LOUISVILLE, Ky., Nov. 5 /PRNewswire-FirstCall/ --
Recent Corporate Highlights:
-- Net service revenues increased 84% to $58.7 million
-- Visiting Nurse (VN) segment net revenues rose 113% to $48.6 million
-- Net income increased 149% to $4.7 million
-- Diluted EPS increased 65% to $0.56 per diluted share on 49% more shares
-- Completed acquisition of Patient Care for $45.2 million
-- Achieved top-25 ranking on Forbes' 200 Best Small Companies List
Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home
health nursing services, announced today its financial results for the three
months and nine months ended September 30, 2008.
William B. Yarmuth, Chairman and CEO, commented, "We're pleased to once
again report record operating results validating our strategy and business
plan. More than a double in VN segment revenue over the same quarter of last
year and a 44% organic Medicare revenue growth rate provide strong evidence
that we are on the right track and positioned well for the future. Our
disciplined operating model, our thoughtful and deliberate approach to
acquisitions and our commitment to our Senior Advocacy mission are all
combining to generate an exceptional level of performance."
Third Quarter Financial Results
Almost Family reported third quarter 2008 net service revenues of $58.7
million, an 84% increase from $32 million in the third quarter of 2007.
Operating income for the third quarter of 2008 increased to 13% of net service
revenues versus 11% for the third quarter of 2007.
Net income for the third quarter of 2008 increased almost 150% to $4.7
million, or $0.56 per diluted share, compared to $1.9 million, or $0.34 per
diluted share, in the third quarter of 2007. The weighted average shares
outstanding for purposes of calculating diluted earnings per share increased
49% between periods.
Third Quarter Segment Results
Net revenues in the Visiting Nurse segment for the third quarter of 2008
were $48.6 million, a 113% increase from $22.9 million in the third quarter of
2007. The total revenue growth of $25.7 million came from a 44% organic
growth rate plus $15.7 million from acquired operations. The Patient Care
acquisition completed on August 1st was in the quarter for 2 months and
contributed about $7.6 million in revenue. Operating income before corporate
expense in the VN segment for the third quarter 2008 was $10.0 million, a 130%
increase from $4.3 million in the third quarter 2007.
Net revenues in the Personal Care (PC) segment for the third quarter of
2008 were $10.1 million, an 11% increase from $9.1 million in the third
quarter of 2007. Operating income before corporate expense in the PC segment
for the third quarter of 2008 was $914,000.
Nine Month Period Ended September 30, 2008
Almost Family reported net service revenues for the nine month period
ended September 30, 2008 of $146.4 million, a 52% increase from $96.3 million
in the same period last year. Operating income for the nine month period
increased to 13% of net service revenues versus 11% for the prior year period.
Net income for the nine month period was $11.1 million, or $1.52 per
diluted share, compared to $5.5 million, or $0.99 per diluted share, in the
prior year period. The weighted average shares outstanding for purposes of
calculating diluted earnings per share increased 30% between periods.
Nine Month Period Segment Results
Net revenues in the Visiting Nurse (VN) segment for the nine month period
of 2008 were $117.3 million, a 69% increase from $69.4 million in the same
period last year. The total revenue growth of $47.9 million came from a 31%
organic growth rate plus $26.3 million from acquired operations. The Patient
Care acquisition contributed about $7.6 million in revenue. Operating income
before corporate expense in the VN segment for the nine month period was $24.0
million, an 82% increase from $13.2 million in the same period last year.
Net revenues in the Personal Care (PC) segment for the nine month period
were $29.1 million, an 8% increase from $26.9 million in the same period last
year. Operating income before corporate expense in the PC segment for the
nine month period was $2.5 million, a 6% decrease from $2.6 million in the
same period last year.
Recent Corporate Developments
On July 16, 2008, Almost Family established a new senior secured multi-
bank credit facility that replaced its previous facility and provides for up
to $75 million in borrowings with a maturity date of July 2011.
On August 1, 2008, Almost Family completed the acquisition of Patient Care
for $45.2 million, subject to a working capital adjustment. The acquisition
was previously under a definitive agreement signed on June 18, 2008. The
acquisition added $47 million in annual revenues and eight locations in New
Jersey, Connecticut, and Pennsylvania. Due to the transition, wind down costs
and the timing of the close, the acquisition is not expected to contribute
significantly to earnings in 2008 but is expected to be accretive to EPS in
2009.
On October 14, 2008, Almost Family announced that it had been ranked No.
24 in Forbes' 2008 listing of the 200 Best Small Companies in America, rising
from its No. 77 ranking in 2007.
Today, November 5, 2008 Almost Family expects to file with the Securities
and Exchange Commission a shelf registration statement on Form S-3 which, when
declared effective by the SEC, will increase the amount of capital it could
raise from approximately $30 million to $150 million to provide financing
flexibility for development plans.
The registration statement on Form S-3 has not yet become effective.
Securities may not be sold nor may offers to buy be accepted prior to the time
that the registration statement becomes effective. This news release does not
constitute an offer to sell, or the solicitation of an offer to buy
securities, nor shall there be any sale of securities in any state in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification of the securities under the securities laws of that state.
Conference Call
A conference call to review the results will begin today at 11:00 a.m. ET
and will be hosted by William B. Yarmuth, President and Chief Executive
Officer, and Steve Guenthner, Senior Vice President and Chief Financial
Officer. To participate in the conference call, please dial 1-877-407-0789
(USA) or 1-201-689-8562 (International). In addition, a dial-up replay of the
conference call will be available beginning today at 12:00 p.m. ET and ending
on November 17, 2008. The replay telephone number is 1-877-660-6853 (USA) or
1-201-612-7415 (International) along with the account number 3055 and
conference ID 300518.
A live webcast of the call will also be available from the Investor
Relations section on the corporate web site athttp://www.almostfamily.com. A
webcast replay can be accessed on the corporate web site beginning November 5,
2008 at approximately 12:00 p.m. ET and will remain available until December
5, 2008.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended September 30,
2008 2007
Net service revenues $58,705,671 $31,970,989
Cost of service revenue 27,129,332 15,655,619
Gross margin 31,576,339 16,315,370
General and administrative expenses:
Salaries and benefits 16,400,590 8,864,823
Other 7,367,422 4,079,996
Total general and administrative expenses 23,768,012 12,944,819
Operating income 7,808,327 3,370,551
Interest expense, net (355,077) (153,480)
Income from continuing operations before
income taxes 7,453,251 3,217,071
Income tax expense (2,729,479) (1,261,360)
Net income from continuing operations 4,723,772 1,955,711
Discontinued operations, net of tax of
$12,759 and $10,810 (19,015) (69,647)
Net income $4,704,756 $1,886,064
Per share amounts-basic:
Average shares outstanding 8,137,326 5,434,954
Income from continued operations $0.58 $0.36
Loss from discontinued operations - (0.01)
Net income $0.58 $0.35
Per share amounts-diluted:
Average shares outstanding 8,357,332 5,614,342
Income from continued operations $0.57 $0.35
Loss from discontinued operations (0.01) (0.01)
Net income $0.56 $0.34
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Nine months ended September 30,
2008 2007
Net service revenues $146,432,996 $96,253,670
Cost of service revenue 68,531,881 46,634,840
Gross margin 77,901,115 49,618,831
General and administrative expenses:
Salaries and benefits 39,941,445 26,546,476
Other 19,031,652 12,966,063
Total general and administrative expenses 58,973,097 39,512,539
Operating income 18,928,018 10,106,292
Interest expense, net (733,833) (650,408)
Income from continuing operations before
income taxes 18,194,185 9,455,885
Income tax expense (6,996,271) (3,711,412)
Net income from continuing operations 11,197,914 5,744,473
Discontinued operations, net of tax of
$63,661 and $45,858 (101,147) (210,995)
Net income $11,096,767 $5,533,478
Per share amounts-basic:
Average shares outstanding 7,111,182 5,412,407
Income from continued operations $1.57 $1.06
Loss from discontinued operations (0.01) (0.04)
Net income $1.56 $1.02
Per share amounts-diluted:
Average shares outstanding 7,298,718 5,602,917
Income from continued operations $1.53 $1.03
Loss from discontinued operations (0.01) (0.04)
Net income $1.52 $0.99
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2008 2007
ASSETS (UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents $735,371 $473,222
Accounts receivable - net 32,488,500 16,965,316
Prepaid expenses and other current assets 2,911,001 1,203,454
Deferred tax assets 3,917,156 1,829,895
TOTAL CURRENT ASSETS 40,052,028 20,471,887
PROPERTY AND EQUIPMENT - NET 3,639,214 1,458,844
GOODWILL 95,669,941 42,667,244
OTHER INTANGIBLE ASSETS 10,020,329 2,488,056
DEFERRED TAX ASSETS 1,799,211 -
OTHER ASSETS 510,403 274,359
TOTAL ASSETS $151,691,126 $67,360,390
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $4,191,074 $3,943,555
Accrued other liabilities 21,439,092 10,369,346
Current portion - capital leases and
notes payable 5,342,563 653,891
TOTAL CURRENT LIABILITIES 30,972,729 14,966,792
LONG-TERM LIABILITIES:
Revolving credit facility 26,484,594 12,386,783
Capital Lease Obligations 286,406 -
Notes payable 3,000,000 4,000,000
Long-term deferred tax liabilities - 776,672
Other liabilities 1,521,368 388,230
TOTAL LONG-TERM LIABILITIES 31,292,368 17,551,685
TOTAL LIABILITIES 62,265,097 32,518,477
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.05; authorized
2,000,000 shares; none issued or outstanding - -
Common stock, par value $0.10; authorized
10,000,000 shares; 8,139,002 and 7,808,819
issued and outstanding 813,900 780,882
Treasury stock, at cost, 2,276,898 shares - (8,877,641)
Additional paid-in capital 64,775,360 30,198,671
Retained earnings 23,836,769 12,740,001
TOTAL STOCKHOLDERS' EQUITY 89,426,029 34,841,913
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $151,691,126 $67,360,390
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine months ended September 30,
2008 2007
Cash flows from operating activities:
Net income $11,096,767 $5,533,478
Loss from discontinued operations (101,147) (210,995)
Income from continuing operations 11,197,914 5,744,473
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 1,151,895 625,700
Provision for uncollectible accounts 2,377,991 795,593
Stock-based compensation 527,462 332,868
Deferred income taxes (1,152,716) 833,316
14,102,546 8,331,950
Change in certain net current assets, net
of the effects of acquisitions:
(Increase) decrease in:
Accounts receivable (11,622,049) (1,602,214)
Prepaid expenses and other current assets (789,821) (491,051)
Other assets (26,455) (34,697)
Increase (decrease) in:
Accounts payable and accrued expenses 2,057,893 100,403
Net cash provided by operating activities 3,722,114 6,304,391
Cash flows from investing activities:
Capital expenditures (622,168) (504,451)
Acquisitions, net of cash acquired (58,593,323) (542,348)
Net cash used in investing activities (59,215,491) (1,046,799)
Cash flows from financing activities:
Net revolving credit facility repayments 14,096,873 (4,426,462)
Proceeds from stock option exercises 54,876 107,187
Purchase of common stock in connection
with option exercises - (3,804,883)
Tax benefit from non-qualified stock
option exercises 84,448 704,294
Proceeds from stock offering 41,820,562 -
Principal payments on capital leases and
notes payable (200,086) (1,160,623)
Net cash provided by (used in) financing
activities 55,856,673 (8,580,487)
Cash flows from discontinued operations
Operating activities (101,147) (210,995)
Investing activities - -
Financing activities - -
Net cash used in discontinued operations (101,147) (210,995)
Net increase (decrease) in cash and cash
equivalents 262,149 (3,533,890)
Cash and cash equivalents at beginning of
period 473,222 4,125,592
Cash and cash equivalents at end of period $735,371 $591,702
Summary of non-cash investing and financing
activities:
Acquisitions funded by notes payable $3,000,000 $-
Acquisitions funded by stock $1,000,000 $-
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Three months ended September 30,
2008 2007 Change
% %
Amount Rev Amount Rev Amount %
Net revenues
Visiting Nurse $48,621,039 82.8% $22,879,921 71.6% $25,741,118 112.5%
Personal Care 10,084,632 17.2% 9,091,068 28.4% 993,564 10.9%
58,705,671 100.0% 31,970,989 100.0% 26,734,682 83.6%
Operating income
Visiting Nurse 9,999,970 20.6% 4,345,349 19.0% 5,654,621 130.1%
Personal Care 914,460 9.1% 911,438 10.0% 3,022 0.3%
Operating income
before unallocated
corporate
expenses 10,914,430 18.6% 5,256,786 16.4% 5,657,643 107.6%
Corporate expenses 3,106,103 5.3% 1,886,235 5.9% 1,219,867 64.7%
Operating income 7,808,327 13.3% 3,370,551 10.5% 4,437,776 131.7%
Interest expense,
net (355,077) 0.6% (153,480) 0.5% 201,597 131.4%
Income taxes (2,729,479) 4.6% (1,261,360) 3.9% 1,468,119 116.4%
Net income from
continuing
operations $4,723,772 8.0% $1,955,711 6.1% $2,768,060 141.5%
EBITDA from
continuing
operations $8,512,002 14.5% $3,697,860 11.6% $4,814,141 130.2%
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Nine months ended September 30,
2008 2007 Change
% %
Amount Rev Amount Rev Amount %
Net revenues
Visiting Nurse $117,317,206 80.1% $69,388,234 72.1% $47,928,972 69.1%
Personal Care 29,115,790 19.9% 26,865,436 27.9% 2,250,354 8.4%
146,432,996 100.0% 96,253,670 100.0% 50,179,326 52.1%
Operating income
Visiting Nurse 24,037,766 20.5% 13,226,706 19.1% 10,811,060 81.7%
Personal Care 2,479,941 8.5% 2,625,454 9.8% (145,512) -5.5%
Operating income
before unallocated
corporate
expenses 26,517,707 18.1% 15,852,160 16.5% 10,665,547 67.3%
Corporate expenses 7,589,689 5.2% 5,745,868 6.0% 1,843,822 32.1%
Operating income 18,928,018 12.9% 10,106,292 10.5% 8,821,726 87.3%
Interest expense,
net (733,833) 0.5% (650,408) 0.7% 83,426 12.8%
Income taxes (6,996,271) 4.8% (3,711,412) 3.9% 3,284,859 88.5%
Net income from
continuing
operations $11,197,914 7.6% $5,744,473 6.0% $5,453,440 94.9%
EBITDA from
continuing
operations $20,607,374 14.1% $11,064,861 11.5% $9,542,513 86.2%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Three months ended September 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 62 46 16 34.8%
All payors:
Admissions 10,321 6,951 3,370 48.5%
Billable Visits 304,519 145,009 159,510 110.0%
Medicare Statistics:
Revenue $43,371,820 $21,012,932 $22,358,888 106.4%
Percentage of total
revenues 89.2% 91.8%
Billable Visits 261,423 131,710 129,713 98.5%
Admissions 9,475 6,161 3,314 53.8%
Episodes 14,558 7,972 6,586 82.6%
Revenue per episode $2,926 $2,638 $287 10.9%
Visits per episode 17.4 16.3 1.1 7.0%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Three months ended September 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 23 23 - -
Admissions 883 957 (74) -7.7%
Patient Days of Care 140,021 131,035 8,986 6.9%
Billable Hours 560,332 508,829 51,503 10.1%
Revenue per billable hours $18.00 $17.87 $0.13 0.7%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Nine months ended September 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 57 47 10 21.3%
All payors:
Admissions 28,131 21,767 6,364 29.2%
Billable Visits 732,654 431,626 301,028 69.7%
Medicare Statistics:
Revenue $107,769,437 $64,274,490 $43,494,947 67.7%
Percentage of total
revenues 91.9% 92.6%
Billable Visits 654,539 392,074 262,465 66.9%
Admissions 25,698 19,536 6,162 31.5%
Episodes 37,397 24,166 13,231 54.7%
Revenue per episode $2,832 $2,613 $219 8.4%
Visits per episode 18.7 17.5 1.1 6.5%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Nine months ended September 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 23 23 - -
Admissions 2,801 2,775 26 0.9%
Patient Days of Care 416,670 392,315 24,355 6.2%
Billable Hours 1,645,112 1,523,883 121,229 8.0%
Revenue per billable hours $17.70 $17.63 $0.07 0.4%
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 certain covenants
contained in our credit agreement.
The following tables set forth a reconciliation of Continuing Operations
Net Income to EBITDA:
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
RECONCILIATION OF EBITDA: Three months ended September 30,
2008 2007
Net income from continuing operations $4,723,772 $1,955,711
Add back:
Interest expense 355,077 153,480
Income taxes 2,729,479 1,261,360
Depreciation and amortization 509,545 196,812
Amortization of stock-based compensation 194,130 130,497
Earnings before interest, income taxes,
depreciation and amortization (EBITDA)
from continuing operation $8,512,002 $3,697,860
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
RECONCILIATION OF EBITDA: Nine months ended September 30,
2008 2007
Net income from continuing operations $11,197,914 $5,744,473
Add back:
Interest expense 733,833 650,408
Income taxes 6,996,271 3,711,412
Depreciation and amortization 1,151,895 625,700
Amortization of stock-based compensation 527,462 332,868
Earnings before interest, income taxes,
depreciation and amortization (EBITDA)
from continuing operations $20,607,374 $11,064,861
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations in Florida, Kentucky,
Connecticut, New Jersey, Ohio, Massachusetts, Alabama, Missouri, Illinois,
Pennsylvania, and Indiana (in order of revenue significance). Almost Family,
Inc. and its subsidiaries operate a Medicare-certified segment and a personal
care segment. Altogether, Almost Family operates over 90 branch locations in
11 U.S. states.
Forward Looking Statements
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; the Company's self-insurance risks, and significant deterioration in
economic conditions and significant market volatility. 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, 2007, 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.
