Addus(ADUS) - 2025 Q2 - Quarterly Results

Financial and Operational Highlights Q2 2025 Performance Overview The company reported significant Q2 2025 year-over-year growth in revenue, net income, and adjusted EBITDA Q2 2025 Key Financial Metrics (Year-over-Year) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $349.4M | $286.9M | +21.8% | | Net Income | $22.1M | $18.1M | +22.1% | | Net Income per Diluted Share | $1.20 | $1.10 | +9.1% | | Adjusted EBITDA | $43.9M | $35.3M | +24.5% | | Adjusted Net Income per Diluted Share | $1.49 | $1.35 | +10.4% | H1 2025 Key Financial Metrics (Year-over-Year) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $687.2M | $567.7M | +21.0% | | Net Income | $43.3M | $33.9M | +27.7% | | Net Income per Diluted Share | $2.36 | $2.06 | +14.6% | | Adjusted EBITDA | $84.5M | $67.7M | +24.7% | | Adjusted Net Income per Diluted Share | $2.91 | $2.56 | +13.7% | - The company generated $22.5 million in cash flow from operations during the second quarter of 2025[6] Management Commentary and Strategy CEO's Remarks on Performance The CEO attributed strong Q2 revenue growth to organic performance and acquisitions while emphasizing technology investments - Financial results reflect solid organic growth and the inclusion of revenue from the personal care operations of Gentiva, acquired on December 2, 2024[5] - The company is experiencing robust demand for its services, capitalizing on the growing recognition of the value and cost-effectiveness of home-based care[5] - Addus continues to invest in systems and tools, such as a more efficient care scheduling platform, to support caregiver hiring and retention[7] Business Segment Performance The Personal Care and Hospice segments drove strong organic growth, while the Home Health segment remains a key clinical partner Segment Contribution and Organic Growth (Q2 2025) | Segment | % of Total Business | Organic Revenue Growth (YoY) | | :--- | :--- | :--- | | Personal Care | 77.0% | +7.4% | | Hospice Care | 17.8% | +10.0% | | Home Health | 5.2% | (6.0)% | - Personal Care growth was driven by increased volume and supportive state rate increases, particularly in Illinois[7] - The Hospice segment is showing improving trends in average daily census, patient days, and revenue per patient day compared to the prior year[8] Acquisition Activity The company acquired Helping Hands Home Care Service for $21.3 million, expanding its presence in western Pennsylvania - The company acquired Helping Hands Home Care Service, Inc. on August 1, 2025, expanding its operations in western Pennsylvania[9] Helping Hands Acquisition Details | Metric | Value | | :--- | :--- | | Purchase Price | $21.3 million | | Annualized Revenues | ~$16.7 million | | Employees | >500 | | Patients Served Daily | ~600 | - This acquisition supports the company's strategy of offering a continuum of care, including personal care, home health, and hospice services, within the states it operates[10] Financial Position and Outlook The company maintains a strong balance sheet and liquidity, positioning it for future strategic acquisitions Liquidity Position (as of June 30, 2025) | Item | Amount | | :--- | :--- | | Cash | $91.2 million | | Bank Debt | $173.0 million | | Revolving Credit Facility Availability | $454.6 million | - The company prioritizes deploying capital for strategic acquisitions while also investing in technologies to support operations[12] - Management expressed confidence in the company's outlook for 2025, citing a proven, scalable operating model and a dedicated team of caregivers[13] Financial Statements Condensed Consolidated Statements of Income The Q2 2025 income statement reflects a 21.8% increase in net service revenues and growth in net income Q2 2025 vs Q2 2024 Income Statement (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net service revenues | $349,443 | $286,922 | | Gross profit | $113,877 | $93,158 | | Operating income | $32,887 | $26,181 | | Net income | $22,052 | $18,079 | | Net income per diluted share | $1.20 | $1.10 | Condensed Consolidated Balance Sheets Total assets grew to $1.41 billion as of June 30, 2025, driven primarily by goodwill from acquisitions Balance Sheet Summary (in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total current assets | $263,045 | $294,988 | | Goodwill | $969,824 | $663,851 | | Total assets | $1,408,931 | $1,116,554 | | Total current liabilities | $151,383 | $147,532 | | Long-term debt, net | $169,059 | $ - | | Total liabilities | $387,077 | $194,899 | | Total stockholders' equity | $1,021,854 | $921,655 | Net Service Revenue by Segment Personal Care remains the largest segment, contributing $269.2 million in revenue for Q2 2025 Net Service Revenue by Segment (Q2, in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Personal Care | $269,183 | $212,817 | | Hospice | $62,212 | $56,030 | | Home Health | $18,048 | $18,075 | | Total Revenue | $349,443 | $286,922 | Key Statistical and Financial Data Operational metrics show strong organic growth in Personal Care and Hospice, while Home Health volumes declined Q2 2025 vs Q2 2024 Segment Operating Metrics | Segment / Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Personal Care | | | | Average billable census total | 50,404 | 37,993 | | Organic Revenue Growth | 7.4% | 8.8% | | Hospice | | | | Average daily census | 3,720 | 3,477 | | Organic Revenue Growth | 10.0% | 6.3% | | Home Health | | | | New Admissions | 4,568 | 4,933 | | Organic Revenue Growth | (6.0)% | 1.6% | - In Q2 2025, the primary payors for Personal Care were state/local programs (51.4%) and managed care organizations (45.3%); for Hospice and Home Health, Medicare was the dominant payor[28] Non-GAAP Financial Measures Reconciliation Reconciliation Tables The company reconciles GAAP Net Income to non-GAAP measures like Adjusted EBITDA and Adjusted Net Income Q2 2025 Reconciliation of Adjusted EBITDA to Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net income | $22,052 | | Interest expense, net | $2,942 | | Income tax expense | $7,893 | | Depreciation and amortization | $3,913 | | Acquisition expenses | $2,708 | | Stock-based compensation expense | $4,421 | | Adjusted EBITDA | $43,928 | Q2 2025 Reconciliation of Adjusted Net Income to Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net income | $22,052 | | Acquisition expenses | $2,708 | | Stock-based compensation expense | $4,421 | | Tax Effect | ($1,872) | | Adjusted Net Income | $27,308 | - Non-GAAP adjustments are primarily made for acquisition expenses, stock-based compensation, and gains/losses on asset sales to provide a clearer comparison of business operations[15]