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.