ADUS Announces Third Quarter 2024 Financial Results
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November 4, 2024
“Our personal care business continued to perform well, accounting for 74.3% of our overall revenues for
the third quarter of 2024, with higher patient volumes supported by favorable hiring trends. Personal care has been the key growth driver for Addus this year with consistent year-over-year improvement. For the third quarter of 2024, we delivered
6.8% organic growth in revenue on a same-store basis over the corresponding period last year, reflecting robust demand and favorable reimbursement support across the markets where we operate.
“On the clinical side, our results included the operations of Tennessee Quality Care, a provider of home health, hospice, and private duty nursing
services, acquired by Addus on August 1, 2023. We continued to see steady improvement in our hospice business with revenues up 3.5% on a same-store basis and a modest increase in average daily census compared with the third quarter last year.
Our home health business, which is our smallest segment, accounted for 5.9% of total revenue for the third quarter of 2024,” said Allison.
Cash
and Liquidity
As of September 30, 2024, the Company had cash of $222.9 million with capacity and availability under its revolving credit
facility of $511.5 million and $503.5 million, respectively. Net cash provided by operating activities was $48.5 million for the third quarter of 2024, inclusive of a one-time working capital
benefit of $9.7 million expected to revert in the fourth quarter. As previously disclosed, subsequent to the end of the quarter, Addus entered into an Amended and Restated Credit Agreement to increase the Company’s revolving credit
facility from $600 million to $650 million and extend the maturity date through July 2028.
Looking Ahead
Allison added, “We will continue to maintain a conservative balance sheet and pursue a capital allocation strategy that brings additional value to our
shareholders. Acquisitions represent a significant use of capital for Addus, and we will continue to target operations that are aligned with our overall growth strategy to add clinical services where we have a strong personal care presence. We will
also seek opportunities to add operations in select personal care markets where we can enter at scale. In line with this strategy, during the second quarter, we announced a definitive agreement to acquire the personal care operations of Gentiva.
These operations deliver personal care services to over 16,000 patients per day in a seven-state service area, including Texas and Missouri, which are new states for Addus. We are excited about the opportunity to expand our market reach, especially
in Texas where we will become the largest provider of personal care services. Having broader market coverage supports our ability to hire and retain caregivers and also provides Addus with an advantage in developing value-based contract
arrangements. We expect to close the Gentiva acquisition in the fourth quarter of 2024, and our team has been diligently working on transition planning to integrate these operations.
“As we continue to expand our operations, we are proud of the leadership role we are playing in meeting the critical need for home-based care. We commend
the work of our dedicated caregivers across our operations who make this possible for more patients and their families. We are excited about the opportunities ahead to build on our momentum, and we look forward to another successful year for Addus
in 2024,” added Allison.
Non-GAAP Financial Measures
The information provided in this release includes adjusted net income, adjusted EBITDA, and adjusted net income per diluted share, which are non-GAAP financial measures. The Company defines adjusted net income as net income before gain or loss on sale of assets, impact of retroactive New York rate increases, acquisition expenses, stock-based compensation
expenses, and restructure and other non-recurring costs. The Company defines adjusted EBITDA as earnings before interest expense, gain or loss on sale of assets, taxes, depreciation, amortization, impact of
retroactive New York rate increases, acquisition expense, stock-based compensation expense, and restructure and other non-recurring costs. The Company defines adjusted net income per diluted share as net
income per share, adjusted for the impact of retroactive New York rate increases, acquisition expenses, stock-based compensation expense, and restructure and other non-recurring costs. 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
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