Published:
Almost Family Reports Record First Quarter 2008 Revenues and Earnings
LOUISVILLE, Ky., May 6 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM), a leading regional provider of home health nursing services,
announced today its financial results for its first quarter 2008 ended March
31, 2008.
William B. Yarmuth, Chairman and CEO, commented, "Our record first quarter
results reflected approximately 17% organic revenue growth and a full quarter
contribution from the Quality of Life acquisition completed in October 2007.
At the end of the quarter, we acquired Apex Home Healthcare that expanded our
presence inNortheast Florida and increased our annual net revenues run rate
to over $150 million. With the stock offering completed in April 2008, we
have approximately $50 million in cash and available borrowings to fund our
growth strategy within the highly fragmented home health agency business."
First Quarter Financial Results
Almost Family reported first quarter 2008 net service revenues of
$39.0 million, a 23% increase from $31.8 million in the first quarter of 2007.
Operating income for the first quarter of 2008 increased to 11% of net service
revenues versus 10% for the first quarter of 2007.
Net income from continuing operations for the first quarter of 2008 was
$2.6 million, or $0.45 per diluted share, compared to $1.8 million, or $0.33
per diluted share, in the first quarter of 2007.
Net income for the first quarter of 2008 was $2.5 million, or $0.44 per
diluted share, compared to $1.7 million, or $0.30 per diluted share, in the
first quarter of 2007. Net income was net of the loss from discontinued
operations, net of taxes, of ($44,000) and ($159,000) for the first quarters
of 2008 and 2007, respectively. The weighted average shares outstanding for
purposes of calculating diluted earnings per share increased 2% between
periods.
First Quarter Segment Results
Net revenues in the Visiting Nurse (VN) segment for the first quarter of
2008 were $29.8 million, a 30% increase from $23.0 million in the first
quarter of 2007. The $6.8 million increase came from a combination of organic
growth of $3.8 million and acquired operations of $3.0 million. The first
quarter 2008 results included a full quarter of results from the Quality of
Life acquisition completed in October 2007 and five days of results from the
Apex Home Healthcare acquisition completed in March 2008. Total Medicare
episodes for the first quarter 2008 were 10,354, a 27% increase from 8,136 in
2007. Operating income before corporate expense in the VN segment for the
first quarter 2008 was $5.9 million, a 30% increase from $4.5 million in the
first quarter 2007.
Net revenues in the Personal Care (PC) segment for the first quarter of
2008 were $9.2 million, a 5% increase from $8.7 million in the first quarter
of 2007. Operating income before corporate expense in the PC segment for the
first quarter of 2008 was $741,000, a 12% increase from $661,000 in the first
quarter of 2007.
Recent Corporate Developments
On March 27, 2008, Almost Family acquired the assets of Apex Home
Healthcare Services, LLC, a Medicare-certified home health agency with
operations inJacksonville andOrmond Beach, FL, for a total purchase price of
$16 million.
On April 16, 2008, Almost Family completed a common stock offering of
2,250,000 shares at $17.75 per share, which generated net proceeds of
$37.3 million. The diluted shares outstanding following the offering are
7,949,506.
Conference Call
A conference call to review the results will begin today at 9:00 a.m. ET
and will be hosted by William 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 11:00 a.m. ET and ending
on May 20, 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 283577.
A live web cast of the call will also be available from the Investor
Relations section on the corporate web site at http://www.almostfamily.com. A
web cast replay can be accessed on the corporate web site beginning May 6,
2008 at approximately 12:00 p.m. ET and will remain available until June 6,
2008.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended March 31,
2008 2007
Net service revenues $39,026,953 $31,773,178
Cost of service revenue 18,622,074 15,437,537
Gross margin 20,404,879 16,335,641
General and administrative expenses
Salaries and benefits 10,552,408 8,845,851
Other 5,403,525 4,269,487
Total general and administrative expenses 15,955,933 13,115,338
Operating income 4,448,946 3,220,303
Interest income (expense), net (208,001) (255,708)
Income from continuing operations
before income taxes 4,240,945 2,964,595
Income tax expense (1,666,335) (1,139,313)
Net income from continuing operations 2,574,610 1,825,282
Discontinued operations, net of tax
of $28,283 and $99,110 (43,684) (158,990)
Net income $2,530,926 $1,666,292
Per share amounts-basic:
Average shares outstanding 5,541,599 5,400,508
Income from continued operations 0.46 0.34
Loss from discontinued operations (0.01) (0.03)
Net income $0.45 $0.31
Per share amounts-diluted:
Average shares outstanding 5,699,506 5,601,807
Income from continued operations 0.45 0.33
Loss from discontinued operations (0.01) (0.03)
Net income $0.44 $0.30
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2008
ASSETS (UNAUDITED) December 31, 2007
CURRENT ASSETS:
Cash and cash equivalents $305,109 $473,222
Accounts receivable - net 24,583,809 16,965,316
Prepaid expenses and other current assets 1,081,972 1,203,454
Deferred tax assets 1,884,354 1,829,895
TOTAL CURRENT ASSETS 27,855,244 20,471,887
PROPERTY AND EQUIPMENT - net 1,877,900 1,458,844
GOODWILL AND OTHER INTANGIBLE ASSETS 58,785,915 45,155,300
OTHER ASSETS 274,974 274,359
TOTAL ASSETS 88,794,033 67,360,390
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 3,179,360 3,943,555
Accrued other liabilities 7,676,347 10,369,346
Current portion - capital leases and
notes payable 625,353 653,891
TOTAL CURRENT LIABILITIES 11,481,060 14,966,792
LONG-TERM LIABILITIES:
Revolving credit facility 30,215,538 12,386,783
Notes payable 7,000,000 4,000,000
Long-term deferred tax liabilities 1,195,131 776,672
Other liabilities 403,423 388,230
TOTAL LONG-TERM LIABILITIES 38,814,092 17,551,685
TOTAL LIABILITIES 50,295,152 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;
7,886,188 and 7,808,819 issued
and outstanding 788,619 780,882
Treasury stock, at cost, 2,276,898 shares (8,877,641) (8,877,641)
Additional paid-in capital 31,316,976 30,198,671
Retained earnings 15,270,927 12,740,001
TOTAL STOCKHOLDERS' EQUITY 38,498,881 34,841,913
$88,794,033 $67,360,390
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three months ended March
2008 2007
Cash flows from operating activities:
Net income $2,530,926 $1,666,292
Loss from discontinued operations (43,684) (158,990)
Income from continuing operations 2,574,610 1,825,282
Adjustments to reconcile income from
continuing operations to net cash
provided by (used in) operating activities:
Depreciation and amortization 305,882 210,718
Provision for uncollectible accounts 675,964 273,923
Stock-based compensation 126,042 71,874
Deferred income taxes 364,000 355,771
$4,046,498 $2,737,568
Change in certain net current
assets, net of the effects of
acquisitions:
(Increase) decrease in:
Accounts receivable (5,813,894) (1,703,712)
Prepaids expenses and other current assets 167,536 313,874
Other assets (615) (12,331)
Increase (decrease) in:
Accounts payable and accrued expenses (1,852,733) 142,063
Net cash provided by (used in)
operating activities $(3,453,209) $1,477,462
Cash flows from investing activities:
Capital expenditures (91,267) (163,977)
Acquisitions, net of cash acquired (14,380,170) (520,805)
Net cash (used in) investing activities $(14,471,437) $(684,782)
Cash flows from financing activities:
Net revolving credit facility
borrowings (repayments) 17,827,817 (443,764)
Proceeds from stock option exercises - 101,947
Purchase of common stock in
connection with option exercises - (3,804,883)
Tax benefit from non-qualified
stock option exercises - 677,954
Principal payments on capital
leases and notes payable (27,600) (857,236)
Net cash provided by (used in)
financing activities $17,800,217 $(4,325,982)
Cash flows from discontinued
operations:
Operating Activities (43,684) (158,990)
Investing Activities - -
Financing Activities - -
Net cash provided by (used in)
discontinued operations (43,684) (158,990)
Net increase (decrease) in cash and
cash equivalents (168,113) (3,692,291)
Cash and cash equivalents at
beginning of period 473,222 4,125,592
Cash and cash equivalents at end of
period $305,109 $433,301
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 March 31, 2008 compared with
three months ended March 31, 2007
2008 2007 Change
Consolidated Amount % Rev Amount % Rev Amount %
Net revenues:
Visiting
Nurse $29,838,258 76.5% $23,048,118 72.5% $6,790,140 29.5%
Personal
Care 9,188,695 23.5% 8,725,060 27.5% 463,635 5.3%
$39,026,953 100.0% $31,773,178 100.0% $7,253,775 22.8%
Operating
income
before
corporate
expense
Visiting
Nurse $5,881,460 19.7% $4,526,285 19.6% $1,355,175 29.9%
Personal
Care 741,494 8.1% 661,374 7.6% 80,120 12.1%
6,622,954 17.0% 5,187,659 16.3% 1,435,295 27.7%
Corporate
expense 2,174,008 5.6% 1,967,356 6.2% 206,652 10.5%
Income before
interest
expense
and income
taxes 4,448,946 11.4% 3,220,303 10.1% 1,228,643 38.2%
Interest
(income)
expense 208,001 0.5% 255,708 0.8% (47,707) -18.7%
Income taxes 1,666,335 4.3% 1,139,313 3.6% 527,022 46.3%
Net income
from
continuing
operations $2,574,610 6.6% $1,825,282 5.7% $749,328 41.1%
EBITDA from
continuing
operations $4,880,870 12.5% $3,502,895 11.0% $1,377,975 39.3%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Three months ended March 31,
2008 2007 Change
Amount Amount Amount %
Average number of locations 55 47 8 17.0%
All payors:
Admissions 8,410 7,505 905 12.1%
Billable visits 187,340 143,539 43,801 30.5%
Medicare statistics:
Revenue $27,975,699 $21,557,588 $6,418,111 29.8%
Percentage of
total revenues 93.8% 93.5%
Billable visits 170,405 130,660 39,745 30.4%
Admissions 7,585 6,806 779 11.4%
Episodes 10,354 8,136 2,218 27.3%
Revenue per episode $2,702 $2,650 $52 2.0%
Visits per episode $16.45 $16.06 0.39 2.4%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Three months ended March 31, 2008
2008 2007 Change
Amount Amount Amount %
Average number of locations 23 23 - -%
Admissions 877 962 (85) -8.8%
Patient months of care 10,587 10,143 444 4.4%
Patient days of care 132,585 126,523 6,062 4.8%
Billable hours 516,699 500,961 15,738 3.1%
Revenue per billable hours $17.78 $17.42 $0.36 2.1%
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 inthe 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 March 31,
2008 2007
Net income from continuing operations $2,574,610 $1,825,282
Add back:
Interest expense (income) 208,001 255,708
Income taxes 1,666,335 1,139,313
Depreciation and amortization 305,882 210,718
Amortization of stock-based
compensation 126,042 71,874
Earnings before interest, income taxes,
depreciation and amortization (EBITDA) $4,880,870 $3,502,895
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations inFlorida,Kentucky,
Ohio,Connecticut,Massachusetts,Missouri,Alabama,Illinois andIndiana (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 81 branch locations in nine 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; 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, 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.
Almost Family, Inc. The Ruth Group
Steve Guenthner Investor Relations
(502) 891-1000 Stephanie Carrington / Jared Hoffman
(646) 536-7017 / 7013
scarrington@theruthgroup.com
jhoffman@theruthgroup.com
SOURCE Almost Family, Inc.
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