Amedisys (AMED) Q2 2024 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $591.2M in Q2 2024, driven by home health volume growth and rate increases, with adjusted EBITDA at $73.2M and adjusted EPS of $1.32.

• Net income for Q2 was $32.3M, rebounding from a net loss of $80.3M in Q2 2023, which included significant merger-related expenses.

• Home Health same store admissions increased 13%, and High Acuity Care admissions surged 56% year-over-year.

• Quality scores remain industry-leading, with 92% of care centers at 4+ Stars and 40 centers rated at 5 Stars.

• Pending merger with UnitedHealth Group expected to close in H2 2024, with sale of certain care centers to VitalCaring Group contingent on completion.

Financial highlights

• Q2 2024 net service revenue: $591.2M (up from $553.0M in Q2 2023); adjusted EBITDA: $73.2M; adjusted EPS: $1.32.

• Q2 2024 operating income: $52.2M (up from $37.8M in Q2 2023); net income: $32.3M (vs. net loss of $80.3M in Q2 2023).

• Gross margin declined to 44.7% from 46.2% year-over-year.

• Free cash flow was $42.3M, down from $54.1M in Q2 2023.

• Cash and equivalents at June 30, 2024: $149.9M; net debt stood at $241.3M.

Outlook and guidance

• 2024 reimbursement: Hospice +3.1% (effective 10/1/23), Home Health +0.8% (effective 1/1/24).

• 2025 proposed: Hospice +2.6% (effective 10/1/24), Home Health -1.7% (effective 1/1/25).

• Merger with UnitedHealth Group expected to close in H2 2024, pending regulatory approvals.

• Capital expenditures and technology investments for 2024 projected at $7M–$8M.