Image Source: PexelsAddus HomeCare Corp. (ADUS) posted a strong close to fiscal 2023. In Q4, revenues grew 11.9% to $276.4 million, while EPS increased 31.9% to $1.20. Commenting on the results, Dirk Allison, Chairman and CEO, said, “We continued to benefit from robust demand for home-based care, especially for our personal care services, which accounted for 74% of our revenues.Allison went on to add: “We were pleased with our 11.2% organic revenue growth on a same-store basis for the quarter, and our annual growth rate of 12.1% was a record for our personal care services. This impressive revenue growth reflects higher volumes, as well as continued rate support for our services.”Addus HomeCare Corp. (ADUS)
Hospice services accounted for 19.8% of revenue for the fourth quarter and included the benefit of a 3.1% rate increase that was effective on Oct. 1, 2023. Hospice revenues were up 3.5% over Q4 2022 on a same-store basis, while average daily usage and length of stay also improved over Q4 last year. For the full year, Addus revenues increased 11.3% to $1.06 billion while EPS increased 34.9% to $3.83.As of December 31, 2023, the company had cash of $64.8 million and bank debt of $126.4 million, with capacity and availability under its revolving credit facility of $470 million and $335.6 million, respectively. Net cash provided by operating activities was $30 million for the fourth quarter of 2023, and $112.2 million for the full year 2023, inclusive of a net $7.6 million in ARPA funds utilization.The company lowered its revolver balance in the year by $8.3 million and funded all of its acquisitions in 2023 as a result of its strong cash flow. Management expects a final ruling on the Medicaid Access Proposed Rules by the end of April.Recommended Action: Buy ADUS.More By This Author:McDonalds: Inking A Deal With Krispy Kreme To Boost Breakfast Business CrossAmerica Partners: A Service Station Operator With A Hefty Dividend YieldUlta Beauty: A Beauty Products Retailer That Delivered An Attractive Quarter
