Amedisys (AMED) Q1 2025 earnings summary

Executive summary

• Net service revenue increased 4% year-over-year to $594.8M in Q1 2025, driven by volume growth and reimbursement increases.

• Adjusted EBITDA rose 15% to $68.8M, with margin at 11.6%.

• Net income attributable to Amedisys was $61.0M, including a $48.1M gain on an equity method investment and $16.8M in merger-related expenses.

• Home Health and Hospice segments saw revenue and margin growth, with High Acuity Care admissions up 31% and patient satisfaction at 90%.

• The company operates 347 home health, 164 hospice care centers, and 8 high acuity care JVs across 38 states, serving over 499,000 patients annually.

Financial highlights

• Operating income increased to $43.4M from $31.6M year-over-year.

• Adjusted net income per diluted share was $1.25, up from $1.03; net income per diluted share was $1.84, up from $0.44.

• Gross margin was 43.8% of revenue, slightly up from 43.7% year-over-year.

• Cash and cash equivalents at quarter-end were $284.9M, with $508M revolver availability and $792.9M total liquidity.

• Net cash used in operating activities was $(3.7)M, an improvement from $(6.5)M used in Q1 2024.

Outlook and guidance

• Hospice reimbursement rates to increase 2.9% effective 10/1/24 and 2.4% proposed for 10/1/25.

• Home Health reimbursement rates to increase 0.5% effective 1/1/25.

• Inflationary pressures on labor and healthcare costs are expected to persist, partially offset by rate increases and reorganization.

• The company anticipates continued operating losses in high acuity care but expects improvement as scale increases.

• No quarterly earnings call was held due to the pending UnitedHealth Group merger.