Fourth Quarter and Full Year Highlights:
- Fourth quarter net service revenues increased 84% to $66.2 million; full year net service revenues increased 61% to $212.6 million
- Fourth quarter Visiting Nurse (VN) segment net revenues rose 108% to $55.7 million; full year VN net revenues rose 80% to $173.0 million
- Fourth quarter net income increased 151% to $5.2 million; full year net income increased 114% to $16.3 million
- Fourth quarter diluted EPS increased 68% to $0.62 per share on 48% more shares outstanding; full year diluted EPS increased 59% to $2.16 per share on 35% more shares outstanding
LOUISVILLE, Ky., March 4, 2009 /PRNewswire-FirstCall/ -- 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, 2008.
William Yarmuth, Chief Executive Officer, commented, 'By all measures, the fourth quarter of 2008 completes a milestone year for Almost Family. Our success during the quarter was highlighted by 84% total revenue growth and 47% organic growth in our VN segment. We have been extremely successful during the year rolling out our Senior Advocacy Mission to all of our existing and acquired branches. The results are a stronger patient centric organization, a broader platform from which to grow and continued strong financial performance. We are particularly pleased to have substantially completed the integration of Patient Care, the largest acquisition in our history, transitioning its home office functions and systems to our Louisville headquarters. Looking into 2009, we will continue to focus on the major drivers of our revenue growth: educating referral sources on how we can provide the best care for their patients and pursuing start-ups and acquisitions that increase our densification in our existing geographic clusters.'
Fourth Quarter Financial Results
Almost Family reported fourth quarter 2008 net service revenues of $66.2 million, an 84% increase from $35.9 million in the fourth quarter of 2007. Net income for the fourth quarter of 2008 increased to 7.9% of net service revenues versus 5.8% for the fourth quarter of 2007.
Net income for the fourth quarter of 2008 was $5.2 million, or $0.62 per diluted share, compared to $2.1 million, or $0.37 per diluted share, in the fourth quarter of 2007. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 48% between periods.
Fourth Quarter Segment Results
Net revenues in the Visiting Nurse segment for the fourth quarter of 2008 were $55.7 million, a 108% increase from $26.8 million in the fourth quarter of 2007. The total revenue growth of $28.9 million came from a 47% organic growth rate plus $20.1 million from acquired operations. Operating income before corporate expense in the VN segment for the fourth quarter 2008 was $12.6 million, a 145% increase from $5.2 million in the fourth quarter of 2007.
Net revenues in the Personal Care (PC) segment for the fourth quarter of 2008 were $10.5 million, a 16% increase from $9.1 million in the fourth quarter of 2007. Operating income before corporate expense in the PC segment for the fourth quarter of 2008 was $1.4 million, a 67% increase from $819,000 in the fourth quarter of 2007.
Full Year Financial Results
Almost Family reported net service revenues for the twelve month period ended December 31, 2008 of $212.6 million, a 61% increase from $132.1 million in the same period last year. Net income for the twelve month period increased to 7.7% of net service revenues versus 5.9% for the prior year period.
Net income for the twelve month period was $16.3 million, or $2.16 per diluted share, compared to $7.6 million, or $1.36 per diluted share, in the prior year period. The weighted average shares outstanding for purposes of calculating diluted earnings per share increased 35% between periods.
Full Year Segment Results
Net revenues in the Visiting Nurse segment for the twelve month period of 2008 were $173.0 million, an 80% increase from $96.2 million in the same period last year. The total revenue growth of $76.8 million came from a 36% organic growth rate plus $47.4 million from acquired operations. The twelve month results for the period ended 2008 included results from the Apex Home Healthcare acquisition completed in late March 2008, the Patient Care acquisition completed in August 2008 and the Fairfield Ohio Medical Center Home Health Agency acquisition completed in November 2008. The twelve month results from the period ended 2007 included results from the Quality of Life acquisition completed in late October of 2007. Operating income before corporate expense in the VN segment for the twelve month period was $36.6 million, a 99% increase from $18.4 million in the same period last year.
Net revenues in the Personal Care segment for the twelve month period were $39.6 million, a 10% increase from $35.9 million in the same period last year. Operating income before corporate expense in the PC segment for the twelve month period was $3.8 million, a 12% increase from $3.4 million in the same period last year.
Recent Corporate Developments
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, rising from its No. 77 ranking in 2007.
On November 5, 2008 Almost Family filed with the Securities and Exchange Commission a shelf registration statement on Form S-3 which increased the amount of capital the Company could raise from approximately $30 million to $150 million to provide financing flexibility for development plans.
On November 14, 2008, Almost Family acquired the assets of the Medicare-certified home health agency owned by Fairfield Medical Center located near Columbus OH. The agency generated approximately $1.2 million of Medicare revenue in 2007.
On November 26, 2008, Almost Family acquired the Kentucky Certificate of Need and home health license of the Medicare-certified home health agency formerly operated by Hardin Memorial Hospital in Elizabethtown, KY. The certificate will enable Almost Family to expand its service territory into four additional counties south of the metro Louisville area.
On Friday, February 20, 2009 Almost Family was added to the S&P SmallCap 600 Index. Introduced in 1994, S&P SmallCap 600 is a U.S. benchmark index made up of the securities of 600 companies with a market capitalization of $200 million to $1 billion.
Conference Call
A conference call to review the results will begin at 11:00 a.m. ET on March 4, 2009, 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 March 4, 2009 at 2:00 p.m. ET and ending on March 18, 2009. The replay telephone number is 1-877-660-6853 (USA) or 1-201-612-7415 (International). Account Number: 3055 and Passcode: 313364.
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 March 4, 2009 at approximately 2:00 p.m. ET and will remain available until April 4, 2009.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
December 31,
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2008 2007
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Net service revenues $66,167,274 $35,876,385
Cost of service revenue 30,427,520 17,239,541
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Gross margin 35,739,754 18,636,844
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General and administrative expenses:
Salaries and benefits 18,241,445 9,399,181
Other 8,220,775 5,414,355
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Total general and administrative expenses 26,462,220 14,813,536
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Operating income 9,277,534 3,823,308
Interest expense, net (413,584) (186,503)
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Income from continuing operations before
income taxes 8,863,950 3,636,805
Income tax expense (3,658,122) (1,560,737)
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Net income from continuing operations 5,205,828 2,076,068
Discontinued operations, net of tax benefit of
$5,915 and $92,290 (9,135) (5,986)
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Net income $5,196,693 $2,070,082
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Per share amounts-basic:
Average shares outstanding 8,136,723 5,504,484
Income from continued operations $0.64 $0.38
Loss from discontinued operations - -
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Net income $0.64 $0.38
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Per share amounts-diluted:
Average shares outstanding 8,367,865 5,668,916
Income from continued operations $0.62 $0.37
Loss from discontinued operations - -
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Net income $0.62 $0.37
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ALMOST FAMILY, INC.
