UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| |
||||
| (Address of principal executive offices) | (Zip Code) |
(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 |
Name of each exchange on which registered | ||
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 1, 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 ended June 30, 2022. 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 1, 2022, the Company issued the Press Release, announcing, among other matters, its results of operations for the fiscal quarter ended June 30, 2022, 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 1, 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: August 1, 2022 | By: | /s/ Brian Poff | ||||
| Brian Poff | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
| 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 SECOND QUARTER 2022 FINANCIAL RESULTS
Frisco, Texas (August 1, 2022) – 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, 2022.
Second Quarter 2022 Highlights:
| • | Revenues Grow 8.7% to $236.9 Million |
| • | Net Income of $11.3 Million, or $0.70 per Diluted Share |
| • | Adjusted Earnings per Diluted Share Increases to $0.91 |
| • | Adjusted EBITDA Increases 3.1% to $25.1 Million |
| • | Cash flow from operations of $56.5 Million |
Overview
Net service revenues were $236.9 million for the second quarter of 2022, an 8.7% increase compared with $217.9 million for the second quarter of 2021. Net income was $11.3 million for the second quarter of 2022, compared with $11.6 million for the second quarter of 2021, while net income per diluted share was $0.70 compared with $0.72 for the same period a year ago. Adjusted EBITDA increased 3.1% to $25.1 million for the second quarter of 2022 from $24.3 million for the second quarter of 2021. Adjusted net income per diluted share was $0.91 for the second quarter of 2022 compared with $0.90 for the second quarter of 2021. Adjusted net income per diluted share for the second quarter of 2022 excludes acquisition and de novo expenses of $0.08 and stock-based compensation expense of $0.13. (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)
For the first six months of 2022, net service revenues increased 9.5% to $463.6 million from $423.2 million for the prior-year period. Net income was $19.7 million for the first six months of 2022 compared with $20.5 million for the same period in 2021, and net income per diluted share was $1.22 compared with $1.28 per diluted share. Adjusted net income was $27.1 million compared with $27.4 million for the first six months of 2021, while adjusted net income per diluted share was $1.68 compared with $1.71 for the prior-year period. Adjusted EBITDA increased 5.4% to $47.5 million for the first six months of 2022 from $45.1 million for the first six months of 2021.
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Second quarter performance reflected strong demand for our home-based care services, and we saw the expected improvement in our volumes coming off the Omicron wave in the first quarter. We have continued to execute our growth strategy and achieve favorable results in revenue and profitability with strong cash flow from operations. We were also pleased to see improved labor trends in our personal care segment, but like most healthcare providers, we continue to face a tight labor market for clinical staff in our home health and hospice segments. We are particularly encouraged by positive initial results from our efforts to implement new caregiver hiring and retention strategies in personal care, our largest segment.”
“Our results for the second quarter reflect positive trends in each of our operating segments. Personal care revenues, which accounted for 73.6% of overall revenue, were up 2.5% on a same-store basis. The 24.6% growth in home health reflects strong admissions and the addition of the operations of
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 2
August 1, 2022
Armada Home Health and Summit Home Health that were both acquired in 2021. Our hospice segment accounted for 22.0% of revenues for the second quarter and included the first full quarter of the acquired operations of JourneyCare, which closed on February 1, 2022. We are seeing incremental improvement in our hospice care segment as median length of stay continues to normalize and was up to 23 days in the second quarter. While same store new admissions were slightly lower sequentially, this was offset by the addition of the JourneyCare operations in Chicago, where our system integration is substantially completed. We remain very excited about the opportunities for our Chicago area hospice and home health operations in our largest personal care market.”
Cash and Liquidity
The Company has focused on maintaining a strong financial position in 2022. During the second quarter, Addus paid down approximately $60.0 million on its revolving credit facility, reducing its outstanding bank debt balance to $196.3 million. As of June 30, 2022, the Company had cash of $120.9 million, with capacity and availability under its revolving credit facility of $376.4 million and $168.4 million, respectively. Net cash provided by operating activities was $56.5 million for the second quarter of 2022, inclusive of a net $14.2 million in ARPA funding.
Looking Ahead
Allison added, “We continue to see opportunities for growth both organically and through acquisitions. Our strategic focus is to target expansion opportunities in states where we have a strong existing presence. Acquisitions remain an integral part of our growth strategy, and we continue to have a robust pipeline of acquisition opportunities. We remain well-capitalized and have the flexibility to pursue acquisitions that meet our criteria in all our service lines.
“The COVID-19 pandemic and reduced availability of hospital beds over the past two years pushed more care delivery to the home setting, with favorable patient outcomes and satisfaction driving higher demand. Addus has been a leader in providing quality home-based patient care with a proven operating model across the care continuum, and we are well positioned for continued growth in the home care sector. We have continued to make investments in data analytic capabilities and technologies to drive efficiencies and enhance caregivers’ abilities to coordinate effective care in the home and we believe we’re currently managing labor and other industry challenges effectively. As always, our primary objective is to provide outstanding care to our patients and their families, and we look forward to the opportunities ahead,” said Allison.
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 second 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.
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 3
August 1, 2022
Conference Call
Addus will host a conference call on Tuesday, August 2, 2022, at 9:00 a.m. Eastern time. To access the live call, dial (877) 270-2148 (international dial-in number is (412) 902-6510) and ask to join the Addus HomeCare earnings call. A telephonic replay of the conference call will be available through midnight on August 9, 2022, by dialing 1-877-344-7529 (international dial-in number is (412) 317-0088) and entering pass code 6637024.
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 February 25, 2022, 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 45,500 consumers through 206 locations across 22 states. For more information, please visit www.addus.com.
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 4
August 1, 2022
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(amounts and shares in thousands, except per share data)
(Unaudited)
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Income Statement Information: |
||||||||||||||||
| Net service revenues |
$ | 236,940 | $ | 217,893 | $ | 463,574 | $ | 423,195 | ||||||||
| Cost of service revenues |
161,342 | 149,083 | 317,790 | 293,188 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
75,598 | 68,810 | 145,784 | 130,007 | ||||||||||||
| 31.9 | % | 31.6 | % | 31.4 | % | 30.7 | % | |||||||||
| General and administrative expenses |
55,095 | 48,175 | 108,247 | 93,601 | ||||||||||||
| Depreciation and amortization |
3,609 | 3,587 | 7,130 | 7,188 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
58,704 | 51,762 | 115,377 | 100,789 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
16,894 | 17,048 | 30,407 | 29,218 | ||||||||||||
| Total interest expense, net |
1,878 | 1,231 | 3,640 | 2,425 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
15,016 | 15,817 | 26,767 | 26,793 | ||||||||||||
| Income tax expense |
3,766 | 4,220 | 7,047 | 6,302 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 11,250 | $ | 11,597 | $ | 19,720 | $ | 20,491 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income per diluted share: |
$ | 0.70 | $ | 0.72 | $ | 1.22 | $ | 1.28 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of common shares outstanding: |
||||||||||||||||
| Diluted |
16,131 | 16,043 | 16,113 | 16,063 | ||||||||||||
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cash Flow Information: |
||||||||||||||||
| Net cash provided by (used in) operating activities |
$ | 56,519 | $ | 15,045 | $ | 62,502 | $ | (3,321 | ) | |||||||
| Net cash (used in) investing activities |
(434 | ) | (907 | ) | (86,028 | ) | (1,928 | ) | ||||||||
| Net cash (used in) financing activities |
(59,931 | ) | (285 | ) | (24,452 | ) | (429 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in cash |
(3,846 | ) | 13,853 | (47,978 | ) | (5,678 | ) | |||||||||
| Cash at the beginning of the period |
124,763 | 125,547 | 168,895 | 145,078 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash at the end of the period |
$ | 120,917 | $ | 139,400 | $ | 120,917 | $ | 139,400 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 5
August 1, 2022
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| June 30, | ||||||||
| 2022 | 2021 | |||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash |
$ | 120,917 | $ | 139,400 | ||||
| Accounts receivable, net |
124,554 | 138,270 | ||||||
| Prepaid expenses and other current assets |
10,901 | 12,740 | ||||||
|
|
|
|
|
|||||
| Total current assets |
256,372 | 290,410 | ||||||
|
|
|
|
|
|||||
| Property and equipment, net |
17,733 | 18,708 | ||||||
|
|
|
|
|
|||||
| Other assets |
||||||||
| Goodwill |
574,752 | 469,476 | ||||||
| Intangible assets, net |
74,464 | 67,247 | ||||||
| Deferred tax assets, net |
— | 6,128 | ||||||
| Operating lease assets |
41,207 | 37,191 | ||||||
|
|
|
|
|
|||||
| Total other assets |
690,423 | 580,042 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 964,528 | $ | 889,160 | ||||
|
|
|
|
|
|||||
| Liabilities and stockholders’ equity |
||||||||
| Current liabilities |
||||||||
| Accounts payable |
$ | 21,346 | $ | 23,942 | ||||
| Accrued payroll |
39,432 | 33,836 | ||||||
| Accrued expenses |
38,054 | 35,717 | ||||||
| Government stimulus advance |
16,735 | 8,094 | ||||||
| Accrued workers compensation |
12,437 | 14,382 | ||||||
| Current portion of long-term debt, net of debt issuance costs |
— | 973 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
128,004 | 116,944 | ||||||
| Long-term debt, less current portion, net of debt issuance costs |
196,342 | 193,714 | ||||||
| Long-term lease liability, less current portion |
38,343 | 34,339 | ||||||
| Other long-term liabilities |
2,062 | 108 | ||||||
|
|
|
|
|
|||||
| Total long-term liabilities |
236,747 | 228,161 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
364,751 | 345,105 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
599,777 | 544,055 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 964,528 | $ | 889,160 | ||||
|
|
|
|
|
|||||
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 6
August 1, 2022
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenue by Segment
(Amounts in thousands)
(Unaudited)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net Service Revenues by Segment |
||||||||||||||||
| Personal Care |
$ | 174,330 | $ | 176,267 | $ | 343,962 | $ | 341,135 | ||||||||
| Hospice |
52,074 | 36,909 | 99,801 | 73,003 | ||||||||||||
| Home Health |
10,536 | 4,717 | 19,811 | 9,057 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Revenue |
$ | 236,940 | $ | 217,893 | $ | 463,574 | $ | 423,195 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 7
August 1, 2022
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, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Personal Care |
||||||||||||||||
| States served at period end |
— | — | 21 | 22 | ||||||||||||
| Locations at period end |
— | — | 161 | 164 | ||||||||||||
| Average billable census total |
37,501 | 38,493 | 37,041 | 38,410 | ||||||||||||
| Billable hours (in thousands) |
7,373 | 7,650 | 14,474 | 15,187 | ||||||||||||
| Average billable hours per census per month |
65.2 | 65.9 | 64.8 | 65.6 | ||||||||||||
| Billable hours per business day |
113,426 | 117,688 | 112,198 | 117,729 | ||||||||||||
| Revenues per billable hour |
$ | 23.58 | $ | 22.60 | $ | 23.61 | $ | 22.42 | ||||||||
| Organic growth |
||||||||||||||||
| - Revenue |
2.5 | % | 7.4 | % | 1.7 | % | 5.9 | % | ||||||||
| Hospice |
||||||||||||||||
| Locations served at period end |
— | — | 33 | 33 | ||||||||||||
| Admissions |
3,281 | 2,252 | 6,596 | 4,646 | ||||||||||||
| Average daily census |
3,333 | 2,460 | 3,323 | 2,430 | ||||||||||||
| Average discharge length of stay |
83.8 | 89.3 | 84.0 | 95.6 | ||||||||||||
| Patient days |
303,289 | 223,901 | 578,777 | 439,908 | ||||||||||||
| Revenue per patient day |
$ | 171.70 | $ | 164.85 | $ | 172.43 | $ | 165.95 | ||||||||
| Organic growth |
||||||||||||||||
| - Revenue |
2.5 | % | (8.4 | )% | 3.4 | % | (8.4 | )% | ||||||||
| - Average daily census |
6.1 | % | (14.3 | )% | 6.6 | % | (27.2 | )% | ||||||||
| Home Health |
||||||||||||||||
| Locations served at period end |
— | — | 12 | 10 | ||||||||||||
| New Admissions |
3,351 | 1,186 | 6,687 | 2,354 | ||||||||||||
| Recertifications |
1,409 | 738 | 2,725 | 1,395 | ||||||||||||
| Total Volume |
4,760 | 1,924 | 9,412 | 3,749 | ||||||||||||
| Visits |
68,452 | 31,582 | 133,665 | 59,247 | ||||||||||||
| Organic growth |
||||||||||||||||
| - Revenue |
24.6 | % | 24.7 | % | 12.6 | % | 11.5 | % | ||||||||
| - New admissions |
25.2 | % | 29.5 | % | 13.9 | % | 21.5 | % | ||||||||
| - Volume |
20.6 | % | 19.9 | % | 16.5 | % | 12.3 | % | ||||||||
| Percentage of Revenues by Payor: |
||||||||||||||||
| Personal Care |
||||||||||||||||
| State, local and other governmental programs |
49.0 | % | 50.2 | % | 49.2 | % | 49.6 | % | ||||||||
| Managed care organizations |
46.2 | 44.7 | 45.9 | 45.2 | ||||||||||||
| Private duty |
2.7 | 2.9 | 2.7 | 2.9 | ||||||||||||
| Commercial |
1.2 | 1.5 | 1.2 | 1.5 | ||||||||||||
| Other |
0.9 | % | 0.7 | % | 1.0 | % | 0.8 | % | ||||||||
| Hospice |
||||||||||||||||
| Medicare |
90.5 | % | 93.3 | % | 90.8 | % | 93.8 | % | ||||||||
| Commercial |
5.2 | 2.6 | 5.0 | 2.0 | ||||||||||||
| Managed care organizations |
3.8 | 3.8 | 3.7 | 3.9 | ||||||||||||
| Other |
0.5 | % | 0.3 | % | 0.5 | % | 0.3 | % | ||||||||
| Home Health |
||||||||||||||||
| Medicare |
72.1 | % | 81.1 | % | 72.7 | % | 80.9 | % | ||||||||
| Managed care organizations |
21.5 | 17.4 | 21.0 | 17.9 | ||||||||||||
| Commercial |
6.2 | 1.5 | 6.1 | 1.2 | ||||||||||||
| Other |
0.2 | % | 0.0 | % | 0.2 | % | 0.0 | % | ||||||||
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 8
August 1, 2022
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 June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Reconciliation of Adjusted EBITDA to Net Income: (2) |
||||||||||||||||
| Net income |
$ | 11,250 | $ | 11,597 | $ | 19,720 | $ | 20,491 | ||||||||
| Interest expense, net |
1,878 | 1,231 | 3,640 | 2,425 | ||||||||||||
| (Gain) Loss on sale of assets |
(2 | ) | 16 | (2 | ) | 16 | ||||||||||
| Income tax expense |
3,766 | 4,220 | 7,047 | 6,302 | ||||||||||||
| Depreciation and amortization |
3,609 | 3,587 | 7,130 | 7,188 | ||||||||||||
| Impact of retroactive Illinois rate increase, net |
— | (1,438 | ) | — | — | |||||||||||
| COVID-19 expense, net |
— | — | — | (591 | ) | |||||||||||
| Acquisition and de novo expenses |
1,831 | 2,245 | 4,624 | 3,720 | ||||||||||||
| Stock-based compensation expense |
2,680 | 2,525 | 5,165 | 4,764 | ||||||||||||
| Restructure and other non-recurring costs |
89 | 352 | 186 | 754 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 25,101 | $ | 24,335 | $ | 47,510 | $ | 45,069 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of Adjusted Net Income to Net Income: (3) |
||||||||||||||||
| Net income |
$ | 11,250 | $ | 11,597 | $ | 19,720 | $ | 20,491 | ||||||||
| (Gain) Loss on sale of assets, net of tax |
(1 | ) | 12 | (1 | ) | 12 | ||||||||||
| Impact of retroactive Illinois rate increase, net of tax |
— | (1,054 | ) | — | — | |||||||||||
| COVID-19 expense, net of tax |
— | — | — | (479 | ) | |||||||||||
| Acquisition and de novo expenses, net of tax |
1,394 | 1,790 | 3,407 | 3,142 | ||||||||||||
| Stock-based compensation expense, net of tax |
2,013 | 1,851 | 3,804 | 3,666 | ||||||||||||
| Restructure and other non-recurring costs, net of tax |
66 | 258 | 137 | 584 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Net Income |
$ | 14,722 | $ | 14,454 | $ | 27,067 | $ | 27,416 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (4) |
|
|||||||||||||||
| Net income per diluted share |
$ | 0.70 | $ | 0.72 | $ | 1.22 | $ | 1.28 | ||||||||
| Impact of retroactive Illinois rate increase per diluted share |
— | (0.07 | ) | — | — | |||||||||||
| COVID-19 expense, net per diluted share |
— | — | — | (0.03 | ) | |||||||||||
| Acquisition and de novo expenses per diluted share |
0.08 | 0.11 | 0.21 | 0.20 | ||||||||||||
| Restructure and other non-recurring costs per diluted share |
— | 0.02 | 0.01 | 0.04 | ||||||||||||
| Stock-based compensation expense per diluted share |
0.13 | 0.12 | 0.24 | 0.22 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net income per diluted share |
$ | 0.91 | $ | 0.90 | $ | 1.68 | $ | 1.71 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (5) |
|
|||||||||||||||
| Net service revenues |
$ | 236,940 | $ | 217,893 | $ | 463,574 | $ | 423,195 | ||||||||
| Revenues associated with the closure of certain sites |
— | (619 | ) | — | (1,287 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net service revenues |
$ | 236,940 | $ | 217,274 | $ | 463,574 | $ | 421,908 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
-MORE-
ADUS Announces Second-Quarter 2022 Financial Results
Page 9
August 1, 2022
Footnotes:
(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 expense, stock-based compensation expense, restructure and other non-recurring 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 expenses, restructure and other non-recurring 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 and other non-recurring costs, gain or 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.
-END-