ADUS 8-K
Addus HomeCare Corp (ADUS)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
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share | The |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
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99.1 | ||
104 | Cover Page Interactive Data File (embedded within Inline XBRL document). |
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ADDUS HOMECARE CORPORATION |
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Date: August 3, 2026 | By: | /s/ Brian Poff |
Brian Poff |
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Chief Financial Officer |
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Exhibit 99.1
Contacts: |
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Brian W. Poff |
| Dru Anderson |
Executive Vice President, Chief Financial Officer | FINN Partners |
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Addus HomeCare Corporation |
| (615) 324-7346 |
(469) 535-8200 |
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ADDUS HOMECARE ANNOUNCES SECOND QUARTER
2026 FINANCIAL RESULTS
Frisco, Texas (August 3, 2026) – 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, 2026.
Second Quarter 2026 Highlights:
| ● | Net Service Revenues Increase 8.0% to $377.4 Million |
| ● | Net Income of $27.6 Million, or $1.49 per Diluted Share |
| ● | Adjusted Net Income per Diluted Share Increases 16.1% year-over-year to $1.73 |
| ● | Adjusted EBITDA Increases 11.9% year-over-year to $49.2 Million |
| ● | Cash Flow from Operations of $40.0 Million |
Overview
Net service revenues were $377.4 million for the second quarter of 2026, an 8.0% increase compared with $349.4 million for the second quarter of 2025. Net income was $27.6 million for the second quarter of 2026 compared with $22.1 million for the second quarter of 2025, while net income per diluted share was $1.49 compared with $1.20 for the same period a year ago. Adjusted EBITDA increased 11.9% to $49.2 million for the second quarter of 2026 from $43.9 million for the second quarter of 2025. Adjusted net income was $32.0 million for the second quarter of 2026 compared with $27.3 million for the prior-year period, while adjusted net income per diluted share was $1.73 compared with $1.49 for the second quarter of 2025. Adjusted net income per diluted share for the second quarter of 2026 excludes acquisition expenses of $0.06, stock-based compensation expense of $0.17, and restructure and other non-recurring costs of $0.01. (See the end of press release for a reconciliation of all non-GAAP and GAAP financial measures.)
For the first six months of 2026, net service revenues increased 7.8% to $741.0 million from $687.2 million for the prior-year period. Net income was $52.7 million for the first six months of 2026 compared with $43.3 million for the same period in 2025, and net income per diluted share was $2.85 compared with $2.36 per diluted share. Adjusted EBITDA increased 10.9% to $93.7 million for the first six months of 2026 from $84.5 million for the first six months of 2025. Adjusted net income was $62.1 million for the first six months of 2026 compared with $53.3 million for the first six months of 2025, while adjusted net income per diluted share was $3.35 compared with $2.91 for the prior-year period.
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “We are extremely pleased with the strong financial and operational performance delivered in the second quarter of 2026. Revenues grew by 8.0%, driven by solid organic growth and disciplined execution across our service lines. Our focus on cost management, operational efficiency, and leverage reduction translated into an 11.9% improvement in adjusted EBITDA and a 25.2% increase in net income over the second quarter last year. These results reflect the continued demand for high-quality cost-effective home care services and our ability to drive profitable growth.
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
“Our personal care business experienced continued momentum with a 6.8% organic revenue increase over the second quarter last year and accounted for 78.4% of revenues. This improvement reflects higher volumes, as well as two months of operations from HomeCourt Home Care, which we acquired on May 1, 2026. We also continue to benefit from rate increases implemented in two key states, including a 9.9% increase in Texas late last year and a 3.9% increase in Illinois in January, with our strong value proposition as a cost-effective provider continuing to be recognized by our state partners.
“Our hospice care business contributed strong growth with organic revenue up 11.1% over the same period last year and accounted for 17.0% of our revenue for the second quarter. This consistent growth was driven by year-over-year improvements in average daily census and revenue per patient day. Our home health business represented 4.6% of revenue for the second quarter, and we are pleased to see more favorable admission and volume trends. We continue to believe home health provides important complementary capabilities to our personal care and hospice segments, allowing us to continue offering all three levels of care and ensuring more patients in select markets receive the benefit of the full continuum of care,” said Allison.
Cash and Liquidity
As of June 30, 2026, the Company had cash of $99.6 million and bank debt of $64.3 million, with capacity and availability under its revolving credit facility of $650.0 million and $577.8 million, respectively. Net cash provided by operating activities was $40.0 million for the second quarter of 2026.
Allison added, “Our strong performance in the first half of 2026 positions us well moving forward. We generated meaningful operating cash flow and maintained a very strong balance sheet. Our low leverage allows us to invest strategically and continue to pursue targeted acquisitions. We remain disciplined in evaluating both clinical and non-clinical opportunities to enhance market density and geographic reach. By delivering a full continuum of care as we scale, we anticipate acting on meaningful synergies and uncovering further growth opportunities throughout the remainder of 2026.
Looking Ahead
“We are pleased with the trends in our business through the first half of 2026, as we continue to extend our market reach and meet the growing demand for our home-based care services. We are proud of the important work we are doing, with a proven and scalable operating model that supports a vital need for quality, compassionate care for more patients and families in the preferred home setting. We look forward to the continued addition of size and scale via organic growth and pursuit of acquisition opportunities that can increase density and geographic coverage while strengthening relationships in key markets. Importantly, we have the financial flexibility to actively pursue this growth strategy.
"We have a dedicated team of caregivers who support our mission and continue to provide outstanding care across our markets. Together, we remain focused on delivering value to both the communities we serve and our shareholders, and we look forward to the opportunities ahead for Addus in the second half of 2026,” concluded Allison.
Non-GAAP Financial Measures
The information provided in this release includes adjusted net income, adjusted EBITDA, adjusted net income per diluted share and adjusted net service revenue, which are non-GAAP financial measures. The Company defines adjusted net income as net income before acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and the gain or loss on the sale of assets. The Company defines adjusted EBITDA as earnings before net interest expense, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and the gain or loss on the sale of assets. The Company defines adjusted net income per diluted share as net income per share, adjusted for acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs, and gain or loss on the sale of assets. 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 net income per share to net income 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 net income 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.
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
Conference Call
Addus HomeCare will host a conference call on Tuesday, August 4, 2026, at 9:00 a.m. Eastern Time. Joining the call from the Company will be Dirk Allison, Chairman and CEO, Brian Poff, Executive Vice President and CFO, and Heather Dixon, President and COO. To access the live call, dial (833) 629-0620 (international dial-in number is (412) 317-1805) and ask to join the Addus HomeCare earnings call. A telephonic replay of the conference call will be available through midnight on August 11, 2026, by dialing (855) 669-9658 (international dial-in number is (412) 317-0088) and entering pass code 7054130.
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 Statements
Certain 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, 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 security breaches, cyber-attacks, loss of data or cybersecurity threats or incidents, 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 February 24, 2026, 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).
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
About Addus HomeCare
Addus 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 62,500 patients and consumers through 264 locations across 24 states. For more information, please visit www.addus.com.
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(amounts and shares in thousands, except per share data)
(Unaudited)
Income Statement Information: | | For the Three Months | | | For the Six Months | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net service revenues | | $ | 377,417 | | | $ | 349,443 | | | $ | 741,028 | | | $ | 687,151 | |
Cost of service revenues | | | 255,857 | | | | 235,566 | | | | 503,595 | | | | 465,597 | |
Gross profit | | | 121,560 | | | | 113,877 | | | | 237,433 | | | | 221,554 | |
| | | 32.2 | % | | | 32.6 | % | | | 32.0 | % | | | 32.2 | % |
General and administrative expenses | | | 78,493 | | | | 77,077 | | | | 156,264 | | | | 150,297 | |
Depreciation and amortization | | | 4,125 | | | | 3,913 | | | | 8,155 | | | | 7,856 | |
Total operating expenses | | | 82,618 | | | | 80,990 | | | | 164,419 | | | | 158,153 | |
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Operating income | | | 38,942 | | | | 32,887 | | | | 73,014 | | | | 63,401 | |
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Total interest expense, net | | | 1,158 | | | | 2,942 | | | | 2,799 | | | | 6,458 | |
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Income before income taxes | | | 37,784 | | | | 29,945 | | | | 70,215 | | | | 56,943 | |
Income tax expense | | | 10,177 | | | | 7,893 | | | | 17,539 | | | | 13,663 | |
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Net income | | $ | 27,607 | | | $ | 22,052 | | | $ | 52,676 | | | $ | 43,280 | |
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Net income per diluted share: | | $ | 1.49 | | | $ | 1.20 | | | $ | 2.85 | | | $ | 2.36 | |
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Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | | |
Diluted | | | 18,473 | | | | 18,332 | | | | 18,499 | | | | 18,340 | |
Cash Flow Information: | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net cash provided by operating activities | | $ | 40,011 | | | $ | 22,529 | | | $ | 92,376 | | | $ | 41,478 | |
Net cash (used in) provided by investing activities | | | (13,505 | ) | | | 1,695 | | | | (15,197 | ) | | | 317 | |
Net cash (used in) financing activities | | | (30,005 | ) | | | (30,002 | ) | | | (59,230 | ) | | | (49,530 | ) |
| | | | | | | | | | | | | | | | |
Net change in cash | | | (3,499 | ) | | | (5,778 | ) | | | 17,949 | | | | (7,735 | ) |
Cash at the beginning of the period | | | 103,065 | | | | 96,954 | | | | 81,617 | | | | 98,911 | |
Cash at the end of the period | | $ | 99,566 | | | $ | 91,176 | | | $ | 99,566 | | | $ | 91,176 | |
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| | June 30, | |
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| | 2026 | | | 2025 | |
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Assets | | | | | | | | |
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Current assets | | | | | | | | |
Cash | | $ | 99,566 | | | $ | 91,176 | |
Accounts receivable, net | | | 145,123 | | | | 140,098 | |
Prepaid expenses and other current assets | | | 39,461 | | | | 31,771 | |
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Total current assets | | | 284,150 | | | | 263,045 | |
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Property and equipment, net | | | 23,851 | | | | 24,441 | |
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Other assets | | | | | | | | |
Goodwill | | | 1,008,053 | | | | 969,824 | |
Intangible assets, net | | | 99,398 | | | | 105,656 | |
Operating lease assets | | | 41,034 | | | | 45,965 | |
Total other assets | | | 1,148,485 | | | | 1,121,445 | |
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Total assets | | $ | 1,456,486 | | | $ | 1,408,931 | |
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Liabilities and stockholders' equity | | | | | | | | |
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Current liabilities | | | | | | | | |
Accounts payable | | $ | 18,038 | | | $ | 15,687 | |
Accrued payroll | | | 76,834 | | | | 68,441 | |
Accrued expenses | | | 34,923 | | | | 33,054 | |
Operating lease liabilities - current portion | | | 13,059 | | | | 12,969 | |
Government stimulus advance | | | 12,383 | | | | 7,927 | |
Accrued workers compensation | | | 12,911 | | | | 13,305 | |
Total current liabilities | | | 168,148 | | | | 151,383 | |
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Long-term debt, less current portion, net of debt issuance costs | | | 61,597 | | | | 169,059 | |
Long-term lease liability, less current portion | | | 34,164 | | | | 40,223 | |
Deferred tax liabilities, net | | | 44,366 | | | | 26,287 | |
Other long-term liabilities | | | 54 | | | | 125 | |
Total long-term liabilities | | | 140,181 | | | | 235,694 | |
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Total liabilities | | | 308,329 | | | | 387,077 | |
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Total stockholders' equity | | | 1,148,157 | | | | 1,021,854 | |
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Total liabilities and stockholders' equity | | $ | 1,456,486 | | | $ | 1,408,931 | |
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Net Service Revenue by Segment
(Amounts in thousands)
(Unaudited)
| | For the Three Months | | | For the Six Months | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net Service Revenues by Segment | | | | | | | | | | | | | | | | |
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Personal Care | | $ | 295,995 | | | $ | 269,183 | | | $ | 577,089 | | | $ | 527,469 | |
Hospice | | | 64,247 | | | | 62,212 | | | | 130,032 | | | | 123,649 | |
Home Health | | | 17,175 | | | | 18,048 | | | | 33,907 | | | | 36,033 | |
Total Revenue | | $ | 377,417 | | | $ | 349,443 | | | $ | 741,028 | | | $ | 687,151 | |
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES
Key Statistical and Financial Data (Unaudited)
| | For the Three Months | | | For the Six Months | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Personal Care | | | | | | | | | | | | | | | | |
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States served at period end | | | - | | | | - | | | | 24 | | | | 23 | |
Locations at period end | | | - | | | | - | | | | 202 | | | | 199 | |
Average billable census - same store | | | 49,955 | | | | 50,347 | | | | 49,663 | | | | 50,303 | |
Average billable census - acquisitions (1) | | | 1,142 | | | | - | | | | 1,160 | | | | 82 | |
Average billable census - closed (2) | | | - | | | | 57 | | | | - | | | | 57 | |
Average billable census total | | | 51,097 | | | | 50,404 | | | | 50,823 | | | | 50,442 | |
Billable hours (in thousands) | | | 11,145 | | | | 10,558 | | | | 21,878 | | | | 20,760 | |
Average billable hours per census per month | | | 72.9 | | | | 69.8 | | | | 72.1 | | | | 68.6 | |
Billable hours per business day | | | 171,469 | | | | 162,436 | | | | 169,599 | | | | 160,927 | |
Revenues per billable hour | | $ | 26.55 | | | $ | 25.49 | | | $ | 26.36 | | | $ | 25.41 | |
Organic growth | | | | | | | | | | | | | | | | |
- Revenue (3) | | | 6.8 | % | | | 7.4 | % | | | 6.7 | % | | | 7.4 | % |
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Hospice | | | | | | | | | | | | | | | | |
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Locations served at period end | | | - | | | | - | | | | 40 | | | | 38 | |
Admissions | | | 3,247 | | | | 3,260 | | | | 6,664 | | | | 6,734 | |
Average daily census (4) | | | 3,964 | | | | 3,720 | | | | 3,899 | | | | 3,618 | |
Average discharge length of stay | | | 100.1 | | | | 90.6 | | | | 105.5 | | | | 94.1 | |
Patient days | | | 360,692 | | | | 338,505 | | | | 703,051 | | | | 654,824 | |
Revenue per patient day | | $ | 190.66 | | | $ | 184.92 | | | $ | 191.03 | | | $ | 189.42 | |
Organic growth | | | | | | | | | | | | | | | | |
- Revenue (3) | | | 11.1 | % | | | 10.0 | % | | | 9.4 | % | | | 9.9 | % |
- Average daily census | | | 6.5 | % | | | 7.0 | % | | | 7.6 | % | | | 5.8 | % |
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Home Health | | | | | | | | | | | | | | | | |
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Locations served at period end | | | - | | | | - | | | | 22 | | | | 23 | |
New Admissions | | | 5,016 | | | | 4,568 | | | | 9,710 | | | | 9,276 | |
Recertifications | | | 2,785 | | | | 2,833 | | | | 5,308 | | | | 5,815 | |
Total Volume | | | 7,801 | | | | 7,401 | | | | 15,018 | | | | 15,091 | |
Visits | | | 88,516 | | | | 94,692 | | | | 169,408 | | | | 189,285 | |
Organic growth | | | | | | | | | | | | | | | | |
- Revenue (3) | | | (2.8 | )% | | | (6.0 | )% | | | (4.7 | )% | | | (2.5 | )% |
- New admissions | | | 9.8 | % | | | (7.6 | )% | | | 4.7 | % | | | (5.6 | )% |
- Volume | | | 5.4 | % | | | (10.0 | )% | | | (0.5 | )% | | | (7.3 | )% |
| | | | | | | | | | | | | | | | |
Percentage of Revenues by Payor: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Personal Care | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
State, local and other governmental programs | | | 50.3 | % | | | 51.4 | % | | | 50.0 | % | | | 51.4 | % |
Managed care organizations | | | 47.1 | | | | 45.3 | | | | 47.3 | | | | 45.3 | |
Private duty | | | 2.2 | | | | 2.7 | | | | 2.2 | | | | 2.7 | |
Commercial | | | 0.4 | | | | 0.5 | | | | 0.4 | | | | 0.5 | |
Other | | | - | % | | | 0.1 | % | | | 0.1 | % | | | 0.1 | % |
| | | | | | | | | | | | | | | | |
Hospice | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Medicare | | | 93.4 | % | | | 93.0 | % | | | 93.9 | % | | | 92.7 | % |
Commercial | | | 3.0 | | | | 3.2 | | | | 2.9 | | | | 3.5 | |
Managed care organizations | | | 3.0 | | | | 3.2 | | | | 2.6 | | | | 3.3 | |
Other | | | 0.6 | % | | | 0.6 | % | | | 0.6 | % | | | 0.5 | % |
| | | | | | | | | | | | | | | | |
Home Health | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Medicare | | | 63.5 | % | | | 69.4 | % | | | 62.3 | % | | | 69.7 | % |
Managed care organizations | | | 25.7 | | | | 23.6 | | | | 24.7 | | | | 22.4 | |
State, local and other governmental programs | | | 7.7 | | | | 4.4 | | | | 9.9 | | | | 5.2 | |
Commercial | | | 2.7 | | | | 2.2 | | | | 2.7 | | | | 2.3 | |
Other | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % | | | 0.4 | % |
(1) The average billable census in acquisitions of 14,355 and 14,361 for the three months and six months ended June 30, 2025, was reclassified to average billable census - same stores for comparability purposes. | |
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(2) The average billable census for closed stores of 57 for the three months and six months ended June 30, 2025 was reclassified to average billable census - closed stores for comparability purposes. | |
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(3) Revenue organic growth reflects the change in year-over-year revenue for the same store base. We define the same store base to include those stores open for at least 52 full weeks. These measures highlight the performance of existing stores, while excluding the impact of one-time adjustments such as ARPA, Medicare cap, or specific situational reserves, as well as acquisitions, new store openings, and closures. | |
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(4) Exited sites would have reduced ADC for the three months ended June 30, 2025, by 2 and the six months ended June 30, 2026, and June 30, 2025, by 7 and 6, respectively. | |
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ADUS Announces Second Quarter 2026 Financial Results
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August 3, 2026
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 | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Reconciliation of Adjusted EBITDA to Net Income: (1) |
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Net income | | $ | 27,607 | | | $ | 22,052 | | | $ | 52,676 | | | $ | 43,280 | |
| | | | | | | | | | | | | | | | |
Interest expense, net | | | 1,158 | | | | 2,942 | | | | 2,799 | | | | 6,458 | |
(Gain) loss on sale of assets | | | 3 | | | | (1 | ) | | | (13 | ) | | | (8 | ) |
Income tax expense | | | 10,177 | | | | 7,893 | | | | 17,539 | | | | 13,663 | |
Depreciation and amortization | | | 4,125 | | | | 3,913 | | | | 8,155 | | | | 7,856 | |
Acquisition expenses | | | 1,467 | | | | 2,708 | | | | 2,791 | | | | 5,660 | |
Stock-based compensation expense | | | 4,389 | | | | 4,421 | | | | 9,389 | | | | 7,591 | |
Restructuring and other non-recurring costs | | | 241 | | | | - | | | | 345 | | | | - | |
Adjusted EBITDA | | $ | 49,167 | | | $ | 43,928 | | | $ | 93,681 | | | $ | 84,500 | |
| | | | | | | | | | | | | | | | |
Reconciliation of Adjusted Net Income to Net Income: (2) |
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| | | | | | | | | | | | | | | | |
Net income | | $ | 27,607 | | | $ | 22,052 | | | $ | 52,676 | | | $ | 43,280 | |
| | | | | | | | | | | | | | | | |
(Gain) on sale of assets | | | 3 | | | | (1 | ) | | | (13 | ) | | | (8 | ) |
Acquisition expenses | | | 1,467 | | | | 2,708 | | | | 2,791 | | | | 5,660 | |
Stock-based compensation expense | | | 4,389 | | | | 4,421 | | | | 9,389 | | | | 7,591 | |
Restructuring and other non-recurring costs | | | 241 | | | | - | | | | 345 | | | | - | |
Tax Effect | | | (1,670 | ) | | | (1,872 | ) | | | (3,125 | ) | | | (3,178 | ) |
Adjusted Net Income | | $ | 32,037 | | | $ | 27,308 | | | $ | 62,063 | | | $ | 53,345 | |
| | | | | | | | | | | | | | | | |
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (3) |
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| | | | | | | | | | | | | | | | |
Net income per diluted share | | $ | 1.49 | | | $ | 1.20 | | | $ | 2.85 | | | $ | 2.36 | |
| | | | | | | | | | | | | | | | |
Acquisition expenses per diluted share | | | 0.06 | | | | 0.11 | | | | 0.11 | | | | 0.23 | |
Stock-based compensation expense per diluted share | | | 0.17 | | | | 0.18 | | | | 0.38 | | | | 0.32 | |
Restructuring and other non-recurring costs per diluted share | | | 0.01 | | | | - | | | | 0.01 | | | | - | |
| | | | | | | | | | | | | | | | |
Adjusted net income per diluted share | | $ | 1.73 | | | $ | 1.49 | | | $ | 3.35 | | | $ | 2.91 | |
| | | | | | | | | | | | | | | | |
Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (4) |
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| | | | | | | | | | | | | | | | |
Net service revenues | | $ | 377,417 | | | $ | 349,443 | | | $ | 741,028 | | | $ | 687,151 | |
| | | | | | | | | | | | | | | | |
Revenues associated with the closure of certain sites | | | (3 | ) | | | (1,086 | ) | | | (113 | ) | | | (2,152 | ) |
| | | | | | | | | | | | | | | | |
Adjusted net service revenues | | $ | 377,414 | | | $ | 348,357 | | | $ | 740,915 | | | $ | 684,999 | |
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ADUS Announces Second Quarter 2026 Financial Results
Page 10
August 3, 2026
Footnotes:
(1) We define Adjusted EBITDA as earnings before net interest expense, other non-operating income, taxes, depreciation, amortization, acquisition expense, stock-based compensation expense, restructuring and other non-recurring costs and gain or loss on the sale of assets. 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. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We believe that Adjusted EBITDA is 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 among periods, and to facilitate comparison with results of the Company's peers. Additionally, we believe that Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of other public companies. The financial results presented in accordance with U.S GAAP and a reconciliation of this non-GAAP measure included within our Annual Report on Form 10-K should be carefully evaluated. |
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(2) We define Adjusted Net Income as net income before acquisition expenses, stock-based compensation expense, restructuring and other non-recurring costs, and gain on the sale of assets. 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. |
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(3) We define Adjusted diluted earnings per share as earnings per share, adjusted for acquisition expenses, stock-based compensation expense and restructuring and other non-recurring costs, and gain on the sale of assets. 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. |
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(4) 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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