Financial Performance - Net service revenues for Q4 2024 were $297.1 million, a 7.5% increase from $276.4 million in Q4 2023[4] - Net income for Q4 2024 was $19.5 million, with diluted earnings per share of $1.07, compared to $19.6 million and $1.20 per share in Q4 2023[4] - Adjusted EBITDA for Q4 2024 increased by 10.3% to $37.8 million from $34.3 million in Q4 2023[4] - The full year 2024 net service revenues reached $1.15 billion, a 9.1% increase from $1.06 billion in 2023[4] - Adjusted net income for the full year 2024 was $91.4 million, up from $74.8 million in 2023, with adjusted net income per diluted share increasing to $5.26 from $4.58[4] - Net income for the twelve months ended December 31, 2024, was $73.6 million, up from $62.5 million in 2023, representing a 17.0% increase[25] - Operating income for the twelve months ended December 31, 2024, was $102.7 million, compared to $91.0 million in 2023, marking a 12.5% increase[26] - For the three months ended December 31, 2024, net income was $19,526,000 compared to $19,578,000 for the same period in 2023, while for the twelve months, net income increased to $73,598,000 from $62,516,000[32] - Adjusted EBITDA for the three months ended December 31, 2024, was $37,771,000, up from $34,255,000 in the same period of 2023, and for the twelve months, it rose to $140,290,000 from $121,020,000[32] Revenue Breakdown - Personal care services accounted for 74.1% of total revenue in Q4 2024, with an organic revenue growth rate of 5.8% year-over-year[6] - Hospice services represented 19.9% of total revenue in Q4 2024, with organic revenue growth of 7.8% compared to the previous year[9] - Personal Care segment revenues increased to $220.3 million in Q4 2024, a 7.9% rise from $204.5 million in Q4 2023[27] - Hospice segment revenues grew by 7.5% to $58.9 million in Q4 2024, compared to $54.7 million in Q4 2023[27] Assets and Equity - Total assets increased to $1.41 billion as of December 31, 2024, from $1.02 billion in 2023, reflecting a 37.9% growth[25] - Total stockholders' equity rose to $970.5 million in 2024, up from $706.7 million in 2023, indicating a 37.4% increase[25] Cash and Liquidity - Cash and liquidity as of December 31, 2024, included $98.9 million in cash and $223.0 million in bank debt, with a revolving credit facility capacity of $577.7 million[10] - Cash at the end of Q4 2024 was $98.9 million, up from $64.8 million at the end of Q4 2023[25] Acquisitions and Growth Strategy - The acquisition of Gentiva personal care operations added approximately $280 million in annualized revenues and expanded market coverage in seven states[11] - The company anticipates additional acquisition opportunities in 2025, focusing on markets that align with its strategic growth initiatives[12] Operational Metrics - Revenue per billable hour for the three months ended December 31, 2024, was $26.40, slightly down from $26.53 in the same period of 2023[32] - Organic revenue growth for Personal Care was 5.8% for the three months ended December 31, 2024, compared to 11.2% in the same period of 2023[32] - Average daily census for Hospice increased to 3,472 in the three months ended December 31, 2024, compared to 3,381 in the same period of 2023[32] - Total patient days for Hospice reached 319,460 for the three months ended December 31, 2024, up from 311,015 in the same period of 2023[32] - New admissions in Home Health were 4,365 for the three months ended December 31, 2024, compared to 4,654 in the same period of 2023[32] - The average billable census for acquisitions was 14,581 for the three months ended December 31, 2024, with no prior year comparison available[32] - The percentage of revenues from state, local, and other governmental programs in Personal Care increased to 54.2% for the three months ended December 31, 2024, from 50.5% in the same period of 2023[32] Adjusted Financial Metrics - Adjusted EBITDA is defined as earnings before net interest expense, taxes, depreciation, and other non-recurring costs, providing insight into the company's operating performance[1] - Adjusted Net Income excludes acquisition expenses and other non-recurring costs, offering a clearer view of the company's profitability[2] - Adjusted diluted earnings per share is calculated by adjusting for acquisition expenses and other non-recurring costs, reflecting the company's earnings more accurately[3] - Adjusted net service revenues are revenue figures adjusted for the closure of certain sites, highlighting the impact of operational changes on revenue[4]

Core Viewpoint - Addus HomeCare (ADUS) has experienced significant selling pressure, resulting in a 16.4% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Stock Performance and Technical Indicators - ADUS is currently in oversold territory, indicated by an RSI reading of 26.62, suggesting a potential reversal in stock price trends [5] - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30 [2][3] Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus EPS estimate for ADUS has increased by 0.6%, indicating a positive trend in earnings revisions [6] - ADUS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to the inherent risks and volatility associated with them [1]. Group 1: Company Overview - Addus HomeCare (ADUS) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The company specializes in home-based personal care, nursing, and rehabilitative therapy services, making it a strong candidate for growth investment [3]. Group 2: Earnings Growth - Addus HomeCare has a historical EPS growth rate of 15.6%, with projected EPS growth of 14.7% for the current year, surpassing the industry average of 11.2% [5]. - Earnings growth is emphasized as a critical factor for investors, with double-digit growth being particularly desirable [4]. Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth rate of 21.9%, significantly higher than the industry average of 2.3% [6]. - Over the past 3-5 years, Addus HomeCare has maintained an annualized cash flow growth rate of 22%, compared to the industry average of 8.5% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Addus HomeCare, with the Zacks Consensus Estimate for the current year increasing by 0.6% over the past month [9]. - The correlation between earnings estimate revisions and near-term stock price movements is noted as a significant indicator of performance [8]. Group 5: Investment Positioning - Addus HomeCare holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [11].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Addus HomeCare (ADUS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][8]. Company Analysis - Addus HomeCare (ADUS) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio of ADUS is 18.72, which is lower than the industry average of 20.99, suggesting it may be undervalued [4]. - ADUS's Forward P/E has fluctuated between 18.17 and 24.54 over the past year, with a median of 22.07 [4]. - The PEG ratio for ADUS is 1.29, significantly lower than the industry average of 2.43, indicating a favorable valuation relative to expected earnings growth [5]. - The P/B ratio for ADUS is 2.17, compared to the industry average of 4, further supporting the notion of undervaluation [6]. - ADUS has a P/CF ratio of 23.44, which is also lower than the industry average of 25.69, suggesting solid cash flow relative to its market value [7]. Investment Outlook - The combination of these metrics indicates that Addus HomeCare is likely undervalued, making it an attractive option for value investors [8].

Core Insights - The article emphasizes the importance of a thorough financial analysis, particularly focusing on the interest coverage ratio, to make informed investment decisions in a volatile stock market [1][2]. Interest Coverage Ratio - The interest coverage ratio is a critical metric that indicates how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [4][5]. - A higher interest coverage ratio suggests a company is more capable of meeting its financial obligations, while a ratio below 1 indicates potential default risks [6][7]. Company Performance - Deckers Outdoor Corporation (DECK), Boot Barn Holdings, Inc. (BOOT), Addus HomeCare Corporation (ADUS), and The Ensign Group, Inc. (ENSG) are highlighted for their strong interest coverage ratios, indicating solid financial health [3]. - Deckers has a Zacks Rank of 1, with projected sales growth of 15.6% and EPS growth of 21.2% for the current financial year, alongside an 8.7% stock price increase over the past year [11][12]. - Boot Barn also holds a Zacks Rank of 1, with expected sales growth of 14.9% and EPS growth of 21.4%, and a significant stock price increase of 54.1% in the past year [13]. - Addus HomeCare has a Zacks Rank of 2, with projected sales growth of 8.6% and EPS growth of 14.4%, and a stock price increase of 24% over the past year [14]. - The Ensign Group, also with a Zacks Rank of 2, anticipates sales growth of 14.3% and EPS growth of 10.6%, with a stock price rise of 5.6% in the past year [15]. Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [8][9]. - Additional criteria for stock selection include a minimum stock price of $5, strong historical and projected EPS growth, substantial trading volume, and a favorable Zacks Rank [10].

Core Insights - Addus HomeCare (ADUS) is expected to report quarterly earnings of $1.38 per share, reflecting a 4.6% increase year-over-year [1] - Analysts forecast revenues of $292.16 million, indicating a 5.7% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.6% over the past 30 days, showing analysts' reappraisal of their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Revenue Breakdown - Analysts estimate 'Revenue- Personal care' at $203.82 million, a slight decline of 0.3% year-over-year [5] - 'Revenue- Home Health' is projected to reach $17.29 million, reflecting a 1% increase year-over-year [5] - 'Revenue- Hospice' is expected to be $58.01 million, indicating a 6% year-over-year growth [5] Stock Performance - Shares of Addus HomeCare have decreased by 15.4% in the past month, contrasting with a 4.7% increase in the Zacks S&P 500 composite [5] - With a Zacks Rank 2 (Buy), ADUS is anticipated to outperform the overall market in the near future [5]

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Addus HomeCare (ADUS) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.Addus HomeCare is a member of the Medical sector. This group includes 1010 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, ...

JMP Securities initiated coverage on Addus HomeCare Corp ADUS, a provider of home-based personal care and clinical services.JMP analysts see Addus HomeCare as having a uniquely strong and well-established presence in personal care services across multiple states, thanks to the company's scale and experienced management team.The analyst writes that personal care is a cost-effective way to provide home-based services, especially as the U.S. faces a shortage of expensive skilled clinicians.This approach also h ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value ADUS The Nasdaq Stock Market, LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...

Financial Data and Key Metrics - Total revenue for Q3 2024 was $289.8 million, a 7% increase compared to $270.7 million in Q3 2023 [10] - Adjusted earnings per share (EPS) for Q3 2024 was $1.30, up 13% from $1.15 in Q3 2023 [10] - Adjusted EBITDA for Q3 2024 was $34.3 million, an 11.1% increase from $30.9 million in Q3 2023 [10] - Cash on hand at the end of Q3 2024 was approximately $223 million [11] - Gross margin percentage for Q3 2024 was 31.8%, slightly down from 32% in Q3 2023 [46] - Adjusted EBITDA margin for Q3 2024 was 11.8%, up from 11.4% in Q3 2023 [57] Business Segment Performance Personal Care Segment - Personal Care revenue for Q3 2024 was $215.4 million, representing 74.3% of total revenue [46] - Same-store revenue growth for Personal Care was 6.8% compared to Q3 2023 [23] - Same-store hours increased by 0.6% in Q3 2024 compared to Q3 2023 [24] - Hiring rate in Personal Care remained strong at 79 hires per business day in Q3 2024 [17] - Illinois will enact a 5.5% reimbursement rate increase for Personal Care services effective January 1, 2025, expected to generate $23 million in annualized revenue [20][35] Hospice Segment - Hospice revenue for Q3 2024 was $57.3 million, representing 19.8% of total revenue [46] - Same-store revenue growth for Hospice was 3.5% compared to Q3 2023 [25] - Average daily census increased by 2.1% compared to Q3 2023 [25] - Medicare hospice reimbursement increased by 2.9% effective October 1, 2024, expected to add $6.8 million in annualized revenue [21][40] Home Health Segment - Home Health revenue for Q3 2024 was $17 million, representing 5.9% of total revenue [46] - Same-store revenue for Home Health decreased by 1.7% compared to Q3 2023 [27] - The segment is undergoing operational changes, including standardized intake and scheduling processes, expected to improve referral conversion rates and reduce administrative costs [27] Market and Strategic Developments - The company is in the process of acquiring Gentiva Personal Care, which is expected to close in Q4 2024 and add $280 million in annualized Personal Care revenue [12][45] - The acquisition will expand the company's presence in Texas, Arkansas, California, Arizona, and add new markets in Missouri and North Carolina [13] - The company is focused on maintaining a conservative leverage position to pursue larger strategic acquisitions [11] - The divestiture of New York operations, effective October 1, 2024, will no longer be included in consolidated financial results starting Q4 2024 [36] Management Commentary on Operating Environment and Future Outlook - The company expects to complete the Medicaid re-determination process in all states by the end of Q4 2024, which should help return to target same-store Personal Care hours growth of approximately 2% [24] - Management is optimistic about the labor environment, with strong hiring trends and historically low turnover rates [17] - The company anticipates gross margin percentage to expand by approximately 40 basis points in Q4 2024 due to hospice reimbursement updates and an additional 150 basis points from the New York divestiture [47] - The company remains committed to achieving a minimum annual revenue growth target of 10% through both organic growth and acquisitions [28] Other Important Information - The company received $3.2 million in ARPA funding in Q3 2024 and utilized $2.5 million, leaving approximately $13 million in accessible funds [18] - Days Sales Outstanding (DSO) improved to 31.7 days at the end of Q3 2024, down from 36 days in Q2 2024 [60] - Net cash flow from operations in Q3 2024 was $48.5 million, including a one-time working capital benefit of $9.7 million [61] - The company amended its credit agreement, increasing the revolving credit facility from $600 million to $650 million and extending the maturity date to July 2028 [63] Q&A Session Summary Question: Margin Direction and G&A Expenses [66] - Management confirmed that gross margin is expected to increase by 190 basis points sequentially, with 150 basis points from the New York divestiture and 40 basis points from hospice reimbursement updates [66] - Adjusted G&A expenses are expected to increase by approximately 60 basis points due to the New York divestiture [56] Question: Gentiva Acquisition and Future Acquisitions [68][69] - Management is optimistic about the growth potential of the Gentiva acquisition, particularly in Texas, which represents over 80% of the acquired business [69] - The company remains open to further acquisitions, particularly in Personal Care and Home Health, and has strengthened its balance sheet to support future deals [71] Question: Organic Census Growth and Medicaid Re-determination [75][76] - The Medicaid re-determination process has slowed new client approvals, but management expects the process to be completed by the end of Q4 2024, leading to a return to target same-store hours growth of 2% [76] Question: Hospice Admissions and Growth Outlook [79][80] - Hospice admissions have declined, but management has made leadership changes and is optimistic about improving admissions trends in 2025 [80] Question: Reimbursement Environment in New States [82][83] - The reimbursement environment in Missouri is solid, while North Carolina offers a small but high-margin case management business [83] Question: Policy Proposals and Election Impact [86][87] - Management does not expect the proposed federal minimum wage increase to have a material impact on the company, as wages in Texas are already above the federal rate [87] - The company views potential Medicare expansion for Personal Care services as a positive development, though details remain unclear [88] Question: Operating Cash Flow in Q4 [92] - Management expects the $9.7 million one-time working capital benefit in Q3 to reverse in Q4, but no other significant impacts on operating cash flow are anticipated [92] Question: Value-Based Care and Gentiva Acquisition [107][108] - The Gentiva acquisition will enhance the company's ability to pursue value-based care contracts, particularly in Texas, though the revenue impact is expected to be immaterial [108] Question: Wage Inflation and Unit Cost Outlook [111][112] - Wage inflation in Personal Care has been offset by rate increases, while wage inflation in Clinical services has improved to 3%-4% [112][113] Question: Hospice Length of Stay Trends [115][116] - Hospice length of stay has stabilized post-COVID, with current levels considered normalized [116] Question: PCS Rate Environment and Election Impact [120][121] - Management expects rate increases to moderate over the next few years, with a return to historical norms of 3%-5% growth [121] Question: Gentiva Seasonality and Technology Integration [122][123] - The Gentiva acquisition is not expected to introduce significant seasonality, and the company plans to integrate its payroll system and caregiver app quickly [123] Question: Hospice Competitive Dynamics [126] - Management is optimistic about improving hospice same-store growth, driven by new sales leadership and operational changes [126] Question: Home Health Same-Store Growth [128] - Excluding markets undergoing operational changes, Home Health same-store growth would have been in the 2%-3% range [128]