Amedisys (AMED) 8-K Amedisys Reports Fourth Quarter and Year End 2018 Financial Results

Exhibit 99.1

AMEDISYS REPORTS FOURTH QUARTER AND YEAR END 2018 FINANCIAL RESULTS

ISSUES 2019 GUIDANCE

BATON ROUGE, Louisiana (February 27, 2019) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period and year ended December 31, 2018.

Three Month Periods Ended December 31, 2018 and 2017

• Net service revenue increased $36.4 million to $434.4 million compared to $398.0 million in 2017⁽¹⁾.

• Net income attributable to Amedisys, Inc. of $27.5 million compared to net loss attributable to Amedisys, Inc. of $3.8 million in 2017.

• Net income attributable to Amedisys, Inc. per diluted share of $0.84 per diluted share compared to net loss attributable to Amedisys, Inc. of $0.11 in 2017.

Adjusted Quarterly Results*

• Adjusted EBITDA of $43.9 million compared to $37.1 million in 2017.

• Adjusted net service revenue of $434.4 million compared to $398.0 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. of $29.8 million compared to $19.4 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.91 compared to $0.56 in 2017.

Years Ended December 31, 2018 and 2017

• Net service revenue increased $151.3 million to $1,662.6 million compared to $1,511.3 million in 2017⁽¹⁾.

• Net income attributable to Amedisys, Inc. of $119.3 million compared to $30.3 million in 2017.

• Net income attributable to Amedisys, Inc. per diluted share of $3.55 per diluted share compared to $0.88 in 2017.

Adjusted Year End Results*

• Adjusted EBITDA of $180.6 million compared to $142.2 million in 2017.

• Adjusted net service revenue of $1,664.3 million compared to $1,517.8 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. of $122.1 million compared to $75.9 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.63 compared to $2.21 in 2017.

* See pages 12 and 13 for the definition and reconciliations ofnon-GAAP financial measures to GAAP measures.

⁽¹⁾  Subsequent to our adoption of Accounting Standards Updates2014-09 and2015-14 on January 1, 2018, using the full retrospective method, amounts previously classified as provision for doubtful accounts are now classified as price concessions in determining the transaction price of our net service revenue.

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Paul B. Kusserow, President and Chief Executive Officer stated, “Our fourth quarter results are a fitting cap to what has been by all accounts an incredible year for Amedisys. In 2018, we treated approximately 400,000 patients making more than 10 million visits across our three lines of business while continuing to execute and make excellent progress on our strategic pillars of clinical distinction, becoming the employer of choice, operational efficiency and growth. Providing our clinically distinct care to as many patients wherever they call home is, and will always be, our first priority and to that point, our home health and hospice quality measures continue to be at or near the top of the industry. After a year of rebuilding, our home health segment returned to growth and exceeded margin expectations. Hospice continued its stellar performance with another strong quarter and year of ADC growth and we continued to grow our personal care platform, completing two acquisitions during the year. Finally, thanks to our team of over 21,000 employees for continuing to do all that you do to drive such impressive results and provide such incredible care.”

2019 Guidance

• Net service revenue is anticipated to be in the range of $1.94 billion to $1.98 billion.

• Adjusted EBITDA is anticipated to be in the range of $205 million to $210 million.

• Adjusted diluted earnings per share is anticipated to be in the range of $3.98 to $4.09 based on an estimated 33.1 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2019 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends 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 Form10-K for the fiscal year ended December 31, 2018, and subsequent Quarterly Reports on Form10-Q, and current reports on Form8-K which can be found on the SEC’s internet website,http://www.sec.gov, and our internet website,http://www.amedisys.com.

Earnings Call and Webcast Information

Amedisys will host a conference call on Thursday, February 28, 2019, at 10:00 a.m. ET to discuss its fourth quarter and year end results. To participate on the conference call, please call before 10:00 a.m. ET to either (877)524-8416 (Toll-Free) or (412)902-1028 (Toll). A replay of the conference call will be available through March 28, 2019 by dialing (877)660-6853 (Toll-Free) or (201)612-7415 (Toll) and entering conference ID #13687280.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address:http://investors.amedisys.com.

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”) tonon-GAAP financial measures. Thenon-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense 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 income (loss) attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that thesenon-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. Thesenon-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 thesenon-GAAP measures consistently.

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Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 3,000 hospitals and 65,000 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 more than 21,000 employees, in 472 care centers within 38 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 376,000 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 automatice-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 healthcare 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 consistently provide high-quality care, our ability to attract and retain qualified personnel, changes in payments and covered services by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, our ability to comply with requirements stipulated in our corporate integrity agreement, our ability to realize the anticipated benefits of the acquisition of Compassionate Care Hospice, and changes in law 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:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Nick Muscato	Kendra Kimmons
	Vice President, Strategic Finance	Vice President, Marketing & Communications
	(855)259-2046	(225)299-3720
	IR@amedisys.com	kendra.kimmons@amedisys.com

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AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

	For the Three-Month Period Ended December 31						For the Year Ended December 31
	2018			2017			2018			2017
	(Unaudited)
Net service revenue	$	434,378		$	397,961		$	1,662,578		$	1,511,272
Cost of service, excluding depreciation and amortization		262,251			239,238			992,863			903,377
General and administrative expenses:
Salaries and benefits		84,309			79,406			316,522			305,938
Non-cash compensation		5,234			4,507			17,887			16,295
Other		42,778			39,757			166,897			159,980
Depreciation and amortization		3,379			3,984			13,261			17,123
Asset impairment charge		—			1,323			—			1,323
Securities Class Action Lawsuit settlement, net		—			—			—			28,712
Operating expenses		397,951			368,215			1,507,430			1,432,748
Operating income		36,427			29,746			155,148			78,524
Other income (expense):
Interest income		15			54			278			158
Interest expense		(1,536	)		(1,431	)		(7,370	)		(5,031	)
Equity in earnings from equity method investments		1,231			232			7,692			3,381
Miscellaneous, net		458			487			3,240			3,769
Total other income (expense), net		168			(658	)		3,840			2,277
Income before income taxes		36,595			29,088			158,988			80,801
Income tax expense		(8,875	)		(32,794	)		(38,859	)		(50,118	)
Net income (loss)		27,720			(3,706	)		120,129			30,683
Net income attributable to noncontrolling interests		(259	)		(142	)		(783	)		(382	)
Net income (loss) attributable to Amedisys, Inc.	$	27,461		$	(3,848	)	$	119,346		$	30,301
Basic earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.86		$	(0.11	)	$	3.64		$	0.90
Weighted average shares outstanding		31,916			33,898			32,791			33,704
Diluted earnings per common share:
Net income (loss) attributable to Amedisys, Inc. common stockholders	$	0.84		$	(0.11	)	$	3.55		$	0.88
Weighted average shares outstanding		32,805			33,898			33,609			34,304

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AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

	As of December 31,
	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	20,229		$	86,363
Patient accounts receivable		188,972			201,196
Prepaid expenses		7,568			7,329
Other current assets		7,349			16,268
Total current assets		224,118			311,156
Property and equipment, net of accumulated depreciation of $95,472 and $146,814		29,449			31,122
Goodwill		329,480			319,949
Intangible assets, net of accumulated amortization of $33,050 and $30,610		44,132			46,061
Deferred income taxes		35,794			56,064
Other assets		54,145			49,130
Total assets	$	717,118		$	813,482
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	28,531		$	25,384
Payroll and employee benefits		92,858			89,936
Accrued expenses		99,475			89,104
Current portion of long-term obligations		1,612			10,638
Total current liabilities		222,476			215,062
Long-term obligations, less current portion		5,775			78,203
Other long-term obligations		6,234			3,791
Total liabilities		234,485			297,056
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; 36,252,280 and 35,747,134 shares issued; and 31,973,505 and 33,964,767 shares outstanding		36			35
Additionalpaid-in capital		603,666			568,780
Treasury stock at cost 4,278,775 and 1,782,367 shares of common stock		(241,685	)		(53,713	)
Accumulated other comprehensive income		15			15
Retained earnings		119,550			204
Total Amedisys, Inc. stockholders’ equity		481,582			515,321
Noncontrolling interests		1,051			1,105
Total equity		482,633			516,426
Total liabilities and equity	$	717,118		$	813,482

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AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING

(Amounts in thousands, except statistical information)

	For the Three-Month Period Ended December 31						For the Year Ended December 31
	2018			2017			2018			2017
	(Unaudited)
Cash Flows from Operating Activities:
Net income (loss)	$	27,720		$	(3,706	)	$	120,129		$	30,683
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		3,379			3,984			13,261			17,123
Non-cash compensation		5,234			4,507			17,887			16,295
401(k) employer match		2,042			2,207			8,976			8,754
(Gain) loss on disposal of property and equipment		(24	)		22			714			—
Deferred income taxes		5,355			34,950			20,271			52,178
Equity in earnings from equity method investments		(1,231	)		(232	)		(7,692	)		(3,381	)
Amortization of deferred debt issuance costs/debt discount		201			180			797			735
Return on equity investment		1,785			665			6,158			5,321
Asset impairment charge		—			1,323			—			1,323
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		6,058			(23,826	)		12,224			(34,672	)
Other current assets		8,711			956			8,679			(4,940	)
Other assets		2,221			(547	)		2,947			(12,749	)
Accounts payable		3,835			2,587			3,165			(2,843	)
Accrued expenses		(1,234	)		9,259			13,524			31,843
Other long-term obligations		(19	)		(140	)		2,443			61
Net cash provided by operating activities		64,033			32,189			223,483			105,731
Cash Flows from Investing Activities:
Proceeds from sale of deferred compensation plan assets		152			—			715			622
Proceeds from the sale of property and equipment		3			131			54			249
Purchases of property and equipment		(874	)		(1,633	)		(6,558	)		(10,707	)
Investments in equity method investees		(3,667	)		(40	)		(7,144	)		(476	)
Acquisitions of businesses, net of cash acquired		(5,186	)		(9,587	)		(9,260	)		(33,715	)
Net cash used in investing activities		(9,572	)		(11,129	)		(22,193	)		(44,027	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		3,204			340			5,953			4,554
Proceeds from issuance of stock to employee stock purchase plan		642			584			2,429			2,382
Shares withheld upon stock vesting		(1,149	)		(485	)		(6,570	)		(6,939	)
Non-controlling interest distribution		(560	)		—			(1,090	)		(216	)
Proceeds from borrowings under revolving line of credit		10,500			—			138,000			—
Repayments of borrowings under revolving line of credit		(60,500	)		—			(130,500	)		—
Principal payments of long-term obligations		(379	)		(1,250	)		(91,450	)		(5,319	)
Debt issuance costs		—			—			(2,433	)		—
Purchase of company stock		—			—			(181,402	)		—
Repurchase of noncontrolling interest		—			—			(361	)		—
Net cash used in financing activities		(48,242	)		(811	)		(267,424	)		(5,538	)
Net increase (decrease) in cash and cash equivalents		6,219			20,249			(66,134	)		56,166
Cash and cash equivalents at beginning of period		14,010			66,114			86,363			30,197
Cash and cash equivalents at end of period	$	20,229		$	86,363		$	20,229		$	86,363
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	533		$	509		$	3,522		$	2,697
Cash paid for income taxes, net of refunds received	$	3,261		$	—		$	14,278		$	315
Supplemental Disclosures ofNon-Cash Financing Activities:
Note payable issued for software licenses	$	—		$	—		$	418		$	—
Capital leases	$	929		$	—		$	2,936		$	—
Days revenue outstanding (1)		38.0			44.0			38.0			44.0

(1) Our calculation of days revenue outstanding at December 31, 2018 and 2017 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended December 31, 2018 and 2017, respectively.

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AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

	For the Three- Month Period Ended December 31,
	2018			2017
Financial Information (in  millions):
Medicare	$	211.5		$	205.0
Non-Medicare		92.5			76.9
Net service revenue		304.0			281.9
Cost of service		189.4			174.9
Gross margin		114.6			107.0
Asset impairment charge		—			1.3
Other operating expenses		72.2			71.3
Operating income	$	42.4		$	34.4
Same Store Growth (1):
Medicare revenue		3	%		2	%
Non-Medicare revenue		20	%		24	%
Total admissions		6	%		3	%
Total volume (2)		6	%		7	%
Total Episodic admissions (3)		5	%		2	%
Total Episodic volume (4)		5	%		5	%
Key Statistical Data - Total (5):
Medicare:
Admissions		47,864			46,421
Recertifications		28,555			27,896
Total volume		76,419			74,317
Completed episodes		75,497			73,037
Visits		1,328,025			1,273,435
Average revenue per completed episode (6)	$	2,891		$	2,858
Visits per completed episode (7)		17.7			17.6
Non-Medicare:
Admissions		30,092			27,421
Recertifications		14,874			12,415
Total volume		44,966			39,836
Visits		722,677			619,745
Total (5):
Visiting Clinician Cost per Visit	$	84.27		$	83.88
Clinical Manager Cost per Visit		8.09			8.49
Total Cost per Visit	$	92.36		$	92.37
Visits		2,050,702			1,893,180

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	For the Year Ended December 31,
	2018				2017
Financial Information (in  millions):
Medicare	$	830.8		��	$	793.3
Non-Medicare		343.7				290.6
Net service revenue		1,174.5				1,083.9
Cost of service		722.1				670.9
Gross margin		452.4				413.0
Asset impairment charge		—				1.3
Other operating expenses		279.8				281.9
Operating income	$	172.6			$	129.8
Same Store Growth (1):
Medicare revenue		6	%			(4	%)
Non-Medicare revenue		18	%			17	%
Total admissions		5	%			2	%
Total volume (2)		7	%			4	%
Total Episodic admissions (3)		4	%			1	%
Total Episodic volume (4)		5	%			3	%
Key Statistical Data - Total (5):
Medicare:
Admissions		190,748				190,132
Recertifications		112,773				106,774
Total volume		303,521				296,906
Completed episodes		296,223				290,227
Visits		5,261,315				5,067,436
Average revenue per completed episode (6)	$	2,854			$	2,823
Visits per completed episode (7)		17.6				17.3
Non-Medicare:
Admissions		118,577				107,665
Recertifications		55,736				46,364
Total volume		174,313				154,029
Visits		2,772,339				2,347,363
Total (5):
Visiting Clinician Cost per Visit	$	81.88			$	82.04
Clinical Manager Cost per Visit		8.01				8.44
Total Cost per Visit	$	89.89			$	90.48
Visits		8,033,654				7,414,799

(1) Same store information represents the percent increase (decrease) in our Medicare,Non-Medicare, Total and Episodic revenue, admissions or volume for the period as a percent of the Medicare,Non-Medicare, Total and Episodic revenue, admissions or volume of the prior period.

(2) Total volume includes all admissions and recertifications.

(3) Total Episodic admissions includes admissions for Medicare andNon-Medicare payors that bill on a60-day episode of care basis.

(4) Total Episodic volume includes admissions and recertifications for Medicare andNon-Medicare payors that bill on a60-day episode of care basis.

(5) Total includes acquisitions.

(6) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(7) Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.

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Segment Information - Hospice

	For the Three- Month Period Ended December 31,
	2018			2017
Financial Information (in  millions):
Medicare	$	103.5		$	92.7
Non-Medicare		5.3			5.2
Net service revenue		108.8			97.9
Cost of service		56.8			50.6
Gross margin		52.0			47.3
Other operating expenses		23.2			20.8
Operating income	$	28.8		$	26.5
Same Store Growth (1):
Medicare revenue		11	%		14	%
Non-Medicare revenue		5	%		131	%
Hospice admissions		12	%		8	%
Average daily census		9	%		12	%
Key Statistical Data - Total (2):
Hospice admissions		7,152			6,371
Average daily census		7,809			7,162
Revenue per day, net	$	151.46		$	148.62
Cost of service per day	$	79.02		$	76.81
Average discharge length of stay		103			96

	For the Year Ended December 31,
	2018			2017
Financial Information (in  millions):
Medicare	$	390.2		$	350.7
Non-Medicare		20.7			17.1
Net service revenue		410.9			367.8
Cost of service		212.0			187.5
Gross margin		198.9			180.3
Other operating expenses		85.7			77.5
Operating income	$	113.2		$	102.8
Same Store Growth (1):
Medicare revenue		11	%		17	%
Non-Medicare revenue		21	%		20	%
Hospice admissions		8	%		11	%
Average daily census		11	%		15	%
Key Statistical Data - Total (2):
Hospice admissions		27,596			25,381
Average daily census		7,588			6,820
Revenue per day, net	$	148.36		$	147.75
Cost of service per day	$	76.53		$	75.31
Average discharge length of stay		100			93

(1) Same store information represents the percent increase (decrease) in our Medicare andNon-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare andNon-Medicare revenue, Hospice admissions or average daily census of the prior period.

(2) Total includes acquisitions.

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Segment Information - Personal Care

	For the Three- Month Period Ended December 31,
	2018		2017
Financial Information (in  millions):
Medicare	$	—	$	—
Non-Medicare		21.6		18.1
Net service revenue		21.6		18.1
Cost of service		16.1		13.7
Gross margin		5.5		4.4
Other operating expenses		3.4		3.1
Operating income	$	2.1	$	1.3
Key Statistical Data:
Billable hours		890,696		782,140
Clients served		13,054		12,646
Shifts		406,119		365,360
Revenue per hour	$	24.24	$	23.07
Revenue per shift	$	53.16	$	49.39
Hours per shift		2.2		2.1
	For the Year Ended December 31,
	2018		2017
Financial Information (in  millions):
Medicare	$	—	$	—
Non-Medicare		77.2		59.6
Net service revenue		77.2		59.6
Cost of service		58.8		45.0
Gross margin		18.4		14.6
Other operating expenses		13.1		9.7
Operating income	$	5.3	$	4.9
Key Statistical Data:
Billable hours		3,248,304		2,604,794
Clients served		17,981		16,774
Shifts		1,468,541		1,195,511
Revenue per hour	$	23.75	$	22.86
Revenue per shift	$	52.54	$	49.80
Hours per shift		2.2		2.2

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Segment Information - Corporate

	For the Three- Month Period Ended December 31,
	2018		2017
Financial Information (in  millions):
Other operating expenses	$	35.0	$	29.6
Depreciation and amortization		1.9		2.9
Total operating expenses	$	36.9	$	32.5
	For the Year Ended December 31,
	2018		2017
Financial Information (in  millions):
Other operating expenses	$	127.6	$	117.8
Depreciation and amortization		8.4		12.5
Total operating expenses before Securities Class Action Lawsuit settlement, net		136.0		130.3
Securities Class Action Lawsuit settlement, net		—		28.7
Total operating expenses	$	136.0	$	159.0

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AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

(Amounts in thousands)

(Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”):

	For the Three- Month Period Ended December 31,						For the Year Ended December 31,
	2018			2017			2018			2017
Net income (loss) attributable to Amedisys, Inc.	$	27,461		$	(3,848	)	$	119,346		$	30,301
Add:
Income tax expense		8,875			32,794			38,859			50,118
Interest expense, net		1,521			1,377			7,092			4,873
Depreciation and amortization		3,379			3,984			13,261			17,123
Certain items (1)		3,124			24,414			3,739			61,429
Interest component of certain items (1)		(451	)		(168	)		(1,731	)		(263	)
Tax component of certain items (1)		—			(21,424	)		—			(21,424	)
Adjusted EBITDA (2) (6)	$	43,909		$	37,129		$	180,566		$	142,157

Adjusted Net Service Revenue Reconciliation:

	For the Three- Month Period Ended December 31,				For the Year Ended December 31,
	2018		2017		2018		2017
Net service revenue	$	434,378	$	397,961	$	1,662,578	$	1,511,272
Add:
Certain items (1)		—		—		1,687		6,506
Adjusted net service revenue (3) (6)	$	434,378	$	397,961	$	1,664,265	$	1,517,778

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

	For the Three- Month Period Ended December 31,					For the Year Ended December 31,
	2018		2017			2018		2017
Net income (loss) attributable to Amedisys, Inc.	$	27,461	$	(3,848	)	$	119,346	$	30,301
Add:
Certain items (1)		2,312		23,233			2,767		45,627
Adjusted net income attributable to Amedisys, Inc. (4) (6)	$	29,773	$	19,385		$	122,113	$	75,928

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

	For the Three- Month Period Ended December 31,					For the Year Ended December 31,
	2018		2017			2018		2017
Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share	$	0.84	$	(0.11	)	$	3.55	$	0.88
Add:
Certain items (1)		0.07		0.67			0.08		1.33
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)	$	0.91	$	0.56		$	3.63	$	2.21

(1) The following details the certain items for the three month periods and years ended December 31, 2018 and 2017:

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Certain Items:

	For the Three-Month Period Ended December 31, 2018			For the Year Ended December 31, 2018
	(Income) Expense			(Income) Expense
Certain Items Impacting Net Service Revenue:
Florida self-audit(pre-acquisition)	$	—		$	1,687
Certain Items Impacting Operating Expenses:
Acquisition costs		1,025			2,757
Legal fees -non-routine		56			1,465
Indemnity receivable adjustment		2,143			2,143
Certain Items Impacting Total Other Income (Expense):
Legal settlements		—			(1,437	)
Miscellaneous, other (income) expense, net		(100	)		(2,876	)
Total	$	3,124		$	3,739
Net of tax	$	2,312		$	2,767
Diluted EPS	$	0.07		$	0.08

	For the Three-Month Period Ended December 31, 2017		For the Year Ended December 31, 2017
	(Income) Expense		(Income) Expense
Certain Items Impacting Net Service Revenue:
Florida ZPIC audit	$	—	$	6,506
Certain Items Impacting Operating Expenses:
Acquisition costs		48		1,025
Legal fees -non-routine		358		1,768
Securities Class Action Lawsuit settlement, net		—		28,712
Restructuring activity		648		2,318
Data center relocation		—		940
Asset impairment		1,323		1,323
Certain Items Impacting Total Other Income (Expense):
Legal settlements		—		(2,014	)
Miscellaneous, other (income) expense, net		613		(573	)
Certain Items Impacting Income Tax Expense:
Remeasurement of deferred tax assets and liabilities		21,424		21,424
Total	$	24,414	$	61,429
Net of tax	$	23,233	$	45,627
Diluted EPS	$	0.67	$	1.33

(2) Adjusted EBITDA is defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.

(3) Adjusted net service revenue is defined as net service revenue plus certain items as described in footnote 1.

(4) Adjusted net income attributable to Amedisys, Inc. is defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.

(5) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income (loss) per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.

(6) Adjusted EBITDA, adjusted net service revenue, adjusted net income attributable to Amedisys, Inc. and adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes or other measures calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate thesenon-GAAP financial measures in the same manner.

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