Amedisys Reports First Quarter 2025 Financial Results

April 23, 2025 16:45 ET | Source: Amedisys, Inc. BATON ROUGE, La., April 23, 2025 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2025. Three-Month Periods Ended March 31, 2025 and 2024 Net service revenue increased $23.4 million to $594.8 million compared to $571.4 million in 2024.Net income attributable to Amedisys, Inc. of $61.0 million, which is inclusive of merger-related expenses totaling $16.8 million ($16.6 million, net of tax) and a $48.1 million gain on an equity method investment ($35.6 million, net of tax), compared to net income attributable to Amedisys, Inc. of $14.4 million, which is inclusive of merger-related expenses totaling $20.7 million ($19.8 million, net of tax) in 2024.Net income attributable to Amedisys, Inc. per diluted share of $1.84 compared to $0.44 in 2024. Adjusted Quarterly Results* Adjusted EBITDA of $68.8 million compared to $59.9 million in 2024.Adjusted net income attributable to Amedisys, Inc. of $41.6 million compared to $33.9 million in 2024.Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.25 compared to $1.03 in 2024. * See pages 7 - 8 for the definition and reconciliations of non-GAAP financial measures to GAAP measures. The supplemental slides provided in connection with the first quarter 2025 earnings release can be found on the Investor Relations page of our website. In light of the pending merger of the Company with UnitedHealth Group Incorporated, Amedisys will not conduct a quarterly earnings call to discuss the first quarter results. 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 income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (3) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share calculated in accordance with GAAP excluding certain items. Certain items include merger-related expenses, unusual or non-recurring expenses and certain non-operational 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 services company, delivering personalized home health, hospice and high acuity care services in the home. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based recovery and rehabilitation after an operation or injury, care focused on empowering our patients to manage a chronic disease, hospice care at the end of life or in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes. More than 3,300 hospitals and 114,000 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 19,000 employees in 519 care centers within 38 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 499,000 patients 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,” “will,” “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: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms or by the end of the waiver period under the merger agreement; the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger, including among other things, the action by the Department of Justice to block the merger; changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; 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 estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; the impact of new or increased tariffs; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of artificial intelligence ("AI") and generative AI and changes in laws 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:Amedisys, Inc.Nick MuscatoChief Strategy Officer(615) 928- 5452IR@amedisys.com Media Contact:Amedisys, Inc.Kendra KimmonsVice President, Marketing & Communications(225) 299-3720kendra.kimmons@amedisys.com AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED INCOME STATEMENTS(Amounts in thousands, except per share data) For the Three-Month Periods Ended March 31, 2025 2024 Net service revenue$594,781 $571,414 Operating expenses: Cost of service, inclusive of depreciation 334,050 321,537 General and administrative expenses: Salaries and benefits 131,968 127,946 Non-cash compensation 6,223 7,433 Merger-related expenses 16,769 20,667 Depreciation and amortization 4,447 4,271 Other 57,965 57,941 Total operating expenses 551,422 539,795 Operating income 43,359 31,619 Other income (expense): Interest income 2,873 1,727 Interest expense (6,422) (8,119)Equity in earnings from equity method investments 1,794 910 Gain on equity method investment 48,093 — Miscellaneous, net 1,508 1,090 Total other income (expense), net 47,846 (4,392)Income before income taxes 91,205 27,227 Income tax expense (29,384) (12,633)Net income 61,821 14,594 Net income attributable to noncontrolling interests (809) (194)Net income attributable to Amedisys, Inc.$61,012 $14,400 Basic earnings per common share: Net income attributable to Amedisys, Inc. common stockholders$1.86 $0.44 Weighted average shares outstanding 32,793 32,670 Diluted earnings per common share: Net income attributable to Amedisys, Inc. common stockholders$1.84 $0.44 Weighted average shares outstanding 33,218 32,979 AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share data) March 31, 2025 December 31, 2024ASSETS Current assets: Cash and cash equivalents$284,881 $303,242 Patient accounts receivable 319,639 296,075 Prepaid expenses 17,410 13,072 Other current assets 12,034 19,694 Total current assets 633,964 632,083 Property and equipment, net of accumulated depreciation of $103,758 and $100,890 40,186 42,108 Operating lease right of use assets 80,905 81,500 Goodwill 1,213,888 1,213,888 Intangible assets, net of accumulated amortization of $19,949 and $18,787 80,199 81,155 Other assets 135,432 87,980 Total assets$2,184,574 $2,138,714 LIABILITIES AND EQUITY Current liabilities: Accounts payable$28,705 $39,956 Payroll and employee benefits 131,722 151,995 Accrued expenses 162,180 152,564 Termination fee paid by UnitedHealth Group 106,000 106,000 Current portion of long-term obligations 37,579 37,968 Current portion of operating lease liabilities 25,845 25,909 Total current liabilities 492,031 514,392 Long-term obligations, less current portion 332,947 339,313 Operating lease liabilities, less current portion 55,642 56,111 Deferred income tax liabilities 58,032 48,051 Other long-term obligations 848 882 Total liabilities 939,500 958,749 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; 38,381,255 and 38,307,521 shares issued; 32,818,871 and 32,776,148 shares outstanding 38 38 Additional paid-in capital 825,138 818,201 Treasury stock, at cost, 5,562,384 and 5,531,373 shares of common stock (477,718) (474,854)Retained earnings 852,168 791,156 Total Amedisys, Inc. stockholders’ equity 1,199,626 1,134,541 Noncontrolling interests 45,448 45,424 Total equity 1,245,074 1,179,965 Total liabilities and equity$2,184,574 $2,138,714 AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING(Amounts in thousands, except statistical information) For the Three-Month Periods Ended March 31, 2025 2024 Cash Flows from Operating Activities: Net income$61,821 $14,594 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization (inclusive of depreciation included in cost of service) 6,787 6,138 Non-cash compensation 6,844 7,886 Amortization and impairment of operating lease right of use assets 8,645 8,566 (Gain) loss on disposal of property and equipment (34) 4 Gain on equity method investment (48,093) — Deferred income taxes 9,981 2,594 Equity in earnings from equity method investments (1,794) (910)Amortization of deferred debt issuance costs 248 248 Return on equity method investments 2,320 170 Changes in operating assets and liabilities: Patient accounts receivable (23,564) (46,806)Other current assets 3,480 (1,696)Operating lease right of use assets (1,186) (1,042)Other assets 88 155 Accounts payable (10,913) 8,652 Accrued expenses (10,658) 3,029 Other long-term obligations (34) (591)Operating lease liabilities (7,625) (7,532)Net cash used in operating activities (3,687) (6,541)Cash Flows from Investing Activities: Proceeds from the sale of deferred compensation plan assets 27 21 Proceeds from the sale of property and equipment 15 — Purchases of property and equipment (1,215) (2,670)Investments in technology assets (201) (223)Investment in equity method investee — (196)Net cash used in investing activities (1,374) (3,068)Cash Flows from Financing Activities: Proceeds from the issuance of stock upon exercise of stock options 93 — Shares withheld to pay taxes on non-cash compensation (2,864) (617)Noncontrolling interest contributions — 1,764 Noncontrolling interest distributions (785) (756)Principal payments of long-term obligations (9,744) (8,941)Net cash used in financing activities (13,300) (8,550)Net decrease in cash, cash equivalents and restricted cash (18,361) (18,159)Cash, cash equivalents and restricted cash at beginning of period 303,242 138,863 Cash, cash equivalents and restricted cash at end of period$284,881 $120,704 Supplemental Disclosures of Cash Flow Information: Cash paid for interest$6,177 $8,188 Cash paid for income taxes, net of refunds received$907 $828 Cash paid for operating lease liabilities$8,811 $8,574 Cash paid for finance lease liabilities$4,121 $2,236 Supplemental Disclosures of Non-Cash Activity: Right of use assets obtained in exchange for operating lease liabilities$7,006 $7,173 Right of use assets obtained in exchange for finance lease liabilities$3,158 $4,326 Reductions to right of use assets resulting from reductions to operating lease liabilities$75 $168 Reductions to right of use assets resulting from reductions to finance lease liabilities$415 $496 Days revenue outstanding (1) 45.7 54.1 (1) Our calculation of days revenue outstanding at March 31, 2025 and 2024 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended March 31, 2025 and 2024, respectively. AMEDISYS, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES(Amounts in thousands, except per share data) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Reconciliation: For the Three-Month PeriodsEnded March 31, 2025 2024Net income attributable to Amedisys, Inc.$61,012 $14,400Add: Income tax expense 29,384 12,633Interest expense, net 3,549 6,392Depreciation and amortization 6,787 6,138Certain items(1) (31,903) 20,296Adjusted EBITDA(2)(5)$68,829 $59,859 Adjusted Net Income Attributable to Amedisys, Inc Reconciliation: For the Three-Month PeriodsEnded March 31, 2025 2024Net income attributable to Amedisys, Inc.$61,012 $14,400Add: Certain items(1) (19,430) 19,548Adjusted net income attributable to Amedisys, Inc.(3)(5)$41,582 $33,948 Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation: For the Three-Month PeriodsEnded March 31, 2025 2024Net income attributable to Amedisys, Inc. common stockholders per diluted share$1.84 $0.44Add: Certain items(1) (0.59) 0.59Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(4)(5)$1.25 $1.03 (1) The following details the certain items for the three-month periods ended March 31, 2025 and 2024: Certain Items (in thousands): For the Three-Month PeriodsEnded March 31, 2025 2024 (Income) Expense (Income) ExpenseCertain Items Impacting General and Administrative Expenses: Merger-related expenses$16,769 $20,667 Certain Items Impacting Total Other Income (Expense): Other (income) expense, net (includes $48,093 gain on equity method investment) (48,672) (371)Total$(31,903) $20,296 Net of tax$(19,430) $19,548 Diluted EPS$(0.59) $0.59 (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 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.(4) 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.(5) Adjusted EBITDA, 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.

Amedisys Reports First Quarter 2025 Financial Results

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