Exhibit 99.1
| Contact: | Amedisys, Inc. Donald Loverich, Jr. Principal Financial Officer (225) 292-2031 dloverich@amedisys.com
Noonan Russo Investor Relations Brian Ritchie (212) 845-4269 brian.ritchie@eurorscg.com |
AMEDISYS REPORTS RECORD THIRD QUARTER 2006
REVENUES AND EARNINGS
COMPANY TO HOST CONFERENCE CALL
TODAY AT 10:00 AM ET
BATON ROUGE, Louisiana (October 25, 2006) – Amedisys, Inc. (Nasdaq: “AMED”, “Amedisys” or “the Company”), America’s leading home health nursing company, today reported its financial results for the third quarter ended September 30, 2006.
For the quarter ended September 30, 2006, the Company reported record quarterly net income of $10.6 million, or $0.64 per diluted share, a 33 percent increase in earnings per share over the same quarter last year. These earnings were achieved on record quarterly net service revenue of $137.0 million. Net service revenue increased by 22 percent when compared with the $112.2 million reported for the comparable period in the prior year. Amedisys reported net income of $7.8 million, or $0.48 per diluted share, for the quarter ended September 30, 2005. The diluted weighted average number of shares outstanding approximated 16.4 million for the quarter ended September 30, 2006 and 16.1 million for the comparable period of 2005.
For the nine-month period ended September 30, 2006, the Company reported year-to-date net income of $26.9 million, or $1.65 per diluted share, on year-to-date net service revenue of $397.1 million. Net service revenue increased by 51 percent when compared with the $262.7 million reported for the comparable period in the prior year. Amedisys reported net income of $22.8 million, or $1.44 per diluted share, for the nine-month period ended September 30, 2005.
“We are pleased with our improved operating results for the third quarter of 2006 and the continuing momentum we are experiencing in many key areas of our business,” said William F. Borne, Chief Executive Officer of Amedisys. “We believe that our continuing strong internal growth, start ups and selective acquisitions combined with ongoing efficiencies will drive earnings and enhance shareholder returns.”
“We are increasing our EPS guidance to $2.30 to $2.35 cents per diluted share for fiscal 2006,” added Mr. Borne. “This guidance is based upon outstanding shares of approximately 16.5 million. Also, this guidance reflects the Company’s 2006 estimated income tax rate of approximately 38.8 percent. Annual revenue is expected to be in the $530 to $540 million range, exclusive of potential acquisitions.”
The Company’s Board of Directors approved a four-for-three split of Amedisys’ common stock, effective November 27, 2006, in the form of a stock dividend. Each shareholder of record at the close of business on
November 27, 2006, will receive one additional share for every three outstanding shares held. Any fractional shares resulting from the stock split will be rounded up such that one whole share of Common Stock would be delivered to any stockholder of record in lieu of a fractional share. Full year 2006 earnings per share guidance provided above does not take into account the impact of the four-for-three stock split.
To participate in the conference call, please dial 800-632-2975 (Domestic) or 973-935-8755 (International) afew minutes before 10:00 a.m. ET on Wednesday, October 25, 2006. A replay of the conference call will be available from 12:00 p.m. ET on October 25, 2006 until 12:00 p.m. ET on November 1, 2006. The replay dial in number is 877-519-4471 (Domestic) or 973-341-3080 (International). The replay pin number is 7990887.
The call will also be available on the Internet live and for seven days thereafter at the following:
http://www.videonewswire.com/event.asp?id=36129
Amedisys, Inc., America’s leading home health nursing company, is headquartered in Baton Rouge, Louisiana. Its common stock trades on The Nasdaq Global Select Market under the symbol “AMED”.
This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s services in the marketplace, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, and other risks discussed in the Company’s periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Additional information on the Company can be found at
http://www.amedisys.com
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
September 30, 2006 (Unaudited) | December 31, 2005 | |||||||
| ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 9,855 | $ | 17,231 | ||||
Patient accounts receivable, net | 81,109 | 68,139 | ||||||
Prepaid expenses | 3,222 | 2,693 | ||||||
Other current assets | 2,824 | 4,277 | ||||||
Total current assets | 97,010 | 92,340 | ||||||
Property and equipment, net | 42,857 | 27,389 | ||||||
Goodwill | 210,337 | 197,002 | ||||||
Intangible assets, net | 12,837 | 11,447 | ||||||
Other assets, net | 7,147 | 11,819 | ||||||
Total assets | $ | 370,188 | $ | 339,997 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 13,643 | $ | 29,922 | ||||
Accrued expenses | 53,273 | 45,165 | ||||||
Obligations due Medicare | 6,139 | 10,551 | ||||||
Current portion of long-term obligations | 11,416 | 10,144 | ||||||
Current portion of deferred income taxes | 7,653 | 4,173 | ||||||
Total current liabilities | 92,124 | 99,955 | ||||||
Long-term obligations, less current portions | 36,513 | 43,063 | ||||||
Deferred income taxes | 8,499 | 3,556 | ||||||
Other long-term obligations | 1,298 | 824 | ||||||
Total liabilities | 138,434 | 147,398 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.001 par value, 5,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Common stock, $.001 par value, 30,000,000 shares authorized; 16,256,922 and 15,881,691 shares issued at September 30, 2006 and December 31, 2005, respectively, and 16,252,039 and 15,877,524 shares outstanding at September 30, 2006 and December 31, 2005, respectively | 16 | 16 | ||||||
Additional paid-in capital | 158,342 | 146,684 | ||||||
Treasury stock at cost, 4,883 and 4,167 shares held at September 30, 2006 and December 31, 2005, respectively | (52 | ) | (25 | ) | ||||
Unearned compensation | — | (628 | ) | |||||
Retained earnings | 73,448 | 46,552 | ||||||
Total stockholders’ equity | 231,754 | 192,599 | ||||||
Total liabilities and stockholders’ equity | $ | 370,188 | $ | 339,997 | ||||
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands, except per share data)
(Unaudited)
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Net service revenue | $ | 137,041 | $ | 112,166 | $ | 397,138 | $ | 262,665 | ||||||||
Cost of service, excluding depreciation and amortization | 59,877 | 49,011 | 172,311 | 110,517 | ||||||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and benefits | 32,389 | 27,798 | 98,559 | 64,661 | ||||||||||||
Non-cash compensation | 797 | 128 | 1,990 | 241 | ||||||||||||
Other | 23,326 | 19,077 | 70,367 | 44,000 | ||||||||||||
Depreciation and amortization | 2,487 | 2,123 | 7,337 | 4,984 | ||||||||||||
Operating expense | 118,876 | 98,137 | 350,564 | 224,403 | ||||||||||||
Operating income | 18,165 | 14,029 | 46,574 | 38,262 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest income | 209 | 240 | 635 | 1,140 | ||||||||||||
Interest expense | (873 | ) | (1,537 | ) | (3,119 | ) | (1,824 | ) | ||||||||
Miscellaneous, net | (247 | ) | 74 | (142 | ) | 46 | ||||||||||
Total other (expense) income | (911 | ) | (1,223 | ) | (2,626 | ) | (638 | ) | ||||||||
Income before income taxes | 17,254 | 12,806 | 43,948 | 37,624 | ||||||||||||
Income tax expense | 6,695 | 5,046 | 17,052 | 14,824 | ||||||||||||
Net income | $ | 10,559 | $ | 7,760 | $ | 26,896 | $ | 22,800 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.66 | $ | 0.49 | $ | 1.68 | $ | 1.46 | ||||||||
Diluted | $ | 0.64 | $ | 0.48 | $ | 1.65 | $ | 1.44 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 16,101 | 15,692 | 15,981 | 15,531 | ||||||||||||
Diluted | 16,446 | 16,064 | 16,334 | 15,887 | ||||||||||||