Benzinga | Aug 4, 2021 05:11PM EDT

Amedisys Sees FY21 Core Adj. EPS $6.37-$6.49, Adj. Service Revenue $2.23B-$2.245B; Says 'our Hospice segment is behind in both admission and average daily census growth'

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 June 30, 2021) is as follows:

* Adjusted net service revenue is anticipated to be in the range of $2.230 billion to $2.245 billion.

* Adjusted EBITDA is anticipated to be in the range of $315 million to $320 million.

* Adjusted diluted earnings per share is anticipated to be in the range of $6.37 to $6.49 based on an estimated 33.1 million shares outstanding.

Our updated 2021 guidance including all acquisition activity closed as of August 4, 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 33.1 million shares outstanding.

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