Full Press Release Details
| Contacts: | ||||
| Brian W. Poff | Dru Anderson | |||
| Executive Vice President, Chief Financial Officer | Corporate Communications, Inc. | |||
| Addus HomeCare Corporation | (615) 324-7346 | |||
| (469) 535-8200 | dru.anderson@cci-ir.com | |||
| investorrelations@addus.com |
ADDUS HOMECARE ANNOUNCES FOURTH-QUARTER FINANCIAL RESULTS
Revenues of $196.0 Million
Net Income of $8.4 Million, or $0.53 per Diluted Share
Adjusted Earnings per Diluted Share up 12.3% to $0.82
Adjusted EBITDA Increases 11.6% to $20.9 Million
Frisco, Texas (February 25, 2021) 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, 2020.
Net service revenues increased 1.9% for the fourth quarter to $196.0 million from
$192.4 million for the fourth quarter of 2019. Net income was $8.4 million for the fourth quarter of 2020, compared with $10.7 million for the fourth quarter last year, while net income per diluted share was $0.53 compared with $0.68
for the same period a year ago. Adjusted EBITDA increased 11.6% to $20.9 million for the fourth quarter of 2020 from $18.8 million for the fourth quarter of 2019. Adjusted net income per diluted share was $0.82 for the fourth quarter of
2020 compared with $0.73 for the fourth quarter of 2019. (See page 8 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.)
Adjusted net income per diluted share for the fourth quarter of 2020 excludes COVID-19 expenses of $0.01, M&A
expenses of $0.15, restructure and other non-recurring costs of $0.03, and stock-based compensation expense of $0.10. Adjusted net income per diluted share for the fourth quarter of 2019 excluded the favorable
impact of the retroactive Illinois rate increase of $0.12, M&A expenses of $0.08, restructure and other non-recurring costs of $0.01 and stock-based compensation expense of $0.08.
For 2020, net service revenues increased 17.9% to $764.8 million from $648.8 million for 2019. Net income from continuing operations increased 28.4%
to $33.1 million for 2020 compared with $25.8 million for the prior year, while net income from continuing operations per diluted share increased to $2.08 from $1.81. Adjusted EBITDA was $76.9 million for 2020, an increase of 31.0%
compared with $58.7 million for 2019. Adjusted net income from continuing operations per diluted share grew 23.2% to $3.08 for 2020 from $2.50 for 2019.
Adjusted net income per diluted share for the full year 2020 excludes loss on sale of assets of $0.01, COVID-19
expenses of $0.07, M&A expenses of $0.34, restructure and other non-recurring costs of $0.28, and stock-based compensation expense of $0.30. Adjusted net income per diluted share for the full year 2019
excluded interest income from Illinois of $0.03, M&A expenses of $0.26, restructure and other non-recurring costs of $0.14, and stock-based compensation expense of $0.32.
Commenting on the results, Dirk Allison, President and Chief Executive Officer, said, We are pleased to report solid financial and operating results for
the fourth quarter and 2020, capping off another year of impressive growth and progress for Addus. These results were achieved despite some extraordinary challenges, including the substantial surge of COVID-19
cases during November and December. We commend the heroic work and dedication of our team of frontline caregivers and support staff who continue our mission to provide essential home care services and serve the needs of patients who count on Addus
for safe and cost-effective care. As conditions surrounding the pandemic begin to improve and vaccinations become more widely distributed across the country, we are confident that Addus is well positioned to meet expected demand in a less
restrictive and more favorable environment.
ADUS Announces Fourth-Quarter and 2020 Financial Results
At December 31, 2020, the Company had cash of $145.1 million and bank debt of $196.6 million,
with availability under its revolving credit facility of $112.6 million. Net cash provided by operating activities was $36.1 million for the fourth quarter of 2020 and $109.4 million for 2020, the highest annual level in Addus
Mr. Allison added, In addition to organic growth, we continued to pursue strategic acquisition opportunities in 2020. Despite the
pandemic, we were able to complete four acquisitions for the year with a total of approximately $84 million in annualized revenue. The integration process has gone well for these transactions, and we are excited to have these new providers and
caregivers join the Addus family. We intend to continue pursuing aggressive acquisition objectives in 2021 with a strong pipeline in each of our personal care, hospice, and home health segments. Our capital structure supports this important aspect
of our growth strategy and allows us to take advantage of future acquisition opportunities as they occur.
Looking ahead to 2021, we are confident
that we are well-positioned to achieve further profitable growth both organically and from acquisitions. We remain focused on our mission to provide home care services that allow individuals to remain in the safety and comfort of their preferred
home setting. We are proud of our ability to execute our strategy this past year, and we believe we have an exceptional team in place that provides a stable foundation for continued success as a leading provider of home care services. Addus offers a
strong value proposition, and we look forward to extending our market reach while continuing to deliver value to our shareholders, Mr. Allison concluded.
Non-GAAP Financial Measures
The information provided in this release includes adjusted net income per diluted share, adjusted EBITDA, and adjusted net service revenues, which are non-GAAP financial measures. The Company defines adjusted net income as net income before the net-of-tax amounts of interest income
from the State of Illinois, COVID-19 adjustments for temporary rate increases and expenses, M&A expenses, stock-based compensation expense, restructure charges, severance and other costs and loss on the
sale of assets associated with Hospice Partners of Kansas. The Company defines adjusted EBITDA as net income before interest expense, interest income, other non-operating income,
COVID-19 adjustments for temporary rate increases and expenses, taxes, depreciation, amortization, interest income from the State of Illinois, M&A expenses, stock-based compensation expense, restructure
charges, severance and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. The Company defines adjusted diluted earnings per share as earnings per share adjusted for interest income from the State of Illinois,
COVID-19 expenses, M&A expenses, stock compensation expense and restructure expense, severance and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. 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 and a reconciliation of adjusted diluted earnings per share to earnings per share, in each case, the most
directly comparable GAAP measure. Management believes that adjusted net income, adjusted EBITDA and adjusted diluted earnings per share 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. With respect to COVID-19 expenses, the Company views these expenses as unrelated to the Company s long-term performance since they are directly related to the sudden onset COVID-19
pandemic. With respect to COVID-19 temporary rate increases, the Company similarly views these as unrelated to the Company s long-term performance and has adjusted for those increases, net of the amount
required to be passed through to caregivers as a condition of the increase.
ADUS Announces Fourth-Quarter and 2020 Financial Results
Addus will host a conference call on Friday, February 26, 2021, beginning at 9:00 a.m. Eastern time. The toll-free
dial-in number is (877) 930-8289 (international dial-in number is (253) 336-8714), pass
code 9398711. A telephonic replay of the conference call will be available through midnight March 5, 2021, by dialing (855) 859-2056 (international dial-in number
is (404)-537-3406) and entering pass code 9398711. 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,
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 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, the
anticipated impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, caused by a novel strain of the coronavirus
(COVID-19), 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 August 10, 2020, 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
About 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 44,000 consumers through 212 locations across 22 states. For more information, please visit www.addus.com.
ADUS Announces Fourth-Quarter and 2020 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(amounts and shares in thousands, except per share data)
| Income Statement Information: | For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net service revenues | $ | 195,996 | $ | 192,376 | $ | 764,775 | $ | 648,791 | ||||||||
| Cost of service revenues | 136,892 | 134,834 | 538,538 | 469,553 | ||||||||||||
| Gross profit | 59,104 | 57,542 | 226,237 | 179,238 | ||||||||||||
| 30.2 | % | 29.9 | % | 29.6 | % | 27.6 | % | |||||||||
| General and administrative expenses | 44,209 | 39,803 | 169,679 | 133,912 | ||||||||||||
| Depreciation and amortization | 3,179 | 3,209 | 12,051 | 10,574 | ||||||||||||
| Total operating expenses | 47,388 | 43,012 | 181,730 | 144,486 | ||||||||||||
| Operating income from continuing operations | 11,716 | 14,530 | 44,507 | 34,752 | ||||||||||||
| Total interest expense, net | 832 | 514 | 2,565 | 1,582 | ||||||||||||
| Income before income taxes | 10,884 | 14,016 | 41,942 | 33,170 | ||||||||||||
| Income tax expense | 2,435 | 3,279 | 8,809 | 7,359 | ||||||||||||
| Net income from continuing operations | 8,449 | 10,737 | 33,133 | 25,811 | ||||||||||||
| Discontinued operations: | ||||||||||||||||
| Loss from Home Health Business, net of tax | (574 | ) | ||||||||||||||
| Earnings from discontinued operations | (574 | ) | ||||||||||||||
| Net income | $ | 8,449 | $ | 10,737 | $ | 33,133 | $ | 25,237 | ||||||||
| Net income (loss) per diluted share: | ||||||||||||||||
| Continuing Operations | $ | 0.53 | $ | 0.68 | $ | 2.08 | $ | 1.81 | ||||||||
| Discontinued Operations | $ | $ | $ | $ | (0.04 | ) | ||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Diluted | 16,013 | 15,881 | 15,956 | 14,248 | ||||||||||||
| Cash Flow Information: | For the Three Months Ended December 31, | For the Twelve Months Ended December, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net cash provided by operating activities | $ | 36,112 | $ | 3,935 | $ | 109,411 | $ | 12,019 | ||||||||
| Net cash (used in) investing activities | (196,729 | ) | (132,396 | ) | (214,236 | ) | (188,697 | ) | ||||||||
| Net cash provided by financing activities | 135,364 | 566 | 138,189 | 217,986 | ||||||||||||
| Net change in cash | (25,253 | ) | (127,895 | ) | 33,364 | 41,308 | ||||||||||
| Cash at the beginning of the period | 170,331 | 239,609 | 111,714 | 70,406 | ||||||||||||
| Cash at the end of the period | $ | 145,078 | $ | 111,714 | $ | 145,078 | $ | 111,714 |
ADUS Announces Fourth-Quarter and 2020 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
| December 31, | ||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 145,078 | $ | 111,714 | ||||
| Accounts receivable, net | 132,650 | 149,680 | ||||||
| Prepaid expenses and other current assets | 9,969 | 7,993 | ||||||
| Total current assets | 287,697 | 269,387 | ||||||
| Property and equipment, net | 19,749 | 12,156 | ||||||
| Other assets | ||||||||
| Goodwill | 469,072 | 275,368 | ||||||
| Intangible assets, net | 71,549 | 57,079 | ||||||
| Deferred tax assets, net | 6,524 | 1,647 | ||||||
| Operating lease assets | 37,991 | 21,111 | ||||||
| Total other assets | 585,136 | 355,205 | ||||||
| Total assets | $ | 892,582 | $ | 636,748 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 23,705 | $ | 19,641 | ||||
| Accrued payroll | 35,815 | 30,587 | ||||||
| Accrued expenses | 37,564 | 22,429 | ||||||
| Government stimulus advances | 32,087 | |||||||
| Accrued workers compensation | 13,759 | 14,143 | ||||||
| Current portion of long-term debt, net of debt issuance costs | 971 | 728 | ||||||
| Total current liabilities | 143,901 | 87,528 | ||||||
| Long-term debt, less current portion, net of debt issuance costs | 193,901 | 59,164 | ||||||
| Long-term lease liability, less current portion | 35,516 | 14,301 | ||||||
| Other long-term liabilities | 588 | 163 | ||||||
| Total long-term liabilities | 230,005 | 73,628 | ||||||
| Total liabilities | 373,906 | 161,156 | ||||||
| Total stockholders equity | 518,676 | 475,592 | ||||||
| Total liabilities and stockholders equity | $ | 892,582 | $ | 636,748 |
ADUS Announces Fourth-Quarter and 2020 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenues by Segment
(Amounts in thousands)
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Personal Care | $ | 164,384 | $ | 161,604 | $ | 647,233 | $ | 580,728 | ||||||||
| Hospice | 27,574 | 26,373 | 101,297 | 53,601 | ||||||||||||
| Home Health | 4,038 | 4,399 | 16,245 | 14,462 | ||||||||||||
| Total Revenue | $ | 195,996 | $ | 192,376 | $ | 764,775 | $ | 648,791 |
ADUS Announces Fourth-Quarter and 2020 Financial Results
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, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| General | ||||||||||||||||
| Personal Care | ||||||||||||||||
| States served at period end | 22 | 24 | ||||||||||||||
| Locations at period end | 170 | 152 | ||||||||||||||
| Average billable census - same store | 37,665 | 39,179 | 37,641 | 37,892 | ||||||||||||
| Average billable census - acquisitions (1) | 1,538 | 1,558 | 1,296 | |||||||||||||
| Average billable census total | 39,203 | 39,179 | 39,199 | 39,188 | ||||||||||||
| Billable hours (in thousands) | 7,820 | 7,814 | 30,645 | 29,732 | ||||||||||||
| Average billable hours per census per month | 66.0 | 66.0 | 64.7 | 62.7 | ||||||||||||
| Billable hours per business day | 118,490 | 118,393 | 116,967 | 113,915 | ||||||||||||
| Revenues per billable hour | $ | 20.98 | $ | 20.10 | $ | 21.07 | $ | 19.50 | ||||||||
| Organic growth | ||||||||||||||||
| - Revenue | 2.6 | % | 13.6 | % | 5.9 | % | 8.2 | % | ||||||||
| Hospice | ||||||||||||||||
| Locations served at period end | 34 | 35 | ||||||||||||||
| Admissions | 1,983 | 1,547 | 6,376 | 3,095 | ||||||||||||
| Average daily census | 2,492 | 1,841 | 2,619 | 1,783 | ||||||||||||
| Average length of stay | 108.3 | 92.6 | 104.9 | 106.8 | ||||||||||||
| Patient days | 174,407 | 170,336 | 657,172 | 349,866 | ||||||||||||
| Revenue per patient day | $ | 158.10 | $ | 154.83 | $ | 154.14 | $ | 153.20 | ||||||||
| Organic growth | ||||||||||||||||
| - Revenue | (10.6 | )% | 20.4 | % | (5.3 | )% | % | |||||||||
| - Average daily census | (13.5 | )% | 22.7 | % | 1.2 | % | % | |||||||||
| Home Health | ||||||||||||||||
| Locations served at period end | 10 | 11 | ||||||||||||||
| New Admissions | 1,088 | 1,022 | 4,122 | 3,347 | ||||||||||||
| Recertifications | 572 | 709 | 2,578 | 2,658 | ||||||||||||
| Total Volume | 1,660 | 1,731 | 6,700 | 6,005 | ||||||||||||
| Visits | 26,890 | 33,675 | 118,470 | 108,863 | ||||||||||||
| Organic growth | ||||||||||||||||
| - Revenue | (8.2 | )% | 12.3 | % | (3.0 | )% | % | |||||||||
| - Total volume | (4.1 | )% | 7.0 | % | 9.1 | % | % | |||||||||
| Percentage of Revenues by Payor: | ||||||||||||||||
| Personal Care | ||||||||||||||||
| State, local and other governmental programs | 49.8 | % | 50.8 | % | 50.2 | % | 52.2 | % | ||||||||
| Managed care organizations | 45.0 | 43.0 | 44.3 | 41.3 | ||||||||||||
| Private duty | 3.0 | 3.6 | 3.2 | 3.7 | ||||||||||||
| Commercial | 1.5 | 1.6 | 1.5 | 1.6 | ||||||||||||
| Other | 0.7 | % | 1.0 | % | 0.8 | % | 1.2 | % | ||||||||
| Hospice | ||||||||||||||||
| Medicare | 93.2 | % | 92.6 | % | 92.9 | % | 92.6 | % | ||||||||
| Managed care organizations | 4.4 | 5.1 | 4.9 | 5.2 | ||||||||||||
| Other | 2.4 | % | 2.3 | % | 2.2 | % | 2.2 | % | ||||||||
| Home Health | ||||||||||||||||
| Medicare | 76.8 | % | 74.4 | % | 78.6 | % | 77.6 | % | ||||||||
| Managed care organizations | 21.3 | 24.3 | 19.6 | 20.3 | ||||||||||||
| Other | 1.9 | % | 1.3 | % | 1.8 | % | 2.1 | % |
ADUS Announces Fourth-Quarter and 2020 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands, except per share data)
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of Adjusted EBITDA to Net Income: (1) | ||||||||||||||||
| Net income | $ | 8,449 | $ | 10,737 | $ | 33,133 | $ | 25,237 | ||||||||
| Less: Loss from discontinued operations, net of tax | 574 | |||||||||||||||
| Net income from continuing operations | 8,449 | 10,737 | 33,133 | 25,811 | ||||||||||||
| Interest expense, net | 832 | 591 | 2,565 | 2,233 | ||||||||||||
| Interest income from Illinois | (77 | ) | (651 | ) | ||||||||||||
| Impact of retroactive Illinois rate increase | (2,485 | ) | ||||||||||||||
| Loss on sale of assets | 13 | 294 | ||||||||||||||
| Secondary offering costs | 127 | |||||||||||||||
| Income tax expense | 2,435 | 3,279 | 8,809 | 7,359 | ||||||||||||
| Depreciation and amortization | 3,179 | 3,209 | 12,051 | 10,574 | ||||||||||||
| COVID-19 expense, net | 252 | 1,480 | ||||||||||||||
| M&A expenses | 3,074 | 1,593 | 6,956 | 4,775 | ||||||||||||
| Stock-based compensation expense | 2,017 | 1,581 | 6,005 | 5,766 | ||||||||||||
| Restructure and other non-recurring costs | 694 | 339 | 5,614 | 2,703 | ||||||||||||
| Adjusted EBITDA | $ | 20,945 | $ | 18,767 | $ | 76,907 | $ | 58,697 | ||||||||
| Reconciliation of Adjusted Net Income to Net Income: (2) | ||||||||||||||||
| Net income | $ | 8,449 | $ | 10,737 | $ | 33,133 | $ | 25,237 | ||||||||
| Loss from discontinued operations, net of tax | 574 | |||||||||||||||
| Interest income from Illinois, net of tax | (59 | ) | (507 | ) | ||||||||||||
| Impact of retroactive Illinois rate increase, net of tax | (1,903 | ) | ||||||||||||||
| Loss on sale of assets, net of tax | 10 | 232 | ||||||||||||||
| COVID-19 expense, net of tax | 196 | 1,169 | ||||||||||||||
| M&A expenses, net of tax | 2,365 | 1,220 | 5,456 | 3,715 | ||||||||||||
| Stock-based compensation expense, net of tax | 1,551 | 1,210 | 4,728 | 4,489 | ||||||||||||
| Restructuring and other non-recurring costs, net of tax | 540 | 260 | 4,421 | 2,202 | ||||||||||||
| Adjusted Net Income | $ | 13,110 | $ | 11,465 | $ | 49,139 | $ | 35,710 | ||||||||
| Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3) | ||||||||||||||||
| Net income per diluted share | $ | 0.53 | $ | 0.68 | $ | 2.08 | $ | 1.81 | ||||||||
| Interest income from Illinois per diluted share | (0.03 | ) | ||||||||||||||
| Impact of retroactive Illinois rate increase per diluted share | (0.12 | ) | ||||||||||||||
| Loss on sale of assets per diluted share | 0.01 | |||||||||||||||
| COVID-19 expense per diluted share | 0.01 | 0.07 | ||||||||||||||
| M&A expenses per diluted share | 0.15 | 0.08 | 0.34 | 0.26 | ||||||||||||
| Restructure and other non-recurring costs per diluted share | 0.03 | 0.01 | 0.28 | 0.14 | ||||||||||||
| Stock-based compensation expense per diluted share | 0.10 | 0.08 | 0.30 | 0.32 | ||||||||||||
| Adjusted net income per diluted share | $ | 0.82 | $ | 0.73 | $ | 3.08 | $ | 2.50 |