Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

Exhibit 99.1

 

C:\Users\106756\Desktop\Untitled.jpg

 

 

 

 

 

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

 

 

FOR IMMEDIATE RELEASE

August 8, 2017

 

Almost Family Reports Second Quarter and Year to Date 2017 Results

 

Louisville, KY, August 8, 2017 –  Almost Family, Inc. (NASDAQ: AFAM), a leading national provider of home health and related services, announced today its financial results for the quarter ended June 30, 2017.

 

Second Quarter Highlights (1):

·

Net service revenues of approximately $200.7 million including the second quarter of operations of the CHS-JV (see below), up 28.7% from the second quarter of 2016

·

GAAP net income of $4.8 million

·

GAAP EPS of $0.34(2) per diluted share on 33% more shares outstanding than in the prior year

·

Adjusted net income of $7.8(1) million

·

Adjusted EPS of $0.56(1, 2);  excluding the effect of the January 2017 equity sale, Adjusted EPS would have been $0.75(1, 2)

·

Adjusted EBITDA of $17.8(1) million

·

Year to date operating cash flows of $11.8 million

·

As of August 8, 2017, the Company has converted 71 of 110 home health branches to the new HomeCare-HomeBase information system and expects to convert the remaining branches as planned before the end of 2017

·

In July of 2017, the Company’s CHS-JV purchased the assets of a Medicare-certified home health agency and related private duty company from Island Home Care in Key West, Florida marking our first co-investment with CHS since the formation of the JV.

·

CMS has announced a possible delay in ACO shared savings payments for Performance Year 2016 to fourth quarter 2017


(1)

See Non-GAAP Financial Measures below

(2)

Note that comparability of EPS between years is partially impacted by changes in shares outstanding as explained further below

 

1


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

 

Management Comments

William Yarmuth, Chairman and CEO, commented:  “We continue to be very pleased with the results of our operations.  Additionally, our transition work with the CHS-JV is proceeding on schedule and we are progressing nicely through our HomeCare HomeBase implementation.  In July, we made the first of what we hope will be many co-investments with CHS with the addition of an affiliated home health agency to a CHS hospital that did not previously have one.  On the regulatory front, we note that the FY2018 preliminary rule from Medicare is relatively close to expectations. We are carefully studying the proposed Home Health Groupings Model for FY2019 and preparing our commentary for submission to CMS within the regulatory window.”

 

Steve Guenthner, President added:  “With regard to the proposed rule, we feel very strongly CMS has an obligation to implement the HHGM in a budget neutral manner consistent with CMS’ historical practices in rule making and with its statutory grant of authority from Congress.  To do otherwise may put vulnerable patient populations at risk and most certainly will drive unnecessary opposition to what is otherwise directionally a positive policy development.  Having said that, we feel CMS is signaling a new era in provider-industry collaboration, and we in the home health industry have an obligation to work reciprocally with CMS to further refine the model prior to its implementation.  We’re pleased that many of the design principles of this new case mix model are consistent with an increased focus on chronically ill populations which is an approach we have long championed.  We very much appreciate the inclusive process and early announcement of the model by CMS last year and its inclusion in the current rule, some 18 months before possible implementation.”

 

Yarmuth concluded:  “In the second half of FY2017, we will complete our CHS-JV integration and our HCHB implementation work.  This will allow us to shift our attention to be more fully focused on improving our organic growth and earnings in 2018.  I want to sincerely thank all our employees and managers for their hard work and the fine job they have been doing on both of these very important initiatives.  In addition, we are continuing our development activities to pursue further consolidation in the home health space with a number of good opportunities before us to maintain our growth trajectory.”

 

Second Quarter Financial Results (See Matters Impacting Comparability and Presentation below)

 

Home Health (HH) segment net revenues increased by 35% or $38.0 million to $148.4 million from $110.3 million in the prior year and episodic admissions grew by 42.2% to 29,761 from 20,932 primarily due to the CHS-JV acquisition.  Net revenue and episodic admissions in the CHS-JV were $41.9 million and 8,211, respectively.  Excluding the CHS-JV, episodic admissions grew by approximately 3.0%, including growth in Florida of 2.8%.  The Company expects to discontinue separate reporting of Florida admission growth in future periods.

 

Home Health segment contribution before corporate expenses increased $4.9 million, or 32.4%, to $20.2 million, from $15.3 million in the prior year period.  Home Health contribution margins as a percentage of revenue decreased slightly to 13.6% from 13.8%, primarily due to the combined effect

2


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

of a 1% Medicare rate cut and an annual cost of living wage rate adjustment of 2% both effective January 1, 2017.

 

Other Home-Based Services (OHBS) segment net revenues increased $6.5 million or 16.3% to $46.5 million in 2017 from $40.0 million, primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.   Hospice revenues were $7.3 million for the quarter. Personal care revenues were down $0.4 million or 1.1% from prior year on lower volumes.  Additionally, mix changes combined with rate cuts and increases in wages influenced by increases in statutory minimum wage rates in certain states negatively impacted personal care margins.  Overall OHBS segment contribution before corporate expenses increased $1.0 million, or 32.8% to $4.1 million from $3.1 million for the same period last year.

 

Healthcare Innovations (HCI) segment net revenues increased $0.2 million to $5.8 million from $5.6 million, while operating income before corporate expenses declined to $0.3 million from $0.7 million in 2016, largely due to changes in mix of assessments performed by our assessment business. 

 

Corporate expenses as a percentage of revenue increased to 4.7% from 4.5%, primarily due to the current period including a management incentive provision.  Deal, transition and other costs were $5.4 million, primarily due to the ongoing conversion of the HH segment to the HomeCare-HomeBase information system and transition costs for the CHS-JV acquisition.  The HomeCare-HomeBase system conversion, implementation, training and related costs are expected to continue through the end of 2017. 

 

The effective tax rates for the second quarter of 2017 and 2016 were 36.5% and 40.5%, respectively. The Company’s lower effective income tax rate for the second quarter 2017 was due to the favorable impact of excess tax benefits from the exercise of stock options during the period.    

 

Increased average shares outstanding from the Company’s late January sale of common shares reduced Adjusted EPS of $0.56 for the second quarter of 2017 by $0.19.    The second quarter is fully reflective of the dilutive effect of this offering.

 

Year to Date Financial Results (See Matters Impacting Comparability and Presentation below)

 

Home Health segment net revenues increased by $79.8 million or 36% to $299.5 million from $219.8 million in the prior year and episodic admissions grew by 43.5% to 61,051 from 42,544 in 2016, primarily due to the CHS-JV acquisition.  Net revenue and episodic admissions in the CHS-JV were $84.8 million and 16,942, respectively.  Excluding the CHS-JV, episodic admissions grew by approximately 3.7%, including growth in Florida of 2.6%.

 

Home Health segment contribution before corporate expenses increased $9.8 million, or 32.3%, to $40.1 million, from $30.3 million in the prior year period.  Home Health contribution margins as a percentage of revenue decreased slightly to 13.4% from 13.8%, primarily due to the combined effect

3


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

of a 1% Medicare rate cut and an annual cost of living wage rate adjustment of 2% both effective January 1, 2017.

 

Other Home-Based Services (OHBS) segment net revenues increased $12.2 million or 15.3% to a  $92.1 million from $79.9 million primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.  Hospice revenues were $14.3 million.  Personal care revenues were down $1.6 million or 2.0% from prior year on lower volumes.  Additionally, mix changes combined with rate cuts and increases in wages influenced by increases in statutory minimum wage rates in certain states negatively impacted personal care margins.  Overall OHBS segment contribution before corporate expenses increased $1.1 million as compared to the same period of last year.

 

Healthcare Innovations (HCI) segment net revenues increased $0.4 million to $10.4 million from $10.0 million, while operating (loss) income before corporate expenses was essentially break even in both periods. 

 

Corporate expenses as a percentage of revenue decreased to 4.6% from 4.7% in the prior year period primarily due to a larger base of business.  The first half of 2017 includes a provision for management incentives, while the first half of 2016 had no such provision.  Deal, transition and other costs were $12.7 million, due to the CHS-JV acquisition and the conversion of the HH segment to the HomeCare-HomeBase information system.  Borrowings related to acquisitions increased interest expense to $3.5 million from $2.9 million in the prior year period.

 

Net cash from operating activities of $11.8 million was generated in the first half of 2017.  Accounts receivable days sales outstanding were 57 at the end of the second quarter of 2017, as compared to 56 days last year and 53 days at the end of the fourth quarter of 2016.  Variations in days outstanding are largely attributable to delayed regulatory processing from asset acquisitions.

 

The effective tax rates for 2017 and 2016 were 29.5% and 40.5%, respectively.  The Company’s lower effective income tax rate in 2017 was due to a change in accounting rules for excess tax benefits from the exercise of stock options and vesting of restricted shares as a result of the prospective adoption of Accounting Standards Update 2016-09 as of the first day of fiscal 2017.  Under previous accounting rules these benefits were recorded in “additional paid-in capital” rather than in the current period tax provision.  Future periods with option exercises or restricted stock vesting could lower or raise the Company’s tax provision in those periods.  Excluding these items, the Company expects its effective tax rate for 2017 to be 39.5%.

 

Increased average shares outstanding from the Company’s late January sale of common shares reduced Adjusted EPS of $1.11 for 2017 by $0.32.    

 

Acquisitions

 

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

4


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

provide.

 

Medicare Program Developments 

On July 25, 2017, the Centers for Medicare and Medicaid Services (CMS) issued its proposed rule for 2018. CMS is proposing a 0.4% rate cut consisting of a 1.0% market basket update, a 0.97% case mix adjustment and sunset of the rural add-on provision. The proposed rule, which also proposes certain refinements to the Home Health Value-based Purchasing Model plus a new Home Health Groupings Model (HHGM Case Mix Model) for 2019, is currently open for comment. The final rule is expected to be released in late October 2017.  With regard to the HHGM Case Mix Model, as proposed it would also be subject to regulatory review through the 2019 preliminary and final rule process and thus can reasonably be expected to change from its current form prior to actual implementation. 

 

Due to the complexity, early stage of development and announcement and subjectivity to future change of the FY2019 HHGM, the Company is unable to predict at this time the impact such a proposal, if enacted, and in what form enacted, may have on the Company’s future financial performance and condition. A series of responses to various stakeholder requests from the Senate Finance Committee, the House Ways and Means Committee and CMS dating to 2013 and including AFAM executive testimony before the Congress can be found at almostfamily.com.  Many of the concepts and goals the Company has long championed in its position papers can be found in the HHGM design. 

 

CMS Delay in ACO Medicare Shared Savings Program Success Fees

 

With regard to the timing of PY2016 ACO shared savings payments, if any, which the Company has historically reported in its third quarter earnings report, CMS recently announced: “A delay in availability of 2016 final risk scores will postpone the delivery of Performance Year (PY) 2016 financial reconciliation results and final benchmark reports for PY2017.”  As a result of this CMS delay, the Company is unable to determine whether it will report its annual shared savings revenue for PY2016 in the third quarter of 2017 or whether the delay will result in later reporting of that revenue.  Under the circumstances, and until further information is received from CMS, the Company advises investors and analysts to expect the results of its participation in the shared savings program to be reported in its fourth quarter 2017 results.

 

Matters Impacting Comparability and Presentation – CHS-JV and Segment Presentation

 

On the first day of fiscal 2017, the Company acquired an 80% controlling interest in the entity holding the home health and hospice assets of Community Health Systems, Inc. (NYSE: CYH) (“CHS-JV”).  Community Health Systems, Inc. ("CHS"), one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country, retained the remaining 20%. 

 

In the first quarter in 2017, the Company redefined its reporting segments to include a) Home Health (HH) formerly Visiting Nurse, b) Other Home-Based Services (OHBS) which includes all other

5


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

home care services outside of Home Health services and c) the Healthcare Innovations (HCI) segment.  The OHBS segment consists of the historical personal care (“personal care”) operations plus hospice services.  Prior year segment information has been reclassified to conform to new segment definitions.  In management’s opinion, this approach provides investors clarity for the largest segment, Home Health, and best aligns with the Company’s internal decision-making processes as viewed by the chief operating decision maker. 

 

Financing Activities

On January 25, 2017, the Company completed a public offering of 3.5 million shares of its common stock for gross proceeds in excess of $150 million.  The net proceeds of $144 million were applied to the Company’s revolving credit facility, which increased credit available under the Facility from approximately $78.6 million at December 30, 2016 to approximately $204.1 million after the offering. 

6


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Six months ended

 

June 30, 2017

 

July 1, 2016

 

June 30, 2017

 

July 1, 2016

Net service revenues

$ 200,733

 

$ 155,996

 

$ 402,045

 

$ 309,694

Cost of service revenues (excluding depreciation & amortization)

104,052

 

83,692

 

210,320

 

165,924

Gross margin

96,681

 

72,304

 

191,725

 

143,770

General and administrative expenses:

 

 

 

 

 

 

 

Salaries and benefits

56,870

 

41,502

 

112,903

 

83,182

Other

24,556

 

18,715

 

49,272

 

38,156

Deal, transition & other costs

5,424

 

2,589

 

12,655

 

5,198

Total general and administrative expenses

86,850

 

62,806

 

174,830

 

126,536

Operating income

9,831

 

9,498

 

16,895

 

17,234

Interest expense, net

1,579

 

1,604

 

3,475

 

2,936

Income before noncontrolling interests and income taxes

8,252

 

7,894

 

13,420

 

14,298

Net income (loss) - noncontrolling interests

725

 

(133)

 

1,485

 

(323)

 Income before income tax expense

7,527

 

8,027

 

11,935

 

14,621

Income tax expense

2,751

 

3,250

 

3,525

 

5,927

Net income attributable to Almost Family, Inc.

$ 4,776

 

$ 4,777

 

$ 8,410

 

$ 8,694

 

 

 

 

 

 

 

 

Per share amounts-basic:

 

 

 

 

 

 

 

Average shares outstanding

13,717

 

10,158

 

13,212

 

10,125

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.35

 

$ 0.47

 

$ 0.64

 

$ 0.86

 

 

 

 

 

 

 

 

Per share amounts-diluted:

 

 

 

 

 

 

 

Average shares outstanding

13,954

 

10,322

 

13,449

 

10,311

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.34

 

$ 0.46

 

$ 0.63

 

$ 0.84

 

 

 

 

 

 

 

 

 

 

7


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

    

June 30, 2017

    

December 30, 2016

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

21,541

 

$

10,110

 

Accounts receivable - net

 

 

125,984

 

 

99,212

 

Prepaid expenses and other current assets

 

 

13,443

 

 

11,432

 

TOTAL CURRENT ASSETS

 

 

160,968

 

 

120,754

 

PROPERTY AND EQUIPMENT - NET

 

 

19,441

 

 

10,732

 

GOODWILL

 

 

389,258

 

 

305,476

 

OTHER INTANGIBLE ASSETS - NET

 

 

146,736

 

 

85,063

 

TRANSACTION DEPOSIT

 

 

 —

 

 

128,930

 

OTHER ASSETS

 

 

8,195

 

 

7,757

 

TOTAL ASSETS

 

$

724,598

 

$

658,712

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

Accounts payable

 

$

16,453

 

$

12,122

 

Accrued other liabilities

 

 

50,612

 

 

39,728

 

TOTAL CURRENT LIABILITIES

 

 

67,065

 

 

51,850

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

 

Revolving credit facility

 

 

122,677

 

 

262,456

 

Deferred tax liabilities

 

 

24,970

 

 

21,145

 

Seller notes

 

 

12,461

 

 

12,500

 

Other liabilities

 

 

7,100

 

 

6,581

 

TOTAL LONG-TERM LIABILITIES

 

 

167,208

 

 

302,682

 

TOTAL LIABILITIES

 

 

234,273

 

 

354,532

 

 

 

 

 

 

 

 

 

NONCONTROLLING INTEREST - REDEEMABLE -

 

 

 

 

 

 

 

HEALTHCARE INNOVATIONS

 

 

2,256

 

 

2,256

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Preferred stock, par value $0.05; authorized 2,000 shares; none issued or outstanding

 

 

 —

 

 

 —

 

Common stock, par value $0.10; authorized 25,000; 14,133 and 10,504 issued and outstanding

 

 

1,413

 

 

1,051

 

Treasury stock, at cost, 169 and 117 shares

 

 

(5,825)

 

 

(3,258)

 

Additional paid-in capital

 

 

287,649

 

 

141,233

 

Retained earnings

 

 

171,900

 

 

163,763

 

Almost Family, Inc. stockholders' equity

 

 

455,137

 

 

302,789

 

Noncontrolling interests - nonredeemable

 

 

32,932

 

 

(865)

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

488,069

 

 

301,924

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

724,598

 

$

658,712

 

8


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

 

Six months ended

 

June 30, 2017

 

July 1, 2016

Cash flows from operating activities:

 

 

 

Net income attributable to Almost Family, Inc.

$ 8,410

 

$ 8,694

Net income (loss) attributable to noncontrolling interests

1,485

 

(323)

Income before non-controlling interests

9,895

 

8,371

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

 

 

 

Depreciation and amortization

3,193

 

1,848

Provision for uncollectible accounts

7,442

 

7,859

Stock-based compensation

1,414

 

1,402

Loan costs amortization

473

 

136

Deferred income taxes

3,825

 

4,236

 

26,242

 

23,852

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

 

 

 

Accounts receivable

(13,194)

 

(10,081)

Prepaid expenses and other current assets

(1,363)

 

(511)

Other assets

(900)

 

(492)

Accounts payable and accrued expenses

975

 

(2,363)

Net cash provided by operating activities

11,760

 

10,405

 

 

 

 

Cash flows of investing activities:

 

 

 

Capital expenditures

(3,117)

 

(2,275)

Transaction deposit

128,930

 

 -

Acquisitions, net of cash acquired

(129,164)

 

(30,754)

Net cash used in investing activities

(3,351)

 

(33,029)

 

 

 

 

Cash flows of financing activities:

 

 

 

Credit facility borrowings

143,917

 

145,538

Credit facility repayments, net

(283,697)

 

(124,153)

Debt issuance fees

46

 

(102)

Proceeds from stock offering, net

143,907

 

 -

Proceeds from stock option exercises

1,455

 

16

Purchase of common stock in connection with share awards

(2,567)

 

(484)

Tax impact of share awards

 -

 

256

Principal payments on notes payable and capital leases

(39)

 

(55)

Net cash provided by financing activities

3,022

 

21,016

 

 

 

 

Net change in cash and cash equivalents

11,431

 

(1,608)

Cash and cash equivalents at beginning of period

10,110

 

7,522

Cash and cash equivalents at end of period

$ 21,541

 

$ 5,914

 

 

 

 

9


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

June 30, 2017

 

July 1, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

148,373

 

73.9

%

$

110,340

 

70.7

%

$

38,033

 

34.5

%

Other Home-Based Services

 

 

46,519

 

23.2

%

 

40,012

 

25.6

%

 

6,507

 

16.3

%

Healthcare Innovations

 

 

5,841

 

2.9

%

 

5,644

 

3.6

%

 

197

 

3.5

%

 

 

 

200,733

 

100.0

%

 

155,996

 

100.0

%

 

44,737

 

28.7

%

Operating income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

20,213

 

13.6

%

 

15,267

 

13.8

%

 

4,946

 

32.4

%

Other Home-Based Services

 

 

4,051

 

8.7

%

 

3,051

 

7.6

%

 

1,000

 

32.8

%

Healthcare Innovations

 

 

327

 

5.6

%

 

720

 

12.8

%

 

(393)

 

(54.6)

%

 

 

 

24,591

 

12.3

%

 

19,038

 

12.2

%

 

5,553

 

29.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

9,336

 

4.7

%

 

6,951

 

4.5

%

 

2,385

 

34.3

%

Deal, transition and other costs

 

 

5,424

 

2.7

%

 

2,589

 

1.7

%

 

2,835

 

109.5

%

Operating income

 

 

9,831

 

4.9

%

 

9,498

 

6.1

%

 

333

 

3.5

%

Interest expense, net

 

 

1,579

 

0.8

%

 

1,604

 

1.0

%

 

(25)

 

(1.6)

%

Net income (loss) - noncontrolling interests

 

 

725

 

0.4

%

 

(133)

 

(0.1)

%

 

858

 

NM

 

Net income before income taxes

 

 

7,527

 

3.7

%

 

8,027

 

5.1

%

 

$ (500)

 

(6.2)

%

Income tax expense

 

 

2,751

 

1.4

%

 

3,250

 

2.1

%

 

(499)

 

(15.4)

%

Net income attributable to Almost Family, Inc.

 

$

4,776

 

2.4

%

$

4,777

 

3.1

%

$

$ (1)

 

(0.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

17,816

 

8.9

%

$

13,757

 

8.8

%

$

4,059

 

29.5

%

Adjusted net income (1)

 

$

7,834

 

3.9

%

$

6,317

 

4.0

%

$

1,517

 

24.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

 

June 30, 2017

 

July 1, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

299,528

 

74.5

%

$

219,762

 

71.0

%

$

79,766

 

36.3

%

Other Home-Based Services

 

 

92,117

 

22.9

%

 

79,896

 

25.8

%

 

12,221

 

15.3

%

Healthcare Innovations

 

 

10,400

 

2.6

%

 

10,036

 

3.2

%

 

364

 

3.6

%

 

 

 

402,045

 

100.0

%

 

309,694

 

100.0

%

 

92,351

 

29.8

%

Operating (loss) income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

40,095

 

13.4

%

 

30,308

 

13.8

%

 

9,787

 

32.3

%

Other Home-Based Services

 

 

7,865

 

8.5

%

 

6,722

 

8.4

%

 

1,143

 

17.0

%

Healthcare Innovations

 

 

(16)

 

(0.2)

%

 

47

 

0.5

%

 

(63)

 

NM

 

 

 

 

47,944

 

11.9

%

 

37,077

 

12.0

%

 

10,867

 

29.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

18,394

 

4.6

%

 

14,645

 

4.7

%

 

3,749

 

25.6

%

Deal, transition and other costs

 

 

12,655

 

3.1

%

 

5,198

 

1.7

%

 

7,457

 

143.5

%

Operating income

 

 

16,895

 

4.2

%

 

17,234

 

5.6

%

 

(339)

 

(2.0)

%

Interest expense, net

 

 

3,475

 

0.9

%

 

2,936

 

0.9

%

 

539

 

18.4

%

Net income (loss) - noncontrolling interests

 

 

1,485

 

0.4

%

 

(323)

 

(0.1)

%

 

1,808

 

NM

 

Net income before income taxes

 

 

11,935

 

3.0

%

 

14,621

 

4.7

%

 

$ (2,686)

 

(18.4)

%

Income tax expense

 

 

3,525

 

0.9

%

 

5,927

 

1.9

%

 

(2,402)

 

(40.5)

%

Net income attributable to Almost Family, Inc.

 

$

8,410

 

2.1

%

$

8,694

 

2.8

%

$

$ (284)

 

(3.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

34,624

 

8.6

%

$

25,954

 

8.4

%

$

8,670

 

33.4

%

Adjusted net income (1)

 

$

14,926

 

3.7

%

$

11,787

 

3.8

%

$

3,139

 

26.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

June 30, 2017

 

July 1, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Locations

 

 

239

 

 

 

 

162

 

 

 

 

77

 

47.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All payors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

39,728

 

 

 

 

27,410

 

 

 

 

12,318

 

44.9

%

Census

 

 

31,588

 

 

 

 

23,441

 

 

 

 

8,147

 

34.8

%

Visits

 

 

944,454

 

 

 

 

735,138

 

 

 

 

209,316

 

28.5

%

Cost per visit

 

$

76

 

 

 

$

73

 

 

 

$

 3

 

3.7

%

G&A expense per census

 

$

1,796

 

 

 

$

1,768

 

 

 

$

28

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

29,761

 

 

 

 

20,932

 

 

 

 

8,829

 

42.2

%

Census

 

 

24,263

 

 

 

 

18,010

 

 

 

 

6,253

 

34.7

%

Episodes

 

 

45,309

 

 

 

 

32,775

 

 

 

 

12,534

 

38.2

%

Visits 

 

 

745,039

 

 

 

 

589,116

 

 

 

 

155,923

 

26.5

%

Revenue 

 

$

126,984

 

85.6

%  

$

95,305

 

86.4

%  

$

31,679

 

33.2

%

Revenue per episode

 

$

2,803

 

 

 

 

2,908

 

 

 

$

(105)

 

(3.6)

%

Visits per episode

 

 

16.4

 

 

 

 

18.0

 

 

 

 

(1.5)

 

(8.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

9,967

 

 

 

 

6,478

 

 

 

 

3,489

 

53.9

%

Census

 

 

7,325

 

 

 

 

5,431

 

 

 

 

1,894

 

34.9

%

Visits

 

 

199,415

 

 

 

 

146,022

 

 

 

 

53,393

 

36.6

%

Revenue 

 

$

21,389

 

14.4

%  

$

15,035

 

13.6

%  

$

6,354

 

42.3

%

Revenue per visit

 

$

107

 

 

 

$

103

 

 

 

$

 4

 

4.2

%

Visits per admission

 

 

20.0

 

 

 

 

22.5

 

 

 

 

(2.5)

 

(11.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12


 

Almost Family Reports Second Quarter and Year to Date 2017 Results

August 8, 2017

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

 

June 30, 2017

 

July 1, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Locations

 

 

239

 

 

 

 

162

 

 

 

 

77

 

47.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All payors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

81,185

 

 

 

 

55,842

 

 

 

 

25,343

 

45.4

%

Census

 

 

31,461

 

 

 

 

23,267

 

 

 

 

8,195

 

35.2

%

Visits

 

 

1,913,808

 

 

 

 

1,471,297

 

 

 

 

442,511

 

30.1

%

Cost per visit

 

$

76

 

 

 

$

72

 

 

 

$

 4

 

5.0

%

G&A expense per census

 

$

3,639

 

 

 

$

3,583

 

 

 

$

56

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Episodic: