NHHC National Home Health Care Co (MM)

National Home Health Care Corp. (National Market: NHHC), a provider of home health care and staffing services in the Northeast, today reported results for the quarter and fiscal year ended July 31, 2005. Net patient revenue for the quarter ended July 31, 2005 was $25,871,000, an increase of 9.8% from $23,570,000 for the quarter ended July 31, 2004. Net income for the quarter ended July 31, 2005 was $592,000, or $.10 per diluted share, as compared to a net income of $1,219,000, or $.21 per diluted share, for the quarter ended July 31, 2004. Net patient revenue for the fiscal year ended July 31, 2005 was $98,461,000, an increase of 4.0% from $94,592,000 for the fiscal year ended July 31, 2004. Net income for the fiscal year ended July 31, 2005 was $3,567,000, or $.62 per diluted share, compared to a net income of $4,720,000, or $.83 per diluted share, for the fiscal year ended July 31, 2004. The increase in net patient revenue in the quarter ended July 31, 2005 was primarily attributable to the acquisition of Helping Hands Health Care on May 22, 2005. The decrease in net income for the quarter ended July 31, 2005 was primarily attributable to an additional provision for possible losses of $712,000, due to the bankruptcy of certain customers of the Company during the quarter. The increase in net patient revenue for the fiscal year ended July 31, 2005 was attributable to the expansion of the Company's operations in New Jersey, Connecticut and Massachusetts, offset by a decline in revenue from the New York operations. The decrease in net income for the fiscal year ended July 31, 2005 was attributable to higher wages paid to all caregivers without corresponding increases in reimbursement rates and increased general and administrative expenses. CONTACT: Steven Fialkow, President and Chief Executive Officer or Robert P. Heller, Chief Financial Officer (914) 722-9000. -0- *T STATEMENT OF OPERATIONS DATA: Quarter Ended Fiscal Year Ended July 31, July 31, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Revenues $25,871,000 $23,570,000 $98,461,000 $94,592,000 Operating expenses 25,073,000 21,497,000 93,090,000 86,975,000 Income from operations 798,000 2,073,000 5,371,000 7,617,000 Other income: Interest income 82,000 44,000 275,000 143,000 Income before taxes 880,000 2,117,000 5,646,000 7,760,000 Provision for income taxes 288,000 898,000 2,079,000 3,040,000 Net income 592,000 1,219,000 3,567,000 4,720,000 Earnings per share - diluted $0.10 $0.21 $0.62 $0.83 Weighted average shares - diluted 5,749,550 5,752,416 5,732,842 5,700,770 Dividends declared per share $0.075 - - - $0.30 - - - BALANCE SHEET DATA: July 31, 2005 2004 ------------ ------------ Cash and cash equivalents $16,184,000 $20,185,000 Total current assets 37,407,000 39,616,000 Total assets 55,600,000 53,486,000 Total current liabilities 4,678,000 4,447,000 Non-current liabilities - - - - - - Stockholders' equity 50,922,000 49,039,000 *T