Enhabit Reports Fourth Quarter Results and Issues Full-Year 2025 Guidance
Enhabit (NYSE: EHAB) reported its Q4 2024 financial results, showing mixed performance across segments. The company posted net service revenue of $258.2 million but recorded a net loss of $46.0 million, with loss per share of $0.92 and adjusted earnings per share of $0.04.
Key highlights include a 10.7% increase in home health non-Medicare admissions and 48% of non-Medicare visits now in payer innovation contracts at improved rates. The hospice segment showed strong growth with an 8.6% year-over-year increase in average daily census and 6.5% growth in admissions. Hospice net service revenue and Adjusted EBITDA both increased by approximately 13% year-over-year.
The company reduced bank debt by $10 million in Q4, totaling $40 million in debt reduction for 2024. Operational efficiency improved with home office G&A expenses decreasing by 12%. The company expanded its footprint with three new hospice locations in Q4, bringing the 2024 total to one home health and five hospice de novo locations.
Enhabit (NYSE: EHAB) ha riportato i risultati finanziari del quarto trimestre del 2024, mostrando una performance mista tra i vari segmenti. L'azienda ha registrato ricavi netti da servizi pari a 258,2 milioni di dollari, ma ha riportato una perdita netta di 46,0 milioni di dollari, con una perdita per azione di 0,92 dollari e utili per azione rettificati di 0,04 dollari.
I punti salienti includono un aumento del 10,7% nelle ammissioni non Medicare per la salute domiciliare e 48% delle visite non Medicare ora in contratti di innovazione dei pagatori a tariffe migliorate. Il segmento hospice ha mostrato una forte crescita con un aumento dell'8,6% nel numero medio di pazienti giornalieri rispetto all'anno precedente e una crescita del 6,5% nelle ammissioni. I ricavi netti da servizi hospice e l'EBITDA rettificato sono aumentati di circa 13% rispetto all'anno precedente.
L'azienda ha ridotto il debito bancario di 10 milioni di dollari nel quarto trimestre, per un totale di 40 milioni di dollari di riduzione del debito nel 2024. L'efficienza operativa è migliorata con una diminuzione delle spese generali e amministrative dell'ufficio centrale del 12%. L'azienda ha ampliato la sua presenza con tre nuove sedi hospice nel quarto trimestre, portando il totale per il 2024 a una sede di salute domiciliare e cinque nuove sedi hospice de novo.
Enhabit (NYSE: EHAB) reportó sus resultados financieros del cuarto trimestre de 2024, mostrando un rendimiento mixto entre los segmentos. La compañía registró ingresos netos por servicios de 258,2 millones de dólares, pero reportó una pérdida neta de 46,0 millones de dólares, con una pérdida por acción de 0,92 dólares y ganancias por acción ajustadas de 0,04 dólares.
Los aspectos destacados incluyen un aumento del 10,7% en las admisiones de salud en el hogar no Medicare y 48% de las visitas no Medicare ahora en contratos de innovación de pagadores a tarifas mejoradas. El segmento de hospicio mostró un fuerte crecimiento con un aumento del 8,6% en el promedio diario de pacientes en comparación con el año anterior y un crecimiento del 6,5% en las admisiones. Los ingresos netos por servicios de hospicio y el EBITDA ajustado aumentaron aproximadamente un 13% en comparación con el año anterior.
La compañía redujo la deuda bancaria en 10 millones de dólares en el cuarto trimestre, totalizando 40 millones de dólares en reducción de deuda para 2024. La eficiencia operativa mejoró con una disminución del 12% en los gastos generales y administrativos de la oficina central. La compañía amplió su presencia con tres nuevas ubicaciones de hospicio en el cuarto trimestre, llevando el total de 2024 a una ubicación de salud en el hogar y cinco ubicaciones de hospicio de novo.
Enhabit (NYSE: EHAB)는 2024년 4분기 재무 결과를 발표했으며, 부문별로 혼합된 성과를 보여주었습니다. 회사는 2억 5820만 달러의 순 서비스 수익을 기록했지만, 4600만 달러의 순손실을 기록했으며, 주당 손실은 0.92달러, 조정 주당 수익은 0.04달러였습니다.
주요 하이라이트로는 비메디케어 가정 건강 입원이 10.7% 증가했으며, 비메디케어 방문의 48%가 개선된 요금으로 지급자 혁신 계약에 포함되었습니다. 호스피스 부문은 전년 대비 평균 일일 환자 수가 8.6% 증가하고 입원이 6.5% 증가하면서 강력한 성장을 보였습니다. 호스피스 순 서비스 수익과 조정 EBITDA는 모두 전년 대비 약 13% 증가했습니다.
회사는 4분기에 은행 부채를 1000만 달러 줄였으며, 2024년 총 4000만 달러의 부채 감소를 기록했습니다. 운영 효율성이 개선되면서 본사 일반 관리 비용이 12% 감소했습니다. 회사는 4분기에 3개의 새로운 호스피스 위치를 추가하여 2024년 총 1개의 가정 건강 및 5개의 신규 호스피스 위치로 확대했습니다.
Enhabit (NYSE: EHAB) a publié ses résultats financiers pour le quatrième trimestre de 2024, montrant des performances mitigées dans les différents segments. L'entreprise a enregistré des revenus nets de services de 258,2 millions de dollars, mais a enregistré une perte nette de 46,0 millions de dollars, avec une perte par action de 0,92 dollar et des bénéfices par action ajustés de 0,04 dollar.
Les points forts incluent une augmentation de 10,7% des admissions en santé à domicile non Medicare et 48% des visites non Medicare désormais sous contrats d'innovation des payeurs à des tarifs améliorés. Le segment des soins palliatifs a montré une forte croissance avec une augmentation de 8,6% du nombre moyen de patients par jour par rapport à l'année précédente et une croissance de 6,5% des admissions. Les revenus nets de services de soins palliatifs et l'EBITDA ajusté ont tous deux augmenté d'environ 13% par rapport à l'année précédente.
L'entreprise a réduit sa dette bancaire de 10 millions de dollars au quatrième trimestre, totalisant 40 millions de dollars de réduction de la dette pour 2024. L'efficacité opérationnelle s'est améliorée avec une diminution des dépenses générales et administratives du bureau central de 12%. L'entreprise a élargi sa présence avec trois nouveaux sites de soins palliatifs au quatrième trimestre, portant le total pour 2024 à un site de santé à domicile et cinq nouveaux sites de soins palliatifs.
Enhabit (NYSE: EHAB) hat seine finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, die eine gemischte Leistung in den verschiedenen Segmenten zeigen. Das Unternehmen erzielte einen Nettodienstumsatz von 258,2 Millionen Dollar, verzeichnete jedoch einen Nettoverlust von 46,0 Millionen Dollar, mit einem Verlust pro Aktie von 0,92 Dollar und bereinigten Gewinnen pro Aktie von 0,04 Dollar.
Zu den wichtigsten Punkten gehören ein 10,7% Anstieg bei den nicht-Medicare Aufnahmen im Bereich der häuslichen Gesundheit und 48% der nicht-Medicare Besuche, die jetzt in Verträgen zur Innovation der Kostenträger zu verbesserten Tarifen enthalten sind. Der Hospizbereich zeigte ein starkes Wachstum mit einem 8,6% Anstieg der durchschnittlichen täglichen Patientenanzahl im Vergleich zum Vorjahr und einem 6,5% Wachstum bei den Aufnahmen. Die Nettodienstumsätze im Hospizbereich und das bereinigte EBITDA stiegen beide um etwa 13% im Vergleich zum Vorjahr.
Das Unternehmen reduzierte die Bankverbindlichkeiten im vierten Quartal um 10 Millionen Dollar, was insgesamt 40 Millionen Dollar an Schuldenreduzierung für 2024 ergibt. Die Betriebseffizienz verbesserte sich, da die allgemeinen Verwaltungskosten im Hauptbüro um 12% sanken. Das Unternehmen erweiterte seine Präsenz mit drei neuen Hospizstandorten im vierten Quartal und bringt die Gesamtzahl für 2024 auf einen Standort für häusliche Gesundheit und fünf neue Hospizstandorte.
- Hospice net service revenue up 13.1% YoY
- Home health non-Medicare admissions increased 10.7%
- Hospice average daily census up 8.6% YoY
- Bank debt reduced by $40M in 2024
- Home office G&A expenses decreased 12%
- 48% of home health non-Medicare visits in improved-rate contracts
- Net loss of $46.0M
- Loss per share of $0.92
- Hospice cost per patient day increased 5.7% YoY
- Low adjusted earnings per share of $0.04
Insights
Enhabit's Q4 2024 results reveal a company with contrasting financial signals. The reported $46.0 million net loss ($0.92 per share) against just $0.04 adjusted EPS indicates significant one-time charges affecting GAAP results. The $258.2 million revenue coupled with $25.1 million adjusted EBITDA reflects underlying operational stability despite headline losses.
The divergence between segments is noteworthy. Hospice operations demonstrate robust growth with 13.1% revenue growth, 13.7% EBITDA growth, and an 8.6% increase in average daily census. These metrics signal strengthening hospice operations and execution of their case management model. Meanwhile, home health shows mixed performance with modest 1.8% total admissions growth but stronger 10.7% non-Medicare admissions growth.
The $40 million debt reduction for 2024 ($10M in Q4) demonstrates commitment to strengthening the balance sheet. The 12% reduction in home office G&A expenses indicates effective cost control measures taking hold. Enhabit's expansion with five hospice and one home health de novo locations in 2024 represents calculated growth in their higher-performing segment.
The renegotiation of a large national contract positions Enhabit to leverage its full-service capabilities with referral sources, potentially unlocking new admissions channels. The increasing proportion (48%) of non-Medicare visits through improved-rate payer innovation contracts shows progress in diversifying revenue streams beyond traditional Medicare.
Enhabit's operational metrics reveal a company executing a multi-faceted transformation strategy. The hospice segment demonstrates operational excellence with census increasing sequentially every month since January 2024, validating their case management model implementation. This consistent growth pattern is rare in the hospice sector and suggests effective patient acquisition and retention strategies.
The home health segment's performance reflects industry-wide Medicare challenges, but Enhabit is compensating through strategic payer diversification. Their 30-day hospital readmission rate outperforming the national average by 20% is a critical quality indicator that strengthens their value proposition to both patients and payers. This clinical quality metric likely underpins their ability to negotiate favorable rates in payer innovation contracts.
Cost discipline is apparent across both segments. Home health maintained tight cost control with just 1% year-over-year increase in cost per patient day despite inflationary pressures. The 5.7% cost increase in hospice relative to 13.1% revenue growth demonstrates effective margin expansion. This cost discipline alongside targeted de novo expansion reflects prudent capital allocation.
The strategic pivot toward payer innovation contracts for non-Medicare visits represents adaptation to the evolving reimbursement landscape. With 48% of non-Medicare visits now in these improved-rate contracts, Enhabit is proactively addressing industry shifts toward value-based care while protecting margins. The completed renegotiation of a large national contract further solidifies their referral network relationships for future growth.
Company to host a conference call tomorrow, March 6, 2025, at 10 a.m. EST
“Enhabit is exiting 2024 having executed specific strategies that set us up for long-term growth in both our home health and hospice segments,” said Barb Jacobsmeyer, president and chief executive officer of Enhabit. “In our home health segment, fourth quarter Medicare census continued to stabilize, and with the renegotiation of a large national contract complete, we will be well positioned as a full-service provider to our referral sources. The hospice segment exited 2024 with our highest average daily census since the spin and has increased census sequentially every month since January 2024 as the case management model we implemented in 2023 continues to mature.”
SUMMARY PERFORMANCE - CONSOLIDATED
-
Net service revenue of
$258.2 million -
Net loss attributable to Enhabit, Inc. of
$46.0 million -
Adjusted EBITDA of
$25.1 million -
Loss per share of
$0.92 -
Adjusted earnings per share of
$0.04
RECENT COMPANY HIGHLIGHTS
-
Home health non-Medicare admissions increased
10.7% leading to total admissions growth of1.8% year over year despite hurricane and contract negotiation impacts. -
48% of home health non-Medicare visits are now in payer innovation contracts at improved rates. -
Home health cost per patient day increased approximately
1% year over year. -
30-day home health hospital readmission rate
20.0% better than national average. -
Hospice average daily census increased
8.6% year over year.- Average daily census increased sequentially every month since January 2024.
-
Hospice admissions increased
6.5% year over year. -
Hospice net service revenue increased
13.1% and Adjusted EBITDA increased13.7% year over year. -
Hospice cost per patient day increased
5.7% year over year. -
Home office G&A expenses decreased approximately
12% due to cost control initiatives and incentive compensation expenses lower year over year. -
Reduced bank debt by
$10 million $40 million - Opened three hospice de novo locations in Q4, bringing the 2024 total to one home health and five hospice de novo locations.
FINANCIAL RESULTS
Consolidated
($ in millions, except per share data) |
Q4 |
'24 vs. '23 |
|||
|
2024 |
2023 |
|||
Home health net service revenue |
|
|
(4.3)% |
||
Hospice net service revenue |
57.8 |
51.1 |
|
||
Total net service revenue |
|
|
(0.9)% |
||
|
|
|
|
|
|
|
% of revenue |
|
% of revenue |
|
|
Cost of service |
|
|
|
|
(0.3)% |
Gross margin |
|
125.1 |
|
127.1 |
(1.6)% |
General and administrative expenses |
|
99.8 |
|
101.4 |
(1.6)% |
Total operating expenses |
|
|
|
|
(0.9)% |
Net income attributable to noncontrolling interests |
|
|
|
||
Adjusted EBITDA |
|
|
(0.4)% |
||
Adjusted EBITDA margin |
|
|
|
||
Impairment of goodwill |
|
$— |
N/A |
||
Net loss attributable to Enhabit, Inc. |
|
|
(618.8)% |
||
Reported diluted EPS |
|
|
(618.8)% |
||
Adjusted diluted EPS |
|
|
(33.3)% |
||
SEGMENT RESULTS
Home health
($ in millions) |
Q4 |
'24 vs. '23 |
|
|
2024 |
2023 |
|
Net service revenue: |
|
|
|
Medicare |
|
|
(10.4) % |
Non-Medicare |
80.8 |
76.8 |
5.2 % |
Private duty(1) |
2.3 |
1.8 |
27.8 % |
Home health net service revenue |
200.4 |
209.5 |
(4.3) % |
Cost of service |
105.5 |
109.4 |
(3.6) % |
Gross margin |
47.4 % |
47.8 % |
|
General and administrative expenses |
59.1 |
59.3 |
(0.3) % |
Net income attributable to noncontrolling interests |
0.3 |
0.5 |
(40.0) % |
Adjusted EBITDA |
|
|
(11.9) % |
% Adj. EBITDA margin |
17.7 % |
19.2 % |
|
Operational metrics (actual amounts) |
|
||
Medicare: |
|
|
|
Admissions |
23,121 |
25,090 |
(7.8) % |
Recertifications |
16,300 |
18,970 |
(14.1) % |
Completed episodes |
39,104 |
44,305 |
(11.7) % |
Average daily census |
19,818 |
22,416 |
(11.6) % |
Visits |
560,002 |
639,744 |
(12.5) % |
Visits per episode |
14.3 |
14.4 |
(0.7) % |
Revenue per episode |
|
|
1.5 % |
Non-Medicare: |
|
|
|
Admissions |
29,810 |
26,917 |
10.7 % |
Recertifications |
13,541 |
13,058 |
3.7 % |
Average daily census |
19,968 |
19,222 |
3.9 % |
Visits |
533,618 |
522,641 |
2.1 % |
Total: |
|
|
|
Admissions |
52,931 |
52,007 |
1.8 % |
Same-store total admissions growth |
|
|
1.7 % |
Recertifications |
29,841 |
32,028 |
(6.8) % |
Same-store total recertifications growth |
|
|
(6.9) % |
Average daily census |
39,786 |
41,638 |
(4.4) % |
Visits |
1,093,620 |
1,162,385 |
(5.9) % |
Visits per episode |
13.9 |
14.3 |
(2.8) % |
Cost per visit |
|
|
3.3 % |
Revenue per patient day |
|
|
0.1 % |
Cost per patient day |
|
|
0.9 % |
(1) Private duty represents long-term comprehensive hourly nursing medical care. |
|||
Hospice
($ in millions) |
Q4 |
'24 vs. '23 |
||||
|
2024 |
2023 |
||||
Net service revenue |
$ |
57.8 |
$ |
51.1 |
13.1 % |
|
Cost of service |
|
27.6 |
|
24.0 |
15.0 % |
|
Gross margin |
|
52.2 % |
|
53.0 % |
|
|
General and administrative expenses |
$ |
17.0 |
$ |
15.4 |
10.4 % |
|
Net income attributable to noncontrolling interests |
$ |
(0.1) |
$ |
— |
|
|
Adjusted EBITDA |
$ |
13.3 |
$ |
11.7 |
13.7 % |
|
% Adj. EBITDA margin |
|
23.0 % |
|
22.9 % |
|
|
Operational metrics (actual amounts) |
|
|
|
|||
Total admissions |
|
3,059 |
|
2,872 |
6.5 % |
|
Same-store total admissions growth |
|
|
4.4 % |
|||
Patient days |
|
343,063 |
|
315,870 |
8.6 % |
|
Discharged average length of stay |
|
110 |
|
102 |
7.8 % |
|
Average daily census |
|
3,729 |
|
3,433 |
8.6 % |
|
Revenue per patient day |
$ |
168.6 |
$ |
161.8 |
4.2 % |
|
Cost per patient day |
$ |
80.4 |
$ |
76.1 |
5.7 % |
|
GUIDANCE
The Company is providing full-year 2025 guidance as follows:
Full-year 2025 |
|
Guidance |
Net service revenue |
|
between |
Adjusted EBITDA |
|
between |
Adjusted EPS |
|
between |
For additional considerations regarding the Company’s financial results ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com.
CONFERENCE CALL INFORMATION
The Company will host an investor conference call at 10 a.m. EST on March 6, 2025, to discuss its results for the fourth quarter of 2024. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting: https://events.q4inc.com/attendee/519715442. Following the call, a replay will be available on the Company’s website at: http://investors.ehab.com.
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 115 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.
OTHER INFORMATION
Note regarding presentation and reconciliation of non-GAAP financial measures
The financial data contained in this press release and supplemental information include certain “non-GAAP financial measures” as defined in Regulation G under the Exchange Act, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Adjusted free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP are presented at the end of this presentation. Our Form 8-K, filed with the SEC as of the date of this presentation, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Additionally, our Form 10-K for the year ended December 31, 2024, provides further information regarding "unusual or nonrecurring items that are not typical of ongoing operations," a reconciliation item in our Adjusted EBITDA calculation.
The Company is unable to reconcile the guidance for Adjusted EBITDA and Adjusted EPS to their corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company 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 items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
Note regarding presentation of same-store comparisons
The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.
Enhabit, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net service revenue |
$ |
258.2 |
|
|
$ |
260.6 |
|
|
$ |
1,034.8 |
|
|
$ |
1,046.3 |
|
Cost of service, excluding depreciation and amortization |
|
133.1 |
|
|
|
133.5 |
|
|
|
530.8 |
|
|
|
535.6 |
|
General and administrative expenses |
|
104.6 |
|
|
|
114.5 |
|
|
|
425.9 |
|
|
|
441.6 |
|
Depreciation and amortization |
|
7.9 |
|
|
|
7.7 |
|
|
|
31.5 |
|
|
|
30.9 |
|
Impairment of goodwill |
|
53.8 |
|
|
|
— |
|
|
|
161.7 |
|
|
|
85.8 |
|
Operating (loss) income |
|
(41.2 |
) |
|
|
4.9 |
|
|
|
(115.1 |
) |
|
|
(47.6 |
) |
Interest expense and amortization of debt discounts and fees |
|
10.1 |
|
|
|
12.3 |
|
|
|
42.9 |
|
|
|
43.0 |
|
Other income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
Loss before income taxes and noncontrolling interests |
|
(51.3 |
) |
|
|
(7.4 |
) |
|
|
(158.0 |
) |
|
|
(90.4 |
) |
Benefit from income taxes |
|
(5.5 |
) |
|
|
(1.5 |
) |
|
|
(4.0 |
) |
|
|
(11.4 |
) |
Net loss |
|
(45.8 |
) |
|
|
(5.9 |
) |
|
|
(154.0 |
) |
|
|
(79.0 |
) |
Less: Net income attributable to noncontrolling interests |
|
0.2 |
|
|
|
0.5 |
|
|
|
2.2 |
|
|
|
1.5 |
|
Net loss attributable to Enhabit, Inc. |
$ |
(46.0 |
) |
|
$ |
(6.4 |
) |
|
$ |
(156.2 |
) |
|
$ |
(80.5 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
50.2 |
|
|
|
50.0 |
|
|
|
50.2 |
|
|
|
49.9 |
|
Diluted |
|
50.2 |
|
|
|
50.0 |
|
|
|
50.2 |
|
|
|
49.9 |
|
|
|
|
|
|
|
|
|
||||||||
Loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic loss per share attributable to Enhabit, Inc. common stockholders |
$ |
(0.92 |
) |
|
$ |
(0.13 |
) |
|
$ |
(3.11 |
) |
|
$ |
(1.61 |
) |
Diluted loss per share attributable to Enhabit, Inc. common stockholders |
$ |
(0.92 |
) |
|
$ |
(0.13 |
) |
|
$ |
(3.11 |
) |
|
$ |
(1.61 |
) |
Enhabit, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) |
|||||
(in millions) |
December 31, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
28.4 |
|
$ |
27.4 |
Restricted cash |
|
1.9 |
|
|
2.4 |
Accounts receivable, net of allowances |
|
149.2 |
|
|
164.7 |
Prepaid expenses and other current assets |
|
13.2 |
|
|
15.6 |
Total current assets |
|
192.7 |
|
|
210.1 |
Property and equipment, net |
|
17.7 |
|
|
19.0 |
Operating lease right-of-use assets |
|
52.8 |
|
|
57.5 |
Goodwill |
|
900.0 |
|
|
1,061.7 |
Intangible assets, net |
|
58.1 |
|
|
80.0 |
Other long-term assets |
|
4.7 |
|
|
5.3 |
Total assets |
$ |
1,226.0 |
|
$ |
1,433.6 |
Liabilities and Stockholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
22.8 |
|
$ |
22.5 |
Current portion of operating lease liabilities |
|
12.3 |
|
|
11.8 |
Accounts payable |
|
6.7 |
|
|
7.6 |
Accrued payroll |
|
37.1 |
|
|
38.5 |
Refunds due patients and other third-party payers |
|
5.4 |
|
|
8.2 |
Accrued medical insurance |
|
5.5 |
|
|
8.4 |
Other current liabilities |
|
36.4 |
|
|
40.7 |
Total current liabilities |
|
126.2 |
|
|
137.7 |
Long-term debt, net of current portion |
|
492.6 |
|
|
530.1 |
Long-term operating lease liabilities, net of current portion |
|
41.8 |
|
|
45.7 |
Deferred income tax liabilities |
|
11.5 |
|
|
17.1 |
Other long-term liabilities |
|
— |
|
|
1.3 |
Total liabilities |
|
672.1 |
|
|
731.9 |
Redeemable noncontrolling interests |
|
5.0 |
|
|
5.0 |
Stockholders’ equity: |
|
|
|
||
Total Enhabit, Inc. stockholders’ equity |
|
523.5 |
|
|
669.7 |
Noncontrolling interests |
|
25.4 |
|
|
27.0 |
Total stockholders’ equity |
|
548.9 |
|
|
696.7 |
Total liabilities and stockholders’ equity |
$ |
1,226.0 |
|
$ |
1,433.6 |
Enhabit, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
Year Ended December 31, |
||||||
(in millions) |
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(154.0 |
) |
|
$ |
(79.0 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities— |
|
|
|
||||
Depreciation and amortization |
|
31.5 |
|
|
|
30.9 |
|
Amortization of debt related costs |
|
1.5 |
|
|
|
2.1 |
|
Impairment of goodwill |
|
161.7 |
|
|
|
85.8 |
|
Stock-based compensation |
|
11.7 |
|
|
|
8.9 |
|
Deferred income taxes |
|
(5.7 |
) |
|
|
(11.6 |
) |
Other, net |
|
(0.6 |
) |
|
|
(0.4 |
) |
Changes in assets and liabilities, net of acquisitions— |
|
|
|
||||
Accounts receivable, net of allowances |
|
15.5 |
|
|
|
(14.6 |
) |
Prepaid expenses and other assets |
|
3.1 |
|
|
|
19.1 |
|
Accounts payable |
|
(1.0 |
) |
|
|
3.8 |
|
Accrued payroll |
|
(2.3 |
) |
|
|
3.0 |
|
Other liabilities |
|
(10.2 |
) |
|
|
0.4 |
|
Net cash provided by operating activities |
|
51.2 |
|
|
|
48.4 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(2.8 |
) |
Purchases of property and equipment, including capitalized software costs |
|
(3.8 |
) |
|
|
(3.5 |
) |
Other |
|
1.4 |
|
|
|
1.0 |
|
Net cash used in investing activities |
|
(2.4 |
) |
|
|
(5.3 |
) |
Cash flows from financing activities: |
|
|
|
||||
Principal payments on debt |
|
(20.0 |
) |
|
|
(20.0 |
) |
Payments on revolving credit facility |
|
(20.0 |
) |
|
|
(10.0 |
) |
Principal payments under finance lease obligations |
|
(3.6 |
) |
|
|
(3.4 |
) |
Debt issuance costs |
|
— |
|
|
|
(3.2 |
) |
Distributions paid to noncontrolling interests of consolidated affiliates |
|
(3.7 |
) |
|
|
(3.2 |
) |
Other |
|
(1.0 |
) |
|
|
(0.7 |
) |
Net cash used in financing activities |
|
(48.3 |
) |
|
|
(40.5 |
) |
Increase in cash, cash equivalents, and restricted cash |
|
0.5 |
|
|
|
2.6 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
29.8 |
|
|
|
27.2 |
|
Cash, cash equivalents, and restricted cash at end of year |
$ |
30.3 |
|
|
$ |
29.8 |
|
Enhabit, Inc. and Subsidiaries Supplemental Non-GAAP Information (Unaudited) |
|||||||||||||||
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Diluted earnings per share, as reported |
$ |
(0.92 |
) |
|
$ |
(0.13 |
) |
|
$ |
(3.11 |
) |
|
$ |
(1.61 |
) |
Adjustments, net of tax: |
|
|
|
|
|
|
|
||||||||
Impairment of goodwill |
|
0.89 |
|
|
|
— |
|
|
|
2.82 |
|
|
|
1.50 |
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
0.02 |
|
|
|
0.18 |
|
|
|
0.20 |
|
|
|
0.32 |
|
Income tax adjustments(2) |
|
0.06 |
|
|
|
0.01 |
|
|
|
0.31 |
|
|
|
0.02 |
|
Adjusted diluted earnings per share(3) |
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.21 |
|
|
$ |
0.22 |
|
(1) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. |
(2) |
Income tax adjustments include revisions to the estimates of tax balances as of the Separation date, the effect of permanent book-tax differences attributable to stock-based compensation, and the effect of a valuation allowance recorded against a portion of our deferred tax assets. |
(3) |
Adjusted EPS may not sum due to rounding. |
Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended December 31, |
|||||||||||||||||
|
2024 |
|||||||||||||||||
|
|
|
Adjustments |
|
|
|||||||||||||
(in millions, except per share data) |
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted(4) |
|||||||||
Adjusted EBITDA(1) |
$ |
25.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
25.1 |
|
Interest expense and amortization of debt discounts and fees |
|
(10.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(10.1 |
) |
Depreciation and amortization |
|
(7.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(7.9 |
) |
Gain on disposal of assets |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.2 |
|
Impairment of goodwill |
|
(53.8 |
) |
|
|
53.8 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(3.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3.9 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(1.1 |
) |
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
— |
|
Loss (income) before income taxes |
|
(51.5 |
) |
|
|
53.8 |
|
|
|
1.1 |
|
|
|
— |
|
|
3.4 |
|
Benefit from (provision for) income taxes |
|
5.5 |
|
|
|
(9.3 |
) |
|
|
(0.2 |
) |
|
|
3.0 |
|
|
(1.0 |
) |
Net income (loss) attributable to Enhabit, Inc. |
$ |
(46.0 |
) |
|
$ |
44.5 |
|
|
$ |
0.9 |
|
|
$ |
3.0 |
|
$ |
2.4 |
|
Diluted earnings per share(4) |
$ |
(0.92 |
) |
|
$ |
0.89 |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
$ |
0.04 |
|
Diluted shares |
|
50.2 |
|
|
|
|
|
|
|
|
|
50.2 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance. |
(3) |
Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets. |
(4) |
Adjusted diluted EPS may not sum due to rounding. |
Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended December 31, |
|||||||||||||
|
2023 |
|||||||||||||
|
|
Adjustments |
|
|
||||||||||
(in millions, except per share data) |
As Reported |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
|||||||
Adjusted EBITDA(1) |
$ |
25.2 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
25.2 |
|
Interest expense and amortization of debt discounts and fees |
|
(12.3 |
) |
|
|
— |
|
|
|
— |
|
|
(12.3 |
) |
Depreciation and amortization |
|
(7.7 |
) |
|
|
— |
|
|
|
— |
|
|
(7.7 |
) |
Stock-based compensation |
|
(1.7 |
) |
|
|
— |
|
|
|
— |
|
|
(1.7 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(11.4 |
) |
|
|
11.4 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(7.9 |
) |
|
|
11.4 |
|
|
|
— |
|
|
3.5 |
|
Benefit from (provision for) income taxes |
|
1.5 |
|
|
|
(2.2 |
) |
|
|
0.3 |
|
|
(0.4 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(6.4 |
) |
|
$ |
9.2 |
|
|
$ |
0.3 |
|
$ |
3.1 |
|
Diluted earnings per share(4) |
$ |
(0.13 |
) |
|
$ |
0.18 |
|
|
$ |
0.01 |
|
$ |
0.06 |
|
Diluted shares |
|
50.0 |
|
|
|
|
|
|
|
50.0 |
|
|||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in the three months ended December 31, 2023 include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities. |
(3) |
Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation. |
(4) |
Adjusted diluted EPS may not sum due to rounding. |
Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31, |
|||||||||||||||||
|
2024 |
|||||||||||||||||
|
|
|
Adjustments |
|
|
|||||||||||||
(in millions, except per share data) |
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
|||||||||
Adjusted EBITDA(1) |
$ |
100.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
100.1 |
|
Interest expense and amortization of debt discounts and fees |
|
(42.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(42.9 |
) |
Depreciation and amortization |
|
(31.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(31.5 |
) |
Gain on disposal of assets |
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.7 |
|
Impairment of goodwill |
|
(161.7 |
) |
|
|
161.7 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(11.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(11.7 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations (2) |
|
(13.2 |
) |
|
|
— |
|
|
|
13.2 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(160.2 |
) |
|
|
161.7 |
|
|
|
13.2 |
|
|
|
— |
|
|
14.7 |
|
Benefit from (provision for) income taxes |
|
4.0 |
|
|
|
(20.3 |
) |
|
|
(3.4 |
) |
|
|
15.8 |
|
|
(3.9 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(156.2 |
) |
|
$ |
141.4 |
|
|
$ |
9.8 |
|
|
$ |
15.8 |
|
$ |
10.8 |
|
Diluted earnings per share(4) |
$ |
(3.11 |
) |
|
$ |
2.82 |
|
|
$ |
0.20 |
|
|
$ |
0.31 |
|
$ |
0.21 |
|
Diluted shares |
|
50.2 |
|
|
|
|
|
|
|
|
|
50.4 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in the year ended December 31, 2024 include costs associated with shareholder activism, the strategic review process that concluded in May 2024, nonroutine litigation, and restructuring activities and severance. |
(3) |
Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation and the effect of a valuation allowance recorded against a portion of our deferred tax assets. |
(4) |
Adjusted diluted EPS may not sum due to rounding. |
Reconciliation of Adjusted EBITDA to Adjusted Diluted Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31, |
|||||||||||||||||
|
2023 |
|||||||||||||||||
|
|
|
Adjustments |
|
|
|||||||||||||
(in millions, except per share data) |
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
|||||||||
Adjusted EBITDA(1) |
$ |
97.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
97.6 |
|
Interest expense and amortization of debt discounts and fees |
|
(43.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(43.0 |
) |
Depreciation and amortization |
|
(30.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(30.9 |
) |
Gain on disposal of assets |
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.3 |
|
Impairment of goodwill |
|
(85.8 |
) |
|
|
85.8 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(8.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(8.9 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(21.2 |
) |
|
|
— |
|
|
|
21.2 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(91.9 |
) |
|
|
85.8 |
|
|
|
21.2 |
|
|
|
— |
|
|
15.1 |
|
Benefit from (provision for) income taxes |
|
11.4 |
|
|
|
(11.1 |
) |
|
|
(5.1 |
) |
|
|
0.9 |
|
|
(3.9 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(80.5 |
) |
|
$ |
74.7 |
|
|
$ |
16.1 |
|
|
$ |
0.9 |
|
$ |
11.2 |
|
Diluted earnings per share(4) |
$ |
(1.61 |
) |
|
$ |
1.50 |
|
|
$ |
0.32 |
|
|
$ |
0.02 |
|
$ |
0.22 |
|
Diluted shares |
|
49.9 |
|
|
|
|
|
|
|
|
|
49.9 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in the year ended December 31, 2023 include costs associated with nonroutine litigation, restructuring activities, one-time standalone transition costs, shareholder activism and the strategic review process that concluded in May 2024. |
(3) |
Income tax adjustments include revisions to the estimates of tax balances as of the Separation date and the effect of permanent book-tax differences attributable to stock-based compensation. |
(4) |
Adjusted diluted EPS may not sum due to rounding. |
Reconciliation of Net Loss to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(45.8 |
) |
|
$ |
(5.9 |
) |
|
$ |
(154.0 |
) |
|
$ |
(79.0 |
) |
Interest expense and amortization of debt discounts and fees |
|
10.1 |
|
|
|
12.3 |
|
|
|
42.9 |
|
|
|
43.0 |
|
Benefit from income taxes |
|
(5.5 |
) |
|
|
(1.5 |
) |
|
|
(4.0 |
) |
|
|
(11.4 |
) |
Depreciation and amortization |
|
7.9 |
|
|
|
7.7 |
|
|
|
31.5 |
|
|
|
30.9 |
|
Gain on disposal of assets |
|
(0.2 |
) |
|
|
— |
|
|
|
(0.7 |
) |
|
|
(0.3 |
) |
Impairment of goodwill |
|
53.8 |
|
|
|
— |
|
|
|
161.7 |
|
|
|
85.8 |
|
Stock-based compensation |
|
3.9 |
|
|
|
1.7 |
|
|
|
11.7 |
|
|
|
8.9 |
|
Net income attributable to noncontrolling interests |
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(2.2 |
) |
|
|
(1.5 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
1.1 |
|
|
|
11.4 |
|
|
|
13.2 |
|
|
|
21.2 |
|
Adjusted EBITDA |
$ |
25.1 |
|
|
$ |
25.2 |
|
|
$ |
100.1 |
|
|
$ |
97.6 |
|
(1) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
(4.1 |
) |
|
$ |
2.8 |
|
|
$ |
51.2 |
|
|
$ |
48.4 |
|
Interest expense excluding amortization of debt discounts and fees |
|
9.7 |
|
|
|
11.2 |
|
|
|
41.4 |
|
|
|
40.9 |
|
Current portion of (benefit from) provision for income taxes |
|
0.2 |
|
|
|
(3.0 |
) |
|
|
1.7 |
|
|
|
0.2 |
|
Change in assets and liabilities, excluding derivative instrument |
|
18.4 |
|
|
|
3.1 |
|
|
|
(5.2 |
) |
|
|
(11.9 |
) |
Net income attributable to noncontrolling interests |
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(2.2 |
) |
|
|
(1.5 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
1.1 |
|
|
|
11.4 |
|
|
|
13.2 |
|
|
|
21.2 |
|
Other |
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.3 |
|
Adjusted EBITDA |
$ |
25.1 |
|
|
$ |
25.2 |
|
|
$ |
100.1 |
|
|
$ |
97.6 |
|
(1) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
(4.1 |
) |
|
$ |
2.8 |
|
|
$ |
51.2 |
|
|
$ |
48.4 |
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
1.1 |
|
|
|
11.4 |
|
|
|
13.2 |
|
|
|
21.2 |
|
Capital expenditures for maintenance |
|
(0.6 |
) |
|
|
0.2 |
|
|
|
(3.7 |
) |
|
|
(3.4 |
) |
Other working capital adjustments |
|
(0.7 |
) |
|
|
(2.5 |
) |
|
|
(3.5 |
) |
|
|
(4.2 |
) |
Distributions paid to noncontrolling interests of consolidated affiliates |
|
(1.5 |
) |
|
|
(0.7 |
) |
|
|
(3.7 |
) |
|
|
(3.2 |
) |
Adjusted free cash flow |
$ |
(5.8 |
) |
|
$ |
11.2 |
|
|
$ |
53.5 |
|
|
$ |
58.8 |
|
(1) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. |
Reconciliation of Gross Margin to Adjusted EBITDA Margin |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Gross margin as a percentage of revenue |
48.5 |
% |
|
48.8 |
% |
|
48.7 |
% |
|
48.8 |
% |
General and administrative expenses |
(40.5 |
)% |
|
(43.9 |
)% |
|
(41.2 |
)% |
|
(42.2 |
)% |
Gains on disposal of assets |
(0.1 |
)% |
|
— |
% |
|
(0.1 |
)% |
|
— |
% |
Stock-based compensation |
1.5 |
% |
|
0.6 |
% |
|
1.1 |
% |
|
0.8 |
% |
Noncontrolling interests |
(0.1 |
)% |
|
(0.2 |
)% |
|
(0.2 |
)% |
|
(0.1 |
)% |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
0.4 |
% |
|
4.4 |
% |
|
1.3 |
% |
|
2.0 |
% |
Adjusted EBITDA Margin |
9.7 |
% |
|
9.7 |
% |
|
9.7 |
% |
|
9.3 |
% |
(1) |
Unusual or nonrecurring items in the three months ended December 31, 2024 include costs associated with nonroutine litigation and severance; the year ended December 31, 2024 also includes costs associated with shareholder activism and the strategic review process that concluded in May 2024; in the three months ended December 31, 2023, they include costs associated with nonroutine litigation, the strategic review process that concluded in May 2024, and restructuring activities; the year ended December 31, 2023 also includes costs associated with one-time standalone transition costs and shareholder activism. |
FORWARD-LOOKING STATEMENTS
This press release contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this press release, and the Company 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 necessarily estimates 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 the results 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 those estimated by the Company 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 payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305926115/en/
Investor relations contact
Jobie Williams
investorrelations@ehab.com
469-860-6061
Media contact
Erin Volbeda
media@ehab.com
972-338-5141
Source: Enhabit, Inc.
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