LOUISVILLE, Ky., Aug. 19 /PRNewswire-FirstCall/ --
Almost Family, Inc. (Nasdaq: AFAM) announced today that it has redeemed
210,100 shares of its common stock held by David T. Russell PhD. The shares
redeemed represent 8.4% of the total shares outstanding prior to the
transaction. Dr. Russell continues to hold approximately 30,000 shares of
AFAM common stock or 1.3% of outstanding shares. The total purchase price for
the stock redeemed was approximately $1.525 million, which was paid in cash
today with funds available to the Company under its bank credit facility. The
price paid per share was $7.25 representing a 13% discount to Friday's closing
price and a 30% discount to the average trading price over the last 30
calendar days.
Had the transaction been completed at the beginning of the Company's
current fiscal year, pro-forma earnings per share for the six months ended
June 30, 2002, would have been $0.26 which is $0.01 or 4% higher than the
reported $0.25. The Company expects the transaction to be accretive to
earnings per share in future periods as well.
"This transaction re-emphasizes the confidence management and the Board of
Directors have in the Company and in our prospects for the future," said
William B. Yarmuth, AFAM's Chairman and CEO, adding "It also allows us, in
effect, to acquire a significant amount of cash flow for our existing
shareholders at an attractive and accretive price. Furthermore, we will
continue our pre-existing repurchase program independent of today's
transaction."
The redemption of Dr. Russell's shares was approved by the Board of
Directors outside of its previously initiated stock repurchase plan. That
plan, which is compliant with Rule 10B-18 of the Securities Exchange Act of
1934, permits purchases to take place selectively from time to time in open
market purchases through a broker or in privately negotiated transactions.
Approximately $400,000 remains available for repurchases under that plan.
Dr. Russell commented on the share redemption: "This transaction was
necessary due to certain unfortunate personal financial circumstances. I
continue to believe strongly in the future of AFAM, in the Board of Directors
and in management and I continue to hold a personally significant ownership in
the Company."
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.
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 outcome of potential changes to Medicare PPS payment
rates, the ability of the Company to maintain its level of operating
performance, 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, 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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