Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 | ||
Entity Registrant Name | Addus HomeCare Corp | ||
Entity Central Index Key | 1,468,328 | ||
Trading Symbol | adus | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 11,630,888 | ||
Entity Public Float | $ 287,192,965 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash | $ 53,754 | $ 8,013 |
Accounts receivable, net of allowances of $10,537 and $7,363 at December 31, 2017 and 2016, respectively | 88,952 | 116,999 |
Prepaid expenses and other current assets | 8,379 | 5,998 |
Total current assets | 151,085 | 131,010 |
Property and equipment, net of accumulated depreciation and amortization | 7,489 | 6,648 |
Other assets | ||
Goodwill | 90,339 | 72,688 |
Intangible assets, net of accumulated amortization | 16,596 | 15,263 |
Investments in joint ventures | 900 | |
Deferred tax assets, net | 1,601 | 3,355 |
Total other assets | 108,536 | 92,206 |
Total assets | 267,110 | 229,864 |
Current liabilities | ||
Accounts payable | 4,271 | 4,486 |
Current portion of long-term debt, net of debt issuance costs | 3,099 | 2,531 |
Accrued expenses | 44,800 | 42,603 |
Total current liabilities | 52,170 | 49,620 |
Long-term liabilities | ||
Long-term debt, less current portion, net of debt issuance costs | 39,860 | 22,482 |
Total liabilities | 92,030 | 72,102 |
Stockholders' equity | ||
Common stock-$.001 par value; 40,000 authorized and 11,632 and 11,527 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 12 | 12 |
Additional paid-in capital | 95,963 | 92,253 |
Retained earnings | 79,105 | 65,497 |
Total stockholders' equity | 175,080 | 157,762 |
Total liabilities and stockholders' equity | $ 267,110 | $ 229,864 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 10,537 | $ 7,363 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,632,000 | 11,527,000 |
Common stock, shares outstanding | 11,632,000 | 11,527,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Income [Abstract] | |||
Net service revenues | $ 425,715 | $ 400,688 | $ 336,815 |
Cost of service revenues | 310,119 | 294,593 | 245,492 |
Gross profit | 115,596 | 106,095 | 91,323 |
General and administrative expenses | 76,902 | 76,840 | 66,143 |
Gain on sale of assets | (2,467) | ||
Revaluation of contingent consideration | 130 | ||
Depreciation and amortization | 6,663 | 6,647 | 4,717 |
Provision for doubtful accounts | 8,259 | 7,373 | 4,309 |
Total operating expenses | 89,357 | 90,860 | 75,299 |
Operating income from continuing operations | 26,239 | 15,235 | 16,024 |
Interest income | (66) | (2,812) | (47) |
Interest expense | 4,472 | 2,332 | 786 |
Total interest (income) expense, net | 4,406 | (480) | 739 |
Other income | 217 | 206 | |
Income from continuing operations before income taxes | 22,050 | 15,921 | 15,285 |
Income tax expense | 8,589 | 3,994 | 3,932 |
Net income from continuing operations | 13,461 | 11,927 | 11,353 |
Earnings from discontinued operations, net of tax | 147 | 97 | 270 |
Net income | $ 13,608 | $ 12,024 | $ 11,623 |
Net income per common share | |||
Basic income per share | $ 1.19 | $ 1.06 | $ 1.06 |
Diluted income per share | 1.17 | 1.06 | 1.04 |
Basic income per share | |||
Continuing operations | 1.18 | 1.05 | 1.03 |
Discontinued operations | 0.01 | 0.01 | 0.03 |
Diluted income per share | |||
Continuing operations | 1.16 | 1.05 | 1.02 |
Discontinued operations | $ 0.01 | $ 0.01 | $ 0.02 |
Weighted average number of common shares and potential common shares outstanding: | |||
Basic | 11,470,000 | 11,292,000 | 10,986,000 |
Diluted | 11,623,000 | 11,349,000 | 11,189,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2014 | $ 11 | $ 84,929 | $ 41,850 | $ 126,790 |
Balance, shares at Dec. 31, 2014 | 11,010 | |||
Issuance of shares of common stock under restricted stock award agreements, Shares | 57 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (3) | |||
Stock-based compensation | 1,573 | 1,573 | ||
Excess tax benefit from exercise of stock options | 269 | 269 | ||
Shares issued for exercise of stock options | 305 | 305 | ||
Shares issued for exercise of stock options, shares | 44 | |||
Net income | 11,623 | 11,623 | ||
Balance at Dec. 31, 2015 | $ 11 | 87,076 | 53,473 | 140,560 |
Balance, shares at Dec. 31, 2015 | 11,108 | |||
Issuance of shares of common stock under restricted stock award agreements, Shares | 108 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (69) | |||
Stock-based compensation | 1,072 | 1,072 | ||
Excess tax benefit from exercise of stock options | 1,090 | 1,090 | ||
Shares issued for exercise of stock options | $ 1 | 3,015 | 3,016 | |
Shares issued for exercise of stock options, shares | 380 | |||
Net income | 12,024 | 12,024 | ||
Balance (As Previously Reported [Member]) at Dec. 31, 2016 | 158,928 | |||
Balance at Dec. 31, 2016 | $ 12 | 92,253 | 65,497 | 157,762 |
Balance, shares at Dec. 31, 2016 | 11,527 | |||
Issuance of shares of common stock under restricted stock award agreements, Shares | 90 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (36) | |||
Stock-based compensation | 2,552 | 2,552 | ||
Shares issued for exercise of stock options | 1,158 | 1,158 | ||
Shares issued for exercise of stock options, shares | 51 | |||
Net income | 13,608 | 13,608 | ||
Balance at Dec. 31, 2017 | $ 12 | $ 95,963 | $ 79,105 | $ 175,080 |
Balance, shares at Dec. 31, 2017 | 11,632 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 13,608 | $ 12,024 | $ 11,623 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities, net of acquisitions: | |||
Depreciation and amortization | 6,663 | 6,647 | 4,717 |
Non-cash restructuring | 383 | 2,550 | |
Deferred income taxes | 1,754 | (1,328) | 838 |
Stock-based compensation | 2,552 | 1,072 | 1,573 |
Amortization and write-off of debt issuance costs under the terminated credit facility | 1,484 | 357 | 97 |
Amortization of debt issuance costs under the new credit facility | 382 | ||
Provision for doubtful accounts | 8,259 | 7,373 | 4,309 |
Revaluation of contingent consideration | 130 | ||
Gain on sale of assets | (2,467) | ||
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 21,023 | (32,606) | (19,512) |
Prepaid expenses and other current assets | (2,364) | (282) | 2,318 |
Accounts payable | (229) | (1,530) | 570 |
Accrued expenses | 1,723 | 4,980 | (2,557) |
Net cash provided by (used in) operating activities | 52,771 | (743) | 4,106 |
Cash flows from investing activities: | |||
Proceeds from the sale of assets | 3,702 | ||
Acquisitions of businesses, net of cash acquired | (24,354) | (20,026) | (8,365) |
Acquisition of customer list | (146) | ||
Purchases of property and equipment | (3,616) | (1,712) | (2,213) |
Net cash used in investing activities | (24,268) | (21,738) | (10,724) |
Cash flows from financing activities: | |||
Borrowings on revolver-new credit facility | 30,000 | ||
Borrowings on revolver - terminated credit facility | 20,000 | 27,000 | |
Borrowings on term loan - new credit facility | 45,000 | ||
Borrowings on term loan - terminated credit facility | 25,000 | ||
Payments on revolver-new credit facility | (30,000) | ||
Payments on revolver-terminated credit facility | (20,000) | (27,000) | |
Payments on term loan- new credit facility | (563) | ||
Payments on term loan - terminated credit facility | (24,063) | (938) | |
Payments on capital lease obligations | (1,432) | (1,175) | (1,050) |
Payments for debt issuance costs under the new credit facility | (2,862) | ||
Payments for debt issuance costs under the terminated credit facility | (503) | (1,165) | |
Cash received from exercise of stock options | 1,158 | 3,016 | 305 |
Excess tax benefit from exercise of stock options | 1,090 | 269 | |
Payment on contingent earn-out obligation | (100) | (1,000) | |
Net cash provided by (used in) financing activities | 17,238 | 26,390 | (2,641) |
Net change in cash | 45,741 | 3,909 | (9,259) |
Cash, at beginning of period | 8,013 | 4,104 | 13,363 |
Cash, at end of period | 53,754 | 8,013 | 4,104 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 2,261 | 2,322 | 786 |
Cash paid for income taxes | 6,838 | 5,087 | 911 |
Supplemental disclosures of non-cash investing and financing activities | |||
Property and equipment acquired through capital lease obligations | 618 | 378 | |
Tax benefit related to the amortization of tax goodwill in excess of book basis | $ 206 | $ 203 | $ 123 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
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," "we," "us," or "our"). The Company operates as one 34,000 24 116 Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation. The Company used the cost method to account for its investments in joint ventures in which it owned 10% 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, managed care organizations, commercial insurers and private consumers. The Company's operations 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. Personal care 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 insurance programs and private pay. 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 establishes its provision for doubtful accounts primarily by analyzing historical trends and the aging of receivables. In its evaluation, the Company considers other factors including: 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 Company's management believes is sufficient to cover potential losses. However, actual collections could differ from the Company's 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. 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 Company's carrying value of goodwill is the excess 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 Accounting Standards Codification ("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 2017, 2016 and 2015, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. The results of the Company's 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 were no impairments for the years ended December 31, 2017, 2016 or 2015. Intangible Assets The Company's 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 twenty-five 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 charge 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 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 over which 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. 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. The Company has classified the debt issuance costs as current portion of long-term debt or long-term debt, less current portion as of December 31, 2017 and 2016. Workers' Compensation Program The Company's workers' compensation insurance program has a $ 0.4 12.6 12.8 0.5 0.7 Interest Income Illinois law 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 Consolidated Statements of Income as interest income. For the year ended December 31, 2017, the Company did not receive any prompt payment interest. For the year ended December 31, 2016, the Company received $ 2.8 did not earn or receive Interest Expense The Company's interest expense consists of interest and unused credit line fees on its credit facilities, interest on its capital lease obligations, and amortization and write-off of debt issuance costs, which is reported in the statement of income when incurred. Other Income Other income consisted of income distributions received from investments in joint ventures. The Company accounted for this income in accordance with ASC Topic 325, "Investments—Other." The Company recognized the net accumulated earnings only to the extent distributed by the joint ventures on the date received. The Company subsequently sold these equity investments on October 1, 2017 (see Note 3). 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 Company's 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. As a result of the reduction in the U.S. corporate income tax rate from 35.0 21.0 $0.9 $0.3 In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 allows for simplification of several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under ASU 2016-09, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. ASU 2016-09 also requires recognition of excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. ASU 2016-09 further permits the withholding of an amount up to employees' maximum individual tax rate in the relevant jurisdiction without resulting in a liability classification. ASU 2016-09 also requires any excess tax benefits be classified along with other income tax cash flows as an operating activity and cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity. The Company adopted this standard on January 1, 2017 on a prospective basis. As a result, for the year ended December 31, 2017, the Company recorded an excess tax benefit of $0.1 The Company recognizes interest and penalties accrued related to uncertain tax positions in interest expense and penalties within operating expenses on the Consolidated Statements of Income. Stock-based Compensation The Company currently has one Stock Compensation ." Under the 2017 Plan, compensation expense is recognized on a straight-line basis over the vesting period of the equity awards based on the grant date fair value of the options and restricted stock awards. From October 28, 2009 to December 31, 2016, the Company utilized the Enhanced Hull-White Trinomial Model to value the Company's options. Beginning January 1, 2017, the Company began utilizing the Black-Scholes Option Pricing Model to value the Company's options, as the Company believes it is a more widely accepted and understood valuation 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 the Company's 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. Diluted Net Income Per Common Share Diluted 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 Company's outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards. Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2017 were approximately 479,000 101,000 143,000 52,000 Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2016 were approximately 405,000 30,000 103,000 27,000 Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2015 were approximately 650,000 40,000 89,000 6,000 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. The Company's critical accounting estimates include the following areas: the allowance for doubtful accounts, reserve for self-insurance claims, accounting for stock-based compensation, accounting for income taxes, business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from those estimates. Fair Value Measurements The Company's financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported on the Company's 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 Company's long-term debt with variable interest rates approximates fair value based on instruments with similar terms using level 2 inputs as defined under ASC Topic 820 " Fair Value Measurement ." The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill, if required, and indefinite-lived intangible assets and also when determining the fair value of contingent consideration, if applicable. To determine the fair value in these situations, the Company uses Level 3 inputs, under ASC Topic 820 and defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions, 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. Going Concern In connection with the preparation of the financial statements for the years ended December 31, 2017 and 2016, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity's ability to continue as a going concern within one year after the date of the issuance, or the date of availability, of the financial statements to be issued. The evaluation concluded that there did not appear to be evidence of substantial doubt of the entity's ability to continue as a going concern. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers (Topic 606) ," which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in GAAP. During 2017, the Company completed its assessment with assistance from outside resources to prepare specific contract analysis and document policy changes. The Company also reviewed its contract and revenue streams and implemented system enhancements. Under ASU 2014-09, the timing and measurement of revenue for the Company's customers is similar to its current revenue recognition model due to the structure of payor contracts which consists of a fixed reimbursement rate that is deemed earned upon completion of a defined service. The Company anticipates that for periods subsequent to adoption, the majority of what is currently classified as bad debt expense under operating expenses will be treated as an implicit price concession factored into net revenue, consistent with the intent of the standard. As a result, there will be a decrease in gross profit for periods subsequent to the adoption as compared to prior periods with no change to operating income or net income. The new standard also requires enhanced disclosures related to the disaggregation of revenue, information about contract balances, and other disclosures about contracts with customers, including revenue recognition policies to identify performance obligations and significant judgments in measurement and recognition. The Company adopted the standard on January 1, 2018 using the modified retrospective approach and the adoption did not result in a material cumulative adjustment. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Upon initial evaluation, the Company believes that the new standard will have a material impact on its Consolidated Balance Sheets but it will not affect its liquidity. It has been determined that the Company will need to secure new software to account for the change in accounting for leases and is currently reviewing the software options available. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This standard amends and adjusts how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and will require adoption on a retrospective basis unless impracticable. If impracticable the Company would be required to apply the amendments prospectively as of the earliest date possible. The Company is currently evaluating the impact that ASU 2016-15 will have on its statement of cash flows but does not expect it to have a material impact. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current Step 1). ASU 2017-04 is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company is currently evaluating the provisions of ASU 2017-04 to determine how its goodwill impairment testing will be impacted and whether it may elect to adopt ASU 2017-04 prior to the stated effective date. In May 2017, the FASB issued ASU 2017-09, " Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This pronouncement is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company is evaluating the impact of the adoption of this guidance on its financial statements but does not expect it to have a material impact. Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation including the reporting of provision for doubtful accounts as a separate line item on the Consolidated Statements of Income. These reclassifications have no effect on the reported net income for the years ended December 31, 2017, 2016 and 2015. |
Correction to Prior Period Fina
Correction to Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Correction to Prior Period Financial Statements [Abstract] | |
Correction to Prior Period Financial Statements | 2. Correction to Prior Period Financial Statements Management noted errors in the Company's previously issued Consolidated Financial Statements. The first error, in the amount of approximately $0.6 $0.7 $0.2 $0.2 As such, the Company's consolidated financial statements for fiscal year 2006 and periods thereafter included misstatements associated with the errors noted above. The cumulative reduction in net income resulting from correcting these errors beginning in the year 2006 totaled $1.2 In evaluating whether the previously issued Consolidated Financial Statements were materially misstated, the Company applied the guidance of ASC 250, Accounting Changes and Error Corrections, SEC Staff Accounting Bulletin ("SAB") Topic 1.M, Assessing Materiality and SAB Topic 1.N, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and concluded that the effect of the errors on prior period financial statements was immaterial. However, the guidance states that prior-year misstatements which, if corrected in the current year would materially misstate the current year's financial statements, must be corrected by adjusting prior year financial statements, even though such correction previously was and continues to be immaterial to the prior-year financial statements. Correcting prior-year financial statements for such "immaterial misstatements" does not require previously filed reports to be amended. The Company concluded that the error was not material to the affected prior periods; however, the cumulative effect of correcting all of the prior period misstatements in the current year would be material to the current year consolidated financial statements. The cumulative effect of adjustments required to correct the misstatements in the financial statements years prior to 2015 are reflected in the revised opening retained earnings balance as of January 1, 2015. The cumulative effect of those adjustments on all periods reduced previously reported retained earnings by $1.2 As a result, certain amounts presented in the Company's Consolidated Balance Sheets have been revised from the amounts previously reported to correct this error as shown in the table below. Consolidated Balance Sheet as of December 31, 2016 (in thousands): As Previously As Reported Corrections Revised Deferred tax asset, net $ 3,153 $ 202 $ 3,355 Goodwill 73,906 (1,218 ) 72,688 Intangible assets, net of accumulated amortization 15,413 (150 ) 15,263 Total assets $ 231,030 $ (1,166 ) $ 229,864 Total liabilities 72,102 — 72,102 Total stockholders' equity 158,928 (1,166 ) 157,762 Total liabilities and stockholders' equity $ 231,030 $ (1,166 ) $ 229,864 |
Gain on Sale of Assets
Gain on Sale of Assets | 12 Months Ended |
Dec. 31, 2017 | |
Gain on Sale of Assets [Abstract] | |
Gain on Sale of Assets | 3. Gain on Sale of Assets On October 1, 2017, the Company sold its 10% two 1.3 $0.4 In order to focus on providing services to consumers in their homes, effective March 1, 2017, the Company ceased the adult day services business and completed its sale of substantially all of the assets used in three $2.4 $2.1 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 4. Discontinued Operations Effective March 1, 2013, the Company sold substantially all of the assets used in its home health business (the "Home Health Business") in Arkansas, Nevada and South Carolina, and 90 20.0 10 19 two five one $0.2 As a condition of the sale of the Home Health Business to subsidiaries of 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 Company's 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 $ 1.8 0.2 0.2 0.2 0.4 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, 2017, 2016 and 2015: 2017 2016 2015 (Amounts in Thousands) Net service revenues $ — $ — $ — Income before income taxes 245 163 448 Income tax expense 98 66 178 Net income from discontinued operations $ 147 $ 97 $ 270 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | 5. Acquisitions Effective October 1, 2017, the Company acquired certain assets of Community Partnered Resources, Inc. d/b/a Sun Cities Caregivers and d/b/a Sun Cities Homecare ('Sun Cities"), in the State of Arizona, to enhance operations in an advantageous market. The total consideration for the transaction was comprised of $2.3 $0.1 The Company's acquisition of Sun Cities has been accounted for in accordance with ASC Topic 805, " Business Combinations, " and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350, " Goodwill and Other Intangible Assets ." The acquisition was recorded at its fair value as of October 1, 2017. Under business combination accounting, the Sun Cities Purchase Price was $2.3 million and was allocated to Sun Cities's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 1,103 Identifiable intangible assets 682 Accounts receivable 240 Cash 321 Other assets 10 Accrued liabilities (86 ) Accounts payable (14 ) Total purchase price allocation $ 2,256 Management's assessment of qualitative factors affecting goodwill for Sun Cities 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 name and customer relationships (see Note 1 for estimated useful lives of the Company's identifiable intangible assets). The estimated fair value of identifiable intangible assets was determined, using Level 3 inputs as defined under ASC Topic 820, with the assistance of a valuation specialist. The goodwill and intangible assets acquired are deductible for tax purposes. The Sun Cities acquisition accounted for $0.7 $14.8 On April 24, 2017, the Company entered into a definitive securities purchase agreement with HB Management Group, Inc. to purchase Options Services, Inc. d/b/a Options Home Care ("Options Home Care"). On August 1, 2017, the Company completed its acquisition of all the outstanding securities of Options Home Care for a total purchase price of $ 22.6 20 $0.7 The Company's acquisition of Options Home Care has been accounted for in accordance with ASC Topic 805, " Business Combinations, " and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350, " Goodwill and Other Intangible Assets ." The acquisition was recorded at its fair value as of August 1, 2017. Under business combination accounting, the Options Purchase Price was $22.6 million and was allocated to Options Home Care's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 16,754 Identifiable intangible assets 5,324 Accounts receivable 995 Cash 205 Other assets 41 Accrued liabilities (695 ) Total purchase price allocation $ 22,624 Management's assessment of qualitative factors affecting goodwill for Options Home Care 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 name and customer relationships (see Note 1 for estimated useful lives of the Company's identifiable intangible assets). The estimated fair value of identifiable intangible assets was determined, using Level 3 inputs as defined under ASC Topic 820, with the assistance of a valuation specialist. The goodwill and intangible assets acquired are deductible for tax purposes. The Options Home Care acquisition accounted for $ 8.0 0.5 The following table contains unaudited pro forma condensed consolidated income statement information of the Company had the acquisition of Sun Cities and Options Home Care closed on January 1, 2016. For the Years Ended December 31, (Amounts in Thousands) 2017 2016 Net service revenues $ 441,858 $ 425,704 Operating income from continuing operations 28,103 15,575 Net income from continuing operations 15,010 12,196 Earnings from discontinued operations, net of tax 147 97 Net income $ 15,157 $ 12,293 Net income per common share Basic income per share Continuing operations $ 1.31 $ 1.08 Discontinued operations 0.01 0.01 Basic income per share $ 1.32 $ 1.09 Diluted income per share Continuing operations $ 1.29 $ 1.07 Discontinued operations 0.01 0.01 Diluted income per share $ 1.30 $ 1.08 The pro forma disclosures in the table above include adjustments for amortization of intangible assets, tax expense, and acquisition costs to reflect results that are more representative of the combined results of the transactions as if Sun Cities and Options Home Care had been acquired effective January 1, 2016. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operations 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. Effective February 23, 2016, the Company acquired certain assets of Lutheran Social Services of Illinois ("LSSI") for approximately $ 0.1 $0.2 $49.3 $1.0 0.1 On April 24, 2015, Addus HealthCare entered into a Securities Purchase Agreement with Margaret Coffey and Carol Kolar (the "South Shore Sellers"), South Shore Home Health Service Inc. ("South Shore") and Acaring Home Care, LLC ("Acaring"), pursuant to which Addus HealthCare agreed to acquire all of the issued and outstanding securities of each of South Shore and Acaring. On February 5, 2016, Addus HealthCare completed its acquisition of all the outstanding securities of South Shore and Acaring for a total purchase price of $ 20.0 1.3 The Company's acquisition of South Shore and Acaring has been accounted for in accordance with ASC Topic 805, " Business Combinations, " and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350 " Goodwill and Other Intangible Assets ." The acquisition was recorded at its fair value as of February 5, 2016. Under business combination accounting, the South Shore Purchase Price was $20.0 million and was allocated to South Shore's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 5,265 Identifiable intangible assets 9,957 Accounts receivable 6,807 Other current assets 858 Accrued liabilities (1,593 ) Accounts payable (1,268 ) Total purchase price allocation $ 20,026 Management's assessment of qualitative factors affecting goodwill for South Shore 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, using Level 3 inputs as defined under ASC Topic 820, by the Company's management. The net intangible and identifiable intangible assets, including goodwill, are deductible for tax purposes. The South Shore acquisition accounted for $ 58.4 0.2 51.7 0.8 Effective November 9, 2015, the Company acquired certain assets of Five Points Healthcare of Virginia, LLC ("Five Points"), in order to further expand the Company's presence in the State of Virginia. The total consideration for the transaction was comprised of $ 4.1 0.4 The Company's acquisition of Five Points has been accounted for in accordance with ASC Topic 805, "Business Combinations," and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350 " Goodwill and Other Intangible Assets ." The acquisition of Five Points was recorded at its fair value as of November 9, 2015. The total purchase price was $4.1 million. Under business combination accounting, the total purchase price was allocated to Five Points' net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 2,885 Identifiable intangible assets 920 Accounts receivable 472 Accrued liabilities (155 ) Accounts payable (7 ) Total purchase price allocation $ 4,115 Management's assessment of qualitative factors affecting goodwill for Five Points 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, using Level 3 as defined under ASC Topic 820, inputs by the Company's management. The net intangible and identifiable intangible assets, including goodwill, are deductible for tax purposes. The Five Points acquisition accounted for $ 2.9 0.3 4.1 30.6 0.7 18.1 Effective January 1, 2015, the Company acquired Priority Home Health Care, Inc. ("PHHC"), in order to further expand the Company's presence in the State of Ohio. The total consideration for the transaction was comprised of $ 4.3 0.5 The Company's acquisition of PHHC has been accounted for in accordance with ASC Topic 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 January 1, 2015. The total purchase price is $4.3 million. Under business combination accounting, the total purchase price was allocated to PHHC's net tangible and identifiable intangible assets based on their estimated fair values. Based upon management's valuation, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 1,862 Identifiable intangible assets 1,930 Accounts receivable 951 Furniture, fixtures and equipment 58 Other current assets 8 Accrued liabilities (339 ) Accounts payable (220 ) Total purchase price allocation $ 4,250 Management's assessment of qualitative factors affecting goodwill for PHHC 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, using Level 3 as defined under ASC Topic 820, inputs by the Company's management. The net intangible and identifiable intangible assets, including goodwill, are deductible for tax purposes. The PHHC acquisition accounted for $ 6.4 0.1 7.5 0.3 9.0 0.1 For the acquisition of Cura Partners, LLC, which conducts business under the name Aid & Assist at Home, LLC ("Aid & Assist") on June 1, 2014, a contingent earn-out obligation was recorded at its fair value of $ 1.0 1.2 0.2 For the acquisition of Coordinated Home Health Care, LLC on December 1, 2013, a contingent earn-out obligation was recorded at its fair value of $ 1.1 2.3 1.9 1.0 1.3 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following: December 31, 2017 2016 (Amounts in Thousands) Computer equipment $ 2,770 $ 3,807 Furniture and equipment 3,392 3,146 Transportation equipment 152 898 Leasehold improvements 2,749 3,551 Computer software 3,269 5,419 12,332 16,821 Less: accumulated depreciation and amortization (4,843 ) (10,173 ) $ 7,489 $ 6,648 Computer software includes $ 1.0 2.0 1.7 1.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets The Company did not record any impairment charges for the years ended December 31, 2017, 2016, or 2015. The goodwill for the Company was $90.3 million and $72.7 million as of December 31, 2017 and 2016, respectively. A summary of goodwill and related adjustments is provided below: Goodwill (Amounts in Thousands) Goodwill, at December 31, 2015 $ 67,626 Additions for acquisitions 5,265 Adjustments to previously recorded goodwill (203 ) Goodwill, at December 31, 2016 72,688 Additions for acquisitions 17,857 Adjustments to previously recorded goodwill (206 ) Goodwill, at December 31, 2017 $ 90,339 Adjustments to the previously recorded goodwill are primarily credits related to amortization of tax goodwill in excess of book basis. The Company's identifiable intangible assets consist of customer and referral relationships, trade names, trademarks 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 twenty-five The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following at December 31, 2017 and 2016: Customer Trade and referral names and Non-competition relationships trademarks agreements Total (Amounts in Thousands) Gross balance at January 1, 2016 $ 29,872 $ 8,161 $ 2,098 $ 40,131 Additions for acquisitions 4,800 5,100 57 9,957 Accumulated amortization (26,766 ) (6,296 ) (1,763 ) (34,825 ) Net Balance at December 31, 2016 7,906 6,965 392 15,263 Gross balance at January 1, 2017 34,672 13,261 2,155 50,088 Other (281 ) — — (281 ) Additions for acquisitions 4,626 1,380 — 6,006 Accumulated amortization (29,147 ) (8,198 ) (1,872 ) (39,217 ) Net Balance at December 31, 2017 $ 9,870 $ 6,443 $ 283 $ 16,596 Amortization expense related to the identifiable intangible assets amounted to $ 4.7 4.9 3.0 The weighted average remaining lives of identifiable intangible assets as of December 31, 2017 is 6.5 The estimated future intangible amortization expense is as follows: Total (Amount in For the year ended December 31, Thousands) 2018 $ 4,919 2019 3,662 2020 2,345 2021 1,925 2022 965 Thereafter 2,780 Total $ 16,596 |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Details of Certain Balance Sheet Accounts [Abstract] | |
Details of Certain Balance Sheet Accounts | 8. Details of Certain Balance Sheet Accounts Prepaid expenses and other current assets consist of the following: December 31, 2017 2016 (Amounts in Thousands) Prepaid health insurance $ 2,901 $ 2,238 Prepaid workers' compensation and liability insurance 1,332 1,190 Prepaid rent 555 568 Workers' compensation insurance receivable 543 747 Other 3,048 1,255 $ 8,379 $ 5,998 December 31, 2017 2016 (Amounts in Thousands) Accrued payroll $ 19,783 $ 17,509 Accrued workers' compensation insurance 12,574 12,823 Accrued health insurance (1) 6,471 4,092 Indemnification reserve (2) 174 419 Accrued payroll taxes 1,065 1,747 Accrued professional fees 1,312 1,485 Accrued severance 562 1,326 Accrued restructuring (3) 1,077 1,786 Other 1,782 1,416 $ 44,800 $ 42,603 (1) The Company provides health insurance coverage to qualified union employees providing personal care 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 Company's 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 $ 2.3 2.2 (2) As a condition of the sale of the Home Health Business to subsidiaries of LHCG the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. The Company has estimated a total of $ 0.2 0.2 0.2 (3) Accrued restructuring includes reserves for lease commitments related to the closure of three The Company's workers' compensation program has a $ 0.4 11.8 16.7 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following: December 31, December 31, 2017 2016 (Amounts in Thousands) Term loan under the new credit facility $ 44,438 $ — Term loan under the terminated credit facility — 24,063 Capital leases 1,002 2,433 Less unamortized issuance costs (2,481 ) (1,483 ) Total $ 42,959 $ 25,013 Less current maturities (3,099 ) (2,531 ) Long-term debt $ 39,860 $ 22,482 In accordance with ASU 2015-03, " Simplifying the Presentation of Debt Issuance Costs ," the Company has classified the debt issuance costs as current portion of long-term debt or long-term debt, less current portion as of December 31, 2017 and 2016. Capital Leases On July 12, 2014, September 11, 2014 and April 13, 2015, the Company executed three 48 2.7 1.4 0.4 3.0 3.6 Effective October 1, 2016, the Company entered into a 25 0.6 11.1% An analysis of the leased property under capital leases by major classes is as follows. Asset Balances at December 31, 2017 Classes of Property (Amounts in Thousands) Leasehold improvements $ 1,485 Furniture and equipment 868 Computer equipment 635 Computer software 303 Total 3,291 Less: accumulated depreciation (1,333 ) $ 1,958 The future minimum payments for capital leases as of December 31, 2017 are as follows: Capital Lease (Amounts In Thousands) 2018 $ 1,026 2019 30 Total minimum lease payments 1,056 Less: amount representing estimated executory costs (such as taxes, maintenance and insurance), including profit thereon, included in total minimum lease payments (30 ) Net minimum lease payments 1,026 Less: amount representing interest (1) (24 ) Present value of net minimum lease payments (2) $ 1,002 _________________ (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. (2) Included in the balance sheet as $ 9 74.4 27.8 Senior Secured Credit Facility On May 8, 2017, the Company entered into a new credit facility and credit agreement (the "Credit Agreement") with certain lenders and Capital One, N.A., as a lender and swing lender and as agent for all lenders. This new credit facility totals $250.0 $125.0 125.0 $45.0 $80.0 five $100.0 4.25 $2.8 Addus HealthCare is the borrower under the Credit Agreement, with Holdings, and substantially all of Holdings' subsidiaries as guarantors under the new credit facility. The new credit facility is secured by a first priority security interest in all of the Company's and the other credit parties' current and future tangible and intangible assets, including the shares of stock of the borrower and subsidiaries. Interest on the Company's new credit facility may be payable at (x) the sum of (i) an applicable margin ranging from 1.50 2.25 0.50 0.00% 1.00% 2.50 3.25 The Company pays a fee ranging from 0.25 0.50 In July 2017, the Company drew a total of $30.0 $44.4 3.86% $105.1 The Credit Agreement 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 Agreement 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, investments and loans, subject to customary carve outs, a restriction on dividends (provided that Addus HealthCare may make distributions to us in an amount that does not exceed $5.0 $60.0 $80.0 Terminated Senior Secured Credit Facility Prior to May 8, 2017, the Company was a party to the Terminated Senior Secured Credit Facility with certain lenders and Fifth Third Bank, as agent and letters of credit issuer. The Terminated Senior Secured Credit Facility provided a $100.0 25.0 $ 50.0 November 10, 2020 35.0 3.25 3.75 3.50 4.00 The availability of funds under the revolving credit portion of the Company's Terminated Senior Secured Credit Facility was based on the lesser of (i) the product of adjusted EBITDA, as defined in the Company's terminated credit agreement, for the most recent 12-month period for which financial statements had been delivered under the credit agreement multiplied by the specified advance multiple, up to 3.75, less the outstanding senior indebtedness and letters of credit, and (ii) $ 100.0 2.00 2.50 0.50 3.00 3.00 3.50 3.00% 3.50 0.25 0.50 On May 8, 2017, the Company repaid the outstanding debt balance of $23.8 $0.1 $1.3 For the period January 1, 2017 through May 7, 2017, the Company drew and subsequently repaid $20.0 24.1 79.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes The current and deferred federal and state income tax provision from continuing operations, are comprised of the following: December 31, 2017 2016 2015 (Amounts in Thousands) Current Federal $ 5,782 $ 4,400 $ 2,743 State 1,069 908 528 Deferred Federal 1,672 (1,147 ) 546 State 66 (167 ) 115 Provision for income taxes $ 8,589 $ 3,994 $ 3,932 The tax effects of certain temporary differences between the Company's book and tax bases of assets and liabilities give rise to significant portions of the deferred income tax assets at December 31, 2017 and 2016. The deferred tax assets consisted of the following: December 31, 2017 2016 (Amounts in Thousands) Deferred tax assets Long-term Accounts receivable allowances $ 2,917 $ 2,960 Accrued compensation 1,919 2,733 Accrued workers' compensation 3,274 4,854 Transaction costs 898 1,137 Reserves 47 169 Restructuring costs 293 718 Stock-based compensation 811 799 Other 138 524 Total long-term deferred tax assets 10,297 13,894 Deferred tax liabilities Long-term Goodwill and intangible assets (7,301 ) (9,506 ) Property and equipment (749 ) (552 ) Prepaid insurance (359 ) (478 ) Other (1 ) (3 ) Total long-term deferred tax liabilities (8,410 ) (10,539 ) Valuation allowance (286 ) — Total net deferred tax assets $ 1,601 $ 3,355 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 in making this assessment. A reconciliation for continuing operation of the statutory federal tax rate of 35.0 35.0 34.5 December 31, 2017 2016 2015 Federal income tax at statutory rate 35.0 % 35.0 % 34.5 % State and local taxes, net of federal benefit 5.1 5.2 5.2 Jobs tax credits, net (6.1 ) (15.8 ) (11.1 ) Nondeductible permanent items 0.4 0.9 0.5 2017 Tax Reform Act, deferred tax assets rate changes 5.3 — — Other (0.7 ) (0.2 ) (3.4 ) Effective income tax rate 39.0 % 25.1 % 25.7 % In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, " Income Tax Accounting Implications of the Tax Cuts and Job Act ," ("SAB 118") to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. Additional work is necessary for a more detailed analysis of our deferred tax assets and liabilities as well as potential correlative adjustments. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. 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 2014 2017 2013 2017 At December 31, 2017 and 2016, the Company did not have any unrecognized tax benefits under ASC Topic 740. |
Stock Options And Restricted St
Stock Options And Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2017 | |
Stock Options And Restricted Stock Awards [Abstract] | |
Stock Options And Restricted Stock Awards | 11. Stock Options and Restricted Stock Awards The Board approved the 2017 Omnibus Incentive Plan ("the 2017 Plan") as of April 27, 2017, which was approved by our shareholders on June 14, 2017. The 2017 Plan was intended to replace our existing incentive compensation plan, the 2009 Stock Incentive Plan. Outstanding awards under the 2009 Plan will continue to be governed by the 2009 Plan and the agreements under which they were granted. The 2009 Plan authorized the issuance of up to 1,500,000 The 2017 Plan, like the 2009 Plan, allows us to grant performance-based incentive awards and equity-based awards (each an "Award") to eligible employees, directors and consultants in the form of Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock Units/Restricted Stock Units, Other Stock Units or Performance Awards. The Board believes that the 2017 Plan is necessary to continue the Company's effectiveness in attracting, motivating and retaining employees, directors and consultants with appropriate experience and to increase the grantees' alignment of interest with the shareholders. Under the 2017 Plan, Awards may be made in shares of our common stock. Subject to adjustment as provided by the terms of the 2017 Plan, the maximum aggregate number of shares of common stock with respect to which awards may be granted under the 2017 Plan will be 1,182,270 500,000 300,000 Any shares of common stock subject to an Award under the 2017 Plan that are forfeited, canceled, settled in cash or otherwise terminated without a distribution of shares to a participant, or that are delivered by attestation or withheld by the Company in connection with an option exercise or the payment of any required income tax withholding upon an option exercise or the vesting of restricted stock, will be deemed available for Awards under the 2017 Plan. Additionally, any shares of common stock subject to an Award under the 2009 Plan that are forfeited, canceled, settled in cash or otherwise terminated without a distribution of shares to a participant, or that are delivered by attestation or withheld by the Company in connection with an option exercise or the payment of any required income tax withholding upon an option exercise or the vesting of restricted stock, will be deemed available for Awards under the 2017 Plan. Stock options were awarded with a strike price at the fair market value equal to the closing price of our common stock on the date of grant for both the 2009 and 2017 Plans. Options granted under the 2009 and 2017 Plans typically vest over a service period ranging from three four ten one four ten The exercise price of stock options outstanding on December 31, 2017 range from $ 4.62 34.85 1.1 Stock Options A summary of stock option activity and weighted average exercise price is as follows: For The Year Ended December 31, 2017 Options Weighted (Amounts in Average Thousands) Exercise Price Outstanding, beginning of period 405 $ 19.71 Granted 154 34.32 Exercised (51 ) 22.60 Forfeited/Cancelled (29 ) 23.61 Outstanding, end of period 479 $ 23.91 The weighted-average estimated fair value of employee stock options granted as calculated using the Black-Scholes Option Pricing Model in 2017 and the Enhanced Hull-White Trinomial Model in 2016 and 2015, and the related assumptions follow: For the Year Ended December 31, 2017 2016 2015 Grants Grants Grants Weighted average fair value $ 12.97 $ 9.32 $ 9.18 Risk-free discount rate 1.67% 1.85% 1.70 2.02% 2.29 % Expected life 3.6 - 4.2 years 8.20 years 8.20 years Dividend yield — — — Volatility 47 % 47 % 47 % Expected turn-over rate N/A 2 % 2 % Expected exercise multiple N/A 2.2 2.2 Stock option compensation expense totaled $ 1.1 0.6 0.6 2.9 2.4 The intrinsic value of vested and outstanding stock options was $ 2.0 3.2 As of December 31, 2017, there were 113,044 365,526 The intrinsic value of stock options exercised during the year ended December 31, 2017, 2016 and 2015 was $ 0.5 3.9 $0.9 Restricted Stock Awards The following table summarizes the status of unvested restricted stock awards outstanding at December 31, 2017: For The Year Ended December 31, 2017 Restricted Weighted Stock Average Awards Grant (Amounts in Date Fair Thousands) Value Unvested restricted stock awards, beginning of period 103 $ 20.84 Awarded 90 34.60 Vested (35 ) 21.07 Forfeited (15 ) 22.79 Unvested restricted stock awards, end of period 143 $ 29.30 The fair market value of restricted stock awards that vested during the year ended December 31, 2017 was $ 1.0 Restricted stock award compensation expense totaled $ 1.4 0.5 0.9 $3.0 2.1 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
Operating Leases [Abstract] | |
Operating Leases | 12. Operating Leases The Company leases its branch office space under various operating leases that expire at various dates through 2025. 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 $ 2.5 2.9 3.0 The Company entered into a 132 59,000 0.8 0.8 0.8 21,000 64 27,000 0.7 0.2 During 2011, the Company entered into a lease for its telecom system under a five 0.5 0.6 The following is a schedule of the future minimum payments, exclusive of taxes and other operating expenses, required under the Company's operating leases. The payments owed with respect to the approximately 21,000 square feet (unaudited) of subleased space in Downers Grove of $ 2.0 Rent (Amount in Thousands) 2018 $ 3,155 2019 2,565 2020 1,948 2021 1,414 2022 981 Thereafter 2,237 Total $ 12,300 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans The Company's 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 44.0 31.1 33.5 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Legal Proceedings From time to time, the Company is subject to legal and/or administrative proceedings incidental to its business. It is the opinion of management that the outcome of pending legal and/or administrative proceedings will not have a material effect on our Consolidated Balance Sheets and Consolidated Statements of Income. On January 20, 2016, the Company was served with a lawsuit filed in the United States District Court for the Northern District of Illinois against the Company and Cigna Corporation by Stop Illinois Marketing Fraud, LLC, a qui tam relator formed for the purpose of bringing this action. In the action, the plaintiff alleges, inter alia, violations of the federal False Claims Act relating primarily to allegations of violations of the federal Anti-Kickback Statute and allegedly improper referrals of patients from the Company's home care division to the Company's home health business, substantially all of which was sold in 2013. The plaintiff seeks to recover damages, fees and costs under the federal False Claims Act including treble damages, civil penalties and its attorneys' fees. The U.S. government has declined to intervene at this time. Plaintiff amended its complaint on April 4, 2016 to include additional allegations in support of its False Claims Act claims, including alleged violations of the federal Anti-Kickback Statute. The Company and Cigna Corporation filed a motion to dismiss the amended complaint on June 6, 2016. On February 3, 2017, the Court granted Cigna Corporation's motion to dismiss in full, and granted the Company's motion to dismiss in part allowing Plaintiff another chance to amend its complaint. Plaintiff timely filed a second amended complaint on March 10, 2017, withdrawing its conspiracy claim under the Federal False Claims Act and adding an explicit claim under the Illinois False Claims Act for the same underlying kickback allegations. On April 7, 2017, the Company filed a partial motion to dismiss the Second Amended Complaint, which has not yet been ruled on by the court. On May 24, 2017, the State of Illinois filed notice that it was declining to intervene in the plaintiff's claim under the Illinois False Claims Act. The Company intends to defend the litigation vigorously and believes the case will not have a material adverse effect on its business, financial condition or 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 Approximately 60.4% |
Severance and Restructuring
Severance and Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Severance and Restructuring [Abstract] | |
Severance and Restructuring | 15. Severance and Restructuring In 2016, the Company initiated steps to streamline its operations. The Company incurred total expenses related to these initiatives of approximately $ 1.7 8.0 The following provides the components of and changes in our severance and restructuring accruals: Employee Termination Restructuring Costs and Other (Amounts in Thousands) Balance at December 31, 2015 $ — $ — Provision 3,230 4,786 Utilization (1,904 ) (3,000 ) Balance at December 31, 2016 1,326 1,786 Provision 1,038 627 Utilization (1,802 ) (1,336 ) Balance at December 31, 2017 $ 562 $ 1,077 Employee termination costs represent accrued severance payable to terminated employees with employment and/or separation agreements with the Company. For the year ended December 31, 2017, employee termination costs resulted mainly from changes made to the management team made during the year. For the year ended December 31, 2016, employee termination costs resulted mainly from the closure of the contact center and other changes made to the executive leadership team made during the year. The remaining accruals as of December 31, 2017 are expected to be paid through January 2019. Restructuring and other costs for the year ended December 31, 2017 primarily consisted of fees for the termination of professional services relationships, other contract termination costs and asset write-offs. For the year ended December 31, 2016, restructuring and other costs consisted of costs related to lease commitments and write-offs of leasehold improvements and property and equipment resulting from the closure of three The aforementioned accruals are included in accrued expenses on the Consolidated Balance Sheets and the aforementioned expenses are included in general and administrative expenses on the Consolidated Statements of Income. |
Significant Payors
Significant Payors | 12 Months Ended |
Dec. 31, 2017 | |
Significant Payors [Abstract] | |
Significant Payors | 16. Significant Payors For 2017, 2016 and 2015, our revenue mix by payor type was as follows: Year Ended December 31, 2017 2016 2015 State, local and other governmental programs 64.2 % 70.4 % 77.7 % Managed care organizations 33.1 26.1 18.3 Private pay 2.1 2.4 3.0 Commercial insurance 0.6 1.1 1.0 100.0 % 100.0 % 100.0 % The Company derives a significant amount of its net service revenues from its operations in Illinois, New York and New Mexico. The percentages of total revenue for each of these significant states for 2017, 2016 and 2015 were as follows: % of Total Revenue for the Years Ended December, 31 State 2017 2016 2015 Illinois 52.6 % 53.6 % 59.5 % New York 13.7 12.9 — New Mexico 8.8 7.5 8.5 A substantial portion of the Company's 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 36.6 42.1 48.8 The related receivables due from the Illinois Department on Aging represented 37.5 55.4 |
Concentration of Cash
Concentration of Cash | 12 Months Ended |
Dec. 31, 2017 | |
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. |
Unaudited Summarized Quarterly
Unaudited Summarized Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Unaudited Summarized Quarterly Financial Information [Abstract] | |
Unaudited Summarized Quarterly Financial Information | 18. Unaudited Summarized Quarterly Financial Information The following is a summary of the Company's unaudited quarterly results of operations: Year Ended December 31, 2017 Year Ended December 31, 2016 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31 (Amounts and Shares in Thousands, Except Per Share Data) Net service revenues $ 111,958 $ 108,592 $ 103,559 $ 101,606 $ 103,657 $ 103,502 $ 100,927 $ 92,602 Gross profit 30,715 29,053 28,511 27,317 28,658 27,423 25,695 24,319 Operating income from continuing operations 7,550 5,807 5,921 6,961 7,693 2,495 4,394 653 Net income from continuing operations 3,094 3,408 2,700 4,259 7,471 1,699 2,600 157 Earnings from discontinued operations 147 — — — 97 — — — Net income $ 3,241 $ 3,408 $ 2,700 $ 4,259 $ 7,568 $ 1,699 $ 2,600 $ 157 Average shares outstanding: Basic 11,488 11,486 11,470 11,434 11,383 11,367 11,361 11,022 Diluted 11,638 11,631 11,622 11,581 11,494 11,417 11,385 11,178 Income per common share: Basic Continuing operations $ 0.27 $ 0.30 $ 0.24 $ 0.37 $ 0.66 $ 0.15 $ 0.23 $ 0.01 Discontinued operations 0.01 — — — 0.01 — — — Basic net income per share $ 0.28 $ 0.30 $ 0.24 $ 0.37 $ 0.67 $ 0.15 $ 0.23 $ 0.01 Diluted net income per share Continuing operations $ 0.27 $ 0.29 $ 0.23 $ 0.37 $ 0.65 $ 0.15 $ 0.23 $ 0.01 Discontinued operations 0.01 — — — 0.01 — — — Diluted net income per share $ 0.28 $ 0.29 $ 0.23 $ 0.37 $ 0.66 $ 0.15 $ 0.23 $ 0.01 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events On January 1, 2018, the Company entered into an Asset Purchase Agreement with LifeStyle Options, Inc. ("LifeStyle") pursuant to which the Company acquired substantially all of the assets of LifeStyle for approximately $ 3.4 On February 27, 2018, the Company entered into a purchase agreement to acquire Ambercare Corporation, Inc. (Ambercare) for approximately $40.0 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Allowance for doubtful accounts $ 7,363 8,259 5,085 $ 10,537 Year ended December 31, 2016 Allowance for doubtful accounts $ 4,850 7,373 4,860 $ 7,363 Year ended December 31, 2015 Allowance for doubtful accounts $ 3,881 4,309 3,340 $ 4,850 _____________ Write-offs, net of recoveries |
Significant Accounting Polici27
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
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," "we," "us," or "our"). The Company operates as one 34,000 24 116 |
Principles of Consolidation | Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation. The Company used the cost method to account for its investments in joint ventures in which it owned 10% |
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, managed care organizations, commercial insurers and private consumers. The Company's operations 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. Personal care 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 insurance programs and private pay. |
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 establishes its provision for doubtful accounts primarily by analyzing historical trends and the aging of receivables. In its evaluation, the Company considers other factors including: 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 Company's management believes is sufficient to cover potential losses. However, actual collections could differ from the Company's 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. 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 Company's carrying value of goodwill is the excess 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 Accounting Standards Codification ("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 2017, 2016 and 2015, the Company elected to implement Step 0 and was not required to conduct the remaining two step analysis. The results of the Company's 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 were no impairments for the years ended December 31, 2017, 2016 or 2015. |
Intangible Assets | Intangible Assets The Company's 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 twenty-five 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 charge 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 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 over which 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. |
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. The Company has classified the debt issuance costs as current portion of long-term debt or long-term debt, less current portion as of December 31, 2017 and 2016. |
Workers' Compensation Program | Workers' Compensation Program The Company's workers' compensation insurance program has a $ 0.4 12.6 12.8 0.5 0.7 |
Interest Income | Interest Income Illinois law 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 Consolidated Statements of Income as interest income. For the year ended December 31, 2017, the Company did not receive any prompt payment interest. For the year ended December 31, 2016, the Company received $ 2.8 did not earn or receive |
Interest Expense | Interest Expense The Company's interest expense consists of interest and unused credit line fees on its credit facilities, interest on its capital lease obligations, and amortization and write-off of debt issuance costs, which is reported in the statement of income when incurred. |
Other Income | Other Income Other income consisted of income distributions received from investments in joint ventures. The Company accounted for this income in accordance with ASC Topic 325, "Investments—Other." The Company recognized the net accumulated earnings only to the extent distributed by the joint ventures on the date received. The Company subsequently sold these equity investments on October 1, 2017 (see Note 3). |
Income Tax Expenses | 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 Company's 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. As a result of the reduction in the U.S. corporate income tax rate from 35.0 21.0 $0.9 $0.3 In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 allows for simplification of several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under ASU 2016-09, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. ASU 2016-09 also requires recognition of excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. ASU 2016-09 further permits the withholding of an amount up to employees' maximum individual tax rate in the relevant jurisdiction without resulting in a liability classification. ASU 2016-09 also requires any excess tax benefits be classified along with other income tax cash flows as an operating activity and cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity. The Company adopted this standard on January 1, 2017 on a prospective basis. As a result, for the year ended December 31, 2017, the Company recorded an excess tax benefit of $0.1 The Company recognizes interest and penalties accrued related to uncertain tax positions in interest expense and penalties within operating expenses on the Consolidated Statements of Income. |
Stock-Based Compensation | Stock-based Compensation The Company currently has one Stock Compensation ." Under the 2017 Plan, compensation expense is recognized on a straight-line basis over the vesting period of the equity awards based on the grant date fair value of the options and restricted stock awards. From October 28, 2009 to December 31, 2016, the Company utilized the Enhanced Hull-White Trinomial Model to value the Company's options. Beginning January 1, 2017, the Company began utilizing the Black-Scholes Option Pricing Model to value the Company's options, as the Company believes it is a more widely accepted and understood valuation 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 the Company's 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. |
Diluted Net Income Per Common Share | Diluted Net Income Per Common Share Diluted 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 Company's outstanding securities that may potentially dilute the common stock are stock options and restricted stock awards. Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2017 were approximately 479,000 101,000 143,000 52,000 Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2016 were approximately 405,000 30,000 103,000 27,000 Included in the Company's calculation of diluted earnings per share for the year ended December 31, 2015 were approximately 650,000 40,000 89,000 6,000 |
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. The Company's critical accounting estimates include the following areas: the allowance for doubtful accounts, reserve for self-insurance claims, accounting for stock-based compensation, accounting for income taxes, business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements The Company's financial instruments consist of cash, accounts receivable, payables and debt. The carrying amounts reported on the Company's 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 Company's long-term debt with variable interest rates approximates fair value based on instruments with similar terms using level 2 inputs as defined under ASC Topic 820 " Fair Value Measurement ." The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to goodwill, if required, and indefinite-lived intangible assets and also when determining the fair value of contingent consideration, if applicable. To determine the fair value in these situations, the Company uses Level 3 inputs, under ASC Topic 820 and defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions, 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. |
Going Concern | Going Concern In connection with the preparation of the financial statements for the years ended December 31, 2017 and 2016, the Company conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity's ability to continue as a going concern within one year after the date of the issuance, or the date of availability, of the financial statements to be issued. The evaluation concluded that there did not appear to be evidence of substantial doubt of the entity's ability to continue as a going concern. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers (Topic 606) ," which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in GAAP. During 2017, the Company completed its assessment with assistance from outside resources to prepare specific contract analysis and document policy changes. The Company also reviewed its contract and revenue streams and implemented system enhancements. Under ASU 2014-09, the timing and measurement of revenue for the Company's customers is similar to its current revenue recognition model due to the structure of payor contracts which consists of a fixed reimbursement rate that is deemed earned upon completion of a defined service. The Company anticipates that for periods subsequent to adoption, the majority of what is currently classified as bad debt expense under operating expenses will be treated as an implicit price concession factored into net revenue, consistent with the intent of the standard. As a result, there will be a decrease in gross profit for periods subsequent to the adoption as compared to prior periods with no change to operating income or net income. The new standard also requires enhanced disclosures related to the disaggregation of revenue, information about contract balances, and other disclosures about contracts with customers, including revenue recognition policies to identify performance obligations and significant judgments in measurement and recognition. The Company adopted the standard on January 1, 2018 using the modified retrospective approach and the adoption did not result in a material cumulative adjustment. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU 2016-02 will require lessees to recognize most leases on their balance sheets as liabilities, with corresponding "right-of-use" assets and is effective for annual reporting periods beginning after December 15, 2018, subject to early adoption. For income statement recognition purposes, leases will be classified as either a finance or an operating lease. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Upon initial evaluation, the Company believes that the new standard will have a material impact on its Consolidated Balance Sheets but it will not affect its liquidity. It has been determined that the Company will need to secure new software to account for the change in accounting for leases and is currently reviewing the software options available. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This standard amends and adjusts how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and will require adoption on a retrospective basis unless impracticable. If impracticable the Company would be required to apply the amendments prospectively as of the earliest date possible. The Company is currently evaluating the impact that ASU 2016-15 will have on its statement of cash flows but does not expect it to have a material impact. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on the current Step 1). ASU 2017-04 is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company is currently evaluating the provisions of ASU 2017-04 to determine how its goodwill impairment testing will be impacted and whether it may elect to adopt ASU 2017-04 prior to the stated effective date. In May 2017, the FASB issued ASU 2017-09, " Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This pronouncement is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company is evaluating the impact of the adoption of this guidance on its financial statements but does not expect it to have a material impact. |
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 including the reporting of provision for doubtful accounts as a separate line item on the Consolidated Statements of Income. These reclassifications have no effect on the reported net income for the years ended December 31, 2017, 2016 and 2015. |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | 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 |
Correction to Prior Period Fi29
Correction to Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Correction to Prior Period Financial Statements [Abstract] | |
Consolidated Balance Sheet as of December 31, 2016 | As Previously As Reported Corrections Revised Deferred tax asset, net $ 3,153 $ 202 $ 3,355 Goodwill 73,906 (1,218 ) 72,688 Intangible assets, net of accumulated amortization 15,413 (150 ) 15,263 Total assets $ 231,030 $ (1,166 ) $ 229,864 Total liabilities 72,102 — 72,102 Total stockholders' equity 158,928 (1,166 ) 157,762 Total liabilities and stockholders' equity $ 231,030 $ (1,166 ) $ 229,864 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Schedule of Net Service Revenues and Earnings Attributable to Discontinued Operations | 2017 2016 2015 (Amounts in Thousands) Net service revenues $ — $ — $ — Income before income taxes 245 163 448 Income tax expense 98 66 178 Net income from discontinued operations $ 147 $ 97 $ 270 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sun Cities Homecare [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 1,103 Identifiable intangible assets 682 Accounts receivable 240 Cash 321 Other assets 10 Accrued liabilities (86 ) Accounts payable (14 ) Total purchase price allocation $ 2,256 |
Options Home Care [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 16,754 Identifiable intangible assets 5,324 Accounts receivable 995 Cash 205 Other assets 41 Accrued liabilities (695 ) Total purchase price allocation $ 22,624 |
South Shore Home Health Service, Inc and Acaring Home Care, LLC [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 5,265 Identifiable intangible assets 9,957 Accounts receivable 6,807 Other current assets 858 Accrued liabilities (1,593 ) Accounts payable (1,268 ) Total purchase price allocation $ 20,026 |
Five Points Healthcare of Virginia, LLC ("Five Points") [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 2,885 Identifiable intangible assets 920 Accounts receivable 472 Accrued liabilities (155 ) Accounts payable (7 ) Total purchase price allocation $ 4,115 |
Priority Home Health Care, Inc [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 1,862 Identifiable intangible assets 1,930 Accounts receivable 951 Furniture, fixtures and equipment 58 Other current assets 8 Accrued liabilities (339 ) Accounts payable (220 ) Total purchase price allocation $ 4,250 |
Sun Cities And Option Home Care [Member] | |
Business Acquisition [Line Items] | |
Unaudited Pro Forma Condensed Consolidated Income Statement Information | For the Years Ended December 31, (Amounts in Thousands) 2017 2016 Net service revenues $ 441,858 $ 425,704 Operating income from continuing operations 28,103 15,575 Net income from continuing operations 15,010 12,196 Earnings from discontinued operations, net of tax 147 97 Net income $ 15,157 $ 12,293 Net income per common share Basic income per share Continuing operations $ 1.31 $ 1.08 Discontinued operations 0.01 0.01 Basic income per share $ 1.32 $ 1.09 Diluted income per share Continuing operations $ 1.29 $ 1.07 Discontinued operations 0.01 0.01 Diluted income per share $ 1.30 $ 1.08 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property And Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2017 2016 (Amounts in Thousands) Computer equipment $ 2,770 $ 3,807 Furniture and equipment 3,392 3,146 Transportation equipment 152 898 Leasehold improvements 2,749 3,551 Computer software 3,269 5,419 12,332 16,821 Less: accumulated depreciation and amortization (4,843 ) (10,173 ) $ 7,489 $ 6,648 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Summary of Goodwill and Related Adjustments | Goodwill (Amounts in Thousands) Goodwill, at December 31, 2015 $ 67,626 Additions for acquisitions 5,265 Adjustments to previously recorded goodwill (203 ) Goodwill, at December 31, 2016 72,688 Additions for acquisitions 17,857 Adjustments to previously recorded goodwill (206 ) Goodwill, at December 31, 2017 $ 90,339 |
Schedule of Carrying Amount and Accumulated Amortization of Intangible Asset | Customer Trade and referral names and Non-competition relationships trademarks agreements Total (Amounts in Thousands) Gross balance at January 1, 2016 $ 29,872 $ 8,161 $ 2,098 $ 40,131 Additions for acquisitions 4,800 5,100 57 9,957 Accumulated amortization (26,766 ) (6,296 ) (1,763 ) (34,825 ) Net Balance at December 31, 2016 7,906 6,965 392 15,263 Gross balance at January 1, 2017 34,672 13,261 2,155 50,088 Other (281 ) — — (281 ) Additions for acquisitions 4,626 1,380 — 6,006 Accumulated amortization (29,147 ) (8,198 ) (1,872 ) (39,217 ) Net Balance at December 31, 2017 $ 9,870 $ 6,443 $ 283 $ 16,596 |
Schedule of Future Amortization of Intangible Assets | Total (Amount in For the year ended December 31, Thousands) 2018 $ 4,919 2019 3,662 2020 2,345 2021 1,925 2022 965 Thereafter 2,780 Total $ 16,596 |
Details of Certain Balance Sh34
Details of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Details of Certain Balance Sheet Accounts [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2017 2016 (Amounts in Thousands) Prepaid health insurance $ 2,901 $ 2,238 Prepaid workers' compensation and liability insurance 1,332 1,190 Prepaid rent 555 568 Workers' compensation insurance receivable 543 747 Other 3,048 1,255 $ 8,379 $ 5,998 |
Schedule of Accrued Expenses | December 31, 2017 2016 (Amounts in Thousands) Accrued payroll $ 19,783 $ 17,509 Accrued workers' compensation insurance 12,574 12,823 Accrued health insurance (1) 6,471 4,092 Indemnification reserve (2) 174 419 Accrued payroll taxes 1,065 1,747 Accrued professional fees 1,312 1,485 Accrued severance 562 1,326 Accrued restructuring (3) 1,077 1,786 Other 1,782 1,416 $ 44,800 $ 42,603 (1) The Company provides health insurance coverage to qualified union employees providing personal care 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 Company's 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 $2.3 million and $2.2 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2017 and 2016, respectively. (2) As a condition of the sale of the Home Health Business to subsidiaries of LHCG the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. The Company has estimated a total of $0.2 million for billing adjustments for 2013 and 2012 services which may be subject to Medicare audits. For the years ended December 31, 2017 and 2016, the Company reduced the indemnification reserve accrual by the amounts accrued for periods no longer subject to Medicare audits of $0.2 million and $0.2 million, respectively. This amount is reflected as a reduction in general and administrative expense of discontinued operations. (3) Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016 and unused contact center office space. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt | December 31, December 31, 2017 2016 (Amounts in Thousands) Term loan under the new credit facility $ 44,438 $ — Term loan under the terminated credit facility — 24,063 Capital leases 1,002 2,433 Less unamortized issuance costs (2,481 ) (1,483 ) Total $ 42,959 $ 25,013 Less current maturities (3,099 ) (2,531 ) Long-term debt $ 39,860 $ 22,482 |
Schedule of Leased Property Under Capital Leases | Asset Balances at December 31, 2017 Classes of Property (Amounts in Thousands) Leasehold improvements $ 1,485 Furniture and equipment 868 Computer equipment 635 Computer software 303 Total 3,291 Less: accumulated depreciation (1,333 ) $ 1,958 |
Schedule of Future Minimum Payments for Capital Leases | Capital Lease (Amounts In Thousands) 2018 $ 1,026 2019 30 Total minimum lease payments 1,056 Less: amount representing estimated executory costs (such as taxes, maintenance and insurance), including profit thereon, included in total minimum lease payments (30 ) Net minimum lease payments 1,026 Less: amount representing interest (1) (24 ) Present value of net minimum lease payments (2) $ 1,002 _________________ (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. (2) Included in the balance sheet as $974.4 thousand of the current portion of long-term debt and $27.8 thousand of the long-term debt, less current portion. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Current and Deferred fFderal and State Income Tax Provision from Continuing Operations | December 31, 2017 2016 2015 (Amounts in Thousands) Current Federal $ 5,782 $ 4,400 $ 2,743 State 1,069 908 528 Deferred Federal 1,672 (1,147 ) 546 State 66 (167 ) 115 Provision for income taxes $ 8,589 $ 3,994 $ 3,932 |
Deferred Tax Assets And Liabilities | December 31, 2017 2016 (Amounts in Thousands) Deferred tax assets Long-term Accounts receivable allowances $ 2,917 $ 2,960 Accrued compensation 1,919 2,733 Accrued workers' compensation 3,274 4,854 Transaction costs 898 1,137 Reserves 47 169 Restructuring costs 293 718 Stock-based compensation 811 799 Other 138 524 Total long-term deferred tax assets 10,297 13,894 Deferred tax liabilities Long-term Goodwill and intangible assets (7,301 ) (9,506 ) Property and equipment (749 ) (552 ) Prepaid insurance (359 ) (478 ) Other (1 ) (3 ) Total long-term deferred tax liabilities (8,410 ) (10,539 ) Valuation allowance (286 ) — Total net deferred tax assets $ 1,601 $ 3,355 |
Reconciliation of Statutory Federal Tax Rate | December 31, 2017 2016 2015 Federal income tax at statutory rate 35.0 % 35.0 % 34.5 % State and local taxes, net of federal benefit 5.1 5.2 5.2 Jobs tax credits, net (6.1 ) (15.8 ) (11.1 ) Nondeductible permanent items 0.4 0.9 0.5 2017 Tax Reform Act, deferred tax assets rate changes 5.3 — — Other (0.7 ) (0.2 ) (3.4 ) Effective income tax rate 39.0 % 25.1 % 25.7 % |
Stock Options And Restricted 37
Stock Options And Restricted Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Options And Restricted Stock Awards [Abstract] | |
Summary of Stock Option Activity and Weighted Average Exercise Price | For The Year Ended December 31, 2017 Options Weighted (Amounts in Average Thousands) Exercise Price Outstanding, beginning of period 405 $ 19.71 Granted 154 34.32 Exercised (51 ) 22.60 Forfeited/Cancelled (29 ) 23.61 Outstanding, end of period 479 $ 23.91 |
Weighted-Average Estimated Fair Value of Employee Stock Options Granted | For the Year Ended December 31, 2017 2016 2015 Grants Grants Grants Weighted average fair value $ 12.97 $ 9.32 $ 9.18 Risk-free discount rate 1.67% 1.85% 1.70 2.02% 2.29 % Expected life 3.6 - 4.2 years 8.20 years 8.20 years Dividend yield — — — Volatility 47 % 47 % 47 % Expected turn-over rate N/A 2 % 2 % Expected exercise multiple N/A 2.2 2.2 |
Summary of Status of Unvested Restricted Stock Awards Outstanding | For The Year Ended December 31, 2017 Restricted Weighted Stock Average Awards Grant (Amounts in Date Fair Thousands) Value Unvested restricted stock awards, beginning of period 103 $ 20.84 Awarded 90 34.60 Vested (35 ) 21.07 Forfeited (15 ) 22.79 Unvested restricted stock awards, end of period 143 $ 29.30 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operating Leases [Abstract] | |
Schedule of Future Minimum Payments Exclusive of Taxes and Other Operating Expenses | Rent (Amount in Thousands) 2018 $ 3,155 2019 2,565 2020 1,948 2021 1,414 2022 981 Thereafter 2,237 Total $ 12,300 |
Severance and Restructuring (Ta
Severance and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Severance and Restructuring [Abstract] | |
Components of and Changes in Severance and Restructuring Accruals | Employee Termination Restructuring Costs and Other (Amounts in Thousands) Balance at December 31, 2015 $ — $ — Provision 3,230 4,786 Utilization (1,904 ) (3,000 ) Balance at December 31, 2016 1,326 1,786 Provision 1,038 627 Utilization (1,802 ) (1,336 ) Balance at December 31, 2017 $ 562 $ 1,077 |
Significant Payors (Tables)
Significant Payors (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Payors [Abstract] | |
Revenue Mix by Payor Type | Year Ended December 31, 2017 2016 2015 State, local and other governmental programs 64.2 % 70.4 % 77.7 % Managed care organizations 33.1 26.1 18.3 Private pay 2.1 2.4 3.0 Commercial insurance 0.6 1.1 1.0 100.0 % 100.0 % 100.0 % |
Percentage of Total Revenue by Geographic Location | % of Total Revenue for the Years Ended December, 31 State 2017 2016 2015 Illinois 52.6 % 53.6 % 59.5 % New York 13.7 12.9 — New Mexico 8.8 7.5 8.5 |
Unaudited Summarized Quarterl41
Unaudited Summarized Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Unaudited Summarized Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Results of Operations | Year Ended December 31, 2017 Year Ended December 31, 2016 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31 (Amounts and Shares in Thousands, Except Per Share Data) Net service revenues $ 111,958 $ 108,592 $ 103,559 $ 101,606 $ 103,657 $ 103,502 $ 100,927 $ 92,602 Gross profit 30,715 29,053 28,511 27,317 28,658 27,423 25,695 24,319 Operating income from continuing operations 7,550 5,807 5,921 6,961 7,693 2,495 4,394 653 Net income from continuing operations 3,094 3,408 2,700 4,259 7,471 1,699 2,600 157 Earnings from discontinued operations 147 — — — 97 — — — Net income $ 3,241 $ 3,408 $ 2,700 $ 4,259 $ 7,568 $ 1,699 $ 2,600 $ 157 Average shares outstanding: Basic 11,488 11,486 11,470 11,434 11,383 11,367 11,361 11,022 Diluted 11,638 11,631 11,622 11,581 11,494 11,417 11,385 11,178 Income per common share: Basic Continuing operations $ 0.27 $ 0.30 $ 0.24 $ 0.37 $ 0.66 $ 0.15 $ 0.23 $ 0.01 Discontinued operations 0.01 — — — 0.01 — — — Basic net income per share $ 0.28 $ 0.30 $ 0.24 $ 0.37 $ 0.67 $ 0.15 $ 0.23 $ 0.01 Diluted net income per share Continuing operations $ 0.27 $ 0.29 $ 0.23 $ 0.37 $ 0.65 $ 0.15 $ 0.23 $ 0.01 Discontinued operations 0.01 — — — 0.01 — — — Diluted net income per share $ 0.28 $ 0.29 $ 0.23 $ 0.37 $ 0.66 $ 0.15 $ 0.23 $ 0.01 |
Significant Accounting Polici42
Significant Accounting Policies (Narrative) (Details) shares in Thousands, $ in Thousands | Oct. 01, 2017 | Mar. 01, 2013 | Dec. 31, 2018 | Dec. 31, 2017USD ($)segmentstateitemshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)itemshares |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of reportable business segments | segment | 1 | |||||
Number of consumers | item | 34,000 | |||||
Number of offices | item | 116 | |||||
Number of states in which the company operates | state | 24 | |||||
Impairment of finite-lived intangible assets | $ 0 | $ 0 | $ 0 | |||
Deductible component of workers' compensation | 400 | |||||
Workers' compensation liability | 12,600 | 12,800 | ||||
Increase in workers' compensation liabilities | $ 500 | 700 | ||||
Interest income received | $ 2,800 | |||||
Statutory federal tax rate | 35.00% | 35.00% | 34.50% | |||
Deferred tax asset provisional income tax expense as a result of Tax Reform Act | $ 900 | |||||
Income tax expense (benefit) | 8,589 | $ 3,994 | $ 3,932 | |||
Number of stock incentive plans | item | 1 | |||||
Accounting Standards Update 2016-09 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Income tax expense (benefit) | 100 | |||||
Scenario, Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Statutory federal tax rate | 21.00% | |||||
Tax Reform Act [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Provisional valuation allowance amount as a result of Tax Reform Act | $ 300 | |||||
Stock Options [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of stock options included in calculation | shares | 479 | 405 | 650 | |||
Number of dilutive shares outstanding | shares | 101 | 30 | 40 | |||
Restricted Stock [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Shares of restricted stock awards included in calculation | shares | 143 | 103 | 89 | |||
Number of dilutive shares outstanding | shares | 52 | 27 | 6 | |||
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 Business [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity ownership percentage sold in joint venture | 10.00% | 90.00% |
Significant Accounting Polici43
Significant Accounting Policies (Estimated Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Minimum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Minimum [Member] | Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Maximum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Maximum [Member] | Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Correction to Prior Period Fi44
Correction to Prior Period Financial Statements (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Error Related to Calculation of Tax Benefits Not Applied to Reduce Goodwill [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Amount of error being corrected | $ 0.6 |
Error Related to Goodwill Not Reduced for Tax Benefits [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Amount of error being corrected | 0.7 |
Error Related to Disposal of State License Not Derecognized at Time of Sale [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Amount of error being corrected | 0.2 |
Error Related to Calculation of Deferred Taxes Associated with Stock-Based Compensation [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Amount of error being corrected | 0.2 |
Corrections [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Cumulative reduction in net income resulting from correcting these errors beginning in the year 2006 | 1.2 |
Cumulative effect of adjustments required to correct misstatements in financial statements years prior to 2015 | $ 1.2 |
Correction to Prior Period Fi45
Correction to Prior Period Financial Statements (Consolidated Balance Sheet as of December 31, 2016) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred tax assets, net | $ 1,601 | $ 3,355 | ||
Goodwill | 90,339 | 72,688 | $ 67,626 | |
Intangible assets, net of accumulated amortization | 16,596 | 15,263 | ||
Total assets | 267,110 | 229,864 | ||
Total liabilities | 92,030 | 72,102 | ||
Total stockholders' equity | 175,080 | 157,762 | $ 140,560 | $ 126,790 |
Total liabilities and stockholders' equity | $ 267,110 | 229,864 | ||
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred tax assets, net | 3,153 | |||
Goodwill | 73,906 | |||
Intangible assets, net of accumulated amortization | 15,413 | |||
Total assets | 231,030 | |||
Total liabilities | 72,102 | |||
Total stockholders' equity | 158,928 | |||
Total liabilities and stockholders' equity | 231,030 | |||
Corrections [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred tax assets, net | 202 | |||
Goodwill | (1,218) | |||
Intangible assets, net of accumulated amortization | (150) | |||
Total assets | (1,166) | |||
Total stockholders' equity | (1,166) | |||
Total liabilities and stockholders' equity | $ (1,166) |
Gain on Sale of Assets (Details
Gain on Sale of Assets (Details) $ in Thousands | Oct. 01, 2017USD ($)entity | Mar. 01, 2017USD ($)item | Dec. 31, 2017USD ($) |
Gain on sale of adult day services centers | $ 2,467 | ||
Illinois [Member] | |||
Number of adult day centers sold | item | 3 | ||
Proceeds from sale of adult day service centers | $ 2,400 | ||
Gain on sale of adult day services centers | $ 2,100 | ||
LHC Group, Inc. [Member] | |||
Equity ownership percentage sold in joint venture with LHCG | 10.00% | ||
Number of joint ventures where 10% membership interest is sold | entity | 2 | ||
Proceeds from the sale of investments in joint ventures | $ 1,300 | ||
Pre-tax gain from sale of the investments in joint ventures | $ 400 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Millions | Oct. 01, 2017 | Dec. 30, 2013USD ($)item | Mar. 01, 2013USD ($)stateitem | Mar. 31, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
LHC Group, Inc. [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Equity ownership percentage sold in joint venture | 10.00% | ||||||
Estimated billing adjustments for remittance payment | $ 0.2 | ||||||
Reduction of indemnification reserve accrual | 0.2 | $ 0.2 | |||||
Home Health Business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Equity ownership percentage sold in joint venture | 10.00% | 90.00% | |||||
Discontinued operation, cash consideration from sale of assets | $ 20 | ||||||
Discontinued operation, percentage of ownership retained | 10.00% | ||||||
Amount voluntarily remitted to government | $ 1.8 | ||||||
Estimated billing adjustments for remittance payment | 0.2 | ||||||
Reduction of indemnification reserve accrual | $ 0.2 | $ 0.2 | $ 0.4 | ||||
Number of home health agency sold | item | 19 | ||||||
Number of hospice agencies sold | item | 2 | ||||||
Number of states where assets of home health business sold | state | 5 | ||||||
Home Health Business [Member] | Pennsylvania [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued operation, cash consideration from sale of assets | $ 0.2 | ||||||
Number of home health agency sold | item | 1 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Net Service Revenues And Earnings Attributable To Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |||
Net service revenues | |||
Income before income taxes | 245 | 163 | 448 |
Income tax expense | 98 | 66 | 178 |
Net income from discontinued operations | $ 147 | $ 97 | $ 270 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) | Oct. 01, 2017USD ($) | Aug. 01, 2017USD ($)item | Feb. 23, 2016USD ($) | Feb. 05, 2016USD ($) | Nov. 09, 2015USD ($) | Jan. 01, 2015USD ($) | Jun. 01, 2014USD ($) | Dec. 01, 2013USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||
Net service revenues | $ 111,958,000 | $ 108,592,000 | $ 103,559,000 | $ 101,606,000 | $ 103,657,000 | $ 103,502,000 | $ 100,927,000 | $ 92,602,000 | $ 425,715,000 | $ 400,688,000 | $ 336,815,000 | |||||||||
Sun Cities Homecare [Member] | New Mexico [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price for business acquisition | $ 2,300,000 | |||||||||||||||||||
Acquisition related costs | $ 100,000 | |||||||||||||||||||
Net service revenues | 700,000 | |||||||||||||||||||
Net income (loss) from continuing operations | 14,800 | |||||||||||||||||||
Options Home Care [Member] | New Mexico [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price for business acquisition | $ 22,600,000 | |||||||||||||||||||
Acquisition related costs | $ 700,000 | |||||||||||||||||||
Net service revenues | 8,000,000 | |||||||||||||||||||
Net income (loss) from continuing operations | 500,000 | |||||||||||||||||||
Options Home Care [Member] | Minimum [Member] | New Mexico [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of counties under personal care services | item | 20 | |||||||||||||||||||
Lutheran Social Services of Illinois ("LSSI") [Member] | Illinois [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price for business acquisition | $ 100,000 | |||||||||||||||||||
Net service revenues | 200,000 | 1,000,000 | ||||||||||||||||||
Net income (loss) from continuing operations | 49,300 | 100,000 | ||||||||||||||||||
South Shore Home Health Service, Inc and Acaring Home Care, LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price for business acquisition | $ 20,000,000 | |||||||||||||||||||
Acquisition related costs | $ 1,300,000 | |||||||||||||||||||
Net service revenues | 58,400,000 | 51,700,000 | ||||||||||||||||||
Net income (loss) from continuing operations | 200,000 | 800,000 | ||||||||||||||||||
Five Points Healthcare of Virginia, LLC ("Five Points") [Member] | Virginia [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisitions of business cash consideration | $ 4,100,000 | |||||||||||||||||||
Acquisition related costs | $ 400,000 | |||||||||||||||||||
Net service revenues | 2,900,000 | 4,100,000 | 700,000 | |||||||||||||||||
Net income (loss) from continuing operations | 300,000 | 30,600 | 18,100 | |||||||||||||||||
Priority Home Health Care, Inc [Member] | Ohio [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisitions of business cash consideration | $ 4,300,000 | |||||||||||||||||||
Acquisition related costs | $ 500,000 | |||||||||||||||||||
Net service revenues | 6,400,000 | 7,500,000 | 9,000,000 | |||||||||||||||||
Net income (loss) from continuing operations | $ 100,000 | $ 300,000 | 100,000 | |||||||||||||||||
Cura Partners, LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition, contingent earn-out obligation | $ 1,000,000 | $ 200,000 | ||||||||||||||||||
Business acquisition, contingent earn-out obligation, present value | $ 1,200,000 | |||||||||||||||||||
Coordinated Home Health Care, LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition, contingent earn-out obligation | $ 1,100,000 | $ 1,300,000 | 1,900,000 | |||||||||||||||||
Business acquisition, contingent earn-out obligation, present value | $ 2,300,000 | |||||||||||||||||||
Coordinated Home Health Care, LLC [Member] | New Mexico [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Current portion of contingent earn-out obligation | $ 1,000,000 |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 01, 2017 | Aug. 01, 2017 | Dec. 31, 2016 | Feb. 05, 2016 | Dec. 31, 2015 | Nov. 09, 2015 | Jan. 01, 2015 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 90,339 | $ 72,688 | $ 67,626 | |||||
Sun Cities Homecare [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,103 | |||||||
Identifiable intangible assets | 682 | |||||||
Accounts receivable | 240 | |||||||
Cash | 321 | |||||||
Other assets | 10 | |||||||
Accrued liabilities | (86) | |||||||
Accounts payable | (14) | |||||||
Total purchase price allocation | $ 2,256 | |||||||
Options Home Care [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 16,754 | |||||||
Identifiable intangible assets | 5,324 | |||||||
Accounts receivable | 995 | |||||||
Cash | 205 | |||||||
Other assets | 41 | |||||||
Accrued liabilities | (695) | |||||||
Total purchase price allocation | $ 22,624 | |||||||
South Shore Home Health Service, Inc and Acaring Home Care, LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 5,265 | |||||||
Identifiable intangible assets | 9,957 | |||||||
Accounts receivable | 6,807 | |||||||
Other assets | 858 | |||||||
Accrued liabilities | (1,593) | |||||||
Accounts payable | (1,268) | |||||||
Total purchase price allocation | $ 20,026 | |||||||
Five Points Healthcare of Virginia, LLC ("Five Points") [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 2,885 | |||||||
Identifiable intangible assets | 920 | |||||||
Accounts receivable | 472 | |||||||
Accrued liabilities | (155) | |||||||
Accounts payable | (7) | |||||||
Total purchase price allocation | $ 4,115 | |||||||
Priority Home Health Care, Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,862 | |||||||
Identifiable intangible assets | 1,930 | |||||||
Accounts receivable | 951 | |||||||
Other assets | 8 | |||||||
Furniture, fixtures and equipment | 58 | |||||||
Accrued liabilities | (339) | |||||||
Accounts payable | (220) | |||||||
Total purchase price allocation | $ 4,250 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Condensed Consolidated Income Statement Information) (Details) - Sun Cities And Option Home Care [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net service revenues | $ 441,858 | $ 425,704 |
Operating income from continuing operations | 28,103 | 15,575 |
Net income from continuing operations | 15,010 | 12,196 |
Earnings from discontinued operations, net of tax | 147 | 97 |
Net income | $ 15,157 | $ 12,293 |
Basic income per share, Continuing operations | $ 1.31 | $ 1.08 |
Basic income per share, Discontinued operations | 0.01 | 0.01 |
Basic income per share | 1.32 | 1.09 |
Diluted income per share, Continuing operations | 1.29 | 1.07 |
Diluted income per share, Discontinued operations | 0.01 | 0.01 |
Diluted income per share | $ 1.30 | $ 1.08 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 12,332 | $ 16,821 | |
Depreciation and amortization | 6,663 | 6,647 | $ 4,717 |
Internally Developed Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,000 | ||
Computer Equipment and Software and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,000 | $ 1,700 | $ 1,700 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,332 | $ 16,821 |
Less: accumulated depreciation and amortization | (4,843) | (10,173) |
Property and equipment | 7,489 | 6,648 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,770 | 3,807 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,392 | 3,146 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 152 | 898 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,749 | 3,551 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,269 | $ 5,419 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill | $ 90,339 | $ 72,688 | $ 67,626 |
Amortization expense | $ 4,700 | $ 4,900 | $ 3,000 |
Weighted average remaining lives of identifiable intangible assets | 6 years 6 months | ||
Minimum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful lives | 2 years | ||
Maximum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful lives | 25 years |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Summary of Goodwill and Related Adjustments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets [Abstract] | ||
Goodwill, at Beginning of Period | $ 72,688 | $ 67,626 |
Additions for Acquisitions | 17,857 | 5,265 |
Adjustments to previously recorded goodwill | (206) | (203) |
Goodwill, at End of Period | $ 90,339 | $ 72,688 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets (Schedule of Carrying Amount and Accumulated Amortization of Intangible Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | $ 50,088 | $ 40,131 |
Other | (281) | |
Additions for acquisitions | 6,006 | 9,957 |
Accumulated amortization | (39,217) | (34,825) |
Net Balance | 16,596 | 15,263 |
Customer And Referral Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 34,672 | 29,872 |
Other | (281) | |
Additions for acquisitions | 4,626 | 4,800 |
Accumulated amortization | (29,147) | (26,766) |
Net Balance | 9,870 | 7,906 |
Trade Names And Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 13,261 | 8,161 |
Additions for acquisitions | 1,380 | 5,100 |
Accumulated amortization | (8,198) | (6,296) |
Net Balance | 6,443 | 6,965 |
Non-competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | 2,155 | 2,098 |
Additions for acquisitions | 57 | |
Accumulated amortization | (1,872) | (1,763) |
Net Balance | $ 283 | $ 392 |
Goodwill And Intangible Asset57
Goodwill And Intangible Assets (Schedule of Future Amortization of Intangible Assets) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Impairment of Intangible Assets (Excluding Goodwill) [Abstract] | |
2,018 | $ 4,919 |
2,019 | 3,662 |
2,020 | 2,345 |
2,021 | 1,925 |
2,022 | 965 |
Thereafter | 2,780 |
Total | $ 16,596 |
Details Of Certain Balance Sh58
Details Of Certain Balance Sheet Accounts (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details of Certain Balance Sheet Accounts [Abstract] | ||
Deductible component of workers compensation program | $ 0.4 | |
Letters of credit secure compensation program | $ 11.8 | $ 16.7 |
Details of Certain Balance Sh59
Details of Certain Balance Sheet Accounts (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details of Certain Balance Sheet Accounts [Abstract] | ||
Prepaid health insurance | $ 2,901 | $ 2,238 |
Prepaid workers' compensation and liability insurance | 1,332 | 1,190 |
Prepaid rent | 555 | 568 |
Workers' compensation insurance receivable | 543 | 747 |
Other | 3,048 | 1,255 |
Prepaid expenses and other current assets | $ 8,379 | $ 5,998 |
Details of Certain Balance Sh60
Details of Certain Balance Sheet Accounts (Schedule of Accrued Expenses) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | ||
Accrued payroll | $ 19,783 | $ 17,509 | |
Accrued workers' compensation insurance | 12,574 | 12,823 | |
Accrued health insurance | [1] | 6,471 | 4,092 |
Indemnification reserve | [2] | 174 | 419 |
Accrued payroll taxes | 1,065 | 1,747 | |
Accrued professional fees | 1,312 | 1,485 | |
Accrued severance | 562 | 1,326 | |
Accrued restructuring | [3] | 1,077 | 1,786 |
Other | 1,782 | 1,416 | |
Accrued expenses | $ 44,800 | 42,603 | |
Contributions due after fund received, period | 5 days | ||
Illinois [Member] | |||
Health insurance reimbursement and contribution due | $ 2,300 | $ 2,200 | |
Number of adult day centers closed | item | 3 | ||
LHC Group, Inc. [Member] | |||
Reduction of indemnification reserve accrual | 200 | $ 200 | |
Estimated billing adjustments for remittance payment | $ 200 | ||
[1] | The Company provides health insurance coverage to qualified union employees providing personal care 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 Company's 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 $2.3 million and $2.2 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2017 and 2016, respectively. | ||
[2] | As a condition of the sale of the Home Health Business to subsidiaries of LHCG the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing of the sale. The Company has estimated a total of $0.2 million for billing adjustments for 2013 and 2012 services which may be subject to Medicare audits. For the years ended December 31, 2017 and 2016, the Company reduced the indemnification reserve accrual by the amounts accrued for periods no longer subject to Medicare audits of $0.2 million and $0.2 million, respectively. This amount is reflected as a reduction in general and administrative expense of discontinued operations. | ||
[3] | Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016 and unused contact center office space. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Thousands | May 08, 2017USD ($) | Oct. 01, 2016USD ($) | May 24, 2016 | May 23, 2016 | Jul. 31, 2017USD ($) | May 07, 2017USD ($) | Dec. 31, 2017USD ($)agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 13, 2015USD ($) | Sep. 11, 2014USD ($) | Jul. 12, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from line of credit | $ 20,000 | $ 27,000 | ||||||||||
Repayment of credit facility | 30,000 | |||||||||||
Repayment of accrued interest | $ 2,261 | 2,322 | $ 786 | |||||||||
First American Commercial Bancorp [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of capital lease agreements | agreement | 3 | |||||||||||
Capital lease agreements term | 48 months | |||||||||||
Capital lease agreements amount | $ 400 | $ 1,400 | $ 2,700 | |||||||||
Meridian Leasing Corporation [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital lease agreements term | 25 months | |||||||||||
Capital lease agreements amount | $ 600 | |||||||||||
Debt instrument stated interest rate | 11.10% | |||||||||||
Minimum [Member] | First American Commercial Bancorp [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument stated interest rate | 3.00% | |||||||||||
Maximum [Member] | First American Commercial Bancorp [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument stated interest rate | 3.60% | |||||||||||
New Credit Facility [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | $ 250,000 | |||||||||||
Credit facility maturity period | 5 years | |||||||||||
Debt issuance costs | 2,800 | |||||||||||
New Credit Facility [Member] | Revolving Credit Loan [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | 125,000 | |||||||||||
Proceeds from line of credit | $ 30,000 | |||||||||||
Line of credit outstanding amount | $ 105,100 | |||||||||||
New Credit Facility [Member] | Term Loan [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument stated interest rate | 3.86% | |||||||||||
Maximum aggregate loan amount available | 45,000 | |||||||||||
Line of credit outstanding amount | $ 44,400 | |||||||||||
New Credit Facility [Member] | Delayed Draw Term Loan [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | 80,000 | |||||||||||
New Credit Facility [Member] | Uncommitted Incremental Term Loan [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | $ 100,000 | |||||||||||
New Credit Facility [Member] | Minimum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee charged on unused portion of revolving credit facility | 0.25% | |||||||||||
New Credit Facility [Member] | Maximum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum ratio used to determine availability of additional draws | 4.25% | |||||||||||
Fee charged on unused portion of revolving credit facility | 0.50% | |||||||||||
New Credit Facility [Member] | One Month LIBOR [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 1.00% | |||||||||||
New Credit Facility [Member] | One Month LIBOR [Member] | Minimum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 0.00% | |||||||||||
New Credit Facility [Member] | Federal Funds Rate [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 0.50% | |||||||||||
Terminated Senior Secured Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | $ 125,000 | |||||||||||
Repayment of credit facility | $ 23,800 | |||||||||||
Repayment of accrued interest | 100 | |||||||||||
Write off of unamortized debt issuance cost | $ 1,300 | |||||||||||
Specified advance multiple used to determine funds availability under credit facility | 3.75 | 3.25 | ||||||||||
Maximum permitted senior leverage ratio | 4 | 3.50 | ||||||||||
Debt instrument, maturity date | Nov. 10, 2020 | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | 100,000 | |||||||||||
Proceeds from line of credit | 20,000 | |||||||||||
Line of credit outstanding amount | 24,100 | |||||||||||
Line of credit facility remaining amount | $ 79,700 | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Delayed Draw Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | 25,000 | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Uncommitted Incremental Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | 50,000 | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Letters of Credit [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum aggregate loan amount available | $ 35,000 | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Minimum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee charged on unused portion of revolving credit facility | 0.25% | |||||||||||
Terminated Senior Secured Credit Facility [Member] | Maximum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee charged on unused portion of revolving credit facility | 0.50% | |||||||||||
Basis for Availability of Funds Debt Covenant One [Member] | Terminated Senior Secured Credit Facility [Member] | Minimum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 2.00% | |||||||||||
Basis for Availability of Funds Debt Covenant One [Member] | Terminated Senior Secured Credit Facility [Member] | Maximum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 2.50% | |||||||||||
Basis for Availability of Funds Debt Covenant One [Member] | Terminated Senior Secured Credit Facility [Member] | One Month LIBOR [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.00% | |||||||||||
Basis for Availability of Funds Debt Covenant One [Member] | Terminated Senior Secured Credit Facility [Member] | Federal Funds Rate [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 0.50% | |||||||||||
Basis for Availability of Funds Debt Covenant Two [Member] | Terminated Senior Secured Credit Facility [Member] | Minimum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.00% | |||||||||||
Basis for Availability of Funds Debt Covenant Two [Member] | Terminated Senior Secured Credit Facility [Member] | Maximum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.50% | |||||||||||
Basis for Availability of Funds Debt Covenant Three [Member] | Terminated Senior Secured Credit Facility [Member] | Minimum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.00% | |||||||||||
Basis for Availability of Funds Debt Covenant Three [Member] | Terminated Senior Secured Credit Facility [Member] | Maximum [Member] | Revolving Credit Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.50% | |||||||||||
Restriction on Dividends [Member] | New Credit Facility [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate amount of dividends and distributions | $ 5,000 | |||||||||||
Restriction on Ability to Consummate Acquisitions [Member] | New Credit Facility [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum single acquisition price | 60,000 | |||||||||||
Maximum total purchase price allowed | $ 80,000 | |||||||||||
Based On Applicable Senior Leverage Ratio [Member] | New Credit Facility [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 2.25% | |||||||||||
Based On Applicable Senior Leverage Ratio [Member] | New Credit Facility [Member] | Minimum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 1.50% | |||||||||||
Based On Applicable Senior Leverage Ratio [Member] | New Credit Facility [Member] | Maximum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 2.25% | |||||||||||
Based On Applicable Leverage Ratio [Member] | New Credit Facility [Member] | Minimum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 2.50% | |||||||||||
Based On Applicable Leverage Ratio [Member] | New Credit Facility [Member] | Maximum [Member] | Capital One, N.A. [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate margin | 3.25% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less unamortized issuance costs | $ (2,481) | $ (1,483) |
Total | 42,959 | 25,013 |
Less current maturities | (3,099) | (2,531) |
Long-term debt | 39,860 | 22,482 |
Term Loan [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 44,438 | |
Term Loan [Member] | Terminated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 24,063 | |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 1,002 | $ 2,433 |
Long-Term Debt (Schedule of Lea
Long-Term Debt (Schedule of Leased Property Under Capital Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leased Assets [Line Items] | |
Leased property under capital leases | $ 3,291 |
Less: Accumulated Depreciation and Amortization | (1,333) |
Net Leased Property Under Capital Leases | 1,958 |
Leasehold Improvements [Member] | |
Capital Leased Assets [Line Items] | |
Leased property under capital leases | 1,485 |
Furniture and Equipment [Member] | |
Capital Leased Assets [Line Items] | |
Leased property under capital leases | 868 |
Computer Equipment [Member] | |
Capital Leased Assets [Line Items] | |
Leased property under capital leases | 635 |
Computer Software [Member] | |
Capital Leased Assets [Line Items] | |
Leased property under capital leases | $ 303 |
Long-Term Debt (Schedule of Fut
Long-Term Debt (Schedule of Future Minimum Payments for Capital Leases) (Details) | Dec. 31, 2017USD ($) | |
Long-Term Debt [Abstract] | ||
2,018 | $ 1,026,000 | |
2,019 | 30,000 | |
Total minimum lease payments | 1,056,000 | |
Less: amount representing estimated executory costs (such as taxes, maintenance and insurance), including profit thereon, included in total minimum lease payments | (30,000) | |
Net minimum lease payments | 1,026,000 | |
Less: amount representing interest | (24,000) | [1] |
Present value of net minimum lease payments | 1,002,000 | [2] |
Current obligations under capital leases | 974,400 | |
Noncurrent obligations under capital leases | $ 27,800 | |
[1] | Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. | |
[2] | Included in the balance sheet as $974.4 thousand of the current portion of long-term debt and $27.8 thousand of the long-term debt, less current portion. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory federal tax rate | 35.00% | 35.00% | 34.50% |
U.S Federal authorities [Member] | Minimum [Member] | |||
Open tax examination year | 2,014 | ||
U.S Federal authorities [Member] | Maximum [Member] | |||
Open tax examination year | 2,017 | ||
State authorities [Member] | Minimum [Member] | |||
Open tax examination year | 2,013 | ||
State authorities [Member] | Maximum [Member] | |||
Open tax examination year | 2,017 |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Federal and State Income Tax Provision from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Federal | $ 5,782 | $ 4,400 | $ 2,743 |
State | 1,069 | 908 | 528 |
Deferred | |||
Federal | 1,672 | (1,147) | 546 |
State | 66 | (167) | 115 |
Provision for income taxes | $ 8,589 | $ 3,994 | $ 3,932 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
Deferred Tax Assets, Accounts receivable allowances | $ 2,917 | $ 2,960 |
Deferred Tax Assets, Accrued compensation | 1,919 | 2,733 |
Deferred Tax Assets, Accrued workers' compensation | 3,274 | 4,854 |
Deferred Tax Assets, Transactions Costs | 898 | 1,137 |
Deferred Tax Assets, Reserves | 47 | 169 |
Deferred Tax Assets, Restructuring costs | 293 | 718 |
Deferred Tax Assets, Stock-based compensation | 811 | 799 |
Deferred Tax Assets, Other | 138 | 524 |
Total long-term deferred tax assets | 10,297 | 13,894 |
Deferred Tax Liabilities, Goodwill and intangible assets | (7,301) | (9,506) |
Deferred Tax Liabilities, Property and equipment | (749) | (552) |
Deferred Tax Liabilities, Prepaid insurance | (359) | (478) |
Deferred Tax Liabilities, Other | (1) | (3) |
Total long-term deferred tax liabilities | (8,410) | (10,539) |
Valuation allowance | (286) | |
Total net deferred tax assets | $ 1,601 | $ 3,355 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Federal Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal income tax at statutory rate | 35.00% | 35.00% | 34.50% |
State and local taxes, net of federal benefit | 5.10% | 5.20% | 5.20% |
Jobs tax credits, net | (6.10%) | (15.80%) | (11.10%) |
Nondeductible permanent items | 0.40% | 0.90% | 0.50% |
2017 Tax Reform Act, deferred tax assets rate changes | 5.30% | ||
Other | (0.70%) | (0.20%) | (3.40%) |
Effective income tax rate | 39.00% | 25.10% | 25.70% |
Stock Options And Restricted 69
Stock Options And Restricted Stock Awards (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
2009 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of stock awards authorized for issuance | 1,500,000 | ||
2017 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of stock awards authorized for issuance | 1,182,270 | ||
Share-based compensation number of shares available for grant | 1,100,000 | ||
Stock options or stock appreciation rights "SARs" [Member] | 2017 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of stock awards authorized for issuance | 500,000 | ||
Awards denominated in shares of common stock [Member] | 2017 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of stock awards authorized for issuance | 300,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $ 1.1 | $ 0.6 | $ 0.6 |
Unrecognized compensation cost | $ 2.9 | ||
Unrecognized compensation cost recognition period | 2 years 4 months 24 days | ||
Intrinsic value on vested stock options | $ 2 | ||
Intrinsic value on outstanding stock options | 3.2 | ||
Intrinsic value on exercised stock options | $ 0.5 | 3.9 | 0.9 |
Share-based compensation number of shares vested | 113,044 | ||
Share-based compensation number of shares unvested | 365,526 | ||
Stock Options [Member] | 2017 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price of stock options outstanding, lower range limit | $ 4.62 | ||
Exercise price of stock options outstanding, upper range limit | $ 34.85 | ||
Stock Options [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, expiration period | 10 years | ||
Stock Options [Member] | Minimum [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment vesting period | 3 years | ||
Stock Options [Member] | Maximum [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment vesting period | 4 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $ 1.4 | $ 0.5 | $ 0.9 |
Unrecognized compensation cost | $ 3 | ||
Unrecognized compensation cost recognition period | 2 years 1 month 6 days | ||
Fair market value of vested restricted stock awards | $ 1 | ||
Restricted Stock [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, expiration period | 10 years | ||
Restricted Stock [Member] | Minimum [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment vesting period | 1 year | ||
Restricted Stock [Member] | Maximum [Member] | 2009 and 2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment vesting period | 4 years |
Stock Options And Restricted 70
Stock Options And Restricted Stock Awards (Summary of Stock Option Activity and Weighted Average Exercise Price) (Details) - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding, beginning of period shares | shares | 405 |
Options, Granted shares | shares | 154 |
Options, Exercised shares | shares | (51) |
Options, Forfeited/Cancelled shares | shares | (29) |
Options, Outstanding, end of period shares | shares | 479 |
Weighted Average Exercise Price, Outstanding, beginning of period | $ / shares | $ 19.71 |
Weighted Average Exercise Price, Granted | $ / shares | 34.32 |
Weighted Average Exercise Price, Exercised | $ / shares | 22.60 |
Weighted Average Exercise Price, Forfeited/Cancelled | $ / shares | 23.61 |
Weighted Average Exercise Price, Outstanding, end of period | $ / shares | $ 23.91 |
Stock Options And Restricted 71
Stock Options And Restricted Stock Awards (Weighted-Average Estimated Fair Value of Employee Stock Options Granted) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value | $ 12.97 | $ 9.32 | $ 9.18 |
Risk-free discount rate, minimum | 1.67% | 1.70% | |
Risk-free discount rate | 2.29% | ||
Risk-free discount rate, maximum | 1.85% | 2.02% | |
Expected life | 8 years 2 months 12 days | 8 years 2 months 12 days | |
Volatility | 47.00% | 47.00% | 47.00% |
Expected turn-over rate | 2.00% | 2.00% | |
Expected exercise multiple | $ 2.2 | $ 2.2 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 3 years 7 months 6 days | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 2 months 12 days |
Stock Options And Restricted 72
Stock Options And Restricted Stock Awards (Summary of Status of Unvested Restricted Stock Awards Outstanding) (Details) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted stock awards at beginning of period | shares | 103 |
Awarded | shares | 90 |
Vested | shares | (35) |
Forfeited | shares | (15) |
Unvested restricted stock awards at end of period | shares | 143 |
Weighted Average Grant Date Fair Value beginning of period | $ / shares | $ 20.84 |
Weighted Average Grant Date Fair Value, Awarded | $ / shares | 34.60 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 21.07 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 22.79 |
Weighted Average Grant Date Fair Value end of period | $ / shares | $ 29.30 |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2011 | Aug. 01, 2017ft² | |
Operating Leased Assets [Line Items] | |||||
Rent expense | $ 2.5 | $ 2.9 | $ 3 | ||
Expired Operating Lease [Member] | Telecom System [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Rent expense | 0.5 | 0.6 | |||
Operating lease term | 5 years | ||||
Illinois [Member] | Office Space [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Rent expense | $ 0.8 | 0.8 | $ 0.8 | ||
Operating lease term | 132 months | ||||
Area of office space | ft² | 59,000 | ||||
Illinois [Member] | Subleased Properties [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Area of office space | ft² | 21,000 | ||||
Operating lease payable | $ 2 | ||||
Frisco, Texas [Member] | Office Space [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Rent expense | $ 0.7 | $ 0.2 | |||
Operating lease term | 64 months | ||||
Area of office space | ft² | 27,000 |
Operating Leases (Schedule of F
Operating Leases (Schedule of Future Minimum Payments Exclusive of Taxes and Other Operating Expenses) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases [Abstract] | |
2,018 | $ 3,155 |
2,019 | 2,565 |
2,020 | 1,948 |
2,021 | 1,414 |
2,022 | 981 |
Thereafter | 2,237 |
Total | $ 12,300 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - 401(k) Retirement Plan [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Matching percentage for retirement plan | 6.00% | 6.00% | 6.00% |
Company matching contribution amount | $ 44,000 | $ 31,100 | $ 33,500 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Maximum term of employment agreements | 4 years |
Percentage of employees represented by labor unions | 60.40% |
Severance and Restructuring (Na
Severance and Restructuring (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | |
Total expenses related to streamlining initiatives | $ | $ 1.7 | $ 8 |
Illinois [Member] | ||
Number of adult day centers closed | item | 3 |
Severance and Restructuring (Co
Severance and Restructuring (Components of and Changes in Severance and Restructuring Accruals) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance | $ 1,326 | |
Provision | 1,038 | 3,230 |
Utilization | (1,802) | (1,904) |
Balance | 562 | 1,326 |
Restructuring and Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance | 1,786 | |
Provision | 627 | 4,786 |
Utilization | (1,336) | (3,000) |
Balance | $ 1,077 | $ 1,786 |
Significant Payors (Narrative)
Significant Payors (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Service Revenues, Net [Member] | Illinois Department On Aging [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 36.60% | 42.10% | 48.80% |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 37.50% | 55.40% |
Significant Payors (Revenue Mix
Significant Payors (Revenue Mix by Payor Type) (Details) - Service Revenues, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
State, Local And Other Governmental Programs [Member] | |||
Concentration risk, percentage | 64.20% | 70.40% | 77.70% |
Managed Care Organizations [Member] | |||
Concentration risk, percentage | 33.10% | 26.10% | 18.30% |
Private Pay [Member] | |||
Concentration risk, percentage | 2.10% | 2.40% | 3.00% |
Commercial Insurance [Member] | |||
Concentration risk, percentage | 0.60% | 1.10% | 1.00% |
Significant Payors (Percentage
Significant Payors (Percentage of Total Revenue by Geographic Location) (Details) - Service Revenues, Net [Member] - Geographic Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Illinois [Member] | |||
Concentration risk, percentage | 52.60% | 53.60% | 59.50% |
New York [Memebr] | |||
Concentration risk, percentage | 13.70% | 12.90% | |
New Mexico [Member] | |||
Concentration risk, percentage | 8.80% | 7.50% | 8.50% |
Unaudited Summarized Quarterl82
Unaudited Summarized Quarterly Financial Information (Schedule of Quarterly Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unaudited Summarized Quarterly Financial Information [Abstract] | |||||||||||
Net service revenues | $ 111,958 | $ 108,592 | $ 103,559 | $ 101,606 | $ 103,657 | $ 103,502 | $ 100,927 | $ 92,602 | $ 425,715 | $ 400,688 | $ 336,815 |
Gross profit | 30,715 | 29,053 | 28,511 | 27,317 | 28,658 | 27,423 | 25,695 | 24,319 | 115,596 | 106,095 | 91,323 |
Operating income from continuing operations | 7,550 | 5,807 | 5,921 | 6,961 | 7,693 | 2,495 | 4,394 | 653 | 26,239 | 15,235 | 16,024 |
Net income from continuing operations | 3,094 | 3,408 | 2,700 | 4,259 | 7,471 | 1,699 | 2,600 | 157 | 13,461 | 11,927 | 11,353 |
Earnings from discontinued operations | 147 | 97 | |||||||||
Net income | $ 3,241 | $ 3,408 | $ 2,700 | $ 4,259 | $ 7,568 | $ 1,699 | $ 2,600 | $ 157 | $ 13,608 | $ 12,024 | $ 11,623 |
Average shares outstanding: Basic | 11,488,000 | 11,486,000 | 11,470,000 | 11,434,000 | 11,383,000 | 11,367,000 | 11,361,000 | 11,022,000 | 11,470,000 | 11,292,000 | 10,986,000 |
Average shares outstanding: Diluted | 11,638,000 | 11,631,000 | 11,622,000 | 11,581,000 | 11,494,000 | 11,417,000 | 11,385,000 | 11,178,000 | 11,623,000 | 11,349,000 | 11,189,000 |
Continuing operations - Basic | $ 0.27 | $ 0.30 | $ 0.24 | $ 0.37 | $ 0.66 | $ 0.15 | $ 0.23 | $ 0.01 | $ 1.18 | $ 1.05 | $ 1.03 |
Discontinued operations - Basic | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | ||||||
Basic income per share | 0.28 | 0.30 | 0.24 | 0.37 | 0.67 | 0.15 | 0.23 | 0.01 | 1.19 | 1.06 | 1.06 |
Continuing operations - Diluted | 0.27 | 0.29 | 0.23 | 0.37 | 0.65 | 0.15 | 0.23 | 0.01 | 1.16 | 1.05 | 1.02 |
Discontinued operations - Diluted | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | ||||||
Diluted income per share | $ 0.28 | $ 0.29 | $ 0.23 | $ 0.37 | $ 0.66 | $ 0.15 | $ 0.23 | $ 0.01 | $ 1.17 | $ 1.06 | $ 1.04 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Feb. 27, 2018 | Jan. 01, 2018 |
New Mexico [Member] | Ambercare Corporation, Inc. [Member] | ||
Subsequent Events [Line Items] | ||
Business combination purchase price of entity to be acquired | $ 40 | |
Illinois [Member] | Lifestyle Options, Inc. [Member] | ||
Subsequent Events [Line Items] | ||
Business acquisition payment amount | $ 3.4 |
Valuation And Qualifying Acco84
Valuation And Qualifying Accounts (Details) - Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 7,363 | $ 4,850 | $ 3,881 | |
Additions/charges | 8,259 | 7,373 | 4,309 | |
Deductions | [1] | 5,085 | 4,860 | 3,340 |
Balance at end of period | $ 10,537 | $ 7,363 | $ 4,850 | |
[1] | Write-offs, net of recoveries |