LOUISVILLE, Ky., Nov. 14 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced the following news items:
* For the quarter ended September 30, 2005, the Company reported earnings
from continuing operations per diluted share of $0.15 as compared to
$0.10 for the quarter ended September 30, 2004.
* The Company reported a gain of $1.90 per diluted share on the previously
announced sale of its adult day care segment.
* In a separate release, the Company announced the acquisition of a St.
Augustine FL based home health agency, the Company's fourth such
acquisition since October 2004.
* Also in a separate report on Form 8-K filed today with the SEC, the
Company has reported the amendment of its previously filed 2004 Form
10-K. The amendment follows a routine review of the filing by the SEC
Staff after which the Company was asked to reconsider its accounting for
certain contingent liability matters. The revisions to the report are
non-cash and relate to previously disclosed matters arising in 2003 and
prior fiscal years. Refer to the Form 8-K and related Form 10-K/A
amendment also filed today for additional information.
Quarterly Earnings Release
Net income from continuing operations grew 54% to $397,457 or $0.15 per
diluted share for the September 2005 quarter as compared to $258,537 or $0.10
per diluted share in the September 2004 quarter. Revenues grew 15% to $18.5
million in the September 2005 quarter from $16 million in the September 2004
quarter.
Net Income including discontinued operations, was $5,378,860 or $2.04 per
diluted share including a gain on the sale of the adult day care segment of
$5,003,485 in the quarter ended September 30, 2005 and $404,628 or $0.16 per
diluted share in 2004.
Revenues in the Company's Caretenders Visiting Nurse (VN) segment grew 28%
over the same period last year. The April 1, 2005 acquisition of a Bradenton,
FL VN agency added approximately $900,000 in revenues and $95,000 in net
income or $0.04 per diluted share to operating results in the September 2005
quarter. Net income from continuing operations for the September 2005 quarter
included net of tax operating losses of $32,000 or $0.01 per diluted share
related to VN startup operations opened or acquired late in 2004 and first
quarter 2005. Related revenues were approximately $830,000.
William B. Yarmuth, AFAM's Chairman and CEO commented on the quarterly
results: "We are pleased with our operating results for this quarter which is
seasonally our lowest performing quarter. Our VN segment operations generated
28% revenue growth on an overall basis, primarily due to our acquisition and
startup activities. The completion of the ADC sale, along with the large gain
on the sale, and the substantial amount of cash received will enable us to
improve our focus on our strategic growth objectives. The acquisition of the
St. Augustine agency provides early evidence of that improved focus. Our
development activities have created a nice pipeline of acquisition
opportunities and we expect to bring additional transactions to fruition over
the course of the next year."
Results of operations for the quarters ended September 30, 2005 and 2004
are set forth in the tables below:
September September
2005 2004 Change
Amount %Rev Amount %Rev Amount %
Net Revenues
Home Health Care
Visiting
Nurses $9,663,903 52.2% $7,555,941 47.1% $2,107,962 27.9%
Personal Care 8,844,469 47.8% 8,479,334 52.9% 365,135 4.3%
$18,508,372 100.0% $16,035,275 100.0% $2,473,097 15.4%
Operating Income
Home Health Care
Visiting
Nurses $1,025,828 5.5% $1,022,014 6.4% $3,814 0.4%
Personal Care 956,935 5.2% 720,146 4.5% 236,790 32.8%
1,982,763 10.7% 1,742,160 10.9% 240,604 13.8%
Unallocated Corp
Expenses 1,265,261 6.8% 1,237,166 7.7% 28,095 2.2%
717,503 3.9% 504,994 3.1% 212,509 42.1%
Interest Expense 70,178 0.4% 67,475 0.4% 2,704 4.0%
Pre-Tax Income 647,324 3.5% 437,519 2.7% 209,805 48.0%
Income Taxes 249,867 1.4% 178,982 1.1% 70,885 39.6%
Net Income from
Continuing
Operations $397,457 2.1% $258,537 1.6% $138,920 53.7%
Income (loss) from
discontinued
operations,
net of tax (22,082) 146,091 (168,174) -115.1%
Gain on sale,
net of tax 5,003,485 -- 5,003,485 NM
Net Income $5,378,860 $404,628 $4,974,233 NM
Diluted Earnings
Per Share
Diluted Shares
Outstanding 2,639,214 2,555,930 83,284 3.3%
Continuing
Operations $0.15 $0.10 $0.05 48.9%
Discontinued
Operations (0.01) 0.06 (0.07) -116.7%
Gain on Sale 1.90 -- 1.90 NM
$2.04 $0.16 $1.88 NM
Continuing
Operations:
EBITDA $1,054,025 $856,044 $197,981 23.1%
Effective Tax
Rate 38.6% 40.9% (2.3%)
Year to Date Results
Net income from continuing operations grew 28% to $1,603,766 or $0.61 per
diluted share for the nine months ended September 2005 as compared to
$1,257,453 or $0.49 per diluted share in the nine months ended September 2004.
Revenues grew 15% to $56.2 million in the nine months ended September 2005
from $48.8 million in the nine months ended September 2004.
Net Income including discontinued operations, was $6,385,432 or $2.43 per
diluted share including a gain on the sale of the adult day care segment of
$5,003,485 in the nine months ended September 30, 2005 and $1,100,779 or $0.43
per diluted share in 2004.
Revenues in the VN segment grew 24% over the same period last year. The
April 1, 2005 acquisition of a Bradenton, FL VN agency added approximately
$1.9 million in revenues and $227,000 in net income or $0.09 per diluted share
to operating results for the nine months ended September 2005. Net income
from continuing operations for the nine months ended September 2005 included
net of tax operating losses of $279,000 or $0.11 per diluted share related to
VN startup operations opened or acquired late in 2004 and first quarter 2005.
Related revenues were approximately $1.7 million.
Results of operations for the nine months ended September 30, 2005 and
2004 are set forth in the tables below:
September September
2005 2004 Change
Amount %Rev Amount %Rev Amount %
Net Revenues
Home Health Care
Visiting
Nurses $29,637,290 52.7% $24,005,398 49.1% $5,631,892 23.5%
Personal Care 26,606,276 47.3% 24,869,853 50.9% 1,736,423 7.0%
$56,243,566 100.0% $48,875,251 100.0% 7,368,315 15.1%
Operating Income
Home Health Care
Visiting
Nurses $4,344,796 7.7% $4,168,904 8.5% $175,892 4.2%
Personal Care 2,691,656 4.8% 1,968,745 4.0% 722,911 36.7%
7,036,452 12.5% 6,137,649 12.6% 898,803 14.6%
Unallocated Corp
Expenses 4,235,415 7.5% 3,786,727 7.7% 448,688 11.8%
2,801,037 5.0% 2,350,922 4.8% 450,115 19.1%
Interest Expense 182,041 0.3% 244,115 0.5% (62,074) -25.4%
Pre-Tax Income 2,618,996 4.7% 2,106,807 4.3% 512,189 24.3%
Income Taxes 1,015,230 1.8% 849,354 1.7% 165,876 19.5%
Net Income from
Continuing
Operations $1,603,766 2.9% $1,257,453 2.6% $346,313 27.5%
Income (loss) from
discontinued
operations,
net of tax (221,819) (156,674) (65,146) 41.6%
Gain on Sale 5,003,485 -- 5,003,485 NM
Net Income $6,385,432 $1,100,779 $5,284,653 NM
Diluted Earnings
Per Share
Diluted Shares
Outstanding 2,629,386 2,553,450 75,471 3.0%
Continuing
Operations $0.61 $0.49 $0.12 23.9%
Discontinued
Operations (0.08) (0.06) (0.02) 22.8%
Gain on Sale 1.90 -- 1.90 NM
$2.43 $0.43 $2.00 NM
Continuing
Operations:
EBITDA $3,782,607 $3,379,927 $402,680 11.9%
Effective Tax
Rate 38.8% 40.3% (1.6%)
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 net income to EBITDA:
Quarter Ended September 30,
2005 2004
Net Income from continuing operations $397,457 $258,537
Add Back:
Interest Expense 70,179 67,475
Income Taxes 249,867 178,982
Depreciation & Amortization 336,531 351,050
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA)
from continuing operations $1,054,034 $856,044
Nine Months Ended September 30,
2005 2004
Net Income from continuing operations $1,603,766 $ 1,257,453
Add Back:
Interest Expense 182,041 244,115
Income Taxes 1,015,230 849,354
Depreciation & Amortization 981,570 1,029,005
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA)
from continuing operations $3,782,607 $3,379,927
Gain on Sale of ADC Segment and Reclassification of ADC Operations
On September 30, 2005 the Company completed the previously announced sale
of its ADC operating segment for $13.6 million in cash plus assumption of
certain liabilities. The transaction resulted in the reporting of an after
tax gain of approximately $5 million or $1.90 per diluted share reported in
the quarter and nine month periods ended September 30, 2005. The reported
gain is subject to change following the completion of the final purchase price
adjustment between the parties and potentially further refinement of the
estimated income tax provision by the end of the Company's fiscal year.
As of September 30, 2005, the Company's balance sheet reflects cash of
approximately $10 million ($1 million restricted) of which approximately $5
million will be used to fund retained liabilities (primarily income taxes)
related to the transactions. The Company expects the balance of the retained
liabilities to be less than $1 million as December 31, 2005.
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, Alabama and
Indiana (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
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/A for the year ended December 31,
2004, 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, both of
Almost Family, Inc., +1-502-891-1000
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