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Addus HomeCare Reports Second Quarter 2013 Results

              Addus HomeCare Reports Second Quarter 2013 Results

Second Quarter Financial Highlights

- Total net service revenues were $65.8 million

- Net income from continuing operations were $2.6 million, or $0.23 per
diluted share

PR Newswire

PALATINE, Ill., Aug. 1, 2013

PALATINE, Ill., Aug. 1, 2013 /PRNewswire/ -- Addus HomeCare Corporation
(Nasdaq: ADUS), a comprehensive provider of home and community based services,
primarily social in nature and provided in the home, and focused on the dual
eligible population, announced today its financial results for the second
quarter ended June 30, 2013.

Second Quarter Review

Total net service revenues for the second quarter of 2013 were $65.8 million,
an 8.8% increase compared to $60.4 million in the prior year quarter. Net
income from continuing operations for the second quarter was $2.6 million, or
$0.23 per diluted share, a 40.7% increase when compared to $1.8 million or
$0.17 per diluted share, in the prior year quarter. Net income, including a
loss from discontinued operations, was $2.4 million, or $0.22 per diluted
share.

Mark Heaney, President and Chief Executive Officer of Addus HomeCare, stated,
"We are pleased by the steady performance of our business and the increased
cash collections in the quarter. We remain focused on our efforts to improve
our organic sales results, develop and deploy technology to leverage our work
force and position our organization to capitalize on the opportunities
presented by the dual eligible demonstration projects in our core markets."

Operating income, including depreciation and amortization but excluding
interest and income tax expenses, increased 23.7% to $4.0 million, or 6.1% of
revenue, in the second quarter, compared to $3.2 million, or 5.3% of revenue,
in the prior year quarter reflecting increased leverage of our fixed costs.
This improvement was primarily due to a 4.5% increase in average census and an
8.6% increase in billable hours, driven largely by improved field
productivity. The Company received a $0.2 million benefit in revenues and
gross margin during the quarter as changes to the State of Illinois' billing
programs were not implemented until May 1, 2013.

The Company incurred a $270,000 charge in the second quarter related to
severance payments made for a management position terminated in the quarter.
Income taxes were positively affected in the second quarter by a one-time
increase in our ability to capture Work Opportunity Tax Credits estimates
related to prior periods to reduce our effective tax rate by 3.0% in the
quarter.

The share count increased in the quarter, a function of our increased stock
price and the inclusion of stock options in our diluted share counts that
previously had been "under water." The impact of this dilution on our
earnings per share was $0.01.

Total cash flow for the quarter was a positive $21.0 million, primarily the
result of a large one-time payment received from the State of Illinois at the
end of June and collections made on our home health accounts receivable.

Six Month Review

Total net service revenues for the six months ended June 30, 2013 were $128.8
million, a 7.9% increase compared to $119.3 million in the same prior year
period. Net income from continuing operations for the six months ended June
30, 2013 increased 47.1% to $5.3 million, or $0.48 per diluted share, compared
to $3.6 million or $0.33 per diluted share, in the prior year period. Net
income, including the loss from discontinued operations and the gain from the
previously announced sale of the home health business, was $15.7 million, or
$1.44 per diluted share.

Operating income, including depreciation and amortization, but excluding
interest and income tax expenses, increased 18.2% to $7.7 million, or 6.0% of
revenue, for the six months ended June 30, 2013, compared to $6.5 million, or
5.5% of revenue in the prior year. The Company benefited from a $0.8 million
increase in revenues and gross margin during this period as technical changes
to the State of Illinois billing programs were not implemented until early
May.

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 second quarter financial results after the market
close on Thursday, August 1, 2013. Management will conduct a conference call
to discuss its results at 5 p.m. Eastern time on August 1, 2013. The toll-free
dial-in number is (877) 546-5018 (international dial-in number is
857-244-7550), with the passcode: 23096859. A telephonic replay of the
conference call will be available through midnight on August 8, 2013, by
dialing (888) 286-8010 (international dial-in number is 617-801-6888) and
entering the passcode 49225122.

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,
primarily social in nature and provided in the home, and 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 and in Addus HomeCare's Quarterly Report on Form 10-Q,
filed with the Securities and Exchange Commission on May 9, 2013 and August 1,
2013, each of 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          For the Three Months Ended  For the Six Months Ended
Information:              June 30,                    December 31,
                          2013           2012         2013          2012
Net service revenues      $ 65,755       $ 60,440    $128,753      $119,329
Cost of service revenues  49,142         44,633       96,342        88,498
Gross profit              16,613         15,807       32,411        30,831
General and               12,092         11,959       23,602        23,529
administrative expenses
Gain on sale of agency    -              -            -             (495)
Depreciation and          541            631          1,087         1,262
amortization
Total operating expenses  12,633         12,590       24,689        24,296
Operating income from     3,980          3,217        7,722         6,535
continuing operations
Interest expense          142            426          350           830
Income from continuing    3,838          2,791        7,372         5,705
operations before taxes
Income tax expense       1,256          956          2,103         2,124
Net income from           2,582          1,835        5,269         3,581
continuing operations
Discontinued operations:
 Loss from home health (150)          (371)        (687)         (1,488)
business, net of tax
 Gain on sale of home
health business, net of   -              -            11,111        -
tax
Earnings (losses) from    (150)          (371)        10,424        (1,488)
discontinued operations
Net income                $  2,432      $  1,464    $ 15,693     $  2,093
Net income (loss) per
share:
 Basic
 Continuing       $   0.24     $   0.17   $   0.49    $   0.33
operations
 Discontinued     (0.01)         (0.03)       0.97          (0.14)
operations
 Basic income per      $   0.23     $   0.14   $   1.46    $   0.19
share
 Diluted
 Continuing       $   0.23     $   0.17   $   0.48    $   0.33
operations
 Discontinued     (0.01)         (0.03)       0.96          (0.14)
operations
 Diluted income per    $   0.22     $   0.14   $   1.44    $   0.19
share
Weighted average number
of common shares
outstanding:
 Basic                10,785         10,761       10,779        10,761
 Diluted              11,016         10,785       10,920        10,781
Cash Flow Information:    For the Three Months Ended  For the Six Months Ended
                          June 30,                    June 30,
                          2013           2012         2013          2012
Net cash provided by      $ 21,221       $  7,015    $ 34,246     $  5,732
operating activities
Net cash provided by
(used in) investing       (228)          (466)        19,252        (259)
activities
Net cash used in          -              (6,375)      (16,458)      (6,000)
financing activities
Net change in cash        20,993         174          37,040        (527)
Cash at the beginning of  17,784         1,319        1,737         2,020
the period
Cash at the end of the    $ 38,777       $  1,493    $ 38,777     $  1,493
period





Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                                     June 30, 2013     December 31, 2012
Assets
Current assets
Cash                                 $    38,777   $         
                                                       1,737
Accounts receivable, net            43,605            71,303
Prepaid expenses and other current   5,754             7,293
assets
Assets held for sale                 -                 245
Deferred tax assets                  7,258             7,258
Total current assets                 95,394            87,836
Property and equipment, net          2,502             2,489
Other assets
Goodwill                             50,456            50,536
Intangible assets, net              5,691             6,370
Deferred tax assets                  -                 2,328
Investment in joint venture          900               -
Other assets                         212               298
Total other assets                   57,259            59,532
Total assets                         $   155,155    $        149,857
Liabilities and stockholders' equity
Current liabilities
Accounts payable                     $     5,415  $         
                                                       4,117
Accrued expenses                     36,365            32,717
Current maturities of long-term debt -                 208
Deferred revenue                     10                2,148
Total current liabilities            41,790            39,190
Long-term debt, less current         -                 16,250
maturities
Deferred tax liability               3,097             -
Total stockholders' equity           110,268           94,417
Total liabilities and stockholders'  $   155,155    $        149,857
equity





Key Statistical and Financial Data
(Unaudited)
                     For the Three Months Ended    For the Six Months Ended
                     June 30,                       June 30,
                     2013              2012         2013           2012
General:
Adjusted EBITDA (in  $4,633            $3,921       $9,026         $7,937
thousands) (1)
States served at                                    19             19
period end
Locations at period                                 93             91
end
Employees at period                                 14,854         13,485
end
Home & Community
Average billable     26,173            25,044       26,501         24,761
census
Billable hours (in   3,872             3,564        7,586          7,034
thousands)
Average billable
hours per census per 49                47           48             48
month
Billable hours per   59,569            54,831       58,806         54,108
business day
Revenues per         $16.98            $16.96       $16.97         $16.96
billable hour
Percentage of
Revenues by Payor:
State, local and
other govermental    94          %     95         % 94        %    95        %
programs
Commercial           2                 1            2              1
Private duty         4           %     4          % 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)     For the Three Months Ended  For the Six Months Ended
(Unaudited)             June 30,                     June 30,
                        2013             2012        2013            2012
Reconciliation of
Adjusted EBITDA to Net
Income:
Net income              $2,432           $1,464      $15,693         $2,093
Less: (Earnings) loss
from discontinued       150              371         (10,424)        1,488
operations, net of tax
Net income from         2,582            1,835       5,269           3,581
continuing operations
Interest expense        142              426         350             830
Income tax expense from 1,256            956         2,103           2,124
continuing operations
Depreciation and        541              631         1,087           1,262
amortization
Stock-based             112              73          217             140
compensation expense
Adjusted EBITDA         $4,633           $3,921      $ 9,026        $7,937

(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