Amedisys Reports Fourth Quarter and Year End 2020 Financial Results

Issues 2021 Guidance; Announces Executive Promotions


BATON ROUGE, La., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2020.

Three-Month Periods Ended December 31, 2020 and 2019

  • Net service revenue increased $50.0 million to $550.7 million compared to $500.7 million in 2019.

  • Net income attributable to Amedisys, Inc. of $45.2 million compared to $27.7 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $1.36 compared to $0.83 in 2019.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $78.1 million compared to $52.2 million in 2019.

  • Adjusted net service revenue of $550.7 million compared to $500.7 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $49.5 million compared to $31.1 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.49 compared to $0.94 in 2019.

Years Ended December 31, 2020 and 2019

  • Net service revenue increased $115.9 million to $2,071.5 million compared to $1,955.6 million in 2019.

  • Net income attributable to Amedisys, Inc. of $183.6 million compared to $126.8 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $5.52 compared to $3.84 in 2019.

Adjusted Year End Results*

  • Adjusted EBITDA of $273.5 million compared to $225.3 million in 2019.

  • Adjusted net service revenue of $2,071.5 million compared to $1,961.6 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $203.3 million compared to $145.2 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $6.11 compared to $4.40 in 2019.

*  See pages 13-16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

2021 Guidance

  • Net service revenue is anticipated to be in the range of $2.275 billion to $2.315 billion.

  • Adjusted EBITDA is anticipated to be in the range of $315 million to $325 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $6.25 to $6.47 based on an estimated 33.4 million shares outstanding.

This guidance excludes the effects of any future acquisitions and potential share repurchases, if any are made.

Executive Promotions

On February 18, 2021, the Board of Directors (the “Board”) of the Company promoted Christopher T. Gerard, currently the Company’s Chief Operating Officer, to President and Chief Operating Officer and Scott G. Ginn, currently the Company’s Chief Financial Officer, to Executive Vice President and Chief Financial Officer, effective immediately.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “I am very proud of our fourth quarter and full year 2020 results. This was an incredible year under normal circumstances, throw in PDGM and a pandemic and I really could not be more proud of the team for all we accomplished. A special thank you to all of our clinician staff for continuing to do what you do best. It is because of your compassion, bravery and tireless efforts that we are able to deliver another great quarter. I would also like to congratulate Chris Gerard on his promotion to President and COO and Scott Ginn on his promotion to Executive Vice President and CFO. Chris and Scott have been integral to both the company’s operational success as well as in setting our strategic direction. This is a fitting reward for their great work!”

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, 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, February 25, 2021, at 11:00 a.m. ET to discuss its fourth quarter and year end 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 March 25, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13715337.

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 net service revenue, defined as net service revenue excluding certain items; (3) adjusted other operating income, defined as other operating income excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5) 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.

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 protest or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions 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.

   
Contact:Investor Contact:Media Contact:
 Amedisys, Inc.Amedisys, Inc.
 Nick MuscatoKendra Kimmons
 Senior Vice President, FinanceVice President, Marketing & Communications
 (855) 259-2046(225) 299-3720
 IR@amedisys.comkendra.kimmons@amedisys.com

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

     
 For the Three-Month 
Periods Ended December 31,
  For the Years Ended 
December 31,
 
 2020
  2019
  2020
  2019
 
       
 (Unaudited)
      
Net service revenue$550,705  $500,678  $2,071,519  $1,955,633 
Other operating income 6,780      34,372    
Cost of service, excluding depreciation and amortization 306,736   295,603   1,185,369   1,150,337 
General and administrative expenses:       
Salaries and benefits 119,119   101,325   449,448   394,452 
Non-cash compensation 6,972   6,589   26,730   25,040 
Other 49,506   48,150   192,122   188,434 
Depreciation and amortization 8,847   5,988   28,802   18,428 
Asset impairment charge 4,152   1,470   4,152   1,470 
                
        
Operating expenses 495,332   459,125   1,886,623   1,778,161 
                
        
Operating income 62,153   41,553   219,268   177,472 
Other income (expense):       
Interest income 34   19   292   78 
Interest expense (2,363)  (3,056)  (11,038)  (14,515)
Equity in earnings from equity method investments 1,567   1,218   3,966   5,338 
Miscellaneous, net 649   (367)  (1,669)  2,037 
                
                
        
Total other expense, net (113)  (2,186)  (8,449)  (7,062)
                
                
        
Income before income taxes 62,040   39,367   210,819   170,410 
Income tax expense (16,460)  (11,398)  (25,635)  (42,503)
                
        
Net income 45,580   27,969   185,184   127,907 
Net income attributable to noncontrolling interests (429)  (314)  (1,576)  (1,074)
                
        
Net income attributable to Amedisys, Inc.$45,151  $27,655  $183,608  $126,833 
                
Basic earnings per common share:               
Net income attributable to Amedisys, Inc. common stockholders$1.38  $0.86  $5.64  $3.95 
Weighted average shares outstanding 32,825   32,278   32,559   32,142 
Diluted earnings per common share:       
Net income attributable to Amedisys, Inc. common stockholders$1.36  $0.83  $5.52  $3.84 
Weighted average shares outstanding 33,243   33,123   33,268   32,990 

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

   
 As of December 31,
 
 2020
  2019
 
ASSETS       
Current assets:       
Cash and cash equivalents$81,808  $30,294 
Restricted cash 1,549   66,196 
Patient accounts receivable 255,145   237,596 
Prepaid expenses 10,217   8,243 
Other current assets 13,265   8,225 
      
Total current assets 361,984   350,554 
Property and equipment, net of accumulated depreciation of $95,024 and $96,137 23,719   28,113 
Operating lease right of use assets 93,440   84,791 
Goodwill 932,685   658,500 
Intangible assets, net of accumulated amortization of $22,973 and $7,044 74,183   64,748 
Deferred income taxes 47,987   21,427 
Other assets 33,200   54,612 
        
Total assets$1,567,198  $1,262,745 
        
LIABILITIES AND EQUITY       
Current liabilities:       
Accounts payable$42,674  $31,259 
Payroll and employee benefits 146,929   120,877 
Accrued expenses 166,192   137,111 
Provider relief fund advance 60,000    
Current portion of long-term obligations 10,496   9,927 
Current portion of operating lease liabilities 30,046   27,769 
        
Total current liabilities 456,337   326,943 
Long-term obligations, less current portion 204,511   232,256 
Operating lease liabilities, less current portion 61,987   56,128 
Other long-term obligations 33,622   5,905 
        
Total liabilities 756,457   621,232 
        
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; 37,470,212 and 36,638,021 shares issued; and 32,814,278 and 32,284,051 shares outstanding 38   37 
Additional paid-in capital 698,287   645,256 
Treasury stock at cost, 4,655,934 and 4,353,970 shares of common stock (319,092)  (251,241)
Accumulated other comprehensive income    15 
Retained earnings 429,991   246,383 
        
Total Amedisys, Inc. stockholders’ equity 809,224   640,450 
Noncontrolling interests 1,517   1,063 
        
Total equity 810,741   641,513 
        
Total liabilities and equity$1,567,198  $1,262,745 
        

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)

                
 For the Three-Month
Periods Ended December 31,
  For the Years Ended
December 31,
 
 2020
  2019
  2020
  2019
 
        
 (Unaudited)
        
Cash Flows from Operating Activities:               
Net income$45,580  $27,969  $185,184  $127,907 
Adjustments to reconcile net income to net cash provided by operating activities:               
Depreciation and amortization 8,847   5,988   28,802   18,428 
Non-cash compensation 6,972   6,589   26,730   25,040 
Non-cash 401(k) employer match    2,964      10,509 
Amortization and impairment of operating lease right of use assets 9,991   8,891   39,140   35,905 
Loss (gain) on disposal of property and equipment 47   135   (30)  141 
Loss on sale of equity method investment       2,980    
Write-off of other comprehensive income       (15)   
Deferred income taxes (23,798)  (4,332)  (26,560)  13,466 
Equity in earnings from equity method investments (1,567)  (1,218)  (3,966)  (5,338)
Amortization of deferred debt issuance costs/debt discount 216   220   869   873 
Return on equity investment 1,525   1,228   5,444   4,955 
Asset impairment charge 4,152   1,470   4,152   1,470 
Changes in operating assets and liabilities, net of impact of acquisitions:               
Patient accounts receivable (4,372)  15,323   2,114   (24,146)
Other current assets 21,036   7,512   (7,181)  (2,682)
Other assets 122   630   31   832 
Accounts payable 3,568   (3,184)  1,941   (11,329)
Accrued expenses 14,245   14,193   39,839   42,096 
Other long-term obligations (10,764)  (98)  27,717   (329)
Operating lease liabilities (9,119)  (8,179)  (34,695)  (32,295)
Operating lease right of use assets (769)  (881)  (3,544)  (3,503)
                
Net cash provided by operating activities 65,912   75,220   288,952   202,000 
                
Cash Flows from Investing Activities:               
Proceeds from sale of deferred compensation plan assets 7   161   101   448 
Proceeds from the sale of property and equipment    4   80   162 
Purchases of property and equipment (2,337)  (1,551)  (5,332)  (7,888)
Investments in equity method investees       (875)  (210)
Proceeds from sale of equity method investment       17,876    
Acquisitions of businesses, net of cash acquired 765      (298,958)  (345,460)
                
Net cash used in investing activities (1,565)  (1,386)  (287,108)  (352,948)
                
Cash Flows from Financing Activities:               
Proceeds from issuance of stock upon exercise of stock options 255   223   6,325   3,611 
Proceeds from issuance of stock to employee stock purchase plan 962   803   3,562   3,187 
Shares withheld to pay taxes on non-cash compensation (321)  (171)  (54,493)  (9,556)
Non-controlling interest distribution (450)  (152)  (1,122)  (1,062)
Proceeds from borrowings under term loan          175,000 
Proceeds from borrowings under revolving line of credit 252,200   70,000   684,200   262,500 
Repayments of borrowings under revolving line of credit (346,200)  (67,000)  (703,200)  (200,000)
Principal payments of long-term obligations (2,889)  (1,804)  (10,249)  (5,624)
Debt issuance costs          (847)
Provider relief fund advance       60,000    
                
Net cash (used in) provided by financing activities (96,443)  1,899   (14,977)  227,209 
Net (decrease) increase in cash, cash equivalents and restricted cash (32,096)  75,733   (13,133)  76,261 
Cash, cash equivalents and restricted cash at beginning of period 115,453   20,757   96,490   20,229 
                
Cash, cash equivalents and restricted cash at end of period$83,357  $96,490  $83,357  $96,490 
                
Supplemental Disclosures of Cash Flow Information:               
Cash paid for interest$1,305  $1,872  $6,207  $9,628 
                
Cash paid for income taxes, net of refunds received$20,431  $11,866  $50,721  $29,522 
                
Days revenue outstanding (1) 40.2   40.9   40.2   40.9 

(1)    Our calculation of days revenue outstanding, net is derived by dividing our ending net patient accounts receivable at December 31, 2020 and 2019 by our average daily net patient service revenue for the three-month periods ended December 31, 2020 and 2019, respectively.

AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)

Segment Information - Home Health

   
 For the Three-Month Periods
Ended December 31,
 
 2020
  2019
 
Financial Information (in millions):       
Medicare$228.3  $215.2 
Non-Medicare 101.1   101.0 
        
Net service revenue 329.4   316.2 
Other operating income 2.5    
Cost of service 186.1   191.7 
        
Gross margin 145.8   124.5 
Asset impairment charge 3.4   1.5 
Other operating expenses 81.5   77.4 
        
Operating income$60.9  $45.6 
        
Same Store Growth (1):       
Medicare revenue 6%  2%
Non-Medicare revenue %  10%
Total admissions 6%  4%
Total volume (2) 5%  4%
Key Statistical Data - Total (3):       
Admissions 85,474   81,024 
Recertifications 45,932   44,072 
        
Total volume 131,406   125,096 
        
Medicare completed episodes (6) 80,008   77,291 
Average Medicare revenue per completed episode (4) (6)$2,906  $2,852 
Medicare visits per completed episode (5) (6) 14.0   16.8 
        
Visiting Clinician Cost per Visit$92.62  $85.82 
Clinical Manager Cost per Visit$9.38  $8.44 
        
Total Cost per Visit$102.00  $94.26 
        
Visits 1,824,557   2,034,550 


   
 For the Years Ended
December 31,
 
 2020
  2019
 
Financial Information (in millions):       
Medicare$847.3  $859.2 
Non-Medicare 401.9   397.2 
        
Net service revenue 1,249.2   1,256.4 
Other operating income 20.2    
Cost of service 729.9   754.1 
        
Gross margin 539.5   502.3 
Asset impairment charge 3.4   1.5 
Other operating expenses 311.1   301.4 
        
Operating income$225.0  $199.4 
        
Same Store Growth (1):       
Medicare revenue (1%)  4%
Non-Medicare revenue 1%  16%
Total admissions 1%  7%
Total volume (2) 2%  5%
Key Statistical Data - Total (3):       
Admissions 331,354   328,693 
Recertifications 181,195   172,568 
        
Total volume 512,549   501,261 
        
Medicare completed episodes (6) 301,856   306,520 
Average Medicare revenue per completed episode (4) (6)$2,836  $2,853 
Medicare visits per completed episode (5) (6) 14.9   17.0 
        
Visiting Clinician Cost per Visit$89.62  $83.11 
Clinical Manager Cost per Visit$9.17  $8.04 
        
Total Cost per Visit$98.79  $91.15 
        
Visits 7,388,549   8,273,308 

(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. Effective July 1, 2019, 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 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 for the three-month period and year ended December 31, 2020 reflects the 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 year calculation.

Segment Information - Hospice

 For the Three-Month Periods
Ended December 31,
 
 2020
  2019
 
Financial Information (in millions):       
Medicare$193.5  $156.6 
Non-Medicare 10.4   8.0 
        
Net service revenue 203.9   164.6 
Other operating income 4.2    
Cost of service 107.5   89.2 
        
Gross margin 100.6   75.4 
Asset impairment charge 0.8    
Other operating expenses 48.5   38.2 
        
Operating income$51.3  $37.2 
        
Same Store Growth (1):       
Medicare revenue 4%  9%
Hospice admissions 15%  1%
Average daily census %  8%
Key Statistical Data - Total (2):       
Hospice admissions 13,939   10,139 
Average daily census 13,793   11,660 
Revenue per day, net$160.72  $153.42 
Cost of service per day$84.72  $83.13 
Average discharge length of stay 102   100 
  
 For the Years Ended
December 31,
 
 2020
  2019
 
Financial Information (in millions):       
Medicare$710.0  $586.6 
Non-Medicare 40.1   30.6 
        
Net service revenue 750.1   617.2 
Other operating income 13.1    
Cost of service 400.6   335.1 
        
Gross margin 362.6   282.1 
Asset impairment charge 0.8    
Other operating expenses 177.6   139.1 
        
Operating income$184.2  $143.0 
        
Same Store Growth (1):       
Medicare revenue 4%  7%
Hospice admissions 6%  4%
Average daily census 1%  7%
Key Statistical Data - Total (2):       
Hospice admissions 49,694   40,194 
Average daily census 13,081   11,164 
Revenue per day, net$156.69  $151.47 
Cost of service per day$83.67  $82.24 
Average discharge length of stay 99   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. Effective July 1, 2019, 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 and denovos.

Segment Information - Personal Care

 For the Three-Month Periods
Ended December 31,
 2020
 2019
Financial Information (in millions):     
Medicare$ $
Non-Medicare 17.4  19.9
      
Net service revenue 17.4  19.9
Other operating income 0.1  
Cost of service 13.2  14.7
      
Gross margin 4.3  5.2
Other operating expenses 3.0  3.0
      
Operating income$1.3 $2.2
      
Key Statistical Data - Total (1):     
Billable hours 662,163  802,225
Clients served 10,057  12,300
Shifts 281,445  359,255
Revenue per hour$26.24 $24.88
Revenue per shift$61.74 $55.56
Hours per shift 2.4  2.2


 For the Years Ended
December 31,
 2020
 2019
Financial Information (in millions):     
Medicare$ $
Non-Medicare 72.2  82.0
      
Net service revenue 72.2  82.0
Other operating income 1.1  
Cost of service 54.9  61.1
      
Gross margin 18.4  20.9
Other operating expenses 12.6  12.5
      
Operating income$5.8 $8.4
      
Key Statistical Data - Total (1):     
Billable hours 2,730,121  3,308,338
Clients served 15,019  17,364
Shifts 1,177,586  1,488,175
Revenue per hour$26.45 $24.80
Revenue per shift$61.31 $55.13
Hours per shift 2.3  2.2

(1)    Total includes acquisitions.

Segment Information - Corporate

 For the Three-Month Periods
Ended December 31,
 2020
 2019
Financial Information (in millions):     
Other operating expenses$44.0 $38.9
Depreciation and amortization 7.3  4.5
      
Total operating expenses$51.3 $43.4
      
      
 For the Years Ended
December 31,
 2020
 2019
Financial Information (in millions):     
Other operating expenses$173.2 $160.9
Depreciation and amortization 22.5  12.4
      
Total operating expenses$195.7 $173.3
      

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 December 31,
  For the Years Ended
December 31,
 
 2020
  2019
  2020
  2019
 
Net income attributable to Amedisys, Inc.$45,151  $27,655  $183,608  $126,833 
Add:               
Income tax expense 16,460   11,398   25,635   42,503 
Interest expense, net 2,329   3,037   10,746   14,437 
Depreciation and amortization 8,847   5,988   28,802   18,428 
Certain items (1) 5,815   4,618   26,658   24,877 
Interest component of certain items (1) (464)  (451)  (1,914)  (1,789)
                
Adjusted EBITDA (2) (7)$78,138  $52,245  $273,535  $225,289 
                

Adjusted Net Service Revenue Reconciliation:

 For the Three-Month Periods
Ended December 31,
 For the Years Ended
December 31,
 2020
 2019
 2020
 2019
Net service revenue$550,705 $500,678 $2,071,519 $1,955,633
Add:           
Certain items (1)   6    5,999
            
Adjusted net service revenue (3) (7)$550,705 $500,684 $2,071,519 $1,961,632
            

Adjusted Other Operating Income Reconciliation:

 For the Three-Month Periods
Ended December 31,
 For the Years Ended
December 31,
 2020
  2019
 2020
  2019
Other operating income$6,780  $ $34,372  $
Add:             
Certain items (1) (6,780)    (34,372)  
              
Adjusted other operating income (4) (7)$  $ $  $
              

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 For the Three-Month Periods
Ended December 31,
 For the Years Ended
December 31,
 2020
 2019
 2020
 2019
Net income attributable to Amedisys, Inc.$45,151 $27,655 $183,608 $126,833
Add:           
Certain items (1) 4,303  3,417  19,727  18,409
            
Adjusted net income attributable to Amedisys, Inc. (5) (7)$49,454 $31,072 $203,335 $145,242
            

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

 For the Three-Month Periods
Ended December 31,
 For the Years Ended
December 31,
 2020
 2019
 2020
 2019
Net income attributable to Amedisys, Inc. common stockholders per diluted share$1.36 $0.83 $5.52 $3.84
Add:           
Certain items (1) 0.13  0.10  0.59  0.56
            
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7)$1.49 $0.94 $6.11 $4.40
            

(1)    The following details the certain items for the three-month periods and years ended December 31, 2020 and 2019:

Certain Items:

 For the Three-Month Period
Ended December 31, 2020
  For the Year Ended
December 31, 2020
 
 (Income) Expense
  (Income) Expense
 
Certain Items Impacting Other Operating Income:       
CARES Act & State COVID-19 grants (6,780)  (34,372)
Certain Items Impacting Cost of Service:       
COVID-19 costs 6,568   33,967 
Severance - reductions in staffing levels    4,633 
Certain Items Impacting Operating Expenses:       
Acquisition and integration costs 1,234   10,795 
COVID-19 costs 177   1,562 
Severance - reductions in staffing levels    271 
Asset impairment 4,152   4,152 
Certain Items Impacting Total Other Income (Expense):       
Interest component of certain items 464   1,914 
Other (income) expense, net    3,736 
        
Total$5,815  $26,658 
        
Net of tax$4,303  $19,727 
        
Diluted EPS$0.13  $0.59 
        


 For the Three-Month Period
Ended December 31, 2019
 For the Year Ended
December 31, 2019
 
 (Income) Expense
 (Income) Expense
 
Certain Items Impacting Net Service Revenue:      
Contingency accrual$ $6,541 
Planned closures (8) 6  (542)
Certain Items Impacting Cost of Service:      
Planned closures (8) 2  1,174 
Certain Items Impacting Operating Expenses:      
Planned closures (8) 2  187 
Acquisition and integration costs 1,718  16,111 
Legal fees - non-routine 604  977 
Asset impairment 1,470  1,470 
Certain Items Impacting Total Other Income (Expense):      
Legal settlements   (1,437)
Interest component of certain items 451  1,789 
Other (income) expense, net 365  (1,393)
       
Total$4,618 $24,877 
       
Net of tax$3,417 $18,409 
       
Diluted EPS$0.10 $0.56 
       

(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 net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)    Adjusted other operating income is defined as other operating income excluding certain items as described in footnote 1.
(5)    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.
(6)    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.
(7)    Adjusted EBITDA, adjusted net service revenue, 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.
(8)    Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.