ALMOST FAMILY INC 
By Second Quarter Financial Results
Almost Family reported second quarter 2008 net service revenues of
Net income for the second quarter of 2008 was
The number of days sales outstanding in accounts receivable, or DSO, for
the three months ended
Second Quarter Segment Results
Net revenues in the Visiting Nurse segment for the second quarter of 2008
were
Net revenues in the Personal Care (PC) segment for the second quarter of
2008 were
Six Month Period Ended
Almost Family reported net service revenues for the six month period ended
Net income for the six month period was
Six Month Period Segment Results
Net revenues in the Visiting Nurse (VN) segment for the six month period
of 2008 were
Net revenues in the Personal Care (PC) segment for the six month period
were
Recent Corporate Developments
On
On
On
On
On
On
Conference Call
A conference call to review the results will begin today at
A live webcast of the call will also be available from the Investor
Relations section on the corporate web site at http://www.almostfamily.com. A
webcast replay can be accessed on the corporate web site beginning August 5,
2008 at approximately 12:00 p.m. ET and will remain available until September
5, 2008.
Almost Family, Inc. The Ruth Group
Steve Guenthner Investor Relations
(502) 891-1000 Stephanie Carrington / Jared Hoffman
(646) 536-7017 / 7013
scarrington@theruthgroup.com
jhoffman@theruthgroup.com
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended June 30,
2008 2007
Net service revenues $48,700,372 $32,509,503
Cost of service revenue 22,780,475 15,541,684
Gross margin 25,919,897 16,967,819
General and administrative expenses:
Salaries and benefits 12,988,447 8,835,801
Other 6,261,283 4,616,580
Total general and administrative
expenses 19,249,730 13,452,381
Operating income 6,670,167 3,515,438
Interest expense, net (170,756) (241,220)
Income from continuing operations
before income taxes 6,499,411 3,274,218
Income tax expense (2,600,457) (1,310,738)
Net income from continuing
operations 3,898,954 1,963,480
Discontinued operations, net of tax
of ($22,619) and $2,348 (34,936) 17,642
Net income $3,864,018 $1,981,122
Per share amounts-basic:
Average shares outstanding 7,642,806 5,433,679
Income from continued operations $0.51 $0.36
Loss from discontinued operations - -
Net income $0.51 $0.36
Per share amounts-diluted:
Average shares outstanding 7,809,475 5,638,665
Income from continued operations $0.50 $0.35
Loss from discontinued operations - -
Net income $0.50 $0.35
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six months ended June 30,
2008 2007
Net service revenues $87,727,325 $64,282,682
Cost of service revenue 41,402,549 30,979,221
Gross margin 46,324,776 33,303,461
General and administrative expenses:
Salaries and benefits 23,540,855 17,681,653
Other 11,664,808 8,886,067
Total general and administrative
expenses 35,205,663 26,567,720
Operating income 11,119,113 6,735,741
Interest expense, net (378,757) (496,928)
Income from continuing operations
before income taxes 10,740,356 6,238,813
Income tax expense (4,266,792) (2,450,052)
Net income from continuing
operations 6,473,564 3,788,761
Discontinued operations, net of tax
of ($50,902) and ($35,048) (78,620) (141,348)
Net income $6,394,944 $3,647,413
Per share amounts-basic:
Average shares outstanding 6,592,203 5,400,946
Income from continued operations $0.98 $0.70
Loss from discontinued operations (0.01) (0.03)
Net income $0.97 $0.67
Per share amounts-diluted:
Average shares outstanding 6,753,403 5,602,962
Income from continued operations $0.96 $0.68
Loss from discontinued operations (0.01) (0.03)
Net income $0.95 $0.65
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2008
ASSETS (UNAUDITED) December 31, 2007
CURRENT ASSETS:
Cash and cash equivalents $16,480,426 $473,222
Accounts receivable - net 25,011,813 16,965,316
Prepaid expenses and other current
assets 1,824,294 1,203,454
Deferred tax assets 2,811,047 1,829,895
TOTAL CURRENT ASSETS 46,127,580 20,471,887
PROPERTY AND EQUIPMENT - NET 1,877,916 1,458,844
GOODWILL AND OTHER INTANGIBLE ASSETS 58,795,818 45,155,300
OTHER ASSETS 287,046 274,359
TOTAL ASSETS $107,088,360 $67,360,390
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,281,899 $3,943,555
Accrued other liabilities 9,810,654 10,369,346
Current portion - capital leases and
notes payable 4,596,945 653,891
TOTAL CURRENT LIABILITIES 17,689,498 14,966,792
LONG-TERM LIABILITIES:
Revolving credit facility - 12,386,783
Notes payable 3,000,000 4,000,000
Long-term deferred tax liabilities 1,481,750 776,672
Other liabilities 417,006 388,230
TOTAL LONG-TERM LIABILITIES 4,898,756 17,551,685
TOTAL LIABILITIES 22,588,254 32,518,477
STOCKHOLDERS EQUITY:
Preferred stock, par value $0.05;
authorized 2,000,000 shares; none
issued or outstanding - -
Common stock, par value $0.10;
authorized 10,000,000 shares;
8,131,790 and 7,808,819
issued and outstanding 813,179 780,882
Treasury stock, at cost, 2,276,898
shares - (8,877,641)
Additional paid-in capital 64,551,981 30,198,671
Retained earnings 19,134,946 12,740,001
TOTAL STOCKHOLDERS' EQUITY 84,500,106 34,841,913
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $107,088,360 $67,360,390
ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended June 30,
2008 2007
Cash flows from operating
activities:
Net income $6,394,944 $3,647,413
Loss from discontinued operations (78,620) (141,348)
Income from continuing operations 6,473,564 3,788,761
Adjustments to reconcile income from
continuing operations to
net cash provided by operating
activities:
Depreciation and amortization 642,674 428,888
Provision for uncollectible accounts 1,221,959 402,711
Stock-based compensation 333,332 202,371
Deferred income taxes (276,073) 355,771
8,395,456 5,178,502
Change in certain net current
assets, net of the effects of
acquisitions:
(Increase) decrease in:
Accounts receivable (6,787,893) (2,600,820)
Prepaid expenses and other current
assets (577,650) (247,401)
Other assets (12,687) (29,519)
Increase (decrease) in:
Accounts payable and accrued
expenses 397,696 165,801
Net cash provided by operating
activities 1,414,922 2,466,563
Cash flows from investing
activities:
Capital expenditures (322,053) (272,855)
Acquisitions, net of cash acquired (14,493,231) (547,599)
Net cash used in investing
activities (14,815,284) (820,454)
Cash flows from financing
activities:
Net revolving credit facility
repayments (12,387,721) (1,178,323)
Proceeds from stock option exercises 42,800 107,187
Purchase of common stock in
connection with option exercises - (3,804,883)
Tax benefit from non-qualified stock
option exercises 78,667 677,954
Proceeds from stock offering 41,808,449 -
Principal payments on capital leases
and notes payable (56,009) (1,013,720)
Net cash provided by (used in)
financing activities 29,486,186 (5,211,785)
Cash flows from discontinued
operations
Operating Activities (78,620) (141,348)
Investing Activities - -
Financing Activities - -
Net cash used in discontinued
operations (78,620) (141,348)
Net increase (decrease) in cash and
cash equivalents 16,007,204 (3,707,024)
Cash and cash equivalents at
beginning of period 473,222 4,125,592
Cash and cash equivalents at end of
period $16,480,426 $418,568
Summary of non-cash investing and
financing activities:
Acquisitions funded by notes payable $3,000,000 $-
Acquisitions funded by stock $1,000,000 $-
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Three months ended June 30,
2008 2007 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurse $38,857,909 79.8% $23,460,195 72.2% $15,397,714 65.6%
Personal
Care 9,842,463 20.2% 9,049,308 27.8% 793,155 8.8%
48,700,372 100.0% 32,509,503 100.0% 16,190,869 49.8%
Operating
income
Visiting
Nurse 8,586,003 22.1% 4,566,721 19.5% 4,019,282 88.0%
Personal
Care 820,534 8.3% 1,052,642 11.6% (232,108) -22.1%
Operating
income before
unallocated
corporate
expenses 9,406,537 19.3% 5,619,363 17.3% 3,787,174 67.4%
Corporate
expenses 2,736,370 5.6% 2,103,925 6.5% 632,445 30.1%
Operating
income 6,670,167 13.7% 3,515,438 10.8% 3,154,729 87.7%
Interest
expense, net (170,756) 0.4% (241,220) 0.7% 70,464 -29.2%
Income taxes (2,600,457) 5.3% (1,310,738) 4.0% (1,289,719) 98.4%
Net income
from continuing
operations $3,898,954 8.0% $1,963,480 6.0% $1,953,474 98.6%
EBITDA from
continuing
operations $7,214,248 14.8% $3,864,105 11.9% $3,350,143 86.7%
ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
Six months ended June 30,
2008 2007 Change
Amount % Rev Amount % Rev Amount %
Net revenues
Visiting
Nurse $68,696,167 78.3% $46,508,313 72.3% $22,187,854 47.7%
Personal
Care 19,031,158 21.7% 17,774,368 27.7% 1,256,789 7.1%
87,727,325 100.0% 64,282,682 100.0% 23,444,643 36.5%
Operating
income
Visiting
Nurse 14,040,673 20.4% 8,882,511 19.1% 5,158,162 58.1%
Personal
Care 1,562,027 8.2% 1,714,016 9.6% (151,989) -8.9%
Operating
income before
unallocated
corporate
expenses 15,602,700 17.8% 10,596,527 16.5% 5,006,173 47.2%
Corporate
expenses 4,483,587 5.1% 3,860,786 6.0% 622,801 16.1%
Operating
income 11,119,113 12.7% 6,735,741 10.5% 4,383,372 65.1%
Interest
expense, net (378,757) 0.4% (496,928) 0.8% 118,171 -23.8%
Income taxes (4,266,792) 4.9% (2,450,052) 3.8% (1,816,740) 74.2%
Net income
from continuing
operations $6,473,564 7.4% $3,788,761 5.9% $2,684,803 70.9%
EBITDA from
continuing
operations $12,095,119 13.8% $7,367,000 11.5% $4,728,119 64.2%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Three months ended June 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 58 47 11 23.4%
All payors:
Admissions 9,400 7,311 2,089 28.6%
Billable Visits 240,757 143,078 97,679 68.3%
Medicare Statistics:
Revenue $36,428,290 $21,703,970 $14,724,320 67.8%
Percentage of total
revenues 93.7% 92.5%
Billable Visits 222,673 129,704 92,969 71.7%
Admissions 8,638 6,569 2,069 31.5%
Episodes 12,485 8,058 4,427 54.9%
Revenue per episode $2,918 $2,693 $224 8.3%
Visits per episode 18.7 17.3 1.4 8.1%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Three months ended June 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 23 23 - -
Admissions 569 639 (70) -11.0%
Patient Days of Care 131,525 126,515 5,010 4.0%
Billable Hours 518,555 514,586 3,969 0.8%
Revenue per billable hours $18.98 $17.59 $1.39 7.9%
ALMOST FAMILY, INC. AND SUBSIDIARIES
VISITING NURSE SEGMENT OPERATING METRICS
Six months ended June 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 58 47 11 23.4%
All payors:
Admissions 17,810 14,816 2,994 20.2%
Billable Visits 428,097 286,617 141,480 49.4%
Medicare Statistics:
Revenue $64,397,617 $43,261,558 $21,136,059 48.9%
Percentage of total
revenues 93.7% 93.0%
Billable Visits 393,078 260,364 132,714 51.0%
Admissions 16,223 13,375 2,848 21.3%
Episodes 22,839 16,194 6,645 41.0%
Revenue per episode $2,820 $2,671 $149 5.5%
Visits per episode 18.9 17.4 1.5 8.7%
ALMOST FAMILY, INC. AND SUBSIDIARIES
PERSONAL CARE SEGMENT OPERATING METRICS
Six months ended June 30,
2008 2007 Change
Amount Amount Amount %
Average number of locations 23 23 - -
Admissions 1,447 1,451 (4) -0.3%
Patient Days of Care 262,986 250,414 12,572 5.0%
Billable Hours 1,026,106 1,029,175 (3,069) -0.3%
Revenue per billable hours $18.55 $17.27 $1.28 7.4%
Non-GAAP Financial Measure
The information provided in the tables in this release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) rules. In accordance with SEC rules, the Company has provided, in the supplemental information and the footnotes to the tables, a reconciliation of those measures to the most directly comparable GAAP measures.
EBITDA:
EBITDA is defined as income before depreciation and amortization, net
interest expense and income taxes. EBITDA is not a measure of financial
performance under accounting principles generally accepted in
The following tables set forth a reconciliation of Continuing Operations Net Income to EBITDA:
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
RECONCILIATION OF EBITDA: Three months ended June 30,
2008 2007
Net income from continuing
operations $3,898,954 $1,963,480
Add back:
Interest income (expense) 170,756 241,220
Income taxes 2,600,457 1,310,738
Depreciation and amortization 336,791 218,170
Amortization of stock-based
compensation 207,290 130,497
Earnings before interest, income
taxes,
depreciation and amortization
EBITDA)
from continuing operations $7,214,248 $3,864,105
ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF EBITDA
RECONCILIATION OF EBITDA: Six months ended June 30,
2008 2007
Net income from continuing
operations $6,473,564 $3,788,761
Add back:
Interest income (expense) 378,757 496,928
Income taxes 4,266,792 2,450,052
Depreciation and amortization 642,674 428,888
Amortization of stock-based
compensation 333,332 202,371
Earnings before interest, income
taxes,
depreciation and amortization
EBITDA)
from continuing operations $12,095,119 $7,367,000
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations in
Forward Looking Statements
All statements, other than statements of historical facts, included in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," estimate," "project," anticipate," "continue," or similar terms, variations of those terms or the negative of those terms. These forward-looking statements are based on the Company's current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially include: regulatory approvals or third party
consents may not be obtained, the impact of further changes in healthcare
reimbursement systems, including the ultimate outcome of potential changes to
Medicare reimbursement for home health services and to Medicaid reimbursement
due to state budget shortfalls; the ability of the Company to maintain its
level of operating performance and achieve its cost control objectives;
changes in our relationships with referral sources; the ability of the Company
to integrate acquired operations; 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; and the Company's self-insurance risks. For a more complete
discussion regarding these and other factors which could affect the Company's
financial performance, refer to the Company's various filings with the
Securities and Exchange Commission, including its filing on Form 10-K for the
year ended
SOURCE Almost Family, Inc.
