On February 24, 2025, Addus HomeCare Corp (ADUS, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. Addus HomeCare Corp, a provider of in-home personal care services, operates through segments such as Personal Care, Hospice, and Home Health, catering primarily to the elderly, chronically ill, and disabled.
Quarterly and Annual Financial Highlights
For the fourth quarter of 2024, Addus HomeCare Corp reported net service revenues of $297.1 million, marking a 7.5% increase from $276.4 million in the same period of 2023. This figure exceeded the analyst estimate of $291.53 million. However, the company's net income per diluted share was $1.07, falling short of the estimated earnings per share (EPS) of $1.24. Adjusted net income per diluted share rose to $1.38, a 4.6% increase year-over-year.
For the full year 2024, net service revenues increased by 9.1% to $1.15 billion, slightly surpassing the annual revenue estimate of $1.14893 billion. Net income for the year was $73.6 million, with an EPS of $4.23, which was below the annual estimate of $4.42. Adjusted EBITDA for the year increased by 15.9% to $140.3 million.
Segment Performance and Strategic Initiatives
The Personal Care segment, a key revenue driver, accounted for 74.1% of the company's revenue in Q4, with a 5.8% organic revenue growth rate. The Hospice segment contributed 19.9% of the business, showing a solid organic revenue growth of 7.8%. The Home Health segment, the smallest, accounted for 6.0% of total revenue.
Dirk Allison, Chairman and CEO, commented on the results, stating,
Our fourth quarter financial and operating performance marked a strong finish to another successful year for Addus. We achieved top-line revenue growth of 7.5%, and adjusted EBITDA was 10.3% higher for the fourth quarter of 2024 compared with the same period last year."
Financial Position and Cash Flow
As of December 31, 2024, Addus HomeCare Corp had cash reserves of $98.9 million and bank debt of $223.0 million. The company reported cash flow from operations of $10.4 million for Q4 and $116.4 million for the full year. The company maintains a revolving credit facility with a capacity of $577.7 million and availability of $346.6 million.
Strategic Acquisitions and Market Expansion
In December 2024, Addus completed the acquisition of Gentiva's personal care operations, adding approximately $280 million in annualized revenues and expanding its market coverage in seven states. This acquisition positions Addus as the largest provider of personal care services in Texas and Arkansas.
Allison further noted,
We are optimistic that we will see additional acquisition opportunities in 2025. We will maintain our disciplined approach to acquisitions by identifying prospects that are a good strategic fit for Addus."
Conclusion
Addus HomeCare Corp's financial results for the fourth quarter and full year 2024 reflect robust demand for home-based care services and strategic growth through acquisitions. While the company exceeded revenue expectations, it fell short of EPS estimates, highlighting areas for potential improvement. The company's strategic initiatives and market expansion efforts position it well for continued growth in the healthcare services industry.
Explore the complete 8-K earnings release (here) from Addus HomeCare Corp for further details.
