Amedisys Reports Third Quarter 2023 Financial Results

Rhea-AI Summary

Amedisys, Inc. reports financial results for Q3 2023, with a decrease in net service revenue and net income compared to the previous year. Adjusted EBITDA and adjusted net income also decreased. The company will not conduct a quarterly earnings call due to a pending merger. Non-GAAP financial measures are provided.

Positive

• Adjusted net service revenue increased by $4.5 million to $1,665.6 million in 2023 compared to 2022.
• Adjusted net income attributable to Amedisys, Inc. per diluted share was $3.36 in 2023 compared to $3.84 in 2022.

Negative

• Net service revenue decreased by $1.8 million to $556.2 million in 2023 compared to 2022.
• Net income attributable to Amedisys, Inc. per diluted share remained the same at $0.79 in 2023 compared to 2022.

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

Three-Month Periods Ended September 30, 2023 and 2022

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

Adjusted Quarterly Results*

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

Nine-Month Periods Ended September 30, 2023 and 2022

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

Adjusted Year to Date Results*

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

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

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

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income (loss) attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share calculated in accordance with GAAP excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional Information

Amedisys, Inc. (the “Company”) is a leading healthcare at home company delivering personalized home health, hospice and high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes, home-based recovery and rehabilitation after an operation or injury, care focused on empowering our patients to manage a chronic disease or hospice care at the end of life. More than 3,000 hospitals and 102,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With approximately 18,600 employees in 521 care centers within 37 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 455,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “will,” “could,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to, the following: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms and timetable; the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger; changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; changes in or our failure to comply with existing federal and state laws or regulations or the inability to comply with new government regulations on a timely basis; the impact of the novel coronavirus pandemic ("COVID-19") on our business, financial condition and results of operations; changes in estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; and changes in laws or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

 

Contact:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Nick Muscato	Kendra Kimmons
	Chief Strategy Officer	Vice President, Marketing & Communications
	(615) 928- 5452	(225) 299-3720
	IR@amedisys.com	kendra.kimmons@amedisys.com

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) (Unaudited)
	For the Three-Month  Periods Ended September 30,								For the Nine-Month Periods Ended September 30,
		2023				2022				2023				2022
Net service revenue	$	556,237			$	557,988			$	1,665,594			$	1,661,135
Operating expenses:
Cost of service, inclusive of depreciation		311,628				322,227				924,093				943,258
General and administrative expenses:
Salaries and benefits		129,083				125,550				380,926				376,788
Non-cash compensation		6,612				3,495				18,968				15,990
Merger-related expenses		4,980				—				25,151				—
Depreciation and amortization		4,436				5,477				13,604				19,705
Investment impairment		—				3,009				—				3,009
Other		57,287				59,299				180,467				167,851
Total operating expenses		514,026				519,057				1,543,209				1,526,601
Operating income		42,211				38,931				122,385				134,534
Other income (expense):
Interest income		1,304				59				2,452				108
Interest expense		(8,021	)			(4,963	)			(23,040	)			(16,447	)
Equity in earnings (loss) from equity method investments		1,252				302				9,366				(442	)
Merger termination fee		—				—				(106,000	)			—
Miscellaneous, net		1,201				491				5,262				1,155
Total other expense, net		(4,264	)			(4,111	)			(111,960	)			(15,626	)
Income before income taxes		37,947				34,820				10,425				118,908
Income tax expense		(12,331	)			(9,417	)			(40,381	)			(32,755	)
Net income (loss)		25,616				25,403				(29,956	)			86,153
Net loss attributable to noncontrolling interests		344				239				887				739
Net income (loss) attributable to Amedisys, Inc.	$	25,960			$	25,642			$	(29,069	)		$	86,892
Basic earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.80			$	0.79			$	(0.89	)		$	2.67
Weighted average shares outstanding		32,624				32,482				32,587				32,519
Diluted earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.79			$	0.79			$	(0.89	)		$	2.66
Weighted average shares outstanding		32,831				32,616				32,587				32,680

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
	September 30, 2023 (unaudited)				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	78,112			$	40,540
Restricted cash		15,904				13,593
Patient accounts receivable		319,580				296,785
Prepaid expenses		20,534				11,628
Other current assets		33,097				26,415
Total current assets		467,227				388,961
Property and equipment, net of accumulated depreciation of $93,909 and $101,364		39,631				16,026
Operating lease right of use assets		87,834				102,856
Goodwill		1,244,679				1,287,399
Intangible assets, net of accumulated amortization of $12,838 and $14,604		103,634				101,167
Other assets		84,412				79,836
Total assets	$	2,027,417			$	1,976,245
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	34,555			$	43,735
Payroll and employee benefits		126,989				125,387
Accrued expenses		139,100				137,390
Termination fee paid by UnitedHealth Group		106,000				—
Current portion of long-term obligations		35,364				15,496
Current portion of operating lease liabilities		26,111				33,521
Total current liabilities		468,119				355,529
Long-term obligations, less current portion		366,853				419,420
Operating lease liabilities, less current portion		61,878				69,504
Deferred income tax liabilities		35,398				20,411
Other long-term obligations		1,651				4,808
Total liabilities		933,899				869,672
Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding		—				—
Common stock, $0.001 par value, 60,000,000 shares authorized; 38,065,853 and 37,891,186 shares issued; 32,633,599 and 32,511,465 shares outstanding		38				38
Additional paid-in capital		776,880				755,063
Treasury stock, at cost, 5,432,254 and 5,379,721 shares of common stock		(465,613	)			(461,200	)
Retained earnings		728,603				757,672
Total Amedisys, Inc. stockholders’ equity		1,039,908				1,051,573
Noncontrolling interests		53,610				55,000
Total equity		1,093,518				1,106,573
Total liabilities and equity	$	2,027,417			$	1,976,245

 

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING (Amounts in thousands, except statistical information) (Unaudited)
	For the Three-Month Periods Ended September 30,								For the Nine-Month Periods Ended September 30,
		2023				2022				2023				2022
Cash Flows from Operating Activities:
Net income (loss)	$	25,616			$	25,403			$	(29,956	)		$	86,153
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization (inclusive of depreciation included in cost of service)		6,063				5,477				17,956				19,705
Non-cash compensation		7,243				3,495				19,624				15,990
Amortization and impairment of operating lease right of use assets		8,456				12,319				25,427				34,782
(Gain) loss on disposal of property and equipment		(10	)			(24	)			346				507
Loss on personal care divestiture		—				—				2,186				—
Merger termination fee		—				—				106,000				—
Deferred income taxes		7,313				13,028				15,417				19,031
Equity in (earnings) loss from equity method investments		(1,252	)			(302	)			(9,366	)			442
Amortization of deferred debt issuance costs		248				248				743				743
Return on equity method investments		1,556				1,370				4,309				3,798
Investment impairment		—				3,009				—				3,009
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		(40,796	)			3,078				(32,934	)			(18,266	)
Other current assets		(17,123	)			(15,461	)			(15,434	)			(19,929	)
Operating lease right of use assets		(866	)			(661	)			(2,803	)			(2,323	)
Other assets		29				63				273				283
Accounts payable		(4,108	)			1,388				(8,839	)			5,886
Accrued expenses		5,565				(56,319	)			10,340				(26,790	)
Other long-term obligations		23				466				(3,156	)			243
Operating lease liabilities		(7,800	)			(10,207	)			(23,256	)			(30,864	)
Net cash (used in) provided by operating activities		(9,843	)			(13,630	)			76,877				92,400
Cash Flows from Investing Activities:
Proceeds from the sale of deferred compensation plan assets		—				61				25				89
Proceeds from the sale of property and equipment		—				29				100				66
Purchases of property and equipment		(984	)			(1,556	)			(3,728	)			(4,338	)
Investments in technology assets		(214	)			(289	)			(6,881	)			(848	)
Investment in equity method investee		—				(637	)			—				(637	)
Purchase of cost method investment		—				—				—				(15,000	)
Return of investment		150				—				150				—
Proceeds from personal care divestiture		—				—				47,787				—
Acquisitions of businesses, net of cash acquired		—				1,359				(350	)			(71,952	)
Net cash (used in) provided by investing activities		(1,048	)			(1,033	)			37,103				(92,620	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		25				306				100				1,078
Proceeds from issuance of stock under employee stock purchase plan		848				966				2,602				2,857
Shares withheld to pay taxes on non-cash compensation		(925	)			(3,187	)			(4,413	)			(7,949	)
Noncontrolling interest contributions		856				1,148				1,232				2,100
Noncontrolling interest distributions		(902	)			(450	)			(1,614	)			(1,425	)
Proceeds from sale of noncontrolling interest		—				3,941				—				3,941
Proceeds from borrowings under revolving line of credit		—				185,500				23,000				484,000
Repayments of borrowings under revolving line of credit		—				(182,000	)			(23,000	)			(465,500	)
Principal payments of long-term obligations		(6,120	)			(3,151	)			(67,113	)			(10,126	)
Purchase of company stock		—				—				—				(17,351	)
Payment of accrued contingent consideration		(36	)			(5,714	)			(4,091	)			(5,714	)
Purchase of noncontrolling interest		—				—				(800	)			—
Net cash used in financing activities		(6,254	)			(2,641	)			(74,097	)			(14,089	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(17,145	)			(17,304	)			39,883				(14,309	)
Cash, cash equivalents and restricted cash at beginning of period		111,161				48,764				54,133				45,769
Cash, cash equivalents and restricted cash at end of period	$	94,016			$	31,460			$	94,016			$	31,460
	For the Three-Month  Periods Ended September 30,								For the Nine-Month  Periods Ended September 30,
		2023				2022				2023				2022
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	6,756			$	4,664			$	19,787			$	9,153
Cash paid for Infinity ZPIC interest	$	—			$	11,544			$	—			$	11,544
Cash paid for income taxes, net of refunds received	$	8,498			$	605			$	24,318			$	23,582
Cash paid for operating lease liabilities	$	8,665			$	10,868			$	26,059			$	33,187
Cash paid for finance lease liabilities	$	3,141			$	339			$	8,462			$	1,074
Supplemental Disclosures of Non-Cash Activity:
Right of use assets obtained in exchange for operating lease liabilities	$	10,459			$	10,390			$	25,261			$	36,980
Right of use assets obtained in exchange for finance lease liabilities	$	7,020			$	530			$	34,964			$	1,846
Reductions to right of use assets resulting from reductions to operating lease liabilities	$	—			$	624			$	15,135			$	3,387
Reductions to right of use assets resulting from reductions to finance lease liabilities	$	315			$	564			$	1,209			$	564
Accrued contingent consideration	$	—			$	—			$	—			$	19,195
Noncontrolling interest contribution	$	—			$	—			$	—			$	8,900
Days revenue outstanding (1)		49.8				47.3				49.8				47.3

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

AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)
Segment Information - Home Health
	For the Three-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions) (6):
Medicare	$	217.9			$	225.6
Non-Medicare		133.7				113.6
Net service revenue		351.6				339.2
Cost of service, inclusive of depreciation		201.6				196.7
Gross margin		150.0				142.5
General and administrative expenses		91.4				89.1
Depreciation and amortization		1.8				0.9
Operating income	$	56.8			$	52.5
Same Store Growth(1):
Medicare revenue		(2	%)			(6	%)
Non-Medicare revenue		17	%			(1	%)
Total admissions		4	%			5	%
Total volume(2)		3	%			1	%
Key Statistical Data - Total(3)(6):
Admissions		98,527				95,566
Recertifications		45,693				45,098
Total volume		144,220				140,664
Medicare completed episodes		72,714				76,334
Average Medicare revenue per completed episode(4)	$	3,015			$	2,992
Medicare visits per completed episode(5)		12.4				12.7
Visiting clinician cost per visit	$	105.06			$	101.33
Clinical manager cost per visit		11.98				11.44
Total cost per visit	$	117.04			$	112.77
Visits		1,723,289				1,744,385

	For the Nine-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions) (6):
Medicare	$	653.1			$	671.7
Non-Medicare		391.6				345.1
Net service revenue		1,044.7				1,016.8
Cost of service, inclusive of depreciation		593.1				576.6
Gross margin		451.6				440.2
General and administrative expenses		270.5				261.1
Depreciation and amortization		4.3				3.3
Operating income	$	176.8			$	175.8
Same Store Growth(1):
Medicare revenue		(3	%)			(5	%)
Non-Medicare revenue		13	%			—	%
Total admissions		5	%			2	%
Total volume(2)		3	%			—	%
Key Statistical Data - Total(3)(6):
Admissions		297,943				281,393
Recertifications		134,826				133,775
Total volume		432,769				415,168
Medicare completed episodes		221,125				229,098
Average Medicare revenue per completed episode(4)	$	2,998			$	3,019
Medicare visits per completed episode(5)		12.4				13.0
Visiting clinician cost per visit	$	101.55			$	98.72
Clinical manager cost per visit		11.41				10.99
Total cost per visit	$	112.96			$	109.71
Visits		5,250,944				5,256,207

(1)	Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)	Total volume includes all admissions and recertifications.
(3)	Total includes acquisitions, startups and de novos.
(4)	Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode reflects the suspension of sequestration at 2% and 1% for the three-month periods ended March 31, 2022 and June 30, 2022, respectively, and the reinstatement of sequestration at 2% effective July 1, 2022.
(5)	Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.
(6)	Prior year has been recast to conform to the current year presentation.

Segment Information - Hospice

	For the Three-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions):
Medicare	$	188.9			$	187.8
Non-Medicare		11.3				10.9
Net service revenue		200.2				198.7
Cost of service, inclusive of depreciation		104.2				109.4
Gross margin		96.0				89.3
General and administrative expenses		48.4				49.1
Depreciation and amortization		0.8				0.5
Operating income	$	46.8			$	39.7
Same Store Growth(1):
Medicare revenue		1	%			—	%
Hospice admissions		(6	%)			(3	%)
Average daily census		(2	%)			1	%
Key Statistical Data - Total(2):
Hospice admissions		11,968				12,782
Average daily census		12,943				13,314
Revenue per day, net	$	168.11			$	162.24
Cost of service per day	$	87.48			$	89.36
Average discharge length of stay		94				92

	For the Nine-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions):
Medicare	$	559.8			$	557.8
Non-Medicare		33.0				32.4
Net service revenue		592.8				590.2
Cost of service, inclusive of depreciation		304.4				323.2
Gross margin		288.4				267.0
General and administrative expenses		144.1				152.1
Depreciation and amortization		2.2				1.7
Operating income	$	142.1			$	113.2
Same Store Growth(1):
Medicare revenue		—	%			—	%
Hospice admissions		(6	%)			1	%
Average daily census		(2	%)			(1	%)
Key Statistical Data - Total(2):
Hospice admissions		37,361				40,027
Average daily census		12,864				13,163
Revenue per day, net	$	168.80			$	164.24
Cost of service per day	$	86.66			$	89.94
Average discharge length of stay		91				90

(1)	Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)	Total includes acquisitions and de novos.

Segment Information - Personal Care ⁽¹⁾

	For the Three-Month Periods Ended September 30,
		2023			2022
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		—			16.6
Net service revenue		—			16.6
Cost of service, inclusive of depreciation		—			12.2
Gross margin		—			4.4
General and administrative expenses		—			2.4
Depreciation and amortization		—			—
Operating income	$	—		$	2.0
Key Statistical Data - Total:
Billable hours		—			474,365
Clients served		—			7,771
Shifts		—			202,638
Revenue per hour	$	—		$	34.98
Revenue per shift	$	—		$	81.89
Hours per shift		—			2.3

	For the Nine-Month Periods Ended September 30,
		2023			2022
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare		15.0			45.5
Net service revenue		15.0			45.5
Cost of service, inclusive of depreciation		11.1			34.5
Gross margin		3.9			11.0
General and administrative expenses		2.3			6.8
Depreciation and amortization		—			0.1
Operating income	$	1.6		$	4.1
Key Statistical Data - Total:
Billable hours		440,464			1,397,919
Clients served		7,892			9,530
Shifts		191,379			598,376
Revenue per hour	$	33.97		$	32.53
Revenue per shift	$	78.19		$	76.00
Hours per shift		2.3			2.3

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

Segment Information - High Acuity Care

	For the Three-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions) (1):
Medicare	$	—			$	—
Non-Medicare		4.4				3.5
Net service revenue		4.4				3.5
Cost of service, inclusive of depreciation		5.8				3.9
Gross margin		(1.4	)			(0.4	)
General and administrative expenses		5.3				5.2
Depreciation and amortization		0.7				0.8
Investment impairment		—				3.0
Operating loss	$	(7.4	)		$	(9.4	)
Key Statistical Data - Total:
Full risk admissions		150				130
Limited risk admissions		430				300
Total admissions		580				430
Full risk revenue per episode	$	10,168			$	11,615
Limited risk revenue per episode	$	6,242			$	5,580
Number of admitting joint venture markets		11				8

	For the Nine-Month Periods Ended September 30,
		2023				2022
Financial Information (in millions) (1):
Medicare	$	—			$	—
Non-Medicare		13.1				8.6
Net service revenue		13.1				8.6
Cost of service, inclusive of depreciation		15.5				9.0
Gross margin		(2.4	)			(0.4	)
General and administrative expenses		15.0				14.6
Depreciation and amortization		2.3				2.4
Investment impairment		—				3.0
Operating loss	$	(19.7	)		$	(20.4	)
Key Statistical Data - Total:
Full risk admissions		468				339
Limited risk admissions		1,263				768
Total admissions		1,731				1,107
Full risk revenue per episode	$	10,783			$	11,018
Limited risk revenue per episode	$	5,881			$	5,556
Number of admitting joint venture markets		11				8

(1)	Prior year has been recast to conform to the current year presentation.

Segment Information - Corporate

	For the Three-Month Periods Ended September 30,
		2023			2022
Financial Information (in millions) (1):
General and administrative expenses	$	52.9		$	42.6
Depreciation and amortization		1.1			3.3
Total operating expenses	$	54.0		$	45.9

	For the Nine-Month Periods Ended September 30,
		2023			2022
Financial Information (in millions) (1):
General and administrative expenses	$	173.6		$	126.0
Depreciation and amortization		4.8			12.2
Total operating expenses	$	178.4		$	138.2

(1)	Prior year has been recast to conform to the current year presentation.

AMEDISYS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (Amounts in thousands) (Unaudited) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Reconciliation:
	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc.	$	25,960		$	25,642		$	(29,069	)		$	86,892
Add:
Income tax expense		12,331			9,417			40,381				32,755
Interest expense, net		6,717			4,904			20,588				16,339
Depreciation and amortization		6,063			5,477			17,956				19,705
Certain items(1)		6,807			15,861			140,498				50,920
Interest component of certain items(1)		—			207			—				(4,445	)
Adjusted EBITDA(2)(6)	$	57,878		$	61,508		$	190,354			$	202,166

Adjusted Net Service Revenue Reconciliation:

	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
		2023			2022			2023			2022
Net service revenue	$	556,237		$	557,988		$	1,665,594		$	1,661,135
Add:
Certain items(1)		—			931			—			9,305
Adjusted net service revenue(3) (6)	$	556,237		$	558,919		$	1,665,594		$	1,670,440

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc.	$	25,960		$	25,642		$	(29,069	)		$	86,892
Add:
Certain items(1)		6,242			11,740			138,884				38,587
Adjusted net income attributable to Amedisys, Inc.(4)(6)	$	32,202		$	37,382		$	109,815			$	125,479

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

	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
		2023			2022			2023				2022
Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share	$	0.79		$	0.79		$	(0.89	)		$	2.66
Add:
Certain items(1)		0.19			0.36			4.25				1.18
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6)	$	0.98		$	1.15		$	3.36			$	3.84

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

Certain Items (in thousands):

	For the Three-Month Periods Ended September 30, 2023				For the Nine-Month Periods Ended September 30, 2023
	(Income) Expense				(Income) Expense
Certain Items Impacting Cost of Service, Inclusive of Depreciation:
Clinical optimization and reorganization costs	$	282			$	396
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		338				3,106
CEO transition		1,094				5,279
Merger-related expenses		4,980				25,151
Clinical optimization and reorganization costs		466				4,203
Personal care divestiture		—				525
Certain Items Impacting Total Other Income (Expense):
Other (income) expense, net (includes $106,000 merger termination fee)		(353	)			101,838
Total	$	6,807			$	140,498
Net of tax	$	6,242			$	138,884
Diluted EPS	$	0.19			$	4.25

	For the Three-Month Periods Ended September 30, 2022				For the Nine-Month Periods Ended September 30, 2022
	(Income) Expense				(Income) Expense
Certain Items Impacting Net Service Revenue:
Contingency accrual	$	931			$	9,305
Certain Items Impacting Cost of Service:
COVID-19 costs		1,701				7,237
Clinical optimization and reorganization costs		1,154				1,349
Fuel supplement		1,962				3,315
Integration costs		311				1,712
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		3,154				9,855
COVID-19 costs		159				396
CEO transition		—				3,500
Legal fees - non-routine		—				241
Clinical optimization and reorganization costs		2,676				3,545
Legal settlement		—				(1,058	)
Fuel supplement		218				218
Investment impairment		3,009				3,009
Certain Items Impacting Total Other Income (Expense):
Interest component of certain items		(207	)			4,445
Other expense, net		793				3,851
Total	$	15,861			$	50,920
Net of tax	$	11,740			$	38,587
Diluted EPS	$	0.36			$	1.18

(2)	Adjusted EBITDA is defined as net income (loss) attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
(3)	Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)	Adjusted net income attributable to Amedisys, Inc. is defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(5)	Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(6)	Adjusted EBITDA, adjusted net service revenue, adjusted net income attributable to Amedisys, Inc. and adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes or other measures calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.

   

 

FAQ

What were the financial results for Amedisys, Inc. in Q3 2023?

Amedisys, Inc. reported a decrease in net service revenue and net income compared to the previous year.

What were the adjusted net service revenue and adjusted net income for Amedisys, Inc. in 2023?

Adjusted net service revenue increased by $4.5 million to $1,665.6 million compared to 2022. Adjusted net income per diluted share was $3.36 compared to $3.84 in 2022.

Why will Amedisys, Inc. not conduct a quarterly earnings call?

Amedisys, Inc. will not conduct a quarterly earnings call due to a pending merger.

What are non-GAAP financial measures?

Non-GAAP financial measures are alternative financial metrics used to assess the company's performance. They should be considered in addition to, and not as a substitute for, GAAP financial measures.