Amedisys First Quarter 2024 Earnings Release Supplemental Slides

April 24th, 2024

1

FORWARD-LOOKING STATEMENTS

This presentation may include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based

upon current expectations and assumptions about our business that are subject to a

variety of risks and uncertainties that could cause actual results to differ materially from those described in this presentation. You should not rely on forward-looking statements as a prediction of future events.

Additional information regarding factors that could cause actual results to differ materially

from those discussed in any forward-looking statements are described in reports and

registration statements we file with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, copies of which are available on the Amedisys internet website http://www.amedisys.comor by contacting the Amedisys Investor Relations department at (225) 292-2031.

We disclaim any obligation to update any forward-looking statements or any changes in

events, conditions or circumstances upon which any forward-looking statement may be

based except as required by law.

www.amedisys.com

NASDAQ: AMED

We encourage everyone to visit the Investors Section of our website at www.amedisys.com, where we have posted additional important information such as press releases, profiles concerning our business, clinical operations and control processes and SEC filings.

2

OUR KEY AREAS OF FOCUS

Strategic areas of focus and progress made during Q1'24

1

2

3

4

5

6

Organic

Recruiting /

Clinical

Growth

Retention

Initiatives

• Home Health:

• Targeting industry

• Quality: Amedisys

Total same store

leading employee

Jul'24 preview

admissions +10%

retention amongst

STARS score of 4.32

all employee

• Hospice: Total

categories

• 92% of care centers

same store ADC flat

at 4+ Stars based on

• Q1'24 Voluntary

Jul'24 preview

• High Acuity Care:

Turnover 17.7%

Admissions +23%

• 41 Amedisys care

centers rated at 5 Stars in the Jul'24 preview

• Hospice quality - outperforming industry average in all hospice item set (HIS) categories

Capacity and Productivity

  • Focusing on optimizing RN / LPN & PT / PTA staffing ratios.
    • Current LPN Ratio: 47.7% (vs.
      48.2% in 1Q'23)
    • Current PTA Ratio: 54.7% (vs.
      54.4% in 1Q'23)

M&A

  • Pending merger with UnitedHealth Group Inc.
  • Completed divestiture of Personal Care business Q1'23

Regulatory

2024 Reimbursement

  • Final Hospice industry rule - Amedisys estimated impact +3.1% increase (effective 10/1/23)
  • Final Home Health industry rule - Amedisys estimated impact +0.8% increase (effective 1/1/24)

2025 Reimbursement

  • Proposed Hospice industry rule - industry estimated impact +2.6% increase (effective 10/1/24)

3

HIGHLIGHTS AND SUMMARY FINANCIAL RESULTS (ADJUSTED): 1Q 2024(1)

Excluding the results from our personal care segment (sold March 31, 2023), EBITDA increased $4 million over prior year on a $30 million increase in revenue. Our results were impacted by rate increases, home health volume growth, improvements in clinician utilization and clinical optimization and reorganization initiatives. Our cash flows and accounts receivable were impacted by the Change Healthcare outage which resulted in delays in submitting claims resulting in an increase in DSO and a reduction in our cash flow from operations.

Amedisys Consolidated

  • Revenue: +5.5% (excluding Personal Care)
  • EBITDA: $60M
  • EBITDA Margin: 10.5%
  • EPS: $1.03

Adjusted Financial Results

$ in Millions, except EPS

1Q23

1Q24

Home Health

$

343.3

$

364.0

Hospice

193.4

201.0

Personal Care

15.0

-

High Acuity Care

4.7

6.4

Total Revenue

$

556.4

$

571.4

Gross Margin %

43.6%

44.1%

Adjusted EBITDA

$

57.8

$

59.9

10.4%

10.5%

Adjusted EPS

$

1.00

$

1.03

Free cash flow

(4)

$

19.7

$

(16.6)

Balance Sheet & Cash Flow

  • Net debt: $287.4M
  • Net Leverage ratio: 1.2x
  • Revolver availability: $514.2M
  • CFFO: $(6.5M)
  • Free cash flow (4): $(16.6M)
  • DSO: 54.1 (vs. Q4'23 of 47.7 and up 7.8 days over prior year)

Home Health

Same Store (2)(3) :

  • Total Admissions: +10%
  • Total Volume: +8%

Other Statistics:

  • Revenue per Episode: $2,998 (+0.8%)
  • Visiting Clinician Cost per Visit: $104.65 (+5.2%)

Hospice

Same Store Volume (3):

  • Admissions: -3%
  • ADC: Flat

Other Statistics:

  • Revenue per Day(5): $173.04 (+2.5%)
  • Cost per day: $90.16 (+2.3%)

Personal Care

  • Divested personal care segment on 3/31/2023

High Acuity Care

Growth Metrics:

  • Total Admissions: 761 (+23%)
  • Number of admitting JVs: 9

Other Statistics:

  • Patient Satisfaction: 85%
  1. The financial results for the three-month periods ended March 31, 2023 and March 31, 2024 are adjusted for certain items and should be considered a non-GAAP financial measure. A reconciliation of these non- GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
  2. Same Store volume - Includes admissions and recertifications.

3.

Same Store is defined as care centers that we have operated for at least the last 12 months and startups that are an expansion of a same store care center.

4

4.

Free cash flow is defined as cash flow from operations less routine capital expenditures and required debt repayments.

OUR REVENUE SOURCES: 1Q'24

Amedisys Consolidated Revenue

Home Health Revenue

Hospice Revenue

1.1%

5.5%

35.2%

28.8%

63.7%

59.3%

11.9%

94.5%

Home Health

Hospice High Acuity Care

Medicare FFS Private Episodic Per Visit & Case Rate

Medicare FFS

Private

• Home Health: 346 care centers; 34 states & D.C.

• Medicare FFS: Reimbursed for a 30-day

• Hospice: 165 care centers; 31 states

period of care

• Personal Care: We divested our personal care

• Private Episodic: MA and Commercial plans

business on March 31, 2023.

who reimburse us for a 30-day period of care or

• High Acuity Care: 9 admitting joint ventures; 9

60-day episode of care, majority of which range

states; 33 referring hospitals

from 90% - 100% of Medicare rates

• Total: 520 care centers/joint ventures; 37

• Per Visit & Case Rate: Managed care,

states and D.C.

Medicaid and private payors who reimburse us

per visit performed or per admission

Hospice Per Day Reimbursement:

  • Routine Care: Patient at home with symptoms controlled, ~97% of the Hospice care provided
  • Continuous Care: Patient at home with uncontrolled symptoms
  • Inpatient Care: Patient in facility with uncontrolled symptoms
  • Respite Care: Patient at facility with symptoms controlled

5

HOME HEALTH AND HOSPICE SEGMENT (ADJUSTED) - Q1 2024(1)

HOME HEALTH

$ in Millions

1Q23

1Q24

Medicare

$ 215.4

$ 215.8

Non-Medicare

127.9

148.2

Home Health Revenue

$343.3

$364.0

Gross Margin %

42.9%

42.6%

(2)

$58.8

$63.9

Pre-Corporate EBITDA

17 .1%

17 .6%

Operating Statistics

Same Store Growth

(3)(4)

Total admissions

8%

10%

Total volume

5%

8%

Medicare revenue per episode

$2,974

$2,998

Medicare recert rate

32.3%

31.7%

Total cost per visit

$110.45

$116.64

Home Health Highlights

  • Medicare revenue per episode up 0.8% primarily due to the rate increase effective 1/1/2024.
  • Y/Y Total CPV up $6.19 (+5.6%) primarily due to raises, wage inflation and an increase in new hire pay. A reduction in VPE on our episodic revenue partially offset the increase in cost per visit.
  • EBITDA margin increased 50 basis points.

HOSPICE

$ in Millions

1Q23

1Q24

Medicare

$ 182.7

$ 190.0

Non-Medicare

10.7

11.0

Hospice Revenue

$193.4

$201.0

Gross Margin %

47.8%

47.9%

Pre-Corporate EBITDA

(2)

$45.2

$48.8

23.4%

24.3%

Operating Statistics

-5%

-3%

Admit growth - same store

(3 )(4 )

ADC growth - same store

(3 )(4 )

-1%

0%

ADC

12,730

12,767

Avg. discharge length of stay

90

92

Revenue per day (net)

(5)

$168.83

$173.04

Cost per day

$88.14

$90.16

Hospice Highlights

  • Net revenue per day +2.5% primarily due to the +3.1% Hospice rate update effective 10/1/2023 partially offset by patient mix.
  • Cost per day up $2.02 (+2.3%) primarily due to raises, wage inflation and an increase in RN hires partially offset by clinical optimization and reorganization initiatives, lower contractor utilization and a new pharmacy contract (effective
    2Q'23).
  • EBITDA margin up 90 basis points due to the 2024 rate increase (effective 10/1/2023), a new pharmacy contract and clinical optimization and reorganization initiatives partially offset by higher labor costs.
  1. The financial results for the three-month periods ended March 31, 2023 and March 31, 2024 are adjusted for certain items and should be considered a non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
  2. Pre-CorporateEBITDA does not include any corporate G&A expenses.
  3. Same Store information represents the percent change in volume, admissions or ADC for the period as a percent of the volume, admissions or ADC of the prior period.

4.

Same Store is defined as care centers that we have operated for at least the last 12 months and startups that are an expansion of a same store care center.

6

GENERAL & ADMINISTRATIVE EXPENSES - ADJUSTED (1,2)

Impacted by raises and incentive compensation costs

$ in Millions

1Q23

2Q23

3Q23

4Q23

1Q24

Home Health Segment - Total

$

89.0

$

90.1

$

91.3

$

92.7

$

91.0

% of HH Revenue

25.9%

25.8%

26.0%

25.8%

25.0%

Hospice Segment - Total

47.9

47.9

48.4

48.6

48.0

% of HSP Revenue

24.8%

24.0%

24.2%

23.6%

23.9%

Personal Care Segment - Total

2.2

-

-

-

-

% of PC Revenue

14.9%

-

-

-

-

High Acuity Care Segment - Total

4.4

5.2

5.2

5.4

5.9

% of HAC Revenue

94.6%

131.1%

119.2%

91.4%

92.5%

Total Corporate Expenses

44.2

45.2

46.2

50.3

48.4

% of Total Revenue

7.9%

8.2%

8.3%

8.8%

8.5%

Total

$

187.7

$

188.4

$

191.1

$

197.0

$

193.3

% of Total Revenue

33.7%

34.1%

34.4%

34.5%

33.8%

1Q23

2Q23

3Q23

4Q23

1Q24

Salary and Benefits

26.3

26.5

27.7

29.4

27.6

Other

15.5

15.1

14.9

16.9

16.6

Corp. G&A Subtotal

41.8

41.6

42.6

46.3

44.2

Non-cash comp

2.4

3.6

3.6

4.0

4.2

Adjusted Corporate G&A

44.2

45.2

46.2

50.3

48.4

Total G&A as a Percent of Revenue

36.0%

33.7%

34.1%

34.4%

34.5%

33.8%

34.0%

32.0%

1Q23

2Q23

3Q23

4Q23

1Q24

G&A as a Percent of Revenue

Notes:

  • Year over year total G&A as a percentage of revenue increased 10 basis points ($6 million)
    • Increase in total G&A is primarily due to planned wage increases and higher incentive compensation costs partially offset by the divestiture of our personal care line of business
  • Total G&A decreased ~$4 million sequentially primarily due to a seasonality driven decrease in health insurance costs

1. The financial results for the three-month periods ended March 31, 2023, June 30, 2023, September 30, 2023, December 31, 2023 and March 31, 2024 are adjusted for certain items and should be considered a non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the

corresponding 8-K detailing quarterly results for each respective reporting period.

7

2. Adjusted G&A expenses do not include depreciation and amortization.

OPERATIONAL EXCELLENCE: HOME HEALTH COST PER VISIT (CPV)-ADJUSTED

YOY Total CPV impacted by higher labor costs.

Components

1Q'23

4Q'23

1Q'24

YoY Variance

Detail

Initiatives

Salaries

$72.79

$77.48

$77.31

$4.52

YoY increase due to planned wage increases,

Staffing mix optimization, productivity

wage inflation, an increase in new hire pay

and scheduling improvement initiatives

and visit mix

in place to help overcome salary

increases

Sequential decrease due to one less holiday

and lower new hire pay partially offset by

visit mix

Contractors

$6.50

$5.88

$6.38

$(0.12)

YoY variance due to lower utilization

Focused efforts on filling positions with

partially offset by higher rates

full-time clinicians

Sequential variance due to higher rates and

an increase in utilization

Benefits

$12.95

$16.85

$13.81

$0.86

YoY variance due to higher payroll taxes on

Focus on cost containment and spend

the salary increases described above and

optimization with specific focus on

higher health insurance costs

high-cost claims

Sequential decrease due to a decrease in

health insurance costs due to the seasonality

of claims partially offset by higher payroll

taxes due to beginning of the year tax rate

resets

Transportation & Supplies

$7.23

$7.61

$7.15

($0.08)

Sequential variance due to lower mileage

costs and slightly lower supply costs on

higher visits

*Visiting Clinician CPV

$99.47

$107.82

$104.65

$5.18**

Clinical Managers

$10.98

$12.12

$11.99

$1.01

Fixed cost associated with non-visiting

Unit cost reduced as volume increases

clinicians

YoY variance due to planned wage increases

and additional staff

Total CPV

$110.45

$119.94

$116.64

$6.19

*Note: Direct comparison with industry competitors CPV calculation

Cost Per Visit (CPV)

$125.00

$107.82

$99.47

$104.65

$100.00

$75.00

$50.00

$25.00

1Q23

4Q23

1Q24

8

Salaries

Contractors

Benefits

Transportation

DRIVING TOP LINE GROWTH

Home Health

Growth

160,000

12.0%

10%

10.0%

140,000

8%

7%

8.0%

8%

6.0%

120,000

4%

4%

4.0%

5%

5%

2.0%

3%

3%

100,000

0.0%

1Q23

2Q23

3Q23

4Q23

1Q24

Volume

SS Volume Growth

SS Admit Growth

Hospice

Growth

13,000

0.5%

0.3%

-0.2%

12,750

-0.5%

-1%

-1.5%

-2%

-2%

12,500

-2.5%

1Q23

2Q23

3Q23

4Q23

1Q24

ADC

SS ADC Growth

9

INDUSTRY LEADING QUALITY SCORES

Quality of Patient Care (QPC)

Patient Satisfaction (PS)

Metric

Oct 23

Jan 24

Apr 24

Jul 24

Release

Release

Preview

Preview

Quality of Patient

4.44

4.41

4.35

4.32

Care

Entities at 4+

98%

96%

95%

93%

Stars

QPC Industry Performance

4.50

4.00

3.50

3.00

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

2022

2022

2022

2022

2023

2023

2023

2023

2024

2024

2024

Amedisys

QPC Industry Avg

QPC Top Competitor

Metric

Jul 23

Oct 23

Jan 24

Apr 24

Release

Release

Release

Preview

Patient

3.76

3.73

3.61

3.72

Satisfaction Star

Performance Over

+2%

+2%

+3%

NA

Industry

PS Industry Performance

4.50

4.00

3.50

3.00

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

2022

2022

2022

2022

2023

2023

2023

2023

2024

2024

Amedisys

QPC Industry Avg

QPC Top Competitor

  • Amedisys maintains a 4-Star average in the Jul 2024 HHC Preview with 93% of our providers (representing 92% of care centers) at 4+ Stars and 59% of our providers (representing 61% of care centers) at 4.5+ Stars.
  • 21 Amedisys providers (representing 41 care centers) rated at 5 Stars.

Notes:

  1. Jul 2024 QPC Star Preview performance period = Oct 2022 - Sep 2023 (ACH = CY 2022).
  2. Apr 2024 PS Preview performance period = Oct 2022 - Sep 2023.
  3. QPC Star and PS Results for Amedisys Legacy providers only.

(4) Only currently active care centers included in care center results.

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Amedisys Inc. published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 17:26:03 UTC.