Amedisys(AMED) - 2025 Q2 - Quarterly Results

Financial Performance Overview 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 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] Year-to-Date 2025 Financial Highlights 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] Merger Update and Earnings Call Status 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] - Supplemental slides related to the second quarter 2025 earnings release are available on the Investor Relations page of the company's website[3] Company Information & Disclosures 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 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] - 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] - 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] Additional Information (Company Overview) 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] - The company operates approximately 19,000 employees in 519 care centers within 38 states and the District of Columbia[6] - Amedisys serves more than 499,000 patients every year[6] Forward-Looking Statements 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] - 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] - The company expressly disclaims any obligation to publicly release updates or changes to forward-looking statements, except as required by law[10] Contact Information 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] | 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 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 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] - A significant gain on equity method investment of $48,093K was recorded in the six-month period ended June 30, 2025[13] Condensed Consolidated Balance Sheets 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] Condensed Consolidated Statements of Cash Flows and Days Revenue Outstanding 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] - 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] Reconciliation of Non-GAAP Financial Measures to GAAP Measures 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 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][22] Adjusted Net Income Attributable to Amedisys, Inc Reconciliation 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] Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation 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] Details of Certain Items 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 |