Amedisys Reports Second Quarter 2023 Financial Results
Amedisys, Inc. (NASDAQ: AMED) reported financial results for the three and six-month periods ended June 30, 2023. Net service revenue decreased $4.9 million to $553.0 million compared to $557.9 million in 2022. Net loss attributable to Amedisys, Inc. was $80.3 million, inclusive of $125.5 million in merger costs, compared to net income of $29.6 million in 2022. Adjusted EBITDA was $74.6 million, adjusted net service revenue was $553.0 million, and adjusted net income was $44.9 million. For the six-month period, net service revenue increased to $1,109.4 million. Net loss attributable to Amedisys, Inc. was $55.0 million, inclusive of $126.2 million in merger costs, compared to net income of $61.3 million in 2022. Adjusted EBITDA was $132.5 million, adjusted net service revenue was $1,109.4 million, and adjusted net income was $77.6 million. Amedisys decided to suspend guidance on 2023 financial performance due to the pending merger with UnitedHealth Group Incorporated.
Positive
Adjusted EBITDA remained stable compared to 2022.
Net service revenue increased for the six-month period.
Amedisys serves over 455,000 patients and clients annually.
Negative
Net loss attributable to Amedisys, Inc. was reported for both three and six-month periods.
Suspension of guidance on 2023 financial performance due to the pending merger.
07/26/2023 - 04:30 PM
BATON ROUGE, La., July 26, 2023 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June 30, 2023.
Three-Month Periods Ended June 30, 2023 and 2022
Net service revenue decreased $4.9 million to $553.0 million compared to $557.9 million in 2022. Net loss attributable to Amedisys, Inc. of $80.3 million , which is inclusive of $125.5 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $29.6 million in 2022. Net loss attributable to Amedisys, Inc. per diluted share of $2.46 compared to net income attributable to Amedisys, Inc. per diluted share of $0.91 in 2022. Adjusted Quarterly Results*
Adjusted EBITDA of $74.6 million compared to $74.4 million in 2022. Adjusted net service revenue of $553.0 million compared to $566.3 million in 2022. Adjusted net income attributable to Amedisys, Inc. of $44.9 million compared to $48.0 million in 2022. Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.37 compared to $1.47 in 2022. Six-Month Periods Ended June 30, 2023 and 2022
Net service revenue increased $6.3 million to $1,109.4 million compared to $1,103.1 million in 2022. Net loss attributable to Amedisys, Inc. of $55.0 million , which is inclusive of $126.2 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $61.3 million in 2022. Net loss attributable to Amedisys, Inc. per diluted share of $1.69 compared to net income attributable to Amedisys, Inc. of $1.87 in 2022. Adjusted Year to Date Results*
Adjusted EBITDA of $132.5 million compared to $140.7 million in 2022. Adjusted net service revenue of $1,109.4 million compared to $1,111.5 million in 2022. Adjusted net income attributable to Amedisys, Inc. of $77.6 million compared to $88.1 million in 2022. Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.38 compared to $2.69 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 second quarter 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 second quarter results and has decided to suspend guidance on 2023 financial performance.
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 (loss) 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 net income attributable to Amedisys, Inc., defined as net (loss) income attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net (loss) 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 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 102,000 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 18,500 employees in 522 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 455,000 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,” “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 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 inability to complete the proposed transaction due to the failure to obtain approval of the stockholders of Amedisys or to satisfy any other condition in a timely manner or at all; 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; the impact of the novel coronavirus pandemic ("COVID-19") on our business, financial condition and results of operations; 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: Amedisys, Inc. Nick Muscato Chief Strategy Officer (615) 928- 5452 IR@amedisys.com Media Contact: Amedisys, Inc. Kendra Kimmons Vice President, Marketing & Communications (225) 299-3720 kendra.kimmons@amedisys.com
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) (Unaudited) For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Net service revenue $ 552,968 $ 557,890 $ 1,109,357 $ 1,103,147 Operating expenses: Cost of service, inclusive of depreciation 297,455 316,211 612,465 621,031 General and administrative expenses: Salaries and benefits 125,504 127,758 251,843 251,238 Non-cash compensation 9,108 5,148 12,381 12,495 Depreciation and amortization 4,725 6,220 9,168 14,228 Other 78,381 54,912 143,326 108,552 Total operating expenses 515,173 510,249 1,029,183 1,007,544 Operating income 37,795 47,641 80,174 95,603 Other income (expense): Interest income 742 36 1,148 49 Interest expense (7,502 ) (8,311 ) (15,019 ) (11,484 ) Equity in earnings (loss) from equity method investments 7,991 659 8,114 (744 ) Merger termination fee (106,000 ) — (106,000 ) — Miscellaneous, net 4,743 331 4,061 664 Total other expense, net (100,026 ) (7,285 ) (107,696 ) (11,515 ) (Loss) income before income taxes (62,231 ) 40,356 (27,522 ) 84,088 Income tax expense (18,250 ) (11,319 ) (28,050 ) (23,338 ) Net (loss) income (80,481 ) 29,037 (55,572 ) 60,750 Net loss attributable to noncontrolling interests 206 542 543 500 Net (loss) income attributable to Amedisys, Inc. $ (80,275 ) $ 29,579 $ (55,029 ) $ 61,250 Basic earnings per common share: Net (loss) income attributable to Amedisys, Inc. common stockholders $ (2.46 ) $ 0.91 $ (1.69 ) $ 1.88 Weighted average shares outstanding 32,579 32,522 32,568 32,538 Diluted earnings per common share: Net (loss) income attributable to Amedisys, Inc. common stockholders $ (2.46 ) $ 0.91 $ (1.69 ) $ 1.87 Weighted average shares outstanding 32,579 32,681 32,568 32,722
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) June 30, 2023 (unaudited) December 31, ASSETS Current assets: Cash and cash equivalents $ 95,377 $ 40,540 Restricted cash 15,784 13,593 Patient accounts receivable 278,785 296,785 Prepaid expenses 13,774 11,628 Other current assets 22,824 26,415 Total current assets 426,544 388,961 Property and equipment, net of accumulated depreciation of $90,523 and $101,364 36,399 16,026 Operating lease right of use assets 85,142 102,856 Goodwill 1,244,679 1,287,399 Intangible assets, net of accumulated amortization of $17,714 and $14,604 104,744 101,167 Other assets 84,894 79,836 Total assets $ 1,982,402 $ 1,976,245 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 38,557 $ 43,735 Payroll and employee benefits 123,234 125,387 Accrued expenses 137,359 137,390 Termination fee paid by UnitedHealth Group 106,000 — Current portion of long-term obligations 31,465 15,496 Current portion of operating lease liabilities 25,786 33,521 Total current liabilities 462,401 355,529 Long-term obligations, less current portion 369,896 419,420 Operating lease liabilities, less current portion 59,634 69,504 Deferred income tax liabilities 28,085 20,411 Other long-term obligations 1,629 4,808 Total liabilities 921,645 869,672 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; 38,030,397 and 37,891,186 shares issued; 32,608,325 and 32,511,465 shares outstanding 38 38 Additional paid-in capital 768,789 755,063 Treasury stock, at cost, 5,422,072 and 5,379,721 shares of common stock (464,688 ) (461,200 ) Retained earnings 702,643 757,672 Total Amedisys, Inc. stockholders’ equity 1,006,782 1,051,573 Noncontrolling interests 53,975 55,000 Total equity 1,060,757 1,106,573 Total liabilities and equity $ 1,982,402 $ 1,976,245
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING (Amounts in thousands, except statistical information) (Unaudited) For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Cash Flows from Operating Activities: Net (loss) income $ (80,481 ) $ 29,037 $ (55,572 ) $ 60,750 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization (inclusive of depreciation included in cost of service) 6,199 6,220 11,893 14,228 Non-cash compensation 9,108 5,148 12,381 12,495 Amortization and impairment of operating lease right of use assets 8,349 12,367 16,971 22,463 Loss on disposal of property and equipment 426 526 356 531 Loss on personal care divestiture — — 2,186 — Merger termination fee 106,000 — 106,000 — Deferred income taxes 5,332 2,798 8,104 6,003 Equity in (earnings) loss from equity method investments (7,991 ) (659 ) (8,114 ) 744 Amortization of deferred debt issuance costs 247 247 495 495 Return on equity method investments 966 718 2,753 2,428 Changes in operating assets and liabilities, net of impact of acquisitions: Patient accounts receivable 15,338 (2,726 ) 7,862 (21,344 ) Other current assets 5,817 (12,350 ) 1,689 (4,468 ) Operating lease right of use assets (1,019 ) (913 ) (1,937 ) (1,662 ) Other assets 355 (27 ) 244 220 Accounts payable (1,274 ) 6,613 (4,731 ) 4,498 Accrued expenses 4,034 22,046 4,775 29,529 Other long-term obligations (3,151 ) (166 ) (3,179 ) (223 ) Operating lease liabilities (7,496 ) (11,470 ) (15,456 ) (20,657 ) Net cash provided by operating activities 60,759 57,409 86,720 106,030 Cash Flows from Investing Activities: Proceeds from the sale of deferred compensation plan assets 6 6 25 28 Proceeds from the sale of property and equipment 100 — 100 37 Purchases of property and equipment (1,394 ) (1,880 ) (2,744 ) (2,782 ) Investments in technology assets (6,457 ) (323 ) (6,667 ) (559 ) Purchase of cost method investment — — — (15,000 ) Proceeds from personal care divestiture — — 47,787 — Acquisitions of businesses, net of cash acquired — (73,311 ) (350 ) (73,311 ) Net cash (used in) provided by investing activities (7,745 ) (75,508 ) 38,151 (91,587 ) Cash Flows from Financing Activities: Proceeds from issuance of stock upon exercise of stock options 75 686 75 772 Proceeds from issuance of stock under employee stock purchase plan 938 906 1,754 1,891 Shares withheld to pay taxes on non-cash compensation (2,180 ) (80 ) (3,488 ) (4,762 ) Noncontrolling interest contributions 376 300 376 952 Noncontrolling interest distributions (427 ) (303 ) (712 ) (975 ) Proceeds from borrowings under revolving line of credit 15,000 298,500 23,000 298,500 Repayments of borrowings under revolving line of credit (15,000 ) (283,500 ) (23,000 ) (283,500 ) Principal payments of long-term obligations (5,680 ) (3,204 ) (60,993 ) (6,975 ) Purchase of company stock — (17,351 ) — (17,351 ) Payment of accrued contingent consideration (4,055 ) — (4,055 ) — Purchase of noncontrolling interest — — (800 ) — Net cash used in financing activities (10,953 ) (4,046 ) (67,843 ) (11,448 ) Net increase (decrease) in cash, cash equivalents and restricted cash 42,061 (22,145 ) 57,028 2,995 Cash, cash equivalents and restricted cash at beginning of period 69,100 70,909 54,133 45,769 Cash, cash equivalents and restricted cash at end of period $ 111,161 $ 48,764 $ 111,161 $ 48,764 For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 6,377 $ 2,625 $ 13,031 $ 4,489 Cash paid for income taxes, net of refunds received $ 15,468 $ 22,426 $ 15,820 $ 22,977 Cash paid for operating lease liabilities $ 8,516 $ 12,383 $ 17,394 $ 22,319 Cash paid for finance lease liabilities $ 2,864 $ 378 $ 5,321 $ 735 Supplemental Disclosures of Non-Cash Activity: Right of use assets obtained in exchange for operating lease liabilities $ 7,719 $ 15,387 $ 14,802 $ 26,590 Right of use assets obtained in exchange for finance lease liabilities $ 7,154 $ 1,100 $ 27,944 $ 1,316 Reductions to right of use assets resulting from reductions to operating lease liabilities $ 14,994 $ 2,464 $ 15,135 $ 2,763 Reductions to right of use assets resulting from reductions to finance lease liabilities $ 525 $ — $ 894 $ — Accrued contingent consideration $ — $ 19,195 $ — $ 19,195 Noncontrolling interest contribution $ — $ — $ — $ 8,900 Days revenue outstanding (1) 43.4 46.8 43.4 46.8
AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited) Segment Information - Home Health For the Three-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (6) : Medicare $ 219.8 $ 222.0 Non-Medicare 130.0 119.9 Net service revenue 349.8 341.9 Cost of service, inclusive of depreciation 194.5 194.7 Gross margin 155.3 147.2 General and administrative expenses 90.2 88.8 Depreciation and amortization 1.2 1.5 Operating income $ 63.9 $ 56.9 Same Store Growth (1) : Medicare revenue (1 %) (9 %) Non-Medicare revenue 10 % (3 %) Total admissions 4 % — % Total volume(2) 3 % (2 %) Key Statistical Data - Total (3)(6) : Admissions 97,453 94,063 Recertifications 45,808 45,821 Total volume 143,261 139,884 Medicare completed episodes 74,848 78,321 Average Medicare revenue per completed episode(4) $ 3,005 $ 3,051 Medicare visits per completed episode(5) 12.5 13.2 Visiting clinician cost per visit $ 99.81 $ 97.68 Clinical manager cost per visit 11.14 10.77 Total cost per visit $ 110.95 $ 108.45 Visits 1,752,449 1,795,611
For the Six-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (6) : Medicare $ 435.2 $ 446.1 Non-Medicare 257.9 231.5 Net service revenue 693.1 677.6 Cost of service, inclusive of depreciation 391.5 379.9 Gross margin 301.6 297.7 General and administrative expenses 179.3 172.0 Depreciation and amortization 2.3 2.4 Operating income $ 120.0 $ 123.3 Same Store Growth (1) : Medicare revenue (4 %) (4 %) Non-Medicare revenue 11 % — % Total admissions 6 % 1 % Total volume(2) 4 % (1 %) Key Statistical Data - Total (3)(6) : Admissions 199,416 185,827 Recertifications 89,133 88,677 Total volume 288,549 274,504 Medicare completed episodes 148,411 152,764 Average Medicare revenue per completed episode(4) $ 2,990 $ 3,032 Medicare visits per completed episode(5) 12.4 13.1 Visiting clinician cost per visit $ 99.83 $ 97.41 Clinical manager cost per visit 11.13 10.77 Total cost per visit $ 110.96 $ 108.18 Visits 3,527,655 3,511,822
2% and 1% for the three-month periods ended March 31, 2022 and June 30, 2022, respectively, and the reinstatement of sequestration at 2% for the three and six-month period ended June 30, 2023.
Segment Information - Hospice
For the Three-Month Periods Ended June 30, 2023 2022 Financial Information (in millions): Medicare $ 188.2 $ 187.5 Non-Medicare 11.0 10.9 Net service revenue 199.2 198.4 Cost of service, inclusive of depreciation 98.8 107.4 Gross margin 100.4 91.0 General and administrative expenses 47.9 51.6 Depreciation and amortization 0.7 0.6 Operating income $ 51.8 $ 38.8 Same Store Growth (1) : Medicare revenue — % — % Hospice admissions (6 %) 6 % Average daily census (2 %) — % Key Statistical Data - Total (2) : Hospice admissions 12,395 13,359 Average daily census 12,918 13,249 Revenue per day, net $ 169.47 $ 164.55 Cost of service per day $ 84.03 $ 89.05 Average discharge length of stay 90 87
For the Six-Month Periods Ended June 30, 2023 2022 Financial Information (in millions): Medicare $ 370.9 $ 370.0 Non-Medicare 21.7 21.4 Net service revenue 392.6 391.4 Cost of service, inclusive of depreciation 200.2 213.8 Gross margin 192.4 177.6 General and administrative expenses 95.8 102.9 Depreciation and amortization 1.3 1.3 Operating income $ 95.3 $ 73.4 Same Store Growth (1) : Medicare revenue — % — % Hospice admissions (6 %) 4 % Average daily census (1 %) (1 %) Key Statistical Data - Total (2) : Hospice admissions 25,393 27,245 Average daily census 12,825 13,086 Revenue per day, net $ 169.15 $ 165.28 Cost of service per day $ 86.24 $ 90.24 Average discharge length of stay 90 88
Segment Information - Personal Care (1)
For the Three-Month Periods Ended June 30, 2023 2022 Financial Information (in millions): Medicare $ — $ — Non-Medicare — 14.9 Net service revenue — 14.9 Cost of service, inclusive of depreciation — 11.4 Gross margin — 3.5 General and administrative expenses — 2.3 Depreciation and amortization — — Operating income $ — $ 1.2 Key Statistical Data - Total: Billable hours — 472,523 Clients served — 7,759 Shifts — 201,996 Revenue per hour $ — $ 31.59 Revenue per shift $ — $ 73.89 Hours per shift — 2.3
For the Six-Month Periods Ended June 30, 2023 2022 Financial Information (in millions): Medicare $ — $ — Non-Medicare 15.0 28.9 Net service revenue 15.0 28.9 Cost of service, inclusive of depreciation 11.1 22.2 Gross margin 3.9 6.7 General and administrative expenses 2.3 4.5 Depreciation and amortization — 0.1 Operating income $ 1.6 $ 2.1 Key Statistical Data - Total: Billable hours 440,464 923,555 Clients served 7,892 8,591 Shifts 191,379 395,738 Revenue per hour $ 33.97 $ 31.27 Revenue per shift $ 78.19 $ 72.99 Hours per shift 2.3 2.3
Segment Information - High Acuity Care
For the Three-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (1) : Medicare $ — $ — Non-Medicare 4.0 2.7 Net service revenue 4.0 2.7 Cost of service, inclusive of depreciation 4.2 2.7 Gross margin (0.2 ) — General and administrative expenses 5.3 5.2 Depreciation and amortization 0.8 0.8 Operating loss $ (6.3 ) $ (6.0 ) Key Statistical Data - Total: Full risk admissions 186 104 Limited risk admissions 348 241 Total admissions 534 345 Full risk revenue per episode $ 9,303 $ 11,278 Limited risk revenue per episode $ 6,098 $ 5,316 Number of admitting joint venture markets 11 9
For the Six-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (1) : Medicare $ — $ — Non-Medicare 8.7 5.2 Net service revenue 8.7 5.2 Cost of service, inclusive of depreciation 9.7 5.1 Gross margin (1.0 ) 0.1 General and administrative expenses 9.7 9.5 Depreciation and amortization 1.6 1.6 Operating loss $ (12.3 ) $ (11.0 ) Key Statistical Data - Total: Full risk admissions 344 210 Limited risk admissions 807 468 Total admissions 1,151 678 Full risk revenue per episode $ 10,236 $ 10,672 Limited risk revenue per episode $ 5,878 $ 5,541 Number of admitting joint venture markets 11 9
Segment Information - Corporate
For the Three-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (1) : General and administrative expenses $ 69.6 $ 40.0 Depreciation and amortization 2.0 3.3 Total operating expenses $ 71.6 $ 43.3
For the Six-Month Periods Ended June 30, 2023 2022 Financial Information (in millions) (1) : General and administrative expenses $ 120.4 $ 83.4 Depreciation and amortization 4.0 8.8 Total operating expenses $ 124.4 $ 92.2
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 June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Net (loss) income attributable to Amedisys, Inc. $ (80,275 ) $ 29,579 $ (55,029 ) $ 61,250 Add: Income tax expense 18,250 11,319 28,050 23,338 Interest expense, net 6,760 8,275 13,871 11,435 Depreciation and amortization 6,199 6,220 11,893 14,228 Certain items(1) 123,704 23,609 133,691 35,059 Interest component of certain items(1) — (4,652 ) — (4,652 ) Adjusted EBITDA(2)(6) $ 74,638 $ 74,350 $ 132,476 $ 140,658
For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Net service revenue $ 552,968 $ 557,890 $ 1,109,357 $ 1,103,147 Add: Certain items(1) — 8,374 — 8,374 Adjusted net service revenue(3) (6) $ 552,968 $ 566,264 $ 1,109,357 $ 1,111,521
For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Net (loss) income attributable to Amedisys, Inc. $ (80,275 ) $ 29,579 $ (55,029 ) $ 61,250 Add: Certain items(1) 125,153 18,373 132,642 26,847 Adjusted net income attributable to Amedisys, Inc.(4)(6) $ 44,878 $ 47,952 $ 77,613 $ 88,097
For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2023 2022 2023 2022 Net (loss) income attributable to Amedisys, Inc. common stockholders per diluted share $ (2.46 ) $ 0.91 $ (1.69 ) $ 1.87 Add: Certain items(1) 3.83 0.56 4.06 0.82 Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6) $ 1.37 $ 1.47 $ 2.38 $ 2.69
Certain Items (in thousands):
For the Three-Month Periods Ended June 30, 2023 For the Six-Month Periods Ended June 30, 2023 (Income) Expense (Income) Expense Certain Items Impacting Cost of Service, Inclusive of Depreciation: Clinical optimization and reorganization costs $ — $ 114 Certain Items Impacting General and Administrative Expenses: Acquisition and integration costs 1,101 2,768 Executive Board of Directors/CEO transition award 3,435 4,185 Merger-related legal and professional fees 19,451 20,171 Clinical optimization and reorganization costs 567 3,737 Personal care divestiture 11 525 Certain Items Impacting Total Other Income (Expense): Other (income) expense, net (includes $106,000 m erger termination fee) 99,139 102,191 Total $ 123,704 $ 133,691 Net of tax $ 125,153 $ 132,642 Diluted EPS $ 3.83 $ 4.06
For the Three-Month Periods Ended June 30, 2022 For the Six-Month Periods Ended June 30, 2022 (Income) Expense (Income) Expense Certain Items Impacting Net Service Revenue: Contingency accrual $ 8,374 $ 8,374 Certain Items Impacting Cost of Service: COVID-19 costs 1,803 5,536 Clinical optimization and reorganization costs 195 195 Fuel supplement 1,016 1,353 Integration costs 1,401 1,401 Certain Items Impacting General and Administrative Expenses: Acquisition and integration costs 5,323 6,701 COVID-19 costs 84 237 Executive Board of Directors/CEO transition award — 3,500 Legal fees - non-routine 190 241 Clinical optimization and reorganization costs 869 869 Legal settlement (1,058 ) (1,058 ) Certain Items Impacting Total Other Income (Expense): Interest component of certain items 4,652 4,652 Other (income) expense, net 760 3,058 Total $ 23,609 $ 35,059 Net of tax $ 18,373 $ 26,847 Diluted EPS $ 0.56 $ 0.82
What were Amedisys, Inc.'s adjusted net income and net service revenue for the three-month period?
For the three-month period, Amedisys, Inc.'s adjusted net income was $44.9 million, and net service revenue was $553.0 million.
How did the net service revenue change for Amedisys, Inc. in the six-month period?
The net service revenue increased to $1,109.4 million in the six-month period.
Why did Amedisys, Inc. suspend guidance on 2023 financial performance?
Amedisys decided to suspend guidance due to the pending merger with UnitedHealth Group Incorporated.
