Addus HomeCare Corp Files 2023 Annual Report (10-K)

TL;DR

<b>Addus HomeCare Corp has filed its 2023 10-K, providing a comprehensive overview of its financial performance, business segments, and associated risks.</b>

AI Summary

Addus HomeCare Corp (ADUS) filed a Annual Report (10-K) with the SEC on February 27, 2024. Addus HomeCare Corp filed its 10-K report for the fiscal year ending December 31, 2023. The filing details operations across HomeHealth, PersonalCare, and Hospice segments. Key financial data and risk factors are outlined, including customer and geographic concentration. The company's credit agreement with Capital One, including a revolving credit facility, is referenced. Information on noncompete agreements, such as with Armada Skilled Homecare, is included.

Why It Matters

For investors and stakeholders tracking Addus HomeCare Corp, this filing contains several important signals. This 10-K filing provides investors with crucial insights into Addus HomeCare's operational performance, revenue streams across its segments (HomeHealth, PersonalCare, Hospice), and its financial health, including debt and credit facilities. Understanding the company's risk factors, such as customer and geographic concentration, and its compliance with regulations is essential for assessing its future growth potential and stability.

Risk Assessment

Risk Level: medium — Addus HomeCare Corp shows moderate risk based on this filing. The company faces medium risk due to customer and geographic concentration, as highlighted in the filing, which could impact revenue if key clients or regions underperform.

Analyst Insight

Investors should analyze the detailed segment performance and risk factor disclosures in the 10-K to assess Addus HomeCare's strategic positioning and potential for future growth.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-27 — Filing Date (Date the 10-K was filed)
• 001-34504 — SEC File Number (SEC registration number)
• 8082 — SIC Code (Services-Home Health Care Services)

Key Players & Entities

• Addus HomeCare Corp (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• HomeHealth (business) — One of the company's operating segments
• PersonalCare (business) — One of the company's operating segments
• Hospice (business) — One of the company's operating segments
• Capital One (company) — Lender for the company's credit agreement
• Armada Skilled Homecare (company) — Mentioned in relation to noncompete agreements
• Illinois Department On Aging (company) — Associated with accounts receivable in Illinois

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: Risk associated with reliance on specific customers, such as Managed Care Organizations, for sales revenue.
• Geographic Concentration Risk [medium — market]: Risk related to significant revenue generation from specific states like New York and New Mexico.
• Noncompete Agreements [low — operational]: Involves agreements like those with Armada Skilled Homecare, potentially impacting operations or acquisitions.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date the 10-K was officially submitted to the SEC.
• 2023-04-26: Credit Agreement Date — Date related to the credit agreement with Capital One.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides detailed financial and operational information about Addus HomeCare Corp.)

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value ADUS The Nasdaq Global Ma
• $18.8 million — sitions completed in 2023 accounted for $18.8 million in net service revenues for the year en

Filing Documents

• adus-20231231.htm (10-K) — 3817KB
• adus-ex21_1.htm (EX-21.1) — 58KB
• adus-ex23_1.htm (EX-23.1) — 3KB
• adus-ex31_1.htm (EX-31.1) — 12KB
• adus-ex31_2.htm (EX-31.2) — 12KB
• adus-ex32_1.htm (EX-32.1) — 7KB
• adus-ex32_2.htm (EX-32.2) — 7KB
• adus-ex97_1.htm (EX-97.1) — 57KB
• 0000950170-24-021284.txt (&nbsp;) — 14660KB
• adus-20231231.xsd (EX-101.SCH) — 1703KB
• adus-20231231_htm.xml (XML) — 3046KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 33 Item 1C. Cybersecurity 33 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 34 Item 4. Mine Safety Disclosures 34 PART II 35 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Item 6. [ Reserved ] 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 56 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 56 Item 9A.

Controls and Procedures

Controls and Procedures 56 Item 9B. Other Information 57 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 57 PART III 58 Item 10. Directors, Executive Officers and Corporate Governance 58 Item 11.

Executive Compensation

Executive Compensation 58 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 58 Item 13. Certain Relationships and Related Transactions, and Director Independence 58 Item 14. Principal Accounting Fees and Services 58 PART IV 59 Item 15. Exhibits and Financial Statement Schedules 59 Item 16. Form 10-K Summary 62 Table of Contents SPECIAL CAUTION CONCERNING FORWARD-LOOKING STATEMENTS When included in this Annual Report on Form 10-K, or in other documents that we file with the Securities and Exchange Commission ("SEC") or in statements made by or on behalf of the Company, words like "believes," "belief," "expects," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "would," "should," and similar expressions are intended to be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: The impact of macroeconomic conditions, including significant global inflation and elevated interest rates, legislative developments, trade disruptions and the potential adverse effects of current geopolitical conditions; business disruptions due to natural disasters, acts of terrorism, pandemics, riots, civil insurrection or social unrest, looting, protests, strikes or street demonstrations; changes in operational and reimbursement processes and payment structures at the state or federal levels; changes in Medicaid, Medicare, other government program and managed care organizations policies and payment rates, and the timeli

BUSINESS

ITEM 1. BUSINESS Overview Addus has been providing home care services since 1979. We operate three segments: personal care, hospice, and home health. Our services are principally provided in-home under agreements with federal, state and local government agencies, managed care organizations, commercial insurers and private individuals. Our consumers are predominantly "dual eligible," meaning they are eligible to receive both Medicare and Medicaid benefits. As of December 31, 2023, we provided services in 22 states through approximately 219 offices. For the year ended December 31, 2023, we served approximately 91,000 discrete consumers. We continue to drive organic growth while also growing through acquisitions, focusing on growth in the states in which we have a presence while adding clinical care services to our offerings. As of December 31, 2023, we provide all three levels of care, personal care, home health and hospice services, in Ohio, Tennessee, Illinois and New Mexico and strategically continue to pursue other markets. A summary of our financial results is provided in the table below. For the Years Ended December 31, 2023 2022 (Amounts in Thousands) Personal care $ 794,718 $ 706,507 Hospice 207,155 201,772 Home health 56,778 42,841 Total net service revenue by segment $ 1,058,651 $ 951,120 Net income $ 62,516 $ 46,025 Total assets 1,024,426 937,994 Our services and operating model address a number of crucial needs across the healthcare continuum. Care provided in the home generally costs less than facility-based care and is typically preferred by consumers and their families. By providing services in the home to the elderly and others who require long-term care and support with the activities of daily living, we lower the cost of chronic and acute care treatment by delaying or eliminating the need for care in more expensive settings. In addition, our caregivers observe and report changes in t

View Full Filing

View this 10-K filing on SEC EDGAR