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Addus HomeCare shares rise on Q4 earnings, revenue beat

Published 02/27/2024, 05:40 AM
© Reuters.
ADUS
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FRISCO, Texas - Addus HomeCare Corporation (NASDAQ: ADUS), a prominent provider of home care services, today reported a robust financial performance for the fourth quarter ended December 31, 2023. The company's adjusted earnings per share (EPS) stood at $1.32, surpassing the analyst consensus of $1.17 by $0.15.

Net service revenues also exceeded expectations, reaching $276.4 million against the predicted $274.45 million, marking an 11.9% increase from the $247.1 million reported in the fourth quarter of the previous year.

The company's net income rose to $19.6 million, or $1.20 per diluted share, from $14.8 million, or $0.91 per diluted share, in the same quarter last year. Adjusted EBITDA saw a significant year-over-year (YoY) increase of 21.3%, climbing to $34.3 million from $28.2 million. The company's strong financial performance was reflected in the market response, with Addus HomeCare's stock experiencing a positive aftermarket movement of 2.82%.

Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare, attributed the company's impressive results to the growing demand for home-based care, particularly personal care services, which accounted for 74% of the company's revenues.

Allison highlighted the company's 11.2% organic revenue growth on a same-store basis for the quarter and a record annual growth rate of 12.1% for personal care services. The CEO also noted the successful integration of Tennessee Quality Care, acquired on August 1, 2023, which expanded the company's service offerings in Tennessee.

The company's financial position remained strong, with $64.8 million in cash and a reduced bank debt of $126.4 million. The operating cash flow for the fourth quarter was reported at $30 million, contributing to the full-year cash flow of $112.2 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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