Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

Exhibit 99.1

 

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

 

 

 

 

 

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

 

 

FOR IMMEDIATE RELEASE

November 7, 2017

 

Almost Family Reports Third Quarter and Year to Date 2017 Results

Confirms previously announced Hurricane impact

 

Louisville, KY, November 7, 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 September 29, 2017.  Investors are encouraged to read the Company’s press release dated October 9, 2017, “Almost Family Comments on Recent Developments Including Hurricane Impact”. 

 

Third Quarter Highlights (1):

·

Net service revenues of approximately $194.3 million including the third quarter of operations of the CHS-JV, up 21.1% from the third quarter of 2016

·

GAAP net income of $3.2 million (3)

·

GAAP EPS of $0.23(2,3) per diluted share on 33% more shares outstanding than in the prior year

·

Adjusted EPS of $0.43(1,2,3);  including the impact from the  Hurricanes which lowered Adjusted EPS by $0.14(3)

·

Adjusted EBITDA of $14.6 (1,2) million;  including the impact from the Hurricanes which lowered Adjusted EBITDA by $3.3 million(3)

·

Expect to record the Company’s share of the Medicare Shared Saving Program success fees under ACO contracts for the 2016 performance year in the fourth quarter of 2017  at between $2.0 million and $2.4 million

·

Clifford S. Holtz, COO of American Red Cross added to Almost Family Board of Directors

 

Year-to-Date Highlights (1):

·

Net service revenues of approximately $596.3 million including nine months of CHS-JV operations, up 26.9% from 2016

·

GAAP net income of $11.6 million (3)

·

Adjusted EPS of $1.53 (1,2,3)

·

Adjusted EBITDA of $49.6 (1,2,3) million

·

Year to date operating cash flows of $14.8 million

1


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

·

As of November 7, 2017, the Company has converted all of its home health branches to the new Homecare Homebase information system.  There will be no active patients remaining in the predecessor systems by the end of November 2017.  The Company has begun to experience meaningful operational efficiency gains, generally about 120 days after the end of each wave, and expects these gains to be partially reflected in its fourth quarter 2017 results and fully reflected in its results in its 2018 reporting year.


(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

(3)

Impact of Hurricanes Irma and Harvey are explained further below

 

 

Management Comments

William Yarmuth, Chairman and CEO, commented:    We are very pleased with the results of our quarter and recent regulatory developments.  Over the course of this year we have successfully integrated the largest acquisition in our history.  We have also nearly completed, with minimal disruption, the implementation of HomeCare HomeBase in all 110 of our home health branches that were not previously on that system.  Lastly, we are pleased to have recovered from the substantial hurricane disruption, all the while continuing to grow our business and creating value for our shareholders over the course of this year.

 

Steve Guenthner, President added:    On the regulatory front, we feel we, in collaboration with others in the industry, have made a meaningful breakthrough in our work with CMS and other policy makers. In its final rule, CMS deferred implementation of the Home Health Grouper Model for further consideration in collaboration with stakeholders with a goal of shifting the focus from volume of services to a more patient-centered model.  We very much look forward to working with policy makers to help shape the next phase in the evolution of the Medicare home health payment system.

 

Yarmuth concluded:    I would like to thank all our employees and management team for their hard work and commitment in taking on the challenges and opportunities of the first nine months and helping to propel us to some very successful results.  Additionally, I would like to welcome Cliff Holtz who recently joined our Board of Directors.  Cliff brings a wealth of experience and knowledge and is a very welcome addition to what I feel is a very high quality committed group of directors.

 

Impact of Hurricanes on Operating Results

Third quarter operating results for the home health, personal care, hospice and assessment business lines were adversely impacted by Hurricanes Irma and Harvey (the “Hurricanes”).  Due to the early warnings and evacuations related to these storms, the periods of disruption started well in advance of each storm actually striking affected areas, while recovery periods were elongated.  The Hurricanes impacted operations in Florida, Georgia and Texas, which are the source of approximately one quarter of the Company’s revenue.  The hurricanes resulted in lost admissions, visits, assessments and revenue.  The Company estimates operating income was lowered by approximately $3.3 million, 

2


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

or $0.14 EPS, in the third quarter of 2017.  Due to the proximity of these events to the end of the third quarter, there may be some residual hurricane effect on fourth quarter results.    

 

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

Home Health (HH) segment net revenues increased by 31% or $33.3 million to $141.4 million from $108.1 million in the prior year and episodic admissions grew by 35.6% to 28,148 from 20,751 as the CHS-JV acquisition more than offset the impact from the Hurricanes.  Net revenue and episodic admissions in the CHS-JV acquisition were $40.4 million and 7,665, respectively. 

 

Home Health segment contribution before corporate expenses increased $4.3 million, or 34.2%, to $17.0 million, from $12.7 million in the prior year period.  Home Health contribution margins as a percentage of revenue increased slightly to 12.0% from 11.7%, despite the hurricane effect partially due to synergies obtained from the Homecare Homebase conversion.  The Company estimates the hurricanes lowered third quarter 2017 revenue and contribution by $3.0 million and $2.6 million, respectively in the HH segment, resulting in a 1.6% reduction in contribution margin as a percent of revenue.

 

Other Home-Based Services (OHBS) segment net revenues increased $4.4 million or 10.5% to $46.4 million in 2017 from $42.0 million, primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.  Hospice revenues were $7.8 million for the quarter.  Personal care revenues were down $3.1 million or 7.5% 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, or 43.1% to $3.6 million from $2.5 million for the same period last year. 

 

Healthcare Innovations (HCI) segment net revenues and operating income were $6.5 million and $0.8 million in 2017 as compared to $10.3 million and $5.1 million in 2016, respectively, largely due to the prior year including $4.3 million of ACO shared savings payments.  We expect to record ACO payments in the fourth quarter of 2017 ranging from $2.0 to $2.4 million. 

 

Corporate expenses as a percentage of revenue increased to 4.8% in 2017 from 4.3% in 2016, primarily on higher information systems costs.  Deal, transition and other costs were $4.5 million, primarily due to the ongoing conversion of the HH segment to the Homecare Homebase information system.  Such training and related costs are expected to continue through the end of 2017, but not be significant in 2018. 

 

The effective tax rates for the third quarter of 2017 and 2016 were 40.8% and 37.3%, respectively. 

 

Increased average shares outstanding from the Company’s late January sale of common shares reduced Adjusted EPS of $0.43 for the third quarter of 2017 by $0.14.  The third quarter is fully reflective of the dilutive effect of this offering.

 

3


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

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

Home Health segment net revenues increased by $113.1 million or 34.5% to $441.0 million from $327.9 million in the prior year and episodic admissions grew by 40.9% to 89,199 from 63,295 in 2016, primarily due to the CHS-JV acquisition.  Net revenue and episodic admissions in the CHS-JV were $125.2 million and 24,607, respectively.  Excluding the CHS-JV, episodic admissions grew by approximately 2%.

 

Home Health segment contribution before corporate expenses increased $14.1 million, or 32.9%, to $57.1 million, from $43.0 million in the prior year period.  Home Health contribution margins as a percentage of revenue decreased to 12.9% from 13.1% in the prior year, due to the combined impact 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 $16.6 million or 13.6% to $138.5 million from $121.9 million, primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.  Hospice revenues were $22.1 million.  Personal care revenues were down $4.7 million or 3.9% 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 $2.2 million or 24.1%, as compared to the same period of last year.

 

Healthcare Innovations (HCI) segment net revenues decreased $3.5 million to $16.9 million from $20.3 million, while operating income before corporate expenses decreased $4.3 million, largely due to prior year period including $4.3 million of ACO shared savings payments.

 

Corporate expenses as a percentage of revenue was unchanged from the prior year period at 4.5%.  Deal, transition and other costs were $17.1 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 $5.8 million from $4.7 million in the prior year period.

 

Net cash from operating activities of $14.8 million was generated in the first nine months of 2017.  Accounts receivable days sales outstanding were 60 at the end of the third quarter of 2017, as compared to 57 days in the second quarter of 2017 and 53 days at the end of the fourth quarter of 2016.  Increases in days outstanding were largely driven by backlogs in final claims in our Home Health segment, a portion of which was due to the timing of Hurricane Irma in Florida, which delayed payments from Medicare into the fourth quarter.

 

The effective tax rates for 2017 and 2016 were 33.0% and 39.3%, 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

4


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

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 $1.53 for 2017 by $0.46. 

 

Medicare Program Developments 

On November 1, 2017 the Centers for Medicare and Medicaid Services (CMS) released the final rule for FY2018 home health reimbursement.  Among other things, the rule also finalizes proposals for the Home Health Value-Based Purchasing (HHVBP) Model and the Home Health Quality Reporting Program (HH QRP).  CMS did not finalize the Home Health Groupings Model, but instead elected to “further engage with stakeholders to move towards a system that shifts the focus from volume of services to a more patient-centered model”.  The FY2018 impact table included in the final rule suggests the final rule is in line with the preliminary rule published earlier this year.  On September 25, 2017, the Company submitted a comment letter to CMS which provides an alternative course of action that we believe better protects Medicare beneficiaries and their right to access appropriate and necessary home health service.  The comment letter to CMS entitled “CY 2018 Home Health Prospective Payment System Rate Update – September 2017” can be found at http://www.almostfamily.com/pdf/AFAM_2018_HHPPS_Rule_Comments_and_Attachments.pdf.  Additionally, a series of responses to various other 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 also be found at the above website.

 

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 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. 

5


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

Acquisitions

On July 14, 2017, the Company’s CHS-JV purchased assets of a Medicare-certified home health agency and related private duty company for Island Home Care in Key West, Florida.  The purchase price was $1.2 million.  Post-acquisition operating results are reported in the Company’s HH and OHBS segments.

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.

 

Addition of New Director

On November 6, 2017 the Company added Mr. Clifford S. Holtz as the newest member of its board of directors.  Mr. Holtz currently serves as the Chief Operating Officer of the American Red Cross where he has been instrumental in that organization’s growth and development since 2011.  Prior to his Red Cross experience Mr. Holtz has enjoyed a long and successful business career in key roles at AT&T, Nortel Networks and Qwest Communications.  He is a graduate of the University of Chicago Graduate School of Business.

 

6


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Nine months ended

 

September 29, 2017

 

September 30, 2016

 

September 29, 2017

 

September 30, 2016

Net service revenues

$ 194,302

 

$ 160,421

 

$ 596,347

 

$ 470,114

Cost of service revenues (excluding depreciation & amortization)

103,777

 

86,074

 

314,097

 

251,998

Gross margin

90,525

 

74,347

 

282,250

 

218,116

General and administrative expenses:

 

 

 

 

 

 

 

Salaries and benefits

54,840

 

42,952

 

167,743

 

126,134

Other

23,631

 

18,029

 

72,252

 

55,974

Deal, transition & other costs

4,467

 

2,257

 

17,122

 

7,455

Total general and administrative expenses

82,938

 

63,238

 

257,117

 

189,563

Operating income

7,587

 

11,109

 

25,133

 

28,553

Interest expense, net

1,668

 

1,537

 

5,794

 

4,684

Income before noncontrolling interests and income taxes

5,919

 

9,572

 

19,339

 

23,869

Net income - noncontrolling interests

561

 

1,012

 

2,046

 

689

 Income before income tax expense

5,358

 

8,560

 

17,293

 

23,180

Income tax expense

2,188

 

3,194

 

5,713

 

9,120

Net income attributable to Almost Family, Inc.

$ 3,170

 

$ 5,366

 

$ 11,580

 

$ 14,060

 

 

 

 

 

 

 

 

Per share amounts-basic:

 

 

 

 

 

 

 

Average shares outstanding

13,731

 

10,172

 

13,385

 

10,150

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.23

 

$ 0.53

 

$ 0.87

 

$ 1.39

 

 

 

 

 

 

 

 

Per share amounts-diluted:

 

 

 

 

 

 

 

Average shares outstanding

13,941

 

10,310

 

13,627

 

10,328

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.23

 

$ 0.52

 

$ 0.85

 

$ 1.36

 

 

 

 

 

 

 

 

 

 

7


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

    

September 29, 2017

    

December 30, 2016

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,149

 

$

10,110

 

Accounts receivable - net

 

 

131,873

 

 

99,212

 

Prepaid expenses and other current assets

 

 

16,711

 

 

11,432

 

TOTAL CURRENT ASSETS

 

 

167,733

 

 

120,754

 

PROPERTY AND EQUIPMENT - NET

 

 

16,489

 

 

10,732

 

GOODWILL

 

 

390,552

 

 

305,476

 

OTHER INTANGIBLE ASSETS - NET

 

 

145,363

 

 

85,063

 

TRANSACTION DEPOSIT

 

 

 —

 

 

128,930

 

ASSETS HELD FOR SALE

 

 

3,800

 

 

 —

 

OTHER ASSETS

 

 

7,936

 

 

7,757

 

TOTAL ASSETS

 

$

731,873

 

$

658,712

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

Accounts payable

 

$

19,218

 

$

12,122

 

Accrued other liabilities

 

 

50,693

 

 

39,728

 

TOTAL CURRENT LIABILITIES

 

 

69,911

 

 

51,850

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

 

Revolving credit facility

 

 

120,374

 

 

262,456

 

Deferred tax liabilities

 

 

26,769

 

 

21,145

 

Seller notes

 

 

12,761

 

 

12,500

 

Other liabilities

 

 

7,270

 

 

6,581

 

TOTAL LONG-TERM LIABILITIES

 

 

167,174

 

 

302,682

 

TOTAL LIABILITIES

 

 

237,085

 

 

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

 

 

1,414

 

 

1,051

 

Treasury stock, at cost, 169 and 117 shares

 

 

(5,825)

 

 

(3,258)

 

Additional paid-in capital

 

 

288,329

 

 

141,233

 

Retained earnings

 

 

174,962

 

 

163,763

 

Almost Family, Inc. stockholders' equity

 

 

458,880

 

 

302,789

 

Noncontrolling interests - nonredeemable

 

 

33,652

 

 

(865)

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

492,532

 

 

301,924

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

731,873

 

$

658,712

 

8


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

 

Nine months ended

 

September 29, 2017

 

September 30, 2016

Cash flows from operating activities:

 

 

 

Net income attributable to Almost Family, Inc.

$ 11,580

 

$ 14,060

Net income attributable to noncontrolling interests

2,046

 

689

Income before non-controlling interests

13,626

 

14,749

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

 

 

 

Depreciation and amortization

4,924

 

2,813

Provision for uncollectible accounts

11,151

 

10,626

Stock-based compensation

2,094

 

2,013

Loan costs amortization

706

 

207

Deferred income taxes

5,624

 

6,081

 

38,125

 

36,489

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

 

 

 

Accounts receivable

(22,302)

 

(12,831)

Prepaid expenses and other current assets

(4,625)

 

(4,451)

Other assets

(875)

 

(620)

Accounts payable and accrued expenses

4,476

 

(3,302)

Net cash provided by operating activities

14,799

 

15,285

 

 

 

 

Cash flows of investing activities:

 

 

 

Capital expenditures

(5,346)

 

(4,364)

Transaction deposit

128,930

 

 -

Acquisitions, net of cash acquired

(130,069)

 

(31,256)

Net cash used in investing activities

(6,485)

 

(35,620)

 

 

 

 

Cash flows of financing activities:

 

 

 

Credit facility borrowings

202,934

 

215,430

Credit facility repayments, net

(345,016)

 

(195,396)

Debt issuance fees

 -

 

(102)

Proceeds from stock offering, net

143,908

 

 -

Proceeds from stock option exercises

1,505

 

(9)

Purchase of common stock in connection with share awards

(2,567)

 

(484)

Tax impact of share awards

 -

 

257

Principal payments on notes payable and capital leases

(39)

 

(56)

Net cash provided by financing activities

725

 

19,640

 

 

 

 

Net change in cash and cash equivalents

9,039

 

(695)

Cash and cash equivalents at beginning of period

10,110

 

7,522

Cash and cash equivalents at end of period

$ 19,149

 

$ 6,827

 

 

 

 

9


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

ALMOST FAMILY, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

September 29, 2017

 

September 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

141,434

 

72.8

%

$

108,138

 

67.4

%

$

33,296

 

30.8

%

Other Home-Based Services

 

 

46,378

 

23.9

%

 

41,975

 

26.2

%

 

4,403

 

10.5

%

Healthcare Innovations

 

 

6,490

 

3.3

%

 

10,308

 

6.4

%

 

(3,818)

 

(37.0)

%

 

 

 

194,302

 

100.0

%

 

160,421

 

100.0

%

 

33,881

 

21.1

%

Operating income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

16,992

 

12.0

%

 

12,657

 

11.7

%

 

4,335

 

34.2

%

Other Home-Based Services

 

 

3,579

 

7.7

%

 

2,501

 

6.0

%

 

1,078

 

43.1

%

Healthcare Innovations

 

 

812

 

12.5

%

 

5,051

 

49.0

%

 

(4,239)

 

(83.9)

%

 

 

 

21,383

 

11.0

%

 

20,209

 

12.6

%

 

1,174

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

9,329

 

4.8

%

 

6,843

 

4.3

%

 

2,486

 

36.3

%

Deal, transition and other costs

 

 

4,467

 

2.3

%

 

2,257

 

1.4

%

 

2,210

 

97.9

%

Operating income

 

 

7,587

 

3.9

%

 

11,109

 

6.9

%

 

(3,522)

 

(31.7)

%

Interest expense, net

 

 

1,668

 

0.9

%

 

1,537

 

1.0

%

 

131

 

8.5

%

Net income - noncontrolling interests

 

 

561

 

0.3

%

 

1,012

 

0.6

%

 

(451)

 

NM

 

Net income before income taxes

 

 

5,358

 

2.8

%

 

8,560

 

5.3

%

 

$(3,202)

 

(37.4)

%

Income tax expense

 

 

2,188

 

1.1

%

 

3,194

 

2.0

%

 

(1,006)

 

(31.5)

%

Net income attributable to Almost Family, Inc.

 

$

3,170

 

1.6

%

$

5,366

 

3.3

%

$

$(2,196)

 

(40.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

14,571

 

7.5

%

$

15,110

 

9.4

%

$

$(539)

 

(3.6)

%

Adjusted net income (1)

 

$

5,944

 

3.1

%

$

6,781

 

4.2

%

$

$(837)

 

(12.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

September 29, 2017

 

September 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

440,962

 

73.9

%

$

327,899

 

69.7

%

$

113,063

 

34.5

%

Other Home-Based Services

 

 

138,495

 

23.2

%

 

121,871

 

25.9

%

 

16,624

 

13.6

%

Healthcare Innovations

 

 

16,890

 

2.8

%

 

20,344

 

4.3

%

 

(3,454)

 

(17.0)

%

 

 

 

596,347

 

100.0

%

 

470,114

 

100.0

%

 

126,233

 

26.9

%

Operating (loss) income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

57,087

 

12.9

%

 

42,964

 

13.1

%

 

14,123

 

32.9

%

Other Home-Based Services

 

 

11,444

 

8.3

%

 

9,223

 

7.6

%

 

2,221

 

24.1

%

Healthcare Innovations

 

 

796

 

4.7

%

 

5,098

 

25.1

%

 

(4,302)

 

(84.4)

%

 

 

 

69,327

 

11.6

%

 

57,285

 

12.2

%

 

12,042

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

27,072

 

4.5

%

 

21,277

 

4.5

%

 

5,795

 

27.2

%

Deal, transition and other costs

 

 

17,122

 

2.9

%

 

7,455

 

1.6

%

 

9,667

 

129.7

%

Operating income

 

 

25,133

 

4.2

%

 

28,553

 

6.1

%

 

(3,420)

 

(12.0)

%

Interest expense, net

 

 

5,794

 

1.0

%

 

4,684

 

1.0

%

 

1,110

 

23.7

%

Net income - noncontrolling interests

 

 

2,046

 

0.3

%

 

689

 

0.1

%

 

1,357

 

NM

 

Net income before income taxes

 

 

17,293

 

2.9

%

 

23,180

 

4.9

%

 

$(5,887)

 

(25.4)

%

Income tax expense

 

 

5,713

 

1.0

%

 

9,120

 

1.9

%

 

(3,407)

 

(37.4)

%

Net income attributable to Almost Family, Inc.

 

$

11,580

 

1.9

%

$

14,060

 

3.0

%

$

$(2,480)

 

(17.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

49,605

 

8.3

%

$

41,229

 

8.8

%

$

8,376

 

20.3

%

Adjusted net income (1)

 

$

20,870

 

3.5

%

$

18,570

 

4.0

%

$

2,300

 

12.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

September 29, 2017

 

September 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Locations

 

 

241

 

 

 

 

168

 

 

 

 

73

 

43.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All payors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

38,314

 

 

 

 

25,788

 

 

 

 

12,526

 

48.6

%

Census

 

 

30,809

 

 

 

 

23,177

 

 

 

 

7,632

 

32.9

%

Visits

 

 

898,786

 

 

 

 

711,998

 

 

 

 

186,788

 

26.2

%

Cost per visit

 

$

79

 

 

 

$

76

 

 

 

$

 3

 

3.6

%

G&A expense per census

 

$

1,748

 

 

 

$

1,791

 

 

 

$

(43)

 

(2.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

28,148

 

 

 

 

20,751

 

 

 

 

7,397

 

35.6

%

Census

 

 

23,466

 

 

 

 

18,045

 

 

 

 

5,421

 

30.0

%

Episodes

 

 

42,773

 

 

 

 

32,260

 

 

 

 

10,513

 

32.6

%

Visits 

 

 

703,390

 

 

 

 

574,505

 

 

 

 

128,885

 

22.4

%

Revenue  (in thousands)

 

$

119,617

 

84.6

%  

$

94,709

 

87.6

%  

$

24,908

 

26.3

%

Revenue per episode

 

$

2,797

 

 

 

 

2,936

 

 

 

$

(139)

 

(4.7)

%

Visits per episode

 

 

16.4

 

 

 

 

17.8

 

 

 

 

(1.4)

 

(7.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

10,166

 

 

 

 

5,037

 

 

 

 

5,129

 

101.8

%

Census

 

 

7,343

 

 

 

 

5,132

 

 

 

 

2,211

 

43.1

%

Visits

 

 

195,396

 

 

 

 

137,493

 

 

 

 

57,903

 

42.1

%

Revenue  (in thousands)

 

$

21,817

 

15.4

%  

$

13,429

 

12.4

%  

$

8,388

 

62.5

%

Revenue per visit

 

$

112

 

 

 

$

98

 

 

 

$

14

 

14.3

%

Visits per admission

 

 

19.2

 

 

 

 

27.3

 

 

 

 

(8.1)

 

(29.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12


 

Almost Family Reports Third Quarter and Year to Date 2017 Results

November 7, 2017

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

September 29, 2017

 

September 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Locations

 

 

241

 

 

 

 

168

 

 

 

 

73

 

43.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All payors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

119,499

 

 

 

 

81,630

 

 

 

 

37,869

 

46.4

%

Census

 

 

31,243

 

 

 

 

23,237

 

 

 

 

8,006

 

34.5

%

Visits

 

 

2,812,594

 

 

 

 

2,183,295

 

 

 

 

629,299

 

28.8

%

Cost per visit

 

$

77