Amedisys (AMED) Prelim. Q3 EPS Misses Views

October 27, 2016 8:01 AM EDT

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Amedisys, Inc. (Nasdaq: AMED) announced preliminary financial results for the third quarter ended September 30, 2016. These preliminary results are subject to completion of the Company’s quarterly financial and accounting procedures.

Amedisys anticipates quarterly revenue of approximately $362 million and net income attributable to Amedisys, Inc. per diluted share between $0.33 and $0.35 on a GAAP basis. On an adjusted basis, net income attributable to Amedisys, Inc. per diluted share for the quarter is anticipated to be between $0.35 and $0.37.

*** The Street sees Q3 EPS of $0.44 and revenue of $361.1 million.

Overall volume for the quarter was solid, with same store home health Medicare admissions increasing 1% over last year and same store hospice admissions rising 16%. The Company also achieved its planned operating efficiencies during the period that we previously outlined. However, there were certain unexpected cost increases, the most significant of which were:

  • A $2.5 million increase in health insurance expenses above seasonal levels.
  • A $1.2 million increase in bad debt expense above recent trends.
    • We have experienced a $37.5 million increase in net patient accounts receivable since December 31, 2015. This increase is directly attributable to our conversion to HomeCare HomeBase. The increase in bad debt expense results from the aging of the receivable balance increase. We remain confident that these balances will decline and the ultimate collectability is not materially impacted.

Paul Kusserow, President and Chief Executive Officer of Amedisys, remarked, “Hospice and personal care volumes continue to be strong and above our plan. Our Medicare growth in home health, particularly in August, was below our plan. Our August growth results were disappointing as we worked through some challenging events in the organization, including the disastrous flooding in Baton Rouge. Our corporate headquarters in Baton Rouge were closed for a week and over 30% of our employee’s homes in the area were flooded. Additionally, we faced the most challenging quarter of our HomeCare HomeBase implementation. During the quarter, home health care centers representing approximately 50% of our patient census were in some phase of the implementation. As planned, the last group of 32 care centers will go live on the system next Monday, October 31st. This project has been an extensive undertaking executed at a remarkably fast pace and will be completed on time. I am incredibly proud of our team and their dedication through this transition.”

Kusserow added, “The extensive disruption in the third quarter and the winding down of the HomeCare HomeBase implementation in the fourth quarter will likely lead to some continued softness in home health volume. However, we are excited about the foundation we are building and are confident in our 2017 plan. We look forward to providing additional detail on our third quarter call.”

The Company plans to issue its earnings release for the quarter after the market closes on Thursday, November 3rd. The conference call to discuss results is scheduled for 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Friday, November 4th. To participate on the conference call, please call a few minutes 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 December 3, 2016. The replay dial in number is (877) 660-6853 (Toll free) or (201) 612-7415 (Toll) and use conference ID #13648537.

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.

Amedisys, Inc. (the “Company”) is headquartered in Baton Rouge, Louisiana and our common stock trades on the NASDAQ Global Select Market under the symbol “AMED”.

Information Regarding Preliminary Financial Results

The preliminary estimated financial information contained in this press release for the quarter ended September 30, 2016 reflects management’s estimates based solely upon information available to it as of the date of this press release and is not final. The preliminary estimated financial information presented above has not been reviewed by our independent registered public accounting firm, KPMG LLP. Accordingly, KPMG LLP does not express an opinion on or provide any other form of assurance with respect thereto and assumes no responsibility for this information. The information presented above should not be considered a substitute for full unaudited financial statements for the quarter ended September 30, 2016 once they become available and should not be regarded as a representation by us or our management as to our actual financial results for the quarter ended September 30, 2016. The ranges for the preliminary estimated financial results described above constitute forward-looking statements. The preliminary estimated financial information presented above is subject to change, and our actual financial results may differ from such preliminary estimates and such differences could be material. Accordingly, you should not place undue reliance upon these preliminary estimates.

AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
(Amounts in thousands)
(Unaudited)
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:
For the Three-Month Period Ended
September 30, 2016
Net income attributable to Amedisys, Inc. per diluted share$0.33 - $0.35
Add:
Certain items (2)0.02
Adjusted net income attributable to Amedisys, Inc. per diluted share (1) (3)$0.35 - $0.37

(1) Adjusted net income attributable to Amedisys, Inc. per diluted share is defined as net income attributable to Amedisys, Inc. per diluted share excluding the earnings per share effect of certain items as described in footnote 2.(2) The following details the certain items for the three-month period ended September 30, 2016:

For the Three-Month Period
Ended September 30, 2016
(Income) Expense
HCHB implementation$1,993
Acquisition costs 467
Legal fees - non-routine 374
Legal settlements (1,242)
Restructuring activity 1,965
Disaster relief 338
Miscellaneous, other (income) expense, net (2,737)
Total$1,158
Net of tax 700
Diluted EPS 0.02

(3) Adjusted net income attributable to Amedisys, Inc. per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

Contact:

Amedisys, Inc.
David Castille
Managing Director, Finance and Asst. Treasurer
225-299-3665
David.castille@amedisys.com

Source: Amedisys, Inc.



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