Addus(ADUS) - 2024 Q1 - Quarterly Results

First Quarter 2024 Financial Results First Quarter 2024 Highlights Addus HomeCare reported strong Q1 2024 financial results, with net service revenues up 11.6% and Adjusted EBITDA up 24.6% Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Service Revenues | $280.7M | $251.6M | +11.6% | | Net Income | $15.8M | $12.7M | +24.4% | | Net Income per Diluted Share | $0.97 | $0.78 | +24.4% | | Adjusted EBITDA | $32.4M | $26.0M | +24.6% | | Adjusted Net Income per Diluted Share | $1.21 | $0.97 | +24.7% | | Cash Flow from Operations | $38.7M | $18.8M | +105.9% | Management Commentary and Segment Performance Management attributed strong performance to solid execution and demand, with Personal Care driving growth and Hospice improving - The Personal Care segment, representing 74.1% of the business, saw a 9.3% same-store revenue increase year-over-year, driven by steady volume and rate increases in certain states[4] - The company has experienced a more stable labor environment and improved ability to hire and retain caregivers due to investments in efficient hiring and scheduling systems[4] - The Hospice segment, now 20.0% of the business, achieved 5.8% organic revenue growth, benefiting from a 3.1% rate increase and the acquisition of Tennessee Quality Care, with improved volume trends[5] Financial Condition and Outlook Cash, Liquidity, and Outlook The company maintained strong liquidity with significant cash and available credit, prioritizing accretive acquisitions for strategic growth Liquidity Position as of March 31, 2024 | Metric | Amount | | :--- | :--- | | Cash | $76.7M | | Bank Debt | $101.4M | | Revolving Credit Facility Capacity | $486.9M | | Availability under Credit Facility | $377.5M | - Net cash from operating activities was $38.7 million for Q1 2024, enabling a $25.0 million reduction of the revolver balance[6][7] - The company's primary strategic objective is to pursue accretive acquisitions that enhance personal care services, build scale, or add complementary clinical services, with a focus on markets that support value-based contracting[7] Financial Statements Condensed Consolidated Statements of Income Addus reported Q1 2024 net service revenues of $280.7 million, with gross profit and net income showing increases Q1 2024 Income Statement Highlights (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net service revenues | $280,746 | $251,599 | | Gross profit | $88,177 | $78,415 | | Operating income | $23,645 | $18,608 | | Net income | $15,830 | $12,675 | | Net income per diluted share | $0.97 | $0.78 | Condensed Consolidated Balance Sheets As of March 31, 2024, total assets reached $1.014 billion, with increased equity and stable liabilities Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total current assets | $191,847 | $209,210 | | Total assets | $1,014,000 | $931,083 | | Total liabilities | $288,857 | $282,197 | | Total stockholders' equity | $725,143 | $648,886 | Net Service Revenue by Segment In Q1 2024, Personal Care was the largest segment at $208.0 million, with all segments showing revenue growth Net Service Revenue by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Personal Care | $208,003 | $190,032 | | Hospice | $55,863 | $49,082 | | Home Health | $16,880 | $12,485 | | Total Revenue | $280,746 | $251,599 | Key Statistical and Financial Data Q1 2024 saw Personal Care revenue per hour increase, Hospice organic revenue grow, and Home Health organic revenue decline Q1 2024 Key Segment Metrics (vs. Q1 2023) | Segment & Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Personal Care | | | | Revenue per billable hour | $27.35 | $24.98 | | Organic Revenue Growth | 9.3% | 11.4% | | Hospice | | | | Patient days | 305,630 | 287,551 | | Revenue per patient day | $182.78 | $176.22 | | Organic Revenue Growth | 5.8% | 2.6% | | Home Health | | | | Total Volume | 8,055 | 5,442 | | Organic Revenue Growth | (15.1)% | 13.8% | Reconciliation of Non-GAAP Financial Measures The company provides non-GAAP reconciliations, detailing adjustments from Net Income to Adjusted EBITDA and Adjusted Net Income Reconciliation of Net Income to Adjusted EBITDA (Q1 2024, in thousands) | Description | Amount | | :--- | :--- | | Net income | $15,830 | | (+) Interest expense, net | $2,335 | | (+) Income tax expense | $5,480 | | (+) Depreciation and amortization | $3,469 | | (+) Acquisition expenses | $2,711 | | (+) Stock-based compensation expense | $2,618 | | Adjusted EBITDA | $32,443 | Reconciliation of Net Income to Adjusted Net Income (Q1 2024, in thousands) | Description | Amount | | :--- | :--- | | Net income | $15,830 | | (+) Acquisition expenses | $2,711 | | (+) Stock-based compensation expense | $2,618 | | (-) Tax effect | ($1,370) | | Adjusted Net Income | $19,789 |