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
Addus HomeCare Reports First Quarter 2013 Results
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