Amedisys Reports Second Quarter 2023 Financial Results

BATON ROUGE, La., July 26, 2023 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June 30, 2023.

Three-Month Periods Ended June 30, 2023 and 2022

• Net service revenue decreased $4.9 million to $553.0 million compared to $557.9 million in 2022.
• Net loss attributable to Amedisys, Inc. of $80.3 million, which is inclusive of $125.5 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $29.6 million in 2022.
• Net loss attributable to Amedisys, Inc. per diluted share of $2.46 compared to net income attributable to Amedisys, Inc. per diluted share of $0.91 in 2022.
  

Adjusted Quarterly Results*

• Adjusted EBITDA of $74.6 million compared to $74.4 million in 2022.
• Adjusted net service revenue of $553.0 million compared to $566.3 million in 2022.
• Adjusted net income attributable to Amedisys, Inc. of $44.9 million compared to $48.0 million in 2022.
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.37 compared to $1.47 in 2022.

Six-Month Periods Ended June 30, 2023 and 2022

• Net service revenue increased $6.3 million to $1,109.4 million compared to $1,103.1 million in 2022.
• Net loss attributable to Amedisys, Inc. of $55.0 million, which is inclusive of $126.2 million in costs associated with our merger transactions, compared to net income attributable to Amedisys, Inc. of $61.3 million in 2022.
• Net loss attributable to Amedisys, Inc. per diluted share of $1.69 compared to net income attributable to Amedisys, Inc. of $1.87 in 2022.
  

Adjusted Year to Date Results*

• Adjusted EBITDA of $132.5 million compared to $140.7 million in 2022.
• Adjusted net service revenue of $1,109.4 million compared to $1,111.5 million in 2022.
• Adjusted net income attributable to Amedisys, Inc. of $77.6 million compared to $88.1 million in 2022.
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.38 compared to $2.69 in 2022.

* See pages 2 and 14 - 16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

The supplemental slides provided in connection with the second quarter 2023 earnings release can be found on the Investor Relations page of our website. In light of the pending merger of the Company with UnitedHealth Group Incorporated, Amedisys will not conduct a quarterly earnings call to discuss the second quarter results and has decided to suspend guidance on 2023 financial performance.

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

Additional Information

Amedisys, Inc. (the “Company”) is a leading healthcare at home company delivering personalized home health, hospice and high acuity care services. Amedisys is focused on delivering the care that is best for our patients, whether that is in-patient hospital, palliative and skilled nursing facility ("SNF") care in their homes, home-based recovery and rehabilitation after an operation or injury, care focused on empowering our patients to manage a chronic disease or hospice care at the end of life. More than 3,000 hospitals and 102,000 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 approximately 18,500 employees in 522 care centers within 37 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 455,000 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 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,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “will,” “could,” “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: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms and timetable; the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the inability to complete the proposed transaction due to the failure to obtain approval of the stockholders of Amedisys or to satisfy any other condition in a timely manner or at all; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger; changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; 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; the impact of the novel coronavirus pandemic ("COVID-19") on our business, financial condition and results of operations; changes in estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; and changes in laws 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: Amedisys, Inc. Nick Muscato Chief Strategy Officer (615) 928- 5452 IR@amedisys.com	Media Contact: Amedisys, Inc. Kendra Kimmons Vice President, Marketing & Communications (225) 299-3720 kendra.kimmons@amedisys.com

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) (Unaudited)
	For the Three-Month  Periods Ended June 30,								For the Six-Month Periods Ended June 30,
		2023				2022				2023				2022
Net service revenue	$	552,968			$	557,890			$	1,109,357			$	1,103,147
Operating expenses:
Cost of service, inclusive of depreciation		297,455				316,211				612,465				621,031
General and administrative expenses:
Salaries and benefits		125,504				127,758				251,843				251,238
Non-cash compensation		9,108				5,148				12,381				12,495
Depreciation and amortization		4,725				6,220				9,168				14,228
Other		78,381				54,912				143,326				108,552
Total operating expenses		515,173				510,249				1,029,183				1,007,544
Operating income		37,795				47,641				80,174				95,603
Other income (expense):
Interest income		742				36				1,148				49
Interest expense		(7,502	)			(8,311	)			(15,019	)			(11,484	)
Equity in earnings (loss) from equity method investments		7,991				659				8,114				(744	)
Merger termination fee		(106,000	)			—				(106,000	)			—
Miscellaneous, net		4,743				331				4,061				664
Total other expense, net		(100,026	)			(7,285	)			(107,696	)			(11,515	)
(Loss) income before income taxes		(62,231	)			40,356				(27,522	)			84,088
Income tax expense		(18,250	)			(11,319	)			(28,050	)			(23,338	)
Net (loss) income		(80,481	)			29,037				(55,572	)			60,750
Net loss attributable to noncontrolling interests		206				542				543				500
Net (loss) income attributable to Amedisys, Inc.	$	(80,275	)		$	29,579			$	(55,029	)		$	61,250
Basic earnings per common share:
Net (loss) income attributable to Amedisys, Inc. common stockholders	$	(2.46	)		$	0.91			$	(1.69	)		$	1.88
Weighted average shares outstanding		32,579				32,522				32,568				32,538
Diluted earnings per common share:
Net (loss) income attributable to Amedisys, Inc. common stockholders	$	(2.46	)		$	0.91			$	(1.69	)		$	1.87
Weighted average shares outstanding		32,579				32,681				32,568				32,722

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
	June 30, 2023 (unaudited)				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	95,377			$	40,540
Restricted cash		15,784				13,593
Patient accounts receivable		278,785				296,785
Prepaid expenses		13,774				11,628
Other current assets		22,824				26,415
Total current assets		426,544				388,961
Property and equipment, net of accumulated depreciation of $90,523 and $101,364		36,399				16,026
Operating lease right of use assets		85,142				102,856
Goodwill		1,244,679				1,287,399
Intangible assets, net of accumulated amortization of $17,714 and $14,604		104,744				101,167
Other assets		84,894				79,836
Total assets	$	1,982,402			$	1,976,245
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	38,557			$	43,735
Payroll and employee benefits		123,234				125,387
Accrued expenses		137,359				137,390
Termination fee paid by UnitedHealth Group		106,000				—
Current portion of long-term obligations		31,465				15,496
Current portion of operating lease liabilities		25,786				33,521
Total current liabilities		462,401				355,529
Long-term obligations, less current portion		369,896				419,420
Operating lease liabilities, less current portion		59,634				69,504
Deferred income tax liabilities		28,085				20,411
Other long-term obligations		1,629				4,808
Total liabilities		921,645				869,672
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; 38,030,397 and 37,891,186 shares issued; 32,608,325 and 32,511,465 shares outstanding		38				38
Additional paid-in capital		768,789				755,063
Treasury stock, at cost, 5,422,072 and 5,379,721 shares of common stock		(464,688	)			(461,200	)
Retained earnings		702,643				757,672
Total Amedisys, Inc. stockholders’ equity		1,006,782				1,051,573
Noncontrolling interests		53,975				55,000
Total equity		1,060,757				1,106,573
Total liabilities and equity	$	1,982,402			$	1,976,245

AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING (Amounts in thousands, except statistical information) (Unaudited)
	For the Three-Month Periods Ended June 30,								For the Six-Month Periods Ended June 30,
		2023				2022				2023				2022
Cash Flows from Operating Activities:
Net (loss) income	$	(80,481	)		$	29,037			$	(55,572	)		$	60,750
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization (inclusive of depreciation included in cost of service)		6,199				6,220				11,893				14,228
Non-cash compensation		9,108				5,148				12,381				12,495
Amortization and impairment of operating lease right of use assets		8,349				12,367				16,971				22,463
Loss on disposal of property and equipment		426				526				356				531
Loss on personal care divestiture		—				—				2,186				—
Merger termination fee		106,000				—				106,000				—
Deferred income taxes		5,332				2,798				8,104				6,003
Equity in (earnings) loss from equity method investments		(7,991	)			(659	)			(8,114	)			744
Amortization of deferred debt issuance costs		247				247				495				495
Return on equity method investments		966				718				2,753				2,428
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		15,338				(2,726	)			7,862				(21,344	)
Other current assets		5,817				(12,350	)			1,689				(4,468	)
Operating lease right of use assets		(1,019	)			(913	)			(1,937	)			(1,662	)
Other assets		355				(27	)			244				220
Accounts payable		(1,274	)			6,613				(4,731	)			4,498
Accrued expenses		4,034				22,046				4,775				29,529
Other long-term obligations		(3,151	)			(166	)			(3,179	)			(223	)
Operating lease liabilities		(7,496	)			(11,470	)			(15,456	)			(20,657	)
Net cash provided by operating activities		60,759				57,409				86,720				106,030
Cash Flows from Investing Activities:
Proceeds from the sale of deferred compensation plan assets		6				6				25				28
Proceeds from the sale of property and equipment		100				—				100				37
Purchases of property and equipment		(1,394	)			(1,880	)			(2,744	)			(2,782	)
Investments in technology assets		(6,457	)			(323	)			(6,667	)			(559	)
Purchase of cost method investment		—				—				—				(15,000	)
Proceeds from personal care divestiture		—				—				47,787				—
Acquisitions of businesses, net of cash acquired		—				(73,311	)			(350	)			(73,311	)
Net cash (used in) provided by investing activities		(7,745	)			(75,508	)			38,151				(91,587	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options		75				686				75				772
Proceeds from issuance of stock under employee stock purchase plan		938				906				1,754				1,891
Shares withheld to pay taxes on non-cash compensation		(2,180	)			(80	)			(3,488	)			(4,762	)
Noncontrolling interest contributions		376				300				376				952
Noncontrolling interest distributions		(427	)			(303	)			(712	)			(975	)
Proceeds from borrowings under revolving line of credit		15,000				298,500				23,000				298,500
Repayments of borrowings under revolving line of credit		(15,000	)			(283,500	)			(23,000	)			(283,500	)
Principal payments of long-term obligations		(5,680	)			(3,204	)			(60,993	)			(6,975	)
Purchase of company stock		—				(17,351	)			—				(17,351	)
Payment of accrued contingent consideration		(4,055	)			—				(4,055	)			—
Purchase of noncontrolling interest		—				—				(800	)			—
Net cash used in financing activities		(10,953	)			(4,046	)			(67,843	)			(11,448	)
Net increase (decrease) in cash, cash equivalents and restricted cash		42,061				(22,145	)			57,028				2,995
Cash, cash equivalents and restricted cash at beginning of period		69,100				70,909				54,133				45,769
Cash, cash equivalents and restricted cash at end of period	$	111,161			$	48,764			$	111,161			$	48,764
	For the Three-Month  Periods Ended June 30,								For the Six-Month  Periods Ended June 30,
		2023				2022				2023				2022
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	6,377			$	2,625			$	13,031			$	4,489
Cash paid for income taxes, net of refunds received	$	15,468			$	22,426			$	15,820			$	22,977
Cash paid for operating lease liabilities	$	8,516			$	12,383			$	17,394			$	22,319
Cash paid for finance lease liabilities	$	2,864			$	378			$	5,321			$	735
Supplemental Disclosures of Non-Cash Activity:
Right of use assets obtained in exchange for operating lease liabilities	$	7,719			$	15,387			$	14,802			$	26,590
Right of use assets obtained in exchange for finance lease liabilities	$	7,154			$	1,100			$	27,944			$	1,316
Reductions to right of use assets resulting from reductions to operating lease liabilities	$	14,994			$	2,464			$	15,135			$	2,763
Reductions to right of use assets resulting from reductions to finance lease liabilities	$	525			$	—			$	894			$	—
Accrued contingent consideration	$	—			$	19,195			$	—			$	19,195
Noncontrolling interest contribution	$	—			$	—			$	—			$	8,900
Days revenue outstanding (1)		43.4				46.8				43.4				46.8

(1) Our calculation of days revenue outstanding at June 30, 2023 and 2022 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended June 30, 2023 and 2022, respectively.

AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)
Segment Information - Home Health
	For the Three-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (6):
Medicare	$	219.8			$	222.0
Non-Medicare		130.0				119.9
Net service revenue		349.8				341.9
Cost of service, inclusive of depreciation		194.5				194.7
Gross margin		155.3				147.2
General and administrative expenses		90.2				88.8
Depreciation and amortization		1.2				1.5
Operating income	$	63.9			$	56.9
Same Store Growth(1):
Medicare revenue		(1	%)			(9	%)
Non-Medicare revenue		10	%			(3	%)
Total admissions		4	%			—	%
Total volume(2)		3	%			(2	%)
Key Statistical Data - Total(3)(6):
Admissions		97,453				94,063
Recertifications		45,808				45,821
Total volume		143,261				139,884
Medicare completed episodes		74,848				78,321
Average Medicare revenue per completed episode(4)	$	3,005			$	3,051
Medicare visits per completed episode(5)		12.5				13.2
Visiting clinician cost per visit	$	99.81			$	97.68
Clinical manager cost per visit		11.14				10.77
Total cost per visit	$	110.95			$	108.45
Visits		1,752,449				1,795,611

	For the Six-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (6):
Medicare	$	435.2			$	446.1
Non-Medicare		257.9				231.5
Net service revenue		693.1				677.6
Cost of service, inclusive of depreciation		391.5				379.9
Gross margin		301.6				297.7
General and administrative expenses		179.3				172.0
Depreciation and amortization		2.3				2.4
Operating income	$	120.0			$	123.3
Same Store Growth(1):
Medicare revenue		(4	%)			(4	%)
Non-Medicare revenue		11	%			—	%
Total admissions		6	%			1	%
Total volume(2)		4	%			(1	%)
Key Statistical Data - Total(3)(6):
Admissions		199,416				185,827
Recertifications		89,133				88,677
Total volume		288,549				274,504
Medicare completed episodes		148,411				152,764
Average Medicare revenue per completed episode(4)	$	2,990			$	3,032
Medicare visits per completed episode(5)		12.4				13.1
Visiting clinician cost per visit	$	99.83			$	97.41
Clinical manager cost per visit		11.13				10.77
Total cost per visit	$	110.96			$	108.18
Visits		3,527,655				3,511,822

(1)  Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)  Total volume includes all admissions and recertifications.
(3)  Total includes acquisitions, start-ups and denovos.
(4)  Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode reflects the suspension of sequestration at 2% and 1% for the three-month periods ended March 31, 2022 and June 30, 2022, respectively, and the reinstatement of sequestration at 2% for the three and six-month period ended June 30, 2023.
(5)  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.
(6)  Prior year has been recast to conform to the current year presentation.

Segment Information - Hospice

	For the Three-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions):
Medicare	$	188.2			$	187.5
Non-Medicare		11.0				10.9
Net service revenue		199.2				198.4
Cost of service, inclusive of depreciation		98.8				107.4
Gross margin		100.4				91.0
General and administrative expenses		47.9				51.6
Depreciation and amortization		0.7				0.6
Operating income	$	51.8			$	38.8
Same Store Growth(1):
Medicare revenue		—	%			—	%
Hospice admissions		(6	%)			6	%
Average daily census		(2	%)			—	%
Key Statistical Data - Total(2):
Hospice admissions		12,395				13,359
Average daily census		12,918				13,249
Revenue per day, net	$	169.47			$	164.55
Cost of service per day	$	84.03			$	89.05
Average discharge length of stay		90				87

	For the Six-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions):
Medicare	$	370.9			$	370.0
Non-Medicare		21.7				21.4
Net service revenue		392.6				391.4
Cost of service, inclusive of depreciation		200.2				213.8
Gross margin		192.4				177.6
General and administrative expenses		95.8				102.9
Depreciation and amortization		1.3				1.3
Operating income	$	95.3			$	73.4
Same Store Growth(1):
Medicare revenue		—	%			—	%
Hospice admissions		(6	%)			4	%
Average daily census		(1	%)			(1	%)
Key Statistical Data - Total(2):
Hospice admissions		25,393				27,245
Average daily census		12,825				13,086
Revenue per day, net	$	169.15			$	165.28
Cost of service per day	$	86.24			$	90.24
Average discharge length of stay		90				88

(1)   Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)   Total includes acquisitions and denovos.

 

Segment Information - Personal Care ⁽¹⁾

	For the Three-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions):
Medicare	$	—			$	—
Non-Medicare		—				14.9
Net service revenue		—				14.9
Cost of service, inclusive of depreciation		—				11.4
Gross margin		—				3.5
General and administrative expenses		—				2.3
Depreciation and amortization		—				—
Operating income	$	—			$	1.2
Key Statistical Data - Total:
Billable hours		—				472,523
Clients served		—				7,759
Shifts		—				201,996
Revenue per hour	$	—			$	31.59
Revenue per shift	$	—			$	73.89
Hours per shift		—				2.3

	For the Six-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions):
Medicare	$	—			$	—
Non-Medicare		15.0				28.9
Net service revenue		15.0				28.9
Cost of service, inclusive of depreciation		11.1				22.2
Gross margin		3.9				6.7
General and administrative expenses		2.3				4.5
Depreciation and amortization		—				0.1
Operating income	$	1.6			$	2.1
Key Statistical Data - Total:
Billable hours		440,464				923,555
Clients served		7,892				8,591
Shifts		191,379				395,738
Revenue per hour	$	33.97			$	31.27
Revenue per shift	$	78.19			$	72.99
Hours per shift		2.3				2.3

(1) We completed the sale of our personal care business on March 31, 2023.

Segment Information - High Acuity Care

	For the Three-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (1):
Medicare	$	—			$	—
Non-Medicare		4.0				2.7
Net service revenue		4.0				2.7
Cost of service, inclusive of depreciation		4.2				2.7
Gross margin		(0.2	)			—
General and administrative expenses		5.3				5.2
Depreciation and amortization		0.8				0.8
Operating loss	$	(6.3	)		$	(6.0	)
Key Statistical Data - Total:
Full risk admissions		186				104
Limited risk admissions		348				241
Total admissions		534				345
Full risk revenue per episode	$	9,303			$	11,278
Limited risk revenue per episode	$	6,098			$	5,316
Number of admitting joint venture markets		11				9

	For the Six-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (1):
Medicare	$	—			$	—
Non-Medicare		8.7				5.2
Net service revenue		8.7				5.2
Cost of service, inclusive of depreciation		9.7				5.1
Gross margin		(1.0	)			0.1
General and administrative expenses		9.7				9.5
Depreciation and amortization		1.6				1.6
Operating loss	$	(12.3	)		$	(11.0	)
Key Statistical Data - Total:
Full risk admissions		344				210
Limited risk admissions		807				468
Total admissions		1,151				678
Full risk revenue per episode	$	10,236			$	10,672
Limited risk revenue per episode	$	5,878			$	5,541
Number of admitting joint venture markets		11				9

(1)  Prior year has been recast to conform to the current year presentation.

Segment Information - Corporate

	For the Three-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (1):
General and administrative expenses	$	69.6			$	40.0
Depreciation and amortization		2.0				3.3
Total operating expenses	$	71.6			$	43.3

	For the Six-Month Periods Ended June 30,
		2023				2022
Financial Information (in millions) (1):
General and administrative expenses	$	120.4			$	83.4
Depreciation and amortization		4.0				8.8
Total operating expenses	$	124.4			$	92.2

(1)  Prior year has been recast to conform to the current year presentation.

AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES
(Amounts in thousands)
(Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Reconciliation:

	For the Three-Month Periods Ended June 30,								For the Six-Month Periods Ended June 30,
		2023				2022				2023				2022
Net (loss) income attributable to Amedisys, Inc.	$	(80,275	)		$	29,579			$	(55,029	)		$	61,250
Add:
Income tax expense		18,250				11,319				28,050				23,338
Interest expense, net		6,760				8,275				13,871				11,435
Depreciation and amortization		6,199				6,220				11,893				14,228
Certain items(1)		123,704				23,609				133,691				35,059
Interest component of certain items(1)		—				(4,652	)			—				(4,652	)
Adjusted EBITDA(2)(6)	$	74,638			$	74,350			$	132,476			$	140,658

Adjusted Net Service Revenue Reconciliation:

	For the Three-Month Periods Ended June 30,								For the Six-Month Periods Ended June 30,
		2023				2022				2023				2022
Net service revenue	$	552,968			$	557,890			$	1,109,357			$	1,103,147
Add:
Certain items(1)		—				8,374				—				8,374
Adjusted net service revenue(3) (6)	$	552,968			$	566,264			$	1,109,357			$	1,111,521

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

	For the Three-Month Periods Ended June 30,							For the Six-Month Periods Ended June 30,
		2023				2022			2023				2022
Net (loss) income attributable to Amedisys, Inc.	$	(80,275	)		$	29,579		$	(55,029	)		$	61,250
Add:
Certain items(1)		125,153				18,373			132,642				26,847
Adjusted net income attributable to Amedisys, Inc.(4)(6)	$	44,878			$	47,952		$	77,613			$	88,097

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

	For the Three-Month Periods Ended June 30,								For the Six-Month Periods Ended June 30,
		2023				2022				2023				2022
Net (loss) income attributable to Amedisys, Inc. common stockholders per diluted share	$	(2.46	)		$	0.91			$	(1.69	)		$	1.87
Add:
Certain items(1)		3.83				0.56				4.06				0.82
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share(5)(6)	$	1.37			$	1.47			$	2.38			$	2.69

(1)   The following details the certain items for the three and six-month periods ended June 30, 2023 and 2022:

Certain Items (in thousands):

	For the Three-Month Periods Ended June 30, 2023				For the Six-Month Periods Ended June 30, 2023
	(Income) Expense				(Income) Expense
Certain Items Impacting Cost of Service, Inclusive of Depreciation:
Clinical optimization and reorganization costs	$	—			$	114
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		1,101				2,768
Executive Board of Directors/CEO transition award		3,435				4,185
Merger-related legal and professional fees		19,451				20,171
Clinical optimization and reorganization costs		567				3,737
Personal care divestiture		11				525
Certain Items Impacting Total Other Income (Expense):
Other (income) expense, net (includes $106,000 merger termination fee)		99,139				102,191
Total	$	123,704			$	133,691
Net of tax	$	125,153			$	132,642
Diluted EPS	$	3.83			$	4.06

	For the Three-Month Periods Ended June 30, 2022				For the Six-Month Periods Ended June 30, 2022
	(Income) Expense				(Income) Expense
Certain Items Impacting Net Service Revenue:
Contingency accrual	$	8,374			$	8,374
Certain Items Impacting Cost of Service:
COVID-19 costs		1,803				5,536
Clinical optimization and reorganization costs		195				195
Fuel supplement		1,016				1,353
Integration costs		1,401				1,401
Certain Items Impacting General and Administrative Expenses:
Acquisition and integration costs		5,323				6,701
COVID-19 costs		84				237
Executive Board of Directors/CEO transition award		—				3,500
Legal fees - non-routine		190				241
Clinical optimization and reorganization costs		869				869
Legal settlement		(1,058	)			(1,058	)
Certain Items Impacting Total Other Income (Expense):
Interest component of certain items		4,652				4,652
Other (income) expense, net		760				3,058
Total	$	23,609			$	35,059
Net of tax	$	18,373			$	26,847
Diluted EPS	$	0.56			$	0.82

(2) Adjusted EBITDA is defined as net (loss) income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
(3) Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)   Adjusted net income attributable to Amedisys, Inc. is defined as net (loss) income 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 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 these non-GAAP financial measures in the same manner.