Exhibit 99.1
FOR IMMEDIATE RELEASE November 14, 2005
Almost Family Announces Quarterly Results and Other Matters
Louisville, KY - Almost Family, Inc. (NASDAQ:AFAM) today announced the following
news items:
o For the quarter ended September 30, 2005, the Company reported earnings
from continuing operations per diluted share of $0.15 as compared to
$0.10 for the quarter ended September 30, 2004.
o The Company reported a gain of $1.90 per diluted share on the
previously announced sale of its adult day care segment.
o In a separate release, the Company announced the acquisition of a
St. Augustine FL based home health agency, the Company's fourth such
acquisition since October 2004.
o Also in a separate report on Form 8-K filed today with the SEC, the
Company has reported the amendment of its previously filed 2004 Form
10-K. The amendment follows a routine review of the filing by the SEC
Staff after which the Company was asked to reconsider its accounting
for certain contingent liability matters. The revisions to the report
are non-cash and relate to previously disclosed matters arising in 2003
and prior fiscal years. Refer to the Form 8-K and related Form 10-K/A
amendment also filed today for additional information.
Quarterly Earnings Release
Net income from continuing operations grew 54% to $397,457 or $0.15 per diluted
share for the September 2005 quarter as compared to $258,537 or $0.10 per
diluted share in the September 2004 quarter. Revenues grew 15% to $18.5 million
in the September 2005 quarter from $16 million in the September 2004 quarter.
Net Income including discontinued operations, was $5,378,860 or $2.04 per
diluted share including a gain on the sale of the adult day care segment of
$5,003,485 in the quarter ended September 30, 2005 and $404,628 or $0.16 per
diluted share in 2004.
Revenues in the Company's Caretenders Visiting Nurse (VN) segment grew 28% over
the same period last year. The April 1, 2005 acquisition of a Bradenton, FL VN
agency added approximately $900,000 in revenues and $95,000 in net income or
$0.04 per diluted share to operating results in the September 2005 quarter.
Net income from continuing operations for the September 2005 quarter included
net of tax operating losses of $32,000 or $0.01 per diluted share related to VN
startup operations opened or acquired late in 2004 and first quarter 2005.
Related revenues were approximately $830,000.
William B. Yarmuth, AFAM's Chairman and CEO commented on the quarterly results:
"We are pleased with our operating results for this quarter which is seasonally
our lowest performing quarter. Our VN segment operations generated 28% revenue
growth on an overall basis, primarily due to our acquisition and startup
activities. The completion of the ADC sale, along with the large gain on the
sale, and the substantial amount of cash received will enable us to improve our
focus on our strategic growth objectives. The acquisition of the St. Augustine
agency provides early evidence of that improved focus. Our development
activities have created a nice pipeline of acquisition opportunities and we
expect to bring additional transactions to fruition over the course of the next
year."
Results of operations for the quarters ended September 30, 2005 and 2004 are set
forth in the tables below:
September September
2005 2004 Change
--------------------- ---------- -------------------- ---------- ----------------- ----------
Amount % Rev Amount % Rev Amount %
--------------------- ---------- -------------------- ---------- ----------------- ----------
Net Revenues
Home Health Care
Visiting Nurses $ 9,663,903 52.2% $ 7,555,941 47.1% $ 2,107,962 27.9%
Personal Care 8,844,469 47.8% 8,479,334 52.9% 365,135 4.3%
--------------------- -------------------- -----------------
$ 18,508,372 100.0% $ 16,035,275 100.0% $ 2,473,097 15.4%
===================== ==================== =================
Operating Income
Home Health Care
Visiting Nurses $ 1,025,828 5.5% $ 1,022,014 6.4% $ 3,814 0.4%
Personal Care 956,935 5.2% 720,146 4.5% 236,790 32.8%
--------------------- -------------------- -----------------
1,982,763 10.7% 1,742,160 10.9% 240,604 13.8%
Unallocated Corp Expenses 1,265,261 6.8% 1,237,166 7.7% 28,095 2.2%
--------------------- -------------------- -----------------
717,503 3.9% 504,994 3.1% 212,509 42.1%
Interest Expense 70,178 0.4% 67,475 0.4% 2,704 4.0%
--------------------- -------------------- -----------------
Pre-Tax Income 647,324 3.5% 437,519 2.7% 209,805 48.0%
Income Taxes 249,867 1.4% 178,982 1.1% 70,885 39.6%
--------------------- -------------------- -----------------
Net Income from Continuing
Operations $ 397,457 2.1% $ 258,537 1.6% $ 138,920 53.7%
Income (loss) from discontinued
operations, net of tax (22,082) 146,091 (168,174) -115.1%
Gain on sale, net of tax 5,003,485 - 5,003,485 NM
--------------------- -------------------- -----------------
Net Income $ 5,378,860 $ 404,628 $ 4,974,233 NM
===================== ==================== =================
Diluted Earnings Per Share
Diluted Shares Outstanding 2,639,214 2,555,930 83,284 3.3%
Continuing Operations $ 0.15 $ 0.10 $ 0.05 48.9%
Discontinued Operations (0.01) 0.06 (0.07) -116.7%
Gain on Sale 1.90 - 1.90 NM
--------------------- -------------------- -----------------
$ 2.04 $ 0.16 $ 1.88 NM
===================== ==================== =================
Continuing Operations:
EBITDA $ 1,054,025 $ 856,044 $ 197,981 23.1%
Effective Tax Rate 38.6% 40.9% (2.3%)
Year to Date Results
Net income from continuing operations grew 28% to $1,603,766 or $0.61 per
diluted share for the nine months ended September 2005 as compared to $1,257,453
or $0.49 per diluted share in the nine months ended September 2004. Revenues
grew 15% to $56.2 million in the nine months ended September 2005 from $48.8
million in the nine months ended September 2004.
Net Income including discontinued operations, was $6,385,432 or $2.43 per
diluted share including a gain on the sale of the adult day care segment of
$5,003,485 in the nine months ended September 30, 2005 and $1,100,779 or $0.43
per diluted share in 2004.
Revenues in the VN segment grew 24% over the same period last year. The April 1,
2005 acquisition of a Bradenton, FL VN agency added approximately $1.9 million
in revenues and $227,000 in net income or $0.09 per diluted share to operating
results for the nine months ended September 2005. Net income from continuing
operations for the nine months ended September 2005 included net of tax
operating losses of $279,000 or $0.11 per diluted share related to VN startup
operations opened or acquired late in 2004 and first quarter 2005. Related
revenues were approximately $1.7 million.
Results of operations for the nine months ended September 30, 2005 and 2004 are
set forth in the tables below:
September September
2005 2004 Change
--------------------- --------- --------------------- ---------- ----------------- ----------
Amount % Rev Amount % Rev Amount %
--------------------- --------- --------------------- ---------- ----------------- ----------
Net Revenues
Home Health Care
Visiting Nurses $ 29,637,290 52.7% $ 24,005,398 49.1% $ 5,631,892 23.5%
Personal Care 26,606,276 47.3% 24,869,853 50.9% 1,736,423 7.0%
--------------------- --------------------- -----------------
$ 56,243,566 100.0% $ 48,875,251 100.0% 7,368,315 15.1%
===================== ===================== =================
Operating Income
Home Health Care
Visiting Nurses $ 4,344,796 7.7% $ 4,168,904 8.5% $ 175,892 4.2%
Personal Care 2,691,656 4.8% 1,968,745 4.0% 722,911 36.7%
--------------------- --------------------- -----------------
7,036,452 12.5% 6,137,649 12.6% 898,803 14.6%
Unallocated Corp Expenses 4,235,415 7.5% 3,786,727 7.7% 448,688 11.8%
--------------------- --------------------- -----------------
2,801,037 5.0% 2,350,922 4.8% 450,115 19.1%
Interest Expense 182,041 0.3% 244,115 0.5% (62,074) -25.4%
--------------------- --------------------- -----------------
Pre-Tax Income 2,618,996 4.7% 2,106,807 4.3% 512,189 24.3%
Income Taxes 1,015,230 1.8% 849,354 1.7% 165,876 19.5%
--------------------- --------------------- -----------------
Net Income from Continuing
Operations $ 1,603,766 2.9% $ 1,257,453 2.6% $ 346,313 27.5%
Income (loss) from discontinued
operations, net of tax (221,819) (156,674) (65,146) 41.6%
Gain on Sale 5,003,485 - 5,003,485 NM
--------------------- --------------------- -----------------
Net Income $ 6,385,432 $ 1,100,779 $ 5,284,653 NM
===================== ===================== =================
Diluted Earnings Per Share
Diluted Shares Outstanding 2,629,386 2,553,450 75,471 3.0%
Continuing Operations $ 0.61 $ 0.49 $ 0.12 23.9%
Discontinued Operations (0.08) (0.06) (0.02) 22.8%
Gain on Sale 1.90 - 1.90 NM
--------------------- --------------------- -----------------
$ 2.43 $ 0.43 $ 2.00 NM
===================== ===================== =================
Continuing Operations:
EBITDA 3,782,607 3,379,927 402,680 11.9%
Effective Tax Rate 38.8% 40.3% (1.6%)
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 net income to EBITDA:
Quarter Ended September 30,
------------------------ ------------------------
2005 2004
------------------------ ------------------------
Net Income from continuing operations $ 397,457 $ 258,537
Add Back:
Interest Expense 70,179 67,475
Income Taxes 249,867 178,982
Depreciation & Amortization 336,531 351,050
------------------------ ------------------------
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA) from
continuing operations $ 1,054,034 $ 856,044
======================== ========================
Nine Months Ended September 30,
------------------------ ------------------------
2005 2004
------------------------ ------------------------
Net Income from continuing operations $ 1,603,766 $ 1,257,453
Add Back:
Interest Expense 182,041 244,115
Income Taxes 1,015,230 849,354
Depreciation & Amortization 981,570 1,029,005
------------------------ ------------------------
Earnings Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA) from
continuing operations $ 3,782,607 $ 3,379,927
======================== ========================
Gain on Sale of ADC Segment and Reclassification of ADC Operations
On September 30, 2005 the Company completed the previously announced sale of its
ADC operating segment for $13.6 million in cash plus assumption of certain
liabilities. The transaction resulted in the reporting of an after tax gain of
approximately $5 million or $1.90 per diluted share reported in the quarter and
nine month periods ended September 30, 2005. The reported gain is subject to
change following the completion of the final purchase price adjustment between
the parties and potentially further refinement of the estimated income tax
provision by the end of the Company's fiscal year.
As of September 30, 2005, the Company's balance sheet reflects cash of
approximately $10 million ($1 million restricted) of which approximately $5
million will be used to fund retained liabilities (primarily income taxes)
related to the transactions. The Company expects the balance of the retained
liabilities to be less than $1 million as December 31, 2005.
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, 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, the Company's ability to accelerate growth in its home health
operations, the Company's ability to generate VN revenue growth, the Company's
ability to acquire visiting nurse agencies at prices it is willing to pay, the
Company's ability to increase the efficiency and effectiveness of its sales and
marketing efforts, the Company's ability to generate positive cash flows, 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: 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 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, 2004, 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.