Company Announces Resignation of CFO BATON ROUGE, La., Feb. 22
/PRNewswire-FirstCall/ -- Amedisys, Inc. (Nasdaq: "AMED",
"Amedisys" or "the Company"), one of America's leading home health
nursing companies, today reported its financial results for the
fourth quarter and the year ended December 31, 2005. For the year
ended December 31, 2005, the Company reported net income of $30.1
million, or $1.88 per diluted share, on net service revenue of
$381.6 million. For the same period in the previous year, Amedisys
reported net income of $20.5 million, or $1.51 per diluted share,
on net service revenue of $227.1 million. The diluted weighted
average number of shares outstanding approximated 16.0 million in
the year ended December 31, 2005 and 13.5 million in the comparable
period of 2004. For the quarter ended December 31, 2005, the
Company reported net income of $7.3 million, or $0.45 per diluted
share, on record net service revenue of $118.9 million. Net service
revenue increased 85 percent when compared with the $64.4 million
reported for the comparable period in the prior year. Amedisys
reported net income of $6.1 million, or $0.39 per diluted share for
the quarter ended December 31, 2004. The diluted weighted average
number of shares outstanding approximated 16.2 million for the
quarter ended December 31, 2005 and 15.6 million for the comparable
period of 2004. The net service revenue for both the fourth quarter
and fiscal year ended December 31, 2005 reflect the impact of the
recently adopted Deficit Reduction Act. "While fiscal 2005
represented the strongest net income and service revenue in
Amedisys' history, our weaker than expected fourth quarter is
attributable to a number of factors, primarily relating to the
transitional cost and delayed timeline expectations for performance
improvement from the recent acquisitions of Housecall and
Spectracare, the as yet unrealized synergies from the reduction in
Housecall's corporate office expenses and the residual impact of
last summer's hurricanes," noted William F. Borne, Chief Executive
Officer of Amedisys. "The softness seen in the fourth quarter was
primarily cost-driven, related to transitional activities and
reformatting initiatives to convert payor mix, systems, and
operations to an Amedisys profile, all of which are now in place.
We expect to see continually improving results as 2006 progresses.
Management remains confident that last summer's acquisitions will
prove to be as accretive as initially anticipated, and is committed
to achieving that goal as quickly as possible." "Our results, both
for the quarter and the full year, are indicative of Amedisys'
continued solid top-line growth, which has been a critical driver
in the Company's ability to deliver strong earnings growth over the
last three years," continued Mr. Borne. "Amedisys reported an
increase for the year ended December 31, 2005 in net service
revenue of 68 percent, and in net income of approximately 47
percent, when compared with the prior year. Our results are due, in
part, to the continued strong internal growth of Medicare
admissions. This growth rate was approximately 16 percent for the
fourth quarter, and 18 percent for the year, and reflects the
significant efforts made by all of our field staff towards further
enhancing the clinical reputation of the Company." "We remain
committed to achieving solid organic growth and executing select
acquisitions, and continue to be excited about our future
opportunities," said Mr. Borne. "For 2006, Amedisys expects an
internal growth rate of Medicare admissions of at least 15 percent,
in addition to potential acquisitions." On February 8, 2006, the
Company advised that it had updated guidance for 2006 based on the
impact of the Deficit Reduction Act, and it continues to expect
full-year 2006 earnings will be between $2.33 and $2.43 cents per
share on net service revenue of approximately $510 million.
Separately, Amedisys also announced today that Gregory H. Browne,
Chief Financial Officer, has resigned in order to pursue other
professional interests. Amedisys has engaged an executive search
firm in order to identify an appropriate successor to Mr. Browne,
who will remain as Chief Financial Officer at Amedisys until such
individual is identified and transitioned. "On behalf of the entire
Amedisys family, I'd like to extend my sincerest thanks and wishes
for future success to Greg," commented Mr. Borne. "We have enjoyed
the benefits of Greg's financial leadership over the past four
years and appreciate the contributions he has made to Amedisys'
extraordinary growth over that time." "I am proud of what we have
accomplished at Amedisys in the past four years," said Mr. Browne.
"I'd like to take this opportunity to thank everyone at the Company
for their support, and I have every confidence in Amedisys'
continued success." The Company will provide further information
tomorrow on these results during a teleconference call that is
scheduled for 9:00 a.m. ET. To access this call, please dial
1-877-691-0877 (domestic) or 1-973-582-2767 (international). A
replay of the conference call will be available until March 2nd
2006, by dialing 1-877-519-4471 (domestic) or 1-973-341-3080
(international). The replay pin number is 7006010. Amedisys, Inc.,
a leading provider of home health nursing services, is
headquartered in Baton Rouge, Louisiana. Its common stock trades on
The Nasdaq Stock 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 on the World Wide Web http://www.amedisys.com/
AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For
the three and twelve months ended December 31, 2005 and 2004
(Amounts in thousands, except per share data) For the three months
For the twelve months ended ended December 31, December 31, 2005
2004 2005 2004 Income: Net service revenue $118,893 $64,359
$381,558 $227,089 Cost of service revenue (excluding depreciation
and amortization) 52,515 27,326 163,032 96,078 Gross margin 66,378
37,033 218,526 131,011 General and administrative expenses:
Salaries and benefits 28,825 15,346 93,485 56,916 Other 25,713
11,737 74,939 40,717 Total general and administrative expenses
54,538 27,083 168,424 97,633 Operating income 11,840 9,950 50,102
33,378 Other income (expense): Interest income 325 370 1,464 550
Interest expense (1,108) (144) (2,932) (510) Miscellaneous 59 (31)
106 (59) Total other expense, net (724) 195 (1,362) (19) Income
before income taxes 11,116 10,145 48,740 33,359 Income tax expense
3,814 4,009 18,638 12,855 Net income $7,302 $6,136 $30,102 $20,504
Basic weighted average common shares outstanding 15,828 15,255
15,606 13,057 Basic income per common share: Net income $ 0.46
$0.40 $1.93 $1.57 Diluted weighted average common shares
outstanding 16,196 15,639 15,970 13,543 Diluted income per common
share: Net income $0.45 $0.39 $1.88 $1.51 AMEDISYS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2005
and December 31, 2004 (Amounts in thousands, except share data)
December 31, December 31, 2005 2004 ASSETS: CURRENT ASSETS: Cash
and cash equivalents $17,231 $39,596 Short term investments -
50,083 Patient accounts receivable, net of allowance for doubtful
accounts of $12,387 at December 31, 2005 and $3,751 at December 31,
2004 68,139 24,478 Prepaid expenses 2,693 1,356 Other current
assets 4,277 3,377 Total current assets 92,340 118,890 Property and
equipment, net 27,389 10,003 Goodwill 197,002 62,537 Intangible
assets, net of $3,108 and $1,177 of accumulated amortization at
December 31, 2005 and December 31, 2004, respectively 11,447 4,447
Other assets, net 11,819 3,856 Total assets $339,997 $199,733
LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts
payable $29,922 $6,681 Accrued expenses 45,165 22,503 Obligations
due Medicare 10,551 9,327 Current portion of long term obligations
10,144 2,112 Current portion of deferred income taxes 4,173 1,353
Total current liabilities 99,955 41,976 Long-term obligations
43,061 1,709 Deferred income taxes 3,556 6,749 Other long-term
liabilities 824 826 Total liabilities 147,398 51,260 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; 15,877,524 and 15,310,380
shares issued at December 31, 2005 and December 31, 2004,
respectively 16 15 Additional paid-in capital 146,684 132,032
Unearned Compensation (628) - Treasury stock at cost, 4,167 shares
held at December 31, 2005 and December 31, 2004 (25) (25) Retained
earnings (deficit) 46,552 16,451 Total stockholders' equity 192,599
148,473 Total liabilities and stockholders' equity $339,997
$199,733 Contact: Amedisys, Inc. Gregory H. Browne Chief Financial
Officer (225) 292-2031 Noonan Russo Investor Relations Brian
Ritchie (212) 845-4269 DATASOURCE: Amedisys, Inc. CONTACT: Gregory
H. Browne, Chief Financial Officer of Amedisys, Inc.,
+1-225-292-2031, ; or Brian Ritchie of Noonan Russo, Investor
Relations, +1-212-845-4269, Web site: http://www.amedisys.com/
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