Amedisys Reports Third Quarter 2024 Financial Results
BATON ROUGE, La., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED) today reported its financial results for the three and nine-month periods ended September 30, 2024.
Three-Month Periods Ended September 30, 2024 and 2023
Net service revenue increased $31.5 million to $587.7 million compared to $556.2 million in 2023.
Net income attributable to Amedisys, Inc. of $16.9 million, which is inclusive of merger-related expenses totaling $16.7 million ($16.7 million, net of tax) compared to net income attributable to Amedisys, Inc. of $26.0 million, which is inclusive of merger-related expenses totaling $5.0 million ($4.7 million, net of tax) in 2023.
Net income attributable to Amedisys, Inc. per diluted share of $0.51 compared to $0.79 in 2023.
Adjusted Quarterly Results*
Adjusted EBITDA of $58.1 million compared to $57.9 million in 2023.
Adjusted net income attributable to Amedisys, Inc. of $33.2 million compared to $32.2 million in 2023.
Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.00 compared to $0.98 in 2023.
Nine-Month Periods Ended September 30, 2024 and 2023
Net service revenue increased $84.7 million to $1,750.3 million compared to $1,665.6 million in 2023.
Net income attributable to Amedisys, Inc. of $63.6 million, which is inclusive of merger-related expenses totaling $49.2 million ($48.0 million, net of tax) compared to net loss attributable to Amedisys, Inc. of $29.1 million, which is inclusive of merger-related expenses totaling $131.2 million ($130.9 million, net of tax) in 2023.
Net income attributable to Amedisys, Inc. per diluted share of $1.93 compared to net loss attributable to Amedisys, Inc. per diluted share of $0.89 in 2023.
Adjusted Year to Date Results*
Adjusted EBITDA of $191.1 million compared to $190.4 million in 2023.
Adjusted net income attributable to Amedisys, Inc. of $110.7 million compared to $109.8 million in 2023.
Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.35 compared to $3.36 in 2023.
* See pages 2 and 13 - 14 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.
The supplemental slides provided in connection with the third quarter 2024 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 income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (3) 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 519 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," "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 merger; 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: Amedisys, Inc. Nick Muscato Chief Strategy Officer (615) 928-
Media Contact: Amedisys, Inc.Kendra KimmonsVice President, Marketing & Communications(225)
AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data)(Unaudited)
For the Three-MonthPeriods Ended September 30,
For the Nine-MonthPeriods Ended September 30,
2024
2023
2024
2023
Net service revenue
$
587,671
$
556,237
$
1,750,272
$
1,665,594
Operating expenses:
Cost of service, inclusive of depreciation
337,563
311,628
986,033
924,093
General and administrative expenses:
Salaries and benefits
134,833
129,083
392,102
380,926
Non-cash compensation
6,726
6,612
21,987
18,968
Merger-related expenses
16,669
4,980
49,237
25,151
Depreciation and amortization
4,774
4,436
13,431
13,604
Other
56,777
57,287
173,320
180,467
Total operating expenses
557,342
514,026
1,636,110
1,543,209
Operating income
30,329
42,211
114,162
122,385
Other income (expense):
Interest income
2,017
1,304
5,361
2,452
Interest expense
(7,772
)
(8,021
)
(23,786
)
(23,040
)
Equity in earnings from equity method investments
1,891
1,252
4,316
9,366
Merger termination fee
—
—
—
(106,000
)
Miscellaneous, net
2,522
1,201
5,391
5,262
Total other expense, net
(1,342
)
(4,264
)
(8,718
)
(111,960
)
Income before income taxes
28,987
37,947
105,444
10,425
Income tax expense
(12,473
)
(12,331
)
(41,763
)
(40,381
)
Net income (loss)
16,514
25,616
63,681
(29,956
)
Net (income) loss attributable to noncontrolling interests
397
344
(69
)
887
Net income (loss) attributable to Amedisys, Inc.
$
16,911
$
25,960
$
63,612
$
(29,069
)
Basic earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders
$
0.52
$
0.80
$
1.94
$
(0.89
)
Weighted average shares outstanding
32,745
32,624
32,707
32,587
Diluted earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders
$
0.51
$
0.79
$
1.93
$
(0.89
)
Weighted average shares outstanding
33,135
32,831
33,020
32,587
AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share data)
September 30,2024(unaudited)
December 31,2023
ASSETS
Current assets:
Cash and cash equivalents
$
245,450
$
126,450
Restricted cash
—
12,413
Patient accounts receivable
301,050
313,373
Prepaid expenses
20,485
14,639
Other current assets
12,962
30,060
Total current assets
579,947
496,935
Property and equipment, net of accumulated depreciation of $101,003 and $92,422
42,000
41,845
Operating lease right of use assets
85,110
88,939
Goodwill
1,244,679
1,244,679
Intangible assets, net of accumulated amortization of $17,603 and $14,008
99,698
102,675
Other assets
87,680
85,097
Total assets
$
2,139,114
$
2,060,170
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
32,117
$
28,237
Payroll and employee benefits
138,374
136,835
Accrued expenses
145,611
140,049
Termination fee paid by UnitedHealth Group
106,000
106,000
Current portion of long-term obligations
37,478
36,314
Current portion of operating lease liabilities
26,441
26,286
Total current liabilities
486,021
473,721
Long-term obligations, less current portion
344,428
361,862
Operating lease liabilities, less current portion
59,323
62,751
Deferred income tax liabilities
48,017
40,635
Other long-term obligations
886
1,418
Total liabilities
938,675
940,387
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; 38,267,133 and 38,131,478 shares issued; 32,751,131 and 32,667,631 shares outstanding
38
38
Additional paid-in capital
809,655
787,177
Treasury stock, at cost, 5,516,002 and 5,463,847 shares of common stock
(473,466
)
(468,626
)
Retained earnings
811,537
747,925
Total Amedisys, Inc. stockholders' equity
1,147,764
1,066,514
Noncontrolling interests
52,675
53,269
Total equity
1,200,439
1,119,783
Total liabilities and equity
$
2,139,114
$
2,060,170
AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING(Amounts in thousands, except statistical information)(Unaudited)
For the Three-MonthPeriods Ended September 30,
For the Nine-MonthPeriods Ended September 30,
2024
2023
2024
2023
Cash Flows from Operating Activities:
Net income (loss)
$
16,514
$
25,616
$
63,681
$
(29,956
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization (inclusive of depreciation included in cost of service)
6,835
6,063
19,331
17,956
Non-cash compensation
6,206
7,243
22,390
19,624
Amortization and impairment of operating lease right of use assets
8,620
8,456
25,720
25,427
(Gain) loss on disposal of property and equipment
(3
)
(10
)
(22
)
346
Loss on personal care divestiture
—
—
—
2,186
Merger termination fee
—
—
—
106,000
Deferred income taxes
805
