Exhibit 99.1
FOR IMMEDIATE RELEASE May 8, 2006
Almost Family Announces Quarterly Results
First Quarter 2006 EPS from Continuing Operations up 61% over 2005
Louisville, KY - Almost Family, Inc. (NASDAQ:AFAM) today announced its operating
results for the quarter ending March 31, 2006.
First Quarter Financial Highlights
o Net Income From Continuing Operations -- As Reported was $911,740 or
$0.34 per diluted share in the quarter ended March 31, 2006 as compared
to $559,062 or $0.21 per diluted share in the same quarter of 2005.
o Consolidated revenues increased approximately 14% over the same quarter last
year
o The Company's VN segment revenues grew 25% over the same quarter last
year.
William B. Yarmuth, AFAM's Chairman and CEO commented on the results:
"We are very pleased with our operating results for the first quarter,
continuing the strong performance we exhibited in 2005. VN revenue continued to
grow at a 25% rate including acquisitions and startups, and grew 8% on a same
store basis. Our strong EPS growth continues to reflect the successful execution
of our strategic plan. Consistent with that plan, our VN segment is now
generating 57% of consolidated revenues and our operating margin has increased
to 7.0% in 2006 as compared to 5.4% in 2005."
"We remain optimistic about the prospects for our future growth and
development." Last month we completed and announced the acquisition of a $1.7
million revenue Ocala FL based home health agency marking our fifth transaction
in about a year and half. Our development efforts continue to provide us with a
very nice supply of VN acquisition candidates at good prices and we hope to
complete additional transactions in 2006."
Quarterly Discussion
Net Income From Continuing Operations - As Reported grew 63% to $911,740 or
$0.34 per diluted share for the March 2006 quarter as compared to $559,062 or
$0.21 per diluted share in the March 2005 quarter. Revenues grew 14% to $20.8
million in the March 2006 quarter from $18.3 million in the March 2005 quarter.
Revenues in the Company's "Caretenders" Visiting Nurse (VN) segment grew 25%
over the same period last year. Acquired operations contributed approximately
$1.5 million of that revenue growth while also contributing $0.08 per diluted
share to operating results in the March 2006 quarter. The balance of the
Company's revenue and earnings increase came from internal growth.
Net income including discontinued operations, was $845,662 or $0.32 per diluted
share in the quarter ended March 31, 2006 and $383,934 or $0.15 per diluted
share in 2005. Discontinued operations include the Company's Evansville IN
operations which were closed in the March 2006 quarter.
As noted in our Form 10-K for the year ended December 31, 2005, our Visiting
Nurse segment operations located in Florida normally experience higher
admissions during the March quarter than in the other quarters due to seasonal
population fluctuations.
Results of operations for the quarters ended March 31, 2006 and 2005 are set
forth in the tables below:
March March
2006 2005 Change
--------------------- -------- -------------------- --------- ----------------- ----------
Amount % Rev Amount % Rev Amount %
--------------------- -------- -------------------- --------- ----------------- ----------
Net revenues
Visiting Nurses $ 11,943,043 57.4% $ 9,543,132 52.1% $ 2,399,911 25.1%
Personal Care 8,850,815 42.6% 8,756,432 47.9% 94,383 1.1%
--------------------- -------------------- -----------------
$ 20,793,858 100.0% $ 18,299,564 100.0% $ 2,494,294 13.6%
===================== ==================== =================
Operating income
Visiting Nurses $ 2,029,679 9.8% $ 1,686,071 9.2% $ 343,608 20.4%
Personal Care 546,434 2.6% 624,763 3.4% (78,329) -12.5%
--------------------- -------------------- -----------------
2,576,113 12.4% 2,310,834 12.6% 265,279 11.5%
Unallocated corporate expenses 1,129,194 5.4% 1,325,642 7.2% (196,448) -14.8%
--------------------- -------------------- -----------------
Operating income 1,446,919 7.0% 985,192 5.4% 461,727 46.9%
Interest expense/(income) (37,999) -0.2% 55,236 0.3% (93,235) -168.8%
--------------------- -------------------- -----------------
Pre-tax income 1,484,918 7.1% 929,956 5.1% 554,962 59.7%
Income taxes 573,178 2.8% 370,894 2.0% 202,284 54.5%
--------------------- -------------------- -----------------
Net income from continuing
Operations $ 911,740 4.4% $ 559,062 3.1% $ 352,678 63.1%
Income (loss) from discontinued
operations, net of tax (66,078) (175,128) 109,050 -62.3%
--------------------- -------------------- -----------------
Net income $ 845,662 $ 383,934 $ 461,728 120.3%
===================== ==================== =================
Diluted earnings per share
Diluted shares outstanding 2,649,649 2,622,067 27,582 1.1%
Continuing operations $ 0.34 $ 0.21 $ 0.13 61.9%
Discontinued operations (0.02) (0.06) 0.04 NM
--------------------- -------------------- -----------------
$ 0.32 $ 0.15 $ 0.17 NM
===================== ==================== =================
Continuing Operations
EBITDA $ 1,725,324 $ 1,307,621 $ 417,703 31.9%
EBITDA margin (% of revenues) 8.3% 7.1% 1.2%
Effective tax rate 38.6% 39.9% -1.3%
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 -- As Reported to EBITDA:
Quarter Ended March 31,
-----------------------------------
2006 2005
--------------- ----------------
Net income from continuing operations -
As Adjusted $ 911,740 $ 559,062
Add back:
Interest expense (income) (37,999) 55,236
Income taxes 573,178 370,894
Depreciation & amortization 278,405 322,429
--------------- ----------------
Earnings from continuing operations
Before Interest, Income Taxes,
Depreciation & Amortization (EBITDA) - As
Adjusted $ 1,725,324 $ 1,307,621
=============== ================
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, Indiana and
Alabama (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 attract investment of additional
capital, 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, 2005, 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.