LOUISVILLE, Ky., Nov. 14 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the three month and
nine month periods ended September 30, 2003. Additionally, the Company
announced that it has been awarded a $2.8 million two-year adult day care
demonstration project by the state of Florida.
The Company filed its Form 10-Q with the Securities and Exchange
Commission today. Please refer to that filing for additional information. In
the information that follows "ADHS" refers to the Company's Adult Day Health
Services segment and "VN" refers to the Company's Visiting Nurse segment.
Results of operations for the three months ended September 30, 2003 and
2002 are set forth in the table below:
Consolidated 2003 2002 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
ADHS $14,729,433 68.0% $15,164,663 69.2% $(435,230) -2.9%
VN 6,920,324 32.0% 6,744,143 30.8% 176,181 2.6%
$21,649,757 100.0% $21,908,806 100.0% $(259,049) -1.2%
Operating Income
ADHS $779,380 5.3% $756,841 5.0% $22,539 3.0%
VN 417,445 6.0% 617,711 9.2% (200,266) -32.4%
1,196,825 5.5% 1,374,552 6.3% (177,727) -13.0%
Unallocated
corporate
expenses 569,331 2.6% 593,088 2.7% (23,757) -4.0%
Income before
interest and
taxes 627,494 2.9% 781,464 3.6% (153,970) -19.7%
Interest expense 155,250 0.7% 212,111 1.0% (56,861) -26.8%
Income taxes 188,898 0.9% 228,226 1.0% (39,328) -17.2%
Net income $283,346 1.3% $341,127 1.6% (57,781) -17.0%
Earnings per share:
Basic $0.12 $0.14 $(0.02) -14.3%
Diluted $ 0.11 $0.12 $(0.01) -8.3%
Weighted average
shares outstanding
Basic 2,296,527 2,397,563 (101,036) -4.2%
Diluted 2,555,081 2,812,119 (257,038) -9.1%
Results for the Quarter
William B. Yarmuth, Chairman and CEO commented on the Company's results
for the quarter: "The current reimbursement environment remains difficult but
we continue our efforts to improve profitability. We are pleased to report
that our ADHS segment has achieved its first favorable comparison in several
quarters reflecting the positive steps we have taken to reduce operating costs
in the face of declining Medicaid unit sales. Our VN segment continues to
achieve strong growth in admissions which has helped us to partially offset
Medicare rate cuts that amounted to over $430,000 in revenue and pre-tax
income."
Florida ADC Demonstration Project
The Company also announced that it has been awarded a $2.8 million two-
year adult day care demonstration project by the state of Florida. "We are
very excited that the state of Florida has awarded this very important project
to Almost Family after a competitive bidding process. We believe the award
recognizes our position as the market leader in adult day care and we are very
happy to partner with Florida to demonstrate the cost effectiveness of adult
day care as an alternative to nursing home placement. We plan to fulfill the
contract by taking care of patients in our Fort Myers and Palm Beach day
centers. We are confident that the project will demonstrate that state
spending will be significantly lower on these patients than if they were
institutionalized," said Yarmuth. The Company noted that it expects the
contract to begin to produce revenue in the first quarter of 2004.
Nine Month Results
Results of operations for the nine months ended September 30, 2003 and
2002 are set forth in the table below:
Consolidated 2003 2002 Change
Amount % Rev Amount % Rev Amount %
Net Revenues
ADHS $43,141,091 66.4% $42,032,355 66.4% $1,108,736 2.6%
VN 21,862,873 33.6% 21,270,419 33.6% 592,454 2.8%
$65,003,964 100.0% $63,302,774 100.0% $1,701,190 2.7%
Operating Income
ADHS $1,446,404 3.4% $1,968,155 4.7% $(521,751) -26.5%
VN 2,424,460 11.1% 2,776,033 13.1% (351,573) -12.7%
3,870,864 6.0% 4,744,188 7.5% (873,324) -18.4%
Unallocated
corporate
expenses 1,686,036 2.6% 2,517,617 4.0% (831,581) -33.0%
Income before
interest
and taxes 2,184,828 3.4% 2,226,571 3.5% (41,743) -1.9%
Interest expense 499,037 0.8% 612,063 1.0% (113,026) -18.5%
Income taxes 674,317 1.0% 646,288 1.0% 28,029 4.3%
Net income $1,011,474 1.6% $968,220 1.5% $43,254 4.5%
Earnings per share:
Basic $0.44 $0.39 $0.05 12.8%
Diluted $0.40 $0.33 $0.07 21.2%
Weighted average
shares outstanding
Basic 2,294,182 2,464,858 (170,676) - 6.9%
Diluted 2,524,060 2,913,739 (389,679) -13.4%
As reported in the quarter ended March 31, 2003, decreased attendance in
the Company's adult day care centers directly related to snow and ice,
particularly during the month of February 2003, reduced net income by
approximately $0.05 per diluted share. As described above for the quarter,
earnings for the nine months ended September 2003 were also adversely impacted
by changes in Medicare and Medicaid reimbursement rates but were favorably
impacted by the acquisition of Medlink Ohio personal care operations in July
2002.
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 disclosed.
Almost Family, Inc. is a health services company providing adult day
health care services 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 Medicare-certified home
health agencies under the trade name "Caretender(TM)." The Company has
operations in Alabama, Connecticut, Florida, Indiana, Kentucky, Maryland,
Massachusetts, and Ohio.
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
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,
the Company's ability to operate profitably under lower operating costs in
response to Medicaid reimbursement changes, expectations for the long-term
outlook for Medicaid reimbursement, expectations concerning the Florida ADC
demonstration project 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 Medicaid reimbursement
due to state budget shortfalls, the ability of the Company to maintain its
level of operating performance, achieve its 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 year ended December 31, 2002, 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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