Amedisys (AMED) 8-K Amedisys Reports Record Second Quarter Revenue and Earnings

Exhibit 99.1

Contacts:	Amedisys, Inc.
	Thomas J. Dolan	Dale E. Redman
	Senior Vice President – Finance	Chief Financial Officer
	(225) 292-2031	(225) 292-2031
	tdolan@amedisys.com	dredman@amedisys.com

AMEDISYS REPORTS RECORD SECOND QUARTER REVENUE AND EARNINGS

COMPANY RAISES 2007 REVENUE AND EPS GUIDANCE

AMEDISYS TO HOST CONFERENCE CALL

TODAY AT 10:00 AM ET

BATON ROUGE, Louisiana (July 31, 2007) – Amedisys, Inc. (NASDAQ: “AMED”, “Amedisys” or “the Company”), one of America’s leading home health nursing companies, today reported its financial results for the second quarter ended June 30, 2007:

Three-Month Periods Ended June 30, 2007 and 2006

• Net service revenue was $169.5 million, up 27.5% compared to $132.9 million reported for the second quarter of 2006.

• Net income was $14.9 million, up 64.8% compared to $9.1 million for the second quarter of 2006, with diluted earnings per share of $0.57 for the second quarter of 2007, up 35.7% from $0.42 per diluted share for the second quarter of 2006.

• Diluted weighted average number of shares outstanding approximated 26.2 million compared to 21.8 million in the second quarter of 2006.

• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $26.3 million, up 44.6% compared to $18.2 million during the second quarter of 2006.

Six-Month Periods Ended June 30, 2007 and 2006

• Net service revenue was $323.0 million, up 24.2% compared to $260.1 million reported for 2006.

• Net income was $28.2 million, up 72.5% compared to $16.3 million for 2006, with diluted earnings per share of $1.08 for the six-month period ended June 30, 2007, up 44.0% from $0.75 per diluted share for 2006.

• Diluted weighted average number of shares outstanding approximated 26.1 million compared to 21.7 million in 2006.

• EBITDA was $49.9 million, up 49.4% compared to $33.4 million during 2006.

Updated 2007 Guidance

• Net service revenue is anticipated to be in the range of $650 million to $675 million, excluding any potential future acquisitions.

• Diluted earnings per share is expected to be in the range of $2.10 to $2.20 based on an estimated 26.4 million shares outstanding.

“Clearly, the second quarter was another exceptional quarter for us, with record revenues and record earnings,” said William F. Borne, Chief Executive Officer of Amedisys. “Our results for the second quarter continue to support our strategic objective of being the leading provider of high-quality, low-cost home health services in the market. With a strong balance sheet and positive results of operations, we are well positioned to continue to take advantage of future growth opportunities through market expansion in both de novo start-ups and acquisitions.”

1

“Finally, I am pleased to announce the appointment of Dale E. Redman as our Chief Financial Officer, who has served as our Interim Chief Financial Officer since February of 2007.” (Mr. Redman was appointed the Company’s principal financial and accounting officer on February 21, 2007, and will continue to serve the Company in this capacity).

The following table provides some key statistical information related to the second quarter ended June 30, 2007 as compared to the second quarter ended June 30, 2006:

	Three-month periods ended June 30,						Six-month periods ended June 30,
	2007			2006			2007			2006
General
Number of home health agencies		296			235			296			235
Number of hospice agencies		17			12			17			12
Number of agencies acquired through acquisition (1)		15			5			18			13
Number of agencies opened as start-up locations (1)		10			6			23			13
Days revenue outstanding (2)		46.8			48.9			46.8			48.9
Internal growth rate (3)		13	%		15	%		14	%		17	%
Total visits (4)		1,049,008			842,368			2,021,183			1,654,912
Home Health
Admissions (5)		31,376			26,364			62,975			52,860
Completed episodes (6)		51,219			42,621			99,161			82,033
Revenue per episode (7)	$	2,671		$	2,652		$	2,658		$	2,634
Medicare visits per episode (8)		16.8			17.1			16.6			17.0

(1) Inclusive of both home health and hospice agencies.

(2) Due to the Company’s significant acquisitions and its internal growth, the calculation for days revenue outstanding is derived by dividing the ending gross accounts receivable, net of contractual allowances, at June 30, 2007 and June 30, 2006 by the average daily net patient revenue for the three-month periods ended June 30, 2007 and June 30, 2006, respectively.

(3) Internal growth rate is calculated as the percentage increase in total episodic-based admissions of base and start-up agencies in the current period, as compared to admissions of total episodic-based admissions from the prior period.

(4) Total visits are the number of times during the period that our registered nurses, licensed practical nurses, physical therapists, speech therapists, occupational therapists, medical social workers and home health aides visit all eligible patients in their residence.

(5) Admissions are defined as the number of patients admitted to our agencies during the period for the first 60-day episode of care where payors reimburse the Company for services provided on an episodic-basis, which include Medicare and other insurance carriers, including HMO Advantage programs.

(6) Completed episodes are the number of Medicare patients that have either reached the end of their 60-day eligibility period or terminated their service before the 60-day eligibility period has lapsed.

(7) Revenue per episode is the average revenue earned for each completed episode of care.

(8) Medicare visits per episode is calculated by dividing the total number of Medicare visits on completed episodes in the period by the total number of Medicare episodes completed in the period.

2

Earnings Call and Webcast Information

To participate in the conference call, please dial 800-683-1525 (Domestic) or 973-872-3197 (International) a few minutes before 10:00 a.m. ET on Tuesday, July 31, 2007. A replay of the conference call will be available from 12:00 p.m. ET on July 31, 2007 until 12:00 p.m. ET on August 7, 2007. The replay dial in number is 877-519-4471 (Domestic) or 973-341-3080 (International). The replay pin number is 9041832.

The call will also be available on the Internet live and for seven days thereafter at the following web address:

http://www.videonewswire.com/event.asp?id=41249

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

Additional information on the Company can be found at:

www.amedisys.com

Non-GAAP Financial Measure

This press release includes the following non-GAAP financial measure as defined under Securities and Exchange Commission (“SEC”) rules: EBITDA, defined as net income before provision for income taxes, net interest expense and depreciation and amortization. In accordance with SEC rules, the Company has provided herein a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure. Management believes that EBITDA is a useful gauge of the Company’s performance and because EBITDA is a common measure used by other companies in our industry EBITDA can be utilized to assess the performance of the Company in comparison to such other companies.

Forward-Looking Statements

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.

3

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

	June 30, 2007			December 31, 2006
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	91,341		$	84,221
Restricted cash		5,913			4,797
Patient accounts receivable, net		75,034			74,929
Prepaid expenses		4,786			4,133
Other current assets		4,683			11,125
Total current assets		181,757			179,205
Property and equipment, net		66,896			52,960
Goodwill		249,632			213,032
Intangible assets, net		13,661			12,733
Other assets, net		6,725			5,826
Total assets	$	518,671		$	463,756
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,533		$	14,339
Accrued expenses		58,549			46,587
Obligations due Medicare		5,927			6,139
Current portion of long-term obligations		7,237			3,223
Current portion of deferred income taxes		9,238			11,630
Total current liabilities		91,484			81,918
Long-term obligations, less current portion		8,064			2,114
Deferred income taxes		12,839			10,781
Other long-term obligations		6,841			4,936
Total liabilities		119,228			99,749
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 60,000,000 and 30,000,000 shares authorized at June 30, 2007 and December 31, 2006, respectively; 26,061,020 and 25,902,210 shares issued at June 30, 2007 and December 31, 2006, respectively, and 25,955,902 and 25,798,723 shares outstanding at June 30, 2007 and December 31, 2006, respectively		26			26
Additional paid-in capital		287,199			279,553
Treasury stock at cost, 105,118 and 103,487 shares of common stock held at June 30, 2007 and December 31, 2006, respectively		(437	)		(379	)
Accumulated other comprehensive income		16			—
Retained earnings		112,639			84,807
Total stockholders’ equity		399,443			364,007
Total liabilities and stockholders’ equity	$	518,671		$	463,756

4

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)

	For the three-month periods ended June 30,						For the six-month periods ended June 30,
	2007			2006			2007			2006
Net service revenue	$	169,457		$	132,910		$	323,038		$	260,097
Cost of service, excluding depreciation and amortization		74,657			56,664			141,691			112,434
General and administrative expenses:
Salaries and benefits		43,194			34,025			80,471			66,170
Non-cash compensation		800			597			1,531			1,193
Other		23,735			23,458			48,841			47,041
Depreciation and amortization		3,030			2,477			5,771			4,850
Operating expense		145,416			117,221			278,305			231,688
Operating income		24,041			15,689			44,733			28,409
Other income (expense):
Interest income		1,199			220			2,155			426
Interest expense		(174	)		(1,122	)		(267	)		(2,246	)
Miscellaneous, net		(802	)		5			(647	)		105
Total other income (expense)		223			(897	)		1,241			(1,715	)
Income before income taxes		24,264			14,792			45,974			26,694
Income tax expense		9,347			5,739			17,792			10,357
Net income	$	14,917		$	9,053		$	28,182		$	16,337
Net income per common share:
Basic	$	0.58		$	0.43		$	1.10		$	0.77
Diluted	$	0.57		$	0.42		$	1.08		$	0.75
Weighted average shares outstanding:
Basic		25,774			21,301			25,703			21,235
Diluted		26,196			21,768			26,119			21,721

5

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

	For the six-month periods ended June 30,
	2007			2006
Cash Flows from Operating Activities:
Net income	$	28,182		$	16,337
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,771			4,850
Provision for bad debts		5,376			4,004
Non-cash compensation expense		1,531			1,193
401(k) employer match expense		2,361			3,199
Loss on disposal of property and equipment		397			179
Deferred income taxes		(1,212	)		(253	)
Amortization of deferred debt issuance costs		—			242
Changes in assets and liabilities, net of impact of acquisitions:
(Increase) in patient accounts receivable		(5,329	)		(63	)
Decrease (increase) in other current assets		5,790			(3,226	)
Decrease in other assets		1,124			962
(Decrease) in accounts payable		(4,126	)		(17,055	)
Increase in accrued expenses		15,363			5,590
Increase in other long-term obligations		238			358
(Decrease) in obligations due Medicare		(211	)		(1,509	)
Net cash provided by operating activities		55,255			14,808
Cash Flows from Investing Activities:
Proceeds from sales and maturities of short-term investments		53,000			—
Sale of deferred compensation plan assets		697			—
Proceeds from the sale of property and equipment		16			50
Deposits into restricted cash		(1,116	)		—
Purchase of deferred compensation plan assets		(1,873	)		—
Purchases of property and equipment		(16,447	)		(12,608	)
Acquisitions of businesses, net of cash acquired		(31,616	)		(8,767	)
Purchases of short-term investments		(53,000	)		—
Net cash (used in) investing activities		(50,339	)		(21,325	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		1,734			1,071
Proceeds from issuance of stock to employee stock purchase plan		1,254			834
Tax benefit from stock option exercises		764			653
Proceeds from short-term revolving line of credit		—			10,000
Principal payments of short-term revolving line of credit		—			(10,000	)
Principal payments of long-term obligations		(1,548	)		(5,315	)
Net cash provided by (used in) financing activities		2,204			(2,757	)
Net increase (decrease) in cash and cash equivalents		7,120			(9,274	)
Cash and cash equivalents at beginning of period		84,221			17,231
Cash and cash equivalents at end of period	$	91,341		$	7,957
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	194		$	2,073
Cash paid for 2005 payroll taxes under Hurricane Relief Act extended deadlines	$	—		$	18,773
Cash paid for income taxes, net of refunds received	$	6,724		$	1,933
Supplemental Disclosures of Non-Cash Financing and Investing Activities:
Notes payable issued for acquisitions	$	6,010		$	2,520
Notes payable issued for software licenses	$	5,501		$	—

6

AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands)

(Unaudited)

	Three-month periods ended June 30,					Six-month periods ended June 30,
	2007			2006		2007			2006
Net income	$	14,917		$	9,053	$	28,182		$	16,337
Add:
Provision for income taxes		9,347			5,739		17,792			10,357
Interest (income) expense, net		(1,025	)		902		(1,888	)		1,820
Depreciation and amortization		3,030			2,477		5,771			4,850
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)1	$	26,269		$	18,171	$	49,857		$	33,364

¹ EBITDA is defined as net income before provision for income taxes, net 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. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

7