EPS from Continuing Operations up 74% over 2006, Net Income up 97%
LOUISVILLE, Ky., May 8 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the quarter ended
March 31, 2007.
First Quarter 2007 Highlights
-- Net Income From Continuing Operations was $1,716,168 or $0.30 per
diluted share in 2007 as compared to $927,650 or $0.18 per diluted
share in 2006
-- Consolidated revenues increased approximately 56%
-- Operating income from continuing operations increased 111%
-- Net income from continuing operations increased 85%
-- The Company's VN segment revenues grew 94%
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $8.5 million to revenue for the
quarter
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We are extremely pleased to report our first quarter results in which
continuing EPS increased by 74%. This is the first full quarter including
the Mederi operations acquired in early December 2006. We've been very
happy with the commitment and loyalty demonstrated by all our employees and
our referral sources as we transition the largest acquisition, so far, in
the history of our Company. Our integration work is on track and the
acquisition has more than met our expectations for first quarter
performance. Perhaps more exciting than our acquisition results, our same
store revenues grew 27% from last year which we take as a reflection of the
market's affirmation of our high level of quality care."
The Company noted that the quarter's results also include the
operations of a Jacksonville, FL home health agency acquired in
mid-January. Additionally, in January 2007, the Company completed a 2-for-1
stock split. All share and per share information included in this release
has been adjusted to give effect to the split for all periods presented.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 6% between periods.
On April 27, 2007 the Federal Centers for Medicare and Medicaid
Services (CMS) published proposed regulations for Medicare reimbursement
for home health services for 2008. CMS is seeking public comment and will
consider those comments along with other information prior to publishing
final regulations later this year. The Company noted in its May 1, 2007
release on this topic that the proposed regulations are extensive and it
will take some time for its staff to analyze them and estimate, if enacted
in their current form, the impact these changes would have on its home
health agencies.
Quarterly Discussion
Net Income From Continuing Operations grew 85% to $1,716,168 or $0.30
per diluted share for the March 2007 quarter as compared to $927,650 or
$0.18 per diluted share in the March 2006 quarter. Revenues grew 56% to
$31.9 million in the March 2007 quarter from $20.5 million in the March
2006 quarter. Revenues in the Company's "Caretenders" Visiting Nurse (VN)
segment grew 94% over the same period last year.
VN Revenue Comparison
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 March 31, 2007 and 2006:
VN Revenue Comparison
by Market Type - # of
All VN Operations Mkts 2007 2006 Change Percent
Newly acquired markets 17 $6,530,609 $ - $6,530,609
Markets with in-market
acquisitions 7 4,208,806 2,193,862 2,014,945 91.8%
Acquisition related
markets 24 10,739,416 2,193,862 8,545,554
Markets with no
acquisition
impact 23 12,389,258 9,749,181 2,640,076 27.1%
47 $23,128,674 $11,943,043 $11,185,630 93.7%
VN revenues grew approximately $11.2 million between years of which 58%
came from newly acquired markets, 18% came in markets with in-market
acquisitions and 24% came from markets with no acquisition impact.
The following table provides a comparison of revenues related specifically
to the Mederi acquisition (excludes all markets not impacted by the Mederi
acquisition):
VN Markets Impacted # of
by Mederi Mkts 2007 2006 Change
Newly acquired
Mederi markets 14 $5,683,530 $ - $5,683,530
Mederi markets overlapping
Almost Family Markets 6 3,647,662 1,728,663 1,918,999
Mederi related markets 20 $9,331,192 $1,728,663 $7,602,529
Markets with acquisitions not related to Mederi generated $1,408,224 of
revenue in the quarter ended March 31, 2007 as compared to $465,199 in
2006.
As noted in our Form 10-K for the year ended December 31, 2006, 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, 2007 and 2006
are set forth in the tables below:
March March
2007 2006 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $23,128,674 72.4% $11,943,043 58.2% $11,185,630 93.7%
Personal
Care 8,820,641 27.6% 8,568,279 41.8% 252,362 2.9%
$31,949,314 100.0% $20,511,323 100.0% $11,437,992 55.8%
Operating income
Visiting
Nurses $4,488,865 19.4% $2,032,199 17.0% $2,456,666 120.9%
Personal
Care 497,953 5.6% 568,928 6.6% (70,974) -12.5%
4,986,819 15.6% 2,601,126 12.7% 2,385,692 91.7%
Unallocated
corporate
expenses 1,875,628 5.9% 1,127,934 5.5% 747,694 66.3%
Operating
Income 3,111,190 9.7% 1,473,192 7.2% 1,637,998 111.2%
Interest
expense/
(income) 255,708 0.8% (37,999) -0.2% 293,707 NM%
Pre-tax income 2,855,482 8.9% 1,511,191 7.4% 1,344,291 89.0%
Income taxes 1,139,313 3.6% 583,541 2.8% 555,772 95.2%
Net income
from continuing
operations $1,716,168 5.4% $927,650 4.5% $788,518 85.0%
Income (loss)
from
discontinued
operations,
net of tax (49,876) (81,987) 32,111 NM
Net income $1,666,293 $845,663 $820,630 97.0%
Diluted earnings
per share
Diluted shares
outstanding
(1) 5,639,243 5,299,298 339,945 6.4%
Continuing
operations $ 0.30 $ 0.18 $ 0.13 73.9%
Discontinued
operations (0.01) (0.02) - NM
$ 0.30 $ 0.16 $ 0.14 85.2%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $3,323,156 $1,750,576 $1,572,580 89.8%
Effective
tax rate 39.9% 38.6% 1.3%
Net income including discontinued operations, was $1,666,292 or $0.30
per diluted share in the quarter ended March 31, 2007 and $845,663 or $0.16
per diluted share in 2006. During the quarter ended March 31, 2007, the
Company closed its personal care operations in Cincinnati OH and Ft. Myers
FL and reclassified the results of those operations to discontinued
operations for all periods presented. Revenues from discontinued operations
were approximately $164,000 and $283,000 in the quarters ended March 31,
2007 and 2006, respectively.
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 March 31,
2007 2006
Net income from continuing operations $1,716,168 $927,650
Add back:
Interest expense (income) 255,708 (37,999)
Income taxes 1,139,313 583,541
Depreciation & amortization 211,967 277,384
Earnings from continuing operations
Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA) $3,323,156 $1,750,576
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).
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 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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http://www.almost-family.com/
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CONTACT:
William Yarmuth or Steve Guenthner of Almost
Family, Inc., +1-502-891-1000
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