Almost Family Q4 Earnings Struck by Hurricane Sandy, Medicare Rate Cuts
Almost Family, Inc. (NASDAQ: AFAM) reported a net income for the fourth quarter ending December 31, 2012 of $3.7 million, or $0.40 per diluted share, down from the same period in 2011.
Net service revenues for the period were $86.6 million, a 3% decrease from the $89.3 million reported in the fourth quarter of 2011, primarily as a result of Medicare reimbursement cuts to the Visiting Nurse (VN) segment.
The rate cuts reduced revenue and operating income by $3 million, or $0.20 per diluted share, the company said.
“All things considered, we emerge from 2012 pleased with the progress we’ve made and the position we’re n to capitalize on our future opportunities,” said William Yarmuth, the company’s CEO, despite decreased earnings and revenue. “We weathered storms, both literally and figuratively, that have had an impact on our quarterly operating results.”
Almost Family’s impacted VN segment reported fourth quarter revenues of $67.3 million, down 4% from the previous year. Operating income before corporate expenses declined to $8.7 million during the period.
Approximately 25% of the company’s VN and 20% of its personal care segments are located in the northeastern U.S., which saw earnings per share during the fourth quarter reduced by $0.02 as a result of business disruptions related to Hurricane Sandy, specifically in its New Jersey and Connecticut markets.
As for the full year of 2012, the VN segment saw revenues decline to $271.5 million, a 4.3% decrease from the prior year.
Net income before expenses in this sector for the full year decreased $6.3 million, to a value of $39.4 million.
Full year highlights for the company include the acquisition of Cambridge, which closed in early August of 2011.
Net income for full-year 2012 was $17.3 million, or $1.85 per diluted share, down from 2011’s $20.8 million, or $2.22 per diluted share.
Additionally, Yarmuth said the company will continue to make progress while dealing with ramifications of Medicare Advantage plan changes in its northern operations.
Written by Jason Oliva