LOUISVILLE, Ky., Feb. 15 /PRNewswire-FirstCall/ --
Almost Family, Inc. (Nasdaq: AFAM) announced today that, in connection
with its year-end accounting process, management has identified certain errors
related to the Company's accounting for its self-insured employee health
benefits program during the fiscal years ended March 31, 2001 and 2000. In
FYE ending March 31, 2000, the Company adopted a program of self-insurance for
the health care costs of its employees. The Company's liability for health
insurance claims incurred but not paid as of March 31, 2001 and 2000 was
understated and a receivable recorded as of March 31, 2001 for expected
reimbursement of claims in excess of reinsurance stop loss limits was
overstated. After consultation with the Company's independent auditors,
management has determined that it is necessary to restate the Company's
financial results for the fiscal years ended March 31, 2001 and 2000.
The expected restatement is not anticipated to have a material impact on
the Company's earnings for the two most recently reported quarters,
June 30, 2001 and September 30, 2001.
The following table sets forth the Company's net income as previously
reported, the amounts of the expected restatements, and the expected restated
net income for the fiscal years ended March 31, 2001 and 2000:
Fiscal Year Ended March 31,
2001 2000
Net income (loss) as previously stated $ 2,211,848 $ (4,742,954)
Expected restatement, net of income tax
effect (870,000) (430,000)
Net income (loss) after expected
restatement $ 1,341,848 $ (5,172,954)
Basic shares outstanding 3,145,511 3,124,016
Per Share Amounts - Basic
Net income (loss) as previously stated $ 0.70 $ (1.52)
Expected restatement, net of income tax effect (0.28) (0.14)
Net income (loss) after expected
restatement $ 0.43 $ (1.66)
Diluted Shares Outstanding 3,306,682 3,124,016
Per Share Amounts - Diluted
Net income (loss) as previously stated $ 0.67 $ (1.52)
Expected restatement, net of income tax
effect (0.26) (0.14)
Net income (loss) after expected
restatement $ 0.41 $ (1.66)
Commenting on the restatement, Almost Family Chairman William Yarmuth
said: "We regret that it is necessary to restate our 2000 and 2001 results.
Our ongoing business remains strong and this unfortunate incident should in no
way interfere with the momentum we have built over the past three years in
developing our business."
The Company plans to announce its third-quarter results in the latter part
of March 2002, following the completion of its audit. The Company previously
announced a change in its fiscal year end from March 31 to December 31
effective for the fiscal period ended December 31, 2001.
The Company anticipates filing restated March 2001 and 2000 financial
statements with the Securities and Exchange Commission on its Form 10-K for
the nine months ended December 31, 2001, due to be filed by the end of
March 2002. Accordingly, investors should not rely on the Company's related
financial information in the previously filed reports on Form 10-Q and Form
10-K, including the financial statements and the related auditors' reports
contained therein, for the periods from April 1, 1999 through March 31, 2001.
Almost Family, Inc. is an adult day health care services company focused
on providing alternatives for seniors and other special needs adults who wish
to avoid nursing home placement. The Company has locations in Kentucky,
Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio, and Florida.
Contact: William Yarmuth or Steve Guenthner (502) 899-5355.
All statements, other than statements of historical facts, included in
this news release, are forward-looking statements. These forward-looking
statements are based on the Company's current expectations. Although the
Company believes that the expectations expressed or implied in such forward-
looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct.
The Company's announced expected restatements of financial results for the
years ended March 31, 2001 and 2000 are based on the Company's current
expectations and are subject to uncertainty and the completion of the
Company's year-end accounting process. The Company cannot at this time
quantify the exact amounts of such restatements, and the Company may determine
to restate additional amounts that could have a further material adverse
effect on the Company's reported financial results. There can be no
assurances that any final restatements will not include revisions to the
announced adjustments, require additional adjustments or cover additional
periods.
Because forward-looking statements involve risks and uncertainties, the
company's actual results could differ materially. The potential risks and
uncertainties which could cause actual results to differ materially could
include the impact of further changes in healthcare reimbursement systems,
including the ultimate effects of implementation of Medicare Prospective
Payment System, potential changes to the Medicare PPS (including but not
limited to the rate reduction currently legislated to go into effect
October 1, 2002), the ability of the Company to achieve the cost control and
earnings objectives of its plan for operating its visiting nurse division
under Medicare PPS; government regulation; health care reform; pricing
pressures from Medicaid and other third-party payers; and changes in laws and
interpretations of laws relating to the healthcare industry. For a more
complete discussion regarding these and other factors which could affect the
Company's financial performance, refer to the Company's Securities and
Exchange Commission filing on Form 10-K for the year ended March 31, 2001, in
particular information under the headings "Business" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
The Company disclaims any intent or obligation to update its forward-looking
statements.
SOURCE Almost Family, Inc.
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Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/784275.html
CONTACT:
William Yarmuth or Steve Guenthner of Almost
Family, Inc., +1-502-899-5355
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