LOUISVILLE, Ky., May 6, 2014 /PRNewswire/ -- Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the three months ended March 31, 2014.

First Quarter Highlights:


    --  Record net service revenues of $120.0 million
    --  Net income attributable to Almost Family, Inc. of $1.3 million, or $0.13
        per diluted share
    --  Diluted EPS from continuing operations of $0.14 including $0.20 of
        acquisition related expenses, excluding which diluted EPS would have
        been $0.34
    --  Visiting Nurse segment net revenues were $95.7 million and Personal Care
        segment revenues were $24.3 million
    --  Results include a full quarter of operating results from the acquisition
        of SunCrest on December 6, 2013 which added $0.13 to diluted EPS from
        continuing operations for the quarter

Comments on First Quarter 2014 Results
William Yarmuth, Chief Executive Officer, commented on the quarter: "We are pleased with our results for the quarter. Our integration of SunCrest continues on target and we remain focused on adapting our operations to the challenges presented by the initiation of rebasing. We continue to be extremely positive about the opportunity our SunCrest operations present for the long term growth of our organization. We strongly believe home health care will play an ever increasing role in managing health care costs and we will continue to look to acquisitions in this area as a key component of our approach to building shareholder value."

Steve Guenthner, President, added: "Consistent with the statements in our 2013 year-end release, we experienced some disruption of admission volumes in the highly competitive Florida market, where we have meaningful overlap with our acquired SunCrest branches. We will continue to work through this expected integration challenge over the balance of 2014. The Medicare rebasing adjustments to home health reimbursement will force us to address every opportunity to control costs without compromising the quality of care we provide to our patients. That is a challenge that we are currently addressing and on which we will continue to focus as we move forward."

Yarmuth concluded: "We want to thank our nearly 12,000 caring employees for their commitment and dedication to improving the lives of our patients, while helping us prudently and efficiently manage the costs of providing these critical patient services."

The Company noted that rate cuts resulting from Medicare's previously announced rebasing of home health reimbursement rates are being phased in over the four-year period from 2014 through 2017.

First Quarter Financial Results
Almost Family reported first quarter results that included a full quarter of operating results for the following acquisitions, as compared to our results for the first quarter of 2013:


    --  The December 6, 2013 acquisition of SunCrest added $33.8 million to
        revenue ($29.9 million VN and $3.9 million PC) and $0.13 to diluted EPS
        from continuing operations.
    --  As previously disclosed, one-time transaction costs, severance,
        wind-down, lease abandonment and transition costs related to the
        SunCrest transaction are expected to be between $7 million and $8
        million incurred over the period from closing through the end of 2014. 
        Approximately $3.1 million ($0.20 per diluted share) of such costs were
        incurred in the quarter ended March 31, 2014.
    --  The July 19, 2013 acquisition of Indiana Home Care Network added $2.6
        million of revenue to the VN segment and $0.01 to diluted EPS from
        continuing operations
    --  The October 4, 2013 acquisition of our 61% interest in Imperium lowered
        diluted EPS from continuing operations by $0.01.  Operating costs of
        $243,000 associated with Imperium are included in our corporate
        expenses.  Imperium did not generate any material revenue in the period.

Medicare rate cuts, from sequestration for episodes ending after March 31, 2013, combined with 2014's rebasing cuts, reduced revenue and operating income by $1.8 million and diluted EPS from continuing operations by $0.12. VN segment Medicare admissions decreased organically by 5.8%, primarily in our Florida operations where we have overlap with SunCrest operations. Our PC segment hours of service and revenues grew by 5.3% organically and 8.0% through acquisition.

Our effective tax rate for the first quarter of 2014 was 41.5% compared to 37.1% for the first quarter of 2013. The higher year to date 2014 income tax rate from continuing operations was primarily due to a benefit recognized in the first quarter of 2013 resulting from the January 2, 2013 retroactive extension of the Work Opportunity Tax Credit (WOTC). The WOTC has not yet been extended for 2014.

Discontinued Operations
In the first quarter of 2014, the Company's VN segment exited a market in the Northeast through the closure of a branch location. In conjunction with the SunCrest acquisition, the Company acquired some operations which had been discontinued prior to acquisition. During the quarter ended June 30, 2013, the Company completed the sale of two Alabama locations, which operated in the VN segment. The operations and any related gain on sale for these operations were reclassified from continuing operations into discontinued operations for all periods presented.


                ALMOST FAMILY, INC. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF INCOME

                             (UNAUDITED)

                (In thousands, except per share data)


                                                  Three Months Ended March 31,
                                                 ----------------------------

                                                         2014                  2013
                                                         ----                  ----

     Net service
      revenues                                       $120,032               $85,453

     Cost of service
      revenues
      (excluding                                       65,532                45,445
          depreciation & amortization)
                                                                                ---

     Gross margin                                      54,500                40,008

     General and administrative expenses:

     Salaries and
      benefits                                         33,658                24,351

     Other                                             15,409                10,368

     Deal and
      transition
      costs                                             3,115                    11
                                                        -----                   ---

     Total general
      and
      administrative
      expenses                                         52,182                34,730

     Operating income                                   2,318                 5,278

     Interest
      expense, net                                       (347)                  (18)
                                                         ----                   ---

     Income before
      income taxes                                      1,971                 5,260

     Income tax
      expense                                            (817)               (1,950)
                                                         ----                ------

     Net income from
      continuing
      operations                                        1,154                 3,310


     Discontinued operations:

     Loss from operations, net

      of tax of ($48)
       and ($51)                                          (70)                  (63)

     Gain on sale,
      net of tax                                            -                     -
                                                          ---                   ---

     Loss on
      discontinued
      operations                                          (70)                  (63)
                                                          ---                   ---

     Net income                                         1,084                 3,247

     Net loss -
      noncontrolling
      interests                                           189                     -
                                                          ---                   ---

     Net income
      attributable to
      Almost Family,
      Inc.                                             $1,273                $3,247
                                                       ======                ======


     Per share amounts-basic:

     Average shares
      outstanding                                       9,293                 9,254

     Income from
      continuing
      operations
      attributable to
      Almost Family,
      Inc.                                              $0.14                 $0.36

     Discontinued
      operations                                        (0.01)                (0.01)
                                                        -----                 -----

     Net income
      attributable to
      Almost Family,
      Inc.                                              $0.13                 $0.35
                                                        =====                 =====


     Per share amounts-diluted:

     Average shares
      outstanding                                       9,426                 9,338

     Income from
      continuing
      operations
      attributable to
      Almost Family,
      Inc.                                              $0.14                 $0.36

     Discontinued
      operations                                        (0.01)                (0.01)
                                                        -----                 -----

     Net income
      attributable to
      Almost Family,
      Inc.                                              $0.13                 $0.35
                                                        =====                 =====


                                 ALMOST FAMILY, INC. AND SUBSIDIARIES

                                      CONSOLIDATED BALANCE SHEETS

                                            (In thousands)


                                                  March 31, 2014

                      ASSETS                       (UNAUDITED)            December 31, 2013
                                                    ----------            -----------------

     CURRENT
      ASSETS:

     Cash and
      cash
      equivalents                                                 $8,359               $12,246

     Accounts
      receivable
      -net                                                        62,367                61,651

     Prepaid
      expenses
      and other
      current
      assets                                                       8,708                10,278

     Deferred tax
      assets                                                      13,532                11,532
                                                                  ------                ------

     TOTAL
      CURRENT
      ASSETS                                                      92,966                95,707


     PROPERTY AND
      EQUIPMENT -
      NET                                                          7,450                 8,142

     GOODWILL                                                    193,208               192,575

     OTHER
      INTANGIBLE
      ASSETS                                                      55,052                55,075

     OTHER ASSETS                                                    718                   774
                                                                     ---                   ---

     TOTAL ASSETS                                               $349,394              $352,273
                                                                ========              ========


                   LIABILITIES
                        AND
                   STOCKHOLDERS'
                      EQUITY

     CURRENT
      LIABILITIES:

     Accounts
      payable                                                    $10,688               $11,526

     Accrued
      other
      liabilities                                                 37,654                38,916

     Current
      portion -
      notes
      payable and
      capital
      leases                                                         167                   702
                                                                     ---                   ---

     TOTAL
      CURRENT
      LIABILITIES                                                 48,509                51,144


     LONG-TERM
      LIABILITIES:

     Revolving
      credit
      facility                                                    53,000                56,000

     Deferred tax
      liabilities                                                 27,081                25,580

     Other
      liabilities                                                  1,680                 1,856
                                                                   -----                 -----

     TOTAL LONG-
      TERM
      LIABILITIES                                                 81,761                83,436

     TOTAL
      LIABILITIES                                                130,270               134,580


      NONCONTROLLING
      INTEREST -
      REDEEMABLE                                                   3,639                 3,639


      STOCKHOLDERS'
      EQUITY:

     Preferred
      stock, par
      value
      $0.05;
      authorized

     2,000
      shares;
      none issued
      or
      outstanding                                                      -                     -

     Common
      stock, par
      value
      $0.10;
      authorized

     25,000;
      9,542 and
      9,500

     issued and
      outstanding                                                    954                   950

     Treasury
      stock, at
      cost, 92
      and 91
      shares                                                      (2,393)               (2,340)

     Additional
      paid-in
      capital                                                    104,161               103,858

      Noncontrolling
      interest -
      nonredeemable                                                 (299)                 (203)

     Retained
      earnings                                                   113,062               111,789
                                                                 -------               -------

     TOTAL
      STOCKHOLDERS'
      EQUITY                                                     215,485               214,054

     TOTAL
      LIABILITIES
      AND
      STOCKHOLDERS'
      EQUITY                                                    $349,394              $352,273
                                                                ========              ========


                                                                           ALMOST FAMILY, INC. AND SUBSIDIARIES

                                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                       (UNAUDITED)

                                                                                      (In thousands)

                                                                                                                 Three Months Ended March 31,
                                                                                                                ----------------------------

                                                                                                                       2014               2013
                                                                                                                       ----               ----

     Cash flows from operating activities:

     Net income                                                                                                      $1,084             $3,247

     Loss on discontinued operations, net of tax                                                                        (70)               (63)
                                                                                                                        ---                ---

     Net income from continuing operations                                                                            1,154              3,310

     Adjustments to reconcile income to net cash provided by operating activities:

     Depreciation and amortization                                                                                    1,102                627

     Provision for uncollectible accounts                                                                             2,144              1,036

     Stock-based compensation                                                                                           414                287

     Deferred income taxes                                                                                             (362)                90

                                                                                                                      4,452              5,350

     Change in certain net assets and liabilities, net of the effects of acquisitions:

     Accounts receivable                                                                                             (2,907)              (366)

     Prepaid expenses and other current assets                                                                        1,554              1,624

     Other assets                                                                                                        55                 52

     Accounts payable and accrued expenses                                                                           (2,770)             2,714
                                                                                                                     ------              -----

     Net cash provided by operating activities                                                                          384              9,374
                                                                                                                        ---              -----


     Cash flows from investing activities:

     Capital expenditures                                                                                              (350)              (688)

     Acquisitions, net of cash acquired                                                                                   -                  -
                                                                                                                        ---                ---

     Net cash used in investing activities                                                                             (350)              (688)
                                                                                                                       ----               ----


     Cash flows from financing activities:

     Credit facility repayments                                                                                      (3,000)                 -

     Proceeds from stock options exercises                                                                               39                  -

     Purchase of common stock in connection with share awards                                                           (52)                 -

     Tax impact of share awards                                                                                         (54)                 -

     Payment of special dividend                                                                                        (35)                 -

     Principal payments on notes payable and capital leases                                                            (558)                 -

     Net cash used in financing activities                                                                           (3,660)                 -
                                                                                                                     ------                ---


     Cash flows from discontinued operations

     Operating activities                                                                                              (261)              (168)

     Investing activities                                                                                                 -                 (2)
                                                                                                                        ---                ---

     Net cash used in discontinued operations                                                                          (261)              (170)
                                                                                                                       ----               ----


     Net change in cash and cash equivalents                                                                         (3,887)             8,516

     Cash and cash equivalents at beginning of period                                                                12,246             26,120

     Cash and cash equivalents at end of period                                                                      $8,359            $34,636
                                                                                                                     ======            =======


                                                       ALMOST FAMILY, INC. AND SUBSIDIARIES

                                                               RESULTS OF OPERATIONS

                                                                    (UNAUDITED)

                                                                  (In thousands)


                                                 Three Months Ended March 31,
                                                ----------------------------

                                                          2014                      2013                      Change
                                                          ----                      ----                     ------

                                                Amount                 % Rev                 Amount           % Rev         Amount           %
                                               ------                  -----                ------            -----        ------           ---

    Net service revenues:

     Visiting Nurse                                    $95,756                79.8%                 $66,551          77.9%         $29,205       43.9%

     Personal Care                                      24,276                20.2%                  18,902          22.1%           5,374       28.4%
                                                        ------                                       ------                          -----

                                                       120,032               100.0%                  85,453         100.0%          34,579       40.5%
                                                       -------                                       ------                         ------

    Operating income before corporate

    expenses:

     Visiting Nurse                                      9,507                 9.9%                   8,337          12.5%           1,170       14.0%

     Personal Care                                       2,524                10.4%                   1,998          10.6%             526       26.3%
                                                         -----                                        -----                            ---

                                                        12,031                10.0%                  10,335          12.1%           1,696       16.4%

    Deal and transition costs                            3,115                 2.6%                      11           0.0%           3,104         NM

    Corporate expenses                                   6,598                 5.5%                   5,046           5.9%           1,552       30.8%
                                                         -----                                        -----                          -----

    Operating income                                     2,318                 1.9%                   5,278           6.2%          (2,960)     -56.1%

    Interest expense, net                                 (347)               -0.3%                     (18)          0.0%            (329)        NM

    Income tax expense                                    (817)               -0.7%                  (1,950)         -2.3%           1,133      -58.1%
                                                          ----                                       ------                          -----

    Net income from continuing operations               $1,154                 1.0%                  $3,310           3.9%         $(2,156)     -65.1%
                                                        ======                                       ======                        =======


    Adjusted EBITDA from continuing operations          $6,949                 5.8%                  $6,203           7.3%            $746       12.0%


                                           ALMOST FAMILY, INC. AND SUBSIDIARIES

                                         VISITING NURSE SEGMENT OPERATING METRICS


                                            Three Months Ended March 31,
                                            ----------------------------

                                                          2014                               2013      Change


                                               Amount                             Amount               Amount          %
                                               ------                             ------               ------          ---

    Average number of locations                            172                                102                  70       68.6%


    All payors:

    Patient months                                      81,451                             54,582              26,869       49.2%

    Admissions                                          25,189                             16,253               8,936       55.0%

    Billable visits                                    656,976                            469,291             187,685       40.0%


    Medicare:

    Admissions                                          22,475         89%                 14,956  92%          7,519       50.3%

    Revenue (in thousands)                             $88,872         93%                $61,738  93%        $27,134       44.0%

    Revenue per admission                               $3,954                             $4,128               $(174)      -4.2%

    Billable visits                                    570,864         87%                400,783  85%        170,081       42.4%

    Recertifications                                    11,880                              7,960               3,920       49.2%

    Payor mix % of Admissions

    Traditional Medicare Episodic                         83.3%                              91.0%               -7.7%

     Replacement Plans Paid Episodically                   3.1%                               2.6%                0.5%

     Replacement Plans Paid Per Visit                     13.6%                               6.4%                7.2%


    Non-Medicare:

    Admissions                                           2,714         11%                  1,297   8%          1,417      109.3%

    Revenue (in thousands)                              $6,884          7%                 $4,814   7%         $2,070       43.0%

    Revenue per admission                               $2,536                             $3,712             $(1,175)     -31.7%

    Billable visits                                     86,112         13%                 68,508  15%         17,604       25.7%

    Recertifications                                     1,514                              1,337                 177       13.2%

    Payor mix % of Admissions

    Medicaid & other governmental                         23.8%                              28.5%               -4.7%

    Private payors                                        76.2%                              71.5%                4.7%



                                          PERSONAL CARE OPERATING METRICS


                                           Three Months Ended March 31,
                                           ----------------------------

                                                          2014                               2013      Change
                                                          ----                               ----      ------

                                               Amount                             Amount               Amount          %
                                               ------                             ------               ------          ---

    Average number of locations                             61                                 61                   -        0.0%


    Admissions                                           1,436                              1,089                 347       31.9%

    Patient months of care                              19,594                             17,339               2,255       13.0%

    Billable hours                                   1,267,045                          1,069,437             197,608       18.5%

    Revenue per billable hour                           $19.16                             $17.67               $1.48        8.4%

Non-GAAP Financial Measure
The 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 EBITDA
Earnings before interest, income taxes, depreciation and amortization (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 is commonly used as an analytical indicator within our industry to evaluate performance, measure leverage capacity and debt service ability, and to estimate current or prospective enterprise value. Adjusted EBITDA is also used in certain covenants contained in our credit agreement.

The following tables set forth a reconciliation of net income to Adjusted EBITDA:



           ALMOST FAMILY, INC. AND SUBSIDIARIES

            RECONCILIATION OF ADJUSTED EBITDA

                      (In thousands)


                                      Three Months Ended March 31,
                                      ----------------------------

    (in thousands)                           2014                 2013
                                             ----                 ----

    Net income from continuing
     operations                            $1,154               $3,310

    Add back:

    Interest expense                          347                   18

    Income tax expense                        817                1,950

    Depreciation and
     amortization                           1,102                  627

    Amortization of stock-
     based compensation                       414                  287

    Earnings before interest,
     income taxes, depreciation
     and amortization (EBITDA)
     from continuing operations             3,834                6,192

    Deal and transition costs               3,115                   11

    Adjusted EBITDA from
     continuing operations                 $6,949               $6,203
                                           ======               ======

About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Ohio, Tennessee, Kentucky, Connecticut, New Jersey, Massachusetts, Indiana, Pennsylvania, Georgia, Missouri, Illinois, Mississippi and Alabama (in order of revenue significance). Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment and a personal care segment. Almost Family operates over 230 branch locations in fourteen U.S. states.

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 including obtaining synergies, integration objectives and anticipated timelines; 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 December 31, 2013, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and "Risk Factors." With regard to the Company's recent investment in Imperium, in particular given that it is a development stage enterprise, there can be no assurance that its operational and developmental objectives will be realized or that any savings in healthcare spending or any participation in Medicare Shared Savings Program payments will be realized. The Company undertakes no obligation to update or revise its forward-looking statements.





    Almost Family, Inc.    The Ruth Group

    Steve Guenthner        Investor Relations

    (502) 891-1000         Nick Laudico

                           (646) 536-7030

                           nlaudico@theruthgroup.com

SOURCE Almost Family, Inc.