Available Opportunities 1/31/19

NEW FLORIDA: Stoneridge File #SCM-6925

  • $9.5 million home health agency
  • Located on Florida’s east coast
  • Very strong operationally, clinically, and financially
  • 99% of revenue comes from traditional Medicare

NEW FLORIDA: Stoneridge File #SBA-3885

  • Non-skilled home care agency
  • $600,000 annual revenue
  • Outstanding reputation and quality service
  • Key staff in place
  • District 5

NEW GEORGIA: Stoneridge File #SBB-5907

  • $5 million annual revenue
  • Private duty platform opportunity
  • Poised for growth

NEW OHIO: Stoneridge File #SBB-9067

  • $6 million revenue home care agency
  • Medicare/Medicaid
  • Columbus area
  • Long history, profitable

NEW VIRGINIA: Stoneridge File #SBA-7366

  • Medicare certified agency
  • Approximately $6 million in revenue
  • 70% traditional Medicare, just under 10% in Private pay
  • Northern Virginia
  • Accredited

PENNSYLVANIA: Stoneridge File #SJL-7605

  • $4.3 million home health, home care and hospice agency
  • 18% bottom line

TEXAS: Stoneridge File #SJL-5800

  • Almost 100% Medicare
  • Texas based home health agency
  • $6+ million revenue
  • Extremely profitable
  • Perfect surveys with a 4-star rating & consistently ranked as a top agency in the country

TEXAS: Stoneridge File #SJL-5067

  • Clean hospice provider number
  • Located in the Fort Worth, TX area

UPPER MIDWEST: Stoneridge File #SJL-2770

  • $7.6 million revenue
  • Profitable home health and hospice in upper Midwest
  • JCAHO accredited
  • 4-star

 

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Stoneridge Partners Adds New Expertise in Business Exit Planning

Certification Brings Exclusive Experience to Mergers and Acquisitions Firm

(LOUISVILLE, KY) – Successful business owners know that staying a step ahead of the curve is crucial
when it comes to building a company. Focusing on the present while looking ahead to the future is
critical when you’re growing your business.

But what happens when you’re preparing your business for a transition to new ownership? Planning
for a successful exit is just as important as planning for a successful launch – and now Stoneridge
Partners offers a new strategic resource for owners seeking to best position their companies for sale.

Stoneridge Partners CEO and President Rich Tinsley has recently earned the Certified Exit Planning
Advisor (CEPA) designation from The Exit Planning Institute, a leading international authority in exit
planning and value acceleration. Tinsley is one of just more than 800 certified advisors worldwide after
completing The Institute’s executive MBA-style educational program comprising pre-course study, onsite classes and a post-course certification exam.

“Stoneridge has built its reputation on providing expert advice to business owners during the course of
a merger or sale, but our years of experience have also taught us that the actions a company takes
leading up to a future potential sale are key,” Tinsley said. “Putting our clients in the best position for a
successful transition is important to us, and with this in-house expertise we can help owners maximize
their value and implement the succession plan that is right for them.”

Business owners seeking advice on exit planning and succession can contact Rich Tinsley in
Stoneridge’s Louisville office at (502) 822-4510, or by email at [email protected] .

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Stoneridge Partners’ Record-Breaking Year Marks New High for Healthcare Advisory Firm  

2018 Volume Tops 2017 for Consecutive Years of Growth

(LOUISVILLE, KY) – Following up on its best year ever in 2017, healthcare mergers and acquisitions advisory firm Stoneridge Partners once again set a new record for volume in 2018, marking the best year in the company’s almost 20-year history.

“Through strategic growth, we were able to increase both dollar value and the number of transactions completed by our team of advisors over last year, “ said Rich Tinsley, Partner, President and CEO of Stoneridge. “We feel confident that 2019 will bring even stronger results for our firm and for the clients we work with across the country.”

Stoneridge is also proud to announce the following promotions, effective immediately:

  • Brian Heck has been promoted to Senior Vice President and Associate Partner. Heck has more than a decade of healthcare mergers and acquisitions experience, with special expertise working with providers in the intellectual disability/developmental disability space. He has a finance degree and an MBA from Western Kentucky University.
  • Charles Jantzi has been promoted to Senior Vice President and Associate Partner. Jantzi joined Stoneridge after a career as a wealth management financial advisor. He has a degree in Finance from Louisiana State University.
  • Coley McDevitt has been promoted to Vice President and Associate Partner. McDevitt joined Stoneridge after careers in energy consulting and medical device sales. He has an undergraduate degree from the University of Louisville and earned an MBA at the Loyola University in Chicago.
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Amedysis, LHC Group Stock Down in December 

Amedisys, LHC Group Stock Down in December

Home health stocks were back down in December, failing to escape the broader market’s downward turn.

Indeed, home health stocks dropped 13.59% in December compared to November, the most recent Home Health Index (HHI) from mergers and acquisitions firm Stoneridge Partners shows. Updated on a monthly basis, the HHI tracks the market values of two of the nation’s largest publicly traded home health companies: Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG).

While home health stocks plunged more than 13%, the S&P 500 also plummeted 8.91% in December over the previous month, according to the HHI. In general, though, the index has far outperformed the S&P 500 since 2004.

“This is actually one of the very rare instances over the past several years where we’ve seen home health stocks actually fall behind the broader market,” Stoneridge Partners President Rich Tinsley said. “That’s somewhat surprising, though I don’t except that trend to continue for long. Even with the Patient-Driven Groupings Model (PDGM) on the horizon, it’s a promising landscape for the home health industry due to macro-level factors, including consumer demand.”

Stock prices for Amedisys and LHC Group both dropped by double digits in December.

Amedisys — headquartered in Baton Rouge, Louisiana, with an executive office in Nashville, Tennessee — saw its stock drop 15.29% in December compared to November, according to HHI.

Meanwhile, Lafayette, Louisiana-based LHC Group saw its stock drop by 11.37% in December over the previous month.

In addition to Amedisys and LHC Group, Stoneridge Partner’s HHI also monitors the stock value of Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: ADUS). Stoneridge does not include Addus in the final HHI calculation, however.

Similar to Amedisys and LHC Group, Addus, which derives most of its revenue from Medicaid sources, saw its stock drop 9.79% in December compared to November.

Quote Of The Month 

“Site of care, we continue to believe, is going to move from an institutional mindset, where everything is done institutionally, to a much lower-cost setting, including the home and digital” – Bruce Broussard, CEO and president of Humana Inc.

Read the Full Article Here: Humana CEO: Home-Based Care, Social Determinants of Health ‘Most Impactful’ to Health Care System 

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance since 2002.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index January 2019 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 12/31/18 1 mos change YTD change 12/31/17 12/31/16
Amedisys 116.84 -21.09% +121.67% 52.71 42.63
LHC Group 93.44 -11.99% +52.56% 61.25 45.70
HH Index* 105.14 -13.59% +86.30% 56.44 44.14
S&P 2495.44 -8.91% -6.67% 2673.61 2238.83
Addus 68.06 -9.79% +95.57% 34.8 35.05

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 12/31/18 12/31/17 12/31/16
Amedisys 3700 1810 1520
LHC Group 3260 1200 907
HH Index Total 6960 3888 3015
Addus 773 398 384


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 12/31/18 12/31/17 12/31/16
Amedisys 228% 123% 109%
LHC Group 205% 120% 103%
HH Index Average* 217% 120% 103%
Addus 158% 96% 101%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 12/31/18 12/31/17 12/31/16
Amedisys 22.55 15.68 19.10
LHC Group 24.41 12.84 11.01
HH Index Average* 23.48 16.38 14.26
Addus 20.64 11.67 14.50

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company to it’s reporting. (Home Health Index January 2019 | Stoneridge Partners)

Recent Transactions From Around The Country

  • AccentCare Inc. of Dallas, TX acquired Steward Home Care and Hospice

SOLD!!! By Stoneridge

  • Stoneridge Partners represented a Florida based Home Healthcare agency that closed December 2018
  • Stoneridge Partners represented a Florida based Healthcare agency that closed December 2018

Exclusively Listed For Sale By Stoneridge Partners

Do you know of any acquisitions that have taken place?  We are interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously and the return email address can be left blank.

Another Cartoon Favorite 

     

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Home Health Index January 2019 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group

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