Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $373.1 million, a 25.6% increase from $297.1 million in Q4 2024 [4] - Adjusted earnings per share (EPS) for Q4 2025 was $1.77, up 28.3% from $1.38 in Q4 2024 [5] - Adjusted EBITDA for Q4 2025 was $50.3 million, a 33.3% increase from $37.8 million in Q4 2024 [5][24] - For the full year 2025, total revenue was approximately $1.4 billion, a 23.2% increase from approximately $1.1 billion in 2024 [5] - Adjusted EBITDA for 2025 was $180 million, compared to $140.3 million in 2024, marking a 28.3% increase [6] Business Line Data and Key Metrics Changes - Personal care segment revenue was $284.1 million, accounting for 76.5% of total revenue in Q4 2025 [21] - Hospice care revenue was $70 million, representing 18.9% of total revenue, with a 16% year-over-year organic revenue growth [18] - Home health services accounted for $17.1 million, or 4.6% of total revenue, with a 7.54% decrease in same-store revenue compared to Q4 2024 [12][21] Market Data and Key Metrics Changes - Same-store revenue growth for personal care was 6.3% compared to Q4 2024 [9] - Average daily census for hospice increased to 3,885, up 11.9% from 3,472 in Q4 2024 [11] - Hiring trends showed 101 hires per business day in Q4 2025, increasing to 107 in early January 2026 [8] Company Strategy and Development Direction - The company aims to create geographic density and scale while focusing on the full continuum of home care [6][20] - Recent acquisitions include Gentiva, Great Lakes Home Care, Helping Hands Home Care Services, and Del Cielo Home Care, enhancing market coverage [18][20] - The company plans to pursue additional acquisitions that align with its strategy and enhance organic growth [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the value proposition for personal care services recognized by states, despite potential Medicaid changes [7] - The company anticipates continued growth opportunities in home-based care due to heightened awareness of its value [13] - Management noted that while there are uncertainties regarding future rate increases, they remain focused on compliance and operational improvements [12][60] Other Important Information - Cash flow from operations for Q4 2025 was $18.8 million, with cash on hand of approximately $81.6 million [6][28] - The company ended Q4 2025 with bank debt of $124.3 million, maintaining a net leverage of under 1x adjusted EBITDA [6] - The company received approximately $7.2 million in phase three ARPA funding from New Mexico, with additional funds expected [27] Q&A Session Summary Question: Rate backdrop in states like New Mexico and Tennessee - Management indicated a potential 4% to 5% rate increase in New Mexico is awaiting the governor's signature, which could benefit the company in the latter half of the year [32][34] Question: Margin flow-through from New Mexico rate increase - Management noted that while there isn't a mandatory pass-through rule in New Mexico, some portion of the rate increase will likely be passed to caregivers [40] Question: Hiring trends and caregiver retention - Management reported stable hiring trends with no significant difficulties in recruitment, although some urban areas face challenges [42] Question: Acquisition pipeline and opportunities - Management expressed optimism about more acquisition opportunities becoming available, particularly larger personal care assets expected mid-year [46][47] Question: Impact of technology and AI on operations - Management is exploring AI implementation in back-office processes and scheduling logistics to enhance efficiency [100]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $297.1 million, an increase of 7.5% compared to $276.4 million in Q4 2023 [20] - Adjusted earnings per share for Q4 2024 was $1.38, up 4.6% from $1.32 in Q4 2023 [20] - Adjusted EBITDA for Q4 2024 was $37.8 million, a 10.3% increase from $34.3 million in Q4 2023 [20] - For the full year 2024, total revenue was $1.2 billion, a 9.1% increase from $1.1 billion in 2023 [21] - Adjusted EBITDA for 2024 was $140.3 million, up 15.9% from $121 million in 2023 [21] Business Line Data and Key Metrics Changes - Personal care revenues for Q4 2024 were $216.9 million, accounting for 73.8% of total revenue [52] - Hospice care revenues were $59 million, representing 20.1% of total revenue [52] - Home health revenues were $17.8 million, making up 6.1% of total revenue [52] - Same store revenue growth for personal care was 5.8% in Q4 2024 compared to Q4 2023 [35] - Hospice same store revenue increased by 7.8% year-over-year [37] - Home health segment returned to positive growth with a 1.6% increase compared to Q4 2023 [39] Market Data and Key Metrics Changes - Illinois enacted a 5.5% rate increase for personal care services effective January 1, 2025, expected to contribute approximately $23 million in annualized revenue [34][47] - The company experienced solid caregiver hiring success, with personal care hiring at 76 hires per day, up from 74 hires per day in Q4 2023 [30] Company Strategy and Development Direction - The company is focused on expanding services related to home care, which is seen as valuable to both states and Congress [18] - The Gentiva acquisition is a significant part of the growth strategy, adding approximately $280 million in annualized revenues [50] - The company aims for a targeted minimum annual revenue growth of 10% despite the larger revenue base [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential impact of Medicaid program changes, believing that their services reduce overall costs to state Medicaid programs [16][19] - The company is well-positioned to handle potential changes in Medicaid funding due to its low-cost provider status [99] - Management anticipates continued growth in personal care services, aiming for a revenue increase of 3% to 5% in 2025 [72] Other Important Information - The company had cash on hand of approximately $100 million as of the end of 2024 [22] - A one-time write-off of approximately $4.9 million was taken in Q4 2024 related to excess corporate office space [29] - The company maintains a conservative leverage position at just under one times Adjusted EBITDA, allowing flexibility for strategic acquisitions [23] Q&A Session Summary Question: Average revenue per hour in Q4 and its impact - The average revenue per hour is expected to be slightly down due to the Gentiva deal and the lower reimbursement rate in Texas [67] Question: Organic volume growth in personal care - Organic volume growth in personal care was slightly up, with expectations to reach the higher end of the 3% to 5% growth range in 2025 [72][74] Question: Impact of work requirements on business - The majority of clients served are elderly and disabled, so work requirements would have negligible direct effects, potentially increasing caregiver availability [83] Question: Integration of Gentiva and its impact on cash flow - The integration of Gentiva is progressing smoothly, with no significant impact on cash flow conversion expected [119] Question: Expected margin decline from Q4 to Q1 - A 200 basis point margin decline is anticipated, primarily due to the mix shift from Gentiva and annual resets of payroll taxes [54][109]