Net Income from Continuing Operations up 57% Over Prior Year
LOUISVILLE, Ky., Aug. 10 /PRNewswire-FirstCall/ -- Almost Family
today reported its results of operations for the three and six
month periods ended June 30, 2005. Quarterly Results Net income
from continuing operations grew 57% to a record $668,757 ($0.25 per
diluted share) for the June 2005 quarter as compared to $424,903
($0.17 per diluted share) in the June 2004 quarter for an increase
of 57%. Revenues grew 14% to $24.8 million in the June 2005 quarter
from $21.7 million in the June 2004 quarter. On August 3, 2005, the
Company announced plans to divest its adult day care (ADC) segment.
Because the Company had not committed to that divestiture until
after the end of the quarter, ADC operations are included in
continuing operations in the June 2005 quarter. ADC operations will
be reported as discontinued operations for all subsequent periods.
The Company expects to report an after-tax gain on the sale of
between $5 million and $6 million ($1.90 to $2.28 per diluted
share) when the transaction closes. If the ADC divestiture had
qualified for discontinued operations accounting treatment at June
30, 2005 the Company would have reported growth in net income from
continuing operations of 68% to $660,484 ($0.25 per diluted share)
for the June 2005 quarter from $392,710 ($0.15 per diluted share)
in the June 2004 quarter. It would have reported continuing
operations revenue growth of 17.8% to $19.3 million in the June
2005 quarter up from $16.4 million in the June 2004 quarter. These
results exclude the effect the use of the net proceeds of the sale
of the ADC operations would have had on interest expense (income)
net of income tax effect. Revenues in the Company's Caretenders
Visiting Nurse (VN) segment grew 27% over the same period last year
with about one half of that growth being internally generated. The
April 1, 2005 acquisition of Bradenton, FL-based "Florida Home
Health" VN operations added approximately $1 million in revenues
and $111,000 in net income ($0.04 per diluted share) to operating
results in the June 2005 quarter. Net income from continuing
operations for the June 2005 quarter included $88,451 ($0.03 per
diluted share) of operating losses related to VN operations started
late in 2004 and first quarter 2005. Related revenues were
approximately $635,000. Net income (loss) from discontinued
operations (not related to the sale of the ADC segment) for the
quarter ended June 30, 2005 was a loss of ($46,119) or ($0.02) per
diluted share compared to a loss of ($30,218) or ($0.01) per
diluted share in 2004. Including discontinued operations,
consolidated net income increased 58% to $622,638 or $0.24 per
diluted share in 2005 from $394,685 or $0.15 per diluted share in
2004. Results of operations for the quarters ended June 30, 2005
and 2004 are set forth in the tables below: June June 2005 2004
Change Amount % Rev Amount % Rev Amount % Net Revenues Home Health
Care Visiting Nurses $10,317,868 41.7% $8,108,047 37.4% $2,209,821
27.3% Personal Care 9,005,375 36.4% 8,288,627 38.2% 716,748 8.6%
19,323,243 78.0% 16,396,674 75.6% 2,926,569 17.8% Adult Day Care
5,449,038 22.0% 5,305,679 24.4% 143,359 2.7% $24,772,281 100.0%
$21,702,353 100.0% $3,069,928 14.1% Operating Income Home Health
Care Visiting Nurses $1,468,753 14.2% $1,305,639 16.1% $163,114
12.5% Personal Care 941,215 10.5% 689,023 8.3% 252,192 36.6%
2,409,968 12.5% 1,994,662 12.2% 415,306 20.8% Adult Day Care
355,328 6.5% 357,947 6.7% (2,619) -0.7% 2,765,296 11.2% 2,352,609
10.8% 412,687 17.5% Unallocated Corp Expenses 1,582,486 6.4%
1,518,755 7.0% 63,731 4.2% 1,182,810 4.8% 833,854 3.8% 348,956
41.8% Facility gains (losses) (8,317) 0.0% (2,566) 0.0% (5,751)
224.1% Interest Expense 97,106 0.4% 123,116 0.6% (26,010) -21.1%
Pre-Tax Income 1,077,387 4.3% 708,172 3.3% 369,215 52.1% Income
Taxes 408,630 1.6% 283,269 1.3% 125,361 44.3% Net Income from
Continuing Operations $668,757 2.7% $424,903 2.0% $243,854 57.4%
Income (loss) from discontinued operations, net of tax (46,119)
(30,218) (15,901) 52.6% Net Income $622,638 $394,685 $227,953 57.8%
Diluted Earnings Per Share Diluted Shares Outstanding 2,627,375
2,552,978 74,397 2.9% Continuing Operations $0.25 $0.17 $0.08 47.8%
Discontinued Operations (0.02) (0.02) (0.00) NM $0.24 $0.15 $0.08
53.3% Continuing Operations: EBITDA $1,763,648 $1,440,223 $323,425
22.5% Effective Tax Rate 38.6% 40.0% (1.4%) William B. Yarmuth,
Chairman and CEO, commented on the operating results: "The fact
that we are producing record levels of net income from continuing
operations, whether with or without the ADC operations, clearly
says we are on the right strategic path. We are very pleased with
our results for the quarter which saw accelerated revenue growth
rates in all our operating segments. VN leads the way with 27%
revenue growth, half of which came from acquisitions and half of
which was internally generated. However, our in-home personal care
(PC) segment also contributed almost 9% revenue growth all of which
was internally generated. "While we are pleased with our results
for the quarter, as we said last week we think we can do more. With
the divestiture of the ADC segment, all our management time and
talent will be turned toward accelerating our growth in our home
health operations. With the amount of capital now available to us
we will seek to be more aggressive in our approach to acquisitions
and startups and we will redouble our efforts to increase the
effectiveness and efficiency of our sales and marketing
activities," Yarmuth concluded. The Company noted that before
considering the purchase price of acquisitions completed, its cash
flows resulted in debt reduction of approximately $2.1 million in
the quarter ended June 30, 2005 and about $7.9 million in the
twelve months ended June 30, 2005. Following completion of the sale
of its ADC segment, the Company expects to have about $4 million in
cash, no balance then outstanding on its bank credit facility, and
approximately $18 million in borrowing capacity under that
facility. Year to Date Results Net income from continuing
operations grew 43% to $1,089,421 ($0.42 per diluted share) for the
six months ended June 2005 as compared to $762,607 ($0.30 per
diluted share) in the six months ended June 2004. Revenues grew 12%
to $48.3 million in the six months ended June 2005 from $43.2
million in the six months ended June 2004. If the ADC divestiture
had qualified for discontinued operations accounting treatment at
June 30, 2005 the Company would have reported growth in net income
from continuing operations of 25% to $1,218,043 ($0.46 per diluted
share) for the six months ended June 2005 from $973,873 ($0.38 per
diluted share) in the six months ended June 2004. It would have
reported continuing operations revenues growth of 15% to $37.7
million in the six months ended June 2005 up from $32.8 million in
the six months ended June 2004. These results exclude the effect
the use of the net proceeds of the sale of the ADC operations would
have had on interest expense (income) net of income tax effect.
Revenues in the Company's Caretenders Visiting Nurse (VN) segment
grew 21% over the same period last year with about two-thirds of
that growth being internally generated. The April 1, 2005
acquisition of Bradenton, FL-based "Florida Home Health" VN
operations added approximately $1 million in revenues and $111,000
in net income ($0.04 per diluted share) to operating results for
the six months ended June 2005. Net income from continuing
operations for the six months ended June 2005 included $226,564
($0.09 per diluted share) of operating losses related to VN
operations started late in 2004 and first quarter 2005. Related
revenues were approximately $914,000. Net income (loss) from
discontinued operations (not related to the sale of the ADC
segment) for the six months ended June 30, 2005 was a loss of
$82,849 ($0.03 per diluted share) compared to a loss of $66,559
($0.03 per diluted share) in 2004. Including discontinued
operations, consolidated net income increased 45% to $1,006,572 or
$0.38 per diluted share in 2005 from $696,047 or $0.27 per diluted
share in 2004. Results of operations for the six months ended June
30, 2005 and 2004 are set forth in the tables below: June June 2005
2004 Change Amount % Rev Amount % Rev Amount % Net Revenues Home
Health Care Visiting Nurses $19,973,387 41.4% $16,449,457 38.1%
$3,523,930 21.4% Personal Care 17,761,807 36.8% 16,390,519 38.0%
1,371,288 8.4% 37,735,194 78.1% 32,839,976 76.1% 4,895,218 14.9%
Adult Day Care 10,556,220 21.9% 10,330,793 23.9% 225,427 2.2%
$48,291,414 100.0% $43,170,769 100.0% $5,120,645 11.9% Operating
Income Home Health Care Visiting Nurses $3,091,779 15.5% $2,813,815
17.1% $277,964 9.9% Personal Care 1,637,358 9.2% 1,395,693 8.5%
241,665 17.3% 4,729,137 12.5% 4,209,508 12.8% 519,629 12.3% Adult
Day Care 603,949 5.7% 217,126 2.1% 386,823 178.2% 5,333,086 11.0%
4,426,634 10.3% 906,452 20.5% Unallocated Corp Expenses 3,357,962
7.0% 2,891,518 6.7% 466,444 16.1% 1,975,124 4.1% 1,535,116 3.6%
440,008 28.7% Facility gains (losses) (8,317) 0.0% 3,854 0.0%
(12,171)-315.8% Interest Expense 188,313 0.4% 267,959 0.6% (79,646)
-29.7% Pre-Tax Income 1,778,494 3.7% 1,271,011 2.9% 507,483 39.9%
Income Taxes 689,072 1.4% 508,405 1.2% 180,667 35.5% Net Income
from Continuing Operations $1,089,422 2.3% $762,607 1.8% $326,816
42.9% Income (loss) from discontinued operations, net of tax
$(82,849) $(66,559) $(16,290) 24.5% Net Income $1,006,573 $696,047
$310,526 44.6% Diluted Earnings Per Share Diluted Shares
Outstanding 2,622,501 2,553,915 68,586 2.7% Continuing Operations
$0.42 $0.30 $0.12 40.0% Discontinued Operations $(0.03) $(0.03)
$(0.00) NM $0.38 $0.27 $0.12 44.4% Continuing Operations: EBITDA
$3,160,453 $2,752,059 $408,393 14.8% Effective Tax Rate 38.7% 40.0%
(1.3%) Non-GAAP Financial Measures 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 June 30, 2005 2004 Net Income from continuing operations
$668,757 $424,903 Add Back: Interest Expense 97,106 123,116 Income
Taxes 408,630 283,269 Depreciation & Amortization 589,155
608,935 Earnings Before Interest, Income Taxes, Depreciation &
Amortization (EBITDA) from continuing operations $1,763,648
$1,440,223 Six Months Ended June 30, 2005 2004 Net Income from
continuing operations $1,089,422 $762,607 Add Back: Interest
Expense 188,313 267,959 Income Taxes 689,072 508,405 Depreciation
& Amortization 1,193,646 1,213,088 Earnings Before Interest,
Income Taxes, Depreciation & Amortization (EBITDA) from
continuing operations $3,160,453 $2,752,059 The Company's 2004 Form
10-K includes a description of its business plan which calls for an
increase in emphasis on the Visiting Nurse segment. Almost Family,
Inc. TM and subsidiaries (collectively "Almost Family") is a
leading regional provider of home health nursing services and adult
day health services. The Company has service locations in Florida,
Kentucky, Ohio, Maryland, 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 complete the sale of
its ADC segment, 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 attract investment of
additional capital, 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
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. DATASOURCE: Almost Family, Inc.
CONTACT: William Yarmuth or Steve Guenthner of Almost Family, Inc.,
+1-502-891-1000 Web site: http://www.almost-family.com/ Company
News On-Call: http://www.prnewswire.com/comp/784275.html
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