8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 4, 2019

 

 

ADDUS HOMECARE CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-34504   20-5340172

(State or other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

6801 Gaylord Parkway, Suite 110,

Frisco, TX

    75034  
(Address of Principal Executive Offices)     (Zip Code)  

(469) 535-8200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.001 par value   ADUS   The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On November 4, 2019, Addus HomeCare Corporation (the “Company”) issued a press release (the “Press Release”) announcing, among other matters, the Company’s results of operations for the fiscal quarter ended September 30, 2019. A copy of the Press Release is furnished herewith as Exhibit 99.1 to this report and is incorporated herein by reference.

 

Item 7.01

Regulation FD Disclosure.

On November 4, 2019, the Company issued the Press Release, announcing, among other matters, its results of operations for the fiscal quarter ended September 30, 2019, the text of which is set forth as Exhibit 99.1.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits:

 

Exhibit

No.

  

Description

99.1    Press Release of Addus HomeCare Corporation dated November 4, 2019.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    ADDUS HOMECARE CORPORATION
Dated: November 4, 2019     By:  

/s/ Brian Poff

    Name:   Brian Poff
    Title:   Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

 

Contacts:

    
Brian W. Poff      Dru Anderson
Executive Vice President, Chief Financial Officer    Corporate Communications, Inc.
Addus HomeCare Corporation      (615) 324-7346
(469) 535-8200      dru.anderson@cci-ir.com
investorrelations@addus.com     

ADDUS HOMECARE ANNOUNCES THIRD-QUARTER 2019 FINANCIAL RESULTS

Revenues Grow 23.3% to $169.8 Million

Net Income Increases 34.0% to $4.9 Million,

$0.34 per Diluted Share and Adjusted Diluted Earnings per Share of $0.62

Adjusted EBITDA Increases 27.8% to $14.9 Million

Same -Store Sales for Personal Care Services Increase 7.7%

Frisco, Texas (November 4, 2019) – Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the third quarter and nine months ended September 30, 2019.

Net service revenues increased 23.3% for the third quarter to $169.8 million from $137.7 million for the third quarter of 2018. Net income increased 34.0% to $4.9 million for the third quarter of 2019 from $3.6 million for the third quarter last year, while net income per diluted share was $0.34 compared with $0.28 for the same period a year ago. Adjusted net income per diluted share grew 29.2% to $0.62 for the third quarter of 2019 from $0.48 for the third quarter of 2018. Adjusted net income per diluted share for the third quarter of 2019 excludes interest income from the State of Illinois of $0.02, M&A expenses of $0.10, severance and other non-recurring charges of $0.08, and stock-based compensation expense of $0.08. For the third quarter of 2018, adjusted net income per diluted share excludes M&A expenses of $0.11, other non-recurring charges of $0.02, and stock-based compensation expense of $0.07. Adjusted EBITDA increased 27.8% to $14.9 million for the third quarter of 2019 from $11.6 million for the third quarter of 2018. (See page 8 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.)

During the third quarter of 2019, the Company reached a final settlement related to a 2016 qui tam claim filed in the Northern District of Illinois related to the Company’s former Illinois home health business, substantially all of which was sold in 2013. As a result of the settlement of this outstanding litigation, the results for the third quarter of 2019 include a charge of $574,000, or $0.04 per diluted share, net of tax, for discontinued operations related to the loss from home health business.

For the first nine months of 2019, net service revenues increased 21.2% to $458.7 million from $378.4 million for the first nine months of 2018. Net income increased 18.8% to $15.2 million for the first nine months of 2019 from $12.8 million for the first nine months of last year, while net income per diluted share increased to $1.12 from $1.06. Adjusted net income per diluted share grew 20.6% to $1.70 for the first nine months of 2019 from $1.41 for the same period in 2018.

Commenting on the results, Dirk Allison, President and Chief Executive Officer, said, “We are pleased with our continued profitable growth as reflected in our solid third quarter financial and operating performance. Our third quarter revenue includes strong organic growth, with same-store sales for our personal care services increasing 7.7%, ahead of our target range of 3% to 5%. In addition to overall favorable demand trends during the quarter, additional key drivers for this increase were the expected higher contributions from our New York market due to the state-led narrowing of the provider network and increased reimbursement rates from managed care plans in our Illinois market that commenced July 1, 2019.

 

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ADUS Announces Third-Quarter 2019 Financial Results

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November 4, 2019

 

“Since the third quarter of 2018 represented our first full quarter of operations for hospice care following the acquisition of Ambercare, we are now reporting comparable same-store sales for hospice and home health services, which showed a 32.3% increase over the third quarter last year. We are excited about the opportunities for continued growth in these important care segments, which enhance our strong value proposition and our ability to meet the increasing demand for comprehensive home care services.”

Mr. Allison added, “In addition to strong organic growth, we have continued to pursue a consistent and targeted acquisition strategy in 2019 with favorable results. On October 1, 2019, we completed our fourth acquisition of the year with the purchase of Hospice Partners of America, LLC, (Hospice Partners) an established provider of hospice services in multiple states. With annualized revenue from Hospice Partners of approximately $55.0 million, the completion of this transaction brings our total acquired annualized revenue in 2019 to approximately $130.0 million. Importantly, the addition of experienced hospice leaders to our current team enhances our ability to develop additional opportunities to expand our market reach for hospice services. We continue to work on the integration of our combined operations and are pleased with our progress to date.”

At the end of the third quarter of 2019 and prior to the closing of the Hospice Partners acquisition, the Company had cash of $239.6 million and bank debt of $60.2 million, with availability under its revolving credit facility of $134.1 million. Net cash provided by operating activities was $12.2 million for the third quarter of 2019.

“Looking ahead, we remain confident in the ongoing strength of our acquisition pipeline. With the completion of our underwritten stock offering on September 9, 2019, and our solid cash position and minimal debt, we have the financial capability to continue to execute this strategy. Combined with consistent organic growth, we believe Addus is well-positioned for continued success as a leading provider of comprehensive home care services. We look forward to the opportunities ahead to continue to provide quality care to our patients while delivering value to our shareholders,” Mr. Allison concluded.

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, severance and other non-recurring costs, write off of debt issuance costs, interest income from the State of Illinois and gain on sale of ADS. The Company defines adjusted EBITDA as net income before interest expense, interest income, other non-operating income, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, severance and other non-recurring costs, interest income from the State of Illinois and gain on sale of ADS. 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.

 

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ADUS Announces Third-Quarter 2019 Financial Results

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November 4, 2019

 

Conference Call

Addus will host a conference call on Tuesday, November 5, 2019, 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 4084731. A telephonic replay of the conference call will be available through midnight on November 19, 2019, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 4084731.

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,” “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, 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, any failure of Illinois to enact a minimum wage offset and/or the timing of any such enactment, 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 14, 2018, its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 7, 2018, and its Prospectus Supplement filed with the Securities and Exchange Commission on August 16, 2018, which are all 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 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 42,000 consumers through 186 locations across 26 states. For more information, please visit www.addus.com.

 

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ADUS Announces Third-Quarter 2019 Financial Results

Page 4

November 4, 2019

 

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
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2019     2018     2019     2018  

Net service revenues

   $ 169,803     $ 137,716     $ 458,749     $ 378,449  

Cost of service revenues

     123,817       100,926       334,719       277,985  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     45,986       36,790       124,030       100,464  
     27.1     26.7     27.0     26.5

General and administrative expenses

     35,950       28,267       95,429       76,298  

Depreciation and amortization

     2,756       2,535       7,365       6,676  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     38,706       30,802       102,794       82,974  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income from continuing operations

     7,280       5,988       21,236       17,490  

Total interest expense, net

     80       1,430       1,068       1,368  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

before income taxes

     7,200       4,558       20,168       16,122  

Income tax expense from

continuing operations

     1,759       927       4,347       3,287  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income from continuing operations

     5,441       3,631       15,821       12,835  

Discontinued operations:

        

Loss from Home Health Business, net of tax

     (574     —         (574     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations

     (574     —         (574     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 4,867     $ 3,631     $ 15,247     $ 12,835  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per diluted share:

        

Continuing operations

   $ 0.38     $ 0.28     $ 1.16     $ 1.06  
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations

   $ (0.04   $ —       $ (0.04   $ —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares outstanding—diluted

     14,203       12,569       13,687       12,037  
    

 

 

     

 

 

 
Cash Flow Information:    For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2019     2018     2019     2018  

Net cash provided by operating activities

   $ 12,162     $ 4,515     $ 8,084     $ 24,679  

Net cash used in investing activities

     (24,497     (2,260     (56,301     (65,731

Net cash provided by financing activities

     197,152       76,005       217,420       134,775  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash

     184,817       78,260       169,203       93,723  

Cash at the beginning of the period

     54,792       69,217       70,406       53,754  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash at the end of the period

   $ 239,609     $ 147,477     $ 239,609     $ 147,477  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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ADUS Announces Third-Quarter 2019 Financial Results

Page 5

November 4, 2019

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     September 30,  
     2019      2018  
Assets              

Current assets

     

Cash

   $ 239,609      $ 147,477  

Accounts receivable, net

     138,045        111,368  

Prepaid expenses and other current assets

     8,822        6,935  
  

 

 

    

 

 

 

Total current assets

     386,476        265,780  
  

 

 

    

 

 

 

Property and equipment, net

     11,527        9,453  
  

 

 

    

 

 

 

Other assets

     

Goodwill

     162,016        134,063  

Intangible assets, net

     41,119        26,197  

Operating lease assets

     17,972        —    
  

 

 

    

 

 

 

Total other assets

     221,107        160,260  
  

 

 

    

 

 

 

Total assets

   $ 619,110      $ 435,493  
  

 

 

    

 

 

 
Liabilities and Stockholders’ Equity              

Current liabilities

     

Accounts payable

   $ 14,741      $ 9,847  

Accrued expenses

     19,133        10,596  

Accrued payroll

     27,043        27,236  

Accrued workers compensation

     14,399        14,846  

Current portion of long-term debt, net of debt issuance costs

     970        2,318  

Current portion of contingent earn-out obligation

     —          847  
  

 

 

    

 

 

 

Total current liabilities

     76,286        65,690  

Long-term debt, less current portion, net of debt issuance costs

     59,248        98,891  

Long-term lease liability, less current portion

     12,559        —    

Deferred tax liabilities, net

     866        1,098  

Other long-term liabilities

     163        641  
  

 

 

    

 

 

 

Total long-term liabilities

     72,836        100,630  
  

 

 

    

 

 

 

Total liabilities

     149,122        166,320  
  

 

 

    

 

 

 

Total stockholders’ equity

     469,988        269,173  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 619,110      $ 435,493  
  

 

 

    

 

 

 

 

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ADUS Announces Third-Quarter 2019 Financial Results

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November 4, 2019

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Net Service Revenues by Segment

(Amounts in thousands)

(Unaudited)

     For the Three Months
Ended September 30,
     For the Nine Months
Ended September 30,
 
     2019      2018      2019      2018  

Personal care

   $ 154,563      $ 128,179      $ 421,458      $ 362,740  

Hospice

     10,874        7,116        27,228        11,765  

Home health

     4,366        2,421        10,063        3,944  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 169,803      $ 137,716      $ 458,749      $ 378,449  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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ADUS Announces Third-Quarter 2019 Financial Results

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November 4, 2019

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Key Statistical and Financial Data

(Unaudited)

 

     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2019     2018     2019     2018  

Personal Care

        

States served at period end

         24       24  

Locations at period end

         153       148  

Average billable census—same store

     37,920       37,670       37,863       37,704  

Average billable census—acquisitions (1)

     1,422       —         1,416       —    

Average billable census total

     39,342       37,670       39,279       37,704  

Billable hours (in thousands)

     7,785       7,007       21,918       19,865  

Average billable hours per census per month

     65.5       61.5       61.5       58.2  

Billable hours per business day

     117,956       107,793       112,400       101,351  

Revenues per billable hour

   $ 19.87     $ 18.31     $ 19.23     $ 18.27  

Same store growth

        

Revenue

     7.7     3.7     6.6     4.0

Hospice

        

Locations at period end

         14       13  

Admissions

     563       393       1,548       643  

Average daily census

     791       520       659       528  

Average discharge length of stay

     120.6       145.4       121.9       146.1  

Patient days

     72,261       47,679       178,792       80,279  

Revenue per patient day

   $ 150.48     $ 149.25     $ 152.29     $ 146.55  

Same store growth

        

Revenue

     26.5     —         —         —    

Average daily census

     24.2     —         —         —    

Home Health

        

Locations at period end

         12       10  

New admissions

     910       653       2,325       1,041  

Recertifications

     764       616       1,949       985  

Total volume

     1,674       1,269       4,274       2,026  

Visits

     31,477       21,774       75,188       34,631  

Same store growth

        

Revenue

     49.1     —         —         —    

New admissions

     9.6     —         —         —    

Percentage of Revenues by Payor:

        

Personal Care

        

State, local and other governmental programs

     49.0     57.5     52.8     58.7

Managed care organizations

     44.5       35.3       40.6       35.0  

Private duty

     3.7       4.3       3.8       4.1  

Commercial

     1.7       1.5       1.6       1.2  

Other

     1.1       1.4       1.2       1.0  

Hospice

        

Medicare

     92.3     93.8     92.7     93.8

Managed care organizations

     5.4       6.0       5.2       6.1  

Other

     2.3       0.2       2.1       0.1  

Home Health

        

Medicare

     76.4     90.2     79.0     91.0

Managed care organizations

     22.0       9.1       18.6       8.3  

Other

     1.6       0.7       2.4       0.7  
(1) 

The average billable census in acquisitions of 4,936 and 4,983 for the three and nine months ended September 30, 2018, respectively, was reclassified to average billable census—same stores for comparability purposes. The average billable census for the three and nine months ended September 30, 2019 was prorated for the date of the acquisition.

 

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ADUS Announces Third-Quarter 2019 Financial Results

Page 8

November 4, 2019

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the Three Months
Ended September 30,
     For the Nine Months
Ended September 30,
 
     2019     2018      2019     2018  

Reconciliation of Adjusted EBITDA to Net Income: (1)

 

Net income

   $ 4,867     $ 3,631      $ 15,247     $ 12,835  

Loss from discontinued operations, net of tax

     574       —          574       —    
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income from continuing operations

     5,441       3,631        15,821       12,835  

Interest expense, net

     541       1,430        1,529       3,621  

Interest income from Illinois

     (461     —          (461     (2,253

Secondary offering costs

     127       65        127       65  

Income tax expense

     1,759       927        4,347       3,287  

Depreciation and amortization

     2,756       2,535        7,365       6,676  

M&A expenses

     1,946       1,666        3,183       3,198  

Stock-based compensation expense

     1,471       1,105        4,186       2,961  

Severance and other non-recurring costs

     1,289       277        2,363       1,350  
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 14,869     $ 11,636      $ 38,460     $ 31,740  
  

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation of Adjusted Net Income to Net Income: (2)

 

Net income

   $ 4,867     $ 3,631      $ 15,247     $ 12,835  

Loss from discontinued operations, net of tax

     574       —          574       —    

Interest income from Illinois, net of tax

     (348     —          (348     (1,790

M&A expenses, net of tax

     1,470       1,350        2,492       2,566  

Stock-based compensation expense, net of tax

     1,112       895        3,279       2,368  

Severance and other non-recurring costs, net of tax

     1,070       224        1,949       1,079  
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net income

   $ 8,745     $ 6,100      $ 23,193     $ 17,058  
  

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3)

 

Net income per diluted share

   $ 0.38     $ 0.28      $ 1.16     $ 1.06  

Interest income from Illinois per diluted share

     (0.02     —          (0.02     (0.15

M&A expenses per diluted share

     0.10       0.11        0.18       0.21  

Severance and other non-recurring cost

per diluted share

     0.08       0.02        0.14       0.09  

Stock-based compensation expense per diluted share

     0.08       0.07        0.24       0.20  
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 0.62     $ 0.48      $ 1.70     $ 1.41  
  

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4)

 

Net service revenues

   $ 169,803     $ 137,716      $ 458,749     $ 378,449  

Revenues associated with the closure of certain sites

     —         —          —         (2
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net service revenues

   $ 169,803     $ 137,716      $ 458,749     $ 378,447  
  

 

 

   

 

 

    

 

 

   

 

 

 
(1) 

We define Adjusted EBITDA as earnings before interest expense, interest income, other non-operating income, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, severance and other non-recurring costs and gain on the sale of ADS. 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 net income as net income before interest income from the state of Illinois, M&A expenses, stock-based compensation expense, severance and other non-recurring costs and gain on the sale of ADS. Adjusted Net Income 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.

(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 compensation expense, severance and other non-recurring costs and gain on the sale of ADS. 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.

(4) 

We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues 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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