Addus HomeCare Corporation (NASDAQ:ADUS) Q2 2020 Earnings Conference Call - Final Transcript
Aug 11, 2020 • 09:00 am ET
with the pandemic, these individuals stay focused and completed this task while continuing to perform their normal duties.
As you saw with the financial results we announced yesterday, Addus had another solid operating performance in the second quarter of 2020. Our revenue for the second quarter was $184.6 million as compared to $148.9 million for the second quarter of 2019, an increase of 23.9%. Adjusted earnings per diluted share for the second quarter of 2020 increased to $0.73 from $0.54 in the second quarter of 2019, an increase of 35.2%. Our adjusted EBITDA for the second quarter of 2020 was $18.7 million as compared to $12.5 million for the second quarter of 2019, an increase of 49.9%. Our adjusted EBITDA margin increased to 10.1% for the quarter.
During the second quarter of 2020, we saw a decrease in our revenue of approximately $8 million due to the effect of the COVID-19 virus. This reduction occurred to varying degrees in all three segments of our business. As we have discussed on previous calls, we continue to see improvement in our same-store revenue as we have progressed through the most recent phase of the pandemic. While we cannot say for certain, we estimate our third quarter revenues will be negatively impacted approximately 2% to 3% as compared to our first quarter run rate.
As we reported, our operating cash flow in the second quarter was strong at approximately $30 million, increasing our June 30, 2020, cash balance to $158.5 million. Due to our strong financial position and following discussions with our Board, we announced last month that we would be returning the approximate $6.9 million we had automatically received from the CARES Act Provider Relief Fund relating to our Medicare business. We have made the decision to return these funds primarily for two reasons. First, we have a strong capital structure with little debt and solid ongoing operations, mitigating the need for these funds to continue our normal operations and allowing us to let others who need these funds to have access to this line.
And second, we lacked comfort with the continuing uncertainty around federal reporting and audit requirements, which may be imposed on companies in the future who chose to participate in the stimulus program. Based on these reasons, both our management and Board felt it was appropriate to return these funds.
As we have previously discussed, on July 1, 2020, the city of Chicago raised the city's minimum wage $1 to $14 per hour. This accelerates the move to a $15 per hour minimum wage ahead of what the state of Illinois had already passed. Our team has been working with state leadership to secure funding to offset this accelerated wage increase. A rate adjustment to cover the Chicago minimum wage increase is included in the fiscal year 2021 state budget, which was passed in May of this year. This increased rate to offset the city of Chicago minimum wage increase will be effective state-wide on January 1, 2021,