LOUISVILLE, Ky., Nov. 6, 2012 /PRNewswire/ --Almost Family, Inc. (AFAM), a leading regional provider of home health nursing and personal care services, announced today its financial results for the three and nine month periods ended September 30, 2012.

Highlights:

Comments on ResultsWilliam Yarmuth, Chief Executive Officer, commented on the results: "Our results for the third quarter reflect the impact of normal seasonality in our VN segment along with an apparent slowing in health care utilization nationwide. While external market conditions continue to be somewhat challenging, we are continuing to focus on improving the organic growth of our business. We have been extremely pleased with the success of our operators in tightly managing the efficiencies of their business units delivering meaningful year over year cost savings in the VN segment."

With regard to the U.S. Securities and Exchange Commission (SEC) development described in more detail below, Yarmuth added: "We continue to be very proud of our track record of sound compliance and the absence of any findings of wrongdoing at Almost Family by any of the investigatory bodies that began probing us and others in the industry in mid-2010. I am extremely proud of the way our management team, and most importantly our caregivers, have refused to allow any of this to detract from our Senior Advocacy mission of providing the highest quality care to our patients."

Third Quarter Financial ResultsAlmost Family reported third quarter results that included the impact of the 2012 Medicare reimbursement rate cut in the Visiting Nurse (VN) segment. The Medicare rate cuts reduced revenue and operating income by $2.7 million and earnings per diluted share by $0.17, while a change in certain Medicare Advantage plans paying on a per visit versus episodic basis reduced revenue by $0.8 million and earnings per diluted share by $0.03. While total VN admissions increased approximately 2% and traditional Medicare episodic admissions increased approximately 1%, total Medicare episodic admissions declined 2.5% primarily as a result of certain Medicare Advantage plans switching from episodic to per visit payment models.

The Company's earnings were favorably impacted by efforts to improve its operating efficiencies and the inclusion in the quarter of a full three months of the Cambridge Home Health Care Holdings, Inc. (Cambridge) acquisition, which closed in early August of 2011. Improvements in operating efficiencies, principally in the VN segment, improved earnings per diluted share by $0.17.

Net service revenues for the third quarter were $85.1 million, a 1% decrease from $86.2 million reported in the third quarter of 2011, primarily as a result of the VN segment's Medicare rate cut, partially offset by the Cambridge acquisition.

Net income for the third quarter of 2012 was $4.1 million, or $0.44 per diluted share, down from third quarter of 2011 net income of $4.8 million, or $0.52 per diluted share.

The effective tax rate of 39.5% in the third quarter of 2012 was consistent with the 39.4% for the third quarter of 2011.

SEC and Legal DevelopmentsSince our last quarterly report the Company has received two favorable determinations with respect to previously disclosed regulatory inquiries and litigation. On November 2, 2012, the Company and those affected executive officers and members of its board of directors were all notified by the SEC Staff that it has concluded its investigation and does not intend to recommend enforcement action to the Commission. Separately, on October 2, 2012 the judge in certain shareholder derivative actions in Kentucky state court granted the Company's motion for dismissal. Although the plaintiffs have appealed that ruling, the Company intends to vigorously defend the appeal of the ruling.

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Almost Family Reports Third Quarter 2012 Results