LOUISVILLE, Ky., Aug. 14 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three month and
six month periods ended June 30, 2003.
The Company filed its Form 10-Q with the Securities and Exchange
Commission today. Please refer to that filing for additional information. In
the information that follows "ADHS" refers to the Company's Adult Day Health
Services segment and "VN" refers to the Company's Visiting Nurse segment.
Results of operations for the three months ended June 30, 2003 and 2002
are set forth in the table below:
Consolidated 2003 2002 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
ADHS $14,499,882 66.4% $13,682,392 65.6% $ 817,490 6.0%
VN 7,336,681 33.6% 7,161,024 34.4% 175,657 2.5%
$21,836,563 100.0% $20,843,416 100.0% $993,147 4.8%
Operating
Income
ADHS $508,153 3.5% $ 596,637 4.4% $(88,484) -14.8%
VN 1,037,495 14.1% 1,034,808 14.5% 2,687 0.3%
1,545,648 7.1% 1,631,445 7.8% (85,797) - 5.3%
Unallocated
corporate
expenses 564,996 2.6% 574,043 2.8% (9,047) -1.6%
Income before
interest and
taxes 980,652 4.5% 1,057,402 5.1% (76,750) -7.3%
Interest
expense 164,554 0.8% 179,498 0.9% (14,944) -8.3%
Income taxes 326,439 1.5% 351,128 1.7% (24,689) -7.0%
Net income $489,659 2.2% $ 526,776 2.5% $(37,117) -7.0%
Net income per share:
Basic:
Weighted average
shares 2,296,527 2,499,447 (202,920) -8.1%
Net income $ 0.21 $0.21 -- --
Net income per share:
Diluted:
Weighted average
shares 2,489,466 2,948,255 (458,789) -15.6%
Net income $ 0.20 $0.18 $0.02 11.1%
Results for the Quarter
William B. Yarmuth, Chairman and CEO, commented on the Company's results
for the quarter: "We are pleased with the results for the quarter given the
difficult reimbursement environment in which we currently operate. We are
especially pleased with the strong growth in admissions in our Visiting Nurse
segment which increased 16% with the same number of agencies in operation in
both periods. This growth in admissions has enabled us to overcome the
Medicare rate cuts that amounted to over $450,000 at our revenue and pre-tax
income lines. In our ADHS segment we have bounced back from our weather
impacted performance in the first quarter. We have also been very happy with
the assimilation of the our Ohio acquisition made in the middle of last year
which has helped to offset some volume declines in other ADHS business units."
Medicaid Program Budget Short-falls
The Company noted that throughout the country States have been faced with
budget shortfalls and are making significant reductions in their Medicaid
budgets in addressing these shortfalls. The Company continues to monitor the
impact of the trends in reimbursement in the States in which it operates and
may require additional actions to lower operating costs. Yarmuth added, "We
have weathered some pretty significant reimbursement cuts both from Medicare
and Medicaid over the past year. Although we believe this to be an issue
driven by the cyclical slowdown in the U.S. economy, if it continues it will
likely present challenges for all providers participating in Medicaid
programs."
The Company noted it is possible that the actions taken by the state
Medicaid programs could have a significant unfavorable impact on the Company's
results of operations, particularly in its ADHS segment and is advising
investors to read the Form 10-Q in its entirety for additional details.
Potential Medicare Reimbursement for Adult Day Care
Yarmuth also commented on the increasing potential for Medicare
reimbursement for adult day care services: "Contained in the Medicare
Prescription Drug legislation currently under consideration in the U.S.
Congress are two similar provisions that would create a Federal demonstration
project impacting medical adult day care. Both provisions authorize a new
demonstration project that would pay for home health beneficiaries receiving
their treatment in medical adult day care centers. The project would be the
first step toward the industry's goal of accessing Medicare reimbursement.
This is something we have been working on for a long time that can benefit
patients and the Medicare program by generating better patient outcomes at a
lower cost. Additionally, the Company believes that if this demonstration
project is initiated it will offer significant additional long term
development opportunities for adult day care."
Six Month Results
Results of operations for the six months ended June 30, 2003 and 2002 are
set forth in the table below:
Consolidated 2003 2002 Change
Amount %Rev Amount %Rev Amount %
Net Revenues
ADHS $28,411,658 65.5% $26,867,694 64.9% $1,543,964 5.8%
VN 14,942,550 34.5% 14,526,275 35.1% 416,275 2.9%
$43,354,208 100.0% $41,393,969 100.0% $1,960,239 4.7%
Operating
Income
ADHS $667,024 2.3% $1,211,314 4.5% $(544,290) -44.9%
VN 2,007,016 13.4% 2,158,322 14.9% (151,306) -7.0%
2,674,040 6.2% 3,369,636 8.1% (695,596) -20.6%
Unallocated
corporate
expenses 1,116,706 2.6% 1,924,529 4.6% (807,823) -42.0%
Income before
interest
and
taxes 1,557,334 3.6% 1,445,107 3.5% 112,227 7.8%
Interest
expense 343,787 0.8% 399,952 1.0% (56,165) -14.0%
Income
taxes 485,419 1.1% 418,062 1.0% 67,357 16.1%
Net income $728,128 1.7% $ 627,093 1.5% $101,035 16.1%
Net income per share:
Basic:
Weighted
average
shares 2,292,996 2,499,254 (206,258) -8.3%
Net income $ 0.32 $0.25 $0.07 28.0%
Net income per share:
Diluted:
Weighted
average
shares 2,484,763 2,969,291 (484,528) -16.3%
Net income $ 0.29 $0.21 $0.08 38.1%
As reported in the quarter ended March 31, 2003, decreased attendance in
the Company's adult day care centers directly related to snow and ice,
particularly during the month of February 2003, reduced net income by
approximately $0.05 per diluted share. As described above for the quarter,
earnings for the six months ended June 2003 were also adversely impacted by
changes in Medicare and Medicaid reimbursement rates but were favorably
impacted by the acquisition of Medlink Ohio personal care operations in July
2002. The decrease in shares outstanding resulted from share repurchases.
Unallocated corporate expenses in the six months ended June 30, 2002
include approximately $816,000, consisting primarily of professional fees,
related to the cost of conducting the investigation into the restatement of
the Company's financial statements as previously disclosed.
Almost Family, Inc. is a health services company providing adult day
health care services focused on providing alternatives for seniors and other
special needs adults who wish to avoid nursing home and other institutional
placement. The Company also operates a chain of Medicare-certified home
health agencies under the trade name "Caretenders(TM)." The Company has
operations in Alabama, Connecticut, Florida, Indiana, Kentucky, Maryland,
Massachusetts, and Ohio.
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
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 better control its costs,
expected trends in medical costs, the Company's ability to operate profitably
under lower operating costs in response to Medicaid reimbursement changes,
expectations for the long-term outlook for Medicaid reimbursement, the
potential for Medicare reimbursement for adult day care services 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, achieve its cost control objectives;
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 December 31, 2002, 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., +1-502-891-1000
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