LOUISVILLE, Ky., March 25 /PRNewswire-FirstCall/ -- Almost Family, Inc. (Nasdaq: AFAM) today announced an agreement to acquire the assets of the Medicare-certified home health agency owned by Apex Home Healthcare Services, L.L.C. with operations in Jacksonville and Ormond Beach FL.
Company Comments on Combination
"We are very pleased to welcome the employees, the patients, and all the operations of Apex to our Company, and we are excited about this combination of outstanding providers," said William B. Yarmuth, chairman and chief executive officer of Almost Family. "After getting to know the founding partners of Apex and seeing what they've been able to accomplish in their marketplace we knew we wanted them to be a part of Almost Family. In addition to being an outstanding combination, this also puts us over the strategic milestone of $150 million in annual revenues."
The Company noted that Apex recently achieved the status of being the number one market share provider in Jacksonville according to the Medicare program's "Home Health Compare" at http://www.medicare.gov.
Founded in 2002, Apex operates Medicare-certified home health branches as well as personal care branches in Jacksonville and Ormond FL currently serving a daily census of 1,030 patients. Additionally, Apex separately operates a home care physician practice, and an outpatient rehabilitation practice business both located in Jacksonville and both of which were also acquired in this transaction. Ms. Nancy Ralston, CEO and Mr. James Spriggs, COO, both co- founders of Apex, will join Almost Family as Vice President of Operations and Vice President of Marketing for the Company's newly-formed Northeast Florida region. In the twelve months ended December 31, 2007 the Apex home health operations generated revenues of $15.5 million. The balance of the Apex operations generated approximately $0.7 million of revenue in 2007.
Regarding Ms. Ralston and Mr. Spriggs, Yarmuth concluded: "We are very happy to add Nancy and James to our growing and talented management team. We look forward to their contributions to the on-going growth of our Company."
Ms. Ralston and Mr. Spriggs issued the following statement regarding this combination: "As we built Apex into the Number 1 position in our current markets, we began looking for a partner that could help us realize our vision of even more growth for Apex. We knew we had great people and great programs and felt that with the right partner, we could achieve much more. We chose Almost Family because of their respect for how we have built our business here. Not only do they respect the business we have built in Northeast Florida, but they expect us to grow Apex even more. We couldn't be any more excited about joining such a vibrant and growing organization as Almost Family."
The agreement calls for a total purchase price of $16 million, consisting of $12 million cash, $3 million in notes payable and $1 million (or approximately 50,000 shares) of Almost Family common stock (restricted). The cash portion of the transaction will be funded from borrowings available on the Company's existing senior credit facility with JP Morgan Chase Bank, NA. Subject to usual and customary closing conditions, substantially all of the transaction is expected to close before the end of March, 2008.
Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Kentucky, Ohio, Connecticut, Massachusetts, Missouri, Alabama, Illinois and Indiana (in order of revenue significance). Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment and a personal care segment. Altogether, Almost Family operates 78 branch locations in 9 U.S. states.
All statements, other than statements of historical facts, included in this news release, including the objectives and expectations of management for future operating results, the Company's ability to achieve its earnings expectations with respect to the Apex acquisition, the Company's ability to achieve expected cost savings net of incremental overhead post-acquisition, the ultimate outcome of the Company's allocation of purchase price to amortizable intangible assets, the Company's ability to generate positive cash flows, and the Company's expectations with regard to market conditions, 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; 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; 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, 2007, in particular information under the headings "Special Caution Regarding Forward-Looking Statements" and "Risk Factors." The Company undertakes no obligation to update or revise its forward-looking statements.
|SOURCE Almost Family, Inc.|
Copyright©2008 PR Newswire.
All rights reserved