LOUISVILLE, Ky., March 02, 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 period from October 3, 2015 to January 1, 2016 and fiscal year 2015.

Fourth Quarter Highlights:

• Record Net service revenues of approximately $145 million
• Adjusted earnings from home health operations⁽¹⁾ of $6.2 million, $0.62 per diluted share versus $0.48 in the fourth quarter of 2014
• Adjusted EBITDA from home health operations⁽¹⁾ of $13.1 million
• GAAP Net income, including deal and transition costs, attributable to Almost Family, Inc. of $2.8 million, $0.28 per diluted share versus $0.50 in the fourth quarter of 2014
• Operating cash flow of $7.9 million

Fiscal Year Highlights:

• Record Net service revenues of approximately $532 million
  
• Adjusted earnings from home health operations⁽¹⁾ of $21.4 million, $2.20 per diluted share versus $1.79 in 2014
  
• Adjusted EBITDA from home health operations⁽¹⁾ of $43.9 million
  
• GAAP Net income, including deal and transition costs, attributable to Almost Family, Inc. of $20.0 million, $2.05 per diluted share versus $1.45 in 2014
  
• Operating cash flow of $21.2 million
  

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

Management Comments

William Yarmuth, Chairman and Chief Executive Officer, commented:  “We are exceptionally pleased with the overall progress we have made over the course of the last twelve months.  We have completed six meaningful transactions putting nearly $150 million to work in an accretive package of acquisitions.  We are generating record revenues and solid earnings growth, strong cash flows and growth in share value.  I am excited about the portfolio of companies we have brought into our Healthcare Innovations group and look forward to working with them with the goal of more effectively connecting home care to the overall health care delivery system.

Steve Guenthner, President added:  “We are as optimistic as we’ve ever been about the prospects for home health and the opportunities for Almost Family in particular.  The last twelve months have been nearly transformational for our company and we plan to continue our trajectory.  While we have completed a record number of acquisitions over the last twelve months many more opportunities remain available to us.  We have become recognized as a successful consolidator in a consolidating industry, with strong access to low cost capital and a proven track record for integration.  On the acquisition front we will continue to actively seek quality acquisition candidates that meet our profile.  On the regulatory front, we will continue to work with regulators at the national and state level to propose, and help enact, good policies that enhance program integrity, save program dollars and promote quality of life for our patients.”

Yarmuth concluded:  “While we’re proud of our success, we have meaningful work ahead of us in 2016 making improvements to our existing business, adapting to the challenges of the newly implemented Value Based Purchasing reimbursement system, further evolving within our Healthcare Innovations group and bringing more quality organizations into our network of quality home care providers.  All of this is instrumental to continuing our overall business development and growth trajectory through 2016 and beyond.  I want to once again welcome the WillCare, Blackstone, Ingenios and LTS teams that joined us over the last year and express my tremendous appreciation to the more than 14,000 Almost Family employees and managers who have made our success possible and on whom the future of our Company depends.”

Fourth Quarter Financial Results

VN segment fourth quarter results include a full quarter of WillCare and a partial quarter of Black Stone.  WillCare and Black Stone contributed $11.9 million in revenue and $2.4 million in contribution to the VN results.  VN segment net revenues increased to $105.4 million from $95.7 million in the prior year as WillCare and Black Stone related revenues were partially offset by lower revenues, primarily related to certain branch closures.  Total Medicare admissions grew by 6% to 23,062 from 21,782, resulting from acquired operations partially offset by a 3% decrease in organic admissions, primarily in Medicare reimbursed on a per-visit basis which declined 12%.  VN segment contribution was $12.9 million or 12.3% of revenue and increased 19.8% over the same period of last year.  During the fourth quarter, we closed eight underperforming VN locations in various markets which lost $0.3 million in the fourth quarter.  Excluding closed locations, episodic Medicare admissions grew 1% organically as compared to the fourth quarter of 2014.  Excluding closed locations, Medicare admissions outside of Florida episodic grew organically by 4%, while Florida episodic admissions declined 5%.

WillCare and Black Stone contributed $11.2 million in revenue and $1.8 million in contribution to the PC segment results.  PC segment net revenues increased 33.9% to a record $38.6 million in 2015 from $28.9 million in 2014, as acquired WillCare and Black Stone revenues were partially offset by a decline in organic revenues primarily related to changes in a certain Medicaid program in Ohio.  PC segment contribution increased 46.6% as compared to the same period of last year.

Deal, transition and other costs for 2015 include $3.5 million of deal and transition primarily related to the 2015 acquisitions and $1.3 million costs related to the closure of VN underperforming locations.  Due to the Company’s use of the 52-53 week calendar the fourth quarter of 2015 ended on January 1, 2016 thus including the 2016 New Year’s Day holiday.  This reduced diluted EPS for the quarter by $0.03.

Net cash from operating activities of $7.9 million was generated in the fourth quarter of 2015.

The effective tax rate for the fourth quarter of 2015 was 43.0% compared to 40.8% for the fourth quarter of 2014, primarily due to certain nondeductible deal and transaction costs. 

Fiscal Year Financial Results

VN segment net revenues increased $20.3 million, to $401.1 million from $380.8 million in the prior year.  VN segment net revenues were a record high.  Medicare admissions grew by 3.9% to 91,027 from 87,650 of which 1.0% were organic.  VN segment contribution of $49.9 million or 12.4% of revenue increased 16.3% over $42.9 million in the same period of last year.  Fiscal year 2015 includes four months of WillCare and almost two months of Black Stone.  WillCare and Black Stone contributed $15.3 million in revenue and $3.0 million in contribution to the VN results. 

During the fourth quarter, we closed eight underperforming VN locations in various markets which lost $1.1 million in 2015.  Excluding closed locations, episodic Medicare admissions grew 4% organically as compared to 2014.  Excluding closed locations, outside of Florida episodic Medicare admissions grew organically by 10%, while Florida episodic admissions declined 4%.

PC segment net revenues increased $15.2 million or 13.5% to a record $127.7 million in 2015 from $112.5 million in 2014.  PC segment contribution increased 13.8% to a record $14.2 million as compared to $12.5 million in the same period of last year.  WillCare and Black Stone contributed $15.9 million in revenue and $2.5 million in contribution to the PC segment results. 

Net cash from operating activities of $21.2 million was generated in 2015.  Investing activities used $83.6 million of cash in acquisitions.  Financing activities include borrowings of $66.1 million for the 2015 acquisitions, less amounts repaid.

The effective tax rate for 2015 was 34.5% compared to 41.0% for 2014.  The lower effective tax rate for the 2015 period was primarily related to the tax treatment of a legal settlement in the third quarter of 2015.  We expect our effective tax rate to normalize at 40.5% going forward.

Due to our use of the 52-53 week calendar, our fiscal 2015 ended on January 1, 2016 thus including the 2016 New Year’s Day holiday.  This reduced diluted EPS for the year by $0.03.

The Year in Review:

• The last year marked the most acquisitive in Company history, with approximately $150 million invested in and total run-rate revenues of approximately $140 million acquired in a total of 6 transactions with a meaningful impact being made in all of the Company’s operating segments.
• Home health acquisitions totaling $116 million in revenue and $97 million in total capital deployed were made through three separate transactions in adding the state of New York, and significantly expanding the Company’s presence in Ohio and New Jersey.
• In February 2015, the Company announced the formation of its HealthCare Innovations (HCI) Segment with its investment in NavHealth following its 2013 acquisition of Imperium Health Management.
• Acquisition of in-home assessment providers Ingenios (July 2015) and LTS (January 2016) increases total transactions to 4 and a total of $57 million capital deployed.  The Company’s HCI segment is expected to generate positive earnings and cash flows following the LTS transaction.
• The Company’s access to capital remains strong and balanced with the expansion of its bank credit facility to $175 million earlier in 2015, and the use of $31 million in common equity and $11 million in long-term notes to finance its recent acquisitions.
• The Company’s annualized run-rate revenues with all acquisitions included is expected to top $630 million, an increase of two-thirds over 2013’s $360 million.

The Company noted that it will continue to aggressively pursue quality acquisitions of in-home health care service providers consistent with its stated strategy and the types of services its segments currently provide.

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(UNAUDITED)
	Three month period ended								Fiscal year ended
	January 1, 2016 (1)				December 31, 2014				January 1, 2016 (1)				December 31, 2014
Net service revenues	$	145,217			$	124,756			$	532,214			$	495,829
Cost of service revenues (excluding depreciation & amortization)		77,696				66,390				281,842				263,994
Gross margin		67,521				58,366				250,372				231,835
General and administrative expenses:
Salaries and benefits		38,856				35,293				147,849				139,793
Other		18,305				15,822				66,281				62,261
Deal and transition costs		4,835				(703	)			4,139				5,304
Total general and administrative expenses		61,996				50,412				218,269				207,358
Operating income		5,525				7,954				32,103				24,477
Interest expense, net		(759	)			(365	)			(2,006	)			(1,442	)
Income before income taxes		4,766				7,589				30,097				23,035
Income tax expense		(2,097	)			(3,266	)			(10,556	)			(9,511	)
Net income		2,669				4,323				19,541				13,524
Net loss (income) - noncontrolling interests		137				424				468				239
Net income attributable to Almost Family, Inc.	$	2,806			$	4,747			$	20,009			$	13,763
Per share amounts-basic:
Average shares outstanding		9,775				9,352				9,505				9,333
Net income attributable to Almost Family, Inc.	$	0.29			$	0.51			$	2.11			$	1.47
Per share amounts-diluted:
Average shares outstanding		10,000				9,474				9,745				9,462
Net income attributable to Almost Family, Inc.	$	0.28			$	0.50			$	2.05			$	1.45

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, October 3, 2015 to January 1, 2016 and the year ended January 1, 2016 includes the New Year’s Day holiday observed on January 1, 2016.

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
		January 1, 2016					December 31, 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$		7,522			$		6,886
Accounts receivable - net				92,270					74,602
Prepaid expenses and other current assets				9,672					10,420
TOTAL CURRENT ASSETS				109,464					91,908
PROPERTY AND EQUIPMENT - NET				10,000					5,575
GOODWILL				277,061					192,523
OTHER INTANGIBLE ASSETS				64,629					54,402
OTHER ASSETS				3,615					850
TOTAL ASSETS		$		464,769			$		345,258
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$		12,297			$		9,257
Accrued other liabilities				42,524					42,326
Current portion - notes payable and capital leases				—					51
TOTAL CURRENT LIABILITIES				54,821					51,634
LONG-TERM LIABILITIES:
Revolving credit facility				113,790					46,447
Deferred tax liabilities				13,094					11,280
Seller Notes				6,556					1,500
Other liabilities				2,608					1,205
TOTAL LONG-TERM LIABILITIES				136,048					60,432
TOTAL LIABILITIES				190,869					112,066
NONCONTROLLING INTEREST - REDEEMABLE -
HEALTHCARE INNOVATIONS				3,639					3,639
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $0.05; authorized 2,000 shares; none issued or outstanding				—					—
Common stock, par value $0.10; authorized 25,000; 10,125 and 9,574 issued and outstanding				1,013					957
Treasury stock, at cost, 103 and 94 shares				(2,731	)				(2,392	)
Additional paid-in capital				127,253					105,862
Noncontrolling interest - nonredeemable				(730	)				(420	)
Retained earnings				145,456					125,546
TOTAL STOCKHOLDERS’ EQUITY				270,261					229,553
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$		464,769			$		345,258

ALMOST FAMILY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
	January 1, 2016 (1)				December 31, 2014
Cash flows of operating activities:
Net income	$	19,541			$	13,524
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,208				4,103
Provision for uncollectible accounts		12,743				9,417
Stock-based compensation		2,121				1,814
Deferred income taxes		3,914				5,500
		42,527				34,358
Change in certain net assets and liabilities, net of the effects of acquisitions:
Accounts receivable		(17,393	)			(25,613	)
Prepaid expenses and other current assets		2,402				(647	)
Other assets		(585	)			165
Accounts payable and accrued expenses		(5,745	)			(1,277	)
Net cash provided by operating activities		21,206				6,986
Cash flows of investing activities:
Capital expenditures		(3,117	)			(1,231	)
Cost basis investment		(1,000	)			-
Acquisitions, net of cash acquired		(82,578	)			(969	)
Net cash used in investing activities		(86,695	)			(2,200	)
Cash flows of financing activities:
Credit facility borrowings		233,425				66,632
Credit facility repayments		(166,082	)			(76,185	)
Debt issuance fees		(1,161	)			-
Proceeds from stock option exercises		128				156
Purchase of common stock in connection with share awards		(338	)			(52	)
Tax impact of share awards		215				40
Payment of special dividend in connection with share awards		(50	)			(35	)
Principal payments on notes payable and capital leases		(12	)			(702	)
Net cash provided by (used in) financing activities		66,125				(10,146	)
Net change in cash and cash equivalents		636				(5,360	)
Cash and cash equivalents at beginning of period		6,886				12,246
Cash and cash equivalents at end of period	$	7,522			$	6,886

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, the 2015 period includes a full year plus the New Year's holiday observed January 1, 2016.

ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
		Three months ended
		January 1, 2016 (2)									December 31, 2014									Change
		Amount					% Rev				Amount					% Rev				Amount					%
Home Health Operations
Net service revenues:
Visiting Nurse		$		105,424				73.2	%		$		95,724				76.8	%		$		9,700				10.1	%
Personal Care				38,626				26.8	%				28,850				23.2	%				9,776				33.9	%
				144,050				100.0	%				124,574				100.0	%				19,476				15.6	%
Operating income before corporate expenses:
Visiting Nurse				12,916				12.3	%				10,779				11.3	%				2,137				19.8	%
Personal Care				4,600				11.9	%				3,137				10.9	%				1,463				46.6	%
				17,516				12.2	%				13,916				11.2	%				3,600				25.9	%
Healthcare Innovations Operations
Revenue				1,167				100.0	%				182				100.0	%				985				541.2	%
Operating loss before noncontrolling interest				(783	)			-67.1	%				(408	)			-224.2	%				(375	)			91.9	%
Corporate expenses				6,373				4.4	%				6,257				5.0	%				116				1.9	%
Deal and transition costs				4,835				3.3	%				(703	)			-0.6	%				5,538				-787.8	%
Operating income				5,525				3.8	%				7,954				6.4	%				(2,429	)			-30.5	%
Interest expense, net				(759	)			-0.5	%				(365	)			-0.3	%				(394	)			107.9	%
Income tax expense				(2,097	)			-1.4	%				(3,266	)			-2.6	%				1,169				-35.8	%
Net income		$		2,669				1.8	%		$		4,323				3.5	%		$		(1,654	)			-38.3	%
Adjusted EBITDA from home health operations (1)		$		13,067				9.0	%		$		9,572				7.7	%		$		3,495				36.5	%
Adjusted earnings from home health operations (1)		$		6,179				4.3	%		$		4,478				3.6	%		$		1,701				38.0	%

(1) See Non-GAAP Financial Measures starting on page 11.

(2) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, the 2015 period includes a full year plus the New Year’s holiday observed January 1, 2016.

ALMOST FAMILY, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(UNAUDITED)
(In thousands)
		Year ended
		January 1, 2016 (2)									December 31, 2014									Change
		Amount					% Rev				Amount					% Rev				Amount					%
Home Health Operations
Net service revenues:
Visiting Nurse		$		401,051				75.8	%		$		380,788				77.2	%		$		20,263				5.3	%
Personal Care				127,712				24.2	%				112,497				22.8	%				15,215				13.5	%
				528,763				100.0	%				493,285				100.0	%				35,478				7.2	%
Operating income before corporate expenses:
Visiting Nurse				49,872				12.4	%				42,899				11.3	%				6,973				16.3	%
Personal Care				14,170				11.1	%				12,453				11.1	%				1,717				13.8	%
				64,042				12.1	%				55,352				11.2	%				8,690				15.7	%
Healthcare Innovations Operations
Revenue				3,451				100.0	%				2,544				100.0	%				907				35.7	%
Operating loss before noncontrolling interest				(1,217	)			-35.3	%				(13	)			-0.5	%				(1,204	)		NM
Corporate expenses				26,583				5.0	%				25,558				5.2	%				1,025				4.0	%
Deal and transition costs				4,139				0.8	%				5,304				1.1	%				(1,165	)			-22.0	%
Operating income				32,103				6.0	%				24,477				4.9	%				7,626				31.2	%
Interest expense, net				(2,006	)			-0.4	%				(1,442	)			-0.3	%				(564	)			39.1	%
Income tax expense				(10,556	)			-2.0	%				(9,511	)			-1.9	%				(1,045	)			11.0	%
Net income		$		19,541				3.7	%		$		13,524				2.7	%		$		6,017				44.5	%
Adjusted EBITDA from home health operations (1)		$		43,938				8.3	%		$		35,841				7.2	%		$		8,097				22.6	%
Adjusted earnings from home health operations (1)		$		21,410				4.0	%		$		16,924				3.4	%		$		4,486				26.5	%

(1) See Non-GAAP Financial Measures starting on page 11.

(2) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, the 2015 period includes a full year plus the New Year’s Day holiday observed January 1, 2016.

VISITING NURSE SEGMENT OPERATING METRICS
		Three months ended
		January 1, 2016 (1)									December 31, 2014									Change
		Amount					%				Amount					%				Amount					%
Average number of locations				165									160									5				3.1	%
All payors:
Patient months				90,354									80,232									10,122				12.6	%
Admissions				26,423									24,612									1,811				7.4	%
Billable visits				694,783									631,145									63,638				10.1	%
Medicare:
Admissions				23,062				87	%				21,782				89	%				1,280				5.9	%
Revenue (in thousands)		$		96,897				92	%		$		91,633				96	%		$		5,264				5.7	%
Revenue per admission		$		4,202							$		4,207							$		(5	)			-0.1	%
Billable visits				614,182				88	%				566,868				90	%				47,314				8.3	%
Recertifications				12,722									11,913									809				6.8	%
Payor mix % of Admissions
Traditional Medicare Episodic				83.2	%								84.2	%								-1.0	%
Replacement Plans Paid Episodically				4.4	%								3.3	%								1.1	%
Replacement Plans Paid Per Visit				12.4	%								12.5	%								-0.1	%
Non-Medicare:
Admissions				3,361				13	%				2,830				11	%				531				18.8	%
Revenue (in thousands)		$		8,527				8	%		$		4,091				4	%		$		4,436				108.4	%
Revenue per admission		$		2,537							$		1,446							$		1,091				75.5	%
Billable visits				80,601				12	%				64,277				10	%				16,324				25.4	%
Recertifications				1,310									499									811				162.5	%
Payor mix % of Admissions
Medicaid & other governmental				30.1	%								25.6	%								4.5	%
Private payors				69.9	%								74.4	%								-4.5	%

PERSONAL CARE SEGMENT OPERATING METRICS
		Three months ended
		January 1, 2016 (1)					December 31, 2014					Change
		Amount			%		Amount			%		Amount			%
Average number of locations			73					61					12			19.7	%
Admissions			2,076					1,619					457			28.2	%
Patient months of care			36,605					22,858					13,747			60.1	%
Billable hours			1,757,886					1,315,575					442,311			33.6	%
Revenue per billable hour		$	21.97				$	21.93				$	0.04			0.2	%

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, October 3, 2015 to January 1, 2016 includes the New Year’s Day holiday observed on January 1, 2016.

VISITING NURSE SEGMENT OPERATING METRICS
		Year ended
		January 1, 2016 (1)									December 31, 2014									Change
		Amount					%				Amount					%				Amount					%
Average number of locations				163									167									(4	)			-2.4	%
All payors:
Patient months				333,343									319,430									13,913				4.4	%
Admissions				102,381									98,634									3,747				3.8	%
Billable visits				2,621,443									2,507,067									114,376				4.6	%
Medicare:
Admissions				91,027				89	%				87,650				89	%				3,377				3.9	%
Revenue (in thousands)		$		377,724				94	%		$		365,075				96	%		$		12,649				3.5	%
Revenue per admission		$		4,150							$		4,165							$		(16	)			-0.4	%
Billable visits				2,356,687				90	%				2,259,896				90	%				96,791				4.3	%
Recertifications				47,999									47,875									124				0.3	%
Payor mix % of Admissions
Traditional Medicare Episodic				84.1	%								84.0	%								0.1	%
Replacement Plans Paid Episodically				4.1	%								3.4	%								0.7	%
Replacement Plans Paid Per Visit				11.8	%								12.6	%								-0.8	%
Non-Medicare:
Admissions				11,354				11	%				10,984				11	%				370				3.4	%
Revenue (in thousands)		$		23,327				6	%		$		15,713				4	%		$		7,614				48.5	%
Revenue per admission		$		2,055							$		1,431							$		624				43.6	%
Billable visits				264,756				10	%				247,171				10	%				17,585				7.1	%
Recertifications				2,991									1,865									1,126				60.4	%
Payor mix % of Admissions
Medicaid & other governmental				30.6	%								23.3	%								7.3	%
Private payors				69.4	%								76.7	%								-7.3	%

PERSONAL CARE SEGMENT OPERATING METRICS
		Year ended
		January 1, 2016 (1)					December 31, 2014					Change
		Amount			%		Amount			%		Amount			%
Average number of locations			65					61					4			6.6	%
Admissions			6,944					6,458					486			7.5	%
Patient months of care			110,082					89,880					20,202			22.5	%
Billable hours			5,792,106					5,304,089					488,017			9.2	%
Revenue per billable hour		$	22.05				$	21.21				$	0.84			4.0	%

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, the 2015 period includes a full year plus the New Year’s Day holiday observed on January 1, 2016.

HEALTHCARE INNOVATIONS SUPPLEMENTAL DATA
		Three months ended
		January 1, 2016					December 31, 2014					Change
		Amount					Amount					Amount				%
Medicare enrollees under management				83,133					43,972				39,161				89.1	%
ACOs under contract				11					7				4				57.1	%
Net loss - noncontrolling interest		$		(783	)		$		(408	)		$	(375	)			91.9	%
Assets				22,024					9,254				12,770				138.0	%
Liabilities				(1,525	)				191				(1,716	)			-898.4	%
Non-controlling interest - redeemable				3,639					3,639				-				0.0	%
Non-controlling interest - nonredeemable				(144	)				(157	)			13				-8.3	%

		Year ended
		January 1, 2016					December 31, 2014					Change
		Amount					Amount					Amount				%
Medicare enrollees under management				83,133					43,972				39,161				89.1	%
ACOs under contract				11					7				4				57.1	%
Net loss - noncontrolling interest		$		(1,217	)		$		(13	)		$	(1,204	)		NM
Assets				22,024					9,254				12,770				138.0	%
Liabilities				(1,525	)				191				(1,716	)			-898.4	%
Non-controlling interest - redeemable				3,639					3,639				-				0.0	%
Non-controlling interest - nonredeemable				(99	)				(5	)			(94	)		NM

Non-GAAP Financial Measures

The information provided in some of the tables in this release includes certain non-GAAP financial measures as defined under SEC rules.  In accordance with SEC rules, the Company has provided, in the supplemental information, a reconciliation of those measures to the most directly comparable GAAP measures.

Adjusted Earnings from Home Health Operations

Adjusted earnings from home health operations is not a measure of financial performance under accounting principles generally accepted in the United States of America.  It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with generally accepted accounting principles. The presentation of adjusted earnings from home health operations provides investors with pertinent information to enable comparison of financial performance between periods by excluding certain items that the Company believes are not representative of its ongoing operations due to the nature of the items. 

The following tables set forth a reconciliation of net income attributable to Almost Family, Inc. to adjusted earnings from home health operations:

ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EARNINGS
FROM HOME HEALTH OPERATIONS
(In thousands)
		Three month period ended								Year ended
(in thousands)		January 1, 2016 (1)			December 31, 2014					January 1, 2016 (1)			December 31, 2014
Net income attributable to Almost Family, Inc.		$	2,806		$		4,747			$	20,009		$	13,763
Addbacks:
Deal, transition and other, net of tax			2,997		$		(418	)		$	737		$	3,156
Adjusted earnings			5,803				4,329				20,746			16,919
Healthcare Innovations operating loss after NCI, net of tax			376		$		149			$	665		$	5
Adjusted earnings from home health operations		$	6,179				4,478				21,411			16,924
Per share amounts-diluted:
Average shares outstanding			10,000				9,474				9,745			9,462
Net income attributable to Almost Family, Inc.		$	0.28		$		0.50			$	2.05		$	1.45
Addbacks:
Deal, transition and other, net of tax			0.30				(0.04	)			0.08			0.33
Adjusted earnings			0.58				0.46				2.13			1.79
Healthcare Innovations operating loss after NCI, net of tax			0.04				0.02				0.07			0.00
Adjusted earnings from home health operations		$	0.62		$		0.48			$	2.20		$	1.79

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, October 3, 2015 to January 1, 2016 and the year ended January 1, 2016 includes the New Year’s Day holiday observed on January 1, 2016.

Adjusted EBITDA from Home Health Operations

Adjusted earnings before interest, income tax, depreciation and amortization, amortization of stock-based compensation, deal, transition and other and Healthcare Innovations operating loss (Adjusted EBITDA from Home Health Operations) is not a measure of financial performance under accounting principles generally accepted in the United States of America.  It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with generally accepted accounting principles.  The items excluded from Adjusted EBITDA from Home Health Operations are significant components in understanding and evaluating financial performance and liquidity.  Management routinely calculates and communicates Adjusted EBITDA from Home Health Operations and believes that it is useful to investors because it provides a common analytical indicator within our industry to evaluate performance, measure leverage capacity and debt service ability, and to estimate current or prospective enterprise value.  Adjusted EBITDA is also used in certain covenants contained in our credit agreement.

The following tables set forth a reconciliation of net income from continuing operations to Adjusted EBITDA from Home Health Operations:

ALMOST FAMILY, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA
FROM HOME HEALTH OPERATIONS
(In thousands)
		Three month period ended								Year ended
(in thousands)		January 1, 2016 (1)			December 31, 2014					January 1, 2016 (1)			December 31, 2014
Net income from continuing operations		$	2,806		$		4,747			$	20,009		$		13,763
Add back:
Interest expense			759				365				2,006				1,442
Income tax expense			2,097				3,266				10,556				9,511
Depreciation and amortization			1,003				938				3,628				4,103
Stock-based compensation from home health operations			666				478				2,121				1,814
Deal and transition costs			4,835				(703	)			4,139				5,304
Adjusted EBITDA			12,166				9,091				42,459				35,937
Healthcare Innovations operating loss			901				481				1,479				(96	)
Adjusted EBITDA from home health operations		$	13,067		$		9,572			$	43,938		$		35,841

(1) The Company changed to a 52-53 week reporting calendar in 2015.  As a result, October 3, 2015 to January 1, 2016 and the year ended January 1, 2016 includes the New Year’s Day holiday observed on January 1, 2016.

About Almost Family, Inc.

Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Ohio, Tennessee, New York, Connecticut, Kentucky, New Jersey, Massachusetts, Georgia, Pennsylvania, Indiana, Missouri, Illinois, Mississippi and Alabama (in order of revenue significance).  Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment, a personal care segment and a healthcare innovations segment.  Almost Family operates over 230 branch locations in fifteen U.S. states.

Forward Looking Statements

All statements, other than statements of historical facts, included in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “believe,” “estimate,” “project,” “anticipate,” “continue,” or similar terms, variations of those terms or the negative of those terms. These forward-looking statements are based on the Company's current plans, expectations and projections about future events.

Because forward-looking statements involve risks and uncertainties, the Company's actual results could differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties which could cause actual results to differ materially include: regulatory approvals or third party consents may not be obtained; the impact of further changes in healthcare reimbursement systems, including the ultimate outcome of potential changes to Medicare reimbursement for home health services and to Medicaid reimbursement due to state budget shortfalls; the ability of the Company to maintain its level of operating performance and achieve its cost control objectives; changes in our relationships with referral sources; the ability of the Company to integrate acquired operations including obtaining synergies, integration objectives and anticipated timelines; government regulation; health care reform; pricing pressures from Medicare, Medicaid and other third-party payers; changes in laws and interpretations of laws relating to the healthcare industry; the ability of the Company to integrate, manage and keep secure our information systems; changes in the marketplace and regulatory environment for Health Risk Assessments and the Company’s self-insurance risks.  For a more complete discussion regarding these and other factors which could affect the Company's financial performance, refer to the Company's various filings with the Securities and Exchange Commission, including its filing on Form 10-K for the year ended December 31, 2014, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and “Risk Factors.” With regard to the Company’s investment in development-stage enterprises in its Healthcare Innovations segment, there can be no assurance that it’s operational and developmental objectives will be realized or that the Company’s investments will result in future returns.  The Company undertakes no obligation to update or revise its forward-looking statements.

 

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

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