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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                  to                 

Commission file number 001-34504

 

ADDUS HOMECARE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

20-5340172

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

6303 Cowboys Way, Suite 600

Frisco, TX

 

75034

(Address of principal executive offices)

 

(Zip Code)

(469) 535-8200

(Registrant’s telephone number, including area code)

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

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

None

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No .

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

 

 

Large Accelerated Filer

 

  

Accelerated Filer

 

Non-Accelerated Filer

 

  

Smaller Reporting Company

 

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. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No .

As of July 31, 2020, Addus HomeCare Corporation had 15,664,952 shares of Common Stock outstanding.

 

 

 

 


Table of Contents

 

 

ADDUS HOMECARE CORPORATION

FORM 10-Q

INDEX

 

PART I. FINANCIAL INFORMATION

3

 

 

Item 1. Financial Statements (Unaudited)

3

 

 

Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019

3

 

 

Condensed Consolidated Statements of Income For the Three and Six Months Ended June 30, 2020 and 2019

4

 

 

Condensed Consolidated Statement of Stockholders’ Equity For the Three and Six Months Ended June 30, 2020 and 2019

5

 

 

Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2020 and 2019

6

 

 

Notes to Condensed Consolidated Financial Statements

7

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

36

 

 

Item 4. Controls and Procedures

36

 

 

PART II. OTHER INFORMATION

37

 

 

Item 1. Legal Proceedings

37

 

 

Item 1A. Risk Factors

37

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

37

 

 

Item 3. Defaults Upon Senior Securities

37

 

 

Item 4. Mine Safety Disclosures

37

 

 

Item 5. Other Information

37

 

 

Item 6. Exhibits

38

 

 

2

 


Table of Contents

 

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

 

ADDUS HOMECARE CORPORATION

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2020 and December 31, 2019

(Amounts and Shares in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

158,549

 

 

$

111,714

 

Accounts receivable, net

 

 

126,389

 

 

 

149,680

 

Prepaid expenses and other current assets

 

 

11,398

 

 

 

7,993

 

Total current assets

 

 

296,336

 

 

 

269,387

 

Property and equipment, net of accumulated depreciation and amortization

 

 

14,707

 

 

 

12,156

 

Other assets

 

 

 

 

 

 

 

 

Goodwill

 

 

275,433

 

 

 

275,368

 

Intangibles, net of accumulated amortization

 

 

53,073

 

 

 

57,079

 

Deferred tax assets, net

 

 

1,547

 

 

 

1,647

 

Operating lease assets, net

 

 

19,825

 

 

 

21,111

 

Total other assets

 

 

349,878

 

 

 

355,205

 

Total assets

 

$

660,921

 

 

$

636,748

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

17,201

 

 

$

19,641

 

Accrued payroll

 

 

28,787

 

 

 

30,587

 

Accrued expenses

 

 

32,674

 

 

 

22,429

 

Accrued workers’ compensation insurance

 

 

14,075

 

 

 

14,143

 

Current portion of long-term debt

 

 

948

 

 

 

728

 

Total current liabilities

 

 

93,685

 

 

 

87,528

 

Long-term liabilities

 

 

 

 

 

 

 

 

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

 

 

59,048

 

 

 

59,164

 

Long-term operating lease liabilities

 

 

12,672

 

 

 

14,301

 

Other long-term liabilities

 

 

655

 

 

 

163

 

Total long-term liabilities

 

 

72,375

 

 

 

73,628

 

Total liabilities

 

$

166,060

 

 

$

161,156

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock—$.001 par value; 40,000 authorized and 15,665 and 15,617 shares

   issued and outstanding as of June 30, 2020 and December 31, 2019, respectively

 

$

16

 

 

$

15

 

Additional paid-in capital

 

 

363,248

 

 

 

359,545

 

Retained earnings

 

 

131,597

 

 

 

116,032

 

Total stockholders’ equity

 

 

494,861

 

 

 

475,592

 

Total liabilities and stockholders’ equity

 

$

660,921

 

 

$

636,748

 

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

3

 


Table of Contents

 

ADDUS HOMECARE CORPORATION

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three and Six Months Ended June 30, 2020 and 2019

(Amounts and Shares in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

For the Three Months

Ended June 30,

 

 

For the Six Months

Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net service revenues

 

$

184,576

 

 

$

148,915

 

 

$

374,792

 

 

$

287,422

 

Cost of service revenues

 

 

129,579

 

 

 

109,222

 

 

 

263,960

 

 

 

210,902

 

Gross profit

 

 

54,997

 

 

 

39,693

 

 

 

110,832

 

 

 

76,520

 

General and administrative expenses

 

 

42,450

 

 

 

29,767

 

 

 

84,737

 

 

 

59,024

 

Depreciation and amortization

 

 

2,940

 

 

 

2,535

 

 

 

5,827

 

 

 

4,609

 

Total operating expenses

 

 

45,390

 

 

 

32,302

 

 

 

90,564

 

 

 

63,633

 

Operating income

 

 

9,607

 

 

 

7,391

 

 

 

20,268

 

 

 

12,887

 

Interest income

 

 

(155

)

 

 

(95

)

 

 

(489

)

 

 

(310

)

Interest expense

 

 

721

 

 

 

680

 

 

 

1,629

 

 

 

1,298

 

Total interest expense, net

 

 

566

 

 

 

585

 

 

 

1,140

 

 

 

988

 

Income before income taxes

 

 

9,041

 

 

 

6,806

 

 

 

19,128

 

 

 

11,899

 

Income tax expense

 

 

2,134

 

 

 

1,514

 

 

 

3,563

 

 

 

2,311

 

Net income

 

$

6,907

 

 

$

5,292

 

 

$

15,565

 

 

$

9,588

 

Net income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share

 

$

0.44

 

 

$

0.41

 

 

$

1.00

 

 

$

0.74

 

Diluted income per share

 

$

0.43

 

 

$

0.39

 

 

$

0.98

 

 

$

0.71

 

Weighted average number of common shares and potential common

   shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

15,582

 

 

 

13,044

 

 

 

15,551

 

 

 

13,019

 

Diluted

 

 

15,916

 

 

 

13,433

 

 

 

15,917

 

 

 

13,413

 

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

4

 


Table of Contents

 

 

ADDUS HOMECARE CORPORATION

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended June 30, 2020 and 2019

(Amounts and Shares in Thousands)

(Unaudited)

 

 

 

For the Three Months Ended June 30, 2020

 

 

 

Common Stock

 

 

Additional

Paid-in

Capital

 

 

Retained

Earnings

 

 

Total

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at April 1, 2020

 

 

15,660

 

 

$

16

 

 

$

362,102

 

 

$

124,690

 

 

$

486,808

 

Forfeiture of shares of common stock under

   restricted stock award agreements

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,118

 

 

 

 

 

 

1,118

 

Shares issued for exercise of stock options

 

 

6

 

 

 

 

 

 

28

 

 

 

 

 

 

28

 

Net income

 

 

 

 

 

 

 

 

 

 

 

6,907

 

 

 

6,907

 

Balance at June 30, 2020

 

 

15,665

 

 

$

16

 

 

$

363,248

 

 

$

131,597

 

 

$

494,861

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

Common Stock

 

 

Additional

Paid-in

Capital

 

 

Retained

Earnings

 

 

Total

Stockholders’

Equity

 

Balance at January 1, 2020

 

 

15,617

 

 

$

15

 

 

$

359,545

 

 

$

116,032

 

 

$

475,592

 

Forfeiture of shares of common stock under

   restricted stock award agreements

 

 

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,525

 

 

 

 

 

 

2,525

 

Shares issued for exercise of stock options

 

 

54

 

 

 

1

 

 

 

1,178

 

 

 

 

 

 

 

1,179

 

Net income

 

 

 

 

 

 

 

 

 

 

 

15,565

 

 

 

15,565

 

Balance at June 30, 2020

 

 

15,665

 

 

$

16

 

 

$

363,248

 

 

$

131,597

 

 

$

494,861

 

 

 

For the Three Months Ended June 30, 2019

 

 

 

Common Stock

 

 

Additional

Paid-in

Capital

 

 

Retained

Earnings

 

 

Total

Stockholders’

Equity

 

Balance at April 1, 2019

 

 

13,178

 

 

$

13

 

 

$

178,916

 

 

$

95,091

 

 

$

274,020

 

Issuance of shares of common stock under

   restricted stock award agreements

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,482

 

 

 

 

 

 

1,482

 

Shares issued for exercise of stock options

 

 

30

 

 

 

 

 

 

713

 

 

 

 

 

 

713

 

Net income

 

 

 

 

 

 

 

 

 

 

 

5,292

 

 

 

5,292

 

Balance at June 30, 2019

 

 

13,219

 

 

$

13

 

 

$

181,111

 

 

$

100,383

 

 

$

281,507

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

Common Stock

 

 

Additional

Paid-in

Capital

 

 

Retained

Earnings

 

 

Total

Stockholders’

Equity

 

Balance at January 1, 2019

 

 

13,126

 

 

$

13

 

 

$

177,683

 

 

$

90,795

 

 

$

268,491

 

Issuance of shares of common stock under

   restricted stock award agreements

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,715

 

 

 

 

 

 

2,715

 

Shares issued for exercise of stock options

 

 

30

 

 

 

 

 

 

713

 

 

 

 

 

 

713

 

Net income

 

 

 

 

 

 

 

 

 

 

 

9,588

 

 

 

9,588

 

Balance at June 30, 2019

 

 

13,219

 

 

$

13

 

 

$

181,111

 

 

$

100,383

 

 

$

281,507

 

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

5

 


Table of Contents

 

 

ADDUS HOMECARE CORPORATION

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2020 and 2019

(Amounts in Thousands)

(Unaudited)

 

 

 

For the Six Months

 

 

 

Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

15,565

 

 

$

9,588

 

Adjustments to reconcile net income to net cash provided by (used in) operating

   activities, net of acquisitions:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,827

 

 

 

4,609

 

Deferred income taxes

 

 

100

 

 

 

(154

)

Stock-based compensation

 

 

2,525

 

 

 

2,715

 

Amortization of debt issuance costs under the credit facility

 

 

370

 

 

 

347

 

Provision for doubtful accounts

 

 

436

 

 

 

106

 

Loss (gain) of disposal of assets

 

 

352

 

 

 

(51

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

23,342

 

 

 

(17,360

)

Prepaid expenses and other current assets

 

 

(3,608

)

 

 

328

 

Accounts payable

 

 

(2,700

)

 

 

641

 

Accrued expenses and other long-term liabilities

 

 

8,678

 

 

 

(4,847

)

Net cash provided by (used in) operating activities

 

 

50,887

 

 

 

(4,078

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(4,842

)

 

 

(1,996

)

Acquisitions of businesses, net of cash acquired

 

 

(295

)

 

 

(29,808

)

Proceeds from disposal of assets

 

 

172

 

 

 

 

Net cash used in investing activities

 

 

(4,965

)

 

 

(31,804

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings on term loan credit facility

 

 

 

 

 

19,600

 

Payments on term loan — credit facility

 

 

(245

)

 

 

 

Payments on financing lease obligations

 

 

(21

)

 

 

(45

)

Cash received from exercise of stock options

 

 

1,179

 

 

 

713

 

Net cash provided by financing activities

 

 

913

 

 

 

20,268

 

Net change in cash

 

 

46,835

 

 

 

(15,614

)

Cash, at beginning of period

 

 

111,714

 

 

 

70,406

 

Cash, at end of period

 

$

158,549

 

 

$

54,792

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

992

 

 

$

904

 

Cash paid for income taxes

 

 

6,414

 

 

 

3,474

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Leasehold improvements acquired through tenant allowances

 

$

 

 

$

682

 

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

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ADDUS HOMECARE CORPORATION

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Nature of Operations, Consolidation, and Presentation of Financial Statements

Addus HomeCare Corporation (“Holdings”) and its subsidiaries (together with Holdings, the “Company”, “we”, “us” or “our”) operate as a multi-state provider of three distinct but related business segments providing in-home services. In its personal care services segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy. The Company’s payors include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals.  

Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. The accompanying balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements for the year ended December 31, 2019 previously filed with the SEC. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2019 included in our Annual Report on Form 10-K, which includes information and disclosures not included herein.

In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period.

Principles of Consolidation

These Unaudited Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

 

2. Summary of Significant Accounting Policies

Estimates

The financial statements are prepared by management in conformity with GAAP and include estimated amounts and certain disclosures based on assumptions about future events. The Company’s critical accounting estimates include revenue recognition, accounts receivable and allowances and goodwill and intangible assets. Actual results could differ from those estimates.

Diluted Net Income Per Common Share

Diluted net income per common share, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The Company’s outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards.

As of June 30, 2020 and 2019, dilutive stock options outstanding were approximately 579,000 and 695,000, respectively, and dilutive restricted stock awards outstanding were approximately 72,000 and 154,000, respectively.

Included in the Company’s calculation of diluted earnings per share for the three and six months ended June 30, 2020, dilutive stock options outstanding were approximately 296,000 and 304,000, respectively. In addition, dilutive restricted stock awards outstanding were approximately 37,000 and 63,000 for the three and six months ended June 30, 2020, respectively.

Included in the Company’s calculation of diluted earnings per share for the three and six months ended June 30, 2019, were approximately 327,000 and 316,000 dilutive stock options outstanding , respectively. In addition, dilutive restricted stock awards outstanding were approximately 62,000 and 78,000 for the three and six months ended June 30, 2019, respectively.

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Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income are to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. We have reviewed our provision for doubtful accounts process as required by ASU 2016-13. Management estimates allowances on accounts receivable based upon historical experience and other factors, including an aging of accounts receivable, evaluation of expected adjustments, past adjustments and collection experience in relation to amounts billed, current contract and reimbursement terms, shifts in payors and other current relevant information. The Company recorded a provision for doubtful accounts of $0.2 million and $0.4 million for the three and six months ended June 30, 2020, respectively. Allowance for doubtful accounts was $0.9 million and $1.0 million as of June 30, 2020 and December 31, 2019, respectively. Adoption of the new standard did not have a significant impact on our results of operations or liquidity.

In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on the current Step 1). Adoption of the new standard did not have a significant impact on our results of operations or liquidity.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU 2018-15 requires customers in a hosting arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Adoption of the new standard did not have a significant impact on our results of operations or liquidity.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general guidance in ASC 740. In addition, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. Adoption of the new standard is not expected to have an impact on our results of operations or liquidity.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, and other transactions subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Therefore, it will be in effect for a limited time through December 31, 2022. The ASU can be adopted no later than December 1, 2022 with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance.

3. Revision of Previously Issued Financial Statements

In connection with management finalizing their financial reporting close process for the year ended December 31, 2019, management identified certain immaterial errors impacting the current period and previous periods dating back to periods prior to 2017, including interim periods within those years. Specifically, management determined there were certain errors in the information utilized to accurately estimate the implicit price concessions necessary to reduce net service revenues to the amount expected to be collected. Accordingly, management determined that our accounts receivable allowance was understated. The correction reflects the impact on the Company’s income tax provision and related accounts as a result of correcting for the error as discussed above. Additionally, the Company identified and corrected other immaterial unrelated income tax items impacting deferred tax assets and other immaterial items.

Management evaluated the impact of the errors on all previously issued financial statements and concluded such previously issued financial statements were not materially misstated; however, to reflect such corrections in the quarter ended December 31, 2019 financial statements would materially misstate the 2019 fiscal year. Accordingly, management revised previously issued financial statements to correct for the impact of the errors. The Company’s consolidated financial statements have been revised from the amounts previously reported to correct these immaterial errors as shown in the tables below and are reflected throughout the financial statements and related notes, as applicable.

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The Consolidated Statements of Income has been revised to reflect the correction for the three and six months ended June 30, 2019 as follows (amounts in thousands, except per share data):

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2019

 

 

 

As