Addus HomeCare Reports First Quarter 2013 Results

              Addus HomeCare Reports First Quarter 2013 Results

First Quarter Financial Highlights

- Total net service revenues of $63.0 million.

- Net income from continuing operations of $2.7 million, or $0.25 per diluted
share.

- Net income of $13.3 million, or $1.23 per diluted share, includes the gain
on the previously announced sale, effective March 1, 2013, of substantially
all of the assets of the Home Health division for $11.1 million, or $1.03 per
diluted share, and a loss on discontinued operations of $(0.5) million, or
$(0.05) per diluted share.

PR Newswire

PALATINE, Ill., May 2, 2013

PALATINE, Ill., May 2, 2013 /PRNewswire/ -- Addus HomeCare Corporation
(Nasdaq: ADUS), a comprehensive provider of home and community based services
which are primarily social in nature and are provided in the home, focused on
the dual eligible population, announced today its financial results for the
first quarter ended March 31, 2013.

First Quarter Review

Total net service revenues from continuing operations for the first quarter of
2013 were $63.0 million, a 7.0% increase compared to $58.9 million in the
prior year quarter. Net income from continuing operations was $2.7 million,
or $0.25 per diluted share, a 56.3% increase when compared to our prior year
quarter. Net income, including the gain on the sale of the Home Health
business and a loss from discontinued operations, was $13.3 million, or $1.23
per diluted share. 

Mark Heaney, President and Chief Executive Officer of Addus HomeCare, stated,
"We feel good about our first quarter performance. Our Home & Community
business has continued to demonstrate positive growth and we are pleased with
the sale and transition of our Home Health business."

Our quarter was positively impacted by a one-time $0.5 million benefit, or
$0.05 per diluted share, from Workers Opportunity Tax Credits ("WOTC") earned
in 2012 and realized in the first quarter of 2013 with the enactment of
federal tax changes in early 2013.

Our first quarter 2012 results included the one-time gain realized on the sale
of an agency for $0.5 million, or $0.03 per diluted share, having a positive
effect on earnings in that period.

For comparative purposes, pro forma earnings from continuing operations in the
first quarter of 2013 were $0.20 per diluted share, after excluding the $0.05
per diluted share effect of the WOTC credits, compared to $0.13 per diluted
share for 2012, after excluding the $0.03 per diluted share on the agency
sale.

We continue our efforts to expand our relationships with managed care plans
and have established offices in Detroit, MI and San Diego, CA in anticipation
of the transition of state sponsored long term care programs to managed care
in these markets. There were no revenues and minimal expenses incurred
related to these office openings in the quarter.

Subsequent Events

The State of Illinois passed legislation in April 2013 to increase funding for
the Illinois Department on Aging ("IDoA") for the fiscal year ending June 30,
2013. This legislation is pending the governor's signature. As part of the
legislation, IDoA was required to submit a plan to improve the cost
effectiveness of the program. As a result, IDoA initiated technical changes
to the method for reimbursing providers effective May 1, 2013. We estimate
that first quarter net service revenues would have been reduced by
approximately $0.6 million with no corresponding reduction in the cost of
service revenues, if such changes had been in effect beginning January 1,
2013.

Given the recent increase in Addus' share price, it is likely Addus will be
required to audit our compliance with Section 404 of the Sarbanes-Oxley Act.
If required, the Company will have to invest in additional staff and establish
processes necessary to meet the documentation requirements and incur increased
external audit fees to include an audit of our internal controls.

Non-GAAP Financial Measures

The information provided in this release includes Adjusted EBITDA, a non-GAAP
financial measure, which the Company defines as earnings before discontinued
operations, interest expense, taxes, depreciation, amortization, and
stock-based compensation expense. The Company has provided, in the financial
statement tables included in this press release, a reconciliation of Adjusted
EBITDA to net income, the most directly comparable GAAP measure. Management
believes 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 operations among periods, and
to facilitate comparison with the results of the Company's peers.

Conference Call

Addus will report its 2013 first quarter results on Thursday, May 2, 2013.
Management will conduct a conference call to discuss its results at 5:00 p.m.
Eastern time on May 2, 2013. The toll-free dial-in number is (866) 515-2908,
international dial-in number is (617) 399-5122, with the passcode: 25332428. A
telephonic replay of the conference call will be available through midnight on
May 9, 2013, by dialing (888) 286-8010, international dial-in number is (617)
801-6888 and entering the passcode: 45033103.

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 of the conference call will also be available on the Company's
website for one month, beginning approximately three hours following the
conclusion of the live broadcast.

About Addus

Addus is a comprehensive provider of home and community based services which
are primarily social in nature and are provided in the home, focused on the
dual eligible population. Addus' services include personal care and
assistance with activities of daily living, and adult day care. Addus'
consumers are individuals who are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and disabled.
Addus' payor clients include federal, state and local governmental agencies,
commercial insurers and private individuals. For more information, please
visit www.addus.com.

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
"continue," "expect," and similar expressions. 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 the expected benefits and costs of 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
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 March 28, 2013, which is available at http://www.sec.gov. Addus
HomeCare undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. (Unaudited tables and notes follow).

Investor Contact: Dennis Meulemans
Chief Financial Officer
Phone: (847) 303-5300
Email: DMeulemans@addus.com





ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Cash Flow Information
(amounts and shares in thousands, except per share data)
(Unaudited)
Income Statement Information:             For the Three Months Ended March 31,
                                          2013                  2012
Net service revenues                      $62,998               $58,889
Cost of service revenues                  47,200                43,865
Gross profit                              15,798                15,024
General and administrative expenses       11,510                11,570
Gain on sale of agency                    -                     (495)
Depreciation and amortization             546                   631
Total operating expenses                  12,056                11,706
Operating income from continuing          3,742                 3,318
operations
Interest expense                          208                   404
Income from operations before taxes       3,534                 2,914
Income tax expense                       847                   1,168
Net income from continuing operations     2,687                 1,746
Discontinued operations:
 Earnings (loss) from home health      (537)                 (1,117)
business, net of tax
 Gain on sale of home health          11,111                -
business, net of tax
Earnings (losses) from discontinued       10,574                (1,117)
operations
Net income (loss)                         $13,261               $   629
Income (loss) per common share:
 Basic and diluted
 Continuing operations            $  0.25             $  0.16
 Discontinued operations          0.98                  (0.10)
 Basic and diluted income (loss) per   $  1.23             $  0.06
common share
Weighted average number of common shares
outstanding:
 Basic                                10,778                10,756
 Diluted                              10,845                10,760
Cash Flow Information:                    For the Three Months Ended March 31,
                                          2013                  2012
Net cash provided by (used in) operating  $13,025               $ (1,283)
activities
Net cash provided by investing activities 19,480                207
Net cash provided by (used in) financing  (16,458)              375
activities
Net change in cash                        16,047                (701)
Cash at the beginning of the period       1,737                 2,020
Cash at the end of the period             $17,784               $ 1,319





Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                                       March 31, 2013      December 31, 2012
Assets
Current assets
Cash                                   $     17,784   $         
                                                           1,737
Accounts receivable, net              60,640              71,303
Prepaid expenses and other current     5,515               7,293
assets
Assets held for sale                   -                   245
Deferred tax assets                    7,258               7,258
Total current assets                   91,197              87,836
Property and equipment, net            2,476               2,489
Other assets
Goodwill                               50,496              50,536
Intangible assets, net                6,030               6,370
Deferred tax assets                    -                   2,328
Investment in joint venture            900                 -
Other assets                           251                 298
Total other assets                     57,677              59,532
Total assets                           $    151,350    $       
                                                           149,857
Liabilities and stockholders' equity
Current liabilities
Accounts payable                       $      4,818  $         
                                                           4,117
Accrued expenses                       35,635              32,717
Current maturities of long-term debt   -                   208
Deferred revenue                       17                  2,148
Total current liabilities              40,470              39,190
Long-term debt, less current           -                   16,250
maturities
Deferred tax liability                 3,097               -
Total stockholders' equity             107,783             94,417
Total liabilities and stockholders'    $    151,350    $       
equity                                                     149,857





Key Statistical and Financial Data (Unaudited)
                                       For the Three Months Ended March 31,
                                       2013                    2012
General:
Adjusted EBITDA (in thousands) (1)     $4,393                  $4,016
States served at period end            19                      19
Locations at period end                96                      96
Employees at period end                14,215                  13,314
Home & Community
Average billable census                25,817                  24,525
Billable hours (in thousands)          3,714                   3,470
Average billable hours per census per  48                      47
month
Billable hours per business day        58,031                  53,354
Revenues per billable hour             $16.96                  $16.97
Percentage of Revenues by Payor:
State, local and other governmental    95             %        95            %
programs
Commercial                             1                       1
Private duty                           4              %        4             %

(1) We define Adjusted EBITDA as earnings before discontinued operations,
interest expense, taxes, depreciation, amortization, and stock-based
compensation expense. 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.





Adjusted EBITDA (1) (Unaudited)          For the Three Months Ended March 31,
                                         2013                    2012
Reconciliation of Adjusted EBITDA to Net
Income:
Net income                               $13,261                 $  629
Less: (Earnings) loss from discontinued  (10,574)                1,117
operations
Net income from continuing operations    2,687                   1,746
Interest expense                         208                     404
Income tax expense                       847                     1,168
Depreciation and amortization            546                     631
Stock-based compensation expense         105                     67
Adjusted EBITDA                          $ 4,393                $4,016

(1) We define Adjusted EBITDA as earnings before discontinued operations,
interest expense, taxes, depreciation, amortization, and stock-based
compensation expense. 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.



SOURCE Addus HomeCare Corporation

Website: http://www.addus.com
 
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