Amedisys Inc (AMED)

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Amedisys, Inc. (AMED)

3Q09 (Qtr End 9/30/09) Earnings Call Transcript

October 27, 2009 10:00 ET


William F. Borne - Chief Executive Officer and Chairman

Dale E. Redman - Chief Financial Officer

Michael Fleming - Chief Medical Officer

Kevin LeBlanc - Director of Investor Relations


Whit Mayo - Robert W. Baird

Kevin Ellich - RBC Capital Markets

John Ransom - Raymond James & Associates

Arthur Henderson - Jefferies & Company

K. Newton Juhng - BB&T Capital Markets

Andreas Dirnagl - Stephens, Inc.

Kevin Campbell - Avondale Partners

Donald Hooker - UBS

Darren Lehrich - Deutsche Bank



Good day and welcome to the Amedisys Third Quarter 2009 Earnings Conference Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Mr. Kevin LeBlanc. Please go ahead, sir.

Kevin LeBlanc

Thanks, Jessica. Good morning and welcome to the Amedisys investor conference call to discuss the third quarter 2009 earnings announcement and related matters.

If you have not received a copy of our press release, you may access it on the Investor Relations page on our website at

Speaking up today’s call from Amedisys will be Bill Borne, Chairman and Chief Executive Officer; Dr. Michael Fleming, Chief Medical Officer; and Dale Redman, Chief Financial Officer.

Before we get started with our call, I would like to remind everyone that any statements made on this conference call today or in our press releases that express a belief, expectation, or intent as well as those that are not historical facts are considered forward-looking statements and are protected under the Safe Harbor of the Private Securities Litigation Reform Act.

These forward-looking statements are based on information available to Amedisys today, and the company assumes no obligation to update these statements as circumstances change. These forward-looking statements may involve a number of risks and uncertainties which may cause the company’s results to differ materially from such statements. These risks and uncertainties include factors detailed in our SEC filings including our forms 10-K and 10-Q.

Also, the company urges caution in considering any current trends or guidance that may be discussed on this conference call. The home health and hospice industry is highly competitive and trends and guidance are subject to numerous factors, risks, and influences, which are described in the company’s reports and registration statements filed with the SEC.

The company disclaims any obligations to update information on trends or targets other than in its periodic filings with the SEC. Our company website address is, we use our website as channel of distribution for important company information.

Important information, including press releases, analyst presentations and financial information regarding the 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. We also use our website to expedite public access to time-critical information regarding the company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information.

Therefore, investors should look out to the “Investor Relations” subpage of our website for important and time-critical information. 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 the website.

In addition, as required by SEC Regulation G, a reconciliation of any non-GAAP measures mentioned during our call today to the most comparable GAAP measures will be available on our website on Investor Relations subpage under the link Press Releases.

Thank you. And now, I’ll turn the call over to Bill Borne. Please go ahead, Mr. Borne.

William F. Borne

Thanks, Kevin and good morning. I would like to welcome everyone who has joined us on the call this morning. We appreciate the opportunity to update you regarding the company’s performance and share our vision for Amedisys.

We had an outstanding result for the third quarter reporting net revenue of 388 million and earnings per diluted share of $1.29, this represents growth of 21 and 48% respectively over the third quarter of ’08. Delivering care to elderly patients with chronic conditions will continue to disproportionately dominates our Nation’s health care expenditures. Today Medicare spends 69% of its fiscal resources on the 12% of the patients with chronic comorbid conditions.

At Amedisys, our focus is on providing care for these complex homes in their home when home-based care is the most appropriate setting for the treatment of their conditions. This focus has resulted in Amedisys becoming one of the nation’s leading home health and hospice companies.

We have a simple threefold business strategy; providing high quality clinical services to patients entrusted to our care, focusing on growth and increasing organizational efficiency. At the end of my comments, I’d turn the call over to Dr. Michael Fleming, our Chief Medical Officer who will provide information on our clinical initiatives.

Turning to growth, during the quarter we have opened 10 new home health agencies and have opened 28 for the year. We currently have approximately 170 potential home health startups in various stages of which approximately 80 are incurring expenses but have not yet opened. We continue to target 40 new home health locations in 2009.

In addition, we opened two hospice agencies during the quarter and a total of three for the year. We currently have approximately 90 potential hospice startups in various stages of which 14 are incurring expenses but have not yet opened. We continue to target five new hospice locations in 2009.

Moving to acquisitions, we acquired 10 hospice agencies located in South Carolina and Mississippi in July. This was our largest hospice only acquisition to date. We also signed a purchase agreement to acquire the home health operations of Hackensack University Medical Center and expect to close by year-end.

We have a healthy pipeline of both home health and hospice acquisition candidates and we continue to analyze potential opportunities as they become available. Due to potential reimbursement changes being discussed in Washington, we are being more selective in our acquisition targets and more conservative in our pricing.

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