Exhibit 99.1
Almost Family, Inc. Steve Guenthner (502) 891-1000 | The Ruth Group Investor Relations Nick Laudico/Zack Kubow (646) 536-7030/7020 nlaudico@theruthgroup.com zkubow@theruthgroup.com |
Almost Family Reports First Quarter 2009 Results
First Quarter Highlights:
| • | Net service revenues increased 77% to $69.2 million |
| • | Visiting Nurse (VN) segment net revenues rose 97% to $58.7 million |
| • | Net income increased 118% to $5.6 million |
| • | Diluted EPS increased 55% to $0.68 per share on 45% more shares outstanding |
Louisville, KY, May 6, 2009 – Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing services, announced today its financial results for the three months ended March 31, 2009.
William Yarmuth, Chief Executive Officer, commented, “We’re very pleased to kick 2009 off with such a great start. The strength of our strategic plan continues to be evident in our performance. Our investment in our Senior Advocacy mission which includes improved clinical programs and a commitment to credentialing our care giving staff combined with our investment in the expansion of our marketing staff and efforts have led us to another quarter of double-digit organic admissions growth. Additionally, our disciplined operating model enables us to generate consistently strong returns for our shareholders. We plan to continue our efforts to build on these great results over the balance of the year.”
First Quarter Financial Results
Almost Family reported first quarter 2009 net service revenues of $69.2 million, a 77% increase from $39.0 million in the first quarter of 2008. Net income for the first quarter of 2009 increased to 8.1% of net service revenues versus 6.6% for the first quarter of 2008.
Net income for the first quarter of 2009 was $5.6 million, or $0.68 per diluted share, compared to $2.5 million, or $0.44 per diluted share, in the first quarter of 2008. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 45% between periods.
First Quarter Segment Results
Net revenues in the Visiting Nurse segment for the first quarter of 2009 were $58.7 million, a 97% increase from $29.8 million in the first quarter of 2008. The total revenue growth of $28.9 million came from a 41% organic growth rate plus $16.9 million from acquired operations.
Almost Family Reports First Quarter 2009 Results |
Operating income before corporate expense in the VN segment for the first quarter 2009 was $12.1 million, a 123% increase from $5.5 million in the first quarter of 2008.
Net revenues in the Personal Care (PC) segment for the first quarter of 2009 were $10.4 million, a 14% increase from $9.2 million in the first quarter of 2008. Operating income before unallocated corporate expense in the PC segment for the first quarter of 2009 was $1.1 million, a 51% increase from $742,000 in the first quarter of 2008.
Conference Call
A conference call to review the results will begin at 11:00 a.m. ET on May 6, 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 May 6, 2009 at 2:00 p.m. ET and ending on May 20, 2009. The replay telephone number is 1-877-660-6853 (USA) or 1-201-612-7415 (International). Account Number: 3055 and Passcode: 321923.
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 May 6, 2009 at approximately 2:00 p.m. ET and will remain available until June 6, 2009.
Almost Family Reports First Quarter 2009 Results |
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| | Three months ended March 31, | |
| | 2009 | | | 2008 | |
Net service revenues | $ | 69,195,174 | | $ | 39,026,953 | |
Cost of service revenue | | 32,387,080 | | | 18,622,074 | |
Gross margin | | 36,808,094 | | | 20,404,879 | |
General and administrative expenses: | | | | | | |
Salaries and benefits | | 19,048,360 | | | 10,552,408 | |
Other | | 8,175,033 | | | 5,403,525 | |
Total general and administrative expenses | | 27,223,393 | | | 15,955,933 | |
Operating income | | 9,584,701 | | | 4,448,946 | |
Interest expense, net | | (312,962) | | | (208,001) | |
Income from continuing operations before income taxes | | 9,271,739 | | | 4,240,945 | |
Income tax expense | | (3,668,129) | | | (1,666,335) | |
Net income from continuing operations | | 5,603,610 | | | 2,574,610 | |
Discontinued operations, net of tax benefits of $5,624 and $28,283 | | (8,686) | | | (43,684) | |
Net income | $ | 5,594,924 | | $ | 2,530,926 | |
| | | | | | |
Per share amounts-basic: | | | | | | |
Average shares outstanding | | 8,151,826 | | | 5,541,599 | |
Income from continuing operations | $ | 0.69 | | $ | 0.46 | |
Loss from discontinued operations | | - | | | (0.01) | |
Net income | $ | 0.69 | | | 0.45 | |
| | | | | | |
Per share amounts-diluted: | | | | | | |
Average shares outstanding | | 8,281,128 | | | 5,699,506 | |
Income from continuing operations | $ | 0.68 | | $ | 0.45 | |
Loss from discontinued operations | | - | | | (0.01) | |
Net income | $ | 0.68 | | $ | 0.44 | |
| | | | | | |
Almost Family Reports First Quarter 2009 Results |
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS | | March 31, 2009 (UNAUDITED) | | | December 31, 2008 | |
CURRENT ASSETS: | | | | | | |
Cash and cash equivalents | $ | 144,785 | | $ | 1,301,178 | |
Accounts receivable – net | | 36,388,460 | | | 34,760,021 | |
Prepaid expenses and other current assets | | 2,381,416 | | | 3,113,737 | |
Deferred tax assets | | 4,906,374 | | | 4,437,979 | |
TOTAL CURRENT ASSETS | | 43,821,035 | | | 43,612,915 | |
| | | | | | |
PROPERTY AND EQUIPMENT – NET | | 3,948,016 | | | 4,199,067 | |
| | | | | | |
GOODWILL | | 92,202,370 | | | 92,170,091 | |
| | | | | | |
OTHER INTANGIBLE ASSETS | | 16,634,634 | | | 16,715,369 | |
| | | | | | |
DEFERRED TAX ASSETS | | 3,359,940 | | | 3,576,275 | |
| | | | | | |
OTHER ASSETS | | 534,231 | | | 518,317 | |
| $ | 160,500,226 | | $ | 160,792,034 | |
| | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
CURRENT LIABILITIES: | | | | | | |
Accounts payable | $ | 3,663,851 | | $ | 5,320,763 | |
Accrued other liabilities | | 19,452,449 | | | 22,436,430 | |
Current portion – capital leases and notes payable | | 4,710,876 | | | 4,774,249 | |
Current deferred tax liabilities | | 5,339,989 | | | 4,792,091 | |
TOTAL CURRENT LIABILITIES | | 33,167,165 | | | 37,323,533 | |
| | | | | | |
LONG-TERM LIABILITIES: | | | | | | |
Revolving credit facility | | 21,950,927 | | | 23,998,428 | |
Capital lease obligations | | - | | | 111,002 | |
Notes payable | | 3,100,000 | | | 3,100,000 | |
Other liabilities | | 1,334,776 | | | 1,476,843 | |
TOTAL LONG-TERM LIABILITIES | | 26,385,703 | | | 28,686,273 | |
TOTAL LIABILITIES | | 59,552,868 | | | 66,009,806 | |
| | | | | | |
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 shares; 8,175,473 and 8,136,723 issued and outstanding | | 817,547 | | | 813,672 | |
Additional paid-in capital | | 65,502,004 | | | 64,935,673 | |
Retained earnings | | 34,627,807 | | | 29,032,883 | |
TOTAL STOCKHOLDERS’ EQUITY | | 100,947,358 | | | 94,782,228 | |
| $ | 160,500,226 | | $ | 160,792,034 | |
Almost Family Reports First Quarter 2009 Results |
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | Three months ended March 31, |
| | 2009 | | | 2008 |
Cash flows from operating activities: | | | | | | |
Net income | $ | 5,594,924 | | $ | 2,530,926 | |
Loss from discontinued operations | | | | | | |
Income from continuing operations | | 5,603,610 | | | 2,574,610 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | | | | | | |
Depreciation and amortization | | 528,378 | | | 305,882 | |
Provision for uncollectible accounts | | 742,778 | | | 675,964 | |
Stock-based compensation | | 329,326 | | | 126,042 | |
Deferred income taxes | | | | | | |
| | 7,499,930 | | | 4,046,498 | |
Change in certain net current assets, net of the effects of acquisitions: | | | | | | |
(Increase) decrease in: | | | | | | |
Accounts receivable | | (2,371,217) | | | (5,813,894) | |
Prepaid expenses and other current assets | | 732,322 | | | 167,536 | |
Other assets | | (15,914) | | | (615) | |
Decrease in: | | | | | | |
Accounts payable and accrued expenses | | (1,957,959) | | | (1,852,734) | |
Net cash provided by (used in) operating activities | | 3,887,162 | | | (3,453,209) | |
| | | | | | |
Cash flows from investing activities: | | | | | | |
Capital expenditures | | (201,592) | | | (91,267) | |
Acquisitions, net of cash acquired | | (2,852,279) | | | (14,380,170) | |
Net cash used in investing activities | | (3,053,871) | | | (14,471,437) | |
| | | | | | |
Cash flows from financing activities: | | | | | | |
Net revolving credit facility borrowings (repayments) | | (2,047,502) | | | 17,827,817 | |
Proceeds from stock option exercises | | 35,600 | | | - | |
Tax benefit from non-qualified stock option exercises | | 205,279 | | | - | |
Principal payments on capital leases and notes payable | | (174,375) | | | (27,600) | |
Net cash provided by (used in) financing activities | | (1,980,998) | | | 17,800,217 | |
| | | | | | |
Cash flows from discontinued operations: | | | | | | |
Operating activities | | (8,686) | | | (43,684) | |
Investing activities | | - | | | - | |
Financing activities | | - | | | - | |
Net cash used in discontinued operations | | (8,686) | | | (43,684) | |
| | | | | | |
Net decrease in cash and cash equivalents | | (1,156,393) | | | (168,113) | |
Cash and cash equivalents at beginning of period | | 1,301,178 | | | 473,222 | |
Cash and cash equivalents at end of period | $ | 144,785 | | $ | 305,109 | |
| | | | | | |
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 Reports First Quarter 2009 Results |
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
| | Three months ended March 31, | |
| | 2009 | | | 2008 | | | Change | |
| | Amount | | % Rev | | | Amount | | % Rev | | | Amount | | % | |
Net service revenues: | | | | | | | | | | | | | | | |
Visiting Nurse | $ | 58,747,796 | | 84.9 | % | $ | 29,838,258 | | 76.5 | % | $ | 28,909,538 | | 96.9 | % |
Personal Care | | 10,447,378 | | 15.1 | % | | 9,188,695 | | 23.5 | % | | 1,258,683 | | 13.7 | % |
| $ | 69,195,174 | | 100.0 | % | $ | 39,026,953 | | 100.0 | % | $ | 30,168,221 | | 77.3 | % |
Operating income: | | | | | | | | | | | | | | | |
Visiting Nurse | $ | 12,152,032 | | 20.7 | % | $ | 5,454,669 | | 18.3 | % | $ | 6,697,363 | | 122.8 | % |
Personal Care | | 1,120,298 | | 10.7 | % | | 741,494 | | 8.1 | % | | 378,804 | | 51.1 | % |
| | 13,272,330 | | 19.2 | % | | 6,196,163 | | 15.9 | % | | 7,076,167 | | 114.2 | % |
Operating income before unallocated corporate expense | | 3,687,629 | | 5.3 | % | | 1,747,217 | | 4.5 | % | | 1,940,412 | | 111.1 | % |
Operating income | | 9,584,701 | | 13.9 | % | | 4,448,946 | | 11.4 | % | | 5,135,755 | | 115.4 | % |
Interest expense, net | | 312,962 | | 0.5 | % | | 208,001 | | 0.5 | % | | 104,961 | | 50.5 | % |
Income tax | | 3,668,129 | | 5.3 | % | | 1,666,335 | | 4.3 | % | | | | 120.1 | % |
Net income from continuing operations | $ | 5,603,610 | | 8.1 | % | $ | 2,574,610 | | 6.6 | % | $ | 3,029,000 | | 117.6 | % |
| | | | | | | | | | | | | | | |
EBITDA from continuing operations | $ | 10,442,405 | | 15.1 | % | $ | 4,880,870 | | 12.5 | % | $ | 5,561,536 | | 113.9 | % |
Almost Family Reports First Quarter 2009 Results |
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE (VN) SEGMENT-OPERATING METRICS
| | Three months ended March 31, | |
| | 2009 | | | 2008 | | | Change | | |
| | Amount | | | Amount | | | Amount | % | |
Average number of locations | | 74 | | | 55 | | | 19 | 35 | % |
| | | | | | | | | | |
All payors: | | | | | | | | | | |
Admissions | | 12,718 | | | 8,410 | | | 4,308 | 51.2 | % |
Billable visits | | 371,451 | | | 187,340 | | | 184,111 | 98.3 | % |
| | | | | | | | | | |
Medicare statistics: | | | | | | | | | | |
Revenue | $ | 52,197,746 | | $ | 27,969,326 | | $ | 24,228,419 | 86.6 | % |
Percentage of total revenues | | 88.9% | | | 93.7% | | | | | |
Billable visits | | 314,737 | | | 170,405 | | | 144,332 | 84.7 | % |
Admissions | | 11,535 | | | 7,585 | | | 3,950 | 52.1 | % |
Episodes started | | 18,103 | | | 10,354 | | | 7,750 | 74.8 | % |
| | | | | | | | | | |
Revenue per completed episode | $ | 3,173 | | $ | 3,116 | | $ | 57 | 1.8 | % |
Visits per episode | | 17.3 | | | 17.0 | | | 0.3 | 2.1 | % |
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE (PC) SEGMENT-OPERATING METRICS
| | Three months ended March 31, | |
| | 2009 | | | 2008 | | | Change | | | |
| | Amount | | | Amount | | | Amount | | % | |
Average number of locations | | 23 | | | 23 | | | - | | - | |
| | | | | | | | | | | |
Admissions | | 909 | | | 880 | | | 29 | | 3.3 | % |
Patient days of care | | 165,150 | | | 133,342 | | | 31,808 | | 23.9 | % |
Billable hours | | 595,821 | | | 516,288 | | | 79,533 | | 15.4 | % |
| | | | | | | | | | | |
Revenue per billable hour | $ | 17.53 | | $ | 17.80 | | $ | (0.26) | | -1.5 | % |
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.
Almost Family Reports First Quarter 2009 Results |
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 March 30, |
| | 2009 | | | 2008 | |
Net income from continuing operations | $ | 5,603,610 | | $ | 2,574,610 | |
| | | | | | |
Add back: | | | | | | |
Interest expense | | 312,962 | | | 208,001 | |
Income taxes | | 3,668,129 | | | 1,666,335 | |
Depreciation and amortization | | 528,378 | | | 305,882 | |
Amortization of stock-based compensation | | 329,326 | | | 126,042 | |
Earnings before interest, income taxes, depreciation and amortization (EBITDA) from continuing operations | $ | 10,442,405 | | $ | 4,880,870 | |
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
Almost Family Reports First Quarter 2009 Results |
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.
