Amedisys (AMED) 8-K Amedisys Reports Third Quarter Financial Results

Exhibit 99.1

Contacts:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Kevin LeBlanc	Jacqueline Chen Valencia
	Director of Investor Relations	Senior Vice President – Marketing & Communications
	(225) 292-2031	(225) 299-3688
	kevin.leblanc@amedisys.com	jacqueline.chen@amedisys.com

AMEDISYS REPORTS THIRD QUARTER FINANCIAL RESULTS

AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (November 6, 2012)—Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the third quarter ended September 30, 2012.

Three-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.10 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $375.6 million compared to $370.3 million in 2011, an increase of $5.3 million or 1.4%.

• Net income from continuing operations attributable to Amedisys, Inc., of $10.0 million compared to $12.3 million in 2011, a decrease of 19.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.33 compared to $0.42 per diluted share in 2011, a decrease of 21.4%.

• Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $24.9 million compared to $29.0 million in 2011, a decrease of 14.0%.

Nine-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.18 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $1,124.9 million compared to $1,098.0 million in 2011, an increase of $26.9 million or 2.5%.

• Net income from continuing operations attributable to Amedisys, Inc., of $24.4 million compared to $52.2 million in 2011, a decrease of 53.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.81 compared to $1.80 per diluted share in 2011, a decrease of 55.0%.

• EBITDA of $73.8 million compared to $118.0 million in 2011, a decrease of 37.5%.

William F. Borne, Chief Executive Officer stated, “Overall, we were pleased with bottom line results for the quarter and remain on pace to meet our earnings plans for the year. Job and investment tax credits benefitted quarterly results. Operationally, we displayed our second consecutive quarter of positive year-over-year episodic admissions growth, continued to grow our managed care business and our hospice average census was up considerably. Our focus remains on providing excellent care to our patients, growing our business and achieving greater efficiencies as we navigate reimbursement pressures.”

2012 Guidance

• Net service revenue is anticipated to be in the range of $1.485 billion to $1.505 billion.

• Diluted earnings per share is expected to be in the range of $1.00 to $1.06 based on an estimated 30.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made, any costs associated with the closing of our new credit agreement or any severance related charges.

We urge caution in considering the current trends and 2012 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website,http://www.sec.gov, and our internet website,http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please dial (877) 490-9717 (Toll free) or (704) 385-4855 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, November 6, 2012. A replay of the conference call will be available through November 13, 2012. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll). The replay pin number is 43473527.

The call will also be available through our website and for seven days thereafter at the following web address:http://www.amedisys.com/investors.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address iswww.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst 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. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. 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,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “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: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, 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, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, changes in or developments with respect to any litigation or investigations relating to the Company, including the SEC investigation and the U.S. Department of Justice Civil Investigative Demand and 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.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus the goodwill and other intangibles impairment charge, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus the goodwill and other intangibles impairment charge and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of the goodwill and other intangibles impairment charge. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

2

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except share, per share data and statistical information)

(Unaudited)

Balance Sheet Information

	September 30, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	39,106		$	48,004
Patient accounts receivable, net of allowance for doubtful accounts of $20,447 and $17,438		163,461			148,061
Prepaid expenses		10,646			11,321
Other current assets		20,635			24,630
Total current assets		233,848			232,016
Property and equipment, net of accumulated depreciation of $105,157, and $94,266		150,947			148,536
Goodwill		367,495			334,695
Intangible assets, net of accumulated amortization of $22,745 and $20,611		51,959			50,067
Deferred tax asset		54,512			68,649
Other assets, net		16,963			24,322
Total assets	$	875,724		$	858,285
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	21,690		$	25,475
Payroll and employee benefits		81,751			82,130
Accrued expenses		64,460			68,493
Current portion of long-term obligations		54,307			33,888
Current portion of deferred income taxes		9,249			11,748
Total current liabilities		231,457			221,734
Long-term obligations, less current portion		67,856			111,551
Other long-term obligations		4,431			4,852
Total liabilities		303,744			338,137
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 shares authorized; 32,423,585 and 31,017,363 share issued; and 31,640,832 and 30,328,549 share outstanding		32			30
Additional paid-in capital		446,233			432,390
Treasury stock at cost, 782,753 and 688,814 shares of common stock		(17,034	)		(15,770	)
Accumulated other comprehensive income		15			13
Retained earnings		125,429			102,205
Total Amedisys, Inc. stockholders’ equity		554,675			518,868
Noncontrolling interests		17,305			1,280
Total equity		571,980			520,148
Total liabilities and equity	$	875,724		$	858,285

3

Statement of Operations Information

	For the Three-Month Periods Ended September 30,						For the Nine-Month Periods Ended September 30,
	2012			2011			2012			2011
Net service revenue	$	375,625		$	370,288		$	1,124,956		$	1,098,026
Cost of service, excluding depreciation and amortization		214,131			202,093			634,903			578,823
General and administrative expenses:
Salaries and benefits		81,627			85,092			255,203			247,175
Non-cash compensation		1,285			3,150			6,065			8,265
Other		48,261			46,711			139,941			136,228
Provision for doubtful accounts		5,677			4,354			16,235			9,734
Depreciation and amortization		9,963			9,659			29,922			28,389
Goodwill and other intangibles impairment charge		—			574,114			—			574,114
Operating expenses		360,944			925,173			1,082,269			1,582,728
Operating income (loss)		14,681			(554,885	)		42,687			(484,702	)
Other (expense) income:
Interest income		10			18			52			225
Interest expense		(1,982	)		(2,187	)		(6,058	)		(6,693	)
Equity in earnings from equity investments		390			325			1,091			1,114
Miscellaneous, net		(14	)		(172	)		281			(843	)
Total other expense, net		(1,596	)		(2,016	)		(4,634	)		(6,197	)
Income (loss) before income taxes		13,085			(556,901	)		38,053			(490,899	)
Income tax (expense) benefit		(3,049	)		134,686			(13,411	)		108,631
Income (loss) from continuing operations		10,036			(422,215	)		24,642			(382,268	)
Discontinued operations, net of tax		(41	)		(1,482	)		(1,218	)		(4,394	)
Net income (loss)		9,995			(423,697	)		23,424			(386,662	)
Net income attributable to noncontrolling interests		(73	)		(25	)		(200	)		(116	)
Net income (loss) attributable to Amedisys, Inc.	$	9,922		$	(423,722	)$		23,224		$	(386,778	)
Basic earnings per common share:
Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.33		$	(14.68	)	$	0.82		$	(13.38	)
Discontinued operations, net of tax		—			(0.05	)		(0.04	)		(0.15	)
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.33		$	(14.73	)	$	0.78		$	(13.53	)
Weighted average shares outstanding		30,055			28,770			29,741			28,587
Diluted earnings per common share:
Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.33		$	(14.68	)	$	0.81		$	(13.38	)
Discontinued operations, net of tax		—			(0.05	)		(0.04	)		(0.15	)
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.33		$	(14.73	)	$	0.77		$	(13.53	)
Weighted average shares outstanding		30,423			28,770			30,068			28,587
Amounts attributable to Amedisys, Inc. common stockholders:
Income (loss) from continuing operations	$	9,963		$	(422,240	)	$	24,442		$	(382,384	)
Discontinued operations, net of tax		(41	)		(1,482	)		(1,218	)		(4,394	)
Net income (loss)	$	9,922		$	(423,722	)	$	23,224		$	(386,778	)

4

Cash Flow Information

	For the Three-Month Periods ended September 30,						For the Nine-Month Periods ended September 30,
	2012			2011			2012			2011
Net cash provided by operating activities	$	21,882		$	27,780		$	56,904		$	104,293
Net cash used in investing activities		(12,318	)		(17,128	)		(40,249	)		(168,663	)
Net cash used in financing activities		(7,616	)		(9,322	)		(25,553	)		(26,463	)
Net increase (decrease) in cash and cash equivalents		1,948			1,330			(8,898	)		(90,833	)
Cash and cash equivalents at beginning of period		37,158			28,132			48,004			120,295
Cash and cash equivalents at end of period	$	39,106		$	29,462		$	39,106		$	29,462

Supplemental Information—Home Health

	For the Three-Month Periods Ended September 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
Financial Information (in millions):
Episodic-based revenue	$	270.0		$	1.3		$	271.3		$	282.7	$	4.4		$	287.1
Non-episodic revenue		29.3			0.5			29.8			18.8		0.1			18.9
Net service revenue		299.3			1.8			301.1			301.5		4.5			306.0
Episodic-based revenue growth (2)		(4	%)					(6	%)
Cost of service		174.8			1.1			175.9			164.1		3.1			167.2
Gross margin		124.5			0.7			125.2			137.4		1.4			138.8
Other operating expenses		77.3			0.8			78.1			76.1		2.9			79.0
Operating income before impairment (5)	$	47.2		$	(0.1	)	$	47.1		$	61.3	$	(1.5	)	$	59.8
Key Statistical Data:
Admissions:
Episodic-based		57,660			327			57,987			56,309		903			57,212
Non-episodic		15,539			31			15,570			10,802		128			10,930
Total admissions		73,199			358			73,557			67,111		1,031			68,142
Episodic-based admission growth (2)		2	%					1	%
Recertifications:
Episodic-based		40,385			149			40,534			42,757		570			43,327
Non-episodic		6,233			5			6,238			4,239		38			4,277
Total recertifications		46,618			154			46,772			46,996		608			47,604
Episodic-based recertification growth (2)		(6	%)					(6	%)
Completed Episodes:
Episodic-based		94,284			433			94,717			95,075		1,600			96,675
Visits:
Episodic-based		1,814,367			8,373			1,822,740			1,852,942		28,094			1,881,036
Non-episodic		297,766			758			298,524			201,889		1,778			203,667
Total visits		2,112,133			9,131			2,121,264			2,054,831		29,872			2,084,703
Cost per Visit	$	82.72		$	123.89		$	82.90		$	79.95	$	100.30		$	80.24
Average episodic-based revenue per completed episode (3)	$	2,834		$	3,002		$	2,835		$	2,972	$	3,083		$	2,974
Episodic-based visits per completed episode (4)		18.8			18.3			18.8			18.7		18.7			18.7

5

	For the Nine-Month Periods Ended September 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
Financial Information (in millions):
Episodic-based revenue	$	820.4		$	4.2		$	824.6		$	876.3	$	16.6		$	892.9
Non-episodic revenue		82.0			0.7			82.7			55.1		0.4			55.5
Net service revenue		902.4			4.9			907.3			931.4		17.0			948.4
Episodic-based revenue growth (2)		(6	%)					(8	%)
Cost of service		519.0			3.2			522.2			488.0		10.5			498.5
Gross margin		383.4			1.7			385.1			443.4		6.5			449.9
Other operating expenses		230.2			2.4			232.6			224.2		10.8			235.0
Operating income before impairment (5)	$	153.2		$	(0.7	)	$	152.5		$	219.2	$	(4.3	)	$	214.9
Key Statistical Data:
Admissions:
Episodic-based		175,843			1,086			176,929			172,880		3,634			176,514
Non-episodic		45,136			153			45,289			31,528		404			31,932
Total admissions		220,979			1,239			222,218			204,408		4,038			208,446
Episodic-based admission growth (2)		2	%					0	%
Recertifications:
Episodic-based		121,411			432			121,843			128,464		1,916			130,380
Non-episodic		16,489			35			16,524			12,782		116			12,898
Total recertifications		137,900			467			138,367			141,246		2,032			143,278
Episodic-based recertification growth (2)		(5	%)					(7	%)
Completed Episodes:
Episodic-based		284,497			1,239			285,736			288,432		5,860			294,292
Visits:
Episodic-based		5,549,303			27,158			5,576,461			5,589,759		104,520			5,694,279
Non-episodic		834,128			2,778			836,906			596,961		5,596			602,557
Total visits		6,383,431			29,936			6,413,367			6,186,720		110,116			6,296,836
Cost per Visit	$	81.29		$	108.19		$	81.42		$	78.89	$	95.08		$	79.17
Average episodic-based revenue per completed episode (3)	$	2,849		$	3,040		$	2,849		$	3,009	$	3,121		$	3,012
Episodic-based visits per completed episode (4)		18.9			18.0			18.9			18.7		18.8			18.7

(1) Care centers for the prior period which are not considered same store care centers (i.e., care centers consolidated in prior period or unopened startups).

(2) Episodic-based revenue, admissions or recertifications growth is the percent increase in our episodic-based revenue, admissions or recertifications for the period as a percent of the episodic-based revenue, admissions or recertifications of the prior period.

(3) Average episodic-based revenue per completed episode is the average episodic-based revenue earned for each episodic-based completed episode of care.

(4) Episodic-based visits per completed episode are the home health episodic-based visits on completed episodes divided by the home health episodic-based episodes completed during the period.

(5) Operating loss of $514.3 million and $359.2 million on a GAAP basis for the three and nine-month periods ended September 30, 2011, respectively.

6

Supplemental Information—Hospice

	For the Three-Month Periods Ended September 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
Financial Information (in millions):
Medicare revenue	$	67.6		$	3.0		$	70.6		$	59.7	$	0.7		$	60.4
Non-Medicare revenue		3.8			0.1			3.9			3.9		—			3.9
Net service revenue		71.4			3.1			74.5			63.6		0.7			64.3
Medicare revenue growth (2)		13	%					17	%
Cost of service		36.1			2.1			38.2			34.3		0.6			34.9
Gross margin		35.3			1.0			36.3			29.3		0.1			29.4
Other operating expenses		14.5			1.2			15.7			12.6		0.7			13.3
Operating income	$	20.8		$	(0.2	)	$	20.6		$	16.7	$	(0.6	)	$	16.1
Key Statistical Data:
Hospice admits		4,479			227			4,706			4,537		52			4,589
Hospice days		494,570			21,983			516,553			444,126		4,785			448,911
Average daily census		5,376			239			5,615			4,827		52			4,879
Revenue per day	$	144.27		$	141.77		$	144.17		$	143.10	$	149.13		$	143.17
Cost of service per day	$	72.96		$	98.26		$	74.03		$	76.78	$	127.13		$	77.32
Average length of stay		88			57			87			86		98			86
	For the Nine-Month Periods Ended September 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
Financial Information (in millions):
Medicare revenue	$	162.4		$	43.3		$	205.7		$	138.6	$	1.6		$	140.2
Non-Medicare revenue		9.6			2.3			11.9			9.3		0.1			9.4
Net service revenue		172.0			45.6			217.6			147.9		1.7			149.6
Medicare revenue growth (2)		17	%					47	%
Cost of service		86.8			25.9			112.7			78.7		1.6			80.3
Gross margin		85.2			19.7			104.9			69.2		0.1			69.3
Other operating expenses		33.6			10.3			43.9			28.7		2.1			30.8
Operating income	$	51.6		$	9.4		$	61.0		$	40.5	$	(2.0	)	$	38.5
Key Statistical Data:
Hospice admits		11,623			2,876			14,499			11,305		149			11,454
Hospice days		1,216,117			272,911			1,489,028			1,058,966		12,109			1,071,075
Average daily census		4,438			996			5,434			3,879		44			3,923
Revenue per day	$	141.42		$	167.26		$	146.16		$	139.64	$	141.51		$	139.66
Cost of service per day	$	71.24		$	95.03		$	75.59		$	74.16	$	133.97		$	74.83
Average length of stay		92			88			91			86		77			86

(1) Care centers for the prior period which are not considered same store care centers (i.e. care centers consolidated in prior period or unopened startups).

(2) Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the prior period.

7

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL DATA AND

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except key statistical data)

(Unaudited)

	For the Three-Month Periods Ended September 30,					For the Nine-Month Periods Ended September 30,
	2012			2011		2012		2011
Key Statistical Data:
General
Number of home health care centers		436	��		482		436		482
Number of hospice care centers		97			90		97		90
Number of care centers acquired (1)		5			—		11		22
Number of care centers opened as start-up locations (1)		1			2		3		10
Days revenue outstanding, net (2)		38.7			35.9		38.7		35.9

(1) Includes both home health and hospice care centers.

(2) Our calculation of days revenue outstanding, net at September 30, 2012 and 2011 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three month-period ended September 30, 2012 and 2011, respectively.

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA

	For the Three-Month Periods Ended September 30,					For the Nine-Month Periods Ended September 30,
	2012		2011			2012		2011
Net income (loss) from continuing operations attributable to Amedisys, Inc.	$	9,963	$	(422,240	)	$	24,442	$	(382,384	)
Add:
Provision for income taxes		3,049		(134,686	)		13,411		(108,631	)
Interest expense, net		1,972		2,169			6,006		6,468
Depreciation and amortization		9,963		9,659			29,922		28,389
EBITDA (1)	$	24,947	$	(545,098	)	$	73,781	$	(456,158	)
Add:
Goodwill and other intangibles impairment charge (2)		—		574,114			—		574,114
Adjusted EBITDA (3)	$	24,947	$	29,016		$	73,781	$	117,956

Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:

	For the Three-Month Periods Ended September 30,					For the Nine-Month Periods Ended September 30,
	2012		2011			2012		2011
Net income (loss) from continuing operations attributable to Amedisys, Inc.	$	9,963	$	(422,240	)	$	24,442	$	(382,384	)
Add:
Goodwill and other intangibles impairment charge (2)		—		434,566			—		434,566
Adjusted net income from continuing operations attributable to Amedisys, Inc. (4)	$	9,963	$	12,326		$	24,442	$	52,182

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Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:

	For the Three-Month Periods Ended September 30,					For the Nine-Month Periods Ended September 30,
	2012		2011			2012		2011
Net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share	$	0.33	$	(14.68	)	$	0.81	$	(13.38	)
Add:
Goodwill and other intangibles impairment charge (2)		—		15.10			—		15.18
Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (5)	$	0.33	$	0.42		$	0.81	$	1.80

(1) EBITDA is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. 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 financial measure in the same manner.

(2) During the three and nine-month periods ended September 30, 2011, we recorded a $574.1 million charge for the impairment of goodwill and other intangibles.

(3) Adjusted EBITDA is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization plus the goodwill and other intangibles impairment charge described in footnote 2. Adjusted 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 adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(4) Adjusted net income from continuing operations attributable to Amedisys, Inc. is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus the goodwill and other intangibles impairment charge described in footnote 2. Adjusted net income from continuing operations attributable to Amedisys, Inc. 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 adjusted net income from continuing operations attributable to Amedisys, Inc. 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.

(5) Adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share is defined as diluted earnings (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of the goodwill and other intangibles impairment charge described in footnote 2. Adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share 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 or operating performance. This calculation of adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

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