Addus Homecare Corporation · NASDAQ:ADUS
Addus Homecare — Sidoti & Company Investment Conference June 2012
31 slides from Addus Homecare's conference presentation, Jun 13, 2012
Slide 1: Sidoti & Company Investment Conference
Exhibit 99.1 Sidoti & Company Investment Conference June 2012
Slide 2: Mission Statement
Mission Statement It is the primary mission of Addus HealthCare to improve the health and well being of our consumers through the provision of quality, cost-effective health care services. We will accomplish our goals by fostering an environment in which our employees enthusiastically support and ad
Slide 3: Forward-Looking Statements
Forward-Looking Statements The following information contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The f
Slide 4: About Addus
About Addus Founded in 1979 Comprehensive provider of social and medical services in the home, focused primarily on the Dual Eligible population: Personal Care Home Health Private Duty Adult Day Service 13,000+ employees 26,000+ consumers (many dual eligible) 118 Locations Across 19 States Diversifi
Slide 5: Average Census and Revenue Trends
Average Census and Revenue Trends Average Census (# of clients) Revenues (millions) 5
Slide 6: Our Clients
Our Clients Facts: Nearly 75%of thosewholiveto85willeventually needassistance at home. Approximately 50% of US healthcare spending is concentrated in 5% of the population. 97% of healthcare spending is concentrated on 50% of the population. Addus provides care for the 5% of the population that is th
Slide 7: Addus Client Profile and Economics
Addus Client Profile and Economics Home & Home Community Health Average length of Service 20 months 2.7 months Average Reimbursement per Client $16,199 (1) $3,199 (2) Gross Profit per Client Episode $4,244 $1,468 Gross Margin Percentage 26.2% 45.9% Note: Data as of December 31, 2011 (1) Home & Commu
Slide 8: Trends & Preferences
Trends & Preferences 10,000 Americans Turn 65 Every Day! U.S. Population Age 65 + (Millions)) Delivery of Care Preferences Age 50+ 100.0 90.0 Everyday Activities 24-Hour Help 80.0 70.0 13% 60.0 27% 50.0 40.0 87% 73% 30.0 20.0 Institutional Care Home Care Institutional Care Home Care 10.0 0.0 2000 20
Slide 9: Growth in Long-Term Care Expenditures
Growth in Long-Term Care Expenditures Medicaid Long Term Care Expenditures Medicaid Spending per Beneficiary $80.00 $70.00 $60.00 $30,000 $24,500 $50.00 $25,000 $40.00 $20,000 $15,000 $30.00 $9,200 $10,000 $20.00 $5,000 $10.00 $0 $0.00 Nursing Home Home Care 1990 1995 2000 2002 2004 2006 2008 2009 I
Slide 10: Current Market Opportunity
Current Market Opportunity Long-Term Care Market Home Care Market Social Funding Medical Funding $200 -$210 billion $70 -$75 billion Source: Company estimates based on: Georgetown University Long-Term Care Financing Project. “Medicare and Long-Term Care,” (February 2007), http://ltc.georgetown.edu/p
Slide 11: Addus Dual Advantage
Addus Positioned to Excel Under Healthcare Reform Addus Dual Advantage SM “The Pre-Acute Solution . . . . to the Post-AcuteProblem” SM 11
Slide 12: Dual Eligible - What is the Opportunity?
Dual EligibleWhat – is the Opportunity? Medicare Program Medicaid Programs Populations 65+ years Populations 65+ years w Income limits Hospital Services (Part A) Home Based Personal Care Post Acute Care SNF / Rehab Long term Nursing Home Care Professional Services (Part B) Duals Represent 39% of Tot
Slide 13: Dual Eligible Programs - State Strategies
Dual Eligible Programs State – Strategies MCO Plans/Programs already implemented 2013 Implementation Plans 2014 Implementation Plans No Implementation Plans Addus location(s) Source: Kaiser Commission on Medicaid and the Uninsured, May 2012
Slide 14: The Current Delivery System
The Current Delivery System “Pre-acute Continuum” Home Skilled Long-Term Home Health PCP Acute Care Personal Nursing & Acute Care Care Outpatient Hospital Care Inpatient Facility Services Health Home Services Rehab LOW COSTS HIGH Low Health Care Costs High • The current system "silos" provide care w
Slide 15: Health Plan's Nightmare - $9,200 vs. $93,000
Health Plan’s Nightmare $9,200 - vs. $93,000 Emergency Room $1,700/visit Total Episodic Cost & one-year of Nursing Home Vs. Ambulance $92,700 Acute Care Hospital $37,500/stay $1,000/ride In-Home Personal Care $9,200/year Nursing Home $24,000/year Rehab Facility $28,500/stay Sources: Consumer Health
Slide 16: Home Care - Integrated Clinical Strategy Begins In The Home
Home CareIntegrated - Clinical Strategy Begins In The Home Addus Home Addus Advocacy Call Care Aide Groups Center Community Resources Pharmacy Primary Care Physician Addus Home Health Plan Health Case Clinicians Manager Family 16
Slide 17: The Addus Difference - Integrated Pre-Acute Services
The Addus Difference Integrated – Pre-Acute Services Addus Integrated Pre-Acute Services: • Continuous monitoring of client / member medical condition(s) • Coordination of medical care with healthcare team • Early identification of disease processes • Early intervention / lower costs • Reduced pain
Slide 18: The Addus Difference - A Care Management Extension Model
The Addus Difference A Care – Management Extension Model 18
Slide 19: Results . . . and the results are!
Results . . . and the results are! 19
Slide 20: Results - Home Care Programs Improve Outcomes (Illinois)
Results Home - Care Programs Improve Outcomes HCBS Strategies: Illinois Study Reveals Significant Savings Illinois Residents Age 75+ Total vs. Nursing Home Population Conclusions: Over a 28-year period, corresponding to the development of the State’s “Community Care” Home Care Program: • The nursing
Slide 21: Results - Home Care Programs Improve Outcomes (Ohio)
Results Home - Care Programs Improve Outcomes Scripps Gerontology Center: Ohio Study Reveals Significant Savings Ohio Residents Age 60+ Conclusions: Total vs. Nursing Home Population 2300000 50000 2250000 Over a 12-year period corresponding 2200000 48000 to the State’s “Passport” Home Care 2150000 4
Slide 22: Financial Update - First Quarter 2012 Summary Financial Information
Financial UpdateFirst – Quarter 2012 Summary Financial Information First Quarter 2012 22
Slide 23: First Quarter 2012 Summary
First Quarter 2012 Summary Total net service revenues up 1.6% to $66.8M Home & Community increased 5.1% to $56.9M Home Health decreased 6.6% to $11.9M after considering the one-time adjustment to accrued Medicare estimates of $0.9M Adjusted EBITDA of $2.2M, compared to $3.0M in Q1 2011 Net income of
Slide 24: Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Income ($ in millions except per share amounts) For the Year Ended December 31, For the Three Months Ended (3) 2007 2008 2009 2010 2011(1) 3/31/2011 3/31/2012 (2) Net service revenues $ 194.6 $ 236.3 $ 259.3 $ 271.7 $ 273.1 $ 66.8 $ 67.9 Gross profit 55.3 69.1 76
Slide 25: Home & Community Segment
Home & Community Segment ($ in millions) Revenue (1) Division Pre-Corporate EBITDA Margin $225.0 20.0% $200.0 18.0% $175.0 16.0% 12.9% 14.0% $150.0 11.6% 11.3% 11.5% 11.1% 12.0% $125.0 $221.5 10.0% $100.0 $220.8 $189.0 $210.1 8.0% $75.0 6.0% $149.6 $50.0 4.0% $25.0 2.0% $0.0 0.0% CY 2007 CY 2008 CY
Slide 26: Home Health Segment
Home Health Segment ($ in millions) Revenue (1) Division Pre-Corporate EBITDA Margin $50.0 20.0% 15.3% 18.0% $40.0 14.3% 16.0% 11.7% 14.0% $30.0 10.5% 12.0% $51.6 10.0% $20.0 $51.0 8.0% $49.2 4.2% $47.3 6.0% $10.0 $44.9 4.0% 2.0% $0.0 0.0% CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 (2) Home Health 12/3
Slide 27: Summary Balance Sheet
Summary Balance Sheet ($ in millions) Key Balances 12/31/2010 12/31/2011 3/31/2012 Cash $0.8 $2.0 $ 1.3 Accounts receivable, net 71.0 72.4 73.8 Total assets 166.9 154.7 154.4 Debt, including current maturities 45.2 31.5 31.9 Stockholders’ equity 88.1 86.4 87.1 Debt to capital ratio 33.9% 26.7% 26.8%
Slide 28: Investment Highlights
Investment Highlights Large & Growing Market BroadRangeofServices and Payors Differentiated, Integrated CareModel Positioned to Excel under Healthcare Reform Significant OperationalScaleAcross NationalFootprint History of Growth through Acquisition Multiple Organic Growth Opportunities Experienced M
Slide 29: Pre-Corporate Divisional EBITDA by Reporting Segment
Pre-Corporate Divisional EBITDA by Reporting Segment ($ in millions) Home & Community Year Ended Three Months Ended 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 3/31/2011 3/31/2012 Net Service Revenues $149.6 $189.0 $210.1 $220.8 $221.5 $54.1 $56.9 Cost of Service Revenues (113.8) (141.8)
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) Year Ended Three Months Ended 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 3/31/2011 (3) 3/31/2012 (3) Net Income (loss) $0.2 $4.0 $3.6 $6.0 $(2.0) $0.9 $0.6 Goodwill and intangible asset -- -- -- -- 16.0 -- -- impairment charge Revaluation of
Slide 31: Divisional EBITDA Reconciliation
Divisional EBITDA Reconciliation ($ in millions) Home & Community Year Ended Three Months Ended 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 3/31/2011 3/31/2012 Operating Income $12.7 $17.6 $20.4 $22.7 $26.2 $5.3 $6.4 Depreciation & 3.9 4.4 3.4 2.8 2.4 0.6 0.5 Amortization DivisionalEBITDA
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