Amedisys records $423.7M 3Q loss on charge

BATON ROUGE, La. (AP) — Shares of Amedisys Inc. tumbled more than 23 percent Tuesday after the home health and hospice care provider said an estimated $574.1 million charge led to a third-quarter loss, and the company cut its 2011 earnings forecast again.

The Baton Rouge, La., company also said Chief Operating Officer Mike Snow was leaving and lead director Ronald LaBorde has been named president. LaBorde will become chief financial officer after Jan. 1, when current CFO Dale Redman will become executive vice president and treasurer in anticipation of his retirement during next year's first quarter.

In the third quarter, Amedisys recorded the non-cash impairment charge for goodwill and other intangible assets after performing an interim impairment test.

The company said the charge does not affect liquidity, debt covenants or cash flow from operations.

The company reported a net loss of $423.7 million, or $14.73 per share, in the three months that ended Sept. 30. That compares to earnings of $21.6 million, or 76 cents per share, a year ago.

Adjusted earnings, not counting the charge, were 36 cents per share.

Revenue fell more than 7 percent to $374.9 million from $404.7 million.

Analysts surveyed by FactSet expected, on average, earnings of 50 cents per share on $371.7 million in revenue.

Amedisys said it will not finish its measurement until the fourth quarter, and any adjustments to the estimated charge will be recognized then.

The company now expects 2011 earnings to range from $1.90 to $2 per share. In August, it said it expected annual earnings of $2.20 to $2.40 per share, and that represented a drop from the guidance it issued in April.

Analysts expect earnings of $2.29 per share.

Company shares fell $3.07, or 23.4 percent, to $10.06 in trading Tuesday amid a broad market decline.