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AMED Amedisys

Filed: 28 Apr 21, 4:06pm

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS

UPDATES 2021 GUIDANCE

BATON ROUGE, Louisiana (April 28, 2021) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2021.

Three-Month Periods Ended March 31, 2021 and 2020

 

  

Net service revenue increased $45.4 million to $537.1 million compared to $491.7 million in 2020.

 

  

Net income attributable to Amedisys, Inc. of $49.9 million compared to $31.8 million in 2020.

 

  

Net income attributable to Amedisys, Inc. per diluted share of $1.50 compared to $0.96 in 2020.

Adjusted Quarterly Results*

 

  

Adjusted EBITDA of $78.6 million compared to $53.3 million in 2020.

 

  

Adjusted net income attributable to Amedisys, Inc. of $51.1 million compared to $34.8 million in 2020.

 

  

Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.54 compared to $1.05 in 2020.

 

*

See pages 11 and 12 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “I am proud of our first quarter results and our continued performance in our four strategic pillars. Home Health has carried its strong momentum exiting 2020 into the first quarter of 2021, and though Hospice continues to see the impact of COVID-19 on average daily census, we are performing ahead of our projections and expect to continue to make good progress throughout 2021. We are also innovating close-to-the-core, growing inorganically, generating a prodigious amount of cash flow and remain in a position of very low leverage. We are excited about the growth opportunity both organically and inorganically this year and beyond and expect to be at the forefront of industry consolidation. Our industry leading quality, innovations mindset and payor orientation have materially differentiated Amedisys and have helped us take incremental steps towards being the leading aging-in-place, chronic care management company. A special thank you to all of our clinical staff and teams whose unwavering dedication to providing best-in-class clinical care has once again translated into strong financial results.”

 

1


Updated 2021 Guidance

Revenue, adjusted EBITDA and adjusted diluted earnings per share guidance ranges for 2021 updated to reflect the extension of the suspension of sequestration through December 31, 2021.

 

  

Net service revenue is anticipated to be in the range of $2.302 billion to $2.342 billion.

 

  

Adjusted EBITDA is anticipated to be in the range of $342 million to $352 million.

 

  

Adjusted diluted earnings per share is anticipated to be in the range of $6.85 to $7.07 based on an estimated 33.4 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2021 guidance disclosed in this press release. The home health, hospice and personal 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, 2020, 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, April 29, 2021, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through May 29, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13718528.

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 other operating income, defined as other operating income excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) 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 and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; 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 2,900 hospitals and 78,000 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 21,000 employees in 514 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 418,000 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.

 

2


Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “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, 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 patients and 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 or acts of terrorism, widespread protests or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions, 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
  Senior Vice President, Finance  Vice President, Marketing & Communications
  (855) 259-2046  (225) 299-3720
  IR@amedisys.com  kendra.kimmons@amedisys.com

 

3


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

 

   For the Three-Month
Periods Ended March 31,
 
   2021  2020 

Net service revenue

  $537,144 $491,685

Other operating income

   8,701  —   

Cost of service, excluding depreciation and amortization

   297,203  285,737

General and administrative expenses:

   

Salaries and benefits

   115,825  101,566

Non-cash compensation

   7,307  5,909

Other

   49,106  49,265

Depreciation and amortization

   7,555  5,338
  

 

 

  

 

 

 

Operating expenses

   476,996  447,815
  

 

 

  

 

 

 

Operating income

   68,849  43,870

Other income (expense):

   

Interest income

   24  13

Interest expense

   (2,072  (3,231

Equity in earnings from equity method investments

   1,118  477

Miscellaneous, net

   288  263
  

 

 

  

 

 

 

Total other expense, net

   (642  (2,478
  

 

 

  

 

 

 

Income before income taxes

   68,207  41,392

Income tax expense

   (17,915  (9,346
  

 

 

  

 

 

 

Net income

   50,292  32,046

Net income attributable to noncontrolling interests

   (422  (244
  

 

 

  

 

 

 

Net income attributable to Amedisys, Inc.

  $49,870 $31,802
  

 

 

  

 

 

 

Basic earnings per common share:

   

Net income attributable to Amedisys, Inc. common stockholders

  $1.52 $0.98

Weighted average shares outstanding

   32,780  32,331

Diluted earnings per common share:

   

Net income attributable to Amedisys, Inc. common stockholders

  $1.50 $0.96

Weighted average shares outstanding

   33,190  33,234

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

   March 31, 2021
(unaudited)
  December 31,
2020
 
ASSETS   

Current assets:

   

Cash and cash equivalents

  $77,344 $81,808

Restricted cash

   1,000  1,549

Patient accounts receivable

   275,632  255,145

Prepaid expenses

   15,449  10,217

Other current assets

   11,025  13,265
  

 

 

  

 

 

 

Total current assets

   380,450  361,984

Property and equipment, net of accumulated depreciation of $97,698 and $95,024

   21,679  23,719

Operating lease right of use assets

   94,620  93,440

Goodwill

   933,207  932,685

Intangible assets, net of accumulated amortization of $12,738 and $22,973

   69,764  74,183

Deferred income taxes

   40,576  47,987

Other assets

   32,913  33,200
  

 

 

  

 

 

 

Total assets

  $1,573,209 $1,567,198
  

 

 

  

 

 

 
LIABILITIES AND EQUITY   

Current liabilities:

   

Accounts payable

  $38,865 $42,674

Payroll and employee benefits

   150,887  146,929

Accrued expenses

   170,954  166,192

Provider relief fund advance

   55,000  60,000

Current portion of long-term obligations

   10,329  10,496

Current portion of operating lease liabilities

   30,047  30,046
  

 

 

  

 

 

 

Total current liabilities

   456,082  456,337

Long-term obligations, less current portion

   231,380  204,511

Operating lease liabilities, less current portion

   63,359  61,987

Other long-term obligations

   32,814  33,622
  

 

 

  

 

 

 

Total liabilities

   783,635  756,457
  

 

 

  

 

 

 

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; 37,538,837 and 37,470,212 shares issued; and 32,567,712 and 32,814,278 shares outstanding

   38  38

Additional paid-in capital

   707,006  698,287

Treasury stock, at cost 4,971,125 and 4,655,934 shares of common stock

   (398,752  (319,092

Retained earnings

   479,861  429,991
  

 

 

  

 

 

 

Total Amedisys, Inc. stockholders’ equity

   788,153  809,224

Noncontrolling interests

   1,421  1,517
  

 

 

  

 

 

 

Total equity

   789,574  810,741
  

 

 

  

 

 

 

Total liabilities and equity

  $1,573,209 $1,567,198
  

 

 

  

 

 

 

 

5


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 March 31,
 
   2021  2020 

Cash Flows from Operating Activities:

   

Net income

  $50,292 $32,046

Adjustments to reconcile net income to net cash provided by operating activities:

   

Depreciation and amortization

   7,555  5,338

Non-cash compensation

   7,307  5,909

Amortization and impairment of operating lease right of use assets

   9,850  9,058

Loss on disposal of property and equipment

   14  55

Write-off of other comprehensive income

   —     (15

Deferred income taxes

   7,411  1,228

Equity in earnings from equity method investments

   (1,118  (477

Amortization of deferred debt issuance costs/debt discount

   216  220

Return on equity investment

   1,500  2,369

Changes in operating assets and liabilities, net of impact of acquisitions:

   

Patient accounts receivable

   (20,448  (25,459

Other current assets

   (2,874  (5,756

Other assets

   (115  417

Accounts payable

   (3,374  (2,673

Accrued expenses

   8,370  (10,336

Other long-term obligations

   (808  3,060

Operating lease liabilities

   (9,014  (8,132

Operating lease right of use assets

   (762  (817
  

 

 

  

 

 

 

Net cash provided by operating activities

   54,002  6,035
  

 

 

  

 

 

 

Cash Flows from Investing Activities:

   

Proceeds from sale of deferred compensation plan assets

   19  16

Proceeds from the sale of property and equipment

   42  12

Purchases of property and equipment

   (1,618  (1,434

Acquisitions of businesses, net of cash acquired

      (69,349
  

 

 

  

 

 

 

Net cash used in investing activities

   (1,557  (70,755
  

 

 

  

 

 

 

Cash Flows from Financing Activities:

   

Proceeds from issuance of stock upon exercise of stock options

   364  1,184

Proceeds from issuance of stock to employee stock purchase plan

   1,048  860

Shares withheld to pay taxes on non-cash compensation

   (6,774  (4,050

Noncontrolling interest distribution

   (518  (360

Proceeds from borrowings under revolving line of credit

   215,200  187,500

Repayments of borrowings under revolving line of credit

   (186,200  (37,500

Principal payments of long-term obligations

   (2,692  (1,592

Purchase of company stock

   (72,886  —   

Provider relief fund advance

   (5,000  —   
  

 

 

  

 

 

 

Net cash (used in) provided by financing activities

   (57,458  146,042

Net (decrease) increase in cash, cash equivalents and restricted cash

   (5,013  81,322

Cash, cash equivalents and restricted cash at beginning of period

   83,357  96,490
  

 

 

  

 

 

 

Cash, cash equivalents and restricted cash at end of period

  $78,344 $177,812
  

 

 

  

 

 

 

 

6


Supplemental Disclosures of Cash Flow Information:

    

Cash paid for interest

  $1,011  $1,755
  

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

  $971  $5,272
  

 

 

   

 

 

 

Cash paid for operating lease liabilities

  $9,776  $8,949
  

 

 

   

 

 

 

Cash paid for finance lease liabilities

  $503  $499
  

 

 

   

 

 

 

Supplemental Disclosures of Non-Cash Activity:

    

Right of use assets obtained in exchange for operating lease liabilities

  $10,548  $6,437
  

 

 

   

 

 

 

Right of use assets obtained in exchange for finance lease liabilities

  $177  $254
  

 

 

   

 

 

 

Reductions to right of use assets resulting from reductions to operating lease liabilities

  $279  $159
  

 

 

   

 

 

 

Days revenue outstanding (1)

   43.9   46.6

 

(1)

Our calculation of days revenue outstanding, net is derived by dividing our ending patient accounts receivable at March 31, 2021 and 2020 by our average daily net patient service revenue for the three-month periods ended March 31, 2021 and 2020, respectively.

 

7


AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

   For the Three-Month Periods
Ended March 31,
 
   2021  2020 

Financial Information (in millions):

   

Medicare

  $221.4 $203.9

Non-Medicare

   107.2  99.7
  

 

 

  

 

 

 

Net service revenue

   328.6  303.6

Other operating income

   5.0  —   

Cost of service

   183.0  179.8
  

 

 

  

 

 

 

Gross margin

   150.6  123.8

Other operating expenses

   81.1  76.7
  

 

 

  

 

 

 

Operating income

  $69.5 $47.1
  

 

 

  

 

 

 

Same Store Growth (1):

   

Medicare revenue

   9  (4%) 

Non-Medicare revenue

   8  3

Total admissions

   5  3

Total volume (2)

   6  1

Key Statistical Data—Total (3):

   

Admissions

   89,830  85,975

Recertifications (6)

   43,808   39,867 
  

 

 

  

 

 

 

Total volume (6)

   133,638   125,842 

Medicare completed episodes

   75,332  75,636

Average Medicare revenue per completed episode (4)

  $2,931 $2,734

Medicare visits per completed episode (5)

   13.9  15.8

Visiting Clinician Cost per Visit

  $90.32 $84.01

Clinical Manager Cost per Visit

  $9.50 $8.97
  

 

 

  

 

 

 

Total Cost per Visit

  $99.82 $92.98

Visits

   1,832,912  1,933,445

 

 (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 transition to PDGM effective January 1, 2020 and the suspension of sequestration effective May 1, 2020.

 

 (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 amounts have been recast to conform to the current calculation.

 

8


Segment Information - Hospice

 

   For the Three-Month Periods
Ended March 31,
 
   2021  2020 

Financial Information (in millions):

   

Medicare

  $181.5 $160.5

Non-Medicare

   10.0  8.9
  

 

 

  

 

 

 

Net service revenue

   191.5  169.4

Other operating income

   3.7  —   

Cost of service

   101.6  91.8
  

 

 

  

 

 

 

Gross margin

   93.6  77.6

Other operating expenses

   47.1  39.3
  

 

 

  

 

 

 

Operating income

  $46.5 $38.3
  

 

 

  

 

 

 

Same Store Growth (1):

   

Medicare revenue

   (2%)   5

Hospice admissions

   5  1

Average daily census

   (4%)   4

Key Statistical Data - Total (2):

   

Hospice admissions

   13,683  11,318

Average daily census

   13,321  12,046

Revenue per day, net

  $159.76 $154.55

Cost of service per day

  $84.80 $83.78

Average discharge length of stay

   94  98

 

 (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, start-ups and denovos.

 

9


Segment Information - Personal Care

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 

Financial Information (in millions):

    

Medicare

  $—    $—  

Non-Medicare

   17.0   18.7
  

 

 

   

 

 

 

Net service revenue

   17.0   18.7

Other operating income

   —      —   

Cost of service

   12.6   14.1
  

 

 

   

 

 

 

Gross margin

   4.4   4.6

Other operating expenses

   3.1   3.4
  

 

 

   

 

 

 

Operating income

  $1.3  $1.2
  

 

 

   

 

 

 

Key Statistical Data - Total (1):

    

Billable hours

   607,437   752,077

Clients served

   9,759   11,770

Shifts

   257,609   333,464

Revenue per hour

  $27.95  $24.87

Revenue per shift

  $65.92  $56.09

Hours per shift

   2.4   2.3

 

 (1)

Total includes acquisitions, start-ups and denovos.

Segment Information - Corporate

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 

Financial Information (in millions):

    

Other operating expenses

  $42.6  $39.0

Depreciation and amortization

   5.9   3.7
  

 

 

   

 

 

 

Total operating expenses

  $48.5  $42.7
  

 

 

   

 

 

 

 

10


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 March 31,
 
   2021   2020 

Net income attributable to Amedisys, Inc.

  $49,870  $31,802

Add:

    

Income tax expense

   17,915   9,346

Interest expense, net

   2,048   3,218

Depreciation and amortization

   7,555   5,338

Certain items (1)

   1,712   4,036

Interest component of certain items (1)

   (517   (446
  

 

 

   

 

 

 

Adjusted EBITDA (2) (6)

  $78,583  $53,294
  

 

 

   

 

 

 

Adjusted Other Operating Income Reconciliation:

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 

Other operating income

  $8,701  $—  

Add:

    

Certain items (1)

   (8,701   —   
  

 

 

   

 

 

 

Adjusted other operating income (3) (6)

  $  —  $—  
  

 

 

   

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 

Net income attributable to Amedisys, Inc.

  $49,870  $31,802

Add:

    

Certain items (1)

   1,267   2,987
  

 

 

   

 

 

 

Adjusted net income attributable to Amedisys, Inc. (4) (6)

  $51,137  $34,789
  

 

 

   

 

 

 

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

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 

Net income attributable to Amedisys, Inc. common stockholders per diluted share

  $1.50  $0.96

Add:

    

Certain items (1)

   0.04   0.09
  

 

 

   

 

 

 

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)

  $1.54  $1.05
  

 

 

   

 

 

 

 

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(1)

The following details the certain items for the three-month periods ended March 31, 2021 and 2020:

Certain Items:

 

   For the Three-Month Periods
Ended March 31,
 
   2021   2020 
   (Income) Expense   (Income) Expense 

Certain Items Impacting Other Operating Income:

    

CARES Act & State COVID-19 grants

  $(8,701  $—  

Certain Items Impacting Cost of Service:

    

COVID-19 costs

   8,480   1,017

Certain Items Impacting Operating Expenses:

    

Acquisition and integration costs

   1,199   2,336

COVID-19 costs

   217   12

Certain Items Impacting Total Other Income (Expense):

    

Interest component of certain items

   517   446

Other (income) expense, net

   —      225
  

 

 

   

 

 

 

Total

  $1,712  $4,036
  

 

 

   

 

 

 

Net of tax

   1,267   2,987
  

 

 

   

 

 

 

Diluted EPS

  $0.04  $0.09
  

 

 

   

 

 

 

 

(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 other operating income is defined as other operating income excluding certain items as described in footnote 1.

(4)

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.

(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 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.

 

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