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William B. Yarmuth, Chairman and CEO, commented, "We're pleased to onceagain report record operating results validating our strategy and businessplan. More than a double in VN segment revenue over the same quarter of lastyear and a 44% organic Medicare revenue growth rate provide strong evidencethat we are on the right track and positioned well for the future. Ourdisciplined operating model, our thoughtful and deliberate approach toacquisitions and our commitment to our Senior Advocacy mission are allcombining to generate an exceptional level of performance."
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Third Quarter Financial Results
Almost Family reported third quarter 2008 net service revenues of $58.7million, an 84% increase from $32 million in the third quarter of 2007.Operating income for the third quarter of 2008 increased to 13% of net servicerevenues versus 11% for the third quarter of 2007.
Net income for the third quarter of 2008 increased almost 150% to $4.7million, or $0.56 per diluted share, compared to $1.9 million, or $0.34 perdiluted share, in the third quarter of 2007. The weighted average sharesoutstanding for purposes of calculating diluted earnings per share increased49% between periods.
Third Quarter Segment Results
Net revenues in the Visiting Nurse segment for the third quarter of 2008were $48.6 million, a 113% increase from $22.9 million in the third quarter of2007. The total revenue growth of $25.7 million came from a 44% organicgrowth rate plus $15.7 million from acquired operations. The Patient Careacquisition completed on August 1st was in the quarter for 2 months andcontributed about $7.6 million in revenue. Operating income before corporateexpense in the VN segment for the third quarter 2008 was $10.0 million, a 130%increase from $4.3 million in the third quarter 2007.
Net revenues in the Personal Care (PC) segment for the third quarter of2008 were $10.1 million, an 11% increase from $9.1 million in the thirdquarter of 2007. Operating income before corporate expense in the PC segmentfor the third quarter of 2008 was $914,000.
Nine Month Period Ended September 30, 2008
Almost Family reported net service revenues for the nine month periodended September 30, 2008 of $146.4 million, a 52% increase from $96.3 millionin the same period last year. Operating income for the nine month periodincreased to 13% of net service revenues versus 11% for the prior year period.
Net income for the nine month period was $11.1 million, or $1.52 perdiluted share, compared to $5.5 million, or $0.99 per diluted share, in theprior year period. The weighted average shares outstanding for purposes ofcalculating diluted earnings per share increased 30% between periods.
Nine Month Period Segment Results
Net revenues in the Visiting Nurse (VN) segment for the nine month periodof 2008 were $117.3 million, a 69% increase from $69.4 million in the sameperiod last year. The total revenue growth of $47.9 million came from a 31%organic growth rate plus $26.3 million from acquired operations. The PatientCare acquisition contributed about $7.6 million in revenue. Operating incomebefore corporate expense in the VN segment for the nine month period was $24.0million, an 82% increase from $13.2 million in the same period last year.
Net revenues in the Personal Care (PC) segment for the nine month periodwere $29.1 million, an 8% increase from $26.9 million in the same period lastyear. Operating income before corporate expense in the PC segment for thenine month period was $2.5 million, a 6% decrease from $2.6 million in thesame period last year.
Recent Corporate Developments
On July 16, 2008, Almost Family established a new senior secured multi-bank credit facility that replaced its previous facility and provides for upto $75 million in borrowings with a maturity date of July 2011.
On August 1, 2008, Almost Family completed the acquisition of Patient Carefor $45.2 million, subject to a working capital adjustment. The acquisitionwas previously under a definitive agreement signed on June 18, 2008. Theacquisition added $47 million in annual revenues and eight locations in NewJersey, Connecticut, and Pennsylvania. Due to the transition, wind down costsand the timing of the close, the acquisition is not expected to contributesignificantly to earnings in 2008 but is expected to be accretive to EPS in2009.
On October 14, 2008, Almost Family announced that it had been ranked No.24 in Forbes' 2008 listing of the 200 Best Small Companies in America, risingfrom its No. 77 ranking in 2007.
Today, November 5, 2008 Almost Family expects to file with the Securitiesand Exchange Commission a shelf registration statement on Form S-3 which, whendeclared effective by the SEC, will increase the amount of capital it couldraise from approximately $30 million to $150 million to provide financingflexibility for development plans.
The registration statement on Form S-3 has not yet become effective.Securities may not be sold nor may offers to buy be accepted prior to the timethat the registration statement becomes effective. This news release does notconstitute an offer to sell, or the solicitation of an offer to buysecurities, nor shall there be any sale of securities in any state in whichsuch offer, solicitation or sale would be unlawful prior to registration orqualification of the securities under the securities laws of that state.
Conference Call
A conference call to review the results will begin today at 11:00 a.m. ETand will be hosted by William B. Yarmuth, President and Chief ExecutiveOfficer, and Steve Guenthner, Senior Vice President and Chief FinancialOfficer. 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 theconference call will be available beginning today at 12:00 p.m. ET and endingon November 17, 2008. The replay telephone number is 1-877-660-6853 (USA) or1-201-612-7415 (International) along with the account number 3055 andconference ID 300518.
Non-GAAP Financial Measure
The information provided in the tables in this release includes certainnon-GAAP financial measures as defined under Securities and ExchangeCommission (SEC) rules. In accordance with SEC rules, the Company hasprovided, in the supplemental information and the footnotes to the tables, areconciliation of those measures to the most directly comparable GAAPmeasures.
EBITDA:
EBITDA is defined as income before depreciation and amortization, netinterest expense and income taxes. EBITDA is not a measure of financialperformance under accounting principles generally accepted in the UnitedStates of America. It should not be considered in isolation or as a substitutefor net income, operating income, cash flows from operating, investing orfinancing activities, or any other measure calculated in accordance withgenerally accepted accounting principles. The items excluded from EBITDA aresignificant components in understanding and evaluating financial performanceand liquidity. Management routinely calculates and communicates EBITDA andbelieves that it is useful to investors because it is commonly used as ananalytical indicator within our industry to evaluate performance, measureleverage capacity and debt service ability, and to estimate current orprospective enterprise value. EBITDA is also used in certain covenantscontained in our credit agreement.
The following tables set forth a reconciliation of Continuing OperationsNet Income to EBITDA:
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider ofhome 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 personalcare segment. Altogether, Almost Family operates over 90 branch locations in11 U.S. states.
Forward Looking Statements
All statements, other than statements of historical facts, included inthis news release are forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995. Forward-looking statementsmay 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, theCompany's actual results could differ materially from any future results,performance or achievements expressed or implied by such forward-lookingstatements. The potential risks and uncertainties which could cause actualresults to differ materially include: regulatory approvals or third partyconsents may not be obtained, the impact of further changes in healthcarereimbursement systems, including the ultimate outcome of potential changes toMedicare reimbursement for home health services and to Medicaid reimbursementdue to state budget shortfalls; the ability of the Company to maintain itslevel of operating performance and achieve its cost control objectives;changes in our relationships with referral sources; the ability of the Companyto integrate acquired operations; 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 healthcareindustry; the Company's self-insurance risks, and significant deterioration ineconomic conditions and significant market volatility. For a more completediscussion regarding these and other factors which could affect the Company'sfinancial performance, refer to the Company's various filings with theSecurities and Exchange Commission, including its filing on Form 10-K for theyear ended December 31, 2007, in particular information under the headings"Special Caution Regarding Forward-Looking Statements" and "Risk Factors." TheCompany undertakes no obligation to update or revise its forward-lookingstatements.LOUISVILLE, Ky., Nov. 5 /PRNewswire-FirstCall/ -- Recent Corporate Highlights: -- Net service revenues increased 84% to $58.7 million -- Visiting Nurse (VN) segment net revenues rose 113% to $48.6 million -- Net income increased 149% to $4.7 million -- Diluted EPS increased 65% to $0.56 per diluted share on 49% more shares -- Completed acquisition of Patient Care for $45.2 million -- Achieved top-25 ranking on Forbes' 200 Best Small Companies List
SOURCE Almost Family, Inc.
