Nov 12 2009
Addus HomeCare Corporation (Nasdaq: ADUS), a comprehensive provider of a broad range of social and medical services in the home, announced today its financial results for the third quarter and nine months ended September 30, 2009.
Recent Corporate Highlights:
- Net service revenues for the third quarter 2009 of $66.8 million, up 6.5%
- Adjusted EBITDA for the third quarter 2009 of $5.4 million, up 15.7%
- Net income per diluted share for the third quarter 2009 of $0.40, up 53.8%
- Initial public offering ("IPO") of 5.4 million shares for net proceeds of $50.2 million; began trading on Nasdaq under the symbol "ADUS" on October 28, 2009
Mark Heaney, President and Chief Executive Officer, stated, "We are pleased to report strong financial results for the third quarter, our first earnings release since the completion of our IPO. Addus' performance was driven by our dedicated home care providers, who continue to focus on growing our census and providing the highest level, lowest cost of care to our 23,000 consumers."
Mr. Heaney continued, "We are gratified by the completion of our IPO. The interest from investors reflects the dedication of our professionals, who continue to leverage our integrated service model to meet the needs of patients across both segments of our business."
Third Quarter Ended September 30, 2009 and 2008
Total net service revenues for the third quarter 2009 were $66.8 million, a 6.5% increase compared to $62.7 million in the prior year quarter.
Net service revenues in the third quarter 2009 for the Home & Community segment were $53.9 million, a 6.4% increase compared to $50.7 million in the prior year quarter. The increase in revenues was entirely the result of organic growth. Home & Community operating income, including depreciation and amortization but excluding corporate expenses, was $5.4 million, a 14.4% increase compared to $4.8 million in the prior year quarter.
Net service revenues in the third quarter 2009 for the Home Health segment were $12.9 million, a 7.2% increase compared to $12.0 million in the prior year quarter. This increase was comprised of $0.8 million from organic growth and $0.1 million from acquisitions completed in 2008. Home Health operating income, including depreciation and amortization but excluding corporate expenses, was $2.1 million, a 40.7% increase compared to $1.5 million in the prior year quarter.
Adjusted earnings before interest, taxes, depreciation, amortization, and stock based compensation ("Adjusted EBITDA"), for the third quarter 2009 was $5.4 million, a 15.7% increase compared to $4.6 million in the prior year quarter. The Company's ability to leverage corporate expenses across a larger revenue base and improved performance by both segments contributed to the increase.
Net income, prior to deducting preferred stock dividends, for the third quarter 2009, was $2.1 million, a 59.4% increase from $1.3 million in the prior year quarter. Diluted earnings per share for the third quarter 2009 were $0.40 per share, compared to $0.26 per share in the prior year period. Both periods include dilutive stock options and conversion of preferred stock.
Nine Months Ended September 30, 2009 and 2008
Total net service revenues for the nine months ended September 30, 2009 were $193.6 million, a 11.5% increase compared to $173.6 million in the same period in 2008.
Net service revenues for the nine months ended September 30, 2009 in the Home & Community segment were $156.4 million, a 12.9% increase compared to $138.6 in the same period in 2008. This increase was comprised of $13.0 million from organic growth and $4.8 million from acquisitions completed in 2008. Home & Community operating income for the nine months ended September 30, 2009, including depreciation and amortization but excluding corporate expenses, was $15.8 million, a 22.7% increase compared to $12.9 million in the same period in 2008.
Net service revenues for the nine months ended September 30, 2009 in the Home Health segment was $37.2 million, a 6.3% increase compared to $35.0 million the same period in 2008. This increase was comprised of $1.8 million from organic growth and $0.4 million from acquisitions completed in 2008. Home Health operating income for the nine months ended September 30, 2009, including depreciation and amortization but excluding corporate expenses, was $5.6 million, a 42.2% increase compared to $3.9 million for the same period in 2008.
Adjusted EBITDA for the nine months ended September 30, 2009 was $14.9 million, a 21.2% increase compared to $12.3 million for the same period in 2008. The Company's ability to leverage corporate expenses across a larger revenue base and improved performance by both segments contributed to the increase.
Net income, prior to deducting preferred stock dividends, for the nine months ended September 30, 2009 was $5.4 million, a 83.8% increase compared to $2.9 million for the same period in the prior year. Diluted earnings per share, which includes dilutive stock options and the conversion of the preferred stock for 2009, was $1.04 per share for the nine months ended September 30, 2009 compared to a loss of $(0.18) per share for the same period in 2008.
Recent Developments
On October 1, 2009, the Company's board of directors approved a 10.8-for-1 stock split, increasing the number of issued and outstanding shares of common stock from 94,375 to 1,019,250. All share and per share data, except for par value, have been adjusted to reflect the stock split for all periods presented.
Addus completed its initial public offering of 5.4 million shares of common stock at $10 per share, raising net proceeds, after deducting the underwriting discount, of $50.2 million. Addus shares began trading on the Nasdaq Global Market under the ticker symbol "ADUS" on October 28, 2009. A copy of the prospectus is available at http://www.sec.gov.
Non-GAAP Financial Measure
The information provided in this release includes adjusted EBITDA, a non-GAAP financial measure, which the Company defines as net income plus depreciation and amortization, net interest expense, income tax expense 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 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.
SOURCE Addus HomeCare Corporation