Amedisys Reports Second Quarter 2017 Financial Results

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| Source: Amedisys, Inc.

BATON ROUGE, La., July 26, 2017 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED) today reported its financial results for the three and six-month periods ended June 30, 2017.

Three Month Periods Ended June 30, 2017 and 2016

  • Net service revenue increased $18.1 million to $378.8 million compared to $360.7 million in 2016.
  • Net income attributable to Amedisys, Inc. of $4.5 million compared to $10.7 million in 2016.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.13 compared to $0.32 in 2016.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $36.1 million compared to $29.8 million in 2016.
  • Adjusted net service revenue of $378.8 million compared to $361.7 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. of $21.4 million compared to $14.1 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.62 compared to $0.42 in 2016.

Six Month Periods Ended June 30, 2017 and 2016

  • Net service revenue increased $39.7 million to $749.3 million compared to $709.6 million in 2016.
  • Net income attributable to Amedisys, Inc. of $19.6 million compared to $16.9 million in 2016.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.57 compared to $0.50 in 2016.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $68.1 million compared to $53.8 million in 2016.
  • Adjusted net service revenue of $749.3 million compared to $710.5 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. of $37.4 million compared to $25.0 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.09 compared to $0.74 in 2016.

* See pages 12 and 13 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “Overall, I am satisfied with our second quarter results. Our hospice segment continues to exceed expectations and our personal care segment is progressing well as they continue to integrate acquisitions and scale up. We have also made early progress with our strategies to recruit, retain, train and properly incentivize our home health business development staff. While home health volume was expectedly soft, we have identified the issues driving this trend and are executing upon the solutions. In home health, we anticipate returning to organic episodic admission growth in the third quarter. Most importantly, our clinical and outcomes metrics continued to improve across the board as we pursue our goal of clinical distinction to bring value to our patients, their families, our referral sources and payors. Finally, the operational efficiencies we have targeted are being reflected in increased adjusted EBITDA margins and strong cash flow, providing us with a flexible balance sheet to take advantage of strategic, inorganic opportunities. Thanks to our tremendous team, over 16,000 strong, for their continued dedication to serving our patients.”

We urge caution in considering the current trends disclosed in this press release. The home health and hospice industry is 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, 2016, and 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, July 27, 2017, at 11:00 a.m. ET to discuss its second 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 August 27, 2017 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13666366.

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 provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue 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 them to manage a chronic disease; or hospice care at the end of life. More than 2,200 hospitals and 61,900 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 16,000 employees, in 426 care centers in 34 states, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 385,000 patients 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.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “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: 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, 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, competition in the healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 attract and retain qualified personnel, 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, our ability to integrate, manage and keep our information systems secure, our ability to comply with requirements stipulated in our corporate integrity agreement and 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.


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 
 For the Three Month Period
Ended June 30,
 
For the Six Month Period
Ended June 30,
 
 
  2017    2016    2017    2016   
Net service revenue$  378,821 $  360,746 $  749,279 $  709,563 
Cost of service, excluding depreciation and amortization   219,765    206,505    435,550    408,342 
General and administrative expenses:     
Salaries and benefits    74,943    77,343    149,402    154,060 
Non-cash compensation    4,356    3,736    8,230    7,806 
Other   41,617    45,576    82,034    92,293 
Provision for doubtful accounts    4,651    4,253    10,992    8,193 
Depreciation and amortization    4,537    4,975    8,954    9,448 
Securities Class Action Lawsuit settlement, net   28,712    —     28,712    —  
Operating expenses   378,581    342,388    723,874    680,142 
Operating income   240    18,358    25,405    29,421 
Other income (expense):    
Interest income   41    9    60    31 
Interest expense    (1,197)   (1,303)   (2,265)   (2,415)
Equity in earnings from equity method investments    2,355    363    2,249    358 
Miscellaneous, net   1,127    658    2,239    1,393 
Total other income (expense), net    2,326    (273)   2,283    (633)
Income before income taxes    2,566    18,085    27,688    28,788 
Income tax benefit (expense)   1,963    (7,242)   (7,960)   (11,630)
Net income   4,529    10,843    19,728    17,158 
Net income attributable to noncontrolling interests    (68)   (147)   (137)   (249)
Net income attributable to Amedisys, Inc.$  4,461 $  10,696 $  19,591 $  16,909 
Basic earnings per common share:            
Net income attributable to Amedisys, Inc. common stockholders $  0.13 $  0.32 $  0.58 $  0.51 
Weighted average shares outstanding   33,637    33,197    33,540    33,059 
Diluted earnings per common share: 
Net income attributable to Amedisys, Inc. common stockholders $  0.13 $  0.32 $  0.57 $  0.50 
Weighted average shares outstanding   34,329    33,708    34,203    33,641 


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share data)
 
 June 30, 2017  December 31, 2016  
 
 (Unaudited)   
ASSETS  
Current assets:  
Cash and cash equivalents$  59,164 $  30,197 
Patient accounts receivable, net of allowance for doubtful accounts of $17,865 and $17,716    173,388    166,056 
Prepaid expenses   8,800    7,397 
Other current assets    31,789    11,260 
Total current assets   273,141    214,910 
Property and equipment, net of accumulated depreciation of $144,708 and $138,650    34,420    36,999 
Goodwill    313,663    288,957 
Intangible assets, net of accumulated amortization of $29,254 and $27,864    45,523    46,755 
Deferred income taxes    100,806    107,940 
Other assets, net   38,320    38,468 
Total assets $  805,873 $  734,029 
       
LIABILITIES AND EQUITY      
Current liabilities:       
Accounts payable $  29,119 $  30,358 
Payroll and employee benefits   81,331    82,480 
Accrued charge related to Securities Class Action Lawsuit settlement    43,750    —  
Accrued expenses    62,981    63,290 
Current portion of long-term obligations    8,137    5,220 
Total current liabilities    225,318    181,348 
Long-term obligations, less current portion    83,157    87,809 
Other long-term obligations    4,337    3,730 
Total liabilities   312,812    272,887 
Equity:       
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued
or outstanding 
   —     —  
Common stock, $0.001 par value, 60,000,000 shares authorized; 35,609,934 and 35,253,577 shares issued; and 33,850,633 and 33,597,215 shares outstanding   36    35 
Additional paid-in capital   555,029    537,472 
Treasury stock at cost, 1,759,301 and 1,656,362 shares of common stock   (52,500)   (46,774)
Accumulated other comprehensive income    15    15 
Retained deficit    (10,505)   (30,545)
Total Amedisys, Inc. stockholders’ equity    492,075    460,203 
Noncontrolling interests   986    939 
Total equity    493,061    461,142 
Total liabilities and equity$  805,873 $  734,029 
       


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET
(Amounts in thousands, except statistical information)
(Unaudited)
 
 For the Three Month Period Ended
June 30,  
For the Six Month Period Ended
 June 30,
 
 
  2017    2016    2017    2016   
Cash Flows from Operating Activities:      
Net income $  4,529 $  10,843 $  19,728 $  17,158 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization   4,537    4,975    8,954    9,448 
Provision for doubtful accounts   4,651    4,253    10,992    8,193 
Non-cash compensation   4,356    3,736    8,230    7,806 
401(k) employer match    2,140    1,703    4,367    3,440 
Loss on disposal of property and equipment    163    162    147    522 
Deferred income taxes   (1,863)   7,324    7,582    11,362 
Equity in earnings from equity method investments   (2,355)   (363)   (2,249)   (358)
Amortization of deferred debt issuance costs    185    185    370    370 
Return on equity investment   3,266    —     3,416    362 
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable    (5,332)   (2,660)   (17,825)   (30,349)
Other current assets    (3,489)   (2,294)   (6,892)   5,551 
Other assets    (158)   (9,168)   (1,148)   (11,943)
Accounts payable    1,000    (490)   1,093    8,608 
Securities Class Action Lawsuit settlement accrual, net    28,712    —     28,712    —  
Accrued expenses    (4,129)   (3,612)   (2,743)   (2,811)
Other long-term obligations    31    57    607    (464)
Net cash provided by operating activities   36,244    14,651    63,341    26,895 
Cash Flows from Investing Activities:            
Proceeds from sale of deferred compensation plan assets   —     —     565    230 
Purchase of investment    (180)   (432)   (436)   (432)
Purchases of property and equipment    (3,064)   (3,213)   (7,449)   (9,915)
Acquisitions of businesses, net of cash acquired    (20,029)   48    (24,128)   (27,634)
Net cash used in investing activities    (23,273)   (3,597)   (31,448)   (37,751)
Cash Flows from Financing Activities:            
Proceeds from issuance of stock upon exercise of stock options and warrants   3,550    —     4,203    —  
Proceeds from issuance of stock to employee stock
purchase plan 
   575    569    1,187    1,207 
Shares withheld upon stock vesting   (4,968)   —     (5,726)   —  
Tax benefit from stock options exercised and restricted stock vesting    —     6,971    —     7,130 
Non-controlling interest distribution   (48)   (200)   (90)   (200)
Proceeds from revolving line of credit   —     43,500    —     84,000 
Repayments of revolving line of credit    —     (58,500)   —     (84,000)
Principal payments of long-term obligations    (1,250)   (1,250)   (2,500)   (2,500)
Purchase of company stock    —     —     —     (12,315)
Net cash used in financing activities    (2,141)   (8,910)   (2,926)   (6,678)
Net increase (decrease) in cash and cash equivalents   10,830    2,144    28,967    (17,534)
Cash and cash equivalents at beginning of period    48,334    7,824    30,197    27,502 
Cash and cash equivalents at end of period$  59,164 $  9,968 $  59,164 $  9,968 
Supplemental Disclosures of Cash Flow Information:            
Cash paid for interest$  466 $  711 $  1,172 $  1,359 
Cash paid for income taxes, net of refunds received $  —  $  832 $  284 $  825 
Days revenue outstanding, net (1)   40.2    37.2    40.2    37.2 
 
(1) Our calculation of days revenue outstanding, net at June 30, 2017 and 2016 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three month periods ended June 30, 2017 and 2016, respectively.


AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
 
Segment Information - Home Health
 
 For the Three Month Period Ended June 30,  
 
  2017    2016   
Financial Information (in millions):      
Medicare $  198.3 $  208.4 
Non-Medicare    75.4    67.1 
Net service revenue   273.7    275.5 
Cost of service    164.8    160.3 
Gross margin    108.9    115.2 
Other operating expenses   73.3    77.4 
Operating income $  35.6 $  37.8 
       
   
Same Store Growth (1):  
Medicare revenue    (5%)   4%
Non-Medicare revenue    12%   13%
Medicare admissions    (4%)   4%
Total Episodic admissions    (1%)   5%
Total admissions   — %   3%
   
Key Statistical Data - Total (2):  
   
Medicare:  
Admissions    47,260    48,982 
Recertifications    26,839    26,020 
Completed episodes   73,872    74,027 
Visits   1,271,747    1,315,417 
Average revenue per completed episode (3)$  2,829 $  2,850 
Visits per completed episode (4)    17.5    17.7 
   
Non-Medicare:  
Admissions    26,225    24,237 
Recertifications    11,462    9,640 
Visits   579,328    515,062 
Visiting Clinician Cost per Visit $  80.61 $  79.44 
Clinical Manager Cost per Visit $  8.44 $  8.12 
Total Cost per Visit $  89.05 $  87.56 
Visits   1,851,075    1,830,479 


 For the Six Month Period Ended June 30,  
 
  2017    2016   
Financial Information (in millions):      
Medicare $  397.0 $  415.2 
Non-Medicare    148.0    133.0 
Net service revenue    545.0    548.2 
Cost of service   327.8    321.1 
Gross margin   217.2    227.1 
Other operating expenses    145.9    153.1 
Operating income $  71.3 $  74.0 
       
       
Same Store Growth (1):  
Medicare revenue   (4%)   4%
Non-Medicare revenue   12%   17%
Medicare admissions    (2%)   4%
Total Episodic admissions    1%   5%
Total admissions    1%   5%
   
Key Statistical Data - Total (2):  
   
Medicare:  
Admissions   96,888    99,400 
Recertifications    51,882    52,043 
Completed episodes    145,736    146,059 
Visits    2,534,845    2,626,788 
Average revenue per completed episode (3)$  2,750 $  2,831 
Visits per completed episode (4)   17.2    17.6 
   
Non-Medicare:  
Admissions   53,558    49,804 
Recertifications    21,686    19,466 
Visits    1,134,876    1,043,031 
   
Visiting Clinician Cost per Visit $  80.84 $  79.29 
Clinical Manager Cost per Visit $  8.49 $  8.22 
Total Cost per Visit $  89.33 $  87.51 
Visits    3,669,721    3,669,819 


(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue or admissions for the period as a percent of the Medicare and Non-Medicare revenue or admissions of the prior period. 
(2) Total includes acquisitions. 
(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. 
(4) 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.


Segment Information - Hospice
   
 For the Three Month Period Ended June 30,  
 
  2017    2016   
Financial Information (in millions):      
Medicare$  85.8 $  71.3 
Non-Medicare   4.9    4.5 
Net service revenue    90.7    75.8 
Cost of service   44.7    39.4 
Gross margin   46.0    36.4 
Other operating expenses    20.4    18.4 
Operating income$  25.6 $  18.0 
       
Same Store Growth (1):  
Medicare revenue   19%   14%
Non-Medicare revenue   8%   15%
Hospice admissions   11%   18%
Average daily census   16%   16%
Key Statistical Data - Total (2):  
Hospice admissions   6,248    5,576 
Average daily census   6,717    5,730 
Revenue per day, net$  148.39 $  145.40 
Cost of service per day$  73.08 $  75.69 
Average discharge length of stay    89    94 
  
 For the Six Month Period Ended June 30,  
 
  2017    2016   
Financial Information (in millions):      
Medicare$  166.5 $  140.0 
Non-Medicare   9.8    8.8 
Net service revenue    176.3    148.8 
Cost of service   87.1    78.2 
       
Gross margin   89.2    70.6 
Other operating expenses    41.2    36.3 
       
Operating income$  48.0 $  34.3 
       
Same Store Growth (1):      
Medicare revenue   18%   18%
Non-Medicare revenue   11%   15%
Hospice admissions   15%   19%
Average daily census   16%   19%
Key Statistical Data - Total (2):  
Hospice admissions   12,753    11,006 
Average daily census   6,542    5,618 
Revenue per day, net$  148.88 $  145.52 
Cost of service per day$  73.56 $  76.51 
Average discharge length of stay    90    95 


(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period. 
(2) Total includes acquisitions.


Segment Information - Personal Care
 
  
For the Three Month Period Ended June 30, 
  2017   2016  
Financial Information (in millions):    
Medicare $  — $  — 
Non-Medicare    14.4   9.4
Net service revenue   14.4   9.4
Cost of service    10.3   6.8
Gross margin    4.1   2.6
Other operating expenses   3.1   2.3
Operating income $  1.0$  0.3
     
Key Statistical Data:    
Billable hours   618,401   404,374
Clients served    8,470   5,940
     
  For the Six Month Period Ended June 30,
  2017 2016
Financial Information (in millions):    
Medicare $  — $  — 
Non-Medicare    28.0   12.5
Net service revenue   28.0   12.5
Cost of service    20.7   9.0
Gross margin    7.3   3.5
Other operating expenses   6.5   2.7
Operating income $  0.8$  0.8
     
Key Statistical Data:    
Billable hours   1,206,618   542,257
Clients served    10,169   6,866


Segment Information - Corporate
 
  For the Three Month Period Ended June 30, 
  2017   2016  
Financial Information (in millions):   
Other operating expenses $  30.0$  34.7
Depreciation and amortization   3.3   3.1
Total operating expenses before Securities Class Action Lawsuit settlement, net   33.3   37.8
Securities Class Action Lawsuit settlement, net    28.7   — 
Total operating expenses $  62.0$  37.8
   
  
  For the Six Month Period Ended June 30,
  2017   2016  
Financial Information (in millions):   
Other operating expenses $  59.5$  73.7
Depreciation and amortization   6.5   6.0
Total operating expenses before Securities Class Action Lawsuit settlement, net   66.0   79.7
Securities Class Action Lawsuit settlement, net    28.7   — 
Total operating expenses $  94.7$  79.7



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”):
 
 For the Three Month Period
Ended June 30,  
For the Six Month Period
Ended June 30,  
  2017    2016   2017   2016  
Net income attributable to Amedisys, Inc.$  4,461 $  10,696$  19,591$  16,909
Add:     
Income tax (benefit) expense   (1,963)   7,242   7,960   11,630
Interest expense, net    1,156    1,294   2,205   2,384
Depreciation and amortization    4,537    4,975   8,954   9,448
Certain items (1)    27,958    5,636   29,424   13,402
     
Adjusted EBITDA (2) (6)$  36,149 $  29,843$  68,134$  53,773
     
     
Adjusted Net Service Revenue Reconciliation:    
   
 For the Three Month Period
Ended June 30,  
For the Six Month Period
Ended June 30,  
  2017    2016   2017   2016  
Net service revenue $  378,821 $  360,746$  749,279$  709,563
Add:     
Certain items (1)    —     948   —    948
     
Adjusted net service revenue (3) (6)$  378,821 $  361,694$  749,279$  710,511
     
     
Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:    
   
 For the Three Month Period
Ended June 30,  
For the Six Month Period
Ended June 30,  
  2017    2016   2017   2016  
Net income attributable to Amedisys, Inc.$  4,461 $  10,696$  19,591$  16,909
Add:     
Certain items (1)    16,915    3,410   17,802   8,108
     
Adjusted net income attributable to Amedisys, Inc. (4) (6) $  21,376 $  14,106$  37,393$  25,017
     
     
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:    
   
 For the Three Month Period
Ended June 30,  
For the Six Month Period
Ended June 30,  
  2017    2016   2017   2016  
Net income attributable to Amedisys, Inc. common stockholders per diluted share $  0.13 $  0.32$  0.57$  0.50
Add:     
Certain items (1)    0.49    0.10   0.52   0.24
     
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)$  0.62 $  0.42$  1.09$  0.74
 
(1) The following details the certain items for the three and six month periods ended June 30, 2017 and 2016:


Certain Items:  
   
 For the Three Month Period
Ended June 30, 2017
 
 For the Six Month Period
Ended June 30, 2017
 
 
 (Income) Expense  
 (Income) Expense  
 
Certain Items Impacting Operating Expenses:       
Acquisition costs    294    976 
Legal fees - non-routine    1,111    1,234 
Securities Class Action Lawsuit settlement accrual, net    28,712    28,712 
Data center relocation    226    940 
Certain Items Impacting Total Other Income (Expense):       
Legal settlements    (693)   (1,367)
Miscellaneous, other (income) expense, net   (1,692)   (1,071)
       
Total $  27,958 $  29,424 
       
Net of tax $  16,915 $  17,802 
       
Diluted EPS $  0.49 $  0.52 
       
   
 For the Three Month Period
Ended June 30, 2016
 
 For the Six Month Period
Ended June 30, 2016  
 
 (Income) Expense  
 (Income) Expense  
 
Certain Items Impacting Net Service Revenue:       
Third party audit reserve$  948 $  948 
Certain Items Impacting Operating Expenses:       
HCHB implementation    2,593    5,033 
Acquisition costs    337    2,042 
Legal fees - non-routine    459    1,976 
Restructuring activity   1,485    3,247 
Data center relocation    9    456 
Certain Items Impacting Total Other Income (Expense):       
Legal settlements    (265)   (806)
Miscellaneous, other (income) expense, net   70    506 
       
Total $  5,636 $  13,402 
       
Net of tax $  3,410 $  8,108 
       
Diluted EPS $  0.10 $  0.24 


(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1. 
(3) Adjusted net service revenue is defined as net service revenue plus 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 net service revenue, 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 measure 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.


Contact:
Investor Contact:
Amedisys, Inc.
David Castille
Managing Director, Treasury/Finance
855-259-2046
IR@amedisys.com

Media Contact:
Amedisys, Inc.
Kendra Kimmons
Vice President, Marketing & Communications
(225) 299-3720
kendra.kimmons@amedisys.com