Addus HomeCare Announces First-Quarter 2017 Results And Completion Of A New Senior Secured Credit Facility

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(amounts in thousands, except per share data)

(Unaudited)

For the Three Months

Ended March 31,

2017

2016

Reconciliation of Adjusted EBITDA to Net Income: ⁽¹⁾

Net income

$      4,259

$        157

Interest expense, net

644

419

Gain on sale of adult day service centers

(2,065)

-

Other non-operating income

(57)

-

Income tax expense

2,115

77

Depreciation and amortization

1,516

1,478

M&A expenses

244

696

Stock-based compensation expense

427

337

Restructuring charges

-

1,312

Severance and other costs

888

2,179

Adjusted EBITDA

$      7,971

$     6,655

Reconciliation of Diluted Earnings per Share to Adjusted Diluted     Earnings per Share: ⁽²⁾

Diluted earnings per share

$        0.37

$       0.01

Gain on sale of adult day service centers per diluted share

(0.11)

-

M&A expenses per diluted share

0.01

0.04

Restructuring charges per diluted share

-

0.08

Severance and other costs per diluted share

0.05

0.13

Stock-based compensation expense per diluted share

0.02

0.02

Adjusted net income per diluted share

$        0.34

$       0.28

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

Net service revenues

$  101,606

$   92,602

Revenue associated with the closure of certain sites

(624)

(1,037)

Adjusted net service revenues

$  100,982

$   91,565

⁽¹⁾    We define Adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expenses,        stock-based compensation expense and restructure and severance 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 diluted earnings per share as earnings per share, adjusted for M&A expenses, stock        compensation expense and restructure and severance costs.  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. 

⁽³⁾    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.