Addus HomeCare Announces Second-Quarter 2017 Financial Results

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(amounts in thousands, except per share data)

(Unaudited)

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2017

2016

2017

2016

Reconciliation of Adjusted EBITDA to Net Income: ⁽¹⁾

Net income

$      2,700

$      2,600

$      6,959

$      2,757

Interest expense, net

2,095

663

2,739

1,082

Gain on sale of adult day service centers

-

-

(2,065)

-

Other non-operating income

(44)

-

(101)

-

Income tax expense

1,170

1,131

3,285

1,207

Depreciation and amortization

1,514

1,744

3,030

3,222

M&A expenses

405

45

649

741

Stock-based compensation expense

664

483

1,091

819

Restructure charges

44

242

44

1,554

Severance and other costs

6

593

894

2,772

Adjusted EBITDA

$      8,554

$      7,501

$    16,525

$    14,154

Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: ⁽²⁾

Net income per diluted share

$        0.23

$        0.23

$        0.60

$        0.25

Write off debt issuance costs per diluted share

0.09

-

0.09

-

Gain on sale of adult day service centers

   per diluted share

-

-

(0.12)

-

M&A expenses per diluted share

0.02

-

0.04

0.04

Restructure charges per diluted share

-

0.01

-

0.10

Severance and other costs per diluted share

-

0.04

0.05

0.17

Stock-based compensation expense

   per diluted share

0.04

0.03

0.06

0.05

Adjusted net income per diluted share

$        0.38

$        0.31

$        0.72

$        0.61

Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: ⁽³⁾

Net service revenues

$  103,559

$  100,927

$  205,165

$  193,529

Revenues associated with the closure

   of certain sites

23

(1,261)

(601)

(2,298)

Adjusted net service revenues

$  103,582

$    99,666

$  204,564

$  191,231

⁽¹⁾     We define Adjusted EBITDA as net income before interest expense, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, restructure charges and severance and other costs. 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.

⁽²⁾   We define Adjusted net income per diluted share as net income per diluted share, adjusted for M&A expenses, stock-based compensation expense, restructure charges and severance and other costs. Adjusted net income per diluted 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.

⁽³⁾   We define Adjusted net service revenues as net service revenues 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 service revenues or any other measure of financial performance calculated in accordance with GAAP.