LOUISVILLE, Ky., July 30 /PRNewswire/ --
Almost Family, Inc. (Nasdaq: AFAM) announced earnings for the three month
period ended June 30, 2001.
Consolidated Results
The Company's reported consolidated net income of $853,695 or $0.34 per
share for the three months ended June 30, 2001. The Company reported
consolidated net income for the corresponding period of the preceding year of
$290,714 or $0.09 per share. Consolidated net income for the last four
reported quarters was $2,774,828 or $0.95 per share. The Company noted that
these four-quarter results include only three quarters of operating profits in
its visiting nurse (VN) division under the Medicare Prospective Payment System
or PPS.
In March 2001, the Company repurchased 23% of its then outstanding shares
for $5 million. Due to increased interest on related borrowings, this
transaction lowered net income by about $64,000 in the June 2001 quarter but
lowered shares outstanding by about 750,000. As a result, this share
repurchase was accretive to consolidated EPS for the quarter by $0.06 or 21%.
William B. Yarmuth, AFAM's CEO commented on the results: "We are delighted
with the outstanding overall financial performance of the business.
Annualizing the last three quarters of combined operating results since PPS
went into effect shows over $7.5 million of earnings before interest, taxes,
depreciation and amortization or EBITDA. With our current total debt of about
$11 million and a current stock price under $9 per share, our Company is being
valued at approximately 4 times EBITDA. In our opinion, this valuation
relative to our financial performance warrants a continuation of our stock
buy-back program. Although we have accumulated a relatively small number of
shares in open market purchases due to limitations under securities laws, the
valuation of our stock has moved from under $4 to over $8 since we put this
program in effect. We will continue the program until such time as we feel
the valuation of the stock has reached an appropriate level."
ADHS operations
For the three months ended June 30, 2001, the Company reported net income
from Adult Day Health Services (ADHS) continuing operations of $353,985 or
$0.14 per share on revenues of $12,555,117. In the same quarter last year,
the Company reported net income from continuing operations of $290,714 or
$0.09 per share on revenues of $11,776,441. The Company attributed the
increase in earnings primarily to improved reimbursement in its adult day care
facilities.
ADHS EBITDA was $952,283 for the three months ended June 30, 2001 versus
$824,540 in the same period last year for a year-over-year increase of 15%.
Notably, the June 2001 quarter EBITDA was also 25% higher than the $754,629 of
EBITDA generated in the three months ended March 31, 2001.
Yarmuth commented on the ADHS operating results: "We are pleased to report
significant EBITDA growth in ADHS. Although the rate of growth in days sold
in ADHS has slowed, a significant part of this resulted from the closure of
our Stamford, CT and Birmingham, AL day centers last fiscal year. These
centers were not profitable, and we elected to close them last year to improve
the overall financial performance of the Company."
Yarmuth continued: "The cornerstone of our ADHS development plan is to
continue our work with reimbursement sources, primarily state Medicaid
programs, to develop improved reimbursement rates and increases in the number
of participants approved to participate in our programs. We currently have
initiatives underway in Florida, Ohio, Connecticut, Kentucky and Maryland to
help the regulators better understand how our services can help them do a
better job caring for the frail elderly, while at the same time controlling
state expenditures for long-term health care. We also have program
initiatives underway to develop specialty programs and increase utilization of
adult day health services among specific categories of patients."
Visiting Nurse Operations
In addition to its continuing operations results, the Company reported net
income from its visiting nurse (VN) division of $499,710 or $0.20 per share
for the quarter. The June quarter was the division's third quarter of
operations under the new Medicare Prospective Payment System (PPS), which went
into effect on October 1, 2000. Although discontinued operations accounting
treatment is being used for this segment, the Company will report these
earnings in its income statement for the quarter and in future quarters.
Under these accounting rules, losses incurred in the comparable quarter of
last year (($189,387) or ($0.06) per share) were previously provided for in a
one-time charge recorded in the Company's fiscal 2000 year. Total net income
from VN for the three quarters ended June 30, 2001 (since PPS went into effect
last fiscal year) was $1,109,695 or $0.39 per share.
"We are extremely pleased with the progress our VN management team has
made in adapting our operations and our mindset to the PPS environment. The
visiting nurse world has certainly changed as a result of PPS, making this a
healthy and nicely profitable business," said Yarmuth. "While making the
significant operational changes necessary to adapt to PPS, our VN team was
also able to generate 4% more Medicare admissions in the June quarter this
year than in the same quarter of last year. We expect the rate of growth in
admissions to be even higher in the next couple of quarters. Finally, we are
cautiously optimistic that the improvements in reimbursement recently
announced by the Centers for Medicare and Medicaid Services (CMS, formerly
HCFA) are a sign of a continuing positive reimbursement trend."
The Company is continuing to evaluate strategic alternatives for its VN
business unit pursuant to previously adopted plans, while noting that the
outcome is somewhat dependent on the 15% Medicare rate reduction scheduled for
October 2002. The elimination of this rate cut is currently being considered
by both houses of Congress and some resolution on this matter may be
forthcoming with the new Federal budget. Meanwhile, HCFA recently released
new reimbursement rates expected to go into effect on October 1, 2001. For
the Company's eight agencies, these new rates will, on average, be
approximately 4.6% higher than the current rates.
Results of operations for the three months ended June 30, 2001 and 2000
are set forth in the table below:
Three Months Ended
June 30, Change
2001 2000 Amount %
Continuing Operations
Net Revenues $ 12,555,117 $ 11,776,441 $ 778,676 6.6%
Pre-tax Center
Contribution 2,209,005 2,110,188 98,817 4.7%
Net Income from Continuing
Operations 353,985 290,714 63,271 21.8%
Discontinued Operations
Results of operations 499,710 -- 499,710
Estimated Loss on Disposal -- -- --
Net income $853,695 $ 290,714 $ 562,981 193.7%
Earnings per share - Basic
Continuing operations $0.14 $ 0.09 $ 0.05 51.4%
Discontinued operations
Results of operations 0.20 -- 0.20
Estimated loss on disposal -- -- --
Total Earnings per share $0.34 $ 0.09 $ 0.25 265.1%
Earnings per share -
Diluted $0.30 $ 0.09 $ 0.20 217.2%
EBITDA (A)
ADHS $952,283 $824,540 $127,743 15.5%
VN 1,150,426 -- 1,150,426
$ 2,102,709 $824,540 $ 1,278,169 155.0%
(A) earnings before interest, taxes, depreciation and amortization on
reported basis
Total Days of Care 175,730 176,702 (972) -0.6%
In-Center Avg.
Weekday Attendance 1,243 1,256 (13) -1.0%
In-Center Capacity 1,676 1,604 72 4.5%
In-Center Occupancy Rate 74.2% 78.3% -4.12%
Almost Family, Inc. is an adult day health care services company focused
on providing alternatives for seniors and other special needs adults who wish
to avoid nursing home placement. The Company has locations in Kentucky,
Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio, and Florida.
Contact: William Yarmuth or Steve Guenthner (502) 899-5355.
All statements, other than statements of historical facts, included in
this news release, including the objectives and expectations of management for
future operating results, 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 effects of implementation of Medicare Prospective
Payment System, potential changes to the Medicare PPS (including but not
limited to the 15% rate reduction currently legislated to go into effect on
October 1, 2002), the ability of the Company to achieve the cost control,
admission growth and earnings objectives of its plan for operating its
visiting nurse division under Medicare PPS; the ability of the Company to
accomplish its development objectives with respect to state and other
reimbursement programs; government regulation; health care reform; pricing
pressures from 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 March 31, 2001, 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/gh/cnoc/comp/784275.html
CONTACT:
William Yarmuth or Steve Guenthner of Almost
Family, Inc., +1-502-899-5355
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