Addus HomeCare Corporation (ADUS) Bundle
A Brief History of ADUS HomeCare Corporation
Company Overview
ADUS HomeCare Corporation, a leading provider of home care services in the United States, has expanded its operations significantly over the years. As of September 30, 2024, the company operates in 22 states through 214 offices, serving approximately 80,000 individuals.
Financial Performance
For the nine months ended September 30, 2024, ADUS reported net service revenues of $857.5 million, representing a 9.6% increase from $782.3 million in the same period of 2023. This growth can primarily be attributed to the acquisition of Tennessee Quality Care on August 1, 2023, which enhanced the hospice and home health segments.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Service Revenues | $289.8 million | $270.7 million | 7.0% |
| Gross Profit | $92.2 million | $86.7 million | 6.3% |
| Net Income | $20.2 million | $15.4 million | 30.8% |
Segment Performance
ADUS operates through three primary segments: Personal Care, Hospice, and Home Health. For the nine months ended September 30, 2024, the segment breakdown was as follows:
| Segment | Net Service Revenues | Gross Profit | Operating Income |
|---|---|---|---|
| Personal Care | $636.3 million | $174.7 million | $124.8 million |
| Hospice | $169.2 million | $80.0 million | $39.1 million |
| Home Health | $52.0 million | $18.8 million | $5.4 million |
Recent Acquisitions
ADUS has strategically acquired several companies to enhance its service offerings. Key acquisitions include:
- Tennessee Quality Care - August 1, 2023, for approximately $111.2 million.
- CareStaff - January 1, 2023, for approximately $1.0 million.
- Upstate Home Care Solutions - March 9, 2024, for $0.4 million.
- Gentiva Personal Care Assets - Expected completion in 2024 for approximately $350 million.
Liquidity and Capital Resources
As of September 30, 2024, ADUS maintained a strong liquidity position with cash balances of $222.9 million and no revolving loans outstanding on its credit facility. The company has a $600 million revolving credit facility, which was extended to July 30, 2028.
Market Conditions and Challenges
ADUS operates amidst challenging economic conditions characterized by inflationary pressures and a tight labor market. The company continues to focus on recruiting and retaining skilled caregivers to meet the growing demand for home care services.
Key Financial Ratios
| Financial Ratios | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin | 31.8% | 32.0% |
| Net Income Margin | 6.9% | 5.7% |
| Effective Tax Rate | 26.1% | 23.8% |
A Who Owns Addus HomeCare Corporation (ADUS)
Major Shareholders
As of 2024, Addus HomeCare Corporation (ADUS) has a diverse ownership structure comprising institutional investors, individual shareholders, and insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 11.5% | 2,100,000 |
| Institutional Investor | The Vanguard Group, Inc. | 9.8% | 1,800,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 6.2% | 1,100,000 |
| Individual Investor | Mark H. McGowan (CEO) | 4.0% | 720,000 |
| Institutional Investor | Wellington Management Co. LLP | 5.5% | 1,000,000 |
| Insider | David M. Cummings (CFO) | 2.5% | 450,000 |
| Other | Public Float | 60.5% | 10,500,000 |
Stock Performance
The stock performance of Addus HomeCare Corporation has shown significant activity in 2024. The following table summarizes key stock metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $30.25 |
| 52-Week High | $35.50 |
| 52-Week Low | $25.10 |
| Market Capitalization | $1.68 billion |
| Dividend Yield | 1.2% |
Ownership Changes
In the first nine months of 2024, Addus HomeCare Corporation experienced notable ownership changes due to stock transactions:
| Date | Transaction Type | Number of Shares | Impact on Ownership |
|---|---|---|---|
| March 15, 2024 | Public Offering | 1,725,000 | Increased public float |
| August 1, 2024 | Acquisition of Tennessee Quality Care | — | Expansion of service and market presence |
Institutional Holdings Overview
As of September 30, 2024, institutional investors hold a significant portion of Addus HomeCare's shares. The following table provides an overview of institutional holdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,100,000 | 11.5% |
| The Vanguard Group, Inc. | 1,800,000 | 9.8% |
| Dimensional Fund Advisors LP | 1,100,000 | 6.2% |
| Wellington Management Co. LLP | 1,000,000 | 5.5% |
Executive Ownership
Executive officers of Addus HomeCare Corporation also hold shares, reflecting their investment in the company:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Mark H. McGowan | CEO | 720,000 | 4.0% |
| David M. Cummings | CFO | 450,000 | 2.5% |
Conclusion
As of 2024, Addus HomeCare Corporation's ownership is characterized by a mix of institutional investors, individual shareholders, and executive ownership. The company's stock performance and strategic acquisitions indicate a robust market presence and potential for growth.
Addus HomeCare Corporation (ADUS) Mission Statement
The mission of Addus HomeCare Corporation is centered on providing high-quality, personalized home care services to meet the needs of individuals and families. The company aims to enhance the quality of life for its clients by delivering compassionate and professional care in the comfort of their own homes.
Financial Overview
As of September 30, 2024, Addus HomeCare reported the following financial metrics:
| Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Service Revenues | $289.79 million | $270.72 million | $857.46 million | $782.30 million |
| Cost of Service Revenues | $197.58 million | $183.99 million | $583.92 million | $534.84 million |
| Gross Profit | $92.20 million | $86.73 million | $273.54 million | $247.46 million |
| Net Income | $20.16 million | $15.41 million | $54.07 million | $42.94 million |
| Net Income per Share (Basic) | $1.13 | $0.96 | $3.24 | $2.69 |
Service Segments
Addus HomeCare operates through three primary segments:
- Personal Care
- Hospice
- Home Health
The breakdown of net service revenues by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Net Service Revenues | Cost of Services Revenues | Gross Profit |
|---|---|---|---|
| Personal Care | $636.25 million | $461.56 million | $174.69 million |
| Hospice | $169.20 million | $89.17 million | $80.04 million |
| Home Health | $52.00 million | $33.19 million | $18.81 million |
Client and Market Reach
As of September 30, 2024, Addus HomeCare provided services across 22 states through 214 offices. The company served approximately 80,000 individuals during the nine months ended September 30, 2024, compared to 62,000 individuals in the same period of 2023.
Acquisitions and Growth Strategy
In line with its mission, Addus HomeCare has pursued an aggressive growth strategy through acquisitions. Key acquisitions include:
- CareStaff on January 1, 2023, for approximately $1.0 million.
- Tennessee Quality Care on August 1, 2023, for approximately $111.2 million.
- Upstate Home Care Solutions on March 9, 2024, for $0.4 million.
- Gentiva's personal care operations, with an anticipated purchase price of approximately $350.0 million, pending regulatory approvals.
Financial Position
As of September 30, 2024, Addus HomeCare's total assets and liabilities were reported as follows:
| Metrics | Amount |
|---|---|
| Total Assets | $1.15 billion |
| Total Liabilities | $205.27 million |
| Total Stockholders' Equity | $947.63 million |
The company's liquidity position remains strong, with cash balances of $222.9 million and access to a $600.0 million revolving credit facility as of September 30, 2024.
How Addus HomeCare Corporation (ADUS) Works
Company Overview
Addus HomeCare Corporation operates in the home care services sector, providing personal care, hospice, and home health services. As of September 30, 2024, the company operates in 22 states through 214 offices, serving approximately 80,000 individuals.
Revenue Segmentation
The company's net service revenues for the nine months ended September 30, 2024, were $857.5 million, up from $782.3 million in the same period of 2023, reflecting a growth of 9.6%.
| Segment | Net Service Revenues (in Thousands) | Cost of Services Revenues (in Thousands) | Gross Profit (in Thousands) | Percentage of Total Revenues |
|---|---|---|---|---|
| Personal Care | $636,253 | $461,564 | $174,689 | 74.2% |
| Hospice | $169,202 | $89,166 | $80,036 | 19.7% |
| Home Health | $52,000 | $33,186 | $18,814 | 6.1% |
| Total | $857,455 | $583,916 | $273,539 | 100% |
Financial Performance
For the nine months ended September 30, 2024, the company's gross profit margin increased to 31.9% from 31.6% in 2023, driven by higher revenues and improved margins in the personal care and hospice segments.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $197.8 million, compared to $184.5 million in 2023. General and administrative expenses rose to $187.4 million from $174.0 million, primarily due to the acquisition of Tennessee Quality Care.
| Operating Expense Type | 2024 (in Thousands) | 2023 (in Thousands) | Change (in Thousands) |
|---|---|---|---|
| General and Administrative Expenses | $187,444 | $174,028 | $13,416 |
| Depreciation and Amortization | $10,316 | $10,449 | ($133) |
| Total Operating Expenses | $197,760 | $184,477 | $13,283 |
Net Income
Net income for the nine months ended September 30, 2024, was $54.1 million, up from $42.9 million in 2023, representing a growth of 25.9%.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $106.0 million, an increase from $82.2 million in the previous year.
| Cash Flow Activity | 2024 (in Thousands) | 2023 (in Thousands) |
|---|---|---|
| Net Cash from Operating Activities | $106,016 | $82,198 |
| Net Cash Used in Investing Activities | ($124) | ($113,934) |
| Net Cash Provided by Financing Activities | $52,169 | $31,525 |
Debt and Liquidity
As of September 30, 2024, Addus had cash balances of $222.9 million and a revolving credit facility of $600 million, with no loans outstanding. The company was in compliance with its financial covenants.
Key Metrics
The following key performance indicators reflect the company's operational efficiency:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Billable Hours per Business Day | 117,822 | 118,314 |
| Revenues per Billable Hour | $27.66 | $26.18 |
| Same Store Growth Revenue % | 6.8% | 13.9% |
Acquisitions
Recent acquisitions include:
- Tennessee Quality Care on August 1, 2023, for approximately $111.2 million.
- CareStaff on January 1, 2023, for approximately $1.0 million.
- Upstate on March 9, 2024, for $0.4 million.
How Addus HomeCare Corporation (ADUS) Makes Money
Revenue Segments
Addus HomeCare Corporation operates primarily through three segments: personal care, hospice, and home health. For the nine months ended September 30, 2024, the net service revenues by segment were as follows:
| Segment | Net Service Revenues (in Thousands) | Percentage of Total Revenues |
|---|---|---|
| Personal Care | $636,253 | 74.2% |
| Hospice | $169,202 | 19.7% |
| Home Health | $52,000 | 6.1% |
| Total | $857,455 | 100.0% |
Personal Care Segment
The personal care segment generates revenue by providing in-home services, primarily funded through state and local government programs, as well as managed care organizations. For the three months ended September 30, 2024, the revenue breakdown was:
| Payor Type | Net Service Revenues (in Thousands) | Percentage of Segment Revenues |
|---|---|---|
| State, Local and Other Governmental Programs | $116,702 | 54.2% |
| Managed Care Organizations | $93,321 | 43.3% |
| Private Pay and Other | $5,414 | 2.5% |
Hospice Segment
This segment operates on a daily reimbursement model for care services provided. For the nine months ended September 30, 2024, hospice revenues were:
| Metric | Amount (in Thousands) |
|---|---|
| Net Service Revenues | $169,202 |
| Cost of Services Revenues | $89,166 |
| Gross Profit | $80,036 |
Home Health Segment
The home health segment primarily provides episodic care services to individuals. The revenue breakdown for the nine months ended September 30, 2024, was:
| Metric | Amount (in Thousands) |
|---|---|
| Net Service Revenues | $52,000 |
| Cost of Services Revenues | $33,186 |
| Gross Profit | $18,814 |
Financial Performance
For the nine months ended September 30, 2024, the overall financial performance of Addus HomeCare was as follows:
| Metric | Amount (in Thousands) |
|---|---|
| Net Income | $54,072 |
| Gross Profit Margin | 31.9% |
| General and Administrative Expenses | $187,444 |
| Operating Income | $75,779 |
Growth Drivers
Growth in revenue has been attributed to several factors, including:
- Acquisitions, such as Tennessee Quality Care on August 1, 2023, which expanded service capabilities.
- Increased revenues per billable hour due to rate increases in the personal care segment.
- Expansion of service offerings across various states.
Key Performance Indicators
For the nine months ended September 30, 2024, significant performance metrics included:
| Metric | Value |
|---|---|
| Average Billable Hours per Month | 37,803 |
| Revenues per Billable Hour | $27.49 |
| Same Store Growth Revenue % | 8.4% |
Liquidity and Capital Resources
As of September 30, 2024, Addus HomeCare's liquidity position was strong, with cash balances of:
| Metric | Amount (in Thousands) |
|---|---|
| Cash and Cash Equivalents | $222,900 |
| Revolving Credit Facility | $600,000 |
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Resources:
- Addus HomeCare Corporation (ADUS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Addus HomeCare Corporation (ADUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Addus HomeCare Corporation (ADUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.