GlobeNewswire Inc | Aug 4, 2021 04:05PM EDT

August 04, 2021

BATON ROUGE, La., Aug. 04, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June30, 2021.

Three-Month Periods Ended June30, 2021 and 2020

-- Net service revenue increased $79.2million to $564.2million compared to $485.0million in 2020. -- Net income attributable to Amedisys, Inc. of $80.1million compared to $34.7million in 2020. -- Net income attributable to Amedisys, Inc. per diluted share of $2.43 compared to $1.04 in 2020.

Adjusted Quarterly Results*

-- Adjusted EBITDA of $83.8million compared to $66.4million in 2020. -- Adjusted net service revenue of $557.6million compared to $485.0million in 2020. -- Adjusted net income attributable to Amedisys, Inc. of $55.7million compared to $44.5million in 2020. -- Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.69 compared to $1.34 in 2020.

Six-Month Periods Ended June30, 2021 and 2020

-- Net service revenue increased $124.6million to $1,101.3million compared to $976.7million in 2020. -- Net income attributable to Amedisys, Inc. of $130.0million compared to $66.5million in 2020. -- Net income attributable to Amedisys, Inc. per diluted share of $3.93 compared to $2.00 in 2020.

Adjusted Year to Date Results*

-- Adjusted EBITDA of $162.4million compared to $119.7million in 2020. -- Adjusted net service revenue of $1,094.8million compared to $976.7million in 2020. -- Adjusted net income attributable to Amedisys, Inc. of $106.9million compared to $79.3million in 2020. -- Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.23 compared to $2.39 in 2020.

* See pages 4 and 1618 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Contessa Acquisition

On August1, 2021, we closed on our previously announced acquisition of Contessa Health (Contessa), a leader in hospital-at-home and skilled nursing facility (SNF) at-home services. With the addition of Contessas risk-based model and claims analytics capabilities, we will be able to bring the essential elements of inpatient hospital and SNF care to patients homes, allowing us to become a risk-bearing, home-based care delivery organization, expanding well beyond traditional Home Health and Hospice. Contessa will operate as a wholly owned division of Amedisys and will be reported as a separate operating segment in our future filings.

Updated 2021 Guidance

While our performance in the first half of 2021 has produced strong EBITDA and expanded margins, our Hospice segment is behind in both admission and average daily census growth. The COVID-19 pandemic has put pressure on our ability to hire and retain business development employees at a level needed to achieve our internal growth targets. Throughout 2020 and into 2021, we have been mindful of our need to deliver results, and we have a history of managing our costs. However, with our recent acquisition activity, we believe that there is a significant opportunity to grow our Hospice segment which has required us to invest in leadership and continue to hire clinical employees to support this future growth. Accordingly, and given that our Hospice growth disruption has been isolated to turnover and hiring and is not a systemic issue, we are committed to staffing our Hospice segment for this growth opportunity despite the impact to near term margins.

COVID-19 has impacted the operating metrics typically used to forecast both growth and cost assumptions for both core Amedisys and Contessa. We are basing our guidance on our current operating environment. COVID-19 continues to evolve in both the disease itself as well as disruptions to the healthcare systems and the economy. Any future regulations or government interventions, spike in clinicians and business development staff on quarantine, reduction in elective procedures, change in patient behavior and further decline in senior living occupancy could impact our ability to achieve this guidance.

Based upon the above discussion, our updated 2021 guidance for our core business (excluding any acquisitions closed subsequent to June30, 2021) is as follows:

-- Adjusted net service revenue is anticipated to be in the range of $2.230billion to $2.245billion. -- Adjusted EBITDA is anticipated to be in the range of $315million to $320million. -- Adjusted diluted earnings per share is anticipated to be in the range of $6.37 to $6.49 based on an estimated 33.1million shares outstanding.

Our updated 2021 guidance including all acquisition activity closed as of August4, 2021 is as follows:

-- Adjusted net service revenue is anticipated to be in the range of $2.241 billion to $2.259 billion. -- Adjusted EBITDA is anticipated to be in the range of $301 million to $308 million. -- Adjusted diluted earnings per share is anticipated to be in the range of $6.03 to $6.18 based on an estimated 33.1million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

Expansion of Credit Facility

On July30, 2021, we entered into the Second Amendment to our Credit Agreement (as amended by the Second Amendment, the Second Amended Credit Agreement). The Second Amended Credit Agreement provides for a senior secured credit facility in an initial aggregate principal amount of up to $1.0billion, which includes a $550.0million Revolving Credit Facility under the Second Amended Credit Agreement, and a term loan facility with a principal amount of up to $450.0million (the Amended Term Loan Facility and collectively with the Revolving Credit Facility, the Amended Credit Facility).

Proceeds from the $450.0million Amended Term Loan Facility were used to pay off the outstanding Term Loan principal balance as of July30, 2021, as well as to fund 100% of the Contessa acquisition.

Share Repurchase Program

We also announced today that our Board of Directors authorized a share repurchase program, under which we may repurchase up to $100million of our outstanding common stock through December31, 2022, to commence upon the completion of the Companys existing $100million share repurchase program, approved by our Board of Directors on December17, 2020 (the Existing Share Repurchase Program). Repurchases may be made under the Existing Share Repurchase Program through December31, 2021.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, The second quarter of 2021 was an eventful quarter for Amedisys. In our core business, Home Health continued its very strong performance while the lingering and prolonged effect of COVID-19 continued to impact our Hospice business ability to grow at previously projected rates. We have identified the issues which are two-fold, business development staff recruitment and retention, and have implemented plans to accelerate performance in the second half of the year. That said, we have revised our full year guidance to reflect these impacts.

I am also very excited about the closing of the Contessa acquisition. Contessas industry leading Hospital at Home and SNF at Home platform, along with their advanced Medicare Advantage claims analytics, underwriting capabilities and risk-taking experience, combined with our nationwide, highest quality, Home Health and Hospice platform creates a truly differentiated, tech-enabled, risk-taking, higher-acuity, home-based care delivery assetone that materially differentiates Amedisys and positions us differently with Medicare Advantage plans. Id like to welcome all of the Contessa employees to the Amedisys family.

We also have expanded our credit facility giving us access to $1billion via a term loan and revolver. This should strongly indicate our appetite to do additional Home Health and Hospice acquisitions.

Finally, our Board of Directors has authorized an additional $100million stock buy-back program that we will deploy opportunistically. It makes sense to have this tool available as part of our capital deployment strategy and again, does not prevent us from doing any deals we currently have in the pipeline.

Id like to take a moment to thank all of the nearly 21,000 Amedisys employees for their continued dedication, efforts and tireless work throughout this quarter and the entirety of the pandemic. It is humbling to see the incredible care you provide to your patients wherever they call home and makes me proud to work for such a service and quality driven organization.

We urge caution in considering the current trends and 2021 guidance disclosed in this press release. The home health, hospice and personal care industries are highly competitive and subject to intensive regulations, and trends are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (SEC) including our Annual Report on Form 10-K for the fiscal year ended December31, 2020, subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SECs internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com.

Earnings Call and Webcast Information

Amedisys will host a conference call on Thursday, August5, 2021, at 11:00 a.m. ET to discuss its second quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through September5, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13721553.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1)adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2)adjusted net service revenue, defined as net service revenue excluding certain items; (3)adjusted other operating income, defined as other operating income excluding certain items; (4)adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5)adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the companys financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional Information

Amedisys, Inc. (the Company) is a leading healthcare at home company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering our patients to manage a chronic disease; or hospice care at the end of life. More than 2,900 hospitals and 78,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With approximately 21,000 employees in 514 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 418,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled Investors on our website home page. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like believes, belief, expects, strategy, plans, anticipates, intends, projects, estimates, may, might, could, would, should and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: the impact of the novel coronavirus pandemic (COVID-19), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations, changes in or our failure to comply with existing federal and state laws or regulations or the inability to comply with new government regulations on a timely basis, changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, competition in the healthcare industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to consistently provide high-quality care, our ability to attract and retain qualified personnel, our ability to keep our patients and employees safe, changes in payments and covered services by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, widespread protests or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions, changes in law or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the 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.

Contact: Investor Contact: Media Contact: Amedisys, Inc. Amedisys, Inc. Nick Muscato Kendra Kimmons Senior Vice President, Vice President, Marketing & Finance Communications (855) 259-2046 (225) 299-3720 IR@amedisys.com kendra.kimmons@amedisys.com

AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data)(Unaudited) FortheThree-Month FortheSix-Month PeriodsEndedJune 30, PeriodsEndedJune 30, 2021 2020 2021 2020Net service $ 564,166 $ 485,059 $ 1,101,310 $ 976,744 revenueOtheroperating 4,603 22,780 13,304 22,780 incomeCost ofservice,excluding 308,691 295,228 605,894 580,965 depreciationandamortizationGeneral andadministrative expenses:Salaries and 114,335 105,617 230,160 207,183 benefitsNon-cash 6,156 6,725 13,463 12,634 compensationOther 54,731 44,003 103,837 93,268 Depreciationand 6,721 6,334 14,276 11,672 amortizationOperating 490,634 457,907 967,630 905,722 expensesOperating 78,135 49,932 146,984 93,802 incomeOther income (expense):Interest 25 214 49 227 incomeInterest (1,932 ) (2,752 ) (4,004 ) (5,983 )expenseEquity inearnings from 1,370 487 2,488 964 equity methodinvestmentsGain (loss) onequity method 31,092 (2,980 ) 31,092 (2,980 )investmentsMiscellaneous, 475 277 763 540 netTotal otherincome 31,030 (4,754 ) 30,388 (7,232 )(expense), netIncome before 109,165 45,178 177,372 86,570 income taxesIncome tax (28,546 ) (10,031 ) (46,461 ) (19,377 )expenseNet income 80,619 35,147 130,911 67,193 Net incomeattributableto (470 ) (473 ) (892 ) (717 )noncontrollinginterestsNet incomeattributable $ 80,149 $ 34,674 $ 130,019 $ 66,476 to Amedisys,Inc.Basic earningsper common share:Net incomeattributableto Amedisys, $ 2.46 $ 1.07 $ 3.98 $ 2.05 Inc. commonstockholdersWeightedaverage shares 32,588 32,412 32,684 32,371 outstandingDilutedearnings per common share:Net incomeattributableto Amedisys, $ 2.43 $ 1.04 $ 3.93 $ 2.00 Inc. commonstockholdersWeightedaverage shares 32,981 33,285 33,085 33,259 outstanding

AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share data) June30,2021 December31, (unaudited) 2020ASSETS Current assets: Cash and cash equivalents $ 91,646 $ 81,808 Restricted cash 1,000 1,549 Patient accounts receivable 278,216 255,145 Prepaid expenses 11,979 10,217 Other current assets 8,124 13,265 Total current assets 390,965 361,984 Property and equipment, net of accumulated 20,986 23,719 depreciation of $98,552 and $95,024Operating lease right of use assets 95,034 93,440 Goodwill 936,772 932,685 Intangible assets, net of accumulated 66,432 74,183 amortization of $15,842 and $22,973Deferred income taxes 25,271 47,987 Other assets 64,103 33,200 Total assets $ 1,599,563 $ 1,567,198 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 36,668 $ 42,674 Payroll and employee benefits 147,017 146,929 Accrued expenses 166,157 166,192 Provider relief fund advance 58,328 60,000 Current portion of long-term obligations 10,160 10,496 Current portion of operating lease liabilities 30,893 30,046 Total current liabilities 449,223 456,337 Long-term obligations, less current portion 179,415 204,511 Operating lease liabilities, less current portion 63,152 61,987 Other long-term obligations 31,886 33,622 Total liabilities 723,676 756,457 Equity: Preferred stock, $0.001 par value, 5,000,000 ? ? shares authorized; none issued or outstandingCommon stock, $0.001 par value, 60,000,000 sharesauthorized; 37,553,355 and 37,470,212 shares 38 38 issued; and 32,576,829 and 32,814,278 sharesoutstandingAdditional paid-in capital 714,334 698,287 Treasury stock, at cost 4,976,526 and 4,655,934 (400,110 ) (319,092 )shares of common stockRetained earnings 560,010 429,991 Total Amedisys, Inc. stockholders? equity 874,272 809,224 Noncontrolling interests 1,615 1,517 Total equity 875,887 810,741 Total liabilities and equity $ 1,599,563 $ 1,567,198

AMEDISYS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING(Amounts in thousands, except statistical information)(Unaudited) FortheThree-Month FortheSix-Month PeriodsEnded June30, PeriodsEnded June30, 2021 2020 2021 2020Cash Flows from Operating Activities:Net income $ 80,619 $ 35,147 $ 130,911 $ 67,193 Adjustments toreconcile net incometo net cash provided by operatingactivities:Depreciation and 6,721 6,334 14,276 11,672 amortizationNon-cash compensation 6,156 6,725 13,463 12,634 Amortization andimpairment of 9,852 9,500 19,702 18,558 operating lease rightof use assets(Gain) loss ondisposal of property (6 ) (149 ) 8 (94 )and equipment(Gain) loss on equity (31,092 ) 2,980 (31,092 ) 2,980 method investmentsWrite-off of other ? ? ? (15 )comprehensive incomeDeferred income taxes 15,305 (5,264 ) 22,716 (4,036 )Equity in earningsfrom equity method (1,370 ) (487 ) (2,488 ) (964 )investmentsAmortization ofdeferred debt 216 217 432 437 issuance costs/debtdiscountReturn on equity 1,183 375 2,683 2,744 method investmentsChanges in operatingassets andliabilities, net of impact ofacquisitions:Patient accounts (2,339 ) 34,456 (22,787 ) 8,997 receivableOther current assets 6,434 2,287 3,560 (3,469 )Other assets 63 (1,092 ) (52 ) (675 )Accounts payable (3,156 ) (3,779 ) (6,530 ) (6,452 )Accrued expenses (9,997 ) 38,326 (1,627 ) 27,990 Other long-term (928 ) 17,686 (1,736 ) 20,746 obligationsOperating lease (8,941 ) (8,233 ) (17,955 ) (16,365 )liabilitiesOperating lease right (762 ) (1,107 ) (1,524 ) (1,924 )of use assetsNet cash provided by 67,958 133,922 121,960 139,957 operating activitiesCash Flows from Investing Activities:Proceeds from sale ofdeferred compensation 6 5 25 21 plan assetsProceeds from sale ofproperty and ? 68 42 80 equipmentPurchases of property (1,325 ) (267 ) (2,943 ) (1,701 )and equipmentInvestments in equity ? (875 ) ? (875 )method investeesProceeds from sale ofequity method ? 17,876 ? 17,876 investmentAcquisitions ofbusinesses, net of (2,503 ) (230,374 ) (2,503 ) (299,723 )cash acquiredNet cash used in (3,822 ) (213,567 ) (5,379 ) (284,322 )investing activitiesCash Flows from Financing Activities:Proceeds fromissuance of stock 259 1,763 623 2,947 upon exercise ofstock optionsProceeds fromissuance of stock to 913 826 1,961 1,686 employee stockpurchase planShares withheld topay taxes on non-cash (170 ) (2,334 ) (6,944 ) (6,384 )compensationNoncontrolling (276 ) (12 ) (794 ) (372 )interest distributionProceeds fromborrowings under 174,000 237,000 389,200 424,500 revolving line ofcreditRepayments ofborrowings under (224,000 ) (222,000 ) (410,200 ) (259,500 )revolving line ofcreditPrincipal payments of (2,700 ) (3,083 ) (5,392 ) (4,675 )long-term obligationsPurchase of company (1,188 ) ? (74,074 ) ? stockProvider relief fund 3,328 70,000 (1,672 ) 70,000 advanceNet cash (used in)provided by financing (49,834 ) 82,160 (107,292 ) 228,202 activitiesNet increase in cash,cash equivalents and 14,302 2,515 9,289 83,837 restricted cashCash, cashequivalents and 78,344 177,812 83,357 96,490 restricted cash atbeginning of periodCash, cashequivalents and $ 92,646 $ 180,327 $ 92,646 $ 180,327 restricted cash atend of periodSupplementalDisclosures of Cash Flow Information:Cash paid for $ 903 $ 1,537 $ 1,914 $ 3,292 interestCash paid for incometaxes, net of refunds $ 7,696 $ 2,881 $ 8,667 $ 8,153 receivedCash paid foroperating lease $ 9,703 $ 9,340 $ 19,479 $ 18,289 liabilitiesCash paid for finance $ 514 $ 487 $ 1,017 $ 986 lease liabilitiesSupplementalDisclosures of Non-Cash Activity:Right of use assetsobtained in exchange $ 10,141 $ 12,454 $ 20,689 $ 18,891 for operating leaseliabilitiesRight of use assetsobtained in exchange $ 350 $ 233 $ 527 $ 487 for finance leaseliabilitiesReductions to rightof use assetsresulting from $ 625 $ 248 $ 904 $ 407 reductions tooperating leaseliabilitiesDays revenue 42.7 42.0 42.7 42.0 outstanding (1)

(1) Our calculation of days revenue outstanding, net is derived by dividing our ending patient accounts receivable at June30, 2021 and 2020 by our average daily net patient service revenue for the three-month periods ended June30, 2021 and 2020, respectively.

AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)

Segment InformationHome Health

For the Three-Month Periods Ended June30, 2021 2020Financial Information (in millions): Medicare $ 234.8 $ 192.9 Non-Medicare 114.5 97.3 Net service revenue 349.3 290.2 Other operating income 2.3 15.1 Cost of service 190.4 184.0 Gross margin 161.2 121.3 Other operating expenses 82.5 73.1 Operating income $ 78.7 $ 48.2 Same Store Growth (1): Medicare revenue 22 % (12 %)Non-Medicare revenue 18 % (2 %)Total admissions 20 % (9 %)Total volume (2) (6) 12 % (3 %)Key Statistical Data?Total (3): Admissions 89,371 74,327 Recertifications (6) 46,014 46,758 Total volume (6) 135,385 121,085 Medicare completed episodes 79,188 68,660 Average Medicare revenue per completedepisode $ 2,986 $ 2,818 (4)Medicare visits per completed episode (5) 14.2 15.4 Visiting Clinician Cost per Visit $ 91.24 $ 93.17 Clinical Manager Cost per Visit $ 9.31 $ 9.42 Total Cost per Visit $ 100.55 $ 102.59 Visits 1,894,006 1,793,652

For the Six-Month Periods Ended June30, 2021 2020Financial Information (in millions): Medicare $ 456.2 $ 396.8 Non-Medicare 221.7 197.0 Net service revenue 677.9 593.8 Other operating income 7.3 15.1 Cost of service 373.4 363.8 Gross margin 311.8 245.1 Other operating expenses 163.6 149.8 Operating income $ 148.2 $ 95.3 Same Store Growth (1): Medicare revenue 15 % (8 %)Non-Medicare revenue 13 % ? %Total admissions 12 % (3 %)Total volume (2) 9 % (1 %)Key Statistical Data?Total (3): Admissions 179,201 160,302 Recertifications (6) 89,825 86,625 Total volume (6) 269,026 246,927 Medicare completed episodes 154,520 144,296 Average Medicare revenue per completedepisode $ 2,959 $ 2,774 (4)Medicare visits per completed episode (5) 14.1 15.6 Visiting Clinician Cost per Visit $ 90.79 $ 88.41 Clinical Manager Cost per Visit $ 9.40 $ 9.19 Total Cost per Visit $ 100.19 $ 97.60 Visits 3,726,918 3,727,097

(1) Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center. (2) Total volume includes all admissions and recertifications. (3) Total includes acquisitions, start-ups and denovos. (4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode reflects the transition to PDGM effective January1, 2020 and the suspension of sequestration effective May1, 2020. (5) Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period. (6) Prior year amounts have been recast to conform to the current year calculation.

Segment Information - Hospice

FortheThree-MonthPeriods Ended June30, 2021 2020Financial Information (in millions): Medicare $ 186.9 $ 167.0 Non-Medicare 11.0 10.1 Net service revenue 197.9 177.1 Other operating income 2.3 7.2 Cost of service 105.2 97.2 Gross margin 95.0 87.1 Other operating expenses 49.1 41.4 Operating income $ 45.9 $ 45.7 Same Store Growth (1): Medicare revenue 2 % 4 %Hospice admissions 2 % (1 %)Average daily census (3 %) ? %Key Statistical Data - Total (2): Hospice admissions 12,675 11,411 Average daily census 13,254 12,513 Revenue per day, net $ 164.10 $ 155.51 Cost of service per day $ 87.17 $ 85.34 Average discharge length of stay 97 94

FortheSix-MonthPeriods Ended June30, 2021 2020Financial Information (in millions): Medicare $ 368.4 $ 327.5 Non-Medicare 21.0 19.0 Net service revenue 389.4 346.5 Other operating income 6.0 7.2 Cost of service 206.8 189.0 Gross margin 188.6 164.7 Other operating expenses 96.2 80.7 Operating income $ 92.4 $ 84.0 Same Store Growth (1): Medicare revenue ? % 5 %Hospice admissions 3 % ? %Average daily census (3 %) 2 %Key Statistical Data - Total (2): Hospice admissions 26,358 22,729 Average daily census 13,287 12,279 Revenue per day, net $ 161.93 $ 155.04 Cost of service per day $ 85.99 $ 84.58 Average discharge length of stay 95 96

(1) Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center. (2) Total includes acquisitions, start-ups and denovos.

Segment Information - Personal Care

FortheThree-MonthPeriods Ended June30, 2021 2020Financial Information (in millions): Medicare $ ? $ ?Non-Medicare 17.0 17.7Net service revenue 17.0 17.7Other operating income ? 0.5Cost of service 13.1 14.1Gross margin 3.9 4.1Other operating expenses 3.2 3.0Operating income $ 0.7 $ 1.1Key Statistical Data - Total (1): Billable hours 609,301 642,720Clients served 9,371 9,956Shifts 260,897 282,207Revenue per hour $ 27.95 $ 27.58Revenue per shift $ 65.29 $ 62.80Hours per shift 2.3 2.3

For the Six-Month Periods Ended June30, 2021 2020Financial Information (in millions): Medicare $ ? $ ?Non-Medicare 34.0 36.4Net service revenue 34.0 36.4Other operating income ? 0.5Cost of service 25.7 28.2Gross margin 8.3 8.7Other operating expenses 6.3 6.4Operating income $ 2.0 $ 2.3Key Statistical Data - Total (1): Billable hours 1,216,738 1,394,797Clients served 10,908 12,936Shifts 518,506 615,671Revenue per hour $ 27.96 $ 26.12Revenue per shift $ 65.60 $ 59.17Hours per shift 2.3 2.3

(1) Total includes acquisitions, start-ups and denovos.

Segment Information - Corporate

FortheThree-MonthPeriods Ended June30, 2021 2020Financial Information (in millions): Other operating expenses $ 42.4 $ 40.3Depreciation and amortization 4.8 4.8Total operating expenses $ 47.2 $ 45.1

FortheSix-MonthPeriods Ended June30, 2021 2020Financial Information (in millions): Other operating expenses $ 84.9 $ 79.2Depreciation and amortization 10.7 8.6 Total operating expenses $ 95.6 $ 87.8

AMEDISYS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (Amounts in thousands) (Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) Reconciliation:

For the Three- For the Six- Month Periods Month Periods Ended June30, Ended June30, 2021 2020 2021 2020Net incomeattributable to $ 80,149 $ 34,674 $ 130,019 $ 66,476 Amedisys, Inc.Add: Income tax 28,546 10,031 46,461 19,377 expenseInterest 1,907 2,538 3,955 5,756 expense, netDepreciationand 6,721 6,334 14,276 11,672 amortizationCertain items (33,010 ) 13,313 (31,298 ) 17,349 (1)Interestcomponent of (469 ) (446 ) (986 ) (892 )certain items(1)Adjusted EBITDA $ 83,844 $ 66,444 $ 162,427 $ 119,738 (2) (7)

Adjusted Net Service Revenue Reconciliation:

For the Three- For the Six- Month Periods Month Periods Ended June30, Ended June30, 2021 2020 2021 2020Net service revenue $ 564,166 $ 485,059 $ 1,101,310 $ 976,744Add: Certain items (1) (6,541 ) ? (6,541 ) ?Adjusted net service revenue $ 557,625 $ 485,059 $ 1,094,769 $ 976,744(3) (7)

Adjusted Other Operating Income Reconciliation:

For the Three- For the Six- Month Periods Month Periods Ended June30, Ended June30, 2021 2020 2021 2020Other operating income $ 4,603 $ 22,780 $ 13,304 $ 22,780 Add: Certain items (1) (4,603 ) (22,780 ) (13,304 ) (22,780 )Adjusted other operating $ ? $ ? $ ? $ ? income (4) (7)

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

For the Three- For the Six- Month Periods Month Periods Ended June30, Ended June30, 2021 2020 2021 2020Net incomeattributable to $ 80,149 $ 34,674 $ 130,019 $ 66,476Amedisys, Inc.Add: Certain items (1) (24,428 ) 9,852 (23,161 ) 12,839Adjusted net incomeattributable to $ 55,721 $ 44,526 $ 106,858 $ 79,315Amedisys, Inc. (5) (7)

Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share Reconciliation:

For the Three- For the Six- Month Periods Month Periods Ended June30, Ended June30, 2021 2020 2021 2020Net income attributable toAmedisys, Inc. common $ 2.43 $ 1.04 $ 3.93 $ 2.00stockholders per diluted shareAdd: Certain items (1) (0.74 ) 0.30 (0.70 ) 0.39Adjusted net incomeattributable to Amedisys, Inc. $ 1.69 $ 1.34 $ 3.23 $ 2.39common stockholders perdiluted share (6) (7)

(1) The following details the certain items for the three and six-month periods ended June30, 2021 and 2020:

Certain Items:

FortheThree-MonthPeriod FortheSix-MonthPeriod Ended June30, 2021 Ended June30, 2021 (Income) Expense (Income) ExpenseCertain ItemsImpacting Net Service Revenue:Contingency $ (6,541 ) (6,541 )accrualCertain ItemsImpacting Other Operating Income:CARES Act& State (4,603 ) (13,304 )COVID-19 grantsCertain ItemsImpacting Cost of Service:COVID-19 costs 4,464 12,944 Certain ItemsImpacting OperatingExpenses:Acquisition and 2,293 3,492 integration costsCOVID-19 costs 160 377 Pre-acquisition 1,825 1,825 legal settlementCertain ItemsImpacting Total Other Income(Expense):Interest component 469 986 of certain itemsOther (income) (31,077 ) (31,077 )expense, netTotal $ (33,010 ) $ (31,298 )Net of tax $ (24,428 ) $ (23,161 )Diluted EPS $ (0.74 ) $ (0.70 )

FortheThree-MonthPeriod FortheSix-MonthPeriod Ended June30, 2020 Ended June30, 2020 (Income) Expense (Income) ExpenseCertain ItemsImpacting Other Operating Income:CARES Act& State $ (22,780 ) $ (22,780 )COVID-19 grantsCertain ItemsImpacting Cost of Service:COVID-19 costs 21,993 23,010 Severance-reductions 5,183 5,183 in staffing levelsCertain ItemsImpacting Operating Expenses:Acquisition and 3,599 5,935 integration costsCOVID-19 costs 1,051 1,063 Severance-reductions 271 271 in staffing levelsCertain ItemsImpacting Total Other Income(Expense):Interest component 446 892 of certain itemsOther (income) 3,550 3,775 expense, netTotal $ 13,313 $ 17,349 Net of tax $ 9,852 $ 12,839 Diluted EPS $ 0.30 $ 0.39

(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1. (3) Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1. (4) Adjusted other operating income is defined as other operating income excluding certain items as described in footnote 1. (5) Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1. (6) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1. (7) Adjusted EBITDA, adjusted net service revenue, adjusted other operating income, adjusted net income attributable to Amedisys, Inc. and adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes or other measures calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.