ADUS Addus HomeCare Corp

Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights:

• Net Service Revenues Grow 20.3% to $337.7 Million
• Net Income of $21.2 Million, or $1.16 per Diluted Share
• Adjusted Net Income per Diluted Share Increases 17.4% year-over-year to $1.42
• Adjusted EBITDA Increases 25.1% year-over-year to $40.6 Million
• Cash Flow from Operations of $18.9 Million

Overview

Net service revenues were $337.7 million for the first quarter of 2025, a 20.3% increase compared with $280.7 million for the first quarter of 2024. Net income was $21.2 million for the first quarter of 2025 compared with $15.8 million for the first quarter of 2024, while net income per diluted share was $1.16 compared with $0.97 for the same period a year ago. Adjusted EBITDA increased 25.1% to $40.6 million for the first quarter of 2025 from $32.4 million for the first quarter of 2024. Adjusted net income was $26.0 million for the first quarter of 2025 compared with $19.8 million for the prior-year period, while adjusted net income per diluted share was $1.42 compared with $1.21 for the first quarter of 2024. Adjusted net income per diluted share for the first quarter of 2025 excludes acquisition expenses of $0.13 and stock-based compensation expense of $0.13 (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)

Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Addus had a strong start to 2025, delivering a solid financial and operating performance as we continue to see solid demand for our home-based care services across the continuum. Revenue for the first quarter of 2025 was up 20.3% and adjusted EBITDA increased 25.1% over the same period last year. These results reflect solid organic growth and include the first full quarter of the personal care operations of Gentiva, which we acquired on December 2, 2024.

“Our personal care segment, which accounted for 76.5% of our business, was the key driver of our growth with a 7.4% organic revenue increase over the first quarter last year. We benefited from higher volumes as well as additional rate support, including a 5.5% increase effective January 1, 2025, for Illinois, our largest personal care market. The addition of the Gentiva personal care operations, our largest acquisition to date, gave us two new states and added coverage in five states where we already had operations. Our team has worked hard to implement a smooth integration, and we are excited about the additional opportunities to expand our personal care presence.

“We were pleased to see continued steady improvement in our hospice care segment, which accounted for 18.2% of our business, with solid organic revenue growth of 9.9% over the first quarter last year. Our average daily census, patient days and revenue per patient day were all higher compared with the same period last year. With the recent changes in our operations and sales leadership, we are confident we have a capable team in place to drive further improvement in our hospice business. Our home health services accounted for 5.3% of total revenue for the first quarter. While this is our smallest business segment, we continue to see home health as providing important complementary capabilities to our personal care and hospice care segments, allowing us to provide patients with the full care continuum.

Cash and Liquidity

As of March 31, 2025, the Company had cash of $97.0 million and bank debt of $203.0 million, with capacity and availability under its revolving credit facility of $632.9 million and $421.9 million, respectively. Net cash provided by operating activities was $18.9 million for the first quarter of 2025, inclusive of a net $2.5 million in ARPA funds utilization.

Allison continued, “For the first quarter of 2025, we continued to generate consistent cash flow from operations and maintain a strong balance sheet. Our conservative leverage position allows us the flexibility to continue to invest in our business and to evaluate and pursue additional acquisition opportunities. We remain focused on finding strategic markets that meet our objective to leverage our existing personal care presence and add clinical care services, so we can provide all three levels of care. We see important synergies in offering the full care continuum as we build scale and expand our market coverage, and we are optimistic that we will see additional acquisition opportunities in 2025.

“We believe the favorable trends in our business will continue to enhance our ability to achieve solid organic growth and provide quality services from our recently acquired operations. As we extend our reach to more patients and families across our markets, we are mindful of our important role as a leading provider of quality care in the preferred home setting. We recognize the hard work and dedication of the caregivers who are the face of Addus, and we are grateful for the outstanding care and support they provide every day across our markets. Working together, we look forward to the opportunities ahead for Addus in 2025, as we deliver value to the clients we serve and 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, and the gain or loss on the sale of assets. The Company defines adjusted EBITDA as earnings before net interest expense, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, and the gain or loss on the sale of assets. 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, May 6, 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 May 13, 2025, by dialing (877) 344-7529 (international dial-in number is (412) 317-0088) and entering pass code 3473942.

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 25, 2025, 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 260 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 March 31,

 

2025

 

 

2024

 

  Net service revenues

$

337,708

 

$

280,746

 

Cost of service revenues

 

230,031

 

 

192,569

 

  Gross profit

 

107,677

 

 

88,177

 

 

31.9

%

 

31.4

%

General and administrative expenses

 

73,220

 

 

61,063

 

Depreciation and amortization

 

3,943

 

 

3,469

 

Total operating expenses

 

77,163

 

 

64,532

 

  Operating income from continuing operations

 

30,514

 

 

23,645

 

  Total interest expense, net

 

3,516

 

 

2,335

 

  Income before income taxes

 

26,998

 

 

21,310

 

Income tax expense

 

5,770

 

 

5,480

 

  Net income

$

21,228

 

$

15,830

 

  Net income per diluted share:

$

1.16

 

$

0.97

 

    Weighted average number of common shares outstanding: Diluted

 

18,311

 

 

16,373

 

        Cash Flow Information: For the Three Months Ended March 31,

 

2025

 

 

2024

 

  Net cash provided by operating activities

$

18,949

 

$

38,678

 

Net cash used in investing activities

 

(1,378

)

 

(1,750

)

Net cash used in financing activities

 

(19,528

)

 

(25,000

)

  Net change in cash

 

(1,957

)

 

11,928

 

Cash at the beginning of the period

 

98,911

 

 

64,791

 

Cash at the end of the period

$

96,954

 

$

76,719

 

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)   March 31,

2025

2024

  Assets   Current assets Cash

$

96,954

$

76,719

Accounts receivable, net

 

134,607

 

103,438

Prepaid expenses and other current assets

 

26,267

 

11,690

Total current assets

 

257,828

 

191,847

  Property and equipment, net

 

24,701

 

23,872

  Other assets Goodwill

 

972,347

 

663,391

Intangible assets, net

 

107,644

 

90,191

Operating lease assets

 

45,064

 

44,699

Total other assets

 

1,125,055

 

798,281

  Total assets

$

1,407,584

$

1,014,000

  Liabilities and stockholders' equity   Current liabilities Accounts payable

$

27,969

$

22,022

Accrued payroll

 

54,858

 

44,022

Accrued expenses

 

29,748

 

38,772

Operating lease liabilities, current portion

 

12,649

 

11,307

Government stimulus advance

 

8,702

 

13,548

Accrued workers compensation

 

14,010

 

11,920

Total current liabilities

 

147,936

 

141,591

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

 

198,740

 

99,347

Long-term operating lease liabilities, less current portion

 

39,414

 

39,044

Deferred tax liabilities, net

 

25,986

 

8,660

Other long-term liabilities

 

125

 

215

Total long-term liabilities

 

264,265

 

147,266

  Total liabilities

 

412,201

 

288,857

  Total stockholders' equity

 

995,383

 

725,143

  Total liabilities and stockholders' equity

$

1,407,584

$

1,014,000

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Net Service Revenue by Segment (Amounts in thousands) (Unaudited)   For the Three Months Ended March 31,

2025

2024

Net Service Revenues by Segment   Personal Care

$

258,286

$

208,003

Hospice

 

61,437

 

55,863

Home Health

 

17,985

 

16,880

Total Revenue

$

337,708

$

280,746

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited)   For the Three Months Ended March 31,

 

2025

 

 

2024

 

Personal Care   States served at period end

 

23

 

 

21

 

Locations served at period end

 

199

 

 

153

 

Average billable census - same store

 

35,948

 

 

37,715

 

Average billable census - acquisitions (1)

 

14,530

 

 

-

 

Average billable census total

 

50,478

 

 

37,715

 

Billable hours (in thousands)

 

10,201

 

 

7,590

 

Average billable hours per census per month

 

67.4

 

 

67.0

 

Billable hours per business day

 

159,395

 

 

116,769

 

Revenues per billable hour

$

25.32

 

$

27.35

 

Organic growth - Revenue

 

7.4

 

%

 

9.3

 

%

  Hospice   Locations served at period end

 

38

 

 

38

 

Admissions

 

3,474

 

 

3,472

 

Average daily census

 

3,515

 

 

3,359

 

Average discharge length of stay

 

97.4

 

 

89.6

 

Patient days

 

316,319

 

 

305,630

 

Revenue per patient day

$

194.23

 

$

182.78

 

Organic growth - Revenue

 

9.9

 

%

 

5.8

 

%

- Average daily census

 

4.6

 

%

 

(1.1

)

%

  Home Health   Locations served at period end

 

23

 

 

23

 

New Admissions

 

4,708

 

 

4,887

 

Recertifications

 

2,982

 

 

3,168

 

Total Volume

 

7,690

 

 

8,055

 

Visits

 

94,593

 

 

106,931

 

Organic growth - Revenue

 

1.3

 

%

 

(15.1

)

%

- New Admissions

 

(3.7

)

%

 

(4.0

)

%

- Volume

 

(4.6

)

%

 

(3.1

)

%

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

 

51.5

 

%

 

51.8

 

%

Managed care organizations

 

45.3

 

 

45.3

 

Private duty

 

2.7

 

 

1.9

 

Commercial

 

0.4

 

 

0.7

 

Other

 

0.1

 

%

 

0.3

 

%

  Hospice   Medicare

 

92.4

 

%

 

90.7

 

%

Commercial

 

3.9

 

 

5.6

 

Managed care organizations

 

3.3

 

 

3.3

 

Other

 

0.4

 

%

 

0.4

 

%

  Home Health   Medicare

 

69.9

 

%

 

69.1

 

%

Managed care organizations

 

21.2

 

 

26.1

 

State, local and other governmental programs

 

6.0

 

 

0.1

 

Commercial

 

2.5

 

 

4.1

 

Other

 

0.4

 

%

 

0.6

 

%

  (1) The average billable census and average billable hours per census per month for the three months ended March 31, 2025 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 March 31,

 

2025

 

 

2024

 

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

$

21,228

 

$

15,830

 

  Interest expense, net

 

3,516

 

 

2,335

 

Gain on the sale of assets

 

(7

)

 

-

 

Income tax expense

 

5,770

 

 

5,480

 

Depreciation and amortization

 

3,943

 

 

3,469

 

Acquisition expenses

 

2,952

 

 

2,711

 

Stock-based compensation expense

 

3,170

 

 

2,618

 

  Adjusted EBITDA

$

40,572

 

$

32,443

 

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

$

21,228

 

$

15,830

 

  Gain on the sale of assets

 

(7

)

 

-

 

Acquisition expenses

 

2,952

 

 

2,711

 

Stock-based compensation expense

 

3,170

 

 

2,618

 

Tax effect

 

(1,306

)

 

(1,370

)

  Adjusted Net Income

 

26,037

 

 

19,789

 

    Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (3)   Diluted earnings per share

$

1.16

 

$

0.97

 

  Acquisition expenses, per diluted share

 

0.13

 

 

0.12

 

Stock-based compensation expense per diluted share

 

0.13

 

 

0.12

 

  Adjusted net income per diluted share

$

1.42

 

$

1.21

 

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

$

337,708

 

$

280,746

 

  Revenue associated with the closure of certain sites

 

(13

)

 

(95

)

  Adjusted net service revenues

$

337,695

 

$

280,651

 

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 and gain or loss on the sale of assets. 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, and gain on the sale of assets. 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 gain or loss on the sale of assets. 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.

 

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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