Addus HomeCare (ADUS)

Dru Anderson IR
Dirk Allison Chairman and Chief Executive Officer
Brian Poff Chief Financial Officer
Brad Bickham President and Chief Operating Officer
Scott Fidel Stephens
Brian Tanquilut Jefferies
Matt Larew William Blair
Mitra Ramgopal Sidoti
Ben Hendrix RBC Capital Market
Call transcript
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Ladies and gentlemen, thank you for standing by. And welcome to the Addus HomeCare Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker today, Dru Anderson.

begin. may You

Dru Anderson

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

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

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

Dirk Allison

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

more detail. earning fourth we then and with in will discuss quarter Brian few the will of on each begin I As overall results do call, our a comments

comments, to for our are happy we the to respond full-year financial Following would fourth our proud extremely results XXXX, performance. we us operating of and Yesterday, be questions. our your quarter three of of announced and

was as minutes. tight increasing results due variant the as pressures for employee produce environment detail to a I few labor from more the of able team both well the will Our quarantines quarter which to in COVID, discuss in record a Omicron despite

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

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

EBITDA was revenue $XXX $XX.X cash during XX.X%. XXXX, full-year resulted our million an approximately with at the of the of strong XXXX. adjusted operating along XX, This or For in of flow million cash December $XXX.X balance a with million year our

includes issues consumers reality our challenging due our current few to in As has and patients, the increasing pressure. market. enough one hiring face This months also we over several the employees not by with but companies care is most the been to of dealing labor wages challenge in discussed past for today the the with industry, of only labor of

pressure continued During in of these both areas. our fourth quarter, we saw

Addus. information for some Let labor you relating the to give dynamics me

but of during last XXXX fourth year, the business Our personal were fourth quarter up sequentially of care were XXXX. hires from our X.X% quarter X.X% down per over third our of day quarter

and which began effects of at in the December of started began surge, During quarter, January. the we our the fourth decline to to see Omicron end

increase an we hires care, personal in yet per are day above not in level to expected hires we level we back XXXX. day of for our see running of are hiring per they the saw February, and our third currently today in the have business to of While started quarter

We care of personal are segment. wage in pressures our certain also markets seeing

and markets. manageable of majority level biggest force and more as recent primarily meaningful to received to have seen wage care labor X% home we market the increases. increasing have resulted of already is This past of our few approximately has in minimum pressures X% impact on experienced over wage personal increases clinical the in health have our Clinical personal specialists. our hospice care in we the wage current However, wage. smaller their segments, In increases where to depending care years, the keep states helped wage a issues

to experienced have open increases clinicians time challenges. meet for we added these meet turnover To settings. of a limited resources an these as increase in across to fill positions number challenges demand have segments market wage the us in to annual increases it We healthcare our additional these also help standard reduce accelerating takes various the while

caregivers to help in with labor One were which the Omicron from has resulting to to mentally is was infections investments saw this quarter what caused we news in good due our the few at see than up having positive the in in COVID point, these back began can higher rapid XXXX. will were the to peak. by entering segment either of impacted surge confident to Remember, the our to caregivers built to for we've with saw quarantine to was personal our of to served, we date quarantine we Delta our we approximately number variant are since in variant. We these our quarantine who previous recover in X% XXXX, affected increase with of seen the Delta personal caregivers a of number issues. return By than been two XXXX. able tested exposed almost in January revenue see reduction of This fourth we increase service. employees item the our as the X% this around us Xx hours of largest last quarantine in quickly variant. wave care, high the to the in quarantines January increase weeks This virus. which our our of saw the December. quarantine, care our with the level started We quarter have January a in or but higher revenues many February the for immediately hours and are quarantine Xx decline are fourth caregivers level in have our served body weeks, The after for down numbers With

reduction the country. and decline as of across cases see accelerate number We the expect will continue to are in quarantines encouraged this the improvement

store me of fourth let same growth the revenue our Now for quarter discuss XXXX.

Our when of XXXX. our personal quarter same CDPAP to care York was November This store received X% segment revenue XXXX. of starting exclusive growth fourth program we the X, the compared New Illinois includes increase growth for rate the

have over for Omicron COVID new as as help several served challenges. as and this Delta well store saw experienced of as hours help team the as as we our level same issues past growth has This turnover personal general caregivers. mentioned, the our with as both service impacted levels, previously an in quarantine onboard with increase labor hours coordinators. well was turnover However, variant by in be the position our increased to months, who members I the These to well the market market schedule we care to as are to

returns service that optimistic virus to are decrease of and our growth to levels current continues We our turnover returns normal wave of levels. to hours to as coordinator historical

operations. our Turning Clinical to Care

segment Home strong its continued Health performance. Our

this our XXXX, revenue quarter growth same-store in as of fourth see During to our was growth we segment. continue strong volume X.X%

Although we Omicron facilities did procedures. impact related an as December on elective January, acute care and volumes late see in into some limited

steadily with through our our most quarter. beginning overall have admissions the increased the Home and of continuing favorable However, Health since fourth of XXXX, trend

operation, focus efforts excited home and saying past we As will to we our services. are on year, have been the about we these our expanding continue over health

we anticipated, strong since first in Hospice the X.X% As growth fourth a in revenue XXXX, revenue our Hospice same-store our mid-XXXX. year-over-year quarter segment, have increased over

prior to improve of growing fourth over the XXXX. same-store over we X.X% the As year, our this quarter quarter saw admissions third in year, continue of the

to extent to season Although, we sequentially Omicron December. in expect did seasonality a the due less of and primarily onset holiday this see a the decline during

median to improving during stay, XXXX. our January, to continue XX the XXXX. quarter for inclusive fourth fourth quarter make ADC Overall, fourth compared completed of of the with X,XXX in length of an days 'XX, days in [Queen] of quarter increased ADC of to We X,XXX of progress to to XX our fourth quarter Hospice XXXX for compared acquisition as City of our as XXXX the

me of progress. you status on vaccine Let the our update

Medicare with employees vaccination our healthcare of you or mandate operate vaccinated. know, and under segments. be a Federal a must Health all many of passed mandate Government Hospice condition participation As has whose businesses Hospice Medicaid covers Home This the that

mandated companies, vaccinated. Philadelphia New In York, markets addition, have employees must Care that are of Delaware all the and including those healthcare that in ensure their Personal City

nonclinical it as we vaccinated getting Although employees make imperative focus many federal exempted to that their state from our state most These and mandates have mandates. city, various as on caregivers, continue of possible.

the to COVID vaccine, has progress hospice steps XX% vaccinated vaccinated incentivise vaccination exemptions and in our our the are to mandated are percentages we to personal in the Addus we for back with applicable XX% care have vaccinated including and pleased confirmed XX% continued encourage currently compliance and rate with seeing. mandate. are a between not our employees, take in employees markets with approved XXX% vaccine Overall, and employees While for get personal Health, with we care XX% Home

vaccinated implementations our session be We employees they to encourage to occur. may to our adhere so to will mandate future get any will continue that efforts we as well

over on CDPAP we a this approximately we to quarter discussed have XX this our new an RFD stopped New have result annualized uncertainty or end of $XX York run most Based York impact appeal and as we quarter of New from intentional XXXX fourth calls, of our we the million the referrals months, as of low program in margin fourth our on million awards associated rate the admissions, for program. rate any COVID last seen our a reducing in with decrease approximately our as to past of program. process, XXXX. additional the New York await $XX few decision of this to on the run Both approach responses CDPAP to revenue continue accepting the have As

in revenues new developments New continue we CDPAP to of We expect new referrals. our limit absence as to information City continue York from planning or the

last the we However, that year of for included Medicaid has her a in the proposal reduction fiscal the saw we budget coming rollback X.X% in governor year. pleased are York New

that transaction JourneyCare Illinois on closed all has on the during will into are our X, December, an hospice, law, XXXX. with these risk our increasing state largest of the and into agreement she In of Health, passed in If New fourth our a announced increases of allows This personal X%. Addus, for an market. integration health pleased] service of home excellent with we to we three the Medicare acquisition Chicago in service We we largest we care operation. provide our and hospice our With rate clinical provider lines profit in York business. additional the In proposed Currently, addition, rates hospice are service we in pleased quarter, acquisition, operations [are reputation, by of provide skilled home Medicare Illinois, a not health certified to this Home early the our Metro in the acquire JourneyCare stages which the will February Summit us area. progress. is with strengthen one closed

provide again, levels our JourneyCare are align our both to examples family, Addus. Both of goal part JourneyCare excited care. welcome both of home Home I which We acquisitions, and Health three with Summit where teams creating we of markets Summit Home to and to Addus want and the of Health as have are all

care. continue will them the be. of affirmed care capabilities states consumers strategy of all all three for developing elderly home three in clinical place patients to individuals and prefer COVID their care, disabled elderly is at acquiring have of We personal our has of Home to of where care focus the in and not coverage, with only in currently safest coverage levels places with homes. but look opportunities pandemic to furthering value receive most The services strong a markets the on and segments we most is cost taking also one of effective where

based invest an home that to this home. to value in is industry and continued care have we their and be our wish a years, safely us two past of opportunity the continue effectively preparation We Over our materials assist these heightened planning, growth important our allowing consumers company. believe at and awareness for fulfilling will role favorable stay in of our caregiver, patients and to as for to

dependent so and that and operations our thankful our support for also and We on proud hard consumers, to our Brian. achieving job of It they am the focus caregivers appreciate have to all understand each With our members of in their mission first. outstanding patients growth is and providing are patients, we dedicated past, by our continue important and care over families. I’m who work our team the turn me let on done day. do call putting each and that, to the I that

Brian Poff

our solid for record and Addus delivering had Dirk, financial for quarter, continuing growth good of morning everyone. profitable a fourth you, Thank consistent performance the XXXX.

rate and Illinois increase three all in results the advanced benefit personal positive Our of the for trends care. reflect segments

improvement We continued patient in with sequential the median are continuing hospice store stay census to a revenues by average and improvement length return and days. care same in encouraged of daily positive

the to record And While adapt to anticipate reflects of hospice segment wave not expect peaked revenues continue XXXX. impacted results our pandemic improve stay negatively be ability the pandemic levels, optimistic length we of environment. with by we quarantine, managing the in impact to media continue in offering ever-changing has the track trend Omicron but through fully our employee quarter recent to will to for January, our this believe to strong we XXXX. that were produce returned pre our to of

The as services for quarter were the $XXX.X sequentially quarter. fourth third related as to both XXXX of Full million for in from or X, follows. Personal year the million, net $XXX.X timeframe. $XXX.X the prior were million retroactive in fourth from XXXX Illinois $XXX.X benefited the January managed in March, Dirk year. the to total revenue, is revenues for increase quarter care revenue well rate November increase Illinois, rate revenues organizations increase from noted, a an As which were up million XX% statewide breakdown XXXX million, $XXX.X as the care

have directly addition health the health $X.X We X.X% revenue. programs million reimbursed hospice, of operations or closed revenues received [Queen] closed closed which results These million on acquisitions, division state. were at XXXX. the period home XXXX, City Hospice results care this Summit the Home increase $XX.X end which revenue. XXXX. the rate for two which by division all revenues a August hospice and XX.X% of previously for of These and X, of Armada, the Home of of or were of Health Armada include the October Xst include

to results criteria. as quarter to over our we'll of following. our to JourneyCare earnings that closed Other XXXX include several revenues and from in $XX into the opportunities and integrate seeing pursue acquired other financial acquisition million contribution operations the another meet far acquisition. XXXX incremental continue growth, addition we strategic months, in we the approximately forward for so million and XXXX our strong to $XX added evaluate We JourneyCare both recently In revenue the next our look in fourth and

the fourth last to sequentially the and Our previous Illinois of margin our increase from percentage up XX.X%, an Chicago. gross benefited rate quarter. XX.X% the was we from The wage third offset year-over-year and is increase in quarter mix from increase in XX.X% increase year largely sequentially services, clinical higher to the attributable for minimum

expense was of traditionally, due XX.X% in our year. expenses. revenue margin of revenue, impacted was revenue to quarter we primarily expect profile. G&A fourth up revenue, XXXX, slightly a unemploymenttax points related by of approximately lower As with resets our mix XXX slightly ago, than we year within negatively of have of be expense base XX.X% XX.X% our a Adjusted seen as lower quarter XX.X% gross higher services the basis first from of clinical a to G&A acquisition with G&A higher

XXXX was the an increase G&A from $XX.X was With of XX.X% company's percentage an in the grow. prior quarter first to was million business year, increase the full in XX.X% the million prior third EBITDA see to the compared margin our the in XXXX, The $XX.X from in the slightly the million of fourth the period increased fourth of increase year million in for to quarter, levels for JourneyCare's of and $XX.X continues from year. quarter historical Adjusted adjusted fourth same which increase addition operations as $XX.X $XX.X the over our from to of XXXX, revenue we expect clinical an and EBITDA sequentially in quarter.

For acquisition fourth COVID-XX XXXX, and diluted $X.XX. $X.XX of the The restructure fourth non-recurring exclude $X.XX, margin XX.X% and of of costs restructure $X.XX, full adjusted MCO de novo Illinois XXXX and per other novo $X.XX $X.XX, the per from expense increase for the of for net for XXXX costs following. the the expense of year The of EBITDA Adjusted quarter XXXX. per was impact adjusted $X.X. up excluded share retroactive full $X.XX, share expenses the income of results year the fourth de acquisition adjusted stock-based favorable other of was non-cash $X.XX. results of stock-based compensation XX.X%, compensation of and share expenses of non-recurring the our rate followings. quarter The quarter for

tax quarter rate for of was fourth the XX.X%. Our XXXX

fourth to the with than were in For remain the calendar slightly in XX.X quarter end prior XXXX, at of days consistent our XXXX, the range, we days at expect the of to DSOs the third quarter. years. XX% XX.X fairly rates tax XX% higher of end

currently have majority see where We and to budget from of a as trend surplus. this of operate collections continue our to payers expect strong we continue states, majority

net stimulus been received operations totaling funds $XX.X $XX.X our net million. our have the taxes, cash repayment partial flow our cash by quarter and see with of million We the payments Exclusive and utilizing fourth million continue cash $XX.X for very would for government provided by the of year XXXX. previously quarter trends provided to payroll fourth operations full strong

of XX, in of on and million respectively, bank the had availability December revolver. $XXX.X $XXX.X of As our XXXX, million, million $XXX.X hand debt company capacity and $XXX.X cash million under and

being see, in I'll enter now year. our financial please acquisition maintaining this as and focused I new order As on for pursue to with operator, you remained position line questions. prepared comments open to can we This morning. thank you concludes strategy strong your for the us. our the a we the ask want well-capitalized


Your comes with is Scott [Operator line question Fidel, first Fidel Instructions] Scott open. from Stephens. your

You may question. your ask

Scott Fidel

understanding be to the relative just where well. and if question, it's can quarter, directionally just First as detail significant to quarter give or could quarter having obviously we the clearly with but willing the weighted to but in in from get it fourth you're qualitative as of rate talk line Omicron us impacts Maybe first JourneyCare the more how some the will thinking evolve commentary just overall appropriate the then give thinking did to either much impact, and a the give. that don't to trends then less January, revenue having maybe that those quarter appreciate you impacts of the you the significant. then about formal level run maybe about second guidance the to few you different moving coming pieces provide acquisition about second the But talked first being quarter. that of on a And from Omicron also the you

Brian Poff

year acquisition. looking quarantines just the full our obviously, but yet to of we've with we've those going February into Omicron think having outside the visibility I and expectation, QX from pressures March, our and of JourneyCare think expectation and into is seen again, the seen not impact QX at I date that early impacts

X% our from probably will we to is Xst QX pretty revenue expectation and, reduction I think think, see board for on be I see should sequentially into our QX proxy additive expectation coming February probably JourneyCare to a is that. X.X% good

was our six annualized probably of from profit $XX so really in spending JourneyCare conversations, recall that nine for keep to about million integrating that be you mind not as months is a revenue, think to going and organization. we're I

adjustments some So we'll there. be making

So real to meaningful months. our any not earnings is expectation six to see the really first nine for

So, let's well we the in QX not way see impact underway. those until much processes revenue get earnings of some integration but really

Scott Fidel

benefit personal strong And similarly, that on with increase. personal you think to of Any dynamics obviously, the personal terms care? the hours the a rate print us did same-store of care thinking our same-store from for impact target? as give for quarantines. you're us to from X% then maybe there detail out you'd care XQ give of long-term sort just that the had growth more about you the in how how caregiver same-store want framing the the over about But the you're in full-year of for on the against X% we January Obviously that growth in thinking

Brian Poff

from us any least rate at pressures bake we've we our rate this in of to think, part that X% think volume our increase X% X% from organic last think back that still expectation is for care. Illinois benefited regard, the outside that But years of increases COVID waves additional couple I nice above or personal kept and still ‘XX. of got don't the from that that will kind to I expectation first have I X%.

for this volume's us a So key to I year. going be think,

in et I onboarding some doing we've adjustments to we're employees, think got things several how labor made tight we market, cetera. we're but

are can right the we in pretty board still to growth think numbers long-term if is personal So his mentioned X% way X% amount script, we We good with in into organic us, looking right focus our on hiring care. coming and February. of Difficulty] to the get about think [Technical

Scott Fidel

relative XXXX? XXXX have operating then one flow expectations last to one me. on And Brian, for just quick cash you thoughts for

Brian Poff


think a proxy. good I was XXXX

look close conversion. to kind right flow provided to run cash we at of XX% net EBITDA, compared XX% you our If at

a of payers with the last payment couple XXXX. trends similar expect seen way steady pretty our will our the be years think profile I from we've over been far in


line Jefferies. And of your comes question the Brian Tanquilut from to next

Brian Tanquilut

I you inflationary guys questions me. thinking as I about we in the talking hearing of states about willingness rates inflation today, a your what the in how to the or ability lot states now? labor. for that guess, live of terms clients broader quick from of environment few to you Dirk, we're match or But are think are a of the right Just

Dirk Allison

is This probably interesting enough.

through states, all we consider think they've strongest the to received seeing of rates of with One cover we that we're somewhat with help markets caregivers, states can that recruiting help to have from that to there. are federal tried and with our costs we that or our the pass markets us to keep raising I so the number and government, we as meet previously the either allow incurred employed out people a

this we're year to new So states in or ways say that over our there of them next a XX% looking market use money comfortable, With at competent very two. lot I'd money today. are out that's the and

we're programs see so come to the And those excited about next months. over few

So we're right sit. now with comfortable we where pretty

Brian Tanquilut

you share What are to just terms seeing out the us M&A competition for or can acquisition environment. in there looking anything then of up, of opportunities pipeline of you with the you're today? that deals at follow And terms in

Brad Bickham

don't se. any think I competition seen we've Brian, per increased

I real our of hold think the off wanting maybe then are folks of on to hearing some But from Omicron come change there pressure we other no with are what and perspective. that. out side kind is

personal strategically fits to our focused either additive I us looking for think some be but in are compression we're think multiple good pretty that on care, for things adding we markets. environment, with standpoint, still there the key from could clinical in services otherwise current a

consistent I be for think focus us that'll this year. a

Brian Tanquilut

we question and ‘XX? want the XXXX to you think any And and callouts for then modeling. Brian, last me, comment tax you rate just make us Any on for as other about one model can

Brian Poff

I probably think on is tax rate, XX% think we'll be range. our to expectation Yes, I that in XX%

that lower, to prior think expecting that. is it continues. get not some today, trading We years don't the we've is our benefit are from stock little that I probably bit a We seen benefit where appreciated. prices we see really part of be in

So I range see to in would us XX% year. expect for to XX% this


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

Matt Larew

of to couple improve like One you interview been And you've and first I maybe paycheck I working think, personal in curious you administrative how tracked then was the metrics labor. if trended more and time turnover, side. to alluded any care, A has things how to that some from on on that. the

quantify stabilized that at that indicate was Omicron [spread] since how all and maybe So I could you curious out? if

Brad Bickham

to respect from application we metrics, do that. basically to With the tracking track hire,

Now of there into regarding, that are state are that, specific and that background some checks things kind of way there. timing kind

So focused But sort you push to is because of struggle hiring, through bit. of little rely a even that side you they that I that, kind an background checks more have thing, on and bit virus on. of a a area, have will say surge, we little getting are when of I will in that say, a we just delays on kind folks the other

actually track metrics. better looking resources to IT add We are additional to those some

certainly we in mentioned, With in coordinators, did emphasis coordinators. see his there’s as we with us. up service for an as comments, Dirk So to mentioned tick service respect a turnover

I steps, we taken some have recently. think

out should help that of rate some going are workforce. that We increases have that stabilize got

market, We of the kind admin primarily of added some if recruiting side, on And coordinator labor side options it clinical additional have they resources, on tight service turnover, lot but I the you out on also is of have the think there. that, will. some a

rate it's of past caught just I up a positions. kind this where light think over certainly pre-COVID. some that I'm getting of I kind back We to at and them. think initiatives individuals. kind the with of end filling that of those of was it of We've asked there the have COVID turnover seeing tunnel lot it progress them that with making some some of we some out work year on But, down some are to those was

Matthew Larew

of sort that again growth about, target thinking forward. moving just then And range

but years, think surge company have the last that's obviously sure, first the to been related I and reimbursement. have capacity, down, I've for had I'm time, the I hours mostly organic since two we fond been strong least, limited actually by aided billable to think COVID been the at

we as should about maybe out specific are forward, perspective call moving forward? to level, back be guess starts moving haven't to we assuming organic that a I items flip state a any on and hour 'XX, metric from 'XX So, already positive discussed reimbursement there think that, that billable you

Brad Bickham

Illinois I some additional of look that provide XXXX. with also the front, be built at potential into some that reimbursement mentioned, of the XX% that you tailwinds mentioned will we've increase we the when Yes, have, FMAP, tailwinds will on as some think, funding But the got ARPA we Dirk for. the rate

we us on states seeing it'll various those on help the waiting, around rate reimbursement, the to be some increased with retention. are of that more fashion be lot recruitment looking provide frankly and to with at are in passed a caregivers will that to enhancements, So, details plans of

volume. So help hours drive that actually just should the


Your comes next Ramgopal line question from Sidoti. questions from the Mitra of

Mitra Ramgopal

curious at First, be? terms labor tight I'm environment. in strategy, near-term your to you least Do like just you'd affecting growth see if that how in aggressive of

Dirk Allison

about as you Mitra as talking M&A? far

Mitra Ramgopal


Dirk Allison

be is constantly do growth. what be doesn't environment affect want we the One is, thing buyers. far said we we and tend as will that to disciplined would somewhat to as to No, we continue

in shareholders. opportunities in than stepping today. something people great our come and are changes some back for expense to for found, market we not return JourneyCare. us make we'll us waiting gave structure. get to environment, we remain profit come great higher multiples which in the the for JourneyCare we're needed was such to justified, But feel So looking as in the and and operation, for something the opportunity if not And we opposed

at those to but and things the going down looking for, a we price, we're While opportunities type a so be reasonable our fair we look reasonable and slowing we'll are at. not that that acquired are certainly

Brian Poff

real add potential said, on a at to the labor just trends that the think be when of diligence state the processes Mitra, obviously level. to local and cognizant quick. part we're With of in our -- we I market looking are deals,

as our deals as is Difficulty] today that we as far definitely evaluate I labor -- it back the So overall. seat consideration, market kind something that think is not put of at looking we're [Technical strategy us but

Mitra Ramgopal

mix highest probably I this the peer quarter you've seen. care think the look I when then at managed end And of the last is

managed if how you you're that next conversations the to Just over curious the given turn care terms expect few having and environment increased years? now of in with do

Dirk Allison

services the these us have us I allows which and across is we're a to develop certain area, of allows geographic managed size coverage across markets. of competitors and do, comfortable things our geographic pricing, A able about with. think from lot provide markets these some with maybe we sit one The providers. fact market strategy the MCOs to of that it we're the in in care relationships cannot table great to our develop which great

pricing So team at maintaining we done increasing of job this time, They've need. great and a we have as that's they do. that a all

So environment. pricing we're very and with MCO comfortable with the our relationships our


comes the question Your Hendrix [Operator Market. Instructions] Ben next line Capital from of from RBC

Ben Hendrix

of kind Quick idea an you expect have Summit question all and having those about levels market. of wrapped of margin revenue the can and give upside and in that three you key it’d to us synergies of and with or three now synergies care once whether when all place? of kind portfolio in you up care levels JourneyCare can now, be market, sources that Illinois get the of you magnitude in

Brian Poff

personal care. New When or receiving at health, There's in you and hospice the at significant and you our personal of levels. have can what a bit we've could to market health personal hospice clients home with care, care actually towards receiving be opportunity certainly we Mexico patients and three that They look having where little multiple or levels accomplished look are home care.

generate also hospice. steady referrals home from to pretty of health stream a We

health will We will in well. Mexico Illinois a that as individuals metalogics help implementing have they that into and that on are in New That Mexico, New identify be have hospice. implemented home that transition position should in probably

start can the having you conversations So family. with those

to personal reached base home a to for of why develop would one work the home them reasons think market that's lot allow system out work we care care, with significant home do maximize of we've home mean, base have care there. that. And care when to utilize market, to So very opportunities. out excited one all we market, that see one that's having about to really a those do mining of our we're to also need cross care to untapped our cross what health I in at personal then kind so largest we'd and that look there to have opportunities records in to there's data hospice the single the you referral I home and system, you And the those similar personal opportunities the then is some do on metalogics. that's order And with Illinois piece, a us


Mr. to There questions. back more are Allison, no phone you.

Dirk Allison

you in much weekend. your of very very for Hope and to Thank I call Addus you earnings you interest a much. part our Thank today. everyone being thank operator. want for have good


you. call conference today's concludes This

disconnect. may You now