AGENCIES FOR SALE

  • $3 million all Medicaid home care company
  • Houston, TX
  • 20%+ year over year revenue growth since 2016
  • Nice bottom line
  • Pediatric home care company
  • Houston, TX
  • Census of 165
  • 75% Medicaid reimbursed
  • Systems and staff in place
  • Medicare/Medicaid certified home health agency
  • $2.5 million annual revenue
  • 5-star
  • Accredited
  • District 10
  • Medicare certified home health agency
  • Approximately $400,000 in annual revenue
  • Accredited
  • District 7
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FOR SALE

SOUTHWEST: Stoneridge File #SJD-4008

  • 64 bed full continuum treatment center in 2 Southwest US metropolitan cities
  • JCAHO accredited
  • In-network
  • $4 million pro forma EBITDA run rate
  • 3rd location set to open May 2019
  • Run rate based on 30% occupancy with significant growth expected
  • Strong infrastructure to support growth trajectory

Stoneridge File #SJD-1777

  • New Software application potential investment opportunity
  • Great test results
  • Helps connect those in recovery socially
  • Helps connect therapist to patients
  • Facilitates total successful recovery and gathers important helpful data

 

PACIFIC NORTHWEST: Stoneridge File #SJD-4921

  • Full continuum in Washington state
  • $3,625,000 revenue, $1,100,000 EBITDA
  • State has moved from BHO to MCO for Medicaid
  • Co-occuring, Medicaid paid, 40 bed facility with 40 employees
  • Census is very strong
  • Outpatient is full
  • Opportunity for marketing
  • SUD, mental health, gambling, equine therapy and other perks

 

SOUTHEAST/MIDWEST: Stoneridge File #SJD-7830

  • $4,800,000 revenue for 2018
  • $775,000+ current EBITDA from 6 month run rate
  • Mental health, psych, therapy, counseling, SUD IOP pilot currently starting, school program
  • 100 employees, 8 facilities, 6 cities, growing exponentially, fantastic business, huge market share

 

SOUTHWEST: Stoneridge File #SJD-3448

  • $6+ million revenue
  • $950,000 EBITDA
  • Fully accredited 36 bed dual diagnosis IOP/PHP sober living treatment living center with an additional 6 residential beds
  • Great business, strong census, solid numbers

 

SOUTHWEST: Stoneridge File #SJD-1953

  • Full continuum campus setting treatment center in Southwest US
  • 200+ beds
  • In network
  • Census growing every month
  • Great reputation and valuable contracts
  • Numbers are very impressive and improving every day
  • Solid turnkey business

LOUISIANA: Stoneridge File #SJD-6825

  • Boutique full service clinical laboratory specializing in preventative diagnostic testing
  • $30 million revenue
  • Extremely sought after insurance contracts in place as well as desired Medicare & Medicaid locations
  • Very cutting edge new technology and patents pending
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Available Opportunities 3/14/19

  • $2.6 million Medicare home health agency in East Texas
  • Great local reputation, with strong financials
  • 2018 adjusted EBITDA $606,000
  • Has second license available
  • $3 million all Medicaid Home Care Company
  • Located in Houston, TX
  • 20% year over year revenue growth since 2016
  • Nice bottom line
  • Medicare home health agency in Texas
  • Near Sam Houston National Forest
  • Clean surveys with minimal census and revenue
  • $2.3 million revenue Physical Therapy and Wellness operation
  • 95% cash pay
  • Potential to franchise nationwide
  • 2018 EBITDA $257,000
PACIFIC NORTHWEST: Stoneridge File #SJD-4921
  • Full continuum in Washington State
  • $3,625,000 revenue/$1,000,000 EBITDA
  • State has moved from BHO to MCO for Medicaid
  • Co-occurring, Medicaid paid 40 bed facility with 40 employees
  • Census very strong
  • Opportunity for marketing
  • SUD, mental health, gambling, equine therapy and other perks
SOUTHEAST/MIDWEST: Stoneridge File #SJD-7830
  • 8 locations, 6 cities with over 100 employees
  • Mental health/Psych/Therapy/Counseling/School based/SUD IOP pilot
  • $4.5 million revenue/$750,000 EBITDA
  • Huge growth opportunity and great business, reputation, and numbers
  • Full continuum campus setting treatment center
  • 200+ beds, in network, census growing every month, great reputation and valuable contracts
  • Numbers are very impressive and improving every day, solid turnkey business
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Amedysis Stock Dips, LHC Group Up in Latest HHI 

Amedisys Stock Dips, LHC Group Up in Latest HHI

Stoneridge Partners’ latest Home Health Index (HHI) shows that after a positive January, February was largely a mixed bag in terms of home health stock performance.

According to the healthcare mergers and acquisitions firm’s monthly update, home health stocks dipped 2.63% in February compared to the previous month. The index underperformed the S&P 500, which climbed 3.28% during the same timeframe.

Stoneridge Partners’ HHI follows the market values for Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG), two of the largest home health, hospice and personal care providers in the United States. Stoneridge also follows market changes for Addus HomeCare Corporation (Nasdaq: ADUS), though it does not factor those changes into its final HHI tabulations.

“Results for home health stocks were mixed last month, but overall we’re still seeing strong year-to-date performance,” said Stoneridge Partners President and CEO Rich Tinsley. “And February brought positive news for Addus stock, which rebounded nicely after a dip to start off 2019.”

Stock values for Frisco, Texas-based Addus were up 8.90% in February compared to January, according to the latest HHI results. Meanwhile, stock values for Baton Rouge, Louisiana-based Amedisys were down 6.46% in February compared to January. The company’s 52-week high is $140.91 per share, while its 52-week low is $56.95 per share.

Lafayette, Louisiana-based LHC Group’s stock saw gains of 2.19% in February compared to the previous month. LHC Group’s 52-week high is $114.22 per share, while its 52-week low is $59.21 per share.

Year to date, Amedisys and LHC Group stock values are up 4.97% and 13.86%, respectively.

Amedisys and LHC Group both released their 2018 fourth quarter financial results on February 27th. Amedisys 2018 net service revenue checked in at $1.66 billion, while LHC Group’s net service revenue on the year came in at $1.81 billion.

“Amedisys and LHC Group both capped off pretty strong years in February.” Tinsley said. “Each company has been especially active on the M&A front – particularly with LHC Group engaged in the Almost Family integration throughout the year.”

Quote Of The Month 

“VR allows us to fully immerse students in environments that would otherwise be difficult. Exposure therapy is an evidence-based treatment to address anxiety and phobias, but the integration of technology into the therapy setting has been very limited on college campuses due to lack of resources” -CAPS Director, Monica Ng.

Read the Full Article Here:  Mental Health: Where virtual reality meets real life 

 

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 March 2019 | Stoneridge Partners)

 

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

Company 2/28/19 1 mos change YTD change 2/28/18 2/28/17
Amedisys 122.65 -6.46% +4.97% 59.21 51.2
LHC Group 106.39 +2.19% +13.86% 64.38 48.52
HH Index* 114.52 -3.095% +46.50% 60.85 49.86
S&P 2796.5 +3.28% +12.06% 2718.5 2396.96
Addus 66.35 +8.90% -2.51% 34.35 33.7

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) 2/28/19 2/28/18 2/28/17
Amedisys 4010 2020 1700
LHC Group 3680 1310 949
HH Index Total 7690 4278 3294
Addus 761 410 352


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

Company 2/28/19 2/28/18 2/28/17
Amedisys 247% 134% 123%
LHC Group 232% 131% 108%
HH Index Average* 240% 128% 112%
Addus 156% 99% 92%


Multiples of EV/EBITDA

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

Company 2/28/19 2/28/18 2/28/17
Amedisys 24.39 16.08 21.47
LHC Group 27.61 13.99 11.52
HH Index Average* 26.00 19.02 15.62
Addus 20.31 12.02 13.28

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 March 2019 | Stoneridge Partners)

Recent Transactions From Around The Country

  • The Ensign Group, a subsidary of Cornerstone Healthcare, Inc. has acquired All County Home Care and Hospice in Boerne, TX
  • Help at Home LLC acquired Coastal Home Care and Altrus, two Georgia home and community based companies.

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 March 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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Available Opportunities 3/7/19

  • Private pay home care agency
  • Approximately $1,000,000 in annual revenue
  • Medicare/Medicaid certification
  • Accredited
  • W-2 employees
  • District 8
  • Medicare/Medicaid certified home health agency
  • $2.5 million annual revenue
  • 5-star
  • Accredited
  • District 10
  • Medicare certified home health agency
  • $1.4 million annual revenue
  • 4.5-star & Home Care Elite 2 years running
  • Accredited
  • District 3
  • Medicare certified home health agency
  • Approximately $400,000 in annual revenue
  • Accredited
  • District 7
  • $4.3 million home health, home care and hospice
  • 18% bottom line
  • $1 million revenue
  • Very clean and well established home health agency
  • Located in the heart of West Texas
  • Fully staffed and ready for a new owner to step right in
  • $7.6 million revenue
  • Profitable home health and hospice in upper Midwest
  • JCAHO accredited
  • 4-star
  • Ranked as a top performer in agency outcomes
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