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Addus HomeCare (ADUS)

Participants
Dru Anderson Investor Relations
Dirk Allison Chairman and Chief Executive Officer
Brian Poff Chief Financial Officer
Brad Bickham President and Chief Operating Officer
Scott Fidel Stephens
Joanna Gajuk Bank of America
Madeline Mollman William Blair
Brian Tanquilut Jefferies
Mitra Ramgopal Sidoti
Call transcript
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Operator

Good day and welcome to the Addus HomeCare's First Quarter 2022 Earnings Conference Call. All participants are in a listen-only mode. [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Dru Anderson. would like to to over conference the turn I Please go ahead.

Dru Anderson

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

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

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

Dirk Allison

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

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

from of quarter the Cliff's with and and challenges of strong the add as team we in developing tenure in happy to of and your team. financial his capability Following Chief Officer. we with skilled the first three we at someone Executive are I that results leading With Cliff background Addus margin announced how for Especially strategy gross to strong questions. Cliff to our operating leadership comments, speak excited team know hospice, board our our in were Many us hospice Home are experience to respond of in joined would and I for be President, start know, proud first new the saw home to saying our year-over-year by I to the Yesterday, Blessing we our acquiring Cliff along our light has in long and health Development health XXXX. Vice revenue, our Health. fortunate able you operations. growth quarter further earnings. care development and performance platform, with we home to of welcoming personal our build want be Encompass

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

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

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

effects last Omicron As XXXX, our discussed first call, late quarter the saw we have of on surge, the the December. which of during we began in

As levels anytime pandemic the the our to impacted. January, with back quarantine highest approximately X% at continued experienced beginning of Omicron caregiver going care the into surge of personal team COVID we

January, While recent our to saw most at February the end surge caregivers number and to decline a this began of numbers the immaterial of before level was we quarantine. returned normal second closer to entering more of both it week hiring

in of quarantined January, have the and that we in for did reduction monitor With to build in caregivers X% to but hours in number quarantine, approximately many As are prevalence January Omicron served a XXXX. see significantly expected up the an of today, continuing service, weeks sub-variant. up we caregivers we BA.X care to some continue reduced personal by care two cases hour of personal the

the has our which by the quarter health increased fourth of first our affected New in in the Omicron However, home of negatively March, we hours saw day in the business health our home had Mexico, per quarter, to level also operations. majority segment XXXX.

revenues Our to negatively surgical halting a the limiting due systems, hospital elective or of of rise temporarily by impacted were procedures number Omicron cases.

early our our home we health quarter by revenues admissions March, and to financial returned saw impacted this normal. results While

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

the me some for Addus. dynamics on you color labor Let give

wage resulted to we biggest and clinical X%, clinical health seen of discussed increases in our we In pressures specialty. approximately on increases have home the call, care. impact last X% depending segments, our wage of hospice market on As recent in

pressures In We March, the to in settings. these healthcare we as segments, limited in improvement in our number ability XXXX. demand our clinical across that market to an experienced remainder increase labor continuing increases during clinicians help see the wages believe began retain upward have improvement also various with the of turnover the hire along our adjustment for moderate in We of wage team. general potentially a in any will and

Even public During to begin are our of intended and have have are, they passed this our last for completely us to payments. will federal our of payments recruiting funds on how states home payments with and efforts. either plans help time, using intend receive to team, made our funds. initiated eligible more visibility summary to ARPA funds through service into plans spending sum At funding, will states eight to the A design use XX have of personal and help majority or those be quarter, when of we are states retain we to current The caregivers these care through providing to this our caregivers. lump be of approved are both comments our the ARPA's community-based passed investments.

approximately will We related caregivers hour. these permanent $X.XX million from funding provide our rate States. to of ARPA increases have identified $XX.X for expect states in Seven that we receive averaging per

a provide increases. our rate per expect on averaging We of margin we temporary from will a hour. that this will rate on $X.XX increases this extension states Three of -- increased benefit

on year, New the seen fiscal finalization including April also signed In and state Illinois, next Illinois York. for have XX. of budgets the XXXX Pritzker the We Governor many budget fiscal

per X, which cover certainty are the to increase. of hour July $X.XX wage the pleased minimum cost Chicago statewide rate increase, will a We XXXX have of

However, the as X, not will in previous this January years, was effective increase XXXX. case until rate be

increase. for Illinois of to timing quarters employees. governor wages we received we approximate expect an offsetting also As In years, living of state, will our the XXXX Chicago-based our of we have remaining on we the two rate the increase Once from per April this New rate before York, have hour experienced received means the minimum we be for signed fiscal caregivers wage last to able $X.XX XX. couple budget adjust cost the of increase the

operate One submitted amendment of which an over Intermediary and the minimum amendment Fiscal included budget, allow which CDPAP The favorably in the impacts to we serve us to application, will application. last services. who This with their number and to in provisions department a be all CDPAP providing process, year. contained an continue been able authorizes providers and Addus have all the RFO amendment RFO in to of contract discussing continue entities to who clients the impacted was counties this

us make rate able year's be to strategy of our have allow a saw on New excited reasonable York history that of clients, we to continue maintained to a we're that reimbursement X.X% which our payers Medicaid CDPAP eliminated serving continue to to also services budget. return last working in the we with will budget services. While reduction long rate limiting our The expect our

New portion Together, XXXX. X, increase In rates will York addition, effective a a we April were a see Business. on X.X% X% increased means Medicaid this of

continue be focused current that While positive pass this for news on to good these properly will New care adjustments. assuring our through payers is Business, managed our York we

first With our discuss revenue we stabilized same reimbursement, for store York New these me XXXX. Medicaid operations changes of expect see let to New quarter Now, to our growth York the

revenue personal to funds when and New initial program X.X% quarter York Our was for segment ARPA CDPAP same the the compared growth store first care XXXX. of of exclusive

X% been the stated range same our Omicron within and personal earnings store we release variant, the as in growth X%. of to target our have of would However, of exclusive yesterday, impact care our

performance showed which recovery happy a are Omicron, see of early We March from strong the occurred that our impact in quarter. to the

March, per return Our personal we January. see growth day store XX our expect in XX increased hires month range. into hiring personal revenue the in care continuing as April, to difficult levels day hires targeted of per to care With same strong patient hires compared to to our

point on Turning our store saw Omicron early was in the from health to revenue February. year, volumes down segment previously same we discussed clinical impact as home prior our January operations, and X%

continuing this months issue While early March the the overall in the into increased with were admissions steadily by saw home trend affected we we favorable health quarter, April. of

We care are excited our operation health about it and our personal complements services. home

on personal services into to our continue We markets. efforts focus expanding will care these existing our

the improve X.X% solid in We length increasing and admission revenue fourth improved first increased first XXXX to increased hospice however for first did in continuing compared first As completed XX we We increased a volume compared with over first days, continues first quarter had stay of Medium stay quarter our quarter on in to of inclusive improvement a our hospice XXXX, quarter the XX in XXXX April. this the quarter days quarter Omicron ADC in acquisition the basis. of and length spite to quarter over minimum of with X,XXX in X.X% over to slight the experienced XX as the Medium March same for our as decrease stay XXXX X.X% challenges. admission growth in of XXXX. see of anticipated, of sequential quarter of to an JourneyCare ADC days of quarter the the store store XXXX. first XXXX. of the of Overall, the X,XXX to same for during length

not-for-profit provide As a the reputation, excellent I hospice mentioned, operations of of the acquisition area. hospice We in continue our one at we'll and the hospice, state. on metro levels with JourneyCare of largest an hospice closed coverage operations increase three the of we to all market to Chicago and in clinical care home opportunities Illinois now health look and our our throughout northern

diligently on Addus. JourneyCare been of has integration working into team Our the

-- market this report process the this for items with addition a I'm a budget. timeline for While on and and The team our of strong great and are within done in historically to are JourneyCare potential growth I'm remaining, to Addus has happy there that Addus. care number expected track about integration are personal we excited expected

of Cliff part we remain that addition Blessing are important of our our strategy. efforts, the With development an reaffirming growth lead to acquisitions

on three that interested current the markets of companies operate care personal in is homecare While we our our remain levels care, segment. in and additional in focus all acquiring

remain which believe part few continue that we will had revenue our target, achieving past important for We the annual of acquisitions growth to an years. minimum XX%

payers Medicaid been to cost, Over year, number high for we high our demonstrate to projects with of members. past in have ability a the help outcomes them improve managed participating risk

the are have have been having demonstrating that We collect outcomes. analyze engaging overall positive These begun gaps. our both costs readmissions, to to report now personal care next of efforts impact hospital and efforts on are efforts. to unnecessary projects room value to on care focused emergency that now to clinical services in closing our we primarily and and based care a visits, ready I'm health data excited and move phase limit

scale these patients covered and technology we will who a in approach. us enable additional value-based Over increase and our the will number activities next begin XX of analytics investing under months, are to that the

to we collecting these these use to associated in we cost enhance outcomes investments improve data patients. manage will and this with the process, effectively the clinical continue our better As ability are

any patients of approach. our While disabled these of care and and safest The years we remains be. consumers elderly in we in of still the and the to most potential has place efforts believe is two of our material also the or away, from elderly about that cost one to most and the revenues and places are value home. pandemic three their COVID effective prefer individuals receive increase care, taking is based reaffirmed where care excited their value families Home

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

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

Brian Poff

Thank you, morning Dirk, everyone. and good

financial the the a the a pandemic As Dirk to quarter noted the related start challenges year. and despite to Addus had solid caregiver performance quarantine for higher first rate

improved compared in Illinois, margins. year, results sequential and to care last volume and Personal as trends we direct from also increase are care recent first quarter three in in by reflect as improved the all most trends with segments growth benefited positive the progress continued Our in encouraged the well rate hospice revenue admissions.

for pre levels, While XXXX. returned continue to in to our we're trend care optimistic that stay not will of has pandemic median this length improve fully hospice

reduction Our volume in home during strong health segment were volumes saw exiting Omicron the procedures impacted upward quarter. elective we but trends by wave, the the

Hospice $XXX.X is service revenue. $XXX.X net revenues first Personal Dirk XX.X% for were care revenue. million breakdown follows. or of The care or As revenue $XX.X the referenced, were total million, revenues quarter million. as XX.X% were revenues of

division First quarter the months on XXXX Armada, August of acquired which closed hospice $X.X Home the include and care revenues of two XXXX, include February XXXX. operations the JourneyCare, X.X% addition Home which Armada, of operations Home results results Division X, revenue. health Health October X, XXXX. closed of the of were which hospice as we acquisitions, the acquired Summit million, and These or of of Health two of revenues X,

to in all meet We our are well-positioned have operating business segments. and continuum the increasing across anticipated of in we strong believe place a care model demand

XXXX, JourneyCare. approximately date we with annualized $XX in acquired In $XX revenues of XXXX revenues addition in acquired million of million to and added organic acquisition the to of growth,

evaluate opportunities We and a of our strategic from continue that acquisition pipeline and potential to meet transactions criteria. investment pursue

in the expected, believe opportunities volumes we well-positioned to to quarter includes the the the number from first Other be financial is As momentum the active XXXX we arena. there positive provider and coming surge, for are market following. in results as Omicron recover of of M&A

a clinical compared quarter. the percentage first benefit higher continue gross completed services, mix of as acquisition with quarter JourneyCare Our to including XX.X% for margin was the first of in XXXX, we the XX%, from

increase were our quarter a most November the unemployment X, X. in of on from January care, reset effective base Illinois personal by recent margin rate was offset also We These XXXX. saw partially which increases positive impact full tax anticipated

the non-cash share XXXX of exclude stock-based first for of $XX.X the The the expense with first $X.XX, year quarter net clinical EBITDA quarter an proportion ago, million following. the income first X.X% $X.XX, other de quarter XXXX, the in adjusted and compared the share X, changes additional services of and anticipate of the G&A non-cash expense to restored a Acquisition gross the with novo and points tax XX.X% We due a compared novo diluted proportion quarter, higher $XX.X higher XX.X%. impact share EBITDA of of a quarter payroll see year. X% stock-based a impact costs in cut on XXXX these slightly with a higher the of second with G&A While third of second now of XX.X% compensation for compensation same primarily reflects of XX clinical higher The points per company's ago, begin our of the we April was acquisition $X.XX, expect of quarter period expiration, expense restored revenue first following. a of Adjusted and first for expense Adjusted $X.XX to compared XXXX. Adjusted de results was to to additional than cut basis on quarter, to we X% profile. in quarter. XX.X% XX adjusted revenue, of year to effect our will higher our negatively of from margins was the the expenses margin per G&A our increase COVID-XX Medicare XX.X% revenue, lightened the X.X%, XX% increased level approximately services, up which for expenses restructuring was million, the per for $X.XX, of exclude Holiday acquisition the and adjusted last however $X.XX. see $X.XX. The results in are X. benefit by effective and $X.XX expenses Sequestration July net the and burden and of and basis of of revenues. of

the of benefit from tax first the quarter primarily first our by for quarter stock-compensation. is the year. Our This due last the generated was tax XX.X%, XXXX in XX% rate to increase up change for excess

XXXX, first to range. quarter XXXX. quarter of calendar tax be were at For expect the we fourth the XXXX our of the to days XX.X the of XX.X rate continue XX% DSOs compared at end in of the to XX% with days end

the see and this payers majority to the markets where see payments from states budget especially consistent our continue continue, expect surpluses. have currently trend We of in our key to

XX of first was quarter aging fourth the for the of XXXX. days, Illinois quarter for DSO Our the XXXX end the Department consistent of with of

net first by $X totaled million. cash operations provided Our quarter

While impacted we quarter of were strong, cash certain collections the were timing the payments. negatively during payroll by related

to X, $XXX.X the benefit differences from expect respectively We and bank million, acquisition, of on availability funding timing had in cash February the XXXX, of million JourneyCare March capacity of which these million our of see our and $XXX.X revolver. as quarters. and of debt and company XXXX, future $XXX.X XX, under $XXX.X After closed million

significant a from to fund this for our to the in commitment to portion ability XXXX. like being open This with your thank of the prepared continue please ask remain you cash We acquisitions targeted our morning. bank, concludes our our flow strategy to acquisition the With and questions for comments would strong we a I'll capitalized now through well line operator us.

Operator

comes [Operator the Stephens. from and We go Instructions] will answer first now Fidel begin Scott question ahead. Please with session. question The

Scott Fidel

good dynamic and want just Thanks ask macro starting. Hi. question the everyone. and my to morning around market first I just

open economic given impact actually particularly the more out bit the about the environment to happening potential of to of how And have starting ultimately economically businesses, necessarily your slowing whether sort what businesses reflecting up what's year, interested the as around hiring actually, economy can point, thoughts rising in been that relative your slowdown over little rates. even a guys sort with And you at possibly somewhat guys experiencing obviously? aren't certainly of last some that a you on on think of your an think I sensitive. play just

Dirk Allison

Thanks, Scott.

of still terms long it issue the The industry, sit slowing be big that quite to in issues it's one. good there that with been which look be has is money through if state's all Let XX% as probably mentioned, best if years you aware as whether are One, today revenue federal in the our a out the we've down, does operate, sensitive take that the it financial to me think which given they've not, of to economic things try The really state down in the are part not been program, states budgets at is you two had and there or program. slow position time. from we comes as the does, of. our in revenues, that in that is you of will being affected. that we're of past Medicaid the we in where for Really,

into able entering shape, So, continue confident the and even associated fairly feel should cost state's a good slowdown, ourselves. our plans to Medicaid we are that to with handle budgets in like be

On the mentioned side, other you is labor.

found to things the that when for tends caregivers. we that slowing we past over non-clinical is look of One is as the especially side, hire down, economy it the the on years to us, be have number of beneficial

of caregivers wage If the elsewhere, caregivers as us, for seems when see at to when a have ours looking that we been from somewhat, you having and that, many have a we modify always caregiver, hiring hire, opportunities lot a to something we're are company. that forward again, looked has elsewhere, an minimum slowdown. look And opportunities economic for potential not we

would kind as the ability discussing our economy So couple were of mentioned, we that precursor what the expect we history to to last hire a if seen of if continue we continues of have as quarter. to the we slow, in see is to improve, months, we would

time. we to effect our company an would So, this slowdown expect have minimal on economic at

Scott Fidel

just margin just got bit on little X% of to near just term have growth an And be Brian, around if framing interested looking revenue around follow-up in of positioned has and give Street us sort the relative it. may Street Got XQ more EBITDA a can now, just sequential a Right and then X.X%. Okay. maybe you things.

and, get ARPA just, quarter? winds of close mentioned your just funding, did the tail and modeling think how consensus to Thanks. about some the margins guys of sort anticipating You the the Street's hoping you obviously, the we and that the level deals comfort with of as is next around have and several

Brian Poff

Yes, as we're general Scott. in some give I'll going QX. to just comments, into exit QX

indicated call, our expected of another last we back Omicron the be things surge QX, impact expected or normal longer on what had to we headed to we QX. more to sense into in surge, a think, I return term

remains I think, our the today. same expectation

the I of numbers. I we're think our returned to pre kind It's the pretty think surge exiting May quarter, June. a we're But back into see normal I strong. kind of more have early Omicron April, on and you'll QX. optimistic numbers still been in quarter to back think base Hiring that

think it of aspects perspective. from of I we're other I about I more think thinking those margin mentioned kind the So, of a kind a But couple offset.

into little about lightning If piece a payroll bit the But our offset from of QX. we'll overall. a business coming tax get you think burden, of that sequester small in, it's it'll

in it QX, year. trajectory from sequestration, with you Chicago increase, otherwise, we're it's we last I getting couple think But we'll have But our will off into cut a the headwind in of much see the bit fairly out same saw COLA an heading little smaller I a little to impact in impact a QX. comfortable increase see the years, there. QX this think not of level another X%

Dirk Allison

sure on let to because understand. me funds, people I ARPA comment just want And, the Scott, make

from of of the others funds if various XX pass a because caregivers. going our states lot we of way be a the be and it'll a The that have, lot to receive we're handled, to any. be through direct of most revenue, it'll ARPA will not some that While

the that will funds. standpoint And the those way be company so, of tailor benefit the we as

those caregivers to new today have will We funds we retain to tailor and the us help recruit caregiver caregivers. the

of of there people be not understand, retain the But majority on funds. a and there to hire should improvement so, line in long impact them. our bottom direct those term financial be a because And ability vast may

just I to that. wanted So clarify

Scott Fidel

you. great. Okay, Thank

Operator

next with Gajuk The Please of question from Joanna go Bank America. comes ahead.

Joanna Gajuk

taking the Thanks morning. Good much so for question.

last this the funding, So from point, the the expect eight appreciated actually, on million $XX guess, to of I accessing from I receive federal so you state's like the states. sounds terms that in

will But states flow that seven through you mentioned just to increases. the will also caregivers. that implement So rate

one to guess, the I it -- timing so the benefit would with piece rates three where margins, Because you guess, is the question might temporary. here So I just expect having like higher the this. sounds this be for states

So place? I for be temporary to long in will want those how clarify you. just Thank rate increases

Dirk Allison

Joanna, Yes, you. thank

clarify the understand. me two temporary aspects. what I you rate increase permanent There's rate increase. Let increase, so about said there's There's and rate

retain So let's talk all rate to part allow about permanent of the permanent. some very some to that part. dictating are increases, states other us go caregivers, Even with that, that of small

level us, that increases, So margins won't be services. type probably the as normally see we as you for do believe rate although there those would permanent will be a small to the margin gain our it far on

the nature, fact escaped cases, temporary they excluded the also. due increases, to that rate in always are On ones the from that caregiver of to a completely our and we've in numbers, lot the they that those are temporary

I way a you help that's ARPA us the should, seeing a from not company it's of our what we're going in line through it, expect with design directly which of try and again, to the states retainage. lot funds, bottom should based terms money caregivers, lot on impact, to recruitment we're to flowing line our and what impact. think it's But So of really is, not top

Brian Poff

Brian. is Joanna, this

of on just one Just that kind too, that down. follow-up quick breaking

giving the that payments, ones rate larger come more our from that thinking sum are our if of New Mexico, mentioning, are really increases of those about, the us markets, Some states. the of you're lot New a a those York, smaller like, and lump Dirk

as So either. going material to it's not be

clarify So well. to wanted I just as that

Joanna Gajuk

timing, But guess, for quarter, to year? comes it. helpful. to quarter starts that. are through this when Got flow talking or we It's this about these you Thank I very it next I mean,

Brian Poff

We're some this seeing quarter made being of into into into early and start those payments Yes. second to year QX. expecting

see sure. will a we've see seen, for definitely in the those plans lot money, of start some funds we'll XXXX of that to we So, the

Joanna Gajuk

follow-up. Great. And more one

You needed towards models. care move investments also based forward mentioned that to the value

you're seeing they color to this would year, timing a might comment it of just coming those? that And there in starting terms amount I of of why away. in they -- of how lump So incremental still meaningful hear those also those spending, kind more the coming these now? benefits, on color couple good trying any give the get appreciate it's that's But to and were kind be? [ph] Are on investments, a of you could are them years be

Dirk Allison

is investment be based The that gather from going we're then software talking and value the overall about XX to the data. next we'll over affect spread nature plus standpoint will a slightly, will in ability to our basis, immaterial be improving It basically that spread immaterial review -- the in business. but numbers care months. Yes. our and data It an operational of and be out

So, shouldn't have to a numbers. our material effect

Joanna Gajuk

built made see in out. from hire. guess Good M&A, the Thank and you so good the to that team over may, last you. If being Cliff question that Encompass, on terms see. I of new I comment came to

back the you you more come to the wait can on talk kind deals have up? sequestration seeing on the for you much side pretty So -- see pick home fully to about assets to health blog, are or to of

Brian Poff

This Yes. is Brian.

particularly but we're couple in we've the focus of last all, I breadth indicated. skill have the his, over M&A large about experience, it been our of sectors, of obviously his cook as think we a excited very which years think, I

in So But my about very of I kind mentioned excited a little comments. think, I bit that. early

as the expected and surge. inbound further in in people a from we got coming to I see away deals little more increase Omicron spring think volume

As volumes are covered.

fair calls inbound seeing of we are I higher think number to a it's say recently.

think into to if continues that So I We'll fruition. is coming see that year. this

think very last in expected we'll I us that, be hasn't and we're his really more in market to on opportunities of coming experience home a lot assets And of and to coming the couple Cliff board we're But years materialized. see opportunistic. area XXXX. health of specifically, hopeful have feeling that skilled with the more

Joanna Gajuk

you. Great. Thank

Operator

William Please with Blair. go Larew question next ahead. The from comes Matt

Madeline Mollman

from where that Madeline have CNA through what seen for hiring, nursing being is would programs? do your you of coming much of interest that of This Larew. we're to on hires wondering, you CNA's nursing Hi. sort training new percent actually Mollman come new see in And how And On term? long care like are Like as personal programs? hires trending long trained term? employees your you much Matt

Brad Bickham

Yes.

Brad. is this So,

pre So CNA certain CNA fees to to a in, They come program. that need our who then, certification, we'll pay their offer scholarship criteria have caregivers. their on caregivers as our we education. get apply. actually meet really it's their to they elevate They program, And designed

health primarily a and be just give good So we've and VA Mexico, it's home pretty some seen our of but and a New our them stay segment number our hospice. a working on home tend pretty care of good move pipeline. our in primarily, into either a little doing health higher or clients, at with see personal to it either in to Administration Veterans personal I limited starting giving -- But them work bit these really in in type in work level to acuity also In it's opportunities traction them, states. We're there. with to not in Ohio. care, practice mean, able fairly hospice. higher But elevating our to personal individuals kind caregivers, or clients,

Madeline Mollman

terms Great. have we pilot you their were plans based programs? these incorporate work care of then, managed based interest care, Thank as building you. you wanting in through mentioned in your value just improvements. personal through But I to care partner to on you know wanting an care And from you in wondering, that offerings, out increase software you're seen value working

Brad Bickham

the pilots New And as with earlier, of are. demonstrated that Medicaid call starting taken mentioned It's data out the managed our that interesting. care. lower we that we're get care approach personal along I that services always help, We've able Mexico. to in what's really the of clinical in value-based we've proving to believe care cost setting. We Yes, are we're valuable with

that the of care. do are understand seeing we interested. So value are we that believe MCOs personal They

move fact, Mexico of with efforts some in In markets. MCOs we have outside into and enter the other other state opportunities New to

also, mainly believe home both but value-based that and at personal hospice to continue and care We long look personal we'll and valuable care. So having home in term is having health care that. health

Madeline Mollman

color. much so Great. for Thank the you

Operator

question go next Brian with comes Tanquilut The Jefferies. ahead. Please from

Brian Tanquilut

Hey, good take guess, inflation, hearing to in morning, hours. more recruitment also that the of we're because employees companies of or my for your question first the and Anecdotally willing guys. guys. Dirk, I up you lot for a inbounds has pickup picked probably

us hires? far and maybe color of terms you new share can what seeing with applications on so any in you're Just

Brad Bickham

Yes, Brian. This Brad. is

just that seize candidate a as seen Omicron highest March trend XX pickup March and we'd January. to staff. a hiring in actually side. quarantine business the much trend have into weren't flow as we we've the with continued February applicant we in that like on with had into variants, -- well. able day, front, internal We Unfortunately, at hiring because over And per exited continued the on But of numbers the started has seeing nice we on opportunity with that April and as numbers

Brian Tanquilut

And awesome. That's about of the But know that's And obviously, drags the I from some of hospice right, lower. still the Okay. ADC? how bit business, recovery stay then, the thinking length mean, of I stay as I good think a of side new for of some hospice are acquisitions. pace just I in about you length guess, is of

Brad Bickham

QX of would ADC large it. steady mean, median is, a the how think, to on I our decreased stay, I a really sequential I it's QX. basis characterize been from and bit to which hospice actually little drives because length Yes. We saw measure a slow

we length is was at which April median on exited XX in days as actually of days, However, we stay where QX, finished XX well. back and

a both going So ADC seems We're trend. steady I our so good recovery a seeing think ALF days to admissions, pandemic, early there. like referrals, build we're see the of the since slow, to start

Brian Tanquilut

Awesome. guys. Appreciate Thank you, it.

Brad Bickham

Thanks, Brian.

Operator

comes from Instructions]. Mitra The Please Sidoti. ahead. with Ramgopal go question [Operator next

Mitra Ramgopal

Yes. Hi. morning. Good

side M&A interest expect higher first. in the changes strategy? in valuations, you also acquisition follow on little Do the up on some to of especially hospice maybe personal and wanted a seeing comment front might Just And maybe care? more you your the be rate environment terms alter to

Brian Poff

is Mitra, Brian. this

I yes, materially year. this I side, a expected hike, we've rate plays into think and strategy. that acquisition seen just the later know think there's on interest I our more don't

few just you we're think at leverage. we've if I a I today, but deals, look still cash one on over us done think, hand, net of times

still we're continue think very position favorable in I acquisitive. to So to be a

as our I well, that of depending size we do. deals the on think the So, expectation

use We I significant amount on of were a to hand proxy. pretty think is a up JourneyCare able good deal. that on cash

borrowing our is actually So fairly limited.

I I are even with flow, fund through rates acquisition cash on our last the side, potential think broadly to the started as I a we've of sourcing where as overhang that kind early our up. improve. just think, has, potentially sector ability also, well. think multiples year. I forward compared deal we But has the around I in just moving internally and think flow, they to strategy though but to mitigates like lot mentioned, early, of going side, think on I being I think, On had a it's always are interest think focus But inbound indications, still

bit see are think we compression. of starting to a little I

the year, of and But are take multiples. expectations that early this it are come rationalization time we I of to little a So little think compression a on lower. might for on they bit seeing around to sellers bit bit a little

Mitra Ramgopal

just quickly say family is in percentage relation? you look at versus sort no in Okay. terms of your terms Thanks. the mix you related to caregivers. of would And also, of What then when

Brian Poff

Yes. relation the to total It's family around caregivers. XX% of caregivers

Mitra Ramgopal

see environment changing been or right being it skewed number that Is Okay. stable? more now Or the family? given fairly you towards

Brian Poff

that primarily, is where move number We presence of for market us. we large And been over family kind Illinois change last years. It's pretty just because caregivers. of several a the a that such really that's higher have stable really haven't seen

Mitra Ramgopal

Okay. for questions. taking Thanks the

Operator

This turn would for over concludes remarks. the conference Allison answer our session. back and to I closing question any like to Mr.

Dirk Allison

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

Operator

today's is now concluded. Thank conference you presentation. attending This for

You may now disconnect.