Third Quarter 2006 EPS from Continuing Operations up 150% Over 2005
VN Segment Revenues Grow 43%
LOUISVILLE, Ky., Nov. 6 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results, including record
revenue growth, for the three and nine months ending September 30, 2006.
Quarter Financial Highlights
- Net Income From Continuing Operations was $1,044,987 or $0.39 per
diluted share in the quarter ended September 30, 2006 as compared to
$415,831 or $0.16 per diluted share in the same quarter of 2005.
- The Company's VN segment revenues grew 43% over the same quarter last
year with 20% same store growth, $900,000 revenue from startups and
$1.4 million from acquisitions.
- The Company's PC segment grew revenues 5% and operating income grew 49%
form the same quarter last year.
- Consolidated revenues increased approximately 25% over the same quarter
last year
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
grew 80% from the same quarter of 2005.
Year to Date Financial Highlights
- Net Income From Continuing Operations was $2,877,940 or $1.08 per
diluted share for the nine months ended September 30, 2006 as compared
to $1,678,211 or $0.64 per diluted share for the same period of 2005.
- The Company's VN segment revenues grew 31% over the same period last
year.
- Consolidated revenues increased approximately 17% over the same period
last year
- EBITDA grew 40% from the same period of 2005.
William B. Yarmuth, AFAM's Chairman and CEO commented on the results
for the quarter as compared to the same quarter of 2005:
"We are extremely pleased to report that our VN operations are
producing unprecedented 43% growth all of which is driven by increases in
patient volume. All three prongs of our growth strategy: 1) same store
sales growth, 2) startups and 3) acquisitions contributed significantly to
the quarter's successful results. At the anniversary of the sale of our
adult day care segment, our results reflect the singularity of our focus on
home health care and come in large part from the redeployment of capital,
the geographic expansion of our service territory, and the consistent
quality of our services which leads to satisfied patients and referral
sources. We firmly believe that the increased return on our shareholders'
investment is a direct result of our employees' commitment to only the
highest level of patient outcomes."
Regarding business development, Yarmuth continued: "As we noted in our
comments regarding last quarter's operating results, we remain very
optimistic about the prospects for our future growth and development. We
are seeing an increase in the number of home health agencies being offered
for sale, we believe as a result of the difficulties smaller providers have
competing with larger regional and national providers in today's complex
Medicare environment. This, plus our strong operating infrastructure and
financial condition, will allow us to be appropriately selective in our
acquisition activities."
The Company noted that it completed one acquisition during the quarter:
a $1.8 million annualized Medicare revenue South FL based home health
agency with branches in Sunrise and Delray beach effective late September.
The quarter also included the results the acquisition of a $1.7 million
annualized Medicare revenue Birmingham AL based home health agency
effective the end of June.
Quarterly Discussion
Net Income From Continuing Operations grew 151% to $1,044,987, or $0.39
per diluted share, for the September 2006 quarter as compared to $415,831,
or $0.16 per diluted share, in the September 2005 quarter. Revenues grew
25% to $22.9 million in the September 2006 quarter from $18.4 million in
the September 2005 quarter.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 43% over the same period last year. Acquired operations contributed
approximately $1.4 million of that revenue growth. Startup operations
generated about $900,000 in revenue in the September 2006 quarter as
compared to $43,000 in 2005. The balance of the Company's revenue increase
came from internal growth. The Company noted that its revenue growth was
generated despite the Medicare-rate freeze implemented by the Federal
government for 2006.
Net income including discontinued operations, was $1,025,939 or $0.39
per diluted share in the quarter ended September 30, 2006 and $5,378,860 or
$2.04 per diluted share in 2005, with $1.89 per share being generated from
the sale of the Company's adult day care operating segment.
Results of operations for the quarters ended September 2006 and 2005
are set forth in the tables below:
Quarter Ended
September September
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $13,627,142 59.4% $9,517,030 51.8% $4,110,112 43.2%
Personal
Care 9,318,702 40.6% 8,844,469 48.2% 474,233 5.4%
$22,945,843 100.0% $18,361,498 100.0% $4,584,345 25.0%
Operating
income
Visiting
Nurses $1,919,746 14.1% $903,041 9.5% $1,016,704 112.6%
Personal
Care 1,218,925 13.1% 820,964 9.3% 397,960 48.5%
3,138,670 13.7% 1,724,006 9.4% 1,414,664 82.1%
Unallocated
corporate
expenses 1,449,971 6.3% 975,931 5.3% 474,041 48.6%
Operating
income 1,688,699 7.4% 748,075 4.1% 940,624 125.7%
Interest
expense/
(income) (33,275) -0.1% 70,178 0.4% (103,453) -147.4%
Pre-tax
income 1,721,974 7.5% 677,897 3.7% 1,044,077 154.0%
Income taxes 676,987 3.0% 262,065 1.4% 414,922 158.3%
Net income
from contin-
uing oper-
ations $1,044,987 4.6% $415,831 2.3% $629,155 151.3%
Income (loss)
from discon-
tinued oper-
ations, net
of tax (19,048) (37,243) $18,196 -48.9%
Gain on Sale $- $5,000,272 $(5,000,272) 0.00%
Net income $1,025,939 $5,378,860 $(4,352,922) -80.9%
Diluted
earnings per
share
Diluted
shares
outstand-
ing 2,654,387 2,639,214 15,173 0.6%
Continuing
operations $0.39 $0.16 $0.24 149.9%
Discontinued
operations $(0.01) $(0.01) $0.00 14.6%
Gain on Sale $- $1.89 $(1.90) NM
$0.39 $2.04 $(1.65) NM
Continuing
Operations
EBITDA $1,949,354 $1,084,522 $864,831 79.7%
Effective
tax rate 39.3% 38.7% 0.7%
Year to Date Discussion
Net Income From Continuing Operations grew 72% to $2,877,940 or $1.08
per diluted share for the nine months ended September 30, 2006 as compared
to $1,678,211 or $0.64 per diluted share for the period in 2005. Revenues
grew 17% to $65.6 million in the nine months ended September 30, 2006 from
$55.9 million for the same period in 2005.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment
grew 31% over the same period last year. Acquired operations contributed
approximately $2.5 million of that revenue growth while startup operations
generated about $1.7 million in revenue in the nine months ended September
2006 as compared to approximately $258,000 in 2005. The balance of the
Company's revenue increase came from internal growth.
Net income including discontinued operations, was $2,770,379 or $1.04
per diluted share for the nine months ended September 30, 2006 and
$6,385,432 or $2.43 per diluted share in 2005 with $1.90 per share being
generated from the sale of the Company's adult day care operating segment.
Results of operations for the nine months ended September 30, 2006 and
2005 are set forth in the tables below:
Nine Months Ended
September September
2006 2005 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurses $38,169,315 58.2% $29,257,631 52.4% $8,911,685 30.5%
Personal
Care 27,416,905 41.8% 26,606,276 47.6% 810,629 3.0%
$65,586,220 100.0% $55,863,907 100.0% $9,722,313 17.4%
Operating
income
Visiting
Nurses $5,838,213 15.3% $3,970,174 13.6% $1,868,039 47.1%
Personal
Care 2,639,527 9.6% 2,320,813 8.7% 318,714 13.7%
8,477,741 12.9% 6,290,987 11.3% 2,186,753 34.8%
Unallocated
corporate
expenses 3,792,762 5.8% 3,366,082 6.0% 426,680 12.7%
Operating
income 4,684,979 7.1% 2,924,906 5.2% 1,760,073 60.2%
Interest
expense/
(income) (94,220) -0.1% 182,041 0.3% (276,261) -151.8%
Pre-tax
income 4,779,199 7.3% 2,742,865 4.9% 2,036,334 74.2%
Income
taxes 1,901,259 2.9% 1,064,654 1.9% 836,605 78.6%
Net income
from contin-
uing oper-
ations $2,877,940 4.4% $1,678,211 3.0% $1,199,729 71.5%
Income (loss)
from discon-
tinued oper-
ations, net
of tax (107,561) (293,052) 185,491 -63.3%
Gain on Sale $- $5,000,272 $(5,000,272) 0.0%
Net
income $2,770,379 $6,385,432 $(3,615,053) -56.6%
Diluted
earnings
per share
Diluted
shares
outstand-
ing 2,662,542 2,629,386 33,156 1.3%
Continuing
oper-
ations $1.08 $0.64 $0.44 69.4%
Discontinued
operations (0.04) (0.11) 0.07 -63.8%
Gain on Sale $- 1.90 $(1.90) 0.0%
$1.04 $2.43 $(1.39) -57.2%
Continuing
Operations
EBITDA $5,479,515 $3,906,224 $1,573,295 40.3%
Effective
tax rate 39.8% 38.8% 1.0%
Non-GAAP Financial Measure
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 Continuing
Operations Net Income to EBITDA:
Quarter Ended September 30, Nine Months Ended Sept. 30,
2006 2005 2006 2005
Net income
from contin-
uing oper-
ations $1,044,987 $415,831 $2,877,940 $1,678,211
Add back:
Interest expense
(income) (33,275) 70,178 (94,220) 182,041
Income taxes 676,987 262,065 1,901,259 1,064,654
Depreciation &
amortization 260,655 336,447 794,536 981,318
Earnings from
continuing oper-
ations Before
Interest, Income
Taxes, Depreciation
& Amortization
(EBITDA) $1,949,354 $1,084,522 $5,479,515 $3,906,224
Almost Family, Inc. and subsidiaries (collectively "Almost Family") is
a leading regional provider of home health services. The Company has
service locations in Florida, Kentucky, Ohio, Connecticut, Massachusetts,
Indiana and Alabama (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 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, 2005, in particular
information under the headings "Business", "Risk Factors" 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
http://www.prnewswire.com/comp/784275.html/
CONTACT:
William Yarmuth or Steve Guenthner, both of
Almost Family, Inc., +1-502-891-1000
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