8-K
Addus HomeCare Corp false 0001468328 0001468328 2024-02-26 2024-02-26

 

 

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 26, 2024

 

 

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 26, 2024, 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, 2023. 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 26, 2024, the Company issued the Press Release, announcing, among other matters, its results of operations for the fiscal quarter and year ended December 31, 2023, 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 26, 2024.
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 26, 2024     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   FINN Partners
Addus HomeCare Corporation   (615) 324-7346
(469) 535-8200     dru.anderson@finnpartners.com
investorrelations@addus.com    

ADDUS HOMECARE ANNOUNCES FOURTH QUARTER

AND YEAR END 2023 FINANCIAL RESULTS

Frisco, Texas (February 26, 2024) – 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, 2023.

Fourth Quarter 2023 Highlights:

 

   

Net Service Revenues Grow 11.9% to $276.4 Million

 

   

Net Income of $19.6 Million, or $1.20 per Diluted Share

 

   

Adjusted Net Income per Diluted Share Increases 18.9% year-over-year to $1.32

 

   

Adjusted EBITDA Increases 21.3% year-over-year to $34.3 Million

 

   

Cash Flow from Operations of $30.0 Million

Overview

Net service revenues were $276.4 million for the fourth quarter of 2023, an 11.9% increase compared with $247.1 million for the fourth quarter of 2022. Net income was $19.6 million for the fourth quarter of 2023, compared with $14.8 million for the fourth quarter of 2022, while net income per diluted share was $1.20 compared with $0.91 for the same period a year ago. Adjusted EBITDA increased 21.3% to $34.3 million for the fourth quarter of 2023 from $28.2 million for the fourth quarter of 2022. Adjusted net income was $21.6 million for the fourth quarter of 2023 compared with $18.1 million for the prior-year period, while adjusted net income per diluted share was $1.32 compared with $1.11 for the fourth quarter of 2022. Adjusted net income per diluted share for the fourth quarter of 2023 excludes the positive impact of retroactive collective bargaining negotiations of $(0.07), acquisition expenses of $0.07 and stock-based compensation expense of $0.12 (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)

For 2023, net service revenues increased 11.3% to $1.06 billion from $951.1 million for the prior-year period. Net income was $62.5 million for 2023 compared with $46.0 million for 2022, and net income per diluted share was $3.83 compared with $2.84 per diluted share. Adjusted EBITDA increased 19.3% to $121.0 million for 2023 from $101.5 million for 2022. Adjusted net income was $74.8 million for 2023 compared with $60.3 million for 2022, while adjusted net income per diluted share was $4.58 compared with $3.73 for the prior-year period.

Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter financial and operating performance marked a strong finish to another record year for Addus. Revenue was up 11.9% and adjusted EBITDA was 21.3% higher for the fourth quarter of 2023 compared with the same period last year. Propelled by the strong momentum in our business throughout 2023, we surpassed $1.0 billion in annual revenues for the first time.

“We continued to benefit from robust demand for home-based care, especially for our personal care services, which accounted for 74.0% of our revenues. We were pleased with our 11.2% organic revenue growth on a same store basis for the quarter, and our annual growth rate of 12.1% was a record for our personal care services. This impressive revenue growth reflects higher volumes, as well as continued rate support for our services.

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 2

February 26, 2024

 

“Our fourth quarter results included a full three months of operations from Tennessee Quality Care, a provider of home health, hospice, and private duty nursing services, which we acquired August 1, 2023. These acquired operations allowed us to expand our coverage capabilities to all three levels of home-based care in Tennessee, and we are excited about the opportunities to serve more patients in this strategically important market. We will continue to identify additional markets where we can enhance our personal care presence and add clinical care operations, especially where we see potential for growth in value-based contracting models, as payors have expressed interest in both the cost benefits and high quality of our home-based care services.

“Hospice services accounted for 19.8% of revenue for the fourth quarter and included the benefit of a 3.1% rate increase that was effective on October 1, 2023. Hospice revenues were up 3.5% over the fourth quarter of 2022 on a same-store basis, and we were pleased to see further improvement in average daily census and length of stay compared with the same period last year,” said Allison.

Cash and Liquidity

As of December 31, 2023, the Company had cash of $64.8 million and bank debt of $126.4 million, with capacity and availability under its revolving credit facility of $470.0 million and $335.6 million, respectively. Net cash provided by operating activities was $30.0 million for the fourth quarter of 2023, and $112.2 million for the full year 2023, inclusive of a net $7.6 million in ARPA funds utilization.

Allison added, “In 2023 we generated strong cash flow from operations, bolstered by higher revenues and consistent payments from our various payors. Combined with our disciplined balance sheet management, we were able to fully fund our acquisitions during 2023 and still lower our revolver balance by $8.5 million from the end of the prior year. Importantly, we have the financial flexibility to continue to invest in our business and pursue our strategic growth initiatives, including acquisitions and other potential development opportunities. We are optimistic that we will see attractive acquisition opportunities in 2024 as market conditions continue to improve.

“As we look to 2024, we will continue to build on our momentum and capitalize on the growing demand for our home-based care. Addus offers a strong value proposition with high-quality and cost-effective care for patients in the preferred home setting. We are fortunate to have a dedicated team of caregivers across our markets who advance our mission to provide outstanding care and support for increasing numbers of patients and families. We continue to look for ways to improve the way we deliver care with enhanced training and investments in applications that support our caregivers with more efficient scheduling and overall service. With this capable team representing Addus, we are confident in our ability to extend our market reach in 2024 and deliver greater value to our shareholders.”

Non-GAAP Financial Measures

The information provided in this release includes adjusted net income, adjusted EBITDA, adjusted net income per diluted share and adjusted net service revenue, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition expenses, stock-based compensation expenses, restructure and other non-recurring costs, gain or loss on the sale of assets, retroactive rate increases from New York, and the retroactive impact from collective bargaining negotiations. The Company defines adjusted EBITDA as earnings before interest expense, other non-operating income, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, retroactive rate increases from New York, and the retroactive impact from collective bargaining negotiations. The Company defines adjusted net income per diluted share as net income per share, adjusted for acquisition expenses, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, retroactive rate increases from New York, and the retroactive impact from collective bargaining negotiations. 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 net income per share to net income 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 net income 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 and Year End 2023 Financial Results

Page 3

February 26, 2024

 

Conference Call

Addus will host a conference call on Tuesday, February 27, 2024, at 9:00 a.m. Eastern time. To access the live call, dial (833) 629-0620 (international dial-in number is (412) 317-1805) and ask to join the Addus HomeCare earnings call. A telephonic replay of the conference call will be available through midnight on March 5, 2024, by dialing (877) 344-7529 (international dial-in number is (412) 317-0088) and entering pass code 1856114.

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, 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 security breaches, cyber-attacks, loss of data or cybersecurity threats or incidents, 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 28, 2023, 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 over 49,000 consumers through 217 locations across 22 states. For more information, please visit www.addus.com.

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 4

February 26, 2024

 

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,
 
     2023     2022     2023     2022  

Net service revenues

   $ 276,351     $ 247,050     $ 1,058,651     $ 951,120  

Cost of service revenues

     183,938       168,281       718,775       651,381  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     92,413       78,769       339,876       299,739  
     33.4     31.9     32.1     31.5

General and administrative expenses

     60,766       54,466       234,794       216,942  

Depreciation and amortization

     3,677       3,489       14,126       14,060  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     64,443       57,955       248,920       231,002  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     27,970       20,814       90,956       68,737  

Total interest expense, net

     2,616       2,537       9,630       8,566  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     25,354       18,277       81,326       60,171  

Income tax expense

     5,776       3,515       18,810       14,146  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 19,578     $ 14,762     $ 62,516     $ 46,025  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per diluted share:

   $ 1.20     $ 0.91     $ 3.83     $ 2.84  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares outstanding:

        

Diluted

     16,307       16,258       16,311       16,181  

 

Cash Flow Information:    For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     2023     2022     2023     2022  

Net cash provided by operating activities

   $ 30,049     $ 24,292     $ 112,247     $ 105,110  

Net cash (used in) investing activities

     (5,302     (19,236     (119,236     (106,590

Net cash (used in) financing activities

     (39,706     (30,739     (8,181     (87,454
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash

     (14,959     (25,683     (15,170     (88,934

Cash at the beginning of the period

     79,750       105,644       79,961       168,895  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash at the end of the period

   $ 64,791     $ 79,961     $ 64,791     $ 79,961  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 5

February 26, 2024

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     December 31,  
     2023      2022  

Assets

     

Current assets

     

Cash

   $ 64,791      $ 79,961  

Accounts receivable, net

     115,499        125,501  

Prepaid expenses and other current assets

     19,714        17,345  
  

 

 

    

 

 

 

Total current assets

     200,004        222,807  
  

 

 

    

 

 

 

Property and equipment, net

     24,011        21,182  
  

 

 

    

 

 

 

Other assets

     

Goodwill

     662,995        582,837  

Intangible assets, net

     91,983        72,188  

Operating lease assets

     45,433        38,980  
  

 

 

    

 

 

 

Total other assets

     800,411        694,005  
  

 

 

    

 

 

 

Total assets

   $ 1,024,426      $ 937,994  
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities

     

Accounts payable

   $ 26,183      $ 22,092  

Accrued payroll

     56,551        44,937  

Accrued expenses

     33,236        27,507  

Operating lease liabilities - current portion

     11,339        10,801  

Government stimulus advance

     5,765        12,912  

Accrued workers compensation

     12,043        12,897  
  

 

 

    

 

 

 

Total current liabilities

     145,117        131,146  

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

     124,132        131,772  

Long-term lease liability, less current portion

     39,711        35,479  

Other long-term liabilities

     8,772        6,057  
  

 

 

    

 

 

 

Total long-term liabilities

     172,615        173,308  
  

 

 

    

 

 

 

Total liabilities

     317,732        304,454  
  

 

 

    

 

 

 

Total stockholders’ equity

     706,694        633,540  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 1,024,426      $ 937,994  
  

 

 

    

 

 

 

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 6

February 26, 2024

 

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,
 
     2023      2022      2023      2022  

Net Service Revenues by Segment

           

Personal Care

   $ 204,491      $ 183,365      $ 794,718      $ 706,507  

Hospice

     54,741        50,612        207,155        201,772  

Home Health

     17,119        13,073        56,778        42,841  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $ 276,351      $ 247,050      $ 1,058,651      $ 951,120  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 7

February 26, 2024

 

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,
 
     2023     2022     2023     2022  

Personal Care

        

States served at period end

     —        —        21       21  

Locations at period end

     —        —        156       156  

Average billable census - same store (1)

     37,993       38,169       38,430       37,482  

Average billable census - acquisitions

     85       —        91       —   

Average billable census total

     38,078       38,169       38,521       37,482  

Billable hours (in thousands)

     7,694       7,465       30,658       29,412  

Average billable hours per census per month

     67.2       65.0       66.2       65.1  

Billable hours per business day

     118,366       114,849       117,915       113,122  

Revenues per billable hour

   $ 26.53     $ 24.48     $ 25.86     $ 23.91  

Organic growth

        

- Revenue

     11.2     7.9     12.1     4.6

Hospice

        

Locations served at period end

     —        —        39       33  

Admissions

     3,326       3,393       12,902       13,171  

Average daily census (2)

     3,381       3,213       3,415       3,279  

Average discharge length of stay

     97.8       90.2       94.4       87.7  

Patient days

     311,015       295,619       1,203,522       1,176,193  

Revenue per patient day

   $ 176.01     $ 171.21     $ 175.43     $ 171.55  

Organic growth

        

- Revenue

     3.5     (4.9 )%      2.0     0.4

- Average daily census

     (1.1 )%      (0.9 )%      0.3     1.9

Home Health

        

Locations served at period end

     —        —        24       13  

New Admissions

     4,654       4,081       16,251       14,452  

Recertifications

     3,214       1,631       9,030       5,838  

Total Volume

     7,868       5,712       25,281       20,290  

Visits

     104,161       88,046       344,919       293,381  

Organic growth

        

- Revenue

     (17.8 )%      8.3     (7.1 )%      8.2

- New admissions

     (10.3 )%      (12.8 )%      (9.8 )%      16.4

- Volume

     (9.2 )%      (1.8 )%      (7.2 )%      18.7

Percentage of Revenues by Payor:

        

Personal Care

        

State, local and other governmental programs

     50.5     49.3     50.4     49.3

Managed care organizations

     46.4       46.7       46.2       46.3  

Private duty

     1.9       2.5       2.0       2.6  

Commercial

     0.8       0.9       0.8       1.1  

Other

     0.4     0.6     0.6     0.7

Hospice

        

Medicare

     89.3     91.3     89.9     90.9

Commercial

     6.3       4.5       6.0       5.0  

Managed care organizations

     3.7       3.7       3.4       3.6  

Other

     0.7     0.5     0.7     0.5

Home Health

        

Medicare

     68.8     74.9     72.3     73.5

Managed care organizations

     25.5       18.9       22.2       20.3  

Commercial

     4.4       6.0       4.4       6.0  

Other

     1.3     0.2     1.1     0.2

 

(1)

Exited sites would have reduced same store census for the three and twelve months ended December 31, 2022 by 3 and 24, respectively.

(2)

Exited sites would have reduced average daily census for the three and twelve months ended December 31, 2022 by 6 and 27, respectively.

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 8

February 26, 2024

 

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,
 
     2023     2022     2023     2022  

Reconciliation of Adjusted EBITDA to Net Income: (1)

        

Net income

   $ 19,578     $ 14,762     $ 62,516     $ 46,025  

Interest expense, net

     2,616       2,537       9,630       8,566  

(Gain) Loss on sale of assets

     3       (33     (2     (60

Income tax expense

     5,776       3,515       18,810       14,146  

Depreciation and amortization

     3,677       3,489       14,126       14,060  

Impact of retroactive New York rate increase

     —        —        (868     —   

Impact of retroactive collective bargaining negotiations

     (1,338     —        —        —   

Acquisition expenses

     1,428       1,155       6,220       7,657  

Stock-based compensation expense

     2,488       2,680       10,319       10,625  

Restructure and other non-recurring costs

     27       143       269       461  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 34,255     $ 28,248     $ 121,020     $ 101,480  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Net income

   $ 19,578     $ 14,762     $ 62,516     $ 46,025  

(Gain) Loss on sale of assets

     3       (33     (2     (60

Impact of retroactive New York rate increase

     —        —        (868     —   

Impact of retroactive collective bargaining negotiations

     (1,338     —        —        —   

Acquisition expenses

     1,428       1,155       6,220       7,657  

Stock-based compensation expense

     2,488       2,680       10,319       10,625  

Restructure and other non-recurring costs

     27       143       269       461  

Tax effect

     (594     (652     (3,694     (4,393
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income

   $ 21,592     $ 18,055     $ 74,760     $ 60,315  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Net income per diluted share

   $ 1.20     $ 0.91     $ 3.83     $ 2.84  

Impact of retroactive New York rate increase per diluted share

     —        —        (0.04     —   

Impact of retroactive collective bargaining negotiations per diluted share

     (0.07     —        —        —   

Acquisition expenses per diluted share

     0.07       0.06       0.29       0.36  

Restructure and other non-recurring costs per diluted share

     —        0.01       0.01       0.02  

Stock-based compensation expense per diluted share

     0.12       0.13       0.49       0.51  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 1.32     $ 1.11     $ 4.58     $ 3.73  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Net service revenues

   $ 276,351     $ 247,050     $ 1,058,651     $  951,120  

Revenues associated with the closure of certain sites

     (0     (722     (1,325     (4,339
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net service revenues

   $ 276,351     $ 246,328     $ 1,057,326     $ 946,781  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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ADUS Announces Fourth Quarter and Year End 2023 Financial Results

Page 9

February 26, 2024

 

Footnotes:

 

(1)

We define Adjusted EBITDA as earnings before net interest expense, income tax expense, depreciation and amortization, acquisition expenses, stock-based compensation expense, restructure expenses and other non-recurring costs, gain or loss on the sale of assets, retroactive rate increases from New York and the retroactive impact of collective bargaining negotiations. 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 acquisition expenses, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, retroactive rate increases from New York and the retroactive impact of collective bargaining negotiations. 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 acquisition expenses, stock-based compensation expense and restructure and other non-recurring costs, gain or loss on the sale of asset, retroactive rate increases from New York and the retroactive impact of collective bargaining negotiations. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

(4)

We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

 

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