Addus HomeCare Corporation reported significant financial growth in its third quarter and the first nine months of fiscal year 2024, driven by increased net service revenues across its personal care, hospice, and home health segments. For the three months ended September 30, 2024, net service revenues reached $289.8 million, a 7.0% increase from $270.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $857.5 million, up 9.6% from $782.3 million year-over-year.
The company's gross profit for Q3 2024 was $92.2 million, representing 31.8% of net service revenues, compared to $86.7 million (32.0%) in Q3 2023. Operating income also improved, rising to $26.0 million (8.9% of revenues) from $22.8 million (8.4%) in the prior year. Net income for the third quarter was $20.2 million, up from $15.4 million in Q3 2023, while net income for the nine-month period increased to $54.1 million from $42.9 million.
The company’s total current assets surged to $332.8 million as of September 30, 2024, up from $200.0 million at the end of 2023, with cash balances significantly increasing to $222.9 million from $64.8 million. Total assets also rose to $1.15 billion, and total stockholders' equity increased to $947.6 million.
Strategically, Addus HomeCare has been active in acquisitions and divestitures. The company announced a definitive agreement to acquire Gentiva's personal care operations for approximately $350 million, which is expected to enhance its service capabilities across seven states. This acquisition will be funded through existing credit facilities and proceeds from a public offering completed on June 28, 2024, which raised approximately $175.6 million.
Additionally, Addus divested its New York operations for up to $23 million, a decision influenced by regulatory changes that no longer aligned with its growth strategy. The company also completed the acquisition of Upstate Home Care Solutions for $0.4 million in March 2024, further expanding its personal care services.
Despite these positive developments, Addus faces challenges, including a tight labor market and inflationary pressures impacting caregiver recruitment and retention. The company continues to navigate these market conditions while focusing on strategic growth through acquisitions and operational efficiencies.
About Addus HomeCare Corp
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