Almost Family (AFAM) 8-K Almost Family Reports Second Quarter 2010 Results

                                                                                                       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 Second Quarter 2010 Results

Second Quarter Highlights:

·   Net service revenues increased 15% to $85.6 million

·   Visiting Nurse (VN) segment net revenues rose 17% to $74.9 million

·   Net income increased 39% to $8.3 million

·   Diluted EPS increased 25% to $0.89 per share on 12% more shares outstanding

·   Lower insurance claims, Medicare rural rate add-on and pay-for-performance revenue, net of higher professional fees, net to favorable $0.05 impact on diluted EPS

·   Approximately $100 million in cash plus credit facility available to fund acquisitions

Louisville, KY, August 4, 2010 – Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing services, announced today its financial results for the three months ended June 30, 2010.

William Yarmuth, President and Chief Executive Officer, commented, “Our second quarter results demonstrate the fundamental strength of our business and our ability to balance investing in our growth with controlling costs. We achieved 16% organic revenue growth in our VN segment, reflecting the success of our Senior Advocacy Mission in the communities we serve.”

Mr. Yarmuth added, “Given CMS's recently proposed updates to 2011 and 2012 home health reimbursement, one of our key initiatives in the industry is to work with CMS to ensure that home health continues to be an important part of the solution to lowering health care costs and ensuring America’s seniors remain in their home, where they want to be.”

Second Quarter Financial Results

Almost Family reported second quarter 2010 net service revenues of $85.6 million, a 15% increase from $74.6 million in the second quarter of 2009.

Net income for the second quarter of 2010 was $8.3 million, or $0.89 per diluted share, compared to $6.0 million, or $0.71 per diluted share, in the second quarter of 2009.  The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 12% between periods.

Second quarter 2010 net income benefitted from lower healthcare insurance costs, higher reimbursement in rural-areas, and additional revenue from Medicare’s “Pay for Performance” program. It also included increased legal fees associated with the Senate Finance

Committee’s request for information. The net impact of these items on second quarter 2010 net income was a positive $0.05 per diluted share.

Second Quarter Segment Results

Net revenues in the Visiting Nurse segment for the second quarter of 2010 were $74.9 million, a 17% increase from $64.0 million in the second quarter of 2009.  The total revenue growth of $11.0 million came from a 16% organic growth rate plus $1.0 million from acquired operations.  Organic Medicare admissions growth was 9% and organic Medicare Episodic growth was 9%.  Operating income before corporate expense in the VN segment for the second quarter of 2010 was $17.7 million, a 33% increase from $13.4 million in the second quarter of 2009.

Net revenues in the Personal Care (PC) segment for the second quarter of 2010 and 2009 were flat at approximately$10.6 million.  Operating income before unallocated corporate expense in the PC segment for the second quarter of 2010 was $1.5 million, a 21% increase from $1.2 million in the second quarter of 2009.

Six Month Period Ended June 30, 2010

Almost Family reported net service revenues for the six month period ended June 30, 2010 of $167.4 million, a 17% increase from $143.5 million in the same period of 2009.

Net income for the six month period of 2010 was $15.8 million, or $1.69 per diluted share, compared to $11.6 million, or $1.40 per diluted share, in the six month period of 2009.  The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 13% between periods.

Six Month Period Segment Results

Net revenues in the Visiting Nurse segment for the six month period of 2010 were $146.5 million, a 19% increase from $122.7 million in the six month period of 2009.  The total revenue growth of $23.8 million came from an 18% organic growth rate plus $2.0 million from acquired operations.  Organic Medicare admissions growth was 11% and organic Medicare Episodic growth was 13%.  Operating income before corporate expense in the VN segment for the six month period of 2010 was $33.6 million, a 31% increase from $25.7 million in the six month period of 2009.

Net revenues in the Personal Care (PC) segment for the six month period of 2010 and 2009 were flat at approximately $20.8 million.  Operating income before unallocated corporate expense in the PC segment for the six month period of 2010 was $2.7 million, a 17% increase from $2.3 million in the six month period of 2009.

Regulatory Inquiries

As previously announced the Company is continuing to cooperate fully with investigators from the U.S. Senate Finance Committee and the U.S. Securities and Exchange Commission regarding their inquiries following an April 27, 2010 Wall Street Journal article related to Medicare home health therapy services.  During the quarter ended June 30, 2010 the Company incurred approximately $250,000 of professional fees associated with these inquiries.  As further described in the Company's quarterly report on Form 10-Q filed today, four derivative complaints have been filed against the Company's board of directors and chief financial officer and one putative class action law suit has been filed against the Company and its chief executive officer and chief financial officer. Refer to the Form 10-Q for additional information.

2

Conference Call

A conference call to review the results will begin at 11:00 a.m. ET on August 4, 2010, 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 4, 2010 at 2:00 p.m. ET and ending on August 18, 2010. The replay telephone number is 1-877-870-5176 (USA) or 1-858-384-5517 (International). Passcode: 353864.

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 4, 2010 at approximately 2:00 p.m. ET and will remain available until September 4, 2010.

3

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
	Three Months ended June 30,
	2010			2009
Net service revenues	$	85,606		$	74,594
Cost of service revenues (excluding depreciation and amortization)		38,629			34,498
Gross margin		46,977			40,096
General and administrative expenses:
Salaries and benefits		22,879			20,670
Other		10,078			9,307
Total general and administrative expenses		32,957			29,977
Operating income		14,020			10,119
Interest expense, net		(61	)		(204	)
Income from continuing operations before income taxes		13,959			9,915
Income tax expense		(5,618	)		(3,866	)
Net income from continuing operations		8,341			6,049
Discontinued operations, net of tax benefits of ($.5) and $36		1			(55	)
Net income	$	8,342		$	5,994
Per share amounts-basic:
Average shares outstanding		9,110			8,176
Income from continued operations	$	0.92		$	0.74
Loss from discontinued operations		-			(0.01	)
Net income	$	0.92		$	0.73
Per share amounts-diluted:
Average shares outstanding		9,366			8,389
Income from continued operations	$	0.89		$	0.72
Loss from discontinued operations		-			(0.01	)
Net income	$	0.89		$	0.71

4

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
	Six Months ended June 30,
	2010			2009
Net service revenues	$	167,384		$	143,534
Cost of service revenues (excluding depreciation and amortization)		76,215			66,713
Gross margin		91,169			76,821
General and administrative expenses:
Salaries and benefits		45,193			39,672
Other		19,362			17,462
Total general and administrative expenses		64,555			57,134
Operating income		26,614			19,687
Interest expense, net		(150	)		(517	)
Income from continuing operations before income taxes		26,464			19,170
Income tax expense		(10,651	)		(7,528	)
Net income from continuing operations		15,813			11,642
Discontinued operations, net of tax benefits of $19 and $34		(28	)		(53	)
Net income	$	15,785		$	11,589
Per share amounts-basic:
Average shares outstanding		9,079			8,164
Income from continued operations	$	1.74		$	1.43
Loss from discontinued operations		-			(0.01	)
Net income	$	1.74		$	1.42
Per share amounts-diluted:
Average shares outstanding		9,354			8,278
Income from continued operations	$	1.69		$	1.41
Loss from discontinued operations		-			(0.01	)
Net income	$	1.69		$	1.40

5

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
	June 30, 2010
ASSETS	(UNAUDITED)			December 31, 2009
CURRENT ASSETS:
Cash and cash equivalents	$	31,352		$	19,389
Accounts receivable - net		41,333			35,121
Prepaid expenses and other current assets		2,456			2,544
Deferred tax assets		8,111			7,786
TOTAL CURRENT ASSETS		83,252			64,840
PROPERTY AND EQUIPMENT - NET		4,353			4,291
GOODWILL		99,134			99,133
OTHER INTANGIBLE ASSETS		14,387			14,538
OTHER ASSETS		588			587
	$	201,714		$	183,389
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	3,912		$	3,360
Accrued other liabilities		20,613			20,076
Current portion - capital leases and notes payable		1,688			1,836
TOTAL CURRENT LIABILITIES		26,213			25,272
LONG-TERM LIABILITIES:
Revolving credit facility		-			-
Capital lease obligations		-			40
Notes payable		1,300			2,800
Deferred tax liabilities		6,673			5,258
Other liabilities		885			1,042
TOTAL LONG-TERM LIABILITIES		8,858			9,140
TOTAL LIABILITIES		35,071			34,412
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.05; authorized
2,000 shares; none issued or outstanding		-			-
Common stock, par value $0.10; authorized
25,000; 9,251 and 9,151
issued and outstanding		925			915
Treasury stock, at cost, 2 and 0 shares		(70	)		-
Additional paid-in capital		96,407			94,465
Retained earnings		69,381			53,597
TOTAL STOCKHOLDERS' EQUITY		166,643			148,977
	$	201,714		$	183,389

6

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
	Six Months ended June 30,
	2010			2009
Cash flows from operating activities:
Net income	$	15,785		$	11,589
Loss from discontinued operations		(28	)		(53	)
Income from continuing operations		15,813			11,642
Adjustments to reconcile income from continuing operations to
net cash provided by operating activities:
Depreciation and amortization		1,366			1,152
Provision for uncollectible accounts		1,854			1,902
Stock-based compensation		871			772
(Gain) Loss from sale of asset		(2	)		-
Deferred income taxes		1,090			8
		20,992			15,476
Change in certain net assets and liabilities, net of the effects of      acquisitions:
(Increase) decrease in:
Accounts receivable		(8,067	)		(5,309	)
Prepaid expenses and other current assets		(4	)		301
Other assets		(1	)		(49	)
Increase (decrease) in:
Accounts payable and accrued expenses		932			(1,354	)
Net cash provided by operating activities		13,852			9,065
Cash flows from investing activities:
Capital expenditures		(1,196	)		(479	)
Cash proceeds from sale of asset		13			-
Acquisitions, net of cash acquired		(1	)		(6,407	)
Net cash used in investing activities		(1,184	)		(6,886	)
Cash flows from financing activities:
Net revolving credit facility (repayments) borrowings		-			1,557
Proceeds from exercise of stock options		380			84
Purchase of common stock in connection with exercise of stock options		(628	)		(6	)
Tax benefit from exercise of non-qualified stock options		1,258			211
Principal payments on capital leases and notes payable		(1,687	)		(4,220	)
Net cash used in financing activities		(677	)		(2,374	)
Cash flows from discontinued operations:
Operating activities		(28	)		(53	)
Investing activities		-			-
Financing activities		-			-
Net cash used in discontinued operations		(28	)		(53	)
Net increase (decrease) in cash and cash equivalents		11,963			(248	)
Cash and cash equivalents at beginning of period		19,389			1,301
Cash and cash equivalents at end of period	$	31,352		$	1,053
Summary of non-cash investing and financing activities:
Value of stock withheld in lieu of payroll taxes	$	628		$	6

7

ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
	Three Months ended June 30,
	2010					2009					Change
	Amount		% Rev			Amount		% Rev			Amount			%
Net service revenues:
Visiting Nurse	$	74,947		87.5	%	$	63,957		85.7	%	$	10,990			17.2	%
Personal Care		10,659		12.5	%		10,637		14.3	%		22			0.2	%
	$	85,606		100.0	%	$	74,594		100.0	%	$	11,012			14.8	%
Operating income before corporate expenses:
Visiting Nurse	$	17,698		23.6	%	$	13,356		20.9	%	$	4,342			32.5	%
Personal Care		1,495		14.0	%		1,239		11.6	%		256			20.7	%
		19,193		22.4	%		14,595		19.6	%		4,598			31.5	%
Corporate expenses		5,173		6.0	%		4,476		6.0	%		697			15.6	%
Operating income		14,020		16.4	%		10,119		13.6	%		3,901			38.6	%
Interest expense, net		61		0.1	%		204		0.3	%		(143	)		-70.1	%
Income tax expense		5,618		6.6	%		3,866		5.2	%		1,752			45.3	%
Net income from continuing operations	$	8,341		9.7	%	$	6,049		8.1	%	$	2,292			37.9	%
EBITDA from continuing operations	$	15,158		17.7	%	$	11,139		14.9	%	$	4,019			36.1	%

8

ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
	Six Months ended June 30,
	2010					2009					Change
	Amount		% Rev			Amount		% Rev			Amount			%
Net service revenues:
Visiting Nurse	$	146,488		87.5	%	$	122,705		85.5	%	$	23,783			19.4	%
Personal Care		20,896		12.5	%		20,830		14.5	%		66			0.3	%
	$	167,384		100.0	%	$	143,535		100.0	%	$	23,849			16.6	%
Operating income before corporate expenses:
Visiting Nurse	$	33,581		22.9	%	$	25,657		20.9	%	$	7,924			30.9	%
Personal Care		2,746		13.1	%		2,342		11.2	%		404			17.3	%
		36,327		21.7	%		27,999		19.5	%		8,328			29.7	%
Corporate expenses		9,713		5.8	%		8,312		5.8	%		1,401			16.9	%
Operating income		26,614		15.9	%		19,687		13.7	%		6,927			35.2	%
Interest expense, net		150		0.1	%		517		0.4	%		(367	)		-71.0	%
Income tax expense		10,651		6.4	%		7,528		5.2	%		3,123			41.5	%
Net income from continuing operations	$	15,813		9.4	%	$	11,642		8.1	%	$	4,171			35.8	%
EBITDA from continuing operations	$	28,851		17.2	%	$	21,611		15.1	%	$	7,240			33.5	%

9

ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
	Three Months ended June 30,
	2010					2009					Change
	Amount		% Rev			Amount		% Rev			Amount			%
Average number of locations		87					77					10			13.0	%
All payors:
Patients Months		51,850					46,940					4,910			10.5	%
Admissions		14,408					12,994					1,414			10.9	%
Billable Visits		476,313					406,360					69,953			17.2	%
Medicare Statisitics:
Revenue (in thousands)	$	68,958		92.0	%	$	57,520		89.9	%	$	11,438			19.9	%
Billable visits		400,296					349,792					50,504			14.4	%
Admissions		13,093					11,869					1,224			10.3	%
Episodes		21,447					18,893					2,554			13.5	%
Revenue per completed episode	$	3,182				$	2,972				$	210			7.1	%
Visits per episode		18.1					17.7					0.4			2.3	%
PERSONAL CARE
RESULTS OF OPERATION
	Three Months ended June 30,
	2010					2009					Change
	Amount					Amount					Amount			%
Average number of locations		23					23					-			0.0	%
Admissions		763					827					(64	)		-7.7	%
Patient months of care		11,831					11,825					6			0.1	%
Patient days of care		152,964					151,117					1,847			1.2	%
Billable hours		583,722					593,771					(10,049	)		-1.7	%
Revenue per billable hour	$	18.26				$	17.91				$	0.35			1.9	%

10

ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
	Six Months ended June 30,
	2010					2009					Change
	Amount		% Rev			Amount		% Rev			Amount			%
Average number of locations		86					76					10			13.2	%
All payors:
Patients Months		102,371					90,061					12,310			13.7	%
Admissions		29,077					25,654					3,423			13.3	%
Billable Visits		937,176					777,811					159,365			20.5	%
Medicare Statisitics:
Revenue (in thousands)	$	134,504		91.8	%	$	109,718		89.4	%	$	24,786			22.6	%
Billable visits		782,721					664,529					118,192			17.8	%
Admissions		26,360					23,352					3,008			12.9	%
Episodes		41,871					36,167					5,704			15.8	%
Revenue per completed episode	$	3,150				$	2,939				$	211			7.2	%
Visits per episode		18.0					17.5					0.5			2.9	%
PERSONAL CARE
RESULTS OF OPERATION
	Six Months ended June 30,
	2010					2009					Change
	Amount					Amount					Amount			%
Average number of locations		23					22					1			4.5	%
Admissions		1,585					1,682					(97	)		-5.8	%
Patient months of care		23,630					23,518					112			0.5	%
Patient days of care		301,623					296,578					5,045			1.7	%
Billable hours		1,154,415					1,164,019					(9,604	)		-0.8	%
Revenue per billable hour	$	18.10				$	17.89				$	0.21			1.2	%

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

11

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
(In thousands)
	Three Months ended June 30,				Six Months ended June 30,
	2010		2009		2010		2009
Net income from continuing operations	$	8,341	$	6,049	$	15,813	$	11,642
Add back:
Interest expense		61		204		150		517
Income tax expense		5,618		3,866		10,651		7,528
Depreciation and amortization		698		578		1,366		1,152
Amortization of stock-based compensation		440		442		871		772
Earnings before interest, income taxes,  depreciation and amortization (EBITDA)  from continuing operations	$	15,158	$	11,139	$	28,851	$	21,611

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 o perations; government regulation; health care reform; pricing pressures from Medicare,

12

Medicaid and other third-party payers; changes in laws and interpretations of laws relating to the healthcare industry; potential audits and investigations by governmental and regulatory agencies; including the impact of any negative publicity or litigation; 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, 2009, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and “Risk Factors” and the Company's subsequent quarterly and current reports.  The Company undertakes no obligation to update or re vise its forward-looking statements.

13