On 30 May Addus HomeCare Corporation (ADUS) reported its financial results for the first quarter ended March 31, 2018.
On Friday Addus HomeCare Corporation (ADUS) has shown downward move of -4.50% and ended the last trade at $57.25 . The trading volume was recorded to 152,150 shares as compared to average traded volume of 77,931 shares.
Net service revenues were $109.4M for the first quarter of 2018, up 7.7% from $101.6M for the first quarter of 2017. Net income increased 14.1% to $4.9M for the recent quarter from $4.3M for the first quarter of 2017, while net income per diluted share increased 13.5% to $0.42 from $0.37. Adjusted net income per diluted share grew 23.5% to $0.42 for the first quarter of 2018 from $0.34 for the first quarter of 2017. Adjusted net income per diluted share for the first quarter of 2018 excludes prompt payment interest income of $0.16 from the state of Illinois; M&A expenses of $0.07; restructuring charges of $0.02; severance and other costs of $0.01; and stock-based compensation expense of $0.06. For the first quarter of 2017, adjusted net income per diluted share excludes a gain on the sale of adult day service centers of $0.11; M&A expenses of $0.01; severance and other costs of $0.05; and stock-based compensation expense of $0.02. Adjusted EBITDA increased 9.6% to $8.7M for the first quarter of 2018 from $8.0M for the first quarter of 2017, and adjusted EBITDA margin expanded to 8.0% from 7.8%. (See page 7 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.)
Dirk Allison, President and Chief Executive Officer of Addus, said that he is proud of the solid financial results for the first quarter of 2018. First-quarter revenues reflected continuing organic growth, with a raise in same-store revenue of 4.6%, within the company target range of 3% to 5%. As a result of tax reform, the company also benefited from a reduction in income tax rate for the first quarter of 2018. Furthermore he added ” clearly evident in the first quarter was the acceleration of the impact of our acquisition strategy. Our financial results for the quarter included the impact of the Options Home Care acquisition in August last year. As we before reported, we purchased the Arcadia Home Care & Staffing business on April 1st and subsequently closed the Ambercare acquisition – reported February 28th – on May 1st. Ambercare and Arcadia produced combined 2017 revenue of over $100M and are predictable to be immediately accretive to earnings. Our first-quarter financial results and acquisition pipeline position Addus for continued growth during 2018.”
As discussed in the Company’s fourth-quarter conference call, Addus’s adoption of ASU 2014-09, Accounting for Contracts with Consumers, at the start of 2018 using the modified retrospective approach reduced the year over year comparability of net service revenue and expense items as a percentage of net service revenues, while not affecting net income, adjusted EBITDA and adjusted earnings per diluted share. The adoption of this revenue recognition standard resulted in a decrease of $2.0M in our net services revenue during the three months ended March 31, 2018.
For the first quarter of 2018, the Company’s revenue growth was driven by relatively balanced increases of 4.0% in billable hours per business day and 3.6% in revenue per billable hour, contrast with the first quarter of 2017.
At March 31, 2018, the Company had cash of $63.4M and bank debt of $43.9M, while availability under its revolving credit facility was $111.3M. Net cash provided by operating activities was $14.3M for the first quarter of 2018.
Addus HomeCare Corporation’s (ADUS) stock price showed weak performance of -4.90% in last seven days, switched up 0.00% in last thirty days and it rose 53.69% in last one year.
It has 11.87 million of outstanding shares and its shares float measured at 11.45.
Mr. Allison concluded, “As our first-quarter results indicate, we are executing on our organic growth and acquisition strategies, and as a leading personal care company, we believe we are positioned to gain further market share in the future. The personal care industry remains strong given the growing recognition in healthcare of the value we provide by helping consumers with essential daily tasks that enable them to stay in their homes. We are confident we have the experience and resources to drive long-term growth in earnings and shareholder value.”