LOUISVILLE, Ky., July 30, 2015 (GLOBE NEWSWIRE) -- Almost Family, Inc. (Nasdaq:AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the period from April 4, 2015 to July 3, 2015.
Second Quarter Highlights:
- Net service revenues of approximately $127 million
- Net income attributable to Almost Family, Inc. of $5.0 million, $0.52 per diluted share versus $0.42 in the second quarter of 2014
- Adjusted earnings from home health operations (1) of $5.3 million, $0.55 per diluted share versus $0.52 in the second quarter of 2014
- Adjusted EBITDA from home health operations (1) of $10.6 million
- Free cash flow reduced debt, net of cash by $8.2 million
- WillCare acquisition expected to close in third quarter of 2015
(1) See Non-GAAP Financial Measures starting on page 11
Management Comments
William Yarmuth, Chairman and Chief Executive Officer, commented: "We are pleased with our overall results and look forward to further progress as we move through the balance of the year and into 2016. We are excited about the work in our Healthcare Innovations segment with the addition of Ingenios and its management team as well as the upcoming addition of WillCare to our family of providers.
Steve Guenthner, President, added: "We're pleased that our efforts enabled us to generate nice earnings, make some progress reducing our AR DSO and use our operating cash flows for the quarter to pay down debt by over $8 million. With regard to the proposed Medicare rule for 2016, we find the Value Based Purchasing concept intriguing and will be developing comments and action plans as we learn more."
Yarmuth concluded: "I want to thank all of our over 11,000 Almost Family team members for their commitment to our Senior Advocacy approach to making our patients lives better by helping them to remain living in their homes."
Second Quarter Financial Results
VN segment net revenues increased to $97.7 million from $96.8 million in the prior year and were the second highest quarterly VN net revenues in Company history. Total Medicare admissions grew by 2.2% to 22,367 from 21,876. VN segment contribution of $12.4 million or 12.6% of revenue remained consistent with the same period of last year and the first quarter of 2015.
PC segment net revenues increased 4.7% to a record $29.5 million in 2015 from $28.2 million in 2014. PC segment contribution increased 6.4% to a record $3.7 million as compared to $3.5 million in the same period of last year.
Net cash from operating activities of $8.8 million was generated in the three months ended July 3, 2015. The Company noted that it has reduced days sales outstanding in accounts receivable and expects to continue to make progress in this area over the next two quarters.
The effective tax rate for the second quarter of 2015 was 40.3% compared to 39.2% for the second quarter of 2014. The higher income tax rate in 2015 occurred primarily due to the expiration of the Work Opportunity Tax Credit in 2015.
Year to Date Financial Results
VN segment net revenues increased by $7.3 million to $197.3 million from $189.9 million in the prior year. VN segment net revenues were a record high for the six-month period. Medicare admissions grew by 4.0% to 46,089 from 44,337. VN segment contribution of $24.8 million or 12.6% of revenue increased 17% over $21.2 million in the same period of last year.
PC segment net revenues increased $3.2 million or 5.9% to a record $58.2 million in 2015 from $55.0 million in 2014. PC segment contribution increased 7.5% to a record $6.6 million as compared to $6.1 million in the same period of last year.
Net cash from operating activities of $5.0 million was generated in the six months ended July 3, 2015. Investing activities used $5.1 million of cash in acquisitions, investments and capital expenditures.
The effective tax rate for the first half of 2015 was 40.4% compared to 39.7% for the first half of 2014. The higher income tax rate in 2015 occurred primarily due to the expiration of the Work Opportunity Tax Credit in 2015.
Recent Corporate Developments
- On July 23, 2015, the Company acquired 100% of the equity of Ingenios Health Co. for approximately 260,000 shares of the Company's common stock plus $2 million in cash. Ingenios is a leading provider of technology enabled in-home clinical assessments for Medicare Advantage, Managed Medicaid and Commercial Exchange lives in 7 states and Washington, D.C. The operating results of Ingenios will be reported in the Company's Healthcare Innovations business segment.
- On February 24, 2015 the Company signed a definitive agreement to acquire the stock of WillCare. WillCare, based in Buffalo NY, reported $72 million in revenue in 2014 with VN and PC branch locations in New York, Connecticut and Ohio. The purchase price is expected to total between $46 million and $53 million based on changes in earnings and working capital between execution of the definitive agreement and the current expected close in the third quarter of 2015 pending final New York regulatory approval, which is to be heard on August 6, 2015. The transaction will be funded by borrowings under the Company's bank credit facility. On March 1, 2015, the Company acquired the stock of WillCare's Ohio operations for $3 million.
- Effective with the first quarter of 2015 the Company adopted a 52-53 fiscal reporting calendar under which it will report its annual results going forward in four equal 13-week quarters. Every fifth year, one quarter will include 14 weeks and that year will include 53 weeks of operating results. Once fully adopted, this approach will help minimize the impact of calendar differences when comparing different historical periods.
- As a result of the change in the fiscal reporting calendar, the quarter ended April 3, 2015 and the year to date period January 1, 2015 through July 3, 2015 included 3 more days of results than they would have had if the change not been made. The three month period for the second quarter of 2015, which includes operating results from April 4, 2015 through July 3, 2015 had the same number of days it would have had if the reporting calendar change had not been made. However the Independence Day holiday observed on July 3, 2015 would have otherwise been reported in the next period. Including the Independence Day holiday reduced diluted EPS by $0.03 in the current period.
Medicare Proposed Rule for 2016
On July 10, 2015, the Centers for Medicare and Medicaid Services (CMS) issued its proposed rule for 2016. CMS is proposing a 1.8% rate cut consisting of a 2.9% market basket update minus a 0.6% productivity adjustment, a 2.5% rebasing cut and a 1.72% case mix adjustment. CMS is proposing to implement a "Value Based Purchasing" (VBP) demonstration in 9 states under which certain 2016 agency specific performance measures would be used to establish individual agency reimbursement rates for 2018. The proposed rule is currently open for comment. The final rule is expected to be released in late October 2015.
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| (In thousands, except per share data) | ||||
| (UNAUDITED) | ||||
| Three month period ended | Six month period ended | |||
| July 3, 2015 | June 30, 2014 | July 3, 2015 | June 30, 2014 | |
| Net revenues | $ 127,366 | $ 125,192 | $ 255,765 | $ 245,532 |
| Cost of service revenues (excluding depreciation & amortization) | 66,343 | 65,556 | 134,670 | 131,083 |
| Gross margin | 61,023 | 59,636 | 121,095 | 114,449 |
| General and administrative expenses: | ||||
| Salaries and benefits | 35,832 | 35,875 | 72,225 | 69,541 |
| Other | 16,405 | 15,510 | 32,304 | 31,224 |
| Deal, transition and other | 206 | 1,243 | 614 | 4,357 |
| Total general and administrative expenses | 52,443 | 52,628 | 105,143 | 105,122 |
| Operating income | 8,580 | 7,008 | 15,952 | 9,327 |
| Interest expense, net | (392) | (329) | (753) | (677) |
| Income before income taxes | 8,188 | 6,679 | 15,199 | 8,650 |
| Income tax expense | (3,393) | (2,618) | (6,380) | (3,435) |
| Net income from continuing operations | 4,795 | 4,061 | 8,819 | 5,215 |
| Discontinued operations: | ||||
| Loss from operations, net of tax of ($9), ($41), ($5) and ($90) | (13) | (64) | (8) | (134) |
| Net income | 4,782 | 3,997 | 8,811 | 5,081 |
| Net income - noncontrolling interests | 228 | (36) | 592 | 153 |
| Net income attributable to Almost Family, Inc. | $ 5,010 | $ 3,961 | $ 9,403 | $ 5,234 |
| Per share amounts-basic: | ||||
| Average shares outstanding | 9,393 | 9,338 | 9,377 | 9,316 |
| Income from continuing operations attributable to Almost Family, Inc. | $ 0.53 | $ 0.43 | $ 1.00 | $ 0.58 |
| Discontinued operations | -- | (0.01) | -- | (0.01) |
| Net income attributable to Almost Family, Inc. | $ 0.53 | $ 0.42 | $ 1.00 | $ 0.57 |
| Per share amounts-diluted: | ||||
| Average shares outstanding | 9,569 | 9,431 | 9,554 | 9,423 |
| Income from continuing operations attributable to Almost Family, Inc. | $ 0.52 | $ 0.43 | $ 0.99 | $ 0.57 |
| Discontinued operations | -- | (0.01) | -- | (0.01) |
| Net income attributable to Almost Family, Inc. | $ 0.52 | $ 0.42 | $ 0.99 | $ 0.56 |
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
| July 3, 2015 | ||
| ASSETS | (UNAUDITED) | December 31, 2014 |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 6,498 | $ 6,886 |
| Accounts receivable - net | 83,060 | 74,894 |
| Prepaid expenses and other current assets | 6,986 | 10,420 |
| Deferred tax assets | 13,242 | 12,230 |
| TOTAL CURRENT ASSETS | 109,786 | 104,430 |
| PROPERTY AND EQUIPMENT - NET | 5,120 | 5,575 |
| GOODWILL | 195,067 | 192,523 |
| OTHER INTANGIBLE ASSETS | 54,639 | 54,402 |
| OTHER ASSETS | 2,457 | 558 |
| TOTAL ASSETS | $ 367,069 | $ 357,488 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 10,101 | $ 9,257 |
| Accrued other liabilities | 37,019 | 42,326 |
| Current portion - notes payable and capital leases | 34 | 51 |
| TOTAL CURRENT LIABILITIES | 47,154 | 51,634 |
| LONG-TERM LIABILITIES: | ||
| Revolving credit facility | 47,451 | 46,447 |
| Deferred tax liabilities | 26,257 | 23,510 |
| Other | 3,259 | 2,705 |
| TOTAL LONG-TERM LIABILITIES | 76,967 | 72,662 |
| TOTAL LIABILITIES | 124,121 | 124,296 |
| NONCONTROLLING INTEREST - REDEEMABLE -- HEALTHCARE INNOVATIONS | 3,639 | 3,639 |
| 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; 9,633 and 9,574 issued and outstanding | 963 | 957 |
| Treasury stock, at cost, 103 and 94 shares of common stock | (2,731) | (2,392) |
| Additional paid-in capital | 107,140 | 105,862 |
| Noncontrolling interest - nonredeemable | (659) | (420) |
| Retained earnings | 134,596 | 125,546 |
| TOTAL STOCKHOLDERS' EQUITY | 239,309 | 229,553 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 367,069 | $ 357,488 |
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| (In thousands) | ||
| Six month period ended | ||
| July 3, 2015 | June 30, 2014 | |
| Cash flows of operating activities: | ||
| Net income | $ 8,811 | $ 5,081 |
| Loss on discontinued operations, net of tax | (8) | (134) |
| Net income from continuing operations | 8,819 | 5,215 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 1,780 | 2,152 |
| Provision for uncollectible accounts | 4,803 | 4,308 |
| Stock-based compensation | 1,005 | 872 |
| Deferred income taxes | 1,639 | 2,402 |
| 18,046 | 14,949 | |
| Change in certain net assets and liabilities, net of the effects of acquisitions: | ||
| Accounts receivable | (12,485) | (11,863) |
| Prepaid expenses and other current assets | 3,536 | (728) |
| Other assets | 26 | 1 |
| Accounts payable and accrued expenses | (4,097) | (4,457) |
| Net cash provided by (used in) operating activities | 5,026 | (2,098) |
| Cash flows of investing activities: | ||
| Capital expenditures | (1,147) | (735) |
| Cost basis investment | (1,000) | -- |
| Acquisitions, net of cash acquired | (3,000) | (969) |
| Net cash used in investing activities | (5,147) | (1,704) |
| Cash flows of financing activities: | ||
| Credit facility borrowings | 87,747 | 655 |
| Credit facility repayments | (86,743) | (6,000) |
| Debt issuance fees | (1,161) | -- |
| Proceeds from stock option exercises | 68 | 39 |
| Purchase of common stock in connection with share awards | (338) | (52) |
| Tax impact of share awards | 210 | (38) |
| Payment of special dividend in connection with share awards | (50) | (35) |
| Principal payments on notes payable and capital leases | (30) | (606) |
| Net cash used in financing activities | (297) | (6,037) |
| Cash flows from discontinued operations | ||
| Operating activities | 30 | 358 |
| Investing activities | -- | -- |
| Net cash provided by discontinued operations | 30 | 358 |
| Net change in cash and cash equivalents | (388) | (9,481) |
| Cash and cash equivalents at beginning of period | 6,886 | 12,246 |
| Cash and cash equivalents at end of period | $ 6,498 | $ 2,765 |
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||||||
| RESULTS OF OPERATIONS | ||||||
| (UNAUDITED) | ||||||
| (In thousands) | ||||||
| Three months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % Rev | Amount | % Rev | Amount | % | |
| Home Health Operations | ||||||
| Net service revenues: | ||||||
| Visiting Nurse | $ 97,748 | 76.8% | $ 96,776 | 77.5% | $ 972 | 1.0% |
| Personal Care | 29,488 | 23.2% | 28,160 | 22.5% | 1,328 | 4.7% |
| 127,236 | 100.0% | 124,936 | 100.0% | 2,300 | 1.8% | |
| Operating income before corporate expenses: | ||||||
| Visiting Nurse | 12,362 | 12.6% | 12,445 | 12.9% | (83) | -0.7% |
| Personal Care | 3,724 | 12.6% | 3,501 | 12.4% | 223 | 6.4% |
| 16,086 | 12.6% | 15,946 | 12.8% | 140 | 0.9% | |
| Healthcare Innovations | ||||||
| Revenue | 130 | 256 | (126) | -49.2% | ||
| Operating loss before noncontrolling interest | (402) | NM | (427) | NM | 25 | -5.9% |
| Corporate expenses | 6,898 | 5.4% | 7,268 | 5.8% | (370) | -5.1% |
| Deal and transition costs | 206 | 0.2% | 1,243 | 1.0% | (1,037) | -83.4% |
| Operating income | 8,580 | 6.7% | 7,008 | 5.6% | 1,572 | 22.4% |
| Interest expense, net | (392) | -0.3% | (329) | -0.3% | (63) | 19.1% |
| Income tax expense | (3,393) | -2.7% | (2,618) | -2.1% | (775) | 29.6% |
| Net income from continuing operations | $ 4,795 | 3.8% | $ 4,061 | 3.2% | $ 734 | 18.1% |
| Adjusted EBITDA from home health operations (1) | $ 10,606 | 8.3% | $ 10,264 | 8.2% | $ 342 | 3.3% |
| Adjusted earnings from home health operations (1) | $ 5,293 | 4.2% | $ 4,921 | 3.9% | $ 372 | 7.6% |
| (1) See Non-GAAP Financial Measures starting on page 11 | ||||||
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||||||
| RESULTS OF OPERATIONS | ||||||
| (UNAUDITED) | ||||||
| (In thousands) | ||||||
| Six months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % Rev | Amount | % Rev | Amount | % | |
| Home Health Operations | ||||||
| Net service revenues: | ||||||
| Visiting Nurse | $ 197,283 | 77.2% | $ 189,949 | 77.5% | $ 7,334 | 3.9% |
| Personal Care | 58,249 | 22.8% | 55,020 | 22.5% | 3,229 | 5.9% |
| 255,532 | 100.0% | 244,969 | 100.0% | 10,563 | 4.3% | |
| Operating income before corporate expenses: | ||||||
| Visiting Nurse | 24,786 | 12.6% | 21,193 | 11.2% | 3,593 | 17.0% |
| Personal Care | 6,599 | 11.3% | 6,140 | 11.2% | 459 | 7.5% |
| 31,385 | 12.3% | 27,333 | 11.2% | 4,052 | 14.8% | |
| Healthcare Innovations | ||||||
| Revenue | 233 | 563 | (330) | -58.6% | ||
| Operating loss before noncontrolling interest | (919) | NM | (683) | NM | (236) | 34.6% |
| Corporate expenses | 13,900 | 5.4% | 12,966 | 5.3% | 934 | 7.2% |
| Deal and transition costs | 614 | 0.2% | 4,357 | 1.8% | (3,743) | -85.9% |
| Operating income | 15,952 | 6.2% | 9,327 | 3.8% | 6,625 | 71.0% |
| Interest expense, net | (753) | -0.3% | (677) | -0.3% | (76) | 11.2% |
| Income tax expense | (6,380) | -2.5% | (3,435) | -1.4% | (2,945) | 85.7% |
| Net income from continuing operations | $ 8,819 | 3.4% | $ 5,215 | 2.1% | $ 3,604 | 69.1% |
| Adjusted EBITDA from home health operations (1) | $ 20,442 | 8.0% | $ 17,505 | 7.1% | $ 2,937 | 16.8% |
| Adjusted earnings from home health operations (1) | $ 10,112 | 4.0% | $ 8,210 | 3.3% | $ 1,902 | 23.2% |
| (1) See Non-GAAP Financial Measures starting on page 11 | ||||||
| VISITING NURSE SEGMENT OPERATING METRICS | ||||||
| Three months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % | Amount | % | Amount | % | |
| Average number of locations | 162 | 173 | (11) | -6.4% | ||
| All payors: | ||||||
| Patient months | 81,067 | 80,412 | 655 | 0.8% | ||
| Admissions | 24,920 | 24,545 | 375 | 1.5% | ||
| Billable visits | 638,479 | 637,361 | 1,118 | 0.2% | ||
| Medicare: | ||||||
| Admissions | 22,367 | 90% | 21,876 | 89% | 491 | 2.2% |
| Revenue (in thousands) | $ 93,673 | 96% | $ 92,412 | 95% | $ 1,261 | 1.4% |
| Revenue per admission | $ 4,188 | $ 4,224 | $ (36) | -0.9% | ||
| Billable visits | 577,358 | 90% | 576,001 | 90% | 1,357 | 0.2% |
| Recertifications | 11,384 | 12,140 | (756) | -6.2% | ||
| Payor mix % of Admissions | ||||||
| Traditional Medicare Episodic | 84.4% | 84.5% | -0.1% | |||
| Replacement Plans Paid Episodically | 4.0% | 3.2% | 0.8% | |||
| Replacement Plans Paid Per Visit | 11.6% | 12.3% | -0.7% | |||
| Non-Medicare: | ||||||
| Admissions | 2,553 | 10% | 2,669 | 11% | (116) | -4.3% |
| Revenue (in thousands) | $ 4,075 | 4% | $ 4,364 | 5% | $ (289) | -6.6% |
| Revenue per admission | $ 1,596 | $ 1,635 | $ (39) | -2.4% | ||
| Billable visits | 61,121 | 10% | 61,360 | 10% | (239) | -0.4% |
| Recertifications | 480 | 470 | 10 | 2.1% | ||
| Payor mix % of Admissions | ||||||
| Medicaid & other governmental | 30.8% | 22.0% | 8.8% | |||
| Private payors | 69.2% | 78.0% | -8.8% | |||
| PERSONAL CARE OPERATING METRICS | ||||||
| Three months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % | Amount | % | Amount | % | |
| Average number of locations | 62 | 61 | 1 | 1.6% | ||
| Admissions | 1,651 | 1,653 | (2) | -0.1% | ||
| Patient months of care | 23,722 | 22,502 | 1,220 | 5.4% | ||
| Billable hours | 1,317,978 | 1,348,504 | (30,526) | -2.3% | ||
| Revenue per billable hour | $ 22.37 | $ 20.88 | $ 1.49 | 7.1% | ||
| VISITING NURSE SEGMENT OPERATING METRICS | ||||||
| Six months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % | Amount | % | Amount | % | |
| Average number of locations | 162 | 174 | (12) | -6.9% | ||
| All payors: | ||||||
| Patient months | 162,049 | 159,600 | 2,449 | 1.5% | ||
| Admissions | 51,199 | 49,651 | 1,548 | 3.1% | ||
| Billable visits | 1,281,071 | 1,248,405 | 32,666 | 2.6% | ||
| Medicare: | ||||||
| Admissions | 46,089 | 90% | 44,337 | 89% | 1,752 | 4.0% |
| Revenue (in thousands) | $ 188,794 | 96% | $ 181,388 | 95% | $ 7,406 | 4.1% |
| Revenue per admission | $ 4,096 | $ 4,091 | $ 5 | 0.1% | ||
| Billable visits | 1,161,796 | 91% | 1,128,402 | 90% | 33,394 | 3.0% |
| Recertifications | 23,311 | 24,055 | (744) | -3.1% | ||
| Payor mix % of Admissions | ||||||
| Traditional Medicare Episodic | 84.3% | 83.9% | 0.4% | |||
| Replacement Plans Paid Episodically | 4.0% | 3.2% | 0.8% | |||
| Replacement Plans Paid Per Visit | 11.7% | 12.9% | -1.2% | |||
| Non-Medicare: | ||||||
| Admissions | 5,110 | 10% | 5,314 | 11% | (204) | -3.8% |
| Revenue (in thousands) | $ 8,489 | 4% | $ 8,561 | 5% | $ (72) | -0.8% |
| Revenue per admission | $ 1,661 | $ 1,611 | $ 50 | 3.1% | ||
| Billable visits | 119,275 | 9% | 120,003 | 10% | (728) | -0.6% |
| Recertifications | 907 | 934 | (27) | -2.9% | ||
| Payor mix % of Admissions | ||||||
| Medicaid & other governmental | 30.8% | 21.6% | 9.2% | |||
| Private payors | 69.2% | 78.4% | -9.2% | |||
| PERSONAL CARE OPERATING METRICS | ||||||
| Six months ended | ||||||
| July 3, 2015 | June 30, 2014 | Change | ||||
| Amount | % | Amount | % | Amount | % | |
| Average number of locations | 62 | 61 | 1 | 1.6% | ||
| Admissions | 3,078 | 3,172 | (94) | -3.0% | ||
| Patient months of care | 46,488 | 44,359 | 2,129 | 4.8% | ||
| Billable hours | 2,604,862 | 2,635,794 | (30,932) | -1.2% | ||
| Revenue per billable hour | $ 22.36 | $ 20.87 | $ 1.49 | 7.1% | ||
| HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA | ||||
| Three months ended | ||||
| July 3, 2015 | June 30, 2014 | Change | ||
| Amount | Amount | Amount | % | |
| Medicare enrollees under management | 83,133 | 43,972 | 39,161 | 89.1% |
| ACOs under contract | 11 | 7 | 4 | 57.1% |
| Net income - noncontrolling interest | $ (402) | $ (427) | 25 | -5.9% |
| Assets | 9,428 | 8,692 | 736 | 8.5% |
| Liabilities | 226 | 355 | (129) | -36.3% |
| Non-controlling interest - redeemable | 3,639 | 3,639 | -- | 0.0% |
| Non-controlling interest - nonredeemable | (155) | (169) | 14 | -8.3% |
| HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA | ||||
| Six months ended | ||||
| July 3, 2015 | June 30, 2014 | Change | ||
| Amount | Amount | Amount | % | |
| Medicare enrollees under management | 83,133 | 43,972 | 39,161 | 89.1% |
| ACOs under contract | 11 | 7 | 4 | 57.1% |
| Net income - noncontrolling interest | $ (919) | $ (683) | (236) | 34.6% |
| Assets | 9,428 | 8,692 | 736 | 8.5% |
| Liabilities | 226 | 355 | (129) | -36.3% |
| Non-controlling interest - redeemable | 3,639 | 3,639 | -- | 0.0% |
| Non-controlling interest - nonredeemable | (354) | (263) | (91) | 34.6% |
Non-GAAP Financial Measures
The information provided in some of the tables in this release includes certain non-GAAP financial measures as defined under SEC rules. In accordance with SEC rules, the Company has provided, in the supplemental information, a reconciliation of those measures to the most directly comparable GAAP measures.
Adjusted Earnings from Home Health Operations
Adjusted earnings from home health operations 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 presentation of adjusted earnings from home health operations provides investors with pertinent information to enable comparison of financial performance between periods by excluding certain items that the Company believes are not representative of its ongoing operations due to the nature of the items.
The following tables set forth a reconciliation of net income attributable to Almost Family, Inc. to adjusted earnings from home health operations:
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||||
| RECONCILIATION OF ADJUSTED EARNINGS | ||||
| FROM HOME HEALTH OPERATIONS | ||||
| (In thousands) | ||||
| Three month period ended | Six month period ended | |||
| (in thousands) | July 3, 2015 | June 30, 2014 | July 3, 2015 | June 30, 2014 |
| Net income attributable to Almost Family, Inc. | $ 5,010 | $ 3,961 | $ 9,403 | $ 5,234 |
| Addbacks: | ||||
| Deal, transition and other, net of tax | 123 | 740 | 365 | 2,592 |
| Loss on discontinued operations, net of tax | 13 | 64 | 8 | 134 |
| Adjusted earnings | 5,146 | 4,765 | 9,776 | 7,960 |
| Healthcare Innovations operating loss after NCI, net of tax | 147 | 156 | 336 | 250 |
| Adjusted earnings from home health operations | $ 5,293 | $ 4,921 | $ 10,112 | $ 8,210 |
| Per share amounts-diluted: | ||||
| Average shares outstanding | 9,569 | 9,431 | 9,554 | 9,423 |
| Net income attributable to Almost Family, Inc. | $ 0.52 | $ 0.42 | $ 0.99 | $ 0.56 |
| Addbacks: | ||||
| Deal, transition and other, net of tax | 0.02 | 0.07 | 0.03 | 0.27 |
| Loss on discontinued operations, net of tax | 0.00 | 0.01 | 0.00 | 0.01 |
| Adjusted earnings | 0.54 | 0.50 | 1.02 | 0.84 |
| Healthcare Innovations operating loss after NCI, net of tax | 0.01 | 0.02 | 0.04 | 0.02 |
| Adjusted earnings from home health operations | $ 0.55 | $ 0.52 | $ 1.06 | $ 0.86 |
Adjusted EBITDA from Home Health Operations
Adjusted earnings before interest, income tax, depreciation and amortization, amortization of stock-based compensation, deal, transition and other and Healthcare Innovations operating loss (Adjusted EBTIDA from Home Health Operations) 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 Adjusted EBITDA from Home Health Operations are significant components in understanding and evaluating financial performance and liquidity. Management routinely calculates and communicates Adjusted EBITDA from Home Health Operations and believes that it is useful to investors because it provides a common analytical indicator within our industry to evaluate performance, measure leverage capacity and debt service ability, and to estimate current or prospective enterprise value. Adjusted EBITDA is also used in certain covenants contained in our credit agreement.
The following tables set forth a reconciliation of net income from continuing operations to Adjusted EBITDA from Home Health Operations:
| ALMOST FAMILY, INC. AND SUBSIDIARIES | ||||
| RECONCILIATION OF ADJUSTED EBITDA | ||||
| FROM HOME HEALTH OPERATIONS | ||||
| (In thousands) | ||||
| Three month period ended | Six month period ended | |||
| (in thousands) | July 3, 2015 | June 30, 2014 | July 3, 2015 | June 30, 2014 |
| Net income from continuing operations | $ 4,795 | $ 4,061 | $ 8,819 | $ 5,215 |
| Add back: | ||||
| Interest expense | 392 | 329 | 753 | 677 |
| Income tax expense | 3,393 | 2,618 | 6,380 | 3,435 |
| Depreciation and amortization | 862 | 1,050 | 1,780 | 2,152 |
| Stock-based compensation from home health operations | 485 | 458 | 1,005 | 872 |
| Deal and transition costs | 206 | 1,243 | 614 | 4,357 |
| Adjusted EBITDA | 10,133 | 9,759 | 19,351 | 16,708 |
| Healthcare Innovations operating loss | 473 | 505 | 1,091 | 797 |
| Adjusted EBITDA from home health operations | $ 10,606 | $ 10,264 | $ 20,442 | $ 17,505 |
About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Ohio, Tennessee, Kentucky, Connecticut, New Jersey, Massachusetts, Indiana, Pennsylvania, Georgia, Missouri, Illinois, Mississippi and Alabama (in order of revenue significance). Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment, a personal care segment and a healthcare innovations segment. Almost Family operates over 220 branch locations in fourteen 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 including obtaining synergies, integration objectives and anticipated timelines; 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; the ability of the Company to integrate, manage and keep secure our information systems; changes in the marketplace and regulatory environment for Health Risk Assessments 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, 2014, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and "Risk Factors." With regard to the Company's investment in Ingenios, in particular given that it is a development-stage enterprise, there can be no assurance that it's operational and developmental objectives will be realized or that the Company's investment in Ingenios will be realized in future returns. The Company undertakes no obligation to update or revise its forward-looking statements.