* 2nd-qtr adjusted net income attributable to company rises
to $8 mln
* Net service revenue of $305 mln beats analysts' estimate
* Co announced care center closures, consolidations in March
* Shares rise as much as 12 pct
(Adds CFO comments; updates shares)
By Natalie Grover
July 30 Amedisys Inc reported a
better-than-expected rise in adjusted quarterly profit after
closing some of its hospices and home health care centers to
The company's shares rose nearly 18 percent to their highest
in almost three years.
The closures helped Amedisys to reverse three straight
quarterly losses, reflecting a turnaround in fortunes since the
appointment of Ronald LaBorde as interim chief executive.
"We believe we have re-established a solid foundation which
will allow us to concentrate on further improving our core
business," LaBorde said in a statement. The company is yet to
announce a permanent successor.
While Amedisys did not forecast earnings for the rest of the
year, interim Chief Financial Officer Dave Redmond said on a
post-earnings conference call that the company was well poised
to exceed analyst expectations.
"...with the current consensus ... of 16 cents for the year,
we think we are going to handsomely beat that number," he said.
Baton Rouge, Louisiana-based Amedisys said in March, a month
after LaBorde became interim CEO, that it planned to close 29
care centers and consolidate a further 25 with other centers in
the same markets.
In a preview of its second-quarter results released last
month, it said these measures would improve gross margins and
Adjusted net income from continuing operations attributable
to Amedisys rose to $8 million, or 25 cents per share, for the
three months ended June 30 from $5.8 million, or 18 cents, a
Toby Wann, analyst at Obsidian Research Group, called it "a
clean quarter" for Amedisys, with same-store revenue from the
company's home health business returning to growth after several
years of decline.
Amedisys, which says it delivers home health and hospice
care to more than 360,000 patients annually, generated net
service revenue of $305 million in the quarter.
Analysts on average expected the company to earn 4 cents per
share on revenue of $298.9 million, according to Thomson Reuters
The company's stock was up about 17 percent at $18.80 on the
Nasdaq on Wednesday. Over 1 million shares had changed hands by
1230 ET, nearly four time the stock's 10-day moving average.
(Editing by Robin Paxton and Simon Jennings)