FRISCO, Texas, Aug. 7, 2017 /PRNewswire/ -- Addus HomeCare Corporation (NASDAQ: ADUS), a provider of comprehensive home care services, today announced its financial results for the second quarter and six months ended June 30, 2017.

Net service revenues were $103.6 million for the second quarter, up 2.6% from $100.9 million for the second quarter of 2016. Net income increased 3.8% to $2.7 million for the second quarter of 2017 from $2.6 million for the same quarter last year. Net income per diluted share was $0.23 for the second quarter of 2017 and 2016. For the second quarter of 2017, net income per diluted share included a write off of debt issuance costs associated with the Company's prior credit facility of $0.09, M&A expenses of $0.02 and share-based compensation expense of $0.04. For the second quarter of 2016, net income per diluted share included severance and other charges of $0.04, restructure charges of $0.01 and share-based compensation expense of $0.03. After giving effect to these adjustments, adjusted net income per diluted share was $0.38 for the second quarter of 2017, a 22.6% increase from $0.31 for the second quarter of 2016. Adjusted EBITDA increased 14.0% for the second quarter of 2017 to $8.6 million from $7.5 million for the second quarter of 2016. (See page 7 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.)

For the first six months of 2017, net service revenues increased 6.0% to $205.2 million from $193.5 million for the first half of 2016. Net income for the first six months of 2017 increased 152.4% to $7.0 million from $2.8 million for the same period in 2016, and net income per diluted share rose 140% to $0.60 from $0.25. Adjusted net income per diluted share was $0.72 for the first half of 2017, up 18.0% from $0.61 for the first six months of 2016.

Dirk Allison, President and Chief Executive Officer of Addus, remarked, "Addus performed well for the second quarter of 2017, with a solid 3.9% increase in same-store sales and expanded profit margins driving a 22.6% increase in adjusted earnings per diluted share. In addition to this substantial earnings growth, we announced a definitive agreement to acquire Options Home Care during the second quarter, a transaction we closed on schedule on August 1, 2017. We also entered into a new $250 million credit facility during the second quarter and finished our preparations to implement our new ADP payroll system, which we successfully completed in July."

The increase in net service revenues for the second quarter of 2017 was generated through organic growth and reflected the exit of the Company's Adult Day Services business. The revenue growth for the second quarter of 2017 was comprised of a slight increase in billable hours per business day compared with the second quarter last year, as well as a 2.4% increase in revenue per billable hour.

Addus completed the second quarter with $15.9 million in cash and $45 million of bank debt. Net cash used by operating activities was $21.0 million for the second quarter, compared with $12.3 million for the second quarter of 2016, largely due to the timing of payments related to the Company's accounts receivable with the state of Illinois. As a result of the passage of the new Illinois budget in early July, the Company has received payments of $70.2 million on the state's past due non-Medicaid accounts receivable.

Mr. Allison added, "Our financial and operating performance for the second quarter has generated meaningful operating momentum as we move into the second half of 2017. The completion of our new ADP payroll system was a fundamental component of our plans to improve the productivity and efficiency of our existing operations. In addition, we've already demonstrated its ability to enhance our acquisition integration processes through the seamless integration of Options Home Care's operations. This transaction brings annualized revenues of over $20 million to Addus, and the integration process was essentially completed the day of the transaction's closing. With the new payroll system in place, as well as our new credit facility, we believe we are well positioned to pursue additional acquisition opportunities in our highly fragmented industry.

"While our focus on improving our processes, quality and efficiency continues, we have successfully completed all the major initiatives launched in the first half of 2016. As a result, we are highly focused on executing our organic and acquisition growth strategies, which we believe will produce further long-term growth in earnings and shareholder value."

Non-GAAP Financial Measures

The information provided in this release includes adjusted net income per diluted share, adjusted EBITDA and adjusted net service revenues, which are non-GAAP financial measures. The Company defines adjusted net income per diluted share as net income per diluted share, adjusted for M&A expenses, stock-based compensation expense, restructure charges and severance and other costs. The Company defines adjusted EBITDA as net income before interest expense, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, restructure charges and severance and other costs. The Company defines adjusted net service revenues as net service revenues 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 per diluted share to net income per diluted share, a reconciliation of adjusted EBITDA to net income 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 per diluted share, adjusted EBITDA 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, August 8, 2017, 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 40182637. A telephonic replay of the conference call will be available through midnight on August 22, 2017, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 40182637.

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 of the conference call will also be available on the Company's website for one month, beginning approximately three 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 "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 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 15, 2017, which is available at www.sec.gov. 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

Addus is a provider of comprehensive personal care services that are provided in the home and assist with activities of daily living. Addus' consumers are primarily persons 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. At June 30, 2017, Addus provided personal care services to approximately 34,000 consumers through 110 locations across 24 states. For more information, please visit www.addus.com.

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SOURCE Addus HomeCare Corporation

Brian W. Poff, Executive Vice President, Chief Financial Officer, Addus HomeCare Corporation, (469) 535-8200, investorrelations@addus.com; Scott Brittain, Corporate Communications, Inc., (615) 324-7308, scott.brittain@cci-ir.com