Net Income from Continuing Operations up 57% Over Prior Year
Total Revenues Up 14%, VN Segment Revenues Grew 27%
LOUISVILLE, Ky., Aug. 10 /PRNewswire-FirstCall/ -- Almost Family today
reported its results of operations for the three and six month periods ended
June 30, 2005.
Quarterly Results
Net income from continuing operations grew 57% to a record $668,757 ($0.25
per diluted share) for the June 2005 quarter as compared to $424,903 ($0.17
per diluted share) in the June 2004 quarter for an increase of 57%. Revenues
grew 14% to $24.8 million in the June 2005 quarter from $21.7 million in the
June 2004 quarter.
On August 3, 2005, the Company announced plans to divest its adult day
care (ADC) segment. Because the Company had not committed to that divestiture
until after the end of the quarter, ADC operations are included in continuing
operations in the June 2005 quarter. ADC operations will be reported as
discontinued operations for all subsequent periods. The Company expects to
report an after-tax gain on the sale of between $5 million and $6 million
($1.90 to $2.28 per diluted share) when the transaction closes.
If the ADC divestiture had qualified for discontinued operations
accounting treatment at June 30, 2005 the Company would have reported growth
in net income from continuing operations of 68% to $660,484 ($0.25 per diluted
share) for the June 2005 quarter from $392,710 ($0.15 per diluted share) in
the June 2004 quarter. It would have reported continuing operations revenue
growth of 17.8% to $19.3 million in the June 2005 quarter up from $16.4
million in the June 2004 quarter. These results exclude the effect the use of
the net proceeds of the sale of the ADC operations would have had on interest
expense (income) net of income tax effect.
Revenues in the Company's Caretenders Visiting Nurse (VN) segment grew 27%
over the same period last year with about one half of that growth being
internally generated. The April 1, 2005 acquisition of Bradenton, FL-based
"Florida Home Health" VN operations added approximately $1 million in revenues
and $111,000 in net income ($0.04 per diluted share) to operating results in
the June 2005 quarter. Net income from continuing operations for the June
2005 quarter included $88,451 ($0.03 per diluted share) of operating losses
related to VN operations started late in 2004 and first quarter 2005. Related
revenues were approximately $635,000.
Net income (loss) from discontinued operations (not related to the sale of
the ADC segment) for the quarter ended June 30, 2005 was a loss of ($46,119)
or ($0.02) per diluted share compared to a loss of ($30,218) or ($0.01) per
diluted share in 2004.
Including discontinued operations, consolidated net income increased 58%
to $622,638 or $0.24 per diluted share in 2005 from $394,685 or $0.15 per
diluted share in 2004.
Results of operations for the quarters ended June 30, 2005 and 2004 are
set forth in the tables below:
June June
2005 2004 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
Home Health Care
Visiting Nurses $10,317,868 41.7% $8,108,047 37.4% $2,209,821 27.3%
Personal Care 9,005,375 36.4% 8,288,627 38.2% 716,748 8.6%
19,323,243 78.0% 16,396,674 75.6% 2,926,569 17.8%
Adult Day Care 5,449,038 22.0% 5,305,679 24.4% 143,359 2.7%
$24,772,281 100.0% $21,702,353 100.0% $3,069,928 14.1%
Operating Income
Home Health Care
Visiting Nurses $1,468,753 14.2% $1,305,639 16.1% $163,114 12.5%
Personal Care 941,215 10.5% 689,023 8.3% 252,192 36.6%
2,409,968 12.5% 1,994,662 12.2% 415,306 20.8%
Adult Day Care 355,328 6.5% 357,947 6.7% (2,619) -0.7%
2,765,296 11.2% 2,352,609 10.8% 412,687 17.5%
Unallocated Corp
Expenses 1,582,486 6.4% 1,518,755 7.0% 63,731 4.2%
1,182,810 4.8% 833,854 3.8% 348,956 41.8%
Facility gains
(losses) (8,317) 0.0% (2,566) 0.0% (5,751) 224.1%
Interest Expense 97,106 0.4% 123,116 0.6% (26,010) -21.1%
Pre-Tax Income 1,077,387 4.3% 708,172 3.3% 369,215 52.1%
Income Taxes 408,630 1.6% 283,269 1.3% 125,361 44.3%
Net Income from
Continuing
Operations $668,757 2.7% $424,903 2.0% $243,854 57.4%
Income (loss)
from discontinued
operations,
net of tax (46,119) (30,218) (15,901) 52.6%
Net Income $622,638 $394,685 $227,953 57.8%
Diluted Earnings
Per Share
Diluted Shares
Outstanding 2,627,375 2,552,978 74,397 2.9%
Continuing
Operations $0.25 $0.17 $0.08 47.8%
Discontinued
Operations (0.02) (0.02) (0.00) NM
$0.24 $0.15 $0.08 53.3%
Continuing
Operations:
EBITDA $1,763,648 $1,440,223 $323,425 22.5%
Effective
Tax Rate 38.6% 40.0% (1.4%)
William B. Yarmuth, Chairman and CEO, commented on the operating results:
"The fact that we are producing record levels of net income from continuing
operations, whether with or without the ADC operations, clearly says we are on
the right strategic path. We are very pleased with our results for the
quarter which saw accelerated revenue growth rates in all our operating
segments. VN leads the way with 27% revenue growth, half of which came from
acquisitions and half of which was internally generated. However, our in-home
personal care (PC) segment also contributed almost 9% revenue growth all of
which was internally generated.
"While we are pleased with our results for the quarter, as we said last
week we think we can do more. With the divestiture of the ADC segment, all
our management time and talent will be turned toward accelerating our growth
in our home health operations. With the amount of capital now available to us
we will seek to be more aggressive in our approach to acquisitions and
startups and we will redouble our efforts to increase the effectiveness and
efficiency of our sales and marketing activities," Yarmuth concluded.
The Company noted that before considering the purchase price of
acquisitions completed, its cash flows resulted in debt reduction of
approximately $2.1 million in the quarter ended June 30, 2005 and about $7.9
million in the twelve months ended June 30, 2005. Following completion of the
sale of its ADC segment, the Company expects to have about $4 million in cash,
no balance then outstanding on its bank credit facility, and approximately $18
million in borrowing capacity under that facility.
Year to Date Results
Net income from continuing operations grew 43% to $1,089,421 ($0.42 per
diluted share) for the six months ended June 2005 as compared to $762,607
($0.30 per diluted share) in the six months ended June 2004. Revenues grew
12% to $48.3 million in the six months ended June 2005 from $43.2 million in
the six months ended June 2004.
If the ADC divestiture had qualified for discontinued operations
accounting treatment at June 30, 2005 the Company would have reported growth
in net income from continuing operations of 25% to $1,218,043 ($0.46 per
diluted share) for the six months ended June 2005 from $973,873 ($0.38 per
diluted share) in the six months ended June 2004. It would have reported
continuing operations revenues growth of 15% to $37.7 million in the six
months ended June 2005 up from $32.8 million in the six months ended June
2004. These results exclude the effect the use of the net proceeds of the
sale of the ADC operations would have had on interest expense (income) net of
income tax effect.
Revenues in the Company's Caretenders Visiting Nurse (VN) segment grew 21%
over the same period last year with about two-thirds of that growth being
internally generated. The April 1, 2005 acquisition of Bradenton, FL-based
"Florida Home Health" VN operations added approximately $1 million in revenues
and $111,000 in net income ($0.04 per diluted share) to operating results for
the six months ended June 2005. Net income from continuing operations for the
six months ended June 2005 included $226,564 ($0.09 per diluted share) of
operating losses related to VN operations started late in 2004 and first
quarter 2005. Related revenues were approximately $914,000.
Net income (loss) from discontinued operations (not related to the sale of
the ADC segment) for the six months ended June 30, 2005 was a loss of $82,849
($0.03 per diluted share) compared to a loss of $66,559 ($0.03 per diluted
share) in 2004.
Including discontinued operations, consolidated net income increased 45%
to $1,006,572 or $0.38 per diluted share in 2005 from $696,047 or $0.27 per
diluted share in 2004.
Results of operations for the six months ended June 30, 2005 and 2004 are
set forth in the tables below:
June June
2005 2004 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
Home Health Care
Visiting Nurses $19,973,387 41.4% $16,449,457 38.1% $3,523,930 21.4%
Personal Care 17,761,807 36.8% 16,390,519 38.0% 1,371,288 8.4%
37,735,194 78.1% 32,839,976 76.1% 4,895,218 14.9%
Adult Day Care 10,556,220 21.9% 10,330,793 23.9% 225,427 2.2%
$48,291,414 100.0% $43,170,769 100.0% $5,120,645 11.9%
Operating Income
Home Health Care
Visiting Nurses $3,091,779 15.5% $2,813,815 17.1% $277,964 9.9%
Personal Care 1,637,358 9.2% 1,395,693 8.5% 241,665 17.3%
4,729,137 12.5% 4,209,508 12.8% 519,629 12.3%
Adult Day Care 603,949 5.7% 217,126 2.1% 386,823 178.2%
5,333,086 11.0% 4,426,634 10.3% 906,452 20.5%
Unallocated Corp
Expenses 3,357,962 7.0% 2,891,518 6.7% 466,444 16.1%
1,975,124 4.1% 1,535,116 3.6% 440,008 28.7%
Facility gains
(losses) (8,317) 0.0% 3,854 0.0% (12,171)-315.8%
Interest Expense 188,313 0.4% 267,959 0.6% (79,646) -29.7%
Pre-Tax Income 1,778,494 3.7% 1,271,011 2.9% 507,483 39.9%
Income Taxes 689,072 1.4% 508,405 1.2% 180,667 35.5%
Net Income from
Continuing
Operations $1,089,422 2.3% $762,607 1.8% $326,816 42.9%
Income (loss)
from discontinued
operations, net
of tax $(82,849) $(66,559) $(16,290) 24.5%
Net Income $1,006,573 $696,047 $310,526 44.6%
Diluted Earnings
Per Share
Diluted Shares
Outstanding 2,622,501 2,553,915 68,586 2.7%
Continuing
Operations $0.42 $0.30 $0.12 40.0%
Discontinued
Operations $(0.03) $(0.03) $(0.00) NM
$0.38 $0.27 $0.12 44.4%
Continuing
Operations:
EBITDA $3,160,453 $2,752,059 $408,393 14.8%
Effective
Tax Rate 38.7% 40.0% (1.3%)
Non-GAAP Financial Measures
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 net income to EBITDA:
Quarter Ended June 30,
2005 2004
Net Income from continuing operations $668,757 $424,903
Add Back:
Interest Expense 97,106 123,116
Income Taxes 408,630 283,269
Depreciation & Amortization 589,155 608,935
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA)
from continuing operations $1,763,648 $1,440,223
Six Months Ended June 30,
2005 2004
Net Income from continuing operations $1,089,422 $762,607
Add Back:
Interest Expense 188,313 267,959
Income Taxes 689,072 508,405
Depreciation & Amortization 1,193,646 1,213,088
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA)
from continuing operations $3,160,453 $2,752,059
The Company's 2004 Form 10-K includes a description of its business plan
which calls for an increase in emphasis on the Visiting Nurse 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, the Company's ability to complete the sale of its
ADC segment, 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, 2004,
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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