Financial News

Amedisys Reports Third Quarter 2020 Financial Results - Updates 2020 Guidance

BATON ROUGE, La., Oct. 28, 2020 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month periods ended September 30, 2020.

Three-Month Periods Ended September 30, 2020 and 2019

  • Net service revenue increased $49.5 million to $544.1 million compared to $494.6 million in 2019.

  • Net income attributable to Amedisys, Inc. of $72.0 million compared to $34.1 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $2.16 (inclusive of $0.72 income tax benefit related to executive stock option exercise) compared to $1.03 in 2019.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $75.7 million compared to $56.8 million in 2019.

  • Adjusted net service revenue of $544.1 million compared to $494.6 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $74.6 million compared to $37.9 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.24 (inclusive of $0.72 income tax benefit related to executive stock option exercise) compared to $1.15 in 2019.

Nine-Month Periods Ended September 30, 2020 and 2019

  • Net service revenue increased $65.9 million to $1,520.8 million compared to $1,454.9 million in 2019.

  • Net income attributable to Amedisys, Inc. of $138.5 million compared to $99.2 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $4.16 (inclusive of $0.72 income tax benefit related to executive stock option exercise) compared to $3.01 in 2019.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $195.4 million compared to $173.0 million in 2019.

  • Adjusted net service revenue of $1,520.8 million compared to $1,460.9 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $153.9 million compared to $114.2 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $4.63 (inclusive of $0.72 income tax benefit related to executive stock option exercise) compared to $3.47 in 2019.

*  See pages 13-15 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am very proud of our third quarter results which have bested both our internal and external expectations and have allowed us to increase our full year 2020 guidance ranges. Home health and hospice have shown strong recoveries and returned to growth this quarter which is no small feat given the continued impact of COIVD-19. We are well underway with our integration of Aseracare, have paid down a large portion of our already low debt and continue to drive prodigious amounts of cash flow. Most importantly, we have done all of this while delivering the highest quality care and continuing our relentless focus on clinical quality. The importance of caring for people in their homes, wherever they call home, has never been more evident, and as such, we are well positioned for continued success. A special thank you to all of our clinician staff for continuing to do what you do best. It is because of your compassion, bravery and tireless efforts that we are able to deliver another great quarter.”

Updated 2020 Guidance

  • Net service revenue is anticipated to be in the range of $2.067 billion to $2.072 billion.

  • Adjusted EBITDA is anticipated to be in the range of $269 million to $272 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $6.02 to $6.08 (inclusive of $0.72 income tax benefit related to executive stock option exercise) 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 2020 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, 2019, 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, October 29, 2020, at 11:00 a.m. ET to discuss its third 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 November 29, 2020 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13712002.

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 provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted other operating income, defined as other operating income excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5) 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 2,600 hospitals and 67,000 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 more than 21,000 employees in 516 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 415,000 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 disaster, acts of terrorism, widespread protest or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions and 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 MuscatoKendra Kimmons
 Senior Vice President, FinanceVice President, Marketing & Communications
 (855) 259-2046(225) 299-3720
 IR@amedisys.comkendra.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,
 
 2020
 2019
 2020
 2019
 
Net service revenue$544,070 $494,631 $1,520,814 $1,454,955 
Other operating income 4,812    27,592   
Cost of service, excluding depreciation and amortization 297,668  288,708  878,633  854,734 
General and administrative expenses:    
Salaries and benefits 123,146  99,941  330,329  293,127 
Non-cash compensation 7,124  6,298  19,758  18,451 
Other 49,348  48,474  142,616  140,284 
Depreciation and amortization 8,283  4,366  19,955  12,440 
Operating expenses 485,569  447,787  1,391,291  1,319,036 
Operating income 63,313  46,844  157,115  135,919 
Other income (expense):    
Interest income 31  15  258  59 
Interest expense (2,692) (3,778) (8,675) (11,459)
Equity in earnings from equity method investments 1,435  (812) 2,399  4,120 
Miscellaneous, net 122  1,975  (2,318) 2,404 
Total other expense, net (1,104) (2,600) (8,336) (4,876)
Income before income taxes 62,209  44,244  148,779  131,043 
Income tax benefit (expense) 10,202  (9,919) (9,175) (31,105)
Net income 72,411  34,325  139,604  99,938 
Net income attributable to noncontrolling interests (430) (193) (1,147) (760)
Net income attributable to Amedisys, Inc.$71,981 $34,132 $138,457 $99,178 
     
Basic earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$2.20 $1.06 $4.26 $3.09 
Weighted average shares outstanding 32,662  32,211  32,469  32,096 
Diluted earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$2.16 $1.03 $4.16 $3.01 
Weighted average shares outstanding 33,260  33,002  33,267  32,944 
             

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

   
 September 30,
2020
(unaudited)
 December 31,
2019
   
ASSETS  
Current assets:  
Cash and cash equivalents$112,904 $30,294 
Restricted cash 2,549  66,196 
Patient accounts receivable 250,777  237,596 
Prepaid expenses 14,906  8,243 
Other current assets 30,114  8,225 
Total current assets 411,250  350,554 
Property and equipment, net of accumulated depreciation of $101,512 and $96,137 24,104  28,113 
Operating lease right of use assets 94,273  84,791 
Goodwill 931,483  658,500 
Intangible assets, net of accumulated amortization of $17,165 and $7,044 84,143  64,748 
Deferred income taxes 24,189  21,427 
Other assets 33,278  54,612 
Total assets$1,602,720 $1,262,745 
   
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable$39,037 $31,259 
Payroll and employee benefits 126,543  120,877 
Accrued expenses 170,743  137,111 
Provider relief fund advance 60,000   
Current portion of long-term obligations 10,711  9,927 
Current portion of operating lease liabilities 30,462  27,769 
Total current liabilities 437,496  326,943 
Long-term obligations, less current portion 300,576  232,256 
Operating lease liabilities, less current portion 62,519  56,128 
Other long-term obligations 44,386  5,905 
Total liabilities 844,977  621,232 
   
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; 37,457,444 and 36,638,021 shares issued; and 32,802,785 and 32,284,051 shares outstanding 37  37 
Additional paid-in capital 690,099  645,256 
Treasury stock, at cost 4,654,659 and 4,353,970 shares of common stock (318,771) (251,241)
Accumulated other comprehensive income   15 
Retained earnings 384,840  246,383 
Total Amedisys, Inc. stockholders’ equity 756,205  640,450 
Noncontrolling interests 1,538  1,063 
Total equity 757,743  641,513 
Total liabilities and equity$1,602,720 $1,262,745 
   
   

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,  
 
 2020 2019 2020 2019 
     
Cash Flows from Operating Activities:    
Net income$72,411 $34,325 $139,604 $99,938 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 8,283  4,366  19,955  12,440 
Non-cash compensation 7,124  6,298  19,758  18,451 
Non-cash 401(k) employer match   2,859    7,545 
Amortization and impairment of operating lease right of use assets 10,591  9,519  29,149  27,014 
Loss (gain) on disposal of property and equipment 17  8  (77) 6 
Loss on sale of equity method investment     2,980   
Write-off of other comprehensive income     (15)  
Deferred income taxes 1,274  11,923  (2,762) 17,798 
Equity in earnings from equity method investments (1,435) 812  (2,399) (4,120)
Amortization of deferred debt issuance costs/debt discount 216  220  653  653 
Return on equity investment 1,175  2,885  3,919  3,727 
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable (2,511) (15,304) 6,486  (39,469)
Other current assets (24,748) (1,851) (28,217) (10,194)
Other assets 584  258  (91) 202 
Accounts payable 4,825  1,330  (1,627) (8,145)
Accrued expenses (2,396) (1,359) 25,594  27,903 
Other long-term obligations 17,735  (50) 38,481  (231)
Operating lease liabilities (9,211) (7,916) (25,576) (24,116)
Operating lease right of use assets (851) (868) (2,775) (2,622)
Net cash provided by operating activities 83,083  47,455  223,040  126,780 
     
Cash Flows from Investing Activities:    
Proceeds from sale of deferred compensation plan assets 73  74  94  287 
Proceeds from the sale of property and equipment   12  80  158 
Purchases of property and equipment (1,294) (3,644) (2,995) (6,337)
Investments in equity method investees     (875) (210)
Proceeds from sale of equity method investment     17,876   
Acquisitions of businesses, net of cash acquired   (46) (299,723) (345,460)
Net cash used in investing activities (1,221) (3,604) (285,543) (351,562)
     
Cash Flows from Financing Activities:    
Proceeds from issuance of stock upon exercise of stock options 3,123  2,045  6,070  3,388 
Proceeds from issuance of stock to employee stock purchase plan 914  850  2,600  2,384 
Shares withheld to pay taxes on non-cash compensation (47,788) (4,895) (54,172) (9,385)
Noncontrolling interest distribution (300) (453) (672) (910)
Proceeds from borrowings under term loan       175,000 
Proceeds from borrowings under revolving line of credit 7,500  8,000  432,000  192,500 
Repayments of borrowings under revolving line of credit (97,500) (41,000) (357,000) (133,000)
Principal payments of long-term obligations (2,685) (1,543) (7,360) (3,820)
Debt issuance costs       (847)
Provider relief fund advance (10,000)   60,000   
Net cash provided by (used in) financing activities (146,736) (36,996) 81,466  225,310 
Net (decrease) increase in cash, cash equivalents and restricted cash (64,874) 6,855  18,963  528 
Cash, cash equivalents and restricted cash at beginning of period 180,327  13,902  96,490  20,229 
Cash, cash equivalents and restricted cash at end of period$115,453 $20,757 $115,453 $20,757 
     


Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest$1,610 $3,569 $4,902 $7,756 
Cash paid for income taxes, net of refunds received$22,137 $9,807 $30,290 $17,656 
Cash paid for operating lease liabilities$10,062 $8,784 $28,351 $26,738 
Cash paid for finance lease liabilities$497 $ $1,483 $792 
     
Supplemental Disclosures of Non-Cash Activity:    
Right of use assets obtained in exchange for operating lease liabilities$10,982 $4,635 $29,876 $110,304 
Right of use assets obtained in exchange for finance lease liabilities$335 $845 $822 $1,806 
Reductions to right of use assets resulting from reductions to operating lease liabilities$360 $324 $767 $1,235 
Days revenue outstanding (1) 40.0  44.5  40.0  44.5 

(1)    Our calculation of days revenue outstanding at September 30, 2020 and 2019 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended September 30, 2020 and 2019, 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,
 
 2020 2019 
   
Financial Information (in millions):  
Medicare$222.2 $211.5 
Non-Medicare 103.8  100.0 
Net service revenue 326.0  311.5 
Other operating income 2.6   
Cost of service 180.0  188.9 
Gross margin 148.6  122.6 
Other operating expenses 79.8  76.5 
Operating income$68.8 $46.1 
   
Same Store Growth (1):  
Medicare revenue 5% 2%
Non-Medicare revenue 4% 16%
Total admissions 5% 9%
Total volume (2) 6% 6%
Key Statistical Data - Total (3):  
Admissions 85,578  81,937 
Recertifications 47,094  43,340 
Total volume 132,672  125,277 
Medicare completed episodes (6) 77,552  75,807 
Average Medicare revenue per completed episode (4) (6)$2,886 $2,836 
Medicare visits per completed episode (5) (6) 14.4  16.9 
Visiting Clinician Cost per Visit$89.10 $83.68 
Clinical Manager Cost per Visit$8.91 $8.09 
Total Cost per Visit$98.01 $91.77 
Visits 1,836,895  2,057,184 


   
 For the Nine-Month Periods
Ended September 30,
 
 2020
 2019
 
   
Financial Information (in millions):  
Medicare$619.0 $644.0 
Non-Medicare 300.8  296.2 
Net service revenue 919.8  940.2 
Other operating income 17.7   
Cost of service 543.8  562.4 
Gross margin 393.7  377.8 
Other operating expenses 229.6  224.0 
Operating income$164.1 $153.8 
   
Same Store Growth (1):  
Medicare revenue (4%) 4%
Non-Medicare revenue 2% 18%
Total admissions (1%) 7%
Total volume (2) 2% 6%
Key Statistical Data - Total (3):  
Admissions 245,880  247,669 
Recertifications 135,263  128,496 
Total volume 381,143  376,165 
Medicare completed episodes (6) 221,848  229,229 
Average Medicare revenue per completed episode (4) (6)$2,811 $2,853 
Medicare visits per completed episode (5) (6) 15.2  17.1 
Visiting Clinician Cost per Visit$88.64 $82.23 
Clinical Manager Cost per Visit$9.10 $7.91 
Total Cost per Visit$97.74 $90.14 
Visits 5,563,992  6,238,758 

(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. Effective July 1, 2019, 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 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 for the three and nine-month periods ended September 30, 2020 reflects the suspension of sequestration effective May 1, 2020. Additionally average Medicare revenue per completed episode for the nine-month period ended September 30, 2020 reflects the transition to PDGM during the year and therefore includes reimbursement under both the 60-day episode of care (pre-PDGM) payment rate and the 30-day period of care (PDGM) payment rate.
(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 September 30,
 
 2020 2019 
   
Financial Information (in millions):  
Medicare$189.0 $153.5 
Non-Medicare 10.7  8.9 
Net service revenue 199.7  162.4 
Other operating income 1.7   
Cost of service 104.1  84.5 
Gross margin 97.3  77.9 
Other operating expenses 48.4  36.2 
Operating income$48.9 $41.7 
   
Same Store Growth (1):  
Medicare revenue 3% 10%
Hospice admissions 9% 4%
Average daily census % 5%
Key Statistical Data - Total (2):  
Hospice admissions 13,026  9,914 
Average daily census 13,953  11,565 
Revenue per day, net$155.57 $152.67 
Cost of service per day$81.05 $79.51 
Average discharge length of stay 101  98 


 For the Nine-Month Periods
Ended September 30,
 
 2020 2019 
   
Financial Information (in millions):  
Medicare$516.5 $430.0 
Non-Medicare 29.7  22.6 
Net service revenue 546.2  452.6 
Other operating income 8.9   
Cost of service 293.1  245.9 
Gross margin 262.0  206.7 
Other operating expenses 129.1  100.9 
Operating income$132.9 $105.8 
   
Same Store Growth (1):  
Medicare revenue 4% 6%
Hospice admissions 3% 5%
Average daily census 1% 6%
Key Statistical Data - Total (2):  
Hospice admissions 35,755  30,055 
Average daily census 12,841  10,997 
Revenue per day, net$155.23 $150.77 
Cost of service per day$83.29 $81.92 
Average discharge length of stay 98  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. Effective July 1, 2019, 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 denovos.


Segment Information - Personal Care

   
 For the Three-Month Periods
Ended September 30,
 2020
 2019
   
Financial Information (in millions):  
Medicare$ $
Non-Medicare 18.4  20.7
Net service revenue 18.4  20.7
Other operating income 0.5  
Cost of service 13.5  15.3
Gross margin 5.4  5.4
Other operating expenses 3.2  3.1
Operating income$2.2 $2.3
   
Key Statistical Data - Total (1):  
Billable hours 673,161  824,251
Clients served 10,153  12,687
Shifts 280,470  370,451
Revenue per hour$27.33 $25.12
Revenue per shift$65.59 $55.90
Hours per shift 2.4  2.2


 For the Nine-Month Periods
Ended September 30,
 2020 2019
   
Financial Information (in millions):  
Medicare$ $
Non-Medicare 54.8  62.1
Net service revenue 54.8  62.1
Other operating income 1.0  
Cost of service 41.7  46.4
Gross margin 14.1  15.7
Other operating expenses 9.6  9.5
Operating income$4.5 $6.2
   
Key Statistical Data - Total (1):  
Billable hours 2,067,958  2,506,113
Clients served 14,057  16,134
Shifts 896,141  1,128,920
Revenue per hour$26.51 $24.77
Revenue per shift$61.18 $55.00
Hours per shift 2.3  2.2

(1)    Total includes acquisitions.

Segment Information - Corporate

   
 For the Three-Month Periods
Ended September 30,
 2020 2019
   
Financial Information (in millions):  
Other operating expenses$49.9 $40.4
Depreciation and amortization 6.7  2.9
Total operating expenses$56.6 $43.3


 For the Nine-Month Periods
Ended September 30,
 2020 2019
   
Financial Information (in millions):  
Other operating expenses$129.2 $122.0
Depreciation and amortization 15.2  7.9
Total operating expenses$144.4 $129.9
   
   

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,
 
 2020 2019 2020 2019 
Net income attributable to Amedisys, Inc.$71,981 $34,132 $138,457 $99,178 
Add:    
Income tax (benefit) expense (10,202) 9,919  9,175  31,105 
Interest expense, net 2,661  3,763  8,417  11,400 
Depreciation and amortization 8,283  4,366  19,955  12,440 
Certain items (1) 3,494  5,088  20,843  20,259 
Interest component of certain items (1) (558) (451) (1,450) (1,338)
Adjusted EBITDA (2) (7)$75,659 $56,817 $195,397 $173,044 
     
     

Adjusted Net Service Revenue Reconciliation:

     
 For the Three-
Month Periods
Ended September 30,
 For the Nine-
Month Periods
Ended September 30,
 2020 2019 2020 2019
Net service revenue$544,070 $494,631 $1,520,814 $1,454,955
Add:    
Certain items (1)       5,993
Adjusted net service revenue (3) (7)$544,070 $494,631 $1,520,814 $1,460,948
     
     

Adjusted Other Operating Income Reconciliation:

     
 For the Three-
Month Periods
Ended September 30,
 For the Nine-
Month Periods
Ended September 30,
 2020 2019 2020 2019
Other operating income$4,812 $ $27,592 $
Add:    
Certain items (1) (4,812)   (27,592) 
Adjusted other operating income (4) (7)$ $ $ $
     
     

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

     
 For the Three-
Month Periods
Ended September 30,
 For the Nine-
Month Periods
Ended September 30,
 2020 2019 2020 2019
Net income attributable to Amedisys, Inc.$71,981 $34,132 $138,457 $99,178
Add:    
Certain items (1) 2,585  3,765  15,424  14,992
Adjusted net income attributable to Amedisys, Inc. (5) (7)$74,566 $37,897 $153,881 $114,170
     
     

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,
 2020 2019 2020 2019
Net income attributable to Amedisys, Inc. common stockholders per diluted share$2.16 $1.03 $4.16 $3.01
Add:    
Certain items (1) 0.08  0.11  0.46  0.46
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7)$2.24 $1.15 $4.63 $3.47
     
     

(1)    The following details the certain items for the three and nine-month periods ended September 30, 2020 and 2019:

Certain Items:

   
 For the Three-Month Period
Ended September 30, 2020
 For the Nine-Month Period
Ended September 30, 2020  
 
   
 (Income) Expense
 (Income) Expense
 
   
Certain Items Impacting Other Operating Income:  
CARES Act & State COVID-19 grants$(4,812)$(27,592)
Certain Items Impacting Cost of Service:  
COVID-19 costs 4,389  27,399 
Severance - reductions in staffing levels (550) 4,633 
Certain Items Impacting Operating Expenses:  
Acquisition and integration costs 3,626  9,561 
COVID-19 costs 322  1,385 
Severance - reductions in staffing levels   271 
Certain Items Impacting Total Other Income (Expense):  
Interest component of certain items 558  1,450 
Other (income) expense, net (39) 3,736 
Total$3,494 $20,843 
Net of tax 2,585  15,424 
Diluted EPS$0.08 $0.46 
   


 For the Three-Month Period
Ended September 30, 2019
 For the Nine-Month Period
Ended September 30, 2019
 
   
 (Income) Expense
 (Income) Expense
 
   
Certain Items Impacting Net Service Revenue:  
Contingency accrual$ $6,541 
Planned closures (8)   (548)
Certain Items Impacting Cost of Service:  
Planned closures (8) 15  1,172 
Certain Items Impacting Operating Expenses:  
Planned closures (8) 28  185 
Acquisition and integration costs 4,141  14,393 
Legal fees - non-routine 397  373 
Certain Items Impacting Total Other Income (Expense):  
Interest component of certain items 451  1,338 
Other (income) expense, net 56  (3,195)
Total$5,088 $20,259 
Net of tax 3,765  14,992 
Diluted EPS$0.11 $0.46 
   
   

(2)    Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense 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 other operating income is defined as other operating income excluding certain items as described in footnote 1.
(5)    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.
(6)    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.
(7)    Adjusted EBITDA, adjusted net service revenue, 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.
(8)    Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.

 

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