Featured Company News - Almost Family Provides Details of Impact of Recent Events on Financial Performance in Q3 2017
ACCESS Newswire
LONDON, UK / ACCESSWIRE / October 11, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Almost Family, Inc. (NASDAQ: AFAM), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AFAM. The Company announced on October 09, 2017, its investors' information on the impact of certain recent events on the financial performance of the Company in Q3 2017. These include unexpected and devastating weather events like Hurricanes Irma and Harvey, implementation of Home Health Software, and expected share in success fees from Medicare Shared Savings Program and their impact on the Company's Q3 2017 financial performance. The Company has committed to provide financial aid of $100,000 to the American Red Cross Disaster Relief fund for affected areas. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Company revealed that Hurricane Irma affected the operations of its 66 locations in Florida including two locations in Key West as they experienced substantial periods of disruption. Hurricane Irma impacted the services of the Company's home health, personal care, hospice, and assessment business units. Hurricane Irma also impacted the Company's operations in Georgia, while Hurricane Harvey impacted the operations in Texas. The Company managed to be prepared due to the advance warnings received before each storm, however, operations were still impacted for the duration of the storms and recovery period till the services were restored to pre-storm levels.
These disruptive weather conditions are expected to impact the financial performance of the Company and is expected to reduce income before income taxes and earnings before interest, income and franchise taxes, depreciation and amortization, amortization of stock-based compensation, deal, transition and others. The actual reduction in income in Q3 2017 is expected to be in the range of $3 million to $3.5 million on a non-GAAP basis. Also since the events occurred very close the end of Q3 2017, the Company expects the events to have a lingering effect on the income and earnings for Q4 2017 as well.
Commenting on the matter William B. Yarmuth, CEO of Almost Family, said:
"While our organization has endured hurricanes in the past, these two storms were somewhat unprecedented in the scope of geography and the extent of the disruption they caused. Our management team and staff responded exceptionally well, doing everything humanly possible to ensure that patients' needs were appropriately triaged and their needs were met as promptly as the situation would allow."
Status report on the implementation of Home Health Software
The Company started the implementation of the HomeCare HomeBase (HCHB) software system in the beginning of FY17 at nearly 110 of its home health branches that were not on this system. The Company has completed implementation of this software at 93 of its branches and all active patients from these branches are a part of the HCHB system. The last trench of HCHB system implementation in 17 branches was started by the Company on September 18, 2017. The Company expects that by the end of November 2017 when the HCHB system is fully implemented across its entire branches, all active patients would be a part of the new system. The implementation of HCHB has already started showing positive impact on the operations. The Company expects that the gains from operational efficiency would be seen within 120 days of implementation and would be reflected partly in the earnings for the Q4 2017 and fully in the earnings for FY18.
Share in success fees from Medicare Shared Savings Program
The Company revealed that its share of success fee from the Medicare Shared Savings Program under the ACO contracts for the performance year 2016 would be in the range of $2 million to $2.4 million. This success fee would be reflected in earnings for Q4 2017. Additionally, the Company's subsidiary has submitted an application for 18 new ACO contracts for 2018 program year.
About Almost Family, Inc.
Louisville, Kentucky based Almost Family was founded in 1976 and is a leading provider of home health nursing, rehabilitation, and personal care services. Its operations are in 332 branch locations in 26 states, including its joint venture with Community Health Systems, Inc. (NYSE:CYH). The Company has three main business segments: Visiting Nurse, or VN, which provides skilled nursing and physical, occupational, and speech therapy services primarily to Medicare beneficiaries; Personal Care, or PC, which provides custodial and personal care services; and Healthcare Innovation division which provides health and long-term care assessments and ACO management services.
Last Close Stock Review
On Tuesday, October 10, 2017, the stock closed the trading session at $46.55, dropping 2.51% from its previous closing price of $47.75. A total volume of 184.42 thousand shares have exchanged hands, which was higher than the 3-month average volume of 136.52 thousand shares. Almost Family's stock price surged 24.27% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.56%. The stock is trading at a PE ratio of 31.26 and currently has a market cap of $656.35 million.
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