0001468328 us-gaap:RestrictedStockMember 2018-01-01 2018-03-31 0001468328 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-03-31 0001468328 us-gaap:RestrictedStockMember 2017-01-01 2017-03-31 0001468328 us-gaap:EmployeeStockOptionMember 2017-01-01 2017-03-31 0001468328 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001468328 us-gaap:RetainedEarningsMember 2018-03-31 0001468328 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001468328 us-gaap:RetainedEarningsMember 2017-12-31 0001468328 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001468328 us-gaap:CommonStockMember 2018-03-31 0001468328 us-gaap:CommonStockMember 2017-12-31 0001468328 adus:SunCitiesHomecareMember 2018-01-01 2018-03-31 0001468328 adus:OptionsHomeCareMember 2018-01-01 2018-03-31 0001468328 adus:LifestyleOptionsIncMember 2018-01-01 2018-03-31 0001468328 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-03-31 0001468328 stpr:NY 2018-01-01 2018-03-31 0001468328 stpr:NM 2018-01-01 2018-03-31 0001468328 adus:StateLocalAndOtherGovernmentalProgramsMember 2018-01-01 2018-03-31 0001468328 adus:PrivatePayMember 2018-01-01 2018-03-31 0001468328 adus:ManagedCareOrganizationsMember 2018-01-01 2018-03-31 0001468328 adus:CommercialInsuranceMember 2018-01-01 2018-03-31 0001468328 adus:AllOtherStatesMember 2018-01-01 2018-03-31 0001468328 stpr:NY 2017-01-01 2017-03-31 0001468328 stpr:NM 2017-01-01 2017-03-31 0001468328 stpr:IL 2017-01-01 2017-03-31 0001468328 adus:StateLocalAndOtherGovernmentalProgramsMember 2017-01-01 2017-03-31 0001468328 adus:PrivatePayMember 2017-01-01 2017-03-31 0001468328 adus:ManagedCareOrganizationsMember 2017-01-01 2017-03-31 0001468328 adus:CommercialInsuranceMember 2017-01-01 2017-03-31 0001468328 adus:AllOtherStatesMember 2017-01-01 2017-03-31 0001468328 us-gaap:OtherRestructuringMember 2018-03-31 0001468328 us-gaap:OneTimeTerminationBenefitsMember 2018-03-31 0001468328 us-gaap:OtherRestructuringMember 2017-12-31 0001468328 us-gaap:OneTimeTerminationBenefitsMember 2017-12-31 0001468328 us-gaap:FurnitureAndFixturesMember us-gaap:MinimumMember 2018-01-01 2018-03-31 0001468328 us-gaap:FurnitureAndFixturesMember us-gaap:MaximumMember 2018-01-01 2018-03-31 0001468328 us-gaap:ComputerEquipmentMember us-gaap:MinimumMember 2018-01-01 2018-03-31 0001468328 us-gaap:ComputerEquipmentMember us-gaap:MaximumMember 2018-01-01 2018-03-31 0001468328 adus:ComputerSoftwareMember us-gaap:MinimumMember 2018-01-01 2018-03-31 0001468328 adus:ComputerSoftwareMember us-gaap:MaximumMember 2018-01-01 2018-03-31 0001468328 us-gaap:TransportationEquipmentMember 2018-01-01 2018-03-31 0001468328 adus:AmbercareCorporationMember us-gaap:SubsequentEventMember 2018-05-01 2018-05-01 0001468328 us-gaap:OtherRestructuringMember 2018-01-01 2018-03-31 0001468328 us-gaap:OneTimeTerminationBenefitsMember 2018-01-01 2018-03-31 0001468328 adus:ArcadiaHomeCareAndStaffingMember us-gaap:SubsequentEventMember 2018-04-01 0001468328 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:RevolvingCreditFacilityMember us-gaap:MinimumMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:RevolvingCreditFacilityMember us-gaap:MaximumMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:RevolvingCreditFacilityMember 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:RevolvingCreditFacilityMember 2017-12-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:RevolvingCreditFacilityMember 2017-05-08 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:UncommittedIncrementalTermLoanMember 2017-05-08 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:TermLoanMember 2017-05-08 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:DelayedDrawTermLoanMember 2017-05-08 0001468328 adus:TerminatedSeniorSecuredCreditFacilityMember 2017-05-08 0001468328 adus:TerminatedSeniorSecuredCreditFacilityMember us-gaap:RevolvingCreditFacilityMember 2017-05-07 0001468328 adus:TerminatedSeniorSecuredCreditFacilityMember us-gaap:LetterOfCreditMember 2017-05-07 0001468328 adus:TerminatedSeniorSecuredCreditFacilityMember adus:DelayedDrawTermLoanMember 2017-05-07 0001468328 adus:UncommittedIncrementalTermLoanMember 2017-05-07 0001468328 us-gaap:MinimumMember 2018-01-01 2018-03-31 0001468328 us-gaap:MaximumMember 2018-01-01 2018-03-31 0001468328 us-gaap:NoncompeteAgreementsMember 2018-03-31 0001468328 us-gaap:TrademarksAndTradeNamesMember 2017-12-31 0001468328 us-gaap:NoncompeteAgreementsMember 2017-12-31 0001468328 us-gaap:CustomerRelationshipsMember 2017-12-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember 2018-01-01 2018-03-31 0001468328 adus:TerminatedSeniorSecuredCreditFacilityMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:TermLoanMember 2018-03-31 0001468328 adus:FirstAmericanCommercialBancorpMember us-gaap:MinimumMember 2018-03-31 0001468328 adus:FirstAmericanCommercialBancorpMember us-gaap:MaximumMember 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:TermLoanMember 2017-12-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember 2017-05-08 0001468328 adus:NewCreditFacilityMember adus:TermLoanMember 2018-03-31 0001468328 us-gaap:CapitalLeaseObligationsMember 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:TermLoanMember 2017-12-31 0001468328 us-gaap:CapitalLeaseObligationsMember 2017-12-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MinimumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MinimumMember adus:BasedOnApplicableSeniorLeverageRatioMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MinimumMember adus:BasedOnApplicableLeverageRatioMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MaximumMember adus:BasedOnApplicableSeniorLeverageRatioMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MaximumMember adus:BasedOnApplicableLeverageRatioMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:FederalFundsRateMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:NY 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:NM 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:IL 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember adus:AllOtherStatesMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:StateLocalAndOtherGovernmentalProgramsMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:PrivatePayMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:ManagedCareOrganizationsMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:CommercialInsuranceMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember adus:IllinoisDepartmentOnAgingMember 2018-01-01 2018-03-31 0001468328 us-gaap:AccountsReceivableMember adus:IllinoisDepartmentOnAgingMember 2018-01-01 2018-03-31 0001468328 us-gaap:AccountsReceivableMember adus:IllinoisDepartmentOnAgingMember 2017-01-01 2017-12-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:NY 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:NM 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember stpr:IL 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember adus:AllOtherStatesMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:StateLocalAndOtherGovernmentalProgramsMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:PrivatePayMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:ManagedCareOrganizationsMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember adus:CommercialInsuranceMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-03-31 0001468328 us-gaap:SalesRevenueServicesNetMember adus:IllinoisDepartmentOnAgingMember 2017-01-01 2017-03-31 0001468328 2017-03-31 0001468328 2016-12-31 0001468328 adus:MeridianLeasingCorporationMember 2016-10-01 0001468328 adus:FirstAmericanCommercialBancorpMember 2015-04-13 0001468328 adus:FirstAmericanCommercialBancorpMember 2014-09-11 0001468328 adus:FirstAmericanCommercialBancorpMember 2014-07-12 0001468328 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-03-31 0001468328 us-gaap:LeaseholdImprovementsMember 2018-03-31 0001468328 us-gaap:FurnitureAndFixturesMember 2018-03-31 0001468328 us-gaap:ComputerEquipmentMember 2018-03-31 0001468328 adus:SunCitiesHomecareMember stpr:AZ 2018-01-01 2018-03-31 0001468328 adus:OptionsHomeCareMember stpr:NM 2018-01-01 2018-03-31 0001468328 adus:LifestyleOptionsIncMember stpr:IL 2018-01-01 2018-03-31 0001468328 adus:SunCitiesHomecareMember stpr:AZ 2017-10-01 2017-10-01 0001468328 adus:OptionsHomeCareMember stpr:NM 2017-08-01 2017-08-01 0001468328 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001468328 2018-04-30 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember us-gaap:MaximumMember 2017-05-08 2017-05-08 0001468328 us-gaap:EmployeeStockOptionMember 2018-03-31 0001468328 us-gaap:EmployeeStockOptionMember 2017-03-31 0001468328 adus:LhcGroupIncMember 2017-10-01 2017-10-01 0001468328 adus:OptionsHomeCareMember us-gaap:MinimumMember stpr:NM 2017-08-01 2017-08-01 0001468328 adus:ArcadiaHomeCareAndStaffingMember us-gaap:SubsequentEventMember 2018-04-01 2018-04-01 0001468328 stpr:IL 2017-03-01 2017-03-01 0001468328 stpr:IL 2016-07-01 2016-09-30 0001468328 us-gaap:TrademarksAndTradeNamesMember 2018-03-31 0001468328 us-gaap:CustomerRelationshipsMember 2018-03-31 0001468328 2017-12-31 0001468328 2017-01-01 2017-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:RestrictionOnAbilityToConsummateAcquisitionsMember 2018-01-01 2018-03-31 0001468328 stpr:IL 2018-01-01 2018-03-31 0001468328 2018-03-31 0001468328 adus:FirstAmericanCommercialBancorpMember 2018-01-01 2018-03-31 0001468328 adus:MeridianLeasingCorporationMember 2016-10-01 2016-10-01 0001468328 adus:LifestyleOptionsIncMember 2018-01-01 0001468328 adus:SunCitiesHomecareMember 2017-10-01 0001468328 adus:OptionsHomeCareMember 2017-08-01 0001468328 adus:AmbercareCorporationMember stpr:NM 2018-02-27 2018-02-27 0001468328 adus:AmbercareCorporationMember stpr:NM 2018-02-27 0001468328 adus:LifestyleSunCitiesAndOptionsHomeCareMember 2018-01-01 2018-03-31 0001468328 adus:LifestyleSunCitiesAndOptionsHomeCareMember 2017-01-01 2017-03-31 0001468328 adus:LifestyleOptionsIncMember stpr:IL 2018-01-01 2018-01-01 0001468328 2018-01-01 2018-03-31 0001468328 adus:NewCreditFacilityMember adus:CapitalOneMember adus:RestrictionOnDividendsMember 2018-01-01 2018-03-31 adus:segment iso4217:USD xbrli:shares xbrli:shares adus:state adus:entity adus:agreement adus:item xbrli:pure iso4217:USD 5000000 147000 800000 7329000 4728000 10600000 40000000 695000 86000 242000 P25M P48M <div> 11. Concentration of Cash      Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. The Company maintains cash with financial institutions which, at times, may exceed federally insured limits. The Company believes it is not exposed to any significant credit risk on cash. </div> 847000 847000 P5D 80000000 60000000 400000 <div> 5. Details of Certain Balance Sheet Accounts Prepaid expenses and other current assets consisted of the following: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="51%"> </td> <td width="5%"> </td> <td width="18%"> </td> <td width="5%"> </td> <td width="18%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">December 31, 2017</td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td align="left">Prepaid health insurance</td> <td align="right">$</td> <td align="right">1,393</td> <td align="right">$</td> <td align="right">2,901</td></tr> <tr valign="bottom"><td align="left">Prepaid workers' compensation and liability</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">insurance</td> <td align="right"> </td> <td align="right">837</td> <td align="left"> </td> <td align="right">1,332</td></tr> <tr valign="bottom"><td align="left">Prepaid rent</td> <td align="right"> </td> <td align="right">501</td> <td align="left"> </td> <td align="right">555</td></tr> <tr valign="bottom"><td align="left">Workers' compensation insurance receivable</td> <td align="right"> </td> <td align="right">1,219</td> <td align="left"> </td> <td align="right">543</td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,300</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,048</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">7,250</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">8,379</td></tr></table></div>   Accrued expenses consisted of the following: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="50%"> </td> <td width="6%"> </td> <td width="18%"> </td> <td width="5%"> </td> <td width="18%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">December 31, 2017</td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td align="left">Accrued payroll</td> <td align="right">$</td> <td align="right">20,012</td> <td align="right">$</td> <td align="right">19,783</td></tr> <tr valign="bottom"><td align="left">Accrued workers' compensation insurance</td> <td align="right"> </td> <td align="right">13,599</td> <td align="right"> </td> <td align="right">12,574</td></tr> <tr valign="bottom"><td align="left">Accrued health insurance (1)</td> <td align="right"> </td> <td align="right">3,163</td> <td align="right"> </td> <td align="right">6,471</td></tr> <tr valign="bottom"><td align="left">Accrued payroll taxes</td> <td align="right"> </td> <td align="right">1,309</td> <td align="right"> </td> <td align="right">1,065</td></tr> <tr valign="bottom"><td align="left">Accrued professional fees</td> <td align="right"> </td> <td align="right">1,105</td> <td align="right"> </td> <td align="right">1,312</td></tr> <tr valign="bottom"><td align="left">Accrued severance</td> <td align="right"> </td> <td align="right">506</td> <td align="right"> </td> <td align="right">562</td></tr> <tr valign="bottom"><td align="left">Accrued restructuring (2)</td> <td align="right"> </td> <td align="right">1,055</td> <td align="right"> </td> <td align="right">1,077</td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">1,404</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">1,510</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">42,153</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">44,354</td></tr></table></div>   <table class="MetaData" cellspacing="0" border="0"> <tr><td valign="top" width="2%" nowrap="nowrap">(1)      </td> <td class="MetaData" width="98%">The Company provides health insurance coverage to qualified union employees providing personal care services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Company's insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State of Illinois. Amounts due of $1.2 million and $2.3 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2018 and December 31, 2017, respectively. </td></tr> <tr><td valign="top" width="2%" nowrap="nowrap">(2)      </td> <td class="MetaData" width="98%">Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016. </td></tr></table> </div> -0.070 -0.109 <div> 2. Gain on Sale of Assets      On October 1, 2017, the Company sold its 10% membership interests in two joint ventures with LHC Group, Inc. ("LHCG"), which were previously reported as Investments in joint ventures on the Company's Unaudited Condensed Consolidated Balance Sheets at March 31, 2017. The Company received proceeds of approximately $1.3 million and recorded a pre-tax gain of $0.4 million on the sale of its membership interest.      Given the Company's focus on providing services to consumers in their homes, effective March 1, 2017, the Company ceased the adult day services business and completed its sale of substantially all of the assets used in three adult day services centers in Illinois. The Company received proceeds of approximately $2.4 million and recorded a pre-tax gain of $2.1 million on the sale of the three adult day services centers. </div> <div> <div class="MetaData"> Going Concern      In connection with the preparation of the financial statements for the three months ended March 31, 2018 and 2017, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity's ability to continue as a going concern within one year after the date of the issuance, or the date of availability, of the financial statements to be issued. The evaluation concluded that there did not appear to be evidence of substantial doubt of the entity's ability to continue as a going concern.</div> </div> 2300000 1200000 1152000 533000 619000 <div> <div class="MetaData"> Interest Income      Illinois law entitles designated service program providers to receive a prompt payment interest penalty based on qualifying services approved for payment that remain unpaid after a designated period of time. The Company accounted for the interest income in accordance with ASC 606. The amount and intent of the State of Illinois to provide payment was not certain, as such, the interest income was recognized when the State of Illinois approved a prompt payment interest penalty during the three months ended March 31, 2018, removing the constraint related to the amount and intent to pay the prompt payment interest. For the three months ended March 31, 2018, the Company received $2.3 million in prompt payment interest and reported it in its Unaudited Condensed Consolidated Statements of Income as interest income. While the Company may be owed additional prompt payment interest, the amount, timing, and intent to provide receipt of such payments remains uncertain, and the Company will continue to recognize prompt payment interest income upon satisfaction of these constraints.</div> </div> 3 3 3 34000 2300 20 2 115 26 1 470000 746000 <div> <div class="MetaData"> Other Income      Other income consisted of income distributions received from investments in joint ventures. The Company accounted for this income in accordance with ASC Topic 325, "Investments—Other." The Company recognized the net accumulated earnings only to the extent distributed by the joint ventures on the date received. The Company subsequently sold these equity investments on October 1, 2017 (see Note 2).</div> </div> 0.10 1332000 837000 20000000 563000 <div>   <div align="left"> <table cellspacing="0" border="0"> <tr><td width="44%"> </td> <td width="55%"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Computer equipment</td> <td width="55%" align="right">3 – 5 years</td></tr> <tr valign="bottom"><td width="44%" align="left">Furniture and equipment</td> <td width="55%" align="right">5 – 7 years</td></tr> <tr valign="bottom"><td width="44%" align="left">Transportation equipment</td> <td width="55%" align="right">5 years</td></tr> <tr valign="bottom"><td width="44%" align="left">Computer software</td> <td width="55%" align="right">5 – 10 years</td></tr> <tr valign="bottom"><td width="44%" align="left">Leasehold improvements</td> <td width="55%" align="right">Lesser of useful life or lease term, unless</td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td width="55%" align="right">probability of lease renewal is likely</td></tr></table></div> </div> 100000 P4Y 0.0425 543000 1219000 false --12-31 Q1 2018 2018-03-31 10-Q 0001468328 11692354 Accelerated Filer Addus HomeCare Corp adus

4271000

6468000

88952000

83771000

562000

506000

6471000

3163000

44354000

42153000

1065000

1309000

1312000

1105000

19783000

20012000

95963000

96846000

859000

400000

900000

79000

1000000

1300000

267110000

272853000

151085000

154427000

0.40

0.44

0.40

0.43

<div> <div align="left"> <table cellspacing="0" border="0"> <tr valign="bottom"><td width="55%" align="left"> </td> <td width="3%" align="left"> </td> <td width="38%" colspan="3" align="center">For the Three Months Ended March 31,</td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="38%" colspan="3" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 3px;" width="19%" align="center">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 3px;" width="16%" align="center">2017</td></tr> <tr valign="bottom"><td width="55%" align="left">Net service revenues</td> <td width="3%" align="left">$</td> <td width="19%" align="right">109,448</td> <td width="3%" align="right">$</td> <td width="16%" align="right">109,192</td></tr> <tr valign="bottom"><td width="55%" align="left">Operating income</td> <td width="3%" align="left"> </td> <td width="19%" align="right">4,728</td> <td width="3%" align="right"> </td> <td width="16%" align="right">7,329</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income</td> <td width="3%" align="left"> </td> <td width="19%" align="right">5,024</td> <td width="3%" align="right"> </td> <td width="16%" align="right">4,583</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income per common share</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="16%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Basic income per share</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">0.44</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="16%" align="right">0.40</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Diluted income per share</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">0.43</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="16%" align="right">0.40</td></tr></table></div>   </div>

4583000

5024000

109192000

109448000

800000

200000

48000

22600000

2300000

4100000

18500000

<div> 3. Acquisitions      Effective February 27, 2018, the Company entered into a definitive securities purchase agreement to acquire Ambercare Corporation ("Ambercare") for approximately $40.0 million (not including purchase price credit given for an estimated $10.6 million in excess cash held by Ambercare at closing) to expand operations in the State of New Mexico. Addus expects to complete the transaction in the second quarter of 2018, subject to customary closing conditions, with funding through the delayed draw term loan portion of its credit facility.      Effective January 1, 2018, the Company acquired certain assets of LifeStyle Options, Inc. ("LifeStyle") in order to expand private pay services in Illinois. The total consideration for the transaction was $4.1 million, comprised of $3.3 million in cash and $0.8 million, which has not yet been paid, representing the estimated fair value of contingent consideration, subject to the achievement of certain performance targets set forth in an earn-out agreement. The related acquisition costs, included in general and administrative expenses on the Company's Unaudited Condensed Consolidated Statements of Income, were $48,000 and were expensed as incurred. The results of operations from this acquired entity are included in the Company's Unaudited Condensed Consolidated Statements of Income from the date of the acquisition.      The Company's acquisition of LifeStyle has been accounted for in accordance with ASC Topic 805, "Business Combinations," and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350, "Goodwill and Other Intangible Assets." The acquisition was recorded at its fair value as of January 1, 2018. Under business combination accounting, the LifeStyle Purchase Price was $4.1 million and was allocated to LifeStyle's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, which is preliminary and subject to completion of working capital adjustments, the total purchase price has been allocated as follows: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="69%"> </td> <td width="3%"> </td> <td width="21%"> </td> <td width="5%"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="3%" align="left"> </td> <td width="21%" align="center">Total</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="3%" align="left"> </td> <td width="21%" align="center">(Amounts in</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="21%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="21%" align="right">2,751</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="21%" align="right">1,152</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="21%" align="right">524</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="21%" align="right">32</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Property and equipment</td> <td width="3%" align="left"> </td> <td width="21%" align="right">18</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Accrued liabilities</td> <td width="3%" align="left"> </td> <td width="21%" align="right">(242</td> <td width="5%" align="left">)</td></tr> <tr valign="bottom"><td width="69%" align="left">Accounts payable</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="21%" align="right">(105</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="5%" align="left">)</td></tr> <tr valign="bottom"><td width="69%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="21%" align="right">4,130</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="5%" align="left"> </td></tr></table></div>        Management's assessment of qualitative factors affecting goodwill for LifeStyle includes: estimates of market share at the date of purchase; ability to grow in the market; synergy with existing Company operations; and, the presence of managed care payors in the market.      Identifiable intangible assets acquired consist of trade name and customer relationships (see Note 1 for estimated useful lives of the Company's identifiable intangible assets). The estimated fair value of identifiable intangible assets was determined, using Level 3 inputs as defined under ASC Topic 820, with the assistance of a valuation specialist. It is anticipated that the goodwill and intangible assets acquired are deductible for tax purposes.      The LifeStyle acquisition accounted for $1.5 million of net service revenues and $12,000 of net income for the three months ended March 31, 2018.      Effective October 1, 2017, the Company acquired certain assets of Community Partnered Resources, Inc. d/b/a Sun Cities Caregivers and d/b/a Sun Cities Homecare ("Sun Cities"), in the State of Arizona, to enhance operations in a target market. The total consideration for the transaction was comprised of $2.3 million in cash. The related acquisition costs, included in general and administrative expenses on the Company's Unaudited Condensed Consolidated Statements of Income, were $0.2 million and were expensed as incurred. The results of operations from this acquired entity are included in the Company's Unaudited Condensed Consolidated Statements of Income from the date of the acquisition.      The Company's acquisition of Sun Cities has been accounted for in accordance with ASC Topic 805, "Business Combinations," and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350, "Goodwill and Other Intangible Assets." The acquisition was recorded at its fair value as of October 1, 2017. Under business combination accounting, the Sun Cities purchase price was $2.3 million and was allocated to Sun Cities's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="72%"> </td> <td width="3%"> </td> <td width="19%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">Total</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">(Amounts in</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="19%" align="right">1,103</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">682</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="19%" align="right">240</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Cash</td> <td width="3%" align="left"> </td> <td width="19%" align="right">321</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">10</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accrued liabilities</td> <td width="3%" align="left"> </td> <td width="19%" align="right">(86</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts payable</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="right">(14</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">2,256</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> </td></tr></table></div>        Management's assessment of qualitative factors affecting goodwill for Sun Cities includes: estimates of market share at the date of purchase; ability to grow in the market; synergy with existing Company operations; and, the presence of managed care payors in the market.      Identifiable intangible assets acquired consist of trade name and customer relationships (see Note 1 for estimated useful lives of the Company's identifiable intangible assets). The estimated fair value of identifiable intangible assets was determined, using Level 3 inputs as defined under ASC Topic 820, with the assistance of a valuation specialist. The goodwill and intangible assets acquired are deductible for tax purposes.      The Sun Cities acquisition accounted for $0.5 million of net service revenues and $17,000 of net income for the three months ended March 31, 2018.      On April 24, 2017, the Company entered into a definitive securities purchase agreement with HB Management Group, Inc. to purchase Options Services, Inc. d/b/a Options Home Care ("Options Home Care"). On August 1, 2017, the Company completed its acquisition of all the outstanding securities of Options Home Care for a total purchase price of $22.6 million (the "Options Purchase Price"). Options Home Care is a provider of personal care services in more than 20 counties in New Mexico and the acquisition expands the footprint of the Company's existing operations in the state. The related acquisition costs, included in general and administrative expenses on the Company's Unaudited Condensed Consolidated Statements of Income, were $0.8 million and were expensed as incurred. The results of Options Home Care are included on the Company's Unaudited Condensed Consolidated Statements of Income from the date of the acquisition.      The Company's acquisition of Options Home Care has been accounted for in accordance with ASC Topic 805, "Business Combinations," and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350, "Goodwill and Other Intangible Assets." The acquisition was recorded at its fair value as of August 1, 2017. Under business combination accounting, the Options Purchase Price was $22.6 million and was allocated to Options Home Care's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="72%"> </td> <td width="3%"> </td> <td width="19%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">Total</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">(Amounts in</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="19%" align="right">16,754</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">5,324</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="19%" align="right">995</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Cash</td> <td width="3%" align="left"> </td> <td width="19%" align="right">205</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">41</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accrued liabilities</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="right">(695</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">22,624</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> </td></tr></table></div>        Management's assessment of qualitative factors affecting goodwill for Options Home Care includes: estimates of market share at the date of purchase; ability to grow in the market; synergy with existing Company operations; and, the presence of managed care payors in the market.      Identifiable intangible assets acquired consist of trade name and customer relationships (see Note 1 for estimated useful lives of the Company's identifiable intangible assets). The estimated fair value of identifiable intangible assets was determined with the assistance of a valuation specialist. The goodwill and intangible assets acquired are deductible for tax purposes.      The Options Home Care acquisition accounted for $4.5 million of net service revenues and $0.2 million of net income for the three months ended March 31, 2018.      The following table contains unaudited pro forma condensed consolidated income statement information of the Company had the acquisition of LifeStyle, Sun Cities and Options Home Care closed on January 1, 2017. <div align="left"> <table cellspacing="0" border="0"> <tr><td width="55%"> </td> <td width="3%"> </td> <td width="19%"> </td> <td width="3%"> </td> <td width="16%"> </td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td width="3%" align="left"> </td> <td width="38%" colspan="3" align="center">For the Three Months Ended March 31,</td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="38%" colspan="3" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 3px;" width="19%" align="center">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 3px;" width="16%" align="center">2017</td></tr> <tr valign="bottom"><td width="55%" align="left">Net service revenues</td> <td width="3%" align="left">$</td> <td width="19%" align="right">109,448</td> <td width="3%" align="right">$</td> <td width="16%" align="right">109,192</td></tr> <tr valign="bottom"><td width="55%" align="left">Operating income</td> <td width="3%" align="left"> </td> <td width="19%" align="right">4,728</td> <td width="3%" align="right"> </td> <td width="16%" align="right">7,329</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income</td> <td width="3%" align="left"> </td> <td width="19%" align="right">5,024</td> <td width="3%" align="right"> </td> <td width="16%" align="right">4,583</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income per common share</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="16%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Basic income per share</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">0.44</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="16%" align="right">0.40</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Diluted income per share</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">0.43</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="16%" align="right">0.40</td></tr></table></div>        The pro forma disclosures in the table above include adjustments for amortization of intangible assets, tax expense and acquisition costs to reflect results that are more representative of the combined results of the transactions as if LifeStyle, Sun Cities and Options Home Care had been acquired effective January 1, 2017. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operations that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies. </div>

205000

321000

41000

10000

32000

995000

240000

524000

14000

105000

5324000

682000

1152000

18000

22624000

2256000

4130000

12000

200000

17000

3291000

635000

868000

1485000

303000

631000

3000

1824000

2700000

1400000

400000

600000

666000

30000

21000

11000

645000

634000

636000

1467000

8013000

19156000

53754000

63406000

11143000

9652000

<div> 8. Commitments and Contingencies Legal Proceedings      From time to time, the Company is subject to legal and/or administrative proceedings incidental to its business. It is the opinion of management that the outcome of pending legal and/or administrative proceedings will not have a material effect on the Company's Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Income.      On January 20, 2016, the Company was served with a lawsuit filed in the United States District Court for the Northern District of Illinois against the Company and Cigna Corporation by Stop Illinois Marketing Fraud, LLC, a qui tam relator formed for the purpose of bringing this action. In the action, the plaintiff alleges, inter alia, violations of the federal False Claims Act relating primarily to allegations of violations of the federal Anti-Kickback Statute and allegedly improper referrals of patients from the Company's home care division to the Company's home health business, substantially all of which was sold in 2013. The plaintiff seeks to recover damages, fees and costs under the federal False Claims Act including treble damages, civil penalties and its attorneys' fees. The U.S. government has declined to intervene at this time. Plaintiff amended its complaint on April 4, 2016 to include additional allegations in support of its False Claims Act claims, including alleged violations of the federal Anti-Kickback Statute. The Company and Cigna Corporation filed a motion to dismiss the amended complaint on June 6, 2016. On February 3, 2017, the Court granted Cigna Corporation's motion to dismiss in full, and granted the Company's motion to dismiss in part allowing Plaintiff another chance to amend its complaint. Plaintiff timely filed a second amended complaint on March 10, 2017, withdrawing its conspiracy claim under the Federal False Claims Act and adding an explicit claim under the Illinois False Claims Act for the same underlying kickback allegations. On April 7, 2017, the Company filed a partial motion to dismiss the Second Amended Complaint. On May 24, 2017, the State of Illinois filed notice that it was declining to intervene in the plaintiff's claim under the Illinois False Claims Act. On March 21, 2018, the Court granted the Company's motion to dismiss the Second Amended Complaint in part and narrowed the lawsuit to whether the federal False Claims Act was violated with respect to home health services provided at three senior living facilities in Illinois. The Company intends to defend the litigation vigorously and believes the case will not have a material adverse effect on its business, financial condition or results of operations. Employment Agreements      The Company has entered into employment agreements with certain members of senior management. The terms of these agreements are up to four years with the potential to auto-renew and include non-competition and nondisclosure provisions, as well as provide for defined severance payments in the event of termination.      A substantial percentage of the Company's workforce is represented by the Service Employees International Union ("SEIU"). The Company has a national agreement with the SEIU. Wages and benefits are negotiated at the local level at various times throughout the year. These negotiations are often initiated when the Company receives increases in hourly rates from various state agencies. Upon expiration of these collective bargaining agreements, the Company may not be able to negotiate labor agreements on satisfactory terms with these labor unions. </div>

0.001

40000000

11632000

11691000

11632000

11691000

12000

<div> 10. Significant Payors For the three months ended March 31, 2018 and 2017 the Company's revenue mix by payor type was as follows: <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="38%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="13%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="10%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="6" align="center">For the Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center"> </td> <td style="text-indent: 5px;" align="center">% of Net</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">% of Net</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center">Amount</td> <td align="center">Service</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Amount</td> <td align="center">Service</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 5px;" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">State, local and other governmental programs</td> <td align="left">$</td> <td align="right">67,300</td> <td align="right">61.5</td> <td align="left">%</td> <td align="left">$</td> <td align="right">65,943</td> <td align="right">64.9</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Managed care organizations</td> <td align="left"> </td> <td align="right">37,830</td> <td align="right">34.6</td> <td align="left"> </td> <td align="left"> </td> <td align="right">32,825</td> <td align="right">32.3</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Private pay</td> <td align="left"> </td> <td align="right">3,755</td> <td align="right">3.4</td> <td align="left"> </td> <td align="left"> </td> <td align="right">2,155</td> <td align="right">2.1</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Commercial insurance</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">563</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.5</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">683</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.7</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total net service revenues</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">109,448</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">101,606</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td></tr></table></div>        The Company derives a significant amount of its net service revenues from its operations in Illinois, New York and New Mexico. The percentages of total revenue for each of these significant states for the three months ended March 31, 2018 and 2017 were as follows: <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="10%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="35%" colspan="4" align="center">For the Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="35%" colspan="2" align="center">2018</td> <td width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="center">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="center"> </td> <td width="20%" align="center"> </td> <td style="text-indent: 5px;" width="15%" align="center">% of Net</td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="14%" align="center"> </td> <td width="10%" align="center">% of Net</td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="center"> </td> <td width="20%" align="center">Amount</td> <td width="15%" align="center">Service</td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="14%" align="center">Amount</td> <td width="10%" align="center">Service</td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 5px;" width="15%" align="center">Revenues</td> <td width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left">Illinois</td> <td width="2%" align="left">$</td> <td width="20%" align="right">57,358</td> <td width="15%" align="right">52.4</td> <td width="3%" align="left">%</td> <td width="3%" align="left"> $</td> <td width="14%" align="right">53,988</td> <td width="10%" align="right">53.1</td> <td width="3%" align="left">%</td></tr> <tr valign="bottom"><td width="30%" align="left">New York</td> <td width="2%" align="left"> </td> <td width="20%" align="right">15,363</td> <td width="15%" align="right">14.0</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="14%" align="right">14,274</td> <td width="10%" align="right">14.0</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">New Mexico</td> <td width="2%" align="left"> </td> <td width="20%" align="right">11,770</td> <td width="15%" align="right">10.8</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="14%" align="right">6,943</td> <td width="10%" align="right">6.8</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">All other states</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">24,957</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="15%" align="right">22.8</td> <td width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="right">26,401</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">26.1</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">Total net service revenues</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="20%" align="right">109,448</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="15%" align="right">100.0</td> <td width="3%" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> $</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="14%" align="right">101,606</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="10%" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">%</td></tr></table></div>        A substantial portion of the Company's net service revenues and accounts receivable are derived from services performed for federal, state and local governmental agencies. The Illinois Department on Aging accounted for 36.6% and 36.5% of the Company's net service revenues for the three months ended March 31, 2018 and 2017, respectively.      The related receivables due from the Illinois Department on Aging represented 30.1% and 37.5% of the Company's net accounts receivable at March 31, 2018 and December 31, 2017, respectively. </div>

0.365

1.000

0.007

0.323

0.021

0.649

0.261

0.531

0.068

0.140

0.375

0.301

0.366

1.000

0.005

0.346

0.034

0.615

0.228

0.524

0.108

0.140

<div> Principles of Consolidation       All intercompany balances and transactions have been eliminated in consolidation.      The Company used the cost method to account for its investments in joint ventures in which it owned 10% equity interests. The Company sold such investments on October 1, 2017 (see Note 2). </div>

74289000

81543000

0.0050

0.0100

0.0325

0.0225

0.0250

0.0150

0.0000

1002000

44438000

634000

43875000

2900000

0.111

0.0386

0.036

0.03

0.0416

2020-11-10

P5Y

2481000

2352000

129000

1601000

1472000

1516000

1807000

1516000

1807000

0.37

0.42

0.37

0.42

0.332

0.187

0.350

0.210

0.004

0.010

-0.004

0.007

0.052

0.069

39217000

29147000

1872000

8198000

40485000

29859000

1900000

8726000

P25Y

P2Y

2065000

2100000

400000

18873000

21459000

16754000

1103000

90339000

2751000

93090000

2751000

<div> 4. Goodwill and Intangible Assets <div> A summary of the goodwill activity for the three months ended March 31, 2018 is provided below: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="65%"> </td> <td width="3%"> </td> <td width="29%"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="3%" align="left"> </td> <td width="29%" align="center">Goodwill</td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="3%" align="left"> </td> <td width="29%" align="center">(Amounts in</td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="29%" align="center">Thousands)</td></tr> <tr valign="bottom"><td width="65%" align="left">Goodwill, at December 31, 2017</td> <td width="3%" align="left">$</td> <td width="29%" align="right">90,339</td></tr> <tr valign="bottom"><td width="65%" align="left">Additions for acquisitions</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="29%" align="right">2,751</td></tr> <tr valign="bottom"><td width="65%" align="left">Goodwill, at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="29%" align="right">93,090</td></tr></table></div></div>      The Company's identifiable intangible assets consist of customer and referral relationships, trade names, trademarks and non-competition agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years. <div> <div> The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of March 31, 2018 and December 31, 2017: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="39%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">Customer</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center">Trade</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">Non-</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">and referral</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center">names and</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">competition</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="center">relationships</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center">trademarks</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="center">agreements</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="center">Total</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="58%" colspan="12" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td width="39%" align="left">Gross balance at December 31, 2017</td> <td width="2%" align="left">$</td> <td width="12%" align="right">39,017</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">14,641</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">2,155</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="8%" align="right">55,813</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Accumulated amortization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(29,147</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">(8,198</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(1,872</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="right">(39,217</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="39%" align="left">Net Balance at December 31, 2017</td> <td width="2%" align="left"> </td> <td width="12%" align="right">9,870</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">6,443</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">283</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">16,596</td> <td width="2%" align="left"> </td></tr> <tr><td width="97%" colspan="13"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Gross balance at January 1, 2018</td> <td width="2%" align="left"> </td> <td width="12%" align="right">39,017</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">14,641</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">2,155</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">55,813</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Additions for acquisitions</td> <td width="2%" align="left"> </td> <td width="12%" align="right">533</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">619</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">—</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">1,152</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Accumulated amortization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(29,859</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">(8,726</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(1,900</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="right">(40,485</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="39%" align="left">Net Balance at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="12%" align="right">9,691</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="10%" align="right">6,534</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="12%" align="right">255</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="8%" align="right">16,480</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td></tr></table></div></div></div>      Amortization expense related to the identifiable intangible assets amounted to $1.3 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively. Goodwill is not amortized pursuant to ASC Topic 350. </div>

27317000

27905000

6374000

5973000

<div> <div> <div> 7. Income Taxes      A reconciliation of the statutory federal tax rate of 21.0% and 35.0% for the three months ended March 31, 2018 and 2017 is summarized as follows: <div> <table cellspacing="0" border="0"> <tr><td width="52%"> </td> <td width="25%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="3" align="right">Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Federal income tax at statutory rate</td> <td align="right">21.0</td> <td align="left">%</td> <td align="right">35.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">State and local taxes, net of federal benefit</td> <td align="right">6.9</td> <td align="left"> </td> <td align="right">5.2</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Jobs tax credits, net</td> <td align="right">(10.9</td> <td align="left">)</td> <td align="right">(7.0</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Nondeductible permanent items</td> <td align="right">1.0</td> <td align="left"> </td> <td align="right">0.4</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.7</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(0.4</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effective income tax rate</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">18.7</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">33.2</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td></tr></table></div>        On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act ("Tax Reform Act"). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35.0% to a flat 21.0% rate, effective January 1, 2018. The effective income tax rate was 18.7% and 33.2% for the three months ended March 31, 2018 and 2017, respectively. The difference between our federal statutory and effective income tax rates are principally due to the inclusion of state taxes and the use of federal employment tax credits. A provisional valuation allowance increased $0.1 million in the first quarter as a result of the elimination of a performance based equity exception in calculating the $1.0 million limitation for 162(m) under the Tax Reform Act.</div></div> </div>

82000

1187000

2115000

1115000

<div> <div class="MetaData"> <div> Income Tax Expense</div>      The Company accounts for income taxes under the provisions of ASC Topic 740, "Income Taxes." The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in its financial statements or tax returns. Deferred taxes, resulting from differences between the financial and tax basis of the Company's assets and liabilities, are also adjusted for changes in tax rates and tax laws when changes are enacted. ASC Topic 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC Topic 740 also prescribes a recognition threshold and measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. In addition, ASC Topic 740 provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions.</div> </div>

967000

2092000

1207000

-5627000

1602000

-2482000

-2005000

-1161000

<div> <div class="MetaData"> Intangible Assets <div>      The Company's identifiable intangible assets consist of customer and referral relationships, trade names, trademarks and non-competition agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years.      Intangible assets with finite lives are amortized using the estimated economic benefit method over the useful life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company would recognize an impairment loss when the estimated future non-discounted cash flows associated with the intangible asset is less than the carrying value. An impairment charge would then be recorded for the excess of the carrying value over the fair value. The Company estimates the fair value of these intangible assets using the income approach. No impairment charge was recorded for the three months ended March 31, 2018 and 2017.      The income approach, which the Company uses to estimate the fair value of its intangible assets (other than goodwill), is dependent on a number of factors including estimates of future market growth and trends, forecasted revenue and costs, expected periods over which the assets will be utilized, appropriate discount rates and other variables. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but which are unpredictable and inherently uncertain. Actual future results may differ from those estimates.</div></div> </div>

55813000

39017000

2155000

14641000

55813000

39017000

2155000

14641000

16596000

9870000

283000

6443000

16480000

9691000

255000

6534000

651000

910000

-644000

1412000

2300000

656000

766000

7000

2322000

92030000

92032000

267110000

272853000

51724000

51382000

40306000

40650000

44400000

43900000

50000000

25000000

35000000

100000000

125000000

250000000

80000000

45000000

100000000

125000000

105100000

111300000

0.0050

0.0025

42959000

42157000

3099000

2761000

39860000

39396000

<div> 6. Long-Term Debt Long-term debt consisted of the following: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="44%"> </td> <td width="2%"> </td> <td width="23%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center">December 31, 2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td width="2%" align="center"> </td> <td width="47%" colspan="4" align="center">(Amounts in Thousands)</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Term loan under the new credit facility</td> <td width="2%" align="left">$</td> <td width="23%" align="right">43,875</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="20%" align="right">44,438</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Capital leases</td> <td width="2%" align="left"> </td> <td width="23%" align="right">634</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,002</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Less unamortized issuance costs</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="right">(2,352</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">(2,481</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Total</td> <td width="2%" align="left">$</td> <td width="23%" align="right">42,157</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="20%" align="right">42,959</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Less current maturities</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="right">(2,761</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">(3,099</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Long-term debt</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="23%" align="right">39,396</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="center">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="20%" align="right">39,860</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> </td></tr></table></div>   Capital Leases      On July 12, 2014, September 11, 2014 and April 13, 2015, the Company executed three 48-month capital lease agreements for $2.7 million, $1.4 million and $0.4 million, respectively, with First American Commercial Bancorp, Inc. The capital leases were entered into to finance property and equipment at the Company's support center in Downers Grove, IL. The underlying assets are included in "Property and equipment, net of accumulated depreciation and amortization" in the accompanying Unaudited Condensed Consolidated Balance Sheets. These capital lease obligations require monthly payments through September 2019 and have implicit interest rates that range from 3.0% to 3.6%. At the end of the term, the Company has the option to purchase the assets for $1 per lease agreement.      Effective October 1, 2016, the Company entered into a 25-month capital lease agreement for $0.6 million with Meridian Leasing Corporation. The capital lease was entered into to finance property and equipment for the Company's telephone system. The underlying assets are included in "Property and equipment, net of accumulated depreciation and amortization" in the accompanying Unaudited Condensed Consolidated Balance Sheets. This capital lease obligation requires monthly payments through October 2018 and has an implicit interest rate of 11.1%. At the end of the term, the Company has the option to purchase the assets for $1 per lease agreement. An analysis of the leased property under capital leases by major classes is as follows. <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="51%"> </td> <td width="17%" align="center"> </td> <td width="26%" align="center"> </td> <td width="4%" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">Asset Balances at</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">March 31, 2018</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">Classes of Property</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(Amounts in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Leasehold improvements</td> <td align="left">$</td> <td align="right">1,485</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Furniture and equipment</td> <td align="left"> </td> <td align="right">868</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Computer equipment</td> <td align="left"> </td> <td align="right">635</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Computer software</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">303</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,291</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: accumulated depreciation</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(1,467</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">1,824</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div>   The future minimum payments for capital leases as of March 31, 2018 are as follows: <div> <div align="left"> <table cellspacing="0" border="0"> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Capital Lease</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">(Amounts In</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">2018</td> <td align="left"> </td> <td align="left">$</td> <td align="right">636</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">2019</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">30</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total minimum lease payments</td> <td align="left"> </td> <td align="left"> </td> <td align="right">666</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: amount representing estimated executory</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">costs (such as taxes, maintenance and</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">insurance), including profit thereon,</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">included in total minimum lease payments</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(21</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net minimum lease payments</td> <td align="left"> </td> <td align="left"> </td> <td align="right">645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: amount representing interest (1)</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(11</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Present value of net minimum lease payments(2)</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">634</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div>   <table class="MetaData" cellspacing="0" border="0"> <tr><td valign="top" width="2%" nowrap="nowrap">(1)      </td> <td class="MetaData" width="98%">Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. </td></tr> <tr><td valign="top" width="2%" nowrap="nowrap">(2)      </td> <td class="MetaData" width="98%">Included in the balance sheet as $631,000 of the current portion of long-term debt and $3,000 of the long- term debt, less current portion.</td></tr></table></div> Senior Secured Credit Facility      On May 8, 2017, the Company entered into a credit agreement (the "Credit Agreement") to obtain a new credit facility with certain lenders and Capital One, N.A., as a lender and swing lender and as agent for all lenders. This new credit facility totals $250.0 million, replaces the Company's previous senior secured credit facility totaling $125.0 million ("Terminated Senior Secured Credit Facility", see description below for more details), and terminates the Second Amended and Restated Credit and Guaranty Agreement, dated as of November 10, 2015, as modified by the May 24, 2016 amendment (as amended, the "Terminated Senior Secured Credit Agreement"), between the Company, certain lenders and Fifth Third Bank, as agent, which evidenced the Terminated Senior Secured Credit Facility. The new credit facility includes a $125.0 million revolving loan, a $45.0 million term loan and an $80.0 million delayed draw term loan. The maturity of the new credit facility is five years, although the delayed draw term loan is only available until November 8, 2018. Under the terms of an accordion feature of the Credit Agreement, $100.0 million is also available for incremental term loans. Borrowings under the delayed draw term loans and the incremental term loans are limited to financing or refinancing Permitted Acquisitions (as defined in the Credit Agreement). The availability of additional draws under the revolving credit portion of the Company's new credit facility is conditioned, among other things, upon (after giving effect to such draws) the ratio of Consolidated Total Indebtedness (as defined in the Credit Agreement), less subordinated indebtedness, to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) not exceeding 4.25:1.00. In connection with the new credit facility, the Company incurred $2.9 million of debt issuance costs.      Addus HealthCare is the borrower, with its parent, Holdings, and substantially all of Holdings' subsidiaries are guarantors under the new credit facility. The new credit facility is secured by a first priority security interest in all of the Company's and the other credit parties' current and future tangible and intangible assets, including the shares of stock of the borrower and subsidiaries.      Interest on the Company's new credit facility may be payable at (x) the sum of (i) an applicable margin ranging from 1.50% to 2.25% based on the applicable senior leverage ratio plus (ii) a base rate equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the "prime rate," (b) the sum of the federal funds rate plus a margin of 0.50% and (c) the sum of the adjusted LIBOR that would be applicable to a loan with an interest period of one month advanced on the applicable day (not to be less than 0.00%) plus a margin of 1.00% or (y) the sum of (i) an applicable margin ranging from 2.50% to 3.25% based on the applicable leverage ratio plus (ii) the offered rate per annum for the applicable interest period that appears on Reuters Screen LIBOR01 Page. Swing loans may not be LIBOR loans.      The Company pays a fee ranging from 0.25% to 0.50% based on the applicable leverage ratio times the unused portion of the revolving portion of the new credit facility.      As of March 31, 2018, the Company had a total of $43.9 million of term loans outstanding with an interest rate of 4.16% on the new credit facility and the total availability under the revolving credit loan facility was $111.3 million. As of December 31, 2017, the Company had a total of $44.4 million of term loans outstanding with an interest rate of 3.86% on the new credit facility and the total availability under the revolving credit loan facility was $105.1 million.      The Credit Agreement contains customary affirmative covenants regarding, among other things, the maintenance of records, compliance with laws, maintenance of permits, maintenance of insurance and property and payment of taxes. The Credit Agreement also contains certain customary financial covenants and negative covenants that, among other things, include a requirement to maintain a minimum fixed charge coverage ratio, a requirement to stay below a maximum senior leverage ratio and a requirement to stay below a maximum permitted amount of capital expenditures, as well as restrictions on guarantees, indebtedness, liens, investments and loans, subject to customary carve outs, a restriction on dividends (provided that Addus HealthCare may make distributions to the Company in an amount that does not exceed $5.0 million in any year absent of an event of default, plus limited exceptions for tax and administrative distributions), a restriction on the ability to consummate acquisitions in amounts exceeding $60.0 million individually and $80.0 million in the aggregate each year (in each case, without the consent of the lenders), restrictions on mergers, dispositions of assets, and affiliate transactions, and restrictions on fundamental changes and lines of business. As of March 31, 2018, the Company was in compliance with all of its Credit Agreement covenants. Terminated Senior Secured Credit Facility      Prior to May 8, 2017, the Company was a party to the Terminated Senior Secured Credit Agreement with certain lenders and Fifth Third Bank, as agent and letters of credit issuer. The Terminated Senior Secured Credit Facility provided a $100.0 million revolving line of credit, a delayed draw term loan facility of up to $25.0 million and an uncommitted incremental term loan facility of up to $50.0 million, which was to expire on November 10, 2020 and included a $35.0 million sublimit for the issuance of letters of credit. Substantially all of the subsidiaries of Holdings were co-borrowers, and Holdings had guaranteed the borrowers' obligations under the Terminated Senior Secured Credit Facility. The Terminated Senior Secured Credit Facility was secured by a first priority security interest in all of Holdings' and the borrowers' current and future tangible and intangible assets, including the shares of stock of the borrowers. </div>

290000

-925000

1238000

-3699000

9615000

14276000

4259000

4858000

<div> <div class="MetaData"> Accounting Pronouncements      In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Upon initial evaluation, the Company believes that the new standard will have a material impact on its consolidated balance sheets but it will not affect its liquidity. It has been determined that the Company will need to secure new software to account for the change in accounting for leases and is currently reviewing the software options available.      In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income are to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13.      In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current Step 1). ASU 2017-04 is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company is currently evaluating the provisions of ASU 2017-04 to determine how its goodwill impairment testing will be impacted and whether it may elect to adopt ASU 2017-04 prior to the stated effective date.      In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This standard amends and adjusts how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted the standard on a retrospective basis on January 1, 2018. ASU 2016-15 did not have an impact on our Condensed Consolidated Statements of Cash Flows.</div> </div>

20356000

23344000

6961000

4561000

1510000

1404000

108536000

111042000

3048000

3300000

446000

407000

57000

237000

345000

18000

3300000

3283000

40000000

1162000

416000

<div> <div class="MetaData"> <div> Allowance for Doubtful Accounts      In 2017, the Company established its allowance for doubtful accounts to the extent it was probable that a portion or all of a particular account will not be collected. The Company established its provision for doubtful accounts primarily by reviewing the creditworthiness of significant customers and through evaluations over the collectability of the receivables. An allowance for doubtful accounts was maintained at a level that the Company's management believed was sufficient to cover potential losses.      In 2018, subsequent adjustments that are determined to be the result of an adverse change in the payor's ability to pay are recognized as bad debt expense due to the adoption of ASC 606-10. The Company recorded $2.0 million as a reduction to revenue that would have been recorded as bad debt expense over the three months ended March 31, 2017.</div></div> </div>

8379000

7250000

2901000

1393000

555000

501000

2400000

20000000

1300000

2400000

954000

24000

7489000

7384000

P5Y

P10Y

P5Y

P3Y

P7Y

P5Y

2032000

78000

351000

368000

313000

<div> 9. Severance and Restructuring      In 2016, the Company initiated steps to streamline its operations. The Company incurred total expenses related to these initiatives of approximately $0.5 million and $0.9 million for the three months ended March 31, 2018 and 2017, respectively. These costs are included in general and administrative expenses on the Unaudited Condensed Consolidated Statements of Income. The expenses recorded for the three months ended March 31, 2018 included costs related to terminated employees and other professional fees. The expenses recorded for the three months ended March 31, 2017 included costs related to terminated employees. The Company expects some additional restructuring and other costs to occur, however, the amount and timing cannot be determined at this time. The following provides the components of and changes in our severance and restructuring accruals: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="42%" align="center"> </td> <td width="14%" align="center"> </td> <td width="15%" align="center"> </td> <td width="3%" align="center"> </td> <td width="6%" align="center"> </td> <td width="13%" align="center"> </td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td align="center">Employee</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td align="center">Termination</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Restructuring</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Costs</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">and Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance at December 31, 2017</td> <td align="left">$</td> <td align="right">562</td> <td align="left"> </td> <td align="center">$</td> <td align="right">1,077</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="left"> </td> <td align="right">181</td> <td align="left"> </td> <td align="left"> </td> <td align="right">323</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Utilization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(237</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(345</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">506</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="center">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">1,055</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div>        Employee termination costs represent accrued severance payable to terminated employees with employment and/or separation agreements with the Company.      Restructuring and other costs consists of the accrual related to lease commitments and write-offs of leasehold improvements and unused office space and property and equipment resulting from the closure of three adult day services centers in Illinois.      The aforementioned accruals are included in Accrued Expenses on the Unaudited Condensed Consolidated Balance Sheets and the aforementioned expenses are included in General and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. </div>

181000

323000

562000

1077000

506000

1055000

1077000

1055000

900000

500000

79105000

83963000

<div> <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="10%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="35%" colspan="4" align="center">For the Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="35%" colspan="2" align="center">2018</td> <td width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="center">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="center"> </td> <td width="20%" align="center"> </td> <td style="text-indent: 5px;" width="15%" align="center">% of Net</td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="14%" align="center"> </td> <td width="10%" align="center">% of Net</td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="center"> </td> <td width="20%" align="center">Amount</td> <td width="15%" align="center">Service</td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="14%" align="center">Amount</td> <td width="10%" align="center">Service</td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 5px;" width="15%" align="center">Revenues</td> <td width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left">Illinois</td> <td width="2%" align="left">$</td> <td width="20%" align="right">57,358</td> <td width="15%" align="right">52.4</td> <td width="3%" align="left">%</td> <td width="3%" align="left"> $</td> <td width="14%" align="right">53,988</td> <td width="10%" align="right">53.1</td> <td width="3%" align="left">%</td></tr> <tr valign="bottom"><td width="30%" align="left">New York</td> <td width="2%" align="left"> </td> <td width="20%" align="right">15,363</td> <td width="15%" align="right">14.0</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="14%" align="right">14,274</td> <td width="10%" align="right">14.0</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">New Mexico</td> <td width="2%" align="left"> </td> <td width="20%" align="right">11,770</td> <td width="15%" align="right">10.8</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="14%" align="right">6,943</td> <td width="10%" align="right">6.8</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">All other states</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">24,957</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="15%" align="right">22.8</td> <td width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="14%" align="right">26,401</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">26.1</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">Total net service revenues</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="20%" align="right">109,448</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="15%" align="right">100.0</td> <td width="3%" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> $</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="14%" align="right">101,606</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="10%" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">%</td></tr></table></div> </div>

101606000

26401000

683000

32825000

2155000

65943000

53988000

6943000

14274000

109448000

24957000

563000

37830000

3755000

67300000

57358000

11770000

15363000

-2000000

1500000

4500000

500000

<div> <div align="left"> <table cellspacing="0" border="0"> <tr><td width="50%"> </td> <td width="6%"> </td> <td width="18%"> </td> <td width="5%"> </td> <td width="18%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">December 31, 2017</td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td align="left">Accrued payroll</td> <td align="right">$</td> <td align="right">20,012</td> <td align="right">$</td> <td align="right">19,783</td></tr> <tr valign="bottom"><td align="left">Accrued workers' compensation insurance</td> <td align="right"> </td> <td align="right">13,599</td> <td align="right"> </td> <td align="right">12,574</td></tr> <tr valign="bottom"><td align="left">Accrued health insurance (1)</td> <td align="right"> </td> <td align="right">3,163</td> <td align="right"> </td> <td align="right">6,471</td></tr> <tr valign="bottom"><td align="left">Accrued payroll taxes</td> <td align="right"> </td> <td align="right">1,309</td> <td align="right"> </td> <td align="right">1,065</td></tr> <tr valign="bottom"><td align="left">Accrued professional fees</td> <td align="right"> </td> <td align="right">1,105</td> <td align="right"> </td> <td align="right">1,312</td></tr> <tr valign="bottom"><td align="left">Accrued severance</td> <td align="right"> </td> <td align="right">506</td> <td align="right"> </td> <td align="right">562</td></tr> <tr valign="bottom"><td align="left">Accrued restructuring (2)</td> <td align="right"> </td> <td align="right">1,055</td> <td align="right"> </td> <td align="right">1,077</td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">1,404</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">1,510</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">42,153</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">44,354</td></tr></table></div>   <table cellspacing="0" border="0"> <tr><td valign="top" width="2%" nowrap="nowrap">(1)      </td> <td width="98%">The Company provides health insurance coverage to qualified union employees providing personal care services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Company's insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State of Illinois. Amounts due of $1.2 million and $2.3 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2018 and December 31, 2017, respectively. </td></tr> <tr><td valign="top" width="2%" nowrap="nowrap">(2)      </td> <td width="98%">Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016.</td></tr></table> </div>

<div> <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="51%"> </td> <td width="17%" align="center"> </td> <td width="26%" align="center"> </td> <td width="4%" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">Asset Balances at</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">March 31, 2018</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">Classes of Property</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(Amounts in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Leasehold improvements</td> <td align="left">$</td> <td align="right">1,485</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Furniture and equipment</td> <td align="left"> </td> <td align="right">868</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Computer equipment</td> <td align="left"> </td> <td align="right">635</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Computer software</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">303</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,291</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: accumulated depreciation</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(1,467</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">1,824</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div> </div>

<div>   <div align="left"> <table cellspacing="0" border="0"> <tr><td width="44%"> </td> <td width="2%"> </td> <td width="23%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="center">December 31, 2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td width="2%" align="center"> </td> <td width="47%" colspan="4" align="center">(Amounts in Thousands)</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Term loan under the new credit facility</td> <td width="2%" align="left">$</td> <td width="23%" align="right">43,875</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="20%" align="right">44,438</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Capital leases</td> <td width="2%" align="left"> </td> <td width="23%" align="right">634</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,002</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Less unamortized issuance costs</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="right">(2,352</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">(2,481</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Total</td> <td width="2%" align="left">$</td> <td width="23%" align="right">42,157</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="20%" align="right">42,959</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Less current maturities</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="23%" align="right">(2,761</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="20%" align="right">(3,099</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Long-term debt</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="23%" align="right">39,396</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="center">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="20%" align="right">39,860</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left"> </td></tr></table></div> </div>

<div> <table cellspacing="0" border="0"> <tr><td width="52%"> </td> <td width="25%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="3" align="right">Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Federal income tax at statutory rate</td> <td align="right">21.0</td> <td align="left">%</td> <td align="right">35.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">State and local taxes, net of federal benefit</td> <td align="right">6.9</td> <td align="left"> </td> <td align="right">5.2</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Jobs tax credits, net</td> <td align="right">(10.9</td> <td align="left">)</td> <td align="right">(7.0</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Nondeductible permanent items</td> <td align="right">1.0</td> <td align="left"> </td> <td align="right">0.4</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.7</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(0.4</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effective income tax rate</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">18.7</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">33.2</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td></tr></table> </div>

<div> <div align="left"> <table cellspacing="0" border="0"> <tr><td width="59%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="21%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Capital Lease</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">(Amounts In</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">2018</td> <td align="left"> </td> <td align="left">$</td> <td align="right">636</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">2019</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">30</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total minimum lease payments</td> <td align="left"> </td> <td align="left"> </td> <td align="right">666</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: amount representing estimated executory</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">costs (such as taxes, maintenance and</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">insurance), including profit thereon,</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">included in total minimum lease payments</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(21</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net minimum lease payments</td> <td align="left"> </td> <td align="left"> </td> <td align="right">645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: amount representing interest (1)</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(11</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Present value of net minimum lease payments(2)</td> <td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">634</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div>   <table cellspacing="0" border="0"> <tr><td valign="top" width="2%" nowrap="nowrap">(1)      </td> <td width="98%">Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. </td></tr> <tr><td valign="top" width="2%" nowrap="nowrap">(2)      </td> <td width="98%">Included in the balance sheet as $631,000 of the current portion of long-term debt and $3,000 of the long- term debt, less current portion. </td></tr></table> </div>

<div> <table cellspacing="0" border="0"> <tr><td width="65%"> </td> <td width="3%"> </td> <td width="29%"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="3%" align="left"> </td> <td width="29%" align="center">Goodwill</td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="3%" align="left"> </td> <td width="29%" align="center">(Amounts in</td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="29%" align="center">Thousands)</td></tr> <tr valign="bottom"><td width="65%" align="left">Goodwill, at December 31, 2017</td> <td width="3%" align="left">$</td> <td width="29%" align="right">90,339</td></tr> <tr valign="bottom"><td width="65%" align="left">Additions for acquisitions</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="29%" align="right">2,751</td></tr> <tr valign="bottom"><td width="65%" align="left">Goodwill, at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="29%" align="right">93,090</td></tr></table> </div>

<div> <table cellspacing="0" border="0"> <tr><td width="39%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">Customer</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center">Trade</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">Non-</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">and referral</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center">names and</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="12%" align="center">competition</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="center">relationships</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="center">trademarks</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="center">agreements</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="center">Total</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="39%" align="left"> </td> <td width="58%" colspan="12" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td width="39%" align="left">Gross balance at December 31, 2017</td> <td width="2%" align="left">$</td> <td width="12%" align="right">39,017</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">14,641</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">2,155</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="8%" align="right">55,813</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Accumulated amortization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(29,147</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">(8,198</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(1,872</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="right">(39,217</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="39%" align="left">Net Balance at December 31, 2017</td> <td width="2%" align="left"> </td> <td width="12%" align="right">9,870</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">6,443</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">283</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">16,596</td> <td width="2%" align="left"> </td></tr> <tr><td width="97%" colspan="13"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Gross balance at January 1, 2018</td> <td width="2%" align="left"> </td> <td width="12%" align="right">39,017</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">14,641</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">2,155</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">55,813</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Additions for acquisitions</td> <td width="2%" align="left"> </td> <td width="12%" align="right">533</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">619</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">—</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">1,152</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="39%" align="left">Accumulated amortization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(29,859</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="10%" align="right">(8,726</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="12%" align="right">(1,900</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="8%" align="right">(40,485</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="39%" align="left">Net Balance at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="12%" align="right">9,691</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="10%" align="right">6,534</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="12%" align="right">255</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="8%" align="right">16,480</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="2%" align="left"> </td></tr></table> </div>

<div> <table cellspacing="0" border="0"> <tr><td width="51%"> </td> <td width="5%"> </td> <td width="18%"> </td> <td width="5%"> </td> <td width="18%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">December 31, 2017</td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td></tr> <tr valign="bottom"><td align="left">Prepaid health insurance</td> <td align="right">$</td> <td align="right">1,393</td> <td align="right">$</td> <td align="right">2,901</td></tr> <tr valign="bottom"><td align="left">Prepaid workers' compensation and liability</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">insurance</td> <td align="right"> </td> <td align="right">837</td> <td align="left"> </td> <td align="right">1,332</td></tr> <tr valign="bottom"><td align="left">Prepaid rent</td> <td align="right"> </td> <td align="right">501</td> <td align="left"> </td> <td align="right">555</td></tr> <tr valign="bottom"><td align="left">Workers' compensation insurance receivable</td> <td align="right"> </td> <td align="right">1,219</td> <td align="left"> </td> <td align="right">543</td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,300</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">3,048</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">7,250</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">8,379</td></tr></table> </div>

<div> <div align="left"> <table cellspacing="0" border="0"> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="3%" align="left"> </td> <td width="21%" align="center">Total</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="3%" align="left"> </td> <td width="21%" align="center">(Amounts in</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="21%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="21%" align="right">2,751</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="21%" align="right">1,152</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="21%" align="right">524</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="21%" align="right">32</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Property and equipment</td> <td width="3%" align="left"> </td> <td width="21%" align="right">18</td> <td width="5%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Accrued liabilities</td> <td width="3%" align="left"> </td> <td width="21%" align="right">(242</td> <td width="5%" align="left">)</td></tr> <tr valign="bottom"><td width="69%" align="left">Accounts payable</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="21%" align="right">(105</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="5%" align="left">)</td></tr> <tr valign="bottom"><td width="69%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="21%" align="right">4,130</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="5%" align="left"> </td></tr></table></div> </div>

<div> <div align="left"> <table cellspacing="0" border="0"> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">Total</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">(Amounts in</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="19%" align="right">16,754</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">5,324</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="19%" align="right">995</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Cash</td> <td width="3%" align="left"> </td> <td width="19%" align="right">205</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">41</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accrued liabilities</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="right">(695</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">22,624</td></tr></table></div> </div>

<div> <div align="left"> <table cellspacing="0" border="0"> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">Total</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="center">(Amounts in</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="center">Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Goodwill</td> <td width="3%" align="left">$</td> <td width="19%" align="right">1,103</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Identifiable intangible assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">682</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts receivable</td> <td width="3%" align="left"> </td> <td width="19%" align="right">240</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Cash</td> <td width="3%" align="left"> </td> <td width="19%" align="right">321</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Other assets</td> <td width="3%" align="left"> </td> <td width="19%" align="right">10</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="72%" align="left">Accrued liabilities</td> <td width="3%" align="left"> </td> <td width="19%" align="right">(86</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Accounts payable</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="19%" align="right">(14</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="72%" align="left">Total purchase price allocation</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="3%" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" width="19%" align="right">2,256</td></tr></table></div> </div>

<div> <div align="left"> <table cellspacing="0" border="0"> <tr><td width="42%" align="center"> </td> <td width="14%" align="center"> </td> <td width="15%" align="center"> </td> <td width="3%" align="center"> </td> <td width="6%" align="center"> </td> <td width="13%" align="center"> </td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td align="center">Employee</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td align="center">Termination</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Restructuring</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Costs</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">and Other</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td align="center"> </td> <td colspan="4" align="center">(Amounts in Thousands)</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance at December 31, 2017</td> <td align="left">$</td> <td align="right">562</td> <td align="left"> </td> <td align="center">$</td> <td align="right">1,077</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="left"> </td> <td align="right">181</td> <td align="left"> </td> <td align="left"> </td> <td align="right">323</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Utilization</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(237</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">(345</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance at March 31, 2018</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">506</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="center">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">1,055</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left"> </td></tr></table></div>   </div>

<div> <div class="MetaData" align="left"> <table cellspacing="0" border="0"> <tr><td width="38%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="13%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="10%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="6" align="center">For the Three Months Ended March 31,</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">2018</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" colspan="2" align="center">2017</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center"> </td> <td style="text-indent: 5px;" align="center">% of Net</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">% of Net</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center">Amount</td> <td align="center">Service</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Amount</td> <td align="center">Service</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid; text-indent: 5px;" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">(in Thousands)</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="center">Revenues</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">State, local and other governmental programs</td> <td align="left">$</td> <td align="right">67,300</td> <td align="right">61.5</td> <td align="left">%</td> <td align="left">$</td> <td align="right">65,943</td> <td align="right">64.9</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Managed care organizations</td> <td align="left"> </td> <td align="right">37,830</td> <td align="right">34.6</td> <td align="left"> </td> <td align="left"> </td> <td align="right">32,825</td> <td align="right">32.3</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Private pay</td> <td align="left"> </td> <td align="right">3,755</td> <td align="right">3.4</td> <td align="left"> </td> <td align="left"> </td> <td align="right">2,155</td> <td align="right">2.1</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Commercial insurance</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">563</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.5</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">683</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="right">0.7</td> <td style="border-bottom: rgb(0,0,0) 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Total net service revenues</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">109,448</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">$</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">101,606</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="right">100.0</td> <td style="border-bottom: rgb(0,0,0) 3px double;" align="left">%</td></tr></table></div> </div>

427000

859000

<div> <div class="MetaData"> <div> Stock-based Compensation      The Company currently has one stock incentive plan, the 2017 Omnibus Incentive Plan (the "2017 Plan"), under which new grants of stock-based employee compensation may be made. In addition, the Company has outstanding awards under its 2009 Stock Incentive Plan, as amended and restated. The Company accounts for stock-based compensation in accordance with ASC Topic 718, "Stock Compensation." Under the 2017 Plan, compensation expense is recognized on a straight-line basis over the vesting period of the equity awards based on the grant date fair value of the options and restricted stock awards. The Company uses the Black-Scholes Option Pricing Model to value the Company's options. The determination of the fair value of stock-based payments utilizing the Black-Scholes Model is affected by the Company's stock price and a number of assumptions, including expected volatility, risk-free interest rate, expected term, and expected dividends yield. Stock-based compensation expense was $0.9 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.</div></div> </div>

11632000

11691000

<div> ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Summary of Significant Accounting Policies <div class="MetaData"> Basis of Presentation and Description of Business      The Unaudited Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation ("Holdings") and its subsidiaries (together with Holdings, the "Company," "we," "us," or "our"). The Company operates as one reportable business segment and is a provider of comprehensive personal care services, which are provided principally in the home. The Company's personal care services provide assistance with activities of daily living. The Company's consumers are primarily persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Company's payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. As of March 31, 2018, the Company provided personal care services to over 34,000 consumers in 23 states through 115 offices.</div>   <div class="MetaData"> Principles of Consolidation       All intercompany balances and transactions have been eliminated in consolidation.      The Company used the cost method to account for its investments in joint ventures in which it owned 10% equity interests. The Company sold such investments on October 1, 2017 (see Note 2).</div>   <div class="MetaData"> <div class="MetaData"> Revenue Recognition      On January 1, 2018, the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standard Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC 606") which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted the standard using the modified retrospective approach and did not record a cumulative catch-up adjustment as the timing and measurement of revenue for the Company's customers is similar to its prior revenue recognition model. However, the majority of what historically was classified as provision for doubtful accounts expense under operating expenses is now treated as an implicit price concession factored into net service revenues.      The Company's net service revenue is generated from providing services directly to consumers under contracts with federal, state and local governmental agencies, managed care organizations, commercial insurers and private consumers. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a customer relationship and set the broad range of terms for services to be performed at a stated rate. However, the contracts do not give rise to rights and obligations until an order is placed with the Company. When an order is placed, it creates the performance obligation to provide a defined quantity of service hours, or authorized hours, per client. The Company satisfies its performance obligations over time, given that consumers simultaneously receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to consideration from customers commensurate with the value provided to customers from the performance completed over a given invoice period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations and recognizes patient service revenue in the amount to which the Company has a right to invoice.</div></div>   <div class="MetaData"> <div> Allowance for Doubtful Accounts      In 2017, the Company established its allowance for doubtful accounts to the extent it was probable that a portion or all of a particular account will not be collected. The Company established its provision for doubtful accounts primarily by reviewing the creditworthiness of significant customers and through evaluations over the collectability of the receivables. An allowance for doubtful accounts was maintained at a level that the Company's management believed was sufficient to cover potential losses.      In 2018, subsequent adjustments that are determined to be the result of an adverse change in the payor's ability to pay are recognized as bad debt expense due to the adoption of ASC 606-10. The Company recorded $2.0 million as a reduction to revenue that would have been recorded as bad debt expense over the three months ended March 31, 2017.</div></div>   <div class="MetaData"> Property and Equipment      Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets by use of the straight-line method. Maintenance and repairs are charged to expense as incurred. The estimated useful lives of the property and equipment are as follows: <div align="left"> <table cellspacing="0" border="0"> <tr><td width="39%"> </td> <td width="60%"> </td></tr> <tr valign="bottom"><td align="left">Computer equipment</td> <td align="right">3 – 5 years</td></tr> <tr valign="bottom"><td align="left">Furniture and equipment</td> <td align="right">5 – 7 years</td></tr> <tr valign="bottom"><td align="left">Transportation equipment</td> <td align="right">5 years</td></tr> <tr valign="bottom"><td align="left">Computer software</td> <td align="right">5 – 10 years</td></tr> <tr valign="bottom"><td align="left">Leasehold improvements</td> <td align="right">Lesser of useful life or lease term, unless probability of lease renewal is likely</td></tr></table></div></div> <div align="left"> </div> <div class="MetaData"> Goodwill      The Company's carrying value of goodwill is the excess of the purchase price over the fair value of the net assets acquired from various acquisitions including the acquisition of Addus HealthCare, Inc. ("Addus HealthCare"). In accordance with ASC Topic 350, "Goodwill and Other Intangible Assets," goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occurred. The Company may use a qualitative test, known as "Step 0," or a two-step quantitative method to determine whether impairment has occurred. In Step 0, the Company can elect to perform an optional qualitative analysis and based on the results skip the two-step analysis. In 2017, the Company elected to implement Step 0 and was not required to conduct the remaining two-step analysis. The results of the Company's Step 0 assessments indicated that it was more likely than not that the fair value of its reporting unit exceeded its carrying value and therefore the Company concluded that there were no impairments for the year ended December 31, 2017. No impairment charges were recorded for the three months ended March 31, 2018 or 2017.</div>       <div class="MetaData"> Intangible Assets <div>      The Company's identifiable intangible assets consist of customer and referral relationships, trade names, trademarks and non-competition agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years.      Intangible assets with finite lives are amortized using the estimated economic benefit method over the useful life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company would recognize an impairment loss when the estimated future non-discounted cash flows associated with the intangible asset is less than the carrying value. An impairment charge would then be recorded for the excess of the carrying value over the fair value. The Company estimates the fair value of these intangible assets using the income approach. No impairment charge was recorded for the three months ended March 31, 2018 and 2017.      The income approach, which the Company uses to estimate the fair value of its intangible assets (other than goodwill), is dependent on a number of factors including estimates of future market growth and trends, forecasted revenue and costs, expected periods over which the assets will be utilized, appropriate discount rates and other variables. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but which are unpredictable and inherently uncertain. Actual future results may differ from those estimates.</div></div>     <div class="MetaData"> Debt Issuance Costs      The Company amortizes debt issuance costs on a straight-line method over the term of the related debt. This method approximates the effective interest method. The Company has classified the debt issuance costs as current portion of long-term debt or long-term debt, less current portion as of March 31, 2018 and December 31, 2017.</div>   <div class="MetaData"> Workers' Compensation Program      The Company's workers' compensation insurance program has a $0.4 million deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The Company monitors its claims quarterly and adjusts its reserves accordingly. These costs are recorded primarily as the cost of services on the Unaudited Condensed Consolidated Statements of Income. As of March 31, 2018 and December 31, 2017, the Company recorded $13.6 million and $12.6 million, respectively, in accrued workers' compensation insurance. The accrued workers' compensation insurance is included in accrued expenses on the Company's Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, the Company recorded $1.2 million and $0.5 million, respectively, in workers' compensation insurance recovery receivables. The workers' compensation insurance recovery receivable is included in prepaid expenses and other current assets on the Company's Unaudited Condensed Consolidated Balance Sheets.</div>   <div class="MetaData"> <div class="MetaData"> Interest Income      Illinois law entitles designated service program providers to receive a prompt payment interest penalty based on qualifying services approved for payment that remain unpaid after a designated period of time. The Company accounted for the interest income in accordance with ASC 606. The amount and intent of the State of Illinois to provide payment was not certain, as such, the interest income was recognized when the State of Illinois approved a prompt payment interest penalty during the three months ended March 31, 2018, removing the constraint related to the amount and intent to pay the prompt payment interest. For the three months ended March 31, 2018, the Company received $2.3 million in prompt payment interest and reported it in its Unaudited Condensed Consolidated Statements of Income as interest income. While the Company may be owed additional prompt payment interest, the amount, timing, and intent to provide receipt of such payments remains uncertain, and the Company will continue to recognize prompt payment interest income upon satisfaction of these constraints.</div></div>   <div class="MetaData"> Interest Expense      The Company's interest expense consists of interest and unused credit line fees on its credit facilities, interest on its capital lease obligations, and amortization and write-off of debt issuance costs, which is reported in the statement of income when incurred.</div>   <div class="MetaData"> Other Income      Other income consisted of income distributions received from investments in joint ventures. The Company accounted for this income in accordance with ASC Topic 325, "Investments—Other." The Company recognized the net accumulated earnings only to the extent distributed by the joint ventures on the date received. The Company subsequently sold these equity investments on October 1, 2017 (see Note 2).</div> <div class="MetaData"> <div> Income Tax Expense</div>      The Company accounts for income taxes under the provisions of ASC Topic 740, "Income Taxes." The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in its financial statements or tax returns. Deferred taxes, resulting from differences between the financial and tax basis of the Company's assets and liabilities, are also adjusted for changes in tax rates and tax laws when changes are enacted. ASC Topic 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC Topic 740 also prescribes a recognition threshold and measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. In addition, ASC Topic 740 provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions.</div><a name="page_11"> </a> <div class="MetaData"> <div> Stock-based Compensation      The Company currently has one stock incentive plan, the 2017 Omnibus Incentive Plan (the "2017 Plan"), under which new grants of stock-based employee compensation may be made. In addition, the Company has outstanding awards under its 2009 Stock Incentive Plan, as amended and restated. The Company accounts for stock-based compensation in accordance with ASC Topic 718, "Stock Compensation." Under the 2017 Plan, compensation expense is recognized on a straight-line basis over the vesting period of the equity awards based on the grant date fair value of the options and restricted stock awards. The Company uses the Black-Scholes Option Pricing Model to value the Company's options. The determination of the fair value of stock-based payments utilizing the Black-Scholes Model is affected by the Company's stock price and a number of assumptions, including expected volatility, risk-free interest rate, expected term, and expected dividends yield. Stock-based compensation expense was $0.9 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.</div></div>   <div class="MetaData"> Diluted Net Income Per Common Share      Diluted net income per common share, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The Company's outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards.      Included in the Company's calculation of diluted earnings per share for the three months ended March 31, 2018 were approximately 746,000 stock options outstanding, of which approximately 129,000 were dilutive. In addition, there were approximately 166,000 restricted stock awards outstanding 65,000 of which were dilutive for the three months ended March 31, 2018.      Included in the Company's calculation of diluted earnings per share for the three months ended March 31, 2017 were approximately 470,000 stock options outstanding, of which approximately 96,000 were dilutive. In addition, there were approximately 143,000 restricted stock awards outstanding 50,000 of which were dilutive for the three months ended March 31, 2017.</div>   <div class="MetaData"> Estimates      The financial statements are prepared by management in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") and include estimated amounts and certain disclosures based on assumptions about future events. The Company's critical accounting estimates include the following areas: the implicit price concessions factored into net service revenues, allowance for doubtful accounts, reserve for self-insurance claims, accounting for stock-based compensation, accounting for income taxes, business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from those estimates.</div>   <div class="MetaData"> Fair Value Measurements      The Company's financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported on the Company's Unaudited Condensed Consolidated Balance Sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying value of the Company's long-term debt with variable interest rates approximates fair value based on instruments with similar terms using level 2 inputs as defined under ASC Topic 820 "Fair Value Measurement."      The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill, if required, and indefinite-lived intangible assets and also when determining the fair value of contingent consideration, if applicable. To determine the fair value in these situations, the Company uses Level 3 inputs, under ASC Topic 820 and defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions, such as discounted cash flows, or if available, what a market participant would pay on the measurement date. The Company utilizes the income approach to estimate the fair value of its intangible assets derived from acquisitions.</div>   <div class="MetaData"> Going Concern      In connection with the preparation of the financial statements for the three months ended March 31, 2018 and 2017, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity's ability to continue as a going concern within one year after the date of the issuance, or the date of availability, of the financial statements to be issued. The evaluation concluded that there did not appear to be evidence of substantial doubt of the entity's ability to continue as a going concern.</div>  <a name="page_12"> </a> <div class="MetaData"> Accounting Pronouncements      In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Upon initial evaluation, the Company believes that the new standard will have a material impact on its consolidated balance sheets but it will not affect its liquidity. It has been determined that the Company will need to secure new software to account for the change in accounting for leases and is currently reviewing the software options available.      In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income are to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective as of January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13.      In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current Step 1). ASU 2017-04 is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company is currently evaluating the provisions of ASU 2017-04 to determine how its goodwill impairment testing will be impacted and whether it may elect to adopt ASU 2017-04 prior to the stated effective date.      In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This standard amends and adjusts how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted the standard on a retrospective basis on January 1, 2018. ASU 2016-15 did not have an impact on our Condensed Consolidated Statements of Cash Flows.</div>   <div class="MetaData"> Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation including the reporting of other long-term liabilities as a separate line item on the Unaudited Condensed Consolidated Balance Sheets and the reporting of the provision for doubtful accounts as a separate line item in the Unaudited Condensed Consolidated Statements of Income. These reclassifications have no effect on the reported net income.</div>   </div>

175080000

95963000

12000

79105000

180821000

96846000

12000

83963000

60000

2000

1000

24000

<div> <div> 12. Subsequent Events      Effective February 27, 2018, the Company entered into a definitive securities purchase agreement to acquire Ambercare Corporation ("Ambercare") for approximately $40.0 million (net of excess cash). The Company completed this acquisition on May 1, 2018. The Company funded this acquisition through the delayed draw term loan portion of its new credit facility.      On April 1, 2018, the Company completed an acquisition of certain assets of Arcadia Home Care & Staffing ("Arcadia") for approximately $18.5 million. Arcadia provides home care services to approximately 2,300 consumers through 26 offices in 10 states. The Company funded this acquisition through the delayed draw term loan portion of its new credit facility.</div> </div>

96000

50000

129000

65000

11581000

11696000

11434000

11502000

143000

166000

12574000

13599000

The Company provides health insurance coverage to qualified union employees providing personal care services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Company's insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State of Illinois. Amounts due of $1.2 million and $2.3 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2018 and December 31, 2017, respectively. Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. Included in the balance sheet as $631,000 of the current portion of long-term debt and $3,000 of the long- term debt, less current portion. Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016.