Addus HomeCare Announces Fourth-Quarter 2018 Financial Results
Net service revenues increased 24.8% for the quarter to
Adjusted net income per diluted share for the fourth quarter of 2018 excludes M&A expenses of
For 2018, net service revenues were
Adjusted EBITDA increased 17.0% for the fourth quarter of 2018 to
"Addus delivered solid results for the fourth quarter of 2018, marking a strong finish to our year," remarked
"Our results in 2018 reflect execution of our growth strategy, as we completed several key acquisitions during the year that added over
At the end of 2018, the Company had cash of
Mr. Allison concluded, "Looking ahead to 2019, we believe we are well positioned to achieve further profitable growth both from our current operations and acquisitions. Our objectives for organic growth for the year are consistent with our targeted range of 3% to 5% for same-store revenue growth. In addition, we previously announced a definitive agreement to purchase VIP Health Care Services, with annual revenues of approximately
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, severance and other costs, write off of debt issuance costs, interest income from the
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," "will," 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, 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
About Addus
Addus is a provider of home care services that include, primarily, personal care services that assist with activities of daily living, as well as hospice and home health services. Addus' consumers are primarily persons who, without these services, 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. Addus currently provides home care services to approximately 39,000 consumers through 156 locations across 24 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 Months |
For the Year Ended |
|||||
2018 |
2017(A) |
2018 |
2017(B) |
||||
Net service revenues |
$ 139,803 |
$ 112,028 |
$ 518,119 |
$ 425,994 |
|||
Cost of service revenues |
101,859 |
81,243 |
379,843 |
310,119 |
|||
Gross profit |
37,944 |
30,785 |
138,276 |
115,875 |
|||
27.1% |
27.5% |
26.7% |
27.2% |
||||
General and administrative expenses |
28,938 |
19,662 |
105,025 |
76,902 |
|||
(Gain) loss on sale of assets |
38 |
(402) |
38 |
(2,467) |
|||
Depreciation and amortization |
1,967 |
1,853 |
8,642 |
6,663 |
|||
Provision for doubtful accounts |
58 |
2,202 |
272 |
8,409 |
|||
Total operating expenses |
31,001 |
23,315 |
113,977 |
89,507 |
|||
Operating income from continuing operations |
6,943 |
7,470 |
24,299 |
26,368 |
|||
Interest expense |
1,179 |
841 |
5,016 |
4,472 |
|||
Interest income |
(125) |
(14) |
(2,592) |
(66) |
|||
Other income |
- |
(52) |
- |
(217) |
|||
Income from continuing operations before income taxes |
5,889 |
6,695 |
21,875 |
22,179 |
|||
Income tax expense from continuing operations |
1,213 |
3,695 |
4,498 |
8,645 |
|||
Net income from continuing operations |
4,676 |
3,000 |
17,377 |
13,534 |
|||
Income from discontinued operations, |
126 |
147 |
126 |
147 |
|||
Earnings from discontinued operations |
126 |
147 |
126 |
147 |
|||
Net income |
$ 4,802 |
$ 3,147 |
$ 17,503 |
$ 13,681 |
|||
Net income per share: |
|||||||
Continuing Operations |
$ 0.35 |
$ 0.26 |
$ 1.40 |
$ 1.16 |
|||
Discontinued Operations |
$ 0.01 |
$ 0.01 |
$ 0.01 |
$ 0.01 |
|||
Weighted average number of common shares |
13,381 |
11,638 |
12,383 |
11,623 |
|||
Cash Flow Information: |
For the Three Months |
For the Year Ended |
|||||
2018 |
2017 |
2018 |
2017 |
||||
Net cash provided by operating activities |
$ 8,524 |
$ 10,193 |
$ 33,203 |
$ 52,771 |
|||
Net cash (used in) investing activities |
(2,058) |
(1,160) |
(67,789) |
(24,268) |
|||
Net cash (used in) provided by financing activities |
(83,537) |
(967) |
51,238 |
17,238 |
|||
Net change in cash |
(77,071) |
8,066 |
16,652 |
45,741 |
|||
Cash at the beginning of the period |
147,477 |
45,688 |
53,754 |
8,013 |
|||
Cash at the end of the period |
$ 70,406 |
$ 53,754 |
$ 70,406 |
$ 53,754 |
|||
(A) Includes revision to previously reported amounts to increase net service revenues by $70, increase provision for doubtful |
|||||||
(B) Includes revision to previously reported amounts to increase net service revenues by $279, increase provision for doubtful |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited) |
|||
December 31, |
|||
2018 |
2017(A) |
||
Assets |
|||
Current assets |
|||
Cash |
$ 70,406 |
$ 53,754 |
|
Accounts receivable, net |
108,000 |
92,888 |
|
Prepaid expenses and other current assets |
7,098 |
8,379 |
|
Total current assets |
185,504 |
155,021 |
|
Property and equipment, net |
10,658 |
7,489 |
|
Other assets |
|||
Goodwill |
135,442 |
90,339 |
|
Intangible assets, net |
23,784 |
16,596 |
|
Deferred tax assets |
- |
1,601 |
|
Total other assets |
159,226 |
108,536 |
|
Total assets |
$ 355,388 |
$ 271,046 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities |
|||
Accounts payable |
$ 12,238 |
$ 6,736 |
|
Accrued expenses |
49,204 |
44,596 |
|
Current portion of long-term debt, net of debt issuance costs |
62 |
3,099 |
|
Total current liabilities |
61,504 |
54,431 |
|
Long-term debt, less current portion, net of debt issuance costs |
17,222 |
39,860 |
|
Deferred tax liabilities, net |
494 |
- |
|
Other long-term liabilities |
635 |
446 |
|
Total long-term liabilities |
18,351 |
40,306 |
|
Total liabilities |
79,855 |
94,737 |
|
Total stockholders' equity |
275,533 |
176,309 |
|
Total liabilities and stockholders' equity |
$ 355,388 |
$ 271,046 |
|
(A) Includes revision to previously reported amounts to increase accounts receivable, net by $3,936, increase accounts payable by |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Net Service Revenues by Segment (Amounts in thousands) (Unaudited) |
|||||||
For the Three Months |
For the Twelve Months Ended December 31, |
||||||
2018 |
2017 |
2018 |
2017 |
||||
Personal Care |
$ 129,805 |
$ 112,028 |
$ 492,413 |
$ 425,994 |
|||
Hospice |
7,085 |
- |
18,850 |
- |
|||
Home Health |
2,913 |
- |
6,856 |
- |
|||
Total Revenue |
$ 139,803 |
$ 112,028 |
$ 518,119 |
$ 425,994 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited) |
|||||||
For the Three Months |
For the Twelve Months Ended December 31, |
||||||
2018 |
2017 |
2018 |
2017 |
||||
General |
|||||||
Adjusted EBITDA (in thousands) (1) |
$ 12,344 |
$ 10,551 |
$ 43,948 |
$ 36,897 |
|||
States served at period end |
- |
- |
24 |
24 |
|||
Locations at period end |
- |
- |
156 |
116 |
|||
Employees at period end |
- |
- |
33,153 |
26,097 |
|||
Personal Care |
|||||||
Average billable census - same store (2) |
33,992 |
34,730 |
34,056 |
35,343 |
|||
Average billable census - acquisitions |
3,575 |
- |
3,541 |
- |
|||
Average billable census total (2) |
37,567 |
34,730 |
37,597 |
35,343 |
|||
Billable hours (in thousands) |
7,069 |
6,148 |
26,934 |
23,833 |
|||
Average billable hours per census per month |
62.1 |
59.0 |
59.3 |
56.2 |
|||
Billable hours per business day |
107,106 |
94,582 |
103,195 |
91,664 |
|||
Revenues per billable hour |
$ 18.36 |
$ 18.21 |
$ 18.28 |
$ 17.86 |
|||
Hospice |
|||||||
Admissions |
418 |
- |
1,061 |
- |
|||
Average daily census |
528 |
- |
528 |
- |
|||
Average length of stay |
120.7 |
- |
136.2 |
- |
|||
Patient days |
48,540 |
- |
128,819 |
- |
|||
Revenue per patient day |
$ 145.97 |
$ - |
$ 146.33 |
$ - |
|||
Home Health |
|||||||
New Admissions |
716 |
- |
1,757 |
- |
|||
Recertifications |
458 |
- |
1,443 |
- |
|||
Total Volume |
1,174 |
- |
3,200 |
- |
|||
Visits |
19,080 |
- |
53,711 |
- |
|||
Percentage of Revenues by Payor: |
|||||||
Personal Care |
|||||||
State, local and other governmental programs |
56.8% |
62.4% |
58.2% |
64.2% |
|||
Managed care organizations |
36.3 |
34.8 |
35.3 |
33.1 |
|||
Private duty |
4.0 |
2.2 |
4.1 |
2.1 |
|||
Commercial |
1.5 |
0.6 |
1.3 |
0.6 |
|||
Other |
1.4 |
- |
1.1 |
- |
|||
Hospice |
|||||||
Medicare |
93.5% |
-% |
93.6% |
-% |
|||
Managed care organizations |
4.6 |
- |
5.6 |
- |
|||
Other |
1.9 |
- |
0.8 |
||||
Home Health |
|||||||
Medicare |
84.0% |
-% |
88.0% |
-% |
|||
Managed care organizations |
14.5 |
- |
11.0 |
- |
|||
Other |
1.5 |
- |
1.0 |
- |
|||
(1) We define Adjusted EBITDA as net income before interest expense, taxes, depreciation, amortization, M&A expenses, stock- |
|||||||
(2) Exited sites would have reduced same store census for the three months ended December 31, 2017, by 0 and the twelve months |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (Unaudited) |
|||||||
For the Three Months |
For the Twelve Months |
||||||
2018 |
2017 |
2018 |
2017 |
||||
Reconciliation of Adjusted EBITDA to Net Income: (1) |
|||||||
Net income |
$ 4,802 |
$ 3,147 |
$ 17,503 |
$ 13,681 |
|||
Less: (Earnings) from discontinued operations, net of tax |
(126) |
(147) |
(126) |
(147) |
|||
Net income from continuing operations |
4,676 |
3,000 |
17,377 |
13,534 |
|||
Interest expense, net |
828 |
827 |
4,451 |
3,083 |
|||
Interest income from Illinois |
- |
- |
(2,253) |
- |
|||
Secondary offering costs |
124 |
- |
189 |
- |
|||
Write off debt issuance costs |
226 |
- |
226 |
1,323 |
|||
Write down deferred tax asset/impact of Tax |
- |
1,305 |
- |
1,305 |
|||
Loss on sale of assets |
38 |
- |
38 |
- |
|||
Gain on sale of joint ventures/adult day service |
- |
(402) |
- |
(2,467) |
|||
Other non-operating income |
- |
(52) |
- |
(217) |
|||
Income tax expense |
1,213 |
2,390 |
4,498 |
7,340 |
|||
Depreciation and amortization |
1,967 |
1,853 |
8,642 |
6,663 |
|||
M&A expenses |
1,790 |
774 |
4,989 |
2,116 |
|||
Stock-based compensation expense |
1,148 |
734 |
4,109 |
2,552 |
|||
Restructure charges |
297 |
76 |
1,035 |
627 |
|||
Severance and other costs |
37 |
46 |
647 |
1,038 |
|||
Adjusted EBITDA |
$ 12,344 |
$ 10,551 |
$ 43,948 |
$ 36,897 |
|||
Reconciliation of Adjusted Net Income to Net Income: (2) |
|||||||
Net income |
$ 4,802 |
$ 3,147 |
$ 17,503 |
$ 13,681 |
|||
Earnings from discontinued operations, net of tax |
(126) |
(147) |
(126) |
(147) |
|||
Interest income from Illinois, net of tax |
- |
- |
(1,790) |
- |
|||
Write down deferred tax asset from Tax Reform |
- |
1,554 |
- |
1,554 |
|||
Gain on sale of joint ventures/adult day service |
- |
(276) |
- |
(1,532) |
|||
Write off debt issuance costs, net of tax |
- |
- |
- |
909 |
|||
Other non-operating income, net of tax |
- |
(36) |
- |
(149) |
|||
M&A expenses, net of tax |
1,415 |
533 |
3,954 |
1,455 |
|||
Stock-based compensation expense, net of tax |
903 |
504 |
3,256 |
1,754 |
|||
Restructuring charges, net of tax |
331 |
52 |
969 |
431 |
|||
Severance and other costs, net of tax |
29 |
32 |
512 |
713 |
|||
Adjusted Net Income |
$ 7,354 |
$ 5,363 |
$ 24,278 |
$ 18,669 |
|||
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Continued) (amounts in thousands, except per share data) (Unaudited) |
|||||||
For the Three Months |
For the Twelve Months |
||||||
2018 |
2017 |
2018 |
2017 |
||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3) |
|||||||
Net income per diluted share |
$ 0.35 |
$ 0.26 |
$ 1.40 |
$ 1.16 |
|||
Interest income from Illinois per diluted share |
- |
- |
(0.14) |
- |
|||
Write down deferred tax asset from Tax Reform |
- |
0.12 |
- |
0.12 |
|||
Write off debt issuance costs per diluted share |
- |
- |
- |
0.09 |
|||
Gain on sale of adult day service centers per diluted share |
- |
- |
- |
(0.12) |
|||
Gain on sale of joint venture divestiture per diluted share |
- |
(0.01) |
- |
(0.01) |
|||
M&A expenses per diluted share |
0.11 |
0.04 |
0.32 |
0.12 |
|||
Restructure charges per diluted share |
0.02 |
- |
0.08 |
0.03 |
|||
Severance and other costs per diluted share |
- |
- |
0.04 |
0.06 |
|||
Stock-based compensation expense per diluted share |
0.07 |
0.04 |
0.26 |
0.15 |
|||
Adjusted Net Income Per Diluted Share |
$ 0.55 |
$ 0.45 |
$ 1.96 |
$ 1.60 |
|||
Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) |
|||||||
Net service revenues |
$ 139,803 |
$ 112,028 |
$ 518,119 |
$ 425,994 |
|||
Revenues associated with the closure of certain sites |
- |
- |
2 |
(1,339) |
|||
Adjusted Net Service Revenues |
$ 139,803 |
$ 112,028 |
$ 518,121 |
$ 424,655 |
|||
(1) We define Adjusted EBITDA as earnings before interest expense, interest income, other non-operating income, taxes, depreciation, amortization, |
|||||||
(2) We define Adjusted Net Income as net income before interest income from the state of Illinois, M&A expenses, stock-based compensation |
|||||||
(3) We define Adjusted diluted earnings per share as earnings per share, adjusted for interest income from the State of Illinois, M&A expenses, stock |
|||||||
(4) We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues is a performance |
View original content:http://www.prnewswire.com/news-releases/addus-homecare-announces-fourth-quarter-2018-financial-results-300806099.html
SOURCE
Brian W. Poff, Executive Vice President, Chief Financial Officer, Addus HomeCare Corporation, (469) 535-8200, investorrelations@addus.com or Dru Anderson, Corporate Communications, Inc., (615) 324-7346, dru.anderson@cci-ir.com