FY 2006 EPS from Continuing Operations up 67% over 2005, excluding one-time
items
LOUISVILLE, Ky., March 12 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the quarter and
year ended December 31, 2006.
Fourth Quarter Financial Highlights
-- Net Income From Continuing Operations -- As Reported was $1,395,586 or
$0.26 per diluted share in the quarter ended December 31, 2006 as
compared to $1,272,396 or $0.24 per diluted share in the same quarter
of 2005.
-- Net Income From Continuing Operations -- As Adjusted, (excluding for
2005 a one-time litigation settlement gain and the effect of changes in
state income tax valuation allowances), was $1,395,586 or $0.26 per
diluted share in the quarter ended December 31, 2006 as compared to
$852,299 or $0.16 per diluted share in the same quarter of 2005 for
diluted EPS growth of 63%.
-- Consolidated revenues increased approximately 36% over the same quarter
last year.
-- The Company's VN segment revenues grew 63% over the same quarter last
year.
Fiscal Year Financial 2006 Highlights
-- Net Income From Continuing Operations -- As Reported was $4,273,526 or
$0.80 per diluted share in 2006 as compared to $2,950,607 or $0.57 per
diluted share in 2005.
-- Net Income From Continuing Operations -- As Adjusted, (excluding for
2005 a one-time litigation settlement gain and the effect of changes in
state income tax valuation allowances), was $4,273,526 or $0.80 per
diluted share in 2006 as compared to $2,530,510 or $0.48 per diluted
share in 2005 for diluted EPS growth of 67%
-- Consolidated revenues increased approximately 22% over last year
-- The Company's VN segment revenues grew 39% over last year
-- During 2006, the Company invested approximately $25 million of capital
in acquisitions and startup home health agencies.
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We are extremely pleased to report our fourth quarter results.
Excluding 2005 one-time items our diluted earnings per share from
continuing operations increased 63%. All three prongs of our growth
strategy: 1) same store sales growth, 2) startups and 3) acquisitions
continue to contribute significantly to our performance. In 2006 we were
once again able to dramatically improve our earnings per share and EBITDA,
complete acquisitions with a combined annual revenue run rate of over $30
million, generate meaningful internal revenue growth and still exit the
year with substantial financial capacity to fuel continued future growth."
"In 2006 our shareholders saw an unprecedented increase in the value of
their investment. This is a direct result of the continued commitment and
dedication of all our employees, and I thank them sincerely for their
outstanding efforts."
Quarterly Discussion
Net Income From Continuing Operations -- As Reported grew 10% to
$1,395,586 or $0.26 per diluted share for the December 2006 quarter as
compared to $1,272,396 or $0.24 per diluted share in the December 2005
quarter (which including a net gain on litigation settlement of $267,426 or
$0.05 per diluted share and the effect of revised state income tax
valuation allowances of $152,671 or $0.03 per diluted share). Revenues grew
36% to $26.2 million in the December 2006 quarter from $19.2 million in the
December 2005 quarter. The quarter ended December 2006 included
approximately $2 million of revenue from the Mederi acquisition completed
December 3, 2006.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 63% over the same period last year. Acquired operations contributed
approximately $3.7 million of that revenue growth. The $2.8 million balance
of the VN revenue increase came from internal growth.
Net income including discontinued operations, was $1,469,065 or $0.27
per diluted share in the quarter ended December 31, 2006 and $1,483,036 or
$0.28 per diluted share in 2005.
Results of operations for the quarters ended December 31, 2006 and 2005
are set forth in the tables below:
December December
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $17,020,943 64.9% $10,474,930 54.5% $6,546,013 62.5%
Personal
Care 9,204,785 35.1% 8,748,558 45.5% 456,227 5.2%
$26,225,728 100.0% $19,223,488 100.0% $7,002,240 36.4%
Operating
income
Visiting
Nurses $3,166,646 18.6% $1,402,663 13.4% $1,763,983 125.8%
Personal
Care 1,141,844 12.4% 958,074 11.0% 183,770 19.2%
4,308,490 16.4% 2,360,737 12.3% 1,947,753 82.5%
Unallocated
corporate
expenses 1,956,353 7.5% 1,083,579 5.6% 872,774 80.5%
2,352,137 9.0% 1,277,158 6.6% 1,074,979 84.2%
Litigation
settlement
gain - 0.0% (267,426) -1.4% 267,426 -100.0%
Interest
expense/
(income) 39,780 0.2% (69,433) -0.4% 109,213 -157.3%
Pre-tax
income 2,312,357 8.8% 1,614,017 8.4% 698,340 43.3%
Income taxes 916,771 3.5% 341,621 1.8% 575,150 168.4%
Net income
from
continuing
operations $1,395,586 5.3% $1,272,396 6.6% $123,190 9.7%
Income (loss)
from
discontinued
operations,
net of tax 73,479 143,727 (70,248) NM
Gain on sale
of ADC seg-
ment, net
of tax - 66,913 (66,913) NM
Net income $1,469,065 $1,483,036 $(13,971) NM
Diluted
earnings per
share
Diluted
shares
outstand-
ing(1) 5,394,000 5,307,554 86,446 1.6%
Continuing
operations $0.26 $0.24 $0.02 8.3%
Discontinued
operations 0.01 0.03 (0.02) NM
Gain on
sale of ADC
segment - 0.01 (0.01) NM
$0.27 $0.28 $(0.01) NM
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing
Operations
As Adjusted,
(excluding
litigation
settlement
gain and
one-time
income tax
item)
EBITDA $2,561,367 $1,332,398 $1,228,969 92.2%
Net income $1,395,586 $852,299 $543,287 63.7%
Diluted EPS $0.26 $0.16 $0.10 62.5%
Effective tax
rate 39.6% 36.7% 2.9%
Year End Results
Net Income From Continuing Operations -- As Reported grew 45% to
$4,273,526 or $0.80 per diluted share for the year ended December 2006 as
compared to $2,950,607 or $0.57 per diluted share in 2005 (which included a
net gain on litigation settlement of $267,426 or $0.05 per diluted share
and the effect of revised state income tax valuation allowances of $152,671
or $0.03 per diluted share). Revenues grew 22% to $91.8 million in 2006
from $75.1 million in 2005.
Revenues in the VN segment grew 39% over the same period last year.
Acquired operations contributed approximately $6.1 million of that revenue
growth. The $9.4 million balance of the VN revenue increase came from
internal growth. Net income including discontinued operations, was
$4,239,444 or $0.80 per diluted share in the year ended December 31, 2006
and $7,868,468 or $1.51 per diluted share (including a gain on the sale of
the adult day care segment of $5,205,698 or $2.00 per diluted share) in
2005.
Results of operations for the years ended December 31, 2006 and 2005 are
set forth in the tables below:
December December
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $55,190,258 60.1% $39,732,561 52.9% $15,457,697 38.9%
Personal
Care 36,621,690 39.9% 35,354,834 47.1 1,266,856 3.6%
$91,811,948 100.0% $75,087,395 100.0% 16,724,553 22.3%
Operating
income
Visiting
Nurses $9,004,859 16.3% $5,372,837 13.5% $3,632,022 67.6%
Personal
Care 3,781,372 10.3% 3,278,887 9.3% 502,485 15.3%
12,786,231 13.9% 8,651,724 11.5% 4,134,507 47.8%
Unallocated
corporate
expenses 5,749,115 6.3% 4,449,661 5.9% 1,299,454 29.2%
7,037,116 7.7% 4,202,063 5.6% 2,835,053 67.5%
Litigation
settlement
gain - -% (267,426) -0.4% 267,426 -100.0%
Interest expense (54,440) -0.1% 112,608 0.1% (167,048) -148.3%
Pre-tax income 7,091,556 7.7% 4,356,881 5.8% 2,734,675 62.8%
Income taxes 2,818,030 3.1% 1,406,274 1.9% 1,411,756 100.4%
Net income from
continuing
operations $4,273,526 4.7% $2,950,607 3.9% $1,322,919 44.8%
Income (loss)
from
discontinued
operations,
net of tax (34,082) (149,325) 115,243 NM
Gain on sale of
ADC segment - 5,067,186 (5,067,186) NM
Net income $4,239,444 $7,868,468 $(3,629,024) NM
Diluted earnings
per share
Diluted
shares out-
standing (1) 5,326,997 5,218,658 108,339 2.1%
Continuing
operations $0.80 $0.57 $0.23 42.1%
Discontinued
operations - (0.03) 0.03 NM
Gain on sale
of ADC
segment - 0.97 (0.97) NM
$0.80 $1.51 $(0.71) NM
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing
Operations
-- As
Adjusted,
(excluding
litigation
settlement
gain and
one-time
income tax
item):
EBITDA $8,040,882 $5,391,292 $2,649,590 49.1%
Net income $4,273,526 $2,530,510 $1,743,016 68.9%
Diluted EPS $0.80 $0.48 $0.32 66.7%
Effective
tax rate 39.7% 38.1% 1.6%
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.
Net Income From Continuing Operations -- As Adjusted
Although "Net Income From Continuing Operations -- As Adjusted" is a
non- GAAP financial measure, management believes that the presentation of
net income as calculated using a normalized tax rate, which, for 2005,
excludes the nonrecurring tax benefits as described in Note 1, and
excluding the litigation settlement gain as described in Note 2, is a
useful adjunct to "Net Income From Continuing Operations -- As Reported"
under GAAP because it measures the Company's financial performance in a
consistent manner between the results for the fourth quarters and fiscal
years 2006 and 2005 and since these adjustments represent special or
non-recurring items. For these reasons, management believes that "Net
Income From Continuing Operations -- As Adjusted" is useful to investors.
Investors should not view "Net Income From Continuing Operations -- As
Adjusted" as an alternative to the GAAP measure of net income.
The following table sets forth a reconciliation of Net Income From
Continuing Operations -- As Reported to Net Income From Continuing Operations
-- As Adjusted:
Quarter Ended December 31, Year Ended December 31,
2006 2005 2006 2005
Net income from
continuing
operations - As
Reported $1,395,586 $1,272,396 $4,273,526 $2,950,607
2005 One-time
items:
Reduction in
state income
tax valuation
allowance
(Note 1) - (152,671) - (152,671)
Litigation
settlement
gain (Note 2) - (267,426) - (267,426)
Net income from
continuing
operations - As
Adjusted $1,395,586 $852,299 $4,273,526 $2,530,510
Continuing
Operations
Earnings Per
Diluted Share:
As Reported $0.26 $0.24 $0.80 $0.57
As Adjusted $0.26 $0.16 $0.80 $0.48
Note 1: The Company's income tax provision for 2005 included a one-time
reduction of $152,671 or $0.03 per diluted share resulting from
changes in state income tax valuation allowances relating to the
anticipated realization of net operating loss carry-forwards.
Note 2: In December 2005, the Tennessee Court of Appeals issued its
ruling in the Franklin Litigation, a long contested contract case
dating back to 1994. The court partially overturned the findings
of the trial court thus lowering the amount of damages previously
assessed to and recorded by the Company. The Company and the
plaintiff subsequently entered into a settlement agreement on
this case which resulted in a one-time net of tax gain of
$267,426 or $0.05 per diluted share being recorded in the
Company's results for the quarter and year ended December 31,
2005.
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 -- As Adjusted to EBITDA - As Adjusted:
Quarter Ended December 31, Year Ended December 31,
2006 2005 2006 2005
Net income from
continuing
operations - As
Adjusted $1,395,586 $852,299 $4,273,526 $2,530,510
Add back:
Interest
expense
(income) 39,780 (69,433) (54,440) 112,608
Income taxes 916,771 341,621 2,818,030 1,558,945
Depreciation
& amortization 209,230 207,911 1,003,766 1,189,229
Earnings from
continuing
operations Before
Interest, Income
Taxes, Depreciation
& Amortization
(EBITDA) - As
Adjusted $2,561,367 $1,332,398 $8,040,882 $5,391,292
Sale of ADC Operations
On September 30, 2005 the Company sold its ADC operating segment
resulting in an after tax gain of approximately $5.1 million or $0.97 per
diluted share reported in the year ended December 31, 2005.
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 and (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, including the objectives and expectations of management
for future operating results, the Company's ability to accelerate growth in
its home health operations, the Company's ability to achieve expected cost
savings net of incremental overhead post-acquisition, the ultimate outcome
of the Company's allocation of purchase price to amortizable intangible
assets, the Company's ability to generate positive cash flows, and the
Company's expectations with regard to market conditions, 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.
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
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 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 Securities and
Exchange Commission filing on Form 10-K for the year ended December 31,
2005, in particular information under the headings "Special Caution
Regarding Forward-Looking Statements" and "Risk Factors." The Company
disclaims any intent or obligation to update 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,
+1-502-891-1000, both for Almost Family, Inc.
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