Addus HomeCare Announces First-Quarter 2021 Financial Results
Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced financial results for the first quarter ended March 31, 2021.
Net service revenues were
Adjusted net income per diluted share for the first quarter of 2021 excludes acquisition and de novo expenses of
As of March 31, 2021, the Company had cash of
Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare, commented, “We are particularly pleased to report first quarter financial and operating results that compare favorably to the first quarter of 2020, our best ever first quarter and the last quarter not to be significantly affected by the COVID-19 pandemic. First quarter 2021 results reflect an improving public health environment, and we anticipate that the COVID-19 pandemic will continue to steadily decrease in severity over the next several quarters. While we were impacted by both the pandemic and the historic winter storm that interrupted business throughout many of our significant markets, we nevertheless saw overall revenue growth across each of our operating segments, including our acquired businesses, generating solid comparisons to our record 2020 first quarter and providing a strong start to 2021.
“We continue to see improving organic growth trends ahead of pre-pandemic levels in both personal care and home health. With the accelerating growth in vaccinations across the country and increasing facility access, we expect that we will begin to see a return to higher volume trends in our hospice business. Ultimately, we believe Addus is well positioned to meet expected demand in all our operating segments as overall conditions improve and more restrictions are lifted.
“We also expect to benefit from the statewide Illinois rate increase that became effective April 1, 2021 and will help offset the most recent increase in the Chicago minimum wage. Illinois is an important market for Addus, and we were pleased to see the implementation of this rate increase following a previous delay.”
Mr. Allison added, “Despite COVID-19 challenges, we were able to complete three acquisitions in the second half of last year, including our acquisition of Queen City Hospice on December 1, 2020. Integration of these transactions is largely complete, and our average daily census at Queen City has seen positive growth since acquisition. We continue to have a solid pipeline of potential acquisitions that we will aggressively pursue, primarily focused on transactions that allow us to operate each of our hospice, home health and personal care segments in strategic markets. We have the financial strength necessary to complete acquisitions that meet our objectives and we are confident that we can continue our record of delivering value from acquired operations.”
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 the net COVID-19 expenses, acquisition and de novo expenses, stock-based compensation expense, restructure expenses, and other costs. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, net COVID-19 expenses, acquisition and de novo expenses, stock-based compensation expense, restructure expenses, and other costs. The Company defines adjusted diluted earnings per share as earnings per share, adjusted for net COVID-19 expenses, acquisition and de novo expenses, stock compensation expense, restructure expenses, and other 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 earnings per share to earnings 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 earnings 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. With respect to net COVID-19 expenses, the Company views these expenses as unrelated to the Company’s long-term performance, since they are directly related to the sudden onset COVID-19 pandemic.
Conference Call
Addus will host a conference call on Tuesday, May 4, 2021, beginning at 9:00 a.m. Eastern time. The toll-free dial-in number is (877) 930-8289 (international dial-in number is (253) 336-8714), pass code 6176200. A telephonic replay of the conference call will be available through midnight on May 11, 2021, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 6176200. 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, anticipated 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, the anticipated impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, caused by a novel strain of the coronavirus (COVID-19), 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 March 1, 2021, 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 44,000 consumers through 208 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, |
||||||
|
2021 |
|
|
|
2020 |
|
|
| Net service revenues | $ |
205,302 |
|
$ |
190,216 |
|
|
| Cost of service revenues |
|
144,105 |
|
|
134,381 |
|
|
| Gross profit |
|
61,197 |
|
|
55,835 |
|
|
|
29.8 |
% |
|
29.4 |
% |
||
| General and administrative expenses |
|
45,426 |
|
|
42,287 |
|
|
| Depreciation and amortization |
|
3,601 |
|
|
2,887 |
|
|
| Total operating expenses |
|
49,027 |
|
|
45,174 |
|
|
| Operating income from continuing operations |
|
12,170 |
|
|
10,661 |
|
|
| Total interest expense, net |
|
1,194 |
|
|
574 |
|
|
| Income before income taxes |
|
10,976 |
|
|
10,087 |
|
|
| Income tax expense |
|
2,082 |
|
|
1,429 |
|
|
| Net income | $ |
8,894 |
|
$ |
8,658 |
|
|
| Net income per diluted share: | $ |
0.55 |
|
$ |
0.54 |
|
|
| Weighted average number of common shares outstanding: | |||||||
| Diluted |
|
16,069 |
|
|
15,907 |
|
|
| Cash Flow Information: | For the Three Months Ended March 31, |
||||||
|
2021 |
|
|
|
2020 |
|
|
| Net cash (used in) provided by operating activities | $ |
(18,366 |
) |
$ |
20,442 |
|
|
| Net cash (used in) investing activities |
|
(1,021 |
) |
|
(2,834 |
) |
|
| Net cash (used in) provided by financing activities |
|
(144 |
) |
|
1,141 |
|
|
| Net change in cash |
|
(19,531 |
) |
|
18,749 |
|
|
| Cash at the beginning of the period |
|
145,078 |
|
|
111,714 |
|
|
| Cash at the end of the period | $ |
125,547 |
|
$ |
130,463 |
|
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Amounts in thousands) | |||||
| (Unaudited) | |||||
March 31, |
|||||
|
2021 |
|
|
2020 |
|
| Assets | |||||
| Current assets | |||||
| Cash | $ |
125,547 |
$ |
130,463 |
|
| Accounts receivable, net |
|
138,806 |
|
141,083 |
|
| Prepaid expenses and other current assets |
|
10,787 |
|
6,505 |
|
| Total current assets |
|
275,140 |
|
278,051 |
|
| Property and equipment, net |
|
19,322 |
|
13,791 |
|
| Other assets | |||||
| Goodwill |
|
469,036 |
|
275,364 |
|
| Intangible assets, net |
|
69,395 |
|
55,304 |
|
| Deferred tax assets, net |
|
6,359 |
|
1,606 |
|
| Operating lease assets |
|
38,325 |
|
20,703 |
|
| Total other assets |
|
583,115 |
|
352,977 |
|
| Total assets | $ |
877,577 |
$ |
644,819 |
|
| Liabilities and stockholders' equity | |||||
| Current liabilities | |||||
| Accounts payable | $ |
23,459 |
$ |
17,561 |
|
| Accrued payroll |
|
20,255 |
|
29,476 |
|
| Accrued expenses |
|
38,654 |
|
22,116 |
|
| Government stimulus advance |
|
20,368 |
|
- |
|
| Accrued workers compensation |
|
14,380 |
|
14,497 |
|
| Current portion of long-term debt |
|
972 |
|
956 |
|
| Total current liabilities |
|
118,088 |
|
84,606 |
|
| Long-term debt, less current portion, net of debt issuance costs |
|
193,839 |
|
59,112 |
|
| Long-term operating lease liabilities, less current portion |
|
35,623 |
|
13,638 |
|
| Other long-term liabilities |
|
117 |
|
655 |
|
| Total long-term liabilities |
|
229,579 |
|
73,405 |
|
| Total liabilities |
|
347,667 |
|
158,011 |
|
| Total stockholders' equity |
|
529,910 |
|
486,808 |
|
| Total liabilities and stockholders' equity | $ |
877,577 |
$ |
644,819 |
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | |||||
| Net Service Revenues by Segment | |||||
| (Amounts in thousands) | |||||
| (Unaudited) | |||||
For the Three Months Ended March 31, |
|||||
|
2021 |
|
|
2020 |
|
| Personal Care | $ |
164,868 |
$ |
160,665 |
|
| Hospice |
|
36,094 |
|
25,212 |
|
| Home Health |
|
4,340 |
|
4,339 |
|
| Total Revenue | $ |
205,302 |
$ |
190,216 |
|
| ADDUS HOMECARE CORPORATION AND SUBSIDIARIES | ||||||
| Key Statistical and Financial Data (Unaudited) | ||||||
For the Three Months Ended March 31, |
||||||
|
2021 |
|
|
2020 |
||
| Personal Care | ||||||
| States served at period end |
|
21 |
|
|
24 |
|
| Locations served at period end |
|
164 |
|
|
151 |
|
| Average billable census - same store |
|
36,788 |
|
|
39,170 |
|
| Average billable census - acquisitions (1) |
|
1,539 |
|
|
- |
|
| Average billable census total (2) |
|
38,327 |
|
|
39,170 |
|
| Billable hours (in thousands) |
|
7,567 |
|
|
7,674 |
|
| Average billable hours per census per month |
|
65.2 |
|
|
64.9 |
|
| Billable hours per business day |
|
118,237 |
|
|
118,054 |
|
| Revenues per billable hour | $ |
21.75 |
|
$ |
20.97 |
|
| Organic growth | ||||||
| - Revenue |
|
2.4 |
% |
|
14.0 |
% |
| Hospice | ||||||
| Locations served at period end |
|
34 |
|
|
34 |
|
| Admissions |
|
2,394 |
|
|
1,655 |
|
Addus HomeCare Corp.
NASDAQ:ADUSADUS RankingsADUS Latest NewsADUS Stock Data
1.61B
15.67M
2.08%
98.86%
2.18%
Home Health Care Services
Health Care and Social Assistance
United States of America
FRISCO
About ADUSaddus homecare corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the united states. it operates in three segments: personal care, hospice, and home health. the personal care segment provides non-medical assistance with activities of daily living. this segment's services include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. the hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. the home health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. the company's payor clients include f
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