Addus HomeCare 8K It is the primary mission of Addus HealthCare to improve the health and well | ADUS 27 Sep 11

JMP 2011 Healthcare Conference

September 2011

EXHIBIT 99.1

Mission Statement

It is the primary mission of Addus HealthCare to improve the health and well

being of our consumers through the provision of quality, cost-effective health

care services.

We will accomplish our goals by fostering an environment in which our

employees enthusiastically support and advance our mission.

Reward for accomplishing our mission includes pride in our organization,

contribution to the community and a reasonable profit.

Forward-Looking Statements

The following information contains, or may be deemed to contain, forward-looking

statements. By their nature, forward-looking statements involve risks and uncertainties

because they relate to events and depend on circumstances that may or may not occur

in the future. The future results of Addus may vary from the results expressed in, or

implied by, the following forward-looking statements, possibly to a material degree, and

historical results may not be an indication of future performance. For a discussion of

some of the important factors that could cause Addus' results to differ from those

expressed in, or implied by, the following forward-looking statements, please refer to

Addus’ most recent Annual Report on Form 10-K, and its Quarterly reports on Form 10-Q

each of which is available at www.SEC.gov, particularly the Sections entitled “Risk

Factors”. Addus undertakes no obligation to update or revise any forward-looking

statements, except as may be required by law.

About Addus

Founded in 1979

Comprehensive provider of social and medical

services in the home:

—

Personal Care

—

Home Health

—

Private Duty

—

Adult Day Service

13,000+ employees

26,000+ consumers (many dual eligible)

Diversified payor base (200+ payors)

—

Largest payor -

38% of 2010 total revenues

—

Medicare -

12% of 2010 total revenues

2010 revenues of $271.7 million and Adjusted

EBITDA

of $16.3 million

_____________________________________

Note: Adjusted EBITDA is defined as net income plus depreciation and amortization, net interest expense, income tax expense and stock-based compensation expense. Adjusted

EBITDA is a performance measure used by management that is not calculated under 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. Adjusted EBITDA

margin is computed as the percentage of Adjusted EBITDA to revenue for the applicable period.

125 Locations Across 19 States

81%

19%

Two Primary Divisions

2010 Revenue Percentage

Home &

Community

Home Health

Census and Revenue Trends

Census

Revenues

(millions)

5,000

10,000

15,000

20,000

25,000

2007

2008

2009

2010

$50

$100

$150

$200

$250

$300

2007

2008

2009

2010

Our Clients

Addus provides care for the 5% of the population that is the most costly!

Source: Kaiser Family Foundation calculations using data from U.S. Department of Health and Human Services,

Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey (MEPS), 2007

22.9%

49.5%

65.2%

74.6%

81.2%

97.0%

3.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Top 1%

Top 5%

Top 10%

Top 15%

Top 20%

Top 50%

Bottom 50%

(

$44,482)

(

$4,064)

(

$5,798)

(

$8,716)

(

$15,806)

(

$786)

(<$786)

Percent of Population, Ranked by Health Care Spending

Concentration of Health Care Spending in the U.S. Population, 2007

Facts: Nearly 75% of those who live to 85 will eventually need assistance at home.

Approximately 50% of US healthcare spending is concentrated in 5% of the population.

97% of healthcare spending is concentrated on 50% of the population.

Addus Client Profile and Economics

Home & Community

Home Health

Average Length of Service

20 months

2.7 months

Average Reimbursement per Consumer Episode

$17,622

$3,512

Gross Profit per Consumer Episode

Gross Margin

$4,476

25.4%

$1,637

46.6%

Divisional Earnings per Consumer Episode

Division Pre-Corporate Earnings Margin

$1,815

10.3%

$365

10.4%

Note: Data as of December 31, 2010

(1)

Home & Community revenues for the calendar year 2010 of $220.8 million divided by average weekly census for 2010 of 20,878 divided by 12 months multiplied by 20 months.

(2)

Based on Medicare revenues per episode completed for calendar 2010 of $2,634 and the average length of service of 2.7 months

(3)

For the year ended December 31, 2010.

(4)

For the year ended December 31, 2010. Divisional Earnings is defined as Divisional operating income . Divisional Earnings margin is computed as the percentage of Divisional Earnings to revenue for the applicable period.

(1)

(2)

(3)

(4)

Macro Growth Drivers

Aging U.S. population projected to more than

double by 2050

—

Age

and

over

–

fastest-growing

segment

Consumer preference / Public policy

awareness

—

Consumers prefer to receive care at home

—

Increasing awareness of home care as

viable option

Cost effectiveness

—

Home care costs less than hospital or

nursing home care

Nursing Homes

Home Care

(in millions)

35.0

40.2

54.8

72.1

81.2

88.6

100

2000

2010

2020

2030

2040

2050

Annual

Medicaid

Spending

per

Beneficiary

(3)

Consumer

Preference

for

People

Age

Older

with

Disabilities

(2)

U.S.

Population

Age

and

Over

(1)

Source: Grayson Vincent and Victoria Velkoff. The Next Four Decades. The Older Population in the United States: 2010 to 2050” (May 2010)

http://www.aoa.gov/AoARoot/Aging_Statistics/future_growth/DOCS/p25-1138.pdf

(2)

Source: Mary Jo Gibson. AARP Public Policy Institute: “Beyond 50 2003: A Report to the Nation on Independent Living and Disability,” http://assets.aarp.org/rgcenter/il/beyond_50_il_1.pdf. Note:

Home Care includes care administered in the home by friends, family, or an agency. Institutional care includes care that is provided in an assisted living or residential setting, nursing home or other.

(3)

Source: Kassner, Reinhard, Fox-Grage, Houser, Accius, Coleman and Milne. AARP Public Policy Institute: “A Balancing Act: State Long-Term Care Reform,” (July 2008).

(4)

http://assets.aarp.org/rgcenter/il/inb161_ltc.pdf.

Current Market Opportunity

$200 -

$210 billion

$70 -

$75 billion

Home Care Market

Long-Term Care Market

Social

Funding

Medical

Funding

Source: Company estimates based on: Georgetown University Long-Term Care Financing Project. “Medicare and Long-Term Care,” (February 2007), http://ltc.georgetown.edu/pdfs/medicare0207.pdf and

Center for Medicare and Medicaid Services. “National Health Expenditure Projections 2008-2018,” http://www.cms.hhs.gov/NationalHealthExpendData/downloads/proj2008.pdf, and MedPAC. “A Data

Book: Healthcare spending and the Medicare program: June 2010,” http://www.medpac.gov/chapters/Jun09DataBookSec9.pdf.

Increased Use of Homecare

Home and Community-Based Services as % of

Medicaid Long-Term Care Expenditures

(1)

10%

15%

20%

25%

30%

35%

40%

45%

50%

24%

26%

27%

28%

30%

31%

34%

37%

38%

40%

43%

44%

45%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

(1)

Source: Thomson Reuters (formerly Medstat). “Medicaid Long Term Care Expenditures FY 2000,” (August 17, 2010).

http://www.hcbs.org/files/193/9639/2009LTCExpenditures.pdf 3. Note: Medicaid data represents home & community services, which is comprised of personal care and HCBS

waivers.

Addus Positioned to Excel Under Healthcare Reform

“The Pre-Acute Solution . . . .

the

Post-Acute

Problem”

The Healthcare “Dis-continuum”

HIGH

COSTS

LOW

Addus Integrated Services –

Early Intervention Lowers Cost

Homecare Aid identifies

change in condition.

Home Health nurse

conducts home

assessment.

Coordinates with

payor.

Physician is consulted

and Home Health services

ordered.

Home Health field

nurse / therapists

provide medical

services. Coordinate

with Homecare Aid.

Family advised

throughout the

process for additional

support.

The Addus Difference –

Integrated Pre-Acute Services

Addus

Integrated

Pre-Acute

Services:

•

Continuous

monitoring

client

member

medical

condition(s)

•

Coordination

medical

care

with

healthcare

team

•

Early

identification

disease

processes

•

Early

intervention

lower

costs

•

Reduced

pain

and

suffering

•

Improved

quality

life

The Addus Difference –

Geographic Coverage

The Addus Difference –

Geographic Coverage

The Addus Difference –

Geographic Coverage

Addus Integrated Services –

Changing the Cost Curve

HIGH

COSTS

LOW

Time

Current Cost Curve

Projected Cost Curve

Homecare Utilization Dramatically Lowers Costs

Source: CCP Cost Effectiveness: Comparison of CCP growth with Nursing Facility Prevalence Reductions

HCBS Strategies Inc. February 10, 2010

Conclusion:

Over a 28 year period, which

corresponds to the growth

of the Community Care Program

in Illinois and Addus, the

75 + years old population grew 54%,

while nursing home residents

declined 8.2%.

The annual savings to the State

and Federal Governments is

$1 Billion.

1980

2008

100000

200000

300000

400000

500000

600000

700000

800000

900000

Illinois Population > 75 years

68000

70000

72000

74000

76000

78000

80000

Medicaid Nursing Home Residents

Second Quarter 2011 Summary

Total net service revenues up 1.6% to $68.3M

Home & Community increased 1.6% to $55.0M

Home Health increased 1.7% to $13.2M

Adjusted EBITDA of $3.7M, compared to $4.3M in Q2 ’2010

Net income of $1.3M, or $0.12 per diluted share, compared to $1.7M, or

$0.16 per diluted share

Cash flows from operations of $29.1M*, compared to $0.8M

Accounts receivable DSO has sequentially improved to 65 days from 84 as

of March 31, 2011

* Includes a significant payment received from the state of Illinois at the end of June 2011

Condensed Consolidated Statements of Income

($ in millions

Except per share amounts)

(1)

(1) Six Month amounts for 2010 and 2011 are Unaudited

2007

2008

2009

2010

6/30/2010

6/30/2011

Net service revenues

194.6

236.3

259.3

271.7

131.8

135.1

Gross profit

55.3

69.1

76.6

79.9

38.6

39.2

Total operating expenses

50.3

58.2

64.8

67.9

32.6

34.5

Net income

0.2

4.0

3.6

6.0

3.0

2.2

Net income (loss)

attributable to common

shareholders

(3.7)

(0.3)

(1.8)

6.0

3.0

2.2

Earnings (loss) per share

(3.62)

(0.24)

(0.66)

0.57

0.29

0.20

For the Year Ended December 31,

For the Six Months Ended

Organic Growth Augmented by Acquisitions

Fragmented industry

12,000+ homecare agencies in

U.S.

Numerous acquisition

opportunities

Smaller players struggling;

expect consolidation to

increase

Acquired 12 homecare

agencies since 2007

Average purchase price

multiple of 3.4x trailing actual

EBITDA

Average cash consideration of

62% and earnout / other

contingent payments of 38%

Historic Growth Through M & A

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2007

2008

2009

2010

Organic Revenue

M&A Revenue

Home & Community Segment

($ in millions)

Home & Community

12/31/2007

12/31/2008

12/31/2009

12/31/2010

Average Weekly Census

17,117

19,432

20,182

20,878

Billable Hours (in thousands)

10,421

12,139

12,835

13,132

Reimbursement Rate per Billable Hour

$14.36

$15.57

$16.37

$16.81

(1)

Divisional

EBITDA

defined

Divisional

operating

income

plus

depreciation

and

amortization.

Divisional

EBITDA

margin

computed

the

percentage

Divisional

EBITDA to revenue for the

applicable

period.

Divisional

EBITDA

performance

measure

used

management

that

not

calculated

under

generally

accepted

accounting

principles

the

United

States

(GAAP).

should

not be

considered

isolation

substitute

for

net

income,

operating

income

any

other

measure

financial

performance

calculated

accordance

with

GAAP.

Divisional

EBITDA

margin is

computed as the percentage of Divisional EBITDA to revenue for the applicable period.

(2)

Includes incremental increase in bad debt expense of $1.5 million, recorded in the fourth quarter of 2009.

$149.6

$189.0

$210.1

$220.8

11.1%

11.6%

11.3%

11.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

$0.0

$25.0

$50.0

$75.0

$100.0

$125.0

$150.0

$175.0

$200.0

$225.0

CY 2007

CY 2008

CY 2009

CY 2010

(2)

Divisional EBITDA Margin

Revenue

(1)

Home Health Segment

($ in millions)

Home Health

12/31/2007

12/31/2008

12/31/2009

12/31/2010

Average Weekly Census

2,565

2,683

2,955

2,976

% of Medicare Revenues

55.1%

58.3%

61.3%

64.1%

Medicare Episodic Amount

$2,563

$2,606

$2,569

$2,634

Divisional EBITDA Margin

(1)

Revenue

$44.9

$47.3

$49.2

$51.0

10.5%

14.3%

15.3%

11.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

CY 2007

CY 2008

CY 2009

CY 2010

$44.9

$47.3

$49.2

(1)

Divisional EBITDA is defined as Divisional operating income plus depreciation and amortization. Divisional EBITDA margin is computed as the percentage of Divisional EBITDA to revenue for

the applicable period. Divisional EBITDA is a performance measure used by management that is not calculated under 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. Divisional EBITDA

margin is computed as the percentage of Divisional EBITDA to revenue for the applicable period.

Divisional EBITDA by Reporting Segment

($ in millions)

Year Ended

Six Months Ended

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2010

6/30/2011

Net Service Revenues

$149.6

$189.0

$210.1

$220.8

$106.8

$109.2

Cost of Service Revenues

(113.8)

(141.8)

(156.6)

(164.6)

(79.7)

(81.9)

General & Administrative

(19.2)

(25.2)

(29.7)

(30.7)

(14.9)

(14.7)

Divisional EBITDA

$16.6

$22.0

$23.8

$25.5

$12.2

$12.6

Home & Community

Home Health

Year Ended

Six Months Ended

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2010

6/30/2011

Net Service Revenues

$44.9

$47.3

$49.2

$51.0

$24.9

$25.9

Cost of Service Revenues

(25.5)

(25.4)

(26.1)

(27.2)

(13.5)

(14.1)

General & Administrative

(14.7)

(15.2)

(15.6)

(17.8)

(8.4)

(10.0)

Divisional EBITDA

$4.7

$6.7

$7.5

$6.0

$3.0

$1.8

Note: Divisional EBITDA is defined as Divisional operating income plus depreciation and amortization. Divisional EBITDA margin is computed as the percentage of Divisional EBITDA to revenue

for

the

applicable

period.

Divisional

EBITDA

performance

measure

used

management

that

not

calculated

under

generally

accepted

accounting

principles

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.

6/30/2010 and 6/30/2011 amounts are unaudited.

Summary Balance Sheet

($ in millions)

* Includes a significant payment received from the state of Illinois at the end of June 2011

6/30/2011 amounts are unaudited

Key Balances

12/31/2009

12/31/2010

6/30/2011

Cash

$0.5

$0.8

$ 24.1 *

Accounts receivable, net

70.5

71.0

51.3

Total assets

161.3

166.9

170.1

Debt, including current maturities

49.2

45.2

40.0

Stockholders’ equity

80.6

88.1

90.4

Debt to capital ratio

37.9%

33.9%

30.7%

Improving Days Sales Outstanding

# of Days

Accounts Receivable Days Sales Outstanding

100

120

140

160

180

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Total Company

DSO

Largest Payor in Illinois DSO

Key Management Initiatives –

Positioning for Growth

Improve Operating Margins and Outcomes

People:

•

New leadership in Finance,

Operations and Sales

•

Agency staff focused on growth

•

Professional Call Center staff

•

Sales team expansion

Process:

•

Focus on Integrated Model

•

Centralized Call Center

•

Centralizing administrative

processes and activities

•

Focus on operating standards

and managing to metrics

Technology:

•

Telephony solution

•

Enhanced VOIP

telephone solutions

linking all offices

•

Enhanced Business

Intelligence solutions

•

Standardize and install

human resource and

payroll solutions

•

Point of Care for Home

Health Division

Process

Technology

People

Investment Highlights

Large & Growing Market

Broad Range of Services and Payors

Positioned to Excel under Healthcare Reform

Significant

Operational

Scale Across

National Footprint

History of Growth through Acquisition

Multiple

Organic

Growth

Opportunities

Experienced Management Team

Differentiated, Integrated Care Model

Adjusted EBITDA Reconciliation

($ in millions)

Year Ended

Sis Months Ended

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2010

6/30/2011

Net Income

$0.2

$4.0

$3.6

$6.0

$3.0

$2.2

Net Interest Expense

4.8

5.8

6.8

3.0

1.5

1.4

Income Tax Expense

0.1

1.1

1.4

3.0

1.5

1.4

Depreciation & Amortization

6.0

6.1

4.9

4.0

1.9

Severance Costs Related to

Former Chairman

1.2

Stock-based Compensation

Expense

0.9

0.2

0.3

0.1

Adjusted EBITDA

$12.0

$17.2

$18.2

$16.3

$8.0

$6.7

_____________________________________

(1)

Included as one-time charge associated with the Company’s IPO completed in November 2009.

(2)

Adjusted EBITDA is defined as net income plus depreciation and amortization, net interest expense, income tax expense and stock-based compensation expense. Adjusted EBITDA is a performance measure used by

management that is not calculated under 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)

6/30/2010 and 6/30/2010 and 6/30/2011 amounts are unaudited.

(3)

(2)

(1)

Divisional EBITDA Reconciliation

($ in millions)

Year Ended

Six Months Ended

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2010

6/30/2011

Operating Income

$12.7

$17.6

$20.4

$22.7

$11.0

$11.3

Depreciation &

Amortization

4.4

3.4

2.8

1.2

1.3

Divisional EBITDA

$16.6

$22.0

$23.8

$25.5

$12.2

$12.6

Home & Community

Home Health

Year Ended

Six Months Ended

12/31/2007

12/31/2008

12/31/2009

12/31/2010

6/30/2010

6/30/2011

Operating Income

$3.5

$5.8

$6.8

$5.3

$2.7

$1.5

Depreciation &

Amortization

1.2

0.9

0.7

0.3

Divisional EBITDA

$4.7

$6.7

$7.5

$3.0

$1.8

$6.0

(1)

3.9

(1) Divisional EBITDA is defined as divisional operating income plus depreciation and amortization. Divisional EBITDA is a performance measure used by management that is not calculated under 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.

Addus HomeCare (ADUS) 8-KIt is the primary mission of Addus HealthCare to improve the health and well