Addus Homecare Corporation (NASDAQ: ADUS) stock is in red

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Addus Homecare Corporation (NASDAQ: ADUS) stock fell 8.68% on March 17th, 2020 (Source: Google finance) after the company will delay the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Form 10-K”). The Company also reported certain preliminary unaudited financial and operational data for the fourth quarter and full year 2019. Further, the Company also has not yet commenced the re-audits of the 2017 and 2018 periods. According to this report, net service revenues rose to $192.4 million for the fourth quarter of 2019 and the net income for the quarter of $10.7 million, or 5.6% of revenue. The fourth quarter of 2019 included revenue of $4 million related to the State of Illinois reimbursement rate increase for non-managed care organization business that was retroactive to July 1, 2019. Adjusted EBITDA rose to $18.8 million, or 9.8% of revenue, for the fourth quarter of 2019.

Meanwhile, for FY 19, the net service revenues rose to $648.8 million and 2019 net income increased to $25.2 million. For 2019, the company’s Adjusted EBITDA increased to $58.7 million. The company has generated net cash by operating activities of $3.9 million for the fourth quarter of 2019 and $12.0 million for 2019. The company anticipates the borrowings under the revolving credit facility to be temporarily unavailable due to the filing delay. As a result, the company also expects that the acquisition activity will be delayed during this period.

On the other hand, the Company due to COVID-19 has formed a task force that meets daily, and senior leadership is meeting twice daily to address various facets of the issue and its impact on the Company’s operations. COVID-19 has raised a variety of operational challenges that the company is working to identify and address, from the impact of school closures on caregivers to working with vendors on the supply of protective equipment and beyond.

Additionally, Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against VMware, Inc., Cronos Group, Inc., Addus HomeCare Corporation, and DouYu International Holdings Limited on behalf of investors. The investigation concerns whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Addus on 27th February had announced that it would not timely file its Annual Report on Form 10-K for the year ended December 31, 2019. Specifically, Addus stated that it requires an additional time to complete the valuation of a non-cash implicit price concession related to revenue and accounts receivable.

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