Almost Family With A Stellar Quarter

By: TraderMark Friday, November 07, 2008 10:37 AM

Symbols: AFAM, AMED, VWPT

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Net revenues in the Personal Care (PC) segment for the third quarter of 2008 were $10.1 million, an 11% increase from $9.1 million in the third quarter of 2007. (Visiting Nurse revenue is 80% of the current business post acquisition with a 44% organic growth rate and the remainder from the Patient Care acquisition)

Net income for the third quarter of 2008 increased almost 150% to $4.7 million, or $0.56 per diluted share, compared to $1.9 million, or $0.34 per diluted share, in the third quarter of 2007. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 49% between periods. (Despite a 50% increase in share count, earnings per share still were able to jump from 34 cents to 56)

Some more detail on the Patient Care acquisition

On August 1, 2008, Almost Family completed the acquisition of Patient Care for $45.2 million, subject to a working capital adjustment. The acquisition was previously under a definitive agreement signed on June 18, 2008. The acquisition added $47 million in annual revenues and eight locations in New Jersey, Connecticut, and Pennsylvania. Due to the transition, wind down costs and the timing of the close, the acquisition is not expected to contribute significantly to earnings in 2008 but is expected to be accretive to EPS in 2009.

They filed a shelf registration yesterday

Today, November 5, 2008 Almost Family expects to file with the Securities and Exchange Commission a shelf registration statement on Form S-3 which, when declared effective by the SEC, will increase the amount of capital it could raise from approximately $30 million to $150 million to provide financing flexibility for development plans.

The shelf registration gives me pause to invest at this point because if they go the full monty and do $150M worth of shares that is some mighty dilution for a $400M company.

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