Almost Family, Inc. (NASDAQ:AFAM), a leading national provider of
home health and related services, announced today its financial
results for the quarter ended March 31, 2017.
First Quarter Highlights
(1):
- Record net service revenues of approximately $201.3 million
including the first quarter of operations of the CHS-JV (see
below), up 31% from the first quarter of 2016
- GAAP net income of $3.6 million
- GAAP EPS of $0.28(2) per diluted share
- Adjusted net income of $7.1(1) million
- Adjusted EPS of $0.55(1, 2). Excluding the effect of the
January 2017 equity sale, Adjusted EPS would have been $0.68(1,
2)
- Adjusted EBITDA of $16.6 million
- Net cash from operating activities of $7.0 million
- As of May 9, 2017 the Company has completed conversion of 32
home health branches to the new HomeCare-HomeBase information
system and currently expects to complete conversion of the
remaining branches before the end of 2017
- See Non-GAAP Financial Measures below
- Note that comparability of EPS between years is partially
impacted by changes in shares outstanding as explained further
below
Management
CommentsWilliam Yarmuth, Chairman and CEO,
commented: “We are exceptionally pleased to report
strong operating results for our first quarter. Our
transition efforts are well underway and we are seeing very nice
performance in the JV operations. We’re also demonstrating
strong organic growth in our legacy home health operations, with
4.5% episodic admission growth overall, the best we’ve seen in some
time. The earnings power of our business is especially
evident when viewed in terms of adjusted net income which increased
by almost one-third. While our personal care business
presents some near-term opportunities for improvement, the JV’s
hospice operations are contributing nicely. As we proceed
into the remainder of 2017 with an exceptionally strong balance
sheet, we’ll work to complete our transition efforts and improve
our organic growth rates even further, while also increasing our
focus on M&A and other business development opportunities.”
Steve Guenthner, President
added: “We completed our recent equity offering
primarily to enable us to continue as a leading consolidator in the
home health space. We have a very active development pipeline
that includes not only traditional “bolt-on” acquisition
opportunities but also reflects heightened interest from health
systems for additional joint ventures. Meanwhile, on the
regulatory front, we’re pleased with developments at the Federal
level that seem to indicate a more business-friendly approach to
new laws and regulations while also continuing to acknowledge the
critical and growing role home health services play in the
evolution of the US healthcare delivery system. This
continues to be a receptive environment in which we can
aggressively put capital to work and we’ll continue our efforts to
do so.”
Yarmuth concluded: “I
want to express my sincere appreciation to the continued commitment
and dedication of all our employees and in particular welcome and
thank the newest members of our team, those of the CHS-JV, for
their patience and hard work as they complete the transition from
CHS to Almost Family.”
First Quarter Financial Results (See
Matters Impacting Comparability and Presentation
below)
Home Health segment net revenues increased by
38% or $41.7 million to $151.2 million from $109.4 million in the
prior year and episodic admissions grew by 44.8% to 31,290 from
21,612 primarily due to the CHS-JV acquisition. Net revenue
and episodic admissions in the CHS-JV were $42.9 million and 8,731,
respectively. Excluding the CHS-JV, episodic admissions grew
by approximately 4.5%, including growth in Florida of 2.8% while
episodic admits in the CHS-JV grew 4.2% over the prior year.
Home Health segment contribution increased $4.8
million, or 32.2%, to $19.9 million, from $15.0 million in the
prior year period. Home Health contribution margins as a
percentage of revenue decreased slightly from 13.7% to 13.2%
primarily due to the combined effect of a 1% Medicare rate cut and
an annual cost of living wage rate adjustment of 2% both effective
January 1, 2017.
Other Home-Based Services (OHBS) segment net
revenues increased $5.7 million or 14.3% to $45.6 million in 2017
from $39.9 million primarily as a result of the 15 hospice
facilities acquired in the CHS-JV transaction. Hospice
revenues were $7.0 million for the quarter including $6.7 million
in the CHS-JV. Personal care revenues were down $1.1 million
or 2.9% from prior year on lower volumes. Additionally, rate
cuts and increases in wages influenced by increases in statutory
minimum wage rates in certain states negatively impacted personal
care margins. OHBS segment contribution increased $0.1
million as compared to the same period of last year.
Healthcare Innovations (HCI) segment net
revenues increased $0.2 million to $4.6 million in 2017 from $4.4
million in 2016, while operating losses as percent of revenue
declined to 7.5% from 15.3% in 2016. HCI segment first
quarter assessment revenues are traditionally lower than the other
quarters due to the seasonal nature of Medicare Advantage plan
customers.
Corporate expenses as a percentage of revenue
decreased to 4.5% from 5.0% in the prior year period primarily due
to a larger base of business. Deal, transition and other
costs were $7.2 million, primarily as a result of the CHS-JV
acquisition and the first-full quarter conversion of the HH Segment
to the HomeCare-HomeBase information system. System
conversion, implementation, training and related costs are expected
to continue throughout 2017. Borrowings related to
acquisitions increased interest expense to $1.9 million, from $1.3
million in the prior year period.
Net cash from operating activities of $7.0
million was generated in the first quarter of 2017. Accounts
receivable days sales outstanding were 57 at the end of the first
quarter of 2017, as compared to 56 days last year and 53 days at
the end of the fourth quarter of 2016. Variations in days
outstanding are largely attributable to delayed regulatory
processing from asset acquisitions and the timing of Medicare
claims processing.
The effective tax rate for the first quarter of
2017 and 2016 was 17.6% and 40.5%, respectively. The
Company’s lower effective income tax rate for the first quarter of
2017 was due to a change in accounting rules for excess tax
benefits from the exercise of stock options and vesting of
restricted shares as a result of the prospective adoption of
Accounting Standards Update 2016-09 as of the first day of fiscal
2017. Under previous accounting rules these benefits were
recorded in “additional paid-in capital” rather than in the current
period tax provision. Future periods with option exercises or
restricted stock vesting could lower or raise the Company’s tax
provision in those periods. Excluding this item, the Company
expects its effective tax rate for 2017 to be 39.5%.
Increased average shares outstanding from the
Company’s late January sale of common shares reduced Adjusted EPS
of $0.55 for the first quarter of 2017 by $0.13.
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.
Matters Impacting Comparability and
Presentation – CHS-JV and Segment Presentation
On the first day of 2017, the Company acquired
an 80% controlling interest in the entity holding the home health
and hospice assets of Community Health Systems, Inc. (NYSE:CYH)
(“CHS-JV”). Community Health Systems, Inc. ("CHS"), one of
the largest publicly-traded hospital companies in the United States
and a leading operator of general acute care hospitals in
communities across the country, retained the remaining 20%.
With the completion of this transaction, the Company now operates
340 branches across 26 states including 15 hospice agencies across
7 states.
In the first quarter in 2017, the Company
redefined its reporting segments to include a) Home Health (HH)
formerly Visiting Nurse, b) Other Home-Based Services (OHBS) which
includes all other home care services outside of Home Health
services and c) the Healthcare Innovations (HCI) segment. The
OHBS segment consists of the historical Personal Care (“Personal
Care” or “PC”) operations plus hospice services. Prior year
segment information has been reclassified to conform to its new
segment definitions. In management’s opinion, this approach
provides investors clarity for the largest segment, Home Health,
and best aligns with the Company’s internal decision-making
processes as viewed by the chief operating decision maker.
Financing Activities
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
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Unaudited)(In thousands,
except per share data) |
|
|
|
|
|
|
Quarter ended |
|
|
March 31, 2017 |
|
April 1, 2016 |
|
Net service
revenues |
$ |
201,312 |
|
|
$ |
153,698 |
|
|
Cost of service
revenues (excluding depreciation & amortization) |
|
106,268 |
|
|
|
82,232 |
|
|
Gross margin |
|
95,044 |
|
|
|
71,466 |
|
|
General and
administrative expenses: |
|
|
|
|
Salaries
and benefits |
|
56,033 |
|
|
|
41,676 |
|
|
Other |
|
24,716 |
|
|
|
19,445 |
|
|
Deal,
transition & other costs |
|
7,231 |
|
|
|
2,609 |
|
|
Total
general and administrative expenses |
|
87,980 |
|
|
|
63,730 |
|
|
Operating income |
|
7,064 |
|
|
|
7,736 |
|
|
Interest
expense, net |
|
(1,897 |
) |
|
|
(1,332 |
) |
|
Income before
noncontrolling interests and income taxes |
|
5,167 |
|
|
|
6,404 |
|
|
Net loss
(gain) - noncontrolling interests |
|
(760 |
) |
|
|
190 |
|
|
Income before income
tax expense |
|
4,407 |
|
|
|
6,594 |
|
|
Income
tax expense |
|
(774 |
) |
|
|
(2,677 |
) |
|
Net income attributable
to Almost Family, Inc. |
$ |
3,633 |
|
|
$ |
3,917 |
|
|
|
|
|
|
|
Per share
amounts-basic: |
|
|
|
|
Average
shares outstanding |
|
12,695 |
|
|
|
10,089 |
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.29 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
Average
shares outstanding |
|
12,937 |
|
|
|
10,260 |
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.28 |
|
|
$ |
0.38 |
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands) |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
March 31, 2017 |
|
December 30, 2016 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
13,891 |
|
|
$ |
10,110 |
|
|
Accounts
receivable - net |
|
|
126,205 |
|
|
|
99,212 |
|
|
Prepaid
expenses and other current assets |
|
|
13,054 |
|
|
|
11,432 |
|
|
TOTAL
CURRENT ASSETS |
|
|
153,150 |
|
|
|
120,754 |
|
|
PROPERTY AND EQUIPMENT
- NET |
|
|
13,598 |
|
|
|
10,732 |
|
|
GOODWILL |
|
|
427,868 |
|
|
|
305,476 |
|
|
OTHER INTANGIBLE ASSETS
- NET |
|
|
113,387 |
|
|
|
85,063 |
|
|
TRANSACTION
DEPOSIT |
|
|
— |
|
|
|
128,930 |
|
|
OTHER ASSETS |
|
|
8,274 |
|
|
|
7,757 |
|
|
TOTAL ASSETS |
|
$ |
716,277 |
|
|
$ |
658,712 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
15,665 |
|
|
$ |
12,122 |
|
|
Accrued
other liabilities |
|
|
57,006 |
|
|
|
39,728 |
|
|
TOTAL
CURRENT LIABILITIES |
|
|
72,671 |
|
|
|
51,850 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
|
Revolving
credit facility |
|
|
117,226 |
|
|
|
262,456 |
|
|
Deferred
tax liabilities |
|
|
22,604 |
|
|
|
21,145 |
|
|
Seller
notes |
|
|
12,500 |
|
|
|
12,500 |
|
|
Other
liabilities |
|
|
6,851 |
|
|
|
6,581 |
|
|
TOTAL
LONG-TERM LIABILITIES |
|
|
159,181 |
|
|
|
302,682 |
|
|
TOTAL LIABILITIES |
|
|
231,852 |
|
|
|
354,532 |
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING INTEREST
- REDEEMABLE - |
|
|
|
|
|
|
|
HEALTHCARE INNOVATIONS |
|
|
2,256 |
|
|
|
2,256 |
|
|
|
|
|
|
|
|
|
|
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; 13,938 and 10,504 issued
and outstanding |
|
|
1,410 |
|
|
|
1,051 |
|
|
Treasury
stock, at cost, 160 and 117 shares |
|
|
(5,293 |
) |
|
|
(3,258 |
) |
|
Additional paid-in capital |
|
|
286,666 |
|
|
|
141,233 |
|
|
Retained
earnings |
|
|
167,287 |
|
|
|
163,763 |
|
|
Almost
Family, Inc. stockholders' equity |
|
|
450,070 |
|
|
|
302,789 |
|
|
Noncontrolling interests - nonredeemable |
|
|
32,099 |
|
|
|
(865 |
) |
|
TOTAL STOCKHOLDERS’
EQUITY |
|
|
482,169 |
|
|
|
301,924 |
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
716,277 |
|
|
$ |
658,712 |
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(In
thousands) |
|
|
|
|
|
Quarter ended |
|
March 31, 2017 |
|
April 1, 2016 |
Cash flows from
operating activities: |
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
3,633 |
|
|
$ |
3,917 |
|
Net
(gain) loss attributable to noncontrolling interests |
|
(760 |
) |
|
|
190 |
|
Income
before non-controlling interests |
|
4,393 |
|
|
|
3,727 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
1,533 |
|
|
|
985 |
|
Provision
for uncollectible accounts |
|
3,564 |
|
|
|
3,845 |
|
Stock-based compensation |
|
767 |
|
|
|
717 |
|
Loan
costs amortization |
|
250 |
|
|
|
65 |
|
Deferred
income taxes |
|
1,458 |
|
|
|
2,166 |
|
|
|
11,965 |
|
|
|
11,505 |
|
Change in certain net
assets and liabilities, net of the effects of acquisitions: |
|
|
|
Accounts
receivable |
|
(9,536 |
) |
|
|
(3,571 |
) |
Prepaid
expenses and other current assets |
|
(1,009 |
) |
|
|
(257 |
) |
Other
assets |
|
(721 |
) |
|
|
(334 |
) |
Accounts
payable and accrued expenses |
|
6,332 |
|
|
|
(1,735 |
) |
Net cash provided by
operating activities |
|
7,031 |
|
|
|
5,608 |
|
|
|
|
|
Cash flows of investing
activities: |
|
|
|
Capital
expenditures |
|
(895 |
) |
|
|
(969 |
) |
Transaction deposit |
|
128,930 |
|
|
|
- |
|
Acquisitions, net of cash acquired |
|
(129,144 |
) |
|
|
(24,229 |
) |
Net cash used in
investing activities |
|
(1,109 |
) |
|
|
(25,198 |
) |
|
|
|
|
Cash flows of financing
activities: |
|
|
|
Credit
facility borrowings |
|
55,276 |
|
|
|
78,011 |
|
Credit
facility repayments, net |
|
(200,461 |
) |
|
|
(58,626 |
) |
Proceeds
from stock offering, net |
|
143,937 |
|
|
|
- |
|
Proceeds
from stock option exercises |
|
1,143 |
|
|
|
- |
|
Purchase
of common stock in connection with share awards |
|
(2,036 |
) |
|
|
(396 |
) |
Tax
impact of share awards |
|
- |
|
|
|
214 |
|
Net cash (used in)
provided by financing activities |
|
(2,141 |
) |
|
|
19,203 |
|
|
|
|
|
Net change in cash and
cash equivalents |
|
3,781 |
|
|
|
(387 |
) |
Cash and cash
equivalents at beginning of period |
|
10,110 |
|
|
|
7,522 |
|
Cash and cash
equivalents at end of period |
$ |
13,891 |
|
|
$ |
7,135 |
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESRESULTS OF
OPERATIONS(Unaudited)(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
March 31, 2017 |
|
April 1, 2016 |
|
Change |
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
Net service
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
$ |
151,155 |
|
|
75.1 |
|
% |
$ |
109,422 |
|
|
71.2 |
|
% |
$ |
|
41,733 |
|
|
38.1 |
|
% |
Other
Home-Based Services |
|
|
45,598 |
|
|
22.7 |
|
% |
|
39,884 |
|
|
25.9 |
|
% |
|
|
5,714 |
|
|
14.3 |
|
% |
Healthcare Innovations |
|
|
4,559 |
|
|
2.3 |
|
% |
|
4,392 |
|
|
2.9 |
|
% |
|
|
167 |
|
|
3.8 |
|
% |
|
|
|
201,312 |
|
|
100.0 |
|
% |
|
153,698 |
|
|
100.0 |
|
% |
|
|
47,614 |
|
|
31.0 |
|
% |
Operating income before
corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
|
19,882 |
|
|
13.2 |
|
% |
|
15,041 |
|
|
13.7 |
|
% |
|
|
4,841 |
|
|
32.2 |
|
% |
Other
Home-Based Services |
|
|
3,814 |
|
|
8.4 |
|
% |
|
3,671 |
|
|
9.2 |
|
% |
|
|
143 |
|
|
3.9 |
|
% |
Healthcare Innovations |
|
|
(343 |
) |
|
(7.5 |
) |
% |
|
(673 |
) |
|
(15.3 |
) |
% |
|
|
330 |
|
|
(49.0 |
) |
% |
|
|
|
23,353 |
|
|
11.6 |
|
% |
|
18,039 |
|
|
11.7 |
|
% |
|
|
5,314 |
|
|
29.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
9,058 |
|
|
4.5 |
|
% |
|
7,694 |
|
|
5.0 |
|
% |
|
|
1,364 |
|
|
17.7 |
|
% |
Deal, transition and
other costs |
|
|
7,231 |
|
|
3.6 |
|
% |
|
2,609 |
|
|
1.7 |
|
% |
|
|
4,622 |
|
|
NM |
|
|
Operating income |
|
|
7,064 |
|
|
3.5 |
|
% |
|
7,736 |
|
|
5.0 |
|
% |
|
|
(672 |
) |
|
(8.7 |
) |
% |
Interest expense,
net |
|
|
(1,897 |
) |
|
(0.9 |
) |
% |
|
(1,332 |
) |
|
(0.9 |
) |
% |
|
|
(565 |
) |
|
42.4 |
|
% |
Net (gain) loss -
noncontrolling interests |
|
|
(760 |
) |
|
(0.4 |
) |
% |
|
190 |
|
|
0.1 |
|
% |
|
|
(950 |
) |
|
NM |
|
|
Net income before
income taxes |
|
|
4,407 |
|
|
2.2 |
|
% |
|
6,594 |
|
|
4.3 |
|
% |
|
|
(2,187 |
) |
|
(33.2 |
) |
% |
Income tax expense |
|
|
(774 |
) |
|
(0.4 |
) |
% |
|
(2,677 |
) |
|
(1.7 |
) |
% |
|
|
1,903 |
|
|
(71.1 |
) |
% |
Net income attributable
to Almost Family, Inc. |
|
$ |
3,633 |
|
|
1.8 |
|
% |
$ |
3,917 |
|
|
2.5 |
|
% |
$ |
$ |
(284 |
) |
|
(7.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
16,595 |
|
|
8.2 |
|
% |
$ |
12,047 |
|
|
7.8 |
|
% |
$ |
|
4,548 |
|
|
37.8 |
|
% |
Adjusted net income
(1) |
|
$ |
7,091 |
|
|
3.5 |
|
% |
$ |
5,469 |
|
|
3.6 |
|
% |
$ |
|
1,622 |
|
|
29.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Non-GAAP Financial Measures below. |
HOME HEALTH OPERATING METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
March 31, 2017 |
|
April 1, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Locations |
|
|
240 |
|
|
|
|
163 |
|
|
|
|
77 |
|
|
47.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
41,457 |
|
|
|
|
28,432 |
|
|
|
|
13,025 |
|
|
45.8 |
|
% |
Census |
|
|
31,333 |
|
|
|
|
23,092 |
|
|
|
|
8,241 |
|
|
35.7 |
|
% |
Visits |
|
|
969,354 |
|
|
|
|
736,159 |
|
|
|
|
233,195 |
|
|
31.7 |
|
% |
Cost per
visit |
|
$ |
76 |
|
|
|
$ |
71 |
|
|
|
$ |
5 |
|
|
6.4 |
|
% |
G&A
expense per census |
|
$ |
1,843 |
|
|
|
$ |
1,815 |
|
|
|
$ |
28 |
|
|
1.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
31,290 |
|
|
|
|
21,612 |
|
|
|
|
9,678 |
|
|
44.8 |
|
% |
Census |
|
|
24,148 |
|
|
|
|
17,695 |
|
|
|
|
6,453 |
|
|
36.5 |
|
% |
Episodes |
|
|
45,891 |
|
|
|
|
32,540 |
|
|
|
|
13,351 |
|
|
41.0 |
|
% |
Visits |
|
|
768,012 |
|
|
|
|
587,692 |
|
|
|
|
180,320 |
|
|
30.7 |
|
% |
Revenue |
|
$ |
130,069 |
|
86.0 |
% |
$ |
95,432 |
|
87.2 |
% |
$ |
34,637 |
|
|
36.3 |
|
% |
Revenue
per episode |
|
$ |
2,834 |
|
|
|
|
2,933 |
|
|
|
$ |
(98 |
) |
|
(3.4 |
) |
% |
Visits
per episode |
|
|
16.7 |
|
|
|
|
18.1 |
|
|
|
|
(1.3 |
) |
|
(7.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
10,167 |
|
|
|
|
6,820 |
|
|
|
|
3,347 |
|
|
49.1 |
|
% |
Census |
|
|
7,185 |
|
|
|
|
5,397 |
|
|
|
|
1,788 |
|
|
33.1 |
|
% |
Visits |
|
|
201,342 |
|
|
|
|
148,467 |
|
|
|
|
52,875 |
|
|
35.6 |
|
% |
Revenue |
|
$ |
21,086 |
|
14.0 |
% |
$ |
13,990 |
|
12.8 |
% |
$ |
7,096 |
|
|
50.7 |
|
% |
Revenue
per visit |
|
$ |
105 |
|
|
|
$ |
94 |
|
|
|
$ |
11 |
|
|
11.1 |
|
% |
Visits
per admission |
|
|
19.8 |
|
|
|
|
21.8 |
|
|
|
|
(2.0 |
) |
|
(9.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER HOME-BASED SERVICES OPERATING
METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
March 31, 2017 |
|
April 1, 2016 |
|
Change |
|
|
|
Amount |
|
|
|
Amount |
|
|
|
Amount |
|
% |
|
Personal care
locations |
|
|
82 |
|
|
|
|
72 |
|
|
|
|
|
10 |
|
|
13.9 |
|
% |
Hospice locations |
|
|
16 |
|
|
|
|
1 |
|
|
|
|
|
15 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
2,341 |
|
|
|
|
2,446 |
|
|
|
|
|
(105 |
) |
|
(4.3 |
) |
% |
Census |
|
|
12,826 |
|
|
|
|
12,545 |
|
|
|
|
|
281 |
|
|
2.2 |
|
% |
Hours of
service |
|
|
1,829,542 |
|
|
|
|
1,848,209 |
|
|
|
|
|
(18,667 |
) |
|
(1.0 |
) |
% |
Hours per
patient per week |
|
|
10.9 |
|
|
|
|
11.3 |
|
|
|
|
|
(0.4 |
) |
|
(3.5 |
) |
% |
Revenue |
|
$ |
38,554 |
|
|
|
$ |
39,693 |
|
|
|
|
$ |
(1,139 |
) |
|
(2.9 |
) |
% |
Operating
income (loss) |
|
$ |
2,348 |
|
|
|
$ |
3,737 |
|
|
|
|
$ |
(1,389 |
) |
|
(37.2 |
) |
% |
Revenue
per hour |
|
$ |
21.07 |
|
|
|
$ |
21.48 |
|
|
|
|
$ |
(0.40 |
) |
|
(1.9 |
) |
% |
Cost per
hour |
|
$ |
12.93 |
|
|
|
$ |
12.97 |
|
|
|
|
$ |
(0.04 |
) |
|
(0.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospice: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
758 |
|
|
|
|
23 |
|
|
|
|
|
735 |
|
|
NM |
|
Census |
|
|
465 |
|
|
|
|
15 |
|
|
|
|
|
450 |
|
|
NM |
|
Length of
stay |
|
|
58 |
|
|
|
|
30 |
|
|
|
|
|
28 |
|
|
NM |
|
Revenue |
|
$ |
7,044 |
|
|
|
$ |
191 |
|
|
|
|
$ |
6,853 |
|
|
NM |
|
Operating
income (loss) |
|
$ |
1,466 |
|
|
|
$ |
(66 |
) |
|
|
|
$ |
1,532 |
|
|
NM |
|
Revenue
per day |
|
$ |
166 |
|
|
|
$ |
140 |
|
|
|
|
$ |
26 |
|
|
NM |
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
March 31, 2017 |
|
April 1, 2016 |
|
|
Change |
|
|
|
Amount |
|
Amount |
|
|
Amount |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACO
Management: |
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
ACO enrollees under management |
|
|
141,556 |
|
|
|
121,881 |
|
|
|
19,675 |
|
|
(16.1 |
) |
% |
ACOs
under contract |
|
|
15 |
|
|
|
14 |
|
|
|
1 |
|
|
(7.1 |
) |
% |
Revenue |
|
$ |
543 |
|
|
$ |
171 |
|
|
$ |
372 |
|
|
(217.5 |
) |
% |
Operating
income (loss) |
|
$ |
(389 |
) |
|
$ |
(392 |
) |
|
$ |
3 |
|
|
0.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment
Services |
|
|
|
|
|
|
|
|
|
|
|
|
Assessments |
|
|
15,212 |
|
|
|
15,575 |
|
|
|
(363 |
) |
|
2.3 |
|
% |
Revenue |
|
$ |
4,016 |
|
|
$ |
4,221 |
|
|
$ |
(205 |
) |
|
4.9 |
|
% |
Operating
income (loss) |
|
$ |
46 |
|
|
$ |
(281 |
) |
|
$ |
327 |
|
|
116.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
(in thousands) |
|
March 31, 2017 |
|
April 1, 2016 |
|
Net income
attributable to Almost Family, Inc. |
|
$ |
3,633 |
|
$ |
3,917 |
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
3,458 |
|
|
1,552 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
7,091 |
|
$ |
5,469 |
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
Average shares
outstanding |
|
|
12,937 |
|
|
10,260 |
|
|
|
|
|
|
|
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
0.28 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
0.27 |
|
|
0.15 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
0.55 |
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Adjusted
earnings before interest, income tax, depreciation and
amortization, amortization of stock-based compensation, deal,
transition and other (Adjusted EBITDA) 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
its 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 the Company’s credit agreement.
The following table sets forth a reconciliation
of net income to Adjusted EBITDA:
ALMOST FAMILY, INC. AND
SUBSIDIARIESRECONCILIATION OF ADJUSTED
EBITDA (In thousands) |
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
(in thousands) |
|
March 31, 2017 |
|
April 1, 2016 |
|
Net income |
|
$ |
3,633 |
|
$ |
3,917 |
|
|
Add back: |
|
|
|
|
|
|
|
Net
(loss) gain - noncontrolling interests |
|
|
760 |
|
|
(190 |
) |
|
Interest
expense |
|
|
1,897 |
|
|
1,332 |
|
|
Income
tax expense |
|
|
774 |
|
|
2,677 |
|
|
Depreciation and amortization |
|
|
1,533 |
|
|
985 |
|
|
Stock-based compensation |
|
|
767 |
|
|
717 |
|
|
Deal,
transition and other costs |
|
|
7,231 |
|
|
2,609 |
|
|
Adjusted EBITDA |
|
$ |
16,595 |
|
$ |
12,047 |
|
|
|
|
|
|
|
|
|
|
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, including its joint venture with
Community Health Systems, Inc. (CHS) (NYSE:CYH). Almost Family,
Inc. and its subsidiaries operate Home Health, Other Home-Based
Services and HealthCare Innovations segments.
Almost Family, Inc.
Steve Guenthner
(502) 891-1000
Community Health Systems (NYSE:CYH)
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