ADUS Addus HomeCare Corp

Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

• Net Service Revenues Grow 7.5% to $297.1 Million
• Net Income of $19.5 Million, or $1.07 per Diluted Share
• Adjusted Net Income per Diluted Share Increases 4.6% year-over-year to $1.38
• Adjusted EBITDA Increases 10.3% year-over-year to $37.8 Million
• Cash Flow from Operations of $10.4 Million
• Completed acquisition of Gentiva personal care operations

Overview

Net service revenues were $297.1 million for the fourth quarter of 2024, a 7.5% increase compared with $276.4 million for the fourth quarter of 2023. Net income was $19.5 million for the fourth quarter of 2024, compared with $19.6 million for the fourth quarter of 2023, while net income per diluted share was $1.07 compared with $1.20 for the same period a year ago. Adjusted EBITDA increased 10.3% to $37.8 million for the fourth quarter of 2024 from $34.3 million for the fourth quarter of 2023. Adjusted net income was $25.2 million for the fourth quarter of 2024 compared with $21.6 million for the prior-year period, while adjusted net income per diluted share was $1.38 compared with $1.32 for the fourth quarter of 2023. Adjusted net income per diluted share for the fourth quarter of 2024 excludes gain on sale of assets of ($0.15), impact of lease impairment of $0.20, impact of retroactive New York rate increase of ($0.14), acquisition expenses of $0.29 and stock-based compensation expense of $0.11 (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)

For the full year 2024, net service revenues increased 9.1% to $1.15 billion from $1.06 billion for the prior-year period. Net income was $73.6 million for 2024 compared with $62.5 million for 2023, and net income per diluted share was $4.23 compared with $3.83 per diluted share. Adjusted EBITDA increased 15.9% to $140.3 million for 2024 from $121.0 million for 2023. Adjusted net income was $91.4 million for 2024 compared with $74.8 million for 2023, while adjusted net income per diluted share was $5.26 compared with $4.58 for the prior-year period.

Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter financial and operating performance marked a strong finish to another successful year for Addus. We achieved top-line revenue growth of 7.5%, and adjusted EBITDA was 10.3% higher for the fourth quarter of 2024 compared with the same period last year. For the year, revenues were up 9.1% to reach $1.15 billion, a new annual high for Addus. These results reflect robust demand for our home-based care services and our ability to meet this demand with our proven operating model across the care continuum.

“Our personal care services have been the key driver of our business, accounting for 74.1% of our revenue for the fourth quarter. We achieved a 5.8% organic revenue growth rate in personal care over the fourth quarter last year, and our annual organic growth was 7.7%, reflecting both higher volumes and favorable reimbursement trends. Results for the fourth quarter included one month from our acquisition of the personal care operations of Gentiva, which closed on December 2, 2024. The consolidated financial results for the fourth quarter excluded the Company’s operations in New York, in connection with our previously announced agreement with HCS-Girling to divest the Company’s New York personal care operations and exit the state.

“Our hospice services accounted for 19.9% of our business with solid organic revenue growth of 7.8% over the fourth quarter last year. We are pleased with the steady improvement in average daily census, patient days and revenue per patient day compared with the same period last year. We implemented changes to our sales leadership late in the third quarter which we believe will result in continued improvement in admission volumes. Our home health services, which is our smallest business segment, accounted for 6.0% of total revenue for the fourth quarter,” added Allison.

Cash and Liquidity

As of December 31, 2024, the Company had cash of $98.9 million and bank debt of $223.0 million, with capacity and availability under its revolving credit facility of $577.7 million and $346.6 million, respectively. Net cash provided by operating activities was $10.4 million for the fourth quarter of 2024, and $116.4 million for the full year 2024, inclusive of a net $2.4 million in ARPA funds utilization and $5.5 million in ARPA funds proceeds, respectively.

Allison continued, “We are fortunate to have the financial flexibility to invest in our business and pursue our strategic growth initiatives. Acquisitions continue to be an important part of our growth strategy, allowing us to expand our coverage capabilities and build scale in strategic markets. The Gentiva personal care operations represent the largest acquisition in our history, adding approximately $280 million in annualized revenues and significantly expanding our market coverage in seven states, including Arizona, Arkansas, California, and Tennessee, as well as Texas, Missouri, and North Carolina, which are new personal care markets for Addus. Notably, we are now the largest provider of personal care services in the state of Texas and the state of Arkansas. Our respective teams have done an exceptional job in planning for the operational changes associated with this acquisition, and we are pleased that the integration process is on schedule as we continue to provide quality home care services to clients of those operations.

“We are optimistic that we will see additional acquisition opportunities in 2025. We will maintain our disciplined approach to acquisitions by identifying prospects that are a good strategic fit for Addus, and our primary focus will be on markets where we can leverage our personal care network and add clinical services. We believe having three levels of care provides a distinct competitive advantage for Addus in our markets and benefits the clients we serve and strengthens our ability to negotiate more effectively with payers.

“We are extremely proud of the important work we are doing and our ability to execute our strategy with positive results. Addus has a strong value proposition that meets the growing demand for home-based care. We have significantly enhanced our market position in 2024 through both organic growth and strategic acquisitions, and we are well positioned for continued growth. We are especially grateful for our dedicated team of caregivers, who support our mission and continue to provide outstanding care and support for a growing number of patients and clients in the home. Working together, we look forward to the opportunities ahead for Addus in 2025 as we extend our market reach and deliver greater value to our shareholders,” said Allison.

Non-GAAP Financial Measures

The information provided in this release includes adjusted net income, adjusted EBITDA, adjusted net income per diluted share and adjusted net service revenue, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition expense, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, impairment of operating lease assets, retroactive rate increases from New York and the retroactive impact from collective bargaining negotiations. The Company defines adjusted EBITDA as earnings before net interest expense, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, impairment of operating lease assets, retroactive rate increases from New York and the retroactive impact from collective bargaining negotiations. The Company defines adjusted net income per diluted share as net income per share, adjusted for acquisition expense, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, impairment of operating lease assets, retroactive rate increases from New York and the retroactive impact from collective bargaining negotiations. The Company defines adjusted net service revenues as revenue adjusted for the closure of certain sites. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income, a reconciliation of adjusted diluted net income per share to net income per share, and a reconciliation of adjusted net service revenues to net service revenues, in each case, the most directly comparable GAAP measure. Management believes that adjusted net income, adjusted EBITDA, adjusted diluted net income per share, and adjusted net service revenues are useful to investors, management and others in evaluating the Company’s operating performance, to provide investors with insight and consistency in the Company’s financial reporting and to present a basis for comparison of the Company’s business operations among periods, and to facilitate comparison with the results of the Company’s peers.

Conference Call

Addus will host a conference call on Tuesday, February 25, 2025, at 9:00 a.m. Eastern time. To access the live call, dial (833) 629-0620 (international dial-in number is (412) 317-1805) and ask to join the Addus HomeCare earnings call. A telephonic replay of the conference call will be available through midnight on March 4, 2025, by dialing (877) 344-7529 (international dial-in number is (412) 317-0088) and entering pass code 3644763.

A live broadcast of Addus HomeCare’s conference call will be available under the Investor Relations section of the Company’s website: www.addus.com. An online replay will also be available on the Company’s website for one month, beginning approximately two hours following the conclusion of the live broadcast.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as “preliminary,” “continue,” “expect,” and similar expressions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including discretionary determinations by government officials, the consummation and integration of acquisitions, transition to managed care providers, our ability to successfully execute our growth strategy, unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare’s relationships with referral sources, increased competition for Addus HomeCare’s services, changes in the interpretation of government regulations, the uncertainty regarding the outcome of discussions with managed care organizations, changes in tax rates, the impact of adverse weather, higher than anticipated costs, lower than anticipated cost savings, estimation inaccuracies in future revenues, margins, earnings and growth, whether any anticipated receipt of payments will materialize, any security breaches, cyber-attacks, loss of data or cybersecurity threats or incidents, and other risks set forth in the Risk Factors section in Addus HomeCare’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2024, which is available at www.sec.gov. The financial information described herein and the periods to which they relate are preliminary estimates that are subject to change and finalization. There is no assurance that the final amounts and adjustments will not differ materially from the amounts described above, or that additional adjustments will not be identified, the impact of which may be material. Addus HomeCare undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties, and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. (Unaudited tables and notes follow).

About Addus HomeCare

Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state, and local governmental agencies, managed care organizations, commercial insurers, and private individuals. Addus HomeCare currently provides home care services to approximately 62,000 consumers through 257 locations across 23 states. For more information, please visit www.addus.com.

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(amounts and shares in thousands, except per share data)

(Unaudited)

  Income Statement Information:

For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

  Net service revenues

$

297,144

 

$

276,351

 

$

1,154,599

 

$

1,058,651

 

Cost of service revenues

 

195,662

 

 

183,938

 

 

779,578

 

 

718,775

 

  Gross profit

 

101,482

 

 

92,413

 

 

375,021

 

 

339,876

 

 

34.2

%

 

33.4

%

 

32.5

%

 

32.1

%

General and administrative expenses

 

71,356

 

 

60,766

 

 

258,800

 

 

234,794

 

Depreciation and amortization

 

3,214

 

 

3,677

 

 

13,530

 

 

14,126

 

Total operating expenses

 

74,570

 

 

64,443

 

 

272,330

 

 

248,920

 

  Operating income

 

26,912

 

 

27,970

 

 

102,691

 

 

90,956

 

  Total interest expense, net

 

698

 

 

2,616

 

 

3,338

 

 

9,630

 

  Income before income taxes

 

26,214

 

 

25,354

 

 

99,353

 

 

81,326

 

Income tax expense

 

6,688

 

 

5,776

 

 

25,755

 

 

18,810

 

  Net income

$

19,526

 

$

19,578

 

$

73,598

 

$

62,516

 

  Net income per diluted share:

$

1.07

 

$

1.20

 

$

4.23

 

$

3.83

 

    Weighted average number of common shares outstanding:

Diluted

 

18,294

 

 

16,307

 

 

17,380

 

 

16,311

 

    Cash Flow Information:

For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

  Net cash provided by operating activities

$

10,418

 

$

30,049

 

$

116,434

 

$

112,247

 

Net cash (used in) investing activities

 

(354,486

)

 

(5,302

)

 

(354,610

)

 

(119,236

)

Net cash provided by (used in) financing activities

 

220,127

 

 

(39,706

)

 

272,296

 

 

(8,181

)

  Net change in cash

 

(123,941

)

 

(14,959

)

 

34,120

 

 

(15,170

)

Cash at the beginning of the period

 

222,852

 

 

79,750

 

 

64,791

 

 

79,961

 

Cash at the end of the period

$

98,911

 

$

64,791

 

$

98,911

 

$

64,791

 

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

December 31,

 

 

2024

 

 

2023

  Assets   Current assets Cash

$

98,911

$

64,791

Accounts receivable, net

 

122,880

 

115,499

Prepaid expenses and other current assets

 

38,591

 

19,714

  Total current assets

 

260,382

 

200,004

  Property and equipment, net

 

24,703

 

24,011

  Other assets Goodwill

 

970,558

 

662,995

Intangible assets, net

 

109,643

 

91,983

Operating lease assets

 

47,348

 

45,433

Total other assets

 

1,127,549

 

800,411

  Total assets

$

1,412,634

$

1,024,426

  Liabilities and stockholders' equity   Current liabilities Accounts payable

$

27,176

$

26,183

Accrued payroll

 

62,053

 

56,551

Accrued expenses

 

28,959

 

33,236

Operating lease liabilities - current portion

 

12,800

 

11,339

Government stimulus advance

 

11,239

 

5,765

Accrued workers compensation

 

13,644

 

12,043

Total current liabilities

 

155,871

 

145,117

  Long-term debt, less current portion, net of debt issuance costs

 

218,443

 

124,132

Long-term lease liability, less current portion

 

41,883

 

39,711

Deferred tax liabilities, net

 

25,820

 

8,529

Other long-term liabilities

 

125

 

243

Total long-term liabilities

 

286,271

 

172,615

  Total liabilities

 

442,142

 

317,732

  Total stockholders' equity

 

970,492

 

706,694

  Total liabilities and stockholders' equity

$

1,412,634

$

1,024,426

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Net Service Revenue by Segment

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

For the Twelve Months Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Net Service Revenues by Segment   Personal Care

$

220,328

$

204,491

$

856,581

$

794,718

Hospice

 

58,989

 

54,741

 

228,191

 

207,155

Home Health

 

17,827

 

17,119

 

69,827

 

56,778

Total Revenue

$

297,144

$

276,351

$

1,154,599

$

1,058,651

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Key Statistical and Financial Data (Unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

For the Twelve Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

    Personal Care   States served at period end

 

-

 

 

-

 

 

23

 

 

21

 

Locations at period end

 

-

 

 

-

 

 

196

 

 

156

 

Average billable census - same store (1, 2)

 

36,342

 

 

38,078

 

 

37,438

 

 

38,521

 

Average billable census - acquisitions (3)

 

14,581

 

 

-

 

 

14,581

 

 

-

 

Average billable census total

 

50,923

 

 

38,078

 

 

52,019

 

 

38,521

 

Billable hours (in thousands)

 

8,210

 

 

7,694

 

 

31,309

 

 

30,658

 

Average billable hours per census per month (3)

 

69.6

 

 

67.2

 

 

71.5

 

 

66.2

 

Billable hours per business day

 

124,397

 

 

118,366

 

 

119,498

 

 

117,915

 

Revenues per billable hour

$

26.40

 

$

26.53

 

$

27.21

 

$

25.86

 

Organic growth - Revenue

 

5.8

%

 

11.2

%

 

7.7

%

 

12.1

%

  Hospice   Locations served at period end

 

-

 

 

-

 

 

38

 

 

39

 

Admissions

 

3,095

 

 

3,326

 

 

12,866

 

 

12,902

 

Average daily census

 

3,472

 

 

3,381

 

 

3,461

 

 

3,415

 

Average discharge length of stay

 

97.9

 

 

97.8

 

 

94.1

 

 

94.4

 

Patient days

 

319,460

 

 

311,015

 

 

1,266,701

 

 

1,203,522

 

Revenue per patient day

$

185.95

 

$

176.01

 

$

181.08

 

$

175.43

 

Organic growth - Revenue

 

7.8

%

 

3.5

%

 

5.9

%

 

2.0

%

- Average daily census

 

2.7

%

 

(1.1

)%

 

1.3

%

 

0.3

%

  Home Health   Locations served at period end

 

-

 

 

-

 

 

24

 

 

24

 

New Admissions

 

4,365

 

 

4,654

 

 

18,622

 

 

16,251

 

Recertifications

 

3,249

 

 

3,214

 

 

13,047

 

 

9,030

 

Total Volume

 

7,614

 

 

7,868

 

 

31,669

 

 

25,281

 

Visits

 

99,803

 

 

104,161

 

 

422,516

 

 

344,919

 

Organic growth - Revenue

 

1.6

%

 

(17.8

)%

 

(3.1

)%

 

(7.1

)%

- New admissions

 

(6.2

)%

 

(10.3

)%

 

(3.0

)%

 

(9.8

)%

- Volume

 

(3.2

)%

 

(9.2

)%

 

(1.9

)%

 

(7.2

)%

  Percentage of Revenues by Payor:   Personal Care   State, local and other governmental programs

 

54.2

%

 

50.5

%

 

53.3

%

 

50.4

%

Managed care organizations

 

43.1

 

 

46.4

 

 

44.0

 

 

46.2

 

Private duty

 

2.0

 

 

1.9

 

 

1.8

 

 

2.0

 

Commercial

 

0.5

 

 

0.8

 

 

0.7

 

 

0.8

 

Other

 

0.2

%

 

0.4

%

 

0.2

%

 

0.6

%

  Hospice   Medicare

 

91.4

%

 

89.3

%

 

91.2

%

 

89.9

%

Commercial

 

4.9

 

 

6.3

 

 

5.1

 

 

6.0

 

Managed care organizations

 

3.5

 

 

3.7

 

 

3.3

 

 

3.4

 

Other

 

0.2

%

 

0.7

%

 

0.4

%

 

0.7

%

  Home Health   Medicare

 

69.2

%

 

68.8

%

 

69.5

%

 

72.3

%

Managed care organizations

 

24.2

 

 

25.5

 

 

25.2

 

 

22.2

 

Commercial

 

2.9

 

 

4.4

 

 

3.9

 

 

4.4

 

Other

 

3.7

%

 

1.3

%

 

1.4

%

 

1.1

%

(1) The average billable census in acquisitions of 85 and 91 for the three and twelve months ended December 31, 2023, was reclassified to average billable census - same stores for comparability purposes. (2) Exited sites would have reduced same store census for the three and twelve months ended December 31, 2023, by 1,401 and 1,446, respectively. Exited stores would have reduced same store census for the twelve months ended December 31, 2024, by 964. (3) The average billable census and average billable hours per census per month for the three and twelve months ended December 31, 2024, were prorated for the date of the acquisition.

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Amounts in thousands, except per share data)

(Unaudited) (1)

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

For the Twelve Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of Adjusted EBITDA to Net Income: (1)   Net income

$

19,526

 

$

19,578

 

$

73,598

 

$

62,516

 

  Interest expense, net

 

698

 

 

2,616

 

 

3,338

 

 

9,630

 

(Gain) Loss on sale of assets

 

(3,725

)

 

3

 

 

(3,738

)

 

(2

)

Income tax expense

 

6,688

 

 

5,776

 

 

25,755

 

 

18,810

 

Depreciation and amortization

 

3,214

 

 

3,677

 

 

13,530

 

 

14,126

 

Impact of lease impairment

 

4,968

 

 

-

 

 

4,968

 

 

-

 

Impact of retroactive New York rate increase

 

(3,487

)

 

-

 

 

(3,004

)

 

(868

)

Impact of retroactive collective bargaining negotiations

 

-

 

 

(1,338

)

 

-

 

 

-

 

Acquisition expenses

 

7,031

 

 

1,428

 

 

14,678

 

 

6,220

 

Stock-based compensation expense

 

2,858

 

 

2,488

 

 

11,165

 

 

10,319

 

Restructure and other non-recurring costs

 

-

 

 

27

 

 

-

 

 

269

 

Adjusted EBITDA

$

37,771

 

$

34,255

 

$

140,290

 

$

121,020

 

    Reconciliation of Adjusted Net Income to Net Income: (2)   Net income

$

19,526

 

$

19,578

 

$

73,598

 

$

62,516

 

  (Gain) Loss on sale of assets

 

(3,725

)

 

3

 

 

(3,738

)

 

(2

)

Impact of lease impairment

 

4,968

 

 

-

 

 

4,968

 

 

-

 

Impact of retroactive New York rate increase

 

(3,487

)

 

-

 

 

(3,004

)

 

(868

)

Impact of retroactive collective bargaining negotiations

 

-

 

 

(1,338

)

 

-

 

 

-

 

Acquisition expenses

 

7,031

 

 

1,428

 

 

14,678

 

 

6,219

 

Stock-based compensation expense

 

2,858

 

 

2,488

 

 

11,165

 

 

10,319

 

Restructure and other non-recurring costs

 

-

 

 

27

 

 

-

 

 

269

 

Tax Effect

 

(1,958

)

 

(594

)

 

(6,240

)

 

(3,685

)

  Adjusted Net Income

$

25,213

 

$

21,592

 

$

91,427

 

$

74,768

 

    Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3)   Net income per diluted share

$

1.07

 

$

1.20

 

$

4.23

 

$

3.83

 

  (Gain) Loss on the sale of assets per diluted share

 

(0.15

)

 

-

 

 

(0.16

)

 

-

 

Impact of lease impairment per diluted share

 

0.20

 

 

-

 

 

0.21

 

 

-

 

Impact of retroactive New York rate increase per diluted share

 

(0.14

)

 

-

 

 

(0.13

)

 

(0.04

)

Impact of retroactive collective bargaining negotiations

 

-

 

 

(0.07

)

 

-

 

 

-

 

Acquisition expenses per diluted share

 

0.29

 

 

0.07

 

 

0.63

 

 

0.29

 

Restructure and other non-recurring costs per diluted share

 

-

 

 

-

 

 

-

 

 

0.01

 

Stock-based compensation expense per diluted share

 

0.11

 

 

0.12

 

 

0.48

 

 

0.49

 

  Adjusted net income per diluted share

$

1.38

 

$

1.32

 

$

5.26

 

$

4.58

 

  Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4)   Net service revenues

$

297,144

 

$

276,351

 

$

1,154,599

 

$

1,058,651

 

  Revenues associated with the closure of certain sites

 

(3,447

)

 

(23,158

)

 

(71,230

)

 

(92,877

)

  Adjusted net service revenues

$

293,697

 

$

253,193

 

$

1,083,369

 

$

965,774

 

Footnotes: (1) We define Adjusted EBITDA as earnings before net interest expense, other non-operating income, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructure and other non-recurring costs, gain or loss on the sale of assets, impairment of operating lease assets, retroactive rate increases from New York and the retroactive impact from collective bargaining negotiations. Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We believe that Adjusted EBITDA is useful to investors, management and others in evaluating the Company's operating performance, to provide investors with insight and consistency in the Company's financial reporting and to present a basis for comparison of the Company's business among periods, and to facilitate comparison with results of the Company's peers. Additionally, we believe that Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of other public companies. The financial results presented in accordance with U.S GAAP and a reconciliation of this non-GAAP measure included within our Annual Report on Form 10-K should be carefully evaluated. (2) We define Adjusted Net Income as net income before acquisition expenses, stock-based compensation expense, restructure and other non-recurring costs, gain on the sale of assets, lease impairment, retroactive collective bargaining negotiations and retroactive rate increases from New York. Adjusted Net Income is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. (3) We define Adjusted diluted earnings per share as earnings per share, adjusted for acquisition expenses, stock-based compensation expense and restructure and other non-recurring costs, gain on the sale of assets, lease impairment, retroactive collective bargaining negotiations and retroactive rate increases from New York. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. (4) We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224064978/en/

Brian W. Poff Executive Vice President, Chief Financial Officer Addus HomeCare Corporation (469) 535-8200 investorrelations@addus.com

Dru Anderson FINN Partners (615) 324-7346 dru.anderson@finnpartners.com