Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the three and six-month periods ended June 30, 2011 and lowered 2011 guidance.
“This was a mixed quarter for the company with home health performance lower than our expectations, but strong hospice results. Regulatory changes mainly in our home health division have had a dampening impact on volume and pricing resulting in our downward adjustment to guidance for the year”
Three-Month Periods Ended June 30, 2011 and 2010
• Net service revenue of $373.7 million compared to $422.3 million in 2010, a decrease of $48.6 million or 11.5%. Same store agencies decreased $45.4 million, $15.6 million of the decrease related to agencies closed or consolidated during 2010 offset by $12.4 million in revenue related to start-up and acquisition agencies.
• Net income attributable to Amedisys, Inc. of $21.7 million compared to $32.2 million in 2010, a decrease of $10.5 or 32.7%.
• Diluted earnings per share of $0.75 compared to $1.13 per diluted share in 2010, a decrease of 33.6%. The weighted average number of diluted shares outstanding increased to approximately 29.0 million compared to 28.6 million in 2010.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") of $47.7 million compared to $63.4 million in 2010, a decrease of 24.7%.
• After excluding $3.6 million and adding back $1.2 million ($2.2 million and $0.7 million, net of income tax) or $0.08 and $0.02 per diluted share in certain items for 2011 and 2010, respectively, the following would have been our adjusted results:
• Net income attributable to Amedisys, Inc. of $19.5 million compared to $32.9 million in 2010, a decrease of 40.9%.
• Diluted earnings per share of $0.67 compared to $1.15 per diluted share in 2010, a decrease 41.7%.
• EBITDA of $44.1 million compared to $64.6 million in 2010, a decrease of 31.7%.
Six-Month Periods Ended June 30, 2011 and 2010
• Net service revenue of $738.0 million compared to $835.3 million in 2010, a decrease of $97.3 million or 11.6%. Same store agencies decreased $85.9 million, $31.8 million of the decrease related to agencies closed or consolidated during 2010 offset by $20.4 million in revenue related to start-up and acquisition agencies.
• Net income attributable to Amedisys, Inc. of $36.9 million compared to $68.8 million in 2010, a decrease of $31.9 million or 46.3%.
• Diluted earnings per share of $1.28 compared to $2.42 per diluted share in 2010, a decrease of 47.1%. The weighted average number of diluted shares outstanding increased to approximately 28.9 million compared to 28.5 million in 2010.
• EBITDA of $84.5 million compared to $134.1 million in 2010, a decrease of 37.0%.
• After adding back $0.8 million and $1.2 million ($0.5 million and $0.07 million, net of income tax) or $0.01 and $0.02 per diluted share in certain items*, the following would have been our adjusted results:
• Net income attributable to Amedisys, Inc. of $37.4 million compared to $69.6 million in 2010, a decrease of 46.2%.
• Diluted earnings per share of $1.29 compared to $2.44 per diluted share in 2010, a decrease 47.1%.
• EBITDA of $85.3 million compared to $135.3 million in 2010, a decrease of 36.9%.
"This was a mixed quarter for the company with home health performance lower than our expectations, but strong hospice results. Regulatory changes mainly in our home health division have had a dampening impact on volume and pricing resulting in our downward adjustment to guidance for the year," stated William F. Borne, Chief Executive Officer of Amedisys, Inc. "On a positive note, we completed a strategic acquisition in our hospice division. In addition, we are very proud to have been awarded a bonus payment from Medicare in recognition of providing quality care and system cost savings under a pay for performance demonstration, which validates the long-term potential we see in the business."
2011 Guidance
• Net service revenue is anticipated to be in the range of $1.475 billion to $1.5 billion.
• Diluted earnings per share is expected to be in the range of $2.20 to $2.40 based on an estimated 29.3 million shares outstanding.
This guidance includes the effects of our recently announced Beacon acquisition but excludes the effects of the following: any future acquisitions, if any are made; effects of any share repurchases; non-recurring costs that may be incurred during the year or the impact of the final 2012 Medicare rate changes.
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