UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
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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 August 10, 2020, 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 June 30, 2020. 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 August 10, 2020, the Company issued the Press Release, announcing, among other matters, its results of operations for the fiscal quarter ended June 30, 2020, 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 August 10, 2020. | |
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document). | |
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: August 10, 2020 | By: | /s/ Brian Poff | ||||
| Name: | Brian Poff | |||||
| Title: | Chief Financial Officer | |||||
Exhibit 99.1
| Contacts: |
||
| Brian W. Poff |
Dru Anderson | |
| Executive Vice President, |
Corporate Communications, Inc. | |
| Chief Financial Officer |
(615) 324-7346 | |
| Addus HomeCare Corporation |
dru.anderson@cci-ir.com | |
| (469) 535-8200 |
||
| investorrelations@addus.com |
ADDUS HOMECARE ANNOUNCES SECOND-QUARTER 2020 FINANCIAL RESULTS
Revenues Increase 23.9% to $184.6 million
Net Income Increases 30.5% to $6.9 Million, or $0.43 per Diluted Share,
and Adjusted Diluted Earnings per Share of $0.73
Adjusted EBITDA Increases 49.9% to $18.7 Million
Personal Care Services Same Store Revenue Increases 9.7%
Company Completes Re-Audit and Files 2019 Form 10-K,
Q1 2020 Form 10-Q and Q2 2020 Form 10-Q
Frisco, Texas (August 10, 2020) – Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the second quarter and six months ended June 30, 2020.
Net service revenues were $184.6 million for the second quarter of 2020, up 23.9% from $148.9 million for the second quarter of 2019. Net income was $6.9 million, up 30.5% compared with $5.3 million for the second quarter of 2019, while net income per diluted share was $0.43, compared with $0.39 per diluted share for the prior-year period. Adjusted net income per diluted share grew 35.2% to $0.73 for the second quarter of 2020 from $0.54 for the second quarter of 2019.
Adjusted net income per diluted share for the second quarter of 2020 excludes loss on sale of assets of $0.02, COVID-19 expenses of $0.01, M&A expenses of $0.09, restructuring and other costs of $0.12, which consisted primarily of costs associated with the Company’s re-audit process, and stock-based compensation expense of $0.06. Adjusted net income per diluted share for the second quarter of 2019 excludes M&A expenses of $0.04, restructuring and other costs of $0.02, and stock-based compensation expense of $0.09. Adjusted EBITDA increased 49.9% to $18.7 million for the second quarter of 2020 from $12.5 million for the second quarter of 2019. (See page 9 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.)
For the first six months of 2020, net service revenues increased 30.4% to $374.8 million from $287.4 million for the prior-year period. Net income increased 62.3% to $15.6 million for the first six months of 2020 compared with $9.6 million for the same period in 2019, and net income per diluted share was $0.98 compared with $0.71 per diluted share. Adjusted net income increased 77.3% to $24.0 million for the first six months of 2020 compared with $13.5 million for the prior-year period, while adjusted net income per diluted share grew 52.0% to $1.52 from $1.00. Adjusted EBITDA increased 61.8% to $36.4 million for the first six months of 2020 from $22.5 million for the first six months of 2019.
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ADUS Announces Second Quarter 2020 Financial Results
Page 2
August 10, 2020
Dirk Allison, President and Chief Executive Officer, commented, “We are proud of our solid financial and operating results for the second quarter, reflecting continued growth in a challenging environment. Our personal care services, which accounted for 84.7% of our revenue, were up 13.7% over the same period last year, including 9.7% same store growth, as most of our large markets experienced favorable revenue trends in the second quarter. We also benefitted from the Illinois rate increases for home care services that were effective July 1, 2019, with a further increase beginning January 1, 2020. As our country has experienced the ongoing and significant impact of the COVID-19 pandemic, Addus has continued to provide the critical and essential home care services that allow individuals to remain in their homes and avoid the potential risks found in external settings and institutional healthcare environments. We commend the dedicated and heroic efforts of our caregivers and of all healthcare workers, who have worked tirelessly to meet this critical need.”
At June 30, 2020, the Company had cash of $158.6 million and bank debt of $60.0 million, while availability under its revolving credit facility was $223.5 million. Net cash provided in operating activities was $30.4 million for the second quarter of 2020.
Mr. Allison continued, “Our top priority is to protect the health and safety of the patients and customers we serve and our caregivers and other employees. Our strong value proposition, including hospice and home care services, is more relevant than ever in this environment, and we believe we are taking deliberate and effective measures across our operations to meet the increasing demand for our services in a safe manner. Our senior leadership team continues to address the impact of the COVID-19 pandemic on the Company’s operations, and we are pleased with our ability to quickly respond to the challenges we are facing. While much is still unknown, we remain focused on expanding our market presence and enhancing our home care services offering as we reach more consumers and create value for our shareholders.”
“In keeping with this focus, we completed the acquisition of Montana-based A Plus Health Care, Inc. on July 1, 2020, and we are pleased to welcome that experienced management team and clinical staff to the Addus family. We will continue to pursue acquisition opportunities and have the financial capacity to execute this strategy, although we are approaching the consummation of any acquisition in the current environment with appropriate caution and diligence,” added Allison.
Relief Funds, SEC Filings and Nasdaq Updates
As previously announced, the Company is not participating in the financial relief programs available under the CARES Act and the PPPHCE Act. Under these programs, the Company automatically received a portion of the $175 billion in funding to be distributed to health care providers through the Relief Fund, but the Company has returned all funds.
The Company also confirmed it has filed its Annual Report on Form 10-K for the year ended December 31, 2019, and its Form 10-Qs for each of the three-month periods ending March 31, 2020, and June 30, 2020, respectively, with the Securities and Exchange Commission (“SEC”) following completion of its previously announced re-audit of the Company’s financial statements for 2017 and 2018 by PricewaterhouseCoopers. As expected, the re-audit did not result in any material corrections to the Company’s historical financial statements.
As previously announced, Addus HomeCare received correspondence from Nasdaq on May 14, 2020, notifying the Company that it was not currently in compliance with Nasdaq Listing Rule 5250(c)(1), as a result of not filing the Form 10-Q for the three month period ending March 31, 2020, and of the ongoing delay in filing the Form 10-K. Pursuant to Nasdaq rules, Addus HomeCare’s securities have remained listed on the Nasdaq Global Select Market during a grace period until September 14, 2020, to regain compliance with the Nasdaq continued listing requirements. With the completion of the SEC filings, Addus HomeCare anticipates being able to now regain compliance.
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ADUS Announces Second Quarter 2020 Financial Results
Page 3
August 10, 2020
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 as net income before the net-of-tax amounts of interest income from the State of Illinois, COVID-19 adjustments for temporary rate increases and expenses, M&A expenses, stock-based compensation expense, restructure charges, severance and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. The Company defines adjusted EBITDA as net income before interest expense, interest income, other non-operating income, COVID-19 adjustments for temporary rate increases and expenses, taxes, depreciation, amortization, interest income from the State of Illinois, M&A expenses, stock-based compensation expense, restructure charges, severance and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. The Company defines adjusted diluted earnings per share as earnings per share adjusted for interest income from the State of Illinois, COVID-19 expenses, M&A expenses, stock compensation expense and restructure expense, severance and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income and a reconciliation of adjusted diluted earnings per share to earnings per share, in each case, the most directly comparable GAAP measure. Management believes that adjusted net income, adjusted EBITDA and adjusted diluted earnings per share 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. With respect to COVID-19 expenses, the Company views these expenses as unrelated to the Company’s long-term performance, since they are directly related to the sudden onset COVID-19 pandemic. With respect to COVID-19 temporary rate increases, the Company similarly views these as unrelated to the Company’s long-term performance and has adjusted for those increases, net of the amount required to be passed through to caregivers as a condition of the increase.
Conference Call
Addus will host a conference call on Tuesday, August 11, 2020, 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 7940638. A telephonic replay of the conference call will be available through midnight on August 25, 2020, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 7940638.
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 two hours following the conclusion of the live broadcast.
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ADUS Announces Second Quarter 2020 Financial Results
Page 4
August 10, 2020
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 “preliminary,” “continue,” “expect,” 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, estimation inaccuracies in future revenues, margins, earnings and growth, whether any anticipated receipt of payments will materialize, the anticipated impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, caused by a novel strain of the coronavirus (COVID-19), 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 18, 2019, and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2019, which are available at www.sec.gov. The financial information described herein and the periods to which they relate are preliminary estimates that are subject to change and finalization. There is no assurance that the final amounts and adjustments will not differ materially from the amounts described above, or that additional adjustments will not be identified, the impact of which may be material. 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 HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 42,000 consumers through 185 locations across 25 states. For more information, please visit www.addus.com.
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ADUS Announces Second Quarter 2020 Financial Results
Page 5
August 10, 2020
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 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 | ||||||||||||
| 29.8 | % | 26.7 | % | 29.6 | % | 26.6 | % | |||||||||
| General and administrative expenses |
42,097 | 29,767 | 84,384 | 59,024 | ||||||||||||
| Loss on sale of assets |
353 | — | 353 | — | ||||||||||||
| Depreciation and amortization |
2,940 | 2,535 | 5,827 | 4,609 | ||||||||||||
|
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|
|
|
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|
|||||||||
| Total operating expenses |
45,390 | 32,302 | 90,564 | 63,633 | ||||||||||||
|
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|||||||||
| Operating income from continuing operations |
9,607 | 7,391 | 20,268 | 12,887 | ||||||||||||
| Total interest expense, net |
566 | 585 | 1,140 | 988 | ||||||||||||
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|
|||||||||
| Income before income taxes |
9,041 | 6,806 | 19,128 | 11,899 | ||||||||||||
| Income tax expense |
2,134 | 1,514 | 3,563 | 2,311 | ||||||||||||
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| Net income |
$ | 6,907 | $ | 5,292 | $ | 15,565 | $ | 9,588 | ||||||||
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| Net income per diluted share |
$ | 0.43 | $ | 0.39 | $ | 0.98 | $ | 0.71 | ||||||||
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| Weighted average number of common shares outstanding – diluted |
15,916 | 13,433 | 15,917 | 13,413 | ||||||||||||
| Cash Flow Information: | For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net cash provided/(used) in operating activities |
$ | 30,445 | $ | (881 | ) | $ | 50,887 | $ | (4,078 | ) | ||||||
| Net cash used in investing activities |
(2,131 | ) | (30,798 | ) | (4,965 | ) | (31,804 | ) | ||||||||
| Net cash provided/(used) by financing activities |
(228 | ) | 20,301 | 913 | 20,268 | |||||||||||
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| Net change in cash |
28,086 | (11,378 | ) | 46,835 | (15,614 | ) | ||||||||||
| Cash at the beginning of the period |
130,463 | 66,170 | 111,714 | 70,406 | ||||||||||||
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| Cash at the end of the period |
$ | 158,549 | $ | 54,792 | $ | 158,549 | $ | 54,792 | ||||||||
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ADUS Announces Second Quarter 2020 Financial Results
Page 6
August 10, 2020
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| June 30, | ||||||||
| 2020 | 2019 | |||||||
| Assets |
| |||||||
| Current assets |
||||||||
| Cash |
$ | 158,549 | $ | 54,792 | ||||
| Accounts receivable, net |
126,389 | 121,556 | ||||||
| Prepaid expenses and other current assets |
11,398 | 9,148 | ||||||
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| Total current assets |
296,336 | 185,496 | ||||||
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| Property and equipment, net |
14,707 | 11,428 | ||||||
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| Other assets |
||||||||
| Goodwill |
275,433 | 145,812 | ||||||
| Intangible assets, net |
53,073 | 36,480 | ||||||
| Operating lease assets |
19,825 | 18,260 | ||||||
| Deferred tax assets, net |
1,547 | 2,474 | ||||||
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| Total other assets |
349,878 | 203,026 | ||||||
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| Total assets |
$ | 660,921 | $ | 399,950 | ||||
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| Liabilities and Stockholders’ Equity |
| |||||||
| Current liabilities |
||||||||
| Accounts payable |
$ | 17,201 | $ | 13,230 | ||||
| Accrued expenses |
32,674 | 18,801 | ||||||
| Accrued payroll |
28,787 | 22,162 | ||||||
| Accrued workers compensation |
14,075 | 13,890 | ||||||
| Current portion of long-term debt, net of debt issuance costs |
948 | 955 | ||||||
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|||||
| Total current liabilities |
93,685 | 69,038 | ||||||
| Long-term debt, less current portion, net of debt issuance costs |
59,048 | 36,231 | ||||||
| Long-term lease liability, less current portion |
12,672 | 12,929 | ||||||
| Other long-term liabilities |
655 | 242 | ||||||
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| Total long-term liabilities |
72,375 | 49,402 | ||||||
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| Total liabilities |
166,060 | 118,440 | ||||||
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| Total stockholders’ equity |
494,861 | 281,510 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 660,921 | $ | 399,950 | ||||
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ADUS Announces Second Quarter 2020 Financial Results
Page 7
August 10, 2020
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenues by Segment
(Amounts in thousands)
(Unaudited)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Personal care |
$ | 156,268 | $ | 137,477 | $ | 316,933 | $ | 265,371 | ||||||||
| Hospice |
24,525 | 8,437 | 49,737 | 16,354 | ||||||||||||
| Home health |
3,783 | 3,001 | 8,122 | 5,697 | ||||||||||||
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| Total revenue |
$ | 184,576 | $ | 148,915 | $ | 374,792 | $ | 287,422 | ||||||||
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ADUS Announces Second Quarter 2020 Financial Results
Page 8
August 10, 2020
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Key Statistical and Financial Data
(Unaudited)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Personal Care |
||||||||||||||||
| States served at period end |
24 | 24 | ||||||||||||||
| Locations at period end |
150 | 154 | ||||||||||||||
| Average billable census - same store |
35,479 | 38,099 | 36,705 | 37,834 | ||||||||||||
| Average billable census - acquisitions (1) |
717 | 927 | 855 | 927 | ||||||||||||
| Average billable census total |
36,196 | 39,026 | 37,560 | 38,761 | ||||||||||||
| Billable hours (in thousands) |
7,374 | 7,269 | 15,048 | 14,133 | ||||||||||||
| Average billable hours per census per month |
67.5 | 61.6 | 66.3 | 60.3 | ||||||||||||
| Billable hours per business day |
113,447 | 111,829 | 115,750 | 109,557 | ||||||||||||
| Revenues per billable hour |
$ | 21.14 | $ | 18.91 | $ | 21.01 | $ | 18.78 | ||||||||
| Organic growth |
||||||||||||||||
| Revenue |
9.7 | % | 5.8 | % | 11.8 | % | 5.7 | % | ||||||||
| Hospice |
||||||||||||||||
| Locations served at period end |
— | — | 30 | 13 | ||||||||||||
| Admissions |
1,339 | 474 | 2,994 | 985 | ||||||||||||
| Average daily census |
1,743 | 611 | 1,803 | 593 | ||||||||||||
| Average length of stay |
103.1 | 126.7 | 101.0 | 121.5 | ||||||||||||
| Patient days |
158,644 | 54,807 | 328,156 | 106,531 | ||||||||||||
| Revenue per patient day |
$ | 154.59 | $ | 153.94 | $ | 151.57 | $ | 153.52 | ||||||||
| Organic growth |
||||||||||||||||
| Revenue |
2.7 | % | — | 2.7 | % | — | ||||||||||
| Average daily census |
3.6 | % | — | 8.7 | % | — | ||||||||||
| Home Health |
||||||||||||||||
| Locations served at period end |
— | — | 10 | 10 | ||||||||||||
| New Admissions |
1,068 | 700 | 2,090 | 1,415 | ||||||||||||
| Recertifications |
689 | 543 | 1,399 | 1,185 | ||||||||||||
| Total Volume |
1,757 | 1,243 | 3,489 | 2,600 | ||||||||||||
| Visits |
29,797 | 24,157 | 63,507 | 43,711 | ||||||||||||
| Organic growth |
||||||||||||||||
| Revenue |
(4.3 | )% | — | 4.1 | % | — | ||||||||||
| New admissions |
15.4 | % | — | 13.1 | % | — | ||||||||||
| Percentage of Revenues by Payor: |
||||||||||||||||
| Personal Care |
||||||||||||||||
| State, local and other governmental programs |
50.0 | % | 54.2 | % | 49.7 | % | 55.1 | % | ||||||||
| Managed care organizations |
44.3 | 39.2 | 44.6 | 38.3 | ||||||||||||
| Private duty |
3.2 | 3.8 | 3.2 | 3.8 | ||||||||||||
| Commercial |
1.5 | 1.5 | 1.6 | 1.5 | ||||||||||||
| Other |
1.0 | 1.3 | 0.9 | 1.3 | ||||||||||||
| Hospice |
||||||||||||||||
| Medicare |
92.8 | % | 92.6 | % | 92.4 | % | 92.9 | % | ||||||||
| Managed care organizations |
4.9 | 5.6 | 5.2 | 5.1 | ||||||||||||
| Other |
2.3 | 1.8 | 2.4 | 2.0 | ||||||||||||
| Home Health |
||||||||||||||||
| Medicare |
79.6 | % | 81.2 | % | 79.8 | % | 81.4 | % | ||||||||
| Managed care organizations |
18.2 | 15.9 | 18.4 | 15.6 | ||||||||||||
| Other |
2.2 | 2.9 | 1.8 | 3.0 | ||||||||||||
| (1) | The average billable census in acquisitions of 1,373 and 1,261 for the three and six months ended June 30, 2019 was reclassified to average billable census - same stores for comparability purposes. The average billable census for the three and six months ended June 30, 2020 was prorated for the date of the acquisition. |
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ADUS Announces Second Quarter 2020 Financial Results
Page 9
August 10, 2020
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Amounts 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 | |||||||||||||
| Reconciliation of Adjusted EBITDA to Net Income: (1) |
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| Net income |
$ | 6,907 | $ | 5,292 | $ | 15,565 | $ | 9,588 | ||||||||
| Interest expense, net |
566 | 585 | 1,140 | 1,101 | ||||||||||||
| Interest income from Illinois |
— | — | — | (113 | ) | |||||||||||
| Loss on sale of assets |
353 | — | 353 | — | ||||||||||||
| Income tax expense |
2,134 | 1,514 | 3,563 | 2,311 | ||||||||||||
| Depreciation and amortization |
2,940 | 2,535 | 5,827 | 4,609 | ||||||||||||
| COVID-19 adjustment, net |
263 | — | 526 | — | ||||||||||||
| M&A expenses |
1,911 | 741 | 3,544 | 1,236 | ||||||||||||
| Stock-based compensation expense |
1,118 | 1,482 | 2,525 | 2,714 | ||||||||||||
| Restructure and other costs |
2,519 | 330 | 3,393 | 1,075 | ||||||||||||
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| Adjusted EBITDA |
$ | 18,711 | $ | 12,479 | $ | 36,435 | $ | 22,521 | ||||||||
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| Reconciliation of Adjusted Net Income to Net Income: (2) |
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| Net income |
$ | 6,907 | $ | 5,292 | $ | 15,565 | $ | 9,588 | ||||||||
| Interest income from Illinois, net of tax |
— | — | — | (95 | ) | |||||||||||
| Loss on sale of assets, net of tax |
288 | — | 288 | — | ||||||||||||
| COVID-19 expense, net of tax |
206 | — | 428 | — | ||||||||||||
| M&A expenses, net of tax |
1,499 | 579 | 2,898 | 1,001 | ||||||||||||
| Stock-based compensation expense, net of tax |
876 | 1,135 | 2,063 | 2,169 | ||||||||||||
| Restructuring and other costs, net of tax |
1,980 | 253 | 2,773 | 880 | ||||||||||||
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| Adjusted net income |
$ | 11,734 | $ | 7,259 | $ | 24,014 | $ | 13,543 | ||||||||
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| Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3) |
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| Net income per diluted share |
$ | 0.43 | $ | 0.39 | $ | 0.98 | $ | 0.71 | ||||||||
| Interest income from Illinois per diluted share |
— | — | — | (0.01 | ) | |||||||||||
| Loss on sale of assets per diluted share |
0.02 | — | 0.02 | — | ||||||||||||
| COVID-19 adjustment per diluted share |
0.01 | — | 0.03 | — | ||||||||||||
| M&A expenses per diluted share |
0.09 | 0.04 | 0.18 | 0.07 | ||||||||||||
| Restructure and other costs per diluted share |
0.12 | 0.02 | 0.18 | 0.07 | ||||||||||||
| Stock-based compensation expense per diluted share |
0.06 | 0.09 | 0.13 | 0.16 | ||||||||||||
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| Adjusted net income per diluted share |
$ | 0.73 | $ | 0.54 | $ | 1.52 | $ | 1.00 | ||||||||
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| (1) | We define Adjusted EBITDA as earnings before interest expense, interest income from the state of Illinois, other non-operating income, taxes, depreciation, amortization, COVID adjustment, M&A expenses, stock-based compensation expense, restructure expenses and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. 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, COVID adjustment, M&A expenses, stock-based compensation expense, restructure expenses and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. 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, COVID adjustment, M&A expenses, stock compensation expense and restructure expense and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. 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. |
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