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AMED Nasdaq· Amedisys Inc
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AMED Nasdaq· Amedisys Inc
Earnings report Q3 2023

AMED's Revenue Slightly Decreases Amidst Operational Improvements

Segments of revenue

AMED's net service revenue for the three-month period ending September 30, 2023, was $556.2 million, a slight decrease from the $558 million reported in the same period in 2022.

Strengths

Despite the slight decrease in net service revenue, the company's operating income increased by $3 million. This improvement can be attributed to a decrease in the cost of service, inclusive of depreciation, which fell from $322.2 million to $311.6 million. The company also managed to reduce its depreciation and amortization expenses from $5.5 million to $4.4 million.

Challenges

The company faced challenges in the form of increased general and administrative expenses, which rose from $188.4 million to $198 million. Furthermore, the company's effective income tax rate increased from 27% to 32.5%, leading to a higher income tax expense of $12.3 million, up from $9.4 million in the previous year.

Noteworthy

The company's year-over-year results were impacted by merger-related expenses totaling $5 million and higher incentive compensation costs totaling $11 million. The divestiture of the personal care line of business, which contributed $17 million in revenue and operating income of $2 million in the prior year, also affected the results.

Summary

In summary, AMED's latest quarter saw a slight decrease in net service revenue, but the company managed to increase its operating income. The company faced increased general and administrative expenses and a higher effective income tax rate. The divestiture of the personal care line of business and merger-related expenses also impacted the results. Despite these challenges, the company's ability to reduce costs and depreciation expenses demonstrates operational improvements.

Source documents

Form 10-Q  filed on Oct 25, 2023
98 pages scanned

Reference data

Company financials Q3 revenue 571M
Analyst estimates Q3 EPS missed by -9.09%
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