Almost Family Reports Third Quarter 2016 Results

LOUISVILLE, Ky., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Almost Family, Inc. (Nasdaq:AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the quarter ended September 30, 2016.

Third Quarter Highlights (1):
  • Record net service revenues of approximately $160.4 million with record revenues in our PC and HCI segments
  • GAAP EPS of $0.52 per diluted share, down $0.27 from a year ago, Adjusted EPS of $0.66, up $0.14 from a year ago
  • GAAP net income of $5.4 million, down $2.4 million from a year ago, Adjusted net income of $6.8 million, up $1.7 million from a year ago
  • Record Adjusted EBITDA of $14.8 million, up 39% from a year ago
  • Healthcare Innovations (HCI) segment recorded Medicare Shared Savings payment success fees from multiple ACOs, while performing over 21,000 in-home assessments and having nearly 122,000 ACO beneficiaries and 15 Accountable Care Organizations under contract
  • Unusually high health insurance claims and a significant rate cut in Connecticut's Medicaid-sponsored behavioral health program reduced diluted EPS by $0.06 and $0.05, respectively
  • A change in the Company's expected effective tax rate recognized in the current quarter increased diluted EPS by $0.02
  • Year to date operating cash flow of $15.3 million
  • On October 14, 2016, we signed a definitive agreement to acquire a controlling interest in the entity holding the home health and hospice assets of Community Health Systems, Inc.

(1) See Non-GAAP Financial Measures starting on page 12

Management Comments William Yarmuth, Chairman and Chief Executive Officer, commented:  "We're very pleased with the progress in our core home health business in the quarter where we continue to generate meaningful organic growth, while also working through the integration of our 2015 and 2016 acquisitions.  In addition, we're especially pleased to report outstanding record results in our healthcare innovations segment which is drawing increased attention as it makes significant strides in its earnings and developments.  At the same time all of this has been accomplished, we also just recently announced entering into the nation's largest public company hospital-home health joint venture, enabling us, in a very strategic way, to continue our strong growth trajectory."

Steve Guenthner, President added:  "Although it was somewhat masked by the acquisitions of certain agencies where we did not acquire accounts receivable, we had especially strong operating cash flows in the third quarter reducing days outstanding to 53, the lowest level in quite some time.  Additionally, we were pleased to see the somewhat favorable final rule for Medicare reimbursement in 2017, continuing the comparatively favorable tone of regulators toward home health."

Yarmuth concluded:  "As we move through the balance of 2016 and into 2017 our key focus will be the successful integration of our new strategic home health partnership with CHS, continuing our work on organic volume growth and improving the financial results of all our business units."

The Company noted that the third quarter typically marks the seasonally low-water point of its home health business in terms of admissions and the high point for HCI results due to the timing of accounting recognition for success fees under the Medicare Shared Savings Program for Accountable Care Organizations. 

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