AdaptHealth Provides Full-Year 2023 Guidance and Preliminary Commentary on Fourth Quarter 2022 Results
AdaptHealth Corp. (NASDAQ: AHCO) announced its initial guidance for fiscal year 2023, projecting net revenue between
- Projected 2023 net revenue of $3.210 billion to $3.290 billion.
- Expected Adjusted EBITDA between $690 million and $750 million.
- Non-acquired net revenue growth forecasted at 8% to 10%.
- Adjusted EBITDA for 2022 expected to be near the low end of prior guidance at $620 million.
- Inflation and labor pressures affecting operational costs.
Based on current business, market trends, and acquisitions completed to date, the Company is establishing initial guidance for fiscal year 2023 as follows:
-
Net revenue of
to$3.21 0 billion ;$3.29 0 billion -
Adjusted EBITDA of
to$690 million ; and$750 million -
Total capital expenditures are expected to be 9
-11% of net revenue.
Guidance for fiscal year 2023 reflects anticipated net impacts from scheduled changes in the reimbursement and regulatory environment, including increased revenue related to the consumer price index updates to the DMEPOS fee schedule, the extension of current rural and non-rural/non-CBA blended Medicare rates and the extension of sequester relief in 2023. Consistent with prior guidance estimates, the Company’s guidance for fiscal year 2023 does not include contribution from any acquisitions that have not yet closed.
For the full year 2022, the Company anticipates net revenue to be near the midpoint of the previously-provided guidance range of
“Demand remains very strong across our businesses and we are pleased with our ability to execute on that demand, addressing the needs of our patients and adding value for our partners. We continue to work on innovative technology solutions that allow us to seamlessly communicate with patients, providers and payers to take advantage of value-based care and chronic care management opportunities. At the same time, we are not immune to the cost of goods inflation and labor pressures that all operators in the healthcare industry are experiencing and we will continue to look for ways to drive efficiency and generate operating leverage.”
The preliminary information regarding 2022 results presented in this press release is unaudited, is based on the Company’s current estimates of its financial results for the quarter and fiscal year ended
About
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
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; and the impact of the coronavirus (COVID-19) pandemic and the Company’s response to it. A further description of such risks and uncertainties can be found in the Company’s filings with the
Use of Non-GAAP Financial Information and Financial Guidance
This release contains non-GAAP financial guidance, which is adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These non-GAAP items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods.
The Company uses EBITDA and Adjusted EBITDA, which are financial measures that are not prepared in accordance with generally accepted accounting principles in
The Company believes Adjusted EBITDA is useful to investors in evaluating the Company’s financial performance. The Company uses this metric 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 and Adjusted EBITDA should not be considered as measures of financial performance under
There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items, including equity-based compensation expense, transaction costs, changes in fair value of the warrant liability, and other non-recurring items of expense or income in full year 2022. As a result, reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.
In addition, the Company’s non-GAAP financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any specified items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.
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Chief Financial Officer
Anton Hie
Vice President, Investor Relations
IR@adapthealth.com
Source:
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