Amedisys(AMED)2022-02-25 02:43Financial Data and Key Metrics Changes - For Q4 2021, Amedisys reported net income of $1.04 per diluted share on revenue of $559 million, a 2% increase from the previous year [25] - For the full year 2021, adjusted revenue grew by $136 million or 7% to $2.2 billion, while EBITDA increased by $26 million or 10% to $300 million [25][26] - The EBITDA margin as a percentage of revenue increased by 40 basis points to 13.6% for the full year [25] Business Line Data and Key Metrics Changes Home Health - In Q4, Home Health total admissions and volume grew by 2%, while same-store total admissions for the year increased by 6% and total volume by 5% [15] - Revenue for Home Health was $337 million, up $8 million or 2% compared to the prior year, with revenue per episode increasing by $45 or 1.5% [27] Hospice - For Q4, Hospice same-store admissions were down 1% compared to a 15% increase in Q4 2020, while revenue was $205 million, up $1 million over the prior year [17][29] - The average daily census (ADC) for Hospice was down 4% for the quarter and year [17] Market Data and Key Metrics Changes - The percentage of elective procedures as part of total episodes increased from 7% in Q3 to nearly 8% in Q4, but dropped back to 6.5% as the Omicron variant surged [15] - The average length of stay for Hospice patients decreased to 90.3 days in Q4 from 94.5 days in Q3, impacting ADC growth [18] Company Strategy and Development Direction - Amedisys aims to differentiate itself beyond home health and hospice through acquisitions like Contessa, which focuses on hospital-at-home and SNF-at-home models [12][21] - The company is investing in innovative solutions such as Connect RN for nurse recruitment and engagement [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by COVID-19 and labor market pressures, emphasizing a focus on quality care and recruitment [10][20] - The company anticipates strong performance in 2022, driven by scaling existing markets and increasing partnerships [23] Other Important Information - Amedisys generated $189 million in cash flow from operations for the year, with a net leverage ratio of 1.3x at the end of Q4 [32] - The company announced guidance for 2022, projecting adjusted revenue of $2.33 billion to $2.365 billion and adjusted EBITDA of $275 million to $285 million [33] Q&A Session Summary Question: Confidence in guidance range and strategic approach as new CEO - Management expressed confidence in the guidance range, noting that they have accounted for various pressures and have plans in place to achieve and potentially exceed targets [42][44] Question: M&A pipeline and valuation outlook - The M&A pipeline is strong, with expectations for increased activity in the second half of the year as labor pressures may lead to more opportunities [46][48] Question: Contessa's revenue profile and staffing issues - Demand for Contessa's services has been higher than admits due to staffing challenges, with management optimistic about future growth [51][52] Question: Hospice guidance and trends - Management is confident in achieving the hospice growth targets, with improvements in business development staffing and productivity [56][58] Question: Labor and benefit assumptions for 2022 - Management outlined expectations for salary increases and benefits, noting that inflationary pressures are being managed through operational efficiencies [66][68] Question: Discussions with CMS regarding PDGM - Management is preparing for potential changes from CMS, emphasizing the need for a reasonable approach given the impact of COVID-19 on baseline data [70][74] Question: Nurse turnover and recruitment efforts - Management reported improvements in nurse turnover and emphasized ongoing initiatives to enhance workplace culture and retention [78][80]