Group 1 - The article emphasizes a technical focus on fundamental value drivers of business economics to identify high probability long-term investment opportunities [1] - The company aims to buy securities at prices that are appropriate relative to their intrinsic worth, indicating a value investing strategy [1] - Research covers a wide range of financial markets, including investment securities and futures & options markets, catering to various market participants [1] Group 2 - The analyst discloses no current stock or derivative positions in the companies mentioned, ensuring an unbiased perspective [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the importance of individual due diligence [3]

Company Overview - Amedisys Inc. provides home health and hospice services across the U.S., catering to the growing chronic, co-morbid, and aging population [13] - The company offers clinically focused programs for chronic conditions such as diabetes and coronary artery disease, along with various rehabilitative programs [13] Zacks Rank and Style Scores - Amedisys holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a strong overall rating [14] - The Value Style Score for Amedisys is B, supported by attractive valuation metrics, including a forward P/E ratio of 19.74 [14] - Recent upward revisions in earnings estimates by three analysts have increased the Zacks Consensus Estimate by $0.09 to $5.00 per share for fiscal 2025 [14] Investment Potential - Amedisys is highlighted as a stock to watch due to its solid Zacks Rank and top-tier Value and VGM Style Scores, making it a candidate for investors' short lists [15]

Core Insights - Amedisys reported strong quarterly earnings, exceeding market expectations for both revenue and adjusted profitability despite merger-related costs impacting GAAP results [1][5] - GAAP revenue reached $621.9 million, surpassing the consensus estimate of $611.99 million, while Non-GAAP EPS was $1.54, exceeding the forecast of $1.36 [1][2] Financial Performance - GAAP revenue grew by 5.2% year-over-year from $591.2 million in Q2 2024 [2][5] - Adjusted EBITDA increased by 10.4% compared to Q2 2024, indicating improved operational efficiency [2][5] - Non-GAAP net income rose to $51.4 million from $43.5 million in Q2 2024, reflecting strong core operations [5] - GAAP net income fell to $28.1 million, a decrease of 13% from $32.3 million in Q2 2024, primarily due to $26.3 million in merger-related expenses [2][6] Operational Highlights - Amedisys operates a national network of 519 care centers, serving nearly half a million patients annually across 38 states and Washington, D.C. [3] - The company focuses on regulatory compliance, high-quality clinical care, and strategic partnerships, with approximately 70-74% of revenue derived from Medicare [4] - The average home health quality rating is 4.18 out of 5 stars, indicating a commitment to clinical excellence [4] Cash Flow and Collections - The "days revenue outstanding" metric improved significantly, dropping to 40.9 days from 52.1 days in Q2 2024, indicating faster payment collections [7] - Cash from operations increased to $67.2 million compared to $52.3 million in Q2 2024, with ending cash and equivalents at $337.3 million as of June 30, 2025 [7] Future Outlook - Company leadership did not provide forward financial guidance for the upcoming quarter or fiscal 2025 due to the pending merger with UnitedHealth Group [9] - Significant regulatory and completion risks associated with the merger were highlighted, impacting future growth prospects [9][10]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%3A) The unaudited condensed consolidated financial statements present the company's financial position, results of operations, and cash flows for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to $2.22 billion as of June 30, 2025, driven by increased cash and equity, while total liabilities slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $662,198 | $632,083 | | **Total Assets** | **$2,215,385** | **$2,138,714** | | **Total Current Liabilities** | $488,361 | $514,392 | | **Total Liabilities** | **$940,482** | **$958,749** | | **Total Equity** | **$1,274,903** | **$1,179,965** | [Condensed Consolidated Income Statements](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20INCOME%20STATEMENTS) Net income for H1 2025 surged due to a significant gain on an equity investment, despite higher merger-related expenses impacting Q2 2025 results Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Service Revenue** | $621,861 | $591,187 | $1,216,642 | $1,162,601 | | **Operating Income** | $45,578 | $52,214 | $88,937 | $83,833 | | **Merger-related expenses** | $26,277 | $11,901 | $43,046 | $32,568 | | **Net Income Attributable to Amedisys** | $28,084 | $32,301 | $89,096 | $46,701 | | **Diluted EPS** | $0.84 | $0.98 | $2.68 | $1.42 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities increased to $63.5 million for H1 2025, driven by higher net income and favorable changes in working capital Cash Flow Summary for the Six-Month Periods Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $63,524 | $45,764 | | **Net cash used in investing activities** | ($2,295) | ($4,639) | | **Net cash used in financing activities** | ($27,167) | ($22,630) | | **Net increase in cash** | $34,062 | $18,495 | | **Cash at end of period** | $337,304 | $157,358 | [Notes to Financial Statements](index=11&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes provide critical context on Medicare reliance, the pending UnitedHealth Group merger, a significant equity investment gain, and other contingencies - The company derives approximately **68% of its consolidated net service revenue from Medicare** for the six-month period ended June 30, 2025[19](index=19&type=chunk) - Amedisys is in a pending merger with UnitedHealth Group, which is being challenged by a DOJ lawsuit, with a trial tentatively set for October 2025[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - In Q1 2025, the company recognized a **$48.1 million gain** from a transaction involving its equity method investment, Medalogix[68](index=68&type=chunk) Net Service Revenue by Segment (Six Months Ended June 30, 2025) | Segment | Net Service Revenue (in millions) | % of Total | | :--- | :--- | :--- | | Home Health | $775.5 | 63.7% | | Hospice | $421.1 | 34.6% | | High Acuity Care | $20.0 | 1.6% | | **Total** | **$1,216.6** | **100.0%** | [Management's Discussion and Analysis (MD&A)](index=27&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses revenue growth driven by volume and rates, the pending UnitedHealth merger, proposed CMS rule changes, and the company's sufficient liquidity - Excluding merger-related expenses, **consolidated operating income for H1 2025 increased by $15 million** year-over-year, driven by rate increases and volume growth, but partially offset by wage increases and a shift in home health payor mix[153](index=153&type=chunk) - CMS has proposed a **6.4% decrease in payments to home health providers for CY 2026**, which the company is actively lobbying against[131](index=131&type=chunk) - The company's liquidity position is strong, with **$337.3 million in cash** and cash equivalents and **$508.0 million in availability** under its Revolving Credit Facility as of June 30, 2025[182](index=182&type=chunk) - **Days revenue outstanding (DRO) improved to 40.9 days** at June 30, 2025, a significant decrease from 52.1 days at June 30, 2024, which was impacted by the Change Healthcare outage[183](index=183&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated net service revenue for H1 2025 grew 4.6% to $1.22 billion, with growth across all segments driven by increased volume and favorable rates Segment Operating Income (Loss) for Six-Month Periods (in millions) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Home Health | $129.6 | $127.9 | | Hospice | $103.4 | $96.8 | | High Acuity Care | ($7.2) | ($9.0) | - **Home Health same-store total volume grew 6%** in H1 2025, while average Medicare revenue per completed episode increased to $3,034 from $3,017[158](index=158&type=chunk)[161](index=161&type=chunk) - **Hospice same-store average daily census grew 1%** in H1 2025, and revenue per day increased to $179.73 from $172.96 year-over-year[164](index=164&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow improved to $63.5 million in H1 2025, reflecting recovery from the prior year's Change Healthcare cybersecurity incident - The Change Healthcare cybersecurity incident in early 2024 delayed non-Medicare claim submissions, **reducing operating cash flow in that period**[180](index=180&type=chunk) - On April 17, 2025, the company entered into the Fourth Amendment to its Credit Agreement, **extending the maturity date to July 30, 2027**[187](index=187&type=chunk) Patient Accounts Receivable Aging at June 30, 2025 (in millions) | Payor | 0-90 Days | 91-180 Days | 181-365 Days | Total | | :--- | :--- | :--- | :--- | :--- | | Medicare | $174.6 | $6.8 | $0.9 | $182.3 | | Other | $101.3 | $9.8 | $2.1 | $113.2 | | **Total** | **$275.9** | **$16.6** | **$3.0** | **$295.5** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=ITEM%203%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate fluctuation on its $338.1 million of variable-rate debt - A hypothetical **1.0% increase in interest rates** would cause the company's annual interest expense to increase by approximately **$3.4 million**, assuming no principal repayments[193](index=193&type=chunk) [Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2025, the principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** at a reasonable assurance level[196](index=196&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter ended June 30, 2025, that have materially impacted, or are reasonably likely to materially impact, internal controls[197](index=197&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section cross-references notes detailing the pending DOJ merger litigation and other routine legal actions - For information on legal proceedings, the report refers to **Note 4 (Mergers and Acquisitions)** and **Note 7 (Commitments and Contingencies)**[200](index=200&type=chunk) [Risk Factors](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to the risk factors disclosed in its 2024 Annual Report on Form 10-K - The company directs stakeholders to the Risk Factors section of its 2024 Annual Report on Form 10-K, indicating **no new material risks have been identified** in the current quarter[201](index=201&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company acquired 32,857 shares in Q2 2025 from employees to satisfy tax obligations on vested stock awards Common Stock Purchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 593 | $92.84 | | May 2025 | 21,850 | $96.00 | | June 2025 | 10,414 | $94.95 | | **Total** | **32,857** | **$95.61** | [Other Information](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The Chief Accounting Officer adopted a Rule 10b5-1 trading plan for the potential sale of up to 4,774 shares - Chief Accounting Officer Allyson Guidroz adopted a **10b5-1 trading plan** for the sale of up to 4,774 shares, with the first possible trade on August 18, 2025[205](index=205&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) This section lists all filed exhibits, including the amended credit agreement and required CEO/CFO certifications - Key exhibits filed include the **Fourth Amendment to the Amended and Restated Credit Agreement**, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[207](index=207&type=chunk)

Group 1 - Amedisys reported $621.86 million in revenue for the quarter ended June 2025, a year-over-year increase of 5.2% [1] - The EPS for the same period was $1.54, compared to $1.32 a year ago, representing a surprise of +10.79% over the consensus estimate of $1.39 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $609.65 million by +2% [1] Group 2 - Key metrics for Amedisys include Net Service Revenue for High Acuity Care at $10.7 million, a +9.2% change year-over-year [4] - Net Service Revenue for Hospice was reported at $215 million, reflecting a +5.4% year-over-year change [4] - Net Service Revenue for Home Health was $396.2 million, representing a +5% increase compared to the previous year [4] Group 3 - Amedisys shares have returned -1.5% over the past month, underperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Company Performance - Amedisys reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.39 per share, and up from $1.32 per share a year ago, representing an earnings surprise of +10.79% [1] - The company posted revenues of $621.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.00%, compared to year-ago revenues of $591.19 million [2] - Over the last four quarters, Amedisys has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Outlook - Amedisys shares have increased approximately 6.7% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $614.59 million, and for the current fiscal year, it is $4.90 on revenues of $2.45 billion [7] - The estimate revisions trend for Amedisys was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Amedisys belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Amedisys reported mixed Q2 2025 financial results with increased revenue but decreased GAAP net income, while year-to-date performance showed overall growth, and no earnings call will be held due to the pending merger [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Amedisys reported an increase in net service revenue for Q2 2025, but GAAP net income and diluted EPS decreased due to higher merger-related expenses. Conversely, adjusted EBITDA and adjusted net income per diluted share showed growth | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Net service revenue | $621.9 million | $591.2 million | +$30.7 million | | Net income attributable to Amedisys, Inc. | $28.1 million | $32.3 million | -$4.2 million | | Net income attributable to Amedisys, Inc. per diluted share | $0.84 | $0.98 | -$0.14 | | Adjusted EBITDA | $80.8 million | $73.2 million | +$7.6 million | | Adjusted net income attributable to Amedisys, Inc. | $51.4 million | $43.5 million | +$7.9 million | | Adjusted net income attributable to Amedisys, Inc. per diluted share | $1.54 | $1.32 | +$0.22 | - Net income for Q2 2025 was inclusive of merger-related expenses totaling **$26.3 million** (**$26.1 million**, net of tax), compared to **$11.9 million** (**$11.5 million**, net of tax) in Q2 2024[4](index=4&type=chunk) [Year-to-Date 2025 Financial Highlights](index=1&type=section&id=YTD%202025%20Financial%20Highlights) For the first six months of 2025, Amedisys experienced growth across net service revenue, GAAP net income, and adjusted non-GAAP metrics, significantly boosted by a gain on an equity method investment | Metric | YTD 2025 | YTD 2024 | Change | | :------------------------------------------ | :--------- | :--------- | :----- | | Net service revenue | $1,216.6 million | $1,162.6 million | +$54.0 million | | Net income attributable to Amedisys, Inc. | $89.1 million | $46.7 million | +$42.4 million | | Net income attributable to Amedisys, Inc. per diluted share | $2.68 | $1.42 | +$1.26 | | Adjusted EBITDA | $149.6 million | $133.0 million | +$16.6 million | | Adjusted net income attributable to Amedisys, Inc. | $93.0 million | $77.5 million | +$15.5 million | | Adjusted net income attributable to Amedisys, Inc. per diluted share | $2.80 | $2.35 | +$0.45 | - Net income for YTD 2025 included merger-related expenses totaling **$43.0 million** (**$42.7 million**, net of tax) and a **$48.1 million** gain on an equity method investment (**$35.6 million**, net of tax)[4](index=4&type=chunk) [Merger Update and Earnings Call Status](index=1&type=section&id=Merger%20Update%20and%20Earnings%20Call%20Status) Amedisys will not conduct a quarterly earnings call for the second quarter 2025 results due to its pending merger with UnitedHealth Group Incorporated. Supplemental slides are available on the company's investor relations website - Amedisys will not conduct a quarterly earnings call to discuss second quarter results due to the pending merger with UnitedHealth Group Incorporated[3](index=3&type=chunk) - Supplemental slides related to the second quarter 2025 earnings release are available on the Investor Relations page of the company's website[3](index=3&type=chunk) [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) This section details Amedisys's non-GAAP financial measures, provides a company overview, outlines forward-looking statement risks, and lists essential contact information [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Amedisys's non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and adjusted net income per diluted share, and explains their reconciliation to GAAP measures. Management uses these as useful gauges of performance, but they are not intended as alternatives to GAAP - Non-GAAP financial measures include **adjusted EBITDA**, **adjusted net income attributable to Amedisys, Inc.**, and **adjusted net income attributable to Amedisys, Inc. per diluted share**[5](index=5&type=chunk) - Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes, depreciation and amortization, excluding certain items[5](index=5&type=chunk) - These non-GAAP measures are considered useful gauges of current performance but should not be considered more meaningful than or as an alternative to GAAP financial measures[5](index=5&type=chunk) [Additional Information (Company Overview)](index=2&type=section&id=Additional%20Information) Amedisys, Inc. is a leading healthcare services company established in 1982, providing personalized home health, hospice, and high acuity care. It operates 519 care centers across 38 states and D.C., employing approximately 19,000 individuals and serving over 499,000 patients annually - Amedisys, Inc. is a leading healthcare services company delivering personalized home health, hospice, and high acuity care services in the home[6](index=6&type=chunk) - The company operates approximately **19,000 employees** in **519 care centers** within **38 states** and the District of Columbia[6](index=6&type=chunk) - Amedisys serves more than **499,000 patients** every year[6](index=6&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, outlining various risks and uncertainties that could materially affect actual results. Key risks include disruptions from the proposed merger with UnitedHealth Group, regulatory approvals, litigation, changes in Medicare payments, staffing shortages, and competition - Forward-looking statements are identified by specific words and expressions such as 'believes,' 'expects,' 'plans,' and 'anticipates,' as defined by the Private Securities Litigation Reform Act of 1995[9](index=9&type=chunk) - Risks and uncertainties include disruption from the proposed merger with UnitedHealth Group, delays or conditions in regulatory approvals, litigation related to the merger (including action by the Department of Justice), changes in Medicare payment levels, staffing shortages, and competition[9](index=9&type=chunk) - The company expressly disclaims any obligation to publicly release updates or changes to forward-looking statements, except as required by law[10](index=10&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Amedisys provides contact information for investor relations and media inquiries. Important company information, including press releases and investor presentations, is routinely posted on the Investor Relations subpage of their website - Important company information, including press releases, investor presentations, and financial information, is routinely posted on and accessible via the Investor Relations subpage of the company's website[7](index=7&type=chunk) | Contact Type | Name | Title | Phone | Email | | :----------- | :--- | :---- | :---- | :---- | | Investor | Nick Muscato | Chief Strategy Officer | (615) 928-5452 | IR@amedisys.com | | Media | Kendra Kimmons | VP, Marketing & Communications | (225) 299-3720 | kendra.kimmons@amedisys.com | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Amedisys's condensed consolidated income statements, balance sheets, and cash flow statements, highlighting revenue growth, asset increases, and improved operating cash flow [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) Amedisys reported increased net service revenue for both the three and six-month periods ended June 30, 2025. Operating income decreased in Q2 2025 but increased year-to-date, influenced by higher merger-related expenses and a significant gain on an equity method investment in the six-month period | Metric (in thousands) | 3-Month Period Ended June 30, 2025 | 3-Month Period Ended June 30, 2024 | 6-Month Period Ended June 30, 2025 | 6-Month Period Ended June 30, 2024 | | :------------------------------------ | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net service revenue | $621,861 | $591,187 | $1,216,642 | $1,162,601 | | Operating income | $45,578 | $52,214 | $88,937 | $83,833 | | Income before income taxes | $48,326 | $49,230 | $139,531 | $76,457 | | Net income attributable to Amedisys, Inc. | $28,084 | $32,301 | $89,096 | $46,701 | | Diluted earnings per common share | $0.84 | $0.98 | $2.68 | $1.42 | - Merger-related expenses increased to **$26,277K** for the three-month period and **$43,046K** for the six-month period in 2025, compared to **$11,901K** and **$32,568K** respectively in 2024[13](index=13&type=chunk) - A significant gain on equity method investment of **$48,093K** was recorded in the six-month period ended June 30, 2025[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Amedisys's total assets increased, primarily driven by higher cash and cash equivalents and other assets. Total liabilities slightly decreased, contributing to an overall increase in total equity compared to December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total assets | $2,215,385 | $2,138,714 | +$76,671 | | Cash and cash equivalents | $337,304 | $303,242 | +$34,062 | | Total liabilities | $940,482 | $958,749 | -$18,267 | | Total equity | $1,274,903 | $1,179,965 | +$94,938 | - Current assets increased to **$662,198K** from **$632,083K**, while current liabilities decreased to **$488,361K** from **$514,392K**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows and Days Revenue Outstanding](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20and%20Days%20Revenue%20Outstanding) Net cash provided by operating activities increased for both the three and six-month periods ended June 30, 2025. Investing and financing activities continued to be net cash outflows. The company also reported a significant improvement in Days Revenue Outstanding | Cash Flow Activity (in thousands) | 3-Month Period Ended June 30, 2025 | 3-Month Period Ended June 30, 2024 | 6-Month Period Ended June 30, 2025 | 6-Month Period Ended June 30, 2024 | | :-------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net cash provided by operating activities | $67,211 | $52,305 | $63,524 | $45,764 | | Net cash used in investing activities | $(921) | $(1,571) | $(2,295) | $(4,639) | | Net cash used in financing activities | $(13,867) | $(14,080) | $(27,167) | $(22,630) | | Net increase in cash, cash equivalents and restricted cash | $52,423 | $36,654 | $34,062 | $18,495 | - Days revenue outstanding improved to **40.9 days** at June 30, 2025, from **52.1 days** at June 30, 2024[18](index=18&type=chunk) - A gain on equity method investment of **$48,093K** was a non-cash adjustment reconciling net income to operating cash flow for the six-month period[17](index=17&type=chunk) [Reconciliation of Non-GAAP Financial Measures to GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20to%20GAAP%20Measures) This section reconciles non-GAAP financial measures like adjusted EBITDA and adjusted net income to their GAAP equivalents, detailing the impact of specific excluded items [Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") Reconciliation](index=8&type=section&id=Adjusted%20Earnings%20Before%20Interest%2C%20Taxes%2C%20Depreciation%20and%20Amortization%20%28%22Adjusted%20EBITDA%22%29%20Reconciliation) Adjusted EBITDA increased for both the three and six-month periods ended June 30, 2025, compared to the prior year, after adding back income tax, interest, depreciation, amortization, and adjusting for certain items | Metric (in thousands) | 3-Month Period Ended June 30, 2025 | 3-Month Period Ended June 30, 2024 | 6-Month Period Ended June 30, 2025 | 6-Month Period Ended June 30, 2024 | | :-------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net income attributable to Amedisys, Inc. | $28,084 | $32,301 | $89,096 | $46,701 | | Adjusted EBITDA | $80,796 | $73,160 | $149,625 | $133,019 | - Adjusted EBITDA is calculated by adding back income tax expense, net interest expense, depreciation and amortization, and certain items to net income attributable to Amedisys, Inc.[19](index=19&type=chunk)[22](index=22&type=chunk) [Adjusted Net Income Attributable to Amedisys, Inc Reconciliation](index=8&type=section&id=Adjusted%20Net%20Income%20Attributable%20to%20Amedisys%2C%20Inc%20Reconciliation) Adjusted net income attributable to Amedisys, Inc. showed an increase for both the three and six-month periods ended June 30, 2025, after excluding the impact of certain items from GAAP net income | Metric (in thousands) | 3-Month Period Ended June 30, 2025 | 3-Month Period Ended June 30, 2024 | 6-Month Period Ended June 30, 2025 | 6-Month Period Ended June 30, 2024 | | :------------------------------------ | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net income attributable to Amedisys, Inc. | $28,084 | $32,301 | $89,096 | $46,701 | | Adjusted net income attributable to Amedisys, Inc. | $51,369 | $43,541 | $92,951 | $77,489 | - Adjusted net income attributable to Amedisys, Inc. is defined as GAAP net income attributable to Amedisys, Inc. excluding certain items[23](index=23&type=chunk) [Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation](index=8&type=section&id=Adjusted%20Net%20Income%20Attributable%20to%20Amedisys%2C%20Inc.%20per%20Diluted%20Share%20Reconciliation) Adjusted net income per diluted share increased for both the three and six-month periods ended June 30, 2025, reflecting the exclusion of the per-share effect of certain items from GAAP diluted EPS | Metric | 3-Month Period Ended June 30, 2025 | 3-Month Period Ended June 30, 2024 | 6-Month Period Ended June 30, 2025 | 6-Month Period Ended June 30, 2024 | | :---------------------------------------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net income attributable to Amedisys, Inc. common stockholders per diluted share | $0.84 | $0.98 | $2.68 | $1.42 | | Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share | $1.54 | $1.32 | $2.80 | $2.35 | - This adjusted metric excludes the earnings per share effect of certain items as detailed in footnote 1[23](index=23&type=chunk) [Details of Certain Items](index=9&type=section&id=Details%20of%20Certain%20Items) The 'certain items' excluded from non-GAAP financial measures primarily consist of merger-related expenses and impairment charges impacting general and administrative expenses, and other income/expense, notably a significant gain on an equity method investment in the six-month period of 2025 | Certain Items (in thousands) | 3-Month Period Ended June 30, 2025 (Income) Expense | 6-Month Period Ended June 30, 2025 (Income) Expense | | :------------------------------------------------------------------------------------------------ | :-------------------------------------------------- | :-------------------------------------------------- | | Merger-related expenses | $26,277 | $43,046 | | Impairment | $883 | $883 | | Other (income) expense, net (includes $48,093 gain on equity method investment during 6-month period) | $(3,822) | $(52,494) | | Total | $23,338 | $(8,565) | | Net of tax | $23,285 | $3,855 | | Diluted EPS | $0.70 | $0.12 | | Certain Items (in thousands) | 3-Month Period Ended June 30, 2024 (Income) Expense | 6-Month Period Ended June 30, 2024 (Income) Expense | | :------------------------------------------------------------------------------------------------ | :-------------------------------------------------- | :-------------------------------------------------- | | Merger-related expenses | $11,901 | $32,568 | | Other (income) expense, net | $(335) | $(706) | | Total | $11,566 | $31,862 | | Net of tax | $11,240 | $30,788 | | Diluted EPS | $0.34 | $0.93 |

Core Insights - Amedisys is expected to benefit from valuable partnerships and acquisitions that will generate significant synergies in the upcoming quarters, while facing challenges from a dull macroeconomic environment and competitive pressures [2][4][6] Company Performance - Amedisys shares have increased by 5.9% over the past year, outperforming the industry growth of 3.4% and the S&P 500's growth of 11% [3] - The company has a market capitalization of $3.18 billion and an earnings yield of 5.1%, which is higher than the industry's 4.2% [3] Strategic Initiatives - Amedisys is expanding its business through strategic partnerships and acquisitions, including participation in a new Medicare alternative payment model aimed at supporting dementia patients [4] - The company has introduced advanced molecular testing in collaboration with Patient Choice Laboratories to enhance diagnostic accuracy and speed [4] Clinical Quality - Amedisys has achieved an average Quality of Patient Care star rating of 4.18, with 88% of its care centers receiving 4 stars or higher, and 11 centers achieving a perfect 5-star rating [5][7] - The Patient Satisfaction star average stands at 4.02, exceeding the industry average [5] Market Challenges - The company faces macroeconomic pressures, including high labor costs due to inflation, which are expected to persist through 2025 [6] - Amedisys operates in a fragmented market with intense competition from local and hospital-owned providers, impacting its growth potential [8] Financial Estimates - The Zacks Consensus Estimate for Amedisys' 2025 earnings per share has decreased by 0.4% to $4.90, while the revenue estimate is projected at $2.46 billion, reflecting a 4.6% increase from the previous year [9]

Company Overview - Amedisys (AMED) is part of the Medical group, which consists of 997 companies and is currently ranked 5 within the Zacks Sector Rank [2] - Amedisys operates in the Medical - Outpatient and Home Healthcare industry, which includes 17 individual stocks and is ranked 73 in the Zacks Industry Rank [5] Performance Analysis - Year-to-date, Amedisys has returned 3.1%, outperforming the average loss of 6.8% in the Medical sector [4] - The Zacks Consensus Estimate for Amedisys's full-year earnings has increased by 1.5% over the past quarter, indicating improved analyst sentiment [3] - In comparison, BrightSpring Health Services, Inc. has returned 34.6% year-to-date and has a consensus EPS estimate increase of 23.8% over the past three months [4][5] Industry Context - The Medical - Outpatient and Home Healthcare industry has seen an average gain of 2.6% this year, with Amedisys performing better than this average [5] - The broader Medical Services industry, which includes BrightSpring Health Services, has declined by 5.5% this year and is ranked 65 [6]

Core Viewpoint - Amedisys, Inc. reported strong first-quarter 2025 earnings, with adjusted EPS of $1.25, a 21.4% increase year over year, surpassing estimates by 10.6% [1][13] Financial Performance - The company achieved net service revenues of $594.8 million, reflecting a 4.1% year-over-year increase, aligning with consensus estimates [3] - Gross profit rose 4.3% to $260.7 million, with a gross margin of 43.8%, an increase of 11 basis points despite a 3.9% rise in service costs [6] - Adjusted operating profit increased by 10.6% to $70.8 million, with an adjusted operating margin expanding by 70 basis points to 11.9% [7] Segment Performance - Home Health division revenues reached $372.1 million, up 5.8% year over year, with Medicare revenues decreasing by 2.7% to $212.1 million, while non-Medicare revenues increased by 19.7% to $160 million [4] - Hospice division revenues were $207.9 million, a 3.8% increase year over year, with Medicare revenues up 4.7% to $197.8 million, and non-Medicare revenues down 10.6% to $10.1 million [4] - High Acuity Care segment reported revenues of $7.7 million, compared to $4.4 million in the previous year [5] Cash Position and Liquidity - Amedisys ended Q1 2025 with cash and cash equivalents of $284.9 million, down from $303.2 million at the end of Q4 2024 [8] - Net cash provided by operating activities was $105.6 million, a significant increase from $9.8 million used in the same period last year [9] Merger Developments - The pending merger with UnitedHealth Group's Optum, announced in June 2023, aims to enhance value-based care [10] - Legal challenges have arisen, with the Department of Justice initiating litigation to block the merger, but Amedisys continues to support efforts to close the deal [12] Market Outlook - The company's performance in Q1 2025 indicates strong growth in both top and bottom lines, with positive trends in Home Health and Hospice segments [13] - Despite rising costs in services due to wage increases and inflation, margin expansion is viewed positively for future stock performance [14]