Addus(ADUS)2025-05-06 20:30Financial Performance - Total net service revenue for Q1 2025 was $337.7 million, a 20.3% increase from $280.7 million in Q1 2024[78] - Net income for Q1 2025 was $21.2 million, compared to $15.8 million in Q1 2024, reflecting a 34.9% increase[78] - Net service revenues increased by 20.3% to $337.7 million for the three months ended March 31, 2025, compared to $280.7 million for the same period in 2024[112] - Gross profit margin increased to 31.9% for the three months ended March 31, 2025, compared to 31.4% for the same period in 2024[113] - General and administrative expenses rose to $73.2 million for the three months ended March 31, 2025, primarily due to the Gentiva Acquisition, but as a percentage of net service revenues decreased to 21.7%[114] - Interest expense increased to $4.0 million for the three months ended March 31, 2025, from $2.8 million for the same period in 2024, due to higher average outstanding borrowings[115] - The effective income tax rate was 21.4% for the three months ended March 31, 2025, down from 25.7% for the same period in 2024, primarily due to a higher excess tax benefit[116] Segment Performance - The personal care segment generated $258.3 million in revenue for Q1 2025, up 24.2% from $208.0 million in Q1 2024[78] - Revenue growth in the personal care segment was $50.3 million, in the hospice segment was $5.6 million, and in the home health segment was $1.1 million during the same period[112] - Net service revenues for the Personal Care Segment increased by 24.2% to $258,286, compared to $208,003 in the same period last year[117] - Hospice Segment net service revenues increased by 10.0% to $61,437, up from $55,863 year-over-year[126] - Home Health Segment net service revenues grew by 6.5% to $17,985, compared to $16,880 in the previous year[133] Revenue Sources - Managed care organizations accounted for 35.6% of net service revenues in Q1 2025, slightly down from 34.2% in Q1 2024[76] - The Illinois Department on Aging accounted for 18.5% of net service revenues in Q1 2025, down from 20.8% in Q1 2024[89] - The personal care segment's revenue from state, local, and other governmental programs was $132.9 million, representing 51.5% of segment revenues in Q1 2025[87] - The hospice segment's revenue from Medicare was $56.8 million, accounting for 92.4% of hospice segment revenues in Q1 2025[88] - Medicare accounted for 92.4% of net service revenues in the Hospice Segment for the three months ended March 31, 2025[130] - Home health segment net service revenues from Medicare accounted for 69.9% in Q1 2025, compared to 69.1% in Q1 2024[136] Operational Metrics - The company served approximately 72,000 individuals in Q1 2025, an increase from 57,000 in Q1 2024[78] - Average daily census in the Hospice Segment increased by 4.6% to 3,515, compared to 3,359 in the same period last year[126] - Revenue per patient day in the Hospice Segment rose by 6.3% to $194.23 from $182.78 year-over-year[126] - Days sales outstanding (DSO) improved to 37 days as of March 31, 2025, down from 39 days at December 31, 2024[154] Acquisitions and Investments - The company completed the acquisition of Gentiva for approximately $353.6 million, expanding its services in multiple states[81] - The company used $3.4 million in cash for acquisitions during Q1 2025 and repaid $20.0 million under its revolving credit facility[141] Cost and Efficiency - Gross profit as a percentage of net service revenues rose to 40.0% in Q1 2025 from 34.4% in Q1 2024[138] - General and administrative expenses as a percentage of net service revenues decreased to 23.2% in Q1 2025 from 26.9% in Q1 2024, reflecting more efficient operations[139] - Gross profit margin for the Personal Care Segment improved to 27.6% from 26.7%, attributed to lower payroll and benefits expenses[124] - Gross profit margin for the Hospice Segment decreased to 47.5% from 48.1%, primarily due to rising employee costs[131] Regulatory Changes - The Illinois Medicaid rate for in-home care services increased to $29.63 per hour effective January 1, 2025[91] - The per-beneficiary cap amount for Medicare reimbursement was updated to $34,465.34 for federal fiscal year 2025[95] - CMS increased hospice payment rates by 2.9% effective October 1, 2024, reflecting a 3.4% market basket increase[94] - Medicare payments to home health agencies are estimated to increase by 0.5% for calendar year 2025[97] - The Home Health Value-Based Purchasing Model allows for payment adjustments of up to 5% based on performance against quality measures[98] Financial Position - Cash balances were $97.0 million as of March 31, 2025, down from $98.9 million at December 31, 2024[140] - Outstanding accounts receivable increased by $11.7 million as of March 31, 2025, compared to December 31, 2024[153] - The company had $203.0 million in outstanding borrowings on its credit facility, all subject to variable interest rates[158] - If variable interest rates increased by 100 basis points, net income would decrease by $0.4 million, or $0.02 per diluted share[158]