AGENCIES FOR SALE

  • ID/DD business with long history
  • $2 million run rate revenue
  • Long-term clients
  • Recent rate increase
MIDWEST ABA PROVIDER: Stoneridge File #SBH-9071
  • $5 million Midwest-based ABA provider
  • Day supports and counseling
  • Highly profitable and respected
  • CARF Accredited
  • Contracted with State and Insurance companies
  • $3.5 million all-Medicaid home care company
  • Located in Houston, TX
  • 20%+ year-over-year revenue growth since 2016
  • Nice bottom line
  • $2.2 million Dallas-area Medicare home health agency
  • 22% bottom line
  • Well-established with a very clean compliance record
  • Full management team in place
  • $1.7 million Medicare home health agency
  • Located in Southwest Houston
  • Well-established with predictable referral sources
  • Very profitable

 

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AGENCIES FOR SALE

NEW MIDWEST ABA PROVIDER: Stoneridge File #SBH-9071
  • $5 million Midwest-based ABA provider
  • Day supports and counseling
  • Highly profitable and respected
  • CARF Accredited
  • Contracted with State and Insurance companies
  • $11 million home health agency and hospice
  • Located in Southern California
  • Double digit revenue growth the last two years
  • Highly profitable
  • JCAHO accredited
  • $2.2 million Dallas-area Medicare home health agency
  • 22% bottom line
  • Well-established with a very clean compliance record
  • Full management team in place

 

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AGENCIES FOR SALE

  • Medicare Certified Home Health Agency
  • $3+ Million in annual revenue
  • Districts 3 and 4
  • Accredited
  • Great star rating
NEW MASSACHUSETTS: Stoneridge File #SBA-6010
  • Medicare/Medicaid certified home health agency
  • $10+ million and growing
  • Diverse payor mix
  • Strong management team in place
  • Accredited
  • $11 million home health agency and hospice
  • Located in Southern California
  • Double digit revenue growth the last two years
  • Very well-established and highly profitable
  • JCAHO accredited
  • $3 million all-Medicaid home care company
  • Located in Houston, TX
  • 20%+ year-over-year revenue growth since 2016
  • Nice bottom line
  • $1.7 million Medicare home health agency
  • Located in Southwest Houston
  • Well-established with predictable referral sources
  • Very profitable
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Home Health Stocks Hold Steady in April

Home Health Stocks Hold Steady in April

Health care mergers and acquisitions firm Stoneridge Partners’ most recent Home Health Index (HHI) shows that home health stocks held largely steady in April, decreasing just 0.03% over the previous month. The stocks did, however, slightly underperform the broader market, with the S&P 500 up 2.23% in April compared to March.

The Stoneridge Partners HHI follows the monthly market values for home health, hospice and personal care giants Amedisys, Inc. (Nasdaq: AMED) and LHC Group, Inc. (Nasdaq: LHCG). Stoneridge also tracks market changes for Addus HomeCare Corporation (Nasdaq: ADUS), though it is not included in the final HHI tabulations.

“Home health stock values were pretty consistent last month as the three publicly-traded companies neared their first quarter financial results,” Stoneridge Partners President Rich Tinsley said. “Addus had a very strong April, and LHC Group also fared well. Amedisys values showed some negative fluctuation compared to March.”

Addus stock was up 5.03% in April compared to March. Lafayette, Louisiana-based LHC Group saw its stock values rise by 2.55%, while stock of Baton Rouge, Louisiana-based Amedisys took a 2.19% dip in April compared to the previous month. Despite these small monthly shifts, both LHC and Amedisys have charted very strong performances annually. Amedisys stock was still up 89.96% on a year-over-year basis in April, and LHC Group was up 59.68% year over year.

Despite a solid first quarter, Amedisys’s stock values were down 6.21% following the release of its Q1 financial results at the start of the month, trading at $119.88 per share.

“It’s definitely going to be interesting to follow these companies and their stock values as Patient-Driven Groupings Model (PDGM) implementation draws closer,” Tinsley said. “The companies have all touted their preparation and readiness — but there’s bound to be some speed bumps in the road approaching January 1, 2020.”

Quote Of The Month

“When a person already feels vulnerable billness – they heal at better rates and with more positive outcomes in familiar and comfortable surroundings”, home health nurse, Tarita Bumbray.

Read the Full Article Here:  Bedside Manners: Home Health Nurses Become First Line of Care 

 

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 May 2019 | Stoneridge Partners)

 

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

Company 4/30/19 1 mos change YTD change 4/30/18 4/30/17
Amedisys 120.25 -2.69% +2.92% 65.97 57.63
LHC Group 111.19 +2.76% +19.00% 74.45 55.43
HH Index* 115.72 +0.07% +10.06% 70.21 54.24
S&P 2931 +2.23% +17.45% 2654.8 2388.13
Addus 67.65 +5.03% -0.60% 52.15 34.6

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) 4/30/19 4/30/18 4/30/17
Amedisys 4480 2260 1950
LHC Group 3800 1440 1010
HH Index Total 8280 3700 3739
Addus 832 607 409


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

Company 4/30/19 4/30/18 4/30/17
Amedisys 259% 150% 137%
LHC Group 210% 136% 122%
HH Index Average* 235% 143% 128%
Addus 161% 145% 102%


Multiples of EV/EBITDA

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

Company 4/30/19 4/30/18 4/30/17
Amedisys 25.43 17.59 23.92
LHC Group 23.07 16.08 13.06
HH Index Average* 24.25 16.84 18.92
Addus 21.23 18.44 13.10

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 May 2019 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Arose+LivHome acquired Forever Young Home Care in North Carolina
  • Jet Health Inc. acquired Boise-based First Choice Home Health and Hospice
  • The Ensign Group, Inc. acquired Hospice operations in Austin and Houston, TX
  • Blue Wolf, Peloton Equity acquired In-Home Care VNA

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.

SOLD!!! By Stoneridge

  • Stoneridge Partners represented an Ohio based  agency that closed April 2019

Another Cartoon Favorite 

  

 

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Home Health Index May 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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AGENCIES FOR SALE

NEW CALIFORNIA: Stoneridge File #SCM-7298
  • Medicare certified Home Health Agency established in 2003
  • $2 million annual revenue in 2018
  • PDGM revenue neutral
  • Located in Southern California
  • Clean business with no ADR’s
NEW CALIFORNIA: Stoneridge File #SCM-9679
  • $1.6 million Hospice
  • Located in Los Angeles County
  • Consistent census of 25 patients over last 3 years
  • Joint Commission accredited
  • Strong bottom line with staff in place
  • $11 million home health & hospice
  • Located at Southern California
  • Showing double-digit revenue growth over the last two years
  • Very well-established and highly profitable
  • JCAHO accredited
  • Medicare/Medicaid certified home health agency
  • $2.5 million annual revenue
  • 5-star
  • Accredited
  • District 10
  • Medicare certified home health agency
  • District 10
  • Census: Minimal
  • Accredited
  • Hospice
  • Census in mid-70’s
  • Accredited
  • Chicago area
  • Hospice
  • $3.5 Million in annual revenue
  • Accredited
  • Clean: No cap or regulatory issues
  • $2.2 million Dallas-area Medicare home health agency
  • 22% bottom line
  • Well-established with a very clean compliance record
  • Full management team in place
  • $1.7 million Medicare home health agency
  • Located in Southwest Houston
  • Well-established with predictable referral sources
  • Very profitable
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