AMED - Amedisys Reports Third Quarter 2023 Financial Results

October, 24 2023 04:30 PM Amedisys Inc

BATON ROUGE, La., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month periods ended September 30, 2023.

Three-Month Periods Ended September 30, 2023 and 2022

Net service revenue decreased $1.8 million to $556.2 million compared to $558.0 million in 2022. Prior year included $16.6 million of net service revenue from our personal care business which was divested on March 31, 2023.
Net income attributable to Amedisys, Inc. of $26.0 million compared to $25.6 million in 2022.
Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.79 in 2022.

Adjusted Quarterly Results*

Adjusted EBITDA of $57.9 million compared to $61.5 million in 2022.
Adjusted net service revenue of $556.2 million compared to $558.9 million in 2022. Prior year included $16.6 million of adjusted net service revenue from our personal care business which was divested on March 31, 2023.
Adjusted net income attributable to Amedisys, Inc. of $32.2 million compared to $37.4 million in 2022.
Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.98 compared to $1.15 in 2022.

Nine-Month Periods Ended September 30, 2023 and 2022

Net service revenue increased $4.5 million to $1,665.6 million compared to $1,661.1 million in 2022. Prior year included $30.5 million of incremental net service revenue from our personal care business which was divested on March 31, 2023.
Net loss attributable to Amedisys, Inc. of $29.1 million, which is inclusive of $131.2 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $86.9 million in 2022.
Net loss attributable to Amedisys, Inc. per diluted share of $0.89 compared to net income attributable to Amedisys, Inc. per diluted share of $2.66 in 2022.

Adjusted Year to Date Results*

Adjusted EBITDA of $190.4 million compared to $202.2 million in 2022.
Adjusted net service revenue of $1,665.6 million compared to $1,670.4 million in 2022. Prior year included $30.5 million of incremental adjusted net service revenue from our personal care business which was divested on March 31, 2023.
Adjusted net income attributable to Amedisys, Inc. of $109.8 million compared to $125.5 million in 2022.
Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.36 compared to $3.84 in 2022.

* See pages 2 and 14 - 16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

The supplemental slides provided in connection with the third quarter 2023 earnings release can be found on the Investor Relations page of our website. In light of the pending merger of the Company with UnitedHealth Group Incorporated, Amedisys will not conduct a quarterly earnings call to discuss the third quarter results.

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 (loss) attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share calculated in accordance with GAAP 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 high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes, home-based 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 3,000 hospitals and 102,000 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 18,600 employees in 521 care centers within 37 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 455,000 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,” “will,” “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: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms and timetable; the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger; changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; 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; the impact of the novel coronavirus pandemic ("COVID-19") on our business, financial condition and results of operations; changes in estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; and changes in laws 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.

Nick Muscato

Kendra Kimmons

Chief Strategy Officer

Vice President, Marketing & Communications

(615) 928- 5452

(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 September 30,

For the Nine-Month Periods Ended September 30,


2023



2022



2023



2022

Net service revenue
$
556,237


$
557,988


$
1,665,594


$
1,661,135

Operating expenses:







Cost of service, inclusive of depreciation

311,628



322,227



924,093



943,258

General and administrative expenses:







Salaries and benefits

129,083



125,550



380,926



376,788

Non-cash compensation

6,612



3,495



18,968



15,990

Merger-related expenses

4,980



—



25,151



—

Depreciation and amortization

4,436



5,477



13,604



19,705

Investment impairment

—



3,009



—



3,009

Other

57,287



59,299



180,467



167,851

Total operating expenses

514,026



519,057



1,543,209



1,526,601

Operating income

42,211



38,931



122,385



134,534

Other income (expense):







Interest income

1,304



59



2,452



108

Interest expense

(8,021
)


(4,963
)


(23,040
)


(16,447
)
Equity in earnings (loss) from equity method investments

1,252



302



9,366



(442
)
Merger termination fee

—



—



(106,000
)


—

Miscellaneous, net

1,201



491



5,262



1,155

Total other expense, net

(4,264
)


(4,111
)


(111,960
)


(15,626
)
Income before income taxes

37,947



34,820



10,425



118,908

Income tax expense

(12,331
)


(9,417
)


(40,381
)


(32,755
)
Net income (loss)

25,616



25,403



(29,956
)


86,153

Net loss attributable to noncontrolling interests

344



239



887



739

Net income (loss) attributable to Amedisys, Inc.
$
25,960


$
25,642


$
(29,069
)

$
86,892

Basic earnings per common share:







Net income (loss) attributable to Amedisys, Inc. common stockholders
$
0.80


$
0.79


$
(0.89
)

$
2.67

Weighted average shares outstanding

32,624



32,482



32,587



32,519

Diluted earnings per common share:







Net income (loss) attributable to Amedisys, Inc. common stockholders
$
0.79


$
0.79


$
(0.89
)

$
2.66

Weighted average shares outstanding

32,831



32,616



32,587



32,680

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

September 30, 2023 (unaudited)

December 31, 2022
ASSETS



Current assets:



Cash and cash equivalents
$
78,112


$
40,540

Restricted cash

15,904



13,593

Patient accounts receivable

319,580



296,785

Prepaid expenses

20,534



11,628

Other current assets

33,097



26,415

Total current assets

467,227



388,961

Property and equipment, net of accumulated depreciation of $93,909 and $101,364

39,631



16,026

Operating lease right of use assets

87,834



102,856

Goodwill

1,244,679



1,287,399

Intangible assets, net of accumulated amortization of $12,838 and $14,604

103,634



101,167

Other assets

84,412



79,836

Total assets
$
2,027,417


$
1,976,245

LIABILITIES AND EQUITY



Current liabilities:



Accounts payable
$
34,555


$
43,735

Payroll and employee benefits

126,989



125,387

Accrued expenses

139,100



137,390

Termination fee paid by UnitedHealth Group

106,000



—

Current portion of long-term obligations

35,364



15,496

Current portion of operating lease liabilities

26,111



33,521

Total current liabilities

468,119



355,529

Long-term obligations, less current portion

366,853



419,420

Operating lease liabilities, less current portion

61,878



69,504

Deferred income tax liabilities

35,398



20,411

Other long-term obligations

1,651



4,808

Total liabilities

933,899



869,672

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; 38,065,853 and 37,891,186 shares issued; 32,633,599 and 32,511,465 shares outstanding

38



38

Additional paid-in capital

776,880



755,063

Treasury stock, at cost, 5,432,254 and 5,379,721 shares of common stock

(465,613
)


(461,200
)
Retained earnings

728,603



757,672

Total Amedisys, Inc. stockholders’ equity

1,039,908



1,051,573

Noncontrolling interests

53,610



55,000

Total equity

1,093,518



1,106,573

Total liabilities and equity
$
2,027,417


$
1,976,245

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 September 30,

For the Nine-Month Periods Ended September 30,


2023



2022



2023



2022

Cash Flows from Operating Activities:







Net income (loss)
$
25,616


$
25,403


$
(29,956
)

$
86,153

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:







Depreciation and amortization (inclusive of depreciation included in cost of service)

6,063



5,477



17,956



19,705

Non-cash compensation

7,243



3,495



19,624



15,990

Amortization and impairment of operating lease right of use assets

8,456



12,319



25,427



34,782

(Gain) loss on disposal of property and equipment

(10
)


(24
)


346



507

Loss on personal care divestiture

—



—



2,186



—

Merger termination fee

—



—



106,000



—

Deferred income taxes

7,313



13,028



15,417



19,031

Equity in (earnings) loss from equity method investments

(1,252
)


(302
)


(9,366
)


442

Amortization of deferred debt issuance costs

248



248



743



743

Return on equity method investments

1,556



1,370



4,309



3,798

Investment impairment

—



3,009



—



3,009

Changes in operating assets and liabilities, net of impact of acquisitions:







Patient accounts receivable

(40,796
)


3,078



(32,934
)


(18,266
)
Other current assets

(17,123
)


(15,461
)


(15,434
)


(19,929
)
Operating lease right of use assets

(866
)


(661
)


(2,803
)


(2,323
)
Other assets

29



63



273



283

Accounts payable

(4,108
)


1,388



(8,839
)


5,886

Accrued expenses

5,565



(56,319
)


10,340



(26,790
)
Other long-term obligations

23



466



(3,156
)


243

Operating lease liabilities

(7,800
)


(10,207
)


(23,256
)


(30,864
)
Net cash (used in) provided by operating activities

(9,843
)


(13,630
)


76,877



92,400

Cash Flows from Investing Activities:







Proceeds from the sale of deferred compensation plan assets

—



61



25



89

Proceeds from the sale of property and equipment

—



29



100



66

Purchases of property and equipment

(984
)


(1,556
)


(3,728
)


(4,338
)
Investments in technology assets

(214
)


(289
)


(6,881
)


(848
)
Investment in equity method investee

—



(637
)


—



(637
)
Purchase of cost method investment

—



—



—



(15,000
)
Return of investment

150



—



150



—

Proceeds from personal care divestiture

—



—



47,787



—

Acquisitions of businesses, net of cash acquired

—



1,359



(350
)


(71,952
)
Net cash (used in) provided by investing activities

(1,048
)


(1,033
)


37,103



(92,620
)
Cash Flows from Financing Activities:







Proceeds from issuance of stock upon exercise of stock options

25



306



100



1,078

Proceeds from issuance of stock under employee stock purchase plan

848



966



2,602



2,857

Shares withheld to pay taxes on non-cash compensation

(925
)


(3,187
)


(4,413
)


(7,949
)
Noncontrolling interest contributions

856



1,148



1,232



2,100

Noncontrolling interest distributions

(902
)


(450
)


(1,614
)


(1,425
)
Proceeds from sale of noncontrolling interest

—



3,941



—



3,941

Proceeds from borrowings under revolving line of credit

—



185,500



23,000



484,000

Repayments of borrowings under revolving line of credit

—



(182,000
)


(23,000
)


(465,500
)
Principal payments of long-term obligations

(6,120
)


(3,151
)


(67,113
)


(10,126
)
Purchase of company stock

—



—



—



(17,351
)
Payment of accrued contingent consideration

(36
)


(5,714
)


(4,091
)


(5,714
)
Purchase of noncontrolling interest

—



—



(800
)


—

Net cash used in financing activities

(6,254
)


(2,641
)


(74,097
)


(14,089
)
Net (decrease) increase in cash, cash equivalents and restricted cash

(17,145
)


(17,304
)


39,883



(14,309
)
Cash, cash equivalents and restricted cash at beginning of period

111,161



48,764



54,133



45,769

Cash, cash equivalents and restricted cash at end of period
$
94,016


$
31,460


$
94,016


$
31,460










For the Three-Month Periods Ended September 30,

For the Nine-Month Periods Ended September 30,


2023



2022



2023



2022

Supplemental Disclosures of Cash Flow Information:







Cash paid for interest
$
6,756


$
4,664


$
19,787


$
9,153

Cash paid for Infinity ZPIC interest
$
—


$
11,544


$
—


$
11,544

Cash paid for income taxes, net of refunds received
$
8,498


$
605


$
24,318


$
23,582

Cash paid for operating lease liabilities
$
8,665


$
10,868


$
26,059


$
33,187

Cash paid for finance lease liabilities
$
3,141


$
339


$
8,462


$
1,074

Supplemental Disclosures of Non-Cash Activity:







Right of use assets obtained in exchange for operating lease liabilities
$
10,459


$
10,390


$
25,261


$
36,980

Right of use assets obtained in exchange for finance lease liabilities
$
7,020


$
530


$
34,964


$
1,846

Reductions to right of use assets resulting from reductions to operating lease liabilities
$
—


$
624


$
15,135


$
3,387

Reductions to right of use assets resulting from reductions to finance lease liabilities
$
315


$
564


$
1,209


$
564

Accrued contingent consideration
$
—


$
—


$
—


$
19,195

Noncontrolling interest contribution
$
—


$
—


$
—


$
8,900

Days revenue outstanding (1)

49.8



47.3



49.8



47.3

(1)

Our calculation of days revenue outstanding at September 30, 2023 and 2022 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended September 30, 2023 and 2022, respectively.

AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)
*Segment Information - Home Health*

For the Three-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions)* ⁽⁶⁾ :



Medicare
$
217.9


$
225.6

Non-Medicare

133.7



113.6

Net service revenue

351.6



339.2

Cost of service, inclusive of depreciation

201.6



196.7

Gross margin

150.0



142.5

General and administrative expenses

91.4



89.1

Depreciation and amortization

1.8



0.9

Operating income
$
56.8


$
52.5

Same Store Growth ⁽¹⁾ :



Medicare revenue

(2
%)


(6
%)
Non-Medicare revenue

17
%


(1
%)
Total admissions

4
%


5
%
Total volume ⁽²⁾

3
%


1
%
Key Statistical Data - Total ⁽³⁾⁽⁶⁾ :



Admissions

98,527



95,566

Recertifications

45,693



45,098

Total volume

144,220



140,664





Medicare completed episodes

72,714



76,334

Average Medicare revenue per completed episode ⁽⁴⁾
$
3,015


$
2,992

Medicare visits per completed episode ⁽⁵⁾

12.4



12.7





Visiting clinician cost per visit
$
105.06


$
101.33

Clinical manager cost per visit

11.98



11.44

Total cost per visit
$
117.04


$
112.77

Visits

1,723,289



1,744,385


For the Nine-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions)* ⁽⁶⁾ :



Medicare
$
653.1


$
671.7

Non-Medicare

391.6



345.1

Net service revenue

1,044.7



1,016.8

Cost of service, inclusive of depreciation

593.1



576.6

Gross margin

451.6



440.2

General and administrative expenses

270.5



261.1

Depreciation and amortization

4.3



3.3

Operating income
$
176.8


$
175.8

Same Store Growth ⁽¹⁾ :



Medicare revenue

(3
%)


(5
%)
Non-Medicare revenue

13
%


—
%
Total admissions

5
%


2
%
Total volume ⁽²⁾

3
%


—
%
Key Statistical Data - Total ⁽³⁾⁽⁶⁾ :



Admissions

297,943



281,393

Recertifications

134,826



133,775

Total volume

432,769



415,168





Medicare completed episodes

221,125



229,098

Average Medicare revenue per completed episode ⁽⁴⁾
$
2,998


$
3,019

Medicare visits per completed episode ⁽⁵⁾

12.4



13.0





Visiting clinician cost per visit
$
101.55


$
98.72

Clinical manager cost per visit

11.41



10.99

Total cost per visit
$
112.96


$
109.71

Visits

5,250,944



5,256,207

(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, startups and de novos.
(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 suspension of sequestration at 2% and 1% for the three-month periods ended March 31, 2022 and June 30, 2022, respectively, and the reinstatement of sequestration at 2% effective July 1, 2022.
(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 has been recast to conform to the current year presentation.

Segment Information - Hospice


For the Three-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions):*



Medicare
$
188.9


$
187.8

Non-Medicare

11.3



10.9

Net service revenue

200.2



198.7

Cost of service, inclusive of depreciation

104.2



109.4

Gross margin

96.0



89.3

General and administrative expenses

48.4



49.1

Depreciation and amortization

0.8



0.5

Operating income
$
46.8


$
39.7

Same Store Growth ⁽¹⁾ :



Medicare revenue

1
%


—
%
Hospice admissions

(6
%)


(3
%)
Average daily census

(2
%)


1
%
Key Statistical Data - Total ⁽²⁾ :



Hospice admissions

11,968



12,782

Average daily census

12,943



13,314

Revenue per day, net
$
168.11


$
162.24

Cost of service per day
$
87.48


$
89.36

Average discharge length of stay

94



92


For the Nine-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions):*



Medicare
$
559.8


$
557.8

Non-Medicare

33.0



32.4

Net service revenue

592.8



590.2

Cost of service, inclusive of depreciation

304.4



323.2

Gross margin

288.4



267.0

General and administrative expenses

144.1



152.1

Depreciation and amortization

2.2



1.7

Operating income
$
142.1


$
113.2

Same Store Growth ⁽¹⁾ :



Medicare revenue

—
%


—
%
Hospice admissions

(6
%)


1
%
Average daily census

(2
%)


(1
%)
Key Statistical Data - Total ⁽²⁾ :



Hospice admissions

37,361



40,027

Average daily census

12,864



13,163

Revenue per day, net
$
168.80


$
164.24

Cost of service per day
$
86.66


$
89.94

Average discharge length of stay

91



90

(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 and de novos.

Segment Information - Personal Care ⁽¹⁾


For the Three-Month Periods Ended September 30,


2023


2022
Financial Information *(in millions):*



Medicare
$
—

$
—
Non-Medicare

—


16.6
Net service revenue

—


16.6
Cost of service, inclusive of depreciation

—


12.2
Gross margin

—


4.4
General and administrative expenses

—


2.4
Depreciation and amortization

—


—
Operating income
$
—

$
2.0
Key Statistical Data - Total:



Billable hours

—


474,365
Clients served

—


7,771
Shifts

—


202,638
Revenue per hour
$
—

$
34.98
Revenue per shift
$
—

$
81.89
Hours per shift

—


2.3


For the Nine-Month Periods Ended September 30,


2023


2022
Financial Information *(in millions):*



Medicare
$
—

$
—
Non-Medicare

15.0


45.5
Net service revenue

15.0


45.5
Cost of service, inclusive of depreciation

11.1


34.5
Gross margin

3.9


11.0
General and administrative expenses

2.3


6.8
Depreciation and amortization

—


0.1
Operating income
$
1.6

$
4.1
Key Statistical Data - Total:



Billable hours

440,464


1,397,919
Clients served

7,892


9,530
Shifts

191,379


598,376
Revenue per hour
$
33.97

$
32.53
Revenue per shift
$
78.19

$
76.00
Hours per shift

2.3


2.3

(1)

We completed the sale of our personal care business on March 31, 2023.

Segment Information - High Acuity Care


For the Three-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions)* ⁽¹⁾ :



Medicare
$
—


$
—

Non-Medicare

4.4



3.5

Net service revenue

4.4



3.5

Cost of service, inclusive of depreciation

5.8



3.9

Gross margin

(1.4
)


(0.4
)
General and administrative expenses

5.3



5.2

Depreciation and amortization

0.7



0.8

Investment impairment

—



3.0

Operating loss
$
(7.4
)

$
(9.4
)
Key Statistical Data - Total:



Full risk admissions

150



130

Limited risk admissions

430



300

Total admissions

580



430





Full risk revenue per episode
$
10,168


$
11,615

Limited risk revenue per episode
$
6,242


$
5,580





Number of admitting joint venture markets

11



8


For the Nine-Month Periods Ended September 30,


2023



2022

Financial Information *(in millions)* ⁽¹⁾ :



Medicare
$
—


$
—

Non-Medicare

13.1



8.6

Net service revenue

13.1



8.6

Cost of service, inclusive of depreciation

15.5



9.0

Gross margin

(2.4
)


(0.4
)
General and administrative expenses

15.0



14.6

Depreciation and amortization

2.3



2.4

Investment impairment

—



3.0

Operating loss
$
(19.7
)

$
(20.4
)
Key Statistical Data - Total:



Full risk admissions

468



339

Limited risk admissions

1,263



768

Total admissions

1,731



1,107





Full risk revenue per episode
$
10,783


$
11,018

Limited risk revenue per episode
$
5,881


$
5,556





Number of admitting joint venture markets

11



8

(1)

Prior year has been recast to conform to the current year presentation.

Segment Information - Corporate


For the Three-Month Periods Ended September 30,


2023


2022
Financial Information *(in millions)* ⁽¹⁾ :



General and administrative expenses
$
52.9

$
42.6
Depreciation and amortization

1.1


3.3
Total operating expenses
$
54.0

$
45.9


For the Nine-Month Periods Ended September 30,


2023


2022
Financial Information *(in millions)* ⁽¹⁾ :



General and administrative expenses
$
173.6

$
126.0
Depreciation and amortization

4.8


12.2
Total operating expenses
$
178.4

$
138.2

(1)

Prior year has been recast to conform to the current year presentation.

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 September 30,

For the Nine-Month Periods Ended September 30,


2023


2022


2023



2022

Net income (loss) attributable to Amedisys, Inc.
$
25,960

$
25,642

$
(29,069
)

$
86,892

Add:







Income tax expense

12,331


9,417


40,381



32,755

Interest expense, net

6,717


4,904


20,588



16,339

Depreciation and amortization

6,063


5,477


17,956



19,705

Certain items ⁽¹⁾

6,807


15,861


140,498



50,920

Interest component of certain items ⁽¹⁾

—


207


—



(4,445
)
Adjusted EBITDA ⁽²⁾⁽⁶⁾
$
57,878

$
61,508

$
190,354


$
202,166

Adjusted Net Service Revenue Reconciliation:


For the Three-Month Periods Ended September 30,

For the Nine-Month Periods Ended September 30,


2023


2022


2023


2022
Net service revenue
$
556,237

$
557,988

$
1,665,594

$
1,661,135
Add:







Certain items ⁽¹⁾

—


931


—


9,305
Adjusted net service revenue ^{(3) (6)}
$
556,237

$
558,919

$
1,665,594

$
1,670,440

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:


For the Three-Month Periods Ended September 30,

For the Nine-Month Periods Ended September 30,


2023


2022


2023



2022
Net income (loss) attributable to Amedisys, Inc.
$
25,960

$
25,642

$
(29,069
)

$
86,892
Add:







Certain items ⁽¹⁾

6,242


11,740


138,884



38,587
Adjusted net income attributable to Amedisys, Inc. ⁽⁴⁾⁽⁶⁾
$
32,202

$
37,382

$
109,815


$
125,479

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


For the Three-Month Periods Ended September 30,

For the Nine-Month Periods Ended September 30,


2023


2022


2023



2022
Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share
$
0.79

$
0.79

$
(0.89
)

$
2.66
Add:







Certain items ⁽¹⁾

0.19


0.36


4.25



1.18
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share ⁽⁵⁾⁽⁶⁾
$
0.98

$
1.15

$
3.36


$
3.84

(1)

The following details the certain items for the three and nine-month periods ended September 30, 2023 and 2022:

Certain Items (in thousands):


For the Three-Month Periods Ended September 30, 2023

For the Nine-Month Periods Ended September 30, 2023

(Income) Expense

(Income) Expense
*Certain Items Impacting Cost of Service, Inclusive of Depreciation:*



Clinical optimization and reorganization costs
$
282


$
396
*Certain Items Impacting General and Administrative Expenses:*



Acquisition and integration costs

338



3,106
CEO transition

1,094



5,279
Merger-related expenses

4,980



25,151
Clinical optimization and reorganization costs

466



4,203
Personal care divestiture

—



525
*Certain Items Impacting Total Other Income (Expense):*



Other (income) expense, net (includes $106,000 merger termination fee)

(353
)


101,838
Total
$
6,807


$
140,498
Net of tax
$
6,242


$
138,884
Diluted EPS
$
0.19


$
4.25


For the Three-Month Periods Ended September 30, 2022

For the Nine-Month Periods Ended September 30, 2022

(Income) Expense

(Income) Expense
*Certain Items Impacting Net Service Revenue:*



Contingency accrual
$
931


$
9,305

*Certain Items Impacting Cost of Service:*



COVID-19 costs

1,701



7,237

Clinical optimization and reorganization costs

1,154



1,349

Fuel supplement

1,962



3,315

Integration costs

311



1,712

*Certain Items Impacting General and Administrative Expenses:*



Acquisition and integration costs

3,154



9,855

COVID-19 costs

159



396

CEO transition

—



3,500

Legal fees - non-routine

—



241

Clinical optimization and reorganization costs

2,676



3,545

Legal settlement

—



(1,058
)
Fuel supplement

218



218

Investment impairment

3,009



3,009

*Certain Items Impacting Total Other Income (Expense):*



Interest component of certain items

(207
)


4,445

Other expense, net

793



3,851

Total
$
15,861


$
50,920

Net of tax
$
11,740


$
38,587

Diluted EPS
$
0.36


$
1.18

(2)
Adjusted EBITDA is defined as net income (loss) 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 net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)
Adjusted net income attributable to Amedisys, Inc. is defined as net income (loss) 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 net service revenue, 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.

Company Name:	Amedisys Inc
Stock Symbol:	AMED
Market:	NASDAQ
Website:	amedisys.com

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