Almost Family : Reports First Quarter 2016 Financial Results

Microsoft Word - afam_EX99_1 Q1 2016 Earnings release FINAL

Almost Family, Inc. Steve Guenthner (502) 891-1000

Exhibit 99.1

FOR IMMEDIATE RELEASE May 4, 2016

Almost Family Reports First Quarter 2016 Results Louisville, KY, May 4, 2016 - Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the quarter ended April 1, 2016.

First Quarter Highlights:

• Record Net service revenues of approximately $153.7 million with record revenues in all three segments

• Adjusted earnings from home health operations(1) of $6.0 million, $0.59 per diluted share versus $0.51 in the first quarter of 2015 an increase of 16% despite an 8% increase in diluted

  shares outstanding

• Adjusted EBITDA from home health operations(1) of $13.2 million

• GAAP Net income, including deal and transition costs, attributable to Almost Family, Inc. of

  $3.9 million, $0.38 per diluted share versus $0.46 in the first quarter of 2015

• Healthcare Innovations segment performed nearly 16,000 in home assessments and has nearly 122,000 ACO beneficiaries through 15 Accountable Care Organizations under contract

• Operating cash flow of $5.6 million

(1) See Non-GAAP Financial Measures starting on page 8

Management Comments William Yarmuth, Chairman and Chief Executive Officer, commented: "As we continue through the integration process of a very prolific acquisition pace in late 2015 and early 2016 we are very pleased with the overall performance of our business and the execution of our strategic development and growth plans. We are happy to be reporting record revenues in all three of our business segments and we're extremely excited and optimistic about our prospects for future growth." Steve Guenthner, President added: "During this period of relative regulatory stability we have been, and are, able to make key investments in all our segments for growth, innovation and improvement in patient care. Both our access to capital and the M&A environment remain positive and we are continuing to work diligently to find, make and carefully integrate acquisitions that meet our stringent investment criteria." Yarmuth concluded: "Once again, we welcome the newest members of our growing family of healthcare providers joining us with the LTS and Bayonne VNA acquisitions completed during the quarter. We also thank our over 13,000 dedicated employees for their unwavering commitment and intense focus on providing high quality patient care, particularly those dealing with transition and integration of recent acquisitions." First Quarter Financial Results

VN segment net revenues increased $10.1 million to a record $109.6 million from $99.5 million in the prior year and total Medicare admissions grew by 6% to 25,205 from 23,722 primarily due to home health agencies acquired in late 2015 and early 2016. VN segment contribution increased $2.6 million, or 20.8%, to $15.0 million, from $12.4 million in the prior year period. Contribution margin as a percentage of revenue thus increased to 13.7% from 12.5%. On a same-store basis, Medicare admissions outside of Florida grew organically by 2.5%. Within Florida, same store Medicare admissions in Florida in the first quarter of 2016 were 7.2% below the first quarter of 2015 which was was the Company's all-time high-water mark for Florida Medicare admissions. Florida Medicare admissions in the first quarter of 2016 were 7.1% higher than the fourth quarter of 2015. Florida accounted for approximately one-fourth of the Company's Medicare admissions in the first quarter of 2016.

PC segment net revenues increased $10.9 million or 38.0% to a record $39.7 million in 2016 from

$28.8 million in 2015 primarily due to acquisitions. PC segment contribution increased 29.0% or

$0.8 million as compared to the same period of last year.

Healthcare Innovations (HCI) segment net revenues increased $4.3 million to a record $4.4 million, in 2016 from $0.1 million in 2015, as acquired LTS and Ingenios revenues were $4.2 million. The first quarter of the year has historically been seasonally lower than the other three quarters in these assessment businesses. LTS was acquired in January 2016 and Ingenios was acquired in July 2015. The Company continues to expect the HCI segment to be profitable for 2016.

Corporate expenses as a percentage of revenue declined to 5.0%, from 5.4% in the prior year period, while deal, transition and other costs grew to $2.6 million for 2016, primarily as a result of costs related to 2016 and 2015 acquisitions. Borrowings related to acquisition activity in late 2015 and early 2016 also increased interest expense to $1.3 million, from $0.4 million in the prior year period.

Net cash from operating activities of $5.6 million was generated in the first quarter of 2016. Home Health accounts receivable days sales outstanding were 56 at the end of the first quarter of 2016 as compared to 62 at the end of the first quarter of 2015.

The effective tax rate for the first quarter of 2016 and 2015 was 40.5%.

The Company noted that it will continue to pursue quality acquisitions of in-home health care service providers consistent with its stated strategy and the types of services its segments currently provide.

ALMOST FAMILY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (UNAUDITED) Three month period ended

April 1, 2016	April 3, 2015
Net service revenues	$ 153,698	$ 128,399
Cost of service revenues (excluding depreciation & amortization)	82,232	68,327
Gross margin	71,466	60,072
General and administrative expenses:
Salaries and benefits	41,676	36,393
Other	19,445	15,810
Deal and transition costs	2,609	406
Total general and administrative expenses	63,730	52,609
Operating income	7,736	7,463
Interest expense, net	(1,332)	(447)
Income before income taxes	6,404	7,016
Income tax expense	(2,677)	(2,987)
Net income	3,727	4,029
Net loss (income) - noncontrolling interests	190	365
Net income attributable to Almost Family, Inc.	$ 3,917	$ 4,394

Average shares outstanding	10,089	9,353
Net income attributable to Almost Family, Inc.	$ 0.39	$ 0.47

Per share amounts-basic:

Per share amounts-diluted:

Average shares outstanding 10,260 9,521

Net income attributable to Almost Family, Inc. $ 0.38 $ 0.46