Almost Family, Inc. (Nasdaq:AFAM), a leading regional provider of
home health nursing and personal care services, announced today its
financial results for the quarter and full year ended December 30,
2016.
Twelve Month Accomplishments:
- Established the largest home health-hospital joint venture in
the nation on December 31, 2016 with Community Health System Inc.,
increasing our annual revenue run rate to $800 million.
- Arranged a total financing package of one-half billion dollars
with the completion of our $150 million equity offering in January
of 2017 and the expansion of our existing Credit Facility to $350
million.
- Achieved the first year of profitable results in our HealthCare
Innovations segment with annual revenues approaching $30
million.
- Formalized our commitment to implement point of care technology
in our VN segment over the course of 2017.
- Completed the integration of our 2015 and 2016
acquisitions.
Fourth Quarter Highlights (1):
- Net service revenues of approximately $153.4 million
- GAAP EPS of $0.35(2) per diluted share
- Adjusted EPS of $0.59(2)
- GAAP net income of $3.6 million
- Adjusted net income of $6.1 million
- Adjusted EBITDA of $13.0 million
- Net cash from operating activities of $9.3 million
Fiscal Year Highlights (1):
- Record Net service revenues of approximately $623.5
million
- GAAP EPS of $1.71(2) per diluted share
- Adjusted EPS of $2.38(2)
- GAAP net income of $17.7 million
- Adjusted net income of $24.6 million
- Adjusted EBITDA of $53.5 million
- Net cash from operating activities of $24.4 million
(1) See Non-GAAP Financial Measures starting on page 12(2) Note
that comparability of EPS between years is partially impacted by
changes in shares outstanding as explained further below
Management CommentsWilliam
Yarmuth, Chairman and Chief Executive Officer,
commented: “In addition to reporting record revenues
and continuing our growth trajectory, we are very pleased with the
significant strides our Company has made over the last twelve
months, foremost of which is our recent joint venture with
Community Health Systems. I am exceptionally pleased to
welcome all the employees of CHS Home Health and Hospice to our
growing family of care providers. Additionally, we view the
substantial expansion of capital through our new credit facility
and recent public offering as validation of our strategic direction
and recognition of the opportunities for the Company and our
industry.”
Steve Guenthner, President
added: “As a result of our financing activities and
strong operating cash flows, we have $200 million of capital
availability, positioning us to continue our trajectory as a
consolidator. We are very optimistic about our ability to
continue to source, negotiate, acquire and integrate quality
providers. Additionally, we plan to continue the solid
foundation of work we have built with Federal and State regulators
and policy makers helping them to understand how home health can be
a key part of their efforts to lower costs while improving quality
and patient satisfaction.”
Yarmuth concluded: “I am
particularly gratified by the progress we have made in our
HealthCare Innovations segment achieving profitability in only its
third full year of existence. Our Imperium ACO enablement
subsidiary is not only one of the largest but also one of the most
successful ACO management organizations in the U.S. As we
move forward into 2017, we will continue our efforts to innovate
and bring linkage between our HCI segment and our home health
operations. In closing, I would like to thank our more than
18,000 employees who come to work every day, ensuring our success
and making lives better through home care for the hundreds of
thousands of patients we serve every year.”
Fourth Quarter Financial ResultsVN
segment net revenues increased $2.0 million to $107.5 million from
$105.4 million in the prior year and total Medicare admissions grew
by 2.0% to 23,516 from 23,062. On a same-store basis, Medicare
episodic admissions outside of Florida grew by 4%, while Florida
grew 1%. VN segment contribution increased $0.8 million, or
6.0%, to $13.7 million, from $12.9 million in the prior year
period. Contribution margin as a percentage of revenue
increased from 12.3% to 12.7%.
PC segment net revenues increased $1.7 million or
4.3% to $40.3 million in 2016 from $38.6 million in 2015 primarily
due to acquisitions. PC segment contribution decreased $0.4
million as compared to the same period of last year, primarily due
to rate cuts in Ohio and Connecticut’s Medicaid-sponsored
behavioral health programs. The rates cuts more than offset
the earnings from acquisitions.
Healthcare Innovations (HCI) segment net revenues
increased $4.5 million to $5.7 million, in 2016 from $1.2 million
in 2015. As a result, operating income for the HCI segment
was $0.6 million.
Corporate expenses as a percentage of revenue
increased to 4.8%, from 4.3% in the prior year period. Deal,
transition and other costs were $4.4 million for 2016,
primarily as a result of costs related to acquisitions and the
commencement of our VN Segment’s company-wide clinical system
conversion to HomeCare HomeBase. Such implementation,
training and related costs began in the fourth quarter of 2016 and
are expected to continue throughout 2017. Borrowings related
to acquisitions increased interest expense to $1.4 million, from
$0.8 million in the prior year period.
Net cash from operating activities of $9.3 million
was generated in the fourth quarter of 2016. Home Health
accounts receivable days sales outstanding were 53 at the end of
the fourth quarter of 2016, as compared to 58 at the end of the
fourth quarter of 2015.
The effective tax rate for the fourth quarter of
2016 and 2015 was 34.2% and 43.0%, respectively, primarily due to
certain non-deductible deal and transaction costs in 2015.
Increased shares outstanding reduced Adjusted EPS of $0.59 for the
fourth quarter of 2016 by $0.02 without which it would have been
$0.61.
Fiscal Financial ResultsVN segment
net revenues increased $35.1 million to a record $436.1 million
from $401.1 million in the prior year period and total Medicare
admissions grew by 4.0% to 95,487 from 91,823. On a
same-store basis, Medicare episodic admissions outside of Florida
grew organically by 4% while Florida was down 2%. VN segment
contribution increased $6.7 million, or 13.4%, to $56.6 million,
from $49.9 million in the same period last year. Contribution
margin as a percentage of revenue increased to 13.0% from
12.4%.
PC segment net revenues increased $33.7 million or
26.4% to a record $161.4 million in 2016 from $127.7 million in
2015 primarily due to acquisitions. PC segment contribution
decreased 4.7% or $0.7 million due to rate cuts in certain skilled
elements of the Connecticut and Ohio Medicaid programs that more
than offset earnings from acquisitions.
HCI segment net revenues increased $22.6 million to
a record $26.0 million in 2016 from $3.5 million in 2015, as
acquired LTS and Ingenios assessment business revenues were $20.6
million with the remainder due to higher shared savings revenue as
multiple Imperium served ACOs received Medicare shared savings
payments. LTS was acquired in January 2016 and Ingenios was
acquired in July 2015. The HCI segment contribution thus
improved $6.9 million, as the segment was profitable for fiscal
2016.
Corporate expenses as a percentage of revenue
declined to 4.6%, from 4.9% in the prior year period. Deal,
transition and other costs grew to $11.8 million for 2016,
primarily as a result of costs related to acquisitions, while the
prior year included a one-time $4.2 million benefit related to
legal settlements. Borrowings related to acquisitions
increased interest expense to $5.8 million, from $2.3 million
2015.
Net cash from operating activities of $24.4 million
was generated in 2016, up $3.2 million from the $21.2 million
generated in 2015.
The effective tax rate for 2016 and 2015 was 38.4%
and 34.5%, respectively. Increased shares outstanding reduced
Adjusted EPS of $2.38 for 2016 by $0.15 without which it would have
been $2.53.
The Company noted that it will continue to pursue
quality acquisitions of in-home health care service providers
consistent with its stated strategy and the types of services its
segments currently provide.
Acquisition of the Home Health and Hospice
Assets of Community Health Systems, Inc.On Saturday,
December 31, 2016 (the first day of the Company’s 2017 fiscal
year), the Company completed its acquisition of a controlling
interest in the entity holding the home health and hospice assets
of Community Health Systems, Inc. for $128.0 million, subject to a
working capital adjustment. The Company expects the
transaction will add approximately $200 million in revenue, all of
which will be classified in the Company’s VN segment. The
transaction expands the Company’s geographic service territory to a
total of 26 states. The Company funded the acquisition
purchase price in a deposit on Friday, December 30, 2016 (the last
day of the Company’s 2016 fiscal year).
Financing ActivitiesOn December 5,
2016 the Company announced the expansion of its credit facility
from $175 million to $350 million. All of its existing bank
group upsized their positions and Capital One was added to the
group.
On January, 25, 2017, the Company completed a
public offering of 3.5 million shares of its common stock for gross
proceeds in excess of $150 million. The net proceeds of $144
million were applied to the Company’s revolving credit facility,
which increased credit available under the Facility from
approximately $78.6 million at December 30, 2016 to approximately
$204.1 million after the offering.
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands, except per share
data) |
(UNAUDITED) |
|
|
|
Three months ended |
|
Fiscal Year |
|
|
December 30, 2016 |
|
January 1, 2016 |
|
|
2016 |
|
|
|
2015 |
|
Net service
revenues |
|
$ |
153,427 |
|
|
$ |
145,217 |
|
|
$ |
623,541 |
|
|
$ |
532,214 |
|
Cost of service
revenues (excluding depreciation & amortization) |
|
|
83,475 |
|
|
|
77,696 |
|
|
|
335,472 |
|
|
|
281,842 |
|
Gross margin |
|
|
69,952 |
|
|
|
67,521 |
|
|
|
288,069 |
|
|
|
250,372 |
|
General and
administrative expenses: |
|
|
|
|
|
|
|
|
Salaries
and benefits |
|
|
42,222 |
|
|
|
38,856 |
|
|
|
168,356 |
|
|
|
147,849 |
|
Other |
|
|
16,615 |
|
|
|
18,241 |
|
|
|
72,939 |
|
|
|
66,000 |
|
Deal,
transition & other costs |
|
|
4,387 |
|
|
|
4,835 |
|
|
|
11,842 |
|
|
|
4,139 |
|
Total
general and administrative expenses |
|
|
63,224 |
|
|
|
61,932 |
|
|
|
253,137 |
|
|
|
217,988 |
|
Operating income |
|
|
6,728 |
|
|
|
5,589 |
|
|
|
34,932 |
|
|
|
32,384 |
|
Interest
expense, net |
|
|
(1,442 |
) |
|
|
(823 |
) |
|
|
(5,776 |
) |
|
|
(2,287 |
) |
Income before income
taxes |
|
|
5,286 |
|
|
|
4,766 |
|
|
|
29,156 |
|
|
|
30,097 |
|
Income
tax expense |
|
|
(1,864 |
) |
|
|
(2,097 |
) |
|
|
(10,984 |
) |
|
|
(10,556 |
) |
Net income |
|
|
3,422 |
|
|
|
2,669 |
|
|
|
18,172 |
|
|
|
19,541 |
|
Net loss
(gain) - noncontrolling interests |
|
|
170 |
|
|
|
137 |
|
|
|
(519 |
) |
|
|
468 |
|
Net income attributable
to Almost Family, Inc. |
|
$ |
3,592 |
|
|
$ |
2,806 |
|
|
$ |
17,653 |
|
|
$ |
20,009 |
|
|
|
|
|
|
|
|
|
|
Per share
amounts-basic: |
|
|
|
|
|
|
|
|
Average
shares outstanding |
|
|
10,162 |
|
|
|
9,775 |
|
|
|
10,153 |
|
|
|
9,505 |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
|
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
1.74 |
|
|
$ |
2.11 |
|
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
|
Average
shares outstanding |
|
|
10,330 |
|
|
|
10,000 |
|
|
|
10,346 |
|
|
|
9,745 |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
|
$ |
0.35 |
|
|
$ |
0.28 |
|
|
$ |
1.71 |
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
December 30, 2016 |
|
January 1, 2016 |
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
10,110 |
|
|
$ |
7,522 |
|
Accounts
receivable - net |
|
|
99,212 |
|
|
|
92,270 |
|
Prepaid
expenses and other current assets |
|
|
11,432 |
|
|
|
9,672 |
|
TOTAL
CURRENT ASSETS |
|
|
120,754 |
|
|
|
109,464 |
|
PROPERTY AND EQUIPMENT
- NET |
|
|
10,732 |
|
|
|
10,000 |
|
GOODWILL |
|
|
305,476 |
|
|
|
277,061 |
|
OTHER INTANGIBLE ASSETS
- NET |
|
|
85,063 |
|
|
|
64,629 |
|
TRANSACTION
DEPOSIT |
|
|
128,930 |
|
|
|
— |
|
OTHER ASSETS |
|
|
7,757 |
|
|
|
3,615 |
|
TOTAL ASSETS |
|
$ |
658,712 |
|
|
$ |
464,769 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
12,122 |
|
|
$ |
12,297 |
|
Accrued
other liabilities |
|
|
39,728 |
|
|
|
42,524 |
|
TOTAL
CURRENT LIABILITIES |
|
|
51,850 |
|
|
|
54,821 |
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
Revolving
credit facility |
|
|
262,456 |
|
|
|
113,790 |
|
Deferred
tax liabilities |
|
|
21,145 |
|
|
|
13,094 |
|
Seller
notes |
|
|
12,500 |
|
|
|
6,556 |
|
Other
liabilities |
|
|
6,581 |
|
|
|
2,608 |
|
TOTAL
LONG-TERM LIABILITIES |
|
|
302,682 |
|
|
|
136,048 |
|
TOTAL LIABILITIES |
|
|
354,532 |
|
|
|
190,869 |
|
|
|
|
|
|
|
|
NONCONTROLLING INTEREST
- REDEEMABLE - |
|
|
|
|
|
|
HEALTHCARE INNOVATIONS |
|
|
2,256 |
|
|
|
3,639 |
|
|
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
|
Preferred
stock, par value $0.05; authorized 2,000 shares; none issued or
outstanding |
|
|
— |
|
|
|
— |
|
Common
stock, par value $0.10; authorized 25,000; 10,504 and 10,125 issued
and outstanding |
|
|
1,051 |
|
|
|
1,013 |
|
Treasury
stock, at cost, 117 and 103 shares |
|
|
(3,258 |
) |
|
|
(2,731 |
) |
Additional paid-in capital |
|
|
141,233 |
|
|
|
127,253 |
|
Retained
earnings |
|
|
163,763 |
|
|
|
145,456 |
|
Almost
Family, Inc. stockholders' equity |
|
|
302,789 |
|
|
|
270,991 |
|
Noncontrolling interest - nonredeemable |
|
|
(865 |
) |
|
|
(730 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
|
|
301,924 |
|
|
|
270,261 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
658,712 |
|
|
$ |
464,769 |
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
Fiscal Year |
|
|
2016 |
|
|
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
Net
income |
$ |
18,172 |
|
|
$ |
19,541 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
4,445 |
|
|
|
3,927 |
|
Provision
for uncollectible accounts |
|
11,708 |
|
|
|
12,743 |
|
Stock-based compensation |
|
2,760 |
|
|
|
2,121 |
|
Loan
costs amortization |
|
336 |
|
|
|
281 |
|
Deferred
income taxes |
|
8,725 |
|
|
|
3,914 |
|
|
|
46,146 |
|
|
|
42,527 |
|
Change in certain net
assets and liabilities, net of the effects of acquisitions: |
|
|
|
Accounts
receivable |
|
(18,701 |
) |
|
|
(17,393 |
) |
Prepaid
expenses and other current assets |
|
(377 |
) |
|
|
2,402 |
|
Other
assets |
|
(1,215 |
) |
|
|
(585 |
) |
Accounts
payable and accrued expenses |
|
(1,410 |
) |
|
|
(5,745 |
) |
Net cash provided by
operating activities |
|
24,443 |
|
|
|
21,206 |
|
|
|
|
|
Cash flows of investing
activities: |
|
|
|
Capital
expenditures |
|
(6,206 |
) |
|
|
(3,117 |
) |
Cost
basis investment |
|
- |
|
|
|
(1,000 |
) |
Transaction deposit |
|
(128,930 |
) |
|
|
- |
|
Acquisitions, net of cash acquired |
|
(31,486 |
) |
|
|
(82,578 |
) |
Net cash used in
investing activities |
|
(166,622 |
) |
|
|
(86,695 |
) |
|
|
|
|
Cash flows of financing
activities: |
|
|
|
Credit
facility borrowings |
|
389,328 |
|
|
|
233,425 |
|
Credit
facility repayments |
|
(240,662 |
) |
|
|
(166,082 |
) |
Debt
issuance fees |
|
(3,900 |
) |
|
|
(1,161 |
) |
Proceeds
from stock option exercises |
|
230 |
|
|
|
128 |
|
Purchase
of common stock in connection with share awards |
|
(527 |
) |
|
|
(338 |
) |
Tax
impact of share awards |
|
353 |
|
|
|
215 |
|
Payment
of special dividend in connection with share awards |
|
- |
|
|
|
(50 |
) |
Principal
payments on notes payable and capital leases |
|
(55 |
) |
|
|
(12 |
) |
Net cash provided by
financing activities |
|
144,767 |
|
|
|
66,125 |
|
|
|
|
|
Net change in cash and
cash equivalents |
|
2,588 |
|
|
|
636 |
|
Cash and cash
equivalents at beginning of period |
|
7,522 |
|
|
|
6,886 |
|
Cash and cash
equivalents at end of period |
$ |
10,110 |
|
|
$ |
7,522 |
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
RESULTS OF OPERATIONS |
(UNAUDITED) |
(In thousands) |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
December 30, 2016 |
|
January 1, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Home Health
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
service revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visiting
Nurse |
|
$ |
107,450 |
|
|
72.7 |
% |
|
$ |
105,424 |
|
|
73.2 |
% |
|
$ |
2,026 |
|
|
1.9 |
% |
|
Personal
Care |
|
|
40,293 |
|
|
27.3 |
% |
|
|
38,626 |
|
|
26.8 |
% |
|
|
1,667 |
|
|
4.3 |
% |
|
|
|
|
147,743 |
|
|
100.0 |
% |
|
|
144,050 |
|
|
100.0 |
% |
|
|
3,693 |
|
|
2.6 |
% |
|
Operating
income before corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visiting
Nurse |
|
|
13,695 |
|
|
12.7 |
% |
|
|
12,916 |
|
|
12.3 |
% |
|
|
779 |
|
|
6.0 |
% |
|
Personal
Care |
|
|
4,239 |
|
|
10.5 |
% |
|
|
4,600 |
|
|
11.9 |
% |
|
|
(361 |
) |
|
-7.8 |
% |
|
|
|
|
17,934 |
|
|
12.1 |
% |
|
|
17,516 |
|
|
12.2 |
% |
|
|
418 |
|
|
2.4 |
% |
|
Healthcare Innovations
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
5,684 |
|
|
100.0 |
% |
|
|
1,167 |
|
|
100.0 |
% |
|
|
4,517 |
|
|
387.1 |
% |
|
Operating
income (loss) |
|
|
559 |
|
|
9.8 |
% |
|
|
(783 |
) |
|
-67.1 |
% |
|
|
1,342 |
|
|
-171.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
7,378 |
|
|
4.8 |
% |
|
|
6,309 |
|
|
4.3 |
% |
|
|
1,069 |
|
|
16.9 |
% |
|
Deal, transition and
other costs |
|
|
4,387 |
|
|
2.9 |
% |
|
|
4,835 |
|
|
3.3 |
% |
|
|
(448 |
) |
|
-9.3 |
% |
|
Operating income |
|
|
6,728 |
|
|
4.4 |
% |
|
|
5,589 |
|
|
3.8 |
% |
|
|
1,139 |
|
|
20.4 |
% |
|
Interest expense,
net |
|
|
(1,442 |
) |
|
-0.9 |
% |
|
|
(823 |
) |
|
-0.6 |
% |
|
|
(619 |
) |
|
75.2 |
% |
|
Income tax expense |
|
|
(1,864 |
) |
|
-1.2 |
% |
|
|
(2,097 |
) |
|
-1.4 |
% |
|
|
233 |
|
|
-11.1 |
% |
|
Net income |
|
$ |
3,422 |
|
|
2.2 |
% |
|
$ |
2,669 |
|
|
1.8 |
% |
|
$ |
753 |
|
|
28.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
13,029 |
|
|
8.5 |
% |
|
$ |
12,028 |
|
|
8.3 |
% |
|
$ |
1,001 |
|
|
8.3 |
% |
|
Adjusted net income
(1) |
|
$ |
6,115 |
|
|
4.0 |
% |
|
$ |
5,803 |
|
|
4.0 |
% |
|
$ |
311 |
|
|
5.4 |
% |
|
(1) See Non-GAAP Financial Measures starting on page 12.
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Home Health
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
service revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visiting
Nurse |
|
$ |
436,147 |
|
|
73.0 |
% |
|
$ |
401,051 |
|
|
75.8 |
% |
|
$ |
35,096 |
|
|
8.8 |
% |
|
Personal
Care |
|
|
161,367 |
|
|
27.0 |
% |
|
|
127,712 |
|
|
24.2 |
% |
|
|
33,655 |
|
|
26.4 |
% |
|
|
|
|
597,514 |
|
|
100.0 |
% |
|
|
528,763 |
|
|
100.0 |
% |
|
|
68,751 |
|
|
13.0 |
% |
|
Operating income before corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visiting
Nurse |
|
|
56,574 |
|
|
13.0 |
% |
|
|
49,872 |
|
|
12.4 |
% |
|
|
6,702 |
|
|
13.4 |
% |
|
Personal
Care |
|
|
13,509 |
|
|
8.4 |
% |
|
|
14,170 |
|
|
11.1 |
% |
|
|
(661 |
) |
|
-4.7 |
% |
|
|
|
|
70,083 |
|
|
11.7 |
% |
|
|
64,042 |
|
|
12.1 |
% |
|
|
6,041 |
|
|
9.4 |
% |
|
Healthcare Innovations
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
26,027 |
|
|
100.0 |
% |
|
|
3,451 |
|
|
100.0 |
% |
|
|
22,576 |
|
|
654.2 |
% |
|
Operating
income (loss) |
|
|
5,657 |
|
|
21.7 |
% |
|
|
(1,217 |
) |
|
-35.3 |
% |
|
|
6,874 |
|
|
564.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
28,966 |
|
|
4.6 |
% |
|
|
26,302 |
|
|
4.9 |
% |
|
|
2,664 |
|
|
10.1 |
% |
|
Deal, transition and
other costs |
|
|
11,842 |
|
|
1.9 |
% |
|
|
4,139 |
|
|
0.8 |
% |
|
|
7,703 |
|
|
186.1 |
% |
|
Operating income |
|
|
34,932 |
|
|
5.6 |
% |
|
|
32,384 |
|
|
6.1 |
% |
|
|
2,548 |
|
|
7.9 |
% |
|
Interest expense,
net |
|
|
(5,776 |
) |
|
-0.9 |
% |
|
|
(2,287 |
) |
|
-0.4 |
% |
|
|
(3,489 |
) |
|
152.6 |
% |
|
Income tax expense |
|
|
(10,984 |
) |
|
-1.8 |
% |
|
|
(10,556 |
) |
|
-2.0 |
% |
|
|
(428 |
) |
|
4.1 |
% |
|
Net income |
|
$ |
18,172 |
|
|
2.9 |
% |
|
$ |
19,541 |
|
|
3.7 |
% |
|
$ |
(1,369 |
) |
|
-7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
53,515 |
|
|
8.6 |
% |
|
$ |
42,571 |
|
|
8.0 |
% |
|
$ |
10,944 |
|
|
25.7 |
% |
|
Adjusted net income
(1) |
|
$ |
24,640 |
|
|
4.0 |
% |
|
$ |
20,746 |
|
|
3.9 |
% |
|
$ |
3,894 |
|
|
18.8 |
% |
|
(1) See Non-GAAP Financial Measures starting on page 12.
VISITING NURSE SEGMENT OPERATING
METRICS |
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
December 30, 2016 |
|
January 1, 2016 |
|
Change |
|
|
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Average number of
locations |
|
|
169 |
|
|
|
|
|
165 |
|
|
|
|
|
4 |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient
months |
|
|
87,091 |
|
|
|
|
|
90,354 |
|
|
|
|
|
(3,263 |
) |
|
-3.6 |
% |
|
Admissions |
|
|
25,946 |
|
|
|
|
|
26,423 |
|
|
|
|
|
(477 |
) |
|
-1.8 |
% |
|
Billable
visits |
|
|
686,982 |
|
|
|
|
|
694,783 |
|
|
|
|
|
(7,801 |
) |
|
-1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
23,516 |
|
|
91 |
% |
|
|
23,062 |
|
|
87 |
% |
|
|
454 |
|
|
2.0 |
% |
|
Revenue
(in thousands) |
|
$ |
101,798 |
|
|
95 |
% |
|
$ |
96,897 |
|
|
92 |
% |
|
$ |
4,901 |
|
|
5.1 |
% |
|
Revenue
per admission |
|
$ |
4,329 |
|
|
|
|
$ |
4,202 |
|
|
|
|
$ |
127 |
|
|
3.0 |
% |
|
Billable
visits |
|
|
616,077 |
|
|
90 |
% |
|
|
614,182 |
|
|
88 |
% |
|
|
1,895 |
|
|
0.3 |
% |
|
Recertifications |
|
|
12,906 |
|
|
|
|
|
12,804 |
|
|
|
|
|
102 |
|
|
0.8 |
% |
|
Payor mix
% of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Medicare Episodic |
|
|
83.6 |
% |
|
|
|
|
83.2 |
% |
|
|
|
|
0.4 |
% |
|
|
|
Replacement Plans Paid Episodically |
|
|
6.3 |
% |
|
|
|
|
4.4 |
% |
|
|
|
|
1.9 |
% |
|
|
|
Replacement Plans Paid Per Visit |
|
|
10.1 |
% |
|
|
|
|
12.4 |
% |
|
|
|
|
-2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
2,430 |
|
|
9 |
% |
|
|
3,361 |
|
|
13 |
% |
|
|
(931 |
) |
|
-27.7 |
% |
|
Revenue
(in thousands) |
|
$ |
5,652 |
|
|
5 |
% |
|
$ |
8,527 |
|
|
8 |
% |
|
$ |
(2,875 |
) |
|
-33.7 |
% |
|
Revenue
per admission |
|
$ |
2,326 |
|
|
|
|
$ |
2,537 |
|
|
|
|
$ |
(211 |
) |
|
-8.3 |
% |
|
Billable
visits |
|
|
70,905 |
|
|
10 |
% |
|
|
80,601 |
|
|
12 |
% |
|
|
(9,696 |
) |
|
-12.0 |
% |
|
Recertifications |
|
|
1,594 |
|
|
|
|
|
1,310 |
|
|
|
|
|
284 |
|
|
21.7 |
% |
|
Payor mix
% of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicaid
& other governmental |
|
|
22.3 |
% |
|
|
|
|
30.1 |
% |
|
|
|
|
-7.8 |
% |
|
|
|
Private
payors |
|
|
77.7 |
% |
|
|
|
|
69.9 |
% |
|
|
|
|
7.8 |
% |
|
|
|
PERSONAL CARE SEGMENT OPERATING
METRICS |
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
December 30, 2016 |
|
January 1, 2016 |
|
Change |
|
|
|
Amount |
|
|
|
Amount |
|
|
|
Amount |
|
% |
|
Average number of
locations |
|
|
79 |
|
|
|
|
73 |
|
|
|
|
6 |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
1,996 |
|
|
|
|
2,076 |
|
|
|
|
(80 |
) |
|
-3.9 |
% |
|
Patient months of
care |
|
|
43,615 |
|
|
|
|
36,605 |
|
|
|
|
7,010 |
|
|
19.2 |
% |
|
Billable hours |
|
|
1,866,311 |
|
|
|
|
1,757,886 |
|
|
|
|
108,425 |
|
|
6.2 |
% |
|
Revenue per billable
hour |
|
$ |
21.59 |
|
|
|
$ |
21.97 |
|
|
|
$ |
(0.38 |
) |
|
-1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISITING NURSE SEGMENT OPERATING
METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Change |
|
|
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Average number of
locations |
|
|
166 |
|
|
|
|
|
163 |
|
|
|
|
|
3 |
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient
months |
|
|
357,971 |
|
|
|
|
|
333,343 |
|
|
|
|
|
24,628 |
|
|
7.4 |
% |
|
Admissions |
|
|
107,520 |
|
|
|
|
|
102,381 |
|
|
|
|
|
5,139 |
|
|
5.0 |
% |
|
Billable
visits |
|
|
2,861,962 |
|
|
|
|
|
2,621,443 |
|
|
|
|
|
240,519 |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
95,487 |
|
|
89 |
% |
|
|
91,823 |
|
|
90 |
% |
|
|
3,664 |
|
|
4.0 |
% |
|
Revenue
(in thousands) |
|
$ |
414,814 |
|
|
95 |
% |
|
$ |
377,724 |
|
|
94 |
% |
|
$ |
37,090 |
|
|
9.8 |
% |
|
Revenue
per admission |
|
$ |
4,344 |
|
|
|
|
$ |
4,114 |
|
|
|
|
$ |
231 |
|
|
5.6 |
% |
|
Billable
visits |
|
|
2,537,873 |
|
|
89 |
% |
|
|
2,364,404 |
|
|
90 |
% |
|
|
173,469 |
|
|
7.3 |
% |
|
Recertifications |
|
|
51,731 |
|
|
|
|
|
48,743 |
|
|
|
|
|
2,988 |
|
|
6.1 |
% |
|
Payor mix
% of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Medicare Episodic |
|
|
82.8 |
% |
|
|
|
|
83.3 |
% |
|
|
|
|
-0.5 |
% |
|
|
|
Replacement Plans Paid Episodically |
|
|
5.5 |
% |
|
|
|
|
4.1 |
% |
|
|
|
|
1.4 |
% |
|
|
|
Replacement Plans Paid Per Visit |
|
|
11.7 |
% |
|
|
|
|
12.6 |
% |
|
|
|
|
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Medicare: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
12,033 |
|
|
11 |
% |
|
|
10,558 |
|
|
10 |
% |
|
|
1,475 |
|
|
14.0 |
% |
|
Revenue
(in thousands) |
|
$ |
21,333 |
|
|
5 |
% |
|
$ |
23,327 |
|
|
6 |
% |
|
$ |
(1,994 |
) |
|
-8.5 |
% |
|
Revenue
per admission |
|
$ |
1,773 |
|
|
|
|
$ |
2,209 |
|
|
|
|
$ |
(437 |
) |
|
-19.8 |
% |
|
Billable
visits |
|
|
324,089 |
|
|
11 |
% |
|
|
257,039 |
|
|
10 |
% |
|
|
67,050 |
|
|
26.1 |
% |
|
Recertifications |
|
|
4,063 |
|
|
|
|
|
2,329 |
|
|
|
|
|
1,734 |
|
|
74.5 |
% |
|
Payor mix
% of Admissions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicaid
& other governmental |
|
|
37.8 |
% |
|
|
|
|
30.6 |
% |
|
|
|
|
7.2 |
% |
|
|
|
Private
payors |
|
|
62.2 |
% |
|
|
|
|
69.4 |
% |
|
|
|
|
-7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERSONAL CARE OPERATING METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Change |
|
|
|
Amount |
|
|
|
Amount |
|
|
|
Amount |
|
% |
|
Average number of
locations |
|
|
75 |
|
|
|
|
65 |
|
|
|
|
10 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
9,671 |
|
|
|
|
6,879 |
|
|
|
|
2,792 |
|
|
40.6 |
% |
|
Patient months of
care |
|
|
165,995 |
|
|
|
|
108,512 |
|
|
|
|
57,483 |
|
|
53.0 |
% |
|
Billable hours |
|
|
7,441,565 |
|
|
|
|
5,747,214 |
|
|
|
|
1,694,351 |
|
|
29.5 |
% |
|
Revenue per billable
hour |
|
$ |
21.68 |
|
|
|
$ |
22.22 |
|
|
|
$ |
(0.54 |
) |
|
-2.4 |
% |
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL
DATA |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
December 30, 2016 |
|
January 1, 2016 |
|
|
Change |
|
|
|
Amount |
|
Amount |
|
|
Amount |
|
% |
|
In-home
Assessments |
|
|
19,641 |
|
|
|
3,432 |
|
|
|
16,209 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare ACO enrollees
under management |
|
|
121,881 |
|
|
|
83,133 |
|
|
|
38,748 |
|
|
46.6 |
% |
|
ACOs under
contract |
|
|
15 |
|
|
|
11 |
|
|
|
4 |
|
|
36.4 |
% |
|
Assets |
|
$ |
60,159 |
|
|
$ |
22,024 |
|
|
$ |
38,135 |
|
|
173.2 |
% |
|
Liabilities |
|
$ |
15,735 |
|
|
$ |
(1,525 |
) |
|
$ |
17,260 |
|
|
NM |
|
|
Non-controlling
interest - redeemable |
|
$ |
2,256 |
|
|
$ |
3,639 |
|
|
$ |
(1,383 |
) |
|
-38.0 |
% |
|
Non-controlling
interest - nonredeemable |
|
$ |
(71 |
) |
|
$ |
(144 |
) |
|
$ |
73 |
|
|
-50.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
|
Change |
|
|
|
Amount |
|
Amount |
|
|
Amount |
|
% |
|
In-home
Assessments |
|
|
75,814 |
|
|
5,394 |
|
|
70,420 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare enrollees
under management |
|
|
121,881 |
|
|
83,133 |
|
|
38,748 |
|
46.6 |
% |
|
ACOs under
contract |
|
|
15 |
|
|
11 |
|
|
4 |
|
36.4 |
% |
|
Non-GAAP Financial MeasuresThe
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 Net Income and Adjusted Earnings
Per Share Adjusted net income and adjusted earnings per
share 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 net income and adjusted
earnings per share 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 table sets forth a reconciliation of
net income attributable to Almost Family, Inc. to adjusted net
income:
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
RECONCILIATION OF ADJUSTED NET INCOME AND
ADJUSTED EARNINGS PER SHARE |
(In thousands) |
|
|
|
Three Months Ended |
|
Fiscal Year |
|
(in thousands) |
|
December 30, 2016 |
|
January 1, 2016 |
|
2016 |
|
2015 |
|
Net income
attributable to Almost Family, Inc. |
|
$ |
3,592 |
|
$ |
2,806 |
|
$ |
17,653 |
|
$ |
20,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
2,523 |
|
|
2,997 |
|
|
6,987 |
|
|
737 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
6,115 |
|
$ |
5,803 |
|
$ |
24,640 |
|
$ |
20,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding |
|
|
10,330 |
|
|
10,000 |
|
|
10,346 |
|
|
9,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
0.35 |
|
$ |
0.28 |
|
$ |
1.71 |
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
0.24 |
|
|
0.30 |
|
|
0.68 |
|
|
0.08 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
0.59 |
|
$ |
0.58 |
|
$ |
2.38 |
|
$ |
2.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Adjusted earnings
before interest, income tax, depreciation and amortization,
amortization of stock-based compensation, deal, transition and
other (Adjusted EBTIDA) 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
Operations are significant components in understanding and
evaluating financial performance and liquidity. Management
routinely calculates and communicates Adjusted EBITDA 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 table sets forth a reconciliation of
net income to Adjusted EBITDA:
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
RECONCILIATION OF ADJUSTED
EBITDA |
(In thousands) |
|
|
|
Three Months Ended |
|
Fiscal Year |
|
(in thousands) |
|
December 30, 2016 |
|
January 1, 2016 |
|
2016 |
|
|
2015 |
|
Net income |
|
$ |
3,422 |
|
$ |
2,669 |
|
$ |
18,172 |
|
|
$ |
19,541 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
1,442 |
|
|
823 |
|
|
5,776 |
|
|
|
2,287 |
|
Income
tax expense |
|
|
1,864 |
|
|
2,097 |
|
|
10,984 |
|
|
|
10,556 |
|
Depreciation and amortization |
|
|
1,167 |
|
|
938 |
|
|
3,981 |
|
|
|
3,927 |
|
Stock-based compensation |
|
|
747 |
|
|
666 |
|
|
2,760 |
|
|
|
2,121 |
|
Deal,
transition and other costs |
|
|
4,387 |
|
|
4,835 |
|
|
11,842 |
|
|
|
4,139 |
|
Adjusted EBITDA |
|
$ |
13,029 |
|
$ |
12,028 |
|
$ |
53,515 |
|
|
$ |
42,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the federal securities laws,
including statements related to the offering and the expected use
of the net proceeds. These forward-looking statements are based on
current plans, expectations, projections, forecasts and assumptions
about future events that involve risks and uncertainties that could
cause actual outcomes and results to differ materially.
Forward-looking statements relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not
historical facts. In some cases, you can identify forward-looking
statements by the use of forward-looking terminology such as “may,”
“will,” “should,” “could,” “would,” “estimate,” “project,”
“forecast,” “intend,” “expect,” “plan,” “anticipate,” “believe,”
“target,” or similar terms, variations of those terms or the
negative of those terms. While forward-looking statements reflect
good faith beliefs, assumptions and expectations, they are not
guarantees of future performance, and the Company undertakes no
obligation to update or revise its forward-looking statements. The
forward-looking statements in this news release are based on a
variety of assumptions that may not be realized and that are
subject to significant risks and uncertainties, including that the
offering may not be completed. For a more complete discussion
regarding 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 January 1, 2016, in particular information
under the headings "Special Caution Regarding Forward-Looking
Statements" and “Risk Factors.”
About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a leading
national provider of home healthcare services, with 340 branch
locations in 26 states, following the completion of its joint
venture transaction with Community Health Systems, Inc. (CHS)
(NYSE:CYH). Almost Family, Inc. and its subsidiaries operate a
visiting nurse segment, a personal care segment and a HealthCare
Innovations segment.
Almost Family, Inc.
Steve Guenthner
(502) 891-1000
Community Health Systems (NYSE:CYH)
Historical Stock Chart
From Feb 2024 to Mar 2024
Community Health Systems (NYSE:CYH)
Historical Stock Chart
From Mar 2023 to Mar 2024