Almost Family, Inc. (NASDAQ:AFAM), a leading national provider of
home health and related services, announced today its financial
results for the quarter ended June 30, 2017.
Second Quarter Highlights (1):
- Net service revenues of approximately $200.7 million including
the second quarter of operations of the CHS-JV (see below), up
28.7% from the second quarter of 2016
- GAAP net income of $4.8 million
- GAAP EPS of $0.34(2) per diluted share on 33% more shares
outstanding than in the prior year
- Adjusted net income of $7.8(1) million
- Adjusted EPS of $0.56(1, 2); excluding the effect of the
January 2017 equity sale, Adjusted EPS would have been $0.75(1,
2)
- Adjusted EBITDA of $17.8(1) million
- Year to date operating cash flows of $11.8 million
- As of August 8, 2017, the Company has converted 71 of 110 home
health branches to the new HomeCare-HomeBase information system and
expects to convert the remaining branches as planned before
the end of 2017
- In July of 2017, the Company's CHS-JV purchased the assets
of a Medicare-certified home health agency and related private duty
company from Island Home Care in Key West, Florida marking our
first co-investment with CHS since the formation of the JV.
- CMS has announced a possible delay in ACO shared savings
payments for Performance Year 2016 to fourth quarter 2017
(1) See Non-GAAP Financial Measures below(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 CEO, commented: “We continue
to be very pleased with the results of our operations.
Additionally, our transition work with the CHS-JV is proceeding on
schedule and we are progressing nicely through our HomeCare
HomeBase implementation. In July, we made the first of what
we hope will be many co-investments with CHS with the addition of
an affiliated home health agency to a CHS hospital that did not
previously have one. On the regulatory front, we note that
the FY2018 preliminary rule from Medicare is relatively close to
expectations. We are carefully studying the proposed Home Health
Groupings Model for FY2019 and preparing our commentary for
submission to CMS within the regulatory window.”
Steve Guenthner, President
added: “With regard to the proposed rule, we feel
very strongly CMS has an obligation to implement the HHGM in a
budget neutral manner consistent with CMS’ historical practices in
rule making and with its statutory grant of authority from
Congress. To do otherwise may put vulnerable patient
populations at risk and most certainly will drive unnecessary
opposition to what is otherwise directionally a positive policy
development. Having said that, we feel CMS is signaling
a new era in provider-industry collaboration, and we in the home
health industry have an obligation to work reciprocally with CMS to
further refine the model prior to its implementation. We’re
pleased that many of the design principles of this new case mix
model are consistent with an increased focus on chronically ill
populations which is an approach we have long championed. We
very much appreciate the inclusive process and early announcement
of the model by CMS last year and its inclusion in the current
rule, some 18 months before possible implementation.”
Yarmuth concluded: “In the
second half of FY2017, we will complete our CHS-JV integration
and our HCHB implementation work. This will allow us to shift
our attention to be more fully focused on improving our organic
growth and earnings in 2018. I want to sincerely thank all
our employees and managers for their hard work and the fine job
they have been doing on both of these very important initiatives.
In addition, we are continuing our development activities to
pursue further consolidation in the home health space with a number
of good opportunities before us to maintain our growth
trajectory.”
Second Quarter Financial Results (See
Matters Impacting Comparability and Presentation
below)
Home Health (HH) segment net revenues increased by
35% or $38.0 million to $148.4 million from $110.3 million in the
prior year and episodic admissions grew by 42.2% to 29,761 from
20,932 primarily due to the CHS-JV acquisition. Net revenue
and episodic admissions in the CHS-JV were $41.9 million and 8,211,
respectively. Excluding the CHS-JV, episodic admissions grew
by approximately 3.0%, including growth in Florida of 2.8%.
The Company expects to discontinue separate reporting of Florida
admission growth in future periods.
Home Health segment contribution before corporate
expenses increased $4.9 million, or 32.4%, to $20.2 million, from
$15.3 million in the prior year period. Home Health
contribution margins as a percentage of revenue decreased slightly
to 13.6% from 13.8%, 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 $6.5 million or 16.3% to $46.5 million in 2017
from $40.0 million, primarily as a result of the 15 hospice
facilities acquired in the CHS-JV transaction. Hospice
revenues were $7.3 million for the quarter. Personal care
revenues were down $0.4 million or 1.1% from prior year on lower
volumes. Additionally, mix changes combined with rate cuts
and increases in wages influenced by increases in statutory minimum
wage rates in certain states negatively impacted personal care
margins. Overall OHBS segment contribution before corporate
expenses increased $1.0 million, or 32.8% to $4.1 million from $3.1
million for the same period last year.
Healthcare Innovations (HCI) segment net revenues
increased $0.2 million to $5.8 million from $5.6 million, while
operating income before corporate expenses declined to $0.3 million
from $0.7 million in 2016, largely due to changes in mix of
assessments performed by our assessment business.
Corporate expenses as a percentage of revenue
increased to 4.7% from 4.5%, primarily due to the current period
including a management incentive provision. Deal, transition
and other costs were $5.4 million, primarily due to the ongoing
conversion of the HH segment to the HomeCare-HomeBase information
system and transition costs for the CHS-JV acquisition. The
HomeCare-HomeBase system conversion, implementation, training and
related costs are expected to continue through the end of
2017.
The effective tax rates for the second quarter of
2017 and 2016 were 36.5% and 40.5%, respectively. The Company’s
lower effective income tax rate for the second quarter 2017 was due
to the favorable impact of excess tax benefits from the exercise of
stock options during the period.
Increased average shares outstanding from the
Company’s late January sale of common shares reduced Adjusted EPS
of $0.56 for the second quarter of 2017 by $0.19. The second
quarter is fully reflective of the dilutive effect of this
offering.
Year to Date Financial Results (See Matters
Impacting Comparability and Presentation below)
Home Health segment net revenues increased by $79.8
million or 36% to $299.5 million from $219.8 million in the prior
year and episodic admissions grew by 43.5% to 61,051 from 42,544 in
2016, primarily due to the CHS-JV acquisition. Net revenue
and episodic admissions in the CHS-JV were $84.8 million and
16,942, respectively. Excluding the CHS-JV, episodic
admissions grew by approximately 3.7%, including growth in Florida
of 2.6%.
Home Health segment contribution before corporate
expenses increased $9.8 million, or 32.3%, to $40.1 million, from
$30.3 million in the prior year period. Home Health
contribution margins as a percentage of revenue decreased slightly
to 13.4% from 13.8%, 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 $12.2 million or 15.3% to a $92.1 million from
$79.9 million primarily as a result of the 15 hospice facilities
acquired in the CHS-JV transaction. Hospice revenues were
$14.3 million. Personal care revenues were down $1.6 million
or 2.0% from prior year on lower volumes. Additionally, mix
changes combined with rate cuts and increases in wages influenced
by increases in statutory minimum wage rates in certain states
negatively impacted personal care margins. Overall OHBS
segment contribution before corporate expenses increased $1.1
million as compared to the same period of last year.
Healthcare Innovations (HCI) segment net revenues
increased $0.4 million to $10.4 million from $10.0 million, while
operating (loss) income before corporate expenses was essentially
break even in both periods.
Corporate expenses as a percentage of revenue
decreased to 4.6% from 4.7% in the prior year period primarily due
to a larger base of business. The first half of 2017 includes
a provision for management incentives, while the first half of 2016
had no such provision. Deal, transition and other costs were
$12.7 million, due to the CHS-JV acquisition and the conversion of
the HH segment to the HomeCare-HomeBase information system.
Borrowings related to acquisitions increased interest expense to
$3.5 million from $2.9 million in the prior year period.
Net cash from operating activities of $11.8 million
was generated in the first half of 2017. Accounts receivable
days sales outstanding were 57 at the end of the second 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.
The effective tax rates for 2017 and 2016 were
29.5% and 40.5%, respectively. The Company’s lower effective
income tax rate in 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 these items, 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 $1.11 for 2017 by $0.32.
Acquisitions
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.
Medicare Program Developments
On July 25, 2017, the Centers for Medicare and
Medicaid Services (CMS) issued its proposed rule for 2018. CMS is
proposing a 0.4% rate cut consisting of a 1.0% market basket
update, a 0.97% case mix adjustment and sunset of the rural add-on
provision. The proposed rule, which also proposes certain
refinements to the Home Health Value-based Purchasing Model plus a
new Home Health Groupings Model (HHGM Case Mix Model) for 2019, is
currently open for comment. The final rule is expected to be
released in late October 2017. With regard to the HHGM Case
Mix Model, as proposed it would also be subject to regulatory
review through the 2019 preliminary and final rule process and thus
can reasonably be expected to change from its current form prior to
actual implementation.
Due to the complexity, early stage of development
and announcement and subjectivity to future change of the FY2019
HHGM, the Company is unable to predict at this time the impact such
a proposal, if enacted, and in what form enacted, may have on the
Company’s future financial performance and condition. A series of
responses to various stakeholder requests from the Senate Finance
Committee, the House Ways and Means Committee and CMS dating to
2013 and including AFAM executive testimony before the Congress can
be found at almostfamily.com. Many of the concepts and goals
the Company has long championed in its position papers can be
found in the HHGM design.
CMS Delay in ACO Medicare Shared
Savings Program Success Fees
With regard to the timing of PY2016 ACO shared
savings payments, if any, which the Company has historically
reported in its third quarter earnings report, CMS recently
announced: “A delay in availability of 2016 final risk scores will
postpone the delivery of Performance Year (PY) 2016 financial
reconciliation results and final benchmark reports for
PY2017.” As a result of this CMS delay, the Company is unable
to determine whether it will report its annual shared savings
revenue for PY2016 in the third quarter of 2017 or whether the
delay will result in later reporting of that revenue. Under
the circumstances, and until further information is received from
CMS, the Company advises investors and analysts to expect the
results of its participation in the shared savings program to be
reported in its fourth quarter 2017 results.
Matters Impacting Comparability and
Presentation – CHS-JV and Segment Presentation
On the first day of fiscal 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%.
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”)
operations plus hospice services. Prior year segment
information has been reclassified to conform to 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
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(Unaudited) |
(In thousands, except per share
data) |
|
|
Quarter ended |
|
Six months ended |
|
June 30, 2017 |
|
July 1, 2016 |
|
June 30, 2017 |
|
July 1, 2016 |
Net service
revenues |
$ |
200,733 |
|
$ |
155,996 |
|
|
$ |
402,045 |
|
$ |
309,694 |
|
Cost of service
revenues (excluding depreciation & amortization) |
|
104,052 |
|
|
83,692 |
|
|
|
210,320 |
|
|
165,924 |
|
Gross margin |
|
96,681 |
|
|
72,304 |
|
|
|
191,725 |
|
|
143,770 |
|
General and
administrative expenses: |
|
|
|
|
|
|
|
Salaries
and benefits |
|
56,870 |
|
|
41,502 |
|
|
|
112,903 |
|
|
83,182 |
|
Other |
|
24,556 |
|
|
18,715 |
|
|
|
49,272 |
|
|
38,156 |
|
Deal,
transition & other costs |
|
5,424 |
|
|
2,589 |
|
|
|
12,655 |
|
|
5,198 |
|
Total
general and administrative expenses |
|
86,850 |
|
|
62,806 |
|
|
|
174,830 |
|
|
126,536 |
|
Operating income |
|
9,831 |
|
|
9,498 |
|
|
|
16,895 |
|
|
17,234 |
|
Interest
expense, net |
|
1,579 |
|
|
1,604 |
|
|
|
3,475 |
|
|
2,936 |
|
Income before
noncontrolling interests and income taxes |
|
8,252 |
|
|
7,894 |
|
|
|
13,420 |
|
|
14,298 |
|
Net
income (loss) - noncontrolling interests |
|
725 |
|
|
(133 |
) |
|
|
1,485 |
|
|
(323 |
) |
Income before income
tax expense |
|
7,527 |
|
|
8,027 |
|
|
|
11,935 |
|
|
14,621 |
|
Income
tax expense |
|
2,751 |
|
|
3,250 |
|
|
|
3,525 |
|
|
5,927 |
|
Net income attributable
to Almost Family, Inc. |
$ |
4,776 |
|
$ |
4,777 |
|
|
$ |
8,410 |
|
$ |
8,694 |
|
|
|
|
|
|
|
|
|
Per share
amounts-basic: |
|
|
|
|
|
|
|
Average
shares outstanding |
|
13,717 |
|
|
10,158 |
|
|
|
13,212 |
|
|
10,125 |
|
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.35 |
|
$ |
0.47 |
|
|
$ |
0.64 |
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
Average
shares outstanding |
|
13,954 |
|
|
10,322 |
|
|
|
13,449 |
|
|
10,311 |
|
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.34 |
|
$ |
0.46 |
|
|
$ |
0.63 |
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
(Unaudited) |
|
|
|
|
|
June 30, 2017 |
|
December 30, 2016 |
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
21,541 |
|
|
$ |
10,110 |
|
Accounts
receivable - net |
|
|
125,984 |
|
|
|
99,212 |
|
Prepaid
expenses and other current assets |
|
|
13,443 |
|
|
|
11,432 |
|
TOTAL
CURRENT ASSETS |
|
|
160,968 |
|
|
|
120,754 |
|
PROPERTY AND EQUIPMENT
- NET |
|
|
19,441 |
|
|
|
10,732 |
|
GOODWILL |
|
|
389,258 |
|
|
|
305,476 |
|
OTHER INTANGIBLE ASSETS
- NET |
|
|
146,736 |
|
|
|
85,063 |
|
TRANSACTION
DEPOSIT |
|
|
— |
|
|
|
128,930 |
|
OTHER ASSETS |
|
|
8,195 |
|
|
|
7,757 |
|
TOTAL ASSETS |
|
$ |
724,598 |
|
|
$ |
658,712 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
16,453 |
|
|
$ |
12,122 |
|
Accrued
other liabilities |
|
|
50,612 |
|
|
|
39,728 |
|
TOTAL
CURRENT LIABILITIES |
|
|
67,065 |
|
|
|
51,850 |
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
Revolving
credit facility |
|
|
122,677 |
|
|
|
262,456 |
|
Deferred
tax liabilities |
|
|
24,970 |
|
|
|
21,145 |
|
Seller
notes |
|
|
12,461 |
|
|
|
12,500 |
|
Other
liabilities |
|
|
7,100 |
|
|
|
6,581 |
|
TOTAL
LONG-TERM LIABILITIES |
|
|
167,208 |
|
|
|
302,682 |
|
TOTAL LIABILITIES |
|
|
234,273 |
|
|
|
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; 14,133 and 10,504 issued
and outstanding |
|
|
1,413 |
|
|
|
1,051 |
|
Treasury
stock, at cost, 169 and 117 shares |
|
|
(5,825 |
) |
|
|
(3,258 |
) |
Additional paid-in capital |
|
|
287,649 |
|
|
|
141,233 |
|
Retained
earnings |
|
|
171,900 |
|
|
|
163,763 |
|
Almost
Family, Inc. stockholders' equity |
|
|
455,137 |
|
|
|
302,789 |
|
Noncontrolling interests - nonredeemable |
|
|
32,932 |
|
|
|
(865 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
|
|
488,069 |
|
|
|
301,924 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
724,598 |
|
|
$ |
658,712 |
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
(In thousands) |
|
|
Six months ended |
|
June 30, 2017 |
|
July 1, 2016 |
Cash flows from
operating activities: |
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
8,410 |
|
|
$ |
8,694 |
|
Net
income (loss) attributable to noncontrolling interests |
|
1,485 |
|
|
|
(323 |
) |
Income
before non-controlling interests |
|
9,895 |
|
|
|
8,371 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
3,193 |
|
|
|
1,848 |
|
Provision
for uncollectible accounts |
|
7,442 |
|
|
|
7,859 |
|
Stock-based compensation |
|
1,414 |
|
|
|
1,402 |
|
Loan
costs amortization |
|
473 |
|
|
|
136 |
|
Deferred
income taxes |
|
3,825 |
|
|
|
4,236 |
|
|
|
26,242 |
|
|
|
23,852 |
|
Change in certain net
assets and liabilities, net of the effects of acquisitions: |
|
|
|
Accounts
receivable |
|
(13,194 |
) |
|
|
(10,081 |
) |
Prepaid
expenses and other current assets |
|
(1,363 |
) |
|
|
(511 |
) |
Other
assets |
|
(900 |
) |
|
|
(492 |
) |
Accounts
payable and accrued expenses |
|
975 |
|
|
|
(2,363 |
) |
Net cash provided by
operating activities |
|
11,760 |
|
|
|
10,405 |
|
|
|
|
|
Cash flows of investing
activities: |
|
|
|
Capital
expenditures |
|
(3,117 |
) |
|
|
(2,275 |
) |
Transaction deposit |
|
128,930 |
|
|
|
- |
|
Acquisitions, net of cash acquired |
|
(129,164 |
) |
|
|
(30,754 |
) |
Net cash used in
investing activities |
|
(3,351 |
) |
|
|
(33,029 |
) |
|
|
|
|
Cash flows of financing
activities: |
|
|
|
Credit
facility borrowings |
|
143,917 |
|
|
|
145,538 |
|
Credit
facility repayments, net |
|
(283,697 |
) |
|
|
(124,153 |
) |
Debt
issuance fees |
|
46 |
|
|
|
(102 |
) |
Proceeds
from stock offering, net |
|
143,907 |
|
|
|
- |
|
Proceeds
from stock option exercises |
|
1,455 |
|
|
|
16 |
|
Purchase
of common stock in connection with share awards |
|
(2,567 |
) |
|
|
(484 |
) |
Tax
impact of share awards |
|
- |
|
|
|
256 |
|
Principal
payments on notes payable and capital leases |
|
(39 |
) |
|
|
(55 |
) |
Net cash provided by
financing activities |
|
3,022 |
|
|
|
21,016 |
|
|
|
|
|
Net change in cash and
cash equivalents |
|
11,431 |
|
|
|
(1,608 |
) |
Cash and cash
equivalents at beginning of period |
|
10,110 |
|
|
|
7,522 |
|
Cash and cash
equivalents at end of period |
$ |
21,541 |
|
|
$ |
5,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIES |
|
RESULTS OF
OPERATIONS |
|
(UNAUDITED) |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 1, 2016 |
|
Change |
|
|
|
Amount |
|
%
Rev |
|
Amount |
|
%
Rev |
|
Amount |
|
% |
|
Net service
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
$ |
148,373 |
|
|
73.9 |
|
% |
$ |
110,340 |
|
|
70.7 |
|
% |
$ |
38,033 |
|
|
34.5 |
|
% |
Other
Home-Based Services |
|
|
46,519 |
|
|
23.2 |
|
% |
|
40,012 |
|
|
25.6 |
|
% |
|
|
6,507 |
|
|
16.3 |
|
% |
Healthcare Innovations |
|
|
5,841 |
|
|
2.9 |
|
% |
|
5,644 |
|
|
3.6 |
|
% |
|
|
197 |
|
|
3.5 |
|
% |
|
|
|
200,733 |
|
|
100.0 |
|
% |
|
155,996 |
|
|
100.0 |
|
% |
|
|
44,737 |
|
|
28.7 |
|
% |
Operating income before
corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
|
20,213 |
|
|
13.6 |
|
% |
|
15,267 |
|
|
13.8 |
|
% |
|
|
4,946 |
|
|
32.4 |
|
% |
Other
Home-Based Services |
|
|
4,051 |
|
|
8.7 |
|
% |
|
3,051 |
|
|
7.6 |
|
% |
|
|
1,000 |
|
|
32.8 |
|
% |
Healthcare Innovations |
|
|
327 |
|
|
5.6 |
|
% |
|
720 |
|
|
12.8 |
|
% |
|
|
(393 |
) |
|
(54.6 |
) |
% |
|
|
|
24,591 |
|
|
12.3 |
|
% |
|
19,038 |
|
|
12.2 |
|
% |
|
|
5,553 |
|
|
29.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
9,336 |
|
|
4.7 |
|
% |
|
6,951 |
|
|
4.5 |
|
% |
|
|
2,385 |
|
|
34.3 |
|
% |
Deal, transition and
other costs |
|
|
5,424 |
|
|
2.7 |
|
% |
|
2,589 |
|
|
1.7 |
|
% |
|
|
2,835 |
|
|
109.5 |
|
% |
Operating income |
|
|
9,831 |
|
|
4.9 |
|
% |
|
9,498 |
|
|
6.1 |
|
% |
|
|
333 |
|
|
3.5 |
|
% |
Interest expense,
net |
|
|
1,579 |
|
|
0.8 |
|
% |
|
1,604 |
|
|
1.0 |
|
% |
|
|
(25 |
) |
|
(1.6 |
) |
% |
Net income (loss) -
noncontrolling interests |
|
|
725 |
|
|
0.4 |
|
% |
|
(133 |
) |
|
(0.1 |
) |
% |
|
|
858 |
|
|
NM |
|
Net income before
income taxes |
|
|
7,527 |
|
|
3.7 |
|
% |
|
8,027 |
|
|
5.1 |
|
% |
$ |
(500 |
) |
|
(6.2 |
) |
% |
Income tax expense |
|
|
2,751 |
|
|
1.4 |
|
% |
|
3,250 |
|
|
2.1 |
|
% |
|
|
(499 |
) |
|
(15.4 |
) |
% |
Net income attributable
to Almost Family, Inc. |
|
$ |
4,776 |
|
|
2.4 |
|
% |
$ |
4,777 |
|
|
3.1 |
|
% |
$ |
(1 |
) |
|
(0.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
17,816 |
|
|
8.9 |
|
% |
$ |
13,757 |
|
|
8.8 |
|
% |
$ |
4,059 |
|
|
29.5 |
|
% |
Adjusted net income
(1) |
|
$ |
7,834 |
|
|
3.9 |
|
% |
$ |
6,317 |
|
|
4.0 |
|
% |
$ |
1,517 |
|
|
24.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Non-GAAP Financial Measures below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 1, 2016 |
|
Change |
|
|
|
Amount |
|
%
Rev |
|
Amount |
|
%
Rev |
|
Amount |
|
% |
|
Net service
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
$ |
299,528 |
|
|
74.5 |
|
% |
$ |
219,762 |
|
|
71.0 |
|
% |
$ |
79,766 |
|
|
36.3 |
|
% |
Other
Home-Based Services |
|
|
92,117 |
|
|
22.9 |
|
% |
|
79,896 |
|
|
25.8 |
|
% |
|
|
12,221 |
|
|
15.3 |
|
% |
Healthcare Innovations |
|
|
10,400 |
|
|
2.6 |
|
% |
|
10,036 |
|
|
3.2 |
|
% |
|
|
364 |
|
|
3.6 |
|
% |
|
|
|
402,045 |
|
|
100.0 |
|
% |
|
309,694 |
|
|
100.0 |
|
% |
|
|
92,351 |
|
|
29.8 |
|
% |
Operating (loss) income
before corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
|
40,095 |
|
|
13.4 |
|
% |
|
30,308 |
|
|
13.8 |
|
% |
|
|
9,787 |
|
|
32.3 |
|
% |
Other
Home-Based Services |
|
|
7,865 |
|
|
8.5 |
|
% |
|
6,722 |
|
|
8.4 |
|
% |
|
|
1,143 |
|
|
17.0 |
|
% |
Healthcare Innovations |
|
|
(16 |
) |
|
(0.2 |
) |
% |
|
47 |
|
|
0.5 |
|
% |
|
|
(63 |
) |
|
NM |
|
|
|
|
47,944 |
|
|
11.9 |
|
% |
|
37,077 |
|
|
12.0 |
|
% |
|
|
10,867 |
|
|
29.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
18,394 |
|
|
4.6 |
|
% |
|
14,645 |
|
|
4.7 |
|
% |
|
|
3,749 |
|
|
25.6 |
|
% |
Deal, transition and
other costs |
|
|
12,655 |
|
|
3.1 |
|
% |
|
5,198 |
|
|
1.7 |
|
% |
|
|
7,457 |
|
|
143.5 |
|
% |
Operating income |
|
|
16,895 |
|
|
4.2 |
|
% |
|
17,234 |
|
|
5.6 |
|
% |
|
|
(339 |
) |
|
(2.0 |
) |
% |
Interest expense,
net |
|
|
3,475 |
|
|
0.9 |
|
% |
|
2,936 |
|
|
0.9 |
|
% |
|
|
539 |
|
|
18.4 |
|
% |
Net income (loss) -
noncontrolling interests |
|
|
1,485 |
|
|
0.4 |
|
% |
|
(323 |
) |
|
(0.1 |
) |
% |
|
|
1,808 |
|
|
NM |
|
Net income before
income taxes |
|
|
11,935 |
|
|
3.0 |
|
% |
|
14,621 |
|
|
4.7 |
|
% |
$ |
(2,686 |
) |
|
(18.4 |
) |
% |
Income tax expense |
|
|
3,525 |
|
|
0.9 |
|
% |
|
5,927 |
|
|
1.9 |
|
% |
|
|
(2,402 |
) |
|
(40.5 |
) |
% |
Net income attributable
to Almost Family, Inc. |
|
$ |
8,410 |
|
|
2.1 |
|
% |
$ |
8,694 |
|
|
2.8 |
|
% |
$ |
(284 |
) |
|
(3.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
34,624 |
|
|
8.6 |
|
% |
$ |
25,954 |
|
|
8.4 |
|
% |
$ |
8,670 |
|
|
33.4 |
|
% |
Adjusted net income
(1) |
|
$ |
14,926 |
|
|
3.7 |
|
% |
$ |
11,787 |
|
|
3.8 |
|
% |
$ |
3,139 |
|
|
26.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Non-GAAP Financial Measures below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME HEALTH OPERATING METRICS |
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 1, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Locations |
|
|
239 |
|
|
|
|
162 |
|
|
|
|
77 |
|
|
47.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
39,728 |
|
|
|
|
27,410 |
|
|
|
|
12,318 |
|
|
44.9 |
|
% |
Census |
|
|
31,588 |
|
|
|
|
23,441 |
|
|
|
|
8,147 |
|
|
34.8 |
|
% |
Visits |
|
|
944,454 |
|
|
|
|
735,138 |
|
|
|
|
209,316 |
|
|
28.5 |
|
% |
Cost per
visit |
|
$ |
76 |
|
|
|
$ |
73 |
|
|
|
$ |
3 |
|
|
3.7 |
|
% |
G&A
expense per census |
|
$ |
1,796 |
|
|
|
$ |
1,768 |
|
|
|
$ |
28 |
|
|
1.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
29,761 |
|
|
|
|
20,932 |
|
|
|
|
8,829 |
|
|
42.2 |
|
% |
Census |
|
|
24,263 |
|
|
|
|
18,010 |
|
|
|
|
6,253 |
|
|
34.7 |
|
% |
Episodes |
|
|
45,309 |
|
|
|
|
32,775 |
|
|
|
|
12,534 |
|
|
38.2 |
|
% |
Visits |
|
|
745,039 |
|
|
|
|
589,116 |
|
|
|
|
155,923 |
|
|
26.5 |
|
% |
Revenue |
|
$ |
126,984 |
|
85.6 |
% |
$ |
95,305 |
|
86.4 |
% |
$ |
31,679 |
|
|
33.2 |
|
% |
Revenue
per episode |
|
$ |
2,803 |
|
|
|
|
2,908 |
|
|
|
$ |
(105 |
) |
|
(3.6 |
) |
% |
Visits
per episode |
|
|
16.4 |
|
|
|
|
18.0 |
|
|
|
|
(1.5 |
) |
|
(8.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
9,967 |
|
|
|
|
6,478 |
|
|
|
|
3,489 |
|
|
53.9 |
|
% |
Census |
|
|
7,325 |
|
|
|
|
5,431 |
|
|
|
|
1,894 |
|
|
34.9 |
|
% |
Visits |
|
|
199,415 |
|
|
|
|
146,022 |
|
|
|
|
53,393 |
|
|
36.6 |
|
% |
Revenue |
|
$ |
21,389 |
|
14.4 |
% |
$ |
15,035 |
|
13.6 |
% |
$ |
6,354 |
|
|
42.3 |
|
% |
Revenue
per visit |
|
$ |
107 |
|
|
|
$ |
103 |
|
|
|
$ |
4 |
|
|
4.2 |
|
% |
Visits
per admission |
|
|
20.0 |
|
|
|
|
22.5 |
|
|
|
|
(2.5 |
) |
|
(11.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME HEALTH OPERATING METRICS |
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 1, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Locations |
|
|
239 |
|
|
|
|
162 |
|
|
|
|
77 |
|
|
47.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
81,185 |
|
|
|
|
55,842 |
|
|
|
|
25,343 |
|
|
45.4 |
|
% |
Census |
|
|
31,461 |
|
|
|
|
23,267 |
|
|
|
|
8,195 |
|
|
35.2 |
|
% |
Visits |
|
|
1,913,808 |
|
|
|
|
1,471,297 |
|
|
|
|
442,511 |
|
|
30.1 |
|
% |
Cost per
visit |
|
$ |
76 |
|
|
|
$ |
72 |
|
|
|
$ |
4 |
|
|
5.0 |
|
% |
G&A
expense per census |
|
$ |
3,639 |
|
|
|
$ |
3,583 |
|
|
|
$ |
56 |
|
|
1.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
61,051 |
|
|
|
|
42,544 |
|
|
|
|
18,507 |
|
|
43.5 |
|
% |
Census |
|
|
24,206 |
|
|
|
|
17,853 |
|
|
|
|
6,354 |
|
|
35.6 |
|
% |
Episodes |
|
|
91,200 |
|
|
|
|
65,315 |
|
|
|
|
25,885 |
|
|
39.6 |
|
% |
Visits |
|
|
1,513,051 |
|
|
|
|
1,176,808 |
|
|
|
|
336,243 |
|
|
28.6 |
|
% |
Revenue |
|
$ |
257,053 |
|
85.8 |
% |
$ |
190,737 |
|
86.8 |
% |
$ |
66,316 |
|
|
34.8 |
|
% |
Revenue
per episode |
|
$ |
2,819 |
|
|
|
|
2,920 |
|
|
|
$ |
(102 |
) |
|
(3.5 |
) |
% |
Visits
per episode |
|
|
16.6 |
|
|
|
|
18.0 |
|
|
|
|
(1.4 |
) |
|
(7.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
20,134 |
|
|
|
|
13,298 |
|
|
|
|
6,836 |
|
|
51.4 |
|
% |
Census |
|
|
7,255 |
|
|
|
|
5,414 |
|
|
|
|
1,841 |
|
|
34.0 |
|
% |
Visits |
|
|
400,757 |
|
|
|
|
294,489 |
|
|
|
|
106,268 |
|
|
36.1 |
|
% |
Revenue |
|
$ |
42,475 |
|
14.2 |
% |
$ |
29,025 |
|
13.2 |
% |
$ |
13,450 |
|
|
46.3 |
|
% |
Revenue
per visit |
|
$ |
106 |
|
|
|
$ |
99 |
|
|
|
$ |
7 |
|
|
7.5 |
|
% |
Visits
per admission |
|
|
19.9 |
|
|
|
|
22.1 |
|
|
|
|
(2.2 |
) |
|
(10.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER HOME-BASED SERVICES OPERATING
METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended |
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
July 1, 2016 |
|
|
Change |
|
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% |
|
Personal Care: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
74 |
|
|
|
|
|
71 |
|
|
|
|
|
|
3 |
|
|
4.2 |
|
% |
Admissions |
|
|
2,537 |
|
|
|
|
|
2,591 |
|
|
|
|
|
|
(54 |
) |
|
(2.1 |
) |
% |
Census |
|
|
12,706 |
|
|
|
|
|
12,894 |
|
|
|
|
|
|
(188 |
) |
|
(1.5 |
) |
% |
Hours of
service |
|
|
1,813,207 |
|
|
|
|
|
1,857,937 |
|
|
|
|
|
|
(44,730 |
) |
|
(2.4 |
) |
% |
Hours per
patient per week |
|
|
11.0 |
|
|
|
|
|
11.1 |
|
|
|
|
|
|
(0.1 |
) |
|
(1.0 |
) |
% |
Revenue |
|
$ |
39,248 |
|
84.4 |
% |
|
$ |
39,694 |
|
|
99.2 |
% |
|
$ |
(446 |
) |
|
(1.1 |
) |
% |
Operating
income |
|
$ |
2,913 |
|
|
|
|
$ |
3,008 |
|
|
|
|
|
$ |
(95 |
) |
|
(3.2 |
) |
% |
Revenue
per hour |
|
$ |
21.65 |
|
|
|
|
$ |
21.36 |
|
|
|
|
|
$ |
0.28 |
|
|
1.3 |
|
% |
Cost per
hour |
|
$ |
13.23 |
|
|
|
|
$ |
13.08 |
|
|
|
|
|
$ |
0.15 |
|
|
1.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospice: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
16 |
|
|
|
|
|
1 |
|
|
|
|
|
|
15 |
|
|
NM |
|
Admissions |
|
|
750 |
|
|
|
|
|
26 |
|
|
|
|
|
|
724 |
|
|
NM |
|
Census |
|
|
481 |
|
|
|
|
|
25 |
|
|
|
|
|
|
456 |
|
|
NM |
|
Length of
stay |
|
|
58 |
|
|
|
|
|
45 |
|
|
|
|
|
|
13 |
|
|
28.9 |
|
% |
Revenue |
|
$ |
7,271 |
|
15.6 |
% |
|
$ |
318 |
|
|
0.8 |
% |
|
$ |
6,953 |
|
|
NM |
|
Operating
income |
|
$ |
1,138 |
|
|
|
|
$ |
43 |
|
|
|
|
|
$ |
1,095 |
|
|
NM |
|
Revenue
per day |
|
$ |
166 |
|
|
|
|
$ |
142 |
|
|
|
|
|
$ |
24 |
|
|
16.9 |
|
% |
|
|
|
Six months
ended |
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
July 1, 2016 |
|
|
Change |
|
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% |
|
Personal Care: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
74 |
|
|
|
|
|
71 |
|
|
|
|
|
|
3 |
|
|
4.2 |
|
% |
Admissions |
|
|
4,878 |
|
|
|
|
|
5,037 |
|
|
|
|
|
|
(159 |
) |
|
(3.2 |
) |
% |
Census |
|
|
12,766 |
|
|
|
|
|
12,720 |
|
|
|
|
|
|
46 |
|
|
0.4 |
|
% |
Hours of
service |
|
|
3,642,749 |
|
|
|
|
|
3,706,146 |
|
|
|
|
|
|
(63,397 |
) |
|
(1.7 |
) |
% |
Hours per
patient per week |
|
|
11.0 |
|
|
|
|
|
11.2 |
|
|
|
|
|
|
(0.2 |
) |
|
(2.1 |
) |
% |
Revenue |
|
$ |
77,802 |
|
84.5 |
% |
|
$ |
79,387 |
|
|
99.4 |
% |
|
$ |
(1,585 |
) |
|
(2.0 |
) |
% |
Operating
income |
|
$ |
5,261 |
|
|
|
|
$ |
6,745 |
|
|
|
|
|
$ |
(1,484 |
) |
|
(22.0 |
) |
% |
Revenue
per hour |
|
$ |
21.36 |
|
|
|
|
$ |
21.42 |
|
|
|
|
|
$ |
(0.06 |
) |
|
(0.3 |
) |
% |
Cost per
hour |
|
$ |
13.08 |
|
|
|
|
$ |
13.03 |
|
|
|
|
|
$ |
0.05 |
|
|
0.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospice: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
16 |
|
|
|
|
|
1 |
|
|
|
|
|
|
15 |
|
|
NM |
|
Admissions |
|
|
1,508 |
|
|
|
|
|
49 |
|
|
|
|
|
|
1,459 |
|
|
NM |
|
Census |
|
|
474 |
|
|
|
|
|
20 |
|
|
|
|
|
|
454 |
|
|
NM |
|
Length of
stay |
|
|
57 |
|
|
|
|
|
38 |
|
|
|
|
|
|
20 |
|
|
52.0 |
|
% |
Revenue |
|
$ |
14,315 |
|
15.5 |
% |
|
$ |
509 |
|
|
0.6 |
% |
|
$ |
13,806 |
|
|
NM |
|
Operating
income (loss) |
|
$ |
2,604 |
|
|
|
|
$ |
(23 |
) |
|
|
|
|
$ |
2,627 |
|
|
NM |
|
Revenue
per day |
|
$ |
166 |
|
|
|
|
$ |
142 |
|
|
|
|
|
$ |
24 |
|
|
16.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 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 |
|
$ |
647 |
|
|
$ |
165 |
|
|
$ |
482 |
|
|
292.1 |
|
% |
Operating
(loss) |
|
$ |
(580 |
) |
|
$ |
(479 |
) |
|
$ |
(101 |
) |
|
(21.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment Services |
|
|
|
|
|
|
|
|
|
|
|
|
Assessments |
|
|
22,284 |
|
|
|
19,820 |
|
|
|
2,464 |
|
|
12.4 |
|
% |
Revenue |
|
$ |
5,194 |
|
|
$ |
5,479 |
|
|
$ |
(285 |
) |
|
(5.2 |
) |
% |
Operating
income |
|
$ |
907 |
|
|
$ |
1,199 |
|
|
$ |
(292 |
) |
|
(24.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
July 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 |
|
$ |
1,190 |
|
|
$ |
336 |
|
|
$ |
854 |
|
|
254.2 |
|
% |
Operating
(loss) |
|
$ |
(969 |
) |
|
$ |
(871 |
) |
|
$ |
(98 |
) |
|
(11.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment Services |
|
|
|
|
|
|
|
|
|
|
|
|
Assessments |
|
|
37,496 |
|
|
|
35,395 |
|
|
|
2,101 |
|
|
5.9 |
|
% |
Revenue |
|
$ |
9,210 |
|
|
$ |
9,700 |
|
|
$ |
(490 |
) |
|
(5.1 |
) |
% |
Operating
income |
|
$ |
953 |
|
|
$ |
918 |
|
|
$ |
35 |
|
|
3.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Six months ended |
|
(in thousands) |
|
June 30, 2017 |
|
July 1, 2016 |
|
June 30, 2017 |
|
July 1, 2016 |
|
Net income
attributable to Almost Family, Inc. |
|
$ |
4,776 |
|
$ |
4,777 |
|
$ |
8,410 |
|
$ |
8,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
3,058 |
|
|
1,540 |
|
|
6,516 |
|
|
3,093 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
7,834 |
|
$ |
6,317 |
$ |
|
14,926 |
|
$ |
11,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding |
|
|
13,954 |
|
|
10,322 |
|
|
13,449 |
|
|
10,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
0.34 |
|
$ |
0.46 |
|
$ |
0.63 |
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other, net of tax |
|
|
0.22 |
|
|
0.15 |
|
|
0.48 |
|
|
0.30 |
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
0.56 |
|
$ |
0.61 |
|
$ |
1.11 |
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Adjusted
earnings before interest, income and franchise taxes, 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
SUBSIDIARIES |
RECONCILIATION OF ADJUSTED
EBITDA |
(In thousands) |
|
|
|
Quarter ended |
|
Six months ended |
|
(in thousands) |
|
June 30, 2017 |
|
July 1, 2016 |
|
June 30, 2017 |
|
|
July 1, 2016 |
|
Net income |
|
$ |
4,776 |
|
$ |
4,777 |
|
|
$ |
8,410 |
|
|
$ |
8,694 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income - noncontrolling interests |
|
|
725 |
|
|
(133 |
) |
|
|
1,485 |
|
|
|
(323 |
) |
|
Interest
expense |
|
|
1,579 |
|
|
1,604 |
|
|
|
3,475 |
|
|
|
2,936 |
|
|
Income
tax expense |
|
|
2,751 |
|
|
3,250 |
|
|
|
3,525 |
|
|
|
5,927 |
|
|
Franchise
taxes |
|
|
253 |
|
|
122 |
|
|
|
467 |
|
|
|
272 |
|
|
Depreciation and amortization |
|
|
1,660 |
|
|
864 |
|
|
|
3,193 |
|
|
|
1,848 |
|
|
Stock-based compensation |
|
|
648 |
|
|
684 |
|
|
|
1,414 |
|
|
|
1,402 |
|
|
Deal,
transition and other costs |
|
|
5,424 |
|
|
2,589 |
|
|
|
12,655 |
|
|
|
5,198 |
|
|
Adjusted EBITDA |
|
$ |
17,816 |
|
$ |
13,757 |
|
|
$ |
34,624 |
|
|
$ |
25,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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 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; unanticipated
difficulties or expenditures relating to acquisition transactions,
including, without limitation, difficulties that result in the
failure to achieve expected synergies, efficiencies and cost
savings from a transaction within the expected time period (if at
all); 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; changes in the marketplace and
regulatory environment for Health Risk Assessments and the
Company’s self-insurance risks. 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 December 30, 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 329 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
Almost Family (NASDAQ:AFAM)
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