Enhabit Reports Third Quarter 2024 Financial Results
Enhabit Inc (NYSE: EHAB) reported Q3 2024 financial results with net service revenue of $253.6 million, down 1.8% year-over-year. The company reported a net loss of $110.2 million and Adjusted EBITDA of $24.5 million, up 5.6%. Home health segment saw non-Medicare admissions increase 20.1%, while hospice segment revenue grew 11% with average daily census up 6.9%. Due to lower recertifications and hurricane impacts, Enhabit revised its full-year 2024 guidance, with net service revenue now expected between $1,031-$1,046 million and Adjusted EBITDA between $98-$102 million.
Enhabit Inc (NYSE: EHAB) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi netti da servizi pari a 253,6 milioni di dollari, in calo dell'1,8% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 110,2 milioni di dollari e un EBITDA rettificato di 24,5 milioni di dollari, in aumento del 5,6%. Il segmento della salute a domicilio ha visto un aumento del 20,1% delle ammissioni non Medicare, mentre il fatturato del segmento hospice è cresciuto dell'11%, con un aumento del 6,9% nel censimento medio giornaliero. A causa di minori ricertificazioni e dell'impatto degli uragani, Enhabit ha rivisto le previsioni per l'intero anno 2024, con ricavi netti da servizi ora attesi tra 1.031 e 1.046 milioni di dollari e un EBITDA rettificato tra 98 e 102 milioni di dollari.
Enhabit Inc (NYSE: EHAB) reportó los resultados financieros del tercer trimestre de 2024, con ingresos netos de servicios de 253.6 millones de dólares, una disminución del 1.8% en comparación con el año anterior. La compañía reportó una pérdida neta de 110.2 millones de dólares y un EBITDA ajustado de 24.5 millones de dólares, un aumento del 5.6%. El segmento de atención domiciliaria vio un aumento del 20.1% en las admisiones no Medicare, mientras que los ingresos del segmento de hospicio crecieron un 11%, con un aumento del 6.9% en el censo diario promedio. Debido a menores recertificaciones e impactos de huracanes, Enhabit revisó su guía para el año completo 2024, con ingresos netos de servicios ahora esperados entre 1,031 y 1,046 millones de dólares y EBITDA ajustado entre 98 y 102 millones de dólares.
Enhabit Inc (NYSE: EHAB)는 2024년 3분기 재무 결과를 보고했으며, 순 서비스 매출이 $253.6백만으로 전년 대비 1.8% 감소했습니다. 회사는 $110.2백만의 순 손실을 보고했으며, 조정된 EBITDA는 $24.5백만으로 5.6% 증가했습니다. 재택 건강 부문에서는 비-Medicare 입원이 20.1% 증가하였고, 호스피스 부문 매출은 11% 성장하며 평균 일일 인원은 6.9% 증가했습니다. 낮은 재인증 및 허리케인 영향으로 인해 Enhabit는 2024년 전체 연도 전망을 수정하였으며, 순 서비스 매출은 이제 $1,031-$1,046백만으로 예상되며, 조정된 EBITDA는 $98-$102백만 사이입니다.
Enhabit Inc (NYSE: EHAB) a publié les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires net de services de 253,6 millions de dollars, en baisse de 1,8 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 110,2 millions de dollars et un EBITDA ajusté de 24,5 millions de dollars, en hausse de 5,6 %. Le segment des soins à domicile a connu une augmentation des admissions non Medicare de 20,1 %, tandis que les revenus du segment des hospices ont augmenté de 11 %, avec une hausse de 6,9 % du recensement quotidien moyen. En raison de la baisse des récits et des impacts des ouragans, Enhabit a révisé ses prévisions pour l'année entière 2024, avec des revenus nets de services maintenant attendus entre 1 031 et 1 046 millions de dollars et un EBITDA ajusté entre 98 et 102 millions de dollars.
Enhabit Inc (NYSE: EHAB) hat die Finanzergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Nettodienstleistungsumsatz von 253,6 Millionen Dollar, was einem Rückgang von 1,8% im Jahresvergleich entspricht. Das Unternehmen berichtete über einen Nettoverlust von 110,2 Millionen Dollar und ein bereinigtes EBITDA von 24,5 Millionen Dollar, was einem Anstieg von 5,6% entspricht. Der Bereich der häuslichen Pflege verzeichnete einen Anstieg von 20,1% bei den Nicht-Medicare-Zulassungen, während der Umsatz im Hospizsegment um 11% wuchs, mit einem Anstieg des durchschnittlichen täglichen Zensus um 6,9%. Aufgrund niedrigerer Rezertifizierungen und der Auswirkungen von Hurrikans hat Enhabit seine Prognose für das Gesamtjahr 2024 überarbeitet, mit einem nun erwarteten Nettodienstleistungsumsatz zwischen 1.031 und 1.046 Millionen Dollar und einem bereinigten EBITDA zwischen 98 und 102 Millionen Dollar.
- Adjusted EBITDA grew 5.6% to $24.5 million
- Non-Medicare admissions increased 20.1%
- Hospice revenue grew 11% year-over-year
- Hospice average daily census increased 6.9%
- Reduced bank debt by $10 million in Q3
- Non-Medicare revenue per visit increased from $140 to $147
- Net loss of $110.2 million compared to $2.4 million loss year-over-year
- Total net service revenue decreased 1.8% to $253.6 million
- Home health revenue declined 4.7%
- Medicare revenue in home health segment decreased 16.8%
- Revenue per episode decreased 5.1%
- Downward revision of full-year 2024 guidance
Insights
The Q3 results reveal significant challenges, with a
- Home health revenue declined
4.7% with Medicare revenue down16.8% - Medicare episodes decreased
12.4% and revenue per episode fell5.1% - Guidance was lowered for full-year revenue and EBITDA
Operational metrics show a mixed performance with notable strategic shifts. The
Company to host a conference call tomorrow, November 7, 2024, at 10 a.m. EST
“Our continued progress in our strategies during the third quarter resulted in Adjusted EBITDA growth year over year and strong free cash flow generation that led to further debt reduction,” said Enhabit’s President and Chief Executive Officer Barb Jacobsmeyer. “The payor innovation strategy continues to foster Medicare Advantage growth in our home health segment, and average daily census continues to grow in our hospice segment.”
QUARTERLY PERFORMANCE - CONSOLIDATED
-
Net service revenue of
$253.6 million -
Net loss attributable to Enhabit, Inc. of
$110.2 million -
Adjusted EBITDA of
$24.5 million -
Loss per share of
$2.20 -
Adjusted earnings per share of
$0.03
RECENT COMPANY HIGHLIGHTS
-
Non-Medicare admissions increased
20.1% , driving total admissions growth of5.6% year over year-
45% of non-Medicare visits are now in payor innovation contracts at improved rates
-
-
Home health cost per visit increased
1.1% year over year -
30-day hospital readmission rate in home health is
23.3% better than the national average -
Hospice average daily census increased
6.9% year over year- Average daily census increased sequentially every month since January
-
Admissions increased
5.7% year over year
- Hospice cost per day flat year over year
-
53.2% better than the national average for hospice patient visits in last days of life -
Consolidated Adjusted EBITDA grew to
$24.5 million $23.2 million 5.6% improvement year over year primarily due to home office expense reductions and revenue growth in hospice -
Reduced bank debt by
$10 million
FINANCIAL RESULTS
Consolidated
($ in millions, except per share data) |
Q3 |
'24 vs. '23 |
|||||||
|
2024 |
2023 |
|||||||
Home health net service revenue |
$ |
201.0 |
$ |
210.9 |
(4.7)% |
||||
Hospice net service revenue |
|
52.6 |
|
47.4 |
|
||||
Total net service revenue |
$ |
253.6 |
$ |
258.3 |
(1.8)% |
||||
|
% of revenue |
|
% of revenue |
|
|
||||
Cost of service |
51.9 |
% |
$ |
131.7 |
51.9 |
% |
$ |
134.0 |
(1.7)% |
Gross margin |
48.1 |
% |
|
121.9 |
48.1 |
% |
|
124.3 |
(1.9)% |
General and administrative expenses |
38.1 |
% |
|
96.7 |
39.1 |
% |
|
101.0 |
(4.3)% |
Total operating expenses |
90.1 |
% |
$ |
228.4 |
91.0 |
% |
$ |
235.0 |
(2.8)% |
Other income |
|
— |
|
(0.1) |
|
||||
Net income attributable to noncontrolling interests |
|
0.7 |
|
0.2 |
|
||||
Adjusted EBITDA |
$ |
24.5 |
$ |
23.2 |
|
||||
Adjusted EBITDA margin |
|
|
|
|
|
||||
Impairment of goodwill |
$ |
107.9 |
$ |
— |
N/A |
||||
Net loss attributable to Enhabit, Inc. |
$ |
(110.2) |
$ |
(2.4) |
(4,491.7)% |
||||
Reported diluted EPS |
$ |
(2.20) |
$ |
(0.05) |
(4,300.0)% |
||||
Adjusted EPS |
$ |
0.03 |
$ |
0.03 |
—% |
||||
Consolidated Adjusted EBITDA grew
Consolidated revenue decreased
Our payor innovation strategy continues to foster Medicare Advantage growth.
SEGMENT RESULTS
Home Health
($ in millions) |
|
Q3 |
'24 vs. '23 |
|||
|
|
|
2024 |
|
2023 |
|
Net service revenue: |
|
|
|
|||
Medicare |
$ |
117.3 |
$ |
141.0 |
(16.8)% |
|
Non-Medicare |
|
81.5 |
|
67.4 |
|
|
Private duty(1) |
|
2.2 |
|
2.5 |
(12.0)% |
|
Home health net service revenue |
|
201.0 |
|
210.9 |
(4.7)% |
|
Cost of service |
|
105.9 |
|
110.0 |
(3.7)% |
|
Gross margin |
|
|
|
|
|
|
General and administrative expenses |
|
58.2 |
|
59.0 |
(1.4)% |
|
Other income |
|
— |
|
(0.1) |
(100.0)% |
|
Net income attributable to noncontrolling interests |
|
0.4 |
|
0.2 |
|
|
Adjusted EBITDA |
$ |
36.5 |
$ |
41.8 |
(12.7)% |
|
% Adj. EBITDA margin |
|
|
|
|
|
|
Operational metrics (actual amounts) |
|
|
|
|||
Medicare: |
|
|
|
|||
Admissions |
|
23,422 |
|
25,585 |
(8.5)% |
|
Recertifications |
|
16,101 |
|
19,321 |
(16.7)% |
|
Completed episodes |
|
38,866 |
|
44,350 |
(12.4)% |
|
Visits |
|
561,525 |
|
660,380 |
(15.0)% |
|
Visits per episode |
|
14.4 |
|
14.9 |
(3.4)% |
|
Revenue per episode |
$ |
3,018 |
$ |
3,179 |
(5.1)% |
|
Non-Medicare: |
|
|
|
|||
Admissions |
|
29,950 |
|
24,938 |
|
|
Recertifications |
|
14,112 |
|
13,411 |
|
|
Visits |
|
552,815 |
|
501,764 |
|
|
Total: |
|
|
|
|||
Admissions |
|
53,372 |
|
50,523 |
|
|
Same-store total admissions growth |
|
|
|
|||
Recertifications |
|
30,213 |
|
32,732 |
(7.7)% |
|
Same-store total recertifications growth |
|
|
(7.8)% |
|||
Visits |
|
1,114,340 |
|
1,162,144 |
(4.1)% |
|
Visits per episode |
|
14.1 |
|
14.9 |
(5.4)% |
|
Cost per visit |
$ |
94 |
$ |
93 |
|
|
(1) Private duty represents long-term comprehensive hourly nursing medical care. |
||||||
Non-Medicare admissions increased
Adjusted EBITDA decreased
Hospice
($ in millions) |
|
Q3 |
'24 vs. '23 |
|||
|
|
|
2024 |
|
2023 |
|
Net service revenue |
$ |
52.6 |
$ |
47.4 |
|
|
Cost of service |
|
25.8 |
|
24.0 |
|
|
Gross margin |
|
|
|
|
|
|
General and administrative expenses |
|
16.5 |
|
15.7 |
|
|
Net income attributable to noncontrolling interests |
|
0.3 |
|
— |
N/A |
|
Adjusted EBITDA |
$ |
10.0 |
$ |
7.7 |
|
|
% Adj. EBITDA margin |
|
|
|
|
|
|
Operational metrics (actual amounts) |
|
|
|
|||
Total admissions |
|
3,046 |
|
2,882 |
|
|
Same-store total admissions growth |
|
|
|
|||
Patient days |
|
333,247 |
|
311,719 |
|
|
Discharged average length of stay |
|
100 |
|
107 |
(6.5)% |
|
Average daily census |
|
3,622 |
|
3,388 |
|
|
Revenue per patient day |
$ |
158 |
$ |
152 |
|
|
Cost per patient day |
$ |
77 |
$ |
77 |
—% |
|
Revenue increased
Average daily census increased
Adjusted EBITDA increased
GUIDANCE
Based on the impact of lower recertifications in the third quarter and the impact from hurricanes in September and October, the Company revised its guidance ranges for full-year 2024. The Company updated its full-year 2024 guidance as follows:
($ in millions, except per share data) |
2024 Previous Guidance |
2024 Updated Guidance |
|
Net service revenue |
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted EPS |
|
|
|
For additional considerations regarding the Company’s 2024 guidance 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 November 7, 2024 to discuss its results for the third 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/164004764. 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 256 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.
OTHER INFORMATION
Note regarding presentation and reconciliation of non-GAAP financial measures
The financial data contained in this press release and supplemental information includes non-GAAP (generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, and Adjusted free cash flow. See “Supplemental Non-GAAP Information” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Additionally, our Form 10-Q for the three and nine months ended September 30, 2024, provides further information regarding “unusual or nonrecurring items that are not typical of ongoing operations,” a reconciliation item in our Adjusted EBITDA calculation. Such non-GAAP financial measures exclude significant components in understanding and assessing financial performance and should therefore not be considered superior to, as a substitute for or alternative to the GAAP financial measures presented in this press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
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
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions, except per share data) |
||||||||||||||
Net service revenue |
$ |
253.6 |
|
|
$ |
258.3 |
|
|
$ |
776.6 |
|
|
$ |
785.7 |
|
Cost of service, excluding depreciation and amortization |
|
131.7 |
|
|
|
134.0 |
|
|
|
397.7 |
|
|
|
402.1 |
|
General and administrative expenses |
|
103.8 |
|
|
|
108.8 |
|
|
|
321.3 |
|
|
|
327.1 |
|
Depreciation and amortization |
|
8.2 |
|
|
|
7.7 |
|
|
|
23.6 |
|
|
|
23.2 |
|
Impairment of goodwill |
|
107.9 |
|
|
|
— |
|
|
|
107.9 |
|
|
|
85.8 |
|
Operating (loss) income |
|
(98.0 |
) |
|
|
7.8 |
|
|
|
(73.9 |
) |
|
|
(52.5 |
) |
Interest expense and amortization of debt discounts and fees |
|
10.8 |
|
|
|
10.9 |
|
|
|
32.8 |
|
|
|
30.7 |
|
Other income |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.2 |
) |
Loss before income taxes and noncontrolling interests |
|
(108.8 |
) |
|
|
(3.0 |
) |
|
|
(106.7 |
) |
|
|
(83.0 |
) |
Income tax (benefit) expense |
|
0.7 |
|
|
|
(0.8 |
) |
|
|
1.5 |
|
|
|
(9.9 |
) |
Net loss |
|
(109.5 |
) |
|
|
(2.2 |
) |
|
|
(108.2 |
) |
|
|
(73.1 |
) |
Less: Net income attributable to noncontrolling interests |
|
0.7 |
|
|
|
0.2 |
|
|
|
2.0 |
|
|
|
1.0 |
|
Net loss attributable to Enhabit, Inc. |
$ |
(110.2 |
) |
|
$ |
(2.4 |
) |
|
$ |
(110.2 |
) |
|
$ |
(74.1 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
50.2 |
|
|
|
49.9 |
|
|
|
50.2 |
|
|
|
49.8 |
|
Diluted |
|
50.2 |
|
|
|
49.9 |
|
|
|
50.2 |
|
|
|
49.8 |
|
|
|
|
|
|
|
|
|
||||||||
Loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic loss per share attributable to Enhabit, Inc. common stockholders |
$ |
(2.20 |
) |
|
$ |
(0.05 |
) |
|
$ |
(2.20 |
) |
|
$ |
(1.48 |
) |
Diluted loss per share attributable to Enhabit, Inc. common stockholders |
$ |
(2.20 |
) |
|
$ |
(0.05 |
) |
|
$ |
(2.20 |
) |
|
$ |
(1.48 |
) |
Enhabit, Inc. and Subsidiaries
|
|||||
|
September 30,
|
|
December 31,
|
||
|
($ in millions) |
||||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
45.7 |
|
$ |
27.4 |
Restricted cash |
|
1.7 |
|
|
2.4 |
Accounts receivable, net of allowances |
|
150.9 |
|
|
164.7 |
Prepaid expenses and other current assets |
|
9.9 |
|
|
15.6 |
Total current assets |
|
208.2 |
|
|
210.1 |
Property and equipment, net |
|
19.4 |
|
|
19.0 |
Operating lease right-of-use assets |
|
54.3 |
|
|
57.5 |
Goodwill |
|
953.8 |
|
|
1,061.7 |
Intangible assets, net |
|
63.9 |
|
|
80.0 |
Other long-term assets |
|
4.7 |
|
|
5.3 |
Total assets |
$ |
1,304.3 |
|
$ |
1,433.6 |
Liabilities and stockholders’ equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
23.0 |
|
$ |
22.5 |
Current operating lease liabilities |
|
11.7 |
|
|
11.8 |
Accounts payable |
|
9.9 |
|
|
7.6 |
Accrued payroll |
|
47.1 |
|
|
38.5 |
Refunds due patients and other third-party payors |
|
4.1 |
|
|
8.2 |
Accrued medical insurance |
|
8.5 |
|
|
8.4 |
Other current liabilities |
|
38.6 |
|
|
40.7 |
Total current liabilities |
|
142.9 |
|
|
137.7 |
Long-term debt, net of current portion |
|
502.9 |
|
|
530.1 |
Long-term operating lease liabilities, net of current portion |
|
43.4 |
|
|
45.7 |
Deferred income tax liabilities |
|
17.1 |
|
|
17.1 |
Other long-term liabilities |
|
0.1 |
|
|
1.3 |
Total liabilities |
|
706.4 |
|
|
731.9 |
Redeemable noncontrolling interests |
|
5.0 |
|
|
5.0 |
Stockholders’ equity: |
|
|
|
||
Total Enhabit, Inc. stockholders’ equity |
|
566.1 |
|
|
669.7 |
Noncontrolling interests |
|
26.8 |
|
|
27.0 |
Total stockholders’ equity |
|
592.9 |
|
|
696.7 |
Total liabilities and stockholders’ equity |
$ |
1,304.3 |
|
$ |
1,433.6 |
Enhabit, Inc. and Subsidiaries
|
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(108.2 |
) |
|
$ |
(73.1 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities— |
|
|
|
||||
Depreciation and amortization |
|
23.6 |
|
|
|
23.2 |
|
Amortization of debt related costs |
|
1.1 |
|
|
|
1.0 |
|
Impairment of goodwill |
|
107.9 |
|
|
|
85.8 |
|
Stock-based compensation |
|
7.8 |
|
|
|
7.2 |
|
Deferred income taxes |
|
0.1 |
|
|
|
(13.1 |
) |
Other |
|
(0.7 |
) |
|
|
0.7 |
|
Changes in assets and liabilities, net of acquisitions— |
|
|
|
||||
Accounts receivable, net of allowances |
|
13.8 |
|
|
|
(17.8 |
) |
Prepaid expenses and other assets |
|
5.9 |
|
|
|
19.9 |
|
Accounts payable |
|
2.3 |
|
|
|
2.2 |
|
Accrued payroll |
|
8.6 |
|
|
|
13.1 |
|
Other liabilities |
|
(6.9 |
) |
|
|
(3.6 |
) |
Net cash provided by operating activities |
|
55.3 |
|
|
|
45.5 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(2.8 |
) |
Purchases of property and equipment, including capitalized software costs |
|
(3.2 |
) |
|
|
(3.6 |
) |
Other |
|
1.1 |
|
|
|
0.6 |
|
Net cash used in investing activities |
|
(2.1 |
) |
|
|
(5.8 |
) |
Cash flows from financing activities: |
|
|
|
||||
Principal payments on term loan facility |
|
(15.0 |
) |
|
|
(15.0 |
) |
Principal payments on revolving credit facility |
|
(15.0 |
) |
|
|
(10.0 |
) |
Principal payments under finance lease obligations |
|
— |
|
|
|
— |
|
Debt issuance costs |
|
— |
|
|
|
(1.1 |
) |
Distributions paid to noncontrolling interests of consolidated affiliates |
|
(2.2 |
) |
|
|
(2.5 |
) |
Other |
|
(3.4 |
) |
|
|
(3.1 |
) |
Net cash used in financing activities |
|
(35.6 |
) |
|
|
(31.7 |
) |
Increase in cash, cash equivalents, and restricted cash |
|
17.6 |
|
|
|
8.0 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
29.8 |
|
|
|
27.2 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
47.4 |
|
|
$ |
35.2 |
|
Enhabit, Inc. and Subsidiaries
|
|||||||||||||||
Reconciliation of Diluted Earnings Per Share to Adjusted Earnings Per Share |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Diluted earnings per share, as reported |
$ |
(2.20 |
) |
|
$ |
(0.05 |
) |
|
$ |
(2.20 |
) |
|
$ |
(1.48 |
) |
Adjustments, net of tax: |
|
|
|
|
|
|
|
||||||||
Impairment of goodwill |
|
1.93 |
|
|
|
— |
|
|
|
1.93 |
|
|
|
1.50 |
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
0.05 |
|
|
|
0.07 |
|
|
|
0.18 |
|
|
|
0.14 |
|
Income tax adjustments(2) |
|
0.24 |
|
|
|
— |
|
|
|
0.25 |
|
|
|
0.01 |
|
Adjusted earnings per share |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
0.16 |
|
(1) |
Unusual or nonrecurring items in the three months ended September 30, 2024 include costs associated with shareholder activism and restructuring activities and severance; the nine months ended September 30, 2024 include costs associated with shareholder activism, the strategic review process and nonroutine litigation; in the three months ended September 30, 2023, they include nonroutine litigation, and the strategic review process; the nine months ended September 30, 2023 also include shareholder activism. |
(2) |
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. |
Reconciliation of Adjusted EBITDA to Adjusted Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 30, |
|||||||||||||||||
|
2024 |
|||||||||||||||||
|
|
|
|
|
Adjustments |
|
|
|
|
|||||||||
|
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income tax Adjustments(3) |
|
As Adjusted |
|||||||||
|
($ in millions, except per share data) |
|||||||||||||||||
Adjusted EBITDA(1) |
$ |
24.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
24.5 |
|
Interest expense and amortization of debt discounts and fees |
(10.8 |
) | — |
|
|
|
— |
|
|
|
— |
|
|
(10.8 |
) | |||
Depreciation and amortization |
(8.2 |
) |
— |
|
|
|
— |
|
|
|
— |
|
|
(8.2 |
) | |||
Gain on disposal of assets |
0.3 |
— |
|
|
|
— |
|
|
|
— |
|
|
0.3 |
|||||
Impairment of goodwill |
|
(107.9 |
) |
|
|
107.9 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(3.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3.8 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(3.6 |
) |
|
|
— |
|
|
|
3.6 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(109.5 |
) |
|
|
107.9 |
|
|
|
3.6 |
|
|
|
— |
|
|
2.0 |
|
Income tax benefit (expense) |
|
(0.7 |
) |
|
|
(11.0 |
) |
|
|
(1.0 |
) |
|
|
12.2 |
|
|
(0.5 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(110.2 |
) |
|
$ |
96.9 |
|
|
$ |
2.6 |
|
|
$ |
12.2 |
|
$ |
1.5 |
|
Diluted EPS |
$ |
(2.20 |
) |
|
$ |
1.93 |
|
|
$ |
0.05 |
|
|
$ |
0.24 |
|
$ |
0.03 |
|
Diluted shares |
|
50.2 |
|
|
|
|
|
|
|
|
|
50.8 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in Q3 2024 include costs associated with shareholder activism 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 Earnings Per Share |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, |
||||||||||||||||
|
2023 |
||||||||||||||||
|
|
Adjustments |
|
||||||||||||||
|
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
||||||||
|
($ in millions, except per share data) |
||||||||||||||||
Adjusted EBITDA(1) |
$ |
23.2 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
23.2 |
|
Interest expense and amortization of debt discounts and fees |
|
(10.9 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(10.9 |
) |
Depreciation and amortization |
|
(7.7 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(7.7 |
) |
Gain on disposal of assets |
|
0.2 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.2 |
|
Stock-based compensation |
|
(3.1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(3.1 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(4.9 |
) |
|
|
— |
|
|
4.9 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(3.2 |
) |
|
|
— |
|
|
4.9 |
|
|
|
— |
|
|
1.7 |
|
Income tax benefit (expense) |
|
0.8 |
|
|
|
— |
|
|
(1.3 |
) |
|
|
0.1 |
|
|
(0.4 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(2.4 |
) |
|
$ |
— |
|
$ |
3.6 |
|
|
$ |
0.1 |
|
$ |
1.3 |
|
Diluted EPS |
$ |
(0.05 |
) |
|
$ |
— |
|
$ |
0.07 |
|
|
$ |
— |
|
$ |
0.03 |
|
Diluted shares |
|
50.1 |
|
|
|
|
|
|
|
|
|
50.1 |
|
||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in 2023 include costs associated with nonroutine litigation, and the strategic review process. |
(3) |
Income tax adjustments include 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 Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine Months Ended September 30, |
|||||||||||||||||
|
2024 |
|||||||||||||||||
|
|
|
Adjustments |
|
|
|||||||||||||
|
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
|||||||||
|
($ in millions, except per share data) |
|||||||||||||||||
Adjusted EBITDA(1) |
$ |
75.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
75.0 |
|
Interest expense and amortization of debt discounts and fees |
|
(32.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(32.8 |
) |
Depreciation and amortization |
|
(23.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(23.6 |
) |
Gain on disposal of assets |
0.5 |
— |
|
|
|
— |
|
|
|
— |
|
|
0.5 |
|||||
Impairment of goodwill |
|
(107.9 |
) |
|
|
107.9 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(7.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(7.8 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(12.1 |
) |
|
|
— |
|
|
|
12.1 |
|
|
|
— |
|
|
— |
|
Income before income taxes |
|
(108.7 |
) |
|
|
107.9 |
|
|
|
12.1 |
|
|
|
— |
|
|
11.3 |
|
Income tax expense |
|
(1.5 |
) |
|
|
(11.0 |
) |
|
|
(3.2 |
) |
|
|
12.8 |
|
|
(2.9 |
) |
Net income attributable to Enhabit, Inc. |
$ |
(110.2 |
) |
|
$ |
96.9 |
|
|
$ |
8.9 |
|
|
$ |
12.8 |
|
$ |
8.4 |
|
Diluted EPS |
$ |
(2.20 |
) |
|
$ |
1.93 |
|
|
$ |
0.18 |
|
|
$ |
0.25 |
|
$ |
0.17 |
|
Diluted shares |
|
50.2 |
|
|
|
|
|
|
|
|
|
50.4 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in 2024 include costs associated with shareholder activism, the strategic review process, and nonroutine litigation. |
(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 Earnings Per Share |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine Months Ended September 30, |
|||||||||||||||||
|
2023 |
|||||||||||||||||
|
|
Adjustments |
|
|||||||||||||||
|
As Reported |
|
Impairment of Goodwill |
|
Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations |
|
Income Tax Adjustments(3) |
|
As Adjusted |
|||||||||
|
($ in millions, except per share data) |
|||||||||||||||||
Adjusted EBITDA(1) |
$ |
72.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
72.5 |
|
Interest expense and amortization of debt discounts and fees |
|
(30.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(30.7 |
) |
Depreciation and amortization |
|
(23.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(23.2 |
) |
Gain on disposal of assets |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.2 |
|
Impairment of goodwill |
|
(85.8 |
) |
|
|
85.8 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Stock-based compensation |
|
(7.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(7.2 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
(9.8 |
) |
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
— |
|
(Loss) income before income taxes |
|
(84.0 |
) |
|
|
85.8 |
|
|
|
9.8 |
|
|
|
— |
|
|
11.6 |
|
Income tax benefit (expense) |
|
9.9 |
|
|
|
(11.1 |
) |
|
|
(2.9 |
) |
|
|
0.6 |
|
|
(3.5 |
) |
Net (loss) income attributable to Enhabit, Inc. |
$ |
(74.1 |
) |
|
$ |
74.7 |
|
|
$ |
6.9 |
|
|
$ |
0.6 |
|
$ |
8.1 |
|
Diluted EPS |
$ |
(1.48 |
) |
|
$ |
1.50 |
|
|
$ |
0.14 |
|
|
$ |
0.01 |
|
$ |
0.16 |
|
Diluted shares |
|
49.9 |
|
|
|
|
|
|
|
|
|
49.9 |
|
|||||
(1) |
Reconciliation to GAAP provided below. |
(2) |
Unusual or nonrecurring items in 2023 include costs associated with nonroutine litigation, shareholder activism, and the strategic review process. |
(3) |
Income tax adjustments include 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Net loss |
$ |
(109.5 |
) |
|
$ |
(2.2 |
) |
|
$ |
(108.2 |
) |
|
$ |
(73.1 |
) |
Interest expense and amortization of debt discounts and fees |
|
10.8 |
|
|
|
10.9 |
|
|
|
32.8 |
|
|
|
30.7 |
|
Income tax (benefit) expense |
|
0.7 |
|
|
|
(0.8 |
) |
|
|
1.5 |
|
|
|
(9.9 |
) |
Depreciation and amortization |
|
8.2 |
|
|
|
7.7 |
|
|
|
23.6 |
|
|
|
23.2 |
|
Gains on disposal of assets |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
Impairment of goodwill |
|
107.9 |
|
|
|
— |
|
|
|
107.9 |
|
|
|
85.8 |
|
Stock-based compensation |
|
3.8 |
|
|
|
3.1 |
|
|
|
7.8 |
|
|
|
7.2 |
|
Net income attributable to noncontrolling interests |
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
(2.0 |
) |
|
|
(1.0 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
3.6 |
|
|
|
4.9 |
|
|
|
12.1 |
|
|
|
9.8 |
|
Adjusted EBITDA |
$ |
24.5 |
|
|
$ |
23.2 |
|
|
$ |
75.0 |
|
|
$ |
72.5 |
|
(1) |
Unusual or nonrecurring items in the three months ended September 30, 2024 include costs associated with shareholder activism and restructuring activities and severance; the nine months ended September 30, 2024 include costs associated with shareholder activism, the strategic review process and nonroutine litigation; in the three months ended September 30, 2023, they include nonroutine litigation, and the strategic review process; the nine months ended September 30, 2023 also include shareholder activism. |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Net cash provided by operating activities |
$ |
28.4 |
|
|
$ |
6.3 |
|
|
$ |
55.3 |
|
|
$ |
45.5 |
|
Interest expense, excluding amortization of debt discounts and fees |
|
10.4 |
|
|
|
10.7 |
|
|
|
31.7 |
|
|
|
30.3 |
|
Current portion of income tax expense |
|
(0.5 |
) |
|
|
1.3 |
|
|
|
1.4 |
|
|
|
3.2 |
|
Change in assets and liabilities, excluding derivative instrument |
|
(16.7 |
) |
|
|
— |
|
|
|
(23.6 |
) |
|
|
(15.0 |
) |
Net income attributable to noncontrolling interests |
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
(2.0 |
) |
|
|
(1.0 |
) |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
3.6 |
|
|
|
4.9 |
|
|
|
12.1 |
|
|
|
9.8 |
|
Other |
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
(0.3 |
) |
Adjusted EBITDA |
$ |
24.5 |
|
|
$ |
23.2 |
|
|
$ |
75.0 |
|
|
$ |
72.5 |
|
(1) |
Unusual or nonrecurring items in the three months ended September 30, 2024 include costs associated with shareholder activism and restructuring activities and severance; the nine months ended September 30, 2024 include costs associated with shareholder activism, the strategic review process and nonroutine litigation; in the three months ended September 30, 2023, they include nonroutine litigation, and the strategic review process; the nine months ended September 30, 2023 also include shareholder activism. |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Net cash provided by operating activities |
$ |
28.4 |
|
|
$ |
6.3 |
|
|
$ |
55.3 |
|
|
$ |
45.5 |
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
3.6 |
|
|
|
4.9 |
|
|
|
12.1 |
|
|
|
9.8 |
|
Capital expenditures for maintenance |
|
(0.7 |
) |
|
|
(1.9 |
) |
|
|
(3.2 |
) |
|
|
(3.6 |
) |
Other working capital adjustments |
|
(1.0 |
) |
|
|
(0.7 |
) |
|
|
(2.7 |
) |
|
|
(1.7 |
) |
Distributions paid to noncontrolling interests of consolidated affiliates |
|
— |
|
|
|
— |
|
|
|
(2.2 |
) |
|
|
(2.5 |
) |
Adjusted free cash flow |
$ |
30.3 |
|
|
$ |
8.6 |
|
|
$ |
59.3 |
|
|
$ |
47.5 |
|
| (1) | Unusual or nonrecurring items in the three months ended September 30, 2024 include costs associated with shareholder activism and restructuring activities and severance; the nine months ended September 30, 2024 include costs associated with shareholder activism, the strategic review process and nonroutine litigation; in the three months ended September 30, 2023, they include nonroutine litigation, and the strategic review process; the nine months ended September 30, 2023 also include shareholder activism. |
Reconciliation of Gross Margin to Adjusted EBITDA Margin |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
||||||||||
Gross margin as a percentage of revenue |
48.1 |
% |
|
48.1 |
% |
|
48.8 |
% |
|
48.8 |
% |
General and administrative expenses |
(40.9 |
)% |
|
(42.1 |
)% |
|
(41.4 |
)% |
|
(41.6 |
)% |
Stock-based compensation |
1.5 |
% |
|
1.2 |
% |
|
1.0 |
% |
|
0.9 |
% |
Noncontrolling interests |
(0.3 |
)% |
|
(0.1 |
)% |
|
(0.3 |
)% |
|
(0.1 |
)% |
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
1.4 |
% |
|
1.9 |
% |
|
1.6 |
% |
|
1.2 |
% |
Adjusted EBITDA margin |
9.7 |
% |
|
9.0 |
% |
|
9.6 |
% |
|
9.2 |
% |
| (1) | Unusual or nonrecurring items in the three months ended September 30, 2024 include costs associated with shareholder activism and restructuring activities and severance; the nine months ended September 30, 2024 include costs associated with shareholder activism, the strategic review process and nonroutine litigation; in the three months ended September 30, 2023, they include nonroutine litigation, and the strategic review process; the nine months ended September 30, 2023 also include 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 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 payors, 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’, 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; the impact of Hurricanes Helene and Milton on our operations; and our ability to control costs, particularly labor and employee benefit costs. Our Annual Report on Form 10-K for the year ended December 31, 2023 dated March 15, 2024, which can be found on the Company’s website at http://investors.ehab.com, discusses these and other 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106425463/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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