Addus(US:ADUS)2020-08-10 20:46Financial Performance - For the three months ended June 30, 2020, net service revenues were $184.6 million, compared to $148.9 million for the same period in 2019, representing a year-over-year increase of 24%[103] - For the six months ended June 30, 2020, net service revenues were $374.8 million, compared to $287.4 million for the same period in 2019, reflecting a growth of 30%[103] - Net service revenues increased by 23.9% to $184.6 million for the three months ended June 30, 2020, compared to $148.9 million for the same period in 2019[149] - Net service revenues increased by 30.4% to $374.8 million for the six months ended June 30, 2020, compared to $287.4 million for the same period in 2019[156] - The company reported a 19.4% increase in net service revenues for the six months ended June 30, 2020, compared to the same period in 2019[166] Revenue Sources - Managed care revenues accounted for 38.6% of total revenue for the three months ended June 30, 2020, up from 36.8% in the same period of 2019[101] - Medicare accounted for 92.8% of the hospice segment net service revenues for the three months ended June 30, 2020[121] - The Illinois Department on Aging accounted for 23.2% of the company's net service revenues for the three months ended June 30, 2020[128] - Net service revenues from state, local, and other governmental programs accounted for 50.0% of net service revenues for the three months ended June 30, 2020[165] - Managed care organizations accounted for 44.3% of net service revenues for the three months ended June 30, 2020, up from 39.2% in the same period of 2019[165] Acquisitions - The company completed the acquisition of VIP for approximately $29.9 million, expanding personal care services in New York[117] - The acquisition of Alliance for approximately $23.5 million enhanced operations in New Mexico, while Foremost was acquired for $1.4 million to support growth in New York City[118] - The acquisition of Hospice Partners for approximately $135.6 million expanded hospice operations across 21 locations in multiple states[119] - The company completed the acquisition of A Plus for approximately $12.2 million, expanding personal care services in Montana[122] - The company is pursuing acquisition opportunities with additional caution due to COVID-19 considerations[122] COVID-19 Impact - COVID-19 related costs were approximately $2.0 million for the three months ended June 30, 2020, mostly offset by temporary rate increases of $1.7 million from certain payors[107] - The COVID-19 pandemic has created opportunities for recruitment of new caregivers due to adverse impacts on other labor-intensive industries[108] - The company cannot predict the long-term impact of the COVID-19 pandemic on its business, but it does not expect a material adverse effect on operations at this time[114] - The company implemented new procedures to reduce COVID-19 transmission risks, including a new screening process and expanded use of personal protective equipment[107] - The company is assessing the potential impact of the CARES Act and other COVID-19 related laws on its business and financial condition[142] Financial Position - As of June 30, 2020, the company had $158.5 million in cash and $223.5 million of available, unused committed capacity under its credit facility[111] - The total net leverage ratio was zero as of June 30, 2020, well below the required maximum of 3.75:1.00[111] - Cash provided by operating activities was $50.9 million for the six months ended June 30, 2020, compared to a cash used of $4.1 million for the same period in 2019[198] - Outstanding accounts receivable decreased by $23.3 million as of June 30, 2020, compared to December 31, 2019, with gross accounts receivable at approximately $126.4 million[201] - Days sales outstanding (DSO) improved to 62 days at June 30, 2020, down from 72 days at December 31, 2019[202] Expenses and Profitability - General and administrative expenses rose to $42.5 million for the three months ended June 30, 2020, compared to $29.8 million for the same period in 2019, representing an increase of 42.6%[151] - General and administrative expenses increased to $84.7 million for the six months ended June 30, 2020, compared to $59.0 million for the same period in 2019, an increase of 43.6%[158] - Gross profit as a percentage of net service revenues increased to 29.8% for the three months ended June 30, 2020, from 26.7% for the same period in 2019[150] - Net income for the three months ended June 30, 2020, was $6.9 million, a 30.5% increase from $5.3 million for the same period in 2019[149] - Net income for the six months ended June 30, 2020, was $15.6 million, a 62.3% increase from $9.6 million for the same period in 2019[156] Segment Performance - For the three months ended June 30, 2020, total hospice segment net service revenues were $24.5 million, a significant increase from $8.4 million in the same period of 2019[121] - The average daily census for the hospice segment increased by 182.5% to 1,339 for the three months ended June 30, 2020, compared to 474 in 2019[176] - The hospice segment's operating income was $7.3 million for the three months ended June 30, 2020, compared to $2.6 million in 2019[180] - Home health segment net service revenues increased by $0.8 million and $2.4 million for the three and six months ended June 30, 2020, compared to the same periods in 2019[182] - Gross profit as a percentage of net service revenues for the hospice segment was 55.5% for the three months ended June 30, 2020, up from 48.8% in 2019, primarily due to a decrease in direct service supply costs[178]