Almost Family (AFAM) Earnings

Full disclosure - I did not realize Almost Family (AFAM) had earnings today when I bought late yesterday. The stock surged 11% but already is selling off in the brutal market where no gains last on the long side for more than 15 minutes.

Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Kentucky, Connecticut, New Jersey, Ohio, Massachusetts, Alabama, Missouri, Illinois, Pennsylvania, 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 over 90 branch locations in 11 U.S. states.

They beat on revenue and estimates by 6 cents but short sellers seem determined to press this name due to Medicare exposure... its now down to a -2% loss within half an hour. (lost 13% of gain in an instant) Could be a no win situation right now.

• Fourth quarter net service revenues increased 84% to $66.2 million; full year net service revenues increased 61% to $212.6 million Fourth quarter Visiting Nurse (VN) segment net revenues rose 108% to $55.7 million; full year VN net revenues rose 80% to $173.0 million. The total revenue growth of $28.9 million came from a 47% organic growth rate plus $20.1 million from acquired operations. Net revenues in the Personal Care (PC) segment for the fourth quarter of 2008 were $10.5 million, a 16% increase from $9.1 million in the fourth quarter of 2007.
• Fourth quarter net income increased 151% to $5.2 million; full year net income increased 114% to $16.3 million. Fourth quarter diluted EPS increased 68% to $0.62 per share on 48% more shares outstanding; full year diluted EPS increased 59% to $2.16 per share on 35% more shares outstanding.
• Net income for the fourth quarter of 2008 increased to 7.9% of net service revenues versus 5.8% for the fourth quarter of 2007.

Here is why shorts are pressing - anything with the word Medicare is toxic; no matter what growth is now.

• On November 14, 2008, Almost Family acquired the assets of the Medicare-certified home health agency owned by Fairfield Medical Center located near Columbus OH. The agency generated approximately $1.2 million of Medicare revenue in 2007.
• On November 26, 2008, Almost Family acquired the Kentucky Certificate of Need and home health license of the Medicare-certified home health agency formerly operated by Hardin Memorial Hospital in Elizabethtown, KY. The certificate will enable Almost Family to expand its service territory into four additional counties south of the metro Louisville area.

Long Almost Family in fund and personal account