Revenue during the quarter grew 10.77 percent to $361.60 million from $326.45 million in the previous year period. Gross margin for the quarter contracted 145 basis points over the previous year period to 41.34 percent. Total expenses were 96.03 percent of quarterly revenues, up from 94.88 percent for the same period last year. That has resulted in a contraction of 115 basis points in operating margin to 3.97 percent.

Operating income for the quarter was $14.36 million, compared with $16.72 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $25.62 million compared with $26.37 million in the prior year period. At the same time, adjusted EBITDA margin contracted 99 basis points in the quarter to 7.09 percent from 8.08 percent in the last year period.

Paul B. Kusserow, president and chief executive officer stated, "I am extremely proud of our organization for their dedication to delivering high-quality, low-cost care to our patients while the company continues to undergo a significant transition. Our employees delivered solid results across all three business segments. As outlined in our earnings preannouncement last week, we did encounter some challenges in home health volumes as well as increased health insurance and bad debt expenses. However, as of October 31, our last group of care centers is live on HomeCare HomeBase, an effort that involved training over 11,000 employees over the course of only 15 months. We are focused on continued growth and delivering on the operational efficiencies we have promised our shareholders. At the same time, we are actively pursuing opportunities to reinvest in our business and deploy capital toward accretive acquisitions. We are extremely excited about the opportunities in front of us as we continue to execute on our strategy."

The company has spent $45.40 million cash to meet investing activities during the nine month period as against cash outgo of $19.86 million in the last year period.

The company has spent $6.88 million cash to carry out financing activities during the nine month period as against cash outgo of $18.86 million in the last year period.

Cash and cash equivalents stood at $8.92 million as on Sep. 30, 2016, down 84.37 percent or $48.14 million from $57.05 million on Sep. 30, 2015.

Working capital drops significantly
Amedisys, Inc. has witnessed a decline in the working capital over the last year. It stood at $11.26 million as at Sep. 30, 2016, down 75.11 percent or $33.97 million from $45.23 million on Sep. 30, 2015. Current ratio was at 1.06 as on Sep. 30, 2016, down from 1.26 on Sep. 30, 2015.

Days sales outstanding went up to 35 days for the quarter compared with 33 days for the same period last year.

At the same time, days payable outstanding was almost stable at 12 days for the quarter, when compared with the previous year period.