Once again, Almost Family (Nasdaq: AFAM) reported record-setting quarterly earnings on Tuesday.
The Louisville, Kentucky-based home health care provider, which currently has more than 250 branch locations across 16 U.S. states, reported a third-quarter 2016 net service revenue of $160.42 million. The figure beat analysts’ expectations by $1.23 million and marked the highest net service revenue the company has reported since it was founded in 1976.
Almost Family’s third quarter 2016 earnings per share of 66 cents, meanwhile, beat analysts’ expectations by 7 cents.
For its home health operations, the company reported a third-quarter 2016 net service revenue of $150.11 million, compared with a third-quarter 2015 home health operations net service revenue of $129.18 million.
“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,” Almost Family Chairman and CEO William Yarmuth said in a press release detailing the company’s latest earnings. “In addition, we’re especially pleased to report outstanding record results in our health care innovations segment which is drawing increased attention as it makes significant strides in its earnings and developments.”
Almost Family’s Healthcare Innovations (HCI) segment net revenues totaled a record-high $10.3 million in 2016, up $8.3 million from $2.1 million in 2015. Operating income for the HCI segment hit a record $5.1 million, or 15 cents per share attributable to Almost Family.
Almost Family also recently entered into the largest public hospital-home health joint venture in the country when it agreed to acquire an 80% equity interest in the home health and hospice assets of Community Health Systems (NYSE: CYH) in mid-October for $128 million.
Once the transaction is completed, Almost Family will have 340 branches in 26 U.S. states, and Almost Family will become the third-largest Medicare home health provider in the country.
The transaction with CHS allows Almost family to continue its strong growth trajectory, Yarmuth said. In the future, Almost Family will continue to pursue quality acquisitions of in-home health care service providers consistent with its stated strategy and the kinds of services its segments currently offer.
This quarter, Almost Family also reported a record-high adjusted EBITDA of $14.8 million, up 39% from the third quarter of 2015.
“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,” Almost Family President Steve Guenthner said in the press release. “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.”
For the remainder of 2016 and into 2017, the company plans to focus on the successful integration of its new home health partnership with CHS, bettering the financial results of all of its business units and organic volume growth, Yarmuth concluded.
Written by Mary Kate Nelson