Ladies and gentlemen thank you for standing by. This conference is being recorded and we are no ready to begin.

Good afternoon and welcome to the Addus HomeCare first quarter 2015 earnings conference call. This presentation will contain forward-looking statements within the meanings 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 the company's most recent Form 10-K or Form 10-Q, earnings announcement or other reports filed with the Securities and Exchange Commission and available at the SEC's website. The company undertakes no obligation to update publicly any forward-looking statement whether as a result of new information, future events or otherwise. I would now like to turn the call over to the company's Chief Executive Officer, Mr. Mark Heaney. Please go ahead, sir.

Thank you, Scott. Good afternoon everyone and thank you very much for joining us for Addus HomeCare's investor call. I'm joined today by Maxine Hochhauser, our Chief Operating Officer, Darby Anderson, our Chief Business Development and Strategy Officer and Dennis Meulemans, our Chief Financial Officer. This will be Dennis’ last call with us as was announced previously just as the weather in Chicago is warming, Dennis will be retiring to the Golf Course trying to repair the damage that was done to his handicap __ working here with us at Addus.

I also want to welcome our staff listening in to today's call and to recognize them for the outstanding care they and our homecare aids provide. These calls provide our team with a good overview of both our business operations but also importantly our responsibilities to our shareholders and other stakeholders. The care our aids provide is very often the difference and our consumers being able to stay in their homes or they are progressing on the healthcare continuum to a much more expensive level of care. Especially as the healthcare system shifts to a value base approach to care, helping our consumers remain at home is good for everyone involved, the consumer , their families, the care provider and the payor. Turning to the first quarter, we're pleased with our financial and operating results including our double-digit census growth, this growth was the primairy driver of our 14% plus revenue growth for the quarter which contributed to an increased gross profit margin and a 21% increase in our adjusted EBITDA. Our revenue growth continued with MCOs and with our traditional state based referral services. As mentioned in our last call, referrals in Illinois had slowed in this and the previous quarter as the state converts to managed care, we see those referral rates as returning to historical levels. Revenue from MCOs for the first quarter increased to 18.3% of our total revenue mix compared with 4.4% for the first quarter last year and 15.4% for the fourth quarter of 2014. For the past 35 years we have been providing personal care services to older persons and younger disabled persons who without the intervention of the homecare aid would be at imminent risk of institutionalization along the way using more and more of the limited healthcare dollar. We serve the…

Thank you. [Operator Instructions] our first question comes from the line of Dana Hambly with Stevens. Your line is open, please go ahead.

Hey good afternoon. Can we just go over the Mark or Darby on the illinos referral, I know you talked about it last quarter, obviously had an impact this quarter and Mark I think you mentioned we're back to normal, can you just describe when we got back to normal and what normal is?

Yes. So let me ask Maxine Hochhauser to handle that if you don’t mind Dana.

Oh yes, it might be nice.

Hey Dan, hey hi how are you.

Good.

So as Mark had indicated we saw a continued slowdown of new clients entering into the system during January and February, we started to see that pick up in March and we're really happy with what we saw in March, continue to be happy with where things are you know you are from Tennessee, we saw a lot of this in Tennessee when they went through the MCO transition there and same type of thing, Illinois is just a bit more complex, so we expect it to take a little bit more longer.

Okay, the issue was your assessment case manager is just getting inundated with work from the managed care organizations, is that basically it and that’s what you are saying is kind of back to normal now.

Yes, we started to see it come back to normal, started to see it pickup in March and as I said we're really happy with what we started to see, happy where it is now, but its exactly as you are saying. The case managers are the same case managers so the focus was on transitioning the clients from the traditional program into the MCOs and that prevented them from focusing on new clients entering into the system.

indescribable 17:52:

Right, Dana the same store now includes the acquisitions of the MSA properties at the end of 2013 and the community care, community CHHC acquisition in New Mexico are now all part of the same store. The acquisitions are the aid and assist and the priority.

Okay. and how would you characterize the performance of those acquired practices now that the ones that have folded in the same store now thaqt they have been in there for over a year?

Yes where CHHC is performing as expected and is doing well, we saw growth during last year for CHHC and aid and assist as we said after post transition to MCO started – we saw growth in the in the first quarter. CHHC was integrating and performed as we expected during Q1.

Okay and lastly, for me could you just give a little more detail on the health risk assessments that you have engaged in and what would be the financial impact if any or where does this lead to other business?

Great question. From a revenue basis its really not material, but we are really looking it as an opportunity to touch large number of clients that we wouldn’t have otherwise engaged with. What the MCOs have done is asked us to use our network, distributor network of employees its feet on the ground to help them locate new members, arrange for physician appointments, engage with their new members to fill care gaps and do this initial health risk assessment. Our success translates to their success in improving their quality and contract compliance. So we're really excited because we're now operating with them other then focused on our personal care business, we're also using the software and distribution system that we developed to provide that full services to them. So we really feel like we've positioned ourselves well as they are starting to move forward within managed care.

Okay great thank you.

Thank you and our next question comes form Mitra Ramgopal with Sidoti. Your line is open, please go ahead.

Yes hi, good afternoon first I was just wondering if you could give us a sense as to how far or long are we on the Illinois transition?

Yes I may ask Darby to answer that he has been involved with it long.

duals:

Okay and you feel pretty comfortable going forward, you know it should hopefully get a little easier from here on out.

Yes, absolutely.

Okay. Mark I was just wondering if you could give us more color on the south shore transaction in terms of as you look at New York and the potential opportunities you had out there, what was it about south shore in particular and maybe that geography that sort of attracted you to it.

So, its frankly what I listed in my statement, we have been looking at the New York markets for a lot of years Mitra, and its an interesting market and it sets peculiarities which you don’t encounter necessarily in other states just is what it is. We were looking for the right size business doing personal care and not involved in home health and not sub contracting too much which is a lot of what happens in New York. A clean history, operated the business like a real business, like a clinical environment for a lot of years, looking for the right size and the right management team, because as I mentioned we think of it as a platform to very large and important states. Frankly its good fortune because our COO has a boat load of experience in that state its just I don’t want to use the word perfect, but if you don’t mind its perfect for your.

Okay. I was wondering since the transaction doesn’t close until maybe the end of the year, does that sort of preclude you from looking t other markets or even further within New York?

No, no short answer no. we will work this out internally, we will work with the management team there to begin to get to know each other and figure out where the opportunity is, again platform, they may even be listening to this call if they are the bad new for them is that the senior management would be staying with us, has work to do on day two and by the way they are real excited about doing that it’s a great it’s a great business to be true.

Okay and thanks again for the additional comments there and I was just wondering in terms of as you continue to gain share on this business and expand, are you running into more competition so to speak and as you look at transactions are you seeing potential other bidders that you are running up against that have may be didn’t exist a year ago?

Its really starting, I wouldn’t say that we are seeing a lot of increased competition, there might be a little bit more but not a lot more and when I say tat I mean not a lot more competition on every deal of course it depends on the property, right the larger the size, if they are private equity sponsor then we tend to see a little bit more competition, but generally I would say modest increase in that.

You know what Mitra we've known you well right, we have said to the market we believe it true that there are 12000 plus homecare providers doing what we do in this country, we're making more and more consumers but it is becoming an appropriately more challenging business to operate and it should be, this is the nature of the consumer we're dealing with and the opportunity to make margin is one that favors the larger companies and so we think - we don’t think it, we think we are certain that this is a consolidating market and we have the strategy and you know our acquisition strategy and we think we are in the position to prudently but consistently execute on it.

Okay thanks again for taking the questions.

Thank you Mitra. End of Q&A

Thank you [Operator Instructions] And I’m showing no further questions at this time. And I would like to conclude today's program. Ladies and gentlemen thank you for your participation and you may all disconnect. Everyone have a great day.