Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home
care services, today announced its financial results for the fourth
quarter and year ended December 31, 2024.
Fourth Quarter 2024 Highlights:
- Net Service Revenues Grow 7.5% to $297.1 Million
- Net Income of $19.5 Million, or $1.07 per Diluted Share
- Adjusted Net Income per Diluted Share Increases 4.6%
year-over-year to $1.38
- Adjusted EBITDA Increases 10.3% year-over-year to $37.8
Million
- Cash Flow from Operations of $10.4 Million
- Completed acquisition of Gentiva personal care operations
Overview
Net service revenues were $297.1 million for the fourth quarter
of 2024, a 7.5% increase compared with $276.4 million for the
fourth quarter of 2023. Net income was $19.5 million for the fourth
quarter of 2024, compared with $19.6 million for the fourth quarter
of 2023, while net income per diluted share was $1.07 compared with
$1.20 for the same period a year ago. Adjusted EBITDA increased
10.3% to $37.8 million for the fourth quarter of 2024 from $34.3
million for the fourth quarter of 2023. Adjusted net income was
$25.2 million for the fourth quarter of 2024 compared with $21.6
million for the prior-year period, while adjusted net income per
diluted share was $1.38 compared with $1.32 for the fourth quarter
of 2023. Adjusted net income per diluted share for the fourth
quarter of 2024 excludes gain on sale of assets of ($0.15), impact
of lease impairment of $0.20, impact of retroactive New York rate
increase of ($0.14), acquisition expenses of $0.29 and stock-based
compensation expense of $0.11 (See the end of press release for a
reconciliation of all non-GAAP and GAAP financial measures.)
For the full year 2024, net service revenues increased 9.1% to
$1.15 billion from $1.06 billion for the prior-year period. Net
income was $73.6 million for 2024 compared with $62.5 million for
2023, and net income per diluted share was $4.23 compared with
$3.83 per diluted share. Adjusted EBITDA increased 15.9% to $140.3
million for 2024 from $121.0 million for 2023. Adjusted net income
was $91.4 million for 2024 compared with $74.8 million for 2023,
while adjusted net income per diluted share was $5.26 compared with
$4.58 for the prior-year period.
Commenting on the results, Dirk Allison, Chairman and Chief
Executive Officer, said, “Our fourth quarter financial and
operating performance marked a strong finish to another successful
year for Addus. We achieved top-line revenue growth of 7.5%, and
adjusted EBITDA was 10.3% higher for the fourth quarter of 2024
compared with the same period last year. For the year, revenues
were up 9.1% to reach $1.15 billion, a new annual high for Addus.
These results reflect robust demand for our home-based care
services and our ability to meet this demand with our proven
operating model across the care continuum.
“Our personal care services have been the key driver of our
business, accounting for 74.1% of our revenue for the fourth
quarter. We achieved a 5.8% organic revenue growth rate in personal
care over the fourth quarter last year, and our annual organic
growth was 7.7%, reflecting both higher volumes and favorable
reimbursement trends. Results for the fourth quarter included one
month from our acquisition of the personal care operations of
Gentiva, which closed on December 2, 2024. The consolidated
financial results for the fourth quarter excluded the Company’s
operations in New York, in connection with our previously announced
agreement with HCS-Girling to divest the Company’s New York
personal care operations and exit the state.
“Our hospice services accounted for 19.9% of our business with
solid organic revenue growth of 7.8% over the fourth quarter last
year. We are pleased with the steady improvement in average daily
census, patient days and revenue per patient day compared with the
same period last year. We implemented changes to our sales
leadership late in the third quarter which we believe will result
in continued improvement in admission volumes. Our home health
services, which is our smallest business segment, accounted for
6.0% of total revenue for the fourth quarter,” added Allison.
Cash and Liquidity
As of December 31, 2024, the Company had cash of $98.9 million
and bank debt of $223.0 million, with capacity and availability
under its revolving credit facility of $577.7 million and $346.6
million, respectively. Net cash provided by operating activities
was $10.4 million for the fourth quarter of 2024, and $116.4
million for the full year 2024, inclusive of a net $2.4 million in
ARPA funds utilization and $5.5 million in ARPA funds proceeds,
respectively.
Allison continued, “We are fortunate to have the financial
flexibility to invest in our business and pursue our strategic
growth initiatives. Acquisitions continue to be an important part
of our growth strategy, allowing us to expand our coverage
capabilities and build scale in strategic markets. The Gentiva
personal care operations represent the largest acquisition in our
history, adding approximately $280 million in annualized revenues
and significantly expanding our market coverage in seven states,
including Arizona, Arkansas, California, and Tennessee, as well as
Texas, Missouri, and North Carolina, which are new personal care
markets for Addus. Notably, we are now the largest provider of
personal care services in the state of Texas and the state of
Arkansas. Our respective teams have done an exceptional job in
planning for the operational changes associated with this
acquisition, and we are pleased that the integration process is on
schedule as we continue to provide quality home care services to
clients of those operations.
“We are optimistic that we will see additional acquisition
opportunities in 2025. We will maintain our disciplined approach to
acquisitions by identifying prospects that are a good strategic fit
for Addus, and our primary focus will be on markets where we can
leverage our personal care network and add clinical services. We
believe having three levels of care provides a distinct competitive
advantage for Addus in our markets and benefits the clients we
serve and strengthens our ability to negotiate more effectively
with payers.
“We are extremely proud of the important work we are doing and
our ability to execute our strategy with positive results. Addus
has a strong value proposition that meets the growing demand for
home-based care. We have significantly enhanced our market position
in 2024 through both organic growth and strategic acquisitions, and
we are well positioned for continued growth. We are especially
grateful for our dedicated team of caregivers, who support our
mission and continue to provide outstanding care and support for a
growing number of patients and clients in the home. Working
together, we look forward to the opportunities ahead for Addus in
2025 as we extend our market reach and deliver greater value to our
shareholders,” said Allison.
Non-GAAP Financial Measures
The information provided in this release includes adjusted net
income, adjusted EBITDA, adjusted net income per diluted share and
adjusted net service revenue, which are non-GAAP financial
measures. The Company defines adjusted net income as net income
before acquisition expense, stock-based compensation expense,
restructure and other non-recurring costs, gain or loss on the sale
of assets, impairment of operating lease assets, retroactive rate
increases from New York and the retroactive impact from collective
bargaining negotiations. The Company defines adjusted EBITDA as
earnings before net interest expense, taxes, depreciation,
amortization, acquisition expense, stock-based compensation
expense, restructure and other non-recurring costs, gain or loss on
the sale of assets, impairment of operating lease assets,
retroactive rate increases from New York and the retroactive impact
from collective bargaining negotiations. The Company defines
adjusted net income per diluted share as net income per share,
adjusted for acquisition expense, stock-based compensation expense,
restructure and other non-recurring costs, gain or loss on the sale
of assets, impairment of operating lease assets, retroactive rate
increases from New York and the retroactive impact from collective
bargaining negotiations. The Company defines adjusted net service
revenues as revenue adjusted for the closure of certain sites. The
Company has provided, in the financial statement tables included in
this press release, a reconciliation of adjusted net income to net
income, a reconciliation of adjusted EBITDA to net income, a
reconciliation of adjusted diluted net income per share to net
income per share, and a reconciliation of adjusted net service
revenues to net service revenues, in each case, the most directly
comparable GAAP measure. Management believes that adjusted net
income, adjusted EBITDA, adjusted diluted net income per share, and
adjusted net service revenues are useful to investors, management
and others in evaluating the Company’s operating performance, to
provide investors with insight and consistency in the Company’s
financial reporting and to present a basis for comparison of the
Company’s business operations among periods, and to facilitate
comparison with the results of the Company’s peers.
Conference Call
Addus will host a conference call on Tuesday, February 25, 2025,
at 9:00 a.m. Eastern time. To access the live call, dial (833)
629-0620 (international dial-in number is (412) 317-1805) and ask
to join the Addus HomeCare earnings call. A telephonic replay of
the conference call will be available through midnight on March 4,
2025, by dialing (877) 344-7529 (international dial-in number is
(412) 317-0088) and entering pass code 3644763.
A live broadcast of Addus HomeCare’s conference call will be
available under the Investor Relations section of the Company’s
website: www.addus.com. An online replay will also be available on
the Company’s website for one month, beginning approximately two
hours following the conclusion of the live broadcast.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by words such as “preliminary,”
“continue,” “expect,” and similar expressions. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Forward-looking statements involve a number of risks
and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including discretionary determinations by government
officials, the consummation and integration of acquisitions,
transition to managed care providers, our ability to successfully
execute our growth strategy, unexpected increases in SG&A and
other expenses, expected benefits and unexpected costs of
acquisitions and dispositions, management plans related to
dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as
expected, changes in reimbursement, changes in government
regulations, changes in Addus HomeCare’s relationships with
referral sources, increased competition for Addus HomeCare’s
services, changes in the interpretation of government regulations,
the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates, the impact of adverse
weather, higher than anticipated costs, lower than anticipated cost
savings, estimation inaccuracies in future revenues, margins,
earnings and growth, whether any anticipated receipt of payments
will materialize, any security breaches, cyber-attacks, loss of
data or cybersecurity threats or incidents, and other risks set
forth in the Risk Factors section in Addus HomeCare’s Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
February 27, 2024, which is available at www.sec.gov. The financial information described herein and
the periods to which they relate are preliminary estimates that are
subject to change and finalization. There is no assurance that the
final amounts and adjustments will not differ materially from the
amounts described above, or that additional adjustments will not be
identified, the impact of which may be material. Addus HomeCare
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In addition, these forward-looking statements
necessarily depend upon assumptions, estimates and dates that may
be incorrect or imprecise and involve known and unknown risks,
uncertainties, and other factors. Accordingly, any forward-looking
statements included in this press release do not purport to be
predictions of future events or circumstances and may not be
realized. (Unaudited tables and notes follow).
About Addus HomeCare
Addus HomeCare is a provider of home care services that
primarily include personal care services that assist with
activities of daily living, as well as hospice and home health
services. Addus HomeCare’s consumers are primarily persons who,
without these services, are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and
disabled. Addus HomeCare’s payor clients include federal, state,
and local governmental agencies, managed care organizations,
commercial insurers, and private individuals. Addus HomeCare
currently provides home care services to approximately 62,000
consumers through 257 locations across 23 states. For more
information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(amounts and shares in
thousands, except per share data)
(Unaudited)
Income Statement Information:
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2024
2023
2024
2023
Net service revenues
$
297,144
$
276,351
$
1,154,599
$
1,058,651
Cost of service revenues
195,662
183,938
779,578
718,775
Gross profit
101,482
92,413
375,021
339,876
34.2
%
33.4
%
32.5
%
32.1
%
General and administrative expenses
71,356
60,766
258,800
234,794
Depreciation and amortization
3,214
3,677
13,530
14,126
Total operating expenses
74,570
64,443
272,330
248,920
Operating income
26,912
27,970
102,691
90,956
Total interest expense, net
698
2,616
3,338
9,630
Income before income taxes
26,214
25,354
99,353
81,326
Income tax expense
6,688
5,776
25,755
18,810
Net income
$
19,526
$
19,578
$
73,598
$
62,516
Net income per diluted share:
$
1.07
$
1.20
$
4.23
$
3.83
Weighted average number of common shares outstanding:
Diluted
18,294
16,307
17,380
16,311
Cash Flow Information:
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2024
2023
2024
2023
Net cash provided by operating activities
$
10,418
$
30,049
$
116,434
$
112,247
Net cash (used in) investing activities
(354,486
)
(5,302
)
(354,610
)
(119,236
)
Net cash provided by (used in) financing activities
220,127
(39,706
)
272,296
(8,181
)
Net change in cash
(123,941
)
(14,959
)
34,120
(15,170
)
Cash at the beginning of the period
222,852
79,750
64,791
79,961
Cash at the end of the period
$
98,911
$
64,791
$
98,911
$
64,791
ADDUS HOMECARE CORPORATION AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
December 31,
2024
2023
Assets Current assets
Cash
$
98,911
$
64,791
Accounts receivable, net
122,880
115,499
Prepaid expenses and other current assets
38,591
19,714
Total current assets
260,382
200,004
Property and equipment, net
24,703
24,011
Other assets Goodwill
970,558
662,995
Intangible assets, net
109,643
91,983
Operating lease assets
47,348
45,433
Total other assets
1,127,549
800,411
Total assets
$
1,412,634
$
1,024,426
Liabilities and stockholders'
equity Current liabilities Accounts payable
$
27,176
$
26,183
Accrued payroll
62,053
56,551
Accrued expenses
28,959
33,236
Operating lease liabilities - current portion
12,800
11,339
Government stimulus advance
11,239
5,765
Accrued workers compensation
13,644
12,043
Total current liabilities
155,871
145,117
Long-term debt, less current portion, net of debt issuance
costs
218,443
124,132
Long-term lease liability, less current portion
41,883
39,711
Deferred tax liabilities, net
25,820
8,529
Other long-term liabilities
125
243
Total long-term liabilities
286,271
172,615
Total liabilities
442,142
317,732
Total stockholders' equity
970,492
706,694
Total liabilities and stockholders' equity
$
1,412,634
$
1,024,426
ADDUS HOMECARE CORPORATION AND
SUBSIDIARIES
Net Service Revenue by
Segment
(Amounts in thousands)
(Unaudited)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2024
2023
2024
2023
Net Service Revenues by Segment Personal Care
$
220,328
$
204,491
$
856,581
$
794,718
Hospice
58,989
54,741
228,191
207,155
Home Health
17,827
17,119
69,827
56,778
Total Revenue
$
297,144
$
276,351
$
1,154,599
$
1,058,651
ADDUS HOMECARE CORPORATION AND
SUBSIDIARIES
Key Statistical and Financial
Data (Unaudited)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2024
2023
2024
2023
Personal Care States served at period
end
-
-
23
21
Locations at period end
-
-
196
156
Average billable census - same store (1, 2)
36,342
38,078
37,438
38,521
Average billable census - acquisitions (3)
14,581
-
14,581
-
Average billable census total
50,923
38,078
52,019
38,521
Billable hours (in thousands)
8,210
7,694
31,309
30,658
Average billable hours per census per month (3)
69.6
67.2
71.5
66.2
Billable hours per business day
124,397
118,366
119,498
117,915
Revenues per billable hour
$
26.40
$
26.53
$
27.21
$
25.86
Organic growth - Revenue
5.8
%
11.2
%
7.7
%
12.1
%
Hospice Locations served at period end
-
-
38
39
Admissions
3,095
3,326
12,866
12,902
Average daily census
3,472
3,381
3,461
3,415
Average discharge length of stay
97.9
97.8
94.1
94.4
Patient days
319,460
311,015
1,266,701
1,203,522
Revenue per patient day
$
185.95
$
176.01
$
181.08
$
175.43
Organic growth - Revenue
7.8
%
3.5
%
5.9
%
2.0
%
- Average daily census
2.7
%
(1.1
)%
1.3
%
0.3
%
Home Health Locations served at period end
-
-
24
24
New Admissions
4,365
4,654
18,622
16,251
Recertifications
3,249
3,214
13,047
9,030
Total Volume
7,614
7,868
31,669
25,281
Visits
99,803
104,161
422,516
344,919
Organic growth - Revenue
1.6
%
(17.8
)%
(3.1
)%
(7.1
)%
- New admissions
(6.2
)%
(10.3
)%
(3.0
)%
(9.8
)%
- Volume
(3.2
)%
(9.2
)%
(1.9
)%
(7.2
)%
Percentage of Revenues by Payor: Personal
Care State, local and other governmental programs
54.2
%
50.5
%
53.3
%
50.4
%
Managed care organizations
43.1
46.4
44.0
46.2
Private duty
2.0
1.9
1.8
2.0
Commercial
0.5
0.8
0.7
0.8
Other
0.2
%
0.4
%
0.2
%
0.6
%
Hospice Medicare
91.4
%
89.3
%
91.2
%
89.9
%
Commercial
4.9
6.3
5.1
6.0
Managed care organizations
3.5
3.7
3.3
3.4
Other
0.2
%
0.7
%
0.4
%
0.7
%
Home Health Medicare
69.2
%
68.8
%
69.5
%
72.3
%
Managed care organizations
24.2
25.5
25.2
22.2
Commercial
2.9
4.4
3.9
4.4
Other
3.7
%
1.3
%
1.4
%
1.1
%
(1) The average billable census in acquisitions of 85 and 91 for
the three and twelve months ended December 31, 2023, was
reclassified to average billable census - same stores for
comparability purposes. (2) Exited sites would have reduced same
store census for the three and twelve months ended December 31,
2023, by 1,401 and 1,446, respectively. Exited stores would have
reduced same store census for the twelve months ended December 31,
2024, by 964. (3) The average billable census and average billable
hours per census per month for the three and twelve months ended
December 31, 2024, were prorated for the date of the acquisition.
ADDUS HOMECARE CORPORATION AND
SUBSIDIARIES
Reconciliation of Non-GAAP
Financial Measures
(Amounts in thousands, except
per share data)
(Unaudited) (1)
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of Adjusted EBITDA to Net Income: (1)
Net income
$
19,526
$
19,578
$
73,598
$
62,516
Interest expense, net
698
2,616
3,338
9,630
(Gain) Loss on sale of assets
(3,725
)
3
(3,738
)
(2
)
Income tax expense
6,688
5,776
25,755
18,810
Depreciation and amortization
3,214
3,677
13,530
14,126
Impact of lease impairment
4,968
-
4,968
-
Impact of retroactive New York rate increase
(3,487
)
-
(3,004
)
(868
)
Impact of retroactive collective bargaining negotiations
-
(1,338
)
-
-
Acquisition expenses
7,031
1,428
14,678
6,220
Stock-based compensation expense
2,858
2,488
11,165
10,319
Restructure and other non-recurring costs
-
27
-
269
Adjusted EBITDA
$
37,771
$
34,255
$
140,290
$
121,020
Reconciliation of Adjusted Net Income to Net
Income: (2) Net income
$
19,526
$
19,578
$
73,598
$
62,516
(Gain) Loss on sale of assets
(3,725
)
3
(3,738
)
(2
)
Impact of lease impairment
4,968
-
4,968
-
Impact of retroactive New York rate increase
(3,487
)
-
(3,004
)
(868
)
Impact of retroactive collective bargaining negotiations
-
(1,338
)
-
-
Acquisition expenses
7,031
1,428
14,678
6,219
Stock-based compensation expense
2,858
2,488
11,165
10,319
Restructure and other non-recurring costs
-
27
-
269
Tax Effect
(1,958
)
(594
)
(6,240
)
(3,685
)
Adjusted Net Income
$
25,213
$
21,592
$
91,427
$
74,768
Reconciliation of Net Income per Diluted Share to
Adjusted Net Income per Diluted Share: (3) Net income
per diluted share
$
1.07
$
1.20
$
4.23
$
3.83
(Gain) Loss on the sale of assets per diluted share
(0.15
)
-
(0.16
)
-
Impact of lease impairment per diluted share
0.20
-
0.21
-
Impact of retroactive New York rate increase per diluted share
(0.14
)
-
(0.13
)
(0.04
)
Impact of retroactive collective bargaining negotiations
-
(0.07
)
-
-
Acquisition expenses per diluted share
0.29
0.07
0.63
0.29
Restructure and other non-recurring costs per diluted share
-
-
-
0.01
Stock-based compensation expense per diluted share
0.11
0.12
0.48
0.49
Adjusted net income per diluted share
$
1.38
$
1.32
$
5.26
$
4.58
Reconciliation of Net Service Revenues to Adjusted Net
Service Revenues: (4) Net service revenues
$
297,144
$
276,351
$
1,154,599
$
1,058,651
Revenues associated with the closure of certain sites
(3,447
)
(23,158
)
(71,230
)
(92,877
)
Adjusted net service revenues
$
293,697
$
253,193
$
1,083,369
$
965,774
Footnotes: (1) We define Adjusted EBITDA as earnings before
net interest expense, other non-operating income, taxes,
depreciation, amortization, acquisition expense, stock-based
compensation expense, restructure and other non-recurring costs,
gain or loss on the sale of assets, impairment of operating lease
assets, retroactive rate increases from New York and the
retroactive impact from collective bargaining negotiations.
Adjusted EBITDA is a performance measure used by management that is
not calculated in accordance with generally accepted accounting
principles in the United States (GAAP). It should not be considered
in isolation or as a substitute for net income, operating income or
any other measure of financial performance calculated in accordance
with GAAP. Additionally, our calculation of Adjusted EBITDA may not
be comparable to similarly titled measures reported by other
companies. We believe that Adjusted EBITDA is useful to investors,
management and others in evaluating the Company's operating
performance, to provide investors with insight and consistency in
the Company's financial reporting and to present a basis for
comparison of the Company's business among periods, and to
facilitate comparison with results of the Company's peers.
Additionally, we believe that Adjusted EBITDA is a measure widely
used by securities analysts, investors and others to evaluate the
financial performance of other public companies. The financial
results presented in accordance with U.S GAAP and a reconciliation
of this non-GAAP measure included within our Annual Report on Form
10-K should be carefully evaluated. (2) We define Adjusted Net
Income as net income before acquisition expenses, stock-based
compensation expense, restructure and other non-recurring costs,
gain on the sale of assets, lease impairment, retroactive
collective bargaining negotiations and retroactive rate increases
from New York. Adjusted Net Income is a performance measure used by
management that is not calculated in accordance with generally
accepted accounting principles in the United States (GAAP). It
should not be considered in isolation or as a substitute for net
income, operating income or any other measure of financial
performance calculated in accordance with GAAP. (3) We define
Adjusted diluted earnings per share as earnings per share, adjusted
for acquisition expenses, stock-based compensation expense and
restructure and other non-recurring costs, gain on the sale of
assets, lease impairment, retroactive collective bargaining
negotiations and retroactive rate increases from New York. Adjusted
diluted earnings per share is a performance measure used by
management that is not calculated in accordance with generally
accepted accounting principles in the United States (GAAP). It
should not be considered in isolation or as a substitute for net
income, operating income or any other measure of financial
performance calculated in accordance with GAAP. (4) We define
Adjusted net service revenues as revenue adjusted for the closure
of certain sites. Adjusted net service revenues is a performance
measure used by management that is not calculated in accordance
with generally accepted accounting principles in the United States
(GAAP). It should not be considered in isolation or as a substitute
for net income, operating income or any other measure of financial
performance calculated in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224064978/en/
Brian W. Poff Executive Vice President, Chief Financial Officer
Addus HomeCare Corporation (469) 535-8200
investorrelations@addus.com
Dru Anderson FINN Partners (615) 324-7346
dru.anderson@finnpartners.com
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