LOUISVILLE, Ky., Oct. 30 /PRNewswire/ --
Almost Family, Inc. (Nasdaq: AFAM) announced earnings for the three and
six month periods ended September 30, 2001.
Consolidated Results - Quarter
The Company reported consolidated net income from continuing operations of
$843,651 or $0.34 per share for the three months ended September 30, 2001
versus $20,515 or $0.01 per share in the same period last year. Including
accounting credits for discontinued operations as further described below, net
income was $1,931,001 or $0.78 per share for the three months ended September
30, 2001 versus $504,072 or $0.16 per share in the same period last year.
Consolidated Results - Year to Date
The Company reported consolidated net income from continuing operations of
$1,697,347 or $0.68 per share for the six months ended September 30, 2001
versus $57,566 or $0.02 per share in the same period last year. Including
accounting credits for discontinued operations as further described below, net
income was $2,784,697 or $1.12 per share for the six months ended September
30, 2001 versus $794,788 or $0.25 per share in the same period last year.
William B. Yarmuth, AFAM's CEO commented on the results: "We are very
pleased with the financial performance of our business. Our results for the
three and six months ended September have been simply outstanding. With a
full year of operations under Medicare PPS reported, we believe that investors
can better understand our financial performance and value our shares
accordingly. We further believe the retention of the VN segment will enable
us to deliver higher growth rates than would have been possible with ADHS
alone. For the twelve months ended September 30, 2001 our consolidated EBITDA
or earnings before interest, taxes, depreciation and amortization from
continuing operations was $7.7 million and earnings were $1.16 per share.
Clearly these operating results reflect the success of our strategy."
The Company noted that it is continuing its share buyback program.
During this fiscal year the Company has opened 3 new Adult Day Care
facilities: Ft. Myers FL, Bardstown KY and Ft. Thomas KY (Cincinnati Metro
area). These facilities generated a net loss of $0.03 per share in the three
months ended September 30, 2001 a net loss of $0.04 per share in the six
months ended September 30, 2001. Excluding these startups, continuing
operations EPS for the three and six months ended September 30, 2001 were
$0.37 and $0.72 respectively.
Results of operations for the three months ended September 30, 2001 and
2000 are set forth in the following table:
Three Months Ending
September 30, Change
2001 2000 Amount %
Net revenues $19,663,245 $18,319,271 $1,343,975 7.3%
Cost of sales and services 15,543,426 15,357,899 185,527 1.2%
General and administrative
expenses 1,739,533 1,816,179 (76,646) -4.2%
Depreciation and amortization
expense 412,827 384,563 28,264 7.3%
Provision for uncollectible
accounts 278,885 361,652 (82,767) -22.9%
Income before other income
(expense) and income taxes 1,688,574 398,977 1,289,597 323.2%
Other income (expense)
Interest expense 226,489 233,397 (6,908) -3.0%
Income before income taxes 1,462,085 165,579 1,296,505 783.0%
Provision for income taxes 618,433 145,064 473,369 326.3%
Net income from
Continuing Operations $843,65l $20,515 $823,136 4012.3%
Discontinued Operations:
VN Operating losses
previously provided -- 483,557 (483,557) -100.0%
Gain from reversal of previously recorded
disposal charge, net of applicable income
tax provision of $688,000 1,087,350 -- 1,087,350 0.0%
Net Income $1,931,001 $504,072 $1,426,929 283.1%
EBITDA From Continuing
Operations $2,101,401 $783,540 $1,317,861 168.2%
Earnings per Share - Basic
Weighted Average
Basic Shares 2,485,832 3,141,186 (655,354) -20.9%
Net income from continuing
operations $0.34 $0.01 $0.33 5096.4%
Discontinued Operations:
VN Operating losses
previously provided -- 0.15 (0.15) -100.0%
Gain from reversal of
previously recorded
disposal charge, net of
applicable income
tax provision of $688,000 0.44 -- 0.44 0.0%
Net income $0.78 $0.16 $0.62 384.1%
Earnings per Share - Diluted
Weighted Average
Diluted Shares 2,909,285 3,378,615 (469,330) -13.9%
Net Income from continuing
operations $0.29 $0.01 $0.28 4675.7%
Discontinued Operations:
VN Operating losses
previously provided -- 0.14 (0.14) -100.0%
Gain from reversal of
previously recorded disposal
charge, net of applicable income
tax provision of $688,000 0.37 -- 0.37 0.0%
Net income $0.66 $0.15 $0.51 344.9%
Results of operations for the six months ended September 30, 2001 and 2000
are set forth in the following table:
Six Months Ending
September 30, Change
2001 2000 Amount %
Net revenues $38,936,891 $36,435,956 $2,500,935 6.9%
Cost of sales and
services 30,716,807 30,823,745 (106,939) -0.3%
General and administrative
expenses 3,416,412 3,514,327 (97,915) -2.8%
Depreciation and
amortization expense 816,905 832,651 (15,746) -119%
Provision for uncollectible
accounts 599,562 553,861 45,700 8.3%
Income before other income
(expense) and income
taxes 3,387,206 711,372 675,834 376.15%
Other income (expense)
Interest Expense 457,139 408,852 48,287 11.8%
Income before income
taxes 2,930,067 302,520 2,627,547 868.6%
Provision for income
taxes 1,232,720 244,954 987,766 403.2%
Net income from Continuing
Operations $1,697,347 $57,566 $1,639,781 2848.5%
Discontinued Operations:
VN Operating losses
previously provided -- 737,222 (737,222) -100.0%
Gain from reversal of
previously recorded
disposal charge, net of
applicable income
tax provision
of $688,000 1,087,350 -- 1,087,350 0.00%
Net Income $2,784,697 $794,788 $1,989,909 250.4%
EBITDA From Continuing
Operations $4,204,111 $1,544,023 $2,660,088 172.3%
Earnings per Share - Basic
Weighted Average
Basic Shares 2,485,832 3,141,186 (655,354) -20.9%
Net income from continuing
operations $ 0.68 $ 0.02 $ 0.66 3625.8%
Discontinued Operations:
VN Operating losses
previously provided -- 0.23 (0.23) -100.0%
Gain from reversal of
previously recorded
disposal charge, net of
applicable income
tax provision of $688,000 0.44 -- 0.44 0.0%
Net income $1.12 $0.25 $0.87 342.7%
Earnings per Share - Diluted
Weighted Average
Diluted Shares 2,909,285 3,378,615 (469,330) -13.9%
Net income from
continuing operations $0.58 $0.02 $0.57 3324.2%
Discontinued Operations:
VN Operating losses
previously Provided -- 0.22 (0.22) -100.0%
Gain from reversal of
previously recorded
disposal charge, net of
applicable income
tax provision of $688,000 0.37 -- 0.37 0.0%
Net income $0.96 $0.24 $0.72 306.9%
Seasonality of ADHS Business
The Company noted for investors that the ADHS segment normally experiences
seasonality in its operating results. Specifically, the quarters ended
December and March typically generate lower operating income than the quarters
ended June and September as the holiday season and winter weather tend to
temporarily lower ADC in-center attendance. The Company reiterated that in
the twelve months ended September 30, 2001 consolidated EBITDA or earnings
before interest, taxes, depreciation and amortization from continuing
operations was $7.7 million and earnings were $1.16 per share.
Discontinued Operations Accounting
As previously announced, on September 14, 2001, the Company's Board of
Directors terminated its previously adopted plan of disposition for its
Visiting Nurse (VN) operations. This decision followed a period of extensive
analysis and evaluation of numerous alternatives for the business unit. As a
result of the decision to retain its VN segment, the Company has recorded, in
the quarter ended September 30, 2001, a one-time gain of approximately $1.1
million, or $0.44 per share, resulting from the reversal of the remainder of
previously recorded accounting reserves established for the expected costs of
completing the plan of disposition.
In the Company's original reporting of net income for the three and six
months ended September 30, 2000, discontinued operations accounting treatment
was used for the VN segment. Under that accounting treatment, during those
periods, the operating losses generated by the VN segment (prior to Medicare
PPS) were not included in net income, but were charged against a previously
provided reserve for such losses. Now that the Company has terminated the use
of discontinued operations accounting treatment, the VN segment operating
results are now being reported as a part of continuing operations for all
periods presented. Accordingly, the amount of losses incurred by the VN
segment in prior periods is reflected in the line "VN Operating losses
previously provided" to reconcile net income from continuing operations to
previously reported net income.
Almost Family, Inc. is an adult day health care services company focused
on providing alternatives for seniors and other special needs adults who wish
to avoid nursing home placement. The Company has locations in Kentucky,
Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio, and Florida.
Contact: William Yarmuth or Steve Guenthner (502) 899-5355.
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 effects of implementation of Medicare Prospective
Payment System, potential changes to the Medicare PPS (including but not
limited to the rate reduction currently legislated to go into effect on
October 1, 2002), the ability of the Company to achieve the cost control and
earnings objectives of its plan for operating its visiting nurse division
under Medicare PPS; the ability of the Company to accomplish its development
objectives with respect to state and other reimbursement programs; 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 March 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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