Addus HomeCare Announces Second Quarter 2015 Results
For the second quarter, net service revenues increased 11.5% to
For the first six months of 2015, net service revenues rose 12.8% to
"Our team produced another good quarter of quality care, growth and financial performance," commented
"We experienced higher costs during the second quarter related to the ongoing installation of our new human resources and payroll information system. These costs were primarily related to expanding the functionality of the system and increased training. The additional costs in the quarter totaled
The Company's revenue growth for the second quarter reflected 8.8% growth in average billable census compared to the second quarter of 2014. Average billable hours per census per month increased 1.6% to 50.3 for the latest quarter, while revenues per billable hour increased 0.9% to
Addus had
Heaney concluded, "For the second half of 2015, we are focused on driving organic growth, improving the performance of our acquired businesses and cost management. We have exited certain underperforming locations that we expect will reduce second-half revenue by approximately
"We believe Addus is the personal care company best positioned to partner with MCOs, due to our consistently good care, our continuing investment in technology, our scale and broad geographic footprint, and our acquisition strategy focused on states transitioning, or likely to transition, care to MCOs in the nearer term. The demographics of our industry, combined with the opportunity for improved health outcomes and value-based reimbursement are compelling for Addus. We believe that, combined, they expand our potential for long-term growth and increased stockholder value."
Non-GAAP Financial Measures
The information provided in this release includes adjusted diluted earnings per share from continuing operations and adjusted EBITDA, which are non-GAAP financial measures. The Company defines adjusted diluted earnings per share as diluted earnings per share, adjusted for M&A expenses, incremental SOX 404 compliance expense and tax benefit from worker opportunity tax credits. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expense and stock-based compensation expense. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted diluted earnings per share to diluted earnings per share and a reconciliation of adjusted EBITDA to net income, in each case, the most directly comparable GAAP measure. Management believes that adjusted diluted earnings per share and adjusted EBITDA 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
A live broadcast of
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 "continue," "expect," and similar expressions. 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 the consummation of acquisitions, anticipated transition to managed care providers, expected benefits and 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
About Addus
Addus is a comprehensive provider of home and community-based services that are primarily provided in the home and focused on the dual eligible population. Addus' services include personal care and assistance with activities of daily living, and adult day care. Addus' consumers are individuals who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus' payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. For more information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Income and Cash Flow Information (amounts and shares in thousands, except per share data) (Unaudited) |
|||||||
Income Statement Information: |
For the Three Months |
For the Six Months |
|||||
2015 |
2014 |
2015 |
2014 |
||||
Net service revenues |
$ 85,809 |
$ 76,965 |
$ 167,724 |
$ 148,648 |
|||
Cost of service revenues |
62,127 |
56,385 |
122,116 |
109,400 |
|||
Gross profit |
23,682 |
20,580 |
45,608 |
39,248 |
|||
27.6% |
26.7% |
27.2% |
26.4% |
||||
General and administrative expenses |
17,423 |
15,399 |
34,576 |
29,802 |
|||
Depreciation and amortization |
1,161 |
1,083 |
2,307 |
1,578 |
|||
Total operating expenses |
18,584 |
16,482 |
36,883 |
31,380 |
|||
Operating income |
5,098 |
4,098 |
8,725 |
7,868 |
|||
Total interest expense, net |
169 |
151 |
342 |
305 |
|||
Income before taxes |
4,929 |
3,947 |
8,383 |
7,563 |
|||
Income tax expense |
1,676 |
1,218 |
2,968 |
2,480 |
|||
Net income |
$ 3,253 |
$ 2,729 |
$ 5,415 |
$ 5,083 |
|||
Net income per share: |
|||||||
Basic |
$ 0.30 |
$ 0.25 |
$ 0.49 |
$ 0.47 |
|||
Diluted |
$ 0.29 |
$ 0.25 |
$ 0.48 |
$ 0.46 |
|||
Weighted average number of common shares outstanding: |
|||||||
Basic |
10,989 |
10,903 |
10,970 |
10,878 |
|||
Diluted |
11,212 |
11,138 |
11,188 |
11,121 |
|||
Cash Flow Information: |
For the Three Months |
For the Six Months |
|||||
2015 |
2014 |
2015 |
2014 |
||||
Net cash provided by operating activities |
$ 35,948 |
$ 12,333 |
$ 35,044 |
$ 15,003 |
|||
Net cash (used in) investing activities |
(554) |
(9,757) |
(5,535) |
(11,241) |
|||
Net cash (used in) provided by financing activities |
(766) |
- |
(848) |
214 |
|||
Net change in cash |
34,628 |
2,576 |
28,661 |
3,976 |
|||
Cash at the beginning of the period |
7,396 |
16,965 |
13,363 |
15,565 |
|||
Cash at the end of the period |
$ 42,024 |
$ 19,541 |
$ 42,024 |
$ 19,541 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited) |
|||
June 30, |
|||
2015 |
2014 |
||
Assets |
|||
Current assets |
|||
Cash |
$ 42,024 |
$ 19,541 |
|
Accounts receivable, net |
47,063 |
48,725 |
|
Prepaid expenses and other current assets |
4,249 |
4,555 |
|
Deferred tax assets |
8,508 |
8,326 |
|
Total current assets |
101,844 |
81,147 |
|
Property and equipment, net |
8,062 |
6,958 |
|
Other assets |
|||
Goodwill |
66,002 |
64,324 |
|
Intangible assets, net |
10,946 |
11,753 |
|
Investment in joint venture |
900 |
900 |
|
Other assets |
261 |
53 |
|
Total other assets |
78,109 |
77,030 |
|
Total assets |
$ 188,015 |
$ 165,135 |
|
Liabilities and stockholders' equity |
|||
Current liabilities |
|||
Accounts payable |
$ 3,507 |
$ 4,769 |
|
Accrued expenses |
39,586 |
37,438 |
|
Current portion of capital lease obligations |
1,091 |
- |
|
Current portion of contingent earn-out obligation |
920 |
- |
|
Deferred revenue |
- |
3 |
|
Total current liabilities |
45,104 |
42,210 |
|
Contingent earn-out obligation, less current portion |
200 |
- |
|
Capital lease obligations, less current portion |
2,440 |
- |
|
Deferred tax liability |
5,845 |
3,441 |
|
Total stockholders' equity |
134,426 |
119,484 |
|
Total liabilities and stockholders' equity |
$ 188,015 |
$ 165,135 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited) |
|||||||
For the Three Months |
For the Six Months |
||||||
2015 |
2014 |
2015 |
2014 |
||||
General: |
|||||||
Adjusted EBITDA (in thousands) (1) |
$ 6,883 |
$ 5,927 |
$ 12,283 |
$ 10,378 |
|||
States served at period end |
- |
- |
21 |
22 |
|||
Locations at period end |
- |
- |
127 |
133 |
|||
Employees at period end |
- |
- |
19,067 |
17,754 |
|||
Home & Community |
|||||||
Average billable census - same store |
32,487 |
28,453 |
32,217 |
28,163 |
|||
Average billable census - acquisitions |
728 |
2,070 |
791 |
1,847 |
|||
Average billable census total |
33,215 |
30,523 |
33,008 |
30,010 |
|||
Billable hours (in thousands) |
5,011 |
4,536 |
9,766 |
8,773 |
|||
Average billable hours per census per month |
50.3 |
49.5 |
49.3 |
48.7 |
|||
Billable hours per business day |
78,302 |
72,006 |
76,896 |
69,076 |
|||
Revenues per billable hour |
$ 17.12 |
$ 16.97 |
$ 17.17 |
$ 16.94 |
|||
Percentage of Revenues by Payor: |
|||||||
State, local and other governmental programs |
77.7% |
89.4% |
77.7% |
90.1% |
|||
Managed Care |
18.1 |
6.2 |
18.1 |
5.3 |
|||
Private duty |
3.2 |
1.1 |
3.2 |
1.2 |
|||
Commercial |
1.0% |
3.3% |
1.0% |
3.4% |
|||
(1) We define Adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. 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. |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Adjusted EBITDA(1) (Unaudited) |
|||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||
2015 |
2014 |
2015 |
2014 |
||||
Reconciliation of Adjusted EBITDA |
|||||||
Net income |
$ 3,253 |
$ 2,729 |
$ 5,415 |
$ 5,083 |
|||
Interest expense, net |
169 |
151 |
341 |
305 |
|||
Income tax expense |
1,676 |
1,218 |
2,969 |
2,480 |
|||
Depreciation and amortization |
1,161 |
1,083 |
2,307 |
1,578 |
|||
M&A expenses |
209 |
536 |
501 |
601 |
|||
Stock-based compensation expense |
415 |
210 |
750 |
331 |
|||
Adjusted EBITDA |
$ 6,883 |
$ 5,927 |
$ 12,283 |
$ 10,378 |
|||
Reconciliation of Diluted Earnings per Share |
|||||||
Diluted earnings per share |
$ 0.29 |
$ 0.25 |
$ 0.48 |
$ 0.46 |
|||
Acquisition-related transaction expense per share |
0.01 |
0.03 |
0.03 |
0.03 |
|||
Worker Opportunity Tax Credits per share |
- |
(0.02) |
- |
- |
|||
Incremental Sarbanes-Oxley Section 404 |
|||||||
compliance expense per share |
- |
- |
0.02 |
- |
|||
Adjusted diluted earnings per share |
$ 0.30 |
$ 0.26 |
$ 0.53 |
$ 0.49 |
|||
(1) We define Adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. 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. |
|||||||
(2) We define Adjusted diluted earnings per share as earnings per share, adjusted for M&A expenses, tax benefit from worker opportunity tax credits and incremental costs for Sarbanes-Oxley Section 404 compliance. 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. |
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SOURCE
Don Klink, Chief Financial Officer, Addus HomeCare Corporation, (630) 296-3400, investorrelations@addus.com, or Scott Brittain, Corporate Communications, Inc., (615) 324-7308, scott.brittain@cci-ir.com