Exhibit 99.1
AmedisysTM Home Health Care
Amedisys, Inc.
NASDAQ: AMED
November 2004
Statements contained in this presentation which are not historical facts are forward-looking statements. These forward-looking statements and all other statements that may be contained in this presentation that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially than those forecasted. Such forward-looking statements are estimates reflecting the best judgment of Amedisys, Inc. management based upon currently available information. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by Amedisys, Inc. with the Securities and Exchange Commission, and forward-looking statements contained herein, or other public statements of Amedisys, Inc. or its management should be considered in light of those factors.
Forward Looking Statements
1
Investment Highlights
Large, growing, and fragmented industry
Focus on Medicare home nursing
Strong internal growth
Demonstrated ability to identify and integrate acquisitions
Proven operating model
Experienced management team
2
Management Team
William F. Borne, Chairman and Chief Executive Officer
CEO since founding the Company in 1982
Registered nurse, extensive hospital administrative and clinical experience
Larry R. Graham, President and Chief Operating Officer
Joined Amedisys in 1996; COO since 1999; President in 2004
General Health Systems; Arthur Andersen
Gregory H. Browne, Chief Financial Officer
Joined Amedisys as CFO in 2002
CEO for PeopleWorks, Ramsay Health Care, Ramsay-HMO
3
Corporate Overview
Leading provider of home nursing to Medicare beneficiaries
Medicare accounts for > 90.0% of revenue
106 locations in the southern United States
Services include:
Skilled nursing
Physical, occupational, and speech therapy
Specialized disease management programs
4
Largest home nursing provider in the southern United States
104 home nursing locations
2 hospice locations
Our Locations
6
6
13
17
16
29
5
1
9
1
1
2
As of November 15, 2004
5
Our Strategy
Focus on Medicare-eligible patients
Prioritize internal growth
Develop and deploy specialized nursing programs
Leverage cost-efficient operating structure
Grow through strategic acquisitions
6
Home health care is a $45 billion industry
Home nursing is the largest segment in the home health industry
Medicare spending for home nursing totaled $11.4 billion in 2002
Home Health Care Spending
Home Health Industry Expenditures ($ billions)
Medicare Home Nursing
$11.4
Home Nursing
(Commercial,
Medicaid &
Other)
$17.3
Home Nursing
$33.2
Infusion
Therapy
$4.7
Durable Medical
Equipment
$2.9
Respiratory
Therapy
$4.5
Hospice $4.5
7
Home Nursing Market
Industry is highly fragmented
7,000 Medicare-certified nursing agencies
Most are single site or small regional providers:
Independently-owned agencies
Visiting nurse associations
Facility- and hospital-based agencies
Publicly-owned providers account for less than 5.0% of the home nursing market
8
Industry Growth Drivers
Trend from inpatient to home-based care:
Patient preference
Payor incentives
Technology advancements
Demographics – aging population
Increased prevalence of chronic and co-morbid conditions
9
Medicare Reimbursement Status
Medicare home nursing is an $11.4 billion market
Prospective Payment System (PPS):
Implemented in October 2000
Base payment for 60-day episode of care
Currently $2,213 per episode
Adjusted for patient acuity and market factors
Reviewed and updated annually
Encourages efficient delivery of care
10
Medicare Reimbursement Outlook
Expect 1.95% average price increase in CY2005
5.0% rural add-on expires March 31, 2005
Other considerations:
Annual changes to base episode rate
Case mix weighting
MSA-based wage index
Therapy threshold
11
Internal Growth
Overall industry growth
Expanded and more effective sales force
Comprehensive range of clinical programs
Enhanced referral source education efforts
Increased focus on start-ups
Strong recent internal growth in Medicare admissions
Approximately 28% year-to-date
Internal growth being driven by:
12
Acquisition Strategy
Disciplined approach
Acquisition criteria:
Defined pricing objectives
Targeted geographic profile
Compatible payor mix
Consistent clinical metrics
Expandable referral base
Opportunities for internal growth
Target hospital-based and multi-site agencies
Six acquisitions over the past twelve months
13
Recent Acquisitions
Date
Prior Ownership
Locations
Location
June 2004
River Region (Triad)
1
Mississippi
March/May 2004
Tenet Healthcare
12*
Southern States
April 2004
Hillcrest Medical Center
1
Oklahoma November 2003 St. Lukes Episcopal 1
Texas August 2003 Metro Home Health 6
Louisiana July 2003 Crawford Memorial (HMA) 1
Arkansas October 2002 South Georgia Medical Center 1
Georgia August 2002 Baylor All Saints Home Care 1
Texas April 2002 Christus Spohn Home Health 1
Texas June 2001 Tenet Healthcare 1
South Carolina April 2001 Seton Home Health Services 7
Alabama *Includes two hospice locations September 2004 Freedom Home Health
Winyah Home Health 3
1
Georgia Virginia October 2004
14
Tenet Acquisition
Acquired ten home health agencies and two hospice operations
Paid approximately $19.1 million in cash
$26.7 million in annualized revenue
Operate in Southern states
Alabama
Florida
Expect agencies to be accretive to EPS
CY2004 — $0.05 to $0.07 per share
Georgia
Louisiana
Mississippi
Tennessee
Texas
15
Investments in Technology
Realizing strategic advantages from investment in information technology
Standardized processes:
Scanning, uploading, and automated review of assessment forms
Automatic scheduling
Web-based HR and payroll system
Centralized management of clinical oversight and utilization:
Real time episode analysis
Daily / weekly review of quality indicators
Executive information system
16
Recent Financial Results
EBITDA is net income before provision for income taxes, interest expense, and depreciation and amortization. EBITDA 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. Rather, EBITDA is presented because it is a widely accepted supplemental financial measure that we believe provides relevant and useful information. Our calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner.
Six Months
YTD
CY2003
June 30, 2004 Q3 2004 2004 Net revenue
$142.5 $104.2 $58.5 $162.7
Year-over-year growth (1)
9.2% 64.6% 57.9% 64.6%
Gross margin
83.9 61.1 32.8 94.0
Percentage of revenue
58.9% 58.6% 56.1% 57.8%
Operating income 14.3 15.0 8.4 23.4
Percentage of revenue
10.1% 14.4% 14.4% 14.4%
EBITDA
17.5 16.9 9.6 26.5
Percentage of revenue
12.3% 16.2% 16.3% 16.3%
Fully-diluted EPS
$0.83 $0.72 $0.39 $1.12
Year-over-year growth (1)
40.7% 157.1% 77.8% 157.1%
$ millions, except per share data
(1) CY2003 growth based on adjusted CY2002 results that exclude nonrecurring
and one-time charges
17
Net Revenue
Revenue of $162.7 million for the nine months ended September 30, 2004
62% year-over-year increase vs. first nine months of CY2003
Internal and external volume growth
Expanded sales force and market share gains
Deployment of specialty programs
Favorable pricing trends
Year-Over-Year Revenue
($ millions)
$0.0
$50.0
$100.0
$150.0
$200.0
2001
2002
2003
Nine Months
Quarterly Revenue ($ millions) $0.0 $15.0 $30.0 $45.0 $60.0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004
18
EBITDA
EBITDA of $26.5 million for the nine months ended September 30, 2004
143% year-over-year increase vs. first nine months of CY2003
Increased operating leverage
Economies of scale
*Results exclude nonrecurring and one-time charges
EBITDA is net income before provision for income taxes, interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. Rather, EBITDA is presented because it is a widely accepted supplemental financial measure that we believe provides relevant and useful information. Our calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner.
Year-Over-Year EBITDA
($ millions)
$0.0
$10.0
$20.0
$30.0
2001*
2002*
2003
Nine Months
Quarterly EBITDA ($ millions) $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004
19
Earnings Per Share
Fully-diluted EPS of $1.12 for the nine months ended September 30, 2004
117% year-over-year increase vs. first nine months of CY2003
Significantly improved capital structure
Improving cash from operations
Reduction of long-term debt
*Results exclude nonrecurring and one-time charges
Year-Over-Year EPS
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
2001*
2002*
2003
Nine Months
Quarterly EPS $0.00 $0.10 $0.20 $0.30 $0.40 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004
20
Balance Sheet
September 30 2004
Actual
Cash and cash equivalents
$93,181
Debt and capital lease obligations:
Long-term debt, including current portion
$5,528
Capital lease obligations, including current portion
836
Total debt and capital lease obligations
6.364
Stockholders’ equity:
Common stock
15
Additional paid-in capital
130,685
Treasury stock
(25)
Retained earnings
10,315
Total stockholders’ equity
140,990
Total capitalization
$146,728
$ millions
21
Investment Highlights
Large, growing, and fragmented industry
Focus on Medicare home nursing
Strong internal growth
Demonstrated ability to identify and integrate acquisitions
Proven operating model
Experienced management team
22
AmedisysTM Home Health Care
