Amedisys Reports Third Quarter 2022 Financial Results and Updates 2022 Guidance

Rhea-AI Summary

Amedisys, Inc. (NASDAQ: AMED) reported Q3 2022 financial results with a net service revenue increase to $558 million, but net income dropped to $25.6 million from $45 million in Q3 2021. Adjusted EBITDA also fell to $61.5 million. Year-to-date results showed a revenue rise to $1.66 billion, yet net income decreased to $86.9 million compared to $175 million in 2021. The company anticipates adjusted net service revenue between $2.224 billion and $2.230 billion for 2022. Amedisys is focused on partnerships to drive growth despite facing operational challenges.

Positive

• Net service revenue increased by $4.5 million to $558 million in Q3 2022.
• Partnership with CVS/Aetna for innovative case rate arrangement.
• Comprehensive care at home partnership with The University of Arkansas.
• Updated guidance for adjusted net service revenue estimated between $2.224 billion and $2.230 billion.

Negative

• Net income dropped from $45 million in Q3 2021 to $25.6 million in Q3 2022.
• Adjusted EBITDA decreased to $61.5 million from $72.4 million year-over-year.
• Year-to-date net income decreased from $175 million in 2021 to $86.9 million.

BATON ROUGE, La., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month periods ended September 30, 2022.

Three-Month Periods Ended September 30, 2022 and 2021

• Net service revenue increased $4.5 million to $558.0 million compared to $553.5 million in 2021.
• Net income attributable to Amedisys, Inc. of $25.6 million compared to $45.0 million in 2021.
• Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $1.37 in 2021.
  

Adjusted Quarterly Results*

• Adjusted EBITDA of $61.5 million compared to $72.4 million in 2021.
• Adjusted net service revenue of $558.9 million compared to $553.5 million in 2021.
• Adjusted net income attributable to Amedisys, Inc. of $37.4 million compared to $50.5 million in 2021.
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.15 compared to $1.53 in 2021.

Nine-Month Periods Ended September 30, 2022 and 2021

• Net service revenue increased $6.3 million to $1,661.1 million compared to $1,654.8 million in 2021.
• Net income attributable to Amedisys, Inc. of $86.9 million compared to $175.0 million in 2021.
• Net income attributable to Amedisys, Inc. per diluted share of $2.66 compared to $5.30 in 2021.
  

Adjusted Year to Date Results*

• Adjusted EBITDA of $202.2 million compared to $234.8 million in 2021.
• Adjusted net service revenue of $1,670.4 million compared to $1,648.3 million in 2021.
• Adjusted net income attributable to Amedisys, Inc. of $125.5 million compared to $157.5 million in 2021.
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.84 compared to $4.77 in 2021.

* See pages 3 and 15 - 18 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Chris Gerard, President and Chief Executive Officer stated, “Although we continue to be impacted by a few headwinds, most of which we believe to be short-term in nature, our enthusiasm for the future outlook of Amedisys has never been stronger. As we await the final rule in Home Health, we have been making progress on a number of key initiatives and partnerships that will help to drive future growth at Amedisys. During the quarter, we signed an innovative case rate arrangement with one of the largest Medicare Advantage health plans in the US – CVS/Aetna. I am extremely excited by this partnership as it shows how more forward thinking payors view home health and the quality of care we provide to their members. We look forward to expanding these types of contracting relationships across more of our business in the coming quarters. We also signed a comprehensive care at home partnership with The University of Arkansas for Medical Science that will offer patients the full spectrum of Amedisys and Contessa services including Hospital at Home, SNF at Home, Primary Care at Home and Home Health. This partnership provides a new standard of care delivery, spanning across the full continuum of at-home care, and represents the first partnership in which both Contessa and Amedisys services have been in scope at the outset. We will continue to seek out and invest in opportunities with similar health systems looking for an operating partner to build out a differentiated and integrated home care offering utilizing this full suite of services. In order to unlock our full growth potential, we know that clinical labor will be key. The clinical labor market has been more challenging than ever before, but Amedisys is superbly positioned to increase our clinical capacity as we decrease our turnover by focusing on what matters most to our clinicians. We are enhancing our benefit packages in 2023, working on flexible scheduling and focusing on centralization and automation to remove the administrative load for both our care givers and our care center leadership. I am confident that as we move past the chop of 2022 and into 2023, Amedisys will return to consistency in performance and industry leading results. Finally, a heartfelt thank you to all of the Amedisys family for your continued hard work, perseverance and compassion for our patients.”

Updated 2022 Guidance

We are updating our previously issued guidance:

• Adjusted net service revenue is anticipated to be in the range of $2.224 billion to $2.230 billion.
• Adjusted EBITDA is anticipated to be in the range of $253 million to $258 million.
• Adjusted diluted earnings per share is anticipated to be in the range of $4.82 to $4.93 based on an estimated 32.7 million shares outstanding.
  

This guidance excludes the effects of any future acquisitions and potential share repurchases, if any are made. COVID-19 has impacted the operating metrics typically used to forecast both growth and cost assumptions for both core Amedisys and Contessa. We are basing our guidance on our current operating environment. COVID-19 continues to evolve in its disruptions to the healthcare systems and the economy. Any future regulations or government interventions, extension of the public health emergency, spike in clinicians and business development staff on quarantine, staffing shortages, reduction in elective procedures, change in patient behavior and further decline in senior living occupancy could impact our ability to achieve this guidance.

We urge caution in considering the current trends and 2022 guidance disclosed in this press release. The home health, hospice, personal care and high acuity 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, 2021, 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 27, 2022, at 11:00 a.m. Eastern Time to discuss its third quarter results. To participate on the conference call, please call before 11:00 a.m. Eastern Time to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through November 27, 2022 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13733130.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted 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, personal care and high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care, inpatient hospital, palliative and skilled nursing facility ("SNF") care in their homes, 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 90,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. With approximately 21,000 employees in 547 care centers within 36 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 445,000 patients 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: 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; the impact of current and proposed federal, state and local vaccine mandates; staffing shortages driven by the competitive labor market; 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 our patients, the episodic versus non-episodic mix of our payors or payment methodologies; changes in estimates and judgments associated with critical accounting policies; our ability to maintain or establish new patient referral sources; our ability to consistently provide high-quality care; our ability to attract and retain qualified personnel; our ability to keep our patients and employees safe; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to integrate, manage and keep our information systems secure; the impact of inflation; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; 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 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,
		2022				2021				2022				2021
Net service revenue	$	557,988			$	553,485			$	1,661,135			$	1,654,795
Other operating income		—				(4	)			—				13,300
Cost of service, excluding depreciation and amortization		322,227				310,294				943,258				916,188
General and administrative expenses:
Salaries and benefits		125,550				119,373				376,788				349,533
Non-cash compensation		3,495				4,397				15,990				17,860
Other		59,299				55,158				167,851				158,995
Depreciation and amortization		5,477				7,487				19,705				21,763
Investment impairment		3,009				—				3,009				—
Operating expenses		519,057				496,709				1,526,601				1,464,339
Operating income		38,931				56,772				134,534				203,756
Other income (expense):
Interest income		59				—				108				49
Interest expense		(4,963	)			(2,730	)			(16,447	)			(6,734	)
Equity in earnings (loss) from equity method investments		302				1,444				(442	)			3,932
Gain on equity method investments		—				—				—				31,092
Miscellaneous, net		491				490				1,155				1,253
Total other (expense) income, net		(4,111	)			(796	)			(15,626	)			29,592
Income before income taxes		34,820				55,976				118,908				233,348
Income tax expense		(9,417	)			(10,731	)			(32,755	)			(57,192	)
Net income		25,403				45,245				86,153				176,156
Net loss (income) attributable to noncontrolling interests		239				(239	)			739				(1,131	)
Net income attributable to Amedisys, Inc.	$	25,642			$	45,006			$	86,892			$	175,025
Basic earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.79			$	1.38			$	2.67			$	5.36
Weighted average shares outstanding		32,482				32,607				32,519				32,658
Diluted earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.79			$	1.37			$	2.66			$	5.30
Weighted average shares outstanding		32,616				32,899				32,680				33,021

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

	September 30, 2022 (Unaudited)				December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	17,956			$	42,694
Restricted cash		13,504				3,075
Patient accounts receivable		302,470				274,961
Prepaid expenses		17,011				10,356
Other current assets		37,839				25,598
Total current assets		388,780				356,684
Property and equipment, net of accumulated depreciation of $102,407 and $96,937		17,248				18,435
Operating lease right of use assets		105,843				101,257
Goodwill		1,285,455				1,196,090
Intangible assets, net of accumulated amortization of $11,891 and $19,900		103,678				111,190
Deferred income tax assets		—				289
Other assets		81,123				73,023
Total assets	$	1,982,127			$	1,856,968
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	45,527			$	38,217
Payroll and employee benefits		145,073				141,001
Accrued expenses		130,100				150,836
Current portion of long-term obligations		12,628				12,995
Current portion of operating lease liabilities		33,872				31,233
Total current liabilities		367,200				374,282
Long-term obligations, less current portion		443,431				432,075
Operating lease liabilities, less current portion		72,030				69,309
Deferred income tax liabilities		15,983				—
Other long-term obligations		13,873				4,979
Total liabilities		912,517				880,645
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; 37,852,059 and 37,674,868 shares issued; and 32,479,475 and 32,509,969 shares outstanding		38				38
Additional paid-in capital		750,914				728,118
Treasury stock, at cost 5,372,584 and 5,164,899 shares of common stock		(461,168	)			(435,868	)
Retained earnings		725,955				639,063
Total Amedisys, Inc. stockholders’ equity		1,015,739				931,351
Noncontrolling interests		53,871				44,972
Total equity		1,069,610				976,323
Total liabilities and equity	$	1,982,127			$	1,856,968

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,
		2022				2021				2022				2021
Cash Flows from Operating Activities:
Net income	$	25,403			$	45,245			$	86,153			$	176,156
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		5,477				7,487				19,705				21,763
Non-cash compensation		3,495				4,397				15,990				17,860
Amortization and impairment of operating lease right of use assets		12,319				10,479				34,782				30,181
(Gain) loss on disposal of property and equipment		(24	)			(72	)			507				(64	)
Gain on equity method investments		—				—				—				(31,092	)
Deferred income taxes		13,028				12,013				19,031				34,729
Equity in (earnings) loss from equity method investments		(302	)			(1,444	)			442				(3,932	)
Amortization of deferred debt issuance costs/debt discount		248				237				743				669
Return on equity method investments		1,370				1,585				3,798				4,268
Investment impairment		3,009				—				3,009				—
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		3,078				5,149				(18,266	)			(17,638	)
Other current assets		(15,461	)			(9,779	)			(19,929	)			(6,219	)
Other assets		63				(886	)			283				(938	)
Accounts payable		1,388				5,338				5,886				(1,192	)
Accrued expenses		(56,319	)			(7,736	)			(26,790	)			(9,363	)
Other long-term obligations		466				(49	)			243				(1,785	)
Operating lease liabilities		(10,207	)			(9,417	)			(30,864	)			(27,372	)
Operating lease right of use assets		(661	)			(780	)			(2,323	)			(2,304	)
Net cash (used in) provided by operating activities		(13,630	)			61,767				92,400				183,727
Cash Flows from Investing Activities:
Proceeds from the sale of deferred compensation plan assets		61				101				89				126
Proceeds from the sale of property and equipment		29				98				66				140
Purchases of property and equipment		(1,556	)			(2,244	)			(4,338	)			(5,187	)
Investments in technology assets		(289	)			(147	)			(848	)			(147	)
Investment in equity method investee		(637	)			—				(637	)			—
Purchase of cost method investment		—				—				(15,000	)			—
Acquisitions of businesses, net of cash acquired		1,359				(262,369	)			(71,952	)			(264,872	)
Net cash used in investing activities		(1,033	)			(264,561	)			(92,620	)			(269,940	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		306				1,083				1,078				1,706
Proceeds from issuance of stock to employee stock purchase plan		966				1,061				2,857				3,022
Shares withheld to pay taxes on non-cash compensation		(3,187	)			(9,750	)			(7,949	)			(16,694	)
Noncontrolling interest contributions		1,148				—				2,100				—
Noncontrolling interest distributions		(450	)			(459	)			(1,425	)			(1,253	)
Proceeds from sale of noncontrolling interest		3,941				—				3,941				—
Proceeds from borrowings under term loan		—				290,312				—				290,312
Proceeds from borrowings under revolving line of credit		185,500				111,500				484,000				500,700
Repayments of borrowings under revolving line of credit		(182,000	)			(141,500	)			(465,500	)			(551,700	)
Principal payments of long-term obligations		(3,151	)			(501	)			(10,126	)			(5,893	)
Debt issuance costs		—				(2,792	)			—				(2,792	)
Purchase of company stock		—				(10,805	)			(17,351	)			(84,879	)
Payment of accrued contingent consideration		(5,714	)			—				(5,714	)			—
Provider relief fund advance		—				207				—				(1,465	)
Net cash (used in) provided by financing activities		(2,641	)			238,356				(14,089	)			131,064
Net (decrease) increase in cash, cash equivalents and restricted cash		(17,304	)			35,562				(14,309	)			44,851
Cash, cash equivalents and restricted cash at beginning of period		48,764				92,646				45,769				83,357
Cash, cash equivalents and restricted cash at end of period	$	31,460			$	128,208			$	31,460			$	128,208
	For the Three-Month Periods Ended September 30,								For the Nine-Month Periods Ended September 30,
		2022				2021				2022				2021
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	4,664			$	1,565			$	9,153			$	3,479
Cash paid for Infinity ZPIC interest	$	11,544			$	—			$	11,544			$	—
Cash paid for income taxes, net of refunds received	$	605			$	16,815			$	23,582			$	25,482
Cash paid for operating lease liabilities	$	10,868			$	10,197			$	33,187			$	29,676
Cash paid for finance lease liabilities	$	339			$	492			$	1,074			$	1,509
Supplemental Disclosures of Non-Cash Activity:
Right of use assets obtained in exchange for operating lease liabilities	$	10,390			$	14,192			$	36,980			$	34,881
Right of use assets obtained in exchange for finance lease liabilities	$	530			$	287			$	1,846			$	814
Reductions to right of use assets resulting from reductions to operating lease liabilities	$	624			$	279			$	3,387			$	1,183
Reductions to right of use assets resulting from reductions to finance lease liabilities	$	564			$	—			$	564			$	—
Accrued contingent consideration	$	—			$	—			$	19,195			$	—
Noncontrolling interest contribution	$	—			$	—			$	8,900			$	—
Days revenue outstanding (1)		47.3				43.5				47.3				43.5

(1)	Our calculation of days revenue outstanding at September 30, 2022 and 2021 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended September 30, 2022 and 2021, 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,
		2022				2021
Financial Information (in millions):
Medicare	$	222.4			$	228.2
Non-Medicare		114.8				110.4
Net service revenue		337.2				338.6
Cost of service		195.3				190.1
Gross margin		141.9				148.5
Other operating expenses		88.3				82.4
Depreciation and amortization		0.9				1.1
Operating income	$	52.7			$	65.0
Same Store Growth (1):
Medicare revenue		(6	%)			2	%
Non-Medicare revenue		(1	%)			6	%
Total admissions		5	%			1	%
Total volume (2)		1	%			1	%
Key Statistical Data - Total (3):
Admissions		94,992				86,732
Recertifications		44,985				46,919
Total volume		139,977				133,651
Medicare completed episodes		75,891				78,318
Average Medicare revenue per completed episode (4)	$	2,989			$	2,969
Medicare visits per completed episode (5)		12.7				13.8
Visiting clinician cost per visit	$	101.22			$	94.24
Clinical manager cost per visit		11.33				9.85
Total cost per visit	$	112.55			$	104.09
Visits		1,735,015				1,826,505

	For the Nine-Month Periods Ended September 30,
		2022				2021
Financial Information (in millions):
Medicare	$	668.4			$	684.4
Non-Medicare		344.4				332.1
Net service revenue		1,012.8				1,016.5
Other operating income		—				7.3
Cost of service		573.3				563.5
Gross margin		439.5				460.3
Other operating expenses		259.3				243.8
Depreciation and amortization		3.3				3.3
Operating income	$	176.9			$	213.2
Same Store Growth (1):
Medicare revenue		(5	%)			10	%
Non-Medicare revenue		—	%			10	%
Total admissions		2	%			8	%
Total volume (2)		—	%			6	%
Key Statistical Data - Total (3):
Admissions		280,266				265,933
Recertifications		133,555				136,744
Total volume		413,821				402,677
Medicare completed episodes		228,177				232,838
Average Medicare revenue per completed episode (4)	$	3,017			$	2,962
Medicare visits per completed episode (5)		13.0				14.0
Visiting clinician cost per visit	$	98.63			$	91.94
Clinical manager cost per visit		10.87				9.54
Total cost per visit	$	109.50			$	101.48
Visits		5,235,922				5,553,423

(1)	Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)	Total volume includes all admissions and recertifications.
(3)	Total includes acquisitions, start-ups and denovos.
(4)	Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode reflects the suspension of sequestration for the period January 1, 2021 through March 31, 2022 and the reinstatement of sequestration at 1% effective April 1, 2022 and 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.

Segment Information - Hospice

	For the Three-Month Periods Ended September 30,
		2022				2021
Financial Information (in millions):
Medicare	$	187.8			$	187.8
Non-Medicare		10.9				9.7
Net service revenue		198.7				197.5
Cost of service		109.4				107.6
Gross margin		89.3				89.9
Other operating expenses		49.1				49.5
Depreciation and amortization		0.5				0.7
Operating income	$	39.7			$	39.7
Same Store Growth (1):
Medicare revenue		—	%			(1	%)
Hospice admissions		(3	%)			1	%
Average daily census		1	%			(5	%)
Key Statistical Data - Total (2):
Hospice admissions		12,782				13,292
Average daily census		13,314				13,272
Revenue per day, net	$	162.24			$	161.74
Cost of service per day	$	89.36			$	88.06
Average discharge length of stay		92				94

	For the Nine-Month Periods Ended September 30,
		2022				2021
Financial Information (in millions):
Medicare	$	557.8			$	556.2
Non-Medicare		32.4				30.7
Net service revenue		590.2				586.9
Other operating income		—				6.0
Cost of service		323.2				314.4
Gross margin		267.0				278.5
Other operating expenses		152.1				144.4
Depreciation and amortization		1.7				2.0
Operating income	$	113.2			$	132.1
Same Store Growth (1):
Medicare revenue		—	%			—	%
Hospice admissions		1	%			3	%
Average daily census		(1	%)			(4	%)
Key Statistical Data - Total (2):
Hospice admissions		40,027				39,650
Average daily census		13,163				13,282
Revenue per day, net	$	164.24			$	161.87
Cost of service per day	$	89.94			$	86.68
Average discharge length of stay		90				95

(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 denovos.

Segment Information - Personal Care

	For the Three-Month Periods Ended September 30,
		2022			2021
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		16.6			15.9
Net service revenue		16.6			15.9
Cost of service		12.2			11.7
Gross margin		4.4			4.2
Other operating expenses		2.4			2.6
Depreciation and amortization		—			0.1
Operating income	$	2.0		$	1.5
Key Statistical Data - Total:
Billable hours		474,365			558,227
Clients served		7,771			8,697
Shifts		202,638			240,736
Revenue per hour	$	34.98		$	28.44
Revenue per shift	$	81.89		$	65.95
Hours per shift		2.3			2.3

	For the Nine-Month Periods Ended September 30,
		2022			2021
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		45.5			49.9
Net service revenue		45.5			49.9
Other operating income		—			—
Cost of service		34.5			37.4
Gross margin		11.0			12.5
Other operating expenses		6.8			8.8
Depreciation and amortization		0.1			0.2
Operating income	$	4.1		$	3.5
Key Statistical Data - Total:
Billable hours		1,397,919			1,774,965
Clients served		9,530			11,597
Shifts		598,376			759,242
Revenue per hour	$	32.53		$	28.11
Revenue per shift	$	76.00		$	65.71
Hours per shift		2.3			2.3

Segment Information - High Acuity Care

	For the Three-Month Periods Ended September 30,
		2022				2021
Financial Information (in millions):
Medicare	$	1.6			$	—
Non-Medicare		3.9				1.5
Net service revenue		5.5				1.5
Cost of service		5.3				0.9
Gross margin		0.2				0.6
Other operating expenses		8.8				3.9
Depreciation and amortization		0.8				0.5
Investment impairment		3.0				—
Operating loss	$	(12.4	)		$	(3.8	)
Key Statistical Data - Total:
Full risk admissions		130				46
Limited risk admissions		300				188
Total admissions		430				234
Full risk revenue per episode	$	11,615			$	9,191
Limited risk revenue per episode	$	5,580			$	5,524
Number of admitting joint ventures		8				8

	For the Nine-Month Periods Ended September 30,
		2022				2021
Financial Information (in millions):
Medicare	$	3.3			$	—
Non-Medicare		9.3				1.5
Net service revenue		12.6				1.5
Other operating income		—				—
Cost of service		12.3				0.9
Gross margin		0.3				0.6
Other operating expenses		24.7				3.9
Depreciation and amortization		2.4				0.5
Investment impairment		3.0				—
Operating loss	$	(29.8	)		$	(3.8	)
Key Statistical Data - Total:
Full risk admissions		339				46
Limited risk admissions		768				188
Total admissions		1,107				234
Full risk revenue per episode	$	11,018			$	9,191
Limited risk revenue per episode	$	5,556			$	5,524
Number of admitting joint ventures		8				8

Segment Information - Corporate

	For the Three-Month Periods Ended September 30,
		2022			2021
Financial Information (in millions):
Other operating expenses	$	39.8		$	40.5
Depreciation and amortization		3.3			5.1
Total operating expenses	$	43.1		$	45.6

	For the Nine-Month Periods Ended September 30,
		2022			2021
Financial Information (in millions):
Other operating expenses	$	117.7		$	125.5
Depreciation and amortization		12.2			15.8
Total operating expenses	$	129.9		$	141.3

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,
		2022			2021				2022				2021
Net income attributable to Amedisys, Inc.	$	25,642		$	45,006			$	86,892			$	175,025
Add:
Income tax expense		9,417			10,731				32,755				57,192
Interest expense, net		4,904			2,730				16,339				6,685
Depreciation and amortization		5,477			7,487				19,705				21,763
Certain items (1)		15,861			6,858				50,920				(24,440	)
Interest component of certain items (1)		207			(451	)			(4,445	)			(1,437	)
Adjusted EBITDA (2) (7)	$	61,508		$	72,361			$	202,166			$	234,788

Adjusted Net Service Revenue Reconciliation:

	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
		2022			2021			2022			2021
Net service revenue	$	557,988		$	553,485		$	1,661,135		$	1,654,795
Add:
Certain items (1)		931			—			9,305			(6,541	)
Adjusted net service revenue (3) (7)	$	558,919		$	553,485		$	1,670,440		$	1,648,254

Adjusted Other Operating Income Reconciliation:

	For the Three-Month Periods Ended September 30,							For the Nine-Month Periods Ended September 30,
		2022			2021				2022			2021
Other operating income	$	—		$	(4	)		$	—		$	13,300
Add:
Certain items (1)		—			4				—			(13,300	)
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,
		2022			2021			2022			2021
Net income attributable to Amedisys, Inc.	$	25,642		$	45,006		$	86,892		$	175,025
Add:
Certain items (1)		11,740			5,474			38,587			(17,495	)
Adjusted net income attributable to Amedisys, Inc. (5) (7)	$	37,382		$	50,480		$	125,479		$	157,530

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,
		2022			2021			2022			2021
Net income attributable to Amedisys, Inc. common stockholders per diluted share	$	0.79		$	1.37		$	2.66		$	5.30
Add:
Certain items (1)		0.36			0.17			1.18			(0.53	)
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7)	$	1.15		$	1.53		$	3.84		$	4.77

(1)	The following details the certain items for the three and nine-month periods ended September 30, 2022 and 2021:

Certain Items:

	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
Centralization and reorganization costs		1,154				1,349
Fuel supplement		1,962				3,315
Integration costs		311				1,712
Certain Items Impacting Operating Expenses:
Acquisition and integration costs		3,154				9,855
COVID-19 costs		159				396
Executive Board of Directors transition award		—				3,500
Legal fees - non-routine		—				241
Centralization 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

	For the Three-Month Periods Ended September 30, 2021				For the Nine-Month Periods Ended September 30, 2021
	(Income) Expense				(Income) Expense
Certain Items Impacting Net Service Revenue:
Contingency accrual	$	—			$	(6,541	)
Certain Items Impacting Other Operating Income:
CARES Act funds		4				(13,300	)
Certain Items Impacting Cost of Service:
COVID-19 costs		3,513				16,457
Certain Items Impacting Operating Expenses:
Acquisition and integration costs		2,757				6,249
COVID-19 costs		199				576
Pre-acquisition legal settlement		—				1,825
Certain Items Impacting Total Other Income (Expense):
Interest component of certain items		451				1,437
Other income, net		(66	)			(31,143	)
Total	$	6,858			$	(24,440	)
Net of tax	$	5,474			$	(17,495	)
Diluted EPS	$	0.17			$	(0.53	)

(2)	Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
(3)	Adjusted 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.

 

FAQ

What were Amedisys's earnings results for Q3 2022?

Amedisys reported Q3 2022 net service revenue of $558 million, net income of $25.6 million, and adjusted EBITDA of $61.5 million.

How does Amedisys's Q3 2022 financial performance compare to Q3 2021?

In Q3 2021, Amedisys had net income of $45 million and adjusted EBITDA of $72.4 million, which decreased in Q3 2022 to $25.6 million and $61.5 million, respectively.

What is Amedisys's guidance for 2022?

Amedisys anticipates adjusted net service revenue between $2.224 billion and $2.230 billion, with adjusted EBITDA expected between $253 million to $258 million.