Amedisys second-quarter net service revenue increases 11.8% to $422.3 million

Aug 9 2010

Amedisys, Inc. (NASDAQ: AMED), one of America's leading home health nursing companies, today reported its financial results for the three and six-month periods ended June 30, 2010. Net service revenue increased 11.8% while net income attributable to Amedisys, Inc., decreased 8.2% over the three-month period ended June 30, 2009.

“Although our results for the second quarter were below our expectations we are optimistic about our future and the action plans that we have put into place to revitalize our growth”

Three-Month Periods Ended June 30, 2010 and 2009

• Net service revenue increased $44.4 million or 11.8% to $422.3 million compared to $377.9 million in 2009, with $33.6 million of the increase related to growth through base/start-up agencies.
• Net income attributable to Amedisys, Inc. decreased $2.9 million or 8.2% to $32.2 million compared to $35.1 million in 2009.
• Diluted earnings per share decreased 11.0% to $1.13 compared to $1.27 per diluted share in 2009. The weighted average number of diluted shares outstanding increased to approximately 28.6 million compared to 27.5 million in 2009.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased 5.9% to $63.4 million compared to $67.4 million in 2009.

Six-Month Periods Ended June 30, 2010 and 2009

• Net service revenue increased $115.6 million or 16.1% to $835.3 million compared to $719.7 million in 2009, with $92.3 million of the increase related to growth through base/start-up agencies.
• Net income attributable to Amedisys, Inc. increased $6.7 million or 10.9% to $68.8 million compared to $62.1 million in 2009
• Diluted earnings per share increased 7.1% to $2.42 compared to $2.26 per diluted share in 2009. The weighted average number of diluted shares outstanding increased to approximately 28.5 million compared to 27.4 million in 2009.
• EBITDA increased 10.5% to $134.1 million compared to $121.3 million in 2009.

$60 Million Share Repurchase Program

On August 6, 2010, our Board of Directors authorized a stock repurchase program of up to $60.0 million of our common stock. Purchases may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans. The share repurchase program is scheduled to expire on September 30, 2011.

The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the price of our common stock, corporate and regulatory requirements, restrictions under our debt obligations and other market and economic conditions. The stock repurchase program does not obligate Amedisys to acquire any particular amount of stock and may be modified, suspended or discontinued at any time.

"Although our results for the second quarter were below our expectations we are optimistic about our future and the action plans that we have put into place to revitalize our growth," stated William F. Borne, Chief Executive Officer of Amedisys, Inc.

Updated 2010 Guidance

• Net service revenue is anticipated to be in the range of $1.625 billion to $1.650 billion, excluding the effects of future acquisitions, if any are made.
• Diluted earnings per share is expected to be in the range of $4.20 to $4.50 based on an estimated 28.8 million shares outstanding. This guidance does not include the effects of any share repurchases or the effects of future acquisitions, if any are made.