EPS from Continuing Operations up 102% over 2006, Net Income up 120%
LOUISVILLE, Ky., Aug. 6 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three months
and six months ended June 30, 2007.
Second Quarter 2007 Highlights
-- Net Income From Continuing Operations was $1,984,854 or $0.35 per
diluted share in 2007 as compared to $928,881 or $0.17 per diluted
share in 2006
-- Consolidated revenues increased approximately 52%
-- Operating income from continuing operations increased 126%
-- Net income from continuing operations increased 114%
-- The Company's VN segment revenues grew 87%
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $8.3 million to revenue for the
quarter
Year-to-date 2007 Highlights
-- Net Income From Continuing Operations was $3,701,109 or $0.66 per
diluted share in 2007 as compared to $1,856,532 or $0.35 per diluted
share in 2006
-- Consolidated revenues increased approximately 54%
-- Operating income from continuing operations increased 119%
-- Net income from continuing operations increased 99%
-- The Company's VN segment revenues grew 90%
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $16.8 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 second quarter results in which
continuing EPS more than doubled from the same period last year. Our same
store revenues grew 27% clearly reflecting the high quality of care and
service that we provide to our patients. In addition to continuing our
intense focus on same store sales growth, with our strong balance sheet and
the integration of the Mederi acquisition proceeding nicely, we are very
well positioned to continue our growth in the form of both start-up
locations and additional acquisitions."
Discussion of Quarterly Results
Net Income From Continuing Operations grew 114% to $1,984,854 or $0.35
per diluted share for the June 2007 quarter as compared to $928,881 or
$0.17 per diluted share in the June 2006 quarter. Revenues grew 52% to
$32.7 million in the June 2007 quarter from $21.5 million in the June 2006
quarter. Revenues in the Company's "Caretenders" Visiting Nurse (VN)
segment grew 87% over the same period last year.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 6% between periods.
VN Revenue Comparison for the Quarter
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 June 30, 2007 and 2006:
VN Revenue Comparison by # of
Market Type - All VN Mkts 2007 2006 Change Percent
Operations
Newly acquired markets 15 $6,442,629 $ - $6,442,629
Markets with in-market
acquisitions 8 4,451,935 2,602,893 1,849,042 71.1%
Acquisition related
markets 23 10,894,564 2,602,893 8,291,671
Markets with no
acquisition impact 24 12,649,677 9,996,237 2,653,440 26.5%
47 $23,544,241 $12,599,130 $10,945,111 86.9%
VN revenues grew approximately $10.9 million between years of which 59%
came from newly acquired markets, 17% 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 by
Mederi # of Mkts 2007 2006 Change
Newly acquired Mederi
markets 13 $5,463,270 $ - $5,463,270
Mederi markets overlapping
Almost Family Markets 7 3,936,270 2,179,028 1,757,242
Mederi related markets 20 $9,399,540 $2,179,028 $7,220,512
Markets with acquisitions not related to Mederi generated $1,495,024 of
revenue in the quarter ended June 30, 2007 as compared to $423,865 in 2006.
Our Visiting Nurse segment operations located in Florida normally
experience lower admissions during the September quarter than in the other
quarters due to seasonal population fluctuations.
Results of operations for the quarters ended June 30, 2007 and 2006 are
set forth in the tables below:
June June
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $23,544,241 72.0% $12,599,130 58.5%
Personal Care 9,165,611 28.0% 8,950,390 41.5%
$32,709,852 100.0% $21,549,520 100.0%
Operating income
Visiting Nurses $4,795,973 20.4% $1,886,268 15.0%
Personal Care 951,035 10.4% 890,907 10.0%
5,747,008 17.6% 2,777,175 12.9%
Unallocated corporate expenses 2,210,196 6.8% 1,214,856 5.6%
Operating Income 3,536,812 10.8% 1,562,319 7.2%
Interest expense/(income) 241,220 0.7% (22,947) -0.1%
Pre-tax income 3,295,592 10.1% 1,585,266 7.4%
Income taxes 1,310,738 4.0% 656,385 3.0%
Net income from continuing
operations $1,984,854 6.1% $928,881 4.3%
Income (loss) from
discontinued operations, net
of tax (3,580) (30,105)
Net income $1,981,274 6.1% $898,776 4.2%
Diluted earnings per share
Diluted shares
outstanding(1) 5,638,665 5,322,384
Continuing operations $ 0.35 $0.17
Discontinued operations - (0.01)
$ 0.35 $0.17
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $3,756,944 11.5% $1,816,673 8.4%
Effective tax rate 39.8% 41.4%
Change
Amount %
Net revenues
Visiting Nurses $10,945,111 86.9%
Personal Care 215,221 2.4%
$11,160,332 51.8%
Operating income
Visiting Nurses $2,909,705 154.3%
Personal Care 60,128 6.7%
2,969,833 106.9%
Unallocated corporate expenses 995,340 81.9%
Operating Income 1,974,493 126.4%
Interest expense/(income) 264,167 NM
Pre-tax income 1,710,326 107.9%
Income taxes 654,353 99.7%
Net income from continuing
operations $1,055,973 113.7%
Income (loss) from discontinued
operations, net of tax 26,525 NM
Net income $1,082,498 120.4%
Diluted earnings per share
Diluted shares outstanding (1) 316,281 5.9%
Continuing operations $ 0.18 101.7%
Discontinued operations - NM
$ 0.18 120.4%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $1,940,271 106.8%
Effective tax rate (1.6%)
Net income including discontinued operations, was $1,981,274 or $0.35
per diluted share in the quarter ended June 30, 2007 and $898,776 or $0.17
per diluted share in 2006.
Discussion of Six-Month Results
Net Income From Continuing Operations grew 99% to $3,701,109 or $0.66
per diluted share for the six months ended June 2007 as compared to
$1,856,532 or $0.35 per diluted share in the six months ended June 2006.
Revenues grew 54% to $64.7 million in the six months ended June 2007 from
$42.0 million in the six months ended June 2006. Revenues in the Company's
"Caretenders" Visiting Nurse (VN) segment grew 90% over the same period
last year.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 6% between periods.
VN Revenue Comparison for the Six Months
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 six month periods ended June 30, 2007 and 2006:
VN Revenue Comparison
by Market Type - All # of
VN Operations Mkts 2007 2006 Change Percent
Newly acquired
markets 15 $12,973,238 $ - $12,973,238
Markets with in-market
acquisitions 8 8,660,741 4,796,755 3,863,986 80.6%
Acquisition related
markets 23 21,633,979 4,796,755 16,837,224
Markets with no
acquisition impact 24 25,038,935 19,745,419 5,293,516 26.8%
47 $46,672,914 $24,542,174 $22,130,740 90.2%
VN revenues grew approximately $22.1 million between years of which 59%
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 13 $11,146,800 $ - $11,146,800
Mederi markets
overlapping Almost
Family Markets 7 7,583,932 3,907,691 3,676,241
Mederi related markets 20 $18,730,732 $3,907,691 $14,823,041
Markets with acquisitions not related to Mederi generated $2,903,247 of
revenue in the six months ended June 30, 2007 as compared to $889,064 in
2006.
Results of operations for the six-month periods ended June 30, 2007 and
2006 are set forth in the tables below:
June June
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $46,672,914 72.2% $24,542,174 58.3%
Personal Care 17,986,252 27.8% 17,518,670 41.7%
$64,659,166 100.0% $42,060,844 100.0%
Operating income
Visiting Nurses $9,284,822 19.9% $3,918,467 16.0%
Personal Care 1,448,988 8.1% 1,459,836 8.3%
10,733,810 16.6% 5,378,303 12.8%
Unallocated corporate expenses 4,085,721 6.3% 2,342,790 5.6%
Operating Income 6,648,089 10.3% 3,035,513 7.2%
Interest expense/(income) 496,928 0.8% (60,945) -0.1%
Pre-tax income 6,151,161 9.5% 3,096,458 7.4%
Income taxes 2,450,052 3.8% 1,239,926 2.9%
Net income from continuing
operations $3,701,109 5.7% $1,856,532 4.4%
Income (loss) from
discontinued operations, net
of tax
(53,457) (112,091)
Net income $3,647,652 5.6% $1,744,441 4.1%
Diluted earnings per share
Diluted shares
outstanding (1) 5,601,807 5,299,298
Continuing operations $ 0.66 $ 0.35
Discontinued operations (0.01) (0.02)
$ 0.65 $ 0.33
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $7,080,101 11.0% $3,567,250 8.5%
Effective tax rate 39.8% 40.0%
Change
Amount %
Net revenues
Visiting Nurses $22,130,740 90.2%
Personal Care 467,582 2.7%
$22,598,322 53.7%
Operating income
Visiting Nurses $5,366,355 137.0%
Personal Care (10,848) -0.7%
5,355,507 99.6%
Unallocated corporate expenses 1,742,931 74.4%
Operating Income 3,612,576 119.0%
Interest expense/(income) 557,873 NM%
Pre-tax income 3,054,703 98.7%
Income taxes 1,210,126 97.6%
Net income from continuing
operations $1,844,577 99.4%
Income (loss) from discontinued
operations, net of tax 58,634
NM
Net income $1,903,211 109.1%
Diluted earnings per share
Diluted shares outstanding (1) 302,509 5.7%
Continuing operations $ 0.31 88.6%
Discontinued operations 0.00 NM
$ 0.32 97.4%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $3,512,851 98.5%
Effective tax rate (0.2%)
Net income including discontinued operations, was $3,647,652 or $0.65
per diluted share in the quarter ended June 30, 2007 and $1,744,441 or
$0.33 per diluted share in 2006.
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 Six Months
Ended June 30, Ended June 30,
2007 2006 2007 2006
Net income from
continuing operations $1,984,854 $928,881 $3,701,109 $1,856,532
Add back:
Interest expense
(income) 241,220 (22,947) 496,928 (60,945)
Income taxes 1,310,738 656,385 2,450,052 1,239,926
Depreciation &
amortization 220,132 254,354 432,099 531,737
Earnings from continuing
operations Before
Interest, Income Taxes,
Depreciation &
Amortization (EBITDA) $3,756,944 $1,816,673 $7,080,188 $3,567,250
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).
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
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 Medicare reimbursement for home health services and 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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Related links:
http://www.almost-family.com
http://www.prnewswire.com/comp/784275.html /
CONTACT:
William Yarmuth or Steve Guenthner,
+1-502-891-1000, both of Almost Family, Inc.
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