Last10K.com

Almost Family Inc (AFAM) SEC Filing 8-K Material Event for the period ending Monday, February 26, 2018

Almost Family Inc

CIK: 799231 Ticker: AFAM

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

Exhibit 99.1

 

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

 

 

 

 

 

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

 

 

FOR IMMEDIATE RELEASE

February 27, 2018

 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

 

Louisville, KY, February 27, 2018 –  Almost Family, Inc. (NASDAQ: AFAM), a leading provider of home health and related services, announced today its financial results for the quarter and year ended December 29, 2017.    

 

Fourth Quarter Highlights (1):

·

Net service revenues of approximately $200 million

·

GAAP net income of $8.8 million and GAAP EPS of $0.63(2) per diluted share includes the favorable impact of the 2017 Tax Cuts and Jobs Act of approximately $9.5 million, offset by increases in LHC merger and other deal, transition and other costs of approximately $12.3 million

·

Adjusted EPS of $0.58(1,2)

·

Adjusted EBITDA of $18.4 (1) million

·

Operating cash flows of $15.8 million

 

Full Year Highlights (1):

·

Net service revenues of approximately $800 million

·

GAAP net income of $20.4 million and GAAP EPS of $1.48(2) per diluted share which includes the unfavorable impact of deal, transition and other costs, partially offset by the favorable impact of the 2017 Tax Cuts and Jobs Act.

·

Adjusted EPS of $2.10 (1,2)

·

Adjusted EBITDA of $68.0 (1) million, including an estimated $3.3 million unfavorable impact from the hurricanes in the third quarter of 2017

·

Operating cash flows of $30.5 million


(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 Fourth Quarter and Full Year 2017 Results

February 27, 2018

LHC Group and Almost Family Merger of Equals

On November 15, 2017, Almost Family entered into an agreement with LHC Group (“LHC”) providing for a “merger of equals” business combination between our Company and LHC.  Following approval by both companies’ shareholders, the merger will be an all-stock transaction with an exchange ratio of 0.9150 of LHC shares to be exchanged for each outstanding share of Almost Family stock.  The combined company is expected to have an expanded geographic service territory of 36 states, 781 locations and 76 joint venture partnerships including 336 hospitals.  The combined company will be listed under the LHC name with common shares to be traded on the NASDAQ under ticker symbol LHCG.  On February 22, 2018, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to this transaction expired, satisfying one of the important conditions to closing. The transaction is expected to close near the end of the first quarter of 2018 following both companies’ March 29, 2018 special stockholder meetings to approve the proposed transaction. 

Management Comments

 

William Yarmuth, Chairman and CEO, commented:  “We’re very pleased to close out fiscal 2017 with strong operating results and numerous accomplishments culminating with our planned merger with LHC Group.  Successfully integrating our CHS-JV acquisition and completing the transition of the balance of our home health operations, so that we’re now fully on the Homecare Homebase software platform, bode very well for our future. 

 

“As we leave 2017 and enter into 2018, combining the best of both our long track records of success and patient-focused cultures, as one family, we’ll continue our mission of making lives better through home care.  I am extremely proud of the work we've done, the progress we've made, and the meaningful contribution the Almost Family side of the house will now be able to make to the future success of the combined organization. I look forward to working with the rest of the management team in the continued evolution of these companies -- able to accomplish much more together than either of us could possibly achieve alone.”

 

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

Home Health (HH) segment net revenues increased by 35.5% or $38.0 million to $145.1 million from $107.1 million in the prior year and episodic admissions grew by 39.0% to 29,336 from 21,106.  Net revenue and episodic admissions in the CHS-JV acquisition were $42.5 million and 8,107, respectively.  Excluding the CHS-JV, episodic admissions grew by approximately 1%.

 

Home Health segment contribution before corporate expenses increased $4.9 million, or 36.0%, to $18.5 million from $13.6 million in the prior year with contribution margins as a percentage of revenue remaining consistent at 12.7%. 

 

Other Home-Based Services (OHBS) segment net revenues increased $5.6 million or 13.7% to $46.3 million in 2017 from $40.7 million, primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.  Hospice revenues were $7.7 million for the quarter.  Personal care revenues

2


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

were down $1.7 million or 4.3% 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 decreased $1.2 million, or 27.6% to $3.1 million from $4.3 million for the same period last year, primarily as a result of the prior year including an abnormally low bad debt provision. 

 

Healthcare Innovations (HCI) segment net revenues increased $3.6 million or 62.8% in 2017 to $9.3 million in 2017 as compared to $5.7 million in 2016.  The Company’s ACO enablement operations recorded shared savings incentive revenue of $2.3 million from multiple ACOs participating in the Medicare Shared Savings Program. ACOs managed by the Company saved the Medicare program a total of $25 million in the measurement period.  The Company’s assessment business revenues grew $0.8 million, or 14.8% as assessment volumes grew by 34%.  As a result, operating income for the HCI segment increased $2.7 million to $3.3 million, up from $0.6 million in the prior year.    

 

Corporate expenses as a percentage of revenue decreased to 4.2% in 2017 from 4.7% in 2016.   Deal, transition and other costs were $12.3 million, primarily due to LHC merger transaction costs including approximately $4.0 million for external transaction services and $2.5 million for performance based management incentive programs.  Other deal, transition and other cost drivers primarily relate to the final full quarter of implementation and training costs for our HH segment conversion to the Homecare Homebase information system. 

 

We recorded a tax benefit of $7.8 million in the fourth quarter of 2017 due to a favorable $9.5 million impact from the 2017 Tax Cuts and Jobs Act (Tax Act) partially offset by a negative $1.3 million impact from certain non-deductible, LHC merger related costs.  Excluding the impact of these items in 2017, our tax expense and effective tax rate would have been $0.4 million and 39.5% for the quarter. 

The Tax Act was signed into law on December 22, 2017, is effective for our fiscal 2018 and will reduce our U.S. corporate tax rate from 35% to 21% in 2018.  The Tax Act also resulted in the current year revaluation of our Deferred tax liabilities at the lower tax rate causing a one-time benefit of approximately $9.5 million.  We expect our effective tax rate to approximate 26.5% in 2018.

 

Increased average shares outstanding from the Company’s late January 2017 sale of common shares reduced Adjusted EPS for the fourth quarter of 2017 by $0.18 as compared to 2016.  The fourth quarter is fully reflective of the dilutive effect of this offering.

 

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

Home Health segment net revenues increased by $151 million or 34.7% to $586 million from $435 million in the prior year and episodic admissions grew by 40.4% to 118,535 from 84,401 in 2016, primarily due to the CHS-JV acquisition.  Net revenue and episodic admissions in the CHS-JV were $167.7 million and 32,714, respectively.  Excluding the CHS-JV, episodic admissions grew by approximately 2%, which was reduced by the impact of the Hurricanes.  Volume growth was

3


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

partially offset by a net effective 1% Medicare rate cut and the impact of the Hurricanes.

 

HH segment contribution before corporate expenses increased $19.0 million, or 33.6%, to $75.6 million from $56.6 million in the prior year period.  Home Health contribution margins as a percentage of revenue decreased slightly to 12.9% from 13.0% 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.

 

OHBS segment net revenues increased $22.2 million or 13.7% to $184.8 million from $162.6 million, primarily as a result of the 15 hospice facilities acquired in the CHS-JV transaction.  Hospice revenues were $29.8 million.  Personal care revenues were down $6.4 million or 4.0% 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 $1.0 million or 7.7%, as compared to the same period of last year.

 

HCI segment net revenues increased slightly to $26.1 million in 2017 from $26.0 million in 2016.  Increases in both ACO Management membership fees and Assessment Services revenue largely offset a $1.9 million reduction in ACO shared savings payments revenue in 2017 versus the prior year.  As such, HCI operating income before corporate expenses decreased $1.6 million to $4.0 million in 2017.

 

Each of our operating segments experienced prolonged disruption during the third quarter of 2017 as a result of Hurricanes Irma and Harvey (the “Hurricanes”), with our Home Health segment operations in Florida the most severely affected.  The Hurricanes reduced operating income by approximately $3.3 million, largely on lost volume. 

 

Corporate expenses as a percentage of revenue decreased 0.1% to 4.5% in 2017.  Deal, transition and other costs were $29.4 million, largely driven by transaction costs of the LHC merger and the CHS-JV acquisition, in addition to the conversion of the HH segment to the Homecare Homebase information system.  Unused fees associated with our larger credit facility and higher loan cost amortization increased interest expense to $7.4 million from $6.3 million in the prior year. 

 

Net cash from operating activities of $30.5 million was generated in 2017.  Accounts receivable days sales outstanding were 57 at the end of the fourth quarter of 2017, as compared to 64 days in the third quarter of 2017 and 57 at the end of the fourth quarter of 2016.  The decline in days outstanding from prior quarter was driven by the prior quarter including delays related to our conversion to Homecare Homebase and legacy system run-out. 

 

We recorded a net tax benefit of $2.1 million in our fiscal 2017 period due to a positive $9.5 million impact from the 2017 Tax Cuts and Jobs Act (Tax Act); excluding this Tax Act impact our tax expense and effective tax rate would have been $7.4 million and 40.5%, respectively.  The 2016 full-year effective tax rate was 38.4%.  The increase from 2016 was largely due to an increase in the

4


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

ratio of permanent items to pre-tax income driven largely by merger related differences.  We currently estimate that our effective tax rate will approximate 26.5% in 2018.

Increased average shares outstanding from the Company’s late January 2017 sale of common shares reduced Adjusted EPS for 2017 by $0.63.

 

Matters Impacting Comparability and 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. 

 

In the first quarter in 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. 

 

Other Developments

Medicare Legislation

The Bipartisan Budget Act of 2018, enacted in February 2018, has the following provisions impacting health care services provided at home:

·

Restores the 3% home health rate add-on for patients who reside in rural geographies, effective January 1, 2018.  The add-on rate will be phased downward over a five year period following a formula specified in the legislation.

·

Mandates the development of a new case mix model for home health services using a 30 day payment period, through a transparent process including the home health industry and Congressional committees of Medicare jurisdiction.  The law requires any new case mix model to be implemented in 2020 in a budget neutral manner.

·

Face-to-face documentation improvements allowing the home health medical record in its entirety to be used to support the physician’s attestation of medical necessity.

·

A study to be conducted by the GAO (Government Accounting Office) on Medicare improvements to address the needs of the chronically ill including the provision of services

5


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

provided at home, including interdisciplinary care management, tele-health and tele-monitoring for managed care plans, requiring states to better integrate Medicare and Medicaid services for the dually eligible and extension of the Independence at Home Demonstration Program.

·

A specific home health market basket annual inflationary update percentage of 1.5% for FY2020, leaving intact the full market basket update (generally expected to be between 2% and 3%) for FY2019.

Wage Inflation

Effective with the start of FY2018 the Company implemented a 2% cost of living wage increase for eligible employees.

6


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Year ended

 

December 29, 2017

 

December 30, 2016

 

December 29, 2017

 

December 30, 2016

Net service revenues

$         200,618

 

$      153,427

 

$      796,965

 

$      623,541

Cost of service revenues (excluding depreciation & amortization)

105,297

 

83,475

 

419,394

 

335,472

Gross margin

95,321

 

69,952

 

377,571

 

288,069

General and administrative expenses:

 

 

 

 

 

 

 

Salaries and benefits

55,273

 

42,222

 

223,016

 

168,356

Other

23,680

 

16,458

 

95,932

 

72,430

Deal, transition & other costs

12,283

 

4,387

 

29,405

 

11,842

Total general and administrative expenses

91,236

 

63,067

 

348,353

 

252,628

Operating income

4,085

 

6,885

 

29,218

 

35,441

Interest expense, net

1,597

 

1,599

 

7,391

 

6,285

Income before noncontrolling interests and income taxes

2,488

 

5,286

 

21,827

 

29,156

Net income - noncontrolling interests

1,477

 

(170)

 

3,523

 

519

 Income before income tax expense

1,011

 

5,456

 

18,304

 

28,637

Income tax (benefit) expense

(7,823)

 

1,864

 

(2,110)

 

10,984

Net income attributable to Almost Family, Inc.

$           8,834

 

$         3,592

 

$         20,414

 

$        17,653

 

 

 

 

 

 

 

 

Per share amounts-basic:

 

 

 

 

 

 

 

Average shares outstanding

13,809

 

10,162

 

13,539

 

10,153

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.64

 

$ 0.35

 

$ 1.51

 

$ 1.74

 

 

 

 

 

 

 

 

Per share amounts-diluted:

 

 

 

 

 

 

 

Average shares outstanding

14,014

 

10,330

 

13,757

 

10,346

 

 

 

 

 

 

 

 

Net income attributable to Almost Family, Inc.

$ 0.63

 

$ 0.35

 

$ 1.48

 

$ 1.71

 

 

 

 

 

 

 

 

 

 

7


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

    

December 29, 2017

    

December 30, 2016

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,310

 

$

10,110

 

Accounts receivable - net

 

 

125,860

 

 

99,212

 

Prepaid expenses and other current assets

 

 

14,514

 

 

11,432

 

TOTAL CURRENT ASSETS

 

 

151,684

 

 

120,754

 

PROPERTY AND EQUIPMENT - NET

 

 

15,246

 

 

10,732

 

GOODWILL

 

 

390,754

 

 

305,476

 

OTHER INTANGIBLE ASSETS - NET

 

 

145,522

 

 

85,063

 

TRANSACTION DEPOSIT

 

 

 —

 

 

128,930

 

ASSETS HELD FOR SALE

 

 

3,800

 

 

 —

 

OTHER ASSETS

 

 

10,812

 

 

7,757

 

TOTAL ASSETS

 

$

717,818

 

$

658,712

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

Accounts payable

 

$

22,049

 

$

12,122

 

Accrued other liabilities

 

 

50,182

 

 

39,728

 

Current portion - Seller Notes

 

 

4,961

 

 

 —

 

TOTAL CURRENT LIABILITIES

 

 

77,192

 

 

51,850

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

 

Revolving credit facility

 

 

100,254

 

 

262,456

 

Deferred tax liabilities

 

 

18,595

 

 

21,145

 

Seller notes, net of current portion

 

 

7,800

 

 

12,500

 

Other liabilities

 

 

7,424

 

 

6,581

 

TOTAL LONG-TERM LIABILITIES

 

 

134,073

 

 

302,682

 

TOTAL LIABILITIES

 

 

211,265

 

 

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; 14,243 and 10,504 issued and outstanding

 

 

1,425

 

 

1,051

 

Treasury stock, at cost, 251 and 117 shares

 

 

(10,453)

 

 

(3,258)

 

Additional paid-in capital

 

 

294,448

 

 

141,233

 

Retained earnings

 

 

184,309

 

 

163,763

 

Almost Family, Inc. stockholders' equity

 

 

469,729

 

 

302,789

 

Noncontrolling interests - nonredeemable

 

 

34,568

 

 

(865)

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

504,297

 

 

301,924

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

717,818

 

$

658,712

 

8


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

ALMOST FAMILY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

 

Year ended

 

December 29, 2017

 

December 30, 2016

Cash flows from operating activities:

 

 

 

Net income attributable to Almost Family, Inc.

$                               20,414

 

$                                17,653

Net income attributable to noncontrolling interests

3,523

 

519

Income before noncontrolling interests

23,937

 

18,172

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

 

 

 

Depreciation and amortization

5,916

 

4,445

Provision for uncollectible accounts

14,526

 

11,708

Stock-based compensation

5,468

 

2,760

Loan costs amortization

954

 

336

Deferred income taxes

(2,550)

 

8,725

 

48,251

 

46,146

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

 

 

 

Accounts receivable

(19,664)

 

(18,701)

Prepaid expenses and other current assets

(2,242)

 

(377)

Other assets

(3,966)

 

(1,215)

Accounts payable and accrued expenses

8,151

 

(1,410)

Net cash provided by operating activities

30,530

 

24,443

 

 

 

 

Cash flows of investing activities:

 

 

 

Capital expenditures

(6,112)

 

(6,206)

Transaction deposit

128,930

 

(128,930)

Acquisitions, net of cash acquired

(130,808)

 

(31,486)

Net cash used in investing activities

(7,990)

 

(166,622)

 

 

 

 

Cash flows of financing activities:

 

 

 

Credit facility borrowings

245,471

 

389,328

Credit facility repayments, net

(407,673)

 

(240,662)

Debt issuance fees

(25)

 

(3,900)

Distribution of capital

(128)

 

 -

Proceeds from stock offering, net

143,905

 

 -

Proceeds from stock option exercises

4,344

 

230

Purchase of common stock in connection with share awards

(7,195)

 

(527)

Tax impact of share awards

 -

 

353

Principal payments on notes payable and capital leases

(39)

 

(55)

Net cash (used in) provided by financing activities

(21,340)

 

144,767

 

 

 

 

Net change in cash and cash equivalents

1,200

 

2,588

Cash and cash equivalents at beginning of period

10,110

 

7,522

Cash and cash equivalents at end of period

$                               11,310

 

$                                10,110

 

 

 

 

9


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

ALMOST FAMILY, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

December 29, 2017

 

December 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

145,108

 

72.3

%

$

107,068

 

69.8

%

$

38,040

 

35.5

%

Other Home-Based Services

 

 

46,257

 

23.1

%

 

40,675

 

26.5

%

 

5,582

 

13.7

%

Healthcare Innovations

 

 

9,253

 

4.6

%

 

5,684

 

3.7

%

 

3,569

 

62.8

%

 

 

 

200,618

 

100.0

%

 

153,427

 

100.0

%

 

47,191

 

30.8

%

Operating income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

18,500

 

12.7

%

 

13,599

 

12.7

%

 

4,901

 

36.0

%

Other Home-Based Services

 

 

3,111

 

6.7

%

 

4,296

 

10.6

%

 

(1,185)

 

(27.6)

%

Healthcare Innovations

 

 

3,250

 

35.1

%

 

559

 

9.8

%

 

2,691

 

NM

 

 

 

 

24,861

 

12.4

%

 

18,454

 

12.0

%

 

6,407

 

34.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

8,493

 

4.2

%

 

7,182

 

4.7

%

 

1,311

 

18.3

%

Deal, transition and other costs

 

 

12,283

 

6.1

%

 

4,387

 

2.9

%

 

7,896

 

180.0

%

Operating income

 

 

4,085

 

2.0

%

 

6,885

 

4.5

%

 

(2,800)

 

(40.7)

%

Interest expense, net

 

 

1,597

 

0.8

%

 

1,599

 

1.0

%

 

(2)

 

(0.1)

%

Net income - noncontrolling interests

 

 

1,477

 

0.7

%

 

(170)

 

(0.1)

%

 

1,647

 

NM

 

Net income before income taxes

 

 

1,011

 

0.5

%

 

5,456

 

3.6

%

 

(4,445)

 

(81.5)

%

Income tax (benefit) expense

 

 

(7,823)

 

(3.9)

%

 

1,864

 

1.2

%

 

(9,687)

 

NM

 

Net income attributable to Almost Family, Inc.

 

$

8,834

 

4.4

%

$

3,592

 

2.3

%

$

5,242

 

145.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

18,361

 

9.2

%

$

13,344

 

8.7

%

$

5,017

 

37.6

%

Adjusted net income (1)

 

$

8,044

 

4.0

%

$

6,274

 

4.1

%

$

1,770

 

28.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

 

 

 

 

 

 

 

December 29, 2017

 

December 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Net service revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

586,070

 

73.5

%

$

434,968

 

69.8

%

$

151,102

 

34.7

%

Other Home-Based Services

 

 

184,752

 

23.2

%

 

162,546

 

26.1

%

 

22,206

 

13.7

%

Healthcare Innovations

 

 

26,143

 

3.3

%

 

26,027

 

4.2

%

 

116

 

0.4

%

 

 

 

796,965

 

100.0

%

 

623,541

 

100.0

%

 

173,424

 

27.8

%

Operating income before corporate expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health

 

 

75,587

 

12.9

%

 

56,564

 

13.0

%

 

19,023

 

33.6

%

Other Home-Based Services

 

 

14,555

 

7.9

%

 

13,519

 

8.3

%

 

1,036

 

7.7

%

Healthcare Innovations

 

 

4,046

 

15.5

%

 

5,657

 

21.7

%

 

(1,611)

 

(28.5)

%

 

 

 

94,188

 

11.8

%

 

75,740

 

12.1

%

 

18,448

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

35,565

 

4.5

%

 

28,457

 

4.6

%

 

7,108

 

25.0

%

Deal, transition and other costs

 

 

29,405

 

3.7

%

 

11,842

 

1.9

%

 

17,563

 

148.3

%

Operating income

 

 

29,218

 

3.7

%

 

35,441

 

5.7

%

 

(6,223)

 

(17.6)

%

Interest expense, net

 

 

7,391

 

0.9

%

 

6,285

 

1.0

%

 

1,106

 

17.6

%

Net income - noncontrolling interests

 

 

3,523

 

0.4

%

 

519

 

0.1

%

 

3,004

 

NM

 

Net income before income taxes

 

 

18,304

 

2.3

%

 

28,637

 

4.6

%

 

(10,333)

 

(36.1)

%

Income tax (benefit) expense

 

 

(2,110)

 

(0.3)

%

 

10,984

 

1.8

%

 

(13,094)

 

NM

 

Net income attributable to Almost Family, Inc.

 

$

20,414

 

2.6

%

$

17,653

 

2.8

%

$

2,761

 

15.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

67,965

 

8.5

%

$

54,552

 

8.7

%

$

13,413

 

24.6

%

Adjusted net income (1)

 

$

28,864

 

3.6

%

$

24,640

 

4.0

%

$

4,224

 

17.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See Non-GAAP Financial Measures below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

December 29, 2017

 

December 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev

    

Amount

    

%

 

Locations

 

 

242

 

 

 

 

168

 

 

 

 

74

 

44.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All payors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

39,580

 

 

 

 

25,946

 

 

 

 

13,634

 

52.5

%

Census

 

 

31,166

 

 

 

 

22,210

 

 

 

 

8,956

 

40.3

%

Visits

 

 

916,968

 

 

 

 

686,982

 

 

 

 

229,986

 

33.5

%

Cost per visit

 

$

78

 

 

 

$

77

 

 

 

$

 2

 

2.0

%

G&A expense per census

 

$

1,761

 

 

 

$

1,836

 

 

 

$

(75)

 

(4.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

29,336

 

 

 

 

21,106

 

 

 

 

8,230

 

39.0

%

Census

 

 

23,617

 

 

 

 

17,827

 

 

 

 

5,790

 

32.5

%

Episodes

 

 

44,567

 

 

 

 

32,428

 

 

 

 

12,139

 

37.4

%

Visits 

 

 

716,603

 

 

 

 

566,227

 

 

 

 

150,376

 

26.6

%

Revenue  (in thousands)

 

$

121,420

 

83.7

%  

$

94,255

 

88.0

%  

$

27,165

 

28.8

%

Revenue per episode

 

$

2,724

 

 

 

 

2,907

 

 

 

$

(182)

 

(6.3)

%

Visits per episode

 

 

16.1

 

 

 

 

17.5

 

 

 

 

(1.4)

 

(7.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-episodic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

 

10,244

 

 

 

 

4,840

 

 

 

 

5,404

 

111.7

%

Census

 

 

7,549

 

 

 

 

4,383

 

 

 

 

3,166

 

72.2

%

Visits

 

 

200,365

 

 

 

 

120,755

 

 

 

 

79,610

 

65.9

%

Revenue  (in thousands)

 

$

23,688

 

16.3

%  

$

12,813

 

12.0

%  

$

10,875

 

84.9

%

Revenue per visit

 

$

118

 

 

 

$

106

 

 

 

$

12

 

11.4

%

Visits per admission

 

 

19.6

 

 

 

 

24.9

 

 

 

 

(5.4)

 

(21.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12


 

Almost Family Reports Fourth Quarter and Full Year 2017 Results

February 27, 2018

HOME HEALTH OPERATING METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

 

 

 

 

 

 

 

December 29, 2017

 

December 30, 2016

 

Change

 

 

    

Amount

    

% Rev

    

Amount

    

% Rev