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EXCEL - IDEA: XBRL DOCUMENT - ALMOST FAMILY INC | Financial_Report.xls |
EX-31.1 - EX-31.1 - ALMOST FAMILY INC | a13-8352_1ex31d1.htm |
EX-31.2 - EX-31.2 - ALMOST FAMILY INC | a13-8352_1ex31d2.htm |
EX-10.1 - EX-10.1 - ALMOST FAMILY INC | a13-8352_1ex10d1.htm |
EX-32.1 - EX-32.1 - ALMOST FAMILY INC | a13-8352_1ex32d1.htm |
EX-32.2 - EX-32.2 - ALMOST FAMILY INC | a13-8352_1ex32d2.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2013
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-09848
ALMOST FAMILY, INC.
(Exact name of Registrant as specified in its charter)
Delaware |
|
06-1153720 |
(State or other jurisdiction of |
|
(I.R.S. Employer Identification |
9510 Ormsby Station Road, Suite 300, Louisville, Kentucky 40223
(Address of principal executive offices)
(502) 891-1000
(Registrants telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No ¨.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of accelerated filer, large accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act (check one):
Large accelerated filer ¨ |
|
Accelerated filer x |
|
|
|
Non-accelerated filer ¨ |
|
Smaller Reporting Company ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.
Class of Common Stock $0.10 par value
Shares outstanding at May 3, 2013 9,356,216
ALMOST FAMILY, INC. AND SUBSIDIARIES
FORM 10-Q
PART I FINANCIAL INFORMATION
ALMOST FAMILY, INC. AND SUBSIDIARIES
|
|
March 31, 2013 |
|
|
| ||
(In thousands) |
|
(UNAUDITED) |
|
December 31, 2012 |
| ||
ASSETS |
|
|
|
|
| ||
CURRENT ASSETS: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
34,636 |
|
$ |
26,120 |
|
Accounts receivable - net |
|
49,415 |
|
49,971 |
| ||
Prepaid expenses and other current assets |
|
5,349 |
|
7,021 |
| ||
Deferred tax assets |
|
7,055 |
|
6,580 |
| ||
TOTAL CURRENT ASSETS |
|
96,455 |
|
89,692 |
| ||
|
|
|
|
|
| ||
PROPERTY AND EQUIPMENT - NET |
|
5,526 |
|
5,401 |
| ||
GOODWILL |
|
133,418 |
|
133,418 |
| ||
OTHER INTANGIBLE ASSETS |
|
19,944 |
|
19,967 |
| ||
OTHER ASSETS |
|
730 |
|
781 |
| ||
|
|
$ |
256,073 |
|
$ |
249,259 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
| ||
CURRENT LIABILITIES: |
|
|
|
|
| ||
Accounts payable |
|
$ |
5,849 |
|
$ |
4,599 |
|
Accrued other liabilities |
|
23,492 |
|
21,874 |
| ||
Current portion of notes payable |
|
625 |
|
625 |
| ||
TOTAL CURRENT LIABILITIES |
|
29,966 |
|
27,098 |
| ||
|
|
|
|
|
| ||
LONG-TERM LIABILITIES: |
|
|
|
|
| ||
Notes payable |
|
500 |
|
500 |
| ||
Deferred tax liabilities |
|
17,351 |
|
16,785 |
| ||
Other liabilities |
|
407 |
|
561 |
| ||
TOTAL LONG-TERM LIABILITIES |
|
18,258 |
|
17,846 |
| ||
TOTAL LIABILITIES |
|
48,224 |
|
44,944 |
| ||
|
|
|
|
|
| ||
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; 9,447 and 9,421 issued and outstanding |
|
944 |
|
942 |
| ||
Treasury stock, at cost, 91 and 91 shares of common stock |
|
(2,320 |
) |
(2,320 |
) | ||
Additional paid-in capital |
|
102,230 |
|
101,945 |
| ||
Retained earnings |
|
106,995 |
|
103,748 |
| ||
TOTAL STOCKHOLDERS EQUITY |
|
207,849 |
|
204,315 |
| ||
|
|
$ |
256,073 |
|
$ |
249,259 |
|
See accompanying Notes to Consolidated Financial Statements.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
|
|
Three Months Ended March 31, |
| ||||
|
|
2013 |
|
2012 |
| ||
Net service revenues |
|
$ |
86,858 |
|
$ |
89,950 |
|
Cost of service revenues (excluding depreciation and amortization) |
|
46,320 |
|
45,759 |
| ||
Gross margin |
|
40,538 |
|
44,191 |
| ||
General and administrative expenses: |
|
|
|
|
| ||
Salaries and benefits |
|
24,757 |
|
25,289 |
| ||
Other |
|
10,617 |
|
10,904 |
| ||
Total general and administrative expenses |
|
35,374 |
|
36,193 |
| ||
Operating income |
|
5,164 |
|
7,998 |
| ||
Interest expense, net |
|
(18 |
) |
(38 |
) | ||
Income before income taxes |
|
5,146 |
|
7,960 |
| ||
Income tax expense |
|
(1,899 |
) |
(3,028 |
) | ||
Net income |
|
$ |
3,247 |
|
$ |
4,932 |
|
|
|
|
|
|
| ||
Per share amounts-basic: |
|
|
|
|
| ||
Average shares outstanding |
|
9,254 |
|
9,268 |
| ||
Net income |
|
$ |
0.35 |
|
$ |
0.53 |
|
|
|
|
|
|
| ||
Per share amounts-diluted: |
|
|
|
|
| ||
Average shares outstanding |
|
9,338 |
|
9,334 |
| ||
Net income |
|
$ |
0.35 |
|
$ |
0.53 |
|
See accompanying Notes to Consolidated Financial Statements.
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
|
|
Three Months Ended March 31, |
| ||||
|
|
2013 |
|
2012 |
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
|
$ |
3,247 |
|
$ |
4,932 |
|
Adjustments to reconcile income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
|
635 |
|
622 |
| ||
Provision for uncollectible accounts |
|
1,118 |
|
1,020 |
| ||
Stock-based compensation |
|
287 |
|
361 |
| ||
Deferred income taxes |
|
90 |
|
222 |
| ||
|
|
5,377 |
|
7,157 |
| ||
Change in certain net assets and liabilities, net of the effects of acquisitions: |
|
|
|
|
| ||
Decrease (increase) in: |
|
|
|
|
| ||
Accounts receivable |
|
(562 |
) |
(4,226 |
) | ||
Prepaid expenses and other current assets |
|
1,625 |
|
(198 |
) | ||
Other assets |
|
52 |
|
34 |
| ||
Decrease in: |
|
|
|
|
| ||
Accounts payable and accrued expenses |
|
2,714 |
|
3,236 |
| ||
Net cash provided by operating activities |
|
9,206 |
|
6,003 |
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Capital expenditures |
|
(690 |
) |
(496 |
) | ||
Net cash used in investing activities |
|
(690 |
) |
(496 |
) | ||
Cash flows from financing activities: |
|
|
|
|
| ||
Purchase of common stock in connection with share awards |
|
|
|
(1,821 |
) | ||
Tax impact of share awards |
|
|
|
(87 |
) | ||
Net cash used in financing activities |
|
|
|
(1,908 |
) | ||
Net change in cash and cash equivalents |
|
8,516 |
|
3,599 |
| ||
Cash and cash equivalents at beginning of period |
|
26,120 |
|
33,693 |
| ||
Cash and cash equivalents at end of period |
|
$ |
34,636 |
|
$ |
37,292 |
|
See accompanying Notes to Consolidated Financial Statements.
ALMOST FAMILY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Unless otherwise indicated, all dollars and share amounts are in thousands, except per share data)
1. Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements for the three months ended March 31, 2013 and 2012 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to such rules and regulations. Accordingly, the reader of this Form 10-Q is referred to Almost Family, Inc.s (the Company) Form 10-K for the year ended December 31, 2012 for further information. In the opinion of management of the Company, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position at March 31, 2013, the results of operations for the three month periods ended March 31, 2013 and cash flows for the three month periods ended March 31, 2013 and 2012. The results of operations for the three month periods ended March 31, 2013 are not necessarily indicative of the operating results for the year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements
In July 2012, the FASB issued ASU 2012-02, Intangibles Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment intended to simplify how an entity tests indefinite-lived assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. ASU 2012-02 was effective for the Companys calendar year beginning January 1, 2013. The adoption of ASU 2012-02 did not impact the consolidated financial statements.
2. Segment Data
The Company has two reportable segments, Visiting Nurse (VN) and Personal Care (PC), which provide services in Florida, Ohio, Kentucky, Connecticut, New Jersey, Massachusetts, Missouri, Illinois, Alabama, Pennsylvania and Indiana. Reportable segments have been identified based upon how management has organized the business by services provided to customers and the criteria in ASC 280, Segment Reporting. The Company does not allocate certain expenses to the reportable segments. These expenses are included in corporate expenses below.
The VN segment provides skilled medical services in patients homes largely to enable recipients to reduce or avoid periods of hospitalization and/or nursing home care. VN Medicare revenues are generated on a per episode basis rather than a fee per visit or day of care. Approximately 93% of the VN segment revenues are generated from the Medicare program while the balance is generated from Medicaid and private insurance programs.
The PC segment services are also provided in patients homes. These services (generally provided by paraprofessional staff such as home health aides) are generally of a custodial rather than skilled nature. PC revenues are generated on an hourly basis. Approximately 85% of the PC segment revenues are generated
from Medicaid and other government programs while the balance is generated from insurance programs and private pay patients.
|
|
Three Months Ended March 31, |
| ||||
|
|
2013 |
|
2012 |
| ||
Net service revenues: |
|
|
|
|
| ||
Visiting Nurse |
|
$ |
67,956 |
|
$ |
70,704 |
|
Personal Care |
|
18,902 |
|
19,246 |
| ||
|
|
86,858 |
|
89,950 |
| ||
Operating income before corporate expenses: |
|
|
|
|
| ||
Visiting Nurse |
|
8,226 |
|
11,012 |
| ||
Personal Care |
|
1,998 |
|
2,458 |
| ||
|
|
10,224 |
|
13,470 |
| ||
Corporate expenses |
|
5,060 |
|
5,472 |
| ||
Operating income |
|
$ |
5,164 |
|
$ |
7,998 |
|
Interest expense, net |
|
(18 |
) |
(38 |
) | ||
Income tax expense |
|
(1,899 |
) |
(3,028 |
) | ||
Net income |
|
$ |
3,247 |
|
$ |
4,932 |
|
3. Capitalized Software Development Costs
The Company capitalizes the cost of internally generated computer software developed for the Companys own use. Software development costs of approximately $328 and $110 were capitalized in the three months ended March 31, 2013 and 2012, respectively. Capitalized software development costs are amortized over the estimated useful life, generally three years, once the software is ready for its intended use.
4. Goodwill and Other Intangible Assets
The Company conducts annual reviews for impairment, or more frequently if circumstances indicate impairment may have occurred. Other intangible assets consist of certificates of need and licenses, trade names and non-compete agreements. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Licenses, provider numbers, certificates of need and trade names have indefinite lives and are reviewed at least annually for possible impairment, or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. The Company completed its most recent annual impairment test of goodwill and other indefinite-lived intangible assets as of December 31, 2012 and determined that no impairment existed.
The following table summarizes the activity related to goodwill and other intangible assets for 2013:
|
|
|
|
Other Intangible Assets |
| |||||||||||
|
|
Goodwill |
|
Certificates |
|
Trade |
|
Non-compete |
|
Total |
| |||||
Balances at 12-31-12 |
|
$ |
133,418 |
|
$ |
9,391 |
|
$ |
10,421 |
|
$ |
155 |
|
$ |
19,967 |
|
Amortization |
|
|
|
|
|
|
|
(23 |
) |
(23 |
) | |||||
Balances at 3-31-13 |
|
$ |
133,418 |
|
$ |
9,391 |
|
$ |
10,421 |
|
$ |
132 |
|
$ |
19,944 |
|
Of total goodwill, $102,497 and $30,921 relates to the VN segment and the PC segment, respectively. Amortization expense recognized on finite-lived intangible assets for the first quarter of 2013 and 2012 was $23 and $16, respectively.
5. Revolving Credit Facility
At March 31, 2013, the Company had a $125 million senior secured revolving credit facility with JP Morgan Chase Bank, NA, as Administrative Agent, Bank of America, as Syndication Agent and certain other lenders (the Facility). The Facility consists of a $125 million credit line with a maturity date of December 2, 2015 and an accordion feature providing for potential future expansion of the Facility to $175 million. Borrowings (other than letters of credit) under the credit facility are at either the banks prime rate plus a margin (ranging from 1.25% to 2.25%, currently 1.25%) or LIBOR plus a margin (ranging from 2.25% to 3.25%, 2.25% at March 31, 2013). The margin for prime rate or LIBOR borrowings is determined by the Companys leverage. Borrowings under the Facility are secured by a first priority perfected security interest in all tangible and intangible assets of the Company, and all existing and future direct and indirect subsidiaries of the Company, as guarantors.
The weighted average prime rate-based interest rate was 4.50% for both the three months ended March 31, 2013 and 2012. The weighted average LIBOR rates were 2.54% and 2.76% for the three months ended March 31, 2013 and 2012, respectively. The Company pays a quarterly commitment fee of 0.30% to 0.50% on the average daily unused facility balance based on leverage. Borrowings are subject to various covenants including a multiple of 3.0 times earnings before interest, income tax, depreciation and amortization (EBITDA). EBITDA may include Acquired EBITDA from pro-forma acquisitions pursuant to a calculation rider, up to 50% of Adjusted EBITDA, as defined. Borrowings under the Facility may be used for general corporate purposes, including acquisitions. As of March 31, 2013, the formula permitted $89.1 million to be used, of which no amounts were outstanding. The Company had irrevocable letters of credit totaling $6.3 million outstanding in connection with the Companys self-insurance programs, which resulted in a total of $81.7 million being available for use at March 31, 2013. As of March 31, 2013, the Company was in compliance with the Facilitys various financial covenants. Under the most restrictive of its covenants, the Company was required to maintain minimum net worth of at least $158.1 million at March 31, 2013. At such date, the Companys net worth was approximately $207.8 million.
6. Fair Value Measurements
The Companys financial instruments consist of cash, accounts receivable, payables and debt instruments. The carrying values of cash, accounts receivable and payables are considered representative of their respective fair values due to the short-term nature of these instruments. The fair value of the Companys debt instruments approximates their carrying values as substantially all of such debt instruments have rates which fluctuate with changes in market rates. The Company does not have any assets or liabilities carried at fair value that are measured on a recurring basis.
7. Stock-Based Compensation
The Company issues both restricted share and option awards to employees and non-employee directors. Restricted share awards cliff vest on the third anniversary, while option share awards vest annually in 25% increments over four years. Stock option grant date fair values are determined at the date of grant using a Monte Carlo option valuation model with suboptimal exercise behavior. Changes in awards outstanding are summarized as follows:
|
|
Restricted shares |
|
Options |
| ||||||
|
|
Shares |
|
Wtd Avg. Grant |
|
Shares |
|
Wtd Avg. Ex. |
| ||
December 31, 2012 |
|
50 |
|
$ |
31.35 |
|
341 |
|
$ |
25.62 |
|
Granted |
|
33 |
|
20.89 |
|
59 |
|
20.89 |
| ||
Forfeited |
|
|
|
|
|
(23 |
) |
30.77 |
| ||
March 31, 2013 |
|
83 |
|
$ |
27.24 |
|
377 |
|
$ |
24.57 |
|
8. Earnings per Common Share
A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted earnings per common share is as follows:
|
|
Three Months Ended March 31, |
| ||
|
|
2013 |
|
2012 |
|
Basic weighted average outstanding shares |
|
9,254 |
|
9,268 |
|
Add common equivalent shares representing shares issuable upon exercise of dilutive awards |
|
84 |
|
66 |
|
Diluted weighted average number of shares |
|
9,338 |
|
9,334 |
|
9. Commitments and Contingencies
Insurance Programs
The Company bears significant insurance risk under its large-deductible workers compensation insurance program and its self-insured employee health program. Under the workers compensation insurance program, the Company bears risk up to $400 per incident, after which stop-loss coverage is maintained. The Company purchases stop-loss insurance for the employee health plan that places a specific limit, generally $300, on its exposure for any individual covered life.
Malpractice and general patient liability claims for incidents which may give rise to litigation have been asserted against the Company by various claimants. The claims are in various stages of processing and some may ultimately be brought to trial. The Company is aware of incidents that have occurred through March 31, 2013 that may result in the assertion of additional claims. The Company currently carries professional and general liability insurance coverage (on a claims made basis) for this exposure with no deductible. The Company also carries D&O coverage (also on a claims made basis) for potential claims against the Companys directors and officers, including certain securities actions, with deductibles ranging from $100 to $250 per claim.
The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, the life cycle of claims, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities and recoveries, if any, on a monthly basis and as required by ASU 2010-24, has recorded amounts due under insurance policies in other current assets, while recording the estimated carrier liability in other current liabilities. As facts change, it may become necessary to make adjustments that could be material to the Companys results of operations and financial condition.
Legal Proceedings & Investigations
The Company is currently, and from time to time, subject to claims and suits arising in the ordinary course of its business, including claims for damages for personal injuries. In the opinion of management, after discussions with legal counsel, the ultimate resolution of any of these ordinary course pending claims and legal proceedings will not have a material effect on the Companys financial position or results of operations.
As previously disclosed, four derivative complaints were filed in Jefferson Circuit Court, Kentucky, against the members of the Companys board of directors and chief financial officer. All four lawsuits named the Company as a nominal defendant and were consolidated into a single action. All of the complaints and the resulting consolidated complaint refer to an April 27, 2010 The Wall Street Journal article and the subsequent governmental investigations. On February 13, 2012, the independent directors filed a motion to dismiss the complaint. On October 2, 2012, the Court entered an order granting the motion to dismiss and dismissing the complaint with prejudice. On November 1, 2012 the plaintiffs filed an appeal of the Courts ruling with the Kentucky Court of Appeals. Briefing to the Court of Appeals is underway.
As previously disclosed, a fifth derivative complaint involving Richard W. Carey was filed in U.S. District Court for the Western District of Kentucky. The lawsuit names the Company as a nominal defendant and is substantially duplicative of the derivative complaint pending in the Jefferson Circuit Court. The Court granted the defendants motion to stay the lawsuit pending further order of the Court.
The Company is unable to assess the probable outcome or potential liability, if any, arising from these unresolved matters.
10. Income Taxes
The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes. The Companys effective income tax rates for the three month periods ended March 31, 2013 and 2012 were approximately 36.9% and 38.0%, respectively. The change in rate for the three month period for 2013 was primarily due to a one-time benefit resulting from the January 2, 2013 retroactive extension of the Work Opportunity Tax Credit which resulted in the recognition of the benefit from fiscal year 2012 in the first quarter of 2013. The 2012 rate was below the statutory rate primarily due to a one-time benefit resulting from the release of a valuation allowance in conjunction with tax planning strategies completed during the first quarter of 2012, as well as a lower state tax rate from the Cambridge acquisition.
Certain tax authorities may periodically audit the Company. Based on the Companys evaluation, the Company concluded that no significant uncertain tax positions require recognition in the financial statements. Additionally, the Company may from time to time be assessed interest and penalties by tax jurisdictions. Any such assessments historically have been immaterial to the Companys financial results and are classified as other general and administrative expenses in the consolidated statements of income.
11. Subsequent Events
Management has evaluated all events and transactions that occurred after March 31, 2013. The Company had no material subsequent events requiring recognition in the consolidated financial statements.
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company
Almost Family, Inc. TM and subsidiaries (collectively Almost Family) is a leading regional provider of home health nursing services. In this report, the terms Company, we, us or our mean Almost Family, Inc. and all subsidiaries included in our consolidated financial statements.
Cautionary Statements - Forward Outlook and Risks
Certain statements contained in this quarterly report on Form 10-Q, including, without limitation, statements containing the words believes, anticipates, intends, expects, assumes, trends and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Companys current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following:
· general economic and business conditions;
· demographic changes;
· changes in, or failure to comply with, existing governmental regulations;
· legislative proposals for healthcare reform;
· changes in Medicare and Medicaid reimbursement levels;
· effects of competition in the markets in which the Company operates;
· liability and other claims asserted against the Company;
· potential audits and investigations by government and regulatory agencies, including the impact of any negative publicity or litigation;
· ability to attract and retain qualified personnel;
· availability and terms of capital;
· loss of significant contracts or reduction in revenues associated with major payor sources;
· ability of customers to pay for services;
· business disruption due to natural disasters or terrorist acts;
· ability to successfully integrate the operations of acquired businesses and achieve expected synergies and operating efficiencies from the acquisition, in each case within expected time-frames or at all;
· significant deterioration in economic conditions and significant market volatility;
· effect on liquidity of the Companys financing arrangements; and,
· changes in estimates and judgments associated with critical accounting policies and estimates.
For a detailed discussion of these and other factors that could cause the Companys actual results to differ materially from the results contemplated by the forward-looking statements, please refer to Item 1A. Risk Factors and Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations in the Companys annual report on Form 10-K for year ended December 31, 2012 and this Form 10-Q. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Except as required by law, the Company assumes no responsibility for updating forward-looking statements to reflect unforeseen or other events after the date of this report. The Company has provided a detailed discussion of risk factors in its Form 10-K and various filings with the Securities and Exchange Commission (SEC). The reader is encouraged to review these risk factors and filings.
Critical Accounting Policies
Refer to the Critical Accounting Policies section of Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations included in our Form 10-K for the year ended December 31, 2012 for a detailed discussion of our critical accounting policies. There have been no material changes to our critical accounting policies and estimates in 2013.
Operating Segments
We have two reportable segments, Visiting Nurse (VN) and Personal Care (PC), which provide services in Florida, Ohio, Kentucky, Connecticut, New Jersey, Massachusetts, Missouri, Illinois, Alabama, Pennsylvania and Indiana (in order of revenue significance). Reportable segments have been identified based upon how management has organized the business by services provided to customers and the criteria in ASC 280, Segment Reporting.
Our VN segment provides skilled medical services in patients homes largely to enable recipients to reduce or avoid periods of hospitalization and/or nursing home care. VN Medicare revenues include revenues from all Medicare sources including Medicare and Medicare Advantage, whether paid on a per episode basis or a per visit basis. Approximately 93% of the VN segment revenues are generated from the Medicare program while the balance is generated from Medicaid and private insurance programs.
Our PC segment services are also provided in patients homes. These services (generally provided by paraprofessional staff such as home health aides) are generally of a custodial rather than skilled nature. PC revenues are generated on an hourly basis. Approximately 85% of the PC segment revenues are generated from Medicaid and other government programs while the balance is generated from insurance programs and private pay patients.
Certain general and administrative expenses incurred at the corporate level have not been allocated to the segments.
Health Care Reform Legislation and Medicare Regulations
The reader is encouraged to review our detailed discussion of Health Care Reform Legislation and Medicare Regulations in the similarly titled section in Part II, Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations, along with the discussion under Government Regulation in Part I, Item 1, Business in the Companys annual report on Form 10-K for year ended December 31, 2012. Additional developments since filing the Form 10-K include:
· All Medicare providers, including the Company, became subject to a 2% rate reduction as specified in the Budget Control Act of 2011, commonly referred to as Sequestration, went into effect during the first quarter of 2013 for episodes ended after March 31, 2013.
· In April 2013, one of our fiscal intermediaries, Palmetto Government Benefits Administration (Palmetto), announced plans to temporarily limit certain providers ability to bill Request for Advance Payment (RAP) claims which advance partial funding to providers prior to submission of final claims following the end of the episode. Certain of our providers were notified of such a temporary suspension of RAP billing privileges in April 2013. We have filed requests for waiver from such suspension and are currently awaiting responses on those requests.
Shareholder Litigation
See Note 9 to the consolidated financial statements and Part II, Item 1, Legal Proceedings of this Form 10-Q for a discussion of certain litigation. The Company is unable to predict the outcome of these matters. However, the Company may incur on-going expenses, net of insurance recoveries, if any, related to defense of such complaints.
Seasonality
Our VN segment operations located in Florida normally experience higher admissions during the first quarter and lower admissions during the third quarter than in the other quarters due to seasonal population fluctuations.
RESULTS OF OPERATIONS
THREE MONTHS
Consolidated
|
|
Three Months Ended March 31, |
| |||||||||||||
|
|
2013 |
|
2012 |
|
Change |
| |||||||||
(In thousands) |
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
| |||
Net service revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Visiting Nurse |
|
$ |
67,956 |
|
78.2 |
% |
$ |
70,704 |
|
78.6 |
% |
$ |
(2,748 |
) |
-3.9 |
% |
Personal Care |
|
18,902 |
|
21.8 |
% |
19,246 |
|
21.4 |
% |
(344 |
) |
-1.8 |
% | |||
|
|
86,858 |
|
100.0 |
% |
89,950 |
|
100.0 |
% |
(3,092 |
) |
-3.4 |
% | |||
Operating income before corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Visiting Nurse |
|
8,226 |
|
12.1 |
% |
11,012 |
|
15.6 |
% |
(2,786 |
) |
-25.3 |
% | |||
Personal Care |
|
1,998 |
|
10.6 |
% |
2,458 |
|
12.8 |
% |
(460 |
) |
-18.7 |
% | |||
|
|
10,224 |
|
11.8 |
% |
13,470 |
|
15.0 |
% |
(3,246 |
) |
-24.1 |
% | |||
Corporate expenses |
|
5,060 |
|
5.8 |
% |
5,472 |
|
6.1 |
% |
(412 |
) |
-7.5 |
% | |||
Operating income |
|
5,164 |
|
5.9 |
% |
7,998 |
|
8.9 |
% |
(2,834 |
) |
-35.4 |
% | |||
Interest expense, net |
|
(18 |
) |
0.0 |
% |
(38 |
) |
0.0 |
% |
20 |
|
-52.6 |
% | |||
Income tax expense |
|
(1,899 |
) |
-2.2 |
% |
(3,028 |
) |
-3.4 |
% |
1,129 |
|
-37.3 |
% | |||
Net income |
|
$ |
3,247 |
|
3.7 |
% |
$ |
4,932 |
|
5.5 |
% |
$ |
(1,685 |
) |
-34.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
EBITDA (1) |
|
$ |
6,086 |
|
7.0 |
% |
$ |
8,981 |
|
10.0 |
% |
$ |
(2,895 |
) |
-32.2 |
% |
(1) See Page 18 for discussion of EBITDA.
The year over year decline in revenue was primarily driven by a lower number of calendar days in 2013, as the first quarter of 2012 included an extra day due to 2012 being a leap year. Results for the first quarter of 2013 also included the unfavorable impact of Medicare Advantage changes and Medicare rate cuts in our VN segment. Refer to VN segment discussion for further detail.
Corporate expenses as a percent of revenue decreased to 5.8% from 6.1% in the prior year primarily due to lower incentive accruals in 2013 as compared to 2012.
The effective tax rate was approximately 36.9% in the first quarter of 2013, which declined from the 38.0% for the first quarter of 2012 due primarily to one-time benefit resulting from the January 2, 2013 retroactive extension of the Work Opportunity Tax Credit which resulted in the recognition of a $169 benefit from fiscal year 2012 in the first quarter of 2013.
Visiting Nurse Segment
|
|
Three Months Ended March 31, |
| |||||||||||||
|
|
2013 |
|
2012 |
|
Change |
| |||||||||
(In thousands, except for statistics) |
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
| |||
Net service revenues |
|
$ |
67,956 |
|
100.0 |
% |
$ |
70,704 |
|
100.0 |
% |
$ |
(2,748 |
) |
-3.9 |
% |
Cost of service revenues |
|
33,189 |
|
48.8 |
% |
32,816 |
|
46.4 |
% |
373 |
|
1.1 |
% | |||
Gross margin |
|
34,767 |
|
51.2 |
% |
37,888 |
|
53.6 |
% |
(3,121 |
) |
-8.2 |
% | |||
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Salaries and benefits |
|
19,879 |
|
29.3 |
% |
19,927 |
|
28.2 |
% |
(48 |
) |
-0.2 |
% | |||
Other |
|
6,662 |
|
9.8 |
% |
6,949 |
|
9.8 |
% |
(287 |
) |
-4.1 |
% | |||
Total general and administrative expenses |
|
26,541 |
|
39.1 |
% |
26,876 |
|
38.0 |
% |
(335 |
) |
-1.2 |
% | |||
Operating income before corporate expenses |
|
$ |
8,226 |
|
12.1 |
% |
$ |
11,012 |
|
15.6 |
% |
$ |
(2,786 |
) |
-25.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Average number of locations |
|
105 |
|
|
|
110 |
|
|
|
(5 |
) |
-4.5 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
All payors: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Patients months |
|
55,696 |
|
|
|
55,202 |
|
|
|
494 |
|
0.9 |
% | |||
Admissions |
|
16,528 |
|
|
|
16,396 |
|
|
|
132 |
|
0.8 |
% | |||
Billable visits |
|
480,466 |
|
|
|
480,118 |
|
|
|
348 |
|
0.1 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Admissions (1) |
|
15,203 |
|
92 |
% |
15,075 |
|
92 |
% |
128 |
|
0.8 |
% | |||
Revenue (in thousands) |
|
$ |
63,137 |
|
93 |
% |
$ |
65,525 |
|
93 |
% |
$ |
(2,388 |
) |
-3.6 |
% |
Revenue per admission |
|
$ |
4,153 |
|
|
|
$ |
4,347 |
|
|
|
$ |
(194 |
) |
-4.5 |
% |
Billable visits (1) |
|
405,942 |
|
84 |
% |
399,645 |
|
83 |
% |
6,297 |
|
1.6 |
% | |||
Recertifications |
|
8,172 |
|
|
|
8,493 |
|
|
|
(321 |
) |
-3.8 |
% | |||
Payor mix % of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Traditional Medicare Episodic |
|
90.8 |
% |
|
|
91.8 |
% |
|
|
-1.1 |
% |
|
| |||
Replacment Plans Paid Episodically |
|
2.7 |
% |
|
|
5.1 |
% |
|
|
-2.4 |
% |
|
| |||
Replacment Plans Paid Per Visit |
|
6.5 |
% |
|
|
3.1 |
% |
|
|
3.5 |
% |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Non-Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Admissions (1) |
|
1,325 |
|
8 |
% |
1,321 |
|
8 |
% |
4 |
|
0.3 |
% | |||
Revenue (in thousands) |
|
$ |
4,819 |
|
7 |
% |
$ |
5,179 |
|
7 |
% |
$ |
(360 |
) |
-6.9 |
% |
Revenue per admission |
|
$ |
3,637 |
|
|
|
$ |
3,920 |
|
|
|
$ |
(283 |
) |
-7.2 |
% |
Billable visits (1) |
|
74,524 |
|
16 |
% |
80,473 |
|
17 |
% |
(5,949 |
) |
-7.4 |
% | |||
Recertifications |
|
1,446 |
|
|
|
1,521 |
|
|
|
(75 |
) |
-4.9 |
% | |||
Payor mix % of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Medicaid & other governmental |
|
36.0 |
% |
|
|
42.2 |
% |
|
|
-6.3 |
% |
|
| |||
Private payors |
|
64.0 |
% |
|
|
57.8 |
% |
|
|
6.3 |
% |
|
|
(1) Percentages pertain to percentage of total admissions or total billable visits, as applicable.
VN segment net service revenues decreased $2.8 million, or about 3.9%, to $67.9 million in 2013 down from $70.7 million in 2012, primarily due to fewer calendar days in the period, a shift of certain Medicare Advantage payors from episodic to per visit payment, for which we are paid at substantially lower rates and a 2% Medicare rate cut for episodes completed after March 31, 2013, commonly referred to as Sequestration, each of which lowered net service revenue by $1.3 million, $1.0 million and $0.3 million, respectively. Medicare admissions increased approximately 1% in 2013 over 2012, while recertifications declined 4%.
Cost of service revenues increased $0.4 million primarily due to a $0.3 million increase in worker compensation claims expense due to unfavorable claims experience. Total general and administrative expenses decreased as a result of efforts to control labor and other costs relative to patients served, which was partially offset by increases in bad debt expense of $0.1 million.
As a result, VN segment operating income before corporate expenses declined $2.8 million to $8.2 million from $11.0 million in 2012, while operating income before corporate expenses as a percent of revenues decreased to 12.1% in 2013 from 15.6% in 2012.
Personal Care Segment
|
|
Three Months Ended March 31, |
| |||||||||||||
|
|
2013 |
|
2012 |
|
Change |
| |||||||||
(In thousands, except for statistics) |
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
| |||
Net service revenues |
|
$ |
18,902 |
|
100.0 |
% |
$ |
19,246 |
|
100.0 |
% |
$ |
(344 |
) |
-1.8 |
% |
Cost of service revenues |
|
13,131 |
|
69.5 |
% |
12,943 |
|
67.3 |
% |
188 |
|
1.5 |
% | |||
Gross margin |
|
5,771 |
|
30.5 |
% |
6,303 |
|
32.7 |
% |
(532 |
) |
-8.4 |
% | |||
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Salaries and benefits |
|
2,452 |
|
13.0 |
% |
2,546 |
|
13.2 |
% |
(94 |
) |
-3.7 |
% | |||
Other |
|
1,321 |
|
7.0 |
% |
1,299 |
|
6.7 |
% |
22 |
|
1.7 |
% | |||
Total general and administrative expenses |
|
3,773 |
|
20.0 |
% |
3,845 |
|
20.0 |
% |
(72 |
) |
-1.9 |
% | |||
Operating income before corporate expenses |
|
$ |
1,998 |
|
10.6 |
% |
$ |
2,458 |
|
12.8 |
% |
$ |
(460 |
) |
-18.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Average number of locations |
|
61 |
|
|
|
60 |
|
|
|
1 |
|
1.7 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Admissions |
|
1,089 |
|
|
|
1,075 |
|
|
|
14 |
|
1.3 |
% | |||
Patient months of care |
|
17,339 |
|
|
|
16,996 |
|
|
|
343 |
|
2.0 |
% | |||
Patient days of care |
|
257,226 |
|
|
|
250,366 |
|
|
|
6,860 |
|
2.7 |
% | |||
Billable hours |
|
1,017,388 |
|
|
|
1,074,313 |
|
|
|
(56,925 |
) |
-5.3 |
% | |||
Revenue per billable hour |
|
$ |
18.58 |
|
|
|
$ |
17.91 |
|
|
|
$ |
0.66 |
|
3.7 |
% |
Net service revenues declined by $0.3 million, to $18.9 million in 2013 from $19.2 million in 2012, primarily due to fewer calendar days in the period. Cost of service revenues as a percentage of net service revenues increased to 69.5% in the first quarter of 2013 from 67.3% in 2012 primarily due to changes in business mix and to a lesser degree, higher payroll tax rates.
Total general and administrative expenses as a percent of net service revenue was unchanged at 20.0% of net service revenues in 2013 and 2012.
As a result, PC segment operating income before corporate expenses decreased to $2.0 million from $2.5 million in 2012, while operating income before corporate expenses as a percent of revenues decreased to 10.6% in 2013 from 12.8% in 2012.
Liquidity and Capital Resources
Revolving Credit Facility
We have a $125 million senior secured revolving credit facility with JP Morgan Chase Bank, NA, as Administrative Agent, Bank of America, as Syndication Agent and certain other lenders (the Facility). The Facility consists of a $125 million credit line with a maturity date of December 2, 2015 and an accordion feature providing for potential future expansion of the Facility to $175 million. Borrowings (other than letters of credit) under the credit facility are made at either: a) the banks prime rate plus a margin (ranging from 1.25% to 2.25%, currently 1.25%) or b) LIBOR plus a margin (ranging from 2.25% to 3.25%, 2.25% at March 31, 2013). The margin for prime rate or LIBOR borrowings is determined by our leverage. Borrowings under the Facility are secured by a first priority perfected security interest in all our tangible and intangible assets, and all our existing and future direct and indirect subsidiaries, as guarantors.
The weighted average prime rate-based interest rate was 4.50% for both the three months ended March 31, 2013 and 2012. The weighted average LIBOR rates were 2.54% and 2.76% for the three months ended March 31, 2013 and 2012, respectively. We pay a quarterly commitment fee of 0.30% to 0.50% on the average daily unused facility balance based on leverage. Borrowings are subject to various covenants including a multiple of 3.0 times earnings before interest, taxes, depreciation and amortization (EBITDA). EBITDA may include Acquired EBITDA from pro-forma acquisitions pursuant to a calculation rider, up to 50% of Adjusted EBITDA, as defined. Borrowings under the Facility may be used for general corporate purposes, including acquisitions. As of March 31, 2013, the formula permitted $89.1 million to be used against which we had irrevocable letters of credit totaling $6.3 million outstanding in connection with our self-insurance programs. As a result a total of $81.7 million was available for borrowing at March 31, 2013. As of March 31, 2013, we were in compliance with the Facilitys various financial covenants. Under the most restrictive of its covenants, we were required to maintain minimum net worth of at least $158.1 million at March 31, 2013. At such date, our net worth was approximately $207.8 million.
We believe that this facility plus cash on hand will be sufficient to fund our operating needs for at least the next year. We will continue to evaluate additional capital, including possible debt and equity investments in the Company, to support a more rapid development of the business than would be possible with internal funds.
Cash Flows
Key elements to the Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012 were:
Net Change in Cash and Cash Equivalents (in thousands) |
|
2013 |
|
2012 |
| ||
Provided by (used in): |
|
|
|
|
| ||
Operating activities |
|
$ |
9,206 |
|
$ |
6,003 |
|
Investing activities |
|
(690 |
) |
(496 |
) | ||
Financing activities |
|
|
|
(1,908 |
) | ||
Net change in cash and cash equivalents |
|
$ |
8,516 |
|
$ |
3,599 |
|
2013
Net cash provided by operating activities resulted primarily from current period net income of $3.2 million plus certain non-cash items, net of changes in accounts receivable, accounts payable and accrued expenses. The increase from 2012 is primarily due to 2012 including a use of cash related to a $4.2 million increase in accounts receivable. Accounts receivable days revenues outstanding was 52 at March 31, 2013 and 53 at December 31, 2012 due to processing delays as well as prepayment Additional Data Requests from Palmetto in our VN segment in 2012, which did not repeat in 2013.
The cash used in investing activities was due to capital expenditures.
Net cash used in financing activities for the three months ended March 31, 2013 decreased over the prior year period primarily due to cash used in 2012 for a $1.7 million stock redemption of 72,000 shares related to the previous distribution of shares to non-employee directors pursuant to the termination of the Companys Non-Employee Directors Deferred Compensation Plan.
2012
Net cash provided by operating activities resulted primarily from current period net income of $4.9 million plus certain non-cash items, net of changes in accounts receivable, accounts payable and accrued expenses. Accounts receivable days revenues outstanding was 49 at March 31, 2012 and 46 at December 31, 2011 due to processing delays as well as prepayment ADRs from Palmetto in our VN segment.
The cash used in investing activities was primarily due to capital expenditures.
Net cash used in financing activities for the three months ended March 31, 2012 increased over the prior year period primarily due to cash used for a $1.7 million stock redemption of 72,000 shares related to the previous distribution of shares to non-employee directors pursuant to the termination of the Companys Non-Employee Directors Deferred Compensation Plan.
Impact of Inflation
Management does not believe that inflation has had a material effect on income during the past several years.
Non-GAAP Financial Measure
The information provided in some of the tables use certain non-GAAP financial measures as defined under SEC rules. In accordance with SEC rules, the Company has provided, in the supplemental information below, a reconciliation of those measures to the most directly comparable GAAP measures.
EBITDA
EBITDA is not a measure of financial performance under U.S generally accepted accounting principles. 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 table sets forth a reconciliation of Net Income to EBITDA:
|
|
Three Months Ended March 31, |
| ||||
(in thousands) |
|
2013 |
|
2012 |
| ||
Net income |
|
$ |
3,247 |
|
$ |
4,932 |
|
Add back: |
|
|
|
|
| ||
Interest expense |
|
18 |
|
38 |
| ||
Income tax expense |
|
1,899 |
|
3,028 |
| ||
Depreciation and amortization |
|
635 |
|
622 |
| ||
Amortization of stock-based compensation |
|
287 |
|
361 |
| ||
Earnings before interest, income taxes, depreciation and amortization (EBITDA) |
|
$ |
6,086 |
|
$ |
8,981 |
|
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Derivative Instruments
The Company does not use derivative instruments.
Market Risk of Financial Instruments
Our primary market risk exposure with regard to financial instruments is to changes in interest rates on long-term obligations.
At March 31, 2013, the Company had no outstanding amounts on its revolving credit facility and, therefore, a hypothetical 100 basis point increase in short-term interest rates would have no impact on annual pre-tax earnings due to higher interest expense.
ITEM 4. CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures As of March 31, 2013, the Companys management, with participation of the Companys Chief Executive Officer and Principal Financial Officer, evaluated the effectiveness of the Companys disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e). Based on that evaluation, the Chief Executive Officer and Principal Financial Officer concluded that the Companys disclosure controls and procedures were effective as of March 31, 2013.
Changes in Internal Control Over Financial Reporting - There were no changes in the Companys internal control over financial reporting during the first quarter of 2013, that have materially affected, or are reasonably likely to materially affect, Almost Family, Inc.s internal control over financial reporting.
From time to time, we are subject to various legal actions arising in the ordinary course of our business, including claims for damages for personal injuries. In our opinion, after discussion with legal counsel, the ultimate resolution of any of these pending ordinary course claims and legal proceedings will not have a material effect on our financial position or results of operations.
As previously disclosed, four derivative complaints were filed in Jefferson Circuit Court, Kentucky, against the members of the Companys board of directors and chief financial officer. All four lawsuits named the Company as a nominal defendant and were consolidated into a single action. All of the complaints and the resulting consolidated complaint refer to an April 27, 2010 The Wall Street Journal article and the subsequent governmental investigations. On February 13, 2012, the independent directors filed a motion to dismiss the complaint. On October 2, 2012, the Court entered an order granting the motion to dismiss and dismissing the complaint with prejudice. On November 1, 2012 the plaintiffs filed an appeal of the Courts ruling with the Kentucky Court of Appeals. Briefing to the Court of Appeals is underway.
As previously disclosed, a fifth derivative complaint involving Richard W. Carey was filed in U.S. District Court for the Western District of Kentucky. The lawsuit names the Company as a nominal defendant and is substantially duplicative of the derivative complaint pending in the Jefferson Circuit Court. The Court granted the defendants motion to stay the lawsuit pending further order of the Court.
Information regarding risk factors appears in our Form 10-K for the year ending December 31, 2012, under the heading Special Caution Regarding Forward Looking Statements and in the Form 10-K Part I, Item 1A. Risk Factors. There have been no material changes from the risk factors disclosed in our Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable
None
10.1
Forms of Stock Option Agreements and Restricted Stock Award Agreement pursuant to 2013 Stock and Incentive Compensation Plan.
31.1
Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certifications of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certifications of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101
Financial statements from the quarterly report on Form 10-Q of Almost Family, Inc. for the quarter ended March 31, 2013, filed on May 7, 2013, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Cash Flows, and (iv) the Notes to Condensed Consolidated Financial Statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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ALMOST FAMILY, INC. | |
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Date May 7, 2013 |
By: |
/s/ William B. Yarmuth |
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William B. Yarmuth |
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Chairman of the Board and |
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By: |
/s/ C. Steven Guenthner |
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C. Steven Guenthner |
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President and |
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Principal Financial Officer |