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FRISCO, Texas – Adas Homecare Corporation (NASDAQ: ADUS), a prominent home care service provider, today reported strong financial results for the fourth quarter ended December 31, 2023. The company's adjusted earnings per share (EPS) was $1.32. That beat the analyst consensus of $1.17 by $0.15.
Net service revenue also exceeded expectations, reaching $276.4 million versus expectations of $274.45 million, an 11.9% increase from $247.1 million in the fourth quarter last year.
The company's net income increased to $19.6 million ($1.20 per diluted share) from $14.8 million ($0.91 per diluted share) in the same period last year. Adjusted EBITDA increased significantly by 21.3% year over year, rising from $28.2 million to $34.3 million. The company's strong financial performance was reflected in the market reaction, with Addus HomeCare's stock showing a positive movement of 2.82% in the aftermarket.
Dirk Allison, chairman and chief executive officer of Adas Homecare, said the company's impressive performance was due to increased demand for home care, particularly personal care services, which account for 74% of the company's revenue. .
Allison highlighted the company's same-store organic revenue growth of 11.2% in the quarter, and record annual growth in personal care services of 12.1%. The CEO also noted the successful integration of Tennessee Quality Care, which was acquired on August 1, 2023, expanding the company's service offerings in Tennessee.
The company's financial position remains strong, with cash of $64.8 million and bank debt reduced by $126.4 million. Operating cash flow for the fourth quarter was reported at $30 million, and for the full year, he contributed $112.2 million in cash flow.
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