LOUISVILLE, Ky., March 26 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the year ended
December 31, 2003. Additionally, the Company announced the extension of its
senior credit facility through June 2006 and shared with investors a view on
the Company's business plan.
The Company filed its Form 10-K with the Securities and Exchange
Commission today. Please refer to that filing for additional information. In
the information that follows "VN" refers to the Company's Visiting Nurse
segment and "ADHS" refers to the Company's Adult Day Health Services segment.
Operating Results for the Year
Net income for the year ended December 31, 2003 was $2,120,197 or $0.84
per diluted share compared to $1,344,913 or $0.49 per diluted share in 2002.
Net income for the year ended December 31, 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.
Net income from continuing operations was $1,266,051 or $0.50 per diluted
share in 2003 as compared to $1,344,913 or $0.49 per diluted share in 2002 in
spite of a significant rate reduction from Medicare and significant increases
in insurance costs in 2003.
Results of operations for the years ended December 31, 2003 and 2002 are
set forth in the tables below:
Consolidated 2003 2002 Change
Amount % Rev Amount % Rev Amount %
Net revenues VN $29,375,519 33.8% $28,799,296 33.6% $576,223 2.0%
ADHS 57,523,646 66.2% 56,970,241 66.4% 553,405 1.0%
$86,899,165 100.0% $85,769,537 100.0% $1,129,628 1.3%
Operating
income VN $3,215,975 11.0% $3,828,551 13.3% $(612,576) -16.0%
ADHS 1,758,149 3.1% 2,227,442 3.9% (469,293) -21.1%
4,974,124 5.7% 6,055,993 7.1% (1,081,869) -17.9%
Unallocated
corporate
expenses 2,272,593 2.6% 3,109,675 3.6% (837,082) -26.9%
2,701,531 3.1% 2,946,318 3.4% (244,787) -8.3%
Facility losses 123,785 0.1% - NM 123,785 NM
Interest expense 661,019 0.8% 813,555 1.0% (152,536) -18.7%
Income from
continuing
operations before
income taxes 1,916,727 2.2% 2,132,763 2.5% (216,036) -10.1%
Provision for
income taxes 650,676 0.7% 787,850 0.9% (137,174) -17.4%
Income from
continuing
operations 1,266,051 1.5% 1,344,913 1.6% (78,862) -5.9%
Income from
discontinued
operations (854,146) -1.0% - NM (854,146) NM
Net income $2,120,197 2.4% $1,344,913 1.5% $775,284 57.6%
Consolidated 2003 2002 Change
Amount Amount Amount %
Earnings per share from
continuing operations:
Basic $0.55 $0.56 $(0.01) -1.9%
Diluted $0.50 $0.49 $0.01 2.0%
Earnings per share from
discontinued operations:
Basic $0.37 $- $0.37 NM
Diluted $0.34 $- $0.34 NM
Total earnings per share:
Basic $0.92 $0.56 $0.36 64.3%
Diluted $0.84 $0.49 $0.35 71.4%
Weighted average shares
Outstanding:
Basic 2,294,771 2,416,224 (121,453) -5.0%
Diluted 2,538,871 2,719,809 (180,938) -6.7%
William B. Yarmuth, Chairman and CEO commented on the Company's operating
results: "Despite a difficult reimbursement environment, our performance was
strong enough to enable us to overcome both Medicare rate cuts that reduced
2003 revenue and pre-tax income by over $1 million between years and some very
significant cutbacks by the Kentucky Medicaid program. On the positive side,
we were able to grow same-store admissions in our Visiting Nurse segment by
nearly 7%, and the Medlink acquisition in July 2002 was a significant
contributor between years to our 2003 results. Additionally, we are
encouraged that Kentucky's new governor recently announced a loosening of the
state's Medicaid eligibility requirements, in effect reversing most of the
restrictions put in place last year by the previous administration." The
Company noted that it is too early to predict the financial impact, if any, of
the relaxation of eligibility standards in Kentucky.
The Company also announced that its senior lender has extended the terms
of its credit facility through June 2006.
Operating Results for the Quarter
Net income for the quarter ended December 31, 2003 was $1,108,722 or $0.43
per diluted share compared to $376,693 or $0.15 per diluted share in the
fourth quarter of 2002. Net income for the quarter ended December 31, 2003
included a one-time income tax credit of $854,146 or $0.33 per diluted share
resulting from the reversal of income tax reserves no longer required.
Continuing operations earnings per diluted share were $0.10 compared to
$0.15 in the same period last year. Earnings for the quarter ended
December 31, 2003 included one-time facility losses totaling $112,076 or $0.03
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
carryforwards.
Results of operations for the three months ended December 31, 2003 and
2002 are set forth in the table that follows.
Consolidated 2003 2002 Change
Amount % Rev Amount % Rev Amount %
Net revenues VN $7,512,646 34.3% $7,528,877 33.5% $(16,231) -0.2%
ADHS 14,382,555 65.7% 14,937,886 66.5% (555,331) -3.7%
$21,895,201 100.0% $22,466,763 100.0% $(571,562) -2.5%
Operating
Income VN $899,150 12.0% $1,052,518 14.0% $(153,368) -14.6%
ADHS 192,042 1.3% 261,162 1.7% (69,120) -26.5%
1,091,192 5.0% 1,313,680 5.8% (222,488) -16.9%
Unallocated
corporate
expenses 586,198 2.7% 593,933 2.6% (7,735) -1.3%
504,994 2.3% 719,748 3.2% (214,754) -29.8%
Interest expense 161,982 0.7% 201,492 0.9% (39,510) -19.6%
Facility losses 112,076 0.5% - 0.0% 112,076 NM
Income from
continuing
operations before
income taxes 230,936 1.1% 518,255 2.3% (287,319) -55.4%
Provision for
income taxes (23,640) 0.1% 141,562 0.6% (165,202) -116.7%
Income taxes from
continuing
operations 254,576 1.2% 376,693 1.7% (122,117) -32.4%
Income from
discontinued
operations (854,146) -3.9% - NM (854,146) NM
Net income $1,108,722 5.1% $376,693 1.7% $732,029 194.3%
Consolidated 2003 2002 Change
Amount Amount Amount %
Earnings per share from
continuing operations:
Basic $0.11 $0.17 $(0.06) -35.3%
Diluted $0.10 $0.15 $(0.05) -33.3%
Earnings per share from
discontinued operations:
Basic $0.37 $ - $0.37 100.0%
Diluted $0.33 $ - $0.33 100.0%
Total earnings per share:
Basic $0.48 $0.17 $0.31 182.4%
Diluted $0.43 $0.15 $0.28 186.7%
Weighted average shares
outstanding:
Basic 2,296,527 2,274,447 22,080 1.0%
Diluted 2,565,218 2,503,214 62,004 2.5%
The Company's Business Plan
The Company's just-filed 2003 Form 10-K includes a description of its
business plan which calls for an increase in emphasis on the Company's
Visiting Nurse segment through same store sales growth and acquisitions of
other quality providers of Medicare-based home nursing services. Based on its
business plan, the Company expects its Visiting Nurse revenues to grow from
under one-third of total revenues to about one-half of total revenues sometime
in the next three to five years.
Yarmuth commented on the business plan as follows: "We believe that our
ability to adapt our operations to meet changes in reimbursement as they occur
has been an important key to our historical success, and that diversification
of payment sources will continue to be important to our success in the future.
Therefore, while we plan to increase our focus on our Visiting Nurse
operations, we believe that our Adult Day Health Services operations will
continue to play an important role in generating cash flow and enable us to
maintain a prudent level of diversification. Despite recent strain on the
finances of state Medicaid programs, there is a substantial population of
adults who require healthcare services. We remain convinced that our ADHS
programs represent the most desirable and cost-effective solution available to
this large and growing constituency."
Readers are encouraged to read the Company's 2003 Form 10-K for a more
complete discussion of the Company's business plan.
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 operations in Alabama, Connecticut, Florida,
Indiana, Kentucky, Maryland, Massachusetts, and Ohio.
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 same store sales
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, 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; 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 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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