Exhibit 99.1
FOR IMMEDIATE RELEASE May 14, 2004
Almost Family Announces First Quarter Results - Net Income Up 26% Over
Prior Year
Louisville, KY - Almost Family, Inc. (NASDAQ:AFAM) today announced its operating
results for the three months ended March 31, 2004. Basic earnings per share were
$0.13 in 2004 versus $0.10 in the same quarter of 2003 for an increase of 30%.
The Company's VN revenue increased nearly 10%, while overall Home Health Care
revenue grew 5.4%. Adult Day Care revenue declined 6% primarily as a result of
store closings in late 2003.
The Company filed its Form 10-Q with the Securities and Exchange Commission
today. Please refer to that filing for additional information.
William B. Yarmuth, Chairman and CEO commented on the Company's results for the
quarter: "We are very pleased to report a 30% increase in earnings per share as
compared to the previous year. Our Visiting Nurse segment turned in strong
admissions, revenue and operating income growth. Focusing our attention on the
growth prospects of this segment continues to pay off. We have opened two new
Florida Medicare agencies in keeping with our plan to emphasize the development
of our VN segment. Additionally, the steps we took over the course of 2003 to
reduce general and administrative expenses throughout the Company are now
evident in our comparisons."
The Company also noted that the quarter ending March 31, typically generates
lower operating income than in the other quarters as the winter weather tends to
temporarily lower ADC in-center attendance. After removing the effect of adult
day care centers closed during 2003, all three of the Company's reportable
segments generated volume growth in the quarter.
Regarding the ADC segment results Yarmuth added: "The condition of the state
Medicaid programs continues to present challenges to the adult day care segment.
We are, however, beginning to see some encouraging signs of the recognition that
cuts over the past few years have been excessive. For example, in a recent case
a Federal court ordered Kentucky to reinstate thousands of Medicaid
beneficiaries who had been denied services since early in 2003. Ultimately, we
believe that Medicaid policy makers will see that home and community based
services like adult day care are effective tools in lowering total long-term
care spending." The Company added that it expects to see improved earnings from
the ADC segment in the June quarter.
Results of operations for the three months ended March 31, 2004 and 2003 are set
forth in the table below:
Consolidated 2004 2003 Change
------------
-------------------------- --------------------------- ----------------------------
Amount % Rev Amount % Rev Amount %
--------------- ---------- ---------------- ---------- -------------- -------------
Net Revenues
Home Health Care VN $ 8,341,410 37.9% $ 7,605,869 35.3% $ 735,541 9.7%
PC 8,101,892 36.9% 7,994,042 37.2% 107,850 1.3%
---------------- ---------------- --------------
16,443,302 74.8% 15,599,911 72.5% 843,391 5.4%
Adult Day Care 5,541,442 25.2% 5,917,734 27.5% (376,292) -6.4%
--------------- ---------------- --------------
$21,984,744 100.0% $ 21,517,645 100.0% $ 467,099 2.2%
=============== ================ ==============
Operating Income
Home Health Care VN $ 1,508,177 18.1% $ 1,269,732 16.7% $ 238,445 18.8%
PC 778,204 9.6% 1,024,863 12.8% (246,659) -24.1%
--------------- ---------------- --------------
2,286,381 13.9% 2,294,595 14.7% (8,214) -0.4%
Adult Day Care (134,189) -2.4% (127,844) -2.2% (6,345) 5.0%
--------------- ---------------- --------------
2,152,192 9.8% 2,166,751 10.1% (14,559) -0.7%
Unallocated corporate expenses 1,511,497 6.9% 1,592,674 7.4% (81,177) -5.1%
--------------- ---------------- --------------
Income before interest and taxes 640,695 2.9% 574,077 2.7% 66,618 11.6%
Facility gains (losses) 6,420 0.0% 2,605 0.0% 3,815 146.4%
Interest expense 144,843 0.7% 179,233 0.8% (34,390) -19.2%
Income taxes 200,909 0.9% 158,980 0.7% 41,929 26.4%
--------------- ---------------- --------------
Net income $ 301,363 1.4% $ 238,469 1.1% $ 62,894 26.4%
=============== ================ ==============
Earnings per share:
Basic $ 0.13 $ 0.10 $ 0.03 30.0%
Diluted $ 0.12 0.10 0.02 20.0%
Weighted average shares outstanding
Basic 2,296,527 2,289,465 7,062 0.3%
Diluted 2,556,781 2,476,900 79,881 3.2%
The Company's 2003 Form 10-K includes a description of its business plan which
calls for an increase in emphasis on the Visiting Nurse segment. In the quarter
ending March 31, 2004, the Company reorganized how it operates and changed its
reporting segments to more closely align with its business plan. In the
information above "VN" refers to the Company's Visiting Nurse segment, "PC"
refers to the Company's in-home Personal Care segment and "ADC" refers to the
Company's facility-based Adult Day Care 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).
Contact: William Yarmuth or Steve Guenthner (502) 891-1000.
All statements, other than statements of historical facts, included in this news
release, including the objectives and expectations of management for future
operating results, expectations for improved earnings from the ADC segment, the
Company's ability to generate same store sales growth, the Company's ability to
acquire visiting nurse agencies at prices it is willing to pay, the Company's
ability to attract investment of additional capital, 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: 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, 2003, 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.