LOUISVILLE, Ky., May 14 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three months
ended March 31, 2004. Basic earnings per share were $0.13 in 2004 versus
$0.10 in the same quarter of 2003 for an increase of 30%. The Company's VN
revenue increased nearly 10%, while overall Home Health Care revenue grew
5.4%. Adult Day Care revenue declined 6% primarily as a result of store
closings in late 2003.
The Company filed its Form 10-Q with the Securities and Exchange
Commission today. Please refer to that filing for additional information.
William B. Yarmuth, Chairman and CEO commented on the Company's results
for the quarter: "We are very pleased to report a 30% increase in earnings per
share as compared to the previous year. Our Visiting Nurse segment turned in
strong admissions, revenue and operating income growth. Focusing our attention
on the growth prospects of this segment continues to pay off. We have opened
two new Florida Medicare agencies in keeping with our plan to emphasize the
development of our VN segment. Additionally, the steps we took over the
course of 2003 to reduce general and administrative expenses throughout the
Company are now evident in our comparisons."
The Company also noted that the quarter ending March 31, typically
generates lower operating income than in the other quarters as the winter
weather tends to temporarily lower ADC in-center attendance. After removing
the effect of adult day care centers closed during 2003, all three of the
Company's reportable segments generated volume growth in the quarter.
Regarding the ADC segment results Yarmuth added: "The condition of the
state Medicaid programs continues to present challenges to the adult day care
segment. We are, however, beginning to see some encouraging signs of the
recognition that cuts over the past few years have been excessive. For
example, in a recent case a Federal court ordered Kentucky to reinstate
thousands of Medicaid beneficiaries who had been denied services since early
in 2003. Ultimately, we believe that Medicaid policy makers will see that
home and community based services like adult day care are effective tools in
lowering total long-term care spending." The Company added that it expects to
see improved earnings from the ADC segment in the June quarter.
Results of operations for the three months ended March 31, 2004 and 2003
are set forth in the table below:
Consolidated 2004 2003 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
Home Health
Care VN $8,341,410 37.9% $7,605,869 35.3% $735,541 9.7%
PC 8,101,892 36.9% 7,994,042 37.2% 107,850 1.3%
16,443,302 74.8% 15,599,911 72.5% 843,391 5.4%
Adult
Day Care 5,541,442 25.2% 5,917,734 27.5% (376,292) -6.4%
$21,984,744 100.0% $21,517,645 100.0% $467,099 2.2%
Operating Income
Home Health
Care VN $1,508,177 18.1% $1,269,732 16.7% $238,445 18.8%
PC 778,204 9.6% 1,024,863 12.8% (246,659) -24.1%
2,286,381 13.9% 2,294,595 14.7% (8,214) -0.4%
Adult
Day Care (134,189) -2.4% (127,844) -2.2% (6,345) 5.0%
2,152,192 9.8% 2,166,751 10.1% (14,559) -0.7%
Unallocated
corporate
expenses 1,511,497 6.9% 1,592,674 7.4% (81,177) -5.1%
Income
before
interest
and taxes 640,695 2.9% 574,077 2.7% 66,618 11.6%
Facility
gains
(losses) 6,420 0.0% 2,605 0.0% 3,815 146.4%
Interest
expense 144,843 0.7% 179,233 0.8% (34,390) -19.2%
Income
taxes 200,909 0.9% 158,980 0.7% 41,929 26.4%
Net income $301,363 1.4% $238,469 1.1% $62,894 26.4%
Earnings
per share:
Basic $0.13 $0.10 $0.03 30.0%
Diluted $0.12 $0.10 $0.02 20.0%
Weighted average
shares
outstanding
Basic 2,296,527 2,289,465 7,062 0.3%
Diluted 2,556,781 2,476,900 79,881 3.2%
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. In the
quarter ending March 31, 2004, the Company reorganized how it operates and
changed its reporting segments to more closely align with its business plan.
In the information above "VN" refers to the Company's Visiting Nurse segment,
"PC" refers to the Company's in-home Personal Care segment and "ADC" refers to
the Company's facility-based Adult Day Care 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, expectations for improved earnings from the ADC
segment, 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; 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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