Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | Addus HomeCare Corp | |
Entity Central Index Key | 0001468328 | |
Trading Symbol | adus | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,182,598 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 66,170 | $ 70,406 |
Accounts receivable, net of allowances | 120,143 | 108,000 |
Prepaid expenses and other current assets | 7,146 | 7,098 |
Total current assets | 193,459 | 185,504 |
Property and equipment, net of accumulated depreciation and amortization | 10,843 | 10,658 |
Other assets | ||
Goodwill | 135,399 | 135,442 |
Intangibles, net of accumulated amortization | 22,531 | 23,784 |
Operating lease assets, net | 16,691 | |
Total other assets | 174,621 | 159,226 |
Total assets | 378,923 | 355,388 |
Current liabilities | ||
Accounts payable | 11,506 | 12,238 |
Accrued payroll | 24,139 | 22,449 |
Accrued expenses | 17,202 | 11,648 |
Accrued workers' compensation insurance | 14,537 | 15,169 |
Total current liabilities | 67,384 | 61,504 |
Long-term liabilities | ||
Long-term debt, less current portion, net of debt issuance costs | 17,375 | 17,222 |
Long-term operating lease liabilities | 11,679 | |
Deferred tax liabilities, net | 615 | 494 |
Other long-term liabilities | 242 | 635 |
Total long-term liabilities | 29,911 | 18,351 |
Total liabilities | 97,295 | 79,855 |
Stockholders’ equity | ||
Common stock—$.001 par value; 40,000 authorized and 13,178 and 13,126 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 13 | 13 |
Additional paid-in capital | 178,916 | 177,683 |
Retained earnings | 102,699 | 97,837 |
Total stockholders’ equity | 281,628 | 275,533 |
Total liabilities and stockholders’ equity | $ 378,923 | $ 355,388 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 13,178,000 | 13,126,000 |
Common stock, shares outstanding | 13,178,000 | 13,126,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net service revenues | $ 139,254 | $ 109,476 |
Cost of service revenues | 101,680 | 81,543 |
Gross profit | 37,574 | 27,933 |
General and administrative expenses | 29,257 | 21,537 |
Depreciation and amortization | 2,074 | 1,807 |
Total operating expenses | 31,331 | 23,344 |
Operating income | 6,243 | 4,589 |
Interest income | (215) | (2,322) |
Interest expense | 618 | 910 |
Total interest expense (income), net | 403 | (1,412) |
Income before income taxes | 5,840 | 6,001 |
Income tax expense | 978 | 1,115 |
Net income | $ 4,862 | $ 4,886 |
Net income per common share | ||
Basic income per share | $ 0.37 | $ 0.42 |
Diluted income per share | $ 0.36 | $ 0.42 |
Weighted average number of common shares and potential common shares outstanding: | ||
Basic | 12,995 | 11,502 |
Diluted | 13,381 | 11,696 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2017 | $ 176,309 | $ 12 | $ 95,963 | $ 80,334 |
Balance, shares at Dec. 31, 2017 | 11,632 | |||
Issuance of shares of common stock under restricted stock award agreements, Shares | 60 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (2) | |||
Stock-based compensation | 859 | 859 | ||
Shares issued for exercise of stock options | 24 | 24 | ||
Shares issued for exercise of stock options, shares | 1 | |||
Net income | 4,886 | 4,886 | ||
Balance at Mar. 31, 2018 | 182,078 | $ 12 | 96,846 | 85,220 |
Balance, shares at Mar. 31, 2018 | 11,691 | |||
Balance at Dec. 31, 2018 | 275,533 | $ 13 | 177,683 | 97,837 |
Balance, shares at Dec. 31, 2018 | 13,126 | |||
Issuance of shares of common stock under restricted stock award agreements, Shares | 52 | |||
Stock-based compensation | 1,233 | 1,233 | ||
Net income | 4,862 | 4,862 | ||
Balance at Mar. 31, 2019 | $ 281,628 | $ 13 | $ 178,916 | $ 102,699 |
Balance, shares at Mar. 31, 2019 | 13,178 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 4,862 | $ 4,886 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | ||
Depreciation and amortization | 2,074 | 1,807 |
Deferred income taxes | 121 | 129 |
Stock-based compensation | 1,233 | 859 |
Amortization of debt issuance costs under the credit facility | 161 | 147 |
Provision for doubtful accounts | 57 | 78 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (12,989) | 5,599 |
Prepaid expenses and other current assets | 2,494 | 1,161 |
Accounts payable | (689) | 2,092 |
Accrued expenses and other long-term liabilities | (521) | (2,482) |
Net cash (used in) provided by operating activities | (3,197) | 14,276 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (3,283) | |
Purchases of property and equipment | (1,006) | (416) |
Net cash used in investing activities | (1,006) | (3,699) |
Cash flows from financing activities: | ||
Payments on term loan- credit facility | (563) | |
Payments for debt issuance costs under the credit facility | (18) | |
Payments on financing lease obligations | (33) | (368) |
Cash received from exercise of stock options | 24 | |
Net cash used in financing activities | (33) | (925) |
Net change in cash | (4,236) | 9,652 |
Cash, at beginning of period | 70,406 | 53,754 |
Cash, at end of period | 66,170 | 63,406 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 723 | 766 |
Cash paid for income taxes | $ 1,082 | 1,187 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Contingent and deferred consideration accrued for acquisition | $ 847 |
Nature of Operations, Consolida
Nature of Operations, Consolidation, and Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations, Consolidation, and Presentation of Financial Statements | 1. Nature of Operations, Consolidation, and Presentation of Financial Statements Addus HomeCare Corporation (“Holdings”) and its subsidiaries (together with Holdings, the “Company”, “we”, “us” or “our”) operate as a multi-state provider of three distinct but related business segments providing in-home services. In its personal care services segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy. Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K, which includes information and disclosures not included herein. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period and have not been audited by our independent auditors. Principles of Consolidation These Unaudited Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. These reclassifications have no effect on the reported net income. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842) Targeted Improvements We elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are, or contain, leases, (2) lease classification and (3) initial direct costs. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition Personal Care Revenue The majority of the Company’s net service revenues are generated from providing personal care services directly to consumers under contracts with state, local and other governmental agencies, managed care organizations, commercial insurers and private consumers. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a customer relationship and set the broad range of terms for services to be performed at a stated rate. However, the contracts do not give rise to rights and obligations until an order is placed with the Company. When an order is placed, it creates the performance obligation to provide a defined quantity of service hours, or authorized hours, per consumer. The Company satisfies its performance obligations over time, given that consumers simultaneously receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to consideration from customers commensurate with the value provided to customers from the performance completed over a given invoice period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations and recognizes patient service revenue in the amount to which the Company has a right to invoice. Hospice Revenue The Company generates net service revenues from providing hospice services to terminally ill consumers and their families. Net service revenues are recognized as services are provided and costs for delivery of such services are incurred. The estimated payment rates are daily rates for each of the levels of care the Company delivers. Hospice companies are subject to two specific payment limit caps under the Medicare program each federal fiscal year, the inpatient cap and the aggregate cap. The inpatient cap limits the number of inpatient care days provided to no more than 20% of the total days of hospice care provided to Medicare patients for the year. The aggregate cap limits the amount of Medicare reimbursement a hospice may receive, based on the number of Medicare patients served. For the three months ended March 31, 2019, the Company was below the payment limits and did not record a cap liability. Home Health Revenue The Company also generates net service revenues from providing home healthcare services directly to consumers mainly under contracts with Medicare and managed care organizations. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a relationship and set the broad range of terms for services to be performed on an episodic basis at a stated rate. Home health Medicare services are paid under the Medicare Home Health Prospective Payment System (“HHPPS”), which is based on a 60-day episode of care. The HHPPS permits multiple, continuous episodes per patient. Medicare payment rates for episodes under HHPPS vary based on the severity of the patient’s condition as determined by assessment of a patient’s Home Health Resource Group score. The Company elects to use the same 60-day length of episode that Medicare recognizes as standard but accelerates revenue upon discharge to align with a patient’s episode length if less than the expected 60 days, which depicts the transfer of services and related benefits received by the patient over the term of the contract necessary to satisfy the obligations. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. The Company satisfies its performance obligations as consumers receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to reimbursement from Medicare commensurate with the services provided to customers from the performance completed over a given episodic period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations. Under this method recognizing revenue ratably over the episode based on beginning and ending dates is a reasonable proxy for the transfer of benefit of the service. Implicit Price Concessions We record estimated implicit price concessions (based primarily on historical collection experience) related to uninsured accounts to record self-pay revenues at the estimated amounts we expect to collect. The estimates for implicit price concessions are based upon management’s assessment of historical write offs and expected net collections, business and economic conditions, trends in federal, state and private employer health care coverage and other collection indicators. The Company recorded $2.2 million and $2.0 million for the three months ended March 31, 2019 and 2018, respectively, as a reduction to revenue. Allowance for Doubtful Accounts We are paid for our services primarily by federal, state and local agencies under Medicaid and Medicare programs, managed care organizations, commercial insurance companies and private consumers. While our accounts receivable are uncollateralized, our credit risk is somewhat limited due to the significance of governmental payors to our financial results of operations. Laws and regulations governing the governmental programs in which we participate are complex and subject to interpretation and change. Subsequent adjustments that are determined to be the result of an adverse change in the payor’s ability to pay are recognized as allowance for doubtful accounts. As of March 31, 2019 and December 31, 2018, the allowance for doubtful accounts balance was $0.8 million and $0.7 million, which is included in the account receivable, net of allowances on the Company’s Unaudited Condensed Consolidated Balance Sheets. 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 3 –10 years Leasehold improvements Lesser of useful life or lease term 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. In accordance with ASC Topic 350, Goodwill and Other 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. The Company uses various valuation techniques to determine initial fair value of its intangible assets, including relief-from-royalty, income approach methods, and discounted cash flow analysis, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy in ASC 820, Fair Value Measurement . Under these valuation approaches, we are required to make estimates and assumptions about 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. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from three to twenty-five years 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 are 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. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets , intangible assets with indefinite useful lives are not amortized. We test intangible assets with indefinite useful lives 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. No impairment charge was recorded for the three months ended March 31, 2019 and 2018. As of March 31, 2019 and December 31, 2018, intangibles, net of accumulated depreciation and amortization was $22.5 million and $23.8 million, respectively, included in the Company’s Unaudited Condensed Consolidated Balance Sheets 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. Debt issuance costs are classified as a current portion of long-term debt or long-term debt, less current portion as of March 31, 2019 and December 31, 2018. Workers’ Compensation Program The Company’s workers’ compensation insurance program has a $0.4 million deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The Company monitors its claims quarterly and adjusts its reserves accordingly. These costs are recorded primarily as the cost of services on the Company’s Unaudited Condensed Consolidated Statements of Income. As of March 31, 2019 and December 31, 2018, the Company recorded $14.5 million and $15.2 million, respectively, in workers’ compensation insurance. As of March 31, 2019 and December 31, 2018, the Company recorded $1.6 million and $1.7 million, respectively, in workers’ compensation insurance recovery receivables. The workers’ compensation insurance recovery receivable is included in prepaid expenses and other current assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. 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. For the three months ended March 31, 2019, the Company received $0.1 million in prompt payment interest. For the three months ended March 31, 2018, the Company received $2.3 million in prompt payment interest. Interest Expense The Company’s interest expense consists of interest and unused credit line fees on its credit facilities, its Terminated Senior Credit Facility (as defined herein), and interest on its financing lease obligations, which is reported in the statement of income when incurred. Income Tax Expense The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes. Stock-based Compensation The Company currently has one stock incentive plan, the 2017 Omnibus Incentive Plan (the “2017 Plan”), under which new grants of stock-based employee compensation may be made. In addition, the Company has outstanding awards under its 2009 Stock Incentive Plan, as amended and restated. The Company accounts for stock-based compensation in accordance with ASC Topic 718, Stock Compensation 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 three months ended March 31, 2019 were approximately 685,000 stock options outstanding, of which approximately 303,000 were dilutive. In addition, there were approximately 153,000 restricted stock awards outstanding, 83,000 of which were dilutive for the three months ended March 31, 2019. Included in the Company’s calculation of diluted earnings per share for the three months ended March 31, 2018 were approximately 746,000 stock options outstanding, of which approximately 129,000 were dilutive. In addition, there were approximately 166,000 restricted stock awards outstanding, 65,000 of which were dilutive for the three months ended March 31, 2018. Estimates The financial statements are prepared by management in conformity with GAAP and include estimated amounts and certain disclosures based on assumptions about future events. The Company’s critical accounting estimates include the following areas: implicit price concessions, the allowance for doubtful accounts, reserve for self-insurance claims, accounting for stock-based compensation, accounting for lease incremental borrowing rates, 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 Unaudited Condensed 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 Going Concern In connection with the preparation of the financial statements for the three months ended March 31, 2019 and 2018, 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 3. Leases During the quarter ended March 31, 2019, we adopted ASU 2016-02, Leases (Topic 842) We have historically had operating leases for local branches, our corporate headquarters and certain equipment, with lease expiration dates through 2029. Certain of our arrangements have free rent periods or escalating rent payment provisions. We recognize rent expense on a straight-line basis over the lease term. Our leases generally contain renewal options for periods ranging from one to five years. Because we are not reasonably certain to exercise these renewal options, the options generally are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Amounts reported in the Company’s Unaudited Condensed The Three Months Ended March 31, (Amounts in Thousands) 2019 Operating lease right of use assets, net $ 16,691 Short-term operating lease liabilities (in Accrued expenses) 5,154 Long-term operating lease liabilities 11,679 Total operating lease liabilities $ 16,833 Leases Costs Components of lease cost were reported in general and administrative expenses in the Company’s Unaudited Condensed Consolidated Statements of Income as follows: For the Three Months Ended March 31, (Amounts in Thousands) 2019 Operating lease costs $ 1,646 Short-term lease costs 64 Total lease cost $ 1,710 Lease Term and Discount Rate Weighte d average remaining lease terms and discount rates were as follows: For the Three Months Ended March 31, 2019 Operating leases: Weighted average remaining lease term 4.02 Weighted average discount rate 5.75 % Maturity of Lease Liabilities A summary of our remaining operating lease payments as of March 31, 2019 were as follows: Operating Leases (Amounts in Thousands) Due in 12 month period ended March 31, 2020 $ 5,747 2021 4,544 2022 3,495 2023 2,248 2024 1,726 Thereafter 1,200 Total future minimum rental commitments 18,960 Less: Imputed interest (2,127 ) Total lease liabilities $ 16,833 Supplemental cash flow information For the Three Months Ended March 31, (Amounts in Thousands) 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,639 Right-of-use assets obtained in exchange for lease obligations: Operating leases 17,660 Financing Leases Some of our financing leases include provisions to purchase the asset at the conclusion of the lease. The treatment of these leases remains consistent and the transition does not have an impact on the accounting for these leases. As of March 31, 2019 and December 31, 2018 the Company has various financing leases (the underlying assets are included in “Property and equipment net of accumulated depreciation and amortization” in the accompanying the Condensed Consolidated Balance Sheets). Condensed Consolidated Balance Sheets |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On May 1, 2018, the Company completed its acquisition of all the outstanding securities of Ambercare Corporation (“Ambercare”). The purchase price was approximately $39.6 million plus the amount of excess cash held by Ambercare at closing (approximately $12.0 million). The purchase of Ambercare was funded by a delayed draw term loan under the Company’s credit facility. With the purchase of Ambercare, the Company expanded its New Mexico personal care operations and acquired its hospice and home health segments in the state of New Mexico. The related integration costs of $0.1 million for the three months ended March 31, 2019, were included in general and administrative expenses on the Company’s Unaudited Condensed Consolidated Statements of Income, and were expensed as incurred. The results of Ambercare are included on the Company’s Unaudited Condensed Consolidated Statements of Income from the date of the acquisition. The Company’s acquisition of Ambercare has been accounted for in accordance with ASC Topic 805, Business Combinations Goodwill and Other Intangible Assets Total (Amounts in Thousands) Goodwill $ 28,831 Cash 12,028 Identifiable intangible assets 9,944 Accounts receivable 6,512 Other assets 442 Property and equipment 154 Accrued liabilities (4,073 ) Deferred tax liability (2,138 ) Financing lease (75 ) Accounts payable (3 ) Total purchase price allocation $ 51,622 Management’s assessment of qualitative factors affecting goodwill for Ambercare includes estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations, and the payor profile in the market. The Company acquired all of the outstanding stock of Ambercare. Identifiable intangible assets acquired consist of trade names and customer relationships, with estimated useful lives ranging from three to fifteen years, as well as indefinite lived state licenses. The preliminary 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 non-deductible for tax purposes. The Ambercare acquisition accounted for $14.8 million of net service revenues and $3.4 million of net income prior to corporate allocation for the three months ended March 31, 2019. On April 1, 2018, the Company acquired certain assets of Arcadia Home Care & Staffing (“Arcadia”), expanding its personal care services. The total consideration for the transaction was $18.9 million and was funded by a delayed draw term loan under the Company’s credit facility. The related integration costs of $0.1 million for the three months ended March 31, 2019, were included in general and administrative expenses on the Company’s Unaudited Condensed Consolidated Statements of Income, and were expensed as incurred. The results of operations from this acquired entity are included in the Company’s Unaudited Condensed Consolidated Statements of Income from the date of the acquisition. The Company’s acquisition of Arcadia has been accounted for in accordance with ASC Topic 805 and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350. The acquisition was recorded at its fair value as of April 1, 2018. Under business combination accounting, the Arcadia purchase price was $18.9 million and was allocated to Arcadia’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 $ 13,072 Accounts receivable 5,317 Identifiable intangible assets 2,264 Property and equipment 155 Other assets 92 Accrued liabilities (1,540 ) Accounts payable (508 ) Total purchase price allocation $ 18,852 Management’s assessment of qualitative factors affecting goodwill for Arcadia includes estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations, and the payor profile in the market. Identifiable intangible assets acquired consist of trade name, customer relationships and state licenses, with estimated useful lives ranging from seven to fifteen years. The preliminary 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 Arcadia acquisition accounted for $10.3 million of net service revenues and $1.3 million of net income prior to corporate allocation for the three months ended March 31, 2019. During the fourth quarter of 2018, the Company acquired certain assets of affiliate branches of Arcadia for $0.6 million using cash on hand, the Company recorded goodwill of $0.6 million on the Company’s Unaudited Condensed Consolidated Balance Sheets. Goodwill generated from the acquisition is primarily attributable to expected synergies with existing Company operations and the goodwill acquired is deductible for tax purposes. Pro forma results of the operations related to the acquisition are not included in the pro forma presentation as they are not material to the Company’s Unaudited Condensed Consolidated Statements of Income. Effective January 1, 2018, the Company acquired certain assets of LifeStyle Options, Inc. (“LifeStyle”) in order to expand private pay services in Illinois. The total consideration for the transaction was $4.1 million, comprised of $3.3 million in cash and $0.8 million, representing the preliminary estimated fair value of contingent consideration, subject to the achievement of certain performance targets set forth in an earn-out agreement. As of December 31, 2018, the performance targets were not met and the Company remeasured the earn-out to fair value. The Company’s acquisition of LifeStyle has been accounted for in accordance with ASC Topic 805 and the resulting goodwill and other intangible assets was accounted for under ASC Topic 350. The acquisition was recorded at its fair value as of January 1, 2018. Under business combination accounting, the LifeStyle purchase price was $4.1 million and was allocated to LifeStyle’s net tangible and identifiable intangible assets based on their estimated fair values. Based upon management’s valuation, the total purchase price is final and has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 2,751 Identifiable intangible assets 1,152 Accounts receivable 573 Other assets 32 Property and equipment 18 Accrued liabilities (291 ) Accounts payable (105 ) Total purchase price allocation $ 4,130 Management’s assessment of qualitative factors affecting goodwill for LifeStyle includes estimates of market share at the date of purchase, ability to grow in the market, synergy with existing Company operations, and the payor profile in the market. Identifiable intangible assets acquired consist of trade name and customer relationships, with estimated useful lives ranging from ten to fifteen years. 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 LifeStyle acquisition accounted for $1.2 million of net service revenues and $0.0 million of net income prior to corporate allocation for the three months ended March 31, 2019. The following table contains unaudited pro forma condensed consolidated income statement information of the Company had the acquisitions of Ambercare and Arcadia closed on January 1, 2018. For the Three Months Ended March 31, (Amounts in Thousands) 2019 2018 Net service revenues $ 139,254 $ 138,218 Operating income 6,486 11,583 Net income 5,105 7,852 Net income per common share Basic income per share $ 0.39 $ 0.68 Diluted income per share $ 0.38 $ 0.67 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 Ambercare and Arcadia had been acquired effective January 1, 2018. 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets A summary of the goodwill activity for the three months ended March 31, 2019 is provided below: Goodwill Personal Care Hospice Home Health Total (Amounts in Thousands) Goodwill as of December 31, 2018 $ 112,377 $ 22,200 $ 865 $ 135,442 Adjustments to previously recorded goodwill (43 ) — — (43 ) Goodwill as of March 31, 2019 $ 112,334 $ 22,200 $ 865 $ 135,399 The Company’s identifiable intangible assets consist of customer and referral relationships, trade names, trademarks and non-competition agreements. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from three to twenty-five years. Goodwill and certain state licenses are not amortized pursuant to ASC Topic 350. The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of March 31, 2019: Customer and referral relationships Trade names and trademarks Non- competition agreements State Licenses Total (Amounts in Thousands) Intangible assets with indefinite lives: — — — 2,871 2,871 Intangible assets subject to amortization: Gross carrying amount 42,356 21,551 2,155 241 66,303 Accumulated amortization (33,436 ) (11,175 ) (2,009 ) (23 ) (46,643 ) Net book value, intangible assets subject to amortization 8,920 10,376 146 218 19,660 Total intangible assets at March 31, 2019 $ 8,920 $ 10,376 $ 146 $ 3,089 $ 22,531 Amortization expense related to the identifiable intangible assets amounted to $1.3 million for the three months ended March 31, 2019 and 2018. The weighted average remaining lives of identifiable intangible assets as of March 31, 2019 is 8.7 years. The estimated future intangible amortization expense is as follows: For the Three Months Ended March 31, 2019 Total (Amounts in Thousands) Remainder of 2019 3,760 2020 3,400 2021 2,758 2022 1,724 2023 1,406 Thereafter 6,612 Total intangible assets subject to amortization $ 19,660 |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2019 | |
Details Of Certain Balance Sheet Accounts [Abstract] | |
Details of Certain Balance Sheet Accounts | 6. Details of Certain Balance Sheet Accounts Prepaid expenses and other current assets consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Workers’ compensation insurance receivable $ 1,564 $ 1,692 Prepaid workers’ compensation and liability insurance 1,152 1,840 Health insurance receivable 676 564 Other 3,754 3,002 $ 7,146 $ 7,098 Accrued expenses consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Current portion of operating lease liabilities $ 5,154 $ — Accrued health insurance (1) 3,681 3,926 Accrued professional fees 2,096 2,260 Accrued payroll taxes 1,585 769 Other 4,686 4,693 $ 17,202 $ 11,648 (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 $0.7 million and $0.6 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2019 and December 31, 2018, respectively |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Long Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Revolving loan under the credit facility $ 20,000 $ 20,000 Financing leases 48 81 Less unamortized issuance costs (2,636 ) (2,797 ) Total $ 17,412 $ 17,284 Less current maturities (37 ) (62 ) Long-term debt $ 17,375 $ 17,222 Amended and Restated Senior Secured Credit Facility On October 31, 2018, the Company amended and restated its Existing Credit Agreement, as hereinafter defined (the “Credit Agreement,” and together with the Existing Credit Agreement, our “amended and restated credit facility” or “credit facility”) with certain lenders and Capital One, National Association as a lender and swing line lender and as agent for all lenders. This amended and restated credit facility totals $269.6 million, inclusive of a $250.0 million revolving loan and a $19.6 million delayed draw term loan, and is evidenced by the Credit Agreement. This amended and restated credit facility amended and restated the Company’s existing senior secured credit facility totaling $250.0 million. The maturity of this amended and restated credit facility is May 8, 2023, with borrowing under the delayed draw term loan available until June 30, 2019, as extended pursuant to the consent letter, dated January 30, 2019, executed by the Required Lenders (as defined in the Credit Agreement). Interest on the Company’s amended and restated credit facility may be payable at (x) the sum of (i) an applicable margin ranging from 0.75% to 1.50% based on the applicable senior net leverage ratio plus (ii) a base rate equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the “prime rate,” (b) the sum of the federal funds rate plus a margin of 0.50% and (c) the sum of the adjusted LIBOR that would be applicable to a loan with an interest period of one month advanced on the applicable day (not to be less than 0.00%) plus a margin of 1.00% or (y) the sum of (i) an applicable margin ranging from 1.75% to 2.50% based on the applicable senior net leverage ratio plus (ii) the offered rate per annum for similar dollar deposits for the applicable interest period that appears on Reuters Screen LIBOR01 Page (not to be less than zero). Swing loans may not be LIBOR loans. The availability of additional draws under this amended and restated credit facility is conditioned, among other things, upon (after giving effect to such draws) the Total Net Leverage Ratio (as defined in the Credit Agreement) not exceeding 3.75:1.00. In certain circumstances, in connection with a Material Acquisition (as defined in the Credit Agreement), the Company can elect to increase its Total Net Leverage Ratio compliance covenant to 4.25:1.00 for the then current fiscal quarter and the three succeeding fiscal quarters. In connection with this amended and restated credit facility, the Company incurred approximately $0.9 million of debt issuance costs. Addus HealthCare, Inc. (“Addus HealthCare”) is the borrower, and its parent, Holdings, and substantially all of Holdings’ subsidiaries are guarantors under this amended and restated credit facility, and it 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. The Credit Agreement contains affirmative and negative covenants customary for credit facilities of this type, including limitations on the Company with respect to liens, indebtedness, guaranties, investments, distributions, mergers and acquisitions and dispositions of assets. The Company pays a fee ranging from 0.20% to 0.35% based on the applicable senior net leverage ratio times the unused portion of the revolving portion of the amended and restated credit facility. 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 Interest Coverage Ratio (as defined in the Credit Agreement), a requirement to stay below a maximum Total Net Leverage Ratio (as defined in the Credit Agreement) 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 the Company in an amount that does not exceed $7.5 million in any year absent of an event of default, plus limited exceptions for tax and administrative distributions), a restriction on the ability to consummate acquisitions (without the consent of the lenders) under our credit facility subject to compliance with the Total Net Leverage Ratio (as defined in the Credit Agreement), restrictions on mergers, dispositions of assets, and affiliate transactions, and restrictions on fundamental changes and lines of business. As of March 31, 2019, the Company was in compliance with all its Credit Agreement covenants. During the three months ended March 31, 2019, the Company had no draws under its credit facility. As of March 31, 2019, the Company had a total of $20.0 million of revolving loans outstanding with an interest rate of 4.49% on our credit facility and the total availability under the revolving credit loan facility was $141.2 million. As of December 31, 2018, the Company had a total of $20.0 million of revolving loans outstanding with an interest rate of 4.35% on our credit facility and the total availability under the revolving credit loan facility was $142.9 million. Senior Secured Credit Facility Prior to October 31, 2018, we were a party to a credit agreement (the “Existing Credit Agreement”) with certain lenders and Capital One, National Association, as a lender and swing lender and as agent for all lenders. This credit facility totaled $250.0 million, replaced our previous senior secured credit facility totaling $125.0 million (“Terminated Senior Secured Credit Facility”), and terminated the Second Amended and Restated Credit and Guaranty Agreement, dated as of November 10, 2015, as modified by the May 24, 2016 amendment (as amended, the “Terminated Senior Secured Credit Agreement”), between us, certain lenders and Fifth Third Bank, as agent, which evidenced the Terminated Senior Secured Credit Facility. The credit facility included a $125.0 million revolving loan, a $45.0 million term loan and an $80.0 million delayed draw term loan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes A reconciliation of the statutory federal tax rate of 21.0% for the three months ended March 31, 2019 and 2018 is summarized as follows: Three Months Ended March 31, 2019 2018 Federal income tax at statutory rate 21.0 % 21.0 % State and local taxes, net of federal benefit 6.1 6.9 Jobs tax credits, net (6.0 ) (10.9 ) 162(m) disallowance for executive compensation 2.8 2.2 Nondeductible permanent items 0.4 1.0 Excess tax benefit (7.6 ) (1.5 ) Effective income tax rate 16.7 % 18.7 % On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changed U.S. tax law by, among other things, lowering corporate income tax rates. The Tax Reform Act permanently reduced the U.S. corporate income tax rate from a maximum of 35.0% to a flat 21.0% rate, effective January 1, 2018. The effective income tax rate was 16.7% and 18.7% for the three months ended March 31, 2019 and 2018, respectively. The difference between our federal statutory and effective income tax rates are principally due to the inclusion of state taxes and the use of federal employment tax credits. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. 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 the Company’s Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed 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. 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. On March 21, 2018, the Court granted the Company’s motion to dismiss the Second Amended Complaint in part and narrowed the lawsuit to whether the federal False Claims Act was violated with respect to home health services provided at three senior living facilities in Illinois. 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 During 2017, the Company entered into employment agreements with certain members of senior management. The terms of these agreements are up to four years with the potential to auto-renew and include non-compete, non-solicitation and nondisclosure provisions, as well as provide for defined severance payments in the event of termination. On November 5, 2018 we amended and restated the employment agreements of each of our named executive officers in order to: (i) increase the amount of severance that would be payable on certain terminations of employment in connection with a change in control (as defined in the employment agreements), from two times annual compensation to three times annual compensation (as defined in the employment agreements) in the case of our chief executive officer, and from one times annual compensation to two times annual compensation (as defined in the employment agreements) in the case of our other named executive officers; (ii) provide that the enhanced severance for terminations of employment in connection with a change in control would be payable if the named executive officers self-terminated for good reason (as defined in the employment agreements); (iii) stipulate that severance for terminations of employment in connection with a change in control would include any unpaid bonus for a performance period completed prior to termination (the chief executive officer already had this right); and (iv) adjust the duration of non-competition and non-solicitation periods to match the number of years of annual compensation that the named executive officer would receive in severance. A substantial percentage of the Company’s workforce is represented by the Service Employees International Union (“SEIU”) through local collective bargaining agreements. These agreements are re-negotiated at various intervals. These negotiations are often initiated when the Company receives increases in hourly reimbursement rates from various state agencies. Upon expiration of these collective bargaining agreements, the Company may not be able to negotiate labor agreements on satisfactory terms with these labor unions. |
Severance and Restructuring
Severance and Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring | 10. Severance and Restructuring In 2016, the Company initiated steps to streamline its operations. The Company incurred total expenses related to these initiatives of approximately $0.4 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively. These costs are included in general and administrative expenses on the Company’s Unaudited Condensed Consolidated Statements of Income. The expenses recorded for the three months ended March 31, 2019 and 2018 included costs related to terminated employees and other professional fees. The Company expects some additional restructuring and other costs to occur, however, the amount and timing cannot be determined at this time. The following provides the components of and changes in our severance and restructuring accruals: Employee Termination Costs Restructuring and Other (Amounts in Thousands) Balance at December 31, 2018 $ 80 $ 585 Provision 65 288 Utilization (110 ) (311 ) Balance at March 31, 2019 $ 35 $ 562 Employee termination costs represent accrued severance payable to terminated employees with employment and/or separation agreements with the Company. Restructuring and other costs consist of the accrual related to lease commitments and write-offs of leasehold improvements and unused office space and property and equipment resulting from the closure of three adult day services centers in Illinois. These costs are included in accrued expenses on the Unaudited Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information Operating segments are defined as components of a company that engage in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available and is regularly reviewed by our chief operating decision makers, to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company operates as a multi-state provider of three distinct but related business segments providing in-home services. As a result of the acquisition of Ambercare on May 1, 2018, we began reporting the hospice and home health segments. In its personal care segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy. The tables below set forth information about our reportable segments for the three months ended March 31, 2019 and 2018 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Segment assets are not reviewed by the company’s chief decision makers and therefore are not disclosed below. Segment operating income consists of the net service revenues generated by a segment, less the direct costs of service revenues and general and administrative expenses that are incurred directly by the segment. Unallocated general and administrative costs are those costs for functions performed in a centralized manner and therefore not attributable to a particular segment. These costs include accounting, finance, human resources, legal, information technology, corporate office support and facility costs and overall corporate management. For the Three Months Ended March 31, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 128,641 $ 7,917 $ 2,696 $ 139,254 Cost of services revenues 95,995 3,770 1,915 101,680 Gross profit 32,646 4,147 781 37,574 General and administrative expenses 12,539 1,590 686 14,815 Segment operating income $ 20,107 $ 2,557 $ 95 $ 22,759 For the Three Months Ended March 31, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 109,476 $ — $ — $ 109,476 Cost of services revenues 81,543 — — 81,543 Gross profit 27,933 — — 27,933 General and administrative expenses 9,637 — — 9,637 Segment operating income $ 18,296 $ — $ — $ 18,296 For the Three Months Ended March 31, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 22,759 $ 18,296 Items not allocated at segment level: Other general and administrative expenses 14,442 11,900 Depreciation and amortization 2,074 1,807 Interest income (215 ) (2,322 ) Interest expense 618 910 Income before income taxes $ 5,840 $ 6,001 |
Significant Payors
Significant Payors | 3 Months Ended |
Mar. 31, 2019 | |
Significant Payors [Abstract] | |
Significant Payors | 12. Significant Payors For the three months ended March 31, 2019 and 2018, the Company’s revenue by payor type was as follows: Personal Care For the Three Months Ended March 31, 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues State, local and other governmental programs $ 72,059 56.0 % $ 67,328 61.5 % Managed care organizations 48,005 37.3 37,830 34.6 Private pay 5,019 3.9 3,755 3.4 Commercial insurance 1,867 1.5 563 0.5 Other 1,691 1.3 — — Total personal care segment net service revenues $ 128,641 100.0 % $ 109,476 100.0 % Hospice For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 7,390 93.3 % Managed care organizations 361 4.6 Other 166 2.1 Total hospice segment net service revenues $ 7,917 100.0 % Home Health For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 2,199 81.6 % Managed care organizations 414 15.4 Other 83 3.0 Total home health segment net service revenues $ 2,696 100.0 % The percentages of segment revenue for each of the Company’s significant states for the three months ended March 31, 2019 and 2018 were as follows: Personal Care For the Three Months Ended March 31, 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Illinois $ 57,596 44.8 % $ 57,386 52.4 % New York 17,813 13.8 15,363 14.0 New Mexico 17,208 13.4 11,770 10.8 All other states 36,024 28.0 24,957 22.8 Total personal care segment net service revenues $ 128,641 100.0 % $ 109,476 100.0 % Hospice For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 7,917 100.0 % Total hospice segment net service revenues $ 7,917 100.0 % Home Health For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 2,696 100.0 % Total home health segment net service revenues $ 2,696 100.0 % A substantial portion of the Company’s net service revenues and accounts receivable are derived from services performed for state and local governmental agencies. The Illinois Department on Aging, the largest payor program for our Illinois personal care operations, accounted for 28.9% and 36.6% of the Company’s net service revenues for the three months ended March 31, 2019 and 2018, respectively. The related receivables due from the Illinois Department on Aging represented 24.5% and 22.5% of the Company’s net accounts receivable at March 31, 2019 and December 31, 2018, respectively. |
Concentration of Cash
Concentration of Cash | 3 Months Ended |
Mar. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Cash | 13. Concentration of Cash The Company owns financial instruments, including cash, that potentially subject the Company to significant concentrations of credit risk. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation These Unaudited Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
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. These reclassifications have no effect on the reported net income. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842) Targeted Improvements We elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are, or contain, leases, (2) lease classification and (3) initial direct costs. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract |
Revenue Recognition | Revenue Recognition Personal Care Revenue The majority of the Company’s net service revenues are generated from providing personal care services directly to consumers under contracts with state, local and other governmental agencies, managed care organizations, commercial insurers and private consumers. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a customer relationship and set the broad range of terms for services to be performed at a stated rate. However, the contracts do not give rise to rights and obligations until an order is placed with the Company. When an order is placed, it creates the performance obligation to provide a defined quantity of service hours, or authorized hours, per consumer. The Company satisfies its performance obligations over time, given that consumers simultaneously receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to consideration from customers commensurate with the value provided to customers from the performance completed over a given invoice period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations and recognizes patient service revenue in the amount to which the Company has a right to invoice. Hospice Revenue The Company generates net service revenues from providing hospice services to terminally ill consumers and their families. Net service revenues are recognized as services are provided and costs for delivery of such services are incurred. The estimated payment rates are daily rates for each of the levels of care the Company delivers. Hospice companies are subject to two specific payment limit caps under the Medicare program each federal fiscal year, the inpatient cap and the aggregate cap. The inpatient cap limits the number of inpatient care days provided to no more than 20% of the total days of hospice care provided to Medicare patients for the year. The aggregate cap limits the amount of Medicare reimbursement a hospice may receive, based on the number of Medicare patients served. For the three months ended March 31, 2019, the Company was below the payment limits and did not record a cap liability. Home Health Revenue The Company also generates net service revenues from providing home healthcare services directly to consumers mainly under contracts with Medicare and managed care organizations. Generally, these contracts, which are negotiated based on current contracting practices as appropriate for the payor, establish the terms of a relationship and set the broad range of terms for services to be performed on an episodic basis at a stated rate. Home health Medicare services are paid under the Medicare Home Health Prospective Payment System (“HHPPS”), which is based on a 60-day episode of care. The HHPPS permits multiple, continuous episodes per patient. Medicare payment rates for episodes under HHPPS vary based on the severity of the patient’s condition as determined by assessment of a patient’s Home Health Resource Group score. The Company elects to use the same 60-day length of episode that Medicare recognizes as standard but accelerates revenue upon discharge to align with a patient’s episode length if less than the expected 60 days, which depicts the transfer of services and related benefits received by the patient over the term of the contract necessary to satisfy the obligations. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. The Company satisfies its performance obligations as consumers receive and consume the benefits provided by the Company as the services are performed. As the Company has a right to reimbursement from Medicare commensurate with the services provided to customers from the performance completed over a given episodic period, the Company has elected to use the practical expedient for measuring progress toward satisfaction of performance obligations. Under this method recognizing revenue ratably over the episode based on beginning and ending dates is a reasonable proxy for the transfer of benefit of the service. Implicit Price Concessions We record estimated implicit price concessions (based primarily on historical collection experience) related to uninsured accounts to record self-pay revenues at the estimated amounts we expect to collect. The estimates for implicit price concessions are based upon management’s assessment of historical write offs and expected net collections, business and economic conditions, trends in federal, state and private employer health care coverage and other collection indicators. The Company recorded $2.2 million and $2.0 million for the three months ended March 31, 2019 and 2018, respectively, as a reduction to revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We are paid for our services primarily by federal, state and local agencies under Medicaid and Medicare programs, managed care organizations, commercial insurance companies and private consumers. While our accounts receivable are uncollateralized, our credit risk is somewhat limited due to the significance of governmental payors to our financial results of operations. Laws and regulations governing the governmental programs in which we participate are complex and subject to interpretation and change. Subsequent adjustments that are determined to be the result of an adverse change in the payor’s ability to pay are recognized as allowance for doubtful accounts. As of March 31, 2019 and December 31, 2018, the allowance for doubtful accounts balance was $0.8 million and $0.7 million, which is included in the account receivable, net of allowances on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
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 3 –10 years Leasehold improvements Lesser of useful life or lease term |
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. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets |
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. The Company uses various valuation techniques to determine initial fair value of its intangible assets, including relief-from-royalty, income approach methods, and discounted cash flow analysis, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy in ASC 820, Fair Value Measurement . Under these valuation approaches, we are required to make estimates and assumptions about 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. Amortization is computed using straight-line and accelerated methods based upon the estimated useful lives of the respective assets, which range from three to twenty-five years 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 are 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. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets , intangible assets with indefinite useful lives are not amortized. We test intangible assets with indefinite useful lives 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. No impairment charge was recorded for the three months ended March 31, 2019 and 2018. As of March 31, 2019 and December 31, 2018, intangibles, net of accumulated depreciation and amortization was $22.5 million and $23.8 million, respectively, included in the Company’s Unaudited Condensed Consolidated Balance Sheets |
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. Debt issuance costs are classified as a current portion of long-term debt or long-term debt, less current portion as of March 31, 2019 and December 31, 2018. |
Workers' Compensation Program | Workers’ Compensation Program The Company’s workers’ compensation insurance program has a $0.4 million deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The Company monitors its claims quarterly and adjusts its reserves accordingly. These costs are recorded primarily as the cost of services on the Company’s Unaudited Condensed Consolidated Statements of Income. As of March 31, 2019 and December 31, 2018, the Company recorded $14.5 million and $15.2 million, respectively, in workers’ compensation insurance. As of March 31, 2019 and December 31, 2018, the Company recorded $1.6 million and $1.7 million, respectively, in workers’ compensation insurance recovery receivables. The workers’ compensation insurance recovery receivable is included in prepaid expenses and other current assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
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. For the three months ended March 31, 2019, the Company received $0.1 million in prompt payment interest. For the three months ended March 31, 2018, the Company received $2.3 million in prompt payment interest. |
Interest Expense | Interest Expense The Company’s interest expense consists of interest and unused credit line fees on its credit facilities, its Terminated Senior Credit Facility (as defined herein), and interest on its financing lease obligations, which is reported in the statement of income when incurred. |
Income Tax Expense | Income Tax Expense The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes. |
Stock-Based Compensation | Stock-based Compensation The Company currently has one stock incentive plan, the 2017 Omnibus Incentive Plan (the “2017 Plan”), under which new grants of stock-based employee compensation may be made. In addition, the Company has outstanding awards under its 2009 Stock Incentive Plan, as amended and restated. The Company accounts for stock-based compensation in accordance with ASC Topic 718, Stock Compensation |
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 three months ended March 31, 2019 were approximately 685,000 stock options outstanding, of which approximately 303,000 were dilutive. In addition, there were approximately 153,000 restricted stock awards outstanding, 83,000 of which were dilutive for the three months ended March 31, 2019. Included in the Company’s calculation of diluted earnings per share for the three months ended March 31, 2018 were approximately 746,000 stock options outstanding, of which approximately 129,000 were dilutive. In addition, there were approximately 166,000 restricted stock awards outstanding, 65,000 of which were dilutive for the three months ended March 31, 2018. |
Estimates | Estimates The financial statements are prepared by management in conformity with GAAP and include estimated amounts and certain disclosures based on assumptions about future events. The Company’s critical accounting estimates include the following areas: implicit price concessions, the allowance for doubtful accounts, reserve for self-insurance claims, accounting for stock-based compensation, accounting for lease incremental borrowing rates, 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 Unaudited Condensed 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 |
Going Concern | Going Concern In connection with the preparation of the financial statements for the three months ended March 31, 2019 and 2018, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | 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 3 –10 years Leasehold improvements Lesser of useful life or lease term |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Amounts Reported in Unaudited Condensed Consolidated Balance Sheets for Operating Leases | Amounts reported in the Company’s Unaudited Condensed The Three Months Ended March 31, (Amounts in Thousands) 2019 Operating lease right of use assets, net $ 16,691 Short-term operating lease liabilities (in Accrued expenses) 5,154 Long-term operating lease liabilities 11,679 Total operating lease liabilities $ 16,833 |
Components of Lease Cost Reported in General and Administrative Expenses in Unaudited Condensed Consolidated Statements of Income | Components of lease cost were reported in general and administrative expenses in the Company’s Unaudited Condensed Consolidated Statements of Income as follows: For the Three Months Ended March 31, (Amounts in Thousands) 2019 Operating lease costs $ 1,646 Short-term lease costs 64 Total lease cost $ 1,710 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Weighte d average remaining lease terms and discount rates were as follows: For the Three Months Ended March 31, 2019 Operating leases: Weighted average remaining lease term 4.02 Weighted average discount rate 5.75 % |
Summary of Remaining Operating Lease Payments | A summary of our remaining operating lease payments as of March 31, 2019 were as follows: Operating Leases (Amounts in Thousands) Due in 12 month period ended March 31, 2020 $ 5,747 2021 4,544 2022 3,495 2023 2,248 2024 1,726 Thereafter 1,200 Total future minimum rental commitments 18,960 Less: Imputed interest (2,127 ) Total lease liabilities $ 16,833 |
Supplemental Cash Flows Information | For the Three Months Ended March 31, (Amounts in Thousands) 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,639 Right-of-use assets obtained in exchange for lease obligations: Operating leases 17,660 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Ambercare Corporation [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 28,831 Cash 12,028 Identifiable intangible assets 9,944 Accounts receivable 6,512 Other assets 442 Property and equipment 154 Accrued liabilities (4,073 ) Deferred tax liability (2,138 ) Financing lease (75 ) Accounts payable (3 ) Total purchase price allocation $ 51,622 |
Arcadia Home Care And Staffing [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 13,072 Accounts receivable 5,317 Identifiable intangible assets 2,264 Property and equipment 155 Other assets 92 Accrued liabilities (1,540 ) Accounts payable (508 ) Total purchase price allocation $ 18,852 |
Lifestyle Options, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Total (Amounts in Thousands) Goodwill $ 2,751 Identifiable intangible assets 1,152 Accounts receivable 573 Other assets 32 Property and equipment 18 Accrued liabilities (291 ) Accounts payable (105 ) Total purchase price allocation $ 4,130 |
Ambercare and Arcadia [Member] | |
Business Acquisition [Line Items] | |
Unaudited Pro Forma Condensed Consolidated Income Statement Information | The following table contains unaudited pro forma condensed consolidated income statement information of the Company had the acquisitions of Ambercare and Arcadia closed on January 1, 2018. For the Three Months Ended March 31, (Amounts in Thousands) 2019 2018 Net service revenues $ 139,254 $ 138,218 Operating income 6,486 11,583 Net income 5,105 7,852 Net income per common share Basic income per share $ 0.39 $ 0.68 Diluted income per share $ 0.38 $ 0.67 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Related Adjustments | A summary of the goodwill activity for the three months ended March 31, 2019 is provided below: Goodwill Personal Care Hospice Home Health Total (Amounts in Thousands) Goodwill as of December 31, 2018 $ 112,377 $ 22,200 $ 865 $ 135,442 Adjustments to previously recorded goodwill (43 ) — — (43 ) Goodwill as of March 31, 2019 $ 112,334 $ 22,200 $ 865 $ 135,399 |
Schedule of Carrying Amount and Accumulated Amortization of Intangible Asset | The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of March 31, 2019: Customer and referral relationships Trade names and trademarks Non- competition agreements State Licenses Total (Amounts in Thousands) Intangible assets with indefinite lives: — — — 2,871 2,871 Intangible assets subject to amortization: Gross carrying amount 42,356 21,551 2,155 241 66,303 Accumulated amortization (33,436 ) (11,175 ) (2,009 ) (23 ) (46,643 ) Net book value, intangible assets subject to amortization 8,920 10,376 146 218 19,660 Total intangible assets at March 31, 2019 $ 8,920 $ 10,376 $ 146 $ 3,089 $ 22,531 |
Schedule of Future Amortization of Intangible Assets | The estimated future intangible amortization expense is as follows: For the Three Months Ended March 31, 2019 Total (Amounts in Thousands) Remainder of 2019 3,760 2020 3,400 2021 2,758 2022 1,724 2023 1,406 Thereafter 6,612 Total intangible assets subject to amortization $ 19,660 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Details Of Certain Balance Sheet Accounts [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Workers’ compensation insurance receivable $ 1,564 $ 1,692 Prepaid workers’ compensation and liability insurance 1,152 1,840 Health insurance receivable 676 564 Other 3,754 3,002 $ 7,146 $ 7,098 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Current portion of operating lease liabilities $ 5,154 $ — Accrued health insurance (1) 3,681 3,926 Accrued professional fees 2,096 2,260 Accrued payroll taxes 1,585 769 Other 4,686 4,693 $ 17,202 $ 11,648 (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 $0.7 million and $0.6 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2019 and December 31, 2018, respectively |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Long Term Debt [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: March 31, 2019 December 31, 2018 (Amounts in Thousands) Revolving loan under the credit facility $ 20,000 $ 20,000 Financing leases 48 81 Less unamortized issuance costs (2,636 ) (2,797 ) Total $ 17,412 $ 17,284 Less current maturities (37 ) (62 ) Long-term debt $ 17,375 $ 17,222 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory Federal Tax Rate | A reconciliation of the statutory federal tax rate of 21.0% for the three months ended March 31, 2019 and 2018 is summarized as follows: Three Months Ended March 31, 2019 2018 Federal income tax at statutory rate 21.0 % 21.0 % State and local taxes, net of federal benefit 6.1 6.9 Jobs tax credits, net (6.0 ) (10.9 ) 162(m) disallowance for executive compensation 2.8 2.2 Nondeductible permanent items 0.4 1.0 Excess tax benefit (7.6 ) (1.5 ) Effective income tax rate 16.7 % 18.7 % |
Severance and Restructuring (Ta
Severance and Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Components of and Changes in Severance and Restructuring Accruals | The following provides the components of and changes in our severance and restructuring accruals: Employee Termination Costs Restructuring and Other (Amounts in Thousands) Balance at December 31, 2018 $ 80 $ 585 Provision 65 288 Utilization (110 ) (311 ) Balance at March 31, 2019 $ 35 $ 562 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary Of Segment Information | For the Three Months Ended March 31, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 128,641 $ 7,917 $ 2,696 $ 139,254 Cost of services revenues 95,995 3,770 1,915 101,680 Gross profit 32,646 4,147 781 37,574 General and administrative expenses 12,539 1,590 686 14,815 Segment operating income $ 20,107 $ 2,557 $ 95 $ 22,759 For the Three Months Ended March 31, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 109,476 $ — $ — $ 109,476 Cost of services revenues 81,543 — — 81,543 Gross profit 27,933 — — 27,933 General and administrative expenses 9,637 — — 9,637 Segment operating income $ 18,296 $ — $ — $ 18,296 For the Three Months Ended March 31, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 22,759 $ 18,296 Items not allocated at segment level: Other general and administrative expenses 14,442 11,900 Depreciation and amortization 2,074 1,807 Interest income (215 ) (2,322 ) Interest expense 618 910 Income before income taxes $ 5,840 $ 6,001 |
Significant Payors (Tables)
Significant Payors (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Payors [Abstract] | |
Schedule of Revenue by Payor Type | For the three months ended March 31, 2019 and 2018, the Company’s revenue by payor type was as follows: Personal Care For the Three Months Ended March 31, 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues State, local and other governmental programs $ 72,059 56.0 % $ 67,328 61.5 % Managed care organizations 48,005 37.3 37,830 34.6 Private pay 5,019 3.9 3,755 3.4 Commercial insurance 1,867 1.5 563 0.5 Other 1,691 1.3 — — Total personal care segment net service revenues $ 128,641 100.0 % $ 109,476 100.0 % Hospice For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 7,390 93.3 % Managed care organizations 361 4.6 Other 166 2.1 Total hospice segment net service revenues $ 7,917 100.0 % Home Health For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 2,199 81.6 % Managed care organizations 414 15.4 Other 83 3.0 Total home health segment net service revenues $ 2,696 100.0 % |
Schedule of Revenue by Geographic Location | The percentages of segment revenue for each of the Company’s significant states for the three months ended March 31, 2019 and 2018 were as follows: Personal Care For the Three Months Ended March 31, 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Illinois $ 57,596 44.8 % $ 57,386 52.4 % New York 17,813 13.8 15,363 14.0 New Mexico 17,208 13.4 11,770 10.8 All other states 36,024 28.0 24,957 22.8 Total personal care segment net service revenues $ 128,641 100.0 % $ 109,476 100.0 % Hospice For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 7,917 100.0 % Total hospice segment net service revenues $ 7,917 100.0 % Home Health For the Three Months Ended March 31, 2019 Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 2,696 100.0 % Total home health segment net service revenues $ 2,696 100.0 % |
Nature of Operations, Consoli_2
Nature of Operations, Consolidation, and Presentation of Financial Statements (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)itemshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Revenues | $ 139,254,000 | $ 109,476,000 | |
Accounts receivable, allowance for doubtful accounts | 800,000 | $ 700,000 | |
Goodwill impairment charge | 0 | 0 | 0 |
Goodwill | 135,399,000 | 135,442,000 | |
Impairment of finite-lived intangible assets | 0 | 0 | |
Intangibles, net of accumulated depreciation and amortization | 22,531,000 | 23,784,000 | |
Deductible component of workers' compensation | 400,000 | ||
Accrued workers' compensation insurance | 14,537,000 | 15,169,000 | |
Workers' compensation insurance recovery receivables | 1,564,000 | $ 1,692,000 | |
Interest income received | $ 100,000 | 2,300,000 | |
Number of stock incentive plans | item | 1 | ||
Stock-based compensation expense | $ 1,200,000 | $ 900,000 | |
Shares of restricted stock awards included in calculation | shares | 153,000 | 166,000 | |
Stock Options [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stock options included in calculation | shares | 685,000 | 746,000 | |
Number of dilutive shares outstanding | shares | 303,000 | 129,000 | |
Restricted Stock [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of dilutive shares outstanding | shares | 83,000 | 65,000 | |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful lives | 3 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful lives | 25 years | ||
Accounting Standards Update 2014-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Revenues | $ 2,200,000 | $ 2,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Estimated Useful Lives of Property and Equipment) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | Lesser of useful life or lease term |
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 | 3 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 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)$ / agreement | Dec. 31, 2018USD ($) | |
Lessee Lease [Line Items] | ||
Lease, practical expedients package | true | |
Operating lease expiration dates | expiration dates through 2029 | |
Financing lease obligations | $ | $ 48,000 | $ 81,000 |
Financing leases payment term | monthly payments through August 2020 | |
Option to purchase assets per lease agreement | $ / agreement | 1 | |
Minimum [Member] | ||
Lessee Lease [Line Items] | ||
Leases renewal option | 1 year | |
Implicit interest rates | 3.64% | |
Maximum [Member] | ||
Lessee Lease [Line Items] | ||
Leases renewal option | 5 years | |
Implicit interest rates | 7.72% |
Leases (Amounts Reported in Una
Leases (Amounts Reported in Unaudited Condensed Consolidated Balance Sheets for Operating Leases) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets, net | $ 16,691 |
Short-term operating lease liabilities (in Accrued expenses) | $ 5,154 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Long-term operating lease liabilities | $ 11,679 |
Total operating lease liabilities | $ 16,833 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost Reported in General and Administrative Expenses in Unaudited Condensed Consolidated Statements of Income) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 1,646 |
Short-term lease costs | 64 |
Total lease cost | $ 1,710 |
Leases (Schedule of Weighted Av
Leases (Schedule of Weighted Average Remaining Lease Terms and Discount Rates) (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years 7 days |
Weighted average discount rate | 5.75% |
Leases (Summary of Remaining Op
Leases (Summary of Remaining Operating Lease Payments) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 5,747 |
2021 | 4,544 |
2022 | 3,495 |
2023 | 2,248 |
2024 | 1,726 |
Thereafter | 1,200 |
Total future minimum rental commitments | 18,960 |
Less: Imputed interest | (2,127) |
Total lease liabilities | $ 16,833 |
Leases (Supplemental Cash Flows
Leases (Supplemental Cash Flows Information) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,639 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 17,660 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | May 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Total purchase price for business acquisition | $ 3,283 | |||||
Net service revenues | $ 139,254 | 109,476 | ||||
Net income from continuing operations | 5,840 | 6,001 | ||||
Goodwill | $ 135,399 | $ 135,442 | ||||
Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 3 years | |||||
Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 25 years | |||||
Ambercare Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 12,028 | |||||
Total purchase price allocation | 51,622 | |||||
Goodwill | 28,831 | |||||
Ambercare Corporation [Member] | Minimum [Member] | Trade Name and Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 3 years | |||||
Ambercare Corporation [Member] | Maximum [Member] | Trade Name and Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 15 years | |||||
Ambercare Corporation [Member] | New Mexico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price for business acquisition | 39,600 | |||||
Cash paid for acquisition | $ 12,000 | |||||
Integration costs | $ 100 | |||||
Net service revenues | 14,800 | |||||
Net income from continuing operations | 3,400 | |||||
Arcadia Home Care And Staffing [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Integration costs | 100 | |||||
Total purchase price allocation | $ 18,852 | |||||
Net service revenues | 10,300 | |||||
Net income from continuing operations | $ 1,300 | |||||
Total purchase price for business acquisition | 18,900 | |||||
Goodwill | $ 13,072 | |||||
Arcadia Home Care And Staffing [Member] | Minimum [Member] | Trade Names, Customer Relationships and State Licenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 7 years | |||||
Arcadia Home Care And Staffing [Member] | Maximum [Member] | Trade Names, Customer Relationships and State Licenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 15 years | |||||
Affiliate Branches of Arcadia [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisitions of business cash consideration | 600 | |||||
Goodwill | $ 600 | |||||
Lifestyle Options, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price allocation | $ 4,130 | |||||
Goodwill | 2,751 | |||||
Lifestyle Options, Inc. [Member] | Minimum [Member] | Trade Name and Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 10 years | |||||
Lifestyle Options, Inc. [Member] | Maximum [Member] | Trade Name and Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, estimated useful lives | 15 years | |||||
Lifestyle Options, Inc. [Member] | Illinois [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Net service revenues | $ 1,200 | |||||
Net income from continuing operations | $ 0 | |||||
Total purchase price for business acquisition | 4,100 | |||||
Acquisitions of business cash consideration | 3,300 | |||||
Business acquisition, contingent earn-out obligation | $ 800 | |||||
Acquisition related costs | $ 48,000 |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | May 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 135,399 | $ 135,442 | |||
Ambercare Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 28,831 | ||||
Cash | 12,028 | ||||
Identifiable intangible assets | 9,944 | ||||
Accounts receivable | 6,512 | ||||
Other assets | 442 | ||||
Property and equipment | 154 | ||||
Accrued liabilities | (4,073) | ||||
Deferred tax liability | (2,138) | ||||
Financing lease | (75) | ||||
Accounts payable | (3) | ||||
Total purchase price allocation | $ 51,622 | ||||
Arcadia Home Care And Staffing [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 13,072 | ||||
Identifiable intangible assets | 2,264 | ||||
Accounts receivable | 5,317 | ||||
Other assets | 92 | ||||
Property and equipment | 155 | ||||
Accrued liabilities | (1,540) | ||||
Accounts payable | (508) | ||||
Total purchase price allocation | $ 18,852 | ||||
Lifestyle Options, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,751 | ||||
Identifiable intangible assets | 1,152 | ||||
Accounts receivable | 573 | ||||
Other assets | 32 | ||||
Property and equipment | 18 | ||||
Accrued liabilities | (291) | ||||
Accounts payable | (105) | ||||
Total purchase price allocation | $ 4,130 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Condensed Consolidated Income Statement Information) (Details) - Ambercare and Arcadia [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Net service revenues | $ 139,254 | $ 138,218 |
Operating income | 6,486 | 11,583 |
Net income | $ 5,105 | $ 7,852 |
Basic income per share | $ 0.39 | $ 0.68 |
Diluted income per share | $ 0.38 | $ 0.67 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Summary of Goodwill and Related Adjustments) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | $ 135,442 |
Adjustments to previously recorded goodwill | (43) |
Goodwill, at End of Period | 135,399 |
Personal Care [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 112,377 |
Adjustments to previously recorded goodwill | (43) |
Goodwill, at End of Period | 112,334 |
Hospice [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 22,200 |
Goodwill, at End of Period | 22,200 |
Home Health [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 865 |
Goodwill, at End of Period | $ 865 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill [Line Items] | ||
Amortization expense | $ 1.3 | $ 1.3 |
Weighted average remaining lives of identifiable intangible assets | 8 years 8 months 12 days | |
Minimum [Member] | ||
Goodwill [Line Items] | ||
Intangible assets, estimated useful lives | 3 years | |
Maximum [Member] | ||
Goodwill [Line Items] | ||
Intangible assets, estimated useful lives | 25 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Carrying Amount and Accumulated Amortization of Intangible Asset) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives: | $ 2,871 | |
Intangible assets subject to amortization: | ||
Gross carrying amount | 66,303 | |
Accumulated amortization | (46,643) | |
Net book value, intangible assets subject to amortization | 19,660 | |
Total intangible assets at March 31, 2019 | 22,531 | $ 23,784 |
Customer And Referral Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 42,356 | |
Accumulated amortization | (33,436) | |
Net book value, intangible assets subject to amortization | 8,920 | |
Total intangible assets at March 31, 2019 | 8,920 | |
Trade Names And Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 21,551 | |
Accumulated amortization | (11,175) | |
Net book value, intangible assets subject to amortization | 10,376 | |
Total intangible assets at March 31, 2019 | 10,376 | |
Non-competition Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 2,155 | |
Accumulated amortization | (2,009) | |
Net book value, intangible assets subject to amortization | 146 | |
Total intangible assets at March 31, 2019 | 146 | |
State Licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives: | 2,871 | |
Intangible assets subject to amortization: | ||
Gross carrying amount | 241 | |
Accumulated amortization | (23) | |
Net book value, intangible assets subject to amortization | 218 | |
Total intangible assets at March 31, 2019 | $ 3,089 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Schedule of Future Amortization of Intangible Assets) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 3,760 |
2020 | 3,400 |
2021 | 2,758 |
2022 | 1,724 |
2023 | 1,406 |
Thereafter | 6,612 |
Net book value, intangible assets subject to amortization | $ 19,660 |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Accounts (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Details Of Certain Balance Sheet Accounts [Abstract] | ||
Workers' compensation insurance recovery receivables | $ 1,564 | $ 1,692 |
Prepaid workers’ compensation and liability insurance | 1,152 | 1,840 |
Health insurance receivable | 676 | 564 |
Other | 3,754 | 3,002 |
Prepaid expense and other current assets | $ 7,146 | $ 7,098 |
Details of Certain Balance Sh_4
Details of Certain Balance Sheet Accounts (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Current portion of operating lease liabilities | $ 5,154 | ||
Accrued health insurance | [1] | 3,681 | $ 3,926 |
Accrued professional fees | 2,096 | 2,260 | |
Accrued payroll taxes | 1,585 | 769 | |
Other | 4,686 | 4,693 | |
Accrued Liabilities, Current | 17,202 | 11,648 | |
Health insurance reimbursement and contribution due | $ 700 | $ 600 | |
Illinois [Member] | |||
Contributions due after fund received, period | 5 days | ||
[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 $0.7 million and $0.6 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance as of March 31, 2019 and December 31, 2018, respectively. |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Financing lease obligations | $ 48,000 | $ 81,000 |
Less unamortized issuance costs | (2,636,000) | (2,797,000) |
Total | 17,412,000 | 17,284,000 |
Less current maturities | (37,000) | (62,000) |
Long-term debt | 17,375,000 | 17,222,000 |
Revolving Credit Loan [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 20,000,000 | $ 20,000,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Capital One, National Association [Member] - USD ($) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2018 | Oct. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | May 08, 2017 | |
Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | $ 269,600,000 | ||||
Debt instrument, maturity date | May 8, 2023 | ||||
Debt instrument total net leverage ratio | 4.25% | ||||
Debt issuance costs | 900,000 | ||||
Credit Agreement [Member] | Revolving Credit Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | 250,000,000 | $ 141,200,000 | $ 142,900,000 | ||
Proceeds from line of credit | 0 | ||||
Line of credit outstanding amount | $ 20,000,000 | $ 20,000,000 | |||
Debt instrument stated interest rate | 4.49% | 4.35% | |||
Credit Agreement [Member] | Delayed Draw Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | $ 19,600,000 | ||||
Credit Agreement [Member] | Minimum [Member] | Revolving Credit Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Fee charged on unused portion of revolving credit facility | 0.20% | ||||
Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument total net leverage ratio | 3.75% | ||||
Credit Agreement [Member] | Maximum [Member] | Revolving Credit Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Fee charged on unused portion of revolving credit facility | 0.35% | ||||
Credit Agreement [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 0.50% | ||||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 1.00% | ||||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 0.00% | ||||
Existing Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | $ 250,000,000 | ||||
Existing Credit Agreement [Member] | Revolving Credit Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | 125,000,000 | ||||
Existing Credit Agreement [Member] | Delayed Draw Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | 80,000,000 | ||||
Existing Credit Agreement [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | 45,000,000 | ||||
Terminated Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate loan amount available | $ 125,000,000 | ||||
Based On Applicable Senior Leverage Ratio | Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 0.75% | ||||
Based On Applicable Senior Leverage Ratio | Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 1.50% | ||||
Based On Applicable Leverage Ratio [Member] | Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 1.75% | ||||
Based On Applicable Leverage Ratio [Member] | Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate margin | 2.50% | ||||
Restriction on Dividends [Member] | Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount of dividends and distributions | $ 7,500,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
Effective income tax rate | 16.70% | 18.70% |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Federal Tax Rate) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||
Federal income tax at statutory rate | 21.00% | 21.00% | 35.00% |
State and local taxes, net of federal benefit | 6.10% | 6.90% | |
Jobs tax credits, net | (6.00%) | (10.90%) | |
162(m) disallowance for executive compensation | 2.80% | 2.20% | |
Nondeductible permanent items | 0.40% | 1.00% | |
Excess tax benefit | (7.60%) | (1.50%) | |
Effective income tax rate | 16.70% | 18.70% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019Facility | |
Senior Management [Member] | Maximum [Member] | |
Commitments and Contingencies [Line Items] | |
Employment agreement term | 4 years |
Illinois [Member] | |
Commitments and Contingencies [Line Items] | |
Number of senior living facilities | 3 |
Severance and Restructuring (Na
Severance and Restructuring (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)item | Mar. 31, 2018USD ($) | |
Total expenses related to streamlining initiatives | $ | $ 0.4 | $ 0.5 |
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) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Employee Termination Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | $ 80 |
Provision | 65 |
Utilization | (110) |
Balance | 35 |
Restructuring and Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance | 585 |
Provision | 288 |
Utilization | (311) |
Balance | $ 562 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net service revenues | $ 139,254 | $ 109,476 |
Cost of services revenues | 101,680 | 81,543 |
Gross profit | 37,574 | 27,933 |
General and administrative expenses | 29,257 | 21,537 |
Operating income | 6,243 | 4,589 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative expenses | 14,815 | 9,637 |
Operating income | 22,759 | 18,296 |
Personal Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Net service revenues | 128,641 | 109,476 |
Cost of services revenues | 95,995 | 81,543 |
Gross profit | 32,646 | 27,933 |
Personal Care [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative expenses | 12,539 | 9,637 |
Operating income | 20,107 | $ 18,296 |
Hospice [Member] | ||
Segment Reporting Information [Line Items] | ||
Net service revenues | 7,917 | |
Cost of services revenues | 3,770 | |
Gross profit | 4,147 | |
Hospice [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative expenses | 1,590 | |
Operating income | 2,557 | |
Home Health [Member] | ||
Segment Reporting Information [Line Items] | ||
Net service revenues | 2,696 | |
Cost of services revenues | 1,915 | |
Gross profit | 781 | |
Home Health [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative expenses | 686 | |
Operating income | $ 95 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation to Totals reported in the accompanying Consolidated Financial Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 6,243 | $ 4,589 |
Other general and administrative expenses | 14,442 | 11,900 |
Depreciation and amortization | 2,074 | 1,807 |
Interest income | (215) | (2,322) |
Interest expense | 618 | 910 |
Income before income taxes | 5,840 | 6,001 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ 22,759 | $ 18,296 |
Significant Payors (Revenue by
Significant Payors (Revenue by Payor Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net service revenues | $ 139,254 | $ 109,476 |
Personal Care [Member] | ||
Net service revenues | 128,641 | 109,476 |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||
Net service revenues | $ 128,641 | $ 109,476 |
Concentration risk, percentage | 100.00% | 100.00% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | State, Local And Other Governmental Programs [Member] | ||
Net service revenues | $ 72,059 | $ 67,328 |
Concentration risk, percentage | 56.00% | 61.50% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||
Net service revenues | $ 48,005 | $ 37,830 |
Concentration risk, percentage | 37.30% | 34.60% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Private Pay [Member] | ||
Net service revenues | $ 5,019 | $ 3,755 |
Concentration risk, percentage | 3.90% | 3.40% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Commercial Insurance [Member] | ||
Net service revenues | $ 1,867 | $ 563 |
Concentration risk, percentage | 1.50% | 0.50% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||
Net service revenues | $ 1,691 | |
Concentration risk, percentage | 1.30% | |
Hospice [Member] | ||
Net service revenues | $ 7,917 | |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||
Net service revenues | $ 7,917 | |
Concentration risk, percentage | 100.00% | |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||
Net service revenues | $ 361 | |
Concentration risk, percentage | 4.60% | |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||
Net service revenues | $ 166 | |
Concentration risk, percentage | 2.10% | |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Medicare [Member] | ||
Net service revenues | $ 7,390 | |
Concentration risk, percentage | 93.30% | |
Home Health [Member] | ||
Net service revenues | $ 2,696 | |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||
Net service revenues | $ 2,696 | |
Concentration risk, percentage | 100.00% | |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||
Net service revenues | $ 414 | |
Concentration risk, percentage | 15.40% | |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||
Net service revenues | $ 83 | |
Concentration risk, percentage | 3.00% | |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Medicare [Member] | ||
Net service revenues | $ 2,199 | |
Concentration risk, percentage | 81.60% |
Significant Payors (Revenue b_2
Significant Payors (Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net service revenues | $ 139,254 | $ 109,476 |
Personal Care [Member] | ||
Net service revenues | 128,641 | 109,476 |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||
Net service revenues | $ 128,641 | $ 109,476 |
Concentration risk, percentage | 100.00% | 100.00% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | Illinois [Member] | ||
Net service revenues | $ 57,596 | $ 57,386 |
Concentration risk, percentage | 44.80% | 52.40% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New York [Member] | ||
Net service revenues | $ 17,813 | $ 15,363 |
Concentration risk, percentage | 13.80% | 14.00% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||
Net service revenues | $ 17,208 | $ 11,770 |
Concentration risk, percentage | 13.40% | 10.80% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | All Other States [Member] | ||
Net service revenues | $ 36,024 | $ 24,957 |
Concentration risk, percentage | 28.00% | 22.80% |
Hospice [Member] | ||
Net service revenues | $ 7,917 | |
Hospice [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||
Net service revenues | $ 7,917 | |
Concentration risk, percentage | 100.00% | |
Hospice [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||
Net service revenues | $ 7,917 | |
Concentration risk, percentage | 100.00% | |
Home Health [Member] | ||
Net service revenues | $ 2,696 | |
Home Health [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||
Net service revenues | $ 2,696 | |
Concentration risk, percentage | 100.00% | |
Home Health [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||
Net service revenues | $ 2,696 | |
Concentration risk, percentage | 100.00% |
Significant Payors (Narrative)
Significant Payors (Narrative) (Details) - Illinois Department On Aging [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28.90% | 36.60% | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.50% | 22.50% |