Addus HomeCare Announces Third Quarter 2024 Financial Results
Third Quarter 2024 Highlights:
-
Net Service Revenues Increase 7.0% to
$289.8 Million -
Net Income of
$20.2 Million , or$1.10 per Diluted Share -
Adjusted Net Income per Diluted Share Increases 13.0% to
$1.30 -
Adjusted EBITDA Increases 11.1% to
$34.3 Million -
Cash Flow from Operations of
$48.5 Million
Overview
Net service revenues were
For the first nine months of 2024, net service revenues increased 9.6% to
Commenting on the results,
“Our personal care business continued to perform well, accounting for 74.3% of our overall revenues for the third quarter of 2024, with higher patient volumes supported by favorable hiring trends. Personal care has been the key growth driver for Addus this year with consistent year-over-year improvement. For the third quarter of 2024, we delivered 6.8% organic growth in revenue on a same-store basis over the corresponding period last year, reflecting robust demand and favorable reimbursement support across the markets where we operate.
“On the clinical side, our results included the operations of Tennessee Quality Care, a provider of home health, hospice, and private duty nursing services, acquired by Addus on
Cash and Liquidity
As of
Looking Ahead
Allison added, “We will continue to maintain a conservative balance sheet and pursue a capital allocation strategy that brings additional value to our shareholders. Acquisitions represent a significant use of capital for Addus, and we will continue to target operations that are aligned with our overall growth strategy to add clinical services where we have a strong personal care presence. We will also seek opportunities to add operations in select personal care markets where we can enter at scale. In line with this strategy, during the second quarter, we announced a definitive agreement to acquire the personal care operations of Gentiva. These operations deliver personal care services to over 16,000 patients per day in a seven-state service area, including
“As we continue to expand our operations, we are proud of the leadership role we are playing in meeting the critical need for home-based care. We commend the work of our dedicated caregivers across our operations who make this possible for more patients and their families. We are excited about the opportunities ahead to build on our momentum, and we look forward to another successful year for Addus in 2024,” added Allison.
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 gain or loss on sale of assets, impact of retroactive
Conference Call
Addus will host a conference call on
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
About
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
|
|
For the Nine Months
|
||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net service revenues |
$ |
289,787 |
|
$ |
270,721 |
|
$ |
857,455 |
|
$ |
782,300 |
|
|||
Cost of service revenues |
|
197,583 |
|
|
183,991 |
|
|
583,916 |
|
|
534,837 |
|
|||
Gross profit |
|
92,204 |
|
|
86,730 |
|
|
273,539 |
|
|
247,463 |
|
|||
|
31.8 |
% |
|
32.0 |
% |
|
31.9 |
% |
|
31.6 |
% |
||||
General and administrative expenses |
|
62,805 |
|
|
60,271 |
|
|
187,444 |
|
|
174,028 |
|
|||
Depreciation and amortization |
|
3,446 |
|
|
3,620 |
|
|
10,316 |
|
|
10,449 |
|
|||
Total operating expenses |
|
66,251 |
|
|
63,891 |
|
|
197,760 |
|
|
184,477 |
|
|||
Operating income |
|
25,953 |
|
|
22,839 |
|
|
75,779 |
|
|
62,986 |
|
|||
Total interest expense, net |
|
(1,335 |
) |
|
2,619 |
|
|
2,640 |
|
|
7,014 |
|
|||
Income before income taxes |
|
27,288 |
|
|
20,220 |
|
|
73,139 |
|
|
55,972 |
|
|||
Income tax expense |
|
7,125 |
|
|
4,809 |
|
|
19,067 |
|
|
13,034 |
|
|||
Net income |
$ |
20,163 |
|
$ |
15,411 |
|
$ |
54,072 |
|
$ |
42,938 |
|
|||
Net income per diluted share: |
$ |
1.10 |
|
$ |
0.95 |
|
$ |
3.17 |
|
$ |
2.63 |
|
|||
Weighted average number of common shares outstanding: | |||||||||||||||
Diluted |
|
18,255 |
|
|
16,286 |
|
|
17,065 |
|
|
16,307 |
|
|||
Cash Flow Information: |
For the Three Months
|
|
For the Nine Months
|
||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net cash provided by operating activities |
$ |
48,525 |
|
$ |
21,785 |
|
$ |
106,016 |
|
$ |
82,198 |
|
|||
Net cash (used in) investing activities |
|
(1,922 |
) |
|
(111,223 |
) |
|
(124 |
) |
|
(113,934 |
) |
|||
Net cash provided by financing activities |
|
2,944 |
|
|
85,000 |
|
|
52,169 |
|
|
31,525 |
|
|||
Net change in cash |
|
49,547 |
|
|
(4,438 |
) |
|
158,061 |
|
|
(211 |
) |
|||
Cash at the beginning of the period |
|
173,305 |
|
|
84,188 |
|
|
64,791 |
|
|
79,961 |
|
|||
Cash at the end of the period |
$ |
222,852 |
|
$ |
79,750 |
|
$ |
222,852 |
|
$ |
79,750 |
|
|||
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
(Unaudited) |
|||||
|
|
|
|
||
|
|
||||
|
2024 |
|
2023 |
||
Assets | |||||
Current assets | |||||
Cash |
$ |
222,852 |
$ |
79,750 |
|
Accounts receivable, net |
|
96,600 |
|
121,112 |
|
Prepaid expenses and other current assets |
|
13,362 |
|
10,387 |
|
Total current assets |
|
332,814 |
|
211,249 |
|
Property and equipment, net |
|
23,716 |
|
20,516 |
|
Other assets | |||||
|
|
663,614 |
|
662,981 |
|
Intangible assets, net |
|
86,606 |
|
93,799 |
|
Operating lease assets |
|
44,535 |
|
47,183 |
|
Other long-term assets |
|
1,616 |
|
- |
|
Total other assets |
|
796,371 |
|
803,963 |
|
Total assets |
$ |
1,152,901 |
$ |
1,035,728 |
|
Liabilities and stockholders' equity | |||||
Current liabilities | |||||
Accounts payable |
$ |
27,726 |
$ |
21,375 |
|
Accrued payroll |
|
57,982 |
|
51,774 |
|
Accrued expenses |
|
34,257 |
|
34,952 |
|
Operating lease liabilities - current portion |
|
11,155 |
|
11,434 |
|
Government stimulus advance |
|
13,655 |
|
7,836 |
|
Accrued workers compensation |
|
13,043 |
|
12,268 |
|
Total current liabilities |
|
157,818 |
|
139,639 |
|
Long-term debt, less current portion, net of debt issuance costs |
|
- |
|
163,917 |
|
Long-term lease liability, less current portion |
|
38,608 |
|
41,632 |
|
Other long-term liabilities |
|
8,841 |
|
6,206 |
|
Total long-term liabilities |
|
47,449 |
|
211,755 |
|
Total liabilities |
|
205,267 |
|
351,394 |
|
Total stockholders' equity |
|
947,634 |
|
684,334 |
|
Total liabilities and stockholders' equity |
$ |
1,152,901 |
$ |
1,035,728 |
|
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES |
|||||||||||
Net Service Revenue by Segment |
|||||||||||
(Amounts in thousands) |
|||||||||||
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
For the Three Months
|
|
For the Nine Months
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net Service Revenues by Segment | |||||||||||
Personal Care |
$ |
215,433 |
$ |
201,882 |
$ |
636,253 |
$ |
590,227 |
|||
Hospice |
|
57,309 |
|
53,121 |
|
169,202 |
|
152,414 |
|||
|
|
17,045 |
|
15,718 |
|
52,000 |
|
39,659 |
|||
Total Revenue |
$ |
289,787 |
$ |
270,721 |
$ |
857,455 |
$ |
782,300 |
|||
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES |
||||||||||||||||
Key Statistical and Financial Data (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Personal Care | ||||||||||||||||
States served at period end |
|
- |
|
|
- |
|
|
21 |
|
|
21 |
|
||||
Locations at period end |
|
- |
|
|
- |
|
|
153 |
|
|
156 |
|
||||
Average billable census total |
|
37,701 |
|
|
38,590 |
|
|
37,803 |
|
|
38,668 |
|
||||
Billable hours (in thousands) |
|
7,776 |
|
|
7,690 |
|
|
23,098 |
|
|
22,964 |
|
||||
Average billable hours per census per month |
|
68.7 |
|
|
66.3 |
|
|
67.8 |
|
|
65.8 |
|
||||
Billable hours per business day |
|
117,822 |
|
|
118,314 |
|
|
117,849 |
|
|
117,765 |
|
||||
Revenues per billable hour |
$ |
27.66 |
|
$ |
26.18 |
|
$ |
27.49 |
|
$ |
25.58 |
|
||||
Organic growth | ||||||||||||||||
- Revenue |
|
6.8 |
% |
|
13.9 |
% |
|
8.4 |
% |
|
12.5 |
|
||||
Hospice | ||||||||||||||||
Locations served at period end |
|
- |
|
|
- |
|
|
38 |
|
|
40 |
|
||||
Admissions |
|
3,105 |
|
|
3,176 |
|
|
9,771 |
|
|
9,576 |
|
||||
Average daily census |
|
3,534 |
|
|
3,453 |
|
|
3,457 |
|
|
3,426 |
|
||||
Average discharge length of stay |
|
96.3 |
|
|
97.5 |
|
|
92.8 |
|
|
93.2 |
|
||||
Patient days |
|
325,160 |
|
|
311,454 |
|
|
947,241 |
|
|
892,507 |
|
||||
Revenue per patient day |
$ |
176.25 |
|
$ |
175.19 |
|
$ |
179.43 |
|
$ |
175.23 |
|
||||
Organic growth | ||||||||||||||||
- Revenue |
|
3.5 |
% |
|
3.1 |
% |
|
5.2 |
% |
|
1.5 |
|
||||
- Average daily census |
|
2.1 |
% |
|
(0.9 |
)% |
|
0.8 |
% |
|
0.8 |
|
||||
|
||||||||||||||||
Locations served at period end |
|
- |
|
|
- |
|
|
23 |
|
|
24 |
|
||||
New Admissions |
|
4,437 |
|
|
4,265 |
|
|
14,257 |
|
|
11,597 |
|
||||
Recertifications |
|
3,353 |
|
|
2,672 |
|
|
9,798 |
|
|
5,816 |
|
||||
Total Volume |
|
7,790 |
|
|
6,937 |
|
|
24,055 |
|
|
17,413 |
|
||||
Visits |
|
104,730 |
|
|
94,637 |
|
|
322,713 |
|
|
240,758 |
|
||||
Organic growth | ||||||||||||||||
- Revenue |
|
(1.7 |
)% |
|
(8.8 |
)% |
|
(5.4 |
)% |
|
(2.5 |
) |
||||
- New admissions |
|
(5.7 |
)% |
|
(18.9 |
)% |
|
(0.3 |
)% |
|
(13.5 |
) |
||||
- Volume |
|
(3.7 |
)% |
|
(14.3 |
)% |
|
(0.4 |
)% |
|
(9.3 |
) |
||||
Percentage of Revenues by Payor: | ||||||||||||||||
Personal Care | ||||||||||||||||
State, local and other governmental programs |
|
54.2 |
% |
|
50.4 |
% |
|
53.0 |
% |
|
50.4 |
|
||||
Managed care organizations |
|
43.3 |
|
|
46.4 |
|
|
44.3 |
|
|
46.2 |
|
||||
Private duty |
|
1.7 |
|
|
2.0 |
|
|
1.8 |
|
|
2.1 |
|
||||
Commercial |
|
0.7 |
|
|
0.8 |
|
|
0.7 |
|
|
0.8 |
|
||||
Other |
|
0.1 |
% |
|
0.4 |
% |
|
0.2 |
% |
|
0.5 |
|
||||
Hospice | ||||||||||||||||
Medicare |
|
91.5 |
% |
|
89.1 |
% |
|
91.1 |
% |
|
90.2 |
|
||||
Commercial |
|
5.0 |
|
|
6.8 |
|
|
5.2 |
|
|
5.8 |
|
||||
Managed care organizations |
|
3.2 |
|
|
3.4 |
|
|
3.3 |
|
|
3.3 |
|
||||
Other |
|
0.3 |
% |
|
0.7 |
% |
|
0.4 |
% |
|
0.7 |
|
||||
|
||||||||||||||||
Medicare |
|
70.6 |
% |
|
72.1 |
% |
|
69.6 |
% |
|
73.9 |
|
||||
Managed care organizations |
|
24.7 |
|
|
21.9 |
|
|
25.6 |
|
|
20.8 |
|
||||
Commercial |
|
4.5 |
|
|
4.2 |
|
|
4.2 |
|
|
4.3 |
|
||||
Other |
|
0.2 |
% |
|
1.8 |
% |
|
0.6 |
% |
|
1.0 |
|
||||
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
(Amounts in thousands, except per share data) |
||||||||||||||||
(Unaudited) (1) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
For the Three Months
|
|
For the Nine Months
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Reconciliation of Adjusted EBITDA to Net Income: (1) | ||||||||||||||||
Net income |
$ |
20,163 |
|
$ |
15,411 |
|
$ |
54,072 |
|
$ |
42,938 |
|
||||
Interest expense, net |
|
(1,335 |
) |
|
2,619 |
|
|
2,640 |
|
|
7,014 |
|
||||
(Gain) Loss on sale of assets |
|
(8 |
) |
|
(1 |
) |
|
(13 |
) |
|
(5 |
) |
||||
Income tax expense |
|
7,125 |
|
|
4,809 |
|
|
19,067 |
|
|
13,034 |
|
||||
Depreciation and amortization |
|
3,446 |
|
|
3,620 |
|
|
10,316 |
|
|
10,449 |
|
||||
Impact of retroactive |
|
- |
|
|
- |
|
|
- |
|
|
(868 |
) |
||||
Acquisition expenses |
|
2,072 |
|
|
1,763 |
|
|
7,647 |
|
|
4,792 |
|
||||
Stock-based compensation expense |
|
2,833 |
|
|
2,572 |
|
|
8,307 |
|
|
7,831 |
|
||||
Restructure and other non-recurring costs |
|
- |
|
|
72 |
|
|
- |
|
|
242 |
|
||||
Adjusted EBITDA |
$ |
34,296 |
|
$ |
30,865 |
|
$ |
102,036 |
|
$ |
85,427 |
|
||||
Reconciliation of Adjusted Net Income to Net Income: (2) | ||||||||||||||||
Net income |
$ |
20,163 |
|
$ |
15,411 |
|
$ |
54,072 |
|
$ |
42,938 |
|
||||
(Gain) Loss on sale of assets |
|
(8 |
) |
|
(1 |
) |
|
(13 |
) |
|
(5 |
) |
||||
Impact of retroactive |
|
- |
|
|
- |
|
|
- |
|
|
(868 |
) |
||||
Acquisition expenses |
|
2,072 |
|
|
1,763 |
|
|
7,647 |
|
|
4,792 |
|
||||
Stock-based compensation expense |
|
2,833 |
|
|
2,572 |
|
|
8,307 |
|
|
7,831 |
|
||||
Restructure and other non-recurring costs |
|
- |
|
|
72 |
|
|
- |
|
|
242 |
|
||||
Tax Effect |
|
(1,280 |
) |
|
(1,048 |
) |
|
(4,156 |
) |
|
(2,793 |
) |
||||
Adjusted Net Income |
$ |
23,780 |
|
$ |
18,769 |
|
$ |
65,857 |
|
$ |
52,137 |
|
||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3) | ||||||||||||||||
Net income per diluted share |
$ |
1.10 |
|
$ |
0.95 |
|
$ |
3.17 |
|
$ |
2.63 |
|
||||
Impact of retroactive |
|
- |
|
|
- |
|
|
- |
|
|
(0.04 |
) |
||||
Acquisition expenses per diluted share |
|
0.08 |
|
|
0.08 |
|
|
0.33 |
|
|
0.23 |
|
||||
Restructure and other non-recurring costs per diluted share |
|
- |
|
|
- |
|
|
- |
|
|
0.01 |
|
||||
Stock-based compensation expense per diluted share |
|
0.12 |
|
|
0.12 |
|
|
0.36 |
|
|
0.37 |
|
||||
Adjusted net income per diluted share |
$ |
1.30 |
|
$ |
1.15 |
|
$ |
3.86 |
|
$ |
3.20 |
|
||||
Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) | ||||||||||||||||
Net service revenues |
$ |
289,787 |
|
$ |
270,721 |
|
$ |
857,455 |
|
$ |
782,300 |
|
||||
Revenues associated with the closure of certain sites |
|
- |
|
|
(259 |
) |
|
- |
|
|
(1,833 |
) |
||||
Adjusted net service revenues |
$ |
289,787 |
|
$ |
270,462 |
|
$ |
857,455 |
|
$ |
780,467 |
|
||||
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 |
||||||||||||||||
(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 |
||||||||||||||||
(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 |
||||||||||||||||
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104677875/en/
Executive Vice President, Chief Financial Officer
(469) 535-8200
investorrelations@addus.com
(615) 324-7346
dru.anderson@finnpartners.com
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