Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the three and nine-month periods ended September 30, 2010. Net service revenue increased 4.2% while net income attributable to Amedisys, Inc., decreased 39.8% compared to the three-month period ended September 30, 2009.
Three-Month Periods Ended September 30, 2010 and 2009
• Net service revenue increased $16.4 million or 4.2% to $404.7 million compared to $388.3 million in 2009, with $8.4 million of the increase related to growth through base/start-up agencies.
• Net income attributable to Amedisys, Inc. decreased $14.3 million or 39.8% to $21.6 million compared to $35.9 million in 2009.
• Diluted earnings per share decreased 41.0% to $0.76 compared to $1.29 per diluted share in 2009. The weighted average number of diluted shares outstanding increased to approximately 28.5 million compared to 27.9 million in 2009.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased 32.7% to $46.5 million compared to $69.1 million in 2009.
• After adding back $6.3 million ($3.8 million, net of income tax) or $0.13 per diluted share in certain items*, the following would have been our adjusted results:
- Net income attributable to Amedisys, Inc. decreased 29.1% to $25.5 million compared to $35.9 million in 2009.
- Diluted earnings per share decreased 31.0% to $0.89 compared to $1.29 per diluted share in 2009.
- EBITDA decreased 24.9% to $51.9 million compared to $69.1 million in 2009.
Nine-Month Periods Ended September 30, 2010 and 2009
• Net service revenue increased $132.0 million or 11.9% to $1.2 billion compared to $1.1 billion in 2009, with $100.7 million of the increase related to growth through base/start-up agencies.
• Net income attributable to Amedisys, Inc. decreased $7.6 million or 7.7% to $90.5 million compared to $98.0 million in 2009.
• Diluted earnings per share decreased 10.4% to $3.18 compared to $3.55 per diluted share in 2009. The weighted average number of diluted shares outstanding increased to approximately 28.5 million compared to 27.6 million in 2009.
• EBITDA decreased 5.2% to $180.6 million compared to $190.4 million in 2009.
• After adding back $7.5 million ($4.6 million, net of income tax) or $0.16 per diluted share in certain items*, the following would have been our results:
- Net income attributable to Amedisys, Inc. decreased 3.1% to $95.0 million compared to $98.0 million in 2009.
- Diluted earnings per share decreased 5.9% to $3.34 compared to $3.55 per diluted share in 2009.
- EBITDA decreased 1.7% to $187.2 million compared to $190.4 million in 2009.
* See footnote 2 on page 7 for explanation of these certain items.
William F. Borne, Chief Executive Officer of Amedisys, Inc. stated, "The quarter's results reflect the volume fall-off we began experiencing in the second quarter. We have implemented a number of initiatives to better align our cost structure with current volume and improve our revenue moving forward. We continue to invest in delivering the highest quality care with a focus on operational efficiency and believe the long term prospects for the company are strong. These actions will better position the company moving forward."
Updated 2010 Guidance
- Net service revenue is anticipated to be in the range of $1.625 billion to $1.645 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 $4.35 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.