8-K
Addus HomeCare Corp false 0001468328 0001468328 2022-02-24 2022-02-24

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 24, 2022

 

 

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)

 

(I.R.S. Employer

Identification No.)

 

6303 Cowboys Way, Suite 600

Frisco, Texas

  75034
(Address of principal executive offices)   (Zip Code)

(469) 535-8200

(Registrant’s telephone number, including area code)

N/A

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

 

 

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

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 per share   ADUS   The Nasdaq Stock Market, LLC

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 February 24, 2022, 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 and year ended December 31, 2021. 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 February 24, 2022, the Company issued the Press Release, announcing, among other matters, its results of operations for the fiscal quarter and year ended December 31, 2021, 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 February 24, 2022.
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
Date: February 24, 2022     By:  

/s/ Brian Poff

      Brian Poff
      Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

 

Contacts:

 

Brian W. Poff

  Dru Anderson

Executive Vice President, Chief Financial Officer

  CCI FINN Partners

Addus HomeCare Corporation

  (615) 324-7346

(469) 535-8200

  dru.anderson@finnpartners.com

investorrelations@addus.com

 

ADDUS HOMECARE ANNOUNCES FOURTH-QUARTER 2021 FINANCIAL RESULTS

Revenues Grow 14.6% to $224.6 Million

Net Income Increases 54.6% to $13.1 Million, or $0.81 per Diluted Share

Adjusted Earnings per Diluted Share Increases 18.3% to $0.97

Adjusted EBITDA Increases 27.5% to $26.7 Million

Personal Care Same Store Revenue Increases 8.0%

Frisco, Texas (February 24, 2022) – Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the fourth quarter and year ended December 31, 2021.

Net service revenues increased 14.6% for the fourth quarter to $224.6 million from $196.0 million for the fourth quarter of 2020. Net income increased 54.6% to $13.1 million for the fourth quarter of 2021 from $8.4 million for the fourth quarter last year, while net income per diluted share was $0.81 compared with $0.53 for the same period a year ago. Adjusted EBITDA increased 27.5% to $26.7 million for the fourth quarter of 2021 from $20.9 million for the fourth quarter of 2020. Adjusted net income per diluted share was $0.97 for the fourth quarter of 2021 compared with $0.82 for the fourth quarter of 2020. (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)

Adjusted net income for the fourth quarter of 2021 excludes the favorable impact of the retroactive Illinois rate increase of $0.05, acquisition and de novo expenses of $0.09, restructure and other non-recurring costs of $0.01 and stock-based compensation expense of $0.11.

For 2021, net service revenues increased 13.0% to $864.5 million from $764.8 million for 2020. Net income increased 36.2% to $45.1 million for 2021 from $33.1 million for the prior year, while net income per diluted share increased to $2.81 from $2.08. Adjusted EBITDA was $97.7 million for 2021, an increase of 27.0% compared with $76.9 million for 2020. Adjusted net income per diluted share grew 17.9% to $3.63 for 2021 from $3.08 for 2020.

Adjusted net income for the full year 2021 excludes COVID-19 net expenses of $(0.03), acquisition and de novo expenses of $0.36, restructure and other non-recurring costs of $0.05 and stock-based compensation expense of $0.44.

Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter financial and operating performance marked a strong finish to 2021 for Addus. We are very pleased with the positive trends across each of our operating segments, reflecting favorable demand for home-based care, despite ongoing COVID-19 and labor challenges. Over the past two years we have continued to show remarkable flexibility in adapting to the challenges of each new COVID-19 wave, including the recent rapid onset of the Omicron variant that we have seen at the end of 2021 and early 2022. While this latest wave has been the most significant to date, it appears to be subsiding, and we remain optimistic about our position going forward.”

Allison continued, “For the fourth quarter, revenues for our personal care service line, which accounted for 78.0% of total revenue, were up 8.0% on a same-store basis, significantly exceeding our target

 

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ADUS Announces Fourth-Quarter 2021 Financial Results

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range of 3-5% organic revenue growth. This improvement primarily reflects scheduled rate increases in Illinois that were effective November 1, 2021. Our home health services same-store revenue increased 7.1% over the prior year, with solid growth in admissions that included the acquired operations of Armada Home Health and Summit Home Health. We also saw favorable growth trends in our hospice business, with revenues up 1.3% over the prior year, and continued sequential improvement in average daily census, median length of stay and patient days. These results reflect the strength of our operating model across the care continuum, supported by our team of dedicated caregivers who have continued to provide extraordinary care and support to our patients and their families, despite ongoing pressures related to the pandemic.”

As of December 31, 2021, the Company had cash of $168.9 million and bank debt of $224.9 million, with capacity and availability under its revolving credit facility of $376.6 million and $143.6 million, respectively. Net cash provided by operating activities was $25.2 million for the fourth quarter of 2021 and $39.5 million for the full year 2021, even after using $27.9 million of previously received government stimulus funds and repayment of deferred payroll taxes. Exclusive of these payments, net cash provided by operating activities for the full year 2021 would have been $67.4 million.

“We have continued to focus on pursuing acquisitions that enhance our organic growth opportunities,” added Allison. “Our objective is to expand our reach and create multiple markets where we provide all three levels of home care. In line with this strategy, we recently acquired the operations of JourneyCare, a leading provider of hospice services in the greater Chicago area. Together with the acquisition of Illinois-based Summit Home Health, completed in the fourth quarter of 2021, we have achieved our goal to operate all three levels of home care in Illinois, which is the largest personal care market for Addus. Looking ahead to 2022, we are well capitalized and expect to continue pursuing acquisition opportunities that meet our strategic criteria.”

Allison concluded, “We believe the pandemic has raised awareness about the value of safe, quality, home-based care, and we expect to see continued growth in demand for our services that allow individuals to remain in their preferred home setting. We look forward to the opportunities ahead for Addus in 2022, as we continue to extend our market reach and deliver greater value to our shareholders.”

Non-GAAP Financial Measures

The information provided in this release includes adjusted net income, adjusted EBITDA and adjusted net income per diluted share, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition and de novo expenses, stock-based compensation expense, restructure expenses and other costs, gain or loss on the sale of assets, and retroactive rate increases from Illinois. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, acquisition and de novo expenses, stock-based compensation expense, restructure expenses and other costs, loss on the sale of assets, and retroactive rate increases from Illinois. The Company defines adjusted diluted earnings per share as earnings per share, adjusted for acquisition and de novo expenses, stock compensation expense, restructure expenses and other costs, gain or loss on the sale of assets, and retroactive rate increases from Illinois. The Company defined adjusted net income, adjusted EBITDA, adjusted diluted earnings per share to exclude net COVID expenses arising from the pandemic from the second quarter of 2020 to the first quarter of 2021. The Company defines adjusted net service revenues as revenue 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 to net income, a reconciliation of adjusted EBITDA to net income, a reconciliation of adjusted diluted earnings per share to earnings per share, 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, adjusted EBITDA, adjusted diluted earnings per share, 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 Fourth-Quarter 2021 Financial Results

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February 24, 2022

 

Conference Call

Addus will host a conference call on Friday, February 25, 2022, 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), passcode 9948689. A telephonic replay of the conference call will be available through midnight on March 4, 2022, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 9948689.

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 will also be available on the Company’s website for one month, beginning approximately two 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 “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, any future impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, 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 1, 2021, which is 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 HomeCare

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 45,000 consumers through 211 locations across 22 states. For more information, please visit www.addus.com.

 

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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 December 31,
    For the Twelve Months
Ended December 31,
 
     2021     2020     2021     2020  

Net service revenues

   $ 224,642     $ 195,996     $ 864,499     $ 764,775  

Cost of service revenues

     151,847       136,892       594,651       538,538  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     72,795       59,104       269,848       226,237  
     32.4     30.2     31.2     29.6

General and administrative expenses

     49,537       44,209       189,418       169,679  

Depreciation and amortization

     3,900       3,179       14,494       12,051  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     53,437       47,388       203,912       181,730  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     19,358       11,716       65,936       44,507  

Total interest expense, net

     1,536       832       5,538       2,565  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     17,822       10,884       60,398       41,942  

Income tax expense

     4,764       2,435       15,272       8,809  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 13,058     $ 8,449     $ 45,126     $ 33,133  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per diluted share:

   $ 0.81     $ 0.53     $ 2.81     $ 2.08  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares outstanding:

        

Diluted

     16,059       16,013       16,064       15,956  

 

Cash Flow Information:    For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     2021     2020     2021     2020  

Net cash provided by operating activities

   $ 25,201     $ 36,112     $ 39,488     $ 109,411  

Net cash used in investing activities

     (9,582     (196,729     (42,015     (214,236

Net cash provided by financing activities

     897       135,364       26,344       138,189  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash

     16,516       (25,253     23,817       33,364  

Cash at the beginning of the period

     152,379       170,331       145,078       111,714  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash at the end of the period

   $ 168,895     $ 145,078     $ 168,895     $ 145,078  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     December 31,  
     2021      2020  

Assets

     

Current assets

     

Cash

   $ 168,895      $ 145,078  

Accounts receivable, net

     136,955        132,650  

Prepaid expenses and other current assets

     18,491        9,969  
  

 

 

    

 

 

 

Total current assets

     324,341        287,697  
  

 

 

    

 

 

 

Property and equipment, net

     18,483        19,749  
  

 

 

    

 

 

 

Other assets

     

Goodwill

     504,392        469,072  

Intangible assets, net

     64,321        71,549  

Deferred tax assets, net

     —          6,524  

Operating lease assets

     36,048        37,991  
  

 

 

    

 

 

 

Total other assets

     604,761        585,136  
  

 

 

    

 

 

 

Total assets

   $ 947,585      $ 892,582  
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities

     

Accounts payable

   $ 19,358      $ 23,705  

Accrued payroll

     44,083        35,815  

Accrued expenses

     37,077        37,564  

Government stimulus advance

     4,173        32,087  

Accrued workers compensation

     12,998        13,759  

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

     —          971  
  

 

 

    

 

 

 

Total current liabilities

     117,689        143,901  

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

     220,912        193,901  

Long-term lease liability, less current portion

     32,859        35,516  

Other long-term liabilities

     1,781        588  
  

 

 

    

 

 

 

Total long-term liabilities

     255,552        230,005  
  

 

 

    

 

 

 

Total liabilities

     373,241        373,906  
  

 

 

    

 

 

 

Total stockholders’ equity

     574,344        518,676  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 947,585      $ 892,582  
  

 

 

    

 

 

 

 

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ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Net Service Revenue by Segment

(Amounts in Thousands)

(Unaudited)

 

     For the Three Months
Ended December 31,
     For the Twelve Months
Ended December 31,
 
     2021      2020      2021      2020  

Net Service Revenues by Segment

           

Personal Care

   $ 175,110      $ 164,384      $ 685,854      $ 647,233  

Hospice

     40,155        27,574        152,253        101,297  

Home Health

     9,377        4,038        26,392        16,245  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 224,642      $ 195,996      $ 864,499      $ 764,775  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Key Statistical and Financial Data (Unaudited)

 

     For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     2021     2020     2021     2020  

General

        

Personal Care

        

States served at period end

     —         —         22       22  

Locations at period end

     —         —         162       170  

Average billable census - same store

     36,717       38,435       37,330       38,432  

Average billable census - acquisitions (1)

     688       768       721       767  

Average billable census total (2)

     37,405       39,203       38,051       39,199  

Billable hours (in thousands)

     7,425       7,820       30,151       30,645  

Average billable hours per census per month

     65.8       66.0       65.7       64.7  

Billable hours per business day

     112,498       118,490       115,521       116,967  

Revenues per billable hour

   $ 23.28     $ 20.98     $ 22.71     $ 21.07  

Organic growth

        

- Revenue (3)

     8.0     2.6     7.3     5.9

Hospice

        

Locations served at period end

     —         —         32       34  

Admissions

     2,381       1,983       9,592       6,376  

Average daily census

     2,635       2,492       2,561       2,619  

Average discharge length of stay

     99.3       108.3       96.5       104.9  

Patient days

     249,266       174,407       923,014       657,172  

Revenue per patient day

   $ 165.64     $ 158.10     $ 164.95     $ 154.14  

Organic growth

        

- Revenue

     1.3     (10.6 )%      (6.2 )%      (5.3 )% 

- Average daily census

     (1.4 )%      (13.5 )%      (11.2 )%      1.2

Home Health

        

Locations served at period end

     —         —         12       10  

New Admissions

     3,819       1,088       8,781       4,122  

Recertifications

     1,071       572       3,547       2,578  

Total Volume

     4,890       1,660       12,328       6,700  

Visits

     68,741       26,890       183,951       118,470  

Organic growth

        

- Revenue

     7.1     (8.2 )%      11.3     (3.0 )% 

- New Admissions

     21.0     (4.1 )%      23.0     9.1

Percentage of Revenues by Payor:

        

Personal Care

        

State, local and other governmental programs

     48.7     49.8     49.3     50.2

Managed care organizations

     46.0       45.0       45.5       44.3  

Private duty

     2.9       3.0       2.9       3.2  

Commercial

     1.4       1.5       1.4       1.5  

Other

     1.0     0.7     0.9     0.8

Hospice

        

Medicare

     93.1     93.2     93.3     92.9

Managed care organizations

     3.2       4.4       3.7       4.9  

Other

     3.7     2.4     3.0     2.2

Home Health

        

Medicare

     75.1     76.8     78.4     78.6

Managed care organizations

     17.0       21.3       16.9       19.6  

Other

     7.9     1.9     4.7     1.8

 

(1)

The average billable census in acquisitions of 770 and 791 for the three and twelve months ended December 31, 2020 was reclassified to average billable census - same stores for comparability purposes. The average billable census for the three and twelve months ended December 31, 2021 was prorated for the date of the acquisition.

(2)

Exited sites would have reduced same store census for the three and twelve months ended December 31, 2020 by 293 and 648, respectively.

(3)

Management has suspended materially all its new patient admissions under the New York consumer self-directed program based on program uncertainty and therefore excludes associated revenues from the calculation.

 

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ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Amounts in thousands, except per share data)

(Unaudited) (1)

 

     For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     2021     2020     2021     2020  

Reconciliation of Adjusted EBITDA to Net Income: (2)

        

Net income

   $ 13,058     $ 8,449     $ 45,126     $ 33,133  

Interest expense, net

     1,536       832       5,538       2,565  

Loss on sale of assets

     9       13       25       294  

Income tax expense

     4,764       2,435       15,272       8,809  

Depreciation and amortization

     3,900       3,179       14,494       12,051  

COVID-19 expense, net

     —         252       (591     1,480  

Illinois retro, net

     (1,005     —         —         —    

Acquisition and de novo expenses

     1,923       3,074       7,306       6,956  

Stock-based compensation expense

     2,329       2,017       9,434       6,005  

Restructure and other non-recurring costs

     200       694       1,057       5,614  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 26,714     $ 20,945     $ 97,661     $ 76,907  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Adjusted Net Income to Net Income: (3)

        

Net income

   $ 13,058     $ 8,449     $ 45,126     $ 33,133  

Loss on sale of assets, net of tax

     7       10       19       232  

COVID-19 expense, net of tax

     —         196       (445     1,169  

Illinois retro, net of tax

     (739     —         —         —    

Acquisition and de novo expenses, net of tax

     1,413       2,365       5,750       5,456  

Stock-based compensation expense, net of tax

     1,712       1,551       7,049       4,728  

Restructure and other non-recurring costs, net of tax

     147       540       790       4,421  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income

   $ 15,598     $ 13,111     $ 58,289     $ 49,139  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (4)

 

   

Net income per diluted share

   $ 0.81     $ 0.53     $ 2.81     $ 2.08  

Loss on sale of assets per diluted share

     —         —         —         0.01  

COVID-19 expense per diluted share

     —         0.01       (0.03     0.07  

Illinois retro, net per diluted share

     (0.05     —         —         —    

Acquisition and de novo expenses per diluted share

     0.09       0.15       0.36       0.34  

Restructure and other non-recurring costs per diluted share

     0.01       0.03       0.05       0.28  

Stock-based compensation expense per diluted share

     0.11       0.10       0.44       0.30  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 0.97     $ 0.82     $ 3.63     $ 3.08  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (5)

 

     

Net service revenues

   $ 224,642     $ 195,996     $ 864,499     $ 764,775  

Revenues associated with the closure of certain sites

     —         (579     2       (7,712
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net service revenues

   $ 224,642     $ 195,417     $ 864,501     $ 757,063  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

The Company defined adjusted net income, adjusted EBITDA, and adjusted diluted earnings per share to exclude net COVID expenses arising from the pandemic from the second quarter of 2020 to the first quarter of 2021.

(2)

We define Adjusted EBITDA as earnings before interest expense, other non-operating income, taxes, depreciation, amortization, acquisition and de novo expenses, stock-based compensation expense, restructure expenses and other costs, gain or loss on the sale of assets, and retroactive rate increases from Illinois. 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.

(3)

We define Adjusted Net Income as net income before acquisition and de novo expenses, stock-based compensation expense, restructure expenses and other costs, gain or loss on the sale of assets, and retroactive rate increases from Illinois. 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.

(4)

We define Adjusted diluted earnings per share as earnings per share, adjusted for acquisition and de novo expenses, stock-based compensation expense, restructure expense and other costs, loss on the sale of assets, and retroactive rate increases from Illinois. 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.

(5)

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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