Addus HomeCare Announces First-Quarter 2019 Financial Results

ADDUS HOMECARE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(amounts in thousands, except per share data)

(Unaudited)

For the Three MonthsEnded March 31,

2019

2018

Reconciliation of Adjusted EBITDA to Net Income: ⁽¹⁾

Net income

$      4,862

$      4,886

Interest expense, net

403

841

Interest income from Illinois

-

(2,253)

Income tax expense

978

1,115

Depreciation and amortization

2,074

1,807

M&A expenses

496

1,002

Stock-based compensation expense

1,233

859

Restructuring, severance and other costs

744

505

Adjusted EBITDA

$    10,790

$      8,762

Reconciliation of Adjusted Net Income to Net Income: ⁽²⁾

Net income

$      4,862

$      4,886

Interest income from Illinois, net of tax

-

(1,831)

M&A expenses, net of tax

413

815

Restructuring, severance and other costs, net of tax

620

410

Stock-based compensation expense, net of tax

1,026

698

Adjusted Net Income

$      6,921

$      4,978

Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: ⁽³⁾

Diluted earnings per share

$        0.36

$        0.42

Interest income from Illinois

-

(0.16)

M&A expenses per diluted share

0.03

0.07

Restructuring, severance and other costs per diluted share

0.05

0.03

Stock-based compensation expense per diluted share

0.08

0.06

Adjusted net income per diluted share

$        0.52

$        0.42

Reconciliation of Net Service Revenues to Adjusted Net Service Revenues: ⁽⁴⁾

Net service revenues

$  139,254

$  109,476

Revenue associated with the closure of certain sites

-

(5)

Adjusted net service revenues

$  139,254

$  109,471

⁽¹⁾    We define Adjusted EBITDA as earnings before interest expense, interest income, other non-operating income, taxes, depreciation, amortization, M&A expenses, stock-based compensation expense, restructure expenses, 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 as net income before interest income from the state of Illinois, M&A expenses, stock-based compensation expense, restructure expenses, severance and other costs. 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. 

⁽³⁾    We define Adjusted diluted earnings per share as earnings per share, adjusted for interest income from the State of Illinois, M&A expenses, stock compensation expense and restructure expense, severance and other 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. 

⁽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.