Is Now a Pure Play Home Care Company Approaching $80 Million Revenue
LOUISVILLE, Ky., Sept. 30 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) announced that it has completed the sale of its Adult Day Care
Segment operations to Active Services, Inc. (Active Services) in an asset
sale.
As previously announced, the purchase price consists of $13.6 million cash
plus assumption of approximately $1.4 million of debt.
Pure Play Home Health Company Approaching $80 Million Revenue
With the transaction completed, Almost Family is now a pure play home
health care company with two operating segments: Caretenders Visiting Nurse
(VN) Medicare-certified operations with a current annual revenue run rate of
approximately $43 million and its Personal Care (PC) home health operations
with a current annual revenue run rate of approximately $35 million. Almost
Family has home health operations in Florida, Kentucky, Ohio, Connecticut,
Massachusetts and Alabama.
$20 Million Capital Available for Home Health Acquisitions
Proceeds of the transaction received today were used to repay
substantially all outstanding debt (excluding certain seller financing)
leaving approximately $4 million in cash available (after setting aside
related tax obligations due later this year). Cash on hand, combined with
borrowing capacity on its senior credit facility, make over $20 million of
capital immediately available to fund the Company's acquisition and
development activities. The Company expects that amount of capital, plus
internally generated growth and free cash flow, to be sufficient to take it to
over $100 million in revenues.
The disposition is expected to be immediately accretive to earnings per
share.
Company Commentary
William B. Yarmuth, Almost Family's Chairman and CEO commented on this
latest development: "As we stated in our previous announcement, it is with
somewhat mixed emotions that we close this transaction and this chapter in our
history. Once again, we want to express our sincere gratitude to our ADC
segment managers and employees for their tremendous commitment to quality,
their many years of service dedicated to the care of their members, and for
helping us make our ADC segment what it is today."
Regarding the future, Yarmuth added: "This transaction frees all our
remaining management time and capital to pursue a more aggressive, single-
minded pursuit of home health development while also placing our adult day
care operations in the hands of a well-capitalized experienced company with a
singular focus on adult day care."
Yarmuth concluded: "We are now embarking on a new stage in the Company's
development. We are extremely excited by the prospects for the development
and expansion of our home health business and the progress we can make with a
sole focus on home health care."
The Company has noted in its previous announcements that it is actively
pursuing a number of potential acquisitions in Florida and other states and
expects that it will be able to complete additional transactions over the
course of the next year. 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. The Company has
service locations in Florida, Kentucky, Ohio, 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,
the expectation that the divesture will be accretive to earnings per share,
future operating results of its home health agencies, the Company's ability to
acquire visiting nurse agencies at prices it is willing to pay, 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: the impact of further changes in healthcare reimbursement systems,
including the ultimate outcome of potential changes to Medicare or Medicaid
reimbursement due to government budget shortfalls; the ability of an acquired
agency to maintain its level of admissions and operating performance, our
ability to integrate acquired agencies into our 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 potential effect of changes in competition
for home health agency admissions. 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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