Amedisys net service revenue decreases 11.8% to $364.3 million

Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the first quarter ended March 31, 2011 and reaffirms 2011 guidance.

“Our financial performance for the quarter reflects mixed operating results. Our aggressive efforts over the past few quarters to drive down costs and improve efficiencies generated positive results. However, soft admissions volume drove revenue below our expectations. Going forward, our clear objective is to improve internal growth”

Three-Month Periods Ended March 31, 2011 and 2010

  • Net service revenue of $364.3 million compared to $413.0 million in 2010, a decrease of $48.7 million or 11.8%. Same store agencies decreased $40.5 million, $16.2 million of the decrease related to agencies closed or consolidated during 2010 offset by $8.0 million in revenue related to start-up and acquisition agencies.
  • Net income attributable to Amedisys, Inc. of $15.3 million compared to $36.6 million in 2010, a decrease of $21.4 or 58.3%.
  • Diluted earnings per share of $0.53 compared to $1.29 per diluted share in 2010, a decrease of 58.9%. The weighted average number of diluted shares outstanding increased to approximately 28.9 million compared to 28.4 million in 2010.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") of $36.8 million compared to $70.7 million in 2010, a decrease of 48.0%.
  • After adding back $4.4 million ($2.7 million, net of income tax) or $0.09 per diluted share in certain items, the following would have been our adjusted results:
    • Net income attributable to Amedisys, Inc. of $18.0 million compared to $36.6 million in 2010, a decrease of 51.0%.
    • Diluted earnings per share of $0.62 compared to $1.29 per diluted share in 2010, a decrease 51.9%.
    • EBITDA of $41.2 million compared to $70.7 million in 2010, a decrease of 41.7%.

"Our financial performance for the quarter reflects mixed operating results. Our aggressive efforts over the past few quarters to drive down costs and improve efficiencies generated positive results. However, soft admissions volume drove revenue below our expectations. Going forward, our clear objective is to improve internal growth," stated William F. Borne, Chief Executive Officer of Amedisys, Inc. "Our balance sheet strength continued to improve over the quarter, leaving us well positioned for acquisitive growth such as our recently announced deal to acquire Beacon Hospice."

2011 Guidance

  • Net service revenue is anticipated to be in the range of $1.600 billion to $1.650 billion.
  • Diluted earnings per share is expected to be in the range of $3.00 to $3.30 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; the impact of any future Medicare rate changes; or the impact, if any, of the new regulatory requirements, including face-to-face and therapy requirements.

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