Net Income up 82%
LOUISVILLE, Ky., Nov. 6 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three months
and nine months ended September 30, 2007.
Quarter 2007 Highlights
-- Net Income From Continuing Operations was $1,906,601 up 82% from
$1,045,771 in 2006
-- Continuing Operations Earnings per diluted share were $0.34 in 2007
versus $0.20 in 2006 for an increase of 72%
-- Consolidated revenues increased approximately 42%
-- The Company's VN segment revenues grew 68%
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $6.4 million to revenue for the
quarter
-- Days sales outstanding in accounts receivable were 40 at September 30,
2007
Year-to-date 2007 Highlights
-- Net Income From Continuing Operations was $5,607,708 up 93% from
$2,902,302 in 2006
-- Continuing Operations Earnings per diluted share were $1.00 in 2007
versus $0.55 in 2006 for an increase of 84%
-- Consolidated revenues increased approximately 50%
-- Net income from continuing operations increased 93%
-- The Company's VN segment revenues grew 82%
-- VN markets with no acquisition activity generated 27% revenue growth,
while markets with acquisitions added $23 million to revenue for the
nine months
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"Our third quarter results show the continuation of the strong
performance that was delivered in our first two quarters of 2007. We
continue to achieve meaningful same store sales growth confirming our
commitment to providing the highest quality patient care. In addition we
continue to reap the benefits we anticipated from our past eighteen months
of acquisition activity. Also, on October 27, 2007 we were proud to welcome
the employees, patients and referral sources of Quality of Life to the
Almost Family group of home health care providers. We look forward to the
continued progress of the Company as we pursue our strategic development
plans."
Discussion of Quarterly Results
Net Income From Continuing Operations grew 82% to $1,906,601 or $0.34
per diluted share for the September 2007 quarter as compared to $1,045,771
or $0.20 per diluted share in the September 2006 quarter. Revenues grew 42%
to $32.0 million in the September 2007 quarter from $22.6 million in the
September 2006 quarter. Revenues in the Company's "Caretenders" Visiting
Nurse (VN) segment grew 68% over the same period last year.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 6% between periods.
VN Revenue Comparison for the Quarter
Due to the significant impact of acquisition activities on VN revenue
growth, the following tables are presented comparing revenue growth by
market type for the quarters ended September 30, 2007 and 2006:
VN Revenue Comparison
by Market Type - # of
All VN Operations Mkts 2007 2006 Change Percent
Newly acquired markets 13 $4,808,639 $- $4,808,639
Markets with in-market
acquisitions 9 4,365,921 2,786,125 1,579,796 56.7%
Acquisition related
markets 22 9,174,560 2,786,125 6,388,435
Markets with no
acquisition impact 25 13,779,243 10,841,017 2,938,226 27.1%
47 $22,953,803 $13,627,142 $9,326,661 68.4%
VN revenues grew approximately $9.3 million between years of which 52%
came from newly acquired markets, 17% came in markets with in-market
acquisitions and 31% came from markets with no acquisition impact.
The following table provides a comparison of revenues related specifically
to the Mederi acquisition (excludes all markets not impacted by the Mederi
acquisition):
VN Markets Impacted # of
by Mederi Mkts 2007 2006 Change
Newly acquired Mederi
markets 12 $4,499,093 $- $4,499,093
Mederi markets overlapping
Almost Family Markets 8 3,968,979 2,296,332 1,672,647
Mederi related markets 20 $8,468,072 $2,296,332 $6,171,740
Markets with acquisitions not related to Mederi generated $706,488 of
revenue in the quarter ended September 30, 2007 as compared to $489,793 in
2006.
Results of operations for the quarters ended September 30, 2007 and
2006 are set forth in the tables below:
September September
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $22,953,803 71.6% $13,627,142 60.2%
Personal Care 9,103,218 28.4% 9,004,083 39.8%
$32,057,021 100.0% $22,631,225 100.0%
Operating income
Visiting Nurses $4,517,329 19.7% $1,919,746 14.1%
Personal Care 887,649 9.8% 1,220,228 13.6%
5,404,978 16.9% 3,313,974 13.9%
Unallocated corporate
expenses 2,083,537 6.5% 1,449,971 6.4%
Operating Income 3,321,441 10.4% 1,690,003 7.5%
Interest expense/(income) 153,480 0.5% (33,275) -0.1%
Pre-tax income 3,167,961 9.9% 1,723,278 7.6%
Income taxes 1,261,360 3.9% 677,507 3.0%
Net income from
continuing operations $1,906,601 5.9% $1,045,771 4.6%
Income (loss) from
discontinued operations,
net of tax (19,977) (10,003)
Net income $1,886,624 5.9% $1,035,768 4.6%
Diluted earnings per share
Diluted shares
outstanding (1) 5,619,862 5,308,774
Continuing operations $0.34 $0.20
Discontinued operations (0.00) (0.00)
$0.34 $0.20
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $3,502,081 10.9% $1,949,535 8.6%
Effective tax rate 39.8% 39.3%
Change Change
Amount %
Net revenues
Visiting Nurses $9,326,661 68.4%
Personal Care 99,135 1.1%
$9,425,796 41.6%
Operating income
Visiting Nurses $2,597,583 135.3%
Personal Care (332,579) (27.3%)
2,265,004 72.1%
Unallocated corporate expenses 633,566 43.7%
Operating Income 1,631,438 96.5%
Interest expense/(income) 186,755 NM
Pre-tax income 1,444,683 83.8%
Income taxes 583,853 86.2%
Net income from continuing operations $860,830 82.3%
Income (loss) from discontinued
operations, net of tax (9,974) NM
Net income $850,856 82.1%
Diluted earnings per share
Diluted shares outstanding (1) 311,088 5.9%
Continuing operations $0.14 72.1%
Discontinued operations - NM
$0.14 72.1%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $1,570,546 80.6%
Effective tax rate 0.5%
Net income including discontinued operations, was $1,886,624 or $0.34
per diluted share in the quarter ended September 30, 2007 and $1,035,768 or
$0.20 per diluted share in 2006.
Discussion of Nine-Month Results
Net Income From Continuing Operations grew 93% to $5,607,708 or $1.00
per diluted share for the nine months ended September 2007 as compared to
$2,902,302 or $0.55 per diluted share in the nine months ended September
2006. Revenues grew 50% to $96.7 million in the nine months ended September
2007 from $64.7 million in the nine months ended September 2006. Revenues
in the Company's "Caretenders" Visiting Nurse (VN) segment grew 82% over
the same period last year.
The number of weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 5% between periods.
VN Revenue Comparison for the Nine Months
Due to the significant impact of acquisition activities on VN revenue
growth, the following tables are presented comparing revenue growth by
market type for the nine month periods ended September 30, 2007 and 2006:
VN Revenue Comparison
by Market Type - # of
All VN Operations Mkts 2007 2006 Change Percent
Newly acquired markets 15 $17,781,877 $- $17,781,877
Markets with in-market
acquisitions 8 13,027,202 7,582,879 5,444,323 71.8%
Acquisition related
markets 23 30,809,080 7,582,879 23,226,200
Markets with no
acquisition impact 24 38,817,638 30,586,436 8,231,202 26.9%
47 $69,626,718 $38,169,315 $31,457,403 82.4%
VN revenues grew approximately $31.5 million between years of which 57%
came from newly acquired markets, 17% came in markets with in-market
acquisitions and 26% came from markets with no acquisition impact.
The following table provides a comparison of revenues related specifically
to the Mederi acquisition (excludes all markets not impacted by the Mederi
acquisition):
VN Markets Impacted # of
by Mederi Mkts 2007 2006 Change
Newly acquired Mederi
markets 13 $11,595,505 $- $11,595,505
Mederi markets
overlapping
Almost Family Markets 7 11,552,911 6,204,023 5,348,888
Mederi related markets 20 $23,148,416 $6,204,023 $16,944,393
Markets with acquisitions not related to Mederi generated $7,660,663 of
revenue in the nine months ended September 30, 2007 as compared to
$1,378,857 in 2006.
Results of operations for the nine-month periods ended September 30,
2007 and 2006 are set forth in the tables below:
September September
2007 2006
Amount % Rev Amount % Rev
Net revenues
Visiting Nurses $69,626,718 72.0% $38,169,315 59.0%
Personal Care 27,089,470 28.0% 26,522,753 41.0%
96,716,188 100.0% $64,692,068 100.0%
Operating income
Visiting Nurses $13,802,152 19.8% $5,810,726 15.2%
Personal Care 2,301,377 8.5% 2,645,209 10.0%
16,103,529 16.7% 8,455,935 13.1%
Unallocated corporate
expenses 6,134,001 6.3% 3,730,420 5.8%
Operating Income 9,969,528 10.3% 4,725,515 7.3%
Interest expense/(income) 650,408 0.7% (94,220) -0.2%
Pre-tax income 9,319,120 9.6% 4,819,735 7.5%
Income taxes 3,711,412 3.8% 1,917,433 3.0%
Net income from
continuing
operations $5,607,708 5.8% $2,902,302 4.5%
Income (loss) from
discontinued operations,
net of tax (73,435) (140,572)
Net income $5,534,273 5.7% $2,761,730 4.3%
Diluted earnings per share
Diluted shares
outstanding (1) 5,607,730 5,325,084
Continuing operations $1.00 $0.55
Discontinued operations (0.01) (0.03)
$0.99 $0.52
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $10,600,267 11.0% $5,516,784 8.5%
Effective tax rate 39.8% 39.8%
Change Change
Amount %
Net revenues
Visiting Nurses $31,457,403 82.4%
Personal Care 566,7171 2.1%
$32,024,120 49.5%
Operating income
Visiting Nurses $7,991,426 137.5%
Personal Care (343,832) -13.0%
7,647,594 90.4%
Unallocated corporate expenses 2,403,581 64.4%
Operating Income 5,244,013 111.0%
Interest expense/(income) 744,628 NM
Pre-tax income 4,499,385 93.4%
Income taxes 1,793,979 93.6%
Net income from continuing operations $2,705,406 93.2%
Income (loss) from discontinued
operations, net of tax 67,137 NM
Net income $2,772,543 100.4%
Diluted earnings per share
Diluted shares outstanding (1) 282,646 5.3%
Continuing operations $0.45 83.5%
Discontinued operations (0.02) NM
$0.47 90.3%
(1) shares adjusted to give effect to 2-for-1 share split completed in
January 2007
Continuing Operations
EBITDA $$5,083,483 92.1%
Effective tax rate 0.0%
Net income including discontinued operations, was $5,534,273 or $0.99
per diluted share in the nine-months ended September 30, 2007 and
$2,761,730 or $0.52 per diluted share in 2006.
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 Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Net income from
continuing operations $1,906,601 $1,045,771 $5,607,708 $2,902,302
Add back:
Interest expense
(income) 153,480 (33,275) 650,408 (94,220)
Income taxes 1,261,360 677,507 3,711,412 1,917,433
Depreciation &
amortization 198,640 259,532 630,739 791,269
Earnings from
continuing
operations Before
Interest, Income
Taxes, Depreciation &
Amortization (EBITDA) $3,520,081 $1,949,535 $10,600,267 $5,516,784
Almost Family, Inc.(TM) 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,
Missouri, Alabama, Illinois and Indiana (in order of revenue significance).
All statements, other than statements of historical facts, included in
this news release, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terminology such
as "may," "will," "expect," "believe," estimate," "project," anticipate,"
"continue," or similar terms, variations of those terms or the negative of
those terms. These forward-looking statements are based on the Company's
current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially 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 Medicare reimbursement for home health services and 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; changes in our relationships with referral sources; the ability
of the Company to integrate acquired 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 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 various filings
with the Securities and Exchange Commission, including its filing on Form
10-K for the year ended December 31, 2006, in particular information under
the headings "Special Caution Regarding Forward-Looking Statements" and
"Risk Factors." The Company undertakes no obligation to update or revise
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 of Almost
Family, Inc., +1-502-891-1000
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