ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (Unaudited) | |||||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | ||||||
2017 |
2016 |
2017 |
2016 | ||||
Reconciliation of Adjusted EBITDA to Net Income: (1) |
|||||||
Net income |
$ 3,408 |
$ 1,699 |
$ 10,366 |
$ 4,456 | |||
Interest expense, net |
840 |
632 |
2,255 |
1,714 | |||
Write off debt issuance costs |
- |
- |
1,323 |
- | |||
Gain on sale of adult day service centers |
- |
- |
(2,065) |
- | |||
Other non-operating income |
(64) |
(126) |
(165) |
(126) | |||
Income tax expense |
1,623 |
290 |
4,908 |
1,498 | |||
Depreciation and amortization |
1,781 |
1,721 |
4,811 |
4,943 | |||
M&A expenses |
692 |
43 |
1,343 |
785 | |||
Stock-based compensation expense |
727 |
445 |
1,818 |
1,264 | |||
Restructure charges |
507 |
3,690 |
551 |
5,243 | |||
Severance and other costs |
98 |
258 |
992 |
3,031 | |||
Adjusted EBITDA |
$ 9,612 |
$ 8,652 |
$ 26,137 |
$ 22,808 | |||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share: (2) |
|||||||
Net income per diluted share |
$ 0.29 |
$ 0.15 |
$ 0.89 |
$ 0.40 | |||
Write off debt issuance costs per diluted share |
- |
- |
0.09 |
- | |||
Gain on sale of adult day service centers per diluted share |
- |
- |
(0.12) |
- | |||
Normalization of effective tax rate |
- |
(0.04) |
- |
(0.04) | |||
M&A expenses per diluted share |
0.04 |
- |
0.08 |
0.05 | |||
Restructure charges per diluted share |
0.04 |
0.23 |
0.03 |
0.32 | |||
Severance and other costs per diluted share |
0.01 |
0.02 |
0.06 |
0.18 | |||
Stock-based compensation expense per diluted share |
0.04 |
0.03 |
0.10 |
0.08 | |||
Adjusted net income diluted share |
$ 0.42 |
$ 0.39 |
$ 1.13 |
$ 0.99 | |||
Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: (3) |
|||||||
Net service revenues |
$ 108,592 |
$ 103,502 |
$ 313,758 |
$ 297,032 | |||
Revenues associated with the closure of certain sites |
(87) |
(1,634) |
(1,340) |
(4,493) | |||
Adjusted net service revenues |
$ 108,505 |
$ 101,868 |
$ 312,418 |
$ 292,539 | |||
(1) We define Adjusted EBITDA as net income before interest expense, taxes, depreciation, amortization, write off of debt issuance costs, gain on sale, other non-operating income, 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 write off of debt issuance costs, gain on sale, normalization of effective tax rate, 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. |