Enhabit Releases Certain Preliminary Second Quarter 2024 Results
Enhabit (NYSE: EHAB), a leading home health and hospice provider, has released preliminary results for Q2 2024. Key highlights include:
- Adjusted EBITDA between $24.5 million and $25.0 million
- Bank debt reduced by $15 million, including a $10 million payment on the revolving credit facility
- 43% of non-Medicare visits now under payor innovation contracts at improved rates, up from 38% in Q1 2024
- Home health admissions increased 6.4% year-over-year, driven by non-Medicare admissions
- Hospice segment achieved monthly sequential growth in average daily census for the fifth consecutive month
The company reports continued business stabilization and positioning for profitable growth.
- Adjusted EBITDA expected to be between $24.5 million and $25.0 million
- Bank debt reduced by $15 million
- 43% of non-Medicare visits shifted to payor innovation contracts at improved rates, up from 38% in Q1
- Home health admissions increased 6.4% year-over-year
- Hospice segment achieved monthly sequential growth in average daily census for five consecutive months
- Home health cost per visit better than expected
- Hospice cost per day decreased sequentially as census grew
- None.
Insights
Enhabit's preliminary second quarter results show notable improvements in several key financial metrics, which could be encouraging for stakeholders. The adjusted EBITDA range of
Furthermore, the reduction in bank debt by
The shift of 43% of non-Medicare visits to payor innovation contracts at improved rates is also significant. Higher reimbursement rates can boost revenue without necessitating an increase in patient volume. However, it is essential to monitor the long-term sustainability of these contracts to ensure they continue delivering financial benefits.
Overall, these preliminary results suggest that Enhabit is on a steady path towards achieving its business stabilization and growth objectives. Investors should keep an eye on the actual results and further commentary on Aug. 6 and 7 to gauge the full extent of these developments.
From a market perspective, Enhabit's strategic shift towards increasing non-Medicare admissions and improved payor innovation contracts is a key differentiator. The 6.4% increase in admissions year-over-year signals effective market penetration and demand for their services. It's also worth noting the company has successfully created additional capacity for growth, which implies that they are not only attracting more patients but also managing operational efficiency.
In the hospice segment, achieving sequential growth in the average daily census for five consecutive months is a notable accomplishment. This indicates that the company is effectively expanding its hospice care services, which can be a lucrative segment given the aging population and increasing demand for end-of-life care services.
Investors should be encouraged by the company's ability to manage costs effectively, as seen with better-than-expected home health cost per visit and decreasing hospice cost per day. This cost management will be vital in ensuring that revenue growth translates into profitability.
The upcoming full financial results will provide more concrete data, but these preliminary insights suggest that Enhabit is making strategic moves to enhance its market position and profitability.
Unaudited Preliminary Results for the Second Quarter Ended June 30, 2024
-
Adjusted EBITDA* in the range of
$24.5 million $25.0 million -
Reduced bank debt by
$15 million $10 million -
43% of Enhabit’s non-Medicare visits shifting to payor innovation contracts at improved rates, an increase from38% in the first quarter of 2024
Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer said, “The strong start to 2024 extended in Q2 as our teams successfully executed on our operational strategies. In our home health segment, our
“In our hospice segment, we achieved monthly sequential growth in average daily census in June for the fifth consecutive month. We also continue to closely monitor and manage our costs with our home health cost per visit coming in better than expected and hospice cost per day decreasing sequentially as census continued to grow.
“Overall, the second quarter of 2024 is on track to mark Enhabit’s third consecutive quarter of business stabilization and successfully positioning the Company for profitable growth. This momentum underscores the strength of our strategy, disciplined approach to debt reduction and commitment to stockholder value creation.”
Enhabit’s preliminary results are based on the most recent information available to the Company’s management. Such preliminary results are forward-looking statements. Actual results may differ from these preliminary results due to the completion of the Company’s financial close procedures, final accounting adjustments and other developments that may arise between the date of this press release and the time that results for the second quarter of 2024 are finalized, and such differences may be material. The preliminary results for the second quarter of 2024 are not necessarily indicative of the results to be achieved in any future period.
* Please see “Information regarding non-GAAP Financial Measures” below.
About Enhabit Home Health & Hospice
Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.
Forward-Looking Statements
Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.
Information Regarding non-GAAP Financial Measures
Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles in
Management believes Adjusted EBITDA assists investors in comparing our operating performance across operating periods on a consistent basis by excluding items we do not believe are indicative of our operating performance. We calculate Adjusted EBITDA as Net (loss) income adjusted to exclude (1) income tax (benefit) expense, (2) interest expense and amortization of debt discounts and fees, (3) depreciation and amortization, (4) gains or losses on disposal or impairment of assets or goodwill, (5) stock‑based compensation, (6) net income attributable to noncontrolling interests, (7) unusual or nonrecurring items not typical of ongoing operations, and (8) gain on consolidation of joint venture formerly accounted for under the equity method of accounting. Unusual and nonrecurring items for the three months ended June 30, 2024, include: (i) third-party legal and advisory fees related to the strategic review process; (ii) certain third-party, nonrecurring litigation fees related to a lawsuit in which the Company is a plaintiff, styled Enhabit, Inc. et al. v. Nautic Partners IX, L.P., et al. and pending in the Chancery Court of
Enhabit is unable to reconcile the guidance presented for unaudited preliminary Adjusted EBITDA to its corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of factors that are outside the control of Enhabit or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such factors include, but are not limited to, the Company’s financial close procedures, final accounting adjustments and other developments that may arise between the date of this press release and the time that financial results for the second quarter of 2024 are finalized, and such differences may be material.
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Investor relations contact
Crissy Carlisle
investorrelations@ehab.com
469-860-6061
Media contact
Erin Volbeda
media@ehab.com
972-338-5141
Source: Enhabit, Inc.
FAQ
What is Enhabit's (EHAB) expected Adjusted EBITDA for Q2 2024?
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What percentage of Enhabit's (EHAB) non-Medicare visits shifted to payor innovation contracts in Q2 2024?
What was Enhabit's (EHAB) year-over-year increase in home health admissions for Q2 2024?
When will Enhabit (EHAB) report its full Q2 2024 financial results?
