Addus HomeCare Reports Third Quarter 2009 Results
Recent Corporate Highlights:
* Net service revenues for the third quarter 2009 of
* Adjusted EBITDA for the third quarter 2009 of
* Net income per diluted share for the third quarter 2009 of
* Initial public offering ("IPO") of 5.4 million shares for net proceeds
of
Mr. Heaney continued, "We are gratified by the completion of our IPO. The interest from investors reflects the dedication of our professionals, who continue to leverage our integrated service model to meet the needs of patients across both segments of our business."
Third Quarter Ended
Total net service revenues for the third quarter 2009 were
Net service revenues in the third quarter 2009 for the Home & Community segment were
Net service revenues in the third quarter 2009 for the
Adjusted earnings before interest, taxes, depreciation, amortization, and stock based compensation ("Adjusted EBITDA"), for the third quarter 2009 was
Net income, prior to deducting preferred stock dividends, for the third quarter 2009, was
Nine Months Ended
Total net service revenues for the nine months ended
Net service revenues for the nine months ended
Net service revenues for the nine months ended
Adjusted EBITDA for the nine months ended
Net income, prior to deducting preferred stock dividends, for the nine months ended
Recent Developments
On
Addus completed its initial public offering of 5.4 million shares of common stock at
Non-GAAP Financial Measure
The information provided in this release includes adjusted EBITDA, a non-GAAP financial measure, which the Company defines as net income plus depreciation and amortization, net interest expense, income tax expense 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 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
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About Addus
Addus is a comprehensive provider of a broad range of social and medical services in the home. Addus' services include personal care and assistance with activities of daily living, skilled nursing and rehabilitative therapies, and adult day care. Addus' consumers are individuals with special needs 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, the
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 changes in reimbursement, changes in government regulations, changes in
(Unaudited tables and notes follow)
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(amounts in thousands, except share and per share data)
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
Net service revenues $66,803 $62,709 $193,608 $173,577
Cost of service revenues 47,148 44,844 136,588 123,580
------ ------ ------- -------
Gross profit 19,655 17,865 57,020 49,997
General and administrative
expenses 14,375 13,346 42,358 38,004
Depreciation and amortization 1,234 1,604 3,678 4,445
----- ----- ----- -----
Total operating expenses 15,609 14,950 46,036 42,449
------ ------ ------ ------
Operating income 4,046 2,915 10,984 7,548
Interest expense, net 1,021 1,256 3,189 3,840
----- ----- ----- -----
Income from operations before
taxes 3,025 1,659 7,795 3,708
Income tax expense 935 348 2,409 778
--- --- ----- ---
Net income 2,090 1,311 5,386 2,930
Less: Preferred stock
dividends (1,157) (1,038) (3,441) (3,114)
------ ------ ------ ------
Net income (loss)
attributable to common
shareholders $933 $273 $1,945 $(184)
==== ==== ====== =====
Income (loss) per common share:
Basic $0.92 $0.27 $1.91 $(0.18)
===== ===== ===== ======
Diluted $0.40 $0.26 $1.04 $(0.18)
===== ===== ===== ======
Weighted average number of
common shares outstanding:
Basic 1,019,250 1,019,250 1,019,250 1,019,250
========= ========= ========= =========
Diluted 5,162,358 5,117,927 5,167,261 1,019,250
========= ========= ========= =========
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(amounts in thousands, except share and per share data)
(Unaudited)
September 30, 2009 December 31, 2008
------------------ -----------------
Assets
------
Current assets
Cash $2,620 $6,113
Accounts receivable, net 62,506 49,237
Prepaid expenses and other
current assets 6,977 5,147
Deferred tax assets 4,391 3,826
Income taxes receivable - 460
--- ---
Total current assets 76,494 64,783
------ ------
Property and equipment, net 3,064 3,421
----- -----
Other assets
Goodwill 48,186 47,926
Intangible assets, net 14,070 17,035
Deferred tax assets 907 1,223
Other assets 2,111 1,360
----- -----
Total other assets 65,274 67,544
------ ------
Total assets $144,832 $135,748
======== ========
Liabilities and stockholders' equity
------------------------------------
Current liabilities
Accounts payable $3,887 $3,879
Accrued expenses 29,675 22,721
Current maturities of long-term debt 10,223 7,101
Deferred revenue 1,871 2,175
----- -----
Total current liabilities 45,656 35,876
------ ------
Preferred stock dividends 12,663 9,222
Long-term debt, less current maturities 49,781 56,075
Total stockholders' equity 36,732 34,575
------ ------
Total liabilities and stockholders' equity $144,832 $135,748
======== ========
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
For the Nine Months Ended
-------------------------
September 30, 2009 September 30, 2008
------------------ ------------------
Net Income $5,386 $2,930
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and amortization 3,678 4,445
Deferred income taxes (249) (641)
Change in fair value of
financial instrument (395) 216
Stock-based compensation 210 277
Amortization of debt issuance
costs 530 318
Provision for doubtful accounts 2,097 1,755
Gain on sale of assets - (14)
Changes in operating assets and
liabilities:
Accounts receivable (15,366) (6,928)
Prepaid expenses and other
assets (1,830) (3,175)
Income taxes receivable 460 -
Checks issued against
future deposits - (3,956)
Accounts payable 862 494
Accrued expenses 7,040 7,972
Deferred revenue (304) 133
Income taxes (367) (292)
---- ----
Net cash provided by operating
activities 1,752 3,534
----- -----
Acquisitions of businesses,
net of acquired cash (1,717) (4,809)
Proceeds from sale of equipment - 17
Purchases of property and
equipment (356) (259)
---- ----
Net cash used in investing
activities (2,073) (5,051)
------ ------
Borrowings on term-loan - 5,700
Payments on term-loan (4,987) (3,529)
Net borrowings (repayments) on
revolving credit loan 306 2,213
Net borrowings (repayments) on
other notes 1,509 (29)
----- ---
Net cash provided by (used in)
financing activities (3,172) 4,355
------ -----
Net change in cash (3,493) 2,838
Cash at the beginning of period 6,113 21
----- --
Cash at the end of the period $2,620 $2,859
====== ======
Segment Information (Unaudited)
-------------------------------
For the Three Months Ended September 30, 2009
---------------------------------------------
Home & Community Home Health Corporate Total
---------------- ----------- --------- -----
Net service revenues $53,886 $12,917 $ - $66,803
Cost of service revenues 40,459 6,689 - 47,148
------ ----- ----- ------
Gross profit 13,427 6,228 - 19,655
General and
administrative expenses 7,149 3,990 3,236 14,375
Depreciation and
amortization 844 188 202 1,234
--- --- --- -----
Total operating expenses 7,993 4,178 3,438 15,609
----- ----- ----- ------
Operating income $5,434 $2,050 $(3,438) $4,046
====== ====== ======= ======
For the Three Months Ended September 30, 2008
---------------------------------------------
Home & Community Home Health Corporate Total
---------------- ----------- --------- -----
Net service revenues $50,663 $12,046 $ - $62,709
Cost of service revenues 38,246 6,598 - 44,844
------ ----- ----- ------
Gross profit 12,417 5,448 - 17,865
General and
administrative expenses 6,491 3,761 3,094 13,346
Depreciation and
amortization 1,174 230 200 1,604
----- --- --- -----
Total operating expenses 7,665 3,991 3,294 14,950
----- ----- ----- ------
Operating income $4,752 $1,457 $(3,294) $2,915
====== ====== ======= ======
For the Nine Months Ended September 30, 2009
--------------------------------------------
Home & Community Home Health Corporate Total
---------------- ----------- --------- -----
Net service revenues $156,387 $37,221 $ - $193,608
Cost of service revenues 117,079 19,509 - 136,588
------- ------ ------ -------
Gross profit 39,308 17,712 - 57,020
General and
administrative expenses 21,022 11,538 9,798 42,358
Depreciation and
amortization 2,511 581 586 3,678
----- --- --- -----
Total operating expenses 23,533 12,119 10,384 46,036
------ ------ ------ ------
Operating income $15,775 $5,593 $(10,384) $10,984
======= ====== ======== =======
For the Nine Months Ended September 30, 2008
--------------------------------------------
Home & Community Home Health Corporate Total
---------------- ----------- --------- -----
Net service revenues $138,550 $35,027 $ - $173,577
Cost of service revenues 104,388 19,192 - 123,580
------- ------ ----- -------
Gross profit 34,162 15,835 - 49,997
General and
administrative expenses 18,138 11,213 8,653 38,004
Depreciation and
amortization 3,164 689 592 4,445
----- --- --- -----
Total operating expenses 21,302 11,902 9,245 42,449
------ ------ ----- ------
Operating income $12,860 $3,933 $(9,245) $7,548
======= ====== ======= ======
Key Statistical and Financial Data (Unaudited)
----------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
General:
Adjusted EBITDA (in thousands) (1) $5,350 $4,625 $14,872 $12,270
States served at period end 16 16
Locations at period end 120 122
Employees at period end 12,567 12,422
Home & Community
Average weekly census 20,236 19,936 20,176 19,184
Billable hours (in thousands) 3,248 3,162 9,600 8,991
Billable hours per business day 50,750 49,406 50,262 46,828
Revenues per billable hour $16.59 $16.02 $16.29 $15.41
Home Health
Average weekly census:
Medicare 1,451 1,292 1,439 1,245
Non-Medicare 1,579 1,397 1,550 1,388
Medicare admissions (2) 1,995 1,811 5,797 5,059
Medicare revenues per episode
completed $2,514 $2,667 $2,517 $2,635
Percentage of Revenues by Payor:
State, local or other governmental 81.1% 83.0% 81.6% 82.3%
Medicare 11.8% 11.4% 11.8% 11.6%
Other 7.1% 5.6% 6.6% 6.1%
(1) We define Adjusted EBITDA as earnings before interest, 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.
(2) Medicare admissions represents the aggregate number of new cases
approved for Medicare services during a specified period.
For the Three For the Nine
Months Ended Months Ended
Adjusted EBITDA (1) (Unaudited) September 30, September 30,
------------------------------- ------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Reconciliation of Adjusted EBITDA to
Net Income:
Net income $2,090 $1,311 $5,386 $2,930
Net interest expense 1,021 1,256 3,189 3,840
Income tax expense 935 348 2,409 778
Depreciation and amortization 1,234 1,604 3,678 4,445
Stock-based compensation expense 70 106 210 277
-- --- --- ---
Adjusted EBITDA $5,350 $4,625 $14,872 $12,270
====== ====== ======= =======
(1) We define Adjusted EBITDA as earnings before interest, 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.
Investor Contact:
Carol Ruth / Amy Glynn The Ruth Group
Phone: (646) 536-7004 / 7023
Email: cruth@theruthgroup.com
Email: aglynn@theruthgroup.com
SOURCE
Carol Ruth, +1-646-536-7004, cruth@theruthgroup.com
or Amy Glynn, +1-646-536-7023, aglynn@theruthgroup.com, both of The Ruth Group
