Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
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 Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Address, State or Province | TX | |
Entity File Number | 001-34504 | |
Entity Tax Identification Number | 205340172 | |
Entity Address, Address Line One | 6801 Gaylord Parkway, | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Frisco | |
Entity Address, Postal Zip Code | 75034 | |
City Area Code | (469) | |
Local Phone Number | 535-8200 | |
Entity Common Stock, Shares Outstanding | 13,218,613 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 54,792 | $ 70,406 |
Accounts receivable, net of allowances | 132,764 | 108,000 |
Prepaid expenses and other current assets | 9,148 | 7,098 |
Total current assets | 196,704 | 185,504 |
Property and equipment, net of accumulated depreciation and amortization | 11,428 | 10,658 |
Other assets | ||
Goodwill | 145,812 | 135,442 |
Intangibles, net of accumulated amortization | 36,480 | 23,784 |
Operating lease right of use assets, net | 18,260 | |
Total other assets | 200,552 | 159,226 |
Total assets | 408,684 | 355,388 |
Current liabilities | ||
Accounts payable | 13,230 | 12,238 |
Accrued payroll | 22,162 | 22,449 |
Accrued expenses | 19,087 | 11,586 |
Accrued workers' compensation insurance | 13,890 | 15,169 |
Current portion of long-term debt | 955 | 62 |
Total current liabilities | 69,324 | 61,504 |
Long-term liabilities | ||
Long-term debt, less current portion, net of debt issuance costs | 36,231 | 17,222 |
Long-term operating lease liabilities | 12,929 | |
Deferred tax liabilities, net | 617 | 494 |
Other long-term liabilities | 242 | 635 |
Total long-term liabilities | 50,019 | 18,351 |
Total liabilities | 119,343 | 79,855 |
Stockholders’ equity | ||
Common stock—$.001 par value; 40,000 authorized and 13,219 and 13,126 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 13 | 13 |
Additional paid-in capital | 181,111 | 177,683 |
Retained earnings | 108,217 | 97,837 |
Total stockholders’ equity | 289,341 | 275,533 |
Total liabilities and stockholders’ equity | $ 408,684 | $ 355,388 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 13,219,000 | 13,126,000 |
Common stock, shares outstanding | 13,219,000 | 13,126,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net service revenues | $ 149,692 | $ 131,258 | $ 288,946 | $ 240,734 |
Cost of service revenues | 109,222 | 95,515 | 210,902 | 177,058 |
Gross profit | 40,470 | 35,743 | 78,044 | 63,676 |
General and administrative expenses | 30,222 | 26,495 | 59,479 | 48,032 |
Depreciation and amortization | 2,535 | 2,335 | 4,609 | 4,142 |
Total operating expenses | 32,757 | 28,830 | 64,088 | 52,174 |
Operating income | 7,713 | 6,913 | 13,956 | 11,502 |
Interest income | (95) | (32) | (310) | (2,355) |
Interest expense | 680 | 1,382 | 1,298 | 2,293 |
Total interest expense (income), net | 585 | 1,350 | 988 | (62) |
Income before income taxes | 7,128 | 5,563 | 12,968 | 11,564 |
Income tax expense | 1,610 | 1,245 | 2,588 | 2,360 |
Net income | $ 5,518 | $ 4,318 | $ 10,380 | $ 9,204 |
Net income per common share | ||||
Basic income per share | $ 0.42 | $ 0.37 | $ 0.80 | $ 0.80 |
Diluted income per share | $ 0.41 | $ 0.36 | $ 0.77 | $ 0.78 |
Weighted average number of common shares and potential common shares outstanding: | ||||
Basic | 13,044 | 11,533 | 13,019 | 11,517 |
Diluted | 13,433 | 11,838 | 13,413 | 11,767 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements 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 | 69 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (16) | |||
Stock-based compensation | 1,856 | 1,856 | ||
Shares issued for exercise of stock options | 268 | 268 | ||
Shares issued for exercise of stock options, shares | 12 | |||
Net income | 9,204 | 9,204 | ||
Balance at Jun. 30, 2018 | 187,637 | $ 12 | 98,087 | 89,538 |
Balance, shares at Jun. 30, 2018 | 11,697 | |||
Balance at Mar. 31, 2018 | 182,078 | $ 12 | 96,846 | 85,220 |
Balance, shares at Mar. 31, 2018 | 11,691 | |||
Issuance of shares of common stock under restricted stock award agreements, shares | 9 | |||
Forfeiture of shares of common stock under restricted stock award agreements, shares | (14) | |||
Stock-based compensation | 997 | 997 | ||
Shares issued for exercise of stock options | 244 | 244 | ||
Shares issued for exercise of stock options, shares | 11 | |||
Net income | 4,318 | 4,318 | ||
Balance at Jun. 30, 2018 | 187,637 | $ 12 | 98,087 | 89,538 |
Balance, shares at Jun. 30, 2018 | 11,697 | |||
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 | 63 | |||
Stock-based compensation | 2,715 | 2,715 | ||
Shares issued for exercise of stock options | 713 | 713 | ||
Shares issued for exercise of stock options, shares | 30 | |||
Net income | 10,380 | 10,380 | ||
Balance at Jun. 30, 2019 | 289,341 | $ 13 | 181,111 | 108,217 |
Balance, shares at Jun. 30, 2019 | 13,219 | |||
Balance at Mar. 31, 2019 | 281,628 | $ 13 | 178,916 | 102,699 |
Balance, shares at Mar. 31, 2019 | 13,178 | |||
Issuance of shares of common stock under restricted stock award agreements, shares | 11 | |||
Stock-based compensation | 1,482 | 1,482 | ||
Shares issued for exercise of stock options | 713 | 713 | ||
Shares issued for exercise of stock options, shares | 30 | |||
Net income | 5,518 | 5,518 | ||
Balance at Jun. 30, 2019 | $ 289,341 | $ 13 | $ 181,111 | $ 108,217 |
Balance, shares at Jun. 30, 2019 | 13,219 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 10,380 | $ 9,204 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | ||
Depreciation and amortization | 4,609 | 4,142 |
Deferred income taxes | 123 | 245 |
Stock-based compensation | 2,715 | 1,856 |
Amortization of debt issuance costs under the credit facility | 347 | 298 |
Provision for doubtful accounts | 106 | 165 |
Loss of disposal of assets | (51) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (18,884) | 2,578 |
Prepaid expenses and other current assets | 328 | 3,287 |
Accounts payable | 641 | 2,458 |
Accrued expenses and other long-term liabilities | (4,392) | (4,069) |
Net cash (used in) provided by operating activities | (4,078) | 20,164 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (29,808) | (61,809) |
Purchases of property and equipment | (1,996) | (1,662) |
Net cash used in investing activities | (31,804) | (63,471) |
Cash flows from financing activities: | ||
Borrowings on term loan — credit facility | 19,600 | 60,420 |
Payments on term loan — credit facility | (1,125) | |
Payments for debt issuance costs under the credit facility | (52) | |
Payments on financing lease obligations | (45) | (741) |
Cash received from exercise of stock options | 713 | 268 |
Net cash provided by financing activities | 20,268 | 58,770 |
Net change in cash | (15,614) | 15,463 |
Cash, at beginning of period | 70,406 | 53,754 |
Cash, at end of period | 54,792 | 69,217 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 904 | 1,827 |
Cash paid for income taxes | 3,474 | 2,993 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Contingent and deferred consideration accrued for acquisition | $ 847 | |
Leasehold improvements acquired through tenant allowances | $ 682 |
Nature of Operations, Consolida
Nature of Operations, Consolidation, and Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 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 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. The accompanying balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements for the year ended December 31, 2018 previously filed with the SEC. 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 Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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, reserve for workers’ compensation insurance claims, accounting for stock-based compensation, accounting for income taxes, business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from these estimates. Diluted Net Income Per Common Share Basic earnings per share is calculated using our weighted-average outstanding common shares. 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 and six months ended June 30, 2019 were approximately 695,000 stock options outstanding, of which approximately 327,000 and 316,000 respectively, were dilutive. In addition, there were approximately 154,000 restricted stock awards outstanding, 62,000 and 78,000 of which were dilutive for the three and six months ended June 30, 2019, respectively. Included in the Company’s calculation of diluted earnings per share for the three and six months ended June 30, 2018 were approximately 707,000 stock options outstanding, of which approximately 230,000 and 172,000 respectively, were dilutive. In addition, there were approximately 146,000 restricted stock awards outstanding, 75,000 and 77,000 of which were dilutive for the three and six months ended June 30, 2018, respectively. 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 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 3. Leases We have historically entered into operating leases for local branches, our corporate headquarters and certain equipment. The Company’s current leases have expiration dates through 2029. Certain of our arrangements have free rent periods and/or escalating rent payment provisions. We recognize rent expense on a straight-line basis over the lease term. Certain of the Company’s leases include termination options and 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 Condensed June 30, 2019 (Amounts in Thousands) Operating lease right of use assets, net $ 18,260 Short-term operating lease liabilities (in Accrued expenses) 5,843 Long-term operating lease liabilities 12,929 Total operating lease liabilities $ 18,772 Leases Costs Components of lease cost were reported in general and administrative expenses in the Condensed Consolidated Statements of Income as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 (Amounts in Thousands) (Amounts in Thousands) Operating lease costs $ 1,558 $ 3,204 Short-term lease costs 96 160 Total lease cost $ 1,654 $ 3,364 Lease Term and Discount Rate Weighte d average remaining lease terms and discount rates for the six months ended June 30, 2019 were as follows: 2019 Operating leases: Weighted average remaining lease term in years 3.75 Weighted average discount rate 5.71 % Maturity of Lease Liabilities A summary of our remaining operating lease payments as of June 30, 2019 were as follows: Operating Leases (Amounts in Thousands) Due in the 12-month period ended June 30, 2020 $ 6,582 2021 5,548 2022 4,105 2023 2,270 2024 1,499 Thereafter 955 Total future minimum rental commitments 20,959 Less: Imputed interest (2,187 ) Total lease liabilities $ 18,772 As required by ASC 842, the future minimum operating lease payments on non-cancelable leases as of December 31, 2018 under the accounting standards in effect as of that period were as follows: Operating Leases (Amounts in Thousands) Due in the 12-month period ended December 31, 2019 $ 6,374 2020 4,820 2021 3,460 2022 2,377 2023 2,130 Thereafter 1,382 Total future minimum rental commitments $ 20,543 Supplemental cash flow information For the Six Months Ended June 30, 2019 (Amounts in Thousands) Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,465 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,743 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. Financing leases were not material as of June 30, 2019 and December 31, 2018. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions VIP Health Care Services On June 1, 2019, the Company completed the acquisition of all of the assets of VIP Health Care Services (“VIP”). The purchase price was approximately $29.9 million. The purchase of VIP was funded through a combination of the Company’s revolving credit facility and available cash. With the purchase of VIP, the Company expanded its personal care operations in the state of New York and into the New York City metropolitan area. The related acquisition costs of $0.2 million and integration costs of $0.1 million for the three and six months ended June 30, 2019. These costs were included in general and administrative expenses on the Condensed Consolidated Statements of Income, and were expensed as incurred. The results of VIP are included on the Condensed Consolidated Statements of Income from the date of the acquisition. The Company’s acquisition of VIP has been accounted for in accordance with ASC Topic 805, Business Combinations Goodwill and Other Intangible Assets Total (Amounts in Thousands) Goodwill $ 10,374 Identifiable intangible assets 15,370 Cash 110 Accounts receivable 5,986 Other assets 2,308 Property and equipment 27 Accounts payable (385 ) Accrued expenses (747 ) Accrued payroll (1,571 ) Other liabilities (1,554 ) Total purchase price allocation $ 29,918 Management’s assessment of qualitative factors affecting goodwill for VIP 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 state licenses and customer relationships, with estimated useful lives of six and eight years, respectively. 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 VIP acquisition accounted for $4.4 million of net service revenues and $0.3 million of net income prior to corporate allocation for the three and six months ended June 30, 2019. Ambercare Corporation On May 1, 2018, the Company completed the acquisition of all the issued and 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 acquisition costs were $0.5 million for each of the three and six months ended June 30, 2018. The related integration costs were $0.1 million for each of the three months ended June 30, 2019 and 2018, and $0.2 million and $0.1 million for the six months ended June 30, 2019 and 2018, respectively. These costs were included in general and administrative expenses on the Condensed Consolidated Statements of Income, and were expensed as incurred. The results of Ambercare are included on the 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 Based upon management’s valuations, which are now final, the total purchase price has been allocated as follows: 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 expenses (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 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 $15.7 million and $30.6 million of net service revenues for the three and six months ended June 30, 2019, respectively, and $9.2 million of net service revenues for each of the three and six months ended June 30, 2018. $1.8 million of net income prior to corporate allocation for the three and six months ended June 30, 2018. Arcadia Home Care & Staffing 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 acquisition costs were $0.5 million for the three and six months ended June 2018. These costs were included in general and administrative expenses on the Condensed Consolidated Statements of Income, and were expensed as incurred. The results of operations from this acquired entity are included in the 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 were 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 valuations, which are now final, 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 expenses (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 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 $10.9 million and $21.3 million of net service revenues for the three and six months June 30, 2019, respectively, and $10.8 $1.6 million of net income prior to corporate allocation for each of the three and six months ended June 30, 2018 LifeStyle Options, Inc. 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 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 contingent consideration was remeasured to zero. The Company’s acquisition of LifeStyle has been accounted for in accordance with ASC Topic 805 and the resulting goodwill and other intangible assets were 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 valuations, which are now final, 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 expenses (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 $1.3 million and $2.5 million of net service revenues for the three and six months June 30, 2019, respectively, and $1.5 million and $3.0 million for the three and six months June 30, 2018, respectively. Net income prior to corporate allocation for the three and six months ended June 30, 2019, was $0.1 million and $0.3 million of net income prior to corporate allocation for the three and six months ended June 30, 2018, respectively . The following table contains unaudited pro forma condensed consolidated income statement information of the Company had the acquisitions of VIP, Ambercare and Arcadia closed on January 1, 2018. For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 (Amounts in Thousands) (Amounts in Thousands) Net service revenues $ 159,177 $ 148,610 $ 313,511 $ 300,318 Operating income 8,260 7,490 14,205 21,246 Net income 6,091 3,259 10,597 12,974 Net income per common share Basic income per share $ 0.47 $ 0.28 $ 0.81 $ 1.13 Diluted income per share $ 0.45 $ 0.28 $ 0.79 $ 1.10 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 VIP, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets A summary of the goodwill activity for the six months ended June 30, 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 Additions for acquisitions 10,374 — — 10,374 Adjustments to previously recorded goodwill (39 ) 33 2 (4 ) Goodwill as of June 30, 2019 $ 122,712 $ 22,233 $ 867 $ 145,812 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 Company recognized goodwill of $10.4 million related to the acquisition of VIP during the three months ended June 30, 2019. The carrying amount and accumulated amortization of each identifiable intangible asset category consisted of the following as of June 30, 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 47,037 21,551 2,155 10,930 81,673 Accumulated amortization (34,139 ) (11,711 ) (2,036 ) (178 ) (48,064 ) Intangible assets subject to amortization, net 12,898 9,840 119 10,752 33,609 Total intangible assets at June 30, 2019 $ 12,898 $ 9,840 $ 119 $ 13,623 $ 36,480 The Company acquired state licenses and customer relationships of $10.7 million and $4.7 million, respectively, related to the acquisition of VIP during the three months ended June 30, 2019. The weighted average remaining lives of identifiable intangible assets as of June 30, 2019 is 7.7 years. |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 (Amounts in Thousands) Workers’ compensation insurance receivable $ 1,600 $ 1,692 Prepaid workers’ compensation and liability insurance 1,562 1,840 Health insurance receivable 1,663 564 Other 4,323 3,002 $ 9,148 $ 7,098 Accrued expenses consisted of the following: June 30, 2019 December 31, 2018 (Amounts in Thousands) Current portion of operating lease liabilities $ 5,843 $ — Accrued health insurance 4,351 3,926 Accrued professional fees 2,983 2,260 Accrued payroll taxes 1,178 769 Other 4,732 4,631 $ 19,087 $ 11,586 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Long Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consisted of the following: June 30, 2019 December 31, 2018 (Amounts in Thousands) Revolving loan under the credit facility $ 20,000 $ 20,000 Term loan under the credit facility 19,600 — Financing leases 37 81 Less unamortized issuance costs (2,451 ) (2,797 ) Total $ 37,186 $ 17,284 Less current maturities (955 ) (62 ) Long-term debt $ 36,231 $ 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 collateralized 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 loan 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. During the second quarter of 2019, the Company drew $19.6 million under the delayed draw term loan portion of its credit facility to fund, in part, the acquisition of VIP with an interest rate of 4.15% at June 30, 2019. As of June 30, 2019, the Company had a total of $20.0 million of revolving loans outstanding with an interest rate of 4.44% and the total availability under the revolving loan facility was $141.9 million. During the six months ended June 30, 2019, the Company had no draws under the revolving loan portion of its credit facility. At June 30, 2019, the Company was in compliance with our covenants under the Credit Agreement. 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% and the total availability under the revolving 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 | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The effective income tax rate was 22.6% and 22.5% for the three months ended June 30, 2019 and 2018, respectively and 20.0% and 20.5% for the six months ended June 30, 2019 and 2018. The difference between the federal statutory rate and effective income tax rates is principally due to the inclusion of state taxes and non-deductible compensation, offset by an excess tax benefit and the use of federal employment tax credits. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 Condensed Consolidated Balance Sheets and 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. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 10. 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. 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 and six months ended June 30, 2019 and 2018 along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements. Segment assets are not reviewed by the company’s chief operating decision maker function 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. The following tables present our revenues disaggregated by revenue source. For the Three Months Ended June 30, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 138,254 $ 8,437 $ 3,001 $ 149,692 Cost of services revenues 102,829 4,322 2,071 109,222 Gross profit 35,425 4,115 930 40,470 General and administrative expenses 13,232 1,548 656 15,436 Segment operating income $ 22,193 $ 2,567 $ 274 $ 25,034 For the Three Months Ended June 30, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 125,086 $ 4,649 $ 1,523 $ 131,258 Cost of services revenues 91,843 2,574 1,098 95,515 Gross profit 33,243 2,075 425 35,743 General and administrative expenses 10,309 854 343 11,506 Segment operating income $ 22,934 $ 1,221 $ 82 $ 24,237 For the Three Months Ended June 30, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 25,034 $ 24,237 Items not allocated at segment level: Other general and administrative expenses 14,786 14,989 Depreciation and amortization 2,535 2,335 Interest income (95 ) (32 ) Interest expense 680 1,382 Income before income taxes $ 7,128 $ 5,563 For the Six Months Ended June 30, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 266,895 $ 16,354 $ 5,697 $ 288,946 Cost of services revenues 198,825 8,092 3,985 210,902 Gross profit 68,070 8,262 1,712 78,044 General and administrative expenses 25,771 3,138 1,343 30,252 Segment operating income $ 42,299 $ 5,124 $ 369 $ 47,792 For the Six Months Ended June 30, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 234,562 $ 4,649 $ 1,523 $ 240,734 Cost of services revenues 173,386 2,574 1,098 177,058 Gross profit 61,176 2,075 425 63,676 General and administrative expenses 18,790 854 343 19,987 Segment operating income $ 42,386 $ 1,221 $ 82 $ 43,689 For the Six Months Ended June 30, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 47,792 $ 43,689 Items not allocated at segment level: Other general and administrative expenses 29,227 28,045 Depreciation and amortization 4,609 4,142 Interest income (310 ) (2,355 ) Interest expense 1,298 2,293 Income before income taxes $ 12,968 $ 11,564 |
Significant Payors
Significant Payors | 6 Months Ended |
Jun. 30, 2019 | |
Significant Payors [Abstract] | |
Significant Payors | 11. Significant Payors For the three and six months ended June 30, 2019 and 2018, the Company’s revenue disaggregated by payor type was as follows: Personal Care For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues State, local and other governmental programs $ 75,069 54.3 % $ 72,520 57.9 % $ 147,128 55.1 % $ 139,455 59.4 % Managed care organizations 54,126 39.1 43,295 34.6 102,132 38.3 81,538 34.8 Private pay 5,231 3.8 5,571 4.5 10,251 3.8 9,312 4.0 Commercial insurance 2,041 1.5 1,845 1.5 3,907 1.5 2,402 1.0 Other 1,787 1.3 1,855 1.5 3,477 1.3 1,855 0.8 Total personal care segment net service revenues $ 138,254 100.0 % $ 125,086 100.0 % $ 266,895 100.0 % $ 234,562 100.0 % Hospice For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 7,808 92.6 % $ 4,353 93.7 % $ 15,199 92.9 % $ 4,353 93.7 % Managed care organizations 474 5.6 295 6.3 835 5.1 295 6.3 Other 155 1.8 1 — 320 2.0 1 — Total hospice segment net service revenues $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Home Health For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 2,436 81.2 % $ 1,404 92.2 % $ 4,635 81.4 % $ 1,404 92.2 % Managed care organizations 477 15.9 108 7.1 891 15.6 108 7.1 Other 88 2.9 11 0.7 171 3.0 11 0.7 Total home health segment net service revenues $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % The percentages of segment revenue for each of the Company’s significant states for the three and six months ended June 30, 2019 and 2018 were as follows: Personal Care For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Illinois $ 59,891 43.3 % $ 58,335 46.7 % $ 117,487 44.1 % $ 115,644 49.3 % New York 23,020 16.7 15,800 12.6 40,833 15.3 31,185 13.3 New Mexico 18,135 13.1 14,794 11.8 35,343 13.2 26,581 11.3 All other states 37,208 26.9 36,157 28.9 73,232 27.4 61,152 26.1 Total personal care segment net service revenues $ 138,254 100.0 % $ 125,086 100.0 % $ 266,895 100.0 % $ 234,562 100.0 % Hospice For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Total hospice segment net service revenues $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Home Health For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % Total home health segment net service revenues $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % 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 27.5% and 30.4% of the Company’s net service revenues for the three months ended June 30, 2019 and 2018, respectively, and accounted for 28.2% and 33.1% of the Company’s net service revenues for the six months ended June 30, 2019 and 2018, respectively. The related receivables due from the Illinois Department on Aging represented 27.7% and 22.5% of the Company’s net accounts receivable at June 30, 2019 and December 31, 2018, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On August 1, 2019, the Company completed the acquisition of Alliance Home Health Care, LLC (“Alliance”) for approximately $23.5 million. Additionally, the Company acquired the assets of Foremost Home Care (“Foremost”) for approximately $1.4 million. The Company funded these acquisitions through a combination of the revolving loan portion of its credit facility and available cash. With the purchase of Alliance, the Company expanded its home health and hospice operations in the state of New Mexico. The addition of Foremost will support the Company’s growth strategy in the New York City market area. The Company is currently assessing the fair value of identifiable net assets acquired. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying 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. The accompanying balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements for the year ended December 31, 2018 previously filed with the SEC. 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 | Principles of Consolidation These Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
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, reserve for workers’ compensation insurance claims, accounting for stock-based compensation, accounting for income taxes, business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from these estimates. |
Diluted Net Income Per Common Share | Diluted Net Income Per Common Share Basic earnings per share is calculated using our weighted-average outstanding common shares. 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 and six months ended June 30, 2019 were approximately 695,000 stock options outstanding, of which approximately 327,000 and 316,000 respectively, were dilutive. In addition, there were approximately 154,000 restricted stock awards outstanding, 62,000 and 78,000 of which were dilutive for the three and six months ended June 30, 2019, respectively. Included in the Company’s calculation of diluted earnings per share for the three and six months ended June 30, 2018 were approximately 707,000 stock options outstanding, of which approximately 230,000 and 172,000 respectively, were dilutive. In addition, there were approximately 146,000 restricted stock awards outstanding, 75,000 and 77,000 of which were dilutive for the three and six months ended June 30, 2018, respectively. |
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 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Amounts Reported in Condensed Consolidated Balance Sheets for Operating Leases | Amounts reported in the Condensed June 30, 2019 (Amounts in Thousands) Operating lease right of use assets, net $ 18,260 Short-term operating lease liabilities (in Accrued expenses) 5,843 Long-term operating lease liabilities 12,929 Total operating lease liabilities $ 18,772 |
Components of Lease Cost Reported in General and Administrative Expenses in Condensed Consolidated Statements of Income | Components of lease cost were reported in general and administrative expenses in the Condensed Consolidated Statements of Income as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 (Amounts in Thousands) (Amounts in Thousands) Operating lease costs $ 1,558 $ 3,204 Short-term lease costs 96 160 Total lease cost $ 1,654 $ 3,364 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Weighte d average remaining lease terms and discount rates for the six months ended June 30, 2019 were as follows: 2019 Operating leases: Weighted average remaining lease term in years 3.75 Weighted average discount rate 5.71 % |
Summary of Remaining Operating Lease Payments | A summary of our remaining operating lease payments as of June 30, 2019 were as follows: Operating Leases (Amounts in Thousands) Due in the 12-month period ended June 30, 2020 $ 6,582 2021 5,548 2022 4,105 2023 2,270 2024 1,499 Thereafter 955 Total future minimum rental commitments 20,959 Less: Imputed interest (2,187 ) Total lease liabilities $ 18,772 |
Summary of Future Minimum Operating Lease Payments | As required by ASC 842, the future minimum operating lease payments on non-cancelable leases as of December 31, 2018 under the accounting standards in effect as of that period were as follows: Operating Leases (Amounts in Thousands) Due in the 12-month period ended December 31, 2019 $ 6,374 2020 4,820 2021 3,460 2022 2,377 2023 2,130 Thereafter 1,382 Total future minimum rental commitments $ 20,543 |
Supplemental Cash Flows Information | For the Six Months Ended June 30, 2019 (Amounts in Thousands) Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,465 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,743 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
VIP Health Care Services [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Based upon management’s valuation, which is preliminary and subject to completion of working capital adjustments, the total purchase price has been allocated as follows: Total (Amounts in Thousands) Goodwill $ 10,374 Identifiable intangible assets 15,370 Cash 110 Accounts receivable 5,986 Other assets 2,308 Property and equipment 27 Accounts payable (385 ) Accrued expenses (747 ) Accrued payroll (1,571 ) Other liabilities (1,554 ) Total purchase price allocation $ 29,918 |
Ambercare Corporation [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Based upon management’s valuations, which are now final, the total purchase price has been allocated as follows: 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 expenses (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 | Based upon management’s valuations, which are now final, 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 expenses (1,540 ) Accounts payable (508 ) Total purchase price allocation $ 18,852 |
Lifestyle Options, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Based upon management’s valuations, which are now final, 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 expenses (291 ) Accounts payable (105 ) Total purchase price allocation $ 4,130 |
VIP, 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 VIP, Ambercare and Arcadia closed on January 1, 2018. For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 (Amounts in Thousands) (Amounts in Thousands) Net service revenues $ 159,177 $ 148,610 $ 313,511 $ 300,318 Operating income 8,260 7,490 14,205 21,246 Net income 6,091 3,259 10,597 12,974 Net income per common share Basic income per share $ 0.47 $ 0.28 $ 0.81 $ 1.13 Diluted income per share $ 0.45 $ 0.28 $ 0.79 $ 1.10 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Related Adjustments | A summary of the goodwill activity for the six months ended June 30, 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 Additions for acquisitions 10,374 — — 10,374 Adjustments to previously recorded goodwill (39 ) 33 2 (4 ) Goodwill as of June 30, 2019 $ 122,712 $ 22,233 $ 867 $ 145,812 |
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 June 30, 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 47,037 21,551 2,155 10,930 81,673 Accumulated amortization (34,139 ) (11,711 ) (2,036 ) (178 ) (48,064 ) Intangible assets subject to amortization, net 12,898 9,840 119 10,752 33,609 Total intangible assets at June 30, 2019 $ 12,898 $ 9,840 $ 119 $ 13,623 $ 36,480 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Accounts (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 (Amounts in Thousands) Workers’ compensation insurance receivable $ 1,600 $ 1,692 Prepaid workers’ compensation and liability insurance 1,562 1,840 Health insurance receivable 1,663 564 Other 4,323 3,002 $ 9,148 $ 7,098 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: June 30, 2019 December 31, 2018 (Amounts in Thousands) Current portion of operating lease liabilities $ 5,843 $ — Accrued health insurance 4,351 3,926 Accrued professional fees 2,983 2,260 Accrued payroll taxes 1,178 769 Other 4,732 4,631 $ 19,087 $ 11,586 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Long Term Debt [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: June 30, 2019 December 31, 2018 (Amounts in Thousands) Revolving loan under the credit facility $ 20,000 $ 20,000 Term loan under the credit facility 19,600 — Financing leases 37 81 Less unamortized issuance costs (2,451 ) (2,797 ) Total $ 37,186 $ 17,284 Less current maturities (955 ) (62 ) Long-term debt $ 36,231 $ 17,222 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenues Disaggregated by Revenue Source | The following tables present our revenues disaggregated by revenue source. For the Three Months Ended June 30, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 138,254 $ 8,437 $ 3,001 $ 149,692 Cost of services revenues 102,829 4,322 2,071 109,222 Gross profit 35,425 4,115 930 40,470 General and administrative expenses 13,232 1,548 656 15,436 Segment operating income $ 22,193 $ 2,567 $ 274 $ 25,034 For the Three Months Ended June 30, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 125,086 $ 4,649 $ 1,523 $ 131,258 Cost of services revenues 91,843 2,574 1,098 95,515 Gross profit 33,243 2,075 425 35,743 General and administrative expenses 10,309 854 343 11,506 Segment operating income $ 22,934 $ 1,221 $ 82 $ 24,237 For the Three Months Ended June 30, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 25,034 $ 24,237 Items not allocated at segment level: Other general and administrative expenses 14,786 14,989 Depreciation and amortization 2,535 2,335 Interest income (95 ) (32 ) Interest expense 680 1,382 Income before income taxes $ 7,128 $ 5,563 For the Six Months Ended June 30, 2019 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 266,895 $ 16,354 $ 5,697 $ 288,946 Cost of services revenues 198,825 8,092 3,985 210,902 Gross profit 68,070 8,262 1,712 78,044 General and administrative expenses 25,771 3,138 1,343 30,252 Segment operating income $ 42,299 $ 5,124 $ 369 $ 47,792 For the Six Months Ended June 30, 2018 (Amounts in Thousands) Personal Care Hospice Home Health Total Net service revenues $ 234,562 $ 4,649 $ 1,523 $ 240,734 Cost of services revenues 173,386 2,574 1,098 177,058 Gross profit 61,176 2,075 425 63,676 General and administrative expenses 18,790 854 343 19,987 Segment operating income $ 42,386 $ 1,221 $ 82 $ 43,689 For the Six Months Ended June 30, 2019 2018 (Amounts in Thousands) Segment Reconciliation: Total segment operating income $ 47,792 $ 43,689 Items not allocated at segment level: Other general and administrative expenses 29,227 28,045 Depreciation and amortization 4,609 4,142 Interest income (310 ) (2,355 ) Interest expense 1,298 2,293 Income before income taxes $ 12,968 $ 11,564 |
Significant Payors (Tables)
Significant Payors (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Payors [Abstract] | |
Schedule of Revenue Disaggregated by Payor Type | For the three and six months ended June 30, 2019 and 2018, the Company’s revenue disaggregated by payor type was as follows: Personal Care For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues State, local and other governmental programs $ 75,069 54.3 % $ 72,520 57.9 % $ 147,128 55.1 % $ 139,455 59.4 % Managed care organizations 54,126 39.1 43,295 34.6 102,132 38.3 81,538 34.8 Private pay 5,231 3.8 5,571 4.5 10,251 3.8 9,312 4.0 Commercial insurance 2,041 1.5 1,845 1.5 3,907 1.5 2,402 1.0 Other 1,787 1.3 1,855 1.5 3,477 1.3 1,855 0.8 Total personal care segment net service revenues $ 138,254 100.0 % $ 125,086 100.0 % $ 266,895 100.0 % $ 234,562 100.0 % Hospice For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 7,808 92.6 % $ 4,353 93.7 % $ 15,199 92.9 % $ 4,353 93.7 % Managed care organizations 474 5.6 295 6.3 835 5.1 295 6.3 Other 155 1.8 1 — 320 2.0 1 — Total hospice segment net service revenues $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Home Health For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Medicare $ 2,436 81.2 % $ 1,404 92.2 % $ 4,635 81.4 % $ 1,404 92.2 % Managed care organizations 477 15.9 108 7.1 891 15.6 108 7.1 Other 88 2.9 11 0.7 171 3.0 11 0.7 Total home health segment net service revenues $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % |
Schedule of Revenue by Geographic Location | The percentages of segment revenue for each of the Company’s significant states for the three and six months ended June 30, 2019 and 2018 were as follows: Personal Care For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Illinois $ 59,891 43.3 % $ 58,335 46.7 % $ 117,487 44.1 % $ 115,644 49.3 % New York 23,020 16.7 15,800 12.6 40,833 15.3 31,185 13.3 New Mexico 18,135 13.1 14,794 11.8 35,343 13.2 26,581 11.3 All other states 37,208 26.9 36,157 28.9 73,232 27.4 61,152 26.1 Total personal care segment net service revenues $ 138,254 100.0 % $ 125,086 100.0 % $ 266,895 100.0 % $ 234,562 100.0 % Hospice For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Total hospice segment net service revenues $ 8,437 100.0 % $ 4,649 100.0 % $ 16,354 100.0 % $ 4,649 100.0 % Home Health For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues Amount (in Thousands) % of Segment Net Service Revenues New Mexico $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % Total home health segment net service revenues $ 3,001 100.0 % $ 1,523 100.0 % $ 5,697 100.0 % $ 1,523 100.0 % |
Nature of Operations, Consoli_2
Nature of Operations, Consolidation, and Presentation of Financial Statements (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Options [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of stock options included in calculation | 695,000 | 707,000 | 695,000 | 707,000 |
Number of dilutive shares outstanding | 327,000 | 230,000 | 316,000 | 172,000 |
Restricted Stock [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of dilutive shares outstanding | 62,000 | 75,000 | 78,000 | 77,000 |
Shares of restricted stock awards included in calculation | 154,000 | 146,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Lease [Line Items] | |
Operating lease expiration dates | expiration dates through 2029 |
Minimum [Member] | |
Lessee Lease [Line Items] | |
Leases termination and renewal option | 1 year |
Maximum [Member] | |
Lessee Lease [Line Items] | |
Leases termination and renewal option | 5 years |
Leases (Amounts Reported in Con
Leases (Amounts Reported in Condensed Consolidated Balance Sheets for Operating Leases) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right of use assets, net | $ 18,260 |
Short-term operating lease liabilities (in Accrued expenses) | $ 5,843 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Long-term operating lease liabilities | $ 12,929 |
Total operating lease liabilities | $ 18,772 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost Reported in General and Administrative Expenses in Condensed Consolidated Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,558 | $ 3,204 |
Short-term lease costs | 96 | 160 |
Total lease cost | $ 1,654 | $ 3,364 |
Leases (Schedule of Weighted Av
Leases (Schedule of Weighted Average Remaining Lease Terms and Discount Rates) (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term in years | 3 years 9 months |
Weighted average discount rate | 5.71% |
Leases (Summary of Remaining Op
Leases (Summary of Remaining Operating Lease Payments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 6,582 |
2021 | 5,548 |
2022 | 4,105 |
2023 | 2,270 |
2024 | 1,499 |
Thereafter | 955 |
Total future minimum rental commitments | 20,959 |
Less: Imputed interest | (2,187) |
Total lease liabilities | $ 18,772 |
Leases (Summary of Future Minim
Leases (Summary of Future Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,374 |
2020 | 4,820 |
2021 | 3,460 |
2022 | 2,377 |
2023 | 2,130 |
Thereafter | 1,382 |
Total future minimum rental commitments | $ 20,543 |
Leases (Supplemental Cash Flows
Leases (Supplemental Cash Flows Information) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3,465 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 3,743 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) | Jun. 01, 2019 | May 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||||
Total purchase price for business acquisition | $ 29,808,000 | $ 61,809,000 | |||||||
Net service revenues | $ 149,692,000 | $ 131,258,000 | 288,946,000 | 240,734,000 | |||||
Net income from continuing operations | 7,128,000 | 5,563,000 | $ 12,968,000 | 11,564,000 | |||||
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 | ||||||||
VIP Health Care Services [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price for business acquisition | $ 29,900,000 | ||||||||
Acquisition related costs | 200,000 | $ 200,000 | |||||||
Integration costs | 100,000 | 100,000 | |||||||
Cash paid for acquisition | 110,000 | ||||||||
Total purchase price allocation | $ 29,918,000 | ||||||||
VIP Health Care Services [Member] | New York [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Net service revenues | 4,400,000 | 4,400,000 | |||||||
Net income from continuing operations | 300,000 | $ 300,000 | |||||||
VIP Health Care Services [Member] | State Licenses [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 6 years | ||||||||
VIP Health Care Services [Member] | Customer Relationships [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 8 years | ||||||||
Ambercare Corporation [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition | $ 12,028,000 | ||||||||
Total purchase price allocation | 51,622,000 | ||||||||
Ambercare Corporation [Member] | New Mexico [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price for business acquisition | 39,600,000 | ||||||||
Acquisition related costs | 500,000 | 500,000 | |||||||
Integration costs | 100,000 | 100,000 | $ 200,000 | 100,000 | |||||
Net service revenues | 15,700,000 | 9,200,000 | 30,600,000 | 9,200,000 | |||||
Net income from continuing operations | 3,700,000 | 1,800,000 | $ 7,100,000 | 1,800,000 | |||||
Cash paid for acquisition | $ 12,000,000 | ||||||||
Ambercare Corporation [Member] | Trade Name and Customer Relationships [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 3 years | ||||||||
Ambercare Corporation [Member] | Trade Name and Customer Relationships [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 15 years | ||||||||
Arcadia Home Care And Staffing [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition related costs | 500,000 | 500,000 | |||||||
Net service revenues | 10,900,000 | 10,800,000 | $ 21,300,000 | 10,800,000 | |||||
Net income from continuing operations | 1,400,000 | 1,600,000 | $ 2,700,000 | 1,600,000 | |||||
Total purchase price allocation | $ 18,852,000 | ||||||||
Total purchase price for business acquisition | $ 18,900,000 | ||||||||
Arcadia Home Care And Staffing [Member] | Trade Names, Customer Relationships and State Licenses [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 7 years | ||||||||
Arcadia Home Care And Staffing [Member] | Trade Names, Customer Relationships and State Licenses [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 15 years | ||||||||
Lifestyle Options, Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price allocation | $ 4,130,000 | ||||||||
Lifestyle Options, Inc. [Member] | Illinois [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Net service revenues | 1,300,000 | 1,500,000 | $ 2,500,000 | 3,000,000 | |||||
Net income from continuing operations | $ 100,000 | $ 100,000 | $ 100,000 | $ 300,000 | |||||
Total purchase price for business acquisition | 4,100,000 | ||||||||
Acquisitions of business cash consideration | 3,300,000 | ||||||||
Business acquisition, contingent earn-out obligation | $ 800,000 | ||||||||
Contingent consideration, remeasured | $ 0 | ||||||||
Lifestyle Options, Inc. [Member] | Trade Name and Customer Relationships [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 10 years | ||||||||
Lifestyle Options, Inc. [Member] | Trade Name and Customer Relationships [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets, estimated useful lives | 15 years |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 01, 2019 | Dec. 31, 2018 | May 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 145,812 | $ 135,442 | ||||
VIP Health Care Services [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 10,400 | $ 10,374 | ||||
Identifiable intangible assets | 15,370 | |||||
Cash | 110 | |||||
Accounts receivable | 5,986 | |||||
Other assets | 2,308 | |||||
Property and equipment | 27 | |||||
Accounts payable | (385) | |||||
Accrued expenses | (747) | |||||
Accrued payroll | (1,571) | |||||
Other liabilities | (1,554) | |||||
Total purchase price allocation | $ 29,918 | |||||
Ambercare Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 28,831 | |||||
Identifiable intangible assets | 9,944 | |||||
Cash | 12,028 | |||||
Accounts receivable | 6,512 | |||||
Other assets | 442 | |||||
Property and equipment | 154 | |||||
Accounts payable | (3) | |||||
Accrued expenses | (4,073) | |||||
Deferred tax liability | (2,138) | |||||
Financing lease | (75) | |||||
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 | |||||
Accounts payable | (508) | |||||
Accrued expenses | (1,540) | |||||
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 | |||||
Accounts payable | (105) | |||||
Accrued expenses | (291) | |||||
Total purchase price allocation | $ 4,130 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Condensed Consolidated Income Statement Information) (Details) - VIP, Ambercare and Arcadia [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Net service revenues | $ 159,177 | $ 148,610 | $ 313,511 | $ 300,318 |
Operating income | 8,260 | 7,490 | 14,205 | 21,246 |
Net income | $ 6,091 | $ 3,259 | $ 10,597 | $ 12,974 |
Basic income per share | $ 0.47 | $ 0.28 | $ 0.81 | $ 1.13 |
Diluted income per share | $ 0.45 | $ 0.28 | $ 0.79 | $ 1.10 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Summary of Goodwill and Related Adjustments) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | $ 135,442 |
Additions for acquisitions | 10,374 |
Adjustments to previously recorded goodwill | (4) |
Goodwill, at End of Period | 145,812 |
Personal Care [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 112,377 |
Additions for acquisitions | 10,374 |
Adjustments to previously recorded goodwill | (39) |
Goodwill, at End of Period | 122,712 |
Hospice [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 22,200 |
Adjustments to previously recorded goodwill | 33 |
Goodwill, at End of Period | 22,233 |
Home Health [Member] | |
Goodwill [Line Items] | |
Goodwill, at Beginning of Period | 865 |
Adjustments to previously recorded goodwill | 2 |
Goodwill, at End of Period | $ 867 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 01, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 145,812 | $ 145,812 | $ 135,442 | |||
Amortization expense | 1,400 | $ 1,800 | $ 2,700 | $ 3,000 | ||
Weighted average remaining lives of identifiable intangible assets | 7 years 8 months 12 days | |||||
VIP Health Care Services [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 10,400 | $ 10,400 | $ 10,374 | |||
VIP Health Care Services [Member] | State Licenses [Member] | ||||||
Goodwill [Line Items] | ||||||
Intangible assets, estimated useful lives | 6 years | |||||
Finite-lived intangible assets related to acquisition | 10,700 | |||||
VIP Health Care Services [Member] | Customer Relationships [Member] | ||||||
Goodwill [Line Items] | ||||||
Intangible assets, estimated useful lives | 8 years | |||||
Finite-lived intangible assets related to acquisition | $ 4,700 | |||||
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 | Jun. 30, 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 | 81,673 | |
Accumulated amortization | (48,064) | |
Intangible assets subject to amortization, net | 33,609 | |
Total intangible assets at June 30, 2019 | 36,480 | $ 23,784 |
Customer And Referral Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 47,037 | |
Accumulated amortization | (34,139) | |
Intangible assets subject to amortization, net | 12,898 | |
Total intangible assets at June 30, 2019 | 12,898 | |
Trade Names And Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 21,551 | |
Accumulated amortization | (11,711) | |
Intangible assets subject to amortization, net | 9,840 | |
Total intangible assets at June 30, 2019 | 9,840 | |
Non-competition Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Gross carrying amount | 2,155 | |
Accumulated amortization | (2,036) | |
Intangible assets subject to amortization, net | 119 | |
Total intangible assets at June 30, 2019 | 119 | |
State Licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives: | 2,871 | |
Intangible assets subject to amortization: | ||
Gross carrying amount | 10,930 | |
Accumulated amortization | (178) | |
Intangible assets subject to amortization, net | 10,752 | |
Total intangible assets at June 30, 2019 | $ 13,623 |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Accounts (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Details Of Certain Balance Sheet Accounts [Abstract] | ||
Workers’ compensation insurance receivable | $ 1,600 | $ 1,692 |
Prepaid workers’ compensation and liability insurance | 1,562 | 1,840 |
Health insurance receivable | 1,663 | 564 |
Other | 4,323 | 3,002 |
Prepaid expense and other current assets | $ 9,148 | $ 7,098 |
Details of Certain Balance Sh_4
Details of Certain Balance Sheet Accounts (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Details Of Certain Balance Sheet Accounts [Abstract] | ||
Current portion of operating lease liabilities | $ 5,843 | |
Accrued health insurance | 4,351 | $ 3,926 |
Accrued professional fees | 2,983 | 2,260 |
Accrued payroll taxes | 1,178 | 769 |
Other | 4,732 | 4,631 |
Accrued Liabilities, Current | $ 19,087 | $ 11,586 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Financing leases | $ 37 | $ 81 |
Less unamortized issuance costs | (2,451) | (2,797) |
Total | 37,186 | 17,284 |
Less current maturities | (955) | (62) |
Long-term debt | 36,231 | 17,222 |
Revolving Credit Loan [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 20,000 | $ 20,000 |
Term Loan [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 19,600 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Capital One, National Association [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2018 | Oct. 30, 2018 | Jun. 30, 2019 | Jun. 30, 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 | $ 141,900,000 | $ 141,900,000 | $ 142,900,000 | ||
Proceeds from line of credit | $ 0 | |||||
Debt instrument stated interest rate | 4.44% | 4.44% | 4.35% | |||
Line of credit outstanding amount | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||
Credit Agreement [Member] | Delayed Draw Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum aggregate loan amount available | $ 19,600,000 | |||||
Proceeds from line of credit | $ 19,600,000 | |||||
Debt instrument stated interest rate | 4.15% | 4.15% | ||||
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.60% | 22.50% | 20.00% | 20.50% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 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 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Information (Summary of
Segment Information (Summary of Revenues Disaggregated by Revenue Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net service revenues | $ 149,692 | $ 131,258 | $ 288,946 | $ 240,734 |
Cost of services revenues | 109,222 | 95,515 | 210,902 | 177,058 |
Gross profit | 40,470 | 35,743 | 78,044 | 63,676 |
General and administrative expenses | 30,222 | 26,495 | 59,479 | 48,032 |
Operating income | 7,713 | 6,913 | 13,956 | 11,502 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative expenses | 15,436 | 11,506 | 30,252 | 19,987 |
Operating income | 25,034 | 24,237 | 47,792 | 43,689 |
Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 138,254 | 125,086 | 266,895 | 234,562 |
Cost of services revenues | 102,829 | 91,843 | 198,825 | 173,386 |
Gross profit | 35,425 | 33,243 | 68,070 | 61,176 |
Personal Care [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative expenses | 13,232 | 10,309 | 25,771 | 18,790 |
Operating income | 22,193 | 22,934 | 42,299 | 42,386 |
Hospice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 8,437 | 4,649 | 16,354 | 4,649 |
Cost of services revenues | 4,322 | 2,574 | 8,092 | 2,574 |
Gross profit | 4,115 | 2,075 | 8,262 | 2,075 |
Hospice [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative expenses | 1,548 | 854 | 3,138 | 854 |
Operating income | 2,567 | 1,221 | 5,124 | 1,221 |
Home Health [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 3,001 | 1,523 | 5,697 | 1,523 |
Cost of services revenues | 2,071 | 1,098 | 3,985 | 1,098 |
Gross profit | 930 | 425 | 1,712 | 425 |
Home Health [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative expenses | 656 | 343 | 1,343 | 343 |
Operating income | $ 274 | $ 82 | $ 369 | $ 82 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation to Totals reported in the accompanying Consolidated Financial Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 7,713 | $ 6,913 | $ 13,956 | $ 11,502 |
Other general and administrative expenses | 14,786 | 14,989 | 29,227 | 28,045 |
Depreciation and amortization | 2,535 | 2,335 | 4,609 | 4,142 |
Interest income | (95) | (32) | (310) | (2,355) |
Interest expense | 680 | 1,382 | 1,298 | 2,293 |
Income before income taxes | 7,128 | 5,563 | 12,968 | 11,564 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 25,034 | $ 24,237 | $ 47,792 | $ 43,689 |
Significant Payors (Revenue Dis
Significant Payors (Revenue Disaggregated by Payor Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net service revenues | $ 149,692 | $ 131,258 | $ 288,946 | $ 240,734 |
Personal Care [Member] | ||||
Net service revenues | 138,254 | 125,086 | 266,895 | 234,562 |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||||
Net service revenues | $ 138,254 | $ 125,086 | $ 266,895 | $ 234,562 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | State, Local And Other Governmental Programs [Member] | ||||
Net service revenues | $ 75,069 | $ 72,520 | $ 147,128 | $ 139,455 |
Concentration risk, percentage | 54.30% | 57.90% | 55.10% | 59.40% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||||
Net service revenues | $ 54,126 | $ 43,295 | $ 102,132 | $ 81,538 |
Concentration risk, percentage | 39.10% | 34.60% | 38.30% | 34.80% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Private Pay [Member] | ||||
Net service revenues | $ 5,231 | $ 5,571 | $ 10,251 | $ 9,312 |
Concentration risk, percentage | 3.80% | 4.50% | 3.80% | 4.00% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Commercial Insurance [Member] | ||||
Net service revenues | $ 2,041 | $ 1,845 | $ 3,907 | $ 2,402 |
Concentration risk, percentage | 1.50% | 1.50% | 1.50% | 1.00% |
Personal Care [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||||
Net service revenues | $ 1,787 | $ 1,855 | $ 3,477 | $ 1,855 |
Concentration risk, percentage | 1.30% | 1.50% | 1.30% | 0.80% |
Hospice [Member] | ||||
Net service revenues | $ 8,437 | $ 4,649 | $ 16,354 | $ 4,649 |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||||
Net service revenues | $ 8,437 | $ 4,649 | $ 16,354 | $ 4,649 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||||
Net service revenues | $ 474 | $ 295 | $ 835 | $ 295 |
Concentration risk, percentage | 5.60% | 6.30% | 5.10% | 6.30% |
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||||
Net service revenues | $ 155 | $ 1 | $ 320 | $ 1 |
Concentration risk, percentage | 1.80% | 2.00% | ||
Hospice [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Medicare [Member] | ||||
Net service revenues | $ 7,808 | $ 4,353 | $ 15,199 | $ 4,353 |
Concentration risk, percentage | 92.60% | 93.70% | 92.90% | 93.70% |
Home Health [Member] | ||||
Net service revenues | $ 3,001 | $ 1,523 | $ 5,697 | $ 1,523 |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | ||||
Net service revenues | $ 3,001 | $ 1,523 | $ 5,697 | $ 1,523 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Managed Care Organizations [Member] | ||||
Net service revenues | $ 477 | $ 108 | $ 891 | $ 108 |
Concentration risk, percentage | 15.90% | 7.10% | 15.60% | 7.10% |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Other [Member] | ||||
Net service revenues | $ 88 | $ 11 | $ 171 | $ 11 |
Concentration risk, percentage | 2.90% | 0.70% | 3.00% | 0.70% |
Home Health [Member] | Revenues [Member] | Customer Concentration Risk [Member] | Medicare [Member] | ||||
Net service revenues | $ 2,436 | $ 1,404 | $ 4,635 | $ 1,404 |
Concentration risk, percentage | 81.20% | 92.20% | 81.40% | 92.20% |
Significant Payors (Revenue by
Significant Payors (Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net service revenues | $ 149,692 | $ 131,258 | $ 288,946 | $ 240,734 |
Personal Care [Member] | ||||
Net service revenues | 138,254 | 125,086 | 266,895 | 234,562 |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||||
Net service revenues | $ 138,254 | $ 125,086 | $ 266,895 | $ 234,562 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | Illinois [Member] | ||||
Net service revenues | $ 59,891 | $ 58,335 | $ 117,487 | $ 115,644 |
Concentration risk, percentage | 43.30% | 46.70% | 44.10% | 49.30% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New York [Member] | ||||
Net service revenues | $ 23,020 | $ 15,800 | $ 40,833 | $ 31,185 |
Concentration risk, percentage | 16.70% | 12.60% | 15.30% | 13.30% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||||
Net service revenues | $ 18,135 | $ 14,794 | $ 35,343 | $ 26,581 |
Concentration risk, percentage | 13.10% | 11.80% | 13.20% | 11.30% |
Personal Care [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | All Other States [Member] | ||||
Net service revenues | $ 37,208 | $ 36,157 | $ 73,232 | $ 61,152 |
Concentration risk, percentage | 26.90% | 28.90% | 27.40% | 26.10% |
Hospice [Member] | ||||
Net service revenues | $ 8,437 | $ 4,649 | $ 16,354 | $ 4,649 |
Hospice [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||||
Net service revenues | $ 8,437 | $ 4,649 | $ 16,354 | $ 4,649 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Hospice [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||||
Net service revenues | $ 8,437 | $ 4,649 | $ 16,354 | $ 4,649 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Home Health [Member] | ||||
Net service revenues | $ 3,001 | $ 1,523 | $ 5,697 | $ 1,523 |
Home Health [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | ||||
Net service revenues | $ 3,001 | $ 1,523 | $ 5,697 | $ 1,523 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Home Health [Member] | Revenues [Member] | Geographic Concentration Risk [Member] | New Mexico [Member] | ||||
Net service revenues | $ 3,001 | $ 1,523 | $ 5,697 | $ 1,523 |
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Significant Payors (Narrative)
Significant Payors (Narrative) (Details) - Illinois Department On Aging [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 27.50% | 30.40% | 28.20% | 33.10% | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 27.70% | 22.50% |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Aug. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||
Business acquisition purchase price | $ 29,808 | $ 61,809 | |
Subsequent Event [Member] | Alliance Home Health Care LLC [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition purchase price | $ 23,500 | ||
Subsequent Event [Member] | Foremost Home Care [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition purchase price | $ 1,400 |