Financial Performance - For the three-month period ended March 31, 2025, net service revenue increased to $594.8 million, up from $571.4 million in the same period of 2024, representing a year-over-year growth of approximately 4.4%[126] - Operating income for the same period rose to $43.4 million, an increase of $12 million compared to $31.6 million in 2024[126] - The gross margin improved slightly to 43.8% of revenue in 2025, compared to 43.7% in 2024[126] - Net income attributable to Amedisys, Inc. increased significantly to $61.0 million, compared to $14.4 million in the prior year, marking a growth of over 323%[126] Revenue Sources - The company derived approximately 69% of its consolidated net service revenue from Medicare for the three-month period ended March 31, 2025[113] - Total net service revenue for the home health segment increased by $15 million to $379.2 million, driven by a 5% growth in same store total volume and improved collections[130][133] - Operating income for the home health segment rose to $62.3 million, up from $60.8 million, primarily due to volume growth and increased Medicare reimbursement[130][131] - The hospice segment's net service revenue increased by $5 million to $206.2 million, with Medicare revenue growing by 4% year-over-year[136][139] - The high acuity care segment achieved a total admissions growth of 31%, with net service revenue rising to $9.4 million from $6.4 million[142][144] Expenses and Costs - Amedisys incurred $17 million in merger-related expenses for the three-month period ended March 31, 2025, down from $21 million in the same period of 2024[126] - General and administrative expenses for the corporate segment decreased by $6 million year-over-year to $63.5 million, including a $4 million reduction in merger-related expenses[147][148] - Cash used in operating activities was $3.7 million, a slight improvement from $6.5 million in the prior year, impacted by accounts payable and accrued expenses[149] - Cash used in investing activities totaled $1.4 million, down from $3.1 million, primarily for property and equipment purchases[150] - Cash used in financing activities increased to $13.3 million from $8.6 million, mainly due to repayment of borrowings[151] Legal and Regulatory Matters - The proposed merger with UnitedHealth Group is currently facing legal challenges, with a trial tentatively set to begin on October 27, 2025[116] - The Centers for Medicare and Medicaid Services (CMS) estimated a 2.9% increase in hospice payments for fiscal year 2025, effective October 1, 2024[123] - CMS also projected a 0.5% increase in payments to home health providers for the Calendar Year 2025[125] Cash and Debt Management - Cash and cash equivalents as of March 31, 2025, totaled $284.9 million, with $508.0 million available under the $550.0 million Revolving Credit Facility[154] - The company has no outstanding borrowings under the $550.0 million Revolving Credit Facility as of March 31, 2025, with a weighted average interest rate of 6.0% for the Amended Term Loan Facility[162] - A 1.0% change in interest rates would result in an approximate $3.4 million annual change in interest expense, based on $343.8 million of outstanding debt subject to interest rate fluctuations[166] - The Fourth Amendment to the Credit Agreement extended the maturity date of the Credit Facility from July 30, 2026, to July 30, 2027[160] Operational Challenges - The company experienced a cybersecurity incident affecting Change Healthcare, which delayed claim submissions but had minimal impact on Medicare claims[153] - The company expects continued operating losses in the high acuity care segment but anticipates improvements as it leverages its operating structure[143] - Inflation has materially impacted operations, particularly in labor and healthcare costs, with expectations for continued effects in 2025[164] Accounts Receivable - Patient accounts receivable increased by $24 million from December 31, 2024, with cash collection as a percentage of revenue at 97% for Q1 2025, up from 93% in Q1 2024[156] - Days revenue outstanding as of March 31, 2025, was 45.7 days, an increase of 2.7 days from December 31, 2024, but a decrease of 8.4 days compared to March 31, 2024[156] - Total patient accounts receivable as of March 31, 2025, was $319.6 million, compared to $296.1 million at December 31, 2024[158]

Company Performance - Amedisys reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and up from $1.03 per share a year ago, representing an earnings surprise of 10.62% [1] - The company posted revenues of $594.78 million for the quarter ended March 2025, which aligns with the Zacks Consensus Estimate and shows an increase from $571.41 million year-over-year [2] - Over the last four quarters, Amedisys has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [2] Future Outlook - The sustainability of Amedisys's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $1.43 on revenues of $616.25 million, and for the current fiscal year, it is $4.78 on revenues of $2.45 billion [7] - The estimate revisions trend for Amedisys is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Amedisys belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Amedisys's performance [5]

Core Viewpoint - Amedisys, Inc. reported strong financial results for the first quarter of 2025, highlighting significant growth in net service revenue and net income, alongside the context of a pending merger with UnitedHealth Group [1][3][6]. Financial Performance - Net service revenue increased by $23.4 million to $594.8 million compared to $571.4 million in the same period of 2024 [6]. - Net income attributable to Amedisys, Inc. was $61.0 million, which included merger-related expenses of $16.8 million and a gain of $48.1 million on an equity method investment [6][12]. - Adjusted EBITDA for the quarter was $68.8 million, up from $59.9 million in 2024 [6][19]. - Adjusted net income attributable to Amedisys, Inc. was $41.6 million, compared to $33.9 million in 2024 [6][20]. Earnings Per Share - Net income attributable to Amedisys, Inc. per diluted share was $1.84, a significant increase from $0.44 in 2024 [6][21]. - Adjusted net income attributable to Amedisys, Inc. per diluted share was $1.25, compared to $1.03 in the previous year [6][21]. Operational Highlights - The company operates approximately 519 care centers across 38 states and the District of Columbia, serving over 499,000 patients annually [5]. - Amedisys has partnerships with more than 3,300 hospitals and 114,000 physicians nationwide [5]. Merger Context - The company will not conduct a quarterly earnings call due to the pending merger with UnitedHealth Group, indicating a strategic focus on the merger process [3][6].

Financial Dates and Agreements - The Fourth Amendment Effective Date is April 17, 2025[5] - The Revolving Facility Maturity Date is set for July 30, 2027[7] - The Term Facility Maturity Date is also July 30, 2027[8] - The principal amortization payment schedule includes 0.625% payments from December 2021 to September 2023, followed by 1.250% payments from December 2023 to June 2027[11][12] - The Credit Agreement allows for Conforming Changes to be made by the Administrative Agent[3] - The definitions of "Term SOFR" and "U.S. Government Securities Business Day" have been amended[9][10] - The Company is required to reimburse the Administrative Agent for all reasonable fees and expenses related to the Agreement[18] - The Loan Parties confirm that the Collateral Documents remain in full force and effect[20] Outbound Investment Rules - The Company and its Subsidiaries are not classified as "covered foreign persons" under the Outbound Investment Rules[13] - The Company has no current intention to engage in any "covered activity" or "covered transaction" as defined by the Outbound Investment Rules[13] Company Performance and Growth - Amedisys, Inc. reported a significant increase in revenue, achieving $500 million for the quarter, representing a 15% year-over-year growth[29] - The company reported a significant increase in revenue, achieving $1.2 billion for the quarter, representing a 15% year-over-year growth[1] - Amedisys provided an optimistic outlook, projecting a revenue growth of 12% to 15% for the next fiscal year[31] - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next quarter[1] User and Market Expansion - The company expanded its user base, serving over 40,000 patients, which is a 10% increase compared to the previous quarter[30] - User data showed a 20% increase in active users, reaching 2 million by the end of the quarter[1] - Market expansion efforts have led to the opening of 10 new locations across three states, increasing the company's footprint by 25%[1] - Amedisys plans to expand its market presence by entering three new states, aiming to increase its service locations by 25%[33] Investments and Acquisitions - The company is investing in new technology, with a budget of $20 million allocated for the development of telehealth services[32] - The company is investing $50 million in research and development for new technologies aimed at improving patient care[1] - Amedisys is actively pursuing acquisitions, targeting to acquire at least two home health agencies in the next quarter[34] - The company is exploring potential acquisitions to enhance service offerings, with a target of completing at least one acquisition by the end of the fiscal year[1] - A new strategic partnership was announced, expected to generate an additional $30 million in revenue over the next two years[1] Operational Efficiency and Quality - Amedisys reported an increase in operating margin to 18%, up from 16% in the previous year[35] - The company reported a 12% increase in operating margin, reflecting improved efficiency and cost management[1] - The company has launched a new patient management system, which is expected to improve operational efficiency by 20%[36] - Amedisys emphasized its commitment to quality care, achieving a patient satisfaction score of 92%, which is above the industry average[29] - Customer satisfaction ratings improved to 92%, up from 88% in the previous quarter, indicating enhanced service quality[1] - The company is focusing on strategic partnerships with local healthcare providers to enhance service delivery and patient outcomes[30]

Core Viewpoint - Amedisys (AMED) shares have increased by approximately 1.3% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - The most recent earnings report is crucial for understanding the catalysts affecting Amedisys [1] - Fresh estimates for Amedisys have remained flat over the past month, indicating a lack of significant changes in market expectations [2] Group 2: VGM Scores and Investment Strategy - Amedisys currently holds a Growth Score of A, but has a low Momentum Score of F, while receiving a B grade for value, placing it in the top 40% for this investment strategy [3] - The aggregate VGM Score for Amedisys is A, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - Amedisys has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

Core Viewpoint - Amedisys is positioned for growth due to its improving clinical quality and strategic partnerships, although macroeconomic challenges and competitive pressures may limit its potential [1][6]. Group 1: Clinical Quality and Patient Satisfaction - Amedisys has achieved high Quality of Patient Care and Patient Satisfaction star ratings, with an average Quality of Patient Care star rating of 4.18 and 88% of care centers rated 4 stars or higher [3][4]. - The company's Patient Satisfaction star average is 4.02, which exceeds the industry average [3]. Group 2: Strategic Initiatives - Amedisys is expanding its business through acquisitions and partnerships, including Contessa Health's participation in a new Medicare alternative payment model aimed at dementia care [4][5]. - The introduction of advanced molecular testing in collaboration with Patient Choice Laboratories is part of Amedisys' strategy to enhance its service offerings [5]. Group 3: Financial Performance and Market Position - Amedisys has a market capitalization of $3.03 billion and an earnings yield of 5.2%, which is higher than the industry's 4.4% [2]. - The Zacks Consensus Estimate for 2025 earnings per share is $4.45, with revenues projected at $2.46 billion, reflecting a 5% increase from the previous year [11]. Group 4: Market Challenges - The company faces macroeconomic pressures, including rising costs of services, which increased by 7.2%, leading to a gross margin contraction of 131 basis points in Q4 2024 [6][7]. - Amedisys operates in a fragmented market with significant competition from local providers and non-profit organizations, which may impact its growth [8][10].

Core Viewpoint - Amedisys, Inc. reported lower-than-expected earnings and revenues for the fourth quarter of 2024, with both metrics missing consensus estimates, despite some growth in service revenues and adjusted earnings per share [10][11]. Financial Performance - Adjusted EPS for Q4 2024 was 96 cents, a 2.1% increase year over year, but missed the Zacks Consensus Estimate by 8.6% [1][2]. - Full-year 2024 adjusted EPS was $4.32, up 0.5% year over year [2]. - Net service revenues for Q4 totaled $598.0 million, a 4.8% increase year over year, but slightly missed the Zacks Consensus Estimate by 0.02% [3]. - Full-year 2024 net service revenues reached $2.35 billion, up 4.9% year over year [3]. Segment Performance - Home Health division revenues were $377.0 million, up 5% year over year, with Medicare revenues decreasing by 3.9% to $212.4 million, while non-Medicare revenues increased by 19.4% to $164.6 million [4]. - Hospice division revenues were $212.9 million, a 3.3% increase year over year, with Medicare revenues up 4.2% to $202.4 million, and non-Medicare revenues down 11% to $10.5 million [4]. - High Acuity Care segment reported revenues of $8.1 million, compared to $5.9 million in the previous year [5]. Margins and Expenses - Gross profit increased by 1.6% to $253.4 million, but gross margin fell by 131 basis points to 42.4% due to a 7.2% rise in service costs [6]. - SG&A expenses rose by 1.9% to $137.6 million, while other expenses increased by 1.0% to $58 million [6]. - Adjusted operating profit was $57.8 million, up 1.7% year over year, but adjusted operating margin contracted by 29 basis points to 9.7% [6]. Liquidity and Cash Position - Amedisys ended 2024 with cash and cash equivalents of $303.2 million, up from $126.4 million at the end of 2023 [7]. - Long-term obligations totaled $339.3 million at the end of 2024, down from $361.9 million at the end of 2023 [7]. - Cumulative net cash from operating activities was $221.7 million, compared to $137.2 million a year ago [7]. Merger Developments - Amedisys is in the process of merging with UnitedHealth Group's Optum, which aims to enhance value-based care [8]. - A purchase agreement was signed for the sale of certain home health care centers to VCG Luna, LLC, contingent on the successful closing of the merger [9].

Company Overview - Amedisys operates three segments: home health, hospice, and high acuity care, with approximately 19,000 employees across 519 care centers in 38 states[18]. - The home health segment includes 347 care centers and performed over 10.7 million visits for more than 499,000 patients annually[18][22]. - The high acuity care segment was established through the acquisition of Contessa Health on August 1, 2021, enhancing Amedisys's capabilities in delivering inpatient-level care at home[28]. - The company divested its personal care business on March 31, 2023, streamlining its focus on core healthcare services[31]. - Amedisys has approximately $1.2 billion in goodwill as of December 31, 2024, with additional acquisitions likely to increase this amount[186]. - The company employs around 19,000 employees across various segments, including 11,800 in home health and 6,100 in hospice[183]. Financial Performance - Medicare accounts for approximately 70% to 74% of Amedisys's net service revenue over the last three years, highlighting the company's reliance on government payors[19]. - Medicare accounted for 70%, 73%, and 74% of the company's consolidated net service revenue during 2024, 2023, and 2022, respectively[137]. - The 2025 Home Health Final Rule is expected to result in a 0.5% increase in payments to home health providers, driven by a 2.7% payment update offset by adjustments totaling -2.2%[47]. - CMS estimates a 2.9% increase in hospice payments for fiscal year 2025, with the aggregate cap amount raised to $34,465[52]. - The total temporary adjustment calculated for CY 2020 through CY 2023 is $4.5 billion, with future proposals to convert this amount into a factor applied to base payment rates[47]. - The company anticipates financial benefits from acquisitions, contingent on improving clinical performance and controlling costs[197]. Regulatory Compliance - Compliance with Medicare requirements is monitored through established processes and controls over coding, billing, and patient recertifications[62]. - The company is subject to various audits and compliance reviews by Medicare, which can result in claim adjustments or overpayment determinations[48]. - Compliance with Medicare regulations is essential for participation in the Medicare program, which includes conditions of participation and payment standards[72]. - The company is subject to various federal and state anti-fraud and abuse laws, including the federal Anti-Kickback Statute and the Stark Law, which impose significant penalties for violations[78][81]. - The company must comply with HIPAA regulations, which impose standards for the use and disclosure of health information, with penalties for violations ranging from $141 to a maximum of $2.134 million[93]. - The Improving Medicare Post-Acute Care Transformation Act (IMPACT Act) requires standardized patient assessment data reporting, with penalties for non-compliance resulting in a 2% reduction in market basket prices[98]. Merger and Acquisition Activities - Amedisys entered into a merger agreement with UnitedHealth Group on June 26, 2023, which will result in Amedisys becoming a wholly owned subsidiary[34]. - The proposed Merger with UnitedHealth Group is subject to various closing conditions, including government approvals, which may not be satisfied by the end of the Waiver Period[122]. - Amedisys has incurred significant costs related to the Merger, including potential termination fees of $125 million under certain circumstances[128]. - The ongoing DOJ Action against the Merger creates uncertainty regarding its completion timeline and conditions[124]. - If the Merger is not completed, Amedisys will remain a public company and continue to face risks that could adversely affect its business and stock price[127]. - The Merger Agreement includes restrictions on Amedisys's business activities, potentially limiting strategic opportunities during the pending period[128]. Quality of Care - Amedisys's Quality of Patient Care star average is 4.18, with 88% of care centers rated at 4+ stars, indicating a strong commitment to clinical quality[24]. - Amedisys's hospice outreach strategy has increased its patient population to better reflect community health needs, focusing on conditions like heart disease and dementia[27]. - Quality patient care is crucial for generating referrals; failure to meet quality metrics could adversely impact the company's business[161]. - The company must maintain relationships with existing patient referral sources, as their loss could materially affect financial performance[164]. Operational Risks - The company faces competition from local, publicly-owned, and hospital-owned health care providers, competing primarily on service quality and personnel availability[113]. - A shortage of qualified clinicians could increase operating costs and adversely affect the company's ability to attract and retain personnel[158]. - Cybersecurity threats pose significant risks to the company's operations, and a breach could lead to substantial costs and reputational harm[171]. - The company relies on third-party vendors for critical information systems, and any security incidents involving these vendors could disrupt operations and impact financial performance[176]. - A recent cyber-attack on a subsidiary resulted in an estimated increase of approximately $60 million in accounts receivable due to delays in submitting non-Medicare claims[176]. Economic and Market Conditions - The ongoing inflationary environment has led to increased labor and healthcare costs, impacting the company's financial condition[189]. - Economic downturns and federal budget pressures may result in reduced payments and covered services under Medicare and Medicaid programs, adversely affecting the company's financial condition[154]. - The company is exposed to geopolitical tensions, such as the Russia-Ukraine conflict, which may disrupt global supply chains and financial markets[188]. Future Outlook - Future changes in Medicare reimbursement policies could materially affect the company's financial condition and results of operations[139]. - The home health and hospice industry is highly competitive, with few barriers to entry, which may limit the company's market share[165]. - The success of the high acuity care segment depends on entering into risk-based contracts with managed care health plans; failure to do so could adversely affect financial results[169]. - The implementation of value-based purchasing could lead to adjustments in Medicare payments based on performance against quality measures, potentially impacting revenue[153].

分组1 - Amedisys reported quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $1.05 per share, representing an earnings surprise of -8.57% [1] - The company posted revenues of $598.05 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.02%, compared to year-ago revenues of $570.79 million [2] - Over the last four quarters, Amedisys has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.12 on revenues of $599.13 million, and for the current fiscal year, it is $4.84 on revenues of $2.47 billion [7] - The Zacks Industry Rank for Medical - Outpatient and Home Healthcare is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Amedisys shares have added about 0.8% since the beginning of the year, underperforming the S&P 500's gain of 1.3% [3]

Financial Performance - Net service revenue increased by $27.3 million to $598.1 million in Q4 2024 compared to $570.8 million in Q4 2023[4] - For the full year 2024, net service revenue increased by $111.9 million to $2,348.3 million compared to $2,236.4 million in 2023[4] - Full year net income attributable to Amedisys, Inc. was $43.2 million, despite merger-related expenses totaling $66.6 million and a non-cash impairment charge of $48.4 million, compared to a net loss of $9.7 million in 2023[4] - Adjusted net income attributable to Amedisys, Inc. for the full year was $142.7 million, slightly up from $140.6 million in 2023[4] - The diluted earnings per share for Q4 2024 was a loss of $0.62, compared to earnings of $0.59 per share in Q4 2023[4] - The diluted EPS for the year ended December 31, 2024 was $3.01, compared to $4.60 for the year ended December 31, 2023[35] Operational Metrics - The company has approximately 19,000 employees and serves over 499,000 patients annually across 519 care centers[6] - Total assets increased to $2,138.7 million in 2024 from $2,060.2 million in 2023, representing a growth of 3.8%[15] - Total current assets rose to $632.1 million in 2024, a 27.2% increase from $496.9 million in 2023[15] - Total liabilities increased slightly to $958.7 million in 2024 from $940.4 million in 2023, a growth of 1.5%[15] - Cash, cash equivalents, and restricted cash at the end of the period reached $303.2 million, up from $138.9 million in 2023[16] - Days revenue outstanding improved to 43.0 days in 2024 from 47.7 days in 2023, reflecting better collection efficiency[17] Revenue Breakdown - Medicare revenue for the Home Health segment decreased by 4% to $212.4 million in Q4 2024, while Non-Medicare revenue increased by 19% to $164.6 million[20] - Medicare net service revenue for the year ended December 31, 2024, was $856.4 million, a decrease of 2% from $874.2 million in 2023[21] - Non-Medicare net service revenue increased by 19.7% to $634.1 million in 2024, compared to $529.4 million in 2023[21] - Hospice Medicare revenue for the year increased by 3.9% to $783.9 million, compared to $754.0 million in 2023[24] - Average Medicare revenue per completed episode increased to $3,030 in Q4 2024 from $2,997 in Q4 2023[20] - Total admissions rose by 11% to 441,945 in 2024, up from 399,752 in 2023[21] Expenses and Losses - Net loss attributable to Amedisys, Inc. was $20.4 million in Q4 2024, including merger-related expenses of $17.4 million and a non-cash goodwill impairment charge of $48.4 million, compared to a net income of $19.3 million in Q4 2023[4] - General and administrative expenses for the year increased to $264.8 million in 2024, up from $237.5 million in 2023[29] - High acuity care segment reported a total operating loss of $68.5 million for the year ended December 31, 2024, compared to a loss of $25.6 million in 2023[27] - Adjusted EBITDA for Q4 2024 was $54.6 million, down from $56.7 million in Q4 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was $245.8 million, slightly down from $247.0 million in 2023[31] - Merger-related expenses for the year ended December 31, 2024 totaled $66,638,000, an increase from $36,672,000 in the previous year[35] Mergers and Acquisitions - Amedisys will not conduct a quarterly earnings call due to the pending merger with UnitedHealth Group Incorporated[4] - The merger with UnitedHealth Group is expected to impact various operational aspects, including patient and provider relationships[9] - The company completed the sale of its personal care business on March 31, 2023, impacting revenue streams[28] Impairments and Adjustments - The company recorded an impairment expense of $48,391,000 for both the three-month and year ended December 31, 2024[35] - For the three-month period ended December 31, 2024, total certain items impacting net loss amounted to $57,802,000, with a net of tax impact of $52,337,000[35] - The total certain items impacting net loss for the year ended December 31, 2023 was $154,344,000, with a net of tax impact of $150,384,000[35] - The adjusted net income attributable to Amedisys, Inc. is calculated excluding certain items as defined in the financial notes[36] - Adjusted EBITDA is defined as net (loss) income before net interest expense, provision for income taxes, and depreciation and amortization, excluding certain items[36]