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William Yarmuth, Chief Executive Officer, commented, "We're pleased to report strong operating results for the second quarter. In the midst of great public debate about health care reform, we're continuing to demonstrate that home health care represents the lowest cost, highest quality way to keep the frail homebound elderly out of high cost institutional care and in their homes where they want to be. Over the course of 2009 we plan to continue our strategic efforts to grow and expand our business. We also plan to work hard to help the Administration, Congress and all those working on comprehensive health care reform understand how important home health care is as a part of the solution to lowering health care costs and ensuring access to care for all America's seniors."
Second Quarter Financial Results
Almost Family reported second quarter 2009 net service revenues of $74.9 million, a 54% increase from $48.7 million in the second quarter of 2008.
Net income for the second quarter of 2009 was $6.0 million, or $0.71 per diluted share, compared to $3.9 million, or $0.50 per diluted share, in the second quarter of 2008. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 7% between periods. Results for the quarter included acquisition transaction costs of $260,000 or $0.02 per diluted share.
Second Quarter Segment Results
Net revenues in the Visiting Nurse segment for the second quarter of 2009 were $64.0 million, a 65% increase from $38.8 million in the second quarter of 2008. The total revenue growth of $25.1 million came from a 29% organic growth rate plus $14.0 million from acquired operations. Operating income before corporate expense in the VN segment for the second quarter of 2009 was $13.3 million, a 55% increase from $8.6 million in the second quarter of 2008.
Net revenues in the Personal Care (PC) segment for the second quarter of 2009 were $10.9 million, an 11% increase from $9.8 million in the second quarter of 2008. Operating income before unallocated corporate expense in the PC segment for the second quarter of 2009 was $1.3 million, a 52% increase from $824,000 in the second quarter of 2008.
The Company also noted that its Visiting Nurse segment operations located in Florida normally experience higher admissions during the first quarter and lower admissions during the third quarter than in the other quarters due to seasonal population fluctuations.
Six Month Period Ended June 30, 2009
Almost Family reported net service revenues for the six month period ended June 30, 2009 of $144.1 million, a 64% increase from $87.7 million in the same period of 2008.
Net income for the six month period of 2009 was $11.6 million, or $1.40 per diluted share, compared to $6.4 million, or $0.95 per diluted share, in the six month period of 2008.
Six Month Period Segment Results
Net revenues in the Visiting Nurse segment for the six month period of 2009 were $122.7 million, a 79% increase from $68.7 million in the six month period of 2008. The total revenue growth of $54.0 million came from a 35% organic growth rate plus $32.0 million from acquired operations. Operating income before corporate expense in the VN segment for the six month period of 2009 was $25.5 million, an 82% increase from $14.0 million in the same period of 2008.
Net revenues in the Personal Care (PC) segment for the six month period of 2009 were $21.3 million, a 12% increase from $19.0 million in the six month period of 2008. Operating income before unallocated corporate expense in the PC segment for the six month period of 2009 was $2.3 million, a 51% increase from $1.6 million in the six month period of 2008.
Conference Call
A conference call to review the results will begin at 11:00 a.m. ET on August 5, 2009, and will be hosted by William Yarmuth, Chief Executive Officer, and Steve Guenthner, 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 August 5, 2009 at 2:00 p.m. ET and ending on August 19, 2009. The replay telephone number is 1-877-660-6853 (USA) or 1-201-612-7415 (International). Account Number: 3055 and Passcode: 329007.
A live Web cast of the call will also be available from the Investor Relations section of the corporate Web site at http://www.almostfamily.com. A Web cast replay can be accessed on the corporate Web site beginning August 5, 2009 at approximately 2:00 p.m. ET and will remain available until September 5, 2009.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
June 30,
------------------------
2009 2008
----------- ----------
Net service revenues $74,851,280 $48,700,372
Cost of service revenues 34,670,484 22,780,475
---------- ----------
Gross margin 40,180,796 25,919,897
---------- ----------
General and administrative expenses:
Salaries and benefits 20,716,970 12,988,447
Other 9,426,730 6,261,283
--------- ---------
Total general and administrative
expenses 30,143,700 19,249,730
---------- ----------
Operating income 10,037,096 6,670,167
Interest expense, net (203,899) (170,756)
-------- --------
Income from continuing operations before
income taxes 9,833,197 6,499,411
Income tax expense (3,834,223) (2,600,457)
---------- ----------
Net income from continuing operations 5,998,974 3,898,954
Discontinued operations, net of tax
benefits of $3,054 and $22,619 (4,702) (34,936)
------ -------
Net income $5,994,272 $3,864,018
========== ==========
Per share amounts-basic:
Average shares outstanding 8,176,458 7,642,806
Income from continued operations $0.73 $0.51
Loss from discontinued operations - -
--- ---
Net income $0.73 $0.51
===== =====
Per share amounts-diluted:
Average shares outstanding 8,389,004 7,809,475
Income from continued operations $0.71 $0.50
Loss from discontinued operations - -
--- ---
Net income $0.71 $0.50
===== =====
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six months ended
June 30,
-------------------------
2009 2008
------------ -----------
Net service revenues $144,046,454 $87,727,325
Cost of service revenues 67,057,564 41,402,549
---------- ----------
Gross margin 76,988,890 46,324,776
---------- ----------
General and administrative expenses:
Salaries and benefits 39,765,329 23,540,855
Other 17,604,944 11,664,808
---------- ----------
Total general and administrative
expenses 57,370,273 35,205,663
---------- ----------
Operating income 19,618,617 11,119,113
Interest expense, net (516,860) (378,757)
-------- --------
Income from continuing operations
before income taxes 19,101,757 10,740,356
Income tax expense (7,502,353) (4,266,792)
---------- ----------
Net income from continuing
operations 11,599,404 6,473,564
Discontinued operations, net of tax
benefits of $8,677 and $50,902 (10,208) (78,620)
------- -------
Net income $11,589,196 $6,394,944
=========== ==========
Per share amounts-basic:
Average shares outstanding 8,164,210 6,592,203
Income from continued operations $1.42 $0.98
Loss from discontinued operations - (0.01)
--- -----
Net income $1.42 $0.97
===== =====
Per share amounts-diluted:
Average shares outstanding 8,277,989 6,753,403
Income from continued operations $1.40 $0.96
Loss from discontinued operations - (0.01)
--- -----
Net income $1.40 $0.95
===== =====
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2009
ASSETS (UNAUDITED) December 31, 2008
----------- -----------------
CURRENT ASSETS:
Cash and cash equivalents $1,052,973 $1,301,178
Accounts receivable - net 38,332,341 34,760,021
Prepaid expenses and other
current assets 2,721,229 3,113,737
Deferred tax assets 6,432,575 4,437,979
--------- ---------
TOTAL CURRENT ASSETS 48,539,118 43,612,915
PROPERTY AND EQUIPMENT - NET 3,813,882 4,199,067
GOODWILL 96,431,072 92,170,091
OTHER INTANGIBLE ASSETS 17,058,899 16,715,369
OTHER ASSETS 567,559 518,317
------- -------
$166,410,530 $157,215,759
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,703,775 $5,320,763
Accrued other liabilities 20,298,148 22,436,430
Current portion - capital leases and
notes payable 664,834 4,774,249
------- ---------
TOTAL CURRENT LIABILITIES 24,666,757 32,531,442
---------- ----------
LONG-TERM LIABILITIES:
Revolving credit facility 25,555,472 23,998,428
Capital lease obligations - 111,002
Notes payable 4,300,000 3,100,000
Deferred tax liabilities 3,218,179 1,215,816
Other liabilities 1,237,484 1,476,843
--------- ---------
TOTAL LONG-TERM LIABILITIES 34,311,135 29,902,089
---------- ----------
TOTAL LIABILITIES 58,977,892 62,433,531
---------- ----------
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.05;
authorized 2,000,000 shares; none
issued or outstanding - -
Common stock, par value $0.10;
authorized 25,000,000; 8,178,739 and
8,136,723 issued and outstanding 817,874 813,672
Additional paid-in capital 65,992,685 64,935,673
Retained earnings 40,622,079 29,032,883
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 107,432,638 94,782,228
----------- ----------
$166,410,530 $157,215,759
============ ============
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended June 30,
------------------------
2009 2008
----------- ----------
Cash flows from operating activities:
Net income $11,589,196 $6,394,944
Loss from discontinued operations (10,208) (78,620)
------- -------
Income from continuing operations 11,599,404 6,473,564
Adjustments to reconcile income from
continuing operations to net cash provided
by operating activities:
Depreciation and amortization 1,152,016 642,350
Provision for uncollectible accounts 1,901,216 1,221,959
Stock-based compensation 771,687 333,332
Deferred income taxes 7,767 (276,073)
----- --------
15,432,090 8,395,132
Change in certain net current assets,
net of the effects of acquisitions:
(Increase) decrease in:
Accounts receivable (5,307,923) (6,787,893)
Prepaid expenses and other current assets 392,509 (577,650)
Other assets (49,242) (12,687)
Increase (decrease) in:
Accounts payable and accrued expenses (1,353,984) 397,696
---------- -------
Net cash provided by operating activities 9,113,450 1,414,598
--------- ---------
Cash flows from investing activities:
Capital expenditures (570,840) (321,729)
Acquisitions, net of cash acquired (6,406,761) (14,493,231)
---------- -----------
Net cash used in investing activities (6,977,601) (14,814,960)
---------- -----------
Cash flows from financing activities:
Net revolving credit facility
(repayments) 1,557,044 (12,387,721)
Proceeds from stock option exercises 78,110 42,800
Tax benefit from non-qualified stock
option exercises 211,417 78,667
Proceeds from stock offering, net - 41,808,449
Principal payments on capital leases and
notes payable (4,220,417) (56,009)
---------- -------
Net cash provided by (used in) financing
activities (2,373,846) 29,486,186
---------- ----------
Cash flows from discontinued operations:
Operating activities (10,208) (78,620)
Investing activities - -
Financing activities - -
--- ---
Net cash used in discontinued operations (10,208) (78,620)
------- -------
Net increase (decrease) in cash and cash
equivalents (248,205) 16,007,204
Cash and cash equivalents at beginning
of period 1,301,178 473,222
--------- -------
Cash and cash equivalents at end
of period $1,052,973 $16,480,426
========== ===========
Summary of non-cash investing and
financing activities:
Acquisitions funded by notes payable $1,200,000 $3,000,000
Acquisitions funded by stock $- $1,000,000
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Three months ended June 30,
2009 2008 Change
------------------ ----------------- -----------------
Amount % Rev Amount % Rev Amount %
Net service ------------------ ----------------- -----------------
revenues:
Visiting
Nurse $63,956,937 85.4% $38,857,909 79.8% $25,099,028 64.6%
Personal
Care 10,894,343 14.6% 9,842,463 20.2% 1,051,880 10.7%
----------- ---------- ----------
74,851,280 100.0% $48,700,372 100.0% 26,150,908 53.7%
----------- ---------- ----------
Operating
income:
Visiting
Nurse 13,291,819 20.8% $8,582,548 22.1% 4,709,271 54.9%
Personal
Care 1,249,583 11.5% 823,989 8.4% 425,594 51.7%
----------- ---------- ----------
14,541,402 19.4% 9,406,537 19.3% 5,134,865 54.6%
Corporate
expenses 4,504,306 6.0% 2,736,370 5.6% 1,767,936 64.6%
----------- ---------- ----------
Operating
income 10,037,096 13.4% 6,670,167 13.7% 3,366,929 50.5%
Interest
expense, net (203,899) 0.3% (170,756) 0.4% 33,143 19.4%
Income tax
expense (3,834,223) 5.1% (2,600,457) 5.3% 1,233,766 47.4%
----------- ---------- ----------
Net income
from
continuing
operations $5,998,974 8.0% $3,898,954 8.0% $2,100,020 53.9%
========== ========== ==========
EBITDA from
continuing
operations $11,057,237 14.8% $7,213,925 14.8% $3,843,312 53.3%
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Six months ended June 30,
2009 2008 Change
------------------ ----------------- -----------------
Amount % Rev Amount % Rev Amount %
Net service
Revenues: ------------------ ----------------- -----------------
Visiting
Nurse $122,704,732 85.2% $68,696,167 78.3% $54,008,565 78.6%
Personal
Care 21,341,722 14.8% 19,031,158 21.7% 2,310,564 12.1%
----------- ---------- ----------
144,046,454 100.0% $87,727,325 100.0% 56,319,129 64.2%
----------- ---------- ----------
Operating
income:
Visiting
Nurse 25,484,527 20.8% $14,037,218 20.4% 11,447,309 81.5%
Personal
Care 2,366,701 11.1% 1,565,482 8.2% 801,219 51.2%
----------- ---------- ----------
Operating
income before
unallocated
corporate
expenses 27,851,228 19.3% 15,602,700 17.8% 12,248,528 78.5%
Corporate
expenses 8,232,611 5.7% 4,483,587 5.1% 3,749,024 83.6%
----------- ---------- ----------
Operating
income 19,618,617 13.6% 11,119,113 12.7% 8,499,504 76.4%
Interest
expense, net (516,860) 0.4% (378,757) 0.4% 138,103 36.5%
Income taxes (7,502,353) 5.2% (4,266,792) 4.9% 3,235,561 75.8%
----------- ---------- ----------
Net income
from
continuing
operations $11,599,404 8.1% $6,473,564 7.4% $5,125,840 79.2%
=========== ========== ==========
EBITDA from
continuing
operations $21,542,320 15.0% $12,094,795 13.8% $9,447,525 78.1%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Three months ended June 30,
----------------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- -------- ---
Average number of locations 77 58 19 32.8%
All payors:
Admissions 12,994 9,400 3,594 38.2%
Billable visits 406,360 240,795 165,565 68.8%
Medicare statistics:
Revenue $57,520,265 $36,428,290 $21,091,975 57.9%
Percentage of total
revenues 89.9% 93.7%
Billable visits 349,792 222,711 127,081 57.1%
Admissions 11,869 8,638 3,231 37.4%
Episodes started 19,173 12,485 6,688 53.6%
Revenue per completed
episode $2,972 $2,886 $86 3.0%
Visits per episode 17.7 17.3 0.4 2.3%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Three months ended June 30,
---------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- -------- ---
Average number of locations 23 23 - -
Admissions 848 965 (117) -12.1%
Patient days of care 170,870 143,308 27,562 19.2%
Billable hours 621,438 568,492 52,946 9.3%
Revenue per billable hours $17.53 $17.31 $0.22 1.3%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Six months ended June 30,
-----------------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- -------- ---
Average number of
locations 76 58 18 31.0%
All payors:
Admissions 25,654 17,810 7,844 44.0%
Billable visits 777,811 428,135 349,676 81.7%
Medicare statistics:
Revenue $109,718,011 $64,397,617 $45,320,394 70.4%
Percentage of total
revenues 89.4% 93.7%
Billable visits 664,529 393,116 271,413 69.0%
Admissions 23,352 16,223 7,129 43.9%
Episodes started 37,224 22,839 14,386 63.0%
Revenue per completed
episode $2,939 $2,826 $113 4.0%
Visits per episode 17.5 17.3 0.2 1.2%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Six months ended June 30,
---------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- -------- ---
Average number of locations 23 23 - -
Admissions 1,757 1,918 (161) -8.4%
Patient days of care 336,020 276,649 59,371 21.5%
Billable hours 1,217,259 1,084,780 132,479 12.2%
Revenue per billable hours $17.53 $17.54 $(0.01) -0.1%
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 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
Three months ended
June 30,
-------------------
2009 2008
---------- ----------
Net income from continuing operations $5,998,974 $3,898,954
Add back:
Interest expense 203,899 170,756
Income tax expense 3,834,223 2,600,457
Depreciation and amortization 577,780 336,468
Amortization of stock-based compensation 442,361 207,290
------- -------
Earnings before interest, income taxes,
depreciation and amortization (EBITDA)
from continuing operations $11,057,237 $7,213,925
=========== ==========
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
Six months ended
June 30,
----------------------
2009 2008
----------- ----------
Net income from continuing operations $11,599,404 $6,473,564
Add back:
Interest expense 516,860 378,757
Income tax expense 7,502,353 4,266,792
Depreciation and amortization 1,152,016 642,350
Amortization of stock-based compensation 771,687 333,332
------- -------
Earnings before interest, income taxes,
depreciation and amortization (EBITDA)
from continuing operations $21,542,320 $12,094,795
=========== ===========
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 100 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; 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, 2008, 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 Nick Laudico/Zack Kubow
(646) 536-7030/7020
nlaudico@theruthgroup.com
zkubow@theruthgroup.com
SOURCE Almost Family, Inc.
http://www.almostfamily.com
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