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]

Addus HomeCare (ADUS) reported $289.79 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 7%. EPS of $1.30 for the same period compares to $1.15 a year ago.The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $288.89 million. With the consensus EPS estimate being $1.29, the EPS surprise was +0.78%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Addus HomeCare (ADUS) came out with quarterly earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.78%. A quarter ago, it was expected that this provider of home-based personal care, nursing and rehabilitative therapy services would post earnings of $1.20 per share when it actually produced earnings of $1.35, d ...

Exhibit 99.1 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 THIRD QUARTER 2024 FINANCIAL RESULTS Frisco, Texas (November 4, 2024) – Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the third quarter and nine months ended September 30, 2024. Third Q ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Addus HomeCare (ADUS) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are better ...

The Zacks Medical - Outpatient and Home Healthcare industry has been witnessing a rapid shift toward digital healthcare treatment. In the past few years, there has been a significant rise in demand for telemedicine-focused online medical and artificial intelligence (AI)-powered technology services. Post-pandemic, many healthcare companies that were traditionally not technology-based transformed to survive in the market. Per a report by Precedence Research, the global home healthcare market was valued at $37 ...

Core Viewpoint - Addus HomeCare (ADUS) has received a Zacks Rank upgrade to 2 (Buy), indicating a positive outlook on its earnings potential, which is expected to positively influence its stock price [1][2]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Addus HomeCare's earnings per share for the fiscal year ending December 2024 is projected at $5.22, reflecting a year-over-year increase of 14% [5]. - Over the past three months, analysts have raised their earnings estimates for Addus HomeCare by 5%, indicating a positive trend in earnings revisions [5]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, as institutional investors adjust their valuations based on these estimates, leading to significant buying or selling activity [3]. - Rising earnings estimates and the subsequent upgrade in Zacks Rank suggest an improvement in Addus HomeCare's underlying business, which could lead to higher stock prices as investors respond to this trend [3]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4]. - Addus HomeCare's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [7].

Financial Performance - For the three months ended June 30, 2024, net service revenues increased to $286.9 million, up 10.4% from $260.0 million in the same period of 2023[20] - Gross profit for the three months ended June 30, 2024, was $93.2 million, representing a gross margin of 32.5%, compared to $82.3 million and a margin of 31.7% in 2023[20] - Operating income for the three months ended June 30, 2024, rose to $26.2 million, a 21.5% increase from $21.5 million in the prior year[20] - Net income for the three months ended June 30, 2024, was $18.1 million, compared to $14.9 million in the same period of 2023, reflecting a year-over-year growth of 21.5%[20] - Basic income per share for the three months ended June 30, 2024, was $1.12, up from $0.93 in the prior year[20] - Net income for the six months ended June 30, 2024, increased to $33.9 million, up from $27.5 million in the same period of 2023, representing a growth of 23%[31] - Total net service revenues for the six months ended June 30, 2024, increased to $567.7 million, compared to $511.6 million for the same period in 2023[137] - Operating income increased by 24.1% to $49.8 million for the six months ended June 30, 2024, compared to $40.1 million for the same period in 2023[137] - The company achieved a net income of $25 million in Q2 2024, which is a 10% increase compared to the same quarter last year[194] Assets and Liabilities - Total assets as of June 30, 2024, were $1.12 billion, an increase from $1.02 billion as of December 31, 2023[18] - Total liabilities decreased to $194.9 million as of June 30, 2024, down from $317.7 million at the end of 2023[18] - Stockholders' equity increased to $921.7 million as of June 30, 2024, compared to $706.7 million at the end of 2023[18] - The company had no outstanding borrowings on its credit facility as of June 30, 2024, indicating a strong liquidity position[180] Cash Flow - Cash provided by operating activities for the six months ended June 30, 2024, was $57.5 million, compared to $60.4 million in 2023, showing a decrease of 4%[31] - Cash at the end of the period increased to $173.3 million as of June 30, 2024, compared to $84.2 million at the end of June 30, 2023[31] - Net cash provided by operating activities for the six months ended June 30, 2024, was $57.5 million, a decrease of 4.8% from $60.4 million for the same period in 2023[172] - Net cash provided by financing activities for the six months ended June 30, 2024, was $49.2 million, a significant increase from a net cash used of $53.5 million in the same period in 2023[174] Acquisitions and Investments - The company completed a public offering on June 28, 2024, raising approximately $175.6 million in net proceeds, which will be used for debt repayment and potential acquisitions[43] - The company entered into an agreement to acquire Gentiva's personal care operations for approximately $350 million, expected to close after regulatory approvals[45] - The company completed the acquisition of Tennessee Quality Care for approximately $111.2 million on August 1, 2023, expanding its hospice and home health services in Tennessee[101] - The company expects to fund the Gentiva acquisition through its existing revolving credit facility and a portion of the net proceeds from the public offering[45] Revenue Segments - Total net service revenues for the Personal Care segment reached $420,820,000 for the six months ended June 30, 2024, representing a 8.3% increase from $388,346,000 in the same period of 2023[85] - The Hospice segment generated net service revenues of $111,893,000 for the six months ended June 30, 2024, compared to $99,293,000 in the prior year, reflecting a 12.9% growth[88] - Home Health segment net service revenues increased to $34,955,000 for the six months ended June 30, 2024, up from $23,941,000 in 2023, marking a 46.0% rise[89] - The personal care segment's net service revenues reached $212.8 million for the three months ended June 30, 2024, compared to $198.3 million in 2023, indicating an increase of 7.4%[100] - The hospice segment generated net service revenues of $56.0 million for the three months ended June 30, 2024, compared to $50.2 million in 2023, reflecting a year-over-year increase of 11.5%[100] - The home health segment reported net service revenues of $18.1 million for the three months ended June 30, 2024, significantly up from $11.5 million in 2023, marking a growth of 57.9%[100] Operational Efficiency - Average billable hours per census per month increased to 67.7 for the three months ended June 30, 2024, from 65.3 in 2023, indicating improved operational efficiency[143] - The company is facing significant competition for caregivers due to a tight labor market and inflationary pressures, which may impact service delivery[105] - New admissions increased by 43.4% to 4,933 in Q2 2024 compared to 3,439 in Q2 2023[156] - Total volume, including admissions and recertifications, rose by 63.1% to 8,210 in Q2 2024 from 5,034 in Q2 2023[156] General and Administrative Expenses - General and administrative expenses for the six months ended June 30, 2024, were $35.0 million, compared to $31.7 million for the same period in 2023[84] - General and administrative expenses rose to $63.6 million for the three months ended June 30, 2024, primarily due to the Tennessee Quality Care acquisition, resulting in increased employee wages and acquisition-related expenses[134] - General and administrative expenses rose to $124.6 million for the six months ended June 30, 2024, compared to $113.8 million in 2023, primarily due to the acquisition of Tennessee Quality Care[139] Taxation - The effective income tax rates for the three months ended June 30, 2024, and 2023 were 26.3% and 23.8%, respectively, reflecting an increase due to state taxes and nondeductible compensation[77] - The effective income tax rate increased to 26.0% for the six months ended June 30, 2024, compared to 23.0% in 2023, due to lower excess tax benefits and federal employment tax credits[140] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance service delivery and operational efficiency[20] - The company plans to divest its New York personal care operations due to changes in the state's fiscal intermediary program, which may impact future revenue streams[91] - The company has provided guidance for Q3 2024, expecting revenue to be between $210 million and $220 million, reflecting a growth rate of 10-12%[194]