The next best thing to real family.sm
Exhibit 99.1
| FOR IMMEDIATE RELEASE | November 6, 2007 |
Almost Family Announces Third Quarter 2007 Results
Net Income up 82%
Louisville, KY – Almost Family, Inc. (NASDAQ:AFAM) today announced its operating results for the three months and nine months ended September 30, 2007.
Quarter 2007 Highlights
| • | Net Income From Continuing Operations was $1,906,601 up 82% from $1,045,771 in 2006 |
| • | Continuing Operations Earnings per diluted share were $0.34 in 2007 versus $0.20 in 2006 for an increase of 72% |
| • | Consolidated revenues increased approximately 42% |
| • | The Company’s VN segment revenues grew 68% |
| • | VN markets with no acquisition activity generated 27% revenue growth, while markets with acquisitions added $6.4 million to revenue for the quarter |
| • | Days sales outstanding in accounts receivable were 40 at September 30, 2007 |
Year-to-date 2007 Highlights
| • | Net Income From Continuing Operations was $5,607,708 up 93% from $2,902,302 in 2006 |
| • | Continuing Operations Earnings per diluted share were $1.00 in 2007 versus $0.55 in 2006 for an increase of 84% |
| • | Consolidated revenues increased approximately 50% |
| • | Net income from continuing operations increased 93% |
| • | The Company’s VN segment revenues grew 82% |
| • | VN markets with no acquisition activity generated 27% revenue growth, while markets with acquisitions added $23 million to revenue for the nine months |
William B. Yarmuth, AFAM’s Chairman and CEO commented on the results:
“Our third quarter results show the continuation of the strong performance that was delivered in our first two quarters of 2007. We continue to achieve meaningful same store sales growth confirming our commitment to providing the highest quality patient care. In addition we continue to reap the benefits we anticipated from our past eighteen months of acquisition activity. Also, on October 27, 2007 we were proud to welcome the employees, patients and referral sources of Quality of Life to the Almost Family group of home health care providers. We look forward to the continued progress of the Company as we pursue our strategic development plans."
Discussion of Quarterly Results
Net Income From Continuing Operations grew 82% to $1,906,601 or $0.34 per diluted share for the September 2007 quarter as compared to $1,045,771 or $0.20 per diluted share in the September 2006 quarter. Revenues grew 42% to $32.0 million in the September 2007 quarter from $22.6 million in the September 2006 quarter. Revenues in the Company’s “Caretenders” Visiting Nurse (VN) segment grew 68% over the same period last year.
The number of weighted average shares outstanding for purposes of calculating diluted earnings per share increased 6% between periods.
VN Revenue Comparison for the Quarter
Due to the significant impact of acquisition activities on VN revenue growth, the following tables are presented comparing revenue growth by market type for the quarters ended September 30, 2007 and 2006:
VN Revenue Comparison by Market Type – All VN Operations | | # of Mkts | | 2007 | | 2006 | | Change | | Percent |
| | | | | | | | | | |
Newly acquired markets | | 13 | $ | 4,808,639 | $ | - | $ | 4,808,639 | | |
| | | | | | | | | | |
Markets with in-market acquisitions | | 9 | | 4,365,921 | | 2,786,125 | | 1,579,796 | | 56.7% |
Acquisition related markets | | 22 | | 9,174,560 | | 2,786,125 | | 6,388,435 | | |
| | | | | | | | | | |
Markets with no acquisition impact | | 25 | | 13,779,243 | | 10,841,017 | | 2,938,226 | | 27.1% |
| | 47 | $ | 22,953,803 | $ | 13,627,142 | $ | 9,326,661 | | 68.4% |
VN revenues grew approximately $9.3 million between years of which 52% came from newly acquired markets, 17% came in markets with in-market acquisitions and 31% came from markets with no acquisition impact.
The following table provides a comparison of revenues related specifically to the Mederi acquisition (excludes all markets not impacted by the Mederi acquisition):
VN Markets Impacted by Mederi | | # of Mkts | | 2007 | | 2006 | | Change |
| | | | | | | | |
Newly acquired Mederi markets | | 12 | $ | 4,499,093 | $ | - | $ | 4,499,093 |
| | | | | | | | |
Mederi markets overlapping Almost Family Markets | | 8 | | 3,968,979 | | 2,296,332 | | 1,672,647 |
Mederi related markets | | 20 | $ | 8,468,072 | $ | 2,296,332 | $ | 6,171,740 |
Markets with acquisitions not related to Mederi generated $706,488 of revenue in the quarter ended September 30, 2007 as compared to $489,793 in 2006.
ResResults of operations for the quarters ended September 30, 2007 and 2006 are set forth in the tables below:
| September | | September | | | |
| 2007 | | 2006 | | | |
| Amount | % Rev | Amount | % Rev | Change Amount | Change % |
Net revenues | | | | | | |
Visiting Nurses | $ 22,953,803 | 71.6% | $ 13,627,142 | 60.2% | $ 9,326,661 | 68.4% |
Personal Care | 9,103,218 | 28.4% | 9,004,083 | 39.8% | 99,135 | 1.1% |
| $ 32,057,021 | 100.0% | $ 22,631,225 | 100.0% | $ 9,425,796 | 41.6% |
Operating income | | | | | | |
Visiting Nurses | $ 4,517,329 | 19.7% | $ 1,919,746 | 14.1% | $ 2,597,583 | 135.3% |
Personal Care | 887,649 | 9.8% | 1,220,228 | 13.6% | (332,579) | (27.3%) |
| 5,404,978 | 16.9% | 3,313,974 | 13.9% | 2,265,004 | 72.1% |
Unallocated corporate expenses | 2,083,537 | 6.5% | 1,449,971 | 6.4% | 633,566 | 43.7% |
Operating Income | 3,321,441 | 10.4% | 1,690,003 | 7.5% | 1,631,438 | 96.5% |
Interest expense/(income) | 153,480 | 0.5% | (33,275) | -0.1% | 186,755 | NM |
Pre-tax income | 3,167,961 | 9.9% | 1,723,278 | 7.6% | 1,444,683 | 83.8% |
Income taxes | 1,261,360 | 3.9% | 677,507 | 3.0% | 583,853 | 86.2% |
Net income from continuing operations | $ 1,906,601 | 5.9% | $ 1,045,771 | 4.6% | $ 860,830 | 82.3% |
Income (loss) from discontinued operations, net of tax | (19,977) | | (10,003) | | (9,974) | NM |
Net income | $ 1,886,624 | 5.9% | $ 1,035,768 | 4.6% | $ 850,856 | 82.1% |
| | | | | | |
Diluted earnings per share | | | | | | |
Diluted shares outstanding (1) | 5,619,862 | | 5,308,774 | | 311,088 | 5.9% |
Continuing operations | $ 0.34 | | $ 0.20 | | $ 0.14 | 72.1% |
Discontinued operations | (0.00) | | (0.00) | | - | NM |
| $ 0.34 | | $ 0.20 | | $ 0.14 | 72.1% |
(1) shares adjusted to give effect to 2-for-1 share split completed in January 2007
Continuing Operations | | | | | | |
EBITDA | $ 3,502,081 | 10.9% | $ 1,949,535 | 8.6% | $ 1,570,546 | 80.6% |
Effective tax rate | 39.8% | | 39.3% | | 0.5% | |
Net income including discontinued operations, was $1,886,624 or $0.34 per diluted share in the quarter ended September 30, 2007 and $1,035,768 or $0.20 per diluted share in 2006.
Discussion of Nine-Month Results
Net Income From Continuing Operations grew 93% to $5,607,708 or $1.00 per diluted share for the nine months ended September 2007 as compared to $2,902,302 or $0.55 per diluted share in the nine months ended September 2006. Revenues grew 50% to $96.7 million in the nine months ended September 2007 from $64.7 million in the nine months ended September 2006. Revenues in the Company’s “Caretenders” Visiting Nurse (VN) segment grew 82% over the same period last year.
The number of weighted average shares outstanding for purposes of calculating diluted earnings per share increased 5% between periods.
VN Revenue Comparison for the Nine Months
Due to the significant impact of acquisition activities on VN revenue growth, the following tables are presented comparing revenue growth by market type for the nine month periods ended September 30, 2007 and 2006:
VN Revenue Comparison by Market Type – All VN Operations | | # of Mkts | | 2007 | | 2006 | | Change | | Percent |
| | | | | | | | | | |
Newly acquired markets | | 15 | $ | 17,781,877 | $ | - | $ | 17,781,877 | | |
| | | | | | | | | | |
Markets with in-market acquisitions | | 8 | | 13,027,202 | | 7,582,879 | | 5,444,323 | | 71.8% |
Acquisition related markets | | 23 | | 30,809,080 | | 7,582,879 | | 23,226,200 | | |
| | | | | | | | | | |
Markets with no acquisition impact | | 24 | | 38,817,638 | | 30,586,436 | | 8,231,202 | | 26.9% |
| | 47 | $ | 69,626,718 | $ | 38,169,315 | $ | 31,457,403 | | 82.4% |
VN revenues grew approximately $31.5 million between years of which 57% came from newly acquired markets, 17% came in markets with in-market acquisitions and 26% came from markets with no acquisition impact.
The following table provides a comparison of revenues related specifically to the Mederi acquisition (excludes all markets not impacted by the Mederi acquisition):
VN Markets Impacted by Mederi | | # of Mkts | | 2007 | | 2006 | | Change |
| | | | | | | | |
Newly acquired Mederi markets | | 13 | $ | 11,595,505 | $ | - | $ | 11,595,505 |
| | | | | | | | |
Mederi markets overlapping Almost Family Markets | | 7 | | 11,552,911 | | 6,204,023 | | 5,348,888 |
Mederi related markets | | 20 | $ | 23,148,416 | $ | 6,204,023 | $ | 16,944,393 |
Markets with acquisitions not related to Mederi generated $7,660,663 of revenue in the nine months ended September 30, 2007 as compared to $1,378,857 in 2006.
Res Results of operations for the nine-month periods ended September 30, 2007 and 2006 are set forth in the tables beb below:
| | September 2007 | | | September 2006 | | | | |
| | Amount | % Rev | | Amount | % Rev | | Change Amount | Change % |
Net revenues | | | | | | | | | |
Visiting Nurses | $ | 69,626,718 | 72.0% | $ | 38,169,315 | 59.0% | $ | 31,457,403 | 82.4% |
Personal Care | | 27,089,470 | 28.0% | | 26,522,753 | 41.0% | | 566,7171 | 2.1% |
| | 96,716,188 | 100.0% | $ | 64,692,068 | 100.0% | $ | 32,024,120 | 49.5% |
Operating income | | | | | | | | | |
Visiting Nurses | $ | 13,802,152 | 19.8% | $ | 5,810,726 | 15.2% | $ | 7,991,426 | 137.5% |
Personal Care | | 2,301,377 | 8.5% | | 2,645,209 | 10.0% | | (343,832) | -13.0% |
| | 16,103,529 | 16.7% | | 8,455,935 | 13.1% | | 7,647,594 | 90.4% |
Unallocated corporate expenses | | 6,134,001 | 6.3% | | 3,730,420 | 5.8% | | 2,403,581 | 64.4% |
Operating Income | | 9,969,528 | 10.3% | | 4,725,515 | 7.3% | | 5,244,013 | 111.0% |
Interest expense/(income) | | 650,408 | 0.7% | | (94,220) | -0.2% | | 744,628 | NM |
Pre-tax income | | 9,319,120 | 9.6% | | 4,819,735 | 7.5% | | 4,499,385 | 93.4% |
Income taxes | | 3,711,412 | 3.8% | | 1,917,433 | 3.0% | | 1,793,979 | 93.6% |
Net income from continuing operations | $ | 5,607,708 | 5.8% | $ | 2,902,302 | 4.5% | $ | 2,705,406 | 93.2% |
Income (loss) from discontinued operations, net of tax | | (73,435) | | | (140,572) | | | 67,137 | NM |
Net income | $ | 5,534,273 | 5.7% | $ | 2,761,730 | 4.3% | $ | 2,772,543 | 100.4% |
| | | | | | | | | |
Diluted earnings per share | | | | | | | | | |
Diluted shares outstanding (1) | | 5,607,730 | | | 5,325,084 | | | 282,646 | 5.3% |
Continuing operations | $ | 1.00 | | $ | 0.55 | | $ | 0.45 | 83.5% |
Discontinued operations | | (0.01) | | | (0.03) | | | (0.02) | NM |
| $ | 0.99 | | $ | 0.52 | | $ | 0.47 | 90.3% |
(1) shares adjusted to give effect to 2-for-1 share split completed in January 2007
Continuing Operations | | | | | | | | | |
EBITDA | $ | 10,600,267 | 11.0% | $ | 5,516,784 | 8.5% | $ | 5,083,483 | 92.1% |
Effective tax rate | | 39.8% | | | 39.8% | | | 0.0% | |
Net income including discontinued operations, was $5,534,273 or $0.99 per diluted share in the nine-months ended September 30, 2007 and $2,761,730 or $0.52 per diluted share in 2006.
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 Continuing Operations Net Income to EBITDA:
| Quarter Ended September 30, | | Nine Months Ended September 30, |
| | 2007 | | 2006 | | 2007 | | 2006 |
Net income from continuing operations | $ | 1,906,601 | $ | 1,045,771 | $ | 5,607,708 | $ | 2,902,302 |
Add back: | | | | | | | | |
Interest expense (income) | | 153,480 | | (33,275) | | 650,408 | | (94,220) |
Income taxes | | 1,261,360 | | 677,507 | | 3,711,412 | | 1,917,433 |
Depreciation & amortization | | 198,640 | | 259,532 | | 630,739 | | 791,269 |
| | | | | | | | |
Earnings from continuing operations Before Interest, Income Taxes, Depreciation & Amortization (EBITDA) | $ | 3,520,081 | $ | 1,949,535 | $ | 10,600,267 | $ | 5,516,784 |
| | | | | | | | | | | |
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, Missouri, Alabama, Illinois and Indiana (in order of revenue significance).
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
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, 2006, 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.
