Addus HomeCare Announces Fourth Quarter 2014 Results
For the fourth quarter, net service revenues grew 18.3% to
Net service revenues for 2014 increased 17.7% to
"We had a strong fourth quarter to complete a successful 2014 for Addus," said
"Addus remains fully engaged in positioning itself to benefit from the ongoing transition to MCOs in many states across the country. Our initiatives include our marketing and sales efforts with existing and potential MCO customers and our focused acquisition activities. We also continue our investments in our technology infrastructure to transform a historically paper-based industry and connect our consumers to the healthcare industry electronically.
"In addition, we strengthened the depth of our executive management team during the fourth quarter by naming
The Company's 18.3% growth in net revenue for the quarter was driven by an increase in same-store sales of 7.4% and in revenues from acquisitions of 10.9%. These increases reflected a 14.7% rise in average billable census for the quarter. In addition, average billable hours per census per month grew 2.5% for the quarter, and revenue per billable hour increased 0.6%.
Profit margins also increased for the quarter, with gross profit margin up 150 basis points as a percentage of net revenue. These improvements, combined with revenue growth, produced a 46.8% increase in adjusted EBITDA to
At the end of 2014, Addus had
The Company believes the material weaknesses in internal controls that existed on
Non-GAAP Financial Measures
The information provided in this release includes adjusted diluted earnings per share from continuing operations and adjusted EBITDA, which are non-GAAP financial measures. The Company defines adjusted diluted earnings per share from continuing operations as diluted earnings per share from continuing operations, adjusted for M&A expenses and tax benefit from worker opportunity tax credits. The Company defines adjusted EBITDA as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, M&A expense and stock-based compensation expense. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted diluted earnings per share from continuing operations to diluted earnings per share from continuing operations, and a reconciliation of adjusted EBITDA to net income, in each case, the most directly comparable GAAP measure. Management believes that adjusted diluted earnings per share from continuing operations and adjusted EBITDA 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 to discuss its results for the fourth quarter today beginning at
A live broadcast of the conference call will be available under the Investor Relations section of the Company's website: www.addus.com. An online replay of the conference call will also be available on the Company's website for one month, beginning approximately three 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 "continue," "expect," and similar expressions. 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 the anticipated transition to managed care providers, expected benefits and 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
About Addus
Addus is a comprehensive provider of home and community-based services that primarily are social in nature, provided in the home and focused on the dual eligible population. Addus' services include personal care and assistance with activities of daily living, and adult day care. Addus' consumers are individuals who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus' payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. For more information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Income and Cash Flow Information (Amounts and shares in thousands, except per share data) |
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Income Statement Information: |
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||
2014 |
2013 |
2014 |
2013 |
||||
Net service revenues |
$ 82,636 |
$ 69,882 |
$ 312,942 |
$ 265,941 |
|||
Cost of service revenues |
59,989 |
51,780 |
229,207 |
198,202 |
|||
Gross profit |
22,647 |
18,102 |
83,735 |
67,739 |
|||
27.4% |
25.9% |
26.8% |
25.5% |
||||
General and administrative expenses |
16,259 |
14,092 |
61,834 |
50,118 |
|||
Depreciation and amortization |
1,146 |
534 |
3,830 |
2,160 |
|||
Total operating expenses |
17,405 |
14,626 |
65,664 |
52,278 |
|||
Operating income from continuing operations |
5,242 |
3,476 |
18,071 |
15,461 |
|||
Total interest expense (income), net |
196 |
160 |
680 |
486 |
|||
Income from continuing operations before taxes |
5,046 |
3,316 |
17,391 |
14,975 |
|||
Income tax expense |
1,403 |
192 |
5,428 |
3,812 |
|||
Net income from continuing operations |
3,643 |
3,124 |
11,963 |
11,163 |
|||
Discontinued operations: |
|||||||
Income (expense) from home health business, net of tax |
280 |
(90) |
280 |
(980) |
|||
(Loss) gain on sale of home health business, net of tax |
- |
(2,149) |
- |
8,962 |
|||
Net income |
$ 3,923 |
$ 885 |
$ 12,243 |
$ 19,145 |
|||
Net income per share: |
|||||||
Basic |
|||||||
Continuing operations |
$ 0.33 |
$ 0.29 |
$ 1.10 |
$ 1.03 |
|||
Discontinued operations |
0.03 |
(0.21) |
0.02 |
0.74 |
|||
Basic income per share |
$ 0.36 |
$ 0.08 |
$ 1.12 |
$ 1.77 |
|||
Diluted |
|||||||
Continuing operations |
$ 0.33 |
$ 0.28 |
$ 1.08 |
$ 1.01 |
|||
Discontinued operations |
0.02 |
(0.20) |
0.02 |
0.72 |
|||
Diluted income per share |
$ 0.35 |
$ 0.08 |
$ 1.10 |
$ 1.73 |
|||
Weighted average number of common shares outstanding: |
|||||||
Basic |
10,929 |
10,838 |
10,900 |
10,826 |
|||
Diluted |
11,143 |
11,154 |
11,114 |
11,075 |
|||
Cash Flow Information: |
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||
2014 |
2013 |
2014 |
2013 |
||||
Net cash (used in) provided by operating activities |
$ (562) |
$ 2,290 |
$ 7,028 |
$ 27,393 |
|||
Net cash (used in) provided by investing activities |
(484) |
(16,189) |
(13,633) |
2,893 |
|||
Net cash (used in) provided by financing activities |
285 |
- |
4,403 |
(16,458) |
|||
Net change in cash |
(761) |
(13,899) |
(2,202) |
13,828 |
|||
Cash at the beginning of the period |
14,124 |
29,464 |
15,565 |
1,737 |
|||
Cash at the end of the period |
$ 13,363 |
$ 15,565 |
$ 13,363 |
$ 15,565 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in thousands) |
|||
December 31, |
|||
2014 |
2013 |
||
Assets |
|||
Current assets |
|||
Cash |
$ 13,363 |
$ 15,565 |
|
Accounts receivable, net |
68,333 |
61,354 |
|
Prepaid expenses and other current assets |
7,168 |
6,235 |
|
Deferred tax assets |
8,508 |
8,326 |
|
Total current assets |
97,372 |
91,480 |
|
Property and equipment, net |
7,695 |
2,634 |
|
Other assets |
|||
Goodwill |
64,220 |
60,026 |
|
Intangible assets, net |
10,347 |
8,762 |
|
Investment in joint venture |
900 |
900 |
|
Other assets |
269 |
132 |
|
Total other assets |
75,736 |
69,820 |
|
Total assets |
$ 180,803 |
$ 163,934 |
|
Liabilities and stockholders' equity |
|||
Current liabilities |
|||
Accounts payable |
$ 3,951 |
$ 4,633 |
|
Current portion of capital lease obligations |
986 |
- |
|
Current portion of contingent earn-out obligation |
1,000 |
- |
|
Accrued expenses |
37,268 |
40,904 |
|
Total current liabilities |
43,205 |
45,537 |
|
Long-term liabilities |
|||
Deferred tax liabilities |
5,845 |
3,441 |
|
Capital lease obligations, less current portion |
2,677 |
- |
|
Contingent earn-out obligation, less current portion |
1,120 |
1,100 |
|
Total long-term liabilities |
9,642 |
4,541 |
|
Total liabilities |
52,847 |
50,078 |
|
Total stockholders' equity |
127,956 |
113,856 |
|
Total liabilities and stockholders' equity |
$ 180,803 |
$ 163,934 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited) |
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For the Three Months |
For the Year |
||||||
2014 |
2013 |
2014 |
2013 |
||||
General: |
|||||||
Adjusted EBITDA (in thousands) (1) |
$ 7,076 |
$ 4,821 |
$ 23,759 |
$ 18,796 |
|||
States served at period end |
22 |
21 |
|||||
Locations at period end |
129 |
121 |
|||||
Employees at period end |
18,054 |
16,585 |
|||||
Operations: |
|||||||
Average billable census - same store |
29,166 |
27,522 |
28,725 |
26,689 |
|||
Average billable census - acquisitions |
2,914 |
453 |
2,294 |
113 |
|||
Average billable census total |
32,080 |
27,975 |
31,019 |
26,802 |
|||
Billable hours (in thousands) |
4,825 |
4,104 |
18,335 |
15,621 |
|||
Average billable hours per census per month |
50.1 |
48.9 |
49.3 |
48.6 |
|||
Billable hours per business day |
75,385 |
62,175 |
71,903 |
59,850 |
|||
Revenues per billable hour |
$ 17.13 |
$ 17.03 |
$ 17.07 |
$ 17.02 |
|||
Percentage of Revenues by Payor: |
|||||||
State, local and other governmental programs |
80.3% |
93.1% |
86.4% |
93.6% |
|||
Managed Care |
15.4 |
2.1 |
9.1 |
1.0 |
|||
Private duty |
3.2 |
3.6 |
3.4 |
3.9 |
|||
Commercial |
1.1% |
1.2% |
1.1% |
1.5% |
|||
(1) We define Adjusted EBITDA as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. 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. |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP AND GAAP FINANCIAL MEASURES (Amounts in thousands, except per share data) |
|||||||
For the Three Months |
For the Year |
||||||
2014 |
2013 |
2014 |
2013 |
||||
Reconciliation of Net Income to Adjusted EBITDA: (1) |
|||||||
Net income |
$ 3,923 |
$ 885 |
$ 12,243 |
$ 19,145 |
|||
Less: (Earnings) from discontinued operations, net of tax |
(280) |
2,239 |
(280) |
(7,982) |
|||
Net income from continuing operations |
3,643 |
3,124 |
11,963 |
11,163 |
|||
Interest expense, net |
196 |
160 |
680 |
486 |
|||
Income tax expense from continuing operations |
1,403 |
192 |
5,428 |
3,812 |
|||
Depreciation and amortization |
1,146 |
534 |
3,830 |
2,160 |
|||
M&A expenses |
423 |
660 |
1,031 |
660 |
|||
Stock-based compensation expense |
265 |
151 |
827 |
515 |
|||
Adjusted EBITDA |
$ 7,076 |
$ 4,821 |
$ 23,759 |
$ 18,796 |
|||
Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (2) |
|||||||
Diluted earnings per share from continuing operations |
$ 0.33 |
$ 0.28 |
$ 1.08 |
$ 1.01 |
|||
M&A expenses |
0.03 |
0.04 |
0.06 |
0.04 |
|||
Tax benefit from worker opportunity tax credits |
- |
(0.06) |
- |
(0.05) |
|||
Adjusted diluted earnings per share from continuing operations |
$ 0.36 |
$ 0.26 |
$ 1.14 |
$ 1.00 |
|||
(1) We define Adjusted EBITDA as earnings before discontinued operations, interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. 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. |
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(2) We define Adjusted diluted earnings per share as earnings per share from continuing operations, adjusted for M&A expenses and tax benefit from worker opportunity tax credits. 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. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/addus-homecare-announces-fourth-quarter-2014-results-300046355.html
SOURCE
Dennis Meulemans, Chief Financial Officer, Addus HomeCare, (630) 296-3400, dmeulemans@addus.com; Scott Brittain, Corporate Communications, Inc., (615) 324-7308, scott.brittain@cci-ir.com