LOUISVILLE, Ky., March 22 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the year ended
December 31, 2004. In the information that follows "VN" refers to the
Company's Visiting Nurse segment, "PC" refers to the Company's Personal Care
segment and "ADC" refers to the Company's Adult Day Care segment.
Results for the Year
AFAM's operating results for the year include the following highlights:
- Net Income -- As Reported from continuing operations for the year ended
December 31, 2004 was $1,529,897 or $0.60 per diluted share compared to
$1,424,724 or $0.56 per diluted share in 2003
- Net Income -- As Adjusted from continuing operations per diluted share
increased by 14% to $0.60 in 2004 from $0.52 in 2003 (See "Non-GAAP
Financial Measures" below for an explanation of "Net Income - As
Adjusted" from continuing operations)
- Cash flow from operating activities improved 17% to $6.9 million in
2004 from $5.9 million in 2003
- Total debt was reduced by $6.8 million or 56% since December 31, 2003
reducing Company's debt to equity ratio to 0.4:1 in 2004 from 1:1 in
2003
- Revenues in the Company's VN segment grew approximately 10% in 2004
versus 2003 primarily as a result of admissions growth.
Net income from continuing operations for the year ended December 31, 2004
also included operating losses from new VN agencies started late in 2004 of
($111,988) or ($0.04) per diluted share.
The tax provision from continuing operations for 2003 included a credit of
$116,000 or $0.05 per diluted share related to the elimination of a valuation
allowance on certain state tax net operating loss carry-forwards. As a result
the effective tax rate for 2003 was 34.6% as compared to 39.2% in 2004.
Management believes that an annual effective tax rate of 39.2% is more
representative of the Company's normalized rate for reporting purposes
exclusive of the aforementioned tax credits and, as such, the Company has
incorporated this normalized tax rate in its presentation of "Net Income - As
Adjusted."
Operating business units sold or closed during 2004 have been reclassified
to discontinued operations for all periods presented. Net income (loss) from
discontinued operations for the year ended December 31, 2004 was a loss of
($338,641) or ($0.13) per diluted share compared to income of $695,473 or
$0.27 per diluted share in 2003. Net income from discontinued operations in
2003 included a one-time income tax credit of $854,146 or $0.34 per diluted
share resulting from the reversal of income tax reserves no longer required.
Excluding that tax credit, net income (loss) from discontinued operations in
2003 was a loss of ($158,673) or ($0.06) per diluted share.
Including discontinued operations and 2003 income tax accounting credits,
consolidated net income was $1,191,256 or $0.46 per diluted share in 2004 as
compared to $2,120,197 or $0.84 per diluted share in 2003.
Results of operations for the years ended December 31, 2004 and 2003 are
set forth in the tables below:
Almost Family, Inc.
Year Ended December 31, 2004
Consolidated
December December
2004 2003
Amount % Rev Amount % Rev
Net Revenues
Home Health Care
Visiting Nurse $32,227,614 37.1% $29,375,519 35.3%
Personal Care 33,542,824 38.6% 32,266,965 38.8%
65,770,438 75.7% 61,642,484 74.0%
Adult Day Care 21,056,742 24.3% 21,617,259 26.0%
$86,827,180 100.0% $83,259,743 100.0%
Operating Income
Home Health Care
Visiting Nurse $4,671,221 14.5% $4,281,189 14.6%
Personal Care 3,337,748 10.0% 3,999,847 12.4%
8,008,969 12.2% 8,281,036 13.4%
Adult Day Care 1,373,646 6.5% 1,270,365 5.9%
9,382,615 10.8% 9,551,401 11.5%
Unallocated Corp Expenses 6,376,496 7.3% 6,610,401 7.9%
EBIT 3,006,119 3.5% 2,941,000 3.5%
Facility gains (losses) (43,363) 0.0% (104,489) -0.1%
Interest Expense 447,038 0.5% 658,867 0.8%
Pre-tax Income 2,515,718 2.9% 2,177,644 2.6%
Income Taxes 985,821 1.1% 752,920 0.9%
Net Income -- As Reported
from continuing operations $1,529,897 1.8% $1,424,724 1.7%
Income (loss) from discontinued
operations, net of tax $(338,641) $695,473
Net Income $1,191,256 $2,120,197
Diluted Earnings Per Share:
Diluted Shares Outstanding 2,567,468 2,538,871
Continuing Operations $0.60 $0.56
Discontinued Operations $(0.13) $0.27
$0.46 $0.84
Continuing Operations:
EBITDA $5,422,219 $5,248,397
Effective Tax Rate 39.2% 34.6%
Diluted EPS $0.60 $0.56
"Net Income -- As Adjusted" $1,529,897 $1,324,302
Diluted EPS -- As Adjusted $0.60 $0.52
Almost Family, Inc.
Year Ended December 31, 2004
Consolidated
Change
Amount %
Net Revenues
Home Health Care
Visiting Nurse $2,852,095 9.7%
Personal Care 1,275,859 4.0%
4,127,954 6.7%
Adult Day Care (560,517) -2.6%
$3,567,437 4.3%
Operating Income
Home Health Care
Visiting Nurse $390,032 9.1%
Personal Care (662,099) -16.6%
(272,067) -3.3%
Adult Day Care 103,281 8.1%
(168,786) -1.8%
Unallocated Corp Expenses (233,905) -3.5%
EBIT 65,119 2.2%
Facility gains (losses) 61,126 -58.5%
Interest Expense (211,829) -32.2%
Pre-tax Income 338,074 15.5%
Income Taxes 232,901 30.9%
Net Income -- As Reported
from Continuing Operations $105,173 7.4%
Income (loss) from discontinued
operations, net of tax $(1,034,114) NM
Net Income $(928,941) NM
Diluted Earnings Per Share:
Diluted Shares Outstanding 28,597 1.1%
Continuing Operations $0.03 6.2%
Discontinued Operations $(0.41) NM
$(0.37) NM
Continuing Operations:
EBITDA 173,822 3.3%
Effective Tax Rate 4.6%
Diluted EPS $0.03 6.2%
"Net Income -- As Adjusted" 205,595 15.5%
Diluted EPS -- As Adjusted $0.07 14.2%
Continuing operations 2004 EBITDA included $185,023 of operating losses
related to VN operations started late in 2004.
William B. Yarmuth, Chairman and CEO commented on the Company's operating
results: "We are pleased to report a 15% increase in our pre-tax income from
continuing operations, confirming the choices we have made in the pursuit of
our strategy. Our free cash flow has enabled us to repay about $7 million or
56% of our outstanding debt. We believe our strong balance sheet position
will take us a long way towards our objectives." Yarmuth added: "In addition
to our strong earnings and cash flow performance, since our last annual
report, we have generated 10% VN revenue growth and completed 2 home health
acquisitions. Over the course of the next 2-3 years we will strive to
continue our VN revenue growth and will seek additional accretive acquisitions
of home health providers."
Results for the Quarter
AFAM's operating results for the three-months ended December 31, 2004
include the following highlights:
- Net Income -- As Reported from continuing operations for the three-
months ended December 31, 2004 was $368,958 or $0.14 per diluted share
compared to $337,654 or $0.13 per diluted share in 2003
- Net Income -- As Adjusted from continuing operations per diluted share
increased by 52% or $0.05 to $0.13 in 2004 from $0.08 in 2003 (See Non-
GAAP Financial Measures for an explanation of "Net Income - As
Adjusted" from continuing operations)
Net income from continuing operations for the three-months ended
December 31, 2004 also included operating losses from new VN agencies started
late in 2004 of ($104,037) or ($0.04) per diluted share.
The tax provision from continuing operations for the three months ended
December 2003 included a credit of $116,000 or $0.05 per diluted share related
to the elimination of a valuation allowance on certain state tax net operating
loss carry-forwards. As a result the effective tax rate for 2003 was 4.4% as
compared to 32.0% in 2004. As explained in the above discussion of results
for the year, management believes that an annual effective tax rate of 39.2%
is more representative of the Company's normalized rate for reporting purposes
exclusive of the aforementioned tax credits and, as such, the Company has
incorporated this normalized tax rate in its presentation of "Net Income - As
Adjusted."
Net income (loss) from discontinued operations for the three-months ended
December 31, 2004 was a loss of ($278,378) or ($0.11) per diluted share
compared to income of $771,068 or $0.30 per diluted share in 2003. Net income
from discontinued operations in 2003 included a one-time income tax credit of
$854,146 or $0.34 per diluted share resulting from the reversal of income tax
reserves no longer required. Excluding that tax credit, net income (loss)
from discontinued operations in 2003 was a loss of ($83,078) or ($0.03) per
diluted share.
Including discontinued operations and 2003 income tax accounting credits,
consolidated net income for the three-months ended December was $90,580 or
$0.03 per diluted share in 2004 as compared to $1,108,722 or $0.43 per diluted
share in 2003.
Results of operations for the three months ended December 31, 2004 and
2003 are set forth in the tables below:
Almost Family, Inc.
Quarter Ended December 31, 2004
Consolidated
December December
2004 2003
Amount % Rev Amount % Rev
Net Revenues
Home Health Care
Visiting Nurse $8,222,216 37.1% $7,512,646 35.7%
Personal Care 8,672,972 39.1% 8,228,797 39.1%
16,895,188 76.2% 15,741,443 74.8%
Adult Day Care 5,283,608 23.8% 5,309,850 25.2%
$22,178,796 100.0% $21,051,293 100.0%
Operating Income
Home Health Care
Visiting Nurse $987,034 12.0% $1,153,915 15.4%
Personal Care 907,892 10.5% 1,109,327 13.5%
1,894,926 11.2% 2,263,242 14.4%
Adult Day Care 393,538 7.4% 150,916 2.8%
2,288,464 10.3% 2,414,158 11.5%
Unallocated Corp Expenses 1,632,612 7.4% 1,806,336 8.6%
EBIT 655,852 3.0% 607,822 2.9%
Facility gains (losses) (47,217) -0.2% (92,710) -0.4%
Interest Expense 65,851 0.3% 161,982 0.8%
Pre-tax Income 542,784 2.4% 353,130 1.7%
Income Taxes 173,826 0.8% 15,476 0.1%
Net Income -- As Reported
from Continuing Operations $368,958 1.7% $337,654 1.6%
Income (loss) from discontinued
operations, net
of tax $(278,378) $771,068
Net Income $90,580 $1,108,722
Diluted Earnings Per Share:
Diluted Shares Outstanding 2,592,541 2,565,218
Continuing Operations $0.14 $0.13
Discontinued Operations $(0.11) $0.30
$0.03 $0.43
Continuing Operations:
EBITDA $1,221,692 $1,208,245
Effective Tax Rate 32.0% 4.4%
Diluted EPS $0.14 $0.13
"Net Income -- As Adjusted" $330,086 $214,751
Diluted EPS -- As Adjusted $0.13 $0.08
Almost Family, Inc.
Quarter Ended December 31, 2004
Consolidated
Change
Amount %
Net Revenues
Home Health Care
Visiting Nurse $709,570 9.4%
Personal Care 444,175 5.4%
1,153,745 7.3%
Adult Day Care (26,242) -0.5%
$1,127,503 5.4%
Operating Income
Home Health Care
Visiting Nurse $(166,881) -14.5%
Personal Care (201,435) -18.2%
(368,316) -16.3%
Adult Day Care 242,622 160.8%
(125,694) -5.2%
Unallocated Corp Expenses (173,724) -9.6%
EBIT 48,030 7.9%
Facility gains (losses) 45,493 -49.1%
Interest Expense (96,131) -59.3%
Pre-tax Income 189,654 53.7%
Income Taxes 158,350 1023.2%
Net Income -- As Reported
from Continuing Operations $31,304 9.3%
Income (loss) from discontinued
operations, net
of tax $(1,049,446) NM
Net Income $(1,018,142) NM
Diluted Earnings Per Share:
Diluted Shares Outstanding 27,323 1.1%
Continuing Operations $0.01 8.1%
Discontinued Operations $(0.41) NM
$(0.40) NM
Continuing Operations:
EBITDA 13,447 1.1%
Effective Tax Rate 27.6%
Diluted EPS $0.01 8.1%
"Net Income -- As Adjusted" 115,335 53.7%
Diluted EPS -- As Adjusted $0.04 52.1%
Continuing operations 2004 EBITDA included $171,948 of operating losses
related to VN operations started late in 2004.
Non-GAAP Financial Measures
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 and the items excluded from EBITDA are significant
components in understanding and assessing financial performance. 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.
EBITDA is not a measurement of financial performance or liquidity under
generally accepted accounting principles. It should not be considered in
isolation or as a substitute for net income, operating income, cash flows from
operating, investing or financial 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. The following table sets
forth a reconciliation of net income to EBITDA:
Almost Family, Inc.
Year Ended December 31, 2004
EBITDA Reconciliation
Quarter Ended December 31, Year Ended December 31,
2004 2003 2004 2003
Net Income from
continuing operations $368,958 $337,654 $1,529,897 $1,424,724
Add back:
Interest Expense 65,851 161,982 447,038 658,867
Income Taxes 173,826 15,476 985,821 752,920
Depreciation &
Amortization 613,057 693,133 2,459,463 2,411,886
Earnings Before Interest,
Income Taxes,
Depreciation and
Amortization (EBITDA)
from continuing
operations $1,221,692 $1,208,245 $5,422,219 $5,248,397
"Net Income - As Adjusted" from continuing operations:
Although "Net Income - As Adjusted" is a non-GAAP financial measure,
management believes that the presentation of net income as calculated using
normalized tax rates for each period is a useful adjunct to "Net Income - As
Reported" under GAAP because it measures the Company's performance in a
consistent manner between the results for the fourth quarters and fiscal years
2004 and 2003. Furthermore, due to the lower effective tax rates reflected in
the reported results for the fourth quarter and fiscal year of 2003, the
presentation of "Net Income - As Adjusted" incorporates an effective tax rate
which is more representative of the Company's normalized annual tax rate for
reporting purposes. Investors should not view "Net Income - As Adjusted" as
an alternative to the GAAP measure of Net Income.
The tax provision from continuing operations for the year and quarter
ended December 31, 2003 included a credit of $116,000 or $0.05 per diluted
share related to the elimination of a valuation allowance on certain state tax
net operating loss carry-forwards. As a result, the effective tax rate for
the year ended 2003 was 34.6% as compared to 39.2% in 2004, and for the
quarter ended December 31, 2003 was 4.4% as compared to 32% for the quarter
ended December 31, 2004. As explained in the above discussion of results for
the year, management believes that an annual effective tax rate of 39.2% is
more representative of the Company's normalized rate for reporting purposes
exclusive of the aforementioned tax credits and, as such, the Company has
incorporated this normalized tax rate in its presentation of "Net Income - As
Adjusted."
The Company's 2003 Form 10-K includes a description of its business plan
which calls for an increase in emphasis on the Visiting Nurse segment.
Almost Family, Inc.(TM) and subsidiaries (collectively "Almost Family") is
a leading regional provider of home health nursing services and adult day
health services. The Company has service locations in Florida, Kentucky,
Ohio, Maryland, Connecticut, Massachusetts, Alabama and Indiana (in order of
revenue significance).
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 generate VN revenue growth,
the Company's ability to acquire visiting nurse agencies at prices it is
willing to pay, the Company's ability to attract investment of additional
capital, 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 could
include: 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;
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, 2003, 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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Related links:
http://www.almost-family.com
Company News On-Call:
http://www.prnewswire.com/comp/784275.html
CONTACT:
William Yarmuth, or Steve Guenthner of Almost
Family, Inc., +1-502-891-1000
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