Almost Family, Inc. (NASDAQ:AFAM), a leading provider of home
health and related services, announced today its financial results
for the quarter and year ended December 29, 2017.
Fourth Quarter Highlights
(1):
- Net service revenues of approximately $200 million
- GAAP net income of $8.8 million and GAAP EPS of $0.63(2) per
diluted share includes the favorable impact of the 2017 Tax Cuts
and Jobs Act of approximately $9.5 million, offset by increases in
LHC merger and other deal, transition and other costs of
approximately $12.3 million
- Adjusted EPS of $0.58(1,2)
- Adjusted EBITDA of $18.4 (1) million
- Operating cash flows of $15.8 million
Full Year Highlights (1):
- Net service revenues of approximately $800 million
- GAAP net income of $20.4 million and GAAP EPS of $1.48(2) per
diluted share which includes the unfavorable impact of deal,
transition and other costs, partially offset by the favorable
impact of 2017 Tax Cuts and Jobs Act.
- Adjusted EPS of $2.10 (1,2)
- Adjusted EBITDA of $68.0 (1) million, including an estimated
$3.3 million unfavorable impact from the hurricanes in the third
quarter of 2017
- Operating cash flows of $30.5 million
(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
LHC Group and Almost Family Merger of
Equals
On November 15, 2017, Almost Family entered into an agreement
with LHC Group ("LHC") providing for a “merger of equals” business
combination between our Company and LHC. Following approval
by both companies’ shareholders, the merger will be an all-stock
transaction with an exchange ratio of 0.9150 of LHC shares to be
exchanged for each outstanding share of Almost Family stock.
The combined company is expected to have an expanded geographic
service territory of 36 states, 781 locations and 76 joint venture
partnerships including 336 hospitals. The combined company
will be listed under the LHC name with common shares to be traded
on the NASDAQ under ticker symbol LHCG. On February 22,
2018, the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 with respect to this transaction expired,
satisfying one of the important conditions to closing. The
transaction is expected to close near the end of the first
quarter of 2018 following both companies’ March 29, 2018 special
stockholder meetings to approve the proposed transaction.
Management Comments
William Yarmuth, Chairman and CEO,
commented: “We’re very pleased to close out fiscal
2017 with strong operating results and numerous accomplishments
culminating with our planned merger with LHC Group.
Successfully integrating our CHS-JV acquisition and completing the
transition of the balance of our home health operations, so that
we’re now fully on the Homecare Homebase software platform, bode
very well for our future.
“As we leave 2017 and enter into 2018, combining
the best of both our long track records of success and
patient-focused cultures, as one family, we’ll continue our mission
of making lives better through home care. I am extremely
proud of the work we've done, the progress we've made, and the
meaningful contribution the Almost Family side of the house will
now be able to make to the future success of the combined
organization. I look forward to working with the rest of the
management team in the continued evolution of these companies --
able to accomplish much more together than either of us could
possibly achieve alone.”
Fourth Quarter Financial Results (See
Matters Impacting Comparability and Presentation
below)Home Health (HH) segment net revenues increased by
35.5% or $38.0 million to $145.1 million from $107.1 million in the
prior year and episodic admissions grew by 39.0% to 29,336 from
21,106. Net revenue and episodic admissions in the CHS-JV
acquisition were $42.5 million and 8,107, respectively.
Excluding the CHS-JV, episodic admissions grew by approximately
1%.
Home Health segment contribution before
corporate expenses increased $4.9 million, or 36.0%, to $18.5
million from $13.6 million in the prior year with contribution
margins as a percentage of revenue remaining consistent at
12.7%.
Other Home-Based Services (OHBS) segment net
revenues increased $5.6 million or 13.7% to $46.3 million in 2017
from $40.7 million, primarily as a result of the 15 hospice
facilities acquired in the CHS-JV transaction. Hospice
revenues were $7.7 million for the quarter. Personal care
revenues were down $1.7 million or 4.3% 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 decreased $1.2 million, or 27.6% to $3.1 million from $4.3
million for the same period last year, primarily as a result of the
prior year including an abnormally low bad debt
provision.
Healthcare Innovations (HCI) segment net
revenues increased $3.6 million or 62.8% in 2017 to $9.3 million in
2017 as compared to $5.7 million in 2016. The Company’s ACO
enablement operations recorded shared savings incentive revenue of
$2.3 million from multiple ACOs participating in the Medicare
Shared Savings Program. ACOs managed by the Company saved the
Medicare program a total of $25 million in the measurement
period. The Company’s assessment business revenues grew $0.8
million, or 14.8% as assessment volumes grew by 34%. As a
result, operating income for the HCI segment increased $2.7 million
to $3.3 million, up from $0.6 million in the prior year.
Corporate expenses as a percentage of revenue
decreased to 4.2% in 2017 from 4.7% in 2016. Deal,
transition and other costs were $12.3 million, primarily due to LHC
merger transaction costs including approximately $4.0 million for
external transaction services and $2.5 million for performance
based management incentive programs. Other deal, transition
and other cost drivers primarily relate to the final full quarter
of implementation and training costs for our HH segment conversion
to the Homecare Homebase information system.
We recorded a tax benefit of $7.8 million in the
fourth quarter of 2017 due to a favorable $9.5 million impact from
the 2017 Tax Cuts and Jobs Act (Tax Act) partially offset by a
negative $1.3 million impact from certain non-deductible, LHC
merger related costs. Excluding the impact of these items in
2017, our tax expense and effective tax rate would have been $0.4
million and 39.5% for the quarter.
The Tax Act was signed into law on December 22,
2017, is effective for our fiscal 2018 and will reduce our U.S.
corporate tax rate from 35% to 21% in 2018. The Tax Act also
resulted in the current year revaluation of our Deferred tax
liabilities at the lower tax rate causing a one-time benefit of
approximately $9.5 million. We expect our effective tax rate
to approximate 26.5% in 2018.
Increased average shares outstanding from the
Company’s late January 2017 sale of common shares reduced Adjusted
EPS for the fourth quarter of 2017 by $0.18 as compared to
2016. The fourth quarter is fully reflective of the dilutive
effect of this offering.
Full Year Financial Results (See Matters
Impacting Comparability and Presentation below)Home Health
segment net revenues increased by $151 million or 34.7% to $586
million from $435 million in the prior year and episodic admissions
grew by 40.4% to 118,535 from 84,401 in 2016, primarily due to the
CHS-JV acquisition. Net revenue and episodic admissions in
the CHS-JV were $167.7 million and 32,714, respectively.
Excluding the CHS-JV, episodic admissions grew by approximately 2%,
which was reduced by the impact of the Hurricanes. Volume
growth was partially offset by a net effective 1% Medicare rate cut
and the impact of the Hurricanes.
HH segment contribution before corporate
expenses increased $19.0 million, or 33.6%, to $75.6 million from
$56.6 million in the prior year period. Home Health
contribution margins as a percentage of revenue decreased slightly
to 12.9% from 13.0% in the prior year due to the combined impact of
a 1% Medicare rate cut and an annual cost of living wage rate
adjustment of 2%, both effective January 1, 2017.
OHBS segment net revenues increased $22.2
million or 13.7% to $184.8 million from $162.6 million, primarily
as a result of the 15 hospice facilities acquired in the CHS-JV
transaction. Hospice revenues were $29.8 million.
Personal care revenues were down $6.4 million or 4.0% 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 $1.0 million or 7.7%, as
compared to the same period of last year.
HCI segment net revenues increased slightly to
$26.1 million in 2017 from $26.0 million in 2016. Increases
in both ACO Management membership fees and Assessment Services
revenue largely offset a $1.9 million reduction in ACO shared
savings payments revenue in 2017 versus the prior year. As
such, HCI operating income before corporate expenses decreased $1.6
million to $4.0 million in 2017.
Each of our operating segments experienced
prolonged disruption during the third quarter of 2017 as a result
of Hurricanes Irma and Harvey (the “Hurricanes”), with our Home
Health segment operations in Florida the most severely
affected. The Hurricanes reduced operating income by
approximately $3.3 million, largely on lost volume.
Corporate expenses as a percentage of revenue
decreased 0.1% to 4.5% in 2017. Deal, transition and other
costs were $29.4 million, largely driven by transaction costs of
the LHC merger and the CHS-JV acquisition, in addition to the
conversion of the HH segment to the Homecare Homebase information
system. Unused fees associated with our larger credit
facility and higher loan cost amortization increased interest
expense to $7.4 million from $6.3 million in the prior
year.
Net cash from operating activities of $30.5
million was generated in 2017. Accounts receivable days sales
outstanding were 57 at the end of the fourth quarter of 2017, as
compared to 64 days in the third quarter of 2017 and 57 at the end
of the fourth quarter of 2016. The decline in days
outstanding from prior quarter was driven by the prior quarter
including delays related to our conversion to Homecare Homebase and
legacy system run-out.
We recorded a net tax benefit of $2.1 million in
our fiscal 2017 period due to a positive $9.5 million impact from
the 2017 Tax Cuts and Jobs Act (Tax Act); excluding this Tax Act
impact our tax expense and effective tax rate would have been $7.4
million and 40.5%, respectively. The 2016 full-year effective
tax rate was 38.4%. The increase from 2016 was largely due to
an increase in the ratio of permanent items to pre-tax income
driven largely by merger related differences. We currently
estimate that our effective tax rate will approximate 26.5% in
2018.
Increased average shares outstanding from the
Company’s late January 2017 sale of common shares reduced Adjusted
EPS for 2017 by $0.63.
Matters Impacting Comparability and
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.
In the first quarter in 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.
Other Developments Medicare
LegislationThe Bipartisan Budget Act of 2018, enacted in
February 2018, has the following provisions impacting health care
services provided at home:
- Restores the 3% home health rate add-on for patients who reside
in rural geographies, effective January 1, 2018. The add-on
rate will be phased downward over a five year period following a
formula specified in the legislation.
- Mandates the development of a new case mix model for home
health services using a 30 day payment period, through a
transparent process including the home health industry and
Congressional committees of Medicare jurisdiction. The law
requires any new case mix model to be implemented in 2020 in a
budget neutral manner.
- Face-to-face documentation improvements allowing the home
health medical record in its entirety to be used to support the
physician’s attestation of medical necessity.
- A study to be conducted by the GAO (Government Accounting
Office) on Medicare improvements to address the needs of the
chronically ill including the provision of services provided at
home, including interdisciplinary care management, tele-health and
tele-monitoring for managed care plans, requiring states to better
integrate Medicare and Medicaid services for the dually eligible
and extension of the Independence at Home Demonstration
Program.
- A specific home health market basket annual inflationary update
percentage of 1.5% for FY2020, leaving intact the full market
basket update (generally expected to be between 2% and 3%) for
FY2019.
Wage InflationEffective with the start of
FY2018 the Company implemented a 2% cost of living wage increase
for eligible employees.
ALMOST FAMILY, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Unaudited)(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Quarter ended |
|
Year ended |
|
December 29, 2017 |
|
December 30, 2016 |
|
December 29, 2017 |
|
December 30, 2016 |
Net service
revenues |
$ |
200,618 |
|
|
$ |
153,427 |
|
|
$ |
796,965 |
|
|
$ |
623,541 |
Cost of service
revenues (excluding depreciation & amortization) |
|
105,297 |
|
|
|
83,475 |
|
|
|
419,394 |
|
|
|
335,472 |
Gross margin |
|
95,321 |
|
|
|
69,952 |
|
|
|
377,571 |
|
|
|
288,069 |
General and
administrative expenses: |
|
|
|
|
|
|
|
Salaries
and benefits |
|
55,273 |
|
|
|
42,222 |
|
|
|
223,016 |
|
|
|
168,356 |
Other |
|
23,680 |
|
|
|
16,458 |
|
|
|
95,932 |
|
|
|
72,430 |
Deal,
transition & other costs |
|
12,283 |
|
|
|
4,387 |
|
|
|
29,405 |
|
|
|
11,842 |
Total
general and administrative expenses |
|
91,236 |
|
|
|
63,067 |
|
|
|
348,353 |
|
|
|
252,628 |
Operating income |
|
4,085 |
|
|
|
6,885 |
|
|
|
29,218 |
|
|
|
35,441 |
Interest
expense, net |
|
1,597 |
|
|
|
1,599 |
|
|
|
7,391 |
|
|
|
6,285 |
Income before
noncontrolling interests and income taxes |
|
2,488 |
|
|
|
5,286 |
|
|
|
21,827 |
|
|
|
29,156 |
Net
income - noncontrolling interests |
|
1,477 |
|
|
|
(170 |
) |
|
|
3,523 |
|
|
|
519 |
Income
before income tax expense |
|
1,011 |
|
|
|
5,456 |
|
|
|
18,304 |
|
|
|
28,637 |
Income
tax (benefit) expense |
|
(7,823 |
) |
|
|
1,864 |
|
|
|
(2,110 |
) |
|
|
10,984 |
Net income attributable
to Almost Family, Inc. |
$ |
8,834 |
|
|
$ |
3,592 |
|
|
$ |
20,414 |
|
|
$ |
17,653 |
|
|
|
|
|
|
|
|
Per share
amounts-basic: |
|
|
|
|
|
|
|
Average
shares outstanding |
|
13,809 |
|
|
|
10,162 |
|
|
|
13,539 |
|
|
|
10,153 |
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.64 |
|
|
$ |
0.35 |
|
|
$ |
1.51 |
|
|
$ |
1.74 |
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
Average
shares outstanding |
|
14,014 |
|
|
|
10,330 |
|
|
|
13,757 |
|
|
|
10,346 |
|
|
|
|
|
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
0.63 |
|
|
$ |
0.35 |
|
|
$ |
1.48 |
|
|
$ |
1.71 |
|
|
|
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands)
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
11,310 |
|
|
$ |
10,110 |
|
|
Accounts
receivable - net |
|
|
125,860 |
|
|
|
99,212 |
|
|
Prepaid
expenses and other current assets |
|
|
14,514 |
|
|
|
11,432 |
|
|
TOTAL
CURRENT ASSETS |
|
|
151,684 |
|
|
|
120,754 |
|
|
PROPERTY AND EQUIPMENT
- NET |
|
|
15,246 |
|
|
|
10,732 |
|
|
GOODWILL |
|
|
390,754 |
|
|
|
305,476 |
|
|
OTHER INTANGIBLE ASSETS
- NET |
|
|
145,522 |
|
|
|
85,063 |
|
|
TRANSACTION
DEPOSIT |
|
|
— |
|
|
|
128,930 |
|
|
ASSETS HELD FOR
SALE |
|
|
3,800 |
|
|
|
— |
|
|
OTHER ASSETS |
|
|
10,812 |
|
|
|
7,757 |
|
|
TOTAL ASSETS |
|
$ |
717,818 |
|
|
$ |
658,712 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
22,049 |
|
|
$ |
12,122 |
|
|
Accrued
other liabilities |
|
|
50,182 |
|
|
|
39,728 |
|
|
Current
portion - Seller Notes |
|
|
4,961 |
|
|
|
— |
|
|
TOTAL
CURRENT LIABILITIES |
|
|
77,192 |
|
|
|
51,850 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
|
Revolving
credit facility |
|
|
100,254 |
|
|
|
262,456 |
|
|
Deferred
tax liabilities |
|
|
18,595 |
|
|
|
21,145 |
|
|
Seller
notes, net of current portion |
|
|
7,800 |
|
|
|
12,500 |
|
|
Other
liabilities |
|
|
7,424 |
|
|
|
6,581 |
|
|
TOTAL
LONG-TERM LIABILITIES |
|
|
134,073 |
|
|
|
302,682 |
|
|
TOTAL LIABILITIES |
|
|
211,265 |
|
|
|
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; 14,243 and 10,504 issued
and outstanding |
|
|
1,425 |
|
|
|
1,051 |
|
|
Treasury
stock, at cost, 251 and 117 shares |
|
|
(10,453 |
) |
|
|
(3,258 |
) |
|
Additional paid-in capital |
|
|
294,448 |
|
|
|
141,233 |
|
|
Retained
earnings |
|
|
184,309 |
|
|
|
163,763 |
|
|
Almost
Family, Inc. stockholders' equity |
|
|
469,729 |
|
|
|
302,789 |
|
|
Noncontrolling interests - nonredeemable |
|
|
34,568 |
|
|
|
(865 |
) |
|
TOTAL STOCKHOLDERS’
EQUITY |
|
|
504,297 |
|
|
|
301,924 |
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
717,818 |
|
|
$ |
658,712 |
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(In
thousands)
|
|
|
|
|
Year ended |
|
December 29, 2017 |
|
December 30, 2016 |
Cash flows from
operating activities: |
|
|
|
Net
income attributable to Almost Family, Inc. |
$ |
20,414 |
|
|
$ |
17,653 |
|
Net
income attributable to noncontrolling interests |
|
3,523 |
|
|
|
519 |
|
Income
before noncontrolling interests |
|
23,937 |
|
|
|
18,172 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
5,916 |
|
|
|
4,445 |
|
Provision
for uncollectible accounts |
|
14,526 |
|
|
|
11,708 |
|
Stock-based compensation |
|
5,468 |
|
|
|
2,760 |
|
Loan
costs amortization |
|
954 |
|
|
|
336 |
|
Deferred
income taxes |
|
(2,550 |
) |
|
|
8,725 |
|
|
|
48,251 |
|
|
|
46,146 |
|
Change in certain net
assets and liabilities, net of the effects of acquisitions: |
|
|
|
Accounts
receivable |
|
(19,664 |
) |
|
|
(18,701 |
) |
Prepaid
expenses and other current assets |
|
(2,242 |
) |
|
|
(377 |
) |
Other
assets |
|
(3,966 |
) |
|
|
(1,215 |
) |
Accounts
payable and accrued expenses |
|
8,151 |
|
|
|
(1,410 |
) |
Net cash provided by
operating activities |
|
30,530 |
|
|
|
24,443 |
|
|
|
|
|
Cash flows of investing
activities: |
|
|
|
Capital
expenditures |
|
(6,112 |
) |
|
|
(6,206 |
) |
Transaction deposit |
|
128,930 |
|
|
|
(128,930 |
) |
Acquisitions, net of cash acquired |
|
(130,808 |
) |
|
|
(31,486 |
) |
Net cash used in
investing activities |
|
(7,990 |
) |
|
|
(166,622 |
) |
|
|
|
|
Cash flows of financing
activities: |
|
|
|
Credit
facility borrowings |
|
245,471 |
|
|
|
389,328 |
|
Credit
facility repayments, net |
|
(407,673 |
) |
|
|
(240,662 |
) |
Debt
issuance fees |
|
(25 |
) |
|
|
(3,900 |
) |
Distribution of capital |
|
(128 |
) |
|
|
- |
|
Proceeds
from stock offering, net |
|
143,905 |
|
|
|
- |
|
Proceeds
from stock option exercises |
|
4,344 |
|
|
|
230 |
|
Purchase
of common stock in connection with share awards |
|
(7,195 |
) |
|
|
(527 |
) |
Tax
impact of share awards |
|
- |
|
|
|
353 |
|
Principal
payments on notes payable and capital leases |
|
(39 |
) |
|
|
(55 |
) |
Net cash (used in)
provided by financing activities |
|
(21,340 |
) |
|
|
144,767 |
|
|
|
|
|
Net change in cash and
cash equivalents |
|
1,200 |
|
|
|
2,588 |
|
Cash and cash
equivalents at beginning of period |
|
10,110 |
|
|
|
7,522 |
|
Cash and cash
equivalents at end of period |
$ |
11,310 |
|
|
$ |
10,110 |
|
|
|
|
|
ALMOST FAMILY, INC. AND
SUBSIDIARIESRESULTS OF
OPERATIONS(Unaudited)(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Net service
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
$ |
145,108 |
|
|
72.3 % |
|
|
$ |
107,068 |
|
|
69.8 % |
|
|
$ |
|
38,040 |
|
|
35.5 % |
|
|
Other
Home-Based Services |
|
|
46,257 |
|
|
23.1 % |
|
|
|
40,675 |
|
|
26.5 % |
|
|
|
|
5,582 |
|
|
13.7 % |
|
|
Healthcare Innovations |
|
|
9,253 |
|
|
4.6 % |
|
|
|
5,684 |
|
|
3.7 % |
|
|
|
|
3,569 |
|
|
62.8 % |
|
|
|
|
|
200,618 |
|
|
100.0 % |
|
|
|
153,427 |
|
|
100.0 % |
|
|
|
|
47,191 |
|
|
30.8 % |
|
|
Operating income before
corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
|
18,500 |
|
|
12.7 % |
|
|
|
13,599 |
|
|
12.7 % |
|
|
|
|
4,901 |
|
|
36.0 % |
|
|
Other
Home-Based Services |
|
|
3,111 |
|
|
6.7 % |
|
|
|
4,296 |
|
|
10.6 % |
|
|
|
|
(1,185) |
|
|
(27.6 )% |
|
|
Healthcare Innovations |
|
|
3,250 |
|
|
35.1 % |
|
|
|
559 |
|
|
9.8 % |
|
|
|
|
2,691 |
|
|
NM |
|
|
|
|
|
24,861 |
|
|
12.4 % |
|
|
|
18,454 |
|
|
12.0 % |
|
|
|
|
6,407 |
|
|
34.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
8,493 |
|
|
4.2 % |
|
|
|
7,182 |
|
|
4.7 % |
|
|
|
|
1,311 |
|
|
18.3 % |
|
|
Deal, transition and
other costs |
|
|
12,283 |
|
|
6.1 % |
|
|
|
4,387 |
|
|
2.9 % |
|
|
|
|
7,896 |
|
|
180.0 % |
|
|
Operating income |
|
|
4,085 |
|
|
2.0 % |
|
|
|
6,885 |
|
|
4.5 % |
|
|
|
|
(2,800) |
|
|
(40.7 )% |
|
|
Interest expense,
net |
|
|
1,597 |
|
|
0.8 % |
|
|
|
1,599 |
|
|
1.0 % |
|
|
|
|
(2) |
|
|
(0.1 )% |
|
|
Net income -
noncontrolling interests |
|
|
1,477 |
|
|
0.7 % |
|
|
|
(170) |
|
|
(0.1)% |
|
|
|
|
1,647 |
|
|
NM |
|
|
Net income before
income taxes |
|
|
1,011 |
|
|
0.5 % |
|
|
|
5,456 |
|
|
3.6 % |
|
|
|
|
(4,445) |
|
|
(81.5 )% |
|
|
Income tax (benefit)
expense |
|
|
(7,823) |
|
|
(3.9)% |
|
|
|
1,864 |
|
|
1.2 % |
|
|
|
|
(9,687) |
|
|
NM |
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
8,834 |
|
|
4.4 % |
|
|
$ |
3,592 |
|
|
2.3 % |
|
|
$ |
|
5,242 |
|
|
145.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
18,361 |
|
|
9.2 % |
|
|
$ |
13,344 |
|
|
8.7 % |
|
|
$ |
|
5,017 |
|
|
37.6 % |
|
|
Adjusted net income
(1) |
|
$ |
8,044 |
|
|
4.0 % |
|
|
$ |
6,274 |
|
|
4.1 % |
|
|
$ |
|
1,770 |
|
|
28.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Net service
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
$ |
586,070 |
|
|
73.5 % |
|
|
$ |
434,968 |
|
69.8% |
|
$ |
|
151,102 |
|
|
34.7 % |
|
|
Other
Home-Based Services |
|
|
184,752 |
|
|
23.2 % |
|
|
|
162,546 |
|
26.1% |
|
|
|
22,206 |
|
|
13.7 % |
|
|
Healthcare Innovations |
|
|
26,143 |
|
|
3.3 % |
|
|
|
26,027 |
|
4.2% |
|
|
|
116 |
|
|
0.4 % |
|
|
|
|
|
796,965 |
|
|
100.0 % |
|
|
|
623,541 |
|
100.0% |
|
|
|
173,424 |
|
|
27.8 % |
|
|
Operating income before
corporate expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
Health |
|
|
75,587 |
|
|
12.9 % |
|
|
|
56,564 |
|
13.0% |
|
|
|
19,023 |
|
|
33.6 % |
|
|
Other
Home-Based Services |
|
|
14,555 |
|
|
7.9 % |
|
|
|
13,519 |
|
8.3% |
|
|
|
1,036 |
|
|
7.7 % |
|
|
Healthcare Innovations |
|
|
4,046 |
|
|
15.5 % |
|
|
|
5,657 |
|
21.7% |
|
|
|
(1,611) |
|
|
(28.5 )% |
|
|
|
|
|
94,188 |
|
|
11.8 % |
|
|
|
75,740 |
|
12.1% |
|
|
|
18,448 |
|
|
24.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
35,565 |
|
|
4.5 % |
|
|
|
28,457 |
|
4.6% |
|
|
|
7,108 |
|
|
25.0 % |
|
|
Deal, transition and
other costs |
|
|
29,405 |
|
|
3.7 % |
|
|
|
11,842 |
|
1.9% |
|
|
|
17,563 |
|
|
148.3 % |
|
|
Operating income |
|
|
29,218 |
|
|
3.7 % |
|
|
|
35,441 |
|
5.7% |
|
|
|
(6,223) |
|
|
(17.6 )% |
|
|
Interest expense,
net |
|
|
7,391 |
|
|
0.9 % |
|
|
|
6,285 |
|
1.0% |
|
|
|
1,106 |
|
|
17.6 % |
|
|
Net income -
noncontrolling interests |
|
|
3,523 |
|
|
0.4 % |
|
|
|
519 |
|
0.1% |
|
|
|
3,004 |
|
|
NM |
|
|
Net income before
income taxes |
|
|
18,304 |
|
|
2.3 % |
|
|
|
28,637 |
|
4.6% |
|
|
|
(10,333) |
|
|
(36.1 )% |
|
|
Income tax (benefit)
expense |
|
|
(2,110) |
|
|
(0.3 )% |
|
|
|
10,984 |
|
1.8% |
|
|
|
(13,094) |
|
|
NM |
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
20,414 |
|
|
2.6 % |
|
|
$ |
17,653 |
|
2.8% |
|
$ |
|
2,761 |
|
|
15.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
$ |
67,965 |
|
|
8.5 % |
|
|
$ |
54,552 |
|
8.7% |
|
$ |
|
13,413 |
|
|
24.6 % |
|
|
Adjusted net income
(1) |
|
$ |
28,864 |
|
|
3.6 % |
|
|
$ |
24,640 |
|
4.0% |
|
$ |
|
4,224 |
|
|
17.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Non-GAAP
Financial Measures below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME HEALTH OPERATING
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Locations |
|
|
242 |
|
|
|
|
168 |
|
|
|
|
74 |
|
|
44.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
39,580 |
|
|
|
|
25,946 |
|
|
|
|
13,634 |
|
|
52.5 % |
|
|
Census |
|
|
31,166 |
|
|
|
|
22,210 |
|
|
|
|
8,956 |
|
|
40.3 % |
|
|
Visits |
|
|
916,968 |
|
|
|
|
686,982 |
|
|
|
|
229,986 |
|
|
33.5 % |
|
|
Cost per
visit |
|
$ |
78 |
|
|
|
$ |
77 |
|
|
|
$ |
2 |
|
|
2.0 % |
|
|
G&A
expense per census |
|
$ |
1,761 |
|
|
|
$ |
1,836 |
|
|
|
$ |
(75) |
|
|
(4.1 )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
29,336 |
|
|
|
|
21,106 |
|
|
|
|
8,230 |
|
|
39.0 % |
|
|
Census |
|
|
23,617 |
|
|
|
|
17,827 |
|
|
|
|
5,790 |
|
|
32.5 % |
|
|
Episodes |
|
|
44,567 |
|
|
|
|
32,428 |
|
|
|
|
12,139 |
|
|
37.4 % |
|
|
Visits |
|
|
716,603 |
|
|
|
|
566,227 |
|
|
|
|
150,376 |
|
|
26.6 % |
|
|
Revenue (in thousands) |
|
$ |
121,420 |
|
83.7% |
|
$ |
94,255 |
|
88.0% |
|
$ |
27,165 |
|
|
28.8 % |
|
|
Revenue
per episode |
|
$ |
2,724 |
|
|
|
|
2,907 |
|
|
|
$ |
(182) |
|
|
(6.3 )% |
|
|
Visits
per episode |
|
|
16.1 |
|
|
|
|
17.5 |
|
|
|
|
(1.4) |
|
|
(7.9 )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
10,244 |
|
|
|
|
4,840 |
|
|
|
|
5,404 |
|
|
111.7 % |
|
|
Census |
|
|
7,549 |
|
|
|
|
4,383 |
|
|
|
|
3,166 |
|
|
72.2 % |
|
|
Visits |
|
|
200,365 |
|
|
|
|
120,755 |
|
|
|
|
79,610 |
|
|
65.9 % |
|
|
Revenue (in thousands) |
|
$ |
23,688 |
|
16.3% |
|
$ |
12,813 |
|
12.0% |
|
$ |
10,875 |
|
|
84.9 % |
|
|
Revenue
per visit |
|
$ |
118 |
|
|
|
$ |
106 |
|
|
|
$ |
12 |
|
|
11.4 % |
|
|
Visits
per admission |
|
|
19.6 |
|
|
|
|
24.9 |
|
|
|
|
(5.4) |
|
|
(21.6 )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME HEALTH OPERATING
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
Change |
|
|
|
Amount |
|
% Rev |
|
Amount |
|
% Rev |
|
Amount |
|
% |
|
Locations |
|
|
242 |
|
|
|
|
168 |
|
|
|
|
74 |
|
|
44.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
payors: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
159,079 |
|
|
|
|
107,576 |
|
|
|
|
51,503 |
|
|
47.9 % |
|
|
Census |
|
|
31,224 |
|
|
|
|
22,980 |
|
|
|
|
8,244 |
|
|
35.9 % |
|
|
Visits |
|
|
3,729,562 |
|
|
|
|
2,870,277 |
|
|
|
|
859,285 |
|
|
29.9 % |
|
|
Cost per
visit |
|
$ |
77 |
|
|
|
$ |
74 |
|
|
|
$ |
3 |
|
|
3.9 % |
|
|
G&A
expense per census |
|
$ |
7,149 |
|
|
|
$ |
7,209 |
|
|
|
$ |
(60) |
|
|
(0.8 )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
118,535 |
|
|
|
|
84,401 |
|
|
|
|
34,134 |
|
|
40.4 % |
|
|
Census |
|
|
23,874 |
|
|
|
|
17,894 |
|
|
|
|
5,980 |
|
|
33.4 % |
|
|
Episodes |
|
|
178,540 |
|
|
|
|
130,003 |
|
|
|
|
48,537 |
|
|
37.3 % |
|
|
Visits |
|
|
2,933,044 |
|
|
|
|
2,317,540 |
|
|
|
|
615,504 |
|
|
26.6 % |
|
|
Revenue (in thousands) |
|
$ |
498,075 |
|
85.0% |
|
$ |
379,701 |
|
87.3% |
|
$ |
118,374 |
|
|
31.2 % |
|
|
Revenue
per episode |
|
$ |
2,790 |
|
|
|
|
2,921 |
|
|
|
$ |
(131) |
|
|
(4.5 )% |
|
|
Visits
per episode |
|
|
16.4 |
|
|
|
|
17.8 |
|
|
|
|
(1.4) |
|
|
(7.8 )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-episodic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
40,544 |
|
|
|
|
23,175 |
|
|
|
|
17,369 |
|
|
74.9 % |
|
|
Census |
|
|
7,350 |
|
|
|
|
5,086 |
|
|
|
|
2,264 |
|
|
44.5 % |
|
|
Visits |
|
|
796,518 |
|
|
|
|
552,737 |
|
|
|
|
243,781 |
|
|
44.1 % |
|
|
Revenue (in thousands) |
|
$ |
87,995 |
|
15.0% |
|
$ |
55,267 |
|
12.7% |
|
$ |
32,728 |
|
|
59.2 % |
|
|
Revenue
per visit |
|
$ |
110 |
|
|
|
$ |
100 |
|
|
|
$ |
10 |
|
|
10.5 % |
|
|
Visits
per admission |
|
|
19.6 |
|
|
|
|
23.9 |
|
|
|
|
(4.2) |
|
|
(17.6 )% |
|
|
OTHER HOME-BASED SERVICES OPERATING
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
|
December 29, 2017 |
|
|
December 30, 2016 |
|
|
Change |
|
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% |
|
Personal
Care: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
75 |
|
|
|
|
|
76 |
|
|
|
|
|
(1) |
|
|
(1.3 )% |
|
|
Admissions |
|
|
2,283 |
|
|
|
|
|
1,996 |
|
|
|
|
|
287 |
|
|
14.4 % |
|
|
Census |
|
|
12,406 |
|
|
|
|
|
13,333 |
|
|
|
|
|
(927) |
|
|
(7.0 )% |
|
|
Hours of
service |
|
|
1,771,444 |
|
|
|
|
|
1,878,853 |
|
|
|
|
|
(107,409) |
|
|
(5.7 )% |
|
|
Hours per
patient per week |
|
|
11.0 |
|
|
|
|
|
10.8 |
|
|
|
|
|
0.1 |
|
|
1.3 % |
|
|
Revenue (in thousands) |
|
$ |
38,563 |
|
83.4% |
|
|
$ |
40,292 |
|
99.1% |
|
|
$ |
(1,729) |
|
|
(4.3 )% |
|
|
Operating
income (in thousands) |
|
$ |
2,613 |
|
|
|
|
$ |
4,224 |
|
|
|
|
$ |
(1,611) |
|
|
(38.1 )% |
|
|
Revenue
per hour |
|
$ |
21.77 |
|
|
|
|
$ |
21.44 |
|
|
|
|
$ |
0.32 |
|
|
1.5 % |
|
|
Cost per
hour |
|
$ |
13.33 |
|
|
|
|
$ |
13.15 |
|
|
|
|
$ |
0.18 |
|
|
1.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospice: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
16 |
|
|
|
|
|
1 |
|
|
|
|
|
15 |
|
|
NM |
|
|
Admissions |
|
|
691 |
|
|
|
|
|
15 |
|
|
|
|
|
676 |
|
|
NM |
|
|
Census |
|
|
491 |
|
|
|
|
|
30 |
|
|
|
|
|
461 |
|
|
NM |
|
|
Length of
stay |
|
|
65 |
|
|
|
|
|
54 |
|
|
|
|
|
11 |
|
|
19.7 % |
|
|
Revenue (in thousands) |
|
$ |
7,693 |
|
16.6% |
|
|
$ |
383 |
|
0.9% |
|
|
$ |
7,310 |
|
|
NM |
|
|
Operating
income (in thousands) |
|
$ |
498 |
|
|
|
|
$ |
72 |
|
|
|
|
$ |
426 |
|
|
NM |
|
|
Revenue
per day |
|
$ |
172 |
|
|
|
|
$ |
141 |
|
|
|
|
$ |
31 |
|
|
22.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
|
|
December 29, 2017 |
|
|
December 30, 2016 |
|
|
Change |
|
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% Rev |
|
|
Amount |
|
% |
|
Personal
Care: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
75 |
|
|
|
|
|
76 |
|
|
|
|
|
(1) |
|
|
(1.3 )% |
|
|
Admissions |
|
|
9,420 |
|
|
|
|
|
9,671 |
|
|
|
|
|
(251) |
|
|
(2.6 )% |
|
|
Census |
|
|
12,603 |
|
|
|
|
|
13,216 |
|
|
|
|
|
(613) |
|
|
(4.6 )% |
|
|
Hours of
service |
|
|
7,197,211 |
|
|
|
|
|
7,538,223 |
|
|
|
|
|
(341,012) |
|
|
(4.5 )% |
|
|
Hours per
patient per week |
|
|
11.0 |
|
|
|
|
|
11.0 |
|
|
|
|
|
0.0 |
|
|
0.1 % |
|
|
Revenue (in thousands) |
|
$ |
154,937 |
|
83.9% |
|
|
$ |
161,367 |
|
99.3% |
|
|
$ |
(6,430) |
|
|
(4.0 )% |
|
|
Operating
income (in thousands) |
|
$ |
10,102 |
|
|
|
|
$ |
13,509 |
|
|
|
|
$ |
(3,407) |
|
|
(25.2 )% |
|
|
Revenue
per hour |
|
$ |
21.53 |
|
|
|
|
$ |
21.41 |
|
|
|
|
$ |
0.12 |
|
|
0.6 % |
|
|
Cost per
hour |
|
$ |
13.19 |
|
|
|
|
$ |
13.15 |
|
|
|
|
$ |
0.04 |
|
|
0.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospice: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locations |
|
|
16 |
|
|
|
|
|
1 |
|
|
|
|
|
15 |
|
|
NM |
|
|
Admissions |
|
|
2,879 |
|
|
|
|
|
97 |
|
|
|
|
|
2,782 |
|
|
NM |
|
|
Census |
|
|
482 |
|
|
|
|
|
23 |
|
|
|
|
|
459 |
|
|
NM |
|
|
Length of
stay |
|
|
61 |
|
|
|
|
|
42 |
|
|
|
|
|
19 |
|
|
NM |
|
|
Revenue (in thousands) |
|
$ |
29,815 |
|
16.1% |
|
|
$ |
1,179 |
|
0.7% |
|
|
$ |
28,636 |
|
|
NM |
|
|
Operating
income (in thousands) |
|
$ |
4,453 |
|
|
|
|
$ |
10 |
|
|
|
|
$ |
4,443 |
|
|
NM |
|
|
Revenue
per day |
|
$ |
170 |
|
|
|
|
$ |
141 |
|
|
|
|
$ |
29 |
|
|
20.3 % |
|
|
HEALTHCARE INNOVATIONS SUPPLEMENTAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 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
(in thousands) |
|
$ |
3,119 |
|
$ |
339 |
|
|
$ |
2,780 |
|
NM |
|
Operating
(loss) income (in thousands) |
|
$ |
1,834 |
|
$ |
(247 |
) |
|
$ |
2,081 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment
Services |
|
|
|
|
|
|
|
|
|
|
|
|
Assessments |
|
|
26,000 |
|
|
19,400 |
|
|
|
6,600 |
|
34.0 |
% |
Revenue
(in thousands) |
|
$ |
6,134 |
|
$ |
5,345 |
|
|
$ |
789 |
|
14.8 |
% |
Operating
income (in thousands) |
|
$ |
1,416 |
|
$ |
806 |
|
|
$ |
610 |
|
75.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
|
December 29, 2017 |
|
December 30, 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
(in thousands) |
|
$ |
5,076 |
|
$ |
5,294 |
|
$ |
(218) |
|
|
(4.1 )% |
|
|
Operating
(loss) income (in thousands) |
|
$ |
479 |
|
$ |
2,714 |
|
$ |
(2,235) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment
Services |
|
|
|
|
|
|
|
|
|
|
|
|
Assessments |
|
|
87,948 |
|
|
75,814 |
|
|
12,134 |
|
|
16.0 % |
|
|
Revenue
(in thousands) |
|
$ |
21,067 |
|
$ |
20,733 |
|
$ |
334 |
|
|
1.6 % |
|
|
Operating
income (in thousands) |
|
$ |
3,567 |
|
$ |
2,943 |
|
$ |
624 |
|
|
21.2 % |
|
|
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 |
|
Year ended |
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
December 29, 2017 |
|
December 30, 2016 |
|
Net income
attributable to Almost Family, Inc. |
|
$ |
8,834 |
|
|
$ |
3,592 |
|
|
$ |
20,414 |
|
|
$ |
17,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other costs |
|
|
12,283 |
|
|
|
4,387 |
|
|
|
29,405 |
|
|
|
11,842 |
|
|
Taxes |
|
|
(13,073 |
) |
|
|
(1,705 |
) |
|
|
(20,955 |
) |
|
|
(4,855 |
) |
|
Deal,
transition and other costs, net of tax |
|
|
(790 |
) |
|
|
2,682 |
|
|
|
8,450 |
|
|
|
6,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
8,044 |
|
|
$ |
6,274 |
|
|
$ |
28,864 |
|
|
$ |
24,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts-diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding |
|
|
14,014 |
|
|
|
10,330 |
|
|
|
13,757 |
|
|
|
10,346 |
|
|
Merger
transaction related |
|
|
38 |
|
|
|
- |
|
|
|
38 |
|
|
|
- |
|
|
Adjusted average shares
outstanding |
|
|
13,976 |
|
|
|
10,330 |
|
|
|
13,719 |
|
|
|
10,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Almost Family, Inc. |
|
$ |
0.63 |
|
|
$ |
0.35 |
|
|
$ |
1.49 |
|
|
$ |
1.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addbacks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deal,
transition and other costs, net of tax |
|
|
(0.06 |
) |
|
|
0.26 |
|
|
|
0.62 |
|
|
|
0.68 |
|
|
Adjusted net income
attributable to Almost Family, Inc. |
|
$ |
0.58 |
|
|
$ |
0.61 |
|
|
$ |
2.10 |
|
|
$ |
2.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 are significant components in understanding
and evaluating financial performance and liquidity.
Management routinely calculates and communicates Adjusted EBITDA
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 |
|
Year ended |
|
|
|
December 29, 2017 |
|
December 30, 2016 |
|
December 29, 2017 |
|
|
December 30, 2016 |
|
Net income |
|
$ |
8,834 |
|
|
$ |
3,592 |
|
|
$ |
20,414 |
|
|
|
$ |
17,653 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income - noncontrolling interests |
|
|
1,477 |
|
|
|
(170 |
) |
|
|
3,523 |
|
|
|
|
519 |
|
Interest
expense |
|
|
1,597 |
|
|
|
1,599 |
|
|
|
7,391 |
|
|
|
|
6,285 |
|
Income
tax (benefit) expense |
|
|
(7,823 |
) |
|
|
1,864 |
|
|
|
(2,110 |
) |
|
|
|
10,984 |
|
Franchise
taxes |
|
|
257 |
|
|
|
171 |
|
|
|
954 |
|
|
|
|
625 |
|
Depreciation and amortization |
|
|
879 |
|
|
|
1,154 |
|
|
|
5,438 |
|
|
|
|
3,909 |
|
Stock-based compensation |
|
|
857 |
|
|
|
747 |
|
|
|
2,950 |
|
|
|
|
2,735 |
|
Deal,
transition and other costs |
|
|
12,283 |
|
|
|
4,387 |
|
|
|
29,405 |
|
|
|
|
11,842 |
|
Adjusted EBITDA |
|
$ |
18,361 |
|
|
$ |
13,344 |
|
|
$ |
67,965 |
|
|
|
$ |
54,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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; changes to the
Medicare Shared Savings Programs; 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.”
This press release is for informational purposes only and
does not constitute an offer to sell or the solicitation of an
offer to buy and securities or a solicitation of any vote or
approval.
About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a
leading provider of home healthcare services, with over 330 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
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