Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 01, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | Addus HomeCare Corp | ||
Entity Central Index Key | 1468328 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 11,009,879 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $246,868,346 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash | $13,363 | $15,565 |
Accounts receivable, net of allowances of $3,881 and $4,140 at December 31, 2014 and 2013, respectively | 68,333 | 61,354 |
Prepaid expenses and other current assets | 7,168 | 6,235 |
Deferred tax assets | 8,508 | 8,326 |
Total current assets | 97,372 | 91,480 |
Property and equipment, net of accumulated depreciation and amortization | 7,695 | 2,634 |
Other assets | ||
Goodwill | 64,220 | 60,026 |
Intangibles, net of accumulated amortization | 10,347 | 8,762 |
Investments in joint ventures | 900 | 900 |
Other assets | 269 | 132 |
Total other assets | 75,736 | 69,820 |
Total assets | 180,803 | 163,934 |
Current Liabilities | ||
Accounts payable | 3,951 | 4,633 |
Current portion of capital lease obligations | 986 | |
Contingent earn-out obligation, less current portion | 1,000 | |
Accrued expenses | 37,268 | 40,904 |
Total current liabilities | 43,205 | 45,537 |
Long-term liabilities | ||
Deferred tax liabilities | 5,845 | 3,441 |
Capital lease obligations, less current portion | 2,677 | |
Contingent earn-out obligation, less current portion | 1,120 | 1,100 |
Total long-term liabilities | 9,642 | 4,541 |
Total liabilities | 52,847 | 50,078 |
Stockholders' equity | ||
Common stock-$.001 par value; 40,000 authorized and 11,010 and 10,913 shares issued and outstanding as of December 31, 2014 and 2013, respectively | 11 | 11 |
Additional paid-in capital | 84,929 | 83,072 |
Retained earnings | 43,016 | 30,773 |
Total stockholders' equity | 127,956 | 113,856 |
Total liabilities and stockholders' equity | $180,803 | $163,934 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $3,881 | $4,140 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,010,000 | 10,913,000 |
Common stock, shares outstanding | 11,010,000 | 10,913,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Income [Abstract] | |||
Net service revenues | $312,942 | $265,941 | $244,315 |
Cost of service revenues | 229,207 | 198,202 | 180,264 |
Gross profit | 83,735 | 67,739 | 64,051 |
General and administrative expenses | 61,834 | 50,118 | 46,362 |
Gain on sale of agency | -495 | ||
Depreciation and amortization | 3,830 | 2,160 | 2,521 |
Total operating expenses | 65,664 | 52,278 | 48,388 |
Operating income from continuing operations | 18,071 | 15,461 | 15,663 |
Interest income | -18 | -188 | -155 |
Interest expense | 698 | 674 | 1,723 |
Total interest expense, net | 680 | 486 | 1,568 |
Income from continuing operations before income taxes | 17,391 | 14,975 | 14,095 |
Income tax expense | 5,428 | 3,812 | 4,807 |
Net income from continuing operations | 11,963 | 11,163 | 9,288 |
Discontinued operations: | |||
Income (loss) from Home Health Business, net of tax | 280 | -980 | -1,653 |
Gain on sale of home health business, net of tax | 8,962 | ||
Earnings (losses) from discontinued operations | 280 | 7,982 | -1,653 |
Net income | $12,243 | $19,145 | $7,635 |
Basic income per share | |||
Continuing operations | $1.10 | $1.03 | $0.86 |
Discontinued operations | $0.02 | $0.74 | ($0.15) |
Basic income per share | $1.12 | $1.77 | $0.71 |
Diluted income per share | |||
Continuing operations | $1.08 | $1.01 | $0.86 |
Discontinued operations | $0.02 | $0.72 | ($0.15) |
Diluted income per share | $1.10 | $1.73 | $0.71 |
Weighted average number of common shares and potential common shares outstanding: | |||
Basic | 10,900 | 10,826 | 10,764 |
Diluted | 11,114 | 11,075 | 10,784 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
In Thousands | ||||
Balance at Dec. 31, 2011 | $11 | $82,437 | $3,993 | $86,441 |
Balance, shares at Dec. 31, 2011 | 10,775 | |||
Issuance of shares of common stock under restricted stock award agreement, Shares | 43 | |||
Stock-based compensation | 341 | 341 | ||
Shares issued, shares | 5 | |||
Net income | 7,635 | 7,635 | ||
Balance at Dec. 31, 2012 | 11 | 82,778 | 11,628 | 94,417 |
Balance, shares at Dec. 31, 2012 | 10,823 | |||
Issuance of shares of common stock under restricted stock award agreement, Shares | 63 | |||
Stock-based compensation | 515 | 515 | ||
Common shares withheld for withholding taxes on exercise of options | -67 | -221 | -221 | |
Shares issued, shares | 94 | |||
Net income | 19,145 | 19,145 | ||
Balance at Dec. 31, 2013 | 11 | 83,072 | 30,773 | 113,856 |
Balance, shares at Dec. 31, 2013 | 10,913 | |||
Issuance of shares of common stock under restricted stock award agreement, Shares | 36 | |||
Stock-based compensation | 827 | 827 | ||
Excess tax benefit from exercise of stock options | 816 | 816 | ||
Shares issued | 214 | 214 | ||
Shares issued, shares | 61 | |||
Net income | 12,243 | 12,243 | ||
Balance at Dec. 31, 2014 | $11 | $84,929 | $43,016 | $127,956 |
Balance, shares at Dec. 31, 2014 | 11,010 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $12,243 | $19,145 | $7,635 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,830 | 2,160 | 2,544 |
Deferred income taxes | 2,221 | 4,701 | 839 |
Stock-based compensation | 827 | 515 | 341 |
Amortization of debt issuance costs | 154 | 166 | 215 |
Provision for doubtful accounts | 2,818 | 3,019 | 2,877 |
Gain on sale of home health business | -15,284 | ||
Gain on sale of agency | -495 | ||
Changes in operating assets and liabilities, net of acquired businesses: | |||
Accounts receivable | -9,276 | 7,818 | -1,812 |
Prepaid expenses and other current assets | -873 | 1,061 | -18 |
Accounts payable | -850 | 435 | -1,149 |
Accrued expenses | -4,066 | 3,657 | 4,428 |
Net cash provided by operating activities | 7,028 | 27,393 | 15,405 |
Cash flows from investing activities: | |||
Acquisitions of businesses | -7,172 | -12,325 | |
Acquisition of customer list | -50 | ||
Net proceeds from sale of Home Health Business | 16,105 | ||
Net proceeds from sale of agency | 495 | ||
Purchases of property and equipment | -6,411 | -887 | -1,114 |
Net cash (used in) provided by investing activities | -13,633 | 2,893 | -619 |
Cash flows from financing activities: | |||
Net repayments on term loan | -208 | -2,500 | |
Net payments on revolving credit loan | -16,250 | -8,500 | |
Payments on subordinated dividend notes | -4,069 | ||
Excess tax benefit from exercise of stock options | 816 | ||
Cash received from exercise of stock options | 214 | ||
Borrowings on capital lease obligations | 4,033 | ||
Payments for debt issuance costs | -290 | ||
Payments on capital lease obligations | -370 | ||
Net cash provided by (used in) financing activities | 4,403 | -16,458 | -15,069 |
Net change in cash | -2,202 | 13,828 | -283 |
Cash, at beginning of period | 15,565 | 1,737 | 2,020 |
Cash, at end of period | 13,363 | 15,565 | 1,737 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 698 | 725 | 1,557 |
Cash paid for income taxes | 4,465 | 5,689 | 1,758 |
Supplemental disclosures of non-cash investing and financing activities | |||
Tax benefit related to the amortization of tax goodwill in excess of book basis | 123 | 160 | 159 |
Contingent and deferred consideration accrued for acquisitions | $1,020 | $1,100 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary Of Significant Accounting Policies [Abstract] | ||
Summary Of Significant Accounting Policies | 1. Significant Accounting Policies | |
Basis of Presentation and Description of Business | ||
The consolidated financial statements include the accounts of Addus HomeCare Corporation ("Holdings") and its subsidiaries (together with Holdings, the "Company"). The Company is a provider of comprehensive home and community based services, which are provided primarily in the home, and focused on the dual eligible (Medicare/Medicaid) population. The Company's services include personal care and assistance with activities of daily living, and adult day care. The Company's consumers are primarily persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Company's payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. The Company currently provides home and community based services to over 31,000 consumers through 129 locations across 22 states, including 5 adult day centers in Illinois. | ||
Discontinued Operations | ||
On February 7, 2013, subsidiaries of Holdings entered into an Asset Purchase Agreement with LHC Group, Inc. and certain of its subsidiaries (the Home Health Purchase Agreement). Pursuant to the Home Health Purchase Agreement, effective March 1, 2013, the purchasers acquired substantially all the assets of the Companys home health business in Arkansas, Nevada and South Carolina and 90% of its home health business in California and Illinois, with the Company retaining 10% ownership in such locations, for cash consideration of $20,000,000. | ||
The Companys home health services were operated through licensed and Medicare certified offices that provided physical, occupational and speech therapy, as well as skilled nursing services to pediatric, adult infirm and elderly patients. Home health services were reimbursed from Medicare, Medicaid and Medicaid-waiver programs, commercial insurance and private payors (see note 2). | ||
Principles of Consolidation | ||
All intercompany balances and transactions have been eliminated in consolidation. The Companys investment in entities with less than 20% ownership or in which the Company does not have the ability to influence the operations of the investee are being accounted for using the cost method and are included in investments in joint ventures. | ||
Revenue Recognition | ||
The Company generates net service revenues by providing services directly to consumers. The Company receives payments for providing services from federal, state and local governmental agencies, commercial insurers and private consumers. The Companys continuing operations, which include the results of operations previously included in its home and community segment and agencies in three states previously included in its home health segment, are principally provided based on authorized hours, determined by the relevant agency, at an hourly rate specified in agreements or fixed by legislation and recognized as revenues at the time services are rendered. Home and community based service revenues are reimbursed by state, local and other governmental programs which are partially funded by Medicaid or Medicaid waiver programs, with the remainder reimbursed through private duty and insurance programs. | ||
Laws and regulations governing the Medicaid and Medicare programs are complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates may change in the near term. The Company believes that it is in compliance in all material respects with all applicable laws and regulations. | ||
Allowance for Doubtful Accounts | ||
The Company establishes its allowance for doubtful accounts to the extent it is probable that a portion or all of a particular account will not be collected. The Company estimates its provision for doubtful accounts primarily by aging receivables utilizing eight aging categories and applying its historical collection rates to each aging category, taking into consideration factors that might impact the use of historical collection rates or payor groups, with certain large payors analyzed separately from other payor groups. In the Companys evaluation of these estimates, it also considers delays in payment trends in individual states due to budget or funding issues, billing conversions related to acquisitions or internal systems, resubmission of bills with required documentation and disputes with specific payors. An allowance for doubtful accounts is maintained at a level that the Companys management believes is sufficient to cover potential losses. However, actual collections could differ from the Companys estimates. | ||
Property and Equipment | ||
Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets by use of the straight-line method except for internally developed software which is amortized by the sum-of-years digits method. Maintenance and repairs are charged to expense as incurred. The estimated useful lives of the property and equipment are as follows: | ||
Computer equipment | 3 - 5 years | |
Furniture and equipment | 5 - 7 years | |
Transportation equipment | 5 years | |
Computer software | 5 - 10 years | |
Leasehold improvements | Lesser of useful life or lease term, unless probability of lease renewal is likely | |
Goodwill | ||
The Companys carrying value of goodwill is the residual of the purchase price over the fair value of the net assets acquired from various acquisitions including the acquisition of Addus HealthCare, Inc. (Addus HealthCare). In accordance with ASC Topic 350, Goodwill and Other Intangible Assets, goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occurred. The Company may use a qualitative test, known as Step 0, or a two-step quantitative method to determine whether impairment has occurred. In Step 0, the Company can elect to perform an optional qualitative analysis and based on the results skip the two step analysis. In 2014, 2013 and 2012, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. The results of the Companys Step 0 assessments indicated that it was more likely than not that the fair value of its reporting unit exceeded its carrying value and therefore the Company concluded that there was no impairments for the years ended December 31, 2014, 2013 or 2012. | ||
Intangible Assets | ||
The Companys identifiable intangible assets consist of customer and referral relationships, trade names, trademarks, state licenses and non-compete agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years. | ||
Intangible assets with finite lives are amortized using the estimated economic benefit method over the useful life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company would recognize an impairment loss when the estimated future non-discounted cash flows associated with the intangible asset is less than the carrying value. An impairment change would then be recorded for the excess of the carrying value over the fair value. The Company estimates the fair value of these intangible assets using the income approach. No impairment charge was recorded for the years ended December 31, 2014, 2013 or 2012. | ||
The income approach, which the Company uses to estimate the fair value of its intangible assets (other than goodwill), is dependent on a number of factors including estimates of future market growth and trends, forecasted revenue and costs, expected periods the assets will be utilized, appropriate discount rates and other variables. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but which are unpredictable and inherently uncertain. Actual future results may differ from those estimates. | ||
The Company also has indefinite-lived intangible assets that are not subject to amortization expense such as certificates of need and licenses to conduct specific operations within geographic markets. The Companys management has concluded that certificates of need and licenses have indefinite lives, as management has determined that there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets, and the Company intends to renew and operate the certificates of need and licenses indefinitely. The certificates of need and licenses are tested annually for impairment. No impairment was recorded for the years ended December 31, 2014, 2013 or 2012. | ||
Debt Issuance Costs | ||
The Company amortizes debt issuance costs on a straight-line method over the term of the related debt. This method approximates the effective interest method. | ||
Workers Compensation Program | ||
The Companys workers compensation program has a $350,000 deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The future claims payments related to the workers compensation program are secured by letters of credit. | ||
Interest Income | ||
Legislation enacted in Illinois entitles designated service program providers to receive a prompt payment interest penalty based on qualifying services approved for payment that remain unpaid after a designated period of time. As the amount and timing of the receipt of these payments are not certain, the interest income is recognized when received and reported in the statement of operations as interest income. The Company received no prompt payment interest in 2014 and $185,000 and $155,000 in prompt payment interest in 2013 and 2012, respectively. While the Company may be owed additional prompt payment interest, the amount and timing of receipt of such payments remains uncertain and the Company has determined that it will continue to recognize prompt payment interest income when received. | ||
Interest Expense | ||
The Companys interest expense consists of interest costs on its credit facility, capital lease obligations and other debt instruments. | ||
Income Tax Expenses | ||
The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in its financial statements or tax returns. Deferred taxes, resulting from differences between the financial and tax basis of the Companys assets and liabilities, are also adjusted for changes in tax rates and tax laws when changes are enacted. ASC Topic 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC Topic 740, also prescribes a recognition threshold and measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. In addition, ASC Topic 740 provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. | ||
Stock-based Compensation | ||
The Company has two stock incentive plans, the 2006 Stock Incentive Plan (the 2006 Plan) and the 2009 Stock Incentive Plan (the 2009 Plan) that provide for stock-based employee compensation. The Company accounts for stock-based compensation in accordance with ASC Topic 718, Stock Compensation . Compensation expense is recognized on a graded method under the 2006 Plan and on a straight-line basis under the 2009 Plan over the vesting period of the awards based on the fair value of the options and restricted stock awards. Under the 2006 Plan, the Company historically used the Black-Scholes option pricing model to estimate the fair value of its stock based payment awards, but beginning October 28, 2009 under its 2009 Plan it began using an enhanced Hull-White Trinomial model. The determination of the fair value of stock-based payments utilizing the Black-Scholes model and the Enhanced Hull-White Trinomial model is affected by Holdings stock price and a number of assumptions, including expected volatility, risk-free interest rate, expected term, expected dividends yield, expected forfeiture rate, expected turn-over rate and the expected exercise multiple. | ||
Net Income Per Common Share | ||
Net income per common share, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The Companys outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards. | ||
Included in the Companys calculation for the year ended December 31, 2014 were 684,000 stock options of which 146,000 were out-of-the money and 80,000 restricted stock awards with 14,000 included in the weighted diluted shares outstanding for 2014. | ||
Included in the Companys calculation for the year ended December 31, 2013 were 647,000 stock options of which none were out-of-the money and 96,000 restricted stock awards with 44,000 included in the weighted diluted shares outstanding for 2013. | ||
Included in the Companys calculation for the year ended December 31, 2012 were 596,000 stock options of which 501,000 were out-of-the money and therefore anti-dilutive and 57,000 restricted stock awards with 12,000 included in the weighted diluted shares outstanding for 2012. | ||
Estimates | ||
The financial statements are prepared by management in conformity with U.S. Generally Accepted Accounting Principles (GAAP) and include estimated amounts and certain disclosures based on assumptions about future events. Accordingly, actual results could differ from those estimates. | ||
Fair Value of Financial Instruments | ||
The Companys financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying value of the Companys long-term debt with variable interest rates approximates fair value based on instruments with similar terms. | ||
The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill and indefinite-lived intangible assets and also when determining the fair value of contingent considerations. To determine the fair value in these situations, the Company uses Level 3 inputs, such as discounted cash flows, or if available, what a market participant would pay on the measurement date. | ||
The Company utilizes the income approach to estimate the fair value of its intangible assets derived from acquisitions. In addition, discounted cash flows were used to estimate the fair value of the Companys investment in joint ventures. | ||
New Accounting Pronouncements | ||
On April 10, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance changes the requirements for reporting a discontinued operation. Only a disposal representing a strategic shift that has a major effect on the entitys operations and financial results will have to be reported as a discontinued operation. Examples of strategic shifts meeting the new criteria include a disposal of a major geographical area, a major line of business, or a major equity-method investment. Under this new guidance, many disposals that might be routine and not a change in an entitys strategy no longer will be reported as discontinued operations. For each comparative period, an entitys statement of financial position must present separately the assets and liabilities of a disposal group qualifying as a discontinued operation. The ASU requires additional disclosures about the assets, liabilities, revenues, expenses, and cash flows of a discontinued operation. An entity also will be required to disclose the pretax income or loss attributable to a disposal of a significant component that does not qualify for discontinued operations presentation. ASU 2014-08 is effective for public companies for annual and interim periods beginning on or after December 15, 2014. | ||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | ||
Reclassification of Prior Period Balances | ||
Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. Previously, the contingent earn-out obligation for the Coordinated Home Health Care, LLC acquisition described in Note 4 had been classified as an Accrued expense on the Company's Consolidated Balance Sheets. The Company revised the classification in the current year's report to Contingent earn-out obligation, less current portion, a long-term liability. In addition, in the current year's report, deferred revenue has been included in Accrued expenses. Previously, this amount was separately listed on the Consolidated Balance Sheets. | ||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Discontinued Operations [Abstract] | |||||||||
Discontinued Operations | 2. Discontinued Operations | ||||||||
During December 2012, in anticipation of the sale of substantially all of the assets used in its home health business (the Home Health Business), the Company reported the operating results of the Home Health Business as discontinued operations in accordance with ASC 360-10-45, Impairment or Disposal of Long-Lived Assets. On February 7, 2013, the Company entered into the Home Health Purchase Agreement, pursuant to which subsidiaries of LHC Group, Inc. agreed to acquire substantially all the assets of the Home Health Business in Arkansas, Nevada and South Carolina and 90% of the Home Health Business in California and Illinois, with the Company retaining 10% ownership in such locations, for cash consideration of $20,000,000. The transaction was consummated effective March 1, 2013. In addition, the results of operations for an agency in Pennsylvania that was sold on December 30, 2013 and an agency in Idaho that was closed on November 30, 2012 are included in discontinued operations. | |||||||||
The Company has included the financial results of the Home Health Business in discontinued operations for all periods presented. In connection with the discontinued operations presentation, certain financial statement footnotes have also been updated to reflect the impact of discontinued operations. | |||||||||
The following table presents the net service revenues and earnings attributable to discontinued operations, which include the financial results for the years ended December 31, 2014, 2013 and 2012: | |||||||||
2014 | 2013 | 2012 | |||||||
(Amounts in Thousands) | |||||||||
Net service revenues | $ | $ | 6,462 | $ | 38,822 | ||||
Income (loss) before income taxes | 470 | (1,672 | ) | (2,752 | ) | ||||
Income tax expense (benefit) | 190 | (692 | ) | (1,099 | ) | ||||
Earnings (loss) from discontinued operations | $ | 280 | $ | (980 | ) | $ | (1,653 | ) | |
The following table presents the net gain on the sale of the Home Health Business which was recorded in the year ended December 31, 2013: | |||||||||
Gain | |||||||||
(Amounts in | |||||||||
Thousands) | |||||||||
Gain before income taxes | $ | 15,284 | |||||||
Income tax expense | (6,322 | ) | |||||||
8,962 | |||||||||
Pursuant to the Home Health Purchase Agreement, the Company retained $625,000 of accounts receivable, net as of December 31, 2013. In addition, the Company retained the related accrued expenses and accounts payable associated with the Home Health Business as of December 31, 2013. | |||||||||
Sale_Of_Agency
Sale Of Agency | 12 Months Ended |
Dec. 31, 2014 | |
Sale Of Agency [Abstract] | |
Sale Of Agency | 3. Sale of Agency |
During February 2012, the Company completed its sale of a home health agency located in Portland, Oregon for approximately $525,000 with net proceeds of approximately $495,000 after the payment of closing related expenses. The Company recorded a $495,000 pre-tax gain on the sale of the agency as part of continuing operations. | |
. | |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Acquisitions [Abstract] | |||||
Acquisitions | 4. Acquisitions | ||||
Effective June 1, 2014, the Company acquired Cura Partners, LLC, which conducts business under the name Aid & Assist at Home, LLC (Aid & Assist), in order to further expand the Companys presence in the State of Tennessee. The total consideration for the transaction was $8,192,000, comprised of $7,172,000 in cash and $1,020,000, which has not yet been paid, representing the estimated fair value, subject to the achievement of certain performance targets set forth in an earn-out agreement. The related acquisition costs were $508,000 and were expensed as incurred. The results of operations from this acquired entity are included in the Companys statement of operations from the date of the acquisition. | |||||
The Companys acquisition of Aid & Assist has been accounted for in accordance with ASC Top 805, Business Combinations, and the resultant goodwill and other intangible assets will be accounted for under ASC Topic 350 Goodwill and Other Intangible Assets . The acquisition was recorded at its fair value as of June 1, 2014. The total purchase price is $8,192,000 and is comprised of: | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Cash | $ | 7,172 | |||
Contingent earn-out obligation | 1,020 | ||||
Total purchase price | $ | 8,192 | |||
The contingent earn-out obligation has been recorded at its fair value of $1,020,000, which is the present value of the Companys obligation to pay up to $1,168,000 based on probability-weighted estimates of the achievement of certain performance targets, as defined in the earn-out agreement between the parties. As of December 31, 2014, the Company revalued this liability at $200,000. | |||||
Under business combination accounting, the total purchase price will be allocated to Aid & Assists net tangible and identifiable intangible assets based on their estimated fair values. Based upon managements preliminary valuation, the total purchase price has been allocated as follows: | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Goodwill | $ | 4,317 | |||
Identifiable intangible assets | 3,950 | ||||
Accounts receivable (net) | 521 | ||||
Furniture, fixtures and equipment | 65 | ||||
Other current assets | 60 | ||||
Accrued liabilities | (553 | ) | |||
Accounts payable | (168 | ) | |||
Total purchase price allocation | $ | 8,192 | |||
Managements assessment of qualitative factors affecting goodwill for Aid & Assist includes: estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations and the presence of managed care payors in the market. | |||||
Identifiable intangible assets acquired consist of trade names and trademarks, customer relationships and non-compete agreements. The estimated fair value of identifiable intangible assets was determined by the Companys management. It is anticipated that the net intangible and identifiable intangible assets, including goodwill, are deductible for tax purposes. These estimates are provisional and are subject to change. | |||||
The Aid & Assist acquisition accounted for $7,536,000 of net service revenues from continuing operations for the year ended December 31, 2014. | |||||
The Company entered into two definitive acquisition agreements to acquire home and community based businesses during 2013 to further its presence in both existing states and to expand into new states. On October 17, 2013 the Company entered into an asset purchase agreement to acquire the entire home and community based business of Medi Home Private Care Division of Medical Services of America, Inc. The acquisition included two agencies located in South Carolina which were closed effective November 1, 2013; four agencies located in Tennessee and two agencies located in Ohio which closed in January 2014. The Company also entered into an asset purchase agreement to acquire the assets of Coordinated Home Health Care, LLC a personal care business located in New Mexico on November 7, 2013. The combined purchase price for these two acquisitions was $12,325,000 at the close and a maximum of $2,250,000 in future cash based on certain performance. The purchase included sixteen offices located in Southern New Mexico. The transaction closed effective December 1, 2013. The related acquisitions costs were $735,000 for the Medi Home Private Care Division of Medical Services of America, Inc. and Coordinated Home Health Care, LLC deals, and were expensed as incurred. The results of operations from these acquired entities are included in our statement of operations from the dates of the respective acquisitions. | |||||
The Companys acquisition of the assets of Coordinated Home Health Care, LLC ("CHHC") has been accounted for in accordance with ASC Top 805, Business Combinations and the resultant goodwill and other intangible assets will be accounted for under ASC Topic 350 Goodwill and Other Intangible Assets. Assets acquired and liabilities assumed were recorded at their fair values as of December 1, 2013. The total purchase price is $12,825,000 and is comprised of: | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Cash | $ | 11,725 | |||
Contingent earn-out obligation | 1,100 | ||||
Total purchase price | $ | 12,825 | |||
The contingent earn-out obligation was recorded at its fair value of $1,100,000, which is the present value of the Companys obligation to up to $2,250,000 based on probability-weighted estimates of the achievement of certain performance targets, as defined in the earn-out agreement between the parties. As of December 31, 2014, the Company recorded $1,000,000 as the current portion of contingent earn out obligation payable in 2015 and revalued the remaining liability at $920,000. | |||||
Under business combination accounting, the total purchase price was allocated to CHHCs net tangible and identifiable intangible assets based on their estimated fair values. Based upon managements valuation, the total purchase price was allocated as follows: | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Goodwill | $ | 9,488 | |||
Identifiable intangible assets | 3,300 | ||||
Accounts receivable | 888 | ||||
Prepaid expenses | 35 | ||||
Furniture, fixtures and equipment | 58 | ||||
Deposits | 15 | ||||
Accounts payable | (81 | ) | |||
Accrued liabilities | (864 | ) | |||
Other liabilities | (14 | ) | |||
Total purchase price allocation | $ | 12,825 | |||
Managements assessment of qualitative factors affecting goodwill for CHHC includes: estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations and the presence of managed care payors in the market. | |||||
Identifiable intangible assets acquired consist of trade names and trademarks, customer relationships and non-compete agreements. The estimated fair value of identifiable intangible assets was determined by management. It is anticipated that the net intangible and identifiable intangible assets, including goodwill, are deductible for tax purposes. | |||||
Acquisitions completed during the fourth quarter 2013 accounted for $21,945,000 and $1,692,000 of net service revenues from continuing operations for the years ended December 31, 2014 and 2013, respectively. | |||||
The following table contains unaudited pro forma consolidated income statement information assuming the Aid & Assist and CHHC acquisitions closed on January 1, 2013: | |||||
For The Year Ended December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Net service revenues | $ | 318,352 | $ | 298,395 | |
Operating income from continuing operations | 18,080 | 15,890 | |||
Net income from continuing operations | 12,022 | 10,050 | |||
Earnings from discontinued operations | 280 | 7,982 | |||
Net income | $ | 12,302 | $ | 18,032 | |
Net income per common share | |||||
Basic income per share | |||||
Continuing operations | $ | 1.05 | $ | 0.99 | |
Discontinued operations | 0.02 | 0.74 | |||
Basic income per share | $ | 1.07 | $ | 1.72 | |
Diluted income per share | |||||
Continuing operations | $ | 1.03 | $ | 0.96 | |
Discontinued operations | 0.02 | 0.72 | |||
Diluted income per share | $ | 1.05 | $ | 1.68 | |
The pro forma disclosures in the table above include adjustments for, amortization of intangible assets and tax expense and acquisition costs to reflect results that are more representative of the combined results of the transactions as if they had occurred on January 1, 2013. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operation that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies. | |||||
Property_And_Equipment
Property And Equipment | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property And Equipment [Abstract] | |||||||
Property And Equipment | 5. Property and Equipment | ||||||
Property and equipment consisted of the following: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in Thousands) | |||||||
Computer equipment | $ | 2,537 | $ | 2,110 | |||
Furniture and equipment | 2,224 | 1,099 | |||||
Transportation equipment | 673 | 588 | |||||
Leasehold improvements | 4,609 | 1,628 | |||||
Computer software | 5,105 | 3,749 | |||||
15,148 | 9,174 | ||||||
Less accumulated depreciation and amortization | (7,453 | ) | (6,540 | ) | |||
$ | 7,695 | $ | 2,634 | ||||
Computer software includes $3,109,000 of internally developed software. Depreciation and amortization expense predominantly related to computer equipment and software and leasehold improvements is reflected in general and administrative expenses and totaled $1,416,000, $814,000 and $870,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Goodwill And Intangible Assets [Abstract] | |||||||||||||||
Goodwill And Intangible Assets | 6. Goodwill and Intangible Assets | ||||||||||||||
The Companys carrying value of goodwill is the residual of the purchase price over the fair value of the net assets acquired from various acquisitions including the acquisition of Addus HealthCare. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets, goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that impairment may have occurred. | |||||||||||||||
Goodwill is required to be tested for impairment at least annually. The Company can elect to perform Step-0 an optional qualitative analysis and based on the results skip the remaining two steps. In 2014, 2013 and 2012, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. In performing its goodwill assessment for 2014, 2013 and 2012, the Company evaluated the following factors that affect future business performance: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, entity-specific events, reporting unit factors and company stock price. As a result of the assessment of these qualitative factors, the Company has concluded that it is more likely than not that the fair values of the reporting unit goodwill as of December 31, 2014, 2013 and 2012 exceed the carrying values of the unit. Accordingly, the first and second steps of the goodwill impairment test as described in FASB ASC 350-20-35, which includes estimating the fair values of the Company, are not considered necessary. | |||||||||||||||
The goodwill for the Companys continuing operations was $64,220,000 and $60,026,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||
A summary of goodwill and related adjustments for continuing operations is provided below: | |||||||||||||||
Goodwill | |||||||||||||||
(Amounts in | |||||||||||||||
Thousands) | |||||||||||||||
Goodwill, at December 31, 2012 | $ | 50,536 | |||||||||||||
Additions for acquisitions | 9,650 | ||||||||||||||
Adjustments to previously recorded goodwill | (160 | ) | |||||||||||||
Goodwill, at December 31, 2013 | $ | 60,026 | |||||||||||||
Additions for acquisitions | 4,317 | ||||||||||||||
Adjustments to previously recorded goodwill | (123 | ) | |||||||||||||
Goodwill, at December 31, 2014 | $ | 64,220 | |||||||||||||
Adjustments to the previously recorded goodwill are primarily credits related to amortization of tax goodwill in excess of book basis. | |||||||||||||||
The Companys identifiable intangible assets consist of customer and referral relationships, trade names, trademarks, state licenses and non-compete agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years. | |||||||||||||||
The Company also has indefinite-lived assets that are not subject to amortization expense such as licenses and in certain states certificates of need to conduct specific operations within geographic markets. The Company has concluded these assets have indefinite lives, as management has determined that there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew the licenses indefinitely. The licenses and certificates of need are tested annually for impairment using the cost approach. Under this method assumptions are made about the cost to replace the certificates of need. No impairment charges were recorded in the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||
The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following for continuing operations at December 31, 2014 and 2013: | |||||||||||||||
Customer | Trade | ||||||||||||||
and referral | names and | State | Non-competition | ||||||||||||
relationships | trademarks | Licenses | agreements | Total | |||||||||||
(Amounts in Thousands) | |||||||||||||||
Gross balance at January 1, 2013 | $ | 24,908 | $ | 4,081 | $ | 150 | $ | 408 | $ | 29,547 | |||||
Additions for acquisitions | 1,438 | 1,200 | 1,100 | 3,738 | |||||||||||
Accumulated amortization | (21,138 | ) | (2,995 | ) | (390 | ) | (24,523 | ) | |||||||
Net Balance at December 31, 2013 | 5,208 | 2,286 | 150 | 1,118 | 8,762 | ||||||||||
Gross balance at January 1, 2014 | 26,346 | 5,281 | 150 | 1,508 | 33,285 | ||||||||||
Additions | 50 | 50 | |||||||||||||
Additions for acquisitions | 1,500 | 1,900 | 550 | 3,950 | |||||||||||
Accumulated amortization | (22,497 | ) | (3,619 | ) | (822 | ) | (26,938 | ) | |||||||
Net Balance at December 31, 2014 | $ | 5,399 | $ | 3,562 | $ | 150 | $ | 1,236 | $ | 10,347 | |||||
Amortization expense for continuing and discontinued operations related to the identifiable intangible assets amounted to $2,414,000, $1,346,000 and $1,674,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Goodwill and state licenses are not amortized pursuant to ASC Topic 350. | |||||||||||||||
The estimated future intangible amortization expense is as follows: | |||||||||||||||
Total | |||||||||||||||
(Amount in | |||||||||||||||
For the year ended December 31, | Thousands) | ||||||||||||||
2015 | $ | 2,561 | |||||||||||||
2016 | 2,396 | ||||||||||||||
2017 | 1,897 | ||||||||||||||
2018 | 1,771 | ||||||||||||||
2019 | 808 | ||||||||||||||
Thereafter | 764 | ||||||||||||||
Total | $ | 10,197 | |||||||||||||
Details_Of_Certain_Balance_She
Details Of Certain Balance Sheet Accounts | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Details Of Certain Balance Sheet Accounts [Abstract] | |||||
Details Of Certain Balance Sheet Accounts | 7. Details of Certain Balance Sheet Accounts | ||||
Prepaid expenses and other current assets consist of the following: | |||||
December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Prepaid health insurance | $ | 2,762 | $ | 3,192 | |
Prepaid workers compensation and liability insurance | 1,326 | 1,173 | |||
Prepaid rent | 595 | 455 | |||
Workers compensation insurance receivable | 1,457 | 821 | |||
Other | 1,028 | 594 | |||
$ | 7,168 | $ | 6,235 | ||
Accrued expenses consisted of the following: | |||||
December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Accrued payroll | $ | 12,703 | $ | 12,932 | |
Accrued workers compensation insurance | 14,081 | 13,347 | |||
Accrued health insurance (3) | 3,540 | 3,731 | |||
Indemnification reserve (1) | 1,263 | 3,224 | |||
Accrued payroll taxes | 3,287 | 1,755 | |||
Accrued professional fees | 1,500 | 1,319 | |||
Amounts due to LHCG (2) | 2,196 | ||||
Other | 894 | 2,400 | |||
$ | 37,268 | $ | 40,904 | ||
(1) As a condition of the sale of the Home Health Business to subsidiaries of LHC Group. Inc. (LHCG) the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. In connection with an internal evaluation of the Companys billing processes, it discovered documentation errors in a number of claims that it had submitted to Medicare. Consistent with applicable law, the Company voluntarily remitted $1,840,000 to the government in March 2014. The Company, using its best judgment, has estimated a total of $1,263,000 for billing adjustments remaining. | |||||
(2) Amounts due to LHCG pursuant to a billing services arrangement between the Company and LHCG. | |||||
(3) The Company provides health insurance coverage to qualified union employees providing home and community based services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Companys insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State. Amounts due of $2,404,000 and $3,163,000 for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2014 and 2013, respectively. | |||||
The Companys workers compensation program has a $350,000 deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The future claims payments related to the workers compensation program are secured by letters of credit. These letters of credit totaled $15,464,000 and $12,411,000 at December 31, 2014 and 2013. | |||||
As part of the terms of the acquisition of Addus HealthCare in 2006, all 2005 and prior workers' compensation claims were the obligation of the former stockholders of Addus HealthCare. During the fourth quarter of 2014, Addus entered into an agreement pursuant to which the responsibility of the selling shareholders for these claims was terminated. The outstanding loss reserves associated with the 2005 and prior workers' compensation policies approximated $779,000 and $604,000 at December 31, 2014 and 2013, respectively. The Company received $841,000 in cash and escrow amounts in exchange for the termination of these liabilities. | |||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Long-Term Debt [Abstract] | ||||
Long-Term Debt | 8. Long-Term Debt | |||
Capital Leases | ||||
On July 12, 2014 and September 11, 2014, the Company executed two 48-month capital lease agreements for $2,650,000 and $1,428,000, respectively, with First American Commercial Bancorp, Inc. The capital leases were entered into to finance property and equipment at the Companys new corporate headquarters in Downers Grove, IL. The underlying assets are included in Property and equipment, net of accumulated depreciation and amortization in the accompanying Consolidated Balance Sheets. These capital lease obligations require monthly payments through September 2018 and have implicit interest rates that range from 3.0% to 3.3%. At the end of the term, the Company has the option to purchase the assets for $1 per lease agreement. | ||||
An analysis of the leased property under capital leases by major classes is as follows. | ||||
Asset Balances at | ||||
31-Dec-14 | ||||
Classes of Property | (Amounts in Thousands) | |||
Leasehold Improvements | $ | 2,928 | ||
Furniture & Equipment | 526 | |||
Computer Equipment | 431 | |||
Computer Software | 147 | |||
Less: Accumulated Depreciation | (239 | ) | ||
$ | 3,793 | |||
The future minimum payments for capital leases as of December 31, 2014 are as follows: | ||||
Capital Lease | ||||
(Amounts In Thousands) | ||||
2015 | $ | 1,105 | ||
2016 | 1,105 | |||
2017 | 1,105 | |||
2018 | 629 | |||
Total minimum lease payments | 3,944 | |||
Less: amount representing estimated executory costs (such as taxes, | ||||
maintenance and insurance), including profit thereon, included in total | ||||
minimum lease payments | (68 | ) | ||
Net minimum lease payments | 3,876 | |||
Less: amount representing interest (1) | (213 | ) | ||
Present value of net minimum lease payments (2) | $ | 3,663 | ||
(1) Amount necessary to reduce net minimum lease payments to present value calculated at the Companys incremental borrowing rate at lease inception. | ||||
(2) Reflected in the balance sheet as current and noncurrent obligations under capital leases of $986,000 and $2,677,000, respectively. | ||||
Senior Secured Credit Facility | ||||
On August 11, 2014, the Company renewed its credit facility. The Companys credit facility provides a $55,000,000 revolving line of credit expiring November 2, 2019 and includes a $27,500,000 sublimit for the issuance of letters of credit. On November 6, 2014, the Company amended its credit facility, with retroactive effect to September 30, 2014. The credit facility was amended to (i) reduce the floating interest rate from one-month LIBOR, plus a margin of 4.6% to one-month LIBOR, plus a margin of 3.5%, (ii) reduce the interest rate for loans based on term periods of one, two or three months from the LIBOR rate, plus a margin of 4.6% to the LIBOR rate, plus a margin of 3.5% and (iii) increase the allowed capital expenditures for the fiscal year ending 2014 from $5,000,000 to $7,000,000. Substantially all of the subsidiaries of Holdings are co-borrowers, and Holdings has guaranteed the borrowers obligations under the credit facility. The credit facility is secured by a first priority security interest in all of Holdings and the borrowers current and future tangible and intangible assets, including the shares of stock of the borrowers. | ||||
The availability of funds under the revolving credit portion of the credit facility, as amended, is based on the lesser of (i) the product of adjusted EBITDA, as defined in the credit agreement, for the most recent 12-month period for which financial statements have been delivered under the credit agreement multiplied by the specified advance multiple, up to 3.25, less the outstanding senior indebtedness and letters of credit, and (ii) $55,000,000 less the outstanding revolving loans and letters of credit. Interest on the revolving line of credit may be payable at (i) a floating rate equal to the one-month LIBOR, plus a margin of 3.5%, (ii) the LIBOR rate for term periods of one, two or three months, plus a margin of 3.5% or (iii) the base rate, plus a margin of 1.6%, where the base rate is equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the prime rate, (b) the sum of the federal funds rate, plus a margin of 0.5% and (c) the sum of the adjusted LIBOR that would be applicable to a loan with a one month interest period advanced on such day, plus a margin of 3%. The Company pays a fee equal to 0.5% per annum of the unused portion of the revolving portion of the credit facility. Issued stand-by letters of credit are charged at a rate of 2.0% per annum payable monthly. The Company did not have any amounts outstanding on the credit facility as of December 31, 2014, and the total availability under the revolving credit loan facility was $39,536,000 and $42,279,000, as of December 31, 2014 and December 31, 2013, respectively. | ||||
The credit facility contains customary affirmative covenants regarding, among other things, the maintenance of records, compliance with laws, maintenance of permits, maintenance of insurance and property and payment of taxes. The credit facility also contains certain customary financial covenants and negative covenants that, among other things, include a requirement to maintain a minimum fixed charge coverage ratio, a requirement to stay below a maximum senior leverage ratio and a requirement to stay below a maximum permitted amount of capital expenditures, as well as restrictions on guarantees, indebtedness, liens, dividends, distributions, investments and loans, subject to customary carve outs, restrictions on the Companys ability to enter into transactions other than in the ordinary course of business, a restriction on the ability to consummate more than three acquisitions in any calendar year, or for the purchase price of any one acquisition to exceed $2,000,000, in each case without the consent of the lenders, restrictions on mergers, transfers of assets, acquisitions, equipment, subsidiaries and affiliate transactions, subject to customary carve outs, and restrictions on fundamental changes and lines of business. | ||||
Subordinated Dividend Notes | ||||
On November 2, 2009, in conjunction with the IPO, all outstanding shares of Holdings series A preferred stock were converted into an aggregate 4,077,000 shares of common stock at a ratio of 1:108. Total accrued and unpaid dividends on the series A preferred stock were $13,109,000 as of November 2, 2009, at which time a dividend payment of $173,000 was made and the remaining $12,936,000 in unpaid preferred dividends were converted into dividend notes. The dividend notes are subordinated and junior to all obligations under the Companys credit facility. On November 2, 2009, the Company made a mandatory payment of $4,000,000 on the dividend notes. Interest on the outstanding dividend notes accrues at a rate of 10% per annum, compounded annually. The outstanding principal amount of the dividend notes was originally payable in eight equal consecutive quarterly installments which commenced on December 31, 2009 and each March 31, June 30, September 30 and December 31 of each year thereafter until paid in full. Interest on the unpaid principal balance of the dividend notes is due and payable quarterly in arrears together with each payment of principal. | ||||
On March 18, 2010, the Company amended its subordinated dividend notes. A balance of $7,819,000 was outstanding on the dividend notes as of December 31, 2009. Pursuant to the amendments, the dividend notes were amended to (i) extend the maturity date of the dividend notes from September 30, 2011 to December 31, 2012, (ii) modify the amortization schedule of the dividend notes to reduce the annual principal payment amounts from $4,468,000 to $1,250,000 in 2010; from $3,351,000 to $2,500,000 in 2011; and amended total payments in 2012 to $4,069,000, and (iii) permit, based on the Companys leverage ratio, the prepayment of all or a portion of the principal amount of the dividend notes, together with interest on the principal amount. The Company repaid the subordinated dividend notes in the fourth quarter of 2012. | ||||
. | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Income Taxes | 9. Income Taxes | ||||||
The current and deferred federal and state income tax provision, for continuing operations are comprised of the following: | |||||||
December 31, | |||||||
2014 | 2013 | 2012 | |||||
(Amounts in Thousands) | |||||||
Current | |||||||
Federal | $ | 2,231 | $ | 2,926 | $ | 3,745 | |
State | 976 | 435 | 792 | ||||
Deferred | |||||||
Federal | 1,915 | 393 | 196 | ||||
State | 306 | 58 | 74 | ||||
Provision for income taxes | $ | 5,428 | $ | 3,812 | $ | 4,807 | |
The tax effects of certain temporary differences between the Companys book and tax bases of assets and liabilities give rise to significant portions of the deferred income tax assets at December 31, 2014 and 2013. The deferred tax assets consisted of the following: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in Thousands) | |||||||
Deferred tax assets | |||||||
Current | |||||||
Accounts receivable allowances | $ | 1,568 | $ | 1,664 | |||
Accrued compensation | 1,365 | 849 | |||||
Accrued workers compensation | 5,099 | 5,365 | |||||
Other | 899 | 923 | |||||
Total current deferred tax assets | 8,931 | 8,801 | |||||
Deferred tax liabilities | |||||||
Current | |||||||
Prepaid insurance | (423 | ) | (475 | ) | |||
Net deferred tax assets-current | 8,508 | 8,326 | |||||
Deferred tax assets | |||||||
Long-term | |||||||
Transaction costs | 612 | ||||||
Property and equipment | (394 | ) | 52 | ||||
Reserves | 510 | 1,295 | |||||
Stock-based compensation | 713 | 861 | |||||
Other | (218 | ) | |||||
Total long-term deferred tax assets | 1,223 | 2,208 | |||||
Deferred tax liability | |||||||
Long-term | |||||||
Goodwill and intangible assets | (7,068 | ) | (5,649 | ) | |||
Total long-term deferred tax liabilities | (5,845 | ) | (3,441 | ) | |||
Total net deferred tax assets | $ | 2,663 | $ | 4,885 | |||
Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax-planning strategies in making this assessment. Based on this assessment, management believes it is more likely than not that the Company will realize its deferred income tax assets as of December 31, 2014. | |||||||
A reconciliation of the statutory federal tax rate of 34.5%, 35.0% and 34.0% to the effective income tax rate, for continuing operations for the years ended December 31, 2014, 2013, and 2012, is summarized as follows: | |||||||
December 31, | |||||||
2014 | 2013 | 2012 | |||||
Federal income tax at statutory rate | 34.5 | % | 35 | % | 34 | % | |
State and local taxes, net of federal benefit | 5.9 | 5.2 | 5.9 | ||||
Jobs tax credits, net (1) | (9.9 | ) | (6.8 | ) | (7.5 | ) | |
Nondeductible meals and entertainment | 0.5 | 0.4 | (0.8 | ) | |||
Other | 0.2 | (8.3 | ) | 2.5 | |||
Effective income tax rate | 31.2 | % | 25.5 | % | 34.1 | % | |
(1) Included in the jobs tax credit for the year ended December 31, 2012 was a one-time benefit of a 2.4% reduction from the Companys statutory tax rate for the jobs tax credits earned in 2012 but not recorded until 2013. The federal employment opportunity tax credits were reinstated in 2013 and were not an allowable deduction in 2012. | |||||||
The Company is subject to taxation in the jurisdictions in which it operates. The Company continues to remain subject to examination by U.S. federal authorities for the years 2010 through 2014 and for various state authorities for the years 2010 through 2014. As part of the acquisition of Addus HealthCare in 2006, the selling stockholders agreed to assume and indemnify the successor for any federal or state tax liabilities prior to the acquisition date. | |||||||
The total amount of unrecognized tax benefits under ASC Topic 740 at December 31, 2014 was $115,000. If recognized, the entire amount would favorably impact the effective tax rate in future periods. Interest and penalties related to income tax liabilities are recognized in interest expense and general and administrative expenses, respectively. The Company does not anticipate a material change in its liabilities for uncertain tax positions during the next 12 months. | |||||||
A summary of the activities associated with the Companys reserve for unrecognized tax benefits is as follows: | |||||||
Unrecognized | |||||||
Tax Benefits | |||||||
(Amounts in | |||||||
Thousands) | |||||||
Balance at December 31, 2012 | $ | 115 | |||||
Increases related to current year tax positions | |||||||
Balance at December 31, 2013 | $ | 115 | |||||
Increases related to current year tax positions | |||||||
Balance at December 31, 2014 | $ | 115 | |||||
Stock_Options_And_Restricted_S
Stock Options And Restricted Stock Awards | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stock Options And Restricted Stock Awards [Abstract] | |||||||||||||
Stock Options And Restricted Stock Awards | 10. Stock Options and Restricted Stock Awards | ||||||||||||
Stock Options | |||||||||||||
The 2006 Plan provides for the grant of non-qualified stock options to directors and eligible employees, as defined in the 2006 Plan. A total of 899,000 of Holdings shares of common stock were reserved for issuance under the 2006 Plan. The number of options to be granted and the terms thereof were approved by Holdings board of directors. The option price for each share of common stock subject to an option may be greater than or equal to the fair market value of the stock at the date of grant. The stock options generally vest ratably over a five year period and expire 10 years from the date of grant, if not previously exercised. | |||||||||||||
In September 2009, the Companys board of directors and stockholders adopted and approved the 2009 Plan. The 2009 Plan provides for the grant of 1,500,000 incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units, restricted stock units, other stock units and performance shares. | |||||||||||||
A summary of stock option activity and weighted average exercise price is as follows: | |||||||||||||
For The Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted | Weighted | Weighted | |||||||||||
Options | Average | Options | Average | Options | Average | ||||||||
(Amounts in | Exercise | (Amounts | Exercise | (Amounts | Exercise | ||||||||
Thousands) | Price | in Thousands) | Price | in Thousands) | Price | ||||||||
Outstanding, beginning of period | 647 | $ | 8.8 | 596 | $ | 8.11 | 775 | $ | 7.69 | ||||
Granted | 121 | 22.97 | 177 | 10.93 | 36 | 4.49 | |||||||
Exercised | (66 | ) | 6.9 | (94 | ) | 9.09 | (5 | ) | 4.53 | ||||
Forfeited/Cancelled | (18 | ) | 9.26 | (32 | ) | 7.89 | (209 | ) | 6.02 | ||||
Outstanding, end of period | 684 | $ | 11.43 | 647 | $ | 8.8 | 596 | $ | 8.11 | ||||
The following table summarizes stock options outstanding and exercisable at December 31, 2014: | |||||||||||||
Outstanding | Exercisable | ||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Remaining | Weighted | Remaining | Weighted | ||||||||||
Contractual | Average | Contractual | Average | ||||||||||
Life in | Exercise | Life in | Exercise | ||||||||||
Exercise Price | Options | Years | Price | Options | Years | Price | |||||||
$4.06-$5.93 | 113,000 | 6.5 | $ | 4.73 | 78,000 | 6.4 | $ | 4.92 | |||||
$8.91-$23.22 | 571,370 | 5.7 | 12.76 | 324,619 | 3.3 | 9.56 | |||||||
684,370 | $ | 11.43 | 402,619 | $ | 8.66 | ||||||||
The Company historically used the Black-Scholes option pricing model to estimate the fair value of its stock based payment awards under its 2006 Plan, but beginning October 28, 2009 under its 2009 Plan it began using an enhanced Hull-White Trinomial model. The determination of the fair value of stock-based payments utilizing the Black-Scholes model and the Enhanced Hull-White Trinomial model is affected by Holdings stock price and a number of assumptions, including expected volatility, risk-free interest rate, expected term, expected dividends yield, expected forfeiture rate, expected turn-over rate, and the expected exercise multiple. Holdings did not have a history of market prices of its common stock as it was not a public company prior to the IPO, and as such management estimates volatility based on the volatilities of a peer group of publicly traded companies. The expected term of options is based on the Companys estimate of when options will be exercised in the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of the Companys awards. The dividend assumption is based on the Companys history and expectation of not paying dividends. The expected turn-over rate represents the expected forfeitures due to employee turnover and is based on historical rates experienced by the Company. The expected exercise multiple represents the mean ratio of the stock price to the exercise price at which employees are expected to exercise their options. | |||||||||||||
The weighted-average estimated fair value of employee stock options granted as calculated using the Black-Scholes model and the Enhanced Hull-White Trinomial model and the related assumptions follow: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Grants | Grants | Grants | |||||||||||
Weighted average fair value | $ | 10.69 | $ | 5.14 | $ | 2.09 | |||||||
Risk-free discount rate | 2.12% - 2.73% | 2.07% - 2.96% | 1.59% - 1.95% | ||||||||||
Expected life | 7.70 - 8.20 years | 6.00 - 6.25 years | 6.00 - 6.50 years | ||||||||||
Dividend yield | - | - | - | ||||||||||
Volatility | 47% | 47% | 42% 51% | ||||||||||
Expected turn-over rate | 5% | 5% | 5% | ||||||||||
Expected exercise multiple | 2.2 | 2.2 | 2.2 | ||||||||||
Stock option compensation expense, for continuing and discontinued operations, totaled $502,000, $276,000 and $181,000 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there was $1,659,000 of total unrecognized compensation cost that is expected to be recognized over a period of five years. | |||||||||||||
The intrinsic value of vested and outstanding stock options was $6,286,000 and $8,785,000, respectively as of December 31, 2014. The intrinsic value of stock options exercised during the year ended December 31, 2014 was $1,025,000. There were 66,000 stock options exercised of which 26,000 shares of common stock were issued as part of a cashless exchange and 94,000 stock options exercised of which 67,000 shares of common stock were issued as part of a cashless exchange in 2014 and 2013, respectively. | |||||||||||||
Restricted Stock Awards | |||||||||||||
In 2014, management awarded 36,000 shares of restricted stock awards under the 2009 Plan with a weighted average grant date fair value of $22.75 per share. As of December 31, 2014, $939,000 of unearned compensation related to unvested awards of restricted stock will be recognized over the remaining vesting terms of the awards. | |||||||||||||
The following table summarizes the status of unvested restricted stock awards outstanding at December 31, 2014, 2013 and 2012: | |||||||||||||
For The Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted | Weighted | Restricted | Weighted | Restricted | Weighted | ||||||||
Stock | Average | Stock | Average | Stock | Average | ||||||||
Awards | Grant | Awards | Grant | Awards | Grant | ||||||||
(Amounts in | Date Fair | (Amounts in | Date Fair | (Amounts in | Date Fair | ||||||||
Thousands) | Value | Thousands) | Value | Thousands) | Value | ||||||||
Unvested restricted stock awards, beginning of | |||||||||||||
period | 70 | $ | 9.13 | 42 | $ | 4.8 | 21 | $ | 5.95 | ||||
Awarded | 36 | 22.75 | 63 | 9.61 | 44 | 4.48 | |||||||
Vested | (22 | ) | 10.34 | (32 | ) | 4.65 | (20 | ) | 5.14 | ||||
Forfeited | (5 | ) | 6.66 | (3 | ) | 5.32 | (3 | ) | 5.93 | ||||
Unvested restricted stock awards, end of period | 79 | $ | 15.16 | 70 | $ | 9.13 | 42 | $ | 4.8 | ||||
The fair market value of restricted stock awards that vested during the year ended December 31, 2014 was $598,000. | |||||||||||||
Restricted stock award compensation expense, for continuing and discontinued operations, totaled $325,000, $239,000 and $160,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Shares available under the 2006 Plan and the 2009 Plan were 564,000 and 826,000, respectively, as of December 31, 2014. The Company does not plan on issuing any further grants under the 2006 Plan. | |||||||||||||
Operating_Leases_And_Related_P
Operating Leases And Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2014 | |||
Operating Leases And Related Party Transactions [Abstract] | |||
Operating Leases And Related Party Transactions | 11. Operating Leases and Related Party Transactions | ||
The Company leases its branch office space under various operating leases that expire at various dates through 2024. In addition to rent, the Company is typically responsible for taxes, maintenance, insurance and common area costs. A number of the office leases also contain escalation and renewal option clauses. Total rent expense on these office leases was $2,707,000, $2,442,000 and $3,380,000 for continuing and discontinued operations for the years ended December 31, 2014, 2013, and 2012, respectively. In connection with the sale of the Home Health Business, the Company entered into subleases for all or a portion of 13 of the Companys leased properties and assigned nine leases to the purchasers. Assigned leases are not included in the schedule below. | |||
The Company entered into a 132 month lease with a third party for approximately 59,000 square feet of office space in Downers Grove, IL for its corporate headquarters. The Company assumed occupancy in May 2014. Rental expense relating to this lease amounted to $503,000 for the year ended December 31, 2014. Previously, the Company leased its corporate office space from a former member of its board of directors, who is also a stockholder of the Company. Under the terms of an operating lease that expired in June 2013; this lease agreement operated on a month to month basis through May 2014. Rental expense relating to this lease amounted to $200,000, $483,000 and $486,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
During 2011, the Company entered into a lease for its telecom system under a five year operating lease that expires in June 2016. Total expense on the telecom lease for continuing and discontinued operations was $366,000, $379,000 and $285,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
The following is a schedule of the future minimum payments, exclusive of taxes and other operating expenses, required under the Companys operating leases. The payments owed with respect to the subleased properties have been included from the table below because the Company remains liable for payments in the event that the sublessee does not make the required payment to the landlord. | |||
Rent | |||
(Amount in | |||
Thousands) | |||
2015 | $ | 3,528 | |
2016 | 2,915 | ||
2017 | 2,053 | ||
2018 | 1,555 | ||
2019 | 1,249 | ||
Thereafter | 5,584 | ||
Total | $ | 16,884 | |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity [Abstract] | |
Stockholder's Equity | 12. Stockholders Equity |
2009 Stock Incentive Plan | |
In September 2009, the Companys board of directors and stockholders adopted and approved the 2009 Plan. The 2009 Plan when established provided for the grant of 750,000 incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units, restricted stock units, other stock units and performance shares. In May 2013, the Companys Board of Directors and stockholders approved an increase in the number of incentive stock options to 1,500,000 which was approved by the stockholders at the 2013 Annual Meeting. | |
Segment_Data
Segment Data | 12 Months Ended |
Dec. 31, 2014 | |
Segment Data [Abstract] | |
Segment Data | 13. Segment Data |
The Company historically segregated its results into two distinct reporting segments: the home & community segment and the home health segment. As a result of the sale of the Home Health Business, the Company has reported the operating results for the Home Health Business in discontinued operations. Therefore, all of the Companys operations are reported as one operating segment. | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans |
The Companys 401(k) Retirement Plan covers all non-union employees. The 401(k) plan is a defined contribution plan that provides for matching contributions by the Company. Matching contributions are discretionary and subject to change by management. Under the provisions of the 401(k) plan, employees can contribute up to the maximum percentage and limits allowable under the Internal Revenue Code of 1986. The Company provided a matching contribution, equal to 6.0% of the employees contributions, totaling $30,000, $46,000 and $44,000 for continuing and discontinued operations for the year ended December 31, 2014, 2013, and 2012, respectively. | |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 15. Commitments and Contingencies |
Legal Proceedings | |
The Company is a party to legal and/or administrative proceedings arising in the ordinary course of its business. It is the opinion of management that the outcome of such proceedings will not have a material effect on the Companys financial position and results of operations. | |
Employment Agreements | |
The Company has entered into employment agreements with certain members of senior management. The terms of these agreements are up to four years and include non-compete and nondisclosure provisions, as well as provide for defined severance payments in the event of termination. | |
Significant_Payors
Significant Payors | 12 Months Ended |
Dec. 31, 2014 | |
Significant Payors [Abstract] | |
Significant Payors | 16. Significant Payors |
A substantial portion of the Companys net service revenues and accounts receivables are derived from services performed for federal, state and local governmental agencies. The Illinois Department on Aging accounted for 53.2%, 58.8% and 57.3% of the Companys net service revenues for 2014, 2013, and 2012, respectively. | |
The related receivables due from the Illinois Department on Aging represented 54.2% and 65.6% of the Companys accounts receivable at December 31, 2014 and 2013, respectively. | |
Concentration_Of_Cash
Concentration Of Cash | 12 Months Ended |
Dec. 31, 2014 | |
Concentration Of Cash [Abstract] | |
Concentration Of Cash | 17. Concentration of Cash |
Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash. The Company maintains cash with financial institutions which, at times, may exceed federally insured limits. The Company believes it is not exposed to any significant credit risk on cash. | |
Summarized_Quarterly_Financial
Summarized Quarterly Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Summarized Quarterly Financial Information [Abstract] | ||||||||||||||||||||
Summarized Quarterly Financial Information | 18. Unaudited Summarized Quarterly Financial Information | |||||||||||||||||||
The following is a summary of the Companys unaudited quarterly results of operations (amounts and shares in thousands, except per share data): | ||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||
Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | |||||||||||||
Net service revenues | $ | 82,636 | $ | 81,658 | $ | 76,965 | $ | 71,683 | $ | 69,882 | $ | 67,306 | $ | 65,755 | $ | 62,998 | ||||
Gross profit | 22,647 | 21,840 | 20,580 | 18,668 | 18,102 | 17,226 | 16,613 | 15,798 | ||||||||||||
Operating income from | ||||||||||||||||||||
continuing operations | 5,242 | 4,961 | 4,098 | 3,770 | 3,476 | 4,263 | 3,980 | 3,742 | ||||||||||||
Net income from continuing | ||||||||||||||||||||
operations | 3,643 | 3,237 | 2,729 | 2,354 | 3,124 | 2,770 | 2,582 | 2,687 | ||||||||||||
Earnings (loss) from | ||||||||||||||||||||
discontinued operations | 280 | (2,239 | ) | (203 | ) | (150 | ) | 10,574 | ||||||||||||
Net income | $ | 3,923 | $ | 3,237 | $ | 2,729 | $ | 2,354 | $ | 885 | $ | 2,567 | $ | 2,432 | $ | 13,261 | ||||
Average shares outstanding: | ||||||||||||||||||||
Basic | 10,929 | 10,927 | 10,903 | 10,850 | 10,838 | 10,787 | 10,785 | 10,778 | ||||||||||||
Diluted | 11,143 | 11,154 | 11,138 | 11,110 | 11,154 | 11,071 | 11,016 | 10,845 | ||||||||||||
Income (loss) per common | ||||||||||||||||||||
share: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.3 | $ | 0.25 | $ | 0.22 | $ | 0.29 | $ | 0.26 | $ | 0.24 | $ | 0.25 | ||||
Discontinued | ||||||||||||||||||||
operations | 0.03 | (0.21 | ) | (0.02 | ) | (0.01 | ) | 0.98 | ||||||||||||
Basic net income per share | $ | 0.36 | $ | 0.3 | $ | 0.25 | $ | 0.22 | $ | 0.08 | $ | 0.24 | $ | 0.23 | $ | 1.23 | ||||
Diluted net income per share | ||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.25 | $ | 0.21 | $ | 0.28 | $ | 0.25 | $ | 0.23 | $ | 0.25 | ||||
Discontinued operations | 0.02 | (0.20 | ) | (0.02 | ) | (0.01 | ) | 0.98 | ||||||||||||
Diluted net income per share | $ | 0.35 | $ | 0.29 | $ | 0.25 | $ | 0.21 | $ | 0.08 | $ | 0.23 | $ | 0.22 | $ | 1.23 | ||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Event |
Effective January 1, 2015, the Company acquired Priority Home Health Care, Inc. for approximately $4,250,000, in order to further expand the Companys presence in the State of Ohio. Priority Home Health Care, Inc. is a company headquartered in Cleveland, Ohio that operates six offices in the Cleveland, Akron and Columbus areas. The related acquisition costs were $421,000, and such costs were expensed as incurred and are included in the Companys results for 2014. | |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Valuation and Qualifying Accounts [Abstract] | |||||||
Valuation And Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS | ||||||
SCHEDULE II | |||||||
(Amounts In Thousands) | |||||||
Balance at | Balance at | ||||||
beginning | Additions/ | end of | |||||
Allowance for doubtful accounts | of period | charges | Deductions* | period | |||
Year ended December 31, 2014 | |||||||
Allowance for doubtful accounts | $ | 4,140 | 2,818 | 3,077 | $ | 3,881 | |
Year ended December 31, 2013 | |||||||
Allowance for doubtful accounts | $ | 4,466 | 3,020 | 3,346 | $ | 4,140 | |
Year ended December 31, 2012 | |||||||
Allowance for doubtful accounts | $ | 7,189 | 2,877 | 5,600 | $ | 4,466 | |
* Write-offs, net of recoveries | |||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary Of Significant Accounting Policies [Abstract] | ||
Basis Of Presentation And Description Of Business | Basis of Presentation and Description of Business | |
The consolidated financial statements include the accounts of Addus HomeCare Corporation ("Holdings") and its subsidiaries (together with Holdings, the "Company"). The Company is a provider of comprehensive home and community based services, which are provided primarily in the home, and focused on the dual eligible (Medicare/Medicaid) population. The Company's services include personal care and assistance with activities of daily living, and adult day care. The Company's consumers are primarily persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Company's payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. The Company currently provides home and community based services to over 31,000 consumers through 129 locations across 22 states, including 5 adult day centers in Illinois. | ||
Discontinued Operations | Discontinued Operations | |
On February 7, 2013, subsidiaries of Holdings entered into an Asset Purchase Agreement with LHC Group, Inc. and certain of its subsidiaries (the Home Health Purchase Agreement). Pursuant to the Home Health Purchase Agreement, effective March 1, 2013, the purchasers acquired substantially all the assets of the Companys home health business in Arkansas, Nevada and South Carolina and 90% of its home health business in California and Illinois, with the Company retaining 10% ownership in such locations, for cash consideration of $20,000,000. | ||
The Companys home health services were operated through licensed and Medicare certified offices that provided physical, occupational and speech therapy, as well as skilled nursing services to pediatric, adult infirm and elderly patients. Home health services were reimbursed from Medicare, Medicaid and Medicaid-waiver programs, commercial insurance and private payors (see note 2). | ||
Principles Of Consolidation | Principles of Consolidation | |
All intercompany balances and transactions have been eliminated in consolidation. The Companys investment in entities with less than 20% ownership or in which the Company does not have the ability to influence the operations of the investee are being accounted for using the cost method and are included in investments in joint ventures. | ||
Revenue Recognition | Revenue Recognition | |
The Company generates net service revenues by providing services directly to consumers. The Company receives payments for providing services from federal, state and local governmental agencies, commercial insurers and private consumers. The Companys continuing operations, which include the results of operations previously included in its home and community segment and agencies in three states previously included in its home health segment, are principally provided based on authorized hours, determined by the relevant agency, at an hourly rate specified in agreements or fixed by legislation and recognized as revenues at the time services are rendered. Home and community based service revenues are reimbursed by state, local and other governmental programs which are partially funded by Medicaid or Medicaid waiver programs, with the remainder reimbursed through private duty and insurance programs. | ||
Laws and regulations governing the Medicaid and Medicare programs are complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates may change in the near term. The Company believes that it is in compliance in all material respects with all applicable laws and regulations. | ||
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts | |
The Company establishes its allowance for doubtful accounts to the extent it is probable that a portion or all of a particular account will not be collected. The Company estimates its provision for doubtful accounts primarily by aging receivables utilizing eight aging categories and applying its historical collection rates to each aging category, taking into consideration factors that might impact the use of historical collection rates or payor groups, with certain large payors analyzed separately from other payor groups. In the Companys evaluation of these estimates, it also considers delays in payment trends in individual states due to budget or funding issues, billing conversions related to acquisitions or internal systems, resubmission of bills with required documentation and disputes with specific payors. An allowance for doubtful accounts is maintained at a level that the Companys management believes is sufficient to cover potential losses. However, actual collections could differ from the Companys estimates. | ||
Property And Equipment | Property and Equipment | |
Property and equipment are recorded at cost and depreciated over the estimated useful lives of the related assets by use of the straight-line method except for internally developed software which is amortized by the sum-of-years digits method. Maintenance and repairs are charged to expense as incurred. The estimated useful lives of the property and equipment are as follows: | ||
Computer equipment | 3 - 5 years | |
Furniture and equipment | 5 - 7 years | |
Transportation equipment | 5 years | |
Computer software | 5 - 10 years | |
Leasehold improvements | Lesser of useful life or lease term, unless probability of lease renewal is likely | |
Goodwill | Goodwill | |
The Companys carrying value of goodwill is the residual of the purchase price over the fair value of the net assets acquired from various acquisitions including the acquisition of Addus HealthCare, Inc. (Addus HealthCare). In accordance with ASC Topic 350, Goodwill and Other Intangible Assets, goodwill and intangible assets with indefinite useful lives are not amortized. The Company tests goodwill for impairment at the reporting unit level on an annual basis, as of October 1, or whenever potential impairment triggers occur, such as a significant change in business climate or regulatory changes that would indicate that an impairment may have occurred. The Company may use a qualitative test, known as Step 0, or a two-step quantitative method to determine whether impairment has occurred. In Step 0, the Company can elect to perform an optional qualitative analysis and based on the results skip the two step analysis. In 2014, 2013 and 2012, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. The results of the Companys Step 0 assessments indicated that it was more likely than not that the fair value of its reporting unit exceeded its carrying value and therefore the Company concluded that there was no impairments for the years ended December 31, 2014, 2013 or 2012. | ||
Intangible Assets | Intangible Assets | |
The Companys identifiable intangible assets consist of customer and referral relationships, trade names, trademarks, state licenses and non-compete agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from two to twenty-five years. | ||
Intangible assets with finite lives are amortized using the estimated economic benefit method over the useful life and assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company would recognize an impairment loss when the estimated future non-discounted cash flows associated with the intangible asset is less than the carrying value. An impairment change would then be recorded for the excess of the carrying value over the fair value. The Company estimates the fair value of these intangible assets using the income approach. No impairment charge was recorded for the years ended December 31, 2014, 2013 or 2012. | ||
The income approach, which the Company uses to estimate the fair value of its intangible assets (other than goodwill), is dependent on a number of factors including estimates of future market growth and trends, forecasted revenue and costs, expected periods the assets will be utilized, appropriate discount rates and other variables. The Company bases its fair value estimates on assumptions the Company believes to be reasonable but which are unpredictable and inherently uncertain. Actual future results may differ from those estimates. | ||
The Company also has indefinite-lived intangible assets that are not subject to amortization expense such as certificates of need and licenses to conduct specific operations within geographic markets. The Companys management has concluded that certificates of need and licenses have indefinite lives, as management has determined that there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets, and the Company intends to renew and operate the certificates of need and licenses indefinitely. The certificates of need and licenses are tested annually for impairment. No impairment was recorded for the years ended December 31, 2014, 2013 or 2012. | ||
Debt Issuance Costs | Debt Issuance Costs | |
The Company amortizes debt issuance costs on a straight-line method over the term of the related debt. This method approximates the effective interest method. | ||
Workers' Compensation Program | Workers Compensation Program | |
The Companys workers compensation program has a $350,000 deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The future claims payments related to the workers compensation program are secured by letters of credit. | ||
Interest Income | Interest Income | |
Legislation enacted in Illinois entitles designated service program providers to receive a prompt payment interest penalty based on qualifying services approved for payment that remain unpaid after a designated period of time. As the amount and timing of the receipt of these payments are not certain, the interest income is recognized when received and reported in the statement of operations as interest income. The Company received no prompt payment interest in 2014 and $185,000 and $155,000 in prompt payment interest in 2013 and 2012, respectively. While the Company may be owed additional prompt payment interest, the amount and timing of receipt of such payments remains uncertain and the Company has determined that it will continue to recognize prompt payment interest income when received. | ||
Interest Expense | Interest Expense | |
The Companys interest expense consists of interest costs on its credit facility, capital lease obligations and other debt instruments. | ||
Income Tax Expense | Income Tax Expenses | |
The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in its financial statements or tax returns. Deferred taxes, resulting from differences between the financial and tax basis of the Companys assets and liabilities, are also adjusted for changes in tax rates and tax laws when changes are enacted. ASC Topic 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. ASC Topic 740, also prescribes a recognition threshold and measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. In addition, ASC Topic 740 provides guidance on derecognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. | ||
Stock-Based Compensation | Stock-based Compensation | |
The Company has two stock incentive plans, the 2006 Stock Incentive Plan (the 2006 Plan) and the 2009 Stock Incentive Plan (the 2009 Plan) that provide for stock-based employee compensation. The Company accounts for stock-based compensation in accordance with ASC Topic 718, Stock Compensation . Compensation expense is recognized on a graded method under the 2006 Plan and on a straight-line basis under the 2009 Plan over the vesting period of the awards based on the fair value of the options and restricted stock awards. Under the 2006 Plan, the Company historically used the Black-Scholes option pricing model to estimate the fair value of its stock based payment awards, but beginning October 28, 2009 under its 2009 Plan it began using an enhanced Hull-White Trinomial model. The determination of the fair value of stock-based payments utilizing the Black-Scholes model and the Enhanced Hull-White Trinomial model is affected by Holdings stock price and a number of assumptions, including expected volatility, risk-free interest rate, expected term, expected dividends yield, expected forfeiture rate, expected turn-over rate and the expected exercise multiple. | ||
Net Income Per Common Share | Net Income Per Common Share | |
Net income per common share, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The Companys outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards. | ||
Included in the Companys calculation for the year ended December 31, 2014 were 684,000 stock options of which 146,000 were out-of-the money and 80,000 restricted stock awards with 14,000 included in the weighted diluted shares outstanding for 2014. | ||
Included in the Companys calculation for the year ended December 31, 2013 were 647,000 stock options of which none were out-of-the money and 96,000 restricted stock awards with 44,000 included in the weighted diluted shares outstanding for 2013. | ||
Included in the Companys calculation for the year ended December 31, 2012 were 596,000 stock options of which 501,000 were out-of-the money and therefore anti-dilutive and 57,000 restricted stock awards with 12,000 included in the weighted diluted shares outstanding for 2012. | ||
Estimates | Estimates | |
The financial statements are prepared by management in conformity with U.S. Generally Accepted Accounting Principles (GAAP) and include estimated amounts and certain disclosures based on assumptions about future events. Accordingly, actual results could differ from those estimates. | ||
Fair Value Of Financial Instruments | Fair Value of Financial Instruments | |
The Companys financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. The carrying value of the Companys long-term debt with variable interest rates approximates fair value based on instruments with similar terms. | ||
The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill and indefinite-lived intangible assets and also when determining the fair value of contingent considerations. To determine the fair value in these situations, the Company uses Level 3 inputs, such as discounted cash flows, or if available, what a market participant would pay on the measurement date. | ||
The Company utilizes the income approach to estimate the fair value of its intangible assets derived from acquisitions. In addition, discounted cash flows were used to estimate the fair value of the Companys investment in joint ventures. | ||
Recent Accounting Pronouncements | New Accounting Pronouncements | |
On April 10, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance changes the requirements for reporting a discontinued operation. Only a disposal representing a strategic shift that has a major effect on the entitys operations and financial results will have to be reported as a discontinued operation. Examples of strategic shifts meeting the new criteria include a disposal of a major geographical area, a major line of business, or a major equity-method investment. Under this new guidance, many disposals that might be routine and not a change in an entitys strategy no longer will be reported as discontinued operations. For each comparative period, an entitys statement of financial position must present separately the assets and liabilities of a disposal group qualifying as a discontinued operation. The ASU requires additional disclosures about the assets, liabilities, revenues, expenses, and cash flows of a discontinued operation. An entity also will be required to disclose the pretax income or loss attributable to a disposal of a significant component that does not qualify for discontinued operations presentation. ASU 2014-08 is effective for public companies for annual and interim periods beginning on or after December 15, 2014. | ||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | ||
Reclassification Of Prior Period Balances | Reclassification of Prior Period Balances | |
Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. Previously, the contingent earn-out obligation for the Coordinated Home Health Care, LLC acquisition described in Note 4 had been classified as an Accrued expense on the Company's Consolidated Balance Sheets. The Company revised the classification in the current year's report to Contingent earn-out obligation, less current portion, a long-term liability. In addition, in the current year's report, deferred revenue has been included in Accrued expenses. Previously, this amount was separately listed on the Consolidated Balance Sheets. | ||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Discontinued Operations [Abstract] | |||||||||
Schedule Of Income Loss From Discontinued Operations | |||||||||
2014 | 2013 | 2012 | |||||||
(Amounts in Thousands) | |||||||||
Net service revenues | $ | $ | 6,462 | $ | 38,822 | ||||
Income (loss) before income taxes | 470 | (1,672 | ) | (2,752 | ) | ||||
Income tax expense (benefit) | 190 | (692 | ) | (1,099 | ) | ||||
Earnings (loss) from discontinued operations | $ | 280 | $ | (980 | ) | $ | (1,653 | ) | |
Schedule Of Gain On Sale Of Discontinued Operation | |||||||||
Gain | |||||||||
(Amounts in | |||||||||
Thousands) | |||||||||
Gain before income taxes | $ | 15,284 | |||||||
Income tax expense | (6,322 | ) | |||||||
8,962 |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Acquisition [Line Items] | |||||
Schedule Of Purchase Price Components | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Cash | $ | 11,725 | |||
Contingent earn-out obligation | 1,100 | ||||
Total purchase price | $ | 12,825 | |||
Schedule Of Purchase Price Allocation | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Goodwill | $ | 9,488 | |||
Identifiable intangible assets | 3,300 | ||||
Accounts receivable | 888 | ||||
Prepaid expenses | 35 | ||||
Furniture, fixtures and equipment | 58 | ||||
Deposits | 15 | ||||
Accounts payable | (81 | ) | |||
Accrued liabilities | (864 | ) | |||
Other liabilities | (14 | ) | |||
Total purchase price allocation | $ | 12,825 | |||
Coordinated Home Health Care, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Schedule Of Business Acquisition Pro Forma Consolidated Income Statement Information | |||||
For The Year Ended December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Net service revenues | $ | 318,352 | $ | 298,395 | |
Operating income from continuing operations | 18,080 | 15,890 | |||
Net income from continuing operations | 12,022 | 10,050 | |||
Earnings from discontinued operations | 280 | 7,982 | |||
Net income | $ | 12,302 | $ | 18,032 | |
Net income per common share | |||||
Basic income per share | |||||
Continuing operations | $ | 1.05 | $ | 0.99 | |
Discontinued operations | 0.02 | 0.74 | |||
Basic income per share | $ | 1.07 | $ | 1.72 | |
Diluted income per share | |||||
Continuing operations | $ | 1.03 | $ | 0.96 | |
Discontinued operations | 0.02 | 0.72 | |||
Diluted income per share | $ | 1.05 | $ | 1.68 | |
Cura Partners, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Schedule Of Purchase Price Components | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Cash | $ | 7,172 | |||
Contingent earn-out obligation | 1,020 | ||||
Total purchase price | $ | 8,192 | |||
Schedule Of Purchase Price Allocation | |||||
Total | |||||
(Amounts in | |||||
Thousands) | |||||
Goodwill | $ | 4,317 | |||
Identifiable intangible assets | 3,950 | ||||
Accounts receivable (net) | 521 | ||||
Furniture, fixtures and equipment | 65 | ||||
Other current assets | 60 | ||||
Accrued liabilities | (553 | ) | |||
Accounts payable | (168 | ) | |||
Total purchase price allocation | $ | 8,192 |
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property And Equipment [Abstract] | |||||||
Schedule Of Property And Equipment | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in Thousands) | |||||||
Computer equipment | $ | 2,537 | $ | 2,110 | |||
Furniture and equipment | 2,224 | 1,099 | |||||
Transportation equipment | 673 | 588 | |||||
Leasehold improvements | 4,609 | 1,628 | |||||
Computer software | 5,105 | 3,749 | |||||
15,148 | 9,174 | ||||||
Less accumulated depreciation and amortization | (7,453 | ) | (6,540 | ) | |||
$ | 7,695 | $ | 2,634 |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Goodwill And Intangible Assets [Abstract] | |||||||||||||||
Changes In Goodwill By Segment | |||||||||||||||
Goodwill | |||||||||||||||
(Amounts in | |||||||||||||||
Thousands) | |||||||||||||||
Goodwill, at December 31, 2012 | $ | 50,536 | |||||||||||||
Additions for acquisitions | 9,650 | ||||||||||||||
Adjustments to previously recorded goodwill | (160 | ) | |||||||||||||
Goodwill, at December 31, 2013 | $ | 60,026 | |||||||||||||
Additions for acquisitions | 4,317 | ||||||||||||||
Adjustments to previously recorded goodwill | (123 | ) | |||||||||||||
Goodwill, at December 31, 2014 | $ | 64,220 | |||||||||||||
Schedule Of Carrying Amount And Accumulated Amortization Of Intangible Asset | |||||||||||||||
Customer | Trade | ||||||||||||||
and referral | names and | State | Non-competition | ||||||||||||
relationships | trademarks | Licenses | agreements | Total | |||||||||||
(Amounts in Thousands) | |||||||||||||||
Gross balance at January 1, 2013 | $ | 24,908 | $ | 4,081 | $ | 150 | $ | 408 | $ | 29,547 | |||||
Additions for acquisitions | 1,438 | 1,200 | 1,100 | 3,738 | |||||||||||
Accumulated amortization | (21,138 | ) | (2,995 | ) | (390 | ) | (24,523 | ) | |||||||
Net Balance at December 31, 2013 | 5,208 | 2,286 | 150 | 1,118 | 8,762 | ||||||||||
Gross balance at January 1, 2014 | 26,346 | 5,281 | 150 | 1,508 | 33,285 | ||||||||||
Additions | 50 | 50 | |||||||||||||
Additions for acquisitions | 1,500 | 1,900 | 550 | 3,950 | |||||||||||
Accumulated amortization | (22,497 | ) | (3,619 | ) | (822 | ) | (26,938 | ) | |||||||
Net Balance at December 31, 2014 | $ | 5,399 | $ | 3,562 | $ | 150 | $ | 1,236 | $ | 10,347 | |||||
Schedule Of Future Amortization Of Intangible Assets | |||||||||||||||
Total | |||||||||||||||
(Amount in | |||||||||||||||
For the year ended December 31, | Thousands) | ||||||||||||||
2015 | $ | 2,561 | |||||||||||||
2016 | 2,396 | ||||||||||||||
2017 | 1,897 | ||||||||||||||
2018 | 1,771 | ||||||||||||||
2019 | 808 | ||||||||||||||
Thereafter | 764 | ||||||||||||||
Total | $ | 10,197 |
Details_Of_Certain_Balance_She1
Details Of Certain Balance Sheet Accounts (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Details Of Certain Balance Sheet Accounts [Abstract] | |||||
Schedule Of Prepaid Expenses And Other Current Assets | |||||
December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Prepaid health insurance | $ | 2,762 | $ | 3,192 | |
Prepaid workers compensation and liability insurance | 1,326 | 1,173 | |||
Prepaid rent | 595 | 455 | |||
Workers compensation insurance receivable | 1,457 | 821 | |||
Other | 1,028 | 594 | |||
$ | 7,168 | $ | 6,235 | ||
Schedule Of Accrued Expenses | |||||
December 31, | |||||
2014 | 2013 | ||||
(Amounts in Thousands) | |||||
Accrued payroll | $ | 12,703 | $ | 12,932 | |
Accrued workers compensation insurance | 14,081 | 13,347 | |||
Accrued health insurance (3) | 3,540 | 3,731 | |||
Indemnification reserve (1) | 1,263 | 3,224 | |||
Accrued payroll taxes | 3,287 | 1,755 | |||
Accrued professional fees | 1,500 | 1,319 | |||
Amounts due to LHCG (2) | 2,196 | ||||
Other | 894 | 2,400 | |||
$ | 37,268 | $ | 40,904 | ||
(1) As a condition of the sale of the Home Health Business to subsidiaries of LHC Group. Inc. (LHCG) the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. In connection with an internal evaluation of the Companys billing processes, it discovered documentation errors in a number of claims that it had submitted to Medicare. Consistent with applicable law, the Company voluntarily remitted $1,840,000 to the government in March 2014. The Company, using its best judgment, has estimated a total of $1,263,000 for billing adjustments remaining. | |||||
(2) Amounts due to LHCG pursuant to a billing services arrangement between the Company and LHCG. | |||||
(3) The Company provides health insurance coverage to qualified union employees providing home and community based services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Companys insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State. Amounts due of $2,404,000 and $3,163,000 for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2014 and 2013, respectively. | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Long-Term Debt [Abstract] | ||||
Schedule Of Property Under Capital Leases | ||||
Asset Balances at | ||||
31-Dec-14 | ||||
Classes of Property | (Amounts in Thousands) | |||
Leasehold Improvements | $ | 2,928 | ||
Furniture & Equipment | 526 | |||
Computer Equipment | 431 | |||
Computer Software | 147 | |||
Less: Accumulated Depreciation | (239 | ) | ||
$ | 3,793 | |||
Schedule Of Future Minimum Payments For Capital Leases | ||||
Capital Lease | ||||
(Amounts In Thousands) | ||||
2015 | $ | 1,105 | ||
2016 | 1,105 | |||
2017 | 1,105 | |||
2018 | 629 | |||
Total minimum lease payments | 3,944 | |||
Less: amount representing estimated executory costs (such as taxes, | ||||
maintenance and insurance), including profit thereon, included in total | ||||
minimum lease payments | (68 | ) | ||
Net minimum lease payments | 3,876 | |||
Less: amount representing interest (1) | (213 | ) | ||
Present value of net minimum lease payments (2) | $ | 3,663 | ||
(1) Amount necessary to reduce net minimum lease payments to present value calculated at the Companys incremental borrowing rate at lease inception. | ||||
(2) Reflected in the balance sheet as current and noncurrent obligations under capital leases of $986,000 and $2,677,000, respectively. | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Tax Expense By Jurisdiction | |||||||
December 31, | |||||||
2014 | 2013 | 2012 | |||||
(Amounts in Thousands) | |||||||
Current | |||||||
Federal | $ | 2,231 | $ | 2,926 | $ | 3,745 | |
State | 976 | 435 | 792 | ||||
Deferred | |||||||
Federal | 1,915 | 393 | 196 | ||||
State | 306 | 58 | 74 | ||||
Provision for income taxes | $ | 5,428 | $ | 3,812 | $ | 4,807 | |
Deferred Tax Assets And Liabilities | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in Thousands) | |||||||
Deferred tax assets | |||||||
Current | |||||||
Accounts receivable allowances | $ | 1,568 | $ | 1,664 | |||
Accrued compensation | 1,365 | 849 | |||||
Accrued workers compensation | 5,099 | 5,365 | |||||
Other | 899 | 923 | |||||
Total current deferred tax assets | 8,931 | 8,801 | |||||
Deferred tax liabilities | |||||||
Current | |||||||
Prepaid insurance | (423 | ) | (475 | ) | |||
Net deferred tax assets-current | 8,508 | 8,326 | |||||
Deferred tax assets | |||||||
Long-term | |||||||
Transaction costs | 612 | ||||||
Property and equipment | (394 | ) | 52 | ||||
Reserves | 510 | 1,295 | |||||
Stock-based compensation | 713 | 861 | |||||
Other | (218 | ) | |||||
Total long-term deferred tax assets | 1,223 | 2,208 | |||||
Deferred tax liability | |||||||
Long-term | |||||||
Goodwill and intangible assets | (7,068 | ) | (5,649 | ) | |||
Total long-term deferred tax liabilities | (5,845 | ) | (3,441 | ) | |||
Total net deferred tax assets | $ | 2,663 | $ | 4,885 | |||
Reconciliation Of Effective Tax Rate | |||||||
December 31, | |||||||
2014 | 2013 | 2012 | |||||
Federal income tax at statutory rate | 34.5 | % | 35 | % | 34 | % | |
State and local taxes, net of federal benefit | 5.9 | 5.2 | 5.9 | ||||
Jobs tax credits, net (1) | (9.9 | ) | (6.8 | ) | (7.5 | ) | |
Nondeductible meals and entertainment | 0.5 | 0.4 | (0.8 | ) | |||
Other | 0.2 | (8.3 | ) | 2.5 | |||
Effective income tax rate | 31.2 | % | 25.5 | % | 34.1 | % | |
(1) Included in the jobs tax credit for the year ended December 31, 2012 was a one-time benefit of a 2.4% reduction from the Companys statutory tax rate for the jobs tax credits earned in 2012 but not recorded until 2013. The federal employment opportunity tax credits were reinstated in 2013 and were not an allowable deduction in 2012. | |||||||
Changes In Unrecognized Tax Benefits | |||||||
Unrecognized | |||||||
Tax Benefits | |||||||
(Amounts in | |||||||
Thousands) | |||||||
Balance at December 31, 2012 | $ | 115 | |||||
Increases related to current year tax positions | |||||||
Balance at December 31, 2013 | $ | 115 | |||||
Increases related to current year tax positions | |||||||
Balance at December 31, 2014 | $ | 115 |
Stock_Options_And_Restricted_S1
Stock Options And Restricted Stock Awards (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stock Options And Restricted Stock Awards [Abstract] | |||||||||||||
Summary Of Stock Option Activity | |||||||||||||
For The Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted | Weighted | Weighted | |||||||||||
Options | Average | Options | Average | Options | Average | ||||||||
(Amounts in | Exercise | (Amounts | Exercise | (Amounts | Exercise | ||||||||
Thousands) | Price | in Thousands) | Price | in Thousands) | Price | ||||||||
Outstanding, beginning of period | 647 | $ | 8.8 | 596 | $ | 8.11 | 775 | $ | 7.69 | ||||
Granted | 121 | 22.97 | 177 | 10.93 | 36 | 4.49 | |||||||
Exercised | (66 | ) | 6.9 | (94 | ) | 9.09 | (5 | ) | 4.53 | ||||
Forfeited/Cancelled | (18 | ) | 9.26 | (32 | ) | 7.89 | (209 | ) | 6.02 | ||||
Outstanding, end of period | 684 | $ | 11.43 | 647 | $ | 8.8 | 596 | $ | 8.11 | ||||
Stock Option Awards | |||||||||||||
Outstanding | Exercisable | ||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Remaining | Weighted | Remaining | Weighted | ||||||||||
Contractual | Average | Contractual | Average | ||||||||||
Life in | Exercise | Life in | Exercise | ||||||||||
Exercise Price | Options | Years | Price | Options | Years | Price | |||||||
$4.06-$5.93 | 113,000 | 6.5 | $ | 4.73 | 78,000 | 6.4 | $ | 4.92 | |||||
$8.91-$23.22 | 571,370 | 5.7 | 12.76 | 324,619 | 3.3 | 9.56 | |||||||
684,370 | $ | 11.43 | 402,619 | $ | 8.66 | ||||||||
Option Pricing Assumptions | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Grants | Grants | Grants | |||||||||||
Weighted average fair value | $ | 10.69 | $ | 5.14 | $ | 2.09 | |||||||
Risk-free discount rate | 2.12% - 2.73% | 2.07% - 2.96% | 1.59% - 1.95% | ||||||||||
Expected life | 7.70 - 8.20 years | 6.00 - 6.25 years | 6.00 - 6.50 years | ||||||||||
Dividend yield | - | - | - | ||||||||||
Volatility | 47% | 47% | 42% 51% | ||||||||||
Expected turn-over rate | 5% | 5% | 5% | ||||||||||
Expected exercise multiple | 2.2 | 2.2 | 2.2 | ||||||||||
Summary Of Vested And Unvested RSU | |||||||||||||
For The Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted | Weighted | Restricted | Weighted | Restricted | Weighted | ||||||||
Stock | Average | Stock | Average | Stock | Average | ||||||||
Awards | Grant | Awards | Grant | Awards | Grant | ||||||||
(Amounts in | Date Fair | (Amounts in | Date Fair | (Amounts in | Date Fair | ||||||||
Thousands) | Value | Thousands) | Value | Thousands) | Value | ||||||||
Unvested restricted stock awards, beginning of | |||||||||||||
period | 70 | $ | 9.13 | 42 | $ | 4.8 | 21 | $ | 5.95 | ||||
Awarded | 36 | 22.75 | 63 | 9.61 | 44 | 4.48 | |||||||
Vested | (22 | ) | 10.34 | (32 | ) | 4.65 | (20 | ) | 5.14 | ||||
Forfeited | (5 | ) | 6.66 | (3 | ) | 5.32 | (3 | ) | 5.93 | ||||
Unvested restricted stock awards, end of period | 79 | $ | 15.16 | 70 | $ | 9.13 | 42 | $ | 4.8 |
Operating_Leases_And_Related_P1
Operating Leases And Related Party Transactions (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Operating Leases And Related Party Transactions [Abstract] | |||
Schedule Of Future Minimum Payments | |||
Rent | |||
(Amount in | |||
Thousands) | |||
2015 | $ | 3,528 | |
2016 | 2,915 | ||
2017 | 2,053 | ||
2018 | 1,555 | ||
2019 | 1,249 | ||
Thereafter | 5,584 | ||
Total | $ | 16,884 |
Summarized_Quarterly_Financial1
Summarized Quarterly Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Summarized Quarterly Financial Information [Abstract] | ||||||||||||||||||||
Schedule Of Quarterly Results Of Operations | ||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||
Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | |||||||||||||
Net service revenues | $ | 82,636 | $ | 81,658 | $ | 76,965 | $ | 71,683 | $ | 69,882 | $ | 67,306 | $ | 65,755 | $ | 62,998 | ||||
Gross profit | 22,647 | 21,840 | 20,580 | 18,668 | 18,102 | 17,226 | 16,613 | 15,798 | ||||||||||||
Operating income from | ||||||||||||||||||||
continuing operations | 5,242 | 4,961 | 4,098 | 3,770 | 3,476 | 4,263 | 3,980 | 3,742 | ||||||||||||
Net income from continuing | ||||||||||||||||||||
operations | 3,643 | 3,237 | 2,729 | 2,354 | 3,124 | 2,770 | 2,582 | 2,687 | ||||||||||||
Earnings (loss) from | ||||||||||||||||||||
discontinued operations | 280 | (2,239 | ) | (203 | ) | (150 | ) | 10,574 | ||||||||||||
Net income | $ | 3,923 | $ | 3,237 | $ | 2,729 | $ | 2,354 | $ | 885 | $ | 2,567 | $ | 2,432 | $ | 13,261 | ||||
Average shares outstanding: | ||||||||||||||||||||
Basic | 10,929 | 10,927 | 10,903 | 10,850 | 10,838 | 10,787 | 10,785 | 10,778 | ||||||||||||
Diluted | 11,143 | 11,154 | 11,138 | 11,110 | 11,154 | 11,071 | 11,016 | 10,845 | ||||||||||||
Income (loss) per common | ||||||||||||||||||||
share: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.3 | $ | 0.25 | $ | 0.22 | $ | 0.29 | $ | 0.26 | $ | 0.24 | $ | 0.25 | ||||
Discontinued | ||||||||||||||||||||
operations | 0.03 | (0.21 | ) | (0.02 | ) | (0.01 | ) | 0.98 | ||||||||||||
Basic net income per share | $ | 0.36 | $ | 0.3 | $ | 0.25 | $ | 0.22 | $ | 0.08 | $ | 0.24 | $ | 0.23 | $ | 1.23 | ||||
Diluted net income per share | ||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.25 | $ | 0.21 | $ | 0.28 | $ | 0.25 | $ | 0.23 | $ | 0.25 | ||||
Discontinued operations | 0.02 | (0.20 | ) | (0.02 | ) | (0.01 | ) | 0.98 | ||||||||||||
Diluted net income per share | $ | 0.35 | $ | 0.29 | $ | 0.25 | $ | 0.21 | $ | 0.08 | $ | 0.23 | $ | 0.22 | $ | 1.23 |
Significant_Accounting_Policie
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 07, 2013 |
item | item | |||
state | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Acquisitions of businesses | $7,172 | $12,325 | ||
Number of states in which the company operates | 22 | |||
Number of consumers | 31,000 | |||
Number of locations | 129 | |||
Number of adult day centers | 5 | |||
Maximum length of care | 60 days | |||
Allowances for doubtful accounts, number of aging categories | 8 | |||
Impairment charges | 0 | 0 | 0 | |
Deductible component of workers' compensation | 350 | |||
Interest income received | 0 | 185 | 155 | |
Number of stock options included in calculation | 684 | 647 | 596 | |
Anti-dilutive shares | 146 | 501 | ||
Shares of restricted stock awards | 80 | 96 | 57 | |
Number of dilutive shares of outstanding stock options and restricted stock awards | 14 | 44 | 12 | |
Number of stock incentive plans | 2 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful lives | 2 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful lives | 25 years | |||
Home Health Segment [Member] | LHC Group, Inc. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of segment sold | 90.00% | |||
Ownership percentage | 10.00% | |||
Acquisitions of businesses | $20,000 |
Significant_Accounting_Policie1
Significant Accounting Policies (Schedule Of Property, Plant And Equipment Useful Life) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Minimum [Member] | Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | 3 years |
Minimum [Member] | Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Minimum [Member] | Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Maximum [Member] | Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 5 years | 5 years |
Maximum [Member] | Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 7 years | 7 years |
Maximum [Member] | Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 10 years | 10 years |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 07, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Acquisitions of businesses | $7,172,000 | $12,325,000 | |
Home Health Segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts receivable, net | 625,000 | ||
Home Health Segment [Member] | LHC Group, Inc. [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of segment sold | 90.00% | ||
Ownership percentage | 10.00% | ||
Acquisitions of businesses | 20,000,000 | ||
Cash consideration for sale of asset by agreement | $20,000,000 |
Discontinued_Operations_Schedu
Discontinued Operations (Schedule Of Income Loss From Discontinued Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Earnings (loss) from discontinued operations | $280 | ($980) | ($1,653) |
Home Health Segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net service revenues | 6,462 | 38,822 | |
Income (loss) before income taxes | 470 | -1,672 | -2,752 |
Income tax expense (benefit) | 190 | -692 | -1,099 |
Earnings (loss) from discontinued operations | $280 | ($980) | ($1,653) |
Discontinued_Operations_Schedu1
Discontinued Operations (Schedule Of Gain On Sale Of Discontinued Operation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net income from discontinued operations | $280 | ($2,239) | ($203) | ($150) | $10,574 | $8,962 |
Home Health Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain before income taxes | 15,284 | |||||
Income tax benefit | -6,322 | |||||
Net income from discontinued operations | $8,962 |
Sale_Of_Agency_Details
Sale Of Agency (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 29, 2012 | Dec. 31, 2012 |
Sale Of Agency [Abstract] | ||
Gross proceeds from sale of agency | $525 | |
Net proceeds from sale of agency | 495 | 495 |
Pre-tax gain on sale of agency | $495 | $495 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 01, 2014 |
Business Acquisition [Line Items] | ||||||||||||
Acquisitions of businesses | $7,172 | $12,325 | ||||||||||
Current portion of contingent earn-out obligation | 1,000 | 1,000 | ||||||||||
Contingent earn-out obligation, less current portion | 1,120 | 1,100 | 1,120 | 1,100 | ||||||||
Acquisition costs | 735 | 735 | ||||||||||
Net service revenues | 82,636 | 81,658 | 76,965 | 71,683 | 69,882 | 67,306 | 65,755 | 62,998 | 312,942 | 265,941 | 244,315 | |
Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Potential future consideration | 2,250 | |||||||||||
Cura Partners, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisitions of businesses | 7,172 | |||||||||||
Business acquisition, contingent earn-out obligation | 1,020 | 1,020 | ||||||||||
Business acquisition, contingent earn-out obligation, present value | 1,168 | 1,168 | ||||||||||
Contingent earn-out obligation, less current portion | 200 | 200 | ||||||||||
Total purchase price for business acquisition | 8,192 | |||||||||||
Acquisition costs | 508 | |||||||||||
Net service revenues | 7,536 | |||||||||||
Coordinated Home Health Care, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisitions of businesses | 11,725 | |||||||||||
Business acquisition, contingent earn-out obligation | 1,100 | |||||||||||
Business acquisition, contingent earn-out obligation, present value | 2,250 | 2,250 | ||||||||||
Current portion of contingent earn-out obligation | 1,000 | 1,000 | ||||||||||
Contingent earn-out obligation, less current portion | 920 | 920 | ||||||||||
Total purchase price for business acquisition | 12,825 | |||||||||||
Number of Offices | 16 | |||||||||||
Net service revenues | $21,945 | $1,692 | ||||||||||
South Carolina [Member] | Medical Services of America, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Agencies Acquired | 2 | |||||||||||
Tennessee [Member] | Medical Services of America, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Agencies Acquired | 4 | |||||||||||
Ohio [Member] | Medical Services of America, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of Agencies Acquired | 2 |
Acquisitions_Schedule_Of_Purch
Acquisitions (Schedule Of Purchase Price Components) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 01, 2014 |
Business Acquisition [Line Items] | |||
Cash | $7,172 | $12,325 | |
Coordinated Home Health Care, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 11,725 | ||
Contingent earn-out obligation (net of discount) | 1,100 | ||
Total purchase price | 12,825 | ||
Cura Partners, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 7,172 | ||
Contingent earn-out obligation (net of discount) | 1,020 | 1,020 | |
Total purchase price | $8,192 |
Acquisitions_Schedule_Of_Purch1
Acquisitions (Schedule Of Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 01, 2014 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $64,220 | $60,026 | $50,536 | |
Cura Partners, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 4,317 | |||
Identifiable intangible assets | 3,950 | |||
Accounts receivable (net) | 521 | |||
Furniture, fixtures and equipment | 65 | |||
Other current assets | 60 | |||
Accrued liabilities | -553 | |||
Accounts payable | -168 | |||
Total purchase price allocation | 8,192 | |||
Coordinated Home Health Care, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 9,488 | |||
Identifiable intangible assets | 3,300 | |||
Accounts receivable (net) | 888 | |||
Prepaid expenses | 35 | |||
Furniture, fixtures and equipment | 58 | |||
Deposits | 15 | |||
Accrued liabilities | -81 | |||
Accounts payable | -864 | |||
Other liabilities | -14 | |||
Total purchase price allocation | $12,825 |
Acquisitions_Schedule_Of_Busin
Acquisitions (Schedule Of Business Acquisition Pro Forma Consolidated Income Statement Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Acquisitions [Abstract] | ||
Net service revenues | $318,352 | $298,395 |
Operating income from continuing operations | 18,080 | 15,890 |
Net income from continuing operations, net of tax | 12,022 | 10,050 |
Earnings from discontinued operations | 280 | 7,982 |
Net income | $12,302 | $18,032 |
Basic income per share, Continuing Operations | $1.05 | $0.99 |
Basic income per share, Discontinued Operations | $0.02 | $0.74 |
Basic income per share | $1.07 | $1.72 |
Diluted income per share, Continuing Operations | $1.03 | $0.96 |
Diluted income per share, Discontinued Operations | $0.02 | $0.72 |
Diluted income per share | $1.05 | $1.68 |
Property_And_Equipment_Narrati
Property And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $15,148 | $9,174 | |
Depreciation and amortization | 3,830 | 2,160 | 2,521 |
Internally Developed Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 3,109 | ||
Computer Equipment And Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $1,416 | $814 | $870 |
Property_And_Equipment_Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $15,148 | $9,174 |
Less accumulated depreciation and amortization | -7,453 | -6,540 |
Property and equipment, total | 7,695 | 2,634 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,537 | 2,110 |
Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,224 | 1,099 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 673 | 588 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,609 | 1,628 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $5,105 | $3,749 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Goodwill | $64,220 | $60,026 | $50,536 |
Amortization expense | 2,414 | 1,346 | 1,674 |
Minimum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful lives | 2 years | ||
Maximum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful lives | 25 years | ||
Continuing Operations [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $64,220 | $60,026 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Changes In Goodwill By Segment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, at Beginning of Period | $60,026 | $50,536 |
Additions for Acquisitions | 4,317 | 9,650 |
Adjustments to previously recorded goodwill | -123 | -160 |
Goodwill, at End of Period | 64,220 | 60,026 |
Continuing Operations [Member] | ||
Goodwill [Line Items] | ||
Goodwill, at End of Period | $64,220 | $60,026 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Schedule Of Carrying Amount And Accumulated Amortization Of Intangible Asset) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | $33,285 | $29,547 |
Additions | 50 | |
Additions for acquisitions | 3,950 | 3,738 |
Accumulated amortization | -26,938 | -24,523 |
Net Balance | 10,347 | 8,762 |
Customer And Referral Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 26,346 | 24,908 |
Additions | 50 | |
Additions for acquisitions | 1,500 | 1,438 |
Accumulated amortization | -22,497 | -21,138 |
Net Balance | 5,399 | 5,208 |
Trade Names And Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 5,281 | 4,081 |
Additions for acquisitions | 1,900 | 1,200 |
Accumulated amortization | -3,619 | -2,995 |
Net Balance | 3,562 | 2,286 |
State Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 150 | 150 |
Net Balance | 150 | 150 |
Non-competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 1,508 | 408 |
Additions for acquisitions | 550 | 1,100 |
Accumulated amortization | -822 | -390 |
Net Balance | $1,236 | $1,118 |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Schedule Of Future Amortization Of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Impairment of Intangible Assets (Excluding Goodwill) [Abstract] | |
2015 | $2,561 |
2016 | 2,396 |
2017 | 1,897 |
2018 | 1,771 |
2019 | 808 |
Thereafter | 764 |
Total | $10,197 |
Details_Of_Certain_Balance_She2
Details Of Certain Balance Sheet Accounts (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Details Of Certain Balance Sheet Accounts [Abstract] | |||
Deductible component of workers compensation program | $350 | ||
Letters of credit secure compensation program | 15,464 | 12,411 | 7,410 |
Cash escrow and deposit | 841 | ||
Loss reserve associated with compensation policies | $779 | $604 |
Details_Of_Certain_Balance_She3
Details Of Certain Balance Sheet Accounts (Schedule Of Prepaid Expenses And Other Current Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details Of Certain Balance Sheet Accounts [Abstract] | ||
Prepaid health insurance | $2,762 | $3,192 |
Prepaid workers' compensation and liability insurance | 1,326 | 1,173 |
Prepaid rent | 595 | 455 |
Workers' compensation insurance receivable | 1,457 | 821 |
Other | 1,028 | 594 |
Prepaid expenses and other current assets | $7,168 | $6,235 |
Details_Of_Certain_Balance_She4
Details Of Certain Balance Sheet Accounts (Schedule Of Accrued Expenses) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | ||
Details Of Certain Balance Sheet Accounts [Abstract] | |||||
Accrued payroll | $12,932 | $12,703 | |||
Accrued workers' compensation insurance | 13,347 | 14,081 | |||
Accrued health insurance | 3,731 | [1] | 3,540 | [1] | |
Indemnification reserve | 3,224 | [2] | 1,263 | [2] | |
Accrued payroll taxes | 1,755 | 3,287 | |||
Accrued professional fees | 1,319 | 1,500 | |||
Amounts due to LHCG | 2,196 | [3] | |||
Other | 2,400 | 894 | |||
Accrued expenses | 40,904 | 37,268 | |||
Maximum exposure to liability | 1,263 | ||||
Remittance payment | 1,840 | ||||
Contributions due after fund received, period | 5 days | ||||
Health insurance reimbursement and contribution due | $3,163 | $2,404 | |||
[1] | The Company provides health insurance coverage to qualified union employees providing home and community based services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Companys insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State. Amounts due of $2,404,000 and $3,163,000 for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2014 and 2013, respectively. | ||||
[2] | As a condition of the sale of the Home Health Business to subsidiaries of LHC Group. Inc. (LHCG) the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. In connection with an internal evaluation of the Companys billing processes, it discovered documentation errors in a number of claims that it had submitted to Medicare. Consistent with applicable law, the Company voluntarily remitted $1,840,000 to the government in March 2014. The Company, using its best judgment, has estimated a total of $1,263,000 for billing adjustments remaining. | ||||
[3] | Amounts due to LHCG pursuant to a billing services arrangement between the Company and LHCG. |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Share data in Thousands, unless otherwise specified | Sep. 11, 2014 | Jul. 12, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 02, 2009 | Aug. 11, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
item | ||||||||
Debt Instrument [Line Items] | ||||||||
Capital lease term | 48 months | 48 months | ||||||
Capital lease agreement | $1,428,000 | $2,650,000 | ||||||
Maximum aggregate amount of revolving loans available | 55,000,000 | |||||||
Sublimit for issuance of letters of credit | 27,500,000 | |||||||
Maximum number of acquisitions in a year | 3 | |||||||
Maximum single acquisition price | 2,000,000 | |||||||
Dividends payable | 7,819,000 | |||||||
Revolving Credit Loan [Member] | Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum aggregate amount of revolving loans available | 55,000,000 | |||||||
Specified advance multiple used to determine funds availability under credit facility | 3.25 | |||||||
Allowed capital expenditures | 5,000,000 | |||||||
Fee charged on unused portion of revolving credit facility | 0.50% | |||||||
Total availability under the revolving credit loan facility | 39,536,000 | 42,279,000 | ||||||
Revolving Credit Loan [Member] | Amended Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Allowed capital expenditures | 7,000,000 | |||||||
Subordinated Dividend Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | 30-Sep-11 | |||||||
Interest rate | 10.00% | |||||||
Annual principal payments | 3,351,000 | 4,468,000 | ||||||
Mandatory payment of dividend note | 4,000,000 | |||||||
Number of consecutive quarterly installments to pay dividends | 8 | |||||||
Subordinated Dividend Notes [Member] | Series A Preferred Stock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock shares issued for conversion | 4,077 | |||||||
Stock conversion ratio | 108 | |||||||
Dividends payable | 13,109,000 | |||||||
Payments of dividends | 173,000 | |||||||
Unpaid dividends | 12,936,000 | |||||||
Amended Subordinated Dividend Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | 31-Dec-12 | |||||||
Annual principal payments | $4,069,000 | $2,500,000 | $1,250,000 | |||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.00% | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.30% | |||||||
Letters of Credit [Member] | Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.00% | |||||||
One Month LIBOR [Member] | Revolving Credit Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.50% | |||||||
One Month LIBOR [Member] | Revolving Credit Loan [Member] | Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 4.60% | |||||||
One Month LIBOR [Member] | Revolving Credit Loan [Member] | Amended Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.50% | |||||||
One, Two, Three Month LIBOR [Member] | Revolving Credit Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.50% | |||||||
One, Two, Three Month LIBOR [Member] | Revolving Credit Loan [Member] | Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 4.60% | |||||||
One, Two, Three Month LIBOR [Member] | Revolving Credit Loan [Member] | Amended Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.50% | |||||||
Base Rate [Member] | Revolving Credit Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 1.60% | |||||||
Federal Funds Rate [Member] | Revolving Credit Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 0.50% |
LongTerm_Debt_Schedule_Of_Prop
Long-Term Debt (Schedule Of Property Under Capital Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Leased Assets [Line Items] | |
Less: Accumulated Depreciation | ($239) |
Capital leased assets, net | 3,793 |
Leasehold Improvements [Member] | |
Capital Leased Assets [Line Items] | |
Capital leased assets | 2,928 |
Furniture And Equipment [Member] | |
Capital Leased Assets [Line Items] | |
Capital leased assets | 526 |
Computer Equipment [Member] | |
Capital Leased Assets [Line Items] | |
Capital leased assets | 431 |
Computer Software [Member] | |
Capital Leased Assets [Line Items] | |
Capital leased assets | $147 |
LongTerm_Debt_Schedule_Of_Futu
Long-Term Debt (Schedule Of Future Minimum Payments For Capital Leases) (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ||
2015 | $1,105 | |
2016 | 1,105 | |
2017 | 1,105 | |
2018 | 629 | |
Total minimum lease payments | 3,944 | |
Less: amount representing estimated executory costs (such as taxes, maintenance and insurance), including profit thereon, included in total minimum lease payments | -68 | |
Net minimum lease payments | 3,876 | |
Less: amount representing interest | -213 | [1] |
Present value of net minimum lease payments | 3,663 | [2] |
Current obligations under capital leases | 986 | |
Noncurrent obligations under capital leases | $2,677 | |
[1] | Amount necessary to reduce net minimum lease payments to present value calculated at the Companys incremental borrowing rate at lease inception. | |
[2] | Reflected in the balance sheet as current and noncurrent obligations under capital leases of $986,000 and $2,677,000, respectively. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Statutory federal tax rate | 34.50% | 35.00% | 34.00% |
Unrecognized tax benefit | $115 | $115 | $115 |
Income_Taxes_Tax_Expense_By_Ju
Income Taxes (Tax Expense By Jurisdiction) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current federal tax expense (benefit) | $2,231 | $2,926 | $3,745 |
Current state tax expense (benefit) | 976 | 435 | 792 |
Deferred federal income tax expense (benefit) | 1,915 | 393 | 196 |
Deferred state income tax expense (benefit) | 306 | 58 | 74 |
Provision (benefit) for income taxes | $5,428 | $3,812 | $4,807 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
Deferred Tax Assets, Current, Accounts receivable allowances | $1,568 | $1,664 |
Deferred Tax Assets, Current, Accrued compensation | 1,365 | 849 |
Deferred Tax Assets, Current, Accrued workers' compensation | 5,099 | 5,365 |
Deferred Tax Assets, Other | 899 | 923 |
Deferred Tax Assets, Total current deferred tax assets | 8,931 | 8,801 |
Deferred Tax Liabilities, Current, Prepaid insurance | -423 | -475 |
Net deferred tax assets-current | 8,508 | 8,326 |
Deferred Tax Assets, Long-term, Transactions Costs | 612 | |
Deferred Tax Assets, Long-term, Property and equipment | -394 | 52 |
Deferred Tax Assets, Long-term, Reserves | 510 | 1,295 |
Deferred Tax Assets, Long-term, Stock-based compensation | 713 | 861 |
Deferred Tax Assets, Long-term, Other | -218 | |
Deferred Tax Assets, Total long-term deferred tax assets | 1,223 | 2,208 |
Deferred Tax Liabilities, Long-term, Goodwill and intangible assets | -7,068 | -5,649 |
Deferred Tax Liabilities, Total long-term deferred tax | -5,845 | -3,441 |
Total net deferred tax assets | $2,663 | $4,885 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||
Federal income tax at statutory rate | 34.50% | 35.00% | 34.00% | |||
State and local taxes, net of federal benefit | 5.90% | 5.20% | 5.90% | |||
Jobs tax credits, net | -9.90% | [1] | -6.80% | [1] | -7.50% | [1] |
Nondeductible meals and entertainment | 0.50% | 0.40% | -0.80% | |||
Other | 0.20% | -8.30% | 2.50% | |||
Effective income tax rate | 31.20% | 25.50% | 34.10% | |||
One time jobs tax benefit | 2.40% | |||||
[1] | Included in the jobs tax credit for the year ended December 31, 2012 was a one-time benefit of a 2.4% reduction from the Companys statutory tax rate for the jobs tax credits earned in 2012 but not recorded until 2013. The federal employment opportunity tax credits were reinstated in 2013 and were not an allowable deduction in 2012. |
Income_Taxes_Changes_In_Unreco
Income Taxes (Changes In Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $115 | $115 |
Unrecognized Tax Benefits, Increases related to current year tax positions | ||
Unrecognized Tax Benefits, Ending Balance | $115 | $115 |
Stock_Options_And_Restricted_S2
Stock Options And Restricted Stock Awards (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $502 | $276 | $181 |
Unrecognized compensation cost | 1,659 | ||
Recognization period for unrecognized compensation cost | 5 years | ||
Intrinsic value on vested stock options | 6,286 | ||
Intrinsic value on outstanding stock options | 8,785 | ||
Number of stock options exercised | 66 | 94 | 5 |
Stock options forfeited shares | 18 | 32 | 209 |
Restricted stock awards shares | 36 | 63 | 44 |
Restricted stock weighted average fair value per share | $22.75 | $9.61 | $4.48 |
Restricted stock awards, vested fair value | 598 | ||
2006 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares reserved for issuance | 564 | ||
2006 Stock Incentive Plan [Member] | Holdings [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares reserved for issuance | 899 | ||
2009 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares reserved for issuance | 826 | ||
Stock options shares granted | 1,500 | ||
Unrecognized compensation cost | 939 | ||
Restricted stock awards shares | 36 | ||
Restricted stock weighted average fair value per share | $22.75 | ||
Minimum [Member] | 2006 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vest period | 5 years | ||
Maximum [Member] | 2006 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vest period | 10 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value on exercised stock options | 1,025 | ||
Number of stock options exercised | 66 | 94 | |
Number of non-cash stock options exercised | 26 | 67 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $325 | $239 | $160 |
Stock_Options_And_Restricted_S3
Stock Options And Restricted Stock Awards (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options And Restricted Stock Awards [Abstract] | |||
Options, Outstanding, beginning of period shares | 647 | 596 | 775 |
Options, Granted shares | 121 | 177 | 36 |
Options, Exercised shares | -66 | -94 | -5 |
Options, Forfeited/Cancelled shares | -18 | -32 | -209 |
Options, Outstanding, end of period shares | 684 | 647 | 596 |
Weighted Average Exercise Price, Outstanding, beginning of period | $8.80 | $8.11 | $7.69 |
Weighted Average Exercise Price, Granted | $22.97 | $10.93 | $4.49 |
Weighted Average Exercise Price, Exercised | $6.90 | $9.09 | $4.53 |
Weighted Average Exercise Price, Forfeited/Cancelled | $9.26 | $7.89 | $6.02 |
Weighted Average Exercise Price, Outstanding, end of period | $11.43 | $8.80 | $8.11 |
Stock_Options_And_Restricted_S4
Stock Options And Restricted Stock Awards (Stock Option Awards) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | 684,370 |
Options Outstanding, Weighted Average Exercise Price | $11.43 |
Options Exercisable, Number | 402,619 |
Options Exercisable, Weighted Average Exercise Price | $8.66 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Option, Exercise Price, Lower Range Limit | $4.06 |
Stock Option, Exercise Price, Upper Range Limit | $5.93 |
Options Outstanding, Number | 113,000 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | 6 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $4.73 |
Options Exercisable, Number | 78,000 |
Options Exercisable, Weighted Average Remaining Contractual Life In Years | 6 years 4 months 24 days |
Options Exercisable, Weighted Average Exercise Price | $4.92 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Option, Exercise Price, Lower Range Limit | $8.91 |
Stock Option, Exercise Price, Upper Range Limit | $23.22 |
Options Outstanding, Number | 571,370 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | 5 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $12.76 |
Options Exercisable, Number | 324,619 |
Options Exercisable, Weighted Average Remaining Contractual Life In Years | 3 years 3 months 18 days |
Options Exercisable, Weighted Average Exercise Price | $9.56 |
Stock_Options_And_Restricted_S5
Stock Options And Restricted Stock Awards (Option Pricing Assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value | $10.69 | $5.14 | $2.09 |
Risk-free discount rate, minimum | 2.12% | 2.07% | 1.59% |
Risk-free discount rate, maximum | 2.73% | 2.96% | 1.95% |
Volatility, minimum | 42.00% | ||
Volatility | 47.00% | 47.00% | |
Volatility, maximum | 51.00% | ||
Expected turn-over rate | 5.00% | 5.00% | 5.00% |
Expected exercise multiple | $2.20 | $2.20 | $2.20 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 7 years 8 months 12 days | 6 years | 6 years |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 8 years 2 months 12 days | 6 years 3 months | 6 years 6 months |
Stock_Options_And_Restricted_S6
Stock Options And Restricted Stock Awards (Summary Of Vested And Unvested RSU) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options And Restricted Stock Awards [Abstract] | |||
Restricted Stock Awards, Unvested restricted stock awards at beginning of period | 70 | 42 | 21 |
Restricted Stock Awards, Awarded | 36 | 63 | 44 |
Restricted Stock Awards, Vested | -22 | -32 | -20 |
Restricted Stock Awards, Forfeited | -5 | -3 | -3 |
Restricted Stock Awards, Unvested restricted stock awards at end of period | 79 | 70 | 42 |
Restricted Stock Awards, Weighted Average Grant Date Fair Value beginning of period | $9.13 | $4.80 | $5.95 |
Restricted Stock Awards, Weighted Average Grant Date Fair Value, Awarded | $22.75 | $9.61 | $4.48 |
Restricted Stock Awards, Weighted Average Grant Date Fair Value, Vested | $10.34 | $4.65 | $5.14 |
Restricted Stock Awards, Weighted Average Grant Date Fair Value, Forfeited | $6.66 | $5.32 | $5.93 |
Restricted Stock Awards, Weighted Average Grant Date Fair Value end of period | $15.16 | $9.13 | $4.80 |
Operating_Leases_And_Related_P2
Operating Leases And Related Party Transactions (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leased Assets [Line Items] | |||
Rent expense | $2,707 | $2,442 | $3,380 |
New Office Space [Member] | |||
Operating Leased Assets [Line Items] | |||
Term of lease | 132 months | ||
Area of office space | 59,000 | ||
Rent expense | 503 | ||
Office Space [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense | 200 | 483 | 486 |
Telecom System [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense | $366 | $379 | $285 |
Operating lease term | 5 years | ||
LHC Group, Inc. [Member] | |||
Operating Leased Assets [Line Items] | |||
Number of properties under subleases | 13 | ||
Number of leases assigned | 9 |
Operating_Leases_And_Related_P3
Operating Leases And Related Party Transactions (Operating Leases And Related Party Transactions) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases And Related Party Transactions [Abstract] | |
2015 | $3,528 |
2016 | 2,915 |
2017 | 2,053 |
2018 | 1,555 |
2019 | 1,249 |
Thereafter | 5,584 |
Total | $16,884 |
Stockholders_Equity_Details
Stockholder's Equity (Details) (2009 Stock Incentive Plan [Member]) | 31-May-13 | Sep. 30, 2009 |
In Thousands, unless otherwise specified | ||
2009 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of incentive stock options provided for grant | 1,500 | 750 |
Segment_Data_Details
Segment Data (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Segment Data [Abstract] | |
Number of reporting units | 2 |
Number of operating segments | 1 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plans [Abstract] | |||
Matching percentage for Retirement Plan | 6.00% | 6.00% | 6.00% |
Company matching contribution amount | $30 | $46 | $44 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |
Maximum term of employment agreements | 4 years |
Significant_Payors_Details
Significant Payors (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Service Revenues, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 53.20% | 58.80% | 57.30% |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 54.20% | 65.60% |
Summarized_Quarterly_Financial2
Summarized Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summarized Quarterly Financial Information [Abstract] | |||||||||||
Net service revenues | $82,636 | $81,658 | $76,965 | $71,683 | $69,882 | $67,306 | $65,755 | $62,998 | $312,942 | $265,941 | $244,315 |
Gross profit | 22,647 | 21,840 | 20,580 | 18,668 | 18,102 | 17,226 | 16,613 | 15,798 | 83,735 | 67,739 | 64,051 |
Operating income from continuing operations | 5,242 | 4,961 | 4,098 | 3,770 | 3,476 | 4,263 | 3,980 | 3,742 | 18,071 | 15,461 | 15,663 |
Net income from continuing operations | 3,643 | 3,237 | 2,729 | 2,354 | 3,124 | 2,770 | 2,582 | 2,687 | 12,243 | 19,145 | 7,635 |
Earnings (loss) from discontinued operations | 280 | -2,239 | -203 | -150 | 10,574 | 8,962 | |||||
Net income (loss) | $3,923 | $3,237 | $2,729 | $2,354 | $885 | $2,567 | $2,432 | $13,261 | |||
Average shares outstanding: Basic | 10,929 | 10,927 | 10,903 | 10,850 | 10,838 | 10,787 | 10,785 | 10,778 | 10,900 | 10,826 | 10,764 |
Average shares outstanding: Diluted | 11,143 | 11,154 | 11,138 | 11,110 | 11,154 | 11,071 | 11,016 | 10,845 | 11,114 | 11,075 | 10,784 |
Continuing operations - Basic | $0.33 | $0.30 | $0.25 | $0.22 | $0.29 | $0.26 | $0.24 | $0.25 | $1.10 | $1.03 | $0.86 |
Discontinued operations - Basic | $0.03 | ($0.21) | ($0.02) | ($0.01) | $0.98 | $0.02 | $0.74 | ($0.15) | |||
Basic net income per share | $0.36 | $0.30 | $0.25 | $0.22 | $0.08 | $0.24 | $0.23 | $1.23 | $1.12 | $1.77 | $0.71 |
Continuing operations - Diluted | $0.33 | $0.29 | $0.25 | $0.21 | $0.28 | $0.25 | $0.23 | $0.25 | $1.08 | $1.01 | $0.86 |
Discontinued operations - Diluted | $0.02 | ($0.20) | ($0.02) | ($0.01) | $0.98 | $0.02 | $0.72 | ($0.15) | |||
Diluted net income per share | $0.35 | $0.29 | $0.25 | $0.21 | $0.08 | $0.23 | $0.22 | $1.23 | $1.10 | $1.73 | $0.71 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2015 |
item | |||
Subsequent Event [Line Items] | |||
Acquisitions of businesses | $7,172 | $12,325 | |
Acquisition costs | 735 | ||
Priority Home Health Care, Inc. [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Acquisitions of businesses | 4,250 | ||
Number of Offices | 6 | ||
Acquisition costs | $421 |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Details) (Allowance For Doubtful Accounts [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance For Doubtful Accounts [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | $4,140 | $4,466 | $7,189 | |||
Additions/charges | 2,818 | 3,020 | 2,877 | |||
Deductions | 3,077 | [1] | 3,346 | [1] | 5,600 | [1] |
Balance at end of period | $3,881 | $4,140 | $4,466 | |||
[1] | Write-offs, net of recoveries |