AdaptHealth Corp. Announces Third Quarter 2024 Results
AdaptHealth Corp. (NASDAQ: AHCO) reported its Q3 2024 financial results with net revenue of $805.9 million, a slight increase of 0.2% year-over-year. The company posted net income of $22.9 million, compared to a net loss of $454.1 million in Q3 2023. Adjusted EBITDA rose 1.9% to $164.3 million.
Year-to-date cash flow from operations improved to $391.4 million, with free cash flow reaching $162.7 million. The company updated its FY2024 guidance, lowering net revenue expectations to $3.220-3.260 billion and adjusted EBITDA to $655-675 million, while raising free cash flow guidance to $175-195 million.
AdaptHealth Corp. (NASDAQ: AHCO) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato netto di 805,9 milioni di dollari, un leggero aumento dello 0,2% rispetto all'anno precedente. L'azienda ha registrato un utile netto di 22,9 milioni di dollari, rispetto a una perdita netta di 454,1 milioni di dollari nel Q3 2023. Adjusted EBITDA è aumentato del 1,9% a 164,3 milioni di dollari.
Il flusso di cassa operativo dall'inizio dell'anno è migliorato a 391,4 milioni di dollari, con un flusso di cassa libero che ha raggiunto i 162,7 milioni di dollari. L'azienda ha aggiornato le sue previsioni per l'FY2024, abbassando le aspettative sul fatturato netto a 3,220-3,260 miliardi di dollari e sull'Adjusted EBITDA a 655-675 milioni di dollari, mentre ha aumentato le previsioni sul flusso di cassa libero a 175-195 milioni di dollari.
AdaptHealth Corp. (NASDAQ: AHCO) reportó sus resultados financieros del tercer trimestre de 2024 con ingresos netos de 805.9 millones de dólares, un ligero aumento del 0.2% interanual. La compañía reportó una ganancia neta de 22.9 millones de dólares, en comparación con una pérdida neta de 454.1 millones de dólares en el tercer trimestre de 2023. Adjusted EBITDA aumentó un 1.9% a 164.3 millones de dólares.
El flujo de caja operativo hasta la fecha mejoró a 391.4 millones de dólares, con un flujo de caja libre que alcanzó los 162.7 millones de dólares. La compañía actualizó su guía para el año fiscal 2024, reduciendo las expectativas de ingresos netos a 3.220-3.260 millones de dólares y el Adjusted EBITDA a 655-675 millones de dólares, mientras que elevó la guía de flujo de caja libre a 175-195 millones de dólares.
AdaptHealth Corp. (NASDAQ: AHCO)는 2024년 3분기 재무 결과를 발표하며 순매출이 8억 5백 90만 달러로, 전년 대비 0.2%의 소폭 증가를 기록했다고 보고했습니다. 회사는 3분기 2023년의 4억 5천 410만 달러의 순손실과 비교하여 2천 290만 달러의 순이익을 올렸습니다. Adjuted EBITDA는 1.9% 증가한 1억 6천 430만 달러입니다.
올해 누적 영업 현금 흐름은 3억 9천 140만 달러로 개선되었고, 자유 현금 흐름은 1억 6천 270만 달러에 도달했습니다. 회사는 FY2024 가이드를 업데이트하며 순매출 기대치를 32억 2천만 ~ 32억 6천만 달러, 조정된 EBITDA를 6억 5천 5백만 ~ 6억 7천 5백만 달러로 낮추고, 자유 현금 흐름 가이드는 1억 7천 5백만 ~ 1억 9천 5백만 달러로 높였습니다.
AdaptHealth Corp. (NASDAQ: AHCO) a publié ses résultats financiers pour le troisième trimestre 2024, avec un revenu net de 805,9 millions de dollars, soit une légère augmentation de 0,2 % par rapport à l'année précédente. L'entreprise a enregistré un bénéfice net de 22,9 millions de dollars, comparé à une perte nette de 454,1 millions de dollars au troisième trimestre 2023. Adjusted EBITDA a augmenté de 1,9 % pour atteindre 164,3 millions de dollars.
Le flux de trésorerie d'exploitation depuis le début de l'année s'est amélioré pour atteindre 391,4 millions de dollars, avec un flux de trésorerie libre atteignant 162,7 millions de dollars. L'entreprise a mis à jour ses prévisions pour l'exercice 2024, en abaissant ses attentes de revenu net à 3,220-3,260 milliards de dollars et l'Adjusted EBITDA à 655-675 millions de dollars, tout en augmentant les prévisions de flux de trésorerie libre à 175-195 millions de dollars.
AdaptHealth Corp. (NASDAQ: AHCO) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Nettoumsatz von 805,9 Millionen Dollar, was einem leichten Anstieg von 0,2 % im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen Nettogewinn von 22,9 Millionen Dollar, verglichen mit einem Nettverlust von 454,1 Millionen Dollar im 3. Quartal 2023. Adjusted EBITDA stieg um 1,9 % auf 164,3 Millionen Dollar.
Der Cashflow aus der betrieblichen Tätigkeit verbesserte sich seit Jahresbeginn auf 391,4 Millionen Dollar, während der freie Cashflow 162,7 Millionen Dollar erreichte. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2024 aktualisiert, indem es die Erwartungen an den Nettoumsatz auf 3,220-3,260 Milliarden Dollar und das Adjusted EBITDA auf 655-675 Millionen Dollar senkte, während die Prognose für den freien Cashflow auf 175-195 Millionen Dollar angehoben wurde.
- Net income improved significantly from a $454.1M loss to $22.9M profit
- Adjusted EBITDA increased 1.9% to $164.3M
- Cash flow from operations grew to $391.4M from $325.4M YoY
- Free cash flow improved to $162.7M from $76.6M YoY
- Minimal revenue growth of only 0.2% YoY
- Lowered FY2024 revenue guidance from $3.255-3.315B to $3.220-3.260B
- Reduced FY2024 Adjusted EBITDA guidance from $660-700M to $655-675M
Insights
AdaptHealth's Q3 results present a mixed picture with some concerning trends. Revenue growth was minimal at
However, the lowered guidance is a red flag. The company reduced its revenue forecast by approximately
The company's strategic positioning in home healthcare remains strong, serving 4.2 million patients across all 50 states through 670 locations. The sale of custom rehab assets indicates a portfolio optimization strategy, potentially focusing on higher-margin core services like sleep therapy and diabetes care. The extensive referral network spanning hospitals, sleep labs and skilled nursing facilities provides a solid foundation for patient acquisition.
The minimal revenue growth suggests market saturation or competitive pressures in the home medical equipment space. However, the improved profitability metrics and cash flow generation demonstrate effective cost management and operational efficiency, important for long-term sustainability in the healthcare services sector.
Third Quarter Results and Highlights
All comparisons are to the quarter ended September 30, 2023 unless otherwise stated.
-
Net revenue was
compared to$805.9 million , an increase of$804.0 million 0.2% . -
Net income attributable to AdaptHealth Corp. was
compared to a net loss attributable to AdaptHealth Corp. of$22.9 million .$454.1 million -
Adjusted EBITDA was
compared to$164.3 million , an increase of$161.2 million 1.9% . -
Cash flow from operations was
year-to-date 2024, an increase from$391.4 million during the comparable period in 2023, and free cash flow was$325.4 million year-to-date 2024, an increase from$162.7 million during the comparable period in 2023.$76.6 million - The Company completed the sale of certain custom rehab assets during the quarter.
Management Commentary
Suzanne Foster, Chief Executive Officer of AdaptHealth, stated, “I continue to be optimistic about the road ahead. We have identified growth opportunities, we are assembling a high performing team and investing in areas that allow us to serve even more patients in their homes.”
Financial Outlook
The Company is updating previous financial guidance for fiscal year 2024 as follows:
-
Net revenue of
to$3.22 0 billion , from$3.26 0 billion to$3.25 5 billion$3.31 5 billion -
Adjusted EBITDA of
to$655 million , from$675 million to$660 million $700 million -
Free cash flow of
to$175 million , from$195 million to$160 million $180 million
Conference Call
Management will host a teleconference today, Tuesday, November 5, 2024, at 8:30 am ET to discuss the results and business activities with analysts and investors.
Interested parties may participate in the call by dialing:
- (800) 343-4136 (Domestic) or
- (203) 518-9843 (International)
When prompted, reference Conference ID: AHCO3Q24
Webcast registration: Click Here
Following the live call, a replay will be available for six months on the Company's website, www.adapthealth.com, under “Investor Relations.”
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment (HME), medical supplies, and related services. The Company provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to challenges in their activities of daily living, and thrive. Product and service offerings include (i) sleep therapy equipment, supplies, and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea, (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors and insulin pumps), (iii) HME to patients discharged from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 670 locations in 47 states.
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company’s acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company’s customers’ preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Use of Non-GAAP Financial Information
The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and free cash flow, which are financial measures that are not in accordance with generally accepted accounting principles in
The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company’s financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under
The Company uses free cash flow, which is a financial measure that is not in accordance with
Free cash flow should not be considered as a measure of financial performance under
ADAPTHEALTH CORP.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands) |
|
September 30, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash |
|
$ |
100,180 |
|
$ |
77,132 |
Accounts receivable |
|
|
401,215 |
|
|
388,910 |
Inventory |
|
|
133,490 |
|
|
113,642 |
Prepaid and other current assets |
|
|
48,906 |
|
|
69,338 |
Total current assets |
|
|
683,791 |
|
|
649,022 |
Equipment and other fixed assets, net |
|
|
474,922 |
|
|
495,101 |
Operating lease right-of-use assets |
|
|
106,390 |
|
|
110,465 |
Finance lease right-of-use assets |
|
|
38,769 |
|
|
31,962 |
Goodwill |
|
|
2,707,282 |
|
|
2,724,958 |
Identifiable intangible assets, net |
|
|
113,452 |
|
|
130,160 |
Deferred tax assets |
|
|
328,106 |
|
|
345,854 |
Other assets |
|
|
17,224 |
|
|
21,128 |
Total Assets |
|
$ |
4,469,936 |
|
$ |
4,508,650 |
Liabilities and Stockholders' Equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
430,371 |
|
$ |
391,994 |
Current portion of long-term debt |
|
|
16,250 |
|
|
53,368 |
Current portion of operating lease obligations |
|
|
30,276 |
|
|
29,270 |
Current portion of finance lease obligations |
|
|
12,307 |
|
|
9,122 |
Contract liabilities |
|
|
35,842 |
|
|
38,570 |
Warrant liability |
|
|
2,221 |
|
|
4,021 |
Other liabilities |
|
|
25,758 |
|
|
10,654 |
Total current liabilities |
|
|
553,025 |
|
|
536,999 |
Long-term debt, less current portion |
|
|
2,013,644 |
|
|
2,094,614 |
Operating lease obligations, less current portion |
|
|
80,135 |
|
|
85,529 |
Finance lease obligations, less current portion |
|
|
26,098 |
|
|
22,746 |
Other long-term liabilities |
|
|
272,846 |
|
|
302,093 |
Total Liabilities |
|
|
2,945,748 |
|
|
3,041,981 |
Total Stockholders' Equity |
|
|
1,524,188 |
|
|
1,466,669 |
Total Liabilities and Stockholders' Equity |
|
$ |
4,469,936 |
|
$ |
4,508,650 |
ADAPTHEALTH CORP.
Consolidated Statements of Operations (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
(in thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
805,858 |
|
|
$ |
804,031 |
|
|
$ |
2,404,330 |
|
|
$ |
2,341,943 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of net revenue |
|
681,866 |
|
|
|
693,488 |
|
|
|
2,036,532 |
|
|
|
2,022,281 |
|
General and administrative expenses |
|
49,242 |
|
|
|
45,198 |
|
|
|
154,632 |
|
|
|
142,797 |
|
Depreciation and amortization, excluding patient equipment depreciation |
|
11,263 |
|
|
|
14,515 |
|
|
|
34,023 |
|
|
|
45,596 |
|
Goodwill impairment |
|
— |
|
|
|
511,866 |
|
|
|
13,078 |
|
|
|
511,866 |
|
Total costs and expenses |
|
742,371 |
|
|
|
1,265,067 |
|
|
|
2,238,265 |
|
|
|
2,722,540 |
|
Operating income (loss) |
|
63,487 |
|
|
|
(461,036 |
) |
|
|
166,065 |
|
|
|
(380,597 |
) |
Interest expense, net |
|
31,429 |
|
|
|
32,306 |
|
|
|
96,939 |
|
|
|
96,813 |
|
Loss on extinguishment of debt |
|
2,273 |
|
|
|
— |
|
|
|
2,273 |
|
|
|
— |
|
Change in fair value of warrant liability |
|
(2,243 |
) |
|
|
(9,160 |
) |
|
|
(1,800 |
) |
|
|
(31,886 |
) |
Other loss, net |
|
— |
|
|
|
3,317 |
|
|
|
3,345 |
|
|
|
6,574 |
|
Income (loss) before income taxes |
|
32,028 |
|
|
|
(487,499 |
) |
|
|
65,308 |
|
|
|
(452,098 |
) |
Income tax expense (benefit) |
|
8,073 |
|
|
|
(34,578 |
) |
|
|
21,931 |
|
|
|
(30,893 |
) |
Net income (loss) |
|
23,955 |
|
|
|
(452,921 |
) |
|
|
43,377 |
|
|
|
(421,205 |
) |
Income attributable to noncontrolling interest |
|
1,096 |
|
|
|
1,155 |
|
|
|
3,217 |
|
|
|
3,187 |
|
Net income (loss) attributable to AdaptHealth Corp. |
$ |
22,859 |
|
|
$ |
(454,076 |
) |
|
$ |
40,160 |
|
|
$ |
(424,392 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic |
|
134,303 |
|
|
|
134,825 |
|
|
|
133,481 |
|
|
|
134,549 |
|
Weighted average common shares outstanding - diluted |
|
136,530 |
|
|
|
134,982 |
|
|
|
135,441 |
|
|
|
135,202 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per share |
$ |
0.16 |
|
|
$ |
(3.37 |
) |
|
$ |
0.28 |
|
|
$ |
(3.15 |
) |
Diluted net income (loss) per share |
$ |
0.15 |
|
|
$ |
(3.43 |
) |
|
$ |
0.27 |
|
|
$ |
(3.37 |
) |
ADAPTHEALTH CORP.
Consolidated Statements of Cash Flows (Unaudited)
|
|
Nine Months Ended September 30, |
||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
43,377 |
|
|
$ |
(421,205 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization, including patient equipment depreciation |
|
|
274,797 |
|
|
|
290,419 |
|
Goodwill impairment |
|
|
13,078 |
|
|
|
511,866 |
|
Equity-based compensation |
|
|
10,614 |
|
|
|
17,284 |
|
Change in fair value of warrant liability |
|
|
(1,800 |
) |
|
|
(31,886 |
) |
Reduction in the carrying amount of operating lease right-of-use assets |
|
|
24,902 |
|
|
|
26,309 |
|
Reduction in the carrying amount of finance lease right-of-use assets |
|
|
7,927 |
|
|
|
3,821 |
|
Deferred income tax expense (benefit) |
|
|
18,664 |
|
|
|
(37,033 |
) |
Change in fair value of interest rate swaps, net of reclassification adjustment |
|
|
(367 |
) |
|
|
(1,394 |
) |
Amortization of deferred financing costs |
|
|
4,247 |
|
|
|
3,926 |
|
Loss on extinguishment of debt |
|
|
2,273 |
|
|
|
— |
|
Payment of contingent consideration from an acquisition |
|
|
(1,850 |
) |
|
|
— |
|
Other |
|
|
569 |
|
|
|
350 |
|
Changes in operating assets and liabilities, net of effects from acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(12,305 |
) |
|
|
(10,043 |
) |
Inventory |
|
|
(21,474 |
) |
|
|
12,769 |
|
Prepaid and other assets |
|
|
23,656 |
|
|
|
10,956 |
|
Operating lease obligations |
|
|
(25,212 |
) |
|
|
(26,959 |
) |
Operating liabilities |
|
|
30,328 |
|
|
|
(23,780 |
) |
Net cash provided by operating activities |
|
|
391,424 |
|
|
|
325,400 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of equipment and other fixed assets |
|
|
(228,719 |
) |
|
|
(248,816 |
) |
Proceeds from the sale of assets |
|
|
5,316 |
|
|
|
— |
|
Payments for business acquisitions, net of cash acquired |
|
|
— |
|
|
|
(17,917 |
) |
Payments for cost method investments |
|
|
— |
|
|
|
(128 |
) |
Net cash used in investing activities |
|
|
(223,403 |
) |
|
|
(266,861 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from borrowings on long-term debt and lines of credit |
|
|
253,477 |
|
|
|
50,000 |
|
Repayments on long-term debt and lines of credit |
|
|
(373,477 |
) |
|
|
(75,000 |
) |
Repayments of finance lease obligations |
|
|
(8,261 |
) |
|
|
(4,558 |
) |
Payments for shares purchased under share repurchase program |
|
|
— |
|
|
|
(9,224 |
) |
Proceeds from the exercise of stock options |
|
|
742 |
|
|
|
538 |
|
Proceeds received in connection with employee stock purchase plan |
|
|
999 |
|
|
|
2,031 |
|
Payments relating to the Tax Receivable Agreement |
|
|
(1,432 |
) |
|
|
(3,202 |
) |
Payments of debt financing costs |
|
|
(6,429 |
) |
|
|
— |
|
Distributions to noncontrolling interest |
|
|
(3,500 |
) |
|
|
(2,500 |
) |
Payments for tax withholdings from restricted stock vesting and stock option exercises |
|
|
(1,794 |
) |
|
|
(5,253 |
) |
Payments of contingent consideration and deferred purchase price from acquisitions |
|
|
(5,298 |
) |
|
|
(1,500 |
) |
Net cash used in financing activities |
|
|
(144,973 |
) |
|
|
(48,668 |
) |
Net increase in cash |
|
|
23,048 |
|
|
|
9,871 |
|
Cash at beginning of period |
|
|
77,132 |
|
|
|
46,272 |
|
Cash at end of period |
|
$ |
100,180 |
|
|
$ |
56,143 |
|
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
This press release presents AdaptHealth’s EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the three and nine months ended September 30, 2024 and 2023.
AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling interests, interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient equipment depreciation.
AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.
AdaptHealth defines Adjusted EBITDA Margin as Adjusted EBITDA (as defined above) as a percentage of net revenue.
The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the three months ended September 30, 2024 and 2023:
|
|
Three Months Ended September 30, |
||||||||||
|
|
2024 |
|
|
2023 |
|
||||||
|
|
(Unaudited) |
||||||||||
(in thousands, except percentages) |
|
Dollars |
Revenue Percentage |
|
Dollars |
Revenue Percentage |
||||||
Net income (loss) attributable to AdaptHealth Corp. |
|
$ |
22,859 |
|
2.8 |
% |
|
$ |
(454,076 |
) |
(56.5 |
)% |
Income attributable to noncontrolling interest |
|
|
1,096 |
|
0.1 |
% |
|
|
1,155 |
|
0.1 |
% |
Interest expense, net |
|
|
31,429 |
|
3.9 |
% |
|
|
32,306 |
|
4.0 |
% |
Income tax expense (benefit) |
|
|
8,073 |
|
1.0 |
% |
|
|
(34,578 |
) |
(4.2 |
)% |
Depreciation and amortization, including patient equipment depreciation |
|
|
90,759 |
|
11.3 |
% |
|
|
97,310 |
|
12.1 |
% |
EBITDA |
|
|
154,216 |
|
19.1 |
% |
|
|
(357,883 |
) |
(44.5 |
)% |
Equity-based compensation expense (a) |
|
|
863 |
|
0.1 |
% |
|
|
4,521 |
|
0.5 |
% |
Change in fair value of warrant liability (b) |
|
|
(2,243 |
) |
(0.3 |
)% |
|
|
(9,160 |
) |
(1.1 |
)% |
Goodwill impairment (c) |
|
|
— |
|
— |
% |
|
|
511,866 |
|
63.7 |
% |
Loss on extinguishment of debt (d) |
|
|
2,273 |
|
0.3 |
% |
|
|
— |
|
— |
% |
Other non-recurring expenses, net (e) |
|
|
9,148 |
|
1.2 |
% |
|
|
11,823 |
|
1.4 |
% |
Adjusted EBITDA |
|
$ |
164,257 |
|
20.4 |
% |
|
$ |
161,167 |
|
20.0 |
% |
Adjusted EBITDA Margin |
|
|
20.4 |
% |
|
|
20.0 |
% |
(a) |
Represents equity-based compensation expense for awards granted to employees and non-employee directors. |
(b) |
Represents a non-cash gain for the change in the estimated fair value of the warrant liability. |
(c) |
Represents a non-cash goodwill impairment charge as a result of the fair value of the Company’s reporting unit being less than its carrying value. |
(d) |
Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. |
(e) |
The 2024 period consists of |
The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the nine months ended September 30, 2024 and 2023:
|
|
Nine Months Ended September 30, |
||||||||||
|
|
2024 |
|
|
2023 |
|
||||||
|
|
(Unaudited) |
||||||||||
(in thousands, except percentages) |
|
Dollars |
Revenue Percentage |
|
Dollars |
Revenue Percentage |
||||||
Net income (loss) attributable to AdaptHealth Corp. |
|
$ |
40,160 |
|
1.7 |
% |
|
$ |
(424,392 |
) |
(18.1 |
)% |
Income attributable to noncontrolling interest |
|
|
3,217 |
|
0.1 |
% |
|
|
3,187 |
|
0.1 |
% |
Interest expense, net |
|
|
96,939 |
|
4.0 |
% |
|
|
96,813 |
|
4.1 |
% |
Income tax expense (benefit) |
|
|
21,931 |
|
0.9 |
% |
|
|
(30,893 |
) |
(1.3 |
)% |
Depreciation and amortization, including patient equipment depreciation |
|
|
274,797 |
|
11.5 |
% |
|
|
290,419 |
|
12.4 |
% |
EBITDA |
|
|
437,044 |
|
18.2 |
% |
|
|
(64,866 |
) |
(2.8 |
)% |
Equity-based compensation expense (a) |
|
|
10,614 |
|
0.4 |
% |
|
|
17,284 |
|
0.7 |
% |
Change in fair value of warrant liability (b) |
|
|
(1,800 |
) |
(0.1 |
)% |
|
|
(31,886 |
) |
(1.4 |
)% |
Goodwill impairment (c) |
|
|
13,078 |
|
0.5 |
% |
|
|
511,866 |
|
21.9 |
% |
Loss on extinguishment of debt (d) |
|
|
2,273 |
|
0.1 |
% |
|
|
— |
|
— |
% |
Litigation settlement expense (e) |
|
|
3,345 |
|
0.1 |
% |
|
|
— |
|
— |
% |
Other non-recurring expenses, net (f) |
|
|
23,503 |
|
1.1 |
% |
|
|
33,778 |
|
1.5 |
% |
Adjusted EBITDA |
|
$ |
488,057 |
|
20.3 |
% |
|
$ |
466,176 |
|
19.9 |
% |
Adjusted EBITDA Margin |
|
|
20.3 |
% |
|
|
19.9 |
% |
(a) |
Represents equity-based compensation expense for awards granted to employees and non-employee directors. |
(b) |
Represents a non-cash gain for the change in the estimated fair value of the warrant liability. |
(c) |
The 2024 period includes non-cash goodwill impairment charges relating to the disposition of certain immaterial custom rehab technology assets. The 2023 period includes a non-cash goodwill impairment charge as a result of the fair value of the Company’s reporting unit being less than it's carrying value. |
(d) |
Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement. |
(e) |
Represents a |
(f) |
The 2024 period consists of |
Free Cash Flow
This press release presents AdaptHealth’s free cash flow for the three and nine months ended September 30, 2024 and 2023.
AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets.
The following unaudited table reconciles net cash provided by operating activities to the free cash flow measure for the three and nine months ended September 30, 2024 and 2023:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
||||||||||||||
Net cash provided by operating activities |
|
$ |
144,405 |
|
|
$ |
98,833 |
|
|
$ |
391,424 |
|
|
$ |
325,400 |
|
Purchases of equipment and other fixed assets |
|
|
(59,556 |
) |
|
|
(77,086 |
) |
|
|
(228,719 |
) |
|
|
(248,816 |
) |
Free cash flow |
|
$ |
84,849 |
|
|
$ |
21,747 |
|
|
$ |
162,705 |
|
|
$ |
76,584 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105240790/en/
AdaptHealth Corp.
Jason Clemens, CFA
Chief Financial Officer
IR@adapthealth.com
Source: AdaptHealth Corp.
FAQ
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