Full Press Release Details
| Contacts: | ||
| Brian W. Poff | Dru Anderson | |
| Executive Vice President, Chief Financial Officer | FINN Partners | |
| Addus HomeCare Corporation | (615) 324-7346 | |
| (469) 535-8200 | dru.anderson@finnpartners.com | |
| investorrelations@addus.com |
ADDUS HOMECARE ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS
Frisco, Texas (May 5, 2025) Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results
for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights:
Net service revenues were $337.7 million
for the first quarter of 2025, a 20.3% increase compared with $280.7 million for the first quarter of 2024. Net income was $21.2 million for the first quarter of 2025 compared with $15.8 million for the first quarter of 2024, while
net income per diluted share was $1.16 compared with $0.97 for the same period a year ago. Adjusted EBITDA increased 25.1% to $40.6 million for the first quarter of 2025 from $32.4 million for the first quarter of 2024. Adjusted net income
was $26.0 million for the first quarter of 2025 compared with $19.8 million for the prior-year period, while adjusted net income per diluted share was $1.42 compared with $1.21 for the first quarter of 2024. Adjusted net income per diluted
share for the first quarter of 2025 excludes acquisition expenses of $0.13 and stock-based compensation expense of $0.13 (See the end of press release for a reconciliation of all non-GAAP and GAAP financial
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, Addus had a strong start to 2025, delivering a
solid financial and operating performance as we continue to see solid demand for our home-based care services across the continuum. Revenue for the first quarter of 2025 was up 20.3% and adjusted EBITDA increased 25.1% over the same period last
year. These results reflect solid organic growth and include the first full quarter of the personal care operations of Gentiva, which we acquired on December 2, 2024.
Our personal care segment, which accounted for 76.5% of our business, was the key driver of our growth with a 7.4% organic revenue increase over the
first quarter last year. We benefited from higher volumes as well as additional rate support, including a 5.5% increase effective January 1, 2025, for Illinois, our largest personal care market. The addition of the Gentiva personal care
operations, our largest acquisition to date, gave us two new states and added coverage in five states where we already had operations. Our team has worked hard to implement a smooth integration, and we are excited about the additional opportunities
to expand our personal care presence.
We were pleased to see continued steady improvement in our hospice care segment, which accounted for 18.2% of
our business, with solid organic revenue growth of 9.9% over the first quarter last year. Our average daily census, patient days and revenue per patient day were all higher compared with the same period last year. With the recent changes in our
operations and sales leadership, we are confident we have a capable team in place to drive further improvement in our hospice business. Our home health services accounted for 5.3% of total revenue for the first quarter. While this is our smallest
business segment, we continue to see home health as providing important complementary capabilities to our personal care and hospice care segments, allowing us to provide patients with the full care continuum.
ADUS Announces First Quarter 2025 Financial Results
As of March 31, 2025, the Company had cash of $97.0 million and bank debt of $203.0 million, with capacity and availability under its revolving
credit facility of $632.9 million and $421.9 million, respectively. Net cash provided by operating activities was $18.9 million for the first quarter of 2025, inclusive of a net $2.5 million in ARPA funds utilization.
Allison continued, For the first quarter of 2025, we continued to generate consistent cash flow from operations and maintain a strong balance sheet. Our
conservative leverage position allows us the flexibility to continue to invest in our business and to evaluate and pursue additional acquisition opportunities. We remain focused on finding strategic markets that meet our objective to leverage our
existing personal care presence and add clinical care services, so we can provide all three levels of care. We see important synergies in offering the full care continuum as we build scale and expand our market coverage, and we are optimistic that
we will see additional acquisition opportunities in 2025.
We believe the favorable trends in our business will continue to enhance our ability to
achieve solid organic growth and provide quality services from our recently acquired operations. As we extend our reach to more patients and families across our markets, we are mindful of our important role as a leading provider of quality care in
the preferred home setting. We recognize the hard work and dedication of the caregivers who are the face of Addus, and we are grateful for the outstanding care and support they provide every day across our markets. Working together, we look forward
to the opportunities ahead for Addus in 2025, as we deliver value to the clients we serve and 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, and the gain or loss on the sale of assets. The Company defines adjusted EBITDA as earnings before net interest expense, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, and the gain or
loss on the sale of assets. 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.
Addus will host a conference call on Tuesday, May 6, 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 May 13, 2025, by dialing (877) 344-7529 (international dial-in number is (412) 317-0088) and entering pass code 3473942.
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
ADUS Announces First Quarter 2025 Financial Results
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 25, 2025, 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 260 locations across 23 states. For more information, please visit www.addus.com.
ADUS Announces First Quarter 2025 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 March 31, | |||||||
| 2025 | 2024 | |||||||
| Net service revenues | $ | 337,708 | $ | 280,746 | ||||
| Cost of service revenues | 230,031 | 192,569 | ||||||
| Gross profit | 107,677 | 88,177 | ||||||
| 31.9 | % | 31.4 | % | |||||
| General and administrative expenses | 73,220 | 61,063 | ||||||
| Depreciation and amortization | 3,943 | 3,469 | ||||||
| Total operating expenses | 77,163 | 64,532 | ||||||
| Operating income from continuing operations | 30,514 | 23,645 | ||||||
| Total interest expense, net | 3,516 | 2,335 | ||||||
| Income before income taxes | 26,998 | 21,310 | ||||||
| Income tax expense | 5,770 | 5,480 | ||||||
| Net income | $ | 21,228 | $ | 15,830 | ||||
| Net income per diluted share: | $ | 1.16 | $ | 0.97 | ||||
| Weighted average number of common shares outstanding: | ||||||||
| Diluted | 18,311 | 16,373 | ||||||
| Cash Flow Information: | For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | |||||||
| Net cash provided by operating activities | $ | 18,949 | $ | 38,678 | ||||
| Net cash used in investing activities | (1,378 | ) | (1,750 | ) | ||||
| Net cash used in financing activities | (19,528 | ) | (25,000 | ) | ||||
| Net change in cash | (1,957 | ) | 11,928 | |||||
| Cash at the beginning of the period | 98,911 | 64,791 | ||||||
| Cash at the end of the period | $ | 96,954 | $ | 76,719 |
ADUS Announces First Quarter 2025 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 96,954 | $ | 76,719 | ||||
| Accounts receivable, net | 134,607 | 103,438 | ||||||
| Prepaid expenses and other current assets | 26,267 | 11,690 | ||||||
| Total current assets | 257,828 | 191,847 | ||||||
| Property and equipment, net | 24,701 | 23,872 | ||||||
| Other assets | ||||||||
| Goodwill | 972,347 | 663,391 | ||||||
| Intangible assets, net | 107,644 | 90,191 | ||||||
| Operating lease assets | 45,064 | 44,699 | ||||||
| Total other assets | 1,125,055 | 798,281 | ||||||
| Total assets | $ | 1,407,584 | $ | 1,014,000 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 27,969 | $ | 22,022 | ||||
| Accrued payroll | 54,858 | 44,022 | ||||||
| Accrued expenses | 29,748 | 38,772 | ||||||
| Operating lease liabilities, current portion | 12,649 | 11,307 | ||||||
| Government stimulus advance | 8,702 | 13,548 | ||||||
| Accrued workers compensation | 14,010 | 11,920 | ||||||
| Total current liabilities | 147,936 | 141,591 | ||||||
| Long-term debt, less current portion, net of debt issuance costs | 198,740 | 99,347 | ||||||
| Long-term operating lease liabilities, less current portion | 39,414 | 39,044 | ||||||
| Deferred tax liabilities, net | 25,986 | 8,660 | ||||||
| Other long-term liabilities | 125 | 215 | ||||||
| Total long-term liabilities | 264,265 | 147,266 | ||||||
| Total liabilities | 412,201 | 288,857 | ||||||
| Total stockholders equity | 995,383 | 725,143 | ||||||
| Total liabilities and stockholders equity | $ | 1,407,584 | $ | 1,014,000 |
ADUS Announces First Quarter 2025 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenue by Segment
(Amounts in thousands)
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Service Revenues by Segment | ||||||||
| Personal Care | $ | 258,286 | $ | 208,003 | ||||
| Hospice | 61,437 | 55,863 | ||||||
| Home Health | 17,985 | 16,880 | ||||||
| Total Revenue | $ | 337,708 | $ | 280,746 |
ADUS Announces First Quarter 2025 Financial Results
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Key Statistical and Financial Data (Unaudited)
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Personal Care | ||||||||
| States served at period end | 23 | 21 | ||||||
| Locations served at period end | 199 | 153 | ||||||
| Average billable census - same store | 35,948 | 37,715 | ||||||
| Average billable census - acquistions (1) | 14,530 | |||||||
| Average billable census total | 50,478 | 37,715 | ||||||
| Billable hours (in thousands) | 10,201 | 7,590 | ||||||
| Average billable hours per census per month | 67.4 | 67.0 | ||||||
| Billable hours per business day | 159,395 | 116,769 | ||||||
| Revenues per billable hour | $ | 25.32 | $ | 27.35 | ||||
| Organic growth | ||||||||
| - Revenue | 7.4 | % | 9.3 | % | ||||
| Hospice | ||||||||
| Locations served at period end | 38 | 38 | ||||||
| Admissions | 3,474 | 3,472 | ||||||
| Average daily census | 3,515 | 3,359 | ||||||
| Average discharge length of stay | 97.4 | 89.6 | ||||||
| Patient days | 316,319 | 305,630 | ||||||
| Revenue per patient day | $ | 194.23 | $ | 182.78 | ||||
| Organic growth | ||||||||
| - Revenue | 9.9 | % | 5.8 | % | ||||
| - Average daily census | 4.6 | % | (1.1 | )% | ||||
| Home Health | ||||||||
| Locations served at period end | 23 | 23 | ||||||
| New Admissions | 4,708 | 4,887 | ||||||
| Recertifications | 2,982 | 3,168 | ||||||
| Total Volume | 7,690 | 8,055 | ||||||
| Visits | 94,593 | 106,931 | ||||||
| Organic growth | ||||||||
| - Revenue | 1.3 | % | (15.1 | )% | ||||
| - New Admissions | (3.7 | )% | (4.0 | )% | ||||
| - Volume | (4.6 | )% | (3.1 | )% | ||||
| Percentage of Revenues by Payor: | ||||||||
| Personal Care | ||||||||
| State, local and other governmental programs | 51.5 | % | 51.8 | % | ||||
| Managed care organizations | 45.3 | 45.3 | ||||||
| Private duty | 2.7 | 1.9 | ||||||
| Commercial | 0.4 | 0.7 | ||||||
| Other | 0.1 | % | 0.3 | % | ||||
| Hospice | ||||||||
| Medicare | 92.4 | % | 90.7 | % | ||||
| Commercial | 3.9 | 5.6 | ||||||
| Managed care organizations | 3.3 | 3.3 | ||||||
| Other | 0.4 | % | 0.4 | % | ||||
| Home Health | ||||||||
| Medicare | 69.9 | % | 69.1 | % | ||||
| Managed care organizations | 21.2 | 26.1 | ||||||
| State, local and other governmental programs | 6.0 | 0.1 | ||||||
| Commercial | 2.5 | 4.1 | ||||||
| Other | 0.4 | % | 0.6 | % |
ADUS Announces First Quarter 2025 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 March 31, | ||||||||
| 2025 | 2024 | |||||||
| Reconciliation of Adjusted EBITDA to Net Income: (1) | ||||||||
| Net income | $ | 21,228 | $ | 15,830 | ||||
| Interest expense, net | 3,516 | 2,335 | ||||||
| Gain on the sale of assets | (7 | ) | ||||||
| Income tax expense | 5,770 | 5,480 | ||||||
| Depreciation and amortization | 3,943 | 3,469 | ||||||
| Acquisition expenses | 2,952 | 2,711 | ||||||
| Stock-based compensation expense | 3,170 | 2,618 | ||||||
| Adjusted EBITDA | $ | 40,572 | $ | 32,443 | ||||
| Reconciliation of Adjusted Net Income to Net Income: (2) | ||||||||
| Net income | $ | 21,228 | $ | 15,830 | ||||
| Gain on the sale of assets | (7 | ) | ||||||
| Acquisition expenses | 2,952 | 2,711 | ||||||
| Stock-based compensation expense | 3,170 | 2,618 | ||||||
| Tax effect | (1,306 | ) | (1,370 | ) | ||||
| Adjusted Net Income | 26,037 | 19,789 | ||||||
| Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (3) | ||||||||
| Diluted earnings per share | $ | 1.16 | $ | 0.97 | ||||
| Acquisition expenses, per diluted share | 0.13 | 0.12 | ||||||
| Stock-based compensation expense per diluted share | 0.13 | 0.12 | ||||||
| Adjusted net income per diluted share | $ | 1.42 | $ | 1.21 | ||||
| Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) | ||||||||
| Net service revenues | $ | 337,708 | $ | 280,746 | ||||
| Revenue associated with the closure of certain sites | (13 | ) | (95 | ) | ||||
| Adjusted net service revenues | $ | 337,695 | $ | 280,651 |
ADUS Announces First Quarter 2025 Financial Results