LOUISVILLE, Ky., Dec. 4 /PRNewswire-FirstCall/ -- Almost Family, Inc. today announced that it has amended the terms of its previously existing $22.5 million bank credit facility.
The amended facility provides for: -- Up to $40 million in borrowings with a maturity date of June 2010. -- The borrowing base formula permits borrowings of up to 3.5 times Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"). -- Historical EBITDA of acquired operations may be included in the borrowing base (up to a limit of 75% of the Company's historical EBITDA). -- The facility's interest rate varies from prime minus 1.50% to prime minus 0.25% depending on leverage.
William B. Yarmuth, Chairman and CEO commented on the extension of the facility: "This expanded facility significantly increases our available resources to continue the pursuit of our development objectives." Yarmuth added: "We have had a long and outstanding relationship with JPMorgan Chase and we are very happy to have their continued vote of confidence in our management team and our strategy." The credit facility is secured by substantially all of the Company's assets and the stock of its subsidiaries.
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 73 branch locations in 9 U.S. states.
All statements, other than statements of historical facts, included in this news release, 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, 2006, 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.
