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How Amedisys Has Performed Financially

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Top line

In fiscal 2017, Amedisys (AMED) generated net service revenues of $1.5 billion compared with $1.4 billion in fiscal 2016. The gross profit of the company was $633 million in fiscal 2017 in comparison to the $604 million in fiscal 2016. The decrease in gross margin was due to 2017 and 2018 changes to home health and hospice reimbursement.

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Operating expenses

Amedisys incurred salaries and benefits expenses of $305.9 million in fiscal 2017 compared with $306.9 million in fiscal 2016. The provision for doubtful accounts increased from $19.5 million in fiscal 2016 to $25 million in fiscal 2017. Depreciation and amortization charges decreased from $19.6 million in fiscal 2016 to $17.1 million in fiscal 2017. Other expenses incurred by Amedisys decreased from $180 million in fiscal 2016 to $159.9 million in fiscal 2017. The total operating expenses incurred by Amedisys in fiscal 2017 were $1.4 billion compared with $1.3 billion in fiscal 2016.

Bottom line

Amedisys’s income tax expense was $50.1 million in fiscal 2017 compared with $23.9 million in fiscal 2016. Consequently, the net income of the company decreased from $37.2 million in fiscal 2016 to $30.3 million in fiscal 2017. This translated into net income per share for Amedisys at $0.88 in fiscal 2017 compared with $1.10 in fiscal 2016.

Cash flows

In fiscal 2017, Amedisys generated $105.7 million from operating activities compared with $62.2 million in fiscal 2016. The company used up $44 million in investing activities in fiscal 2017 compared with $52 million in fiscal 2016. This decrease was primarily due to decreases in cash paid for acquisitions and capital expenditures.

Amedisys used up $5.5 million in financing activities in fiscal 2017 compared with $7.5 million in fiscal 2016. This decrease of $2 million was attributable to a decrease in tax benefits from stock compensation plans and repurchases of common stock.

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