Revenues Grow 11.7% to $216.7
Million
Net Income Increases 27.0% to $11.6 Million,
or $0.72 per Diluted Share
Adjusted Earnings per Diluted Share
Increases 19.7% to $0.91
Adjusted EBITDA Increases 27.4% to $24.9
Million
Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home
care services, today announced its financial results for the third
quarter and nine months ended September 30, 2021.
Net service revenues increased 11.7% for the third quarter to
$216.7 million from $194.0 million for the third quarter of 2020.
Net income increased 27.0% to $11.6 million for the third quarter
of 2021 from $9.1 million for the third quarter last year, while
net income per diluted share was $0.72 compared with $0.57 for the
same period a year ago. Adjusted net income per diluted share was
$0.91 for the third quarter of 2021 compared with $0.76 for the
third quarter of 2020.
Adjusted net income for the third quarter of 2021 excludes
acquisition and de novo expenses of $0.08 and stock-based
compensation expense of $0.11. Adjusted EBITDA increased 27.4% to
$24.9 million for the third quarter of 2021 from $19.5 million for
the third quarter of 2020. (See page 8 for a reconciliation of all
non-GAAP and GAAP financial measures in this news release.)
For the first nine months of 2021, net service revenues
increased 12.5% to $639.9 million from $568.8 million for the first
nine months of 2020. Net income increased 29.9% to $32.1 million
for the first nine months of 2021 from $24.7 million for the first
nine months of last year, while net income per diluted share
increased to $2.00 from $1.55. Adjusted net income per diluted
share grew 15.9% to $2.62 for the first nine months of 2021 from
$2.26 for the same period in 2020. Adjusted EBITDA increased 25.0%
to $69.9 million for the first nine months of 2021 from $56.0
million for the first nine months of 2020.
Commenting on the results, Dirk Allison, Chairman and Chief
Executive Officer, said, “We had record results in the third
quarter with overall revenue growth of 11.7% over the prior-year
period and improved profitability. Our personal care service line,
which accounted for 78.3% of total revenue, was up 4.0% on a same
store basis, which is within our target range of 3-5% organic
revenue growth, and we anticipate potential improvement enhanced by
upcoming scheduled rate increases. Home health had another strong
quarter, up 24.8% over the third quarter last year, reflecting
significantly higher volumes. As expected, we are seeing continued
improvement in our hospice business with sequential growth in
admissions, average daily census, and median length of stay.
Overall operating trends were positive, despite pressures related
to the surge in the Delta variant of COVID-19 as well as a
tightening labor market, which had some effect on our growth in
certain markets.”
As of September 30, 2021, the Company had cash of $152.4 million
and bank debt of $224.9 million, with capacity and availability
under its revolving credit facility of $367.0 million and $123.8
million, respectively. Net cash provided by operating activities
was $17.6 million for the third quarter of 2021.
On October 1, 2021, the Company completed its acquisition of
Summit Home Health, LLC, (“Summit”) based in the Chicago metro
area, the Company’s largest market for personal care services.
Allison noted, “This acquisition is based on our strategy to add
clinical services in geographic markets where we have a strong
personal care presence and opportunities in value-based care. With
the addition of Summit’s $7.0 million in annualized revenues, we
have added $30 million in annualized revenues through acquisitions
to date in 2021. We remain focused on pursuing acquisitions that
are accretive to our business and complement our organic growth
opportunities. Our pipeline remains solid and we have the financial
flexibility to pursue additional strategic acquisitions and further
strengthen our competitive position.”
Allison continued, “We are pleased with our results to date in
2021 and continue to benefit from a favorable environment for
home-based care with strong demand trends and increased government
recognition and support through state and federal funding. The
pandemic has demonstrated the critical need for safe, quality,
patient-centered care in the home, and Addus is well positioned to
meet this demand across our operating segments. We have a proven
operating model and a dedicated team of frontline caregivers and
support staff who share our mission to provide essential home care
services to the patients who count on Addus for safe and
cost-effective care.”
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 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, 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 acquisition
and de novo expenses, stock compensation expense, restructure
expenses, and other costs. The Company defined adjusted net income,
adjusted EBITDA, adjusted diluted earnings per share to exclude net
COVID expenses arising from the pandemic from the second quarter of
2020 to the first quarter of 2021. 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.
Conference Call
Addus will host a conference call on Tuesday, November 2, 2021,
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), passcode
6998238. A telephonic replay of the conference call will be
available through midnight on November 9, 2021, by dialing (855)
859‑2056 (international dial-in number is (404) 537‑3406) and
entering pass code 6998238.
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, any future impact to our business operations,
reimbursements and patient population due to the recent COVID-19
global pandemic, 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 44,500 consumers through 207
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 MonthsEnded
September 30, For the Nine MonthsEnded September 30,
2021
2020
2021
2020
Net service revenues
$
216,662
$
193,987
$
639,857
$
568,779
Cost of service revenues
149,616
137,686
442,804
401,646
Gross profit
67,046
56,301
197,053
167,133
30.9
%
29.0
%
30.8
%
29.4
%
General and administrative expenses
46,280
40,806
139,865
125,189
(Gain) loss on sale of assets
-
(73
)
16
281
Depreciation and amortization
3,406
3,045
10,594
8,872
Total operating expenses
49,686
43,778
150,475
134,342
Operating income
17,360
12,523
46,578
32,791
Total interest expense, net
1,577
593
4,002
1,733
Income before income taxes
15,783
11,930
42,576
31,058
Income tax expense
4,206
2,811
10,508
6,374
Net income
$
11,577
$
9,119
$
32,068
$
24,684
Net income (loss) per diluted share
$
0.72
$
0.57
$
2.00
$
1.55
Weighted average number of common shares outstanding:
Diluted
16,030
15,957
16,060
15,934
Cash Flow Information: For the Three
MonthsEnded September 30, For the Nine MonthsEnded September
30,
2021
2020
2021
2020
Net cash provided by operating activities
$
17,608
$
22,412
$
14,287
$
73,299
Net cash (used in) investing activities
(30,505
)
(12,542
)
(32,433
)
(17,507
)
Net cash provided by financing activities
25,876
1,912
25,447
2,825
Net change in cash
12,979
11,782
7,301
58,617
Cash at the beginning of the period
139,400
158,549
145,078
111,714
Cash at the end of the period
$
152,379
$
170,331
$
152,379
$
170,331
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Amounts in
thousands) (Unaudited) September
30,
2021
2020
Assets Current assets
Cash
$
152,379
$
170,331
Accounts receivable, net
133,814
118,623
Prepaid expenses and other current assets
13,514
10,426
Total current assets
299,707
299,380
Property and equipment, net
18,614
19,305
Other assets Goodwill
497,919
286,552
Intangible assets, net
66,332
52,873
Deferred tax assets, net
5,919
1,479
Operating lease assets
36,424
35,842
Total other assets
606,594
376,746
Total assets
$
924,915
$
695,431
Liabilities and stockholders'
equity Current liabilities Accounts payable
$
23,167
$
17,270
Accrued payroll
31,626
26,315
Accrued expenses
35,780
26,254
Government stimulus advance
7,674
7,141
Accrued workers compensation
14,286
14,668
Current portion of long-term debt, net of debt issuance costs
-
2,095
Total current liabilities
112,533
93,743
Long-term debt, less current portion, net of debt
issuance costs
220,707
59,561
Long-term lease liability, less current portion
33,509
33,977
Other long-term liabilities
115
550
Total long-term liabilities
254,331
94,088
Total liabilities
366,864
187,831
Total stockholders' equity
558,051
507,600
Total liabilities and stockholders' equity
$
924,915
$
695,431
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Net Service
Revenues by Segment (Amounts in thousands)
(Unaudited) For the Three MonthsEnded
September 30, For the Nine MonthsEnded September 30,
2021
2020
2021
2020
Net Service Revenues by Segment Personal Care
$
169,609
$
165,916
$
510,744
$
482,849
Hospice
39,095
23,986
112,098
73,723
Home Health
7,958
4,085
17,015
12,207
Total Revenue
$
216,662
$
193,987
$
639,857
$
568,779
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key
Statistical and Financial Data (Unaudited) For the
Three MonthsEnded September 30, For the Nine MonthsEnded
September 30,
2021
2020
2021
2020
General Personal Care States served at period
end
-
-
22
24
Locations at period end
-
-
162
153
Average billable census - same store
37,270
38,589
37,534
38,443
Average billable census - acquisitions (1)
709
-
732
-
Average billable census total (2)
37,979
38,589
38,266
38,443
Billable hours (in thousands)
7,537
7,778
22,712
22,825
Average billable hours per census per month
65.8
66.9
65.7
65.6
Billable hours per business day
114,195
117,841
116,472
116,454
Revenues per billable hour
$
22.47
$
21.29
$
22.45
$
21.11
Organic growth - Revenue (3)
4.0
%
4.8
%
6.6
%
8.8
%
Hospice Locations served at period end
-
-
34
30
Admissions
2,565
1,399
7,211
4,393
Average daily census
2,629
1,681
2,523
1,762
Average discharge length of stay
95.2
108.6
95.4
103.4
Patient days
240,692
154,609
680,600
482,765
Revenue per patient day
$
162.43
$
155.14
$
164.71
$
152.71
Organic growth - Revenue
(4.8
)%
(5.6
)%
(7.2
)%
0.0
%
- Average daily census
(7.6
)%
(6.2
)%
(24.6
)%
3.9
%
Home Health Locations served at period end
-
-
11
10
New Admissions
2,608
1,096
4,962
3,186
Recertifications
1,081
607
2,476
2,006
Total Volume
3,689
1,703
7,438
5,192
Visits
55,963
28,073
115,210
91,580
Organic growth - Revenue
24.8
%
(8.9
)%
15.9
%
(0.6
)%
- New Admissions
27.9
%
42.6
%
23.8
%
23.0
%
Percentage of Revenues by Payor: Personal
Care State, local and other governmental programs
49.5
%
51.5
%
49.5
%
50.3
%
Managed care organizations
45.3
43.2
45.3
44.1
Private duty
2.9
3.1
2.9
3.2
Commercial
1.4
1.5
1.5
1.5
Other
0.9
%
0.7
%
0.8
%
0.9
%
Hospice Medicare
92.8
%
93.4
%
93.4
%
92.8
%
Managed care organizations
3.9
4.7
3.9
5.0
Other
3.3
%
1.9
%
2.7
%
2.2
%
Home Health Medicare
80.1
%
78.0
%
80.5
%
79.2
%
Managed care organizations
15.3
20.3
16.7
19.0
Other
4.6
%
1.7
%
2.8
%
1.8
%
(1) The average billable census in acquisitions of 811 and
893 for the three and nine months ended September 30, 2020 was
reclassified to average billable census - same stores for
comparability purposes. The average billable census for the three
and nine months ended September 30, 2021 was prorated for the date
of the acquisition. (2) Exited sites would have reduced same store
census for the three and nine months ended September 30, 2020 by
768 and 766, respectively. (3) Management has suspended materially
all of its new patient admissions under the New York consumer
self-directed program based on program uncertainty and therefore
excludes associated revenues from the calculation.
ADDUS
HOMECARE CORPORATION AND SUBSIDIARIES Reconciliation of
Non-GAAP Financial Measures (Amounts in thousands, except
per share data) (Unaudited) (1) For the Three
MonthsEnded September 30, For the Nine MonthsEnded September
30,
2021
2020
2021
2020
Reconciliation of Adjusted EBITDA to Net Income: (2)
Net income
$
11,577
$
9,119
$
32,068
$
24,684
Interest expense, net
1,577
593
4,002
1,733
(Gain) loss on sale of assets
-
(73
)
16
281
Income tax expense
4,206
2,811
10,508
6,374
Depreciation and amortization
3,406
3,045
10,594
8,872
COVID-19 expense, net
-
702
(591
)
1,228
Acquisition and de novo expenses
1,663
338
5,383
3,883
Stock-based compensation expense
2,341
1,462
7,105
3,987
Restructure expenses and other costs
103
1,529
857
4,921
Adjusted EBITDA
$
24,873
$
19,526
$
69,942
$
55,963
Reconciliation of Adjusted Net Income to Net Income:
(3) Net income
$
11,577
$
9,119
$
32,068
$
24,684
(Gain) loss on sale of assets, net of tax
-
(56
)
12
223
COVID-19 expense, net of tax
-
537
(479
)
976
Acquisition and de novo expenses, net of tax
1,220
258
4,361
3,047
Stock-based compensation expense, net of tax
1,716
1,119
5,370
3,153
Restructuring expenses and other costs, net of tax
76
1,169
647
3,897
Adjusted Net Income
$
14,589
$
12,146
$
41,979
$
35,980
Reconciliation of Net Income per Diluted Share to
Adjusted Net Income per Diluted Share: (4) Net income
per diluted share
$
0.72
$
0.57
$
2.00
$
1.55
Loss on sale of assets per diluted share
-
-
-
0.01
COVID-19 expense per diluted share
-
0.02
(0.02
)
0.06
Acquisition and de novo expenses per diluted share
0.08
0.02
0.27
0.19
Restructure expenses and other costs per diluted share
-
0.08
0.04
0.25
Stock-based compensation expense per diluted share
0.11
0.07
0.33
0.20
Adjusted net income per diluted share
$
0.91
$
0.76
$
2.62
$
2.26
Reconciliation of Net Service Revenues to Adjusted Net
Service Revenues: (5) Net service revenues
$
216,662
$
193,987
$
639,857
$
568,779
Revenues associated with the closure of certain sites
-
(2,369
)
2
(7,133
)
Adjusted net service revenues
$
216,662
$
191,618
$
639,859
$
561,646
(1) The Company defined adjusted net income, adjusted
EBITDA, and adjusted diluted earnings per share to exclude net
COVID expenses arising from the pandemic from the second quarter of
2020 to the first quarter of 2021. (2) We define Adjusted EBITDA as
earnings before interest expense, interest income from the state of
Illinois, other non-operating income, taxes, depreciation,
amortization, acquisition and de novo expenses, stock-based
compensation expense, restructure expenses and other costs and loss
on the sale of assets associated with Hospice Partners of Kansas.
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. (3) We define Adjusted Net Income as net income before
interest income from the state of Illinois, acquisition and de novo
expenses, stock-based compensation expense, restructure expenses
and other costs and loss on the sale of assets associated with
Hospice Partners of Kansas. 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. (4) We define
Adjusted diluted earnings per share as earnings per share, adjusted
for interest income from the state of Illinois, acquisition and de
novo expenses, stock-based compensation expense and restructure
expense, and other costs and loss on the sale of assets associated
with Hospice Partners of Kansas. 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. (5) 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/20211101005921/en/
Brian W. Poff Executive Vice President, Chief Financial Officer
Addus HomeCare Corporation (469) 535-8200
investorrelations@addus.com
Dru Anderson CCI FINN Partners (615) 324-7346
dru.anderson@finnpartners.com
Addus HomeCare (NASDAQ:ADUS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Addus HomeCare (NASDAQ:ADUS)
Historical Stock Chart
From Apr 2023 to Apr 2024