Almost Family, Inc.
Steve Guenthner
(502) 891-1000
 
FOR IMMEDIATE RELEASE
                  Exhibit 99.1
 
 
 
                February 25, 2015
                                                                                                                               

Almost Family Reports Fourth Quarter and Full Year 2014 Results
Announces Agreement to Acquire WillCare in a Separate Release

Louisville, KY, February 25, 2015 – 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 and year ended December 31, 2014.  In a separate release today, the Company also announced an agreement to acquire the stock of WillCare which is the second largest acquisition in the Company’s history.

As previously announced the Company is now, for the first time, reporting operating results for its new HealthCare Innovations segment segregated from Home Health operating results.  Home Health operating results include the Company’s historical Visiting Nurse and Personal Care segments and unallocated corporate expenses.  Earnings from continuing operations are reconciled to the Home Health operating level to provide added visibility for investors.

Fourth Quarter Highlights:
·  
Net service revenues of approximately $125 million
·  
Net income attributable to Almost Family, Inc. of $4.7 million, $0.50 per diluted share
·  
Adjusted earnings from home health operations (1) of $4.5 million, $0.47 per diluted share
·  
Visiting Nurse segment net revenues of $95.7 million and record Personal Care segment revenues of $28.9 million
·  
Acquired SunCrest home health operations incrementally added $0.18 to diluted EPS from continuing operations for the quarter
·  
Same store efficiency gains improved diluted EPS by $0.04, partially offsetting the effects of Medicare rate cuts which reduced diluted EPS by $0.05

Full Year Highlights:
·  
Record net service revenues of $495.8 million
·  
Net income attributable to Almost Family, Inc. of $13.8 million, $1.45 per diluted share
·  
Adjusted earnings from home health operations (1) of $17.1 million, $1.81 per diluted share
·  
Record net revenues in all three segments: $380.8 million for Visiting Nurse, $112.5 million for Personal Care, and $2.5 million for Healthcare Innovations
·  
Acquired SunCrest home health operations added $0.81 to diluted EPS from continuing operations for the year
·  
Transition completed for the largest acquisition in the Company’s history
·  
Same store efficiency gains improved diluted EPS by $0.31, more than offset the effects of Medicare rate cuts which reduced diluted EPS by $0.21
·  
Breakeven results for the Healthcare Innovations segment

(1)  
See “Non-GAAP Financial Measures - Adjusted Earnings from Home Health Operations” on page 12

WillCare Acquisition
In a separate release today, Almost Family announced that it has signed a definitive agreement to acquire the stock of WillCare.  WillCare, based in Buffalo NY, reported $72 million in revenue in 2014 with VN and PC branch locations in New York (11), Connecticut (3) and Ohio (1).  The purchase price is expected to be between $46 and $53 million based on changes in earnings and working capital between now and the expected close sometime in the second half of FY2015 subject to New York approval.  With this acquisition, Almost Family will operate over 230 branches across 15 states and its annual net revenue run rate is expected to approach the $600 million mark. The Company is reporting and commenting on the Willcare acquisition in a separate simultaneously released statement to provide clarity to investors on both its earnings and the transaction separately.

Management Comments
William Yarmuth, Chairman and Chief Executive Officer, made the following comments:  “We are extremely pleased to continue the momentum of our recent activities with today’s announcements.  In addition to our solid 2014 financial performance we are thrilled to announce the second largest transaction in our history, the acquisition of WillCare on the heels of wrapping up our integration of the SunCrest acquisition.  We are excited to have the opportunity to welcome the employees, patients and referral sources of WillCare into our growing family of home health providers.”

In recent releases the Company announced a $175 million expanded credit facility through 2020, a strategic investment in NavHealth a development stage health care technology company and the creation of its new “HealthCare Innovations” reporting segment to better highlight the value of its core home health operations separately from its innovation investments.

Steve Guenthner, President, added: “Our results for the year reflect not only the successful integration of our 2013 acquisitions but also some very nice improvements in organic volume growth and cost controls that helped us partially mitigate the effect of on-going Medicare rate cuts and continue to drive earnings growth.  The expansion of ACO’s, increased focus on inpatient hospital readmission penalties, bundled-payment initiatives and state-level developments, including moves to Medicaid managed care all point to increasing demand for home health services.  Additionally, our M&A track record and capital market and industry relationships continue to position us as a consolidator in home health.”

Yarmuth concluded: “To state the obvious, we are very optimistic about the future of home health care and Almost Family in particular.  We feel the positive regulatory environment, successful integration of SunCrest, acquisition of WillCare, solid progress and relationships with

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 2
February 25, 2015



governmental policy makers, increased access to capital and our commitment to innovation should all combine to fuel great optimism for the future of Almost Family.”

Fourth Quarter Financial Results
Almost Family reported fourth quarter results that included a full quarter of operating results for the following acquisitions, as compared to results for the fourth quarter of 2013:
·  
The December 6, 2013 acquisition of SunCrest incrementally added $24.7 million to revenue ($21.1 million VN and $3.6 million PC) and $0.18 to diluted EPS from continuing operations, as compared to the same period in the prior year.
·  
The October 4, 2013 acquisition of a 61.5% interest in Imperium lowered diluted EPS from continuing operations by $0.01.
·  
A benefit from one-time deal, transition and other approximated $0.7 million ($0.04 per diluted share), as a $1.0 million insurance recovery of previously incurred defense costs more than offset deal costs, primarily related to WillCare.

Improved cost controls, in particular tighter adherence to agency-level labor staffing standards, improved the efficiency of care delivery lowering labor costs on improving volumes improving diluted EPS by $0.04 as compared to the same quarter of last year.

Excluding acquired revenue, Medicare rate cuts from 2014’s rebasing reduced revenue and operating income by $0.9 million and diluted EPS from continuing operations by $0.05.  VN segment Medicare admissions increased organically by 5.0%.

The effective tax rate for the fourth quarter of 2014 was 40.8% compared to 56.6% for the fourth quarter of 2013.  The higher income tax rate in 2013 occurred primarily due to certain deal and transaction costs that were not currently deductible and that did not result in the establishment of a deferred tax asset.  The Company currently anticipates a normalized effective tax rate of 40.5% and has used that rate in the presentation of income and diluted EPS from continuing operations.

Full Year Financial Results
Almost Family reported full year results that included a full twelve months of operating results for the following acquisitions, as compared to results for 2013:
·  
The December 6, 2013 acquisition of SunCrest incrementally added $127.5 million to revenue ($111.3 million VN and $16.2 million PC) and $0.83 to diluted EPS from continuing operations, as compared to the prior year.
·  
Deal, transition and other costs approximated $5.3 million ($0.34 per diluted share) as transition and deal costs, primarily SunCrest, more than offset a $1.0 million insurance recovery of previously incurred defense costs.
·  
The October 4, 2013 acquisition of a 61% interest in Imperium produced break even operating results.

Improved cost controls, in particular tighter adherence to agency-level labor staffing standards, improved the efficiency of care delivery lowering labor costs on improved volumes improving diluted EPS by $0.31 as compared to last year.

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 3
February 25, 2015



Excluding acquired revenue, Medicare rate cuts in the VN segment, from 2014’s rebasing cuts and sequestration for episodes ending after March 31, 2013, reduced revenue and operating income by $3.3 million and diluted EPS from continuing operations by $0.21.  VN segment Medicare admissions increased organically by 1.8%.

The effective tax rate for 2014 was 41.0% compared to 41.2% for 2013.

Reclassification of Segment Reporting
As previously announced the Company has updated its segment reporting to better help investors understand the performance of its core home health operations from its innovation activities.  In addition certain portions of the Company’s home health operations previously reported in its Visiting Nurse Segment have been reclassified to its Personal Care Segment.  These operations, which generated about $11 million in revenue in 2014, have been reclassified in line with changes in the way in which information is provided to the Company’s chief operating decision maker.  Additionally, the Company believes that, due to their long-term and custodial nature and primary reimbursement source (Medicaid) presentation with the Personal Care Segment would be more meaningful to investors.


 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 4
February 25, 2015



ALMOST FAMILY, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME
 
(In thousands, except per share data)
 
   
(UNAUDITED)
                   
                         
   
Three Months Ended
December 31,
   
Twelve Months Ended December 31,
 
   
2014
   
2013
   
2014
   
2013
 
 Net revenues
  $ 124,756     $ 96,587     $ 495,829     $ 356,912  
 Cost of service revenues (excluding
      depreciation & amortization)
    66,390       51,580       263,994       190,548  
 Gross margin
    58,366       45,007       231,835       166,364  
 General and administrative expenses:
                               
 Salaries and benefits
    35,750       27,743       141,359       102,498  
 Other
    15,366       12,644       60,522       44,750  
 Deal, transition and other
    (701 )     3,336       5,312       4,323  
 Total general and administrative expenses
    50,415       43,723       207,193       151,571  
 Operating income
    7,951       1,284       24,642       14,793  
 Interest expense, net
    (362 )     (127 )     (1,435 )     (167 )
 Income before income taxes
    7,589       1,157       23,207       14,626  
 Income tax expense
    (3,266 )     (756 )     (9,511 )     (6,020 )
 Net income from continuing operations
    4,323       401       13,696       8,606  
                                 
 Discontinued operations:
                               
 Loss from operations, net
                               
  of tax of ($5), ($17), ($121) and $882
    -       (254 )     (172 )     (729 )
 Gain on sale, net of tax of $973
    -       3       -       171  
 Loss on discontinued operations
    -       (251 )     (172 )     (558 )
 Net income
    4,323       150       13,524       8,048  
 Net income - noncontrolling interests
    424       178       239       178  
 Net income attributable to Almost Family, Inc.
  $ 4,747     $ 328     $ 13,763     $ 8,226  
                                 
 Per share amounts-basic:
                               
 Average shares outstanding
    9,352       9,308       9,333       9,279  
 Income from continuing operations attributable to Almost Family, Inc.
  $ 0.51     $ 0.06     $ 1.49     $ 0.95  
 Discontinued operations
    -       (0.03 )     (0.02 )     (0.06 )
 Net income attributable to Almost Family, Inc.
  $ 0.51     $ 0.03     $ 1.47     $ 0.89  
                                 
 Per share amounts-diluted:
                               
 Average shares outstanding
    9,474       9,401       9,462       9,374  
 Income from continuing operations attributable to Almost Family, Inc.
  $ 0.50     $ 0.06     $ 1.47     $ 0.94  
 Discontinued operations
    -       (0.03 )     (0.02 )     (0.06 )
 Net income attributable to Almost Family, Inc.
  $ 0.50     $ 0.03     $ 1.45     $ 0.88  

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 5
February 25, 2015




ALMOST FAMILY, INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
   
   
December 31, 2014
       
 ASSETS
 
(UNAUDITED)
   
December 31, 2013
 
 CURRENT ASSETS:
           
 Cash and cash equivalents
  $ 6,886     $ 12,246  
 Accounts receivable - net
    74,894       59,902  
 Prepaid expenses and other current assets
    10,420       9,854  
 Deferred tax assets
    12,772       12,881  
 TOTAL CURRENT ASSETS
    104,972       94,883  
                 
 PROPERTY AND EQUIPMENT - NET
    5,575       8,120  
 GOODWILL
    192,523       192,489  
 OTHER INTANGIBLE ASSETS
    54,402       53,174  
 OTHER ASSETS
    558       775  
 TOTAL ASSETS
  $ 358,030     $ 349,441  
                 
 LIABILITIES AND STOCKHOLDERS' EQUITY
               
 CURRENT LIABILITIES:
               
 Accounts payable
  $ 9,257     $ 12,057  
 Accrued other liabilities
    42,326       42,496  
 Current portion - notes payable and capital leases
    51       702  
 TOTAL CURRENT LIABILITIES
    51,634       55,255  
                 
 LONG-TERM LIABILITIES:
               
 Revolving credit facility
    46,447       56,000  
 Deferred tax liabilities
    24,052       18,661  
 Other
    2,705       1,815  
 TOTAL LONG-TERM LIABILITIES
    73,204       76,476  
 TOTAL LIABILITIES
    124,838       131,731  
                 
 NONCONTROLLING INTEREST - REDEEMABLE -
       HEALTHCARE INNOVATIONS
    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; 9,574 and 9,500
               
 issued and outstanding
    957       950  
 Treasury stock, at cost, 94 and 92 shares of common stock
    (2,393 )     (2,340 )
 Additional paid-in capital
    105,863       103,858  
 Noncontrolling interest - nonredeemable
    (420 )     (186 )
 Retained earnings
    125,546       111,789  
 TOTAL STOCKHOLDERS' EQUITY
    229,553       214,071  
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 358,030     $ 349,441  

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 6
February 25, 2015




ALMOST FAMILY, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(UNAUDITED)
 
(In thousands)
 
   
Twelve months Ended December 31,
 
   
2014
   
2013
 
 Cash flows of operating activities:
           
 Net income
  $ 13,524     $ 8,048  
 Loss on discontinued operations, net of tax
    (172 )     (558 )
 Net income from continuing operations
    13,696       8,606  
 Adjustments to reconcile income to net cash of operating activities:
               
 Depreciation and amortization
    4,103       2,862  
 Provision for uncollectible accounts
    9,413       5,378  
 Stock-based compensation
    1,814       1,465  
 Deferred income taxes
    5,500       2,099  
      34,526       20,410  
 Change in certain net assets and liabilities, net of the effects of acquisitions:
               
 Accounts receivable
    (24,824 )     (4,440 )
 Prepaid expenses and other current assets
    (824 )     4,229  
 Other assets
    215       235  
 Accounts payable and accrued expenses
    (2,431 )     (888 )
 Net cash provided by operating activities
    6,662       19,546  
                 
 Cash flows of investing activities:
               
 Capital expenditures
    (1,232 )     (2,502 )
 Acquisitions, net of cash acquired
    (969 )     (88,465 )
 Net cash used in investing activities
    (2,201 )     (90,967 )
                 
 Cash flows of financing activities:
               
 Credit facility repayments, net
    (9,553 )     56,000  
 Proceeds from stock options exercises
    156       11  
 Purchase of common stock in connection with share awards
    (52 )     (20 )
 Tax impact of share awards
    40       (62 )
 Payment of special dividend in connection with share awards
    (35 )     -  
 Principal payments on notes payable and capital leases
    (702 )     (720 )
 Net cash (used in) provided by financing activities
    (10,146 )     55,209  
                 
 Cash flows from discontinued operations
               
 Operating activities
    323       (742 )
 Investing activities
    2       3,080  
 Net cash provided by discontinued operations
    325       2,338  
                 
 Net change in cash and cash equivalents
    (5,360 )     (13,874 )
 Cash and cash equivalents at beginning of period
    12,246       26,120  
 Cash and cash equivalents at end of period
  $ 6,886     $ 12,246  

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 7
February 25, 2015




 
ALMOST FAMILY, INC. AND SUBSIDIARIES
 
RESULTS OF OPERATIONS
 
(UNAUDITED)
 
(In thousands)
 
   
Three Months Ended December 31,
 
   
2014
   
2013
   
Change
 
   
Amount
   
% Rev
   
Amount
   
% Rev
   
Amount
   
%
 
Home Health Operations
                                   
Net service revenues:
                                   
 Visiting Nurse
  $ 95,724       76.8 %   $ 72,055       74.8 %   $ 23,669       32.8 %
 Personal Care
    28,850       23.2 %     24,336       25.2 %     4,514       18.5 %
      124,574       100.0 %     96,391       100.0 %     28,183       29.2 %
Operating income before corporate expenses:
                                               
 Visiting Nurse
    11,703       12.2 %     8,142       11.3 %     3,561       43.7 %
 Personal Care
    3,268       11.3 %     2,688       11.0 %     580       21.6 %
      14,971       12.0 %     10,830       11.2 %     4,141       38.2 %
Healthcare Innovations
                                               
 Revenue
    182               196               (14 )     -7.1 %
 Operating income before
  noncontrolling interest
    (408 )     -224.2 %     (482 )     -245.9 %     74       -15.4 %
                                                 
Corporate expenses
    7,313       5.9 %     5,728       5.9 %     1,585       27.7 %
Deal and transition costs
    (701 )     -0.6 %     3,336       3.5 %     (4,037 )     -121.0 %
Operating income
    7,951       6.4 %     1,284       1.3 %     6,667       519.2 %
Interest expense, net
    (362 )     -0.3 %     (127 )     -0.1 %     (235 )     185.0 %
Income tax expense
    (3,266 )     -2.6 %     (756 )     -0.8 %     (2,510 )     332.0 %
Net income from continuing operations
  $ 4,323       3.5 %   $ 401       0.4 %   $ 3,922       978.1 %
                                                 
Adjusted EBITDA from home health operations
  $ 9,148       7.3 %   $ 6,477       6.7 %   $ 2,671       41.2 %
Adjusted earnings from home health operations
  $ 4,479       3.6 %   $ 2,740       2.8 %   $ 1,739       63.5 %

 
 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 8
February 25, 2015

 
ALMOST FAMILY, INC. AND SUBSIDIARIES
 
RESULTS OF OPERATIONS
 
(UNAUDITED)
 
(In thousands)
 
   
Twelve months Ended December 31,
 
   
2014
   
2013
   
Change
 
   
Amount
   
% Rev
   
Amount
   
% Rev
   
Amount
   
%
 
Home Health Operations
                                   
Net service revenues:
                                   
 Visiting Nurse
  $ 380,788       77.2 %   $ 263,789       73.9 %   $ 116,999       44.4 %
 Personal Care
    112,497       22.8 %     92,927       26.1 %     19,570       21.1 %
      493,285       100.0 %     356,716       100.0 %     136,569       38.3 %
Operating income before corporate expenses:
                                               
 Visiting Nurse
    46,224       12.1 %     29,533       11.2 %     16,691       56.5 %
 Personal Care
    12,968       11.5 %     11,599       12.5 %     1,369       11.8 %
      59,192       12.0 %     41,132       11.5 %     18,060       43.9 %
Healthcare Innovations
                                               
 Revenue
    2,544               196               2,348       1198.0 %
 Operating income before
  noncontrolling interest
    (13 )     -0.5 %     (482 )     -245.9 %     469       -97.3 %
                                                 
Corporate expenses
    29,225       5.9 %     21,534       6.0 %     7,691       35.7 %
Deal and transition costs
    5,312       1.1 %     4,323       1.2 %     989       22.9 %
Operating income
    24,642       5.0 %     14,793       4.1 %     9,849       66.6 %
Interest expense, net
    (1,435 )     -0.3 %     (167 )     0.0 %     (1,268 )     759.3 %
Income tax expense
    (9,511 )     -1.9 %     (6,020 )     -1.7 %     (3,491 )     58.0 %
Net income from continuing operations
  $ 13,696       2.8 %   $ 8,606       2.4 %   $ 5,090       59.1 %
                                                 
 Adjusted EBITDA from home health operations
    35,775       7.2 %     24,017       6.7 %     11,758       49.0 %
 Adjusted earnings from home health operations
  $ 17,100       3.4 %   $ 11,533       3.2 %   $ 5,568       48.3 %

 

 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 9
February 25, 2015



VISITING NURSE SEGMENT OPERATING METRICS
 
                                           
   
Three Months Ended December 31,
 
   
2014
               
2013
         
Change
 
   
Amount
               
Amount
         
Amount
   
%
 
Average number of locations
    160                   130             30       23.1 %
                                                   
All payors:
                                                 
Patient months
    80,232                   58,949             21,283       36.1 %
Admissions
    24,612                   17,489             7,123       40.7 %
Billable visits
    631,145                   480,727             150,418       31.3 %
                                                   
Medicare:
                                                 
Admissions
    21,782       88.5 %           15,292       87.4 %     6,490       42.4 %
Revenue (in thousands)
  $ 90,446       94.5 %         $ 68,676       95.3 %   $ 21,770       31.7 %
Revenue per admission
    4,152                     4,491             $ (339 )     -7.5 %
Billable visits
    566,868       89.8 %           446,618       92.9 %     120,250       26.9 %
Recertifications
    11,913                     9,258               2,655       28.7 %
Payor mix % of Admissions
                                                     
Traditional Medicare Episodic
    84.2 %                   92.1 %             -7.9 %        
 Replacement Plans Paid Episodically
    3.3 %                   2.9 %             0.4 %        
 Replacement Plans Paid Per Visit
    12.5 %                   5.0 %             7.5 %        
                                                       
Non-Medicare:
                                                     
Admissions
    2,830       11.5 %           2,197       12.6 %     633       28.8 %
Revenue (in thousands)
  $ 5,278       5.5 %         $ 3,379       4.7 %   $ 1,899       56.2 %
Revenue per admission
    1,865                     1,538             $ 327       21.3 %
Billable visits
    64,277       10.2 %           34,109       7.1 %     30,168       88.4 %
Recertifications
    499                     403               96       23.8 %
Payor mix % of Admissions
                                                     
Medicaid & other governmental
    25.6 %                   17.7 %             7.9 %        
Private payors
    74.4 %                   82.3 %             -7.9 %        
                                                       
PERSONAL CARE OPERATING METRICS
 
                                                       
   
Three Months Ended December 31,
 
      2014                     2013            
Change
 
   
Amount
                 
Amount
           
Amount
   
%
 
Average number of locations
    61                     62               (1 )     -1.6 %
                                                       
Admissions
    1,619                     1,204               415       34.5 %
Patient months of care
    22,858                     20,439               2,419       11.8 %
Billable hours
    1,315,575               1230409.46       1,230,409               85,166       6.9 %
Revenue per billable hour
  $ 21.93                     $ 19.78             $ 2.15       10.9 %
                                                         
HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA
 
                                                         
   
Three Months Ended December 31,
 
      2014                       2013            
Change
 
   
Amount
                   
Amount
           
Amount
   
%
 
Medicare enrollees under management
    53,901                       28,735               25,166       87.6 %
ACOs under contract
    7                       3               4       133.3 %
Net income - noncontrolling interest
    (156 )                     (186 )             30       -16.1 %
Assets
    9,287                       9,642               (355 )     -3.7 %
Liabilities
    180                       645               (465 )     -72.1 %
Non-controlling interest - redeemable
    3,639                       3,639               -       0.0 %
Non-controlling interest - nonredeemable
    (5 )                     (186 )             181       -97.3 %
 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 10
February 25, 2015


VISITING NURSE SEGMENT OPERATING METRICS
 
                                     
   
Twelve Months Ended December 31,
 
   
2014
         
2013
         
Change
 
   
Amount
         
Amount
         
Amount
   
%
 
Average number of locations
    167             111             56       50.5 %
                                             
All payors:
                                           
Patient months
    319,430             214,279             105,151       49.1 %
Admissions
    98,634             64,304             34,330       53.4 %
Billable visits
    2,507,067             1,759,864             747,203       42.5 %
                                             
Medicare:
                                           
Admissions
    87,650       88.9 %     58,441       90.9 %     29,209       50.0 %
Revenue (in thousands)
  $ 357,144       93.8 %   $ 254,012       96.3 %   $ 103,132       40.6 %
Revenue per admission
    4,075               4,346             $ (272 )     -6.3 %
Billable visits
    2,259,896       90.1 %     1,668,346       94.8 %     591,550       35.5 %
Recertifications
    47,875               33,597               14,278       42.5 %
Payor mix % of Admissions
                                               
Traditional Medicare Episodic
    84.0 %             91.9 %             -7.9 %        
 Replacement Plans Paid Episodically
    3.4 %             2.6 %             0.8 %        
 Replacement Plans Paid Per Visit
    12.7 %             5.5 %             7.2 %        
                                                 
Non-Medicare:
                                               
Admissions
    10,984       11.1 %     5,863       9.1 %     5,121       87.3 %
Revenue (in thousands)
  $ 23,644       6.2 %   $ 9,777       3.7 %   $ 13,867       141.8 %
Revenue per admission
    2,153               1,668             $ 485       29.1 %
Billable visits
    247,171       9.9 %     91,518       5.2 %     155,653       170.1 %
Recertifications
    1,865               1,230               635       51.6 %
Payor mix % of Admissions
                                               
Medicaid & other governmental
    23.3 %             24.1 %             -0.8 %        
Private payors
    76.7 %             75.9 %             0.8 %        
                                                 
PERSONAL CARE OPERATING METRICS
 
                                                 
   
Twelve Months Ended December 31,
 
      2014               2013            
Change
 
   
Amount
           
Amount
           
Amount
   
%
 
Average number of locations
    61               61               -       0.0 %
                                                 
Admissions
    6,458               4,723               1,735       36.7 %
Patient months of care
    89,880               80,045               9,835       12.3 %
Billable hours
    5,304,089               4,682,590               621,499       13.3 %
Revenue per billable hour
  $ 21.21             $ 19.85             $ 1.36       6.9 %
                                                 
HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA
 
                                                 
   
Twelve Months Ended December 31,
 
      2014               2013            
Change
 
   
Amount
           
Amount
           
Amount
   
%
 
Medicare enrollees under management
    53,901               28,735               25,166       87.6 %
ACOs under contract
    7               3               4       133.3 %
Net income - noncontrolling interest
    (5 )             (186 )             181       -97.3 %
Assets
    9,287               9,642               (355 )     -3.7 %
Liabilities
    180               645               (465 )     -72.1 %
Non-controlling interest - redeemable
    3,639               3,639               -       0.0 %
Non-controlling interest - nonredeemable
    (5 )             (186 )             181       -97.3 %
 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 11
February 25, 2015


Non-GAAP Financial Measures
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 Earnings from Home Health Operations
Adjusted earnings from home health operations 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 earnings from home health operations 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 tables set forth a reconciliation of net income attributable to Almost Family, Inc. to adjusted earnings from home health operations:


ALMOST FAMILY, INC. AND SUBSIDIARIES
 
RECONCILIATION OF ADJUSTED EARNINGS
 
FROM HOME HEALTH OPERATIONS
 
(In thousands)
 
   
Three Months Ended
December 31,
   
Twelve months Ended
December 31,
 
(in thousands)
 
2014
   
2013
   
2014
   
2013
 
 Net income attributable to Almost Family, Inc.
  $ 4,747     $ 328     $ 13,763     $ 8,226  
                                 
 Addbacks:
                               
 Deal, transition and other, net of tax
    (417 )     1,985       3,160       2,572  
 Loss on discontinued operations, net of tax
    -       251       172       558  
 Adjusted earnings
    4,330       2,564       17,095       11,356  
 Healthcare Innovation operating loss after NCI, net of tax
    149       176       5       176  
 Adjusted earnings from home health operations
  $ 4,479     $ 2,740     $ 17,100     $ 11,533  
                                 
 Per share amounts-diluted:
                               
 Average shares outstanding
    9,474       9,401       9,462       9,374  
                                 
 Net income attributable to Almost Family, Inc.
  $ 0.50     $ 0.03     $ 1.45     $ 0.88  
                                 
 Addbacks:
                               
 Deal, transition and other, net of tax
    (0.04 )     0.21       0.34       0.27  
 Loss on discontinued operations, net of tax
    -       0.03       0.02       0.06  
Adjusted earnings
    0.46       0.27       1.81       1.21  
 Healthcare Innovation operating loss after NCI, net of tax
    0.01       0.02       0.00       0.02  
Adjusted earnings from home health operations
  $ 0.47     $ 0.29     $ 1.81     $ 1.23  


 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 12
February 25, 2015



Adjusted EBITDA from Home Health Operations
Adjusted earnings before interest, income tax, depreciation and amortization, amortization of stock-based compensation, deal, transition and other and healthcare innovation operating loss (Adjusted EBTIDA from Home Health Operations) 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 from Home Health Operations are significant components in understanding and evaluating financial performance and liquidity.  Management routinely calculates and communicates Adjusted EBITDA from Home Health Operations and believes that it is useful to investors because it provides a common 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 from continuing operations to Adjusted EBITDA from Home Health Operations:


ALMOST FAMILY, INC. AND SUBSIDIARIES
 
RECONCILIATION OF ADJUSTED EBITDA
 
FROM HOME HEALTH OPERATIONS
 
(In thousands)
 
   
Three Months Ended
December 31,
   
Twelve months Ended
December 31,
 
(in thousands)
 
2014
   
2013
   
2014
   
2013
 
Net income from continuing operations
  $ 4,323     $ 401     $ 13,696     $ 8,606  
Add back:
                               
Interest expense
    362       127       1,435       167  
Income tax expense
    3,266       756       9,511       6,020  
Depreciation and amortization
    938       857       4,103       2,862  
Stock-based compensation from home health operations
    478       426       1,814       1,465  
Deal and transition costs
    (701 )     3,336       5,312       4,323  
Adjusted EBITDA
    8,666       5,903       35,871       23,443  
Healthcare Innovation operating loss
    482       574       (96 )     574  
Adjusted EBITDA from home health operations
  $ 9,148     $ 6,477     $ 35,775     $ 24,017  


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, a personal care segment and a healthcare innovations segment.  Almost Family operates over 220 branch locations in fourteen U.S. states.


 
 
 
 
Almost Family Reports Fourth Quarter and Full Year 2014 Results
Page 13
February 25, 2015



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; the ability of the Company to integrate, manage and keep secure our information systems; 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 investments in its HealthCare Innovations segment, there can be no assurance that its operational and developmental objectives will be realized or that any savings in healthcare spending or any future participation in Medicare Shared Savings Program payments will be realized.  The Company undertakes no obligation to update or revise its forward-looking statements.



 
 
 
 


The following information was filed by Almost Family Inc (AFAM) on Wednesday, February 25, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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