National Home Health Care Corp. Announces Operating Results for Its Fiscal First Quarter Ended October 31, 2004 and Declares Quarterly Cash Dividend of $.075 Per Share

Business Wire, Dec 14, 2004

SCARSDALE, N.Y. -- National Home Health Care Corp. (NASDAQ National Market:NHHC), a provider of home health care and staffing services in the Northeast, today reported results for the quarter ended October 31, 2004.

Net patient revenue for the quarter ended October 31, 2004 was $24,177,000, a decrease of $237,000, or 1% from $24,414,000 for the quarter ended October 31, 2003. Net income for the quarter ended October 31, 2004 was $1,418,000, or $.25 per diluted share, compared to a net income of $1,155,000, or $.20 per diluted share for the quarter ended October 31, 2003.

The decline in net patient revenue was attributable to the termination of the Company's staffing operations in New York and New Jersey during the fiscal year ended July 31, 2004 and the decrease in subcontracted hours from other Medicare certified agencies in New York, offset by the Company's expansion of its operations in New Jersey, Massachusetts and Connecticut. In addition, the Company recorded a nonrecurring retroactive Medicaid payment of $176,000 in the quarter ended October 31, 2004. The increase in net income was attributable to increased Medicaid reimbursement rates for certain nursing visits in Connecticut, the termination of staffing operations in New York and New Jersey, the increase in Medicare certified business in Massachusetts and the nonrecurring retroactive Medicaid payment.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $.075 per share on its common stock, payable February 4, 2005 to holders of record of its outstanding common stock on January 21, 2005.

This press release contains forward-looking statements that involve a number of risks and uncertainties. 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. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K, the Company's Quarterly Reports on Form 10-Q, and other filings and releases. These include but are not limited to risks and uncertainties relating to whether the Company can identify, consummate and integrate on favorable terms acquisitions or market penetrations; market acceptance; pricing and demand for the Company's services; changing regulatory environment; changing economic conditions; whether the Company can attract and retain qualified personnel; ability to manage the Company's growth; and other risks detailed in the Company's filings with the SEC.

STATEMENT OF OPERATIONS DATA:

                                                 Three months ended
                                                      October 31,
                                                 2004        2003
                                              ----------- ------------

Revenues                                      $24,177,000 $24,414,000

Operating expenses                             21,897,000  22,538,000

Income from operations                          2,280,000   1,876,000

Other income:
   Interest                                        48,000      25,000

Income before taxes                             2,328,000   1,901,000

Provision for income taxes                        910,000     746,000

Net income                                      1,418,000   1,155,000

Earnings per share - diluted                        $0.25       $0.20

Weighted average shares - diluted               5,734,510   5,673,853



BALANCE SHEET DATA:
                                                    October 31,
                                                 2004        2003
                                              ----------- ------------

Cash and cash equivalents                     $20,006,000 $14,791,000

Total current assets                           39,831,000  35,483,000

Total assets                                   54,912,000  49,615,000

Total current liabilities                       4,804,000   4,597,000

Non-current liabilities                             - - -       - - -

Stockholders' equity                           50,108,000  45,018,000