Almost Family Reports Fourth Quarter and Full Year 2009 Results
LOUISVILLE, Ky., Feb. 24 /PRNewswire-FirstCall/ --
Fourth Quarter Highlights:
- Net service revenues increased 18% to $78.0 million
- Visiting Nurse (VN) segment net revenues rose 22% to $67.6 million
- Net income increased 31% to $6.8 million
- Diluted EPS increased 18% to $0.73 per share on 11% more shares outstanding
- One-time acquisition transaction costs lowered diluted EPS by $0.03
- Quarterly operating cash flow of $10.5 million – strongest in the Company's history
- Approximately $90 million in cash plus credit facility available to fund acquisitions
Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing services, announced today its financial results for the three months and full year ended December 31, 2009.
William Yarmuth, Chief Executive Officer, commented, "Our fourth quarter results serve to top off another milestone year in the development of our Company. During 2009, we, along with other home health industry leaders, devoted substantial time and attention to national health care reform activities. We feel we made great strides in improving the perception of home health care in the minds of legislators and other policy makers. Against this backdrop, our management team and over 6,000 caregivers continued their uncompromising focus on providing high quality home care for our patients and quality returns for our shareholders. Our fourth quarter and full year results demonstrate our continued ability to generate organic revenue and earnings growth. With our strong balance sheet and our position as one of the nation's larger providers we believe we are well positioned for continued growth both organically and as a consolidator in our industry."
Fourth Quarter Financial Results
Almost Family reported fourth quarter 2009 net service revenues of $78.0 million, an 18.4% increase from $65.9 million in the fourth quarter of 2008.
Net income for the fourth quarter of 2009 was $6.8 million, or $0.73 per diluted share, compared to $5.2 million, or $0.62 per diluted share, in the fourth quarter of 2008. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 11% between periods. Results for the quarter included costs of $238,000 or $0.03 per diluted share related to a terminated acquisition.
Fourth Quarter Segment Results
Net revenues in the Visiting Nurse segment for the fourth quarter of 2009 were $67.6 million, a 22% increase from $55.7 million in the fourth quarter of 2008. The total revenue growth of $12.0 million came from a 19% organic growth rate plus $1.3 million from acquired operations. Organic Medicare admissions growth was 13% and organic Medicare Episodic growth was 18%. Operating income before corporate expense in the VN segment for the fourth quarter of 2009 was $14.9 million, an 18% increase from $12.6 million in the fourth quarter of 2008.
Net revenues in the Personal Care (PC) segment for the fourth quarter of 2009 were $10.4 million, a 2% increase from $10.2 million in the fourth quarter of 2008. Operating income before unallocated corporate expense in the PC segment for the fourth quarter of 2009 was $1.5 million, a 14% increase from $1.3 million in the fourth quarter of 2008.
Full Year Financial Results
Almost Family reported net service revenues for the twelve month period ended December 31, 2009 of $297.8 million, a 41% increase from $211.5 million in the same period of 2008.
Net income for the twelve month period of 2009 was $24.6 million, or $2.86 per diluted share, compared to $16.3 million, or $2.16 per diluted share, in the twelve month period of 2008. Results for the twelve month period of 2009 included acquisition transactions costs of $463,000 or $0.06 per diluted share.
Full Year Segment Results
Net revenues in the Visiting Nurse segment for the twelve month period of 2009 were $256.1 million, a 48% increase from $173.0 million in the twelve month period of 2008. The total revenue growth of $83.1 million came from a 29% organic growth rate plus $43.8 million from acquired operations. Operating income before corporate expense in the VN segment for the twelve month period of 2009 was $53.8 million, a 47% increase from $36.6 million in the same period of 2008.
Net revenues in the Personal Care (PC) segment for the twelve month period of 2009 were $41.8 million, an 8% increase from $38.5 million in the twelve month period of 2008. Operating income before unallocated corporate expense in the PC segment for the twelve month period of 2009 was $5.2 million, a 37% increase from $3.8 million in the twelve month period of 2008.
Conference Call
A conference call to review the results will begin at 11:00 a.m. ET on February 24, 2010, and will be hosted by William Yarmuth, Chief Executive Officer, and Steve Guenthner, Chief Financial Officer. 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 the conference call will be available beginning February 24, 2010 at 2:00 p.m. ET and ending on March 10, 2010. The replay telephone number is 1-877-660-6853 (USA) or 1-201-612-7415 (International). Account Number: 3055 and Passcode: 344574.
A live Web cast of the call will also be available from the Investor Relations section of the corporate Web site at http://www.almostfamily.com. A Web cast replay can be accessed on the corporate Web site beginning February 24, 2010 at approximately 2:00 p.m. ET and will remain available until March 24, 2010.
Almost Family, Inc. |
|
Steve Guenthner |
|
(502) 891-1000 |
|
The Ruth Group |
|
Investor Relations |
|
Nick Laudico/Zack Kubow |
|
(646) 536-7030/7020 |
|
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
Three months ended December 31,
------------------------------
2009 2008
---- ----
Net service revenues $78,020 $65,895
Cost of service revenues 36,072 30,251
------ ------
Gross margin 41,948 35,644
------ ------
General and administrative expenses:
Salaries and benefits 21,118 18,190
Other 8,778 8,200
----- -----
Total general and administrative expenses 29,896 26,390
------ ------
Operating income 12,052 9,254
Interest expense, net (129) (414)
---- ----
Income from continuing operations
before income taxes 11,923 8,840
Income tax expense (5,070) (3,658)
------ ------
Net income from continuing operations 6,853 5,182
Discontinued operations, net of tax
benefits of $29 and $6 (45) 15
--- --
Net income $6,808 $5,197
====== ======
Per share amounts-basic:
Average shares outstanding 9,058 8,137
Income from continued operations $0.76 $0.64
Loss from discontinued operations (0.01) 0.00
----- ----
Net income $0.75 $0.64
===== =====
Per share amounts-diluted:
Average shares outstanding 9,308 8,368
Income from continued operations $0.74 $0.62
Loss from discontinued operations (0.01) 0.00
----- ----
Net income $0.73 $0.62
===== =====
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
Year Ended December 31,
-----------------------
2009 2008
---- ----
Net service revenues $297,849 $211,517
Cost of service revenues 138,565 98,246
------- ------
Gross margin 159,284 113,271
------- -------
General and administrative expenses:
Salaries and benefits 81,589 57,996
Other 35,620 27,076
------ ------
Total general and administrative expenses 117,209 85,072
------- ------
Operating income 42,075 28,199
Interest expense, net (803) (1,147)
---- ------
Income from continuing operations before income
taxes 41,272 27,052
Income tax expense (16,583) (10,655)
------- -------
Net income from continuing operations 24,689 16,397
Discontinued operations, net of tax benefits of
$81 and $70 (125) (104)
---- ----
Net income $24,564 $16,293
======= =======
Per share amounts-basic:
Average shares outstanding 8,372 7,369
Income from continued operations $2.95 $2.23
Loss from discontinued operations (0.02) (0.02)
----- -----
Net income $2.93 $2.21
===== =====
Per share amounts-diluted:
Average shares outstanding 8,589 7,572
Income from continued operations $2.87 $2.17
Loss from discontinued operations (0.01) (0.01)
----- -----
Net income $2.86 $2.16
===== =====
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)
As of December 31,
ASSETS 2009 2008
---- ----
CURRENT ASSETS:
Cash and cash equivalents $19,389 $1,182
Accounts receivable - net 35,121 34,760
Prepaid expenses and other current assets 2,544 3,114
Deferred tax assets 7,786 4,438
----- -----
TOTAL CURRENT ASSETS 64,840 43,494
PROPERTY AND EQUIPMENT - NET 4,291 4,199
GOODWILL 99,133 92,170
OTHER INTANGIBLE ASSETS 14,538 16,715
OTHER ASSETS 587 519
--- ---
$183,389 $157,097
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,360 $5,321
Accrued other liabilities 20,076 22,317
Current portion - capital leases and notes
payable 1,836 4,774
----- -----
TOTAL CURRENT LIABILITIES 25,272 32,412
------ ------
LONG-TERM LIABILITIES:
Revolving credit facility - 23,998
Capital lease obligations 40 111
Notes payable 2,800 3,100
Deferred tax liabilities 5,258 1,216
Other liabilities 1,042 1,477
----- -----
TOTAL LONG-TERM LIABILITIES 9,140 29,902
----- ------
TOTAL LIABILITIES 34,412 62,314
------ ------
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.05; authorized
2,000 shares; none issued or outstanding - -
Common stock, par value $0.10; authorized
25,000; 9,151 and 8,137
issued and outstanding 915 814
Additional paid-in capital 94,465 64,936
Retained earnings 53,597 29,033
------ ------
TOTAL STOCKHOLDERS' EQUITY 148,977 94,783
------- ------
$183,389 $157,097
======== ========
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands) Year Ended December 31,
-----------------------
2009 2008
---- ----
Cash flows from operating activities:
Net income $24,564 $16,293
Loss from discontinued
operations (125) (104)
---- ----
Income from continuing operations 24,689 16,397
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 2,385 1,330
Provision for uncollectible accounts 3,762 2,963
Stock-based compensation 1,371 688
Deferred income taxes 695 1,364
--- -----
32,902 22,742
Change in certain net assets
and liabilities, net of the
effects of acquisitions:
(Increase) decrease in:
Accounts receivable (3,958) (14,282)
Prepaid expenses
and other current assets 570 (993)
Other assets (69) (34)
Increase (decrease) in:
Accounts payable and accrued
expenses (2,221) 2,026
------ -----
Net cash provided by operating activities 27,224 9,459
------ -----
Cash flows from investing activities:
Capital expenditures (2,134) (1,476)
Acquisitions, net of cash acquired (6,510) (59,797)
------ -------
Net cash used in investing activities (8,644) (61,273)
------ -------
Cash flows from financing activities:
Net revolving credit facility
(repayments) borrowings (23,998) 11,611
Proceeds from stock option
exercises 100 53
Purchase of common stock
in connection with stock
options - -
Tax benefit from non-qualified
stock option exercises 203 86
Proceeds from stock offering, net 27,957 41,821
Principal payments on capital
leases and notes payable (4,510) (944)
------ ----
Net cash (used in) provided by financing
activities (248) 52,627
---- ------
Cash flows from discontinued operations:
Operating activities (125) (104)
Investing activities - -
Financing activities - -
- -
Net cash used in discontinued operations (125) (104)
---- ----
Net increase in cash and cash
equivalents 18,207 709
Cash and cash equivalents at
beginning of period 1,182 473
----- ---
Cash and cash equivalents at end
of period $19,389 $1,182
======= ======
Summary of non-cash investing and financing
activities:
Capital expenditures financed under
capital leases $- $967
Acquisitions funded by notes payable $1,200 $3,100
Acquisitions funded by stock $- $1,000
Value of stock withheld in lieu
of payroll taxes on option exercises $14 $7
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
Three months ended December 31,
---------------------------------
2009 2008 Change
----------------- ----------------- --------------
Amount % Rev Amount % Rev Amount %
----------------- ----------------- --------------
Net service revenues:
Visiting Nurse $67,616 86.7% $55,660 84.5% $11,956 21.5%
Personal Care 10,404 13.3% 10,235 15.5% 169 1.7%
------ ------ ---
78,020 100.0% 65,895 100.0% 12,125 18.4%
------ ------ ------
Operating income:
Visiting Nurse 14,886 22.0% 12,608 22.7% 2,278 18.1%
Personal Care 1,536 14.8% 1,344 13.1% 192 14.3%
----- ----- ---
16,422 21.0% 13,952 21.2% 2,470 17.7%
Corporate expenses 4,370 5.6% 4,698 7.1% (328) -7.0%
----- ----- ----
Operating income 12,052 15.4% 9,254 14.0% 2,798 30.2%
Interest expense, net (129) 0.2% (414) 0.6% 285 -68.8%
Income tax expense (5,070) 6.5% (3,658) 5.6% (1,412) 38.6%
------ ------ ------
Net income
from continuing
operations $6,853 8.8% $5,182 7.9% $1,671 32.2%
====== ====== ======
EBITDA from
continuing
operations $12,836 16.5% $9,593 14.6% $3,243 33.8%
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
Year ended December 31,
-------------------------
2009 2008 Change
----------------- ----------------- --------------
Amount % Rev Amount % Rev Amount %
----------------- ----------------- --------------
Net service revenues:
Visiting Nurse $256,060 86.0% $172,977 81.8% $83,083 48.0%
Personal Care 41,789 14.0% 38,540 18.2% 3,249 8.4%
------ ------ -----
297,849 100.0% 211,517 100.0% 86,332 40.8%
------- ------- ------
Operating income:
Visiting Nurse 53,755 21.0% 36,645 21.2% 17,110 46.7%
Personal Care 5,166 12.4% 3,770 9.8% 1,396 37.0%
----- ----- -----
Operating income
before unallocated
corporate expenses 58,921 19.8% 40,415 19.1% 18,506 45.8%
Corporate expenses 16,846 5.7% 12,216 5.8% 4,630 37.9%
------ ------ -----
Operating income 42,075 14.1% 28,199 13.3% 13,876 49.2%
Interest expense, net (803) 0.3% (1,147) 0.5% 344 -30.0%
Income taxes (16,583) 5.6% (10,655) 5.0% (5,928) 55.6%
------- ------- ------
Net income from
continuing
operations $24,689 8.3% $16,397 7.8% $8,292 50.6%
======= ======= ======
EBITDA from
continuing
operations $45,831 15.4% $30,217 14.3% $15,614 51.7%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Three months ended December 31,
-------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- ----------------
Average number of locations 85 74 11 14.9%
All payors:
Admissions 13,497 11,542 1,955 16.9%
Billable visits 449,979 351,021 98,958 28.2%
Medicare statistics:
Revenue (in thousands) $61,284 $49,120 $12,164 24.8%
Percentage of total
revenues 90.6% 88.2%
Billable visits 369,791 297,649 72,142 24.2%
Admissions 12,142 10,498 1,644 15.7%
Episodes started 19,733 16,291 3,442 21.1%
Revenue per completed
episode $3,077 $2,985 $92 3.1%
Visits per episode 18.3 17.7 0.6 3.4%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Three months ended December 31,
-------------------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- ----------------
Average number of locations 23 22 1 4.5%
Admissions 754 840 (86) -10.2%
Patient days of care 155,385 145,835 9,550 6.5%
Billable hours 568,368 549,742 18,626 3.4%
Revenue per billable hours $18.31 $18.62 $(0.31) -1.7%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Year ended December 31,
-----------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- ---------------
Average number of locations 78 62 16 25.8%
All payors:
Admissions 52,029 39,691 12,338 31.1%
Billable visits 1,712,480 1,088,339 624,141 57.3%
Medicare statistics:
Revenue (in thousands) $230,383 $156,892 $73,491 46.8%
Percentage of total
revenues 90.0% 90.7%
Billable visits 1,395,001 952,191 442,810 46.5%
Admissions 47,110 36,200 10,910 30.1%
Episodes started 76,436 53,692 22,744 42.4%
Revenue per completed
episode $2,974 $2,855 $119 4.2%
Visits per episode 17.7 17.3 0.4 2.3%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Year ended December 31,
-----------------------
2009 2008 Change
Amount Amount Amount %
-------- -------- ---------------
Average number of locations 22 22 - 0.0%
Admissions 3,219 3,457 (238) -6.9%
Patient days of care 607,760 550,208 57,552 10.5%
Billable hours 2,282,560 2,074,229 208,331 10.0%
Revenue per billable hours $18.31 $18.58 $(0.27) -1.5%
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 certain covenants contained in our credit agreement.
The following tables set forth a reconciliation of Continuing Operations Net Income to EBITDA:
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
(In thousands)
Three months ended December 31,
-------------------------------
2009 2008
---- ----
Net income from continuing
operations $6,853 $5,182
Add back:
Interest expense 129 414
Income tax expense 5,070 3,658
Depreciation and amortization 632 179
Amortization of stock-based
compensation 152 160
--- ---
Earnings before interest, income
taxes, depreciation and
amortization (EBITDA) from
continuing operations $12,836 $9,593
======= ======
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
(In thousands)
Year Ended December 31,
-----------------------
2009 2008
---- ----
Net income from continuing operations $24,689 $16,397
Add back:
Interest expense 803 1,147
Income tax expense 16,583 10,655
Depreciation and amortization 2,385 1,330
Amortization of stock-based
compensation 1,371 688
----- ---
Earnings before interest, income
taxes, depreciation and
amortization (EBITDA) from
continuing operations $45,831 30,217
======= =======
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider of home 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 personal care segment. Altogether, Almost Family operates over 100 branch locations in 11 U.S. states.
Forward Looking Statements
All statements, other than statements of historical facts, included in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may 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, the Company's actual results could differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties which could cause actual results to differ materially 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 Medicare reimbursement for home health services and 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; changes in our relationships with referral sources; the ability of the Company to 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 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 various filings with the Securities and Exchange Commission, including its filing on Form 10-K for the year ended December 31, 2008, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and "Risk Factors." The Company undertakes no obligation to update or revise its forward-looking statements.
SOURCE Almost Family, Inc.
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