Second Quarter 2006 EPS from Continuing Operations up 29% over 2005
LOUISVILLE, Ky., Aug. 7 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three and six
months ending June 30, 2006.
Second Quarter Financial Highlights
- Net Income From Continuing Operations -- As Reported was $920,613 or
$0.35 per diluted share in the quarter ended June 30, 2006 as compared
to $703,319 or $0.27 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 24% over the same quarter last
year.
Year to Date Financial Highlights
- Net Income From Continuing Operations -- As Reported was $1,832,352 or
$0.69 per diluted share for the six months ended June 30, 2006 as
compared to $1,262,381 or $0.48 per diluted share for the same period
of 2005.
- Consolidated revenues increased approximately 14% over the same period
last year
- The Company's VN segment revenues grew 24% over the same period last
year.
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We continue to be pleased with our operating results. Our VN
operations produced overall revenue growth of over 24% compared to the
second quarter of 2005. On a same store basis, VN revenues grew over 11%
reflecting the success of our sales, marketing and business development
activities. Operating income grew almost 40% also reflecting steps we've
taken internally to better manage our operating efficiencies."
Regarding business development, Yarmuth continued: "We remain very
optimistic about the prospects for our future growth and development. Our
development efforts continue to provide us with a very nice supply of VN
acquisition candidates at attractive prices and we hope to complete
additional transactions in 2006. We are noting an increase in the supply of
acquisition candidates and expect market conditions plus the position we've
put ourselves in to allow us to be appropriately selective in our
acquisition activities."
The Company noted that it completed two acquisitions during the
quarter, a $1.7 million revenue Ocala FL based home health agency effective
mid-April and a $2 million revenue Birmingham AL based home health agency
effective the end of June.
Quarterly Discussion
Net Income From Continuing Operations -- As Reported grew 31% to
$920,613 or $0.35 per diluted share for the June 2006 quarter as compared
to $703,319 or $0.27 per diluted share in the June 2005 quarter. Revenues
grew 14% to $21.8 million in the June 2006 quarter from $19.2 million in
the June 2005 quarter.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 24% over the same period last year. Acquired operations contributed
approximately $696,000 of that revenue growth while also contributing $0.01
per diluted share to operating results in the June 2006 quarter. The
balance of the Company's revenue and earnings increase came from internal
growth.
Net income including discontinued operations, was $898,777 or $0.34 per
diluted share in the quarter ended June 30, 2006 and $622,638 or $0.24 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 the Company's Form 10-K for the year ended December 31,
2005, the Company's Visiting Nurse segment operations located in Florida
normally experience lower admissions during the June quarter than in the
other quarters due to seasonal population fluctuations.
Results of operations for the quarters ended June 30, 2006 and 2005 are
set forth in the tables below:
Quarter Ended
June June
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $12,599,130 57.7% $10,197,469 53.1% $2,401,661 23.6%
Personal
Care 9,247,388 42.3% 9,005,375 46.9% 242,013 2.7%
$21,846,518 100.0% $19,202,844 100.0% $2,643,674 13.6%
Operating
income
Visiting
Nurses $1,885,309 8.6% $1,381,062 7.2% $504,247 36.5%
Personal
Care 878,904 4.0% 875,086 4.6% 3,818 0.4%
2,764,213 12.7% 2,256,148 11.7% 508,065 22.5%
Unallocated
corporate
expenses 1,215,453 5.6% 1,064,509 5.5% 150,944 14.2%
Operating
income 1,548,760 7.1% 1,191,639 6.2% 357,121 30.0%
Interest expense
/(income) (22,947) -0.1% 56,626 0.3% (79,573) -140.5%
Pre-tax
income 1,571,707 7.2% 1,135,013 5.9% 436,694 38.5%
Income taxes 651,094 3.0% 431,694 2.2% 219,400 50.8%
Net income from
continuing
operations $920,613 4.2% $703,319 3.7% $217,294 30.9%
Income
(loss) from
discontinued
operations,
net of tax (21,836) (80,681) 58,845 -72.9%
Net income $898,777 $622,638 $276,139 44.3%
Diluted earnings
per share
Diluted
shares out-
standing 2,661,192 2,627,375 33,817 1.3%
Continuing
operations $0.35 $0.27 $0.08 29.6%
Discontinued
operations (0.01) (0.03) 0.02 -66.7%
$ 0.34 $0.24 $0.10 41.7%
Continuing
Operations
EBITDA $1,804,236 $1,514,081 $290,155 19.2%
EBITDA
margin
(% of
revenues) 8.3% 7.9% 0.4%
Effective tax
rate 41.4% 38.0% 3.4%
Year to Date Discussion
Net Income From Continuing Operations -- As Reported grew 45% to
$1,832,352 or $0.69 per diluted share for the six months ended June 30,
2006 as compared to $1,262,381 or $0.48 per diluted share for the period in
2005. Revenues grew 14% to $42.6 million in the six months ended June 30,
2006 from $37.5 million for the same period in 2005.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 24% over the same period last year. Acquired operations contributed
approximately $2,783,847 of that revenue growth while also contributing
$0.18 per diluted share to operating results for the six months ended June
30, 2006. The balance of the Company's revenue and earnings increase came
from internal growth.
Net income including discontinued operations, was $1,744,440 or $0.66
per diluted share for the six months ended June 30, 2006 and $1,006,573 or
$0.38 per diluted share in 2005. Discontinued operations include the
Company's Evansville IN operations which were closed in the March 2006
quarter.
Results of operations for the six months ended June 30, 2006 and 2005
are set forth in the tables below:
Six Months Ended
June June
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $24,542,174 57.6% $19,740,601 52.6% $4,801,573 24.3%
Personal
Care 18,098,203 42.4% 17,761,807 47.4% 336,396 1.9%
$42,640,377 100.0% $37,502,408 100.0% $5,137,969 13.7%
Operating
income
Visiting
Nurses $3,914,988 9.2% $3,067,133 8.2% $847,855 27.6%
Personal
Care 1,425,338 3.3% 1,499,849 4.0% (74,511) -5.0%
5,340,326 12.5% 4,566,982 12.2% 773,344 16.9%
Unallocated
corporate
expenses 2,344,647 5.5% 2,390,151 6.4% (45,504) -1.9%
Operating
income 2,995,679 7.0% 2,176,831 5.8% 818,848 37.6%
Interest expense
/(income) (60,945) -0.1% 111,862 0.3% (172,807) -154.5%
Pre-tax
income 3,056,624 7.2% 2,064,969 5.5% 991,655 48.0%
Income taxes 1,224,272 2.9% 802,588 2.1% 421,684 52.5%
Net income from
continuing
operations $1,832,352 4.3% $1,262,381 3.4% $569,971 45.2%
Income
(loss) from
discontinued
operations,
net of tax (87,912) (255,808) 167,896 -65.6%
Net income $1,744,440 $1,006,573 $737,867 73.3%
Diluted earnings
per share
Diluted
shares out-
standing 2,654,506 2,622,501 32,005 1.2%
Continuing
operations $0.69 $0.48 $0.21 43.8%
Discontinued
operations (0.03) (0.10) 0.07 -70.0%
$0.66 $0.38 $0.28 73.7%
Continuing
Operations
EBITDA $3,529,561 $2,821,702 $707,859 25.1%
EBITDA
margin
(% of
revenues) 8.3% 7.5% 0.8%
Effective tax
rate 40.1% 38.9% 1.2%
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 June 30, Six Months Ended June 30,
2006 2005 2006 2005
Net income from
continuing operations -
As Reported $920,613 $703,319 $1,832,352 $1,262,381
Add back:
Interest expense
(income) (22,947) 56,626 (60,945) 111,862
Income taxes 651,094 431,694 1,224,272 802,588
Depreciation &
amortization 255,476 322,442 533,882 644,871
Earnings from continuing
operations Before
Interest, Income Taxes,
Depreciation &
Amortization (EBITDA) -
As Reported $1,804,236 $1,514,081 $3,529,561 $2,821,702
Almost Family, Inc. 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", "Risk Factors" 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
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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