Good day, ladies and gentlemen, and welcome to the Third Quarter 2012 Addus HomeCare Corp. Earnings Conference Call. My name is Tahicia, and I will be the operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Greg Swanson, Corporate Controller, please proceed.

Thanks, Tahicia. Good afternoon, and thanks for joining us, everyone. With me on the call today are Mark Heaney, Addus' Chief Executive Officer; Daniel Schwartz, Chief Operating Officer; and Dennis Meulemans, our Chief Financial Officer. Before we begin, I'll briefly read the Safe Harbor statement. This presentation will contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events and developments, the company's future performance as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties including factors outlined from time-to-time in our most recent Form 10-K or Form 10-Q filed with the Securities and Exchange Commission. These are available at www.sec.gov. The company undertakes no obligation to update publicly any forward-looking statement whether as a result of new information, future events or otherwise. With that complete, I'd like to now turn the call over to Mark Heaney, CEO.

Thank you, Greg. And welcome to Addus HomeCare's third quarter conference call. I'd like to begin my comments this afternoon by first asking that we all keep in our thoughts and prayers those suffering the consequences of Hurricane Sandy, which devastated our northeastern coastline earlier this week. Many of those that we serve are elderly, they're alone, they're vulnerable and too often they're plainly helpless. But in fact, they are at home. I am proud to report that our teams in the storm-hit areas began preparing for this event last week. We knew who needed help everyday, who was the most vulnerable, who could help and how. And then together, we could make sure we could keep our consumers home and healthy. We know that some of our consumers and employees suffered significant losses from the storm. But as best we can tell at this time, our consumers are safe at home and our employees are accounted for and continuing to help. And for that, I am both proud and grateful. Now having commented on that which is most important, let me turn to our overall performance in the quarter. In our reports over the past few quarters, I've characterized our performance as encouraging, steady, improving. I would use those terms again to describe our performance in the third quarter. Total revenues were $71 million, a 2.3% increase over the prior year Q. Net income was $1.8 million or $0.17 per diluted share. Summarized, you see continued steady up in our Home & Community segment, and I'm pleased to report improving sequential performance in our Home Health division resulting from the hard work of the division leadership and the staff as they execute on their recovery plan. Dennis and Daniel will provide additional specifics on our financial performance over the…

Thanks, Mark. The Home & Community division performed solidly in the quarter and delivered another strong quarter. Division operating income increased 10.7% over the prior year quarter, division G&A decreased 4.1% over the prior year quarter continuing this positive trend. Census increased 4.8% from Q3 '11 and 1.8% sequentially from Q2 '12. Additionally, we're seeing growth in the billable hours per plant. Gross margin decreased 1 percentage point due to an increase in worker's compensation cost in the quarter, and Dennis will provide more detail in his comments. We continue increasing field staff productivity, growing census and controlling administrative cost. We've seen no meaningful reductions in services or rates on the horizon, and as we reported last quarter, a continuing and growing recognition by the states and managed care organizations of the importance of home and community-based services as a core component of their cost reduction solution. We're proud and appreciative of the focused and disciplined leadership of our agency, regional and division leadership teams in Home & Community and delivering another strong quarter. We're excited about centralization, this is a foundational change in our practice model, leveraging technology to remove administrative processes in the branches including intake, billing, scheduling and payroll, Decreasing G&A expenses, improving effectiveness of these processes while freeing our branch teams to be wholly focused on care quality, customer service and business development. Our new CIO, Chief Information Officer, is leading this effort, leveraging extensive project management skills and managed care experience. We're 80% complete with our beta location, we're excited to continue rolling this out across the division. Finally, we're developing our regional leaders, especially in the areas of business development and community outreach. This group gets stronger each and every quarter. We're making solid, steady progress in executing our Home Health recovery plan to…

Thank you, Daniel, and I want to reiterate Mark's comments, good luck on your new endeavor. Highlights of our third quarter were consolidated revenues increased 2.3% to $71 million compared to $69.4 million for the past same period in 2011. Net income was $2 million or $0.19 per diluted share before considering $320,000 in severance costs related to management changes in our Home Health division. This compares to a reported net income of $1.8 million or $0.17 per diluted share in 2011, which excludes the effect of the $16 million goodwill and impairment charge taken in that quarter. Cash flows from operations during the quarter were $3.6 million, of which $3 million was provided by operations and $600,000 generated from working capital. Our year-to-date cash flow from operations is a positive $9.3 million. Home & Community, our largest segment, reported operating income of $7.5 million, an increase of 10.7% over prior year results. Home Health segment operating income was approximately $210,000 before considering the severance cost of $320,000 related to the management changes made during the quarter. These operating results are essentially flat with Q3 2011. We are pleased that on a sequential basis, Home Health performance has shown steady improvements over the course of 2012, reflecting the continued positive efforts of our team on our turnaround activities. Interest expense declined to $407,000 or 0.6% of revenue in the third quarter of 2012, a reduction of $141,000 when compared to 2011, the result of lower borrowings throughout the quarter. Now turning to our segments. Home & Community, as Daniel reported, had an increase in net service revenues of $3.4 million or 6.1% to $59.6 million, when measured on a year-over-year basis. This growth was fueled by a 4.8% increase in average census combined with a 6% increase in billable hours,…

[Operator Instructions] And it appears we have no questions at this time.

Operator, thank you very much, and thank you all for attending our call for the third quarter. We look forward to hearing you at the end of the year. Thank you all very much.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect.