• Total Revenue (Q4 2024): $297.1 million, up 7.5% from Q4 2023.
• Adjusted Earnings Per Share (Q4 2024): $1.38, up 4.6% from Q4 2023.
• Adjusted EBITDA (Q4 2024): $37.8 million, up 10.3% from Q4 2023.
• Total Revenue (2024): $1.2 billion, up 9.1% from 2023.
• Adjusted Earnings Per Share (2024): $5.26, up 14.9% from 2023.
• Adjusted EBITDA (2024): $140.3 million, up 15.9% from 2023.
• Cash on Hand (End of 2024): Approximately $100 million.
• Personal Care Same Store Revenue Growth (Q4 2024): 5.8% compared to Q4 2023.
• Hospice Same Store Revenue Growth (Q4 2024): 7.8% compared to Q4 2023.
• Home Health Same Store Revenue Growth (Q4 2024): 1.6% compared to Q4 2023.
• Gross Margin (Q4 2024): 33.4%, flat from Q4 2023.
• Adjusted EBITDA Margin (Q4 2024): 12.9%, up from 12.4% in Q4 2023.
• Net Cash Flow from Operations (Q4 2024): $10.4 million.
• Net Cash Flow from Operations (2024): $116.4 million.
• Days Sales Outstanding (End of Q4 2024): 34.9 days.

• Warning! GuruFocus has detected 3 Warning Sign with ADUS.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Addus HomeCare Corp (NASDAQ:ADUS) reported a 7.5% increase in total revenue for the fourth quarter of 2024, reaching $297.1 million compared to the same period in 2023.
• The company's adjusted EBITDA increased by 10.3% to $37.8 million in the fourth quarter of 2024, demonstrating strong profitability.
• Addus HomeCare Corp (NASDAQ:ADUS) completed its largest acquisition to date with Gentiva personal care, adding approximately $280 million in annualized revenues.
• The company has a conservative leveraged position at just under one times adjusted EBITDA, providing flexibility for future strategic acquisitions.
• Addus HomeCare Corp (NASDAQ:ADUS) continues to experience solid caregiver hiring success, particularly in the personal care segment, with hiring numbers up compared to the previous year.

Negative Points

• Potential changes to Medicaid funding could impact Addus HomeCare Corp (NASDAQ:ADUS), although the company believes it is well-positioned to handle any effects.
• The company experienced a one-time write-off of approximately $4.9 million related to excess corporate office space.
• Addus HomeCare Corp (NASDAQ:ADUS) anticipates a decline in gross margin percentage by approximately 200 basis points in the first quarter of 2025 due to various factors, including the integration of Gentiva.
• The clinical labor environment remains challenging, with hiring expected to be more difficult and geographically variable compared to the personal care segment.
• The company faces potential seasonal impacts, such as winter storms, which could affect personal care service delivery and revenue.

Q & A Highlights

Q: Can you clarify the impact of the Gentiva acquisition on the average revenue per hour and how it affects the overall rate? A: Brian Poff, CFO: The Gentiva acquisition, particularly in Texas, has a lower bill rate, which will bring down the average revenue per hour. Texas has a reimbursement rate of just under $17 an hour. However, this will be offset by a 5.5% increase in Illinois, our largest state, so the net effect will be a slight decrease in the average rate.

Q: How do you plan to achieve the projected 2% growth in organic volumes for personal care services in 2025? A: Brad Bickham, COO: We believe the redetermination process is largely complete, and we're seeing an uptick in admission volumes. We've also implemented a caregiver application to improve scheduling and utilization, which should help us achieve 2% to 2.5% growth in hours.

Q: What is the potential impact of Medicaid work requirements on your business? A: Brad Bickham, COO: We don't see any direct impact from Medicaid work requirements as our clients are primarily elderly and disabled. If anything, it might increase caregiver availability, but it won't negatively affect our primary clients.

Q: Can you discuss the integration progress of the Gentiva acquisition and its impact on free cash flow and EBITDA margins? A: Brad Bickham, COO: The integration is progressing well, with significant functions like payroll and benefits already transitioned smoothly. The billing and scheduling system conversion is planned for an 18-month timeframe. Brian Poff, CFO: The acquisition hasn't significantly impacted cash flow conversion, and we're pleased with the progress so far.

Q: How do you view the potential changes to Medicaid funding and its impact on Addus? A: Dirk Allison, CEO: We believe Addus is well-positioned as a low-cost provider in the home care space. Any changes to Medicaid funding are unlikely to affect us significantly, as we provide cost-effective care that reduces overall expenses for states and managed care partners.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.