Addus HomeCare Reports First Quarter 2013 Results
First Quarter Review
Total net service revenues from continuing operations for the first quarter of 2013 were
Our quarter was positively impacted by a one-time
Our first quarter 2012 results included the one-time gain realized on the sale of an agency for
For comparative purposes, pro forma earnings from continuing operations in the first quarter of 2013 were
We continue our efforts to expand our relationships with managed care plans and have established offices in
Subsequent Events
The
Given the recent increase in Addus' share price, it is likely Addus will be required to audit our compliance with Section 404 of the Sarbanes-Oxley Act. If required, the Company will have to invest in additional staff and establish processes necessary to meet the documentation requirements and incur increased external audit fees to include an audit of our internal controls.
Non-GAAP Financial Measures
The information provided in this release includes Adjusted EBITDA, a non-GAAP financial measure, which the Company defines as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, and stock-based compensation expense. The Company has provided, in the financial statement tables included in this press release, a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure. Management believes that Adjusted EBITDA is 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 report its 2013 first quarter results on
A live broadcast of
About Addus
Addus is a comprehensive provider of home and community based services which are primarily social in nature and are provided in the home, 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, commercial insurers and private individuals. For more information, please visit www.addus.com.
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 expected benefits and costs of 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
Investor Contact:
Chief Financial Officer
Phone: (847) 303-5300
Email: DMeulemans@addus.com
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ADDUS HOMECARE CORPORATION AND SUBSIDIARIES |
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Condensed Consolidated Statements of Income and Cash Flow Information |
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(amounts and shares in thousands, except per share data) |
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(Unaudited) |
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Income Statement Information: |
For the Three Months Ended March 31, |
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2013 |
2012 |
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Net service revenues |
$62,998 |
$58,889 |
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Cost of service revenues |
47,200 |
43,865 |
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Gross profit |
15,798 |
15,024 |
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General and administrative expenses |
11,510 |
11,570 |
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Gain on sale of agency |
- |
(495) |
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Depreciation and amortization |
546 |
631 |
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Total operating expenses |
12,056 |
11,706 |
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Operating income from continuing operations |
3,742 |
3,318 |
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Interest expense |
208 |
404 |
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Income from operations before taxes |
3,534 |
2,914 |
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Income tax expense |
847 |
1,168 |
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Net income from continuing operations |
2,687 |
1,746 |
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Discontinued operations: |
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Earnings (loss) from home health business, net of tax |
(537) |
(1,117) |
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Gain on sale of home health business, net of tax |
11,111 |
- |
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Earnings (losses) from discontinued operations |
10,574 |
(1,117) |
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Net income (loss) |
$13,261 |
$ 629 |
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Income (loss) per common share: |
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Basic and diluted |
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Continuing operations |
$ 0.25 |
$ 0.16 |
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Discontinued operations |
0.98 |
(0.10) |
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Basic and diluted income (loss) per common share |
$ 1.23 |
$ 0.06 |
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Weighted average number of common shares outstanding: |
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Basic |
10,778 |
10,756 |
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Diluted |
10,845 |
10,760 |
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Cash Flow Information: |
For the Three Months Ended March 31, |
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2013 |
2012 |
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Net cash provided by (used in) operating activities |
$13,025 |
$ (1,283) |
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Net cash provided by investing activities |
19,480 |
207 |
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Net cash provided by (used in) financing activities |
(16,458) |
375 |
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Net change in cash |
16,047 |
(701) |
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Cash at the beginning of the period |
1,737 |
2,020 |
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Cash at the end of the period |
$17,784 |
$ 1,319 |
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Condensed Consolidated Balance Sheets |
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(Amounts in thousands) |
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(Unaudited) |
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March 31, 2013 |
December 31, 2012 |
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Assets |
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Current assets |
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Cash |
$ 17,784 |
$ 1,737 |
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Accounts receivable, net |
60,640 |
71,303 |
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Prepaid expenses and other current assets |
5,515 |
7,293 |
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Assets held for sale |
- |
245 |
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Deferred tax assets |
7,258 |
7,258 |
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Total current assets |
91,197 |
87,836 |
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Property and equipment, net |
2,476 |
2,489 |
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Other assets |
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Goodwill |
50,496 |
50,536 |
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Intangible assets, net |
6,030 |
6,370 |
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Deferred tax assets |
- |
2,328 |
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Investment in joint venture |
900 |
- |
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Other assets |
251 |
298 |
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Total other assets |
57,677 |
59,532 |
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Total assets |
$ 151,350 |
$ 149,857 |
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Liabilities and stockholders' equity |
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Current liabilities |
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Accounts payable |
$ 4,818 |
$ 4,117 |
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Accrued expenses |
35,635 |
32,717 |
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Current maturities of long-term debt |
- |
208 |
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Deferred revenue |
17 |
2,148 |
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Total current liabilities |
40,470 |
39,190 |
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Long-term debt, less current maturities |
- |
16,250 |
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Deferred tax liability |
3,097 |
- |
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Total stockholders' equity |
107,783 |
94,417 |
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Total liabilities and stockholders' equity |
$ 151,350 |
$ 149,857 |
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Key Statistical and Financial Data (Unaudited) |
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For the Three Months Ended March 31, |
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2013 |
2012 |
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General: |
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Adjusted EBITDA (in thousands) (1) |
$4,393 |
$4,016 |
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States served at period end |
19 |
19 |
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Locations at period end |
96 |
96 |
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Employees at period end |
14,215 |
13,314 |
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Home & Community |
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Average billable census |
25,817 |
24,525 |
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Billable hours (in thousands) |
3,714 |
3,470 |
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Average billable hours per census per month |
48 |
47 |
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Billable hours per business day |
58,031 |
53,354 |
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Revenues per billable hour |
$16.96 |
$16.97 |
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Percentage of Revenues by Payor: |
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State, local and other governmental programs |
95 |
% |
95 |
% |
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Commercial |
1 |
1 |
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Private duty |
4 |
% |
4 |
% |
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(1) We define Adjusted EBITDA as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, 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. |
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Adjusted EBITDA (1) (Unaudited) |
For the Three Months Ended March 31, |
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2013 |
2012 |
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Reconciliation of Adjusted EBITDA to Net Income: |
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Net income |
$13,261 |
$ 629 |
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Less: (Earnings) loss from discontinued operations |
(10,574) |
1,117 |
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Net income from continuing operations |
2,687 |
1,746 |
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Interest expense |
208 |
404 |
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Income tax expense |
847 |
1,168 |
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Depreciation and amortization |
546 |
631 |
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Stock-based compensation expense |
105 |
67 |
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Adjusted EBITDA |
$ 4,393 |
$4,016 |
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(1) We define Adjusted EBITDA as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, 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. |
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