:

Amedisys, Inc.

David Castille

Director, Treasury/Finance

(225) 299-3391

david.castille@amedisys.com

  

Media Contact:

Amedisys, Inc.

Kendra Kimmons

Managing Director, Marketing & Communications

(225) 299-3720

kendra.kimmons@amedisys.com

AMEDISYS REPORTS FOURTH QUARTER FINANCIAL RESULTS

AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (March 12, 2014) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the fourth quarter and year ended December 31, 2013.

Three-Month Periods Ended December 31, 2013 and 2012

 

    After adding back for the 2013 period, $9.6 million ($5.9 million, net of income tax) or $0.19 per diluted share for certain items* and after adding back for the 2012 period $151.0 million ($112.5 million, net of income tax) or $3.71 per diluted share for the goodwill and other intangibles impairment charge and certain other items*, our adjusted results from continuing operations were as follows:

 

    Net service revenue of $303.5 million compared to $351.6 million in 2012, a decrease of $48.1 million or 13.7%.

 

    Net loss from continuing operations attributable to Amedisys, Inc. of $2.2 million compared to net income from continuing operations of $6.3 million in 2012, a decrease of 135.5%. (Net loss from continuing operations attributable to Amedisys, Inc. of $8.2 million compared to $106.2 million in 2012 on a GAAP basis.)

 

    Net loss from continuing operations attributable to Amedisys, Inc. per diluted share of $0.07 compared to net income from continuing operations attributable to Amedisys, Inc. of $0.21 per diluted share in 2012, a decrease of 133.3%. (Net loss from continuing operations attributable to Amedisys, Inc. per diluted share $0.26 compared to $3.50 per diluted share in 2012 on a GAAP basis.)

 

    Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $6.8 million compared to $21.6 million in 2012, a decrease of 68.7%.

Twelve-Month Periods Ended December 31, 2013 and 2012

 

    After adding back for the 2013 period $158.2 million ($98.3 million, net of income tax) or $3.14 per diluted share for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items* and after adding back for the 2012 period $148.6 million ($110.1 million, net of income tax) or $3.67 per diluted share for the goodwill and other intangibles impairment charge and certain other items*, our adjusted results from continuing operations were as follows:

 

    Net service revenue of $1,249.3 million compared to $1,440.8 million in 2012, a decrease of $191.5 million or 13.3%.

 

    Net income from continuing operations attributable to Amedisys, Inc., of $5.2 million compared to $29.8 million in 2012, a decrease of 82.5%. (Net loss from continuing operations attributable to Amedisys, Inc. of $93.1 million compared to $80.3 million in 2012 on a GAAP basis.)

 

    Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.16 compared to $0.99 per diluted share in 2012, a decrease of 83.8%. (Net loss from continuing operations attributable to Amedisys, Inc. per diluted share $2.98 compared to $2.68 per diluted share in 2012 on a GAAP basis.)

 

    EBITDA of $48.9 million compared to $97.3 million in 2012, a decrease of 49.7%.

Ronald A. LaBorde, Interim Chief Executive Officer stated, “While volumes were flat sequentially, our results for the quarter were below the guidance previously shared by the Company. An unexpected increase in employee healthcare costs contributed to the lower results.”

 

* See pages 10 & 11 for explanation of these certain items and the reconciliations of non-GAAP financial measures.


We urge caution in considering the current trends disclosed in this press release. The home health and hospice industry is 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, 2013, and 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. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Wednesday, March 12, 2014, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #40243209. A replay of the conference call will be available through March 19, 2014. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #40243209.

The call will also be available through our website and for seven days thereafter at the following web address: http://investors.amedisys.com.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst 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. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. 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,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “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: 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, our ability to divest care centers currently held for sale, 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, competition in the home health 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 attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, our ability to agree on the terms of a settlement to resolve both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter or fund required settlement payments in the manner currently contemplated and changes in law or developments with respect to any litigation or investigations relating the Company, including the SEC investigation, the OIG Self-Disclosure issues and 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.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*, adjusted net (loss) income from continuing operations attributable to Amedisys, Inc., defined as net loss from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of

 

2


Justice settlement, proceeds from our D&O insurance and certain other items*, and adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net loss from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

 

3


AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except share, per share data and statistical information)

(Unaudited)

Balance Sheet Information

 

     As of December 31,  
     2013     2012  

ASSETS

  

Current assets:     

Cash and cash equivalents

   $ 17,303     $ 14,545  

Patient accounts receivable, net of allowance for doubtful accounts of $14,231 and $20,994

     111,133       169,172  

Prepaid expenses

     10,669       10,631  

Deferred income taxes

     55,329       —    

Other current assets

     10,785       11,440  

Assets held for sale

     60       —    
     

 

 

   

 

 

 

Total current assets

     205,279       205,788  

Property and equipment, net of accumulated depreciation of $129,891, and $113,154

     159,025       156,709  

Goodwill

     208,915       209,594  

Intangible assets, net of accumulated amortization of $25,133 and $23,457

     36,690       47,050  

Deferred income taxes

     90,214       92,804  

Other assets, net

     26,283       18,650  
     

 

 

   

 

 

 

Total assets

   $ 726,406     $ 730,595  
     

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 20,139     $ 29,175  

Accrued charge related to U.S. Department of Justice settlement

     150,000       —    

Payroll and employee benefits

     70,801       79,341  

Accrued expenses

     57,572       54,855  

Current portion of long-term obligations

     13,904       35,807  

Current portion of deferred income taxes

     —         5,609  
     

 

 

   

 

 

 

Total current liabilities

     312,416       204,787  

Long-term obligations, less current portion

     33,000       66,904  

Other long-term obligations

     8,511       4,671  
     

 

 

   

 

 

 

Total liabilities

     353,927       276,362  
     

 

 

   

 

 

 

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; 33,413,970 and 31,876,508 shares issued; and 32,538,971 and 31,086,619 shares outstanding

     33       32  

Additional paid-in capital

     467,890       450,792  

Treasury stock at cost, 874,999 and 789,889 shares of common stock

     (18,176     (17,116

Accumulated other comprehensive income

     15       15  

Retained earnings

     (77,561     18,617  
     

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     372,201       452,340  

Noncontrolling interests

     278       1,893  
     

 

 

   

 

 

 

Total equity

     372,479       454,233  
     

 

 

   

 

 

 

Total liabilities and equity

   $ 726,406     $ 730,595  
     

 

 

   

 

 

 

 

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Statement of Operations Information

 

     For the Three-Month Periods Ended
December 31,
    For the Years Ended December 31,  
     2013     2012     2013     2012  

Net service revenue

   $ 303,497     $ 351,586     $ 1,249,344     $ 1,440,836  

Cost of service, excluding depreciation and amortization

     179,336       198,899       717,996       810,704  

General and administrative expenses:

        

Salaries and benefits

     73,806       81,337       302,564       327,111  

Non-cash compensation

     1,586       1,152       6,519       7,217  

Other

     41,457       46,921        164,991       182,345  

Provision for doubtful accounts

     3,445       5,291       15,882       21,011  

Depreciation and amortization

     8,565       9,845       36,871       39,200  

U.S. Department of Justice settlement

     —         —         150,000       —    

Goodwill and other intangibles impairment charge

     5,664       162,103       9,492       162,103  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     313,859       505,548       1,404,315       1,549,691  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (10,362     (153,962     (154,971     (108,855

Other (expense) income:

        

Interest income

     14       13       54       65  

Interest expense

     (1,934     (6,095     (4,412     (12,116

Equity in earnings from equity investments

     466       604       1,520       1,695  

Miscellaneous, net

     (1,740     3,635       4,334       3,934  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income, net

     (3,194     (1,843     1,496       (6,422
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (13,556     (155,805     (153,475     (115,277

Income tax benefit

     5,038       34,400       58,773       20,020  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations

     (8,518     (121,405     (94,702     (95,257

Discontinued operations, net of tax

     (1,459     (602     (3,073     (3,326
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (9,977     (122,007     (97,775     (98,583

Net loss attributable to noncontrolling interests

     349       15,195       1,597       14,995  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to Amedisys, Inc.

   $ (9,628   $ (106,812   $ (96,178   $ (83,588
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted earnings per common share:

        

Loss from continuing operations attributable to Amedisys, Inc. common stockholders

   $ (0.26   $ (3.50   $ (2.98   $ (2.68

Discontinued operations, net of tax

     (0.04     (0.02     (0.10     (0.11
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss attributable to Amedisys, Inc. common stockholders

   $ (0.30   $ (3.52   $ (3.08   $ (2.79
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     31,685       30,358       31,247       29,896  
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to Amedisys, Inc. common stockholders:

        

Loss from continuing operations

   $ (8,169   $ (106,210   $ (93,105   $ (80,262

Discontinued operations, net of tax

     (1,459     (602     (3,073     (3,326
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (9,628   $ (106,812   $ (96,178   $ (83,588
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


Cash Flow and Days Revenue Outstanding, Net Information

 

     For the Three-Month Periods Ended
December 31,
    For the Years Ended December 31,  
     2013     2012     2013     2012  

Net cash provided by operating activities

   $ 8,401     $ 15,628     $ 102,263     $ 69,494  

Net cash used in investing activities

     (11,002     (19,744     (46,458     (59,993

Net cash used in financing activities

     (23,722     (20,445     (53,047     (42,960
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (26,323     (24,561     2,758       (33,459

Cash and cash equivalents at beginning of period

     43,626       39,106       14,545       48,004  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 17,303     $ 14,545     $ 17,303     $ 14,545  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net (1)

         32.1       41.5  

 

(1) Our calculation of days revenue outstanding, net at December 31, 2013 and 2012 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 December 31, 2013 and 2012, respectively.

Supplemental Information - Home Health

 

     For the Three-Month Periods Ended     For the Year
Ended December
31, 2013
 
     March 31, 2013     June 30, 2013     September 30,
2013
    December 31.
2013
   

Financial Information (in millions):

          

Medicare

   $ 212.6     $ 204.6     $ 193.5     $ 193.1     $ 803.8  

Non-Medicare

     49.4       45.9       43.3       45.3       183.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     262.0       250.5       236.8       238.4       987.7  

Cost of service

     150.4       143.3       140.8       144.4       578.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     111.6       107.2       96.0       94.0       408.8  

Other operating expenses

     84.8       81.6       79.5       79.4       325.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment (1)

   $ 26.8     $ 25.6     $ 16.5     $ 14.6     $ 83.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Medicare:

          

Same Store Volume (2)

          

Revenue

     (8 )%      (10 )%      (12 )%      (11 )%      (10 )% 

Admissions

     2     0     (1 )%      (1 )%      0

Recertifications

     (17 )%      (18 )%      (21 )%      (16 )%      (18 )% 

Total (3):

          

Admissions

     50,007       47,734       45,420       45,405       188,566  

Recertifications

     28,687       27,493       26,119       25,609       107,908  

Completed Episodes

     75,884       75,461       70,401       69,034       290,780  

Visits

     1,370,884       1,323,138       1,253,329       1,230,625       5,177,976  

Average revenue per completed episode (4)

   $ 2,778     $ 2,831     $ 2,822     $ 2,840     $ 2,817  

Visits per completed episode (5)

     17.5       17.7       17.3       17.5       17.5  

Non-Medicare (3):

          

Admissions

     21,586       18,235       17,832       18,898       76,551  

Recertifications

     8,200       7,532       7,262       7,310       30,304  

Visits

     422,357       380,502       358,819       370,103       1,531,781  

Total (3):

          

Cost per Visit

   $ 83.89     $ 84.09     $ 87.31     $ 90.21     $ 86.27  

Visits

     1,793,241       1,703,640       1,612,148       1,600,728       6,709,757  

 

6


     For the Three-Month Periods Ended     For the Year
Ended December
31, 2012
 
     March 31, 2012     June 30, 2012     September 30,
2012
    December 31,
2012
   

Financial Information (in millions):

          

Medicare

   $ 233.1     $ 231.3     $ 226.9     $ 224.0     $ 915.3  

Non-Medicare

     56.8       61.5       62.9       55.6       236.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     289.9       292.8       289.8       279.6       1,152.1  

Cost of service

     164.5       166.6       168.5       161.8       661.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     125.4       126.2       121.3       117.8       490.7  

Other operating expenses

     92.7       89.4       90.0       89.8       361.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment (1)

   $ 32.7     $ 36.8     $ 31.3     $ 28.0     $ 128.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Medicare:

          

Same Store Volume (2)

          

Revenue

     (8 )%      (9 )%      (5 )%      (7 )%      (7 )% 

Admissions

     (2 )%      2     1     1     0

Recertifications

     (5 )%      (7 )%      (6 )%      (12 )%      (8 )% 

Total (3):

          

Admissions

     49,044       48,351       47,347       47,633       192,375  

Recertifications

     34,611       34,204       34,048       31,652       134,515  

Completed Episodes

     79,115       80,320       78,691       79,220       317,346  

Visits

     1,566,514       1,560,587       1,513,255       1,435,814       6,076,170  

Average revenue per completed episode (4)

   $ 2,876     $ 2,883     $ 2,863     $ 2,845     $ 2,867  

Visits per completed episode (5)

     18.7       19.1       18.9       18.4       18.8  

Non-Medicare (3):

          

Admissions

     22,357       23,103       23,416       21,141       90,017  

Recertifications

     9,509       10,493       11,253       10,013       41,268  

Visits

     488,223       525,325       534,242       463,894       2,011,684  

Total (3):

          

Cost per Visit

   $ 80.04     $ 79.88     $ 82.31     $ 85.17     $ 81.78  

Visits

     2,054,737       2,085,912       2,047,497       1,899,708       8,087,854  

 

(1) Operating income of $9.9 million and $75.0 million on a GAAP basis for the quarter and year ended December 31, 2013, respectively. Operating loss of $133.5 million and $32.8 million for the quarter and the year ended December 31, 2012, respectively.
(2) Medicare revenue, admissions or recertifications growth is the percent increase (decrease) in our Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue, admissions or recertifications of the prior period.
(3) Based on continuing operations for all periods presented.
(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care excluding the impact of sequestration.
(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.

 

7


Supplemental Information - Hospice

 

     For the Three-Month Periods Ended     For the Year
Ended December
31, 2013
 
     March 31,
2013
    June 30, 2013     September 30,
2013
    December 31,
2013
   

Financial Information (in millions):

          

Medicare

   $ 62.8       61.6     $ 60.6     $ 61.4     $ 246.4  

Non-Medicare

     3.8       3.8       3.9       3.7       15.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     66.6       65.4       64.5       65.1       261.6  

Cost of service

     35.2       34.5       34.5       34.9       139.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     31.4       30.9       30.0       30.2       122.5  

Other operating expenses

     19.7       18.1       17.8       16.9       72.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment (1)

   $ 11.7       12.8     $ 12.2     $ 13.3     $ 50.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Same store Medicare revenue growth (2)

     (5 )%      (12 )%      (13 )%      (8 )%      (9 )% 

Hospice admits

     4,957       4,655       4,352       4,371       18,335  

Average daily census

     5,071       5,006       4,917       4,866       4,964  

Revenue per day

   $ 145.98       143.61     $ 142.52     $ 145.60     $ 144.43  

Cost of service per day

   $ 77.04       75.34     $ 75.79     $ 77.63     $ 76.45  

Average length of stay

     103       99       98       98       100  
     For the Three-Month Periods Ended     For the Year
Ended December
31, 2012
 
     March 31, 2012     June 30, 2012     September 30,
2012
    December 31,
2012
   

Financial Information (in millions):

          

Medicare

   $ 65.1     $ 69.6     $ 70.2     $ 67.8     $ 272.7  

Non-Medicare

     4.1       3.9       3.9       4.1       16.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     69.2       73.5       74.1       71.9       288.7  

Cost of service

     36.3       37.8       38.1       37.1       149.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     32.9       35.7       36.0       34.8       139.4  

Other operating expenses

     17.6       18.9       20.2       20.5       77.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment (1)

   $ 15.3     $ 16.8     $ 15.8     $ 14.3     $ 62.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Same store Medicare revenue growth (2)

     17     22     13     3     13

Hospice admits

     4,854       4,849       4,667       4,629       18,999  

Average daily census

     5,171       5,478       5,592       5,381       5,406  

Revenue per day

   $ 147.05     $ 147.31     $ 144.10     $ 145.24     $ 145.89  

Cost of service per day

   $ 77.00     $ 75.68     $ 73.97     $ 74.85     $ 75.34  

Average length of stay

     92       95       102       106       99  

 

(1) Operating income of $12.2 million and $49.0 million on a GAAP basis for the quarter and year ended December 31, 2013, respectively. Operating income of $13.8 million and $61.7 million on a GAAP basis for the quarter and year ended December 31, 2012, respectively.
(2) Same store Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the period.

 

8


Supplemental Information – Corporate

 

 
    For the Three-Month Periods Ended     For the Year Ended
December 31, 2013
 
    March 31, 2013     June 30, 2013     September 30, 2013     December 31, 2013    

Financial Information (in millions):

     

Depreciation and amortization

  $ 6.7     $ 6.2     $ 6.0     $ 5.6     $ 24.5  

U.S. Department of Justice settlement

    —         —         150.0       —         150.0  

Other operating expenses

    26.4       25.8       25.4       26.9       104.5  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

  $ (33.1   $ (32.0   $ (181.4   $ (32.5   $ (279.0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    For the Three-Month Periods Ended     For the Year Ended
December 31, 2012
 
    March 31, 2012     June 30, 2012     September 30, 2012     December 31, 2012    

Financial Information (in millions):

         

Depreciation and amortization

  $ 6.2     $ 6.0     $ 5.8     $ 6.5     $ 24.5  

Other operating expenses

    28.1       31.6       25.8       27.8       113.3  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

  $ (34.3   $ (37.6   $ (31.6   $ (34.3   $ (137.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAPP FINANCIAL MEASURES TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands)

(Unaudited)

 

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA    
     For the Three-Month Periods
Ended December 31,
    For the Years
Ended December 31,
 
     2013     2012     2013     2012  

Net loss attributable to Amedisys, Inc.

   $ (9,628   $ (106,812   $ (96,178   $ (83,588

Less:

        

Discontinued operations, net of tax

     (1,459     (602     (3,073     (3,326
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations attributable to Amedisys, Inc.

     (8,169     (106,210     (93,105     (80,262

Add:

        

Provision for income taxes

     (5,038     (34,400     (58,773     (20,020

Interest expense, net

     1,920       6,082       4,358       12,051  

Depreciation and amortization

     8,565       9,845       36,871       39,200  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA (1)

     (2,722     (124,683     (110,649     (49,031

Add:

        

Certain items (2)

     9,626       151,013       158,177       148,609  

Debt fees (2)

     (118     (4,681     (118     (4,681

Tax adjustments (2)

     —         —         1,534       2,404  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (GUIDANCE BASIS) (3)

     6,786       21,649       48,944       97,301  

Add:

        

Legal fees

     862       2,404       5,431       8,494  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (3)

   $ 7,648     $ 24,053     $ 54,375     $ 105,795  
  

 

 

   

 

 

   

 

 

   

 

 

 
Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:   
     For the Three-Month Periods
Ended December 31,
    For the Years
Ended December 31,
 
     2013     2012     2013     2012  

Net loss attributable to Amedisys, Inc.

   $ (9,628   $ (106,812   $ (96,178   $ (83,588

Less:

        

Discontinued Operations, net of tax

     (1,459     (602     (3,073     (3,326
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations attributable to Amedisys, Inc.

     (8,169     (106,210     (93,105     (80,262

Add:

        

Certain items (2)

     5,930       112,511       98,326       110,075  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. (GUIDANCE BASIS) (4)

     (2,239     6,301       5,221       29,813  

Add:

        

Legal fees

     531       1,433       3,345       4,990  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. (4)

   $ (1,708   $ 7,734     $ 8,566     $ 34,803  
  

 

 

   

 

 

   

 

 

   

 

 

 
Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:   
     For the Three-Month Periods
Ended December 31,
    For the Years
Ended December 31,
 
     2013     2012     2013     2012  

Net loss attributable to Amedisys, Inc. common stockholders per diluted share

   $ (0.30   $ (3.52   $ (3.08   $ (2.79

Less:

        

Discontinued operations, net of tax

     (0.04     (0.02     (0.10     (0.11
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share

     (0.26     (3.50     (2.98     (2.68

Add:

        

Certain items (2)

     0.19       3.71       3.14       3.67  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (GUIDANCE BASIS) (5)

     (0.07     0.21       0.16       0.99  

Add:

        

Legal fees

     0.02       0.04       0.11       0.16  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (5)

   $ (0.05   $ 0.25     $ 0.27     $ 1.15  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) EBITDA is defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.
(2) The following details the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items for the three-months and years ended December 31, 2013 and 2012:

 

10


     For the Three-Month Period Ended December 31, 2013     For the Year Ended December 31, 2013  
     (Income)
Expense
    Net     Diluted EPS     (Income)
Expense
    Net     Diluted EPS  

U.S. Department of Justice settlement

   $ —         —         —       $ 150,000       93,878       3.00  

Goodwill and other intangibles impairment charge

     5,664       3,489       0.11       9,492       5,847       0.18  

D&O proceeds

     —         —         —         (5,530     (3,406     (0.11

Exit activity costs

     2,313       1,425       0.05       3,882       2,391       0.08  

Gain on sale of care centers

     —         —         —         (779     (480     (0.01

Debt costs

     966       595       0.02       966       595       0.02  

Tax adjustment

     —         —         —         (1,534     (1,534     (0.05

OIG self-disclosure

     —         —         —         997       614       0.02  

Sale of airplane

     683       421       0.01       683       421       0.01  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 9,626     $ 5,930     $ 0.19     $ 158,177     $ 98,326     $ 3.14  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     For the Three-Month Period Ended December 31, 2012     For the Year Ended December 31, 2012  
     (Income)
Expense
    Net     Diluted EPS     (Income)
Expense
    Net     Diluted EPS  

Goodwill and other intangibles impairment charge

   $ 162,103       125,130       4.12       162,103       125,130       4.17  

Non-controlling interests portion of impairment charges

     (14,874     (14,874     (0.49     (14,874     (14,874     (0.50

Exit activities related to continuing operations

     2,707       1,613       0.05       2,707       1,590       0.05  

Debt Costs

     4,681       2,790       0.09       4,681       2,750       0.09  

Lawsuit settlement

     (3,604     (2,148     (0.06     (3,604     (2,117     (0.06

Tax adjustment

     —         —         —         (2,404     (2,404     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 151,013     $ 112,511     $ 3.71     $ 148,609     $ 110,075     $ 3.67  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(3) Adjusted EBITDA is defined as net loss from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization excluding the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.
(4) Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. is defined as net loss from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.
(5) Adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted loss from continuing operations per share excluding the earnings per share effect of the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. Adjusted net (loss) income from continuing operations 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, cash flow from operating activities, or other traditional indicators or operating performance. This calculation of adjusted net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

 

11