On August 5, 2024, Addus HomeCare Corp (ADUS, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Addus HomeCare Corp is engaged in the provision of in-home personal care services, operating through segments such as Personal Care, Hospice, and Home Health.
Q2 2024 Financial Highlights
For the second quarter of 2024, Addus HomeCare Corp reported net service revenues of $286.9 million, a 10.4% increase compared to $260.0 million in the same period last year. This figure surpassed the analyst estimate of $285.01 million. Net income for the quarter was $18.1 million, up from $14.9 million in Q2 2023, with net income per diluted share at $1.10, meeting the analyst estimate of $1.10.
Adjusted EBITDA saw a significant increase of 24.7%, reaching $35.3 million compared to $28.3 million in the previous year. Adjusted net income per diluted share was $1.35, up from $1.07 in Q2 2023, excluding acquisition and stock-based compensation expenses.
Company Overview
Addus HomeCare Corp provides in-home personal care services, primarily to individuals at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment, a key revenue driver, offers non-medical assistance with daily living activities. The Hospice segment provides care for terminally ill patients and their families, while the Home Health segment offers medical services to individuals requiring assistance during illness or post-surgery.
Performance Analysis
The company's strong performance in Q2 2024 was driven by organic growth in its Personal Care services, which accounted for 74.2% of total revenues. Personal Care revenues increased by 8.8% on a same-store basis, reflecting higher volumes and rate increases in key markets. The Hospice segment contributed 19.5% of revenues, with a 6.3% organic revenue growth, while the Home Health segment showed positive growth trends with higher same-store revenue, admissions, and volumes.
"Addus delivered another strong financial and operating performance for the second quarter of 2024, demonstrating consistent execution of our growth strategy," said Dirk Allison, Chairman and Chief Executive Officer.
Financial Achievements
For the first six months of 2024, net service revenues increased by 11.0% to $567.7 million from $511.6 million in the prior-year period. Net income for the first half of the year was $33.9 million, compared to $27.5 million in the same period in 2023, with net income per diluted share at $2.06, up from $1.69. Adjusted EBITDA for the first six months rose by 24.2% to $67.7 million from $54.6 million in the previous year.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Net Service Revenues | $286.9M | $260.0M | $567.7M | $511.6M |
| Net Income | $18.1M | $14.9M | $33.9M | $27.5M |
| Net Income per Diluted Share | $1.10 | $0.91 | $2.06 | $1.69 |
| Adjusted EBITDA | $35.3M | $28.3M | $67.7M | $54.6M |
Balance Sheet and Cash Flow
As of June 30, 2024, Addus HomeCare Corp reported cash of $173.3 million, with capacity and availability under its revolving credit facility of $504.4 million and $496.4 million, respectively. Net cash provided by operating activities was $18.8 million for Q2 2024. The company completed a public offering of 1,725,000 shares of common stock at $108.00 per share, generating net proceeds of approximately $176.1 million.
Acquisitions and Future Outlook
In Q2 2024, Addus HomeCare Corp announced a definitive agreement to acquire the personal care operations of Gentiva for approximately $350.0 million. This acquisition is expected to close in Q4 2024, expanding Addus's market coverage in seven states, including Texas and Missouri.
"The Gentiva acquisition fits squarely into our growth strategy to leverage our strong personal care experience to build scale in existing markets as well as enter select new markets," added Allison.
Overall, Addus HomeCare Corp's Q2 2024 financial results demonstrate robust revenue growth and improved profitability, positioning the company well for future expansion and continued success in the home care services industry.
Explore the complete 8-K earnings release (here) from Addus HomeCare Corp for further details.
