Amedisys (AMED) Q3 2024 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $588M in Q3 2024, driven by volume growth and rate increases, but offset by wage inflation and payor mix shifts.

• Adjusted EBITDA was $58M, reflecting modest growth; net income was $16.9M, down from $26M due to higher merger-related and labor costs.

• Home Health admissions increased 12%, High Acuity Care admissions surged 51%, while Hospice average daily census rose 0.5%.

• Quality scores remain strong, with a 4.24 STARS score and 89% of care centers at 4+ Stars as of October 2024.

• Pending merger with UnitedHealth Group, with $101 per share cash consideration upon closing.

Financial highlights

• Adjusted EPS was $1.00, up from $0.98; Q3 net income per diluted share was $0.51, down from $0.79; free cash flow reached $95.2M, up from $(16.4)M in Q3 2023.

• Net debt stood at $138.2M with a net leverage ratio of 0.6x; total liquidity was $756.7M as of September 30, 2024.

• Cash and cash equivalents at September 30, 2024, were $245.5M; availability under revolving credit facility was $511.2M.

• DSO improved to 44.4 days, down from 52.1 in Q2'24 and 5.4 days lower year-over-year.

• Gross margin for Q3 2024 was 42.6%, down from 44.0% in Q3 2023.

Outlook and guidance

• 2024 Hospice reimbursement increased by 3.1% (effective 10/1/23); Home Health reimbursement up 0.8% (effective 1/1/24).

• 2025 industry reimbursement outlook: Hospice +2.9% (effective 10/1/24), Home Health +0.5% (effective 1/1/25).

• Fourth quarter results expected to be impacted by Hurricanes Helene and Milton.

• Inflationary labor cost pressures expected to persist, partially offset by rate increases and optimization initiatives.

• Forward-looking statements highlight risks related to the pending merger, regulatory approvals, and potential business disruptions.