FRISCO, Texas, October 03, 2022--(BUSINESS WIRE)--Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home care services, today announced the acquisition of Apple Home Healthcare, LTD ("Apple"), effective October 1, 2022. Based in Chicago, Illinois, Apple serves an average daily adult census of approximately 450 patients in an 11-county metro area in and around Chicago, with annual revenues of approximately $10 million. Founded 25 years ago, Apple offers home health services for patients recovering from acute illnesses and procedures.
Commenting on the announcement, Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare Corporation, stated, "We are pleased to announce the addition of Apple to our expanding operations in the greater Chicago area, one of our largest markets. This acquisition is commensurate with our growth strategy to leverage our strong personal care presence and add clinical services. Together with our recent acquisitions of the operations of Summit Home Health and JourneyCare hospice services in the greater Chicago area, we have expanded our market coverage in both segments of clinical care. We are excited to leverage the strength of our combined operations and support more patients and families in this market.
"Importantly, Apple shares our mission with a long history of providing high-quality care by promoting the safe and cost-effective administration of home healthcare services. We are continuing to identify similar strategic acquisitions that fit our mission and strategy. We have a proven record of creating value from our acquired operations and extending our market reach in key markets. We have a capital structure that supports our ability to extend this record of growth, and we look forward to the additional opportunities ahead for Addus," added Allison.
Addus funded the acquisition through a combination of cash on hand and the Company’s revolving credit facility and is expected to be immediately accretive to financial results.
About Addus HomeCare
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 45,500 consumers through 206 locations across 22 states. For more information, please visit www.addus.com.
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "preliminary," "continue," "expect," and similar expressions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including discretionary determinations by government officials, the consummation and integration of acquisitions, anticipated transition to managed care providers, our ability to successfully execute our growth strategy, unexpected increases in SG&A and other expenses, expected benefits and unexpected costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare’s relationships with referral sources, increased competition for Addus HomeCare’s services, changes in the interpretation of government regulations, the uncertainty regarding the outcome of discussions with managed care organizations, changes in tax rates, the impact of adverse weather, higher than anticipated costs, lower than anticipated cost savings, estimation inaccuracies in future revenues, margins, earnings and growth, whether any anticipated receipt of payments will materialize, any future impact to our business operations, reimbursements and patient population due to the recent COVID-19 global pandemic, and other risks set forth in the Risk Factors section in Addus HomeCare’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2022, which is available at www.sec.gov. The financial information described herein and the periods to which they relate are preliminary estimates that are subject to change and finalization. There is no assurance that the final amounts and adjustments will not differ materially from the amounts described above, or that additional adjustments will not be identified, the impact of which may be material. Addus HomeCare undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties, and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221003005893/en/
Brian W. Poff
Executive Vice President,
Chief Financial Officer
Addus HomeCare Corporation