First Quarter 2006 EPS from Continuing Operations up 61% over 2005
LOUISVILLE, Ky., May 8 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the quarter ending
March 31, 2006.
First Quarter Financial Highlights
- Net Income From Continuing Operations -- As Reported was $911,740 or
$0.34 per diluted share in the quarter ended March 31, 2006 as compared
to $559,062 or $0.21 per diluted share in the same quarter of 2005.
- Consolidated revenues increased approximately 14% over the same quarter
last year.
- The Company's VN segment revenues grew 25% over the same quarter last
year.
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We are very pleased with our operating results for the first quarter,
continuing the strong performance we exhibited in 2005. VN revenue
continued to grow at a 25% rate including acquisitions and startups, and
grew 8% on a same store basis. Our strong EPS growth continues to reflect
the successful execution of our strategic plan. Consistent with that plan,
our VN segment is now generating 57% of consolidated revenues and our
operating margin has increased to 7.0% in 2006 as compared to 5.4% in 2005.
"We remain optimistic about the prospects for our future growth and
development. Last month we completed and announced the acquisition of a
$1.7 million revenue Ocala FL based home health agency marking our fifth
transaction in about a year and half. Our development efforts continue to
provide us with a very nice supply of VN acquisition candidates at good
prices and we hope to complete additional transactions in 2006."
Quarterly Discussion
Net Income From Continuing Operations - As Reported grew 63% to
$911,740 or $0.34 per diluted share for the March 2006 quarter as compared
to $559,062 or $0.21 per diluted share in the March 2005 quarter. Revenues
grew 14% to $20.8 million in the March 2006 quarter from $18.3 million in
the March 2005 quarter.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 25% over the same period last year. Acquired operations contributed
approximately $1.5 million of that revenue growth while also contributing
$0.08 per diluted share to operating results in the March 2006 quarter. The
balance of the Company's revenue and earnings increase came from internal
growth.
Net income including discontinued operations, was $845,662 or $0.32 per
diluted share in the quarter ended March 31, 2006 and $383,934 or $0.15 per
diluted share in 2005. Discontinued operations include the Company's
Evansville IN operations which were closed in the March 2006 quarter.
As noted in our Form 10-K for the year ended December 31, 2005, our
Visiting Nurse segment operations located in Florida normally experience
higher admissions during the March quarter than in the other quarters due
to seasonal population fluctuations.
Results of operations for the quarters ended March 31, 2006 and 2005
are set forth in the tables below:
March March
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $11,943,043 57.4% $9,543,132 52.1% $2,399,911 25.1%
Personal Care 8,850,815 42.6% 8,756,432 47.9% 94,383 1.1%
$20,793,858 100.0% $18,299,564 100.0% $2,494,294 13.6%
Operating income
Visiting
Nurses $2,029,679 9.8% $1,686,071 9.2% $343,608 20.4%
Personal Care 546,434 2.6% 624,763 3.4% (78,329) -12.5%
2,576,113 12.4% 2,310,834 12.6% 265,279 11.5%
Unallocated
corporate
expenses 1,129,194 5.4% 1,325,642 7.2% (196,448) -14.8%
Operating
income 1,446,919 7.0% 985,192 5.4% 461,727 46.9%
Interest
expense/(income) (37,999) -0.2% 55,236 0.3% (93,235) -168.8%
Pre-tax income 1,484,918 7.1% 929,956 5.1% 554,962 59.7%
Income taxes 573,178 2.8% 370,894 2.0% 202,284 54.5%
Net income from
continuing
Operations $911,740 4.4% $559,062 3.1% $352,678 63.1%
Income (loss)
from discontinued
operations, net
of tax (66,078) (175,128) 109,050 -62.3%
Net income $845,662 $383,934 $461,728 120.3%
Diluted earnings
per share
Diluted shares
outstanding 2,649,649 2,622,067 27,582 1.1%
Continuing
operations $0.34 $0.21 $0.13 61.9%
Discontinued
operations (0.02) (0.06) 0.04 NM
$ 0.32 $0.15 $0.17 NM
Continuing Operations
EBITDA $1,725,324 $1,307,621 $417,703 31.9%
EBITDA margin
(% of revenues) 8.3% 7.1% 1.2%
Effective tax rate 38.6% 39.9% -1.3%
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 -- As Reported to EBITDA:
Quarter Ended March 31,
2006 2005
Net income from continuing operations
- As Adjusted $911,740 $559,062
Add back:
Interest expense (income) (37,999) 55,236
Income taxes 573,178 370,894
Depreciation & amortization 278,405 322,429
Earnings from continuing operations
Before Interest, Income Taxes,
Depreciation & Amortization
(EBITDA) - As Adjusted $1,725,324 $1,307,621
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,
Indiana and Alabama (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 accelerate growth in
its home health operations, 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 increase the efficiency and
effectiveness of its sales and marketing efforts, 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: 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; 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 "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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CONTACT:
William Yarmuth or Steve Guenthner of Almost
Family, Inc., +1-502-891-1000
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