Addus HomeCare (ADUS)

Dru Anderson Corporate Communications, Inc.
Dirk Allison Chief Executive Officer & Chairman of the Board
Brian Poff Executive Vice President, Chief Financial Officer & Treasurer
Bradley Bickham President & Chief Operating Officer
Matthew Borsch BMO Capital
Scott Fidel Stephens
Frank Morgan RBC Capital Markets
Matthew Larew William Blair & Company
Brian Tanquilut Jefferies
John Ransom Raymond James
Lalishwar Ramgopal Sidoti & Company
Call transcript
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Good day and thank you for standing by. Welcome to the Addus HomeCare Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. now hand would to conference I Anderson. Dru Instructions] like the to over [Operator ahead. go Please

Dru Anderson

contain financial Good including conference measure forward-looking company's the according you. and third yesterday's call. call any website a measure today's earnings performance of HomeCare may or welcome calculated also This Private will most quarter expected conference discussed Act also find non-GAAP directly others, call, for within extent financial you by Litigation the of going Thank To and the XXXX to morning to beyond. that financial GAAP Addus' the statements news reviewing and meaning statements, to reconciliation the Reform release. is annual in regarding XXXX quarterly Securities to measure of among the Addus comparable XXXX,

purpose, not are intended beliefs, to the forward-looking For targets, forecasts, call made be statements statements. to forward-looking estimates, of statements foregoing statements. this this deemed like fact are Without and limiting the may of be during that identify any discussions expectations historical plans,

statements Please I sir. events over and XXXX otherwise. hereby actual - and with be any Exchange results the whether are call Allison. go as statements, company's results and or and the Chairman differ the these to now a turn forward-looking The third Addus' new among Officer, statements. Chief update may no forth of information, undertakes ahead, Consequently, MA that cautioned factors, the forward-looking future Securities obligation company affected like Dirk to result by Executive the filings it's in materially would to from Commission news others, set release. You quarter important in may operations discussed in

Dirk Allison

our quarter Officer. welcome and Financial to Operating Good Chief Chief President are Dru. Officer; Poff, earnings Brian morning third you, Thank Brad and our me With today Bickham, call. XXXX our and

in Brian quarter discuss is As overall the comments will then few results begin more custom, a detail. and will I our third with

Following third our questions. happy respond the operating are to any our be of to we and quarter our Yesterday, we comments, for performance. of announced results XXXX we'll financial proud

in will team to from I Our able quarter discuss. that the record despite pressures operating current the environment produce certain was results

the million third compared the for of the the of $XXX.X XXXX, third Our was share increase quarter of million as XXXX, Adjusted diluted $X.XX revenue an as of for or to quarter earnings increase XXXX XXXX quarter compared to of for for an $X.XX of XX.X%. $XXX per third third quarter XX.X%.

quarter compared of adjusted $XX.X XXXX Our million to quarter as for of million was the an for the increase EBITDA $XX.X third XX.X%. third of XXXX,

third billion During to in effect cases, to recent some continued which leading states balance federal September came strong and, in approximately stimulus in have positive the to our receivable done $XXX accounts job see the a XX maintaining the of a payments from cash the most flow cash a nice $XXX as Aid State Addus at quarter, plan outstanding increasing million. quarter of and we

annual effect These have takes years, were city's Chicago Chicago. been the implemented. final Over have fully discussed rate the that increase The increase increases the wage wage results without $XX, negative occurring XXXX. wage is quarter $X margin. minimum few corresponding third which I minimum July had in operating to reflected which which hour of increases effective It per past now minimum important increase on a note wage was on is minimum our our X, to cost in a this reimbursement

increase increase to X, statewide call, our January offset the during which last XXXX. reimbursement with additional Chicago be Illinois for was fiscal earnings you we State the rate of budget the to year wage XXXX As told planned minimum an effective

approved for will approval and their requested those a mentioned services. we on previously to increase. our additional that related and proposed receipt third Many it the by of trends, State have it's for from from saw results. accelerate X, making federal that programs from Illinois in Several November to We approval rate CMS receive this home XX% stimulus changes rate fourth effective included pressure requests This to they FMAP results. more of confident funding the XX% positively with through rate in by learn bill, increases to hope XXXX community-based our service about the November include increases quarter near additional appear other two has However, increase the near-term the other increase X financial and the developments states impact approval financial and entire CMS requested specific will state for some cover our utilizing these Along our to rate FMAP. these operating see the impacted reimbursement future funds requests. positive the reimbursement requests with CMS of quarter months

business, follow-up to next program. to state as the process the last we although consumer-directed timetable uncertain on survey we the no remains the In selection our protest been continue awards has this this few our our which by continue our for as on to Our word providers protest to consider to we program. ability hearing We was State meantime, response and anticipate official additional the formal months, discussed call, from the New filed provider the York released. await created CDPAP concerning concerning over our for non-award state's something

a decisions changes the our stopped await for to accepting continuity awards, contracts. margin negative new our one program additional was portion the business most any already of continue lowest due we referrals on of of York have CDPAP to uncertainty that New reimbursement we for While and

end an attentional approximately the the of As to the our the the million XXXX past our of approach CDPAP to months, from quarter have run York a decreased program of in as annualized third over rate COVID third seen million quarter $XX New and of result of impact $XX our XX of this approximately we as of revenue XXXX.

in CDPAP decline changes the York to from to status of to We limit the the we referrals. our expect existing new as absence continue revenues to continue New

quarantine in number the in of impacted variance. the caregivers third resulting Our the delta from an infections were by results in due COVID quarter also to increase surge modestly

October. the this recent as These an and While third COVID saw was surge one as missed call-offs of on call-offs. in the immaterial September decreased XXXX, number the visits quarter of through we virus effect most significant quarter did fourth in an during impact the revenues. of had steadily our due month the not to increasing of call-offs These peaked we see

concerning is our challenge another third While results, there we, companies the like vaccinations. impact issue was that most quarter to face no today

government proposed of federal all health health must know, care home of mandate you cover has our under proposed segments. Medicare vaccinated. the This condition operate with that whose and employees hospice be would vaccination Medicaid many participation or businesses As a

of ensure make we XXX possible. employers the In as also addition, focus more employees all including New well on as must city vaccinated. operating many imperative that be must that personal care state as federal or care, York, Delaware of OSHA an various health with companies, employees as and potential mandated our all of of their in Philadelphia the vaccinated. mandates it Addus are and those mandate potential their These getting mandates that vaccinated employees that have under markets employees the requirement that City are like Companies

a employees not While vaccines strongly we have for our to get steps encourage number the taken our employees, to COVID of mandated Addus has vaccine.

centered with past largest for employees. as program Over vaccine provides we for vaccination initiatives These to and and efforts vaccination vaccine prize get the communication have of mandate, track it and around of vaccinated A status. increase. ongoing These program members with Hero implemented our market current has leadership we With include includes a well corporate the seen rates designed Board stories opportunities New written a of who continue received vaccinated have vaccinated priority stipend employees and few vaccination effective have videos our a have being been the of as communications York to to as our theme to with Be that now the been months, getting caregivers increase which our number employees. rate a the

that fully received have dispersed York regiment. shot workforce challenging. process makes have of or But of New this their XX% first two dose been our caregivers today, confirmed roughly we a Our now vaccinated more as of

from We we pleased employees have response like mandate the New also embrace with not may are this but they York. our markets realized very that in all

some home on mandates health, hospice believe a our confirmed XX% vaccine personal While amount Addus, in be caregivers, in the are information. are Overall, care. seeing. York New pleased in are potential on we are vaccinated issue vaccinated progress understated these with incomplete vaccinated Based could XX% experience our we vaccination for based numbers XX% and percentages by for our we

dispersed status for vaccination particularly ascertain still is are ongoing our employees working caregivers. process, with an We to all which personal

labor seen ability and some tightening not our the Idaho any are had have the on future to segments may positioned care effect is revenues mandates hire new Oregon, organic country. due more our may some of growth and certain severe to they to be we we for continue well growth occur. as today, mandates efforts material A to any adhere on to item implemented critical our of personal these of market Many be seeing in Tennessee. shortages in effect care and A economy givers. labor our As and the continue areas which markets particularly, various

saw in during solid Personal our Care day continues in with segment XXXX. our hiring However, being September third We growth hiring into continued our of trend segment our hires in Care favorable the month of the This October. business improvement. hiring month to quarter see our Personal per overall best

September. increase our slightly of a hires a and the quarter up year in quarter caregiver in the the basis personal of most on occurring sequential with Our prior third third were X.X% over

in Now let segments. me revenue discuss our various growth operating our

for the be CDPAP third for X% our of our the XXXX. we upcoming Our care of this within to growth range expectations our high Illinois growth expect quarter of New few end operation Personal Care rate to the With same-store exclusive when segment. of program next our growth revenue increase, is our at York of compared This rate personal over was quarters.

this the of business have of performance quarters of several the the segment we pandemic. spite with last our over pleased due the are challenges faced in We to

for performance. As has strong segment of continued Health Home company it's this our our segment,

steadily with XXXX, quarter our XX.X%. third revenue admissions growth this the continuing third favorable have throughout health Since of increased our of same-store quarter. beginning trend XXXX, During the home was our

efforts hospice With our expanding health our We our our ADC On belief in see this strong part would would we our in the last continue hospice half about of we discussed believe call, during earnings focus the company. we'll last growth of and start are to we corresponding since excited the come. admissions our increase ADC year, a beginning of a steady XXXX. that operation home to our on that

to growth are this the quarter results. hospice We see beginnings our pleased of third in

same-store quarter over While our growth. X.X% approximate an revenue point XXX it our was a third over same-store decreased second hospice XXXX, strong quarter improvement in basis

of As in year, to sequential we to XX.X% the same-store basis. quarterly the strong, to on quarter higher the XXXX saw should over census be this year of admissions third This a quarter second XX.X% as growing and our lead progresses. continued continue

of the X,XXX quarter continues January from of as ADC our hospice length our of second X,XXX Our for this an stay of as half over grew XXXX improve the of in hospice third seeing expectation ADC XXXX consistent This with quarter for this improvement to our also is our point low of the year. year. of census compared last gradually improve to to median

Home Home This represents services. in We Hospice our the personal strategy have acquisition the in July, return Illinois, Effective in Health, is with X, been clinical volumes we both also we announced for and acquisition health slower our Illinois. improvement October of into census on which hospice setting. than in SNFs home Health of an to of our care ALS largest clinical facility provider our both consistent Armada closed In outside personal are our entry of Summit adding state a services and markets. This of to seeing care care our

as well to Armada welcome a We our our I to Health as Addus want new about all part our excited being company family. the and and Home Health of are team Summit members Home Hospice of

focus three provide where to of our you on As continue which acquisitions multiple all of acquisitions creating meet both saw we markets -- with of purchases, homecare. levels we these goal our

the strong personal all We a on in where This taking consumers will in focus shown past the acquiring opportunities three our disabled continue markets and segments care value during look have coverage. of to of has in homes months services pandemic. elderly with patients we and at their care XX

months support care of in members and their families. I XX us homecare for assist pandemic monitor to of proud We providing done the the outstanding as our in and materials past the our related have to the to to each pandemic continue preparations changes safely has the in industry. We patients hard in have they planning, consumers, am one am we and and I fulfilling job team each invested thankful believe and value our do our the important to But role patients the me our value and and for on raised growth opportunity our who awareness our let of turn about on our mission so by to a that, call It continue Brian. -- company. dependent to us that over day. continue and will growth industry is be focus first. our are putting work dedicated operations caregivers each provides resulting With achieving developments our

Brian Poff

improvement expected. for With morning, the profitable length had average We as Addus volume hospice good growth daily growth and quarter year-over-year continued and the and everyone. organic in of performance Care median admissions with by sequential positive third with solid home Dirk organic you, saw growth trends. XXXX. stay, health segment in a both return in of Personal we in of financial XXXX record Thank a to strong and that anticipate we end growth census hospice consistent

$XXX.X net third when million noted, X.X% quarter increase adjusting million, for were as that quarter million for the revenue Health increase $X in prior second year were an retro of Home third prior an quarter revenues were Care $XXX.X breakdown was were third from the revenue, in second total rate Illinois is our the of Hospice sequentially quarter. results. XXXX. million from increase out-of-period year. million million follows: revenues increase Dirk revenues $XXX.X service an or from As the XX.X% in in or in The for $XXX.X Personal revenue, the included revenues from the or quarter of million the And care quarter million $XX.X revenue, $XX up $X.X of XX%

referrals from in York the decided consistent As the and year growth Consumer-Directed same-store Personal in quarter spite in new our revenues, consumer-directed we mentioned, of Dirk to When program. revenue uncertainty the all X%, continued our Care excluding with to New tightening with growth our the materially trends. suspend of within program Health York expectations due New to in over variant modest X% and a X% the our XX.X% Delta market. target range labor strong of third and was during prior Home admission organic pressures quarter the was the

down of Our X.X% second XXX the improving, hospice deficit an sequentially improvement but quarter growth organic quarter. point for the XXXX is from approximately third basis

million Health to of quarter. approximately during both $XX Health far completed so was in the acquisition segments both contribution Summon of quarter and combined Armada Home Home Our Together total completed of Home X. XXXX. annualized in in from fourth revenues these the the we the with from have added which Chicago, revenue Armada recently in We quarter Hospice benefited acquisition August forward full on Hospice look a Health

pursue margin services. our increment sequentially wage saw XXXX clinical was in of reimbursement have increase. minimum yet impact XX.X% We our impact clinical This other growing last have XXXX the as third from was continue we second an the a gross Our the final meet from quarter several pipeline in margin Other quarter results in we XX% include financial percentage gross of year, attributable following: not increase XX.X%, Chicago opportunities primarily to and for to the and criteria we our quarter of largely the corresponding third acquisition the our mix a services. for negatively from evaluate in received that of increase but projects decrease as

in scheduled advance from and from XX% a a up for XX.X% revenue increase of G&A expect second expense from of increase profile. was benefit XX% on XXXX G&A the year application to and January quarter. lower acquisition we of XXXX compensation G&A stock higher November of slightly services XX.X%, X, previously with prior same Illinois With with sequentially state to slight increase expenses. their to in ago this period a reimbursement for the XX.X% fourth in clinical lower X, the the year a from the the mix expense revenue, statewide see Adjusted higher quarter was and

third The The de XXXX results XXXX following: diluted share third XX.X% the $X.XX, the lower share and expense G&A the of of for adjusted stock-based and increase quarter and net with XXXX. $X.XX adjusted of compared quarter restructuring for third the EBITDA of acquisition per costs of quarter. EBITDA COVID-XX million compensation the adjusted XXXX $X.XX. from $X.XX, Adjusted novo third income per The was noncash from the was following: an However, sequentially sequentially exclude of XX% company's second in quarter results of compared $XX.X increased quarter in for quarter. to of $X.XX the $XX.X for the de margin was XX.X% $X.XX. third exclude and expense quarter the stock-based and XXXX of second million in noncash $X.XX. Adjusted per compensation adjusted acquisition and share expenses of of expenses other novo XX.X%

the of for third rate expectation. XX.X% XXXX our tax Our was within range quarter of the

to the DSOs quarter. in second of days days For rate with the range. at third we XXXX a expect compared end the were calendar the full end mid-XX% XXXX, of tax quarter at XX.X the XX.X continue of the

quarter were the of We XX.X another third the the our payers, continue XXXX. quarter at majority ESOs payments to Department AG collection strong of days including see cash of from of down end consistent to Illinois from the whose

by September to hand XXXX, of capacity and provided with operator strategy. cash million, acquisition bank and totaling third for This we quarter, had expanded of our company prepared Under us. and I'll had with please million our with your being recently ask million execute operations see now $XXX.X to on $XXX At We revolver of end concludes respectively continue would well million line positioned $XXX.X to the third questions. the at debt. net the million. the you our availability on thank to $XXX.X and all the morning of like XX, remain this open comments strong we flows for cash cash our quarter $XX.X


[Operator Matt Instructions] line of Our with comes from BMO the Capital. first question Borsch

Your line open. is

Matthew Borsch

results, circumstances. Yes. particularly Impressive the given all

the have about are can may how And may going you Let the is comment we've valuations me for that of you the extent to through a how particularly while what that in still the all pipeline maybe and changing we've and been what prevailing that side and ask changed? case at M&A given here. be about hospice been quite elevated. I'm this interested their where valuation kind

Brian Poff

Matt. Yes,

think in think working we're really ranges what moved seeing our that pipeline, the projects currently we've I I from haven't been valuation the on.

we But selective that like where to from acquire very we think good our to also service but we're as being continue have in would standpoint we have in things we're a you strategically still valuation both lines. I what overlap know, several to with progress. a looking

feel in to we probably looking I pretty will slowdown seen still think today. bit say processes. think maybe positive I of brokered things valuations I through coming a So Haven't a about little move. seen market what we're at we've

two, think there's activity. four, bit I months quite five a three, ago, more

of last in guess, seeing that We couple the activity regard bit, months. over I a little less are

Matthew Borsch

given you that to that revenue? a Okay, great. percentage trying of business the remains the emphasize fairly of your homecare are overall small just And side

Brian Poff


this I last -- as quarters indicated of the we think couple well. we definitely in

where we assets. add been trying has services have clinical focus Our care to personal significant on

consistent home we're that a still and portion health today home of with at business. obviously -- I skilled our much smaller think what So is is looking

first happy services which care on our was personal last in acquisition we really to well clinical were with think our is this market. Summit gives So quarter Illinois. it's It I in which largest small Chicago a bring us but

more we of in like little to. size well. would preferred replicate scale, can definitely So and the future, acquisition type has If get continue where we always definitely we to a as that

Matthew Borsch

you. thank right, All


of line Fidel next Stephens. comes from the question with Scott Our

open. Your line is

Scott Fidel

could you modeling of Hi. Thanks, sequentially. tailwinds Brian. in us little a just revenues on thoughts headwinds the morning. maybe Good give Interested if about and and thinking terms margins

side like has on bit quarters, in Just last couple probably and on of bit about street conservative thinking the seemed been aggressive revenue the it the a a margin little the little side.

that to giving get formal don't understand provide front that to us maybe to relative about in XQ. of And little guidance So here. a bit for sequentially trying you think some but framing XQ

Brian Poff

Scott. Yes,

revenue Illinois CMS workers be that's increase. so in expect increase. of get I as in impact or for quarter, we Keep but taken fourth to from on to very the At not increase. coming just non-Chicago approval, approval would we'll a of going full increase our us QX. the get give to also we the to same with think But wage mind, the that to Chicago we've all time, margin state rate benefit get liked November board Obviously, that the on to the benefit, in which a obviously, I'm minimum sorry, be shortly. rate

well So, revenue is seen consistent as looking baseline into especially line your a QX and point move kind from at I sequential QX, think of top growth. we've expectation the taken,

in is we a Chicago. benefit one the Illinois about QX small I We'll in see acquisition QX. of margin to and should Armada continuing it extra that did month up benefit see which in perspective, of expect But the think from QX. Summit thinking into would we from we particularly

with got taxes, payroll reset of Medicare look ceasing you some sequester rationalize QX, end XXXX, expect the in in of especially probably to would the that into year, the forward see at QX. holiday potentially of If you've

Scott Fidel

the situation tricky, there not? contribution, mentioned point to us out I think do I from Got in perspective that what revenue it's some this know with us it, you give calling thanks. sort this if but on But if So as lower you still sit models CDPAP in for and we with contract of annualized models should on And in at out whether my or just to question, it think, there. guess, what our bit not the of do helpful. our that's And all terms I keep asking you just That's then appreciate and to follow-up back a of helpful specifically into to could think timing you to be EBITDA at where margin were that you us insight, would ring-fence clean if did that try now more annualized think that for much you that even I what go able And guess, a is things CDPAP, contribution to a from you contract. the contract offline. point. I

Dirk Allison

also as to Yes. continue limit what's and look we the our CDPAP in that the and our about Honestly, program lowered going Scott, we're continue for particular a as has come the the at with least program. ability concerned reimbursement profitability going at to new but -- only happen that contract state because program that to of out into with that mind, We're to not referrals of program. in

were almost at So have year started we right limit last million about million those to as $XX today. the down to starting continued that will around you a -- ago, $XX referrals year, since revenue see, we annualized -- in

at new continuing clients. particular decrease, in that would providers a we right service program that similar adjusted gave we'll make see their continue change over can contract then forward, margin... year. to the You so to us that consider state be But as next that to now, the as should far decrease rate came actually continue rates through, The see would if and only going a the return

Brian Poff


insight probably we going point, be to don't something Scott, a think, Dirk's lot you, timing unfortunately, think is into to I have right now. of I

the state kind set not come with table. a of forward any think I time has really

of kind So I transfer ago, November potential a put this think patients. period starting we had for we months they've said to -- out few a X of

were little haven't of fruition. that we dubious seen come time. the at a that think I even to

a one a that that down hard through will not us to that we described annualized from for we're in see $XX I revenue. when assuming you we perspective, million So of the around say comments Dirk transition, methods the his think did box in various earlier, to margin put in program

Our single-digit margins the of kind there mid- are that upper to in range.

low-margin pretty So contract. it's a

So continues of I as exposure. not material kind even for that continues think lessen And to off, trail the us. to

Scott Fidel

Thanks. helpful. that's Okay,


of comes from the next question line RBC Markets. Capital Our Morgan Frank with

Your line open. is

Frank Morgan

you're morning. of commentary -- look we little think about you you of Good quarter? in seeing I on what the the go segments, the also mix SNF the on you're far hospice. in since specifically the But my so maybe all exiting of what in the guess kind first to across That's of was Alpha that's And the of side as the momentum hospice gave a three drag one question. color more could back terms I sort year. hoping the is curious that's that been of bit I'm of sort and seeing maybe pools. recovery I

Bradley Bickham

have two of been growth reflection little because last has along. just encouraging quarters, services. as it checking stand are benefits With Home hiring demand our actually but standpoint going metrics We for any people Health, well. challenging that's up. years. not but that robust kind And enhanced September course, year don't actually month, stimulus the more money respect get we into those employees. ahead surprisingly later over the favorable to some some Health a COVID coming use to I our a on October we've going end I of an up impacted the -- in Yes. of pretty we've actually to match this Brad. Go lot Frank, exiting kind our under trends the you optimistic health there started to side, care hiring of hiring going the strongest still just them that any on respect just they the And was respect strongest from the try the to numbers and segments strong. to side, been this quarter, to comps the was what's or most see that continue have care of but we end to use their October. continue of With home quarantined personal really anticipate to that, the year. various had where Also start and the is a is and a plans. With have respect to that's of all been surgeries of the to getting seeing of kind with timing probably had continued towards out, decrease to good know which seems related in if year, with the taken and to unemployment as deduct September, stuff then year. deductibles the traditionally get this that's this of Home driver a

QX So late of It's yet mid-XXs pickup couple hospice, a We've XX length QX sequential as length in going seen this up may increases year, our we actually looks but there. Since there it like nice the things it's bottomed into a stay. you'll well. respect around quite have to seen day days. on we've XX, a median our of kind we and to January With October, stay. not picked up out then in. median see of of of about

volume. So, -- see to continuing and it seems some admission good

down a in QX around say to the Now, holidays then little again in bit and we'll QX. pick slow Hospice up tend

seeing seen we As started mix, in and pickup quarter. volume We far the both actually nursing ALS have homes. as a Smith pickup the last

actually started we up ALS pick as well. quarter, This seeing the

time of to certainly, with nice think a that's is. still seeing facility occupancy we're mix I some not pre-pandemic we levels take our what but back there. pickup started increasing And to kind going So

Frank Morgan

care had and follow-up, much as then in you. or premium of how have to Got question. And agency labor maybe terms you a hospice labor brine that just use? Maybe home a health

on sequester all what would your that effect the of annualized be Thanks. Medicare us remind revenues? Just

Dirk Allison

Yes, health and the I'll staffing question on outside first. have We've staffing home fortunate minimal We there. both used take really hospice. been

Brian Poff

sequester, our I with goes CPI to $X would in also On we're well mix probably Yes. will when fourth annual offset kind the Frank, that mind, that But think increase rate help get as in our away in to quarter business today, of that. that skilled keep probably around be just total. going the here million of

assuming increase year, it look but flat. away, that wouldn't a expect does sequester to way will into be holiday at rate have the think I next see year I essentially but flat So net us next going into essentially we go going

Frank Morgan

Okay, thanks.


question next with Blair. the Matt line Larew comes of from William Our

is line open. Your

Matthew Larew

latest Yes. hearing around some a the wanted that but hearing the for funding package end whole. Hi, of related you're HCBS to discussions been ask just I before maybe know on kind of good the around and the potential to legislative morning. iterations I the year. and just many there's

Dirk Allison

and the reconciliation the Right we're -- like now, else, and understand as to sitting billion will are current care. $XXX to waiting that see if get we the Certainly, draft home the here there's Democrats bill. dedicated pass to community-based it, in reconciliation Yes. we be everybody going together of bill

it the any as this all and really far having of that if we build know As further insight but is might no is passed. that stands, of still we have be where in today when knowledge

Matthew Larew

Okay. And on question. a then, just one previous

that. in They referenced bonuses, trend. of experience of number thoughts increases guess, much also any additional You Obviously, peers staffing things challenges? wage have able contract why I your you've And like on avoid that? to mentioned Did been also not some near-term you referenced you the pretty significant those labor. utilize a

Brian Poff


mean, of staffing not wage you peers. our side, on clinical is some we're as I I on particular it -- maybe look pressure, is the when see significant as exposure in certainly, starting to the think markets. our certainly one, some But

proactive competitive. side. nurses So more are had specifically, the to adjustments We've on there compensation some make

having we far so bonuses. out But a we've on to clinical wages, to we've that some special the environment able but labor been premium it's So of the respect competitive proactive nurses. far, But fortunate make to avoided there with services. for avoid any be -- the on of to particularly adjustments some are

Dirk Allison

administrative. And

Brian Poff

starting we're to our cost of Yes. side service administrative And coordinators our there. That see across structure. is certainly some to certainly But services kind which are a personal starting a schedulers care pressures of see wage part much smaller segments. all

Matthew Larew

Thanks. it. appreciate Okay,


with Tanquilut Jefferies. Our of next from question comes Brian line the

is line open. Your

Brian Tanquilut

you've and this Guys, guess, like a Brian, everybody. acquiring know of million of maybe a revenue the talked $XXX for million as goal year. well. about of for year at kind year $XX first I in at Dirk you, question you Thank least or past, I

you deal. own So typically I your source know

team. your call of the but said changes on deals you're there seeing would seeing are would not some your typical you And curious, that a what slowdown are from Brian, So brokered in BD just that own much or you market you explain any in front deal in there's that slowdown the pace? out the M&A

Brian Poff

Yes, Brain.

And that process. our I I this stringent on were this pretty of working kind And think guys as know, year. some pace you we think we're early in for about talk specifically, year. we just I projects diligence our had

strategic We're We us. specific to acquisitions. are just also to things to and that acquisitions at necessarily are make looking not make looking very

the and to So kind I selective over But little where some that the this then got has we a excited where get our like I we're we finish line, still and are will across think, we and process of yet. be can year November. as us as just we'd far still didn't our acquired those get in things year. we'll say to It's revenues behind through things close. process is some put that pipeline about not in through that see if for

think processes level I activity not as the that out A saw we didn't broker several things with just but market the I feeling what end little were seeing towards bit I broker of slower well perspective, a there summer. So mentioned we're earlier, market over of we seemed think seen, fit the the we've the probably at processes, year. probably from It the are like time. in those of that a lot us little a

get of cap the to had that people you and big market to we're think advance bolus out gains the looking potential a issues. I

the going to end difficult that's think closed I realize year. get of probably into the to year, this going now be they

little say can it's at better on probably market out what my maybe today. we're say and really their sure. I going next really that's to all rebase that process decision So look But early not year, Delta the to speculative of a That's of off kind part. a wave seeing different in

Brian Tanquilut

expand it. Dirk, maybe share to MA market? M&A in try to you can traction and us of terms the into then, front with just efforts there your the gain Got updates And any on

Dirk Allison

we've where Brian, of what Presbyterian be announcing -- announced and Advantage We we're really though how we've sit Medicare whole and I Again, number And as will pilots a be some further the is are said, the show help hope currently into allow relates it approach. all We we're Yes. reason that pilots we're on or the developing their a to doing we with related approach. working can the value-based value-based various one that which with to deals Medicare us will across about been deal doing as care we that should soon -- or medical managed of going Advantage providers loss talk develop control around talk care. from costs. The we will them even about providers. value-based Medicaid to data to pilots these

very still about excited we're So this.

headed direction. In not fact, is is a obviously believe We value-based the only think care we for others industry. in market opportunity that Addus, real but the for

be years them year four becomes in companies value-based It's that again, opportunity specifically we cost. to believe lower Addus in with team or next a the it's the to flips care we with present work bring and to Advantage. going their just, or going various something switch these and we to Medicare for can It's so. us to and take three material not the do continue is to that around the have to We working what future

it's excited to still a we're long-term but going process. about be So it

Brian Tanquilut

Thanks, guys. Okay.


the comes of John next from James. Our with Raymond Ransom question line

Your is line open.

John Ransom

these morning. their material unemployment inflection Good any ended supply labor Have seen benefits? in since of some states you

Bradley Bickham

is Brad. this John, Yes,

our corresponds across I at benefits enhanced unemployment the federal with We certainly have look expired the mean, appears if which September -- when it country. be you to -- hiring numbers

nice Now two strongest pickup did years. a hiring was in there. month our It care see over personal we

with whether early enhanced Illinois significantly, increased the that's particularly there one tied of correspond the to hiring to pretty out Chicago our that of benefit September. not the specifically So in benefits in sure. in seemed kind ones But was that, it had which numbers, and area it unemployment market particularly to honestly,

John Ransom

as mandates than that that those then you conversely, have a successfully, in harbinger in vaccine Have And -- are successfully, you as navigate successfully to able been embracing Great. that of talked more maybe less some you're sort states thought? you might federal the program for operating about.

Bradley Bickham

that there York care script, I in his to more our we being to personal than successfully New would market now we applies as are vaccinated. out employees Actually, hours around gate Impact I is up Yes. getting the the than Dirk mentioned It's have I largest think We with XX% few mean, thought. mandate that vaccine caregivers, a have X% negligible. mean, I pretty subject out think considering a ended vaccinated. still the into mandate on effect. was less still that going probably of

the think you for in that the and is be I we're preparation interest certainly mean So hard believe right our of -- look not it's employees. vaccines. New going really York safety to our to we're do. in or do is of the Illinois be get the mandate honestly, and I the that's but company, But Downstate or and efficacy caregivers and seen. vaccinated encouraging we that just Idaho as a thing something monitoring best to just, We if as whether of pushing to Montana same the at

So we're push still continuing to it.

status dispersed understanding Our biggest We a of month challenge, vaccination just honestly, or is unknowns over that's a primarily have very of us. the our next time focus and workforce still lot the for is so. part

John Ransom

years? on members the have that may family And your over remind evolved me just of couple past how the current percent labor of stat that's and

Dirk Allison

it are What the comes levels from exempt XX% at that Yes. mandates. caregivers caregivers or the some are We're mandates. those vaccine a family seen local in typically good to family around and home of the when we is probably residing have that's point that those

happens front see federal and some seen have but what other there. and So we'll to we mandates with on the have these relief some wait of

John Ransom

so much. Okay, thanks


[Operator Instructions] the of Our comes with Mitra question Ramgopal next Sidoti. from line

open. is line Your

Lalishwar Ramgopal

is not [ph]? problem hiring [Indiscernible] the

Brian Poff

you're Mitra, Mitra, breaking that. pretty breaking up bad. you're

Lalishwar Ramgopal

Can you us? hear

Brian Poff

No. Try again.

Dirk Allison

Hey, you us? Mitra can hear

Brian Poff

not you're through. coming Yes,

Dirk Allison

other why his me there Operator don't is questions. Mitra directly and go questions. get if no we can ahead contact and


questions further no to turn like at time. back comments. call Allison am I'd the over I showing for you. Thank closing to this Okay. Dirk

Dirk Allison

you week. great have your Thank today. to of and We I want earnings interest part you for for being you, of operator. in a each Addus our call thank hope


conference call. participating. Thank concludes This you for today's

now may You disconnect.