Addus HomeCare Corporation (NASDAQ:ADUS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 09:00 am ET


Addus HomeCare Corporation (NASDAQ:ADUS) Q2 2020 Earnings Conference Call - Final Transcript


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Brian Poff

transaction expenses of $0.04, restructuring and other costs of $0.02 and non-cash stock-based compensation of $0.09. Our tax rate for the second quarter of 2020 was 23.6%, within the range of our expectation. For the full year 2020, we continue to expect a tax rate of 23% to 25%.

DSOs were 61.8 days at the end of the second quarter of 2020 compared with 67.5 days at the end of the first quarter of 2020. During the quarter, we continued to see strong payment trends from a majority of our payers, including the Illinois Department of Aging with their DSO at 62.5 days. With the potential of pressure put on state budgets by declining tax revenues related to the COVID pandemic, we will continue to work closely with our state and managed Medicaid plans in an effort to maintain a cadence for ongoing payments that is as normal as possible.

Our second quarter net cash provided by operations totaled $30.4 million. And at June 30, 2020, the Company had cash on hand of $158.6 million. In addition to the strong cash flows from our payers during the quarter, we also benefited from the deferral of employer payroll taxes allowed under the CARES Act of approximately $7.1 million. As a result of our strong liquidity position and ongoing business operations, we have unenrolled from this program going forward.

With only $60 million of bank debt at quarter end and $223.5 million in availability under our revolver, we continue to have substantial capacity to support our acquisition strategy and look forward to continued pursuit of attractive acquisition opportunities.

This concludes our prepared comments this morning. I would like to thank you all for being with us. I'll now ask the operator to please open the line for your questions.