Addus HomeCare Corporation (NASDAQ: ADUS) this week reported net income for the fourth quarter ending December 31, 2012 of $3.7 million, or $0.35 per diluted share, a 50% increase over the same quarter in 2011.
The company attributes positive performance to the sale of its home health service line as well as its Home and Community business segments.
Total net service revenues for the fourth quarter totaled $63.8 million, a 9.4% increase compared to the prior year quarter, with Addus also reporting significant full-year gains.
On a twelve month basis, total net revenues were $244.3 million, increasing 6.2% from the prior year period, with annual net income for 2012 of $7.6 million, or $0.71 per diluted share, compared to a reported loss in 2011 of $2 million or $0.18 per diluted share.
“Our Home and Community segment continued to demonstrate positive growth during the fourth quarter and we are pleased with the sale of our home health business,” said Addus President and CEO Mark Heaney.
Last month, the company completed the sale of its home health service line to LHC Group Inc., a post-acute provider.
The transaction encompasses 19 home health agencies and two hospice agencies in five states. Specifically, LHC will acquire all of the assets used in the Addus’ home health business in Arkansas, Nevada and South Carolina. as well as 90% of the company’s home health business in California and Illinois, with Addus retaining a 10% ownership interest in both locations.
Addus expects the benefits of completing this transaction will be increased management to focus on developing its core home and community business and the expansion of programs offered to managed care plans; lower debt; and a stronger balance sheet.
Written by Jason Oliva