LOUISVILLE, Ky., Nov. 13 /PRNewswire-FirstCall/ --
Almost Family, Inc. (Nasdaq: AFAM) today announced its operating results
for the three and nine-month periods ended September 30, 2002.
Three Month Results
The Company reported net income from continuing operations of $341,127 or
$0.12 per diluted share in the quarter ended September 30, 2002 versus net
income from continuing operations of $647,258 or $0.23 per diluted share in
the quarter ended September 30, 2001. Total net income for the quarter ended
September 30, 2001 included a one-time gain from reversal of a previously
recorded disposal charge. Revenues increased $2.3 million between periods
just over half of which was due to the acquisition of an Ohio-based provider
of home and community-based health care services on July 18, 2002. The
balance of revenue growth was primarily due to increased attendance in the
Company's adult day care centers. Earnings for the September 2002 quarter
were adversely impacted by changes in Medicare and Medicaid reimbursement
rates in the Company's visiting nurse segment, by increased costs of insurance
and by increased staffing costs. Increased insurance related expenses lowered
net income by about $180,000 or $0.08 per share due to costs resulting from
two unusually significant vehicle accidents for which the Company bears
significant self-insurance risk.
The Company filed its Form 10-Q with the Securities and Exchange
Commission today. Please refer to that filing for additional information.
"Our industry is currently in a situation in which reimbursement trends
and cost trends are working in opposite directions. We have experienced cuts
in Medicare and Medicaid reimbursement rates in certain parts of our business,
and in other parts rate increases have not kept pace with our increase in
costs. We have been in this business long enough to know that this is part of
the cyclical nature of health care. We are hopeful that Congress will soon
address the legislation proposed in the previous session to correct the cut in
Medicare rates which amount to over 5% of our visiting nurse segment Medicare
revenues," said William B. Yarmuth, AFAM's Chairman and CEO, adding: "We
continue to take all the actions we can to address our operating costs and to
attract additional sales volumes to help offset some of the less controllable
reimbursement and cost-side issues."
Results of operations for the three months ended September 30, 2002 and
2001 are set forth in the table below:
Consolidated 2002 2001 (1) Change
Amount % Rev Amount % Re Amount %
Net Revenues ADHS $15,164,663 69.2% $12,802,771 65.1% $2,361,892 18.4%
VN 6,744,143 30.8% 6,860,474 34.9% (116,331) -1.7%
$21,908,806 100.0% $19,663,245 100.0% $2,245,561 11.4%
Operating
Income ADHS $ 790,213 5.2% $ 872,756 6.8% $ (82,543) -9.5%
VN 610,074 9.1% 1,024,864 14.9% (414,790) -40.5%
1,400,287 6.4% 1,897,620 9.7% (497,333) -26.2%
Unallocated
corporate
expenses 618,823 2.8% 508,617 2.6% 110,206 21.7%
EBIT 781,464 3.6% 1,389,003 7.1% (607,539) -43.7%
Interest
expense 212,111 1.0% 226,489 1.2% (14,378) -6.3%
Income taxes 228,226 1.0% 488,256 2.5% (260,030) -53.3%
Net from
continuing
operations $ 341,127 1.6% $ 674,258 3.4% $(333,131) -49.4%
Gain from reversal
of previously
recorded disposal
charge, net of
taxes -- 1,087,350 NM NM
Net income $ 341,127 1.6% $1,761,608 NM NM NM
Net income per
share:
Basic:
Weighted average
shares 2,397,563 2,486,720 (89,157) -3.5%
Continuing
operations $ 0.14 $ 0.27 $ (0.13) -48.1%
Net income $ 0.14 $ 0.44 $ (0.30) NM
Net income per
share:
Diluted:
Weighted average
shares 2,812,119 2,954,975 (142,856) -4.8%
Continuing
operations $ 0.12 $ 0.23 $ (0.11) -48.1%
Net income $ 0.12 $ 0.60 $ (0.48) NM
EBITDA (2) $1,352,018 6.2% $1,802,119 9.2% $ (450,101) -25.0%
Effective Tax
Rate 40% 42% (2%)
(1) Where appropriate, amounts for these periods have been restated and
reclassified as discussed in the Company's Form 10-K for the nine-
months ended December 31, 2001.
(2) Earnings before interest, taxes, depreciation and amortization from
continuing operations.
Nine-Month Results
Results of operations for the nine months ended September 30, 2002 and
2001 are set forth in the table below:
Consolidated 2002 2001 (1) Change
Amount %Rev Amount %Rev Amount % Rev
Net Revenues ADHS $42,032,355 66.4% $38,095,476 65.1% $3,936,879 10.3%
VN 21,270,419 33.6% 20,394,267 34.9% 876,152 4.3%
63,302,774 100.0% 58,489,743 100.0% 4,813,031 8.2%
Operating ADHS 2,067,276 4.9% 2,803,332 7.4% (736,056) -26.3%
Income VN 2,768,396 13.0% 2,483,003 12.2% 285,393 11.5%
4,835,672 7.6% 5,286,336 9.0% (450,663) -8.5%
Unallocated
corporate
expenses 2,609,101 4.1% 1,413,164 2.4% 1,195,937 84.6%
EBIT 2,226,571 3.5% 3,873,171 6.6%(1,646,600) -42.5%
Interest
expense 612,063 1.0% 641,475 1.1% (29,412) -4.6%
Income taxes 646,288 1.0% 1,398,125 2.4% (751,837) -53.8%
Net from
continuing
operations $ 968,220 1.5% $ 1,833,571 3.1% $(865,351) -47.2%
Gain from reversal of
previously
recorded disposal
charge, net of
taxes -- 1,087,350 NM NM
Net income $ 968,220 1.6% $ 2,920,921 NM NM NM
Net income per
share:
Basic:
Weighted
average
shares 2,464,858 2,496,026 (31,168) -1.2%
Continuing
operations $ 0.39 $ 0.73 $ (0.34) -46.6%
Net income $ 0.39 $ 1.17 $ (0.78) NM
Net income per
share:
Diluted:
Weighted
average
shares 2,913,739 2,916,231 (2,492) --%
Continuing
operations $0.33 $0.63 $ (0.30) -47.6%
Net income $0.33 $1.00 $ (0.67) NM
EBITDA (2) $ 3,850,145 6.1% $4,972,348 8.5% $(1,122,203) -22.6%
Effective Tax
Rate 40% 43% (3%)
(1) Where appropriate, amounts for these periods have been restated and
reclassified as discussed in the Company's Form 10-K for the nine-
months ended December 31, 2001.
(2) Earnings before interest, taxes, depreciation and amortization from
continuing operations.
Unallocated corporate expenses in the nine months ended September 30, 2002
include approximately $816,000, consisting primarily of professional fees,
related to the cost of conducting the investigation into the restatement of
the Company's financial statements as previously discussed. There can be no
assurance that additional costs will not be incurred in subsequent periods.
Almost Family, Inc. is a health services company providing adult day
health care services (ADHS) 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 visiting nurse
(VN) 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, the Company's ability to better control its costs,
expected trends in medical costs, the Company's ability to operate profitably
under Medicare PPS with lower rates, 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 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 nine-months
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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