Addus HomeCare’s Income Up 9.8% in Q2 Despite Decrease in Home Health Revenues
Net income for home-based social and medical services provider Addus HomeCare Corporation (NASDAQ:ADUS) rose 9.8% to $1.5 million, or $0.14 per diluted share, in the second quarter ended June 30, 2012 compared to $1.3 million, or $0.12 per diluted share, the previous year. The company attributed the growth to its home and community service operations.
Gross profits saw a slight gain to $20.4 million in the quarter up from $20.1 million during the same period last year. Net service revenues totaled $70.3 million, up from $68.3 million in the second quarter of 2011.
“Our Home & Community segment continued its steady growth during the second quarter and we maintained our focus on performance improvements in our Home Health segment,” said Mark Heaney, Addus HomeCare’s president and CEO.
Second quarter net revenues for Addus HomeCare’s home and community care operations rose to $58.7 million, up 6.6% from last year. Operating income for this segment increased 17.6% to $7.1 million and comprised 12.1% of revenue. This is an improvement from 2011’s $6 million and 10.9% of revenue, which Addus attributed to an increase in average census and related billable hours, improved field productivity, lower bad debt expense, and a continued focus on cost control.
The company’s home health segment net service revenue for the second quarter decreased 12.2% to $11.6 million compared to the previous year. The home health operations experienced an operating loss of about $0.1 million, or (0.4)% of revenues, compared to an operating income of $0.8 million, comprising 6.3% of revenues, in 2011’s second quarter.
View Addus HomeCare’s earnings report.
Written by Alyssa Gerace