Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home
care services, today announced its financial results for the second
quarter and six months ended June 30, 2024.
Second Quarter 2024 Highlights:
- Net Service Revenues Increased 10.4% to $286.9 Million
- Net Income of $18.1 Million, or $1.10 per Diluted Share
- Adjusted Net Income per Diluted Share Increased to $1.35
- Adjusted EBITDA Increased 24.7% to $35.3 Million
- Cash Flow from Operations of $18.8 Million
- Announced a Definitive Agreement to Acquire the Personal Care
Operations of Gentiva
- Announced a Definitive Agreement to Sell the Company’s New York
Operations
- Completed a Public Offering of 1,725,000 Shares of Common Stock
for net proceeds of approximately $176.1 million
Overview
Net service revenues were $286.9 million for the second quarter
of 2024, a 10.4% increase compared with $260.0 million for the
second quarter of 2023. Net income was $18.1 million for the second
quarter of 2024, compared with $14.9 million for the second quarter
of 2023, while net income per diluted share was $1.10 compared with
$0.91 for the same period a year ago. Adjusted EBITDA increased
24.7% to $35.3 million for the second quarter of 2024 from $28.3
million for the second quarter of 2023. Adjusted net income per
diluted share was $1.35 for the second quarter of 2024 compared
with $1.07 for the second quarter of 2023. Adjusted net income per
diluted share for the second quarter of 2024 excludes acquisition
expenses of $0.13 and stock-based compensation expense of $0.12
(See the end of press release for a reconciliation of all non-GAAP
and GAAP financial measures.)
For the first six months of 2024, net service revenues increased
11.0% to $567.7 million from $511.6 million for the prior-year
period. Net income was $33.9 million for the first six months of
2024 compared with $27.5 million for the same period in 2023, and
net income per diluted share was $2.06 compared with $1.69 per
diluted share. Adjusted EBITDA increased 24.2% to $67.7 million for
the first six months of 2024 from $54.6 million for the first six
months of 2023. Adjusted net income was $42.1 million for the first
six months of 2024 compared with $33.4 million for the first six
months of 2023, while adjusted net income per diluted share was
$2.56 compared with $2.05 for the prior-year period.
Commenting on the results, Dirk Allison, Chairman and Chief
Executive Officer, said, “Addus delivered another strong financial
and operating performance for the second quarter of 2024,
demonstrating consistent execution of our growth strategy. Our
results were highlighted by top line revenue growth of 10.4% and
adjusted EBITDA growth of 24.7% over the same period last year. The
growing recognition of the value and cost-effectiveness of
home-based care has supported robust demand for our services. Addus
is well positioned to meet this demand as we continue to expand our
market coverage and leverage our proven operating model across the
continuum of home-based care. Our team has done an exceptional job
in providing quality care for a growing number of patients and
clients in the home, while allowing us to deliver consistent
financial results.
“Our strong organic growth was led by our personal care
services, which accounted for 74.2% of our revenues for the second
quarter. On a same-store basis, personal care revenues increased
8.8% over the same period last year, reflecting both higher volumes
and rate increases in key markets. We also benefitted from a stable
labor environment, and we continued to see our investments in
hiring and onboarding processes contribute to a higher number of
billable hours.
“Our second quarter 2024 results included the operations from
Tennessee Quality Care, a provider of home health, hospice, and
private duty nursing services, which we acquired August 1, 2023.
Our hospice care business, which contributed 19.5% of our revenues
for the second quarter, has shown steady improvement with 6.3%
organic revenue growth and higher admissions, patient days, and
revenue per patient day compared with the second quarter of last
year. We are also pleased that our home health business, which is
our smallest segment, returned to positive growth trends with
higher same-store revenue, admissions and volumes compared with the
second quarter of 2023,” added Allison.
Acquisitions Support Continued Growth
“In addition to our strong organic growth opportunities,
acquisitions represent a key driver in expanding our market reach.
In the second quarter, we announced a definitive agreement to
acquire the personal care operations of Gentiva for an anticipated
purchase price, after customary purchase price adjustments, of
approximately $350.0 million. Based in Atlanta, Georgia, Gentiva
provides personal care services to over 16,000 patients per day in
a seven-state service area of Texas, Arkansas, Missouri,
California, Arizona, Tennessee and North Carolina. We expect to
close the transaction in the fourth quarter of 2024, following the
completion of regulatory approvals and subject to customary closing
conditions.
“The Gentiva acquisition fits squarely into our growth strategy
to leverage our strong personal care experience to build scale in
existing markets as well as enter select new markets where we can
immediately establish a significant presence. We are excited about
the opportunity to expand our personal care market coverage in
seven states, including Texas and Missouri, which are new markets
for Addus, and where we will be the largest provider in Texas. We
will also continue to look for accretive operations that provide
the opportunity to add complementary clinical services. As we add
more coverage density in select markets, we have the ability to
participate in additional value-based contracting models, as payors
continue to recognize the cost benefits and high quality of our
home-based care services.
“Following the recently announced divestiture of our New York
operations, where our ability to pursue our strategy to develop
multiple levels of care was substantially limited, we look forward
to continuing to pursue acquisition growth opportunities in markets
that are consistent with our strategic vision,” added Allison.
Cash and Liquidity
As of June 30, 2024, the Company had cash of $173.3 million,
with capacity and availability under its revolving credit facility
of $504.4 million and $496.4 million, respectively. Net cash
provided by operating activities was $18.8 million for the second
quarter of 2024.
On June 28, 2024, the Company completed a public offering of
1,725,000 shares of common stock at $108.00 per share. The net
proceeds from the offering to Addus, after deducting underwriting
discounts and commissions and estimated offering expenses, were
approximately $176.1 million. The Company used approximately $81.4
million of the net proceeds for the repayment of all indebtedness
outstanding under its credit facility and the remainder will be
used for general corporate purposes, including funding the Gentiva
acquisition and any future acquisitions or investments.
Looking Ahead
Allison added, “We are pleased with the momentum in our
business, supported by the growing demand for our home-based care
services as more consumers and families depend on Addus to receive
safe, quality care in the preferred setting of their home. We are
fortunate to have a great team of dedicated caregivers who support
our mission and represent Addus in the marketplace. They are the
reason for our success and provide us with confidence in our future
growth. Together, we look forward to the opportunities before us to
extend our reach to support more clients and patients with the care
our services provide.”
Non-GAAP Financial Measures
The information provided in this release includes adjusted net
income, adjusted EBITDA, and adjusted net income per diluted share,
which are non-GAAP financial measures. The Company defines adjusted
net income as net income before acquisition expenses, stock-based
compensation expenses, restructure and other non-recurring costs
and retroactive rate increases from New York. The Company defines
adjusted EBITDA as earnings before interest expense, other
non-operating income, taxes, depreciation, amortization,
acquisition expense, stock-based compensation expense, restructure
and other non-recurring costs and retroactive rate increases from
New York. The Company defines adjusted net income per diluted share
as net income per share, adjusted for acquisition expenses,
stock-based compensation expense, restructure and other
non-recurring costs, and retroactive rate increases from New York.
The Company defines adjusted net service revenues as revenue
adjusted for the closure of certain sites. The Company has
provided, in the financial statement tables included in this press
release, a reconciliation of adjusted net income to net income, a
reconciliation of adjusted EBITDA to net income, a reconciliation
of adjusted diluted net income per share to net income per share,
and a reconciliation of adjusted net service revenues to net
service revenues, in each case, the most directly comparable GAAP
measure. Management believes that adjusted net income, adjusted
EBITDA, adjusted diluted net income per share, and adjusted net
service revenues are useful to investors, management and others in
evaluating the Company’s operating performance, to provide
investors with insight and consistency in the Company’s financial
reporting and to present a basis for comparison of the Company’s
business operations among periods, and to facilitate comparison
with the results of the Company’s peers.
Conference Call
Addus will host a conference call on Tuesday, August 6, 2024, at
9:00 a.m. Eastern time. To access the live call, dial
(833-629-0620) (international dial-in number is (412-317-1805) and
ask to join the Addus HomeCare earnings call. A telephonic replay
of the conference call will be available through midnight on August
13, 2024, by dialing (877) 344-7529 (international dial-in number
is (412) 317-0088) and entering pass code 4781847.
A live broadcast of Addus HomeCare’s conference call will be
available under the Investor Relations section of the Company’s
website: www.addus.com. An online replay will also be available on
the Company’s website for one month, beginning approximately two
hours following the conclusion of the live broadcast.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by words such as “preliminary,”
“continue,” “expect,” and similar expressions. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Forward-looking statements involve a number of risks
and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including discretionary determinations by government
officials, the consummation and integration of acquisitions,
transition to managed care providers, our ability to successfully
execute our growth strategy, unexpected increases in SG&A and
other expenses, expected benefits and unexpected costs of
acquisitions and dispositions, management plans related to
dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as
expected, changes in reimbursement, changes in government
regulations, changes in Addus HomeCare’s relationships with
referral sources, increased competition for Addus HomeCare’s
services, changes in the interpretation of government regulations,
the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates, the impact of adverse
weather, higher than anticipated costs, lower than anticipated cost
savings, estimation inaccuracies in future revenues, margins,
earnings and growth, whether any anticipated receipt of payments
will materialize, any security breaches, cyber-attacks, loss of
data or cybersecurity threats or incidents, and other risks set
forth in the Risk Factors section in Addus HomeCare’s Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
February 27, 2024, which is available at www.sec.gov. The financial
information described herein and the periods to which they relate
are preliminary estimates that are subject to change and
finalization. There is no assurance that the final amounts and
adjustments will not differ materially from the amounts described
above, or that additional adjustments will not be identified, the
impact of which may be material. Addus HomeCare undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
In addition, these forward-looking statements necessarily depend
upon assumptions, estimates and dates that may be incorrect or
imprecise and involve known and unknown risks, uncertainties, and
other factors. Accordingly, any forward-looking statements included
in this press release do not purport to be predictions of future
events or circumstances and may not be realized. (Unaudited tables
and notes follow).
About Addus HomeCare
Addus HomeCare is a provider of home care services that
primarily include personal care services that assist with
activities of daily living, as well as hospice and home health
services. Addus HomeCare’s consumers are primarily persons who,
without these services, are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and
disabled. Addus HomeCare’s payor clients include federal, state,
and local governmental agencies, managed care organizations,
commercial insurers, and private individuals. Addus HomeCare
currently provides home care services to approximately 49,500
consumers through 214 locations across 22 states. For more
information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed
Consolidated Statements of Income (amounts and shares in
thousands, except per share data) (Unaudited)
Income Statement Information:
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Net service revenues
$
286,922
$
259,980
$
567,668
$
511,579
Cost of service revenues
193,764
177,662
386,333
350,846
Gross profit
93,158
82,318
181,335
160,733
32.5
%
31.7
%
31.9
%
31.4
%
General and administrative expenses
63,576
57,397
124,639
113,757
Depreciation and amortization
3,401
3,382
6,870
6,829
Total operating expenses
66,977
60,779
131,509
120,586
Operating income
26,181
21,539
49,826
40,147
Total interest expense, net
1,640
2,040
3,975
4,395
Income before income taxes
24,541
19,499
45,851
35,752
Income tax expense
6,462
4,647
11,942
8,225
Net income
$
18,079
$
14,852
$
33,909
$
27,527
Net income per diluted share:
$
1.10
$
0.91
$
2.06
$
1.69
Weighted average number of common shares outstanding:
Diluted
16,498
16,283
16,449
16,304
Cash Flow Information:
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Net cash provided by operating activities
$
18,813
$
41,614
$
57,491
$
60,413
Net cash provided by (used in) investing activities
3,548
(969
)
1,798
(2,711
)
Net cash provided by (used in) financing activities
74,225
(30,000
)
49,225
(53,475
)
Net change in cash
96,586
10,645
108,514
4,227
Cash at the beginning of the period
76,719
73,543
64,791
79,961
Cash at the end of the period
$
173,305
$
84,188
$
173,305
$
84,188
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed
Consolidated Balance Sheets (Amounts in thousands)
(Unaudited)
June 30,
2024
2023
Assets Current assets
Cash
$
173,305
$
84,188
Accounts receivable, net
109,195
104,252
Prepaid expenses and other current assets
12,488
19,350
Total current assets
294,988
207,790
Property and equipment, net
23,381
19,607
Other assets Goodwill
663,851
583,656
Intangible assets, net
88,398
68,859
Operating lease assets
44,145
48,472
Other long-term assets
1,791
-
Total other assets
798,185
700,987
Total assets
$
1,116,554
$
928,384
Liabilities and stockholders'
equity Current liabilities Accounts payable
$
20,188
$
20,699
Accrued payroll
55,102
47,795
Accrued expenses
35,633
31,966
Operating lease liabilities - current portion
11,224
11,334
Government stimulus advance
13,000
9,959
Accrued workers compensation
12,385
12,149
Total current liabilities
147,532
133,902
Long-term debt, less current portion, net of debt issuance
costs
-
78,702
Long-term lease liability, less current portion
38,359
43,214
Other long-term liabilities
9,008
6,215
Total long-term liabilities
47,367
128,131
Total liabilities
194,899
262,033
Total stockholders' equity
921,655
666,351
Total liabilities and stockholders' equity
$
1,116,554
$
928,384
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Net Service
Revenue by Segment (Amounts in thousands)
(Unaudited)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Net Service Revenues by Segment Personal Care
$
212,817
$
198,314
$
420,820
$
388,346
Hospice
56,030
50,210
111,893
99,292
Home Health
18,075
11,456
34,955
23,941
Total Revenue
$
286,922
$
259,980
$
567,668
$
511,579
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key
Statistical and Financial Data (Unaudited) Key Statistical and Financial Data (Unaudited)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Personal Care States served at period
end
-
-
21
21
Locations at period end
-
-
153
157
Average billable census total
37,993
39,099
37,854
38,707
Billable hours (in thousands)
7,732
7,681
15,322
15,274
Average billable hours per census per month
67.7
65.3
67.4
65.6
Billable hours per business day
118,956
118,177
117,862
117,491
Revenues per billable hour
$
27.47
$
25.57
$
27.41
$
25.27
Organic growth - Revenue
8.8
%
12.6
%
9.3
%
11.7
%
Hospice Locations served at period end
-
-
38
34
Admissions
3,194
3,076
6,666
6,400
Average daily census
3,477
3,225
3,418
3,210
Average discharge length of stay
92.6
94.4
91.1
90.9
Patient days
316,451
293,502
622,081
581,053
Revenue per patient day
$
179.47
$
174.32
$
181.10
$
175.26
Organic growth - Revenue
6.3
%
(1.1
)%
6.1
%
0.5
%
- Average daily census
1.7
%
(3.2
)%
0.4
%
1.4
%
Home Health Locations served at period end
-
-
23
13
New Admissions
4,933
3,439
9,820
7,332
Recertifications
3,277
1,595
6,445
3,144
Total Volume
8,210
5,034
16,265
10,476
Visits
111,053
68,293
217,984
146,121
Organic growth - Revenue
1.6
%
(10.9
)%
(7.1
)%
0.7
%
- New admissions
9.4
%
(17.5
)%
2.3
%
(10.5
)%
- Volume
6.9
%
(11.8
)%
1.7
%
(10.9
)%
Percentage of Revenues by Payor: Personal
Care State, local and other governmental programs
53.1
%
50.6
%
52.5
%
50.4
%
Managed care organizations
44.2
46.0
44.8
46.1
Private duty
1.7
2.2
1.8
2.2
Commercial
0.7
0.8
0.7
0.9
Other
0.3
%
0.4
%
0.2
%
0.4
%
Hospice Medicare
91.2
%
90.7
%
91.0
%
90.8
%
Commercial
5.1
5.4
5.3
5.3
Managed care organizations
3.4
3.1
3.3
3.2
Other
0.3
%
0.8
%
0.4
%
0.7
%
Home Health Medicare
69.3
%
76.1
%
69.2
%
75.1
%
Managed care organizations
25.9
19.6
26.0
20.0
Commercial
4.2
3.8
4.1
4.5
Other
0.6
%
0.5
%
0.7
%
0.4
%
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Amounts in
thousands, except per share data) (Unaudited) (1)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Reconciliation of Adjusted EBITDA to Net Income: (1)
Net income
$
18,079
$
14,852
$
33,909
$
27,527
Interest expense, net
1,640
2,040
3,975
4,395
(Gain) on sale of assets
(5
)
(3
)
(5
)
(3
)
Income tax expense
6,462
4,647
11,942
8,225
Depreciation and amortization
3,401
3,382
6,870
6,829
Impact of retroactive New York rate increase
-
(1,090
)
-
(868
)
Acquisition expenses
2,864
1,782
5,575
3,029
Stock-based compensation expense
2,856
2,613
5,474
5,259
Restructure and other non-recurring costs
-
75
-
170
Adjusted EBITDA
$
35,297
$
28,298
$
67,740
$
54,563
Reconciliation of Adjusted Net Income to Net
Income: (2) Net income
$
18,079
$
14,852
$
33,909
$
27,527
(Gain) on sale of assets
(5
)
(3
)
(5
)
(3
)
Impact of retroactive New York rate increase
-
(1,090
)
-
(868
)
Acquisition expenses
2,864
1,782
5,575
3,029
Stock-based compensation expense
2,856
2,613
5,474
5,259
Restructure and other non-recurring costs
-
75
-
170
Tax Effect
(1,506
)
(819
)
(2,876
)
(1,745
)
Adjusted Net Income
$
22,288
$
17,410
$
42,077
$
33,369
Reconciliation of Net Income per Diluted Share to
Adjusted Net Income per Diluted Share: (3) Net income
per diluted share
$
1.10
$
0.91
$
2.06
$
1.69
Impact of retroactive New York rate increase per diluted
share
-
(0.05
)
-
(0.04
)
Acquisition expenses per diluted share
0.13
0.08
0.25
0.14
Restructure and other non-recurring costs per diluted share
-
-
-
0.01
Stock-based compensation expense per diluted share
0.12
0.13
0.25
0.25
Adjusted net income per diluted share
$
1.35
$
1.07
$
2.56
$
2.05
Reconciliation of Net Service Revenues to Adjusted Net
Service Revenues: (4) Net service revenues
$
286,922
$
259,980
$
567,668
$
511,579
Revenues associated with the closure of certain sites
-
(542
)
-
(1,066
)
Adjusted net service revenues
$
286,922
$
259,438
$
567,668
$
510,513
Footnotes: (1) We define Adjusted EBITDA as earnings
before net interest expense, income tax expense, depreciation and
amortization, acquisition expenses, stock-based compensation
expense, restructure expenses and other non-recurring costs, gain
on the sale of assets, and retroactive rate increases from New
York. Adjusted EBITDA is a performance measure used by management
that is not calculated in accordance with generally accepted
accounting principles in the United States (GAAP). It should not be
considered in isolation or as a substitute for net income,
operating income or any other measure of financial performance
calculated in accordance with GAAP. (2) We define Adjusted
Net Income as net income before acquisition expenses, stock-based
compensation expense, restructure and other non-recurring costs,
gain on the sale of assets, and retroactive rate increases from New
York. Adjusted Net Income is a performance measure used by
management that is not calculated in accordance with generally
accepted accounting principles in the United States (GAAP). It
should not be considered in isolation or as a substitute for net
income, operating income or any other measure of financial
performance calculated in accordance with GAAP. (3) We
define Adjusted diluted earnings per share as earnings per share,
adjusted for acquisition expenses, stock-based compensation expense
and restructure and other non-recurring costs, gain on the sale of
assets, and retroactive rate increases from New York. Adjusted
diluted earnings per share is a performance measure used by
management that is not calculated in accordance with generally
accepted accounting principles in the United States (GAAP). It
should not be considered in isolation or as a substitute for net
income, operating income or any other measure of financial
performance calculated in accordance with GAAP. (4) We
define Adjusted net service revenues as revenue adjusted for the
closure of certain sites. Adjusted net service revenues is a
performance measure used by management that is not calculated in
accordance with generally accepted accounting principles in the
United States (GAAP). It should not be considered in isolation or
as a substitute for net income, operating income or any other
measure of financial performance calculated in accordance with
GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805528942/en/
Brian W. Poff Executive Vice President, Chief Financial Officer
Addus HomeCare Corporation (469) 535-8200
investorrelations@addus.com
Dru Anderson FINN Partners (615) 324-7346
dru.anderson@finnpartners.com
Addus HomeCare (NASDAQ:ADUS)
過去 株価チャート
から 10 2024 まで 11 2024
Addus HomeCare (NASDAQ:ADUS)
過去 株価チャート
から 11 2023 まで 11 2024
