Amedisys Reports Fourth Quarter and Year-End 2023 Financial Results
Amedisys, Inc. reports financial results for Q4 and full year 2023, showing increased net service revenue but a net loss due to merger costs. Adjusted EBITDA and net income per diluted share declined compared to 2022.
Positive
Net service revenue increased to $570.8 million for Q4 2023 compared to $562.0 million in 2022.
Adjusted EBITDA was $56.7 million for Q4 2023, down from $59.9 million in 2022.
Net loss attributable to Amedisys, Inc. was $9.7 million for full year 2023, compared to net income of $118.6 million in 2022.
Adjusted net income per diluted share was $0.94 for Q4 2023, lower than $1.16 in 2022.
Adjusted net income attributable to Amedisys, Inc. was $140.6 million for full year 2023, a decrease from $163.4 million in 2022.
Negative
Net loss attributable to Amedisys, Inc. for full year 2023 was $9.7 million due to $142.7 million in merger costs.
Adjusted EBITDA and net income per diluted share declined in 2023 compared to 2022.
Amedisys will not hold a quarterly earnings call due to the pending merger with UnitedHealth Group Incorporated.
Reviewing Amedisys Inc.'s recent financial results reveals several key points that are critical to understanding the company's current fiscal health and future prospects. The reported increase in net service revenue, albeit modest, indicates resilience in core operations despite the divestiture of the personal care business. However, the net loss attributable to Amedisys Inc., primarily due to substantial costs associated with merger transactions, raises concerns about the impact of these one-time expenses on the company's short-term profitability.
It is also noteworthy that the adjusted EBITDA and adjusted net income figures, which exclude certain items, are lower compared to the previous year. This suggests underlying pressures on operational efficiency or possible increases in costs not directly related to the core services provided. Additionally, the decline in adjusted net income per diluted share year over year could be a red flag for investors seeking consistent earnings growth.
From a strategic standpoint, the pending merger with UnitedHealth Group Incorporated could significantly alter the company's trajectory, potentially unlocking synergies and expanding market reach. However, the absence of a quarterly earnings call due to the pending merger limits direct communication with investors, which might contribute to uncertainty in the short term.
The healthcare at home sector, in which Amedisys operates, is experiencing a growing demand due to an aging population and a general trend towards outpatient care. Amedisys's expansion of its service offerings and its partnership with over 3,000 hospitals and 110,000 physicians nationwide positions it well to capitalize on these market trends. However, the financial results indicate that despite revenue growth, profitability challenges persist.
Investors should monitor how Amedisys integrates its operations with UnitedHealth Group post-merger, as the success of this integration could be pivotal in realizing cost efficiencies and enhancing service capabilities. The competitive landscape of the healthcare at home industry is also a factor to consider, as consolidation within the industry could affect Amedisys's market share and bargaining power.
The reported financials of Amedisys underscore the impact of strategic decisions such as the divestiture of the personal care business and the pending merger. The divestiture might reflect a strategic refocusing on more profitable or core segments of home healthcare, which is a common trend in the industry aiming for optimized service delivery. Meanwhile, the merger with UnitedHealth Group could potentially enhance Amedisys's capabilities in high acuity care services, which are increasingly in demand.
However, the reported net loss and the decrease in adjusted net income raise questions about the company's cost management and the scalability of its business model in the face of industry headwinds such as regulatory changes and reimbursement challenges. These financial indicators are essential for stakeholders to assess the company's ability to maintain service quality and profitability amidst the evolving healthcare landscape.
02/21/2024 - 04:30 PM
BATON ROUGE, La., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2023.
Three-Month Periods Ended December 31, 2023 and 2022
Net service revenue increased $8.8 million to $570.8 million compared to $562.0 million in 2022. Prior year included $15.9 million of net service revenue from our personal care business which was divested on March 31, 2023. Net income attributable to Amedisys, Inc. of $19.3 million , which is inclusive of $11.5 million in costs associated with with our merger transactions, compared to $31.7 million in 2022. Net income attributable to Amedisys, Inc. per diluted share of $0.59 compared to $0.97 in 2022. Adjusted Quarterly Results*
Adjusted EBITDA of $56.7 million compared to $59.9 million in 2022. Adjusted net service revenue of $570.8 million compared to $562.0 million in 2022. Prior year included $15.9 million of net service revenue from our personal care business which was divested on March 31, 2023. Adjusted net income attributable to Amedisys, Inc. of $30.8 million compared to $38.0 million in 2022. Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.94 compared to $1.16 in 2022. Years Ended December 31, 2023 and 2022
Net service revenue increased $13.2 million to $2,236.4 million compared to $2,223.2 million in 2022. Prior year included $61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to $15.0 million in 2023. Net loss attributable to Amedisys, Inc. of $9.7 million , which is inclusive of $142.7 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $118.6 million in 2022. Net loss attributable to Amedisys, Inc. per diluted share of $0.30 compared to net income attributable to Amedisys, Inc. per diluted share of $3.63 in 2022. Adjusted Year End Results*
Adjusted EBITDA of $247.0 million compared to $262.1 million in 2022. Adjusted net service revenue of $2,236.4 million compared to $2,232.5 million in 2022. Prior year included $61.4 million of net service revenue from our personal care business which was divested on March 31, 2023 compared to $15.0 million in 2023. Adjusted net income attributable to Amedisys, Inc. of $140.6 million compared to $163.4 million in 2022. Adjusted net income attributable to Amedisys, Inc. per diluted share of $4.30 compared to $5.01 in 2022. * See pages 2 and 14-16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.
The supplemental slides provided in connection with the fourth quarter and year ended December 31, 2023 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 fourth quarter and year ended December 31, 2023 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 (loss) 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 net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share calculated in accordance with GAAP 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 high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes, home-based 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 3,000 hospitals and 110,000 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 521 care centers within 37 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 469,000 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,” “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 and timetable; 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; 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; 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: Media Contact: Amedisys, Inc. Amedisys, Inc. Nick Muscato Kendra Kimmons Chief Strategy Officer Vice President, Marketing & Communications (615) 928-5452 (225) 299-3720 IR@amedisys.com kendra.kimmons@amedisys.com
AMEDISYS, INC. AND SUBSIDIARIES For the Three-Month Periods Ended December 31, For the Years Ended December 31, 2023 2022 2023 2022 (Unaudited) Net service revenue $ 570,788 $ 562,064 $ 2,236,382 $ 2,223,199 Operating expenses: Cost of service, inclusive of depreciation 321,416 317,167 1,245,509 1,260,425 General and administrative expenses: Salaries and benefits 140,603 132,003 521,529 508,791 Non-cash compensation 7,114 570 26,082 16,560 Merger-related expenses 11,521 — 36,672 — Depreciation and amortization 4,143 5,230 17,747 24,935 Investment impairment — — — 3,009 Other 51,982 60,856 232,449 228,707 Total operating expenses 536,779 515,826 2,079,988 2,042,427 Operating income 34,009 46,238 156,394 180,772 Other income (expense): Interest income 818 70 3,270 178 Interest expense (8,234 ) (5,781 ) (31,274 ) (22,228 ) Equity in earnings (loss) from equity method investments 1,394 397 10,760 (45 ) Merger termination fee — — (106,000 ) — Miscellaneous, net 1,211 412 6,473 1,567 Total other expense, net (4,811 ) (4,902 ) (116,771 ) (20,528 ) Income before income taxes 29,198 41,336 39,623 160,244 Income tax expense (10,178 ) (9,790 ) (50,559 ) (42,545 ) Net income (loss) 19,020 31,546 (10,936 ) 117,699 Net loss attributable to noncontrolling interests 302 171 1,189 910 Net income (loss) attributable to Amedisys, Inc. $ 19,322 $ 31,717 $ (9,747 ) $ 118,609 Basic earnings per common share: Net income (loss) attributable to Amedisys, Inc. common stockholders $ 0.59 $ 0.98 $ (0.30 ) $ 3.65 Weighted average shares outstanding 32,635 32,511 32,599 32,517 Diluted earnings per common share: Net income (loss) attributable to Amedisys, Inc. common stockholders $ 0.59 $ 0.97 $ (0.30 ) $ 3.63 Weighted average shares outstanding 32,913 32,602 32,599 32,653
AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) As of December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 126,450 $ 40,540 Restricted cash 12,413 13,593 Patient accounts receivable 313,373 296,785 Prepaid expenses 14,639 11,628 Other current assets 30,060 26,415 Total current assets 496,935 388,961 Property and equipment, net of accumulated depreciation of $92,422 and $101,364 41,845 16,026 Operating lease right of use assets 88,939 102,856 Goodwill 1,244,679 1,287,399 Intangible assets, net of accumulated amortization of $14,008 and $14,604 102,675 101,167 Other assets 85,097 79,836 Total assets $ 2,060,170 $ 1,976,245 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 28,237 $ 43,735 Payroll and employee benefits 136,835 125,387 Accrued expenses 140,049 137,390 Termination fee paid by UnitedHealth Group 106,000 — Current portion of long-term obligations 36,314 15,496 Current portion of operating lease liabilities 26,286 33,521 Total current liabilities 473,721 355,529 Long-term obligations, less current portion 361,862 419,420 Operating lease liabilities, less current portion 62,751 69,504 Deferred income tax liabilities 40,635 20,411 Other long-term obligations 1,418 4,808 Total liabilities 940,387 869,672 Equity: Preferred stock, $0.00 1 par value, 5,000,000 shares authorized; none issued or outstanding — — Common stock, $0.00 1 par value, 60,000,000 shares authorized; 38,131,478 and 37,891,186 shares issued; and 32,667,631 and 32,511,465 shares outstanding 38 38 Additional paid-in capital 787,177 755,063 Treasury stock at cost, 5,463,847 and 5,379,721 shares of common stock (468,626 ) (461,200 ) Retained earnings 747,925 757,672 Total Amedisys, Inc. stockholders’ equity 1,066,514 1,051,573 Noncontrolling interests 53,269 55,000 Total equity 1,119,783 1,106,573 Total liabilities and equity $ 2,060,170 $ 1,976,245
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, 2023 2022 2023 2022 (Unaudited) Cash Flows from Operating Activities: Net income (loss) $ 19,020 $ 31,546 $ (10,936 ) $ 117,699 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization (inclusive of depreciation included in cost of service) 5,891 5,230 23,847 24,935 Non-cash compensation 9,400 570 29,024 16,560 Amortization and impairment of operating lease right of use assets 8,569 11,247 33,996 46,029 (Gain) loss on disposal of property and equipment (27 ) 12 319 519 Deferred income taxes 5,238 4,346 20,655 23,377 Loss on personal care divestiture — — 2,186 — Merger termination fee — — 106,000 — Equity in (earnings) loss from equity method investments (1,394 ) (397 ) (10,760 ) 45 Amortization of deferred debt issuance costs 248 248 991 991 Return on equity method investments 764 1,365 5,073 5,163 Investment impairment — — — 3,009 Changes in operating assets and liabilities, net of impact of acquisitions: Patient accounts receivable 6,207 4,036 (26,727 ) (14,230 ) Other current assets 8,796 16,404 (6,638 ) (3,525 ) Operating lease right of use assets (983 ) (919 ) (3,786 ) (3,242 ) Other assets (84 ) 155 189 438 Accounts payable (6,977 ) (992 ) (15,816 ) 4,894 Accrued expenses 13,354 (12,592 ) 23,694 (39,382 ) Other long-term obligations (234 ) (9,065 ) (3,390 ) (8,822 ) Operating lease liabilities (7,477 ) (10,311 ) (30,733 ) (41,175 ) Net cash provided by operating activities 60,311 40,883 137,188 133,283 Cash Flows from Investing Activities: Proceeds from the sale of deferred compensation plan assets 29 163 54 252 Proceeds from the sale of property and equipment 36 — 136 66 Purchases of property and equipment (1,892 ) (1,827 ) (5,620 ) (6,165 ) Investments in technology assets (212 ) (202 ) (7,093 ) (1,050 ) Investment in equity method investee — — — (637 ) Purchase of cost method investment — — — (15,000 ) Return of investment — — 150 — Proceeds from personal care divestiture — — 47,787 — Acquisitions of businesses, net of cash acquired — — (350 ) (71,952 ) Net cash (used in) provided by investing activities (2,039 ) (1,866 ) 35,064 (94,486 ) Cash Flows from Financing Activities: Proceeds from issuance of stock upon exercise of stock options — 1,226 100 2,304 Proceeds from issuance of stock to employee stock purchase plan — 991 2,602 3,848 Shares withheld to pay taxes on non-cash compensation (2,116 ) (32 ) (6,529 ) (7,981 ) Noncontrolling interest contributions 220 1,401 1,452 3,501 Noncontrolling interest distributions (259 ) (136 ) (1,873 ) (1,561 ) Proceeds from sale of noncontrolling interest — 1,876 — 5,817 Purchase of noncontrolling interest — — (800 ) — Proceeds from borrowings under revolving line of credit — 50,500 23,000 534,500 Repayments of borrowings under revolving line of credit — (69,000 ) (23,000 ) (534,500 ) Principal payments of long-term obligations (8,900 ) (3,170 ) (76,013 ) (13,296 ) Purchase of company stock — — — (17,351 ) Payment of accrued contingent consideration (2,370 ) — (6,461 ) (5,714 ) Net cash used in financing activities (13,425 ) (16,344 ) (87,522 ) (30,433 ) Net increase in cash, cash equivalents and restricted cash 44,847 22,673 84,730 8,364 Cash, cash equivalents and restricted cash at beginning of period 94,016 31,460 54,133 45,769 Cash, cash equivalents and restricted cash at end of period $ 138,863 $ 54,133 $ 138,863 $ 54,133 For the Three-Month Periods Ended December 31, For the Years Ended December 31, 2023 2022 2023 2022 (Unaudited) Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 7,888 $ 5,786 $ 29,766 $ 14,939 Cash paid for Infinity ZPIC interest $ — $ 1,211 $ — $ 12,755 Cash paid for income taxes, net of refunds received $ 4,809 $ 431 $ 29,127 $ 24,013 Supplemental Disclosures of Non-Cash Activity: Accrued contingent consideration $ — $ — $ — $ 19,195 Noncontrolling interest contribution $ — $ — $ — $ 8,900 Days revenue outstanding (1) 47.7 46.1 47.7 46.1
(1) Our calculation of days revenue outstanding at December 31, 2023 and 2022 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended December 31, 2023 and 2022, 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, 2023 2022 Financial Information (in millions) (6) : Medicare $ 221.1 $ 224.8 Non-Medicare 137.8 120.1 Net service revenue 358.9 344.9 Cost of service, inclusive of depreciation 208.0 197.3 Gross margin 150.9 147.6 General and administrative expenses 92.8 90.0 Depreciation and amortization 1.9 0.7 Operating income $ 56.2 $ 56.9 Same Store Growth (1) : Medicare revenue (1 %) (6 %) Non-Medicare revenue 15 % 8 % Total admissions 7 % 5 % Total volume(2) 5 % 1 % Key Statistical Data - Total (3)(6) : Admissions 101,809 95,006 Recertifications 44,893 44,670 Total volume 146,702 139,676 Medicare completed episodes 73,892 76,357 Average Medicare revenue per completed episode(4) $ 2,997 $ 2,995 Medicare visits per completed episode(5) 12.2 12.6 Visiting clinician cost per visit $ 108.64 $ 104.12 Clinical manager cost per visit 12.12 11.77 Total cost per visit $ 120.76 $ 115.89 Visits 1,721,985 1,702,334
For the Years Ended December 31, 2023 2022 Financial Information (in millions) (6) : Medicare $ 874.2 $ 896.5 Non-Medicare 529.4 465.2 Net service revenue 1,403.6 1,361.7 Cost of service, inclusive of depreciation 801.1 773.9 Gross margin 602.5 587.8 General and administrative expenses 363.5 351.1 Depreciation and amortization 6.0 4.0 Operating income $ 233.0 $ 232.7 Same Store Growth (1) : Medicare revenue (3 %) (5 %) Non-Medicare revenue 13 % 2 % Total admissions 6 % 3 % Total volume(2) 4 % — % Key Statistical Data - Total (3)(6) : Admissions 399,752 376,399 Recertifications 179,719 178,445 Total volume 579,471 554,844 Medicare completed episodes 295,017 305,455 Average Medicare revenue per completed episode(4) $ 2,998 $ 3,013 Medicare visits per completed episode(5) 12.4 12.9 Visiting clinician cost per visit $ 103.31 $ 100.03 Clinical manager cost per visit 11.58 11.19 Total cost per visit $ 114.89 $ 111.22 Visits 6,972,929 6,958,541
(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. 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.1% effective April 1, 2022 and at 2% effective July 1, 2022.
Segment Information - Hospice
For the Three-Month Periods Ended December 31, 2023 2022 Financial Information (in millions): Medicare $ 194.2 $ 186.3 Non-Medicare 11.8 11.3 Net service revenue 206.0 197.6 Cost of service, inclusive of depreciation 107.8 103.3 Gross margin 98.2 94.3 General and administrative expenses 48.9 51.3 Depreciation and amortization 0.9 0.6 Operating income $ 48.4 $ 42.4 Same Store Growth (1) : Medicare revenue 4 % (4 %) Hospice admissions (3 %) (8 %) Average daily census — % (2 %) Key Statistical Data - Total (2) : Hospice admissions 12,226 12,629 Average daily census 12,859 12,878 Revenue per day, net $ 174.10 $ 166.82 Cost of service per day $ 91.18 $ 87.21 Average discharge length of stay 97 94
For the Years Ended December 31, 2023 2022 Financial Information (in millions): Medicare $ 754.0 $ 744.1 Non-Medicare 44.8 43.7 Net service revenue 798.8 787.8 Cost of service, inclusive of depreciation 412.2 426.5 Gross margin 386.6 361.3 General and administrative expenses 193.1 203.3 Depreciation and amortization 3.0 2.3 Operating income $ 190.5 $ 155.7 Same Store Growth (1) : Medicare revenue 1 % (1 %) Hospice admissions (5 %) (1 %) Average daily census (1 %) (1 %) Key Statistical Data - Total (2) : Hospice admissions 49,587 52,656 Average daily census 12,863 13,091 Revenue per day, net $ 170.14 $ 164.88 Cost of service per day $ 87.80 $ 89.26 Average discharge length of stay 93 91
(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. 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.
Segment Information - Personal Care (1)
For the Three-Month Periods Ended December 31, 2023 2022 Financial Information (in millions): Medicare $ — $ — Non-Medicare — 15.9 Net service revenue — 15.9 Cost of service, inclusive of depreciation — 12.3 Gross margin — 3.6 General and administrative expenses — 2.3 Depreciation and amortization — — Operating income $ — $ 1.3 Key Statistical Data - Total: Billable hours — 453,644 Clients served — 7,720 Shifts — 193,220 Revenue per hour $ — $ 35.07 Revenue per shift $ — $ 82.34 Hours per shift — 2.3
For the Years Ended December 31, 2023 2022 Financial Information (in millions): Medicare $ — $ — Non-Medicare 15.0 61.4 Net service revenue 15.0 61.4 Cost of service, inclusive of depreciation 11.1 46.7 Gross margin 3.9 14.7 General and administrative expenses 2.3 9.2 Depreciation and amortization — 0.1 Operating income $ 1.6 $ 5.4 Key Statistical Data - Total: Billable hours 440,464 1,851,563 Clients served 7,892 10,448 Shifts 191,379 791,596 Revenue per hour $ 33.97 $ 33.15 Revenue per shift $ 78.19 $ 77.55 Hours per shift 2.3 2.3
(1) We completed the sale of our personal care business on March 31, 2023.
Segment Information - High Acuity Care
For the Three-Month Periods Ended December 31, 2023 2022 Financial Information (in millions) (1) : Medicare $ — $ — Non-Medicare 5.9 3.6 Net service revenue 5.9 3.6 Cost of service, inclusive of depreciation 5.6 4.3 Gross margin 0.3 (0.7 ) General and administrative expenses 5.4 5.0 Depreciation and amortization 0.8 0.9 Operating loss $ (5.9 ) $ (6.6 ) Key Statistical Data - Total: Full risk admissions 105 108 Limited risk admissions 600 374 Total admissions 705 482 Full risk revenue per episode $ 10,919 $ 12,282 Limited risk revenue per episode $ 6,901 $ 5,545 Number of admitting joint ventures 10 8
For the Years Ended December 31, 2023 2022 Financial Information (in millions) (1) : Medicare $ — $ — Non-Medicare 19.0 12.3 Net service revenue 19.0 12.3 Cost of service, inclusive of depreciation 21.1 13.3 Gross margin (2.1 ) (1.0 ) General and administrative expenses 20.4 19.7 Depreciation and amortization 3.1 3.3 Investment impairment — 3.0 Operating loss $ (25.6 ) $ (27.0 ) Key Statistical Data - Total: Full risk admissions 648 448 Limited risk admissions 1,804 1,142 Total admissions 2,452 1,590 Full risk revenue per episode $ 10,565 $ 11,273 Limited risk revenue per episode $ 6,187 $ 5,553 Number of admitting joint ventures 10 8
(1) Prior year has been recast to conform to the current year presentation.
Segment Information - Corporate
For the Three-Month Periods Ended December 31, 2023 2022 Financial Information (in millions) (1) : General and administrative expenses $ 64.1 $ 44.7 Depreciation and amortization 0.6 3.0 Total operating expenses $ 64.7 $ 47.7
For the Years Ended December 31, 2023 2022 Financial Information (in millions) (1) : General and administrative expenses $ 237.5 $ 170.8 Depreciation and amortization 5.6 15.2 Total operating expenses $ 243.1 $ 186.0
(1) Prior year has been recast to conform to the current year presentation.
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, 2023 2022 2023 2022 Net income (loss) attributable to Amedisys, Inc. $ 19,322 $ 31,717 $ (9,747 ) $ 118,609 Add: Income tax expense 10,178 9,790 50,559 42,545 Interest expense, net 7,416 5,711 28,004 22,050 Depreciation and amortization 5,891 5,230 23,847 24,935 Certain items(1) 13,846 7,441 154,344 58,361 Interest component of certain items(1) — — — (4,445 ) Adjusted EBITDA(2)(6) $ 56,653 $ 59,889 $ 247,007 $ 262,055
Adjusted Net Service Revenue Reconciliation:
For the Three-Month Periods Ended December 31, For the Years Ended December 31, 2023 2022 2023 2022 Net service revenue $ 570,788 $ 562,064 $ 2,236,382 $ 2,223,199 Add: Certain items(1) — — — 9,305 Adjusted net service revenue(3)(6) $ 570,788 $ 562,064 $ 2,236,382 $ 2,232,504
Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:
For the Three-Month Periods Ended December 31, For the Years Ended December 31, 2023 2022 2023 2022 Net income (loss) attributable to Amedisys, Inc. $ 19,322 $ 31,717 $ (9,747 ) $ 118,609 Add: Certain items(1) 11,500 6,251 150,384 44,838 Adjusted net income attributable to Amedisys, Inc.(4)(6) $ 30,822 $ 37,968 $ 140,637 $ 163,447
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, 2023 2022 2023 2022 Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share $ 0.59 $ 0.97 $ (0.30 ) $ 3.63 Add: Certain items(1) 0.35 0.19 4.60 1.37 Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6) $ 0.94 $ 1.16 $ 4.30 $ 5.01
(1) The following details the certain items for the three-month periods and years ended December 31, 2023 and 2022:
Certain Items:
For the Three-Month Period Ended December 31, 2023 For the Year Ended December 31, 2023 (Income) Expense (Income) Expense Certain Items Impacting Cost of Service, Inclusive of Depreciation: Clinical optimization and reorganization costs 199 595 Certain Items Impacting General and Administrative Expenses: Acquisition and integration costs 180 3,286 CEO transition 661 5,940 Merger-related expenses 11,521 36,672 Clinical optimization and reorganization costs 1,819 6,022 Personal care divestiture — 525 Certain Items Impacting Total Other Income (Expense): Other (income) expense, net* (534 ) 101,304 Total $ 13,846 $ 154,344 Net of tax $ 11,500 $ 150,384 Diluted EPS $ 0.35 $ 4.60
*Includes $106,000 m erger termination fee for the year ended December 31, 2023
For the Three-Month Period Ended December 31, 2022 For the Year Ended December 31, 2022 (Income) Expense (Income) Expense Certain Items Impacting Net Service Revenue: Contingency accrual $ — $ 9,305 Certain Items Impacting Cost of Service: COVID-19 costs 1,510 8,747 Clinical optimization and reorganization costs 33 1,382 Fuel supplement 261 3,576 Integration costs — 1,712 Certain Items Impacting General and Administrative Expenses: Acquisition and integration costs 1,443 11,298 COVID-19 costs 107 503 CEO transition — 3,500 Severance 993 993 Legal fees - non-routine — 241 Clinical optimization and reorganization costs 2,247 5,792 Legal settlement — (1,058 ) Fuel supplement 33 251 Investment impairment — 3,009 Certain Items Impacting Total Other Income (Expense): Interest component of certain items — 4,445 Other expense, net 814 4,665 Total $ 7,441 $ 58,361 Net of tax $ 6,251 $ 44,838 Diluted EPS $ 0.19 $ 1.37
(2) Adjusted EBITDA is defined as net income (loss) attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
What was the net service revenue for Amedisys, Inc. in Q4 2023?
The net service revenue for Amedisys, Inc. in Q4 2023 was $570.8 million.
What caused the net loss for Amedisys, Inc. in full year 2023?
The net loss was due to $142.7 million in merger costs.
How did adjusted net income per diluted share change in Q4 2023 compared to 2022?
Adjusted net income per diluted share decreased to $0.94 in Q4 2023 from $1.16 in 2022.
Why will Amedisys not conduct a quarterly earnings call for Q4 2023?
Amedisys will not hold a quarterly earnings call due to the pending merger with UnitedHealth Group Incorporated.
