Addus HomeCare Announces First Quarter 2024 Financial Results
Addus HomeCare (NASDAQ: ADUS) announced its first quarter 2024 financial results, showing an 11.6% revenue growth to $280.7 million. Net income was $15.8 million, with adjusted net income per diluted share increasing to $1.21. Adjusted EBITDA rose by 24.6% to $32.4 million. The company is focused on strategic growth, investing in acquisitions, and maintaining a strong financial position.
Revenue growth of 11.6% to $280.7 million in the first quarter of 2024.
Net income of $15.8 million, with adjusted net income per diluted share reaching $1.21.
Adjusted EBITDA increased by 24.6% to $32.4 million.
Strong cash flow from operations, reducing revolver balance by $25.0 million.
Focus on making strategic acquisitions to enhance current services and drive growth.
- None.
Insights
Reviewing the recent financial results of Addus HomeCare, one observes a robust upsurge in revenues, escalating
Oftentimes, investors pay close attention to EBITDA as it strips out non-operating expenses to gauge a company's financial health. The
Strong cash flow is the lifeblood of sustainable growth and solvency. The reported cash flow from operations at
From an investment perspective, increased dividends or share buybacks could become a reality if the company continues on this trajectory of generating robust cash flows. Moreover, the strategic focus on acquisitions could signal anticipated growth, though this should be approached with caution as integration risks can impact future earnings.
Delving into the specifics of Addus HomeCare's operations, one must appreciate the relevance of their personal care segment, comprising
The inclusion of Tennessee Quality Care's operations sheds light on the strategic moves made by the company to solidify its market presence. The
It's also worth noting the significance of the rate increase as of October 1, 2023, which serves to fuel profitability in a cost-intensive industry. The emphasis on value-based contracting models is another strategic pivot, aligning with industry-wide shifts towards outcome-based reimbursement models that could provide more predictable and sustainable revenue streams.
First Quarter 2024 Highlights:
-
Revenues Grow
11.6% to$280.7 Million -
Net Income of
$15.8 Million $0.97 -
Adjusted Net Income per Diluted Share Increases to
$1.21 -
Adjusted EBITDA Increases
24.6% to$32.4 Million -
Cash Flow from Operations of
$38.7 Million
Overview
Net service revenues were
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “We are pleased to report a great start for Addus in 2024, delivering a strong financial and operating performance as we continued to build momentum as a leading provider of home-based care services. With solid execution, we achieved impressive top-line growth with overall revenues up
“Our personal care segment, which accounted for
“Our first quarter 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. We were pleased to see continued steady improvement in our hospice care business, with organic revenue growth of
Cash and Liquidity
As of March 31, 2024, the Company had cash of
Looking Ahead
Allison continued, “We have continued to generate strong cash flow from operations, allowing us to further reduce our revolver balance by
“We are pleased with the favorable trends in our business, reflecting the consistently growing demand for our home-based care services. We are extremely proud of the important work we are doing to allow more patients to receive safe, quality care in their preferred setting of their home. Our success as a provider is due to the dedicated caregivers who represent Addus in the marketplace, and we are grateful for the outstanding care they are providing to patients and families. We look forward to the opportunities ahead for Addus in 2024 as we extend our market reach and deliver greater value for our shareholders,” 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 acquisition expenses, stock-based compensation expenses, and restructure and other non-recurring costs. The Company defines adjusted EBITDA as earnings before interest expense, other non-operating income, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, and restructure and other non-recurring costs. The Company defines adjusted net income per diluted share as net income per share, adjusted for acquisition expenses, stock-based compensation expense, and restructure and other non-recurring costs. 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, May 7, 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 May 14, 2024, by dialing (877) 344-7529 (international dial-in number is (412) 317-0088) and entering pass code 2638095.
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 over 49,000 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 March 31, | ||||||
2024 |
2023 |
||||||
| Net service revenues | $ |
280,746 |
|
$ |
251,599 |
|
|
| Cost of service revenues |
|
192,569 |
|
|
173,184 |
|
|
| Gross profit |
|
88,177 |
|
|
78,415 |
|
|
|
31.4 |
% |
|
31.2 |
% |
||
| General and administrative expenses |
|
61,063 |
|
|
56,360 |
|
|
| Depreciation and amortization |
|
3,469 |
|
|
3,447 |
|
|
| Total operating expenses |
|
64,532 |
|
|
59,807 |
|
|
| Operating income from continuing operations |
|
23,645 |
|
|
18,608 |
|
|
| Total interest expense, net |
|
2,335 |
|
|
2,355 |
|
|
| Income before income taxes |
|
21,310 |
|
|
16,253 |
|
|
| Income tax expense |
|
5,480 |
|
|
3,578 |
|
|
| Net income | $ |
15,830 |
|
$ |
12,675 |
|
|
| Net income per diluted share: | $ |
0.97 |
|
$ |
0.78 |
|
|
| Weighted average number of common shares outstanding: | |||||||
| Diluted |
|
16,373 |
|
|
16,297 |
|
|
| Cash Flow Information: | For the Three Months Ended March 31, | ||||||
2024 |
2023 |
||||||
| Net cash provided by operating activities | $ |
38,678 |
|
$ |
18,799 |
|
|
| Net cash used in investing activities |
|
(1,750 |
) |
|
(1,742 |
) |
|
| Net cash used in financing activities |
|
(25,000 |
) |
|
(23,475 |
) |
|
| Net change in cash |
|
11,928 |
|
|
(6,418 |
) |
|
| Cash at the beginning of the period |
|
64,791 |
|
|
79,961 |
|
|
| Cash at the end of the period | $ |
76,719 |
|
$ |
73,543 |
|
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Amounts in thousands) | |||||
| (Unaudited) | |||||
| March 31, | |||||
2024 |
2023 |
||||
| Assets | |||||
| Current assets | |||||
| Cash | $ |
76,719 |
$ |
73,543 |
|
| Accounts receivable, net |
|
104,727 |
|
125,441 |
|
| Prepaid expenses and other current assets |
|
10,401 |
|
10,226 |
|
| Total current assets |
|
191,847 |
|
209,210 |
|
| Property and equipment, net |
|
23,872 |
|
20,248 |
|
| Other assets | |||||
| Goodwill |
|
663,391 |
|
583,972 |
|
| Intangible assets, net |
|
90,191 |
|
70,604 |
|
| Operating lease assets |
|
44,699 |
|
47,049 |
|
| Total other assets |
|
798,281 |
|
701,625 |
|
| Total assets | $ |
1,014,000 |
$ |
931,083 |
|
| Liabilities and stockholders' equity | |||||
| Current liabilities | |||||
| Accounts payable | $ |
22,022 |
$ |
21,758 |
|
| Accrued payroll |
|
44,022 |
|
34,105 |
|
| Accrued expenses |
|
38,772 |
|
34,018 |
|
| Operating lease liabilities, current portion |
|
11,307 |
|
11,099 |
|
| Government stimulus advance |
|
13,548 |
|
10,996 |
|
| Accrued workers compensation |
|
11,920 |
|
12,683 |
|
| Total current liabilities |
|
141,591 |
|
124,659 |
|
| Long-term debt, less current portion, net of debt issuance costs |
|
99,347 |
|
108,487 |
|
| Long-term operating lease liabilities, less current portion |
|
39,044 |
|
42,994 |
|
| Other long-term liabilities |
|
8,875 |
|
6,057 |
|
| Total long-term liabilities |
|
147,266 |
|
157,538 |
|
| Total liabilities |
|
288,857 |
|
282,197 |
|
| Total stockholders' equity |
|
725,143 |
|
648,886 |
|
| Total liabilities and stockholders' equity | $ |
1,014,000 |
$ |
931,083 |
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | |||||
| Net Service Revenue by Segment | |||||
| (Amounts in thousands) | |||||
| (Unaudited) | |||||
| For the Three Months Ended March 31, |
|||||
2024 |
2023 |
||||
| Net Service Revenues by Segment | |||||
| Personal Care | $ |
208,003 |
$ |
190,032 |
|
| Hospice |
|
55,863 |
|
49,082 |
|
| Home Health |
|
16,880 |
|
12,485 |
|
| Total Revenue | $ |
280,746 |
$ |
251,599 |
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | ||||||||
| Key Statistical and Financial Data (Unaudited) | ||||||||
| Key Statistical and Financial Data (Unaudited) | ||||||||
| For the Three Months Ended March 31, |
||||||||
2024 |
2023 |
|||||||
| Personal Care | ||||||||
| States served at period end |
|
21 |
|
|
21 |
|
||
| Locations served at period end |
|
153 |
|
|
157 |
|
||
| Average billable census total (1) |
|
37,715 |
|
|
38,363 |
|
||
| Billable hours (in thousands) |
|
7,590 |
|
|
7,592 |
|
||
| Average billable hours per census per month |
|
67.0 |
|
|
65.8 |
|
||
| Billable hours per business day |
|
116,769 |
|
|
116,805 |
|
||
| Revenues per billable hour | $ |
27.35 |
|
$ |
24.98 |
|
||
| Organic growth | ||||||||
| - Revenue |
|
9.3 |
|
% |
|
11.4 |
|
% |
| Hospice | ||||||||
| Locations served at period end |
|
38 |
|
|
33 |
|
||
| Admissions |
|
3,472 |
|
|
3,324 |
|
||
| Average daily census (2) |
|
3,359 |
|
|
3,195 |
|
||
| Average discharge length of stay |
|
89.6 |
|
|
87.7 |
|
||
| Patient days |
|
305,630 |
|
|
287,551 |
|
||
| Revenue per patient day | $ |
182.78 |
|
$ |
176.22 |
|
||
| Organic growth | ||||||||
| - Revenue |
|
5.8 |
|
% |
|
2.6 |
|
% |
| - Average daily census |
|
(1.1 |
) |
% |
|
1.5 |
|
% |
| Home Health | ||||||||
| Locations served at period end |
|
23 |
|
|
13 |
|
||
| New Admissions |
|
4,887 |
|
|
3,893 |
|
||
| Recertifications |
|
3,168 |
|
|
1,549 |
|
||
| Total Volume |
|
8,055 |
|
|
5,442 |
|
||
| Visits |
|
106,931 |
|
|
77,828 |
|
||
| Organic growth | ||||||||
| - Revenue |
|
(15.1 |
) |
% |
|
13.8 |
|
% |
| - New Admissions |
|
(4.0 |
) |
% |
|
(3.6 |
) |
% |
| - Volume |
|
(3.1 |
) |
% |
|
(1.2 |
) |
% |
| Percentage of Revenues by Payor: | ||||||||
| Personal Care | ||||||||
| State, local and other governmental programs |
|
51.8 |
|
% |
|
50.1 |
|
% |
| Managed care organizations |
|
45.3 |
|
|
46.3 |
|
||
| Private duty |
|
1.9 |
|
|
2.2 |
|
||
| Commercial |
|
0.7 |
|
|
0.9 |
|
||
| Other |
|
0.3 |
|
% |
|
0.5 |
|
% |
| Hospice | ||||||||
| Medicare |
|
90.7 |
|
% |
|
90.7 |
|
% |
| Commercial |
|
5.6 |
|
|
5.2 |
|
||
| Managed care organizations |
|
3.3 |
|
|
3.4 |
|
||
| Other |
|
0.4 |
|
% |
|
0.7 |
|
% |
| Home Health | ||||||||
| Medicare |
|
69.1 |
|
% |
|
74.2 |
|
% |
| Managed care organizations |
|
26.1 |
|
|
20.3 |
|
||
| Commercial |
|
4.1 |
|
|
5.2 |
|
||
| Other |
|
0.7 |
|
% |
|
0.3 |
|
% |
| (1) The average billable census in acquisitions of 145 for the three months ended March 31, 2023, was reclassified to average billable census - same stores for comparability purposes. | ||||||||
|
||||||||
| (2) Exited sites would have reduced average daily census for the three months ended March 31, 2023 by 5. | ||||||||
| 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 March 31, |
|||||||
2024 |
2023 |
||||||
| Reconciliation of Adjusted EBITDA to Net Income: (1) | |||||||
| Net income | $ |
15,830 |
|
$ |
12,675 |
|
|
| Interest expense, net |
|
2,335 |
|
|
2,355 |
|
|
| Income tax expense |
|
5,480 |
|
|
3,578 |
|
|
| Depreciation and amortization |
|
3,469 |
|
|
3,447 |
|
|
| Acquisition expenses |
|
2,711 |
|
|
1,247 |
|
|
| Stock-based compensation expense |
|
2,618 |
|
|
2,646 |
|
|
| Restructuring and other non-recurring costs |
|
- |
|
|
95 |
|
|
| Adjusted EBITDA | $ |
32,443 |
|
$ |
26,043 |
|
|
| Reconciliation of Adjusted Net Income to Net Income: (2) | |||||||
| Net income | $ |
15,830 |
|
$ |
12,675 |
|
|
| Acquisition expenses |
|
2,711 |
|
|
1,247 |
|
|
| Stock-based compensation expense |
|
2,618 |
|
|
2,646 |
|
|
| Restructuring and other non-recurring costs |
|
- |
|
|
95 |
|
|
| Tax effect |
|
(1,370 |
) |
|
(878 |
) |
|
| Adjusted Net Income |
|
19,789 |
|
|
15,785 |
|
|
| Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (3) | |||||||
| Diluted earnings per share | $ |
0.97 |
|
$ |
0.78 |
|
|
| Acquisition expenses, per diluted share |
|
0.12 |
|
|
0.06 |
|
|
| Restructuring and other non-recurring costs per diluted share |
|
- |
|
|
- |
|
|
| Stock-based compensation expense per diluted share |
|
0.12 |
|
|
0.13 |
|
|
| Adjusted net income per diluted share | $ |
1.21 |
|
$ |
0.97 |
|
|
| Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) | |||||||
| Net service revenues | $ |
280,746 |
|
$ |
251,599 |
|
|
| Revenue associated with the closure of certain sites |
|
- |
|
|
(524 |
) |
|
| Adjusted net service revenues | $ |
280,746 |
|
$ |
251,075 |
|
|
| 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. Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in |
||||
|
||||
| (2) We define Adjusted Net Income as net income before acquisition expenses, stock-based compensation expense, restructure and other non-recurring costs. Adjusted Net Income is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in |
||||
|
||||
| (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. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in |
||||
|
||||
| (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/20240506703010/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
Source: Addus HomeCare Corporation
FAQ
What were Addus HomeCare's first quarter 2024 revenues?
Addus HomeCare's first quarter 2024 revenues were $280.7 million, reflecting an 11.6% growth compared to the same period in 2023.
What was Addus HomeCare's net income in the first quarter of 2024?
Addus HomeCare reported a net income of $15.8 million for the first quarter of 2024.
What was Addus HomeCare's adjusted net income per diluted share in the first quarter of 2024?
Addus HomeCare's adjusted net income per diluted share for the first quarter of 2024 was $1.21.
What was Addus HomeCare's adjusted EBITDA in the first quarter of 2024?
Addus HomeCare's adjusted EBITDA increased by 24.6% to $32.4 million in the first quarter of 2024.
What is Addus HomeCare's stock symbol?
Addus HomeCare's stock symbol is ADUS, traded on the NASDAQ.
