FY 2007 EPS from Continuing Operations up 72% over 2006
LOUISVILLE, Ky., March 10 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the quarter and
year ended December 31, 2007 with record performance reported for both
periods.
Fourth Quarter Financial Highlights
-- Net Income From Continuing Operations was $2,075,903 or $0.37 per
diluted share in the quarter ended December 31, 2007 as compared to
$1,412,988 or $0.26 per diluted share in the same quarter of 2006 for
diluted EPS growth of 40%.
-- Consolidated revenues increased approximately 38% over the same quarter
last year.
-- The Company's VN segment revenues grew 58% over the same quarter last
year.
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $6.7 million to revenue for the
quarter. VN markets with no acquisition activity generated 32% of the
VN segment's revenue growth over the same quarter of last year.
Fiscal Year Financial 2007 Highlights
-- Net Income From Continuing Operations was $7,814,474 or $1.40 per
diluted share in 2007 as compared to $4,315,291 or $0.81 per diluted
share in 2006 for diluted EPS growth of 72%.
-- Consolidated revenues increased approximately 46% over last year
-- The Company's VN segment revenues grew 74% over last year
-- During 2007, the Company invested approximately $11 million of capital
in acquisitions of home health agencies.
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $30 million to revenue for the
year. VN markets with no acquisition activity generated 27% of the VN
segment's revenue growth over the prior year.
-- Days sales outstanding in accounts receivable were 44 at December 31,
2007, versus 45 at December 31, 2006
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We are extremely pleased to report our record operating performance
for the quarter and the year ended December 2007. During the year we
continued to generate strong internally generated revenue growth while also
expanding our footprint with significant acquisitions. Also during the year
we successfully integrated 20 branches acquired from Mederi in December
2006. Finally, during the quarter we were able to complete the acquisition
of Quality of Life which, to date has met all our expectations."
Yarmuth concluded: "All of this success can be attributed to the
quality of service to our patients and referral sources, which in turn can
be attributed only to the quality and outstanding performance of our loyal
employees and I want to take this opportunity to sincerely thank them for
their fine efforts throughout 2007."
Quarterly Discussion
Net Income From Continuing Operations grew 41% to $2,075,903 or $0.37
per diluted share for the December 2007 quarter as compared to $1,412,988
or $0.26 per diluted share in the December 2006 quarter. Revenues grew 38%
to $35.9 million in the December 2007 quarter from $26.0 million in the
December 2006 quarter. The quarter ended December 2007 included
approximately $2.3 million of revenue from the Quality of Life acquisition
completed October 27, 2007.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 58% over the same period last year. Acquired operations contributed
approximately $6.7 million of that revenue growth. The $3.1 million balance
of the VN revenue increase came from internal growth.
Net income including discontinued operations, was $2,069,916 or $0.37
per diluted share in the quarter ended December 31, 2007 and $1,469,065 or
$0.27 per diluted share in 2006.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 5% between periods.
VN Revenue Comparison for the Quarter
Due to the significant impact of acquisition activities on VN revenue
growth, the following tables are presented comparing revenue growth by
market type for the quarters ended December 31, 2007 and 2006:
VN Revenue Comparison
by Market Type - All # of
VN Operations Mkts 2007 2006 Change Percent
Newly acquired markets 16 $7,249,942 $1,230,132 $6,019,810
Markets with in-market
acquisitions 10 4,923,509 4,247,427 676,082 15.9%
Acquisition related
markets 26 12,173,451 5,477,559 6,695,892
Markets with no
acquisition impact 25 14,658,264 11,543,384 3,114,880 27.0%
51 $26,831,715 $17,020,943 $9,810,772 57.6%
VN revenues grew approximately $9.8 million between years of which 61%
came from newly acquired markets, 7% came in markets with in-market
acquisitions and 32% came from markets with no acquisition impact.
Results of operations for the quarters ended December 31, 2007 and 2006
are set forth in the tables below:
December December
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $26,831,715 74.8% $17,020,943 65.6%
Personal Care 9,044,670 25.2% 8,932,482 34.4%
$35,876,385 100.0% $25,953,425 100.0%
Operating income
Visiting Nurses $5,406,787 20.2% $3,166,646 18.6%
Personal Care 796,822 8.8% 1,171,932 13.1%
6,203,609 17.3% 4,338,578 16.7%
Unallocated corporate expenses 2,380,466 6.6% 1,957,485 7.5%
3,823,143 10.7% 2,381,093 9.2%
Interest expense 186,503 0.5% 39,780 0.2%
Pre-tax income 3,636,640 10.1% 2,341,313 9.0%
Income taxes 1,560,737 4.4% 928,325 3.6%
Net income from continuing
operations $2,075,903 5.8% $1,412,988 5.4%
Income (loss) from discontinued
operations, net of tax (5,987) 56,077
Net income $2,069,916 $1,469,065
Diluted earnings per share
Diluted shares outstanding
(1) 5,668,916 5,388,256
Continuing operations $0.37 $0.26
Discontinued operations 0.00 0.01
$0.37 $0.27
Continuing Operations
EBITDA $4,060,494 $2,589,200
Effective tax rate 42.9% 39.6%
Change
Amount %
Net revenues
Visiting Nurses $9,810,772 57.6%
Personal Care 112,188 1.3%
$9,922,960 38.2%
Operating income
Visiting Nurses $2,240,141 70.7%
Personal Care (375,110) -32.0%
1,865,031 43.0%
Unallocated corporate expenses 422,980 21.6%
1,422,051 60.6%
Interest expense 146,723 NM
Pre-tax income 1,295,328 55.3%
Income taxes $632,413 68.1%
Net income from continuing
operations 662,915 46.9%
Income (loss) from discontinued
operations, net of tax (62,064) NM
Net income 600,851 40.9%
Diluted earnings per share
Diluted shares outstanding (1) 280,660 5.2%
Continuing operations $0.10 39.6%
Discontinued operations (0.01) NM
0.09 33.9%
Continuing Operations
EBITDA $1,471,294 56.8%
Effective tax rate 3.3%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
NM=Not Meaningful
Year End Results Net Income From Continuing Operations grew 81% to
$7,814,474 or $1.40 per diluted share for the year ended December 2007 as
compared to $4,315,291 or $0.80 per diluted share in 2006. Revenues grew
46% to $132 million in 2007 from $91 million in 2006.
Revenues in the VN segment grew 74% over the same period last year.
Acquired operations contributed approximately $29.8 million of that revenue
growth. The $11.2 million balance of the VN revenue increase came from
internal growth. Net income including discontinued operations, was
$7,603,560 or $1.36 per diluted share in the year ended December 31, 2007
and $4,239,443 or $.80 per diluted share in 2006.
VN Revenue Comparison for the Year
Due to the significant impact of acquisition activities on VN revenue
growth, the following tables are presented comparing revenue growth by
market type for the years ended December 31, 2007 and 2006:
VN Revenue Comparison
by Market Type - All # of
VN Operations Mkts 2007 2006 Change Percent
Newly acquired markets 16 $24,933,372 $1,230,132 $23,703,240
Markets with in-market
acquisitions 10 17,944,250 11,830,306 6,113,944 51.7%
Acquisition related
markets 26 42,877,622 13,060,439 29,817,183
Markets with no
acquisition impact 25 53,342,327 42,129,819 11,212,508 26.6%
51 $96,219,949 $55,190,258 $41,029,691 74.3%
VN revenues grew approximately $41 million between years of which 58%
came from newly acquired markets, 15% came in markets with in-market
acquisitions and 27% came from markets with no acquisition impact.
Results of operations for the years ended December 31, 2007 and 2006
are set forth in the tables below:
December December
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $96,219,949 72.8% $55,190,258 60.9%
Personal Care 35,910,107 27.2% 35,455,236 39.1%
$132,130,056 100.0% $90,645,494 100.0%
Operating income
Visiting Nurses $19,592,144 20.4% $9,098,996 16.5%
Personal Care 3,412,008 9.5% 3,899,545 11.0%
23,004,152 17.4% 12,998,541 14.3%
Unallocated corporate expenses 9,080,618 6.9% 5,891,932 6.5%
13,923,534 10.5% 7,106,609 7.8%
Interest expense (income) 836,911 0.6% (54,440) -0.1%
Pre-tax income 13,086,623 9.9% 7,161,049 7.9%
Income taxes 5,272,149 4.0% 2,845,758 3.1%
Net income from continuing
Operations $7,814,474 5.9% 4,315,291 4.8%
Income (loss) from
discontinued operations, net
of tax (210,914) (75,848)
Net income $7,603,560 4,239,443
Diluted earnings per share
Diluted shares outstanding
(1) 5,599,476 5,326,997
Continuing operations $1.40 0.81
Discontinued operations (0.04) (0.01)
$1.36 0.80
Continuing Operations
EBITDA $15,115,933 $8,105,985
Effective tax rate 40.3% 39.7%
Change
Amount %
Net revenues
Visiting Nurses $41,029,691 74.3%
Personal Care 454,871 1.3%
41,484,562 45.8%
Operating income
Visiting Nurses $10,493,148 115.3%
Personal Care (487,537) -12.5%
10,005,611 77.0%
Unallocated corporate expenses 3,188,686 54.1%
6,816,925 95.9%
Interest expense (income) 891,351 NM
Pre-tax income 5,925,574 82.7%
Income taxes 2,426,391 85.3%
Net income from continuing
Operations $3,499,183 81.1%
Income (loss) from discontinued
operations, net of tax (135,066) NM
Net income $3,364,117 79.4%
Diluted earnings per share
Diluted shares outstanding (1) 272,479 5.1%
Continuing operations $0.59 72.3%
Discontinued operations (0.02) NM
$0.56 70.6%
Continuing Operations
EBITDA $7,009,948 86.5%
Effective tax rate 0.60%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
NM = Not Meaningful
Non-GAAP Financial Measure The information provided in the tables in
this release includes certain non- GAAP financial measures as defined under
Securities and Exchange Commission (SEC) rules. In accordance with SEC
rules, the Company has provided, in the supplemental information and the
footnotes to the tables, a reconciliation of those measures to the most
directly comparable GAAP measures.
EBITDA:
EBITDA is defined as income before depreciation and amortization, net
interest expense and income taxes. EBITDA is not a measure of financial
performance under accounting principles generally accepted in the United
States of America. It should not be considered in isolation or as a
substitute for net income, operating income, cash flows from operating,
investing or financing activities, or any other measure calculated in
accordance with generally accepted accounting principles. The items
excluded from EBITDA are significant components in understanding and
evaluating financial performance and liquidity. Management routinely
calculates and communicates EBITDA and believes that it is useful to
investors because it is commonly used as an analytical indicator within our
industry to evaluate performance, measure leverage capacity and debt
service ability, and to estimate current or prospective enterprise value.
EBITDA is also used in measurements of borrowing availability and certain
covenants contained in our credit agreement.
The following table sets forth a reconciliation of Continuing Operations
Net Income to EBITDA:
Quarter Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Net income from
continuing operations $2,075,903 $1,412,988 $7,814,474 $2,530,510
Add back:
Interest expense
(income) 186,503 39,780 836,911 (54,440)
Income taxes 1,560,737 928,325 5,272,149 2,845,758
Depreciation &
amortization 216,501 208,107 842,201 999,376
Amortization of
stock-based
compensation 20,850 - 350,198 -
Earnings from continuing
operations Before
Interest, Income Taxes,
Depreciation &
Amortization (EBITDA) $4,060,494 $2,589,200 $15,115,933 $8,105,985
Almost Family, Inc. TM and subsidiaries (collectively "Almost Family")
is a leading regional provider of home health services. The Company has
service locations in Florida, Kentucky, Ohio, Connecticut, Massachusetts,
Missouri, Alabama, Illinois and Indiana (in order of revenue significance).
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
All statements, other than statements of historical facts, included in
this news release, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terminology such
as "may," "will," "expect," "believe," estimate," "project," anticipate,"
"continue," or similar terms, variations of those terms or the negative of
those terms. These forward-looking statements are based on the Company's
current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially include: regulatory approvals or third party
consents may not be obtained, the impact of further changes in healthcare
reimbursement systems, including the ultimate outcome of potential changes
to Medicare reimbursement for home health services and to Medicaid
reimbursement due to state budget shortfalls; the ability of the Company to
maintain its level of operating performance and achieve its cost control
objectives; changes in our relationships with referral sources; the ability
of the Company to integrate acquired operations; government regulation;
health care reform; pricing pressures from Medicare, Medicaid and other
third-party payers; changes in laws and interpretations of laws relating to
the healthcare industry; and the Company's self-insurance risks. For a more
complete discussion regarding these and other factors which could affect
the Company's financial performance, refer to the Company's various filings
with the Securities and Exchange Commission, including its filing on Form
10-K for the year ended December 31, 2006, in particular information under
the headings "Special Caution Regarding Forward-Looking Statements" and
"Risk Factors." The Company undertakes no obligation to update or revise
its forward-looking statements.
SOURCE Almost Family, Inc.
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Related links:
http://www.almost-family.com
http://www.prnewswire.com/comp/784275.html /
CONTACT:
William Yarmuth or Steve Guenthner, both of
Almost Family, Inc., +1-502-891-1000
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