Addus(US:ADUS)2024-08-06 20:05Financial 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]