Business Wire | Aug 2, 2021 04:06PM EDT

Addus HomeCare Announces Second-Quarter 2021 Financial Results

Aug. 02, 2021

FRISCO, Texas--(BUSINESS WIRE)--Aug. 02, 2021--Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced its financial results for the second quarter and six months ended June 30, 2021.

Net service revenues were $217.9 million for the second quarter of 2021, up 18.1% from $184.6 million for the second quarter of 2020. Net income was $11.6 million, up 67.9% compared with $6.9 million for the second quarter of 2020, while net income per diluted share was $0.72 compared with $0.43 per diluted share for the prior-year period. Adjusted net income per diluted share increased 23.3% to $0.90 for the second quarter of 2021 from $0.73 for the second quarter of 2020.

Adjusted net income per diluted share for the second quarter of 2021 excludes the impact of a retroactive Illinois rate increase of $0.07, acquisition and de novo expenses of $0.11, restructure and other costs of $0.02 and stock-based compensation expense of $0.12. (See page 9 for a reconciliation of all non-GAAP and GAAP financial measures in this news release.) Adjusted EBITDA increased 30.1% to $24.3 million for the second quarter of 2021 from $18.7 million for the second quarter of 2020.

For the first six months of 2021, net service revenues increased 12.9% to $423.2 million from $374.8 million for the prior-year period. Net income increased 31.6% to $20.5 million for the first six months of 2021 compared with $15.6 million for the same period in 2020, and net income per diluted share was $1.28 compared with $0.98 per diluted share. Adjusted net income increased 14.2% to $27.4 million for the first six months of 2021 compared with $24.0 million for the prior-year period, while adjusted net income per diluted share grew 12.5% to $1.71 from $1.52. Adjusted EBITDA increased 23.7% to $45.1 million for the first six months of 2021 from $36.4 million for the first six months of 2020.

At June 30, 2021, the Company had cash of $139.4 million and bank debt of $196.1 million, while availability under its revolving credit facility was $112.8 million. Net cash provided in operating activities was $15.0 million for the second quarter of 2021.

Dirk Allison, President and Chief Executive Officer, commented, "We are pleased with the trends in our business for the second quarter of 2021, as Addus delivered solid financial and operating results. We experienced higher demand in the second quarter, leading to 7.4% organic growth for our personal care services, which accounted for 80.9% of our total revenue. Over the last twelve months, this organic growth has averaged approximately 5%, at the high end of our target range of 3-5%. Additionally, our home health business had a strong quarter, up 24.7% over the same period last year. While admissions were up in our hospice business, which includes the Queen City acquisition, we continued to experience a shorter median length of stay than we have seen historically, which affected census growth. Our median length of stay and average daily census increased sequentially, and we expect that volume trends in hospice will continue to improve."

Mr. Allison continued, "Addus plays a critical and growing role in today's healthcare continuum with our ability to safely serve the needs of more patients in their homes. We believe that federal policymakers and our states and payors increasingly recognize this value, particularly following the pandemic of the last fifteen months. We appreciate this recognition and support. As an example of this recognition, Illinois recently announced a significant investment in home care providers with a retroactive rate increase related to the first quarter of this year to match the previously announced increase that was effective April 1, 2021."

Amended and Restated Credit FacilityThe Company also announced that it has executed on a new senior secured credit facility effective July 30, 2021, that expands its revolving credit to $600 million from $300 million. The agreement has an accordion feature that enables the credit facility to be expanded by an incremental $125 million for funding acquisitions. The maturity of the new facility has also been extended from May 2023 to July 2026. Capital One, National Association, acted as lead agent for the bank lending group.

Mr. Allison commented, "We are excited to complete this significant expansion of our credit facility to support our ability to grow, both organically and through acquisitions. We appreciate the confidence in our business demonstrated by the significant financial institutions participating in the bank lending group."

AcquisitionsAddus also closed its previously announced acquisition of Armada Home Health and Hospice on August 1, 2021. Allison added, "We completed the acquisition of Armada to increase our clinical depth and operational strength in New Mexico and enhance our ability to provide all three levels of home care in this important market for Addus. We are pleased to welcome Armada's experienced management team and clinical staff to the Addus family. Our acquisition pipeline continues to be strong, and we remain focused on identifying opportunities to add clinical services to our existing personal care markets with the goal of having all three levels of home care in additional markets. With our new credit facility, we continue to have the financial capacity to build on our track record of completing strategic acquisitions to extend our market reach."

Non-GAAP Financial MeasuresThe information provided in this release includes adjusted net income, adjusted EBITDA and adjusted net income per diluted share, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition and de novo expenses, stock-based compensation expense, restructure expenses, and other costs. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, acquisition and de novo expenses, stock-based compensation expense, restructure expenses, and other costs. The Company defines adjusted diluted earnings per share as earnings per share, adjusted for acquisition and de novo expenses, stock compensation expense, restructure expenses, and other costs. The Company defined adjusted net income, adjusted EBITDA, adjusted diluted earnings per share to exclude net COVID expenses arising from the pandemic from the second quarter of 2020 to the first quarter of 2021. The Company defines adjusted net service revenues as revenue adjusted for the closure of certain sites. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income, a reconciliation of adjusted diluted earnings per share to earnings per share, and a reconciliation of adjusted net service revenues to net service revenues, in each case, the most directly comparable GAAP measure. Management believes that adjusted net income, adjusted EBITDA, adjusted diluted earnings per share, and adjusted net service revenues are 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 to 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.

Conference CallAddus will host a conference call on Tuesday, August 3, 2021, at 9:00 a.m. Eastern time. The toll-free dial-in number is (877) 930-8289 (international dial-in number is (253) 336-8714), passcode 4489483. A telephonic replay of the conference call will be available through midnight on August 10, 2021, by dialing (855) 859-2056 (international dial-in number is (404) 537-3406) and entering pass code 4489483.

A live broadcast of Addus HomeCare's conference call will be available under the Investor Relations section of the Company's website: www.addus.com. An online replay will also be available on the Company's website for one month, beginning approximately two hours following the conclusion of the live broadcast.

Forward-Looking StatementsCertain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "preliminary," "continue," "expect," and similar expressions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including discretionary determinations by government officials, the consummation and integration of acquisitions, anticipated transition to managed care providers, our ability to successfully execute our growth strategy, unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare's relationships with referral sources, increased competition for Addus HomeCare's services, changes in the interpretation of government regulations, the uncertainty regarding the outcome of discussions with managed care organizations, changes in tax rates, the impact of adverse weather, higher than anticipated costs, lower than anticipated cost savings, estimation inaccuracies in future revenues, margins, earnings and growth, whether any anticipated receipt of payments will materialize, any future impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, and other risks set forth in the Risk Factors section in Addus HomeCare's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2021, which is available at www.sec.gov. The financial information described herein and the periods to which they relate are preliminary estimates that are subject to change and finalization. There is no assurance that the final amounts and adjustments will not differ materially from the amounts described above, or that additional adjustments will not be identified, the impact of which may be material. Addus HomeCare undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties, and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. (Unaudited tables and notes follow).

About Addus HomeCareAddus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare's consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare's payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 44,000 consumers through 210 locations across 22 states. For more information, please visit www.addus.com.

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(amounts and shares in thousands, except per share data)

(Unaudited)



For the Three Months For the Six Months

Income Statement Information: Ended June 30, Ended June 30,

2021 2020 2021 2020

Net service revenues $ 217,893 $ 184,576 $ 423,195 $ 374,792

Cost of service revenues 149,083 129,579 293,188 263,960

Gross profit 68,810 54,997 130,007 110,832

31.6 % 29.8 % 30.7 % 29.6 %

General and administrative 48,175 42,450 93,601 84,737 expenses

Depreciation and amortization 3,587 2,940 7,188 5,827

Total operating expenses 51,762 45,390 100,789 90,564

Operating income from 17,048 9,607 29,218 20,268 continuing operations

Total interest expense, net 1,231 566 2,425 1,140

Income before income taxes 15,817 9,041 26,793 19,128

Income tax expense 4,220 2,134 6,302 3,563

Net income $ 11,597 $ 6,907 $ 20,491 $ 15,565

Net income per diluted share: $ 0.72 $ 0.43 $ 1.28 $ 0.98

Weighted average number of common shares outstanding:

Diluted 16,043 15,916 16,063 15,917

For the Three Months For the Six Months

Cash Flow Information: Ended June 30, Ended June 30,

2021 2020 2021 2020

Net cash (used in) provided by $ 15,045 $ 30,445 $ (3,321 ) $ 50,887 operating activities

Net cash (used in) investing (907 ) (2,131 ) (1,928 ) (4,965 )activities

Net cash (used in) provided by (285 ) (228 ) (429 ) 913 financing activities

Net change in cash 13,853 28,086 (5,678 ) 46,835

Cash at the beginning of the 125,547 130,463 145,078 111,714 period

Cash at the end of the period $ 139,400 $ 158,549 $ 139,400 $ 158,549

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

Assets

June 30,

2021

2020

Current assets

Cash

$

139,400

$

158,549

Accounts receivable, net

138,270

126,389

Prepaid expenses and other current assets

12,740

11,398

Total current assets

290,410

296,336

Property and equipment, net

18,708

14,707

Other assets

Goodwill

469,476

275,433

Intangible assets, net

67,247

53,073

Deferred tax assets, net

6,128

1,547

Operating lease assets

37,191

19,825

Total other assets

580,042

349,878

Total assets

$

889,160

$

660,921

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$

23,942

$

17,201

Accrued payroll

33,836

28,787

Accrued expenses

35,717

32,674

Government stimulus advance

8,094

-

Accrued workers compensation

14,382

14,075

Current portion of long-term debt, net of debt issuance costs

973

948

Total current liabilities

116,944

93,685

Long-term debt, less current portion, net of debt issuance costs

193,714

59,048

Long-term lease liability, less current portion

34,339

12,672

Other long-term liabilities

108

655

Total long-term liabilities

228,161

72,375

Total liabilities

345,105

166,060

Total stockholders' equity

544,055

494,861

Total liabilities and stockholders' equity

$

889,160

$

660,921

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)



June 30,

Assets 2021 2020



Current assets

Cash $ 139,400 $ 158,549

Accounts receivable, net 138,270 126,389

Prepaid expenses and other current assets 12,740 11,398

Total current assets 290,410 296,336

Property and equipment, net 18,708 14,707

Other assets

Goodwill 469,476 275,433

Intangible assets, net 67,247 53,073

Deferred tax assets, net 6,128 1,547

Operating lease assets 37,191 19,825

Total other assets 580,042 349,878

Total assets $ 889,160 $ 660,921

Liabilities and stockholders' equity

Current liabilities

Accounts payable $ 23,942 $ 17,201

Accrued payroll 33,836 28,787

Accrued expenses 35,717 32,674

Government stimulus advance 8,094 -

Accrued workers compensation 14,382 14,075

Current portion of long-term debt, net of debt issuance 973 948costs

Total current liabilities 116,944 93,685

Long-term debt, less current portion, net of debt issuance 193,714 59,048costs

Long-term lease liability, less current portion 34,339 12,672

Other long-term liabilities 108 655

Total long-term liabilities 228,161 72,375

Total liabilities 345,105 166,060

Total stockholders' equity 544,055 494,861

Total liabilities and stockholders' equity $ 889,160 $ 660,921

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Net Service Revenues by Segment

(Amounts in thousands)

(Unaudited)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2021

2020

2021

2020

Net Service Revenues by Segment

Personal Care

$

176,267

$

156,268

$

341,135

$

316,933

Hospice

36,909

24,525

73,003

49,737

Home Health

4,717

3,783

9,057

8,122

Total Revenue

$

217,893

$

184,576

$

423,195

$

374,792

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Net Service Revenues by Segment

(Amounts in thousands)

(Unaudited)



For the Three Months For the Six Months Ended June 30, Ended June 30,

2021 2020 2021 2020

Net Service Revenues by Segment

Personal Care $ 176,267 $ 156,268 $ 341,135 $ 316,933

Hospice 36,909 24,525 73,003 49,737

Home Health 4,717 3,783 9,057 8,122

Total Revenue $ 217,893 $ 184,576 $ 423,195 $ 374,792

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Key Statistical and Financial Data (Unaudited)

General

Personal Care

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2021

2020

2021

2020

States served at period end

-

-

22

24

Locations at period end

-

-

164

150

Average billable census - same store

36,952

36,197

36,870

37,560

Average billable census - acquisitions (1)

1,541

-

1,540

-

Average billable census total (2)

38,493

36,197

38,410

37,560

Billable hours (in thousands)

7,650

7,374

15,187

15,048

Average billable hours per census per month

65.9

67.5

65.6

66.3

Billable hours per business day

117,688

113,447

117,729

115,750

Revenues per billable hour

$

22.60

$

21.14

$

22.42

$

21.01

Organic growth

- Revenue

7.4

%

9.7

%

5.9

%

11.8

%

Hospice

Locations served at period end

-

-

33

30

Admissions

2,252

1,339

4,646

2,994

Average daily census

2,460

1,743

2,430

1,803

Average discharge length of stay

89.3

103.1

95.6

101.0

Patient days

223,901

158,644

439,908

328,156

Revenue per patient day

$

164.85

$

154.59

$

165.95

$

151.57

Organic growth

- Revenue

(8.4

)%

2.7

%

(8.4

)%

2.7

%

- Average daily census

(14.3

)%

3.6

%

(27.2

)%

8.7

%

Home Health

Locations served at period end

-

-

10

10

New Admissions

1,186

1,068

2,354

2,090

Recertifications

738

689

1,395

1,399

Total Volume

1,924

1,757

3,749

3,489

Visits

31,582

29,797

59,247

63,507

Organic growth

- Revenue

24.7

%

(4.3

)%

11.5

%

4.1

%

- New admissions

29.5

%

15.4

%

21.5

%

13.1

%

Percentage of Revenues by Payor:

Personal Care

State, local and other governmental programs

50.2

%

50.0

%

49.6

%

49.7

%

Managed care organizations

44.7

44.3

45.2

44.6

Private duty

2.9

3.2

2.9

3.2

Commercial

1.5

1.5

1.5

1.6

Other

0.7

%

1.0

%

0.8

%

0.9

%

Hospice

Medicare

93.3

%

92.8

%

93.8

%

92.4

%

Managed care organizations

3.8

4.9

3.9

5.2

Other

2.9

%

2.3

%

2.3

%

2.4

%

Home Health

Medicare

81.1

%

79.6

%

80.9

%

79.8

%

Managed care organizations

17.4

18.2

17.9

18.4

Other

1.5

%

2.2

%

1.2

%

1.8

%

(1) The average billable census in acquisitions of 717 and 855 for the three and six months ended June 30, 2020 was reclassified to average billable census - same stores for comparability purposes. The average billable census for the three and six months ended June 30, 2021 was prorated for the date of the acquisition.

(2) Exited sites would have reduced same store census for the three and six months ended June 30, 2020 by 727 and 765, respectively.

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Key Statistical and Financial Data (Unaudited)

General For the Three Months For the Six Months Ended June 30, Ended June 30, 2021 2020 2021 2020Personal Care

States served at period end - - 22 24

Locations at period end - - 164 150

Average billable census - 36,952 36,197 36,870 37,560 same store

Average billable census - 1,541 - 1,540 - acquisitions (1)

Average billable census total 38,493 36,197 38,410 37,560 (2)

Billable hours (in thousands) 7,650 7,374 15,187 15,048

Average billable hours per 65.9 67.5 65.6 66.3 census per month

Billable hours per business 117,688 113,447 117,729 115,750 day

Revenues per billable hour $ 22.60 $ 21.14 $ 22.42 $ 21.01

Organic growth

- Revenue 7.4 % 9.7 % 5.9 % 11.8 %

Hospice

Locations served at period - - 33 30 end

Admissions 2,252 1,339 4,646 2,994

Average daily census 2,460 1,743 2,430 1,803

Average discharge length of 89.3 103.1 95.6 101.0 stay

Patient days 223,901 158,644 439,908 328,156

Revenue per patient day $ 164.85 $ 154.59 $ 165.95 $ 151.57

Organic growth

- Revenue (8.4 ) 2.7 % (8.4 ) 2.7 % % %

- Average daily census (14.3 ) 3.6 % (27.2 ) 8.7 % % %

Home Health

Locations served at period - - 10 10 end

New Admissions 1,186 1,068 2,354 2,090

Recertifications 738 689 1,395 1,399

Total Volume 1,924 1,757 3,749 3,489

Visits 31,582 29,797 59,247 63,507

Organic growth

- Revenue 24.7 % (4.3 ) 11.5 % 4.1 % %

- New admissions 29.5 % 15.4 % 21.5 % 13.1 %

Percentage of Revenues by Payor:

Personal Care

State, local and other 50.2 % 50.0 % 49.6 % 49.7 %governmental programs

Managed care organizations 44.7 44.3 45.2 44.6

Private duty 2.9 3.2 2.9 3.2

Commercial 1.5 1.5 1.5 1.6

Other 0.7 % 1.0 % 0.8 % 0.9 %

Hospice

Medicare 93.3 % 92.8 % 93.8 % 92.4 %

Managed care organizations 3.8 4.9 3.9 5.2

Other 2.9 % 2.3 % 2.3 % 2.4 %

Home Health

Medicare 81.1 % 79.6 % 80.9 % 79.8 %

Managed care organizations 17.4 18.2 17.9 18.4

Other 1.5 % 2.2 % 1.2 % 1.8 %

(1) The average billable census in acquisitions of 717 and 855 for the three and six months ended June 30, 2020 was reclassified to average billable census - same stores for comparability purposes. The average billable census for the three and six months ended June 30, 2021 was prorated for the date of the acquisition.

(2) Exited sites would have reduced same store census for the three and six months ended June 30, 2020 by 727 and 765, respectively.

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Amounts in thousands, except per share data)

(Unaudited) (1)

For the Three Months For the Six Months Ended June 30, Ended June 30,Reconciliation of AdjustedEBITDA to Net Income: (2) 2021 2020 2021 2020



Net income $ 11,597 $ 6,907 $ 20,491 $ 15,565

Interest expense, net 1,231 566 2,425 1,140

Loss on sale of assets 16 353 16 353

Income tax expense 4,220 2,134 6,302 3,563

Depreciation and amortization 3,587 2,940 7,188 5,827

Impact of retroactive Illinois (1,438 ) - - - rate increase, net

COVID-19 expense, net - 263 (591 ) 526

Acquisition and de novo 2,245 1,911 3,720 3,544 expenses

Stock-based compensation 2,525 1,118 4,764 2,525 expense

Restructure and other costs 352 2,519 754 3,392

Adjusted EBITDA $ 24,335 $ 18,711 $ 45,069 $ 36,435

Reconciliation of Adjusted Net Income to Net Income: (3)

Net income $ 11,597 $ 6,907 $ 20,491 $ 15,565

Loss on sale of assets, net of 12 288 12 288 tax

Impact of retroactive Illinois (1,054 ) - - - rate increase, net of tax

COVID-19 expense, net of tax - 206 (479 ) 428

Acquisition and de novo 1,790 1,494 3,142 2,898 expenses, net of tax

Stock-based compensation 1,851 874 3,666 2,063 expense, net of tax

Restructuring and other costs, 258 1,965 584 2,772 net of tax

Adjusted Net Income $ 14,454 $ 11,734 $ 27,416 $ 24,014

Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (4)

Net income per diluted share $ 0.72 $ 0.43 $ 1.28 $ 0.98

Impact of retroactive Illinois (0.07 ) - - - rate increase per diluted share

Loss on sale of assets per - 0.02 - 0.02 diluted share

COVID-19 expense, net per - 0.01 (0.03 ) 0.03 diluted share

Acquisition and de novo 0.11 0.09 0.20 0.18 expenses per diluted share

Restructure and other costs per 0.02 0.12 0.04 0.18 diluted share

Stock-based compensation 0.12 0.06 0.22 0.13 expense per diluted share

Adjusted net income per diluted $ 0.90 $ 0.73 $ 1.71 $ 1.52 share

Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (5)

Net service revenues $ 217,893 $ 184,576 $ 423,195 $ 374,792

Revenues associated with the 0 (2,374 ) 2 (4,764 )closure of certain sites

Adjusted net service revenues $ 217,893 $ 182,202 $ 423,197 $ 370,028

(1) The Company defined adjusted net income, adjusted EBITDA, and adjusted diluted earnings per share to exclude net COVID expenses arising from the pandemic from the second quarter of 2020 to the first quarter of 2021.

(2) We define Adjusted EBITDA as earnings before interest expense, interest income from the state of Illinois, other non-operating income, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, restructure expenses, and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

(3) We define Adjusted Net Income as net income before interest income from the state of Illinois, M&A expenses, stock-based compensation expense, restructure expenses, and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. Adjusted Net Income is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

(4) We define Adjusted diluted earnings per share as earnings per share, adjusted for interest income from the State of Illinois, M&A expenses, stock compensation expense and restructure expense, and other costs and loss on the sale of assets associated with Hospice Partners of Kansas. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

(5) We define Adjusted net service revenues as revenue adjusted for the closure of certain sites. Adjusted net service revenues is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP.

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CONTACT: Brian W. Poff Executive Vice President, Chief Financial Officer Addus HomeCare Corporation (469) 535-8200 investorrelations@addus.com

CONTACT: Dru Anderson CCI FINN Partners (615) 324-7346 dru.anderson@finnpartners.com