Amedisys, Inc., a nationwide home health and hospice company, saw a drop of nearly 42 percent in net income in its fourth quarter, the company reported Tuesday.
For the three-month period ending Dec. 31, 2010, net income was $22.1 million compared to $37.8 million in 2009, a drop of 41.5 percent. Year-end net income for 2010 decreased by 17.1 percent, from $135.8 million in 2009 to $112.6 million.
Net service revenue decreased in the fourth quarter by 2.8 percent, from $405.5 million in the same period in 2009 to $394.3 million. Net service revenue for the year ending Dec. 31, 2010, increased to $1.6 billion compared to $1.5 billion in 2009.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 33.2 percent in the fourth quarter to $47.6 million from $71.3 million. Year-end EBITDA was $228.2 million in 2010 compared to $261.8 million in 2009.
“We responded to a number of operational issues in 2010,” said William F. Borne, Amedisys’ chief executive officer, in a press release announcing the financial results. “Many of the actions we initiated in the third quarter contributed to the improved earnings in the fourth quarter and will continue to have a positive impact in 2011.”
Amedisys anticipates net service revenue between $1.6 and $1.65 billion in 2011 and diluted earnings per share between $3 and $3.30 based on an estimated 29.3 million shares outstanding.