Amedisys Reports Fourth Quarter and Year-End 2023 Financial Results
- Net service revenue increased to $570.8 million for Q4 2023 compared to $562.0 million in 2022.
- Adjusted EBITDA was $56.7 million for Q4 2023, down from $59.9 million in 2022.
- Net loss attributable to Amedisys, Inc. was $9.7 million for full year 2023, compared to net income of $118.6 million in 2022.
- Adjusted net income per diluted share was $0.94 for Q4 2023, lower than $1.16 in 2022.
- Adjusted net income attributable to Amedisys, Inc. was $140.6 million for full year 2023, a decrease from $163.4 million in 2022.
- Net loss attributable to Amedisys, Inc. for full year 2023 was $9.7 million due to $142.7 million in merger costs.
- Adjusted EBITDA and net income per diluted share declined in 2023 compared to 2022.
- Amedisys will not hold a quarterly earnings call due to the pending merger with UnitedHealth Group Incorporated.
Insights
Reviewing Amedisys Inc.'s recent financial results reveals several key points that are critical to understanding the company's current fiscal health and future prospects. The reported increase in net service revenue, albeit modest, indicates resilience in core operations despite the divestiture of the personal care business. However, the net loss attributable to Amedisys Inc., primarily due to substantial costs associated with merger transactions, raises concerns about the impact of these one-time expenses on the company's short-term profitability.
It is also noteworthy that the adjusted EBITDA and adjusted net income figures, which exclude certain items, are lower compared to the previous year. This suggests underlying pressures on operational efficiency or possible increases in costs not directly related to the core services provided. Additionally, the decline in adjusted net income per diluted share year over year could be a red flag for investors seeking consistent earnings growth.
From a strategic standpoint, the pending merger with UnitedHealth Group Incorporated could significantly alter the company's trajectory, potentially unlocking synergies and expanding market reach. However, the absence of a quarterly earnings call due to the pending merger limits direct communication with investors, which might contribute to uncertainty in the short term.
The healthcare at home sector, in which Amedisys operates, is experiencing a growing demand due to an aging population and a general trend towards outpatient care. Amedisys's expansion of its service offerings and its partnership with over 3,000 hospitals and 110,000 physicians nationwide positions it well to capitalize on these market trends. However, the financial results indicate that despite revenue growth, profitability challenges persist.
Investors should monitor how Amedisys integrates its operations with UnitedHealth Group post-merger, as the success of this integration could be pivotal in realizing cost efficiencies and enhancing service capabilities. The competitive landscape of the healthcare at home industry is also a factor to consider, as consolidation within the industry could affect Amedisys's market share and bargaining power.
The reported financials of Amedisys underscore the impact of strategic decisions such as the divestiture of the personal care business and the pending merger. The divestiture might reflect a strategic refocusing on more profitable or core segments of home healthcare, which is a common trend in the industry aiming for optimized service delivery. Meanwhile, the merger with UnitedHealth Group could potentially enhance Amedisys's capabilities in high acuity care services, which are increasingly in demand.
However, the reported net loss and the decrease in adjusted net income raise questions about the company's cost management and the scalability of its business model in the face of industry headwinds such as regulatory changes and reimbursement challenges. These financial indicators are essential for stakeholders to assess the company's ability to maintain service quality and profitability amidst the evolving healthcare landscape.
BATON ROUGE, La., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2023.
Three-Month Periods Ended December 31, 2023 and 2022
- Net service revenue increased
$8.8 million to$570.8 million compared to$562.0 million in 2022. Prior year included$15.9 million of net service revenue from our personal care business which was divested on March 31, 2023. - Net income attributable to Amedisys, Inc. of
$19.3 million , which is inclusive of$11.5 million in costs associated with with our merger transactions, compared to$31.7 million in 2022. - Net income attributable to Amedisys, Inc. per diluted share of
$0.59 compared to$0.97 in 2022.
Adjusted Quarterly Results*
- Adjusted EBITDA of
$56.7 million compared to$59.9 million in 2022. - Adjusted net service revenue of
$570.8 million compared to$562.0 million in 2022. Prior year included$15.9 million of net service revenue from our personal care business which was divested on March 31, 2023. - Adjusted net income attributable to Amedisys, Inc. of
$30.8 million compared to$38.0 million in 2022. - Adjusted net income attributable to Amedisys, Inc. per diluted share of
$0.94 compared to$1.16 in 2022.
Years Ended December 31, 2023 and 2022
- Net service revenue increased
$13.2 million to$2,236.4 million compared to$2,223.2 million in 2022. Prior year included$61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to$15.0 million in 2023. - Net loss attributable to Amedisys, Inc. of
$9.7 million , which is inclusive of$142.7 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of$118.6 million in 2022. - Net loss attributable to Amedisys, Inc. per diluted share of
$0.30 compared to net income attributable to Amedisys, Inc. per diluted share of$3.63 in 2022.
Adjusted Year End Results*
- Adjusted EBITDA of
$247.0 million compared to$262.1 million in 2022. - Adjusted net service revenue of
$2,236.4 million compared to$2,232.5 million in 2022. Prior year included$61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to$15.0 million in 2023. - Adjusted net income attributable to Amedisys, Inc. of
$140.6 million compared to$163.4 million in 2022. - Adjusted net income attributable to Amedisys, Inc. per diluted share of
$4.30 compared to$5.01 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 fourth quarter and year ended December 31, 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 fourth quarter and year ended December 31, 2023 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 110,000 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 19,000 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 469,000 patients 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: 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; 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. | 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) | |||||||||||||||
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net service revenue | $ | 570,788 | $ | 562,064 | $ | 2,236,382 | $ | 2,223,199 | |||||||
| Operating expenses: | |||||||||||||||
| Cost of service, inclusive of depreciation | 321,416 | 317,167 | 1,245,509 | 1,260,425 | |||||||||||
| General and administrative expenses: | |||||||||||||||
| Salaries and benefits | 140,603 | 132,003 | 521,529 | 508,791 | |||||||||||
| Non-cash compensation | 7,114 | 570 | 26,082 | 16,560 | |||||||||||
| Merger-related expenses | 11,521 | — | 36,672 | — | |||||||||||
| Depreciation and amortization | 4,143 | 5,230 | 17,747 | 24,935 | |||||||||||
| Investment impairment | — | — | — | 3,009 | |||||||||||
| Other | 51,982 | 60,856 | 232,449 | 228,707 | |||||||||||
| Total operating expenses | 536,779 | 515,826 | 2,079,988 | 2,042,427 | |||||||||||
| Operating income | 34,009 | 46,238 | 156,394 | 180,772 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 818 | 70 | 3,270 | 178 | |||||||||||
| Interest expense | (8,234 | ) | (5,781 | ) | (31,274 | ) | (22,228 | ) | |||||||
| Equity in earnings (loss) from equity method investments | 1,394 | 397 | 10,760 | (45 | ) | ||||||||||
| Merger termination fee | — | — | (106,000 | ) | — | ||||||||||
| Miscellaneous, net | 1,211 | 412 | 6,473 | 1,567 | |||||||||||
| Total other expense, net | (4,811 | ) | (4,902 | ) | (116,771 | ) | (20,528 | ) | |||||||
| Income before income taxes | 29,198 | 41,336 | 39,623 | 160,244 | |||||||||||
| Income tax expense | (10,178 | ) | (9,790 | ) | (50,559 | ) | (42,545 | ) | |||||||
| Net income (loss) | 19,020 | 31,546 | (10,936 | ) | 117,699 | ||||||||||
| Net loss attributable to noncontrolling interests | 302 | 171 | 1,189 | 910 | |||||||||||
| Net income (loss) attributable to Amedisys, Inc. | $ | 19,322 | $ | 31,717 | $ | (9,747 | ) | $ | 118,609 | ||||||
| Basic earnings per common share: | |||||||||||||||
| Net income (loss) attributable to Amedisys, Inc. common stockholders | $ | 0.59 | $ | 0.98 | $ | (0.30 | ) | $ | 3.65 | ||||||
| Weighted average shares outstanding | 32,635 | 32,511 | 32,599 | 32,517 | |||||||||||
| Diluted earnings per common share: | |||||||||||||||
| Net income (loss) attributable to Amedisys, Inc. common stockholders | $ | 0.59 | $ | 0.97 | $ | (0.30 | ) | $ | 3.63 | ||||||
| Weighted average shares outstanding | 32,913 | 32,602 | 32,599 | 32,653 | |||||||||||
| AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) | |||||||
| As of December 31, | |||||||
| 2023 | 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 126,450 | $ | 40,540 | |||
| Restricted cash | 12,413 | 13,593 | |||||
| Patient accounts receivable | 313,373 | 296,785 | |||||
| Prepaid expenses | 14,639 | 11,628 | |||||
| Other current assets | 30,060 | 26,415 | |||||
| Total current assets | 496,935 | 388,961 | |||||
| Property and equipment, net of accumulated depreciation of | 41,845 | 16,026 | |||||
| Operating lease right of use assets | 88,939 | 102,856 | |||||
| Goodwill | 1,244,679 | 1,287,399 | |||||
| Intangible assets, net of accumulated amortization of | 102,675 | 101,167 | |||||
| Other assets | 85,097 | 79,836 | |||||
| Total assets | $ | 2,060,170 | $ | 1,976,245 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 28,237 | $ | 43,735 | |||
| Payroll and employee benefits | 136,835 | 125,387 | |||||
| Accrued expenses | 140,049 | 137,390 | |||||
| Termination fee paid by UnitedHealth Group | 106,000 | — | |||||
| Current portion of long-term obligations | 36,314 | 15,496 | |||||
| Current portion of operating lease liabilities | 26,286 | 33,521 | |||||
| Total current liabilities | 473,721 | 355,529 | |||||
| Long-term obligations, less current portion | 361,862 | 419,420 | |||||
| Operating lease liabilities, less current portion | 62,751 | 69,504 | |||||
| Deferred income tax liabilities | 40,635 | 20,411 | |||||
| Other long-term obligations | 1,418 | 4,808 | |||||
| Total liabilities | 940,387 | 869,672 | |||||
| Equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 38 | 38 | |||||
| Additional paid-in capital | 787,177 | 755,063 | |||||
| Treasury stock at cost, 5,463,847 and 5,379,721 shares of common stock | (468,626 | ) | (461,200 | ) | |||
| Retained earnings | 747,925 | 757,672 | |||||
| Total Amedisys, Inc. stockholders’ equity | 1,066,514 | 1,051,573 | |||||
| Noncontrolling interests | 53,269 | 55,000 | |||||
| Total equity | 1,119,783 | 1,106,573 | |||||
| Total liabilities and equity | $ | 2,060,170 | $ | 1,976,245 | |||
| AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING (Amounts in thousands, except statistical information) | |||||||||||||||
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Cash Flows from Operating Activities: | |||||||||||||||
| Net income (loss) | $ | 19,020 | $ | 31,546 | $ | (10,936 | ) | $ | 117,699 | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization (inclusive of depreciation included in cost of service) | 5,891 | 5,230 | 23,847 | 24,935 | |||||||||||
| Non-cash compensation | 9,400 | 570 | 29,024 | 16,560 | |||||||||||
| Amortization and impairment of operating lease right of use assets | 8,569 | 11,247 | 33,996 | 46,029 | |||||||||||
| (Gain) loss on disposal of property and equipment | (27 | ) | 12 | 319 | 519 | ||||||||||
| Deferred income taxes | 5,238 | 4,346 | 20,655 | 23,377 | |||||||||||
| Loss on personal care divestiture | — | — | 2,186 | — | |||||||||||
| Merger termination fee | — | — | 106,000 | — | |||||||||||
| Equity in (earnings) loss from equity method investments | (1,394 | ) | (397 | ) | (10,760 | ) | 45 | ||||||||
| Amortization of deferred debt issuance costs | 248 | 248 | 991 | 991 | |||||||||||
| Return on equity method investments | 764 | 1,365 | 5,073 | 5,163 | |||||||||||
| Investment impairment | — | — | — | 3,009 | |||||||||||
| Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||||||||||
| Patient accounts receivable | 6,207 | 4,036 | (26,727 | ) | (14,230 | ) | |||||||||
| Other current assets | 8,796 | 16,404 | (6,638 | ) | (3,525 | ) | |||||||||
| Operating lease right of use assets | (983 | ) | (919 | ) | (3,786 | ) | (3,242 | ) | |||||||
| Other assets | (84 | ) | 155 | 189 | 438 | ||||||||||
| Accounts payable | (6,977 | ) | (992 | ) | (15,816 | ) | 4,894 | ||||||||
| Accrued expenses | 13,354 | (12,592 | ) | 23,694 | (39,382 | ) | |||||||||
| Other long-term obligations | (234 | ) | (9,065 | ) | (3,390 | ) | (8,822 | ) | |||||||
| Operating lease liabilities | (7,477 | ) | (10,311 | ) | (30,733 | ) | (41,175 | ) | |||||||
| Net cash provided by operating activities | 60,311 | 40,883 | 137,188 | 133,283 | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||||||
| Proceeds from the sale of deferred compensation plan assets | 29 | 163 | 54 | 252 | |||||||||||
| Proceeds from the sale of property and equipment | 36 | — | 136 | 66 | |||||||||||
| Purchases of property and equipment | (1,892 | ) | (1,827 | ) | (5,620 | ) | (6,165 | ) | |||||||
| Investments in technology assets | (212 | ) | (202 | ) | (7,093 | ) | (1,050 | ) | |||||||
| Investment in equity method investee | — | — | — | (637 | ) | ||||||||||
| Purchase of cost method investment | — | — | — | (15,000 | ) | ||||||||||
| Return of investment | — | — | 150 | — | |||||||||||
| Proceeds from personal care divestiture | — | — | 47,787 | — | |||||||||||
| Acquisitions of businesses, net of cash acquired | — | — | (350 | ) | (71,952 | ) | |||||||||
| Net cash (used in) provided by investing activities | (2,039 | ) | (1,866 | ) | 35,064 | (94,486 | ) | ||||||||
| Cash Flows from Financing Activities: | |||||||||||||||
| Proceeds from issuance of stock upon exercise of stock options | — | 1,226 | 100 | 2,304 | |||||||||||
| Proceeds from issuance of stock to employee stock purchase plan | — | 991 | 2,602 | 3,848 | |||||||||||
| Shares withheld to pay taxes on non-cash compensation | (2,116 | ) | (32 | ) | (6,529 | ) | (7,981 | ) | |||||||
| Noncontrolling interest contributions | 220 | 1,401 | 1,452 | 3,501 | |||||||||||
| Noncontrolling interest distributions | (259 | ) | (136 | ) | (1,873 | ) | (1,561 | ) | |||||||
| Proceeds from sale of noncontrolling interest | — | 1,876 | — | 5,817 | |||||||||||
| Purchase of noncontrolling interest | — | — | (800 | ) | — | ||||||||||
| Proceeds from borrowings under revolving line of credit | — | 50,500 | 23,000 | 534,500 | |||||||||||
| Repayments of borrowings under revolving line of credit | — | (69,000 | ) | (23,000 | ) | (534,500 | ) | ||||||||
| Principal payments of long-term obligations | (8,900 | ) | (3,170 | ) | (76,013 | ) | (13,296 | ) | |||||||
| Purchase of company stock | — | — | — | (17,351 | ) | ||||||||||
| Payment of accrued contingent consideration | (2,370 | ) | — | (6,461 | ) | (5,714 | ) | ||||||||
| Net cash used in financing activities | (13,425 | ) | (16,344 | ) | (87,522 | ) | (30,433 | ) | |||||||
| Net increase in cash, cash equivalents and restricted cash | 44,847 | 22,673 | 84,730 | 8,364 | |||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 94,016 | 31,460 | 54,133 | 45,769 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 138,863 | $ | 54,133 | $ | 138,863 | $ | 54,133 | |||||||
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Supplemental Disclosures of Cash Flow Information: | |||||||||||||||
| Cash paid for interest | $ | 7,888 | $ | 5,786 | $ | 29,766 | $ | 14,939 | |||||||
| Cash paid for Infinity ZPIC interest | $ | — | $ | 1,211 | $ | — | $ | 12,755 | |||||||
| Cash paid for income taxes, net of refunds received | $ | 4,809 | $ | 431 | $ | 29,127 | $ | 24,013 | |||||||
| Supplemental Disclosures of Non-Cash Activity: | |||||||||||||||
| Accrued contingent consideration | $ | — | $ | — | $ | — | $ | 19,195 | |||||||
| Noncontrolling interest contribution | $ | — | $ | — | $ | — | $ | 8,900 | |||||||
| Days revenue outstanding (1) | 47.7 | 46.1 | 47.7 | 46.1 | |||||||||||
(1) Our calculation of days revenue outstanding at December 31, 2023 and 2022 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended December 31, 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 December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions)(6): | |||||||
| Medicare | $ | 221.1 | $ | 224.8 | |||
| Non-Medicare | 137.8 | 120.1 | |||||
| Net service revenue | 358.9 | 344.9 | |||||
| Cost of service, inclusive of depreciation | 208.0 | 197.3 | |||||
| Gross margin | 150.9 | 147.6 | |||||
| General and administrative expenses | 92.8 | 90.0 | |||||
| Depreciation and amortization | 1.9 | 0.7 | |||||
| Operating income | $ | 56.2 | $ | 56.9 | |||
| Same Store Growth(1): | |||||||
| Medicare revenue | (1 | %) | (6 | %) | |||
| Non-Medicare revenue | 15 | % | 8 | % | |||
| Total admissions | 7 | % | 5 | % | |||
| Total volume(2) | 5 | % | 1 | % | |||
| Key Statistical Data - Total(3)(6): | |||||||
| Admissions | 101,809 | 95,006 | |||||
| Recertifications | 44,893 | 44,670 | |||||
| Total volume | 146,702 | 139,676 | |||||
| Medicare completed episodes | 73,892 | 76,357 | |||||
| Average Medicare revenue per completed episode(4) | $ | 2,997 | $ | 2,995 | |||
| Medicare visits per completed episode(5) | 12.2 | 12.6 | |||||
| Visiting clinician cost per visit | $ | 108.64 | $ | 104.12 | |||
| Clinical manager cost per visit | 12.12 | 11.77 | |||||
| Total cost per visit | $ | 120.76 | $ | 115.89 | |||
| Visits | 1,721,985 | 1,702,334 | |||||
| For the Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions)(6): | |||||||
| Medicare | $ | 874.2 | $ | 896.5 | |||
| Non-Medicare | 529.4 | 465.2 | |||||
| Net service revenue | 1,403.6 | 1,361.7 | |||||
| Cost of service, inclusive of depreciation | 801.1 | 773.9 | |||||
| Gross margin | 602.5 | 587.8 | |||||
| General and administrative expenses | 363.5 | 351.1 | |||||
| Depreciation and amortization | 6.0 | 4.0 | |||||
| Operating income | $ | 233.0 | $ | 232.7 | |||
| Same Store Growth(1): | |||||||
| Medicare revenue | (3 | %) | (5 | %) | |||
| Non-Medicare revenue | 13 | % | 2 | % | |||
| Total admissions | 6 | % | 3 | % | |||
| Total volume(2) | 4 | % | — | % | |||
| Key Statistical Data - Total(3)(6): | |||||||
| Admissions | 399,752 | 376,399 | |||||
| Recertifications | 179,719 | 178,445 | |||||
| Total volume | 579,471 | 554,844 | |||||
| Medicare completed episodes | 295,017 | 305,455 | |||||
| Average Medicare revenue per completed episode(4) | $ | 2,998 | $ | 3,013 | |||
| Medicare visits per completed episode(5) | 12.4 | 12.9 | |||||
| Visiting clinician cost per visit | $ | 103.31 | $ | 100.03 | |||
| Clinical manager cost per visit | 11.58 | 11.19 | |||||
| Total cost per visit | $ | 114.89 | $ | 111.22 | |||
| Visits | 6,972,929 | 6,958,541 | |||||
(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 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 for the period May 1, 2020 through March 31, 2022 and the reinstatement of sequestration at
(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 December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions): | |||||||
| Medicare | $ | 194.2 | $ | 186.3 | |||
| Non-Medicare | 11.8 | 11.3 | |||||
| Net service revenue | 206.0 | 197.6 | |||||
| Cost of service, inclusive of depreciation | 107.8 | 103.3 | |||||
| Gross margin | 98.2 | 94.3 | |||||
| General and administrative expenses | 48.9 | 51.3 | |||||
| Depreciation and amortization | 0.9 | 0.6 | |||||
| Operating income | $ | 48.4 | $ | 42.4 | |||
| Same Store Growth(1): | |||||||
| Medicare revenue | 4 | % | (4 | %) | |||
| Hospice admissions | (3 | %) | (8 | %) | |||
| Average daily census | — | % | (2 | %) | |||
| Key Statistical Data - Total(2): | |||||||
| Hospice admissions | 12,226 | 12,629 | |||||
| Average daily census | 12,859 | 12,878 | |||||
| Revenue per day, net | $ | 174.10 | $ | 166.82 | |||
| Cost of service per day | $ | 91.18 | $ | 87.21 | |||
| Average discharge length of stay | 97 | 94 | |||||
| For the Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions): | |||||||
| Medicare | $ | 754.0 | $ | 744.1 | |||
| Non-Medicare | 44.8 | 43.7 | |||||
| Net service revenue | 798.8 | 787.8 | |||||
| Cost of service, inclusive of depreciation | 412.2 | 426.5 | |||||
| Gross margin | 386.6 | 361.3 | |||||
| General and administrative expenses | 193.1 | 203.3 | |||||
| Depreciation and amortization | 3.0 | 2.3 | |||||
| Operating income | $ | 190.5 | $ | 155.7 | |||
| Same Store Growth(1): | |||||||
| Medicare revenue | 1 | % | (1 | %) | |||
| Hospice admissions | (5 | %) | (1 | %) | |||
| Average daily census | (1 | %) | (1 | %) | |||
| Key Statistical Data - Total(2): | |||||||
| Hospice admissions | 49,587 | 52,656 | |||||
| Average daily census | 12,863 | 13,091 | |||||
| Revenue per day, net | $ | 170.14 | $ | 164.88 | |||
| Cost of service per day | $ | 87.80 | $ | 89.26 | |||
| Average discharge length of stay | 93 | 91 | |||||
(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 December 31, | |||||
| 2023 | 2022 | ||||
| Financial Information (in millions): | |||||
| Medicare | $ | — | $ | — | |
| Non-Medicare | — | 15.9 | |||
| Net service revenue | — | 15.9 | |||
| Cost of service, inclusive of depreciation | — | 12.3 | |||
| Gross margin | — | 3.6 | |||
| General and administrative expenses | — | 2.3 | |||
| Depreciation and amortization | — | — | |||
| Operating income | $ | — | $ | 1.3 | |
| Key Statistical Data - Total: | |||||
| Billable hours | — | 453,644 | |||
| Clients served | — | 7,720 | |||
| Shifts | — | 193,220 | |||
| Revenue per hour | $ | — | $ | 35.07 | |
| Revenue per shift | $ | — | $ | 82.34 | |
| Hours per shift | — | 2.3 | |||
| For the Years Ended December 31, | |||||
| 2023 | 2022 | ||||
| Financial Information (in millions): | |||||
| Medicare | $ | — | $ | — | |
| Non-Medicare | 15.0 | 61.4 | |||
| Net service revenue | 15.0 | 61.4 | |||
| Cost of service, inclusive of depreciation | 11.1 | 46.7 | |||
| Gross margin | 3.9 | 14.7 | |||
| General and administrative expenses | 2.3 | 9.2 | |||
| Depreciation and amortization | — | 0.1 | |||
| Operating income | $ | 1.6 | $ | 5.4 | |
| Key Statistical Data - Total: | |||||
| Billable hours | 440,464 | 1,851,563 | |||
| Clients served | 7,892 | 10,448 | |||
| Shifts | 191,379 | 791,596 | |||
| Revenue per hour | $ | 33.97 | $ | 33.15 | |
| Revenue per shift | $ | 78.19 | $ | 77.55 | |
| 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 December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions)(1): | |||||||
| Medicare | $ | — | $ | — | |||
| Non-Medicare | 5.9 | 3.6 | |||||
| Net service revenue | 5.9 | 3.6 | |||||
| Cost of service, inclusive of depreciation | 5.6 | 4.3 | |||||
| Gross margin | 0.3 | (0.7 | ) | ||||
| General and administrative expenses | 5.4 | 5.0 | |||||
| Depreciation and amortization | 0.8 | 0.9 | |||||
| Operating loss | $ | (5.9 | ) | $ | (6.6 | ) | |
| Key Statistical Data - Total: | |||||||
| Full risk admissions | 105 | 108 | |||||
| Limited risk admissions | 600 | 374 | |||||
| Total admissions | 705 | 482 | |||||
| Full risk revenue per episode | $ | 10,919 | $ | 12,282 | |||
| Limited risk revenue per episode | $ | 6,901 | $ | 5,545 | |||
| Number of admitting joint ventures | 10 | 8 | |||||
| For the Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Financial Information (in millions)(1): | |||||||
| Medicare | $ | — | $ | — | |||
| Non-Medicare | 19.0 | 12.3 | |||||
| Net service revenue | 19.0 | 12.3 | |||||
| Cost of service, inclusive of depreciation | 21.1 | 13.3 | |||||
| Gross margin | (2.1 | ) | (1.0 | ) | |||
| General and administrative expenses | 20.4 | 19.7 | |||||
| Depreciation and amortization | 3.1 | 3.3 | |||||
| Investment impairment | — | 3.0 | |||||
| Operating loss | $ | (25.6 | ) | $ | (27.0 | ) | |
| Key Statistical Data - Total: | |||||||
| Full risk admissions | 648 | 448 | |||||
| Limited risk admissions | 1,804 | 1,142 | |||||
| Total admissions | 2,452 | 1,590 | |||||
| Full risk revenue per episode | $ | 10,565 | $ | 11,273 | |||
| Limited risk revenue per episode | $ | 6,187 | $ | 5,553 | |||
| Number of admitting joint ventures | 10 | 8 | |||||
(1) Prior year has been recast to conform to the current year presentation.
Segment Information - Corporate
| For the Three-Month Periods Ended December 31, | |||||
| 2023 | 2022 | ||||
| Financial Information (in millions)(1): | |||||
| General and administrative expenses | $ | 64.1 | $ | 44.7 | |
| Depreciation and amortization | 0.6 | 3.0 | |||
| Total operating expenses | $ | 64.7 | $ | 47.7 | |
| For the Years Ended December 31, | |||||
| 2023 | 2022 | ||||
| Financial Information (in millions)(1): | |||||
| General and administrative expenses | $ | 237.5 | $ | 170.8 | |
| Depreciation and amortization | 5.6 | 15.2 | |||
| Total operating expenses | $ | 243.1 | $ | 186.0 | |
(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 December 31, | For the Years Ended December 31, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net income (loss) attributable to Amedisys, Inc. | $ | 19,322 | $ | 31,717 | $ | (9,747 | ) | $ | 118,609 | ||||
| Add: | |||||||||||||
| Income tax expense | 10,178 | 9,790 | 50,559 | 42,545 | |||||||||
| Interest expense, net | 7,416 | 5,711 | 28,004 | 22,050 | |||||||||
| Depreciation and amortization | 5,891 | 5,230 | 23,847 | 24,935 | |||||||||
| Certain items(1) | 13,846 | 7,441 | 154,344 | 58,361 | |||||||||
| Interest component of certain items(1) | — | — | — | (4,445 | ) | ||||||||
| Adjusted EBITDA(2)(6) | $ | 56,653 | $ | 59,889 | $ | 247,007 | $ | 262,055 | |||||
Adjusted Net Service Revenue Reconciliation:
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Net service revenue | $ | 570,788 | $ | 562,064 | $ | 2,236,382 | $ | 2,223,199 | |||
| Add: | |||||||||||
| Certain items(1) | — | — | — | 9,305 | |||||||
| Adjusted net service revenue(3)(6) | $ | 570,788 | $ | 562,064 | $ | 2,236,382 | $ | 2,232,504 | |||
Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net income (loss) attributable to Amedisys, Inc. | $ | 19,322 | $ | 31,717 | $ | (9,747 | ) | $ | 118,609 | |||
| Add: | ||||||||||||
| Certain items(1) | 11,500 | 6,251 | 150,384 | 44,838 | ||||||||
| Adjusted net income attributable to Amedisys, Inc.(4)(6) | $ | 30,822 | $ | 37,968 | $ | 140,637 | $ | 163,447 | ||||
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation:
| For the Three-Month Periods Ended December 31, | For the Years Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share | $ | 0.59 | $ | 0.97 | $ | (0.30 | ) | $ | 3.63 | |||
| Add: | ||||||||||||
| Certain items(1) | 0.35 | 0.19 | 4.60 | 1.37 | ||||||||
| Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6) | $ | 0.94 | $ | 1.16 | $ | 4.30 | $ | 5.01 | ||||
(1) The following details the certain items for the three-month periods and years ended December 31, 2023 and 2022:
Certain Items:
| For the Three-Month Period Ended December 31, 2023 | For the Year Ended December 31, 2023 | |||||
| (Income) Expense | (Income) Expense | |||||
| Certain Items Impacting Cost of Service, Inclusive of Depreciation: | ||||||
| Clinical optimization and reorganization costs | 199 | 595 | ||||
| Certain Items Impacting General and Administrative Expenses: | ||||||
| Acquisition and integration costs | 180 | 3,286 | ||||
| CEO transition | 661 | 5,940 | ||||
| Merger-related expenses | 11,521 | 36,672 | ||||
| Clinical optimization and reorganization costs | 1,819 | 6,022 | ||||
| Personal care divestiture | — | 525 | ||||
| Certain Items Impacting Total Other Income (Expense): | ||||||
| Other (income) expense, net* | (534 | ) | 101,304 | |||
| Total | $ | 13,846 | $ | 154,344 | ||
| Net of tax | $ | 11,500 | $ | 150,384 | ||
| Diluted EPS | $ | 0.35 | $ | 4.60 | ||
*Includes
| For the Three-Month Period Ended December 31, 2022 | For the Year Ended December 31, 2022 | |||||
| (Income) Expense | (Income) Expense | |||||
| Certain Items Impacting Net Service Revenue: | ||||||
| Contingency accrual | $ | — | $ | 9,305 | ||
| Certain Items Impacting Cost of Service: | ||||||
| COVID-19 costs | 1,510 | 8,747 | ||||
| Clinical optimization and reorganization costs | 33 | 1,382 | ||||
| Fuel supplement | 261 | 3,576 | ||||
| Integration costs | — | 1,712 | ||||
| Certain Items Impacting General and Administrative Expenses: | ||||||
| Acquisition and integration costs | 1,443 | 11,298 | ||||
| COVID-19 costs | 107 | 503 | ||||
| CEO transition | — | 3,500 | ||||
| Severance | 993 | 993 | ||||
| Legal fees - non-routine | — | 241 | ||||
| Clinical optimization and reorganization costs | 2,247 | 5,792 | ||||
| Legal settlement | — | (1,058 | ) | |||
| Fuel supplement | 33 | 251 | ||||
| Investment impairment | — | 3,009 | ||||
| Certain Items Impacting Total Other Income (Expense): | ||||||
| Interest component of certain items | — | 4,445 | ||||
| Other expense, net | 814 | 4,665 | ||||
| Total | $ | 7,441 | $ | 58,361 | ||
| Net of tax | $ | 6,251 | $ | 44,838 | ||
| Diluted EPS | $ | 0.19 | $ | 1.37 | ||
(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 (loss) 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.
FAQ
What was the net service revenue for Amedisys, Inc. in Q4 2023?
What caused the net loss for Amedisys, Inc. in full year 2023?
How did adjusted net income per diluted share change in Q4 2023 compared to 2022?
Why will Amedisys not conduct a quarterly earnings call for Q4 2023?
