Business
Addus HomeCare Announces Additional Delay In Form 10-K Filing And Earnings Call; Provides Status Update
Reports Strong Preliminary Fourth-quarter And Fiscal Year 2019 Financial Results Addus Also Provides Update On Covid-19 Planning And Response Efforts FRISCO,
About this update from Addus Homecare Corporation
[{"type":"text","content":"Reports Strong Preliminary Fourth-quarter And Fiscal Year 2019 Financial Results\n Addus Also Provides Update On Covid-19 Planning And Response Efforts\n\n\nFRISCO, Texas, March 17, 2020 /PRNewswire/ -- Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced that it will delay the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the \"2019 Form 10-K\") and its conference call previously scheduled for Wednesday, March 18, 2020, regarding its financial results. The Company also reported certain preliminary unaudited financial and operational data for the fourth quarter and full year 2019 and an update on the accounting matters that have caused the delay. \nCommenting on the delay and results, Dirk Allison, President and Chief Executive Officer of Addus, stated, \"Obviously, we are disappointed that we are unable to file our 2019 Form 10-K today, but we could not convince our prior audit firm that a previously unrecorded adjustment in estimating the collectability of our revenue was appropriate. In total, the adjustment will result in a total revenue reduction (or, for years prior to 2018, expense increase) of approximately $10 million to $12 million, in the aggregate, for periods 2009 to 2018, during which total revenues were in excess of $2 billion. In addition, the adjustment will have no impact on reported cash flow from operations for these years. We believe that this situation resulted from an honest difference of opinion between us, with concurrence from our current auditor, PricewaterhouseCoopers (PwC), on one hand, and our prior audit firm. However, our prior audit firm has informed us that they are unwilling to consent to the inclusion of their opinion on our prior-year audited financial statements if the Company were to make these previously unrecorded adjustments in prior periods rather than in the current period. Without their consent, the Company cannot include those required historical financial statements in our Form 10-K filing. PwC has agreed, subject to completing their customary engagement acceptance and independence procedures, to independently re-audit our financial statements for the years ended December 31, 2017 and 2018, so that we may comply with the financial statements filing requirements of the Form 10-K.\"\nAllison added, \"The a...