Amedisys Inc., a Baton Rouge-based home health and hospice company, increased its second-quarter earnings to $10.6 million, or 32 cents per share, from $7.6 million, or 24 cents a share, a year earlier.
However, after adjusting for exit and restructuring costs, settling a federal class-action lawsuit involving overtime payments, and an unrealized gain on investment, Amedisys’ second-quarter profit was $14.5 million, or 43 cents per share. A year earlier, Amedisys’ adjusted profit came to $8 million, or 25 cents per share.
Stock analysts surveyed by Zacks Investment Research had forecast earnings of 34 cents per share.
Amedisys spent $8 million during the second quarter to settle the lawsuit, filed in Connecticut. Former and current employees claim the company violated federal law by refusing to pay overtime to home health workers.
Chief Executive Officer Paul Kusserow said the quarter’s highlights included improvements in the hospice business and early results showing improved efficiency from a limited rollout of the company’s new software system.
Amedisys increased the number of hospice patients admitted and revenue while lowering the cost of service, he said. Net service revenue increased $4.8 million to $66.3 million for the quarter. The cost of service grew by $200,000 despite an 11 percent increase in admissions.
Chief Financial Office Ronald LaBorde said the second quarter typically generates higher revenue than the third or fourth quarter. However, Amedisys expects its growth strategy will overcome the usual drops in revenue.
The company’s stock slid nearly 7 percent, or $3.02 per share, to close at $41.13 Wednesday. It’s 52-week trading range is $16.51 to $46.40.
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