Addus HomeCare Announces Third Quarter 2015 Results
For the third quarter, net service revenues were
For the first nine months of 2015, net service revenues rose 9.4% to
Revenues and same-store revenues for the third quarter of 2015 reflected the Company's previously announced exit from certain underperforming locations during the quarter, resulting in a
The Company's results for the third quarter of 2015 were consistent with expectations for the third quarter results that Addus announced on
"We are continuing to take steps to improve our G&A cost structure and believe our HRIS system costs have peaked for the year," commented
"Looking forward, we remain fully committed to maintaining Addus' position as one of the most qualified companies to partner with MCOs to provide personal care services to their dual eligible populations. The transition by the states to MCOs is continuing, even if at an uneven pace. We believe this transition represents a substantial long-term growth opportunity for Addus given our scale, expertise, technology, quality of care and financial strength in a highly fragmented industry. We expect the transition will, over time, concentrate the dual eligible census with MCOs. As evidenced by the growth in our pipeline of potential acquisitions, we also believe the transition is accelerating industry consolidation consistent with other health care sectors."
Addus completed the third quarter with
Non-GAAP Financial Measures
The information provided in this release includes adjusted diluted earnings per share, Adjusted EBITDA and adjusted net service revenue, which are non-GAAP financial measures. The Company defines adjusted diluted earnings per share as diluted earnings per share, adjusted for M&A expenses, one-time costs associated with exited sites, tax benefit from worker opportunity tax credits and incremental costs for Sarbanes-Oxley Section 404 compliance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. The Company defines adjusted net service revenue 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 diluted earnings per share to diluted earnings per share, a reconciliation of Adjusted EBITDA to net income and a reconciliation of adjusted net service revenue to net service revenue, in each case, the most directly comparable GAAP measure. Management believes that adjusted diluted earnings per share, adjusted EBITDA and adjusted net service revenue 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
A live broadcast of
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. 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 the consummation and integration of acquisitions, anticipated transition to managed care providers, our ability to successfully execute our growth strategy, unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare's relationships with referral sources, increased competition for
About Addus
Addus is a comprehensive provider of home and community-based services that are primarily 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) (Unaudited) |
|||||||
Income Statement Information: |
For the Three Months |
For the Nine Months |
|||||
2015 |
2014 |
2015 |
2014 |
||||
Net service revenues |
$ 84,331 |
$ 81,658 |
$ 252,055 |
$ 230,306 |
|||
Cost of service revenues |
60,809 |
59,818 |
182,925 |
169,218 |
|||
Gross profit |
23,522 |
21,840 |
69,130 |
61,088 |
|||
27.9% |
26.7% |
27.4% |
26.5% |
||||
General and administrative expenses |
18,041 |
15,773 |
52,617 |
45,576 |
|||
Depreciation and amortization |
1,197 |
1,106 |
3,504 |
2,684 |
|||
Total operating expenses |
19,238 |
16,879 |
56,121 |
48,260 |
|||
Operating income |
4,284 |
4,961 |
13,009 |
12,828 |
|||
Total interest expense, net |
163 |
180 |
505 |
484 |
|||
Income before taxes |
4,121 |
4,781 |
12,504 |
12,344 |
|||
Income tax expense |
1,234 |
1,544 |
4,202 |
4,024 |
|||
Net income |
$ 2,887 |
$ 3,237 |
$ 8,302 |
$ 8,320 |
|||
Net income per share: |
|||||||
Basic |
$ 0.26 |
$ 0.30 |
$ 0.76 |
$ 0.76 |
|||
Diluted |
$ 0.26 |
$ 0.29 |
$ 0.74 |
$ 0.75 |
|||
Weighted average number of common shares outstanding: |
|||||||
Basic |
11,007 |
10,927 |
10,978 |
10,895 |
|||
Diluted |
11,247 |
11,154 |
11,183 |
11,122 |
|||
For the Three Months |
For the Nine Months |
||||||
Cash Flow Information: |
2015 |
2014 |
2015 |
2014 |
|||
Net cash (used in) provided by operating activities |
$ (26,258) |
$ (7,413) |
$ 8,786 |
$ 7,590 |
|||
Net cash (used in) investing activities |
(555) |
(821) |
(5,712) |
(12,012) |
|||
Net cash (used in) provided by financing activities |
(334) |
2,767 |
(1,560) |
2,981 |
|||
Net change in cash |
(27,147) |
(5,467) |
1,514 |
(1,441) |
|||
Cash at the beginning of the period |
42,024 |
19,591 |
13,363 |
15,565 |
|||
Cash at the end of the period |
$ 14,877 |
$ 14,124 |
$ 14,877 |
$ 14,124 |
Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited) |
|||
September 30, |
|||
2015 |
2014 |
||
Assets |
|||
Current assets |
|||
Cash |
$ 14,877 |
$ 14,124 |
|
Accounts receivable, net |
78,395 |
62,121 |
|
Prepaid expenses and other current assets |
7,609 |
6,937 |
|
Deferred tax assets |
8,508 |
8,326 |
|
Total current assets |
109,389 |
91,508 |
|
Property and equipment, net |
8,187 |
7,646 |
|
Other assets |
|||
Goodwill |
65,962 |
64,237 |
|
Intangible assets, net |
10,179 |
11,043 |
|
Investment in joint venture |
900 |
900 |
|
Other assets |
404 |
13 |
|
Total other assets |
77,445 |
76,193 |
|
Total assets |
$ 195,021 |
$ 175,347 |
|
Liabilities and stockholders' equity |
|||
Current liabilities |
|||
Accounts payable |
$ 4,869 |
$ 3,613 |
|
Accrued expenses |
42,118 |
39,314 |
|
Current portion of capital lease obligations |
1,100 |
978 |
|
Current portion of contingent earn-out obligation |
1,250 |
1,000 |
|
Deferred revenue |
- |
3 |
|
Total current liabilities |
49,337 |
44,908 |
|
Capital lease obligations, less current portion |
2,162 |
2,926 |
|
Contingent earn-out obligation, less current portion |
- |
1,120 |
|
Deferred tax liability |
5,832 |
3,441 |
|
Total stockholders' equity |
137,690 |
122,952 |
|
Total liabilities and stockholders' equity |
$ 195,021 |
$ 175,347 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited) |
|||||||
For the Three Months |
For the Nine Months |
||||||
2015 |
2014 |
2015 |
2014 |
||||
General: |
|||||||
Adjusted EBITDA (in thousands) (1) |
$ 5,950 |
$ 6,305 |
$ 18,233 |
$ 16,617 |
|||
States served at period end |
- |
- |
21 |
22 |
|||
Locations at period end |
- |
- |
122 |
132 |
|||
Employees at period end |
- |
- |
19,642 |
17,504 |
|||
Home & Community |
|||||||
Average billable census - same store (2) |
31,800 |
32,032 |
32,078 |
32,753 |
|||
Average billable census - acquisitions (3) |
607 |
- |
730 |
- |
|||
Average billable census total |
32,407 |
32,032 |
32,808 |
32,753 |
|||
Billable hours (in thousands) |
4,860 |
4,749 |
14,626 |
13,511 |
|||
Average billable hours per census per month |
50.0 |
49.9 |
49.5 |
45.8 |
|||
Billable hours per business day |
74,768 |
74,912 |
76,176 |
70,737 |
|||
Revenues per billable hour |
$ 17.35 |
$ 17.03 |
$ 17.23 |
$ 17.05 |
|||
Percentage of Revenues by Payor: |
|||||||
State, local and other governmental programs |
78.1% |
85.9% |
77.8% |
88.6% |
|||
Managed Care |
18.1 |
9.5 |
18.2 |
6.8 |
|||
Private duty |
2.8 |
3.5 |
3.0 |
3.5 |
|||
Commercial |
1.0% |
1.1% |
1.0% |
1.1% |
|||
(1) We define Adjusted EBITDA as earnings before 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. |
|||||||
(2) Exited sites would have reduced same store census for the three months ended September 30, 2014 by 1,128 and nine months ended September 30, 2014 and 2015 by 1,187 and 672, respectively. |
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(3) The average billable census - acquisitions for 2014 was reclassified to average billable census - same stores for comparability purposes. |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES (Unaudited) |
|||||||
For the Three Months |
For the Nine Months |
||||||
2015 |
2014 |
2015 |
2014 |
||||
Reconciliation of Adjusted EBITDA |
|||||||
Net income |
$ 2,887 |
$ 3,237 |
$ 8,302 |
$ 8,320 |
|||
Interest expense, net |
163 |
180 |
505 |
484 |
|||
Income tax expense |
1,234 |
1,544 |
4,202 |
4,024 |
|||
Depreciation and amortization |
1,197 |
1,106 |
3,504 |
2,684 |
|||
M&A expenses |
57 |
7 |
558 |
543 |
|||
Stock-based compensation expense |
412 |
231 |
1,162 |
562 |
|||
Adjusted EBITDA |
$ 5,950 |
$ 6,305 |
$ 18,233 |
$ 16,617 |
|||
Reconciliation of Diluted Earnings per Share |
|||||||
Diluted earnings per share |
$ 0.26 |
$ 0.29 |
$ 0.74 |
$ 0.75 |
|||
Acquisition-related transaction expense |
- |
- |
0.03 |
0.03 |
|||
Worker Opportunity Tax Credits per share |
(0.02) |
- |
(0.02) |
- |
|||
Costs associated with exited sites |
0.01 |
- |
0.01 |
- |
|||
Incremental Sarbanes-Oxley Section 404 compliance expense per share |
- |
- |
0.02 |
- |
|||
Adjusted diluted earnings per share |
$ 0.25 |
$ 0.29 |
$ 0.78 |
$ 0.78 |
|||
Reconciliation of Net Service Revenues |
|||||||
Net service revenues |
$ 84,331 |
$ 81,658 |
$ 252,055 |
$ 230,306 |
|||
Revenue associated with the closure |
(58) |
(2,888) |
(5,404) |
(8,892) |
|||
Adjusted net service revenues |
$ 84,273 |
$ 78,770 |
$ 246,651 |
$ 221,414 |
|||
(1) We define Adjusted EBITDA as earnings before 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 diluted earnings per share, adjusted for M&A expenses, one time costs associated with exited sites, tax benefit from worker opportunity tax credits and incremental costs for Sarbanes-Oxley Section 404 compliance. 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. |
|||||||
(3) 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. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/addus-homecare-announces-third-quarter-2015-results-300170488.html
SOURCE
Don Klink, Chief Financial Officer, Addus HomeCare Corporation, (630) 296-3400, investorrelations@addus.com; Scott Brittain, Corporate Communications, Inc., (615) 324-7308, scott.brittain@cci-ir.com