AREX Capital Expresses Disappointment in Enhabit’s Continued Excuses and Empty Promises

Rhea-AI Summary

AREX Capital Management, owner of 4.9% of Enhabit’s shares, has expressed disappointment in Enhabit's recent investor presentation, accusing the company of recycling excuses and making unfulfilled promises. AREX believes Enhabit's strategies are failing, and emphasizes the company's lack of industry-specific expertise on its board. AREX urges shareholders to support its seven nominees for the board at the 2024 Annual Meeting, advocating for their plan to improve Enhabit's operational performance and create shareholder value.

Positive

• AREX Capital Management owns 4.9% of Enhabit's shares, indicating significant investor interest.

Negative

• AREX Capital criticizes Enhabit for recycling excuses and failing to deliver on promises.
• AREX believes Enhabit's strategies are not working, leading to disappointing total stockholder returns.
• AREX highlights the lack of industry-specific expertise on Enhabit's board, potentially impacting management oversight and operational performance.

Highlights Enhabit’s Disappointing Total Stockholder Return

Believes Evidence Is Overwhelming that Enhabit’s Strategies Are Not Working

Emphasizes Enhabit’s Repeated Pattern of Making Promises It Does Not Keep and Claiming Progress It Has Not Achieved

Reiterates Enhabit’s Need for Industry-Specific Expertise on Board

NEW YORK--(BUSINESS WIRE)-- AREX Capital Management, LP (together with its affiliates, “AREX”), the beneficial owner of approximately 4.9% of the outstanding common shares of Enhabit, Inc. (NYSE: EHAB) (“Enhabit” or the “Company”), today issued an open letter to its fellow stockholders expressing its disappointment in the Company’s recent investor presentation, which it believes recycles the same excuses and makes the same empty promises on which the Company has repeatedly failed to deliver.

The full text of the letter can be found here: Enhabit’s Excuses and Empty Promises.

AREX encourages stockholders to vote for all seven of its highly qualified nominees on the WHITE Proxy Card at the upcoming 2024 Annual Meeting of Stockholders. AREX believes this is the only way to ensure that Enhabit has a board of directors with the right experience and skills to effectively oversee management and help them drive operational improvements that can lead to significant value creation for stockholders.

Stockholders are encouraged to visit www.rehabEHAB.com for additional information and to download the presentation detailing the AREX Slate’s comprehensive plan to turn around Enhabit’s operational performance: Rehabilitate Enhabit.

About AREX

AREX Capital Management, LP is a value-oriented investment firm based in New York City. AREX takes a long-term, opportunistic approach to investing and focuses primarily on publicly traded companies with significant, unrealized potential.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240705086860/en/

Investor Contact

Saratoga Proxy Consulting

John Ferguson

(212) 257-1311

rehabEHAB@saratogaproxy.com

Media Contact

Longacre Square Partners

Charlotte Kiaie / Bela Kirpalani

(646) 386-0091

rehabEHAB@longacresquare.com

Source: AREX Capital Management, LP

FAQ

Why is AREX Capital disappointed with Enhabit?

AREX Capital is disappointed with Enhabit due to the company's repeated failure to deliver on promises and ineffective strategies, resulting in poor stockholder returns.

What percentage of Enhabit shares does AREX Capital own?

AREX Capital owns approximately 4.9% of Enhabit's outstanding common shares.

What is AREX Capital's recommendation for the 2024 Annual Meeting?

AREX Capital urges shareholders to vote for all seven of its nominees for the board of directors using the WHITE Proxy Card.

What issues does AREX Capital highlight about Enhabit's board?

AREX Capital emphasizes the lack of industry-specific expertise on Enhabit's board, which they believe hinders effective management oversight and operational improvements.

How does AREX Capital plan to improve Enhabit's performance?

AREX Capital has presented a comprehensive plan to turn around Enhabit's operational performance and create significant value for stockholders.