National Home Health Care Corp. Announces Earnings for the Quarter and Fiscal Year Ended July 31, 2004

Business Wire, Oct 29, 2004

SCARSDALE, N.Y. -- 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, 2004.

Net patient revenue for the quarter ended July 31, 2004 was $23,570,000, a decrease of 3.9% from $24,533,000 for the quarter ended July 31, 2003. Net income for the quarter July 31, 2004 was $1,219,000, or $.21 per diluted share, compared to a net income of $1,341,000, or $.24 per diluted share, for the quarter ended July 31, 2003.

Net patient revenue for the fiscal year ended July 31, 2004 was $94,592,000, a decrease of 2.7% from $97,235,000 for the fiscal year ended July 31, 2003. Net income for the fiscal year ended July 31, 2004 was $4,720,000, or $.83 per diluted share, compared to a net income of $5,783,000, or $1.01 per diluted share, for the fiscal year ended July 31, 2003.

The decreases in net patient revenue and net income were primarily attributable to the significant reduction in Medicaid reimbursement rates for certain nursing visits in Connecticut, which went into effect on May 1, 2003.

STATEMENT OF OPERATIONS DATA:
                           Quarter Ended         Fiscal Year Ended
                              July 31,                July 31,
                          2004        2003         2004        2003
                      ----------- -----------  ----------- -----------

Revenues             $23,570,000 $24,533,000  $94,592,000 $97,235,000

Operating expenses    21,497,000  22,403,000   86,975,000  87,694,000

Income from
 operations            2,073,000   2,130,000    7,617,000   9,541,000

Other income:
   Interest income        44,000      22,000      143,000     143,000

Income before taxes    2,117,000   2,152,000    7,760,000   9,684,000

Provision for income
 taxes                   898,000     811,000    3,040,000   3,901,000

Net income             1,219,000   1,341,000    4,720,000   5,783,000

Earnings per share -
 diluted             $      0.21 $      0.24  $      0.83 $      1.01

Weighted average
 shares - diluted      5,752,416   5,650,411    5,700,770   5,738,267



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

Cash and cash
 equivalents         $20,185,000 $14,252,000

Total current assets  39,616,000  34,158,000

Total assets          53,486,000  48,473,000

Total current
 liabilities           4,447,000   4,607,000

Non-current
 liabilities               - - -       - - -

Stockholders' equity  49,039,000  43,866,000