Exhibit 99.1
ALMOST FAMILY ANNOUNCES FIRST QUARTER 2005 RESULTS
NET INCOME FROM CONTINUING OPERATIONS UP 25% OVER 2004
LOUISVILLE, Ky., May 9 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced its operating results for the quarter ended March
31, 2005. In the information that follows "VN" refers to the Company's Visiting
Nurse segment, "PC" refers to the Company's Personal Care segment and "ADC"
refers to the Company's Adult Day Care segment.
Results for the Quarter
AFAM's operating results for the quarter include the following highlights:
- Net Income from continuing operations for the quarter ended March 31,
2005 increased 25% to $420,664 from $337,704 in 2004. Diluted earnings
per share were $0.16 in 2005 compared to $0.13 in 2004
- Cash flow from operating activities improved 43% to $2.103 million in
2005 from $1.466 million in 2004
- Total debt was reduced by approximately $2 million or 52% since December
31, 2004 and by approximately $8 million over the last twelve months
- VN segment revenue grew about 16% as a result of internally-generated
admissions growth
Net income from continuing operations for the quarter ended March 31, 2005
also included operating losses from new VN agencies started late in 2004 and
first quarter 2005 of ($136,383) or ($0.05) per diluted share. Related revenues
were about $279,000.
Operating business units sold or closed are reclassified to discontinued
operations for all periods presented. Net income (loss) from discontinued
operations for the quarter ended March 31, 2005 was a loss of ($36,730) or
($0.01) per diluted share compared to a loss of ($36,341) or ($0.01) per diluted
share in 2004.
Including discontinued operations, consolidated net income increased 27% to
$383,934 or $0.15 per diluted share in 2005 from $301,363 or $0.12 per diluted
share in 2004.
Results of operations for the quarters ended March 31, 2005 and 2004 are set
forth in the tables below:
March March
2005 2004
Amount % Rev Amount
------------- -------- -------------
Net Revenues
Home Health Care
Visiting Nurse $ 9,655,519 41.1% $ 8,341,410
Personal Care 8,756,432 37.2% 8,101,892
18,411,951 78.3% 16,443,302
Adult Day Care 5,107,182 21.7% 5,025,114
$ 23,519,134 100.0% $ 21,468,416
Operating Income
Home Health Care
Visiting Nurse $ 1,617,748 16.8% $ 1,508,176
Personal Care 694,055 7.9% 706,670
2,311,803 12.6% 2,214,847
Adult Day Care 229,680 4.5% (141,448)
2,541,483 10.8% 2,073,399
Unallocated Corp Expenses 1,749,169 7.4% 1,372,136
EBIT 792,314 3.4% 701,262
Facility gains (losses) - 0.0% 6,420
Interest Expense 91,207 0.4% 144,843
Pre-tax Income 701,106 3.0% 562,840
Income Taxes 280,443 1.2% 225,136
Net Income
from continuing operations $ 420,664 1.8% $ 337,704
Income (loss) from discontinued
operations, net of tax $ (36,730) $ (36,341)
Net Income $ 383,934 $ 301,363
Diluted Earnings Per Share:
Diluted Shares Outstanding 2,592,541 2,556,781
Continuing Operations $ 0.16 $ 0.13
Discontinued Operations $ (0.01) $ (0.01)
$ 0.15 $ 0.12
Continuing Operations:
EBITDA $ 1,396,805 $ 1,311,836
Effective Tax Rate 40.0% 40.0%
Change
% Rev Amount %
-------- ------------- --------
Net Revenues
Home Health Care
Visiting Nurse 38.9% $ 1,314,109 15.8%
Personal Care 37.7% 654,540 8.1%
76.6% 1,968,649 12.0%
Adult Day Care 23.4% 82,069 1.6%
100.0% $ 2,050,718 9.6%
Operating Income
Home Health Care
Visiting Nurse 18.1% $ 109,572 7.3%
Personal Care 8.7% (12,616) -1.8%
13.5% 96,956 4.4%
Adult Day Care -2.8% 371,128 -262.4%
9.7% 468,084 22.6%
Unallocated Corp Expenses 6.4% 377,033 27.5%
EBIT 3.3% 91,051 13.0%
Facility gains (losses) 0.0% (6,420) -100.0%
Interest Expense 0.7% (53,635) -37.0%
Pre-tax Income 2.6% 138,266 24.6%
Income Taxes 1.0% 55,307 24.6%
Net Income
from continuing operations 1.6% $ 82,960 24.6%
Income (loss) from discontinued
operations, net of tax $ (389) NM
Net Income $ 82,571 NM
Diluted Earnings Per Share:
Diluted Shares Outstanding 35,760 1.4%
Continuing Operations $ 0.03 22.8%
Discontinued Operations $ 0.00 NM
$ 0.03 25.6%
Continuing Operations:
EBITDA 84,969 6.5%
Effective Tax Rate 0.0%
Continuing operations 2005 EBITDA included $229,302 of operating losses
related to VN operations started late in 2004 and first quarter 2005. ADC
Segment results improved as a result of reductions in operating costs.
In the context used in this press release, the Company defines
"internally-generated" revenue growth as revenue growth excluding that generated
in operations acquired in the most recent twelve months.
William B. Yarmuth, Chairman and CEO commented on the Company's operating
results: "We are extremely pleased to report a 25% increase in our net income
from continuing operations. Our free cash flow has continued to be strong,
enabling us to repay about $2 million or 52% of our outstanding debt just in
this quarter. We believe our operating momentum and our strong balance sheet
position will take us a long way towards our objectives." Yarmuth added: "In
addition to our strong earnings and cash flow performance, we have created 16%
VN revenue growth, all of it internally-generated, and on April 1, 2005
completed the acquisition of a $3.5 million revenue home health agency. These
results confirm that we are on the right track. Over the course of the next 2-3
years we will strive to continue our VN revenue growth and will seek additional
accretive acquisitions of home health providers."
Non-GAAP Financial Measures
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 March 31,
--------------------------
2005 2004
----------- -----------
Net Income from continuing
operations $ 420,664 $ 337,704
Add back:
Interest Expense 91,207 144,843
Income Taxes 280,443 225,136
Depreciation & Amortization 604,491 604,153
Earnings Before Interest, Income
Taxes,
Depreciation and Amortization
(EBITDA) from continuing operations $ 1,396,805 $ 1,311,836
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).
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 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 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: 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.
SOURCE Almost Family, Inc.
-0- 05/09/2005
/CONTACT: William Yarmuth or Steve Guenthner of Almost Family, Inc.,
+1-502-891-1000/
/Company News On-Call: http://www.prnewswire.com/comp/784275.html /
/Web site: http://www.almost-family.com /