Almost Family Posts Better-Than-Expected 4th Quarter Results

Reuters is reporting that Almost Family Inc followed peer Gentiva Health Services Inc in posting better-than-expected quarterly results, highlighting a recovery in the home health care sector, which has been battered by reimbursement cuts and new regulations.

Throughout 2011, Almost Family, along with Amedisys, Gentiva and LHC Group, had been hit by a series of bad news, including reimbursement cuts, federal investigations into billing practices and new Medicare regulations.

Almost Family said its fourth-quarter results benefited from its acquisition of Cambridge Home Health Care Holdings — a provider of in-home personal and skilled nursing care.

Louisville, Kentucky-based Almost Family acquired Cambridge in August last year.

However, the combined effect of Medicare rate changes reduced revenue and operating income by $4.2 million and earnings per share by 27 cents, the company said.

Quarterly net income fell to $5.3 million, or 57 cents a share, from $7 million, or 75 cents a share, a year ago.

Excluding items, it earned 58 cents a share.

Revenue rose about 6 percent to $89.3 million.

Analysts on average had expected earnings of 49 cents a share on revenue of $88.7 million, according to Thomson Reuters I/B/E/S.

Revenue from personal care segment grew 86 percent to $19.0 million, mainly helped by the Cambridge acquisition.

However, the company’s visiting nurse segment — its largest — was affected by the Medicare rate cuts, volume and related issues in Florida and costs associated with new government regulations.

Revenue from the segment fell 5 percent to $70.4 million.

Almost Family shares, which have lost 45 percent of their value in the past one year, closed at $20.60 on Tuesday on the Nasdaq.

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