Amedisys(AMED) - 2023 Q3 - Quarterly Report

Financial Performance - Net service revenue for the three months ended September 30, 2023, was $556.2 million, a slight decrease of 0.3% compared to$ 558.0 million for the same period in 2022[21] - Operating income for the three months ended September 30, 2023, increased to $42.2 million, up 3.3% from$ 38.9 million in the same period last year[21] - Net income attributable to Amedisys, Inc. for the three months ended September 30, 2023, was $26.0 million, compared to$ 25.6 million for the same period in 2022, reflecting a growth of 1.4%[21] - Basic earnings per share for the three months ended September 30, 2023, was $0.80, compared to$ 0.79 for the same period in 2022, indicating a 1.3% increase[21] - Total operating expenses for the three months ended September 30, 2023, were $514.0 million, a decrease of 1.0% from$ 519.1 million in the same period last year[21] Expenses and Costs - The company incurred merger-related expenses of $5.0 million during the three months ended September 30, 2023[21] - Interest expense for the three months ended September 30, 2023, was$ 8.0 million, compared to $5.0 million for the same period in 2022, reflecting a 61.5% increase[21] - General and administrative expenses totaled$ 198.0 million, with home health at $91.4 million, hospice at$ 48.4 million, and high acuity care at $5.3 million[122] - The cost of service, including depreciation, amounted to$ 311.6 million, with home health at $201.6 million, hospice at$ 104.2 million, and high acuity care at $5.8 million[122] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2023, provided$ 76,877, compared to $92,400 for the same period in 2022[29] - The company reported a net cash increase of$ 39,883 for the nine months ended September 30, 2023[29] - The company made investments in technology assets totaling $6,881 during the nine months ended September 30, 2023[29] - The company has$ 550.0 million available under its Revolving Credit Facility, with $517.4 million available as of September 30, 2023[103] Revenue Sources - Approximately 73% of consolidated net service revenue for the three and nine-month periods ended September 30, 2023, was derived from Medicare, slightly down from 74% in the same periods of 2022[33] - For the three-month period ended September 30, 2023, Medicare revenue represented 39% of home health revenue, consistent with the same period in 2022[49] - Non-Medicare episodic-based revenue accounted for 7% of home health revenue for the three-month period ended September 30, 2023, unchanged from the same period in 2022[49] - Non-Medicare non-episodic-based revenue increased to 17% of home health revenue for the three-month period ended September 30, 2023, up from 13% in the same period of 2022[49] Mergers and Acquisitions - The company entered into a merger agreement with UnitedHealth Group on June 26, 2023, with Amedisys continuing as a wholly owned subsidiary[34] - Amedisys paid a termination fee of$ 106 million to Option Care Health, Inc. as part of the termination of a previous merger agreement, which was recorded as other income[82] - The company acquired regulatory assets of a home health provider for $0.4 million on January 20, 2023, recording$ 0.3 million in goodwill[84] - Goodwill recorded from the 2022 acquisition will be deductible for income tax purposes over approximately two to five years[87] Divestitures - The company divested its personal care business on March 31, 2023, which previously contributed to its revenue[33] - The company divested its personal care business for net proceeds of $47.8 million, recognizing a loss of$ 2.2 million during the three-month period ended March 31, 2023[93] Assets and Liabilities - The total balance as of September 30, 2023, was $1,093,518, with retained earnings of$ 728,603[26] - The total current assets decreased to $15.7 million as of September 30, 2023, from$ 22.3 million as of December 31, 2022, representing a decline of 29.66%[80] - Total assets decreased to $24.9 million as of September 30, 2023, compared to$ 31.6 million as of December 31, 2022, indicating a reduction of 21.43%[80] - Current liabilities increased to $8.1 million as of September 30, 2023, from$ 6.7 million as of December 31, 2022, marking a rise of 20.90%[80] Legal and Compliance - The company is involved in ongoing legal actions, but does not anticipate a material impact on its financial condition from these matters[108] - The company maintains various insurance programs but is self-insured for a substantial portion of potential claims, with exposure limits set for different types of insurance[115] Shareholder Information - The company repurchased 150,000 shares at a weighted average price of $115.64 per share, totaling approximately$ 17 million during the nine-month period ended September 30, 2022[128] - The 2023 Share Repurchase Program allows for up to $100 million in stock repurchases, with no shares repurchased as of September 30, 2023[128] - The company has not repurchased any shares under the 2023 Share Repurchase Program due to merger agreement limitations[128]