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Addus HomeCare Corporation - ADUS STOCK NEWS

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Addus HomeCare Corp. (NASDAQ: ADUS) is a leading provider of in-home personal care services in the United States. The company operates across three main segments: personal care, hospice, and home health. The personal care segment is the cornerstone of Addus HomeCare, delivering non-medical assistance with daily living activities like bathing, grooming, feeding, and transportation. This care is primarily aimed at the elderly, disabled, and chronically ill who are at risk of hospitalization or institutionalization.

The hospice segment offers palliative care, encompassing physical, emotional, and spiritual support for terminally ill patients and their families. This segment also includes bereavement counseling and social work services. The home health segment focuses on skilled nursing and therapies such as physical, occupational, and speech therapy for patients recovering from illness or surgery.

Financially robust, Addus HomeCare recently reported significant growth, achieving net service revenues of $280.7 million in Q1 2024, a 11.6% increase year-over-year. The company's strategic acquisitions, including the purchase of Tennessee Quality Care and the personal care segment of Gentiva, have expanded its market presence, particularly in key states like Texas.

With over 49,000 consumers served through 214 locations in 22 states, Addus HomeCare's payor clients include federal, state, and local governments, managed care organizations, commercial insurers, and private individuals. The company continues to focus on growth opportunities through acquisitions and organic expansion while maintaining a strong balance sheet and financial flexibility.

Addus HomeCare also actively engages in important regulatory discussions, such as the recent HHS rule on Medicaid services, ensuring that the company adapts to industry changes and continues to provide high-quality care.

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Addus HomeCare (Nasdaq: ADUS) has successfully closed a public offering of 1,725,000 shares of its common stock, including 225,000 shares sold via an underwriters' option. The shares were priced at $108.00 each, generating approximately $176 million in net proceeds after underwriting discounts and expenses.

Out of these funds, $81.4 million will be used to repay outstanding indebtedness under Addus's credit facility. The remaining balance is earmarked for general corporate purposes, which covers previously announced acquisitions, including the personal care assets of Gentiva, and future investments or acquisitions. The offering did not involve any selling stockholders.

BofA Securities and Jefferies led the offering, with Oppenheimer, Raymond James, RBC Capital Markets, and Stephens Inc. acting as co-managers. The SEC approved the automatic shelf registration statement on September 2, 2022, with the final prospectus supplement dated June 26, 2024.

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Addus HomeCare (Nasdaq: ADUS) announced the pricing of an underwritten public offering of 1,500,000 shares of common stock at $108.00 per share, aiming to raise $162 million in gross proceeds. The underwriters have a 30-day option to purchase an additional 225,000 shares. Addus plans to allocate approximately $81.4 million of the net proceeds for repaying its outstanding credit facility debt, with the remainder used for general corporate purposes, including the acquisition of Gentiva's personal care assets and potential future acquisitions. The offering is anticipated to close around June 28, 2024, subject to standard closing conditions. BofA Securities and Jefferies are leading the offering, with Oppenheimer & Co., Raymond James, RBC Capital Markets, and Stephens Inc. acting as co-managers.

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Addus HomeCare (Nasdaq: ADUS), a provider of home care services, announced a public offering of 1,500,000 shares of common stock, with an option for underwriters to purchase up to an additional 225,000 shares within 30 days. The offering is led by BofA Securities and Jefferies. Net proceeds, estimated at $81.4 million, will be utilized to repay debt and for general corporate purposes, including the acquisition of personal care assets from Gentiva and potential future investments. No selling stockholders are involved. The offering is subject to market conditions and final terms will be specified in the filed prospectus. A preliminary prospectus supplement dated June 26, 2024, has been filed with the SEC.

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Addus HomeCare announces a definitive agreement to acquire Gentiva's personal care operations for approximately $350 million.

This acquisition will add annualized revenues of about $280 million across seven states, including Texas, where Addus will become the largest personal care provider.

The deal involves over 16,000 patients daily and will be funded through Addus' existing revolving credit facility.

CEO Dirk Allison highlights this acquisition as a strategic fit to expand market presence and leverage strong personal care experience. Regulatory approvals and customary closing conditions are pending.

Gentiva's CEO David Causby endorses the transition, emphasizing continued growth under Addus' leadership.

BofA Securities and Goldman Sachs are acting as financial advisors for the transaction.

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Addus HomeCare (Nasdaq: ADUS), a provider of home care services, will participate in the 2024 Jefferies Global Healthcare Conference from June 4-6, 2024, in New York City. Key executives, including Chairman and CEO Dirk Allison, President and COO Brad Bickham, and EVP and CFO Brian Poff, will represent the company. A live broadcast of the company's presentation is scheduled for 12:30 p.m. ET on June 5, 2024, and will be accessible via the Investor Relations section of Addus' website. A replay will be available for a month, starting one hour after the live broadcast ends.

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Addus HomeCare (Nasdaq: ADUS) has announced a definitive agreement to sell its New York operations to HCS-Girling, a Brooklyn-based home care provider.

The transaction, valued at up to $23 million, includes all personal care operations and fiscal intermediary services under the New York Consumer Directed Personal Assistance Program (CDPAP). The closing is subject to regulatory approvals.

Proceeds will reduce Addus' revolving credit facility balance. CEO Dirk Allison noted that exiting New York aligns with the company's growth strategy, eliminating a challenging market with financial contributions.

HCS-Girling's Co-CEO Agnes Shemia expressed optimism about expanding their service coverage in New York and integrating Addus' employees and caregivers.

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Addus HomeCare (Nasdaq: ADUS) will participate in the BofA Securities Health Care Conference 2024 in Las Vegas, Nevada. The company's top executives will be present at the conference to showcase their services and engage with potential investors. A live broadcast and replay of the presentation will be available on the company's website for one month.

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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.

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Addus HomeCare (Nasdaq: ADUS) responds to the final rule 'Ensuring Access to Medicaid Services' by the Department of Health and Human Services. The rule mandates that 80% of Medicaid payments for personal care services be spent on direct care workforce compensation, with a six-year compliance period. While supporting the goal to expand access to services, Addus expresses disappointment over the 80% threshold due to industry challenges. The company plans to assess the rule's impact on its business and advocate for increased reimbursement for home care services.
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Addus HomeCare (Nasdaq: ADUS) has announced the release of their first-quarter 2024 earnings on May 6, 2024, after the market close, with a conference call scheduled for May 7, 2024. The call will feature key executives discussing the financial results, including Dirk Allison, Chairman and CEO.
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FAQ

What services does Addus HomeCare Corp offer?

Addus HomeCare Corp offers personal care, hospice, and home health services. The personal care segment provides non-medical assistance with daily activities, the hospice segment offers palliative care for terminally ill patients, and the home health segment provides skilled nursing and therapy services.

Who are the primary consumers of Addus HomeCare's services?

The primary consumers are individuals at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled persons.

How has Addus HomeCare Corp grown recently?

Addus HomeCare has seen significant growth through strategic acquisitions like Tennessee Quality Care and Gentiva's personal care operations. The company reported a 11.6% increase in net service revenues in Q1 2024.

What is Addus HomeCare's financial condition?

Addus HomeCare is financially strong, with significant revenue growth and a focus on maintaining a strong balance sheet. The company continues to generate strong cash flow, supporting its growth initiatives.

How does Addus HomeCare support its caregivers?

Addus HomeCare invests in efficient hiring and scheduling systems to support its caregivers, ensuring they can provide high-quality care to a growing number of patients.

What recent regulatory changes impact Addus HomeCare?

The HHS rule on Medicaid services, which includes a provision for 80% of Medicaid payments to go to direct care workforce compensation, affects Addus HomeCare. The company is evaluating the impact and preparing for implementation.

In which states does Addus HomeCare operate?

Addus HomeCare operates in 22 states across the U.S., providing services to over 49,000 consumers through 214 locations.

What are Addus HomeCare's future growth plans?

Addus HomeCare plans to continue growing through strategic acquisitions and organic expansion, with a focus on enhancing its market presence in key states and maintaining financial flexibility.

Who are Addus HomeCare's payor clients?

Addus HomeCare's payor clients include federal, state, and local governmental agencies, managed care organizations, commercial insurers, and private individuals.

What is the significance of Addus HomeCare's acquisition of Gentiva's personal care operations?

The acquisition of Gentiva's personal care operations, valued at approximately $350 million, expands Addus HomeCare's market coverage in seven states and establishes a significant presence in Texas.

Addus HomeCare Corporation

Nasdaq:ADUS

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