Attached files
| file | filename |
|---|---|
| 8-K - Q4 2014 EARNINGS - ALMOST FAMILY INC | q420148k.htm |
| EX-99.2 - SUPPLEMENTAL SEGMENT INFORMATION - ALMOST FAMILY INC | suppfin.htm |
| EX-99.3 - PURCHASE AGREEMENT RELEASE - ALMOST FAMILY INC | purchase.htm |
|
Almost Family, Inc.
Steve Guenthner
(502) 891-1000
FOR IMMEDIATE RELEASE
|
Exhibit 99.1
February 25, 2015
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Almost Family Reports Fourth Quarter and Full Year 2014 Results
Announces Agreement to Acquire WillCare in a Separate Release
Louisville, KY, February 25, 2015 – Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the three-months and year ended December 31, 2014. In a separate release today, the Company also announced an agreement to acquire the stock of WillCare which is the second largest acquisition in the Company’s history.
As previously announced the Company is now, for the first time, reporting operating results for its new HealthCare Innovations segment segregated from Home Health operating results. Home Health operating results include the Company’s historical Visiting Nurse and Personal Care segments and unallocated corporate expenses. Earnings from continuing operations are reconciled to the Home Health operating level to provide added visibility for investors.
Fourth Quarter Highlights:
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·
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Net service revenues of approximately $125 million
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·
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Net income attributable to Almost Family, Inc. of $4.7 million, $0.50 per diluted share
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·
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Adjusted earnings from home health operations (1) of $4.5 million, $0.47 per diluted share
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·
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Visiting Nurse segment net revenues of $95.7 million and record Personal Care segment revenues of $28.9 million
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·
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Acquired SunCrest home health operations incrementally added $0.18 to diluted EPS from continuing operations for the quarter
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·
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Same store efficiency gains improved diluted EPS by $0.04, partially offsetting the effects of Medicare rate cuts which reduced diluted EPS by $0.05
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Full Year Highlights:
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·
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Record net service revenues of $495.8 million
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·
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Net income attributable to Almost Family, Inc. of $13.8 million, $1.45 per diluted share
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·
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Adjusted earnings from home health operations (1) of $17.1 million, $1.81 per diluted share
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·
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Record net revenues in all three segments: $380.8 million for Visiting Nurse, $112.5 million for Personal Care, and $2.5 million for Healthcare Innovations
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·
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Acquired SunCrest home health operations added $0.81 to diluted EPS from continuing operations for the year
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·
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Transition completed for the largest acquisition in the Company’s history
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·
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Same store efficiency gains improved diluted EPS by $0.31, more than offset the effects of Medicare rate cuts which reduced diluted EPS by $0.21
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·
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Breakeven results for the Healthcare Innovations segment
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(1)
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See “Non-GAAP Financial Measures - Adjusted Earnings from Home Health Operations” on page 12
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WillCare Acquisition
In a separate release today, Almost Family announced that it has 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 (11), Connecticut (3) and Ohio (1). The purchase price is expected to be between $46 and $53 million based on changes in earnings and working capital between now and the expected close sometime in the second half of FY2015 subject to New York approval. With this acquisition, Almost Family will operate over 230 branches across 15 states and its annual net revenue run rate is expected to approach the $600 million mark. The Company is reporting and commenting on the Willcare acquisition in a separate simultaneously released statement to provide clarity to investors on both its earnings and the transaction separately.
Management Comments
William Yarmuth, Chairman and Chief Executive Officer, made the following comments: “We are extremely pleased to continue the momentum of our recent activities with today’s announcements. In addition to our solid 2014 financial performance we are thrilled to announce the second largest transaction in our history, the acquisition of WillCare on the heels of wrapping up our integration of the SunCrest acquisition. We are excited to have the opportunity to welcome the employees, patients and referral sources of WillCare into our growing family of home health providers.”
In recent releases the Company announced a $175 million expanded credit facility through 2020, a strategic investment in NavHealth a development stage health care technology company and the creation of its new “HealthCare Innovations” reporting segment to better highlight the value of its core home health operations separately from its innovation investments.
Steve Guenthner, President, added: “Our results for the year reflect not only the successful integration of our 2013 acquisitions but also some very nice improvements in organic volume growth and cost controls that helped us partially mitigate the effect of on-going Medicare rate cuts and continue to drive earnings growth. The expansion of ACO’s, increased focus on inpatient hospital readmission penalties, bundled-payment initiatives and state-level developments, including moves to Medicaid managed care all point to increasing demand for home health services. Additionally, our M&A track record and capital market and industry relationships continue to position us as a consolidator in home health.”
Yarmuth concluded: “To state the obvious, we are very optimistic about the future of home health care and Almost Family in particular. We feel the positive regulatory environment, successful integration of SunCrest, acquisition of WillCare, solid progress and relationships with
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 2
February 25, 2015
governmental policy makers, increased access to capital and our commitment to innovation should all combine to fuel great optimism for the future of Almost Family.”
Fourth Quarter Financial Results
Almost Family reported fourth quarter results that included a full quarter of operating results for the following acquisitions, as compared to results for the fourth quarter of 2013:
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The December 6, 2013 acquisition of SunCrest incrementally added $24.7 million to revenue ($21.1 million VN and $3.6 million PC) and $0.18 to diluted EPS from continuing operations, as compared to the same period in the prior year.
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The October 4, 2013 acquisition of a 61.5% interest in Imperium lowered diluted EPS from continuing operations by $0.01.
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A benefit from one-time deal, transition and other approximated $0.7 million ($0.04 per diluted share), as a $1.0 million insurance recovery of previously incurred defense costs more than offset deal costs, primarily related to WillCare.
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Improved cost controls, in particular tighter adherence to agency-level labor staffing standards, improved the efficiency of care delivery lowering labor costs on improving volumes improving diluted EPS by $0.04 as compared to the same quarter of last year.
Excluding acquired revenue, Medicare rate cuts from 2014’s rebasing reduced revenue and operating income by $0.9 million and diluted EPS from continuing operations by $0.05. VN segment Medicare admissions increased organically by 5.0%.
The effective tax rate for the fourth quarter of 2014 was 40.8% compared to 56.6% for the fourth quarter of 2013. The higher income tax rate in 2013 occurred primarily due to certain deal and transaction costs that were not currently deductible and that did not result in the establishment of a deferred tax asset. The Company currently anticipates a normalized effective tax rate of 40.5% and has used that rate in the presentation of income and diluted EPS from continuing operations.
Full Year Financial Results
Almost Family reported full year results that included a full twelve months of operating results for the following acquisitions, as compared to results for 2013:
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The December 6, 2013 acquisition of SunCrest incrementally added $127.5 million to revenue ($111.3 million VN and $16.2 million PC) and $0.83 to diluted EPS from continuing operations, as compared to the prior year.
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·
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Deal, transition and other costs approximated $5.3 million ($0.34 per diluted share) as transition and deal costs, primarily SunCrest, more than offset a $1.0 million insurance recovery of previously incurred defense costs.
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·
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The October 4, 2013 acquisition of a 61% interest in Imperium produced break even operating results.
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Improved cost controls, in particular tighter adherence to agency-level labor staffing standards, improved the efficiency of care delivery lowering labor costs on improved volumes improving diluted EPS by $0.31 as compared to last year.
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 3
February 25, 2015
Excluding acquired revenue, Medicare rate cuts in the VN segment, from 2014’s rebasing cuts and sequestration for episodes ending after March 31, 2013, reduced revenue and operating income by $3.3 million and diluted EPS from continuing operations by $0.21. VN segment Medicare admissions increased organically by 1.8%.
The effective tax rate for 2014 was 41.0% compared to 41.2% for 2013.
Reclassification of Segment Reporting
As previously announced the Company has updated its segment reporting to better help investors understand the performance of its core home health operations from its innovation activities. In addition certain portions of the Company’s home health operations previously reported in its Visiting Nurse Segment have been reclassified to its Personal Care Segment. These operations, which generated about $11 million in revenue in 2014, have been reclassified in line with changes in the way in which information is provided to the Company’s chief operating decision maker. Additionally, the Company believes that, due to their long-term and custodial nature and primary reimbursement source (Medicaid) presentation with the Personal Care Segment would be more meaningful to investors.
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 4
February 25, 2015
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CONSOLIDATED STATEMENTS OF INCOME
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(In thousands, except per share data)
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(UNAUDITED)
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Three Months Ended
December 31,
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Twelve Months Ended December 31,
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|||||||||||||||
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2014
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2013
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2014
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2013
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|||||||||||||
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Net revenues
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$ | 124,756 | $ | 96,587 | $ | 495,829 | $ | 356,912 | ||||||||
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Cost of service revenues (excluding
depreciation & amortization)
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66,390 | 51,580 | 263,994 | 190,548 | ||||||||||||
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Gross margin
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58,366 | 45,007 | 231,835 | 166,364 | ||||||||||||
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General and administrative expenses:
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Salaries and benefits
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35,750 | 27,743 | 141,359 | 102,498 | ||||||||||||
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Other
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15,366 | 12,644 | 60,522 | 44,750 | ||||||||||||
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Deal, transition and other
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(701 | ) | 3,336 | 5,312 | 4,323 | |||||||||||
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Total general and administrative expenses
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50,415 | 43,723 | 207,193 | 151,571 | ||||||||||||
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Operating income
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7,951 | 1,284 | 24,642 | 14,793 | ||||||||||||
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Interest expense, net
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(362 | ) | (127 | ) | (1,435 | ) | (167 | ) | ||||||||
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Income before income taxes
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7,589 | 1,157 | 23,207 | 14,626 | ||||||||||||
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Income tax expense
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(3,266 | ) | (756 | ) | (9,511 | ) | (6,020 | ) | ||||||||
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Net income from continuing operations
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4,323 | 401 | 13,696 | 8,606 | ||||||||||||
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Discontinued operations:
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Loss from operations, net
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of tax of ($5), ($17), ($121) and $882
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- | (254 | ) | (172 | ) | (729 | ) | |||||||||
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Gain on sale, net of tax of $973
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- | 3 | - | 171 | ||||||||||||
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Loss on discontinued operations
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- | (251 | ) | (172 | ) | (558 | ) | |||||||||
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Net income
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4,323 | 150 | 13,524 | 8,048 | ||||||||||||
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Net income - noncontrolling interests
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424 | 178 | 239 | 178 | ||||||||||||
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Net income attributable to Almost Family, Inc.
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$ | 4,747 | $ | 328 | $ | 13,763 | $ | 8,226 | ||||||||
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Per share amounts-basic:
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Average shares outstanding
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9,352 | 9,308 | 9,333 | 9,279 | ||||||||||||
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Income from continuing operations attributable to Almost Family, Inc.
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$ | 0.51 | $ | 0.06 | $ | 1.49 | $ | 0.95 | ||||||||
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Discontinued operations
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- | (0.03 | ) | (0.02 | ) | (0.06 | ) | |||||||||
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Net income attributable to Almost Family, Inc.
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$ | 0.51 | $ | 0.03 | $ | 1.47 | $ | 0.89 | ||||||||
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Per share amounts-diluted:
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Average shares outstanding
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9,474 | 9,401 | 9,462 | 9,374 | ||||||||||||
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Income from continuing operations attributable to Almost Family, Inc.
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$ | 0.50 | $ | 0.06 | $ | 1.47 | $ | 0.94 | ||||||||
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Discontinued operations
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- | (0.03 | ) | (0.02 | ) | (0.06 | ) | |||||||||
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Net income attributable to Almost Family, Inc.
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$ | 0.50 | $ | 0.03 | $ | 1.45 | $ | 0.88 | ||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 5
February 25, 2015
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ALMOST FAMILY, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(In thousands)
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||||||||
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December 31, 2014
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ASSETS
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(UNAUDITED)
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December 31, 2013
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 6,886 | $ | 12,246 | ||||
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Accounts receivable - net
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74,894 | 59,902 | ||||||
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Prepaid expenses and other current assets
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10,420 | 9,854 | ||||||
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Deferred tax assets
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12,772 | 12,881 | ||||||
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TOTAL CURRENT ASSETS
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104,972 | 94,883 | ||||||
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PROPERTY AND EQUIPMENT - NET
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5,575 | 8,120 | ||||||
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GOODWILL
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192,523 | 192,489 | ||||||
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OTHER INTANGIBLE ASSETS
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54,402 | 53,174 | ||||||
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OTHER ASSETS
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558 | 775 | ||||||
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TOTAL ASSETS
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$ | 358,030 | $ | 349,441 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$ | 9,257 | $ | 12,057 | ||||
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Accrued other liabilities
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42,326 | 42,496 | ||||||
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Current portion - notes payable and capital leases
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51 | 702 | ||||||
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TOTAL CURRENT LIABILITIES
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51,634 | 55,255 | ||||||
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LONG-TERM LIABILITIES:
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Revolving credit facility
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46,447 | 56,000 | ||||||
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Deferred tax liabilities
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24,052 | 18,661 | ||||||
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Other
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2,705 | 1,815 | ||||||
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TOTAL LONG-TERM LIABILITIES
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73,204 | 76,476 | ||||||
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TOTAL LIABILITIES
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124,838 | 131,731 | ||||||
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NONCONTROLLING INTEREST - REDEEMABLE -
HEALTHCARE INNOVATIONS
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3,639 | 3,639 | ||||||
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STOCKHOLDERS' EQUITY:
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Preferred stock, par value $0.05; authorized
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2,000 shares; none issued or outstanding
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- | - | ||||||
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Common stock, par value $0.10; authorized
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25,000; 9,574 and 9,500
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issued and outstanding
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957 | 950 | ||||||
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Treasury stock, at cost, 94 and 92 shares of common stock
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(2,393 | ) | (2,340 | ) | ||||
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Additional paid-in capital
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105,863 | 103,858 | ||||||
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Noncontrolling interest - nonredeemable
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(420 | ) | (186 | ) | ||||
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Retained earnings
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125,546 | 111,789 | ||||||
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TOTAL STOCKHOLDERS' EQUITY
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229,553 | 214,071 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 358,030 | $ | 349,441 | ||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 6
February 25, 2015
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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(In thousands)
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Twelve months Ended December 31,
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2014
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2013
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Cash flows of operating activities:
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Net income
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$ | 13,524 | $ | 8,048 | ||||
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Loss on discontinued operations, net of tax
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(172 | ) | (558 | ) | ||||
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Net income from continuing operations
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13,696 | 8,606 | ||||||
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Adjustments to reconcile income to net cash of operating activities:
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Depreciation and amortization
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4,103 | 2,862 | ||||||
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Provision for uncollectible accounts
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9,413 | 5,378 | ||||||
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Stock-based compensation
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1,814 | 1,465 | ||||||
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Deferred income taxes
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5,500 | 2,099 | ||||||
| 34,526 | 20,410 | |||||||
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Change in certain net assets and liabilities, net of the effects of acquisitions:
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Accounts receivable
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(24,824 | ) | (4,440 | ) | ||||
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Prepaid expenses and other current assets
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(824 | ) | 4,229 | |||||
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Other assets
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215 | 235 | ||||||
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Accounts payable and accrued expenses
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(2,431 | ) | (888 | ) | ||||
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Net cash provided by operating activities
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6,662 | 19,546 | ||||||
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Cash flows of investing activities:
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Capital expenditures
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(1,232 | ) | (2,502 | ) | ||||
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Acquisitions, net of cash acquired
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(969 | ) | (88,465 | ) | ||||
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Net cash used in investing activities
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(2,201 | ) | (90,967 | ) | ||||
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Cash flows of financing activities:
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Credit facility repayments, net
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(9,553 | ) | 56,000 | |||||
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Proceeds from stock options exercises
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156 | 11 | ||||||
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Purchase of common stock in connection with share awards
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(52 | ) | (20 | ) | ||||
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Tax impact of share awards
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40 | (62 | ) | |||||
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Payment of special dividend in connection with share awards
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(35 | ) | - | |||||
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Principal payments on notes payable and capital leases
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(702 | ) | (720 | ) | ||||
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Net cash (used in) provided by financing activities
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(10,146 | ) | 55,209 | |||||
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Cash flows from discontinued operations
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Operating activities
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323 | (742 | ) | |||||
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Investing activities
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2 | 3,080 | ||||||
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Net cash provided by discontinued operations
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325 | 2,338 | ||||||
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Net change in cash and cash equivalents
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(5,360 | ) | (13,874 | ) | ||||
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Cash and cash equivalents at beginning of period
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12,246 | 26,120 | ||||||
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Cash and cash equivalents at end of period
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$ | 6,886 | $ | 12,246 | ||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 7
February 25, 2015
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RESULTS OF OPERATIONS
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(UNAUDITED)
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(In thousands)
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Three Months Ended December 31,
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2014
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2013
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Change
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Amount
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% Rev
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Amount
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% Rev
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Amount
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%
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Home Health Operations
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Net service revenues:
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Visiting Nurse
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$ | 95,724 | 76.8 | % | $ | 72,055 | 74.8 | % | $ | 23,669 | 32.8 | % | ||||||||||||
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Personal Care
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28,850 | 23.2 | % | 24,336 | 25.2 | % | 4,514 | 18.5 | % | |||||||||||||||
| 124,574 | 100.0 | % | 96,391 | 100.0 | % | 28,183 | 29.2 | % | ||||||||||||||||
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Operating income before corporate expenses:
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Visiting Nurse
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11,703 | 12.2 | % | 8,142 | 11.3 | % | 3,561 | 43.7 | % | |||||||||||||||
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Personal Care
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3,268 | 11.3 | % | 2,688 | 11.0 | % | 580 | 21.6 | % | |||||||||||||||
| 14,971 | 12.0 | % | 10,830 | 11.2 | % | 4,141 | 38.2 | % | ||||||||||||||||
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Healthcare Innovations
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Revenue
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182 | 196 | (14 | ) | -7.1 | % | ||||||||||||||||||
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Operating income before
noncontrolling interest
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(408 | ) | -224.2 | % | (482 | ) | -245.9 | % | 74 | -15.4 | % | |||||||||||||
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Corporate expenses
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7,313 | 5.9 | % | 5,728 | 5.9 | % | 1,585 | 27.7 | % | |||||||||||||||
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Deal and transition costs
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(701 | ) | -0.6 | % | 3,336 | 3.5 | % | (4,037 | ) | -121.0 | % | |||||||||||||
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Operating income
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7,951 | 6.4 | % | 1,284 | 1.3 | % | 6,667 | 519.2 | % | |||||||||||||||
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Interest expense, net
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(362 | ) | -0.3 | % | (127 | ) | -0.1 | % | (235 | ) | 185.0 | % | ||||||||||||
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Income tax expense
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(3,266 | ) | -2.6 | % | (756 | ) | -0.8 | % | (2,510 | ) | 332.0 | % | ||||||||||||
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Net income from continuing operations
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$ | 4,323 | 3.5 | % | $ | 401 | 0.4 | % | $ | 3,922 | 978.1 | % | ||||||||||||
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Adjusted EBITDA from home health operations
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$ | 9,148 | 7.3 | % | $ | 6,477 | 6.7 | % | $ | 2,671 | 41.2 | % | ||||||||||||
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Adjusted earnings from home health operations
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$ | 4,479 | 3.6 | % | $ | 2,740 | 2.8 | % | $ | 1,739 | 63.5 | % | ||||||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 8
February 25, 2015
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ALMOST FAMILY, INC. AND SUBSIDIARIES
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RESULTS OF OPERATIONS
|
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(UNAUDITED)
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(In thousands)
|
||||||||||||||||||||||||
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Twelve months Ended December 31,
|
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2014
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2013
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Change
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Amount
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% Rev
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Amount
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% Rev
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Amount
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%
|
|||||||||||||||||||
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Home Health Operations
|
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Net service revenues:
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Visiting Nurse
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$ | 380,788 | 77.2 | % | $ | 263,789 | 73.9 | % | $ | 116,999 | 44.4 | % | ||||||||||||
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Personal Care
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112,497 | 22.8 | % | 92,927 | 26.1 | % | 19,570 | 21.1 | % | |||||||||||||||
| 493,285 | 100.0 | % | 356,716 | 100.0 | % | 136,569 | 38.3 | % | ||||||||||||||||
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Operating income before corporate expenses:
|
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Visiting Nurse
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46,224 | 12.1 | % | 29,533 | 11.2 | % | 16,691 | 56.5 | % | |||||||||||||||
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Personal Care
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12,968 | 11.5 | % | 11,599 | 12.5 | % | 1,369 | 11.8 | % | |||||||||||||||
| 59,192 | 12.0 | % | 41,132 | 11.5 | % | 18,060 | 43.9 | % | ||||||||||||||||
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Healthcare Innovations
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Revenue
|
2,544 | 196 | 2,348 | 1198.0 | % | |||||||||||||||||||
|
Operating income before
noncontrolling interest
|
(13 | ) | -0.5 | % | (482 | ) | -245.9 | % | 469 | -97.3 | % | |||||||||||||
|
Corporate expenses
|
29,225 | 5.9 | % | 21,534 | 6.0 | % | 7,691 | 35.7 | % | |||||||||||||||
|
Deal and transition costs
|
5,312 | 1.1 | % | 4,323 | 1.2 | % | 989 | 22.9 | % | |||||||||||||||
|
Operating income
|
24,642 | 5.0 | % | 14,793 | 4.1 | % | 9,849 | 66.6 | % | |||||||||||||||
|
Interest expense, net
|
(1,435 | ) | -0.3 | % | (167 | ) | 0.0 | % | (1,268 | ) | 759.3 | % | ||||||||||||
|
Income tax expense
|
(9,511 | ) | -1.9 | % | (6,020 | ) | -1.7 | % | (3,491 | ) | 58.0 | % | ||||||||||||
|
Net income from continuing operations
|
$ | 13,696 | 2.8 | % | $ | 8,606 | 2.4 | % | $ | 5,090 | 59.1 | % | ||||||||||||
|
Adjusted EBITDA from home health operations
|
35,775 | 7.2 | % | 24,017 | 6.7 | % | 11,758 | 49.0 | % | |||||||||||||||
|
Adjusted earnings from home health operations
|
$ | 17,100 | 3.4 | % | $ | 11,533 | 3.2 | % | $ | 5,568 | 48.3 | % | ||||||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 9
February 25, 2015
|
VISITING NURSE SEGMENT OPERATING METRICS
|
||||||||||||||||||||||||||||
|
Three Months Ended December 31,
|
||||||||||||||||||||||||||||
|
2014
|
2013
|
Change
|
||||||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||||||
|
Average number of locations
|
160 | 130 | 30 | 23.1 | % | |||||||||||||||||||||||
|
All payors:
|
||||||||||||||||||||||||||||
|
Patient months
|
80,232 | 58,949 | 21,283 | 36.1 | % | |||||||||||||||||||||||
|
Admissions
|
24,612 | 17,489 | 7,123 | 40.7 | % | |||||||||||||||||||||||
|
Billable visits
|
631,145 | 480,727 | 150,418 | 31.3 | % | |||||||||||||||||||||||
|
Medicare:
|
||||||||||||||||||||||||||||
|
Admissions
|
21,782 | 88.5 | % | 15,292 | 87.4 | % | 6,490 | 42.4 | % | |||||||||||||||||||
|
Revenue (in thousands)
|
$ | 90,446 | 94.5 | % | $ | 68,676 | 95.3 | % | $ | 21,770 | 31.7 | % | ||||||||||||||||
|
Revenue per admission
|
4,152 | 4,491 | $ | (339 | ) | -7.5 | % | |||||||||||||||||||||
|
Billable visits
|
566,868 | 89.8 | % | 446,618 | 92.9 | % | 120,250 | 26.9 | % | |||||||||||||||||||
|
Recertifications
|
11,913 | 9,258 | 2,655 | 28.7 | % | |||||||||||||||||||||||
|
Payor mix % of Admissions
|
||||||||||||||||||||||||||||
|
Traditional Medicare Episodic
|
84.2 | % | 92.1 | % | -7.9 | % | ||||||||||||||||||||||
|
Replacement Plans Paid Episodically
|
3.3 | % | 2.9 | % | 0.4 | % | ||||||||||||||||||||||
|
Replacement Plans Paid Per Visit
|
12.5 | % | 5.0 | % | 7.5 | % | ||||||||||||||||||||||
|
Non-Medicare:
|
||||||||||||||||||||||||||||
|
Admissions
|
2,830 | 11.5 | % | 2,197 | 12.6 | % | 633 | 28.8 | % | |||||||||||||||||||
|
Revenue (in thousands)
|
$ | 5,278 | 5.5 | % | $ | 3,379 | 4.7 | % | $ | 1,899 | 56.2 | % | ||||||||||||||||
|
Revenue per admission
|
1,865 | 1,538 | $ | 327 | 21.3 | % | ||||||||||||||||||||||
|
Billable visits
|
64,277 | 10.2 | % | 34,109 | 7.1 | % | 30,168 | 88.4 | % | |||||||||||||||||||
|
Recertifications
|
499 | 403 | 96 | 23.8 | % | |||||||||||||||||||||||
|
Payor mix % of Admissions
|
||||||||||||||||||||||||||||
|
Medicaid & other governmental
|
25.6 | % | 17.7 | % | 7.9 | % | ||||||||||||||||||||||
|
Private payors
|
74.4 | % | 82.3 | % | -7.9 | % | ||||||||||||||||||||||
|
PERSONAL CARE OPERATING METRICS
|
||||||||||||||||||||||||||||
|
Three Months Ended December 31,
|
||||||||||||||||||||||||||||
| 2014 | 2013 |
Change
|
||||||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||||||
|
Average number of locations
|
61 | 62 | (1 | ) | -1.6 | % | ||||||||||||||||||||||
|
Admissions
|
1,619 | 1,204 | 415 | 34.5 | % | |||||||||||||||||||||||
|
Patient months of care
|
22,858 | 20,439 | 2,419 | 11.8 | % | |||||||||||||||||||||||
|
Billable hours
|
1,315,575 | 1230409.46 | 1,230,409 | 85,166 | 6.9 | % | ||||||||||||||||||||||
|
Revenue per billable hour
|
$ | 21.93 | $ | 19.78 | $ | 2.15 | 10.9 | % | ||||||||||||||||||||
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA
|
||||||||||||||||||||||||||||
|
Three Months Ended December 31,
|
||||||||||||||||||||||||||||
| 2014 | 2013 |
Change
|
||||||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||||||
|
Medicare enrollees under management
|
53,901 | 28,735 | 25,166 | 87.6 | % | |||||||||||||||||||||||
|
ACOs under contract
|
7 | 3 | 4 | 133.3 | % | |||||||||||||||||||||||
|
Net income - noncontrolling interest
|
(156 | ) | (186 | ) | 30 | -16.1 | % | |||||||||||||||||||||
|
Assets
|
9,287 | 9,642 | (355 | ) | -3.7 | % | ||||||||||||||||||||||
|
Liabilities
|
180 | 645 | (465 | ) | -72.1 | % | ||||||||||||||||||||||
|
Non-controlling interest - redeemable
|
3,639 | 3,639 | - | 0.0 | % | |||||||||||||||||||||||
|
Non-controlling interest - nonredeemable
|
(5 | ) | (186 | ) | 181 | -97.3 | % | |||||||||||||||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 10
February 25, 2015
|
VISITING NURSE SEGMENT OPERATING METRICS
|
||||||||||||||||||||||||
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||||
|
2014
|
2013
|
Change
|
||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||
|
Average number of locations
|
167 | 111 | 56 | 50.5 | % | |||||||||||||||||||
|
All payors:
|
||||||||||||||||||||||||
|
Patient months
|
319,430 | 214,279 | 105,151 | 49.1 | % | |||||||||||||||||||
|
Admissions
|
98,634 | 64,304 | 34,330 | 53.4 | % | |||||||||||||||||||
|
Billable visits
|
2,507,067 | 1,759,864 | 747,203 | 42.5 | % | |||||||||||||||||||
|
Medicare:
|
||||||||||||||||||||||||
|
Admissions
|
87,650 | 88.9 | % | 58,441 | 90.9 | % | 29,209 | 50.0 | % | |||||||||||||||
|
Revenue (in thousands)
|
$ | 357,144 | 93.8 | % | $ | 254,012 | 96.3 | % | $ | 103,132 | 40.6 | % | ||||||||||||
|
Revenue per admission
|
4,075 | 4,346 | $ | (272 | ) | -6.3 | % | |||||||||||||||||
|
Billable visits
|
2,259,896 | 90.1 | % | 1,668,346 | 94.8 | % | 591,550 | 35.5 | % | |||||||||||||||
|
Recertifications
|
47,875 | 33,597 | 14,278 | 42.5 | % | |||||||||||||||||||
|
Payor mix % of Admissions
|
||||||||||||||||||||||||
|
Traditional Medicare Episodic
|
84.0 | % | 91.9 | % | -7.9 | % | ||||||||||||||||||
|
Replacement Plans Paid Episodically
|
3.4 | % | 2.6 | % | 0.8 | % | ||||||||||||||||||
|
Replacement Plans Paid Per Visit
|
12.7 | % | 5.5 | % | 7.2 | % | ||||||||||||||||||
|
Non-Medicare:
|
||||||||||||||||||||||||
|
Admissions
|
10,984 | 11.1 | % | 5,863 | 9.1 | % | 5,121 | 87.3 | % | |||||||||||||||
|
Revenue (in thousands)
|
$ | 23,644 | 6.2 | % | $ | 9,777 | 3.7 | % | $ | 13,867 | 141.8 | % | ||||||||||||
|
Revenue per admission
|
2,153 | 1,668 | $ | 485 | 29.1 | % | ||||||||||||||||||
|
Billable visits
|
247,171 | 9.9 | % | 91,518 | 5.2 | % | 155,653 | 170.1 | % | |||||||||||||||
|
Recertifications
|
1,865 | 1,230 | 635 | 51.6 | % | |||||||||||||||||||
|
Payor mix % of Admissions
|
||||||||||||||||||||||||
|
Medicaid & other governmental
|
23.3 | % | 24.1 | % | -0.8 | % | ||||||||||||||||||
|
Private payors
|
76.7 | % | 75.9 | % | 0.8 | % | ||||||||||||||||||
|
PERSONAL CARE OPERATING METRICS
|
||||||||||||||||||||||||
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||||
| 2014 | 2013 |
Change
|
||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||
|
Average number of locations
|
61 | 61 | - | 0.0 | % | |||||||||||||||||||
|
Admissions
|
6,458 | 4,723 | 1,735 | 36.7 | % | |||||||||||||||||||
|
Patient months of care
|
89,880 | 80,045 | 9,835 | 12.3 | % | |||||||||||||||||||
|
Billable hours
|
5,304,089 | 4,682,590 | 621,499 | 13.3 | % | |||||||||||||||||||
|
Revenue per billable hour
|
$ | 21.21 | $ | 19.85 | $ | 1.36 | 6.9 | % | ||||||||||||||||
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA
|
||||||||||||||||||||||||
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||||
| 2014 | 2013 |
Change
|
||||||||||||||||||||||
|
Amount
|
Amount
|
Amount
|
%
|
|||||||||||||||||||||
|
Medicare enrollees under management
|
53,901 | 28,735 | 25,166 | 87.6 | % | |||||||||||||||||||
|
ACOs under contract
|
7 | 3 | 4 | 133.3 | % | |||||||||||||||||||
|
Net income - noncontrolling interest
|
(5 | ) | (186 | ) | 181 | -97.3 | % | |||||||||||||||||
|
Assets
|
9,287 | 9,642 | (355 | ) | -3.7 | % | ||||||||||||||||||
|
Liabilities
|
180 | 645 | (465 | ) | -72.1 | % | ||||||||||||||||||
|
Non-controlling interest - redeemable
|
3,639 | 3,639 | - | 0.0 | % | |||||||||||||||||||
|
Non-controlling interest - nonredeemable
|
(5 | ) | (186 | ) | 181 | -97.3 | % | |||||||||||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 11
February 25, 2015
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:
|
RECONCILIATION OF ADJUSTED EARNINGS
|
||||||||||||||||
|
FROM HOME HEALTH OPERATIONS
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Three Months Ended
December 31,
|
Twelve months Ended
December 31,
|
|||||||||||||||
|
(in thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
Net income attributable to Almost Family, Inc.
|
$ | 4,747 | $ | 328 | $ | 13,763 | $ | 8,226 | ||||||||
|
Addbacks:
|
||||||||||||||||
|
Deal, transition and other, net of tax
|
(417 | ) | 1,985 | 3,160 | 2,572 | |||||||||||
|
Loss on discontinued operations, net of tax
|
- | 251 | 172 | 558 | ||||||||||||
|
Adjusted earnings
|
4,330 | 2,564 | 17,095 | 11,356 | ||||||||||||
|
Healthcare Innovation operating loss after NCI, net of tax
|
149 | 176 | 5 | 176 | ||||||||||||
|
Adjusted earnings from home health operations
|
$ | 4,479 | $ | 2,740 | $ | 17,100 | $ | 11,533 | ||||||||
|
Per share amounts-diluted:
|
||||||||||||||||
|
Average shares outstanding
|
9,474 | 9,401 | 9,462 | 9,374 | ||||||||||||
|
Net income attributable to Almost Family, Inc.
|
$ | 0.50 | $ | 0.03 | $ | 1.45 | $ | 0.88 | ||||||||
|
Addbacks:
|
||||||||||||||||
|
Deal, transition and other, net of tax
|
(0.04 | ) | 0.21 | 0.34 | 0.27 | |||||||||||
|
Loss on discontinued operations, net of tax
|
- | 0.03 | 0.02 | 0.06 | ||||||||||||
|
Adjusted earnings
|
0.46 | 0.27 | 1.81 | 1.21 | ||||||||||||
|
Healthcare Innovation operating loss after NCI, net of tax
|
0.01 | 0.02 | 0.00 | 0.02 | ||||||||||||
|
Adjusted earnings from home health operations
|
$ | 0.47 | $ | 0.29 | $ | 1.81 | $ | 1.23 | ||||||||
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 12
February 25, 2015
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 innovation 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:
|
RECONCILIATION OF ADJUSTED EBITDA
|
||||||||||||||||
|
FROM HOME HEALTH OPERATIONS
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Three Months Ended
December 31,
|
Twelve months Ended
December 31,
|
|||||||||||||||
|
(in thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
Net income from continuing operations
|
$ | 4,323 | $ | 401 | $ | 13,696 | $ | 8,606 | ||||||||
|
Add back:
|
||||||||||||||||
|
Interest expense
|
362 | 127 | 1,435 | 167 | ||||||||||||
|
Income tax expense
|
3,266 | 756 | 9,511 | 6,020 | ||||||||||||
|
Depreciation and amortization
|
938 | 857 | 4,103 | 2,862 | ||||||||||||
|
Stock-based compensation from home health operations
|
478 | 426 | 1,814 | 1,465 | ||||||||||||
|
Deal and transition costs
|
(701 | ) | 3,336 | 5,312 | 4,323 | |||||||||||
|
Adjusted EBITDA
|
8,666 | 5,903 | 35,871 | 23,443 | ||||||||||||
|
Healthcare Innovation operating loss
|
482 | 574 | (96 | ) | 574 | |||||||||||
|
Adjusted EBITDA from home health operations
|
$ | 9,148 | $ | 6,477 | $ | 35,775 | $ | 24,017 | ||||||||
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.
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 13
February 25, 2015
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; 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, 2013, in particular information under the headings “Special Caution Regarding Forward-Looking Statements” and “Risk Factors.” With regard to the Company’s investments in its HealthCare Innovations segment, there can be no assurance that its operational and developmental objectives will be realized or that any savings in healthcare spending or any future participation in Medicare Shared Savings Program payments will be realized. The Company undertakes no obligation to update or revise its forward-looking statements.