Company to host a conference call tomorrow,
August 7, 2024, at 10 a.m. EDT
Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice
care provider, today reported its results of operations for the
second quarter ended June 30, 2024.
“The second quarter marked our third sequential quarter
demonstrating the success of our strategies,” said Enhabit’s
President and Chief Executive Officer Barb Jacobsmeyer. “In our
home health segment, our total admissions growth of 6.4% was driven
by our payor innovation strategy and our focus on improved
utilization of our clinical resources. In our hospice segment, we
continued to make steady progress in growing our census, with
average daily census increasing each month since January 2024. Our
focus on recruitment and retention continues to position us for
long-term growth, and we remain confident in the long-range growth
potential for Enhabit.”
QUARTERLY PERFORMANCE - CONSOLIDATED
- Net service revenue of $260.6 million
- Net loss attributable to Enhabit, Inc. of $0.2 million
- Adjusted EBITDA of $25.2 million
- Earnings per share of $0.00
- Adjusted earnings per share of $0.07
RECENT COMPANY HIGHLIGHTS
- Non-Medicare admissions grew 25.2%, driving total admission
growth of 6.4% year over year
- 43% of non-Medicare visits are now in payor innovation
contracts at improved rates
- 30-day hospitalization readmission rate in home health is 23.3%
better than the national average
- Hospice average daily census increased 2.7% year over year
- Average daily census increased sequentially every month since
January
- 53.2% better than the national average for hospice patient
visits in last days of life
- Reduced bank debt by $15 million in the quarter
- Opened one home health de novo location in Florida in
April
FINANCIAL RESULTS
Consolidated
($ in millions, except per share
data)
Q2
'24 vs. '23
2024
2023
Home health net service revenue
$
210.2
$
213.8
(1.7) %
Hospice net service revenue
50.4
48.5
3.9 %
Total net service revenue
$
260.6
$
262.3
(0.6) %
% of revenue
% of revenue
Cost of service
50.6 %
$
131.8
51.7 %
$
135.5
(2.7) %
Gross margin
49.4 %
128.8
48.3 %
126.8
1.6 %
General and administrative expenses
39.5 %
103.0
39.2 %
102.7
0.3 %
Total operating expenses
90.1 %
$
234.8
90.8 %
$
238.2
(1.4) %
Other income
—
(0.1)
Net income attributable to noncontrolling
interests
0.6
0.3
Adjusted EBITDA
$
25.2
$
23.9
5.4 %
Adjusted EBITDA margin
9.7 %
9.1 %
Impairment of goodwill
$
—
$
85.8
(100.0) %
Net loss attributable to Enhabit,
Inc.
$
(0.2)
$
(74.4)
(99.7) %
Reported diluted EPS
$
—
$
(1.49)
(100.0) %
Adjusted EPS
$
0.07
$
0.04
75.0 %
Consolidated Adjusted EBITDA grew 5.4% year over year through
cost management in home health and revenue growth in hospice.
SEGMENT RESULTS
Home Health
($ in millions)
Q2
'24 vs. '23
2024
2023
Net service revenue:
Medicare
$
121.7
$
139.4
(12.7)%
Non-Medicare
86.3
71.8
20.2%
Private duty(1)
2.2
2.6
(15.4)%
Home health net service revenue
210.2
213.8
(1.7)%
Cost of service
106.9
111.4
(4.0)%
Gross margin
49.1%
47.9%
General and administrative expenses
58.6
59.4
(1.3)%
Other income
—
(0.1)
(100.0)%
Net income attributable to noncontrolling
interests
0.5
0.3
66.7%
Adjusted EBITDA
$
44.2
$
42.8
3.3%
% Adj. EBITDA margin
21.0%
20.0%
Operational metrics (actual
amounts)
Medicare:
Admissions
24,015
26,845
(10.5)%
Recertifications
16,639
19,884
(16.3)%
Completed episodes
41,620
47,528
(12.4)%
Visits
597,742
691,857
(13.6)%
Visits per episode
14.4
14.6
(1.4)%
Revenue per episode
$
2,924
$
2,933
(0.3)%
Non-Medicare:
Admissions
30,209
24,130
25.2%
Recertifications
14,587
13,458
8.4%
Visits
581,326
514,008
13.1%
Total:
Admissions
54,224
50,975
6.4%
Same-store total admissions growth
6.2%
Recertifications
31,226
33,342
(6.3)%
Same-store total recertifications
growth
(6.5)%
Visits
1,179,068
1,205,865
(2.2)%
Visits per episode
14.0
14.6
(4.1)%
Cost per visit
$
89
$
91
(2.2)%
(1) Private duty represents long-term
comprehensive hourly nursing medical care.
Non-Medicare admissions grew 25.2%, driving total admissions
growth of 6.4% year over year. Revenue declined $3.6 million, or
1.7%, year over year primarily due to lower Medicare volume as a
result of lower recertifications. The net impact of the payor mix
shift year over year was a positive $1 million.
Adjusted EBITDA increased $1.4 million, or 3.3% year over year
primarily due to lower cost per visit. Cost per visit decreased
2.2% year over year primarily due to a reduction in contract labor
and favorable experience in workers’ compensation and group medical
claims.
Hospice
($ in millions)
Q2
'24 vs. '23
2024
2023
Net service revenue
$
50.4
$
48.5
3.9 %
Cost of service
24.9
24.1
3.3 %
Gross margin
50.6 %
50.3 %
General and administrative expenses
16.3
16.1
1.2 %
Net income attributable to noncontrolling
interests
0.1
—
NM
Adjusted EBITDA
$
9.1
$
8.3
9.6 %
% Adj. EBITDA margin
18.1 %
17.1 %
Operational metrics (actual
amounts)
Total admissions
2,888
2,837
1.8 %
Same-store total admissions growth
(0.2) %
Patient days
320,026
311,465
2.7 %
Discharged average length of
stay
108
108
— %
Average daily census
3,517
3,423
2.7 %
Revenue per patient day
$
157
$
156
0.6 %
Cost per patient day
$
78
$
77
1.3 %
References in the financial tables to
percentage changes that are not meaningful are denoted by “NM”.
Net service revenue increased $1.9 million, or 3.9%, year over
year due to increased Medicare reimbursement rates and an increase
in patient days. Average daily census increased 3.7% sequentially
and has increased sequentially every month since January 2024.
Adjusted EBITDA increased $0.8 million, or 9.6%, year over year
primarily due to increased revenue. Cost per day increased 1.3%
year over year primarily due to increased costs associated with
patient supplies, including durable medical equipment and
pharmacy.
GUIDANCE
The Company updated its full-year 2024 guidance as follows:
($ in millions, except per share data) 2024 Previous
Guidance 2024 Updated Guidance
Net service revenue
$1,076 to $1,102
$1,050 to $1,063
Adjusted EBITDA
$98 to $110
$100 to $106
Adjusted EPS
$0.12 to $0.43
$0.19 to $0.37
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. EDT
on August 7, 2024 to discuss its results for the second 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/154318091. 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
six months ended June 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
Condensed Consolidated
Statements of Income
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
($ in millions, except per
share data)
Net service revenue
$
260.6
$
262.3
$
523.0
$
527.4
Cost of service, excluding depreciation
and amortization
131.8
135.5
266.0
268.1
General and administrative expenses
110.0
107.8
217.5
218.3
Depreciation and amortization
7.6
7.7
15.4
15.5
Impairment of goodwill
—
85.8
—
85.8
Operating income (loss)
11.2
(74.5
)
24.1
(60.3
)
Interest expense and amortization of debt
discounts and fees
10.9
10.3
22.0
19.8
Other income
—
(0.1
)
—
(0.1
)
Income (loss) before income taxes and
noncontrolling interests
0.3
(84.7
)
2.1
(80.0
)
Income tax (benefit) expense
(0.1
)
(10.6
)
0.8
(9.1
)
Net income (loss)
0.4
(74.1
)
1.3
(70.9
)
Less: Net income attributable to
noncontrolling interests
0.6
0.3
1.3
0.8
Net loss attributable to Enhabit,
Inc.
$
(0.2
)
$
(74.4
)
$
—
$
(71.7
)
Weighted average common shares
outstanding:
Basic
50.1
49.8
50.1
49.8
Diluted
50.1
49.8
50.1
49.8
Loss per common share:
Basic loss per share attributable to
Enhabit, Inc. common stockholders
$
—
$
(1.49
)
$
—
$
(1.44
)
Diluted loss per share attributable to
Enhabit, Inc. common stockholders
$
—
$
(1.49
)
$
—
$
(1.44
)
Enhabit, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Unaudited)
June 30, 2024
December 31,
2023
($ in millions)
Assets
Current assets:
Cash and cash equivalents
$
28.5
$
27.4
Restricted cash
1.7
2.4
Accounts receivable, net of allowances
166.0
164.7
Prepaid expenses and other current
assets
10.6
15.6
Total current assets
206.8
210.1
Property and equipment, net
21.6
19.0
Operating lease right-of-use assets
55.0
57.5
Goodwill
1,061.7
1,061.7
Intangible assets, net
69.0
80.0
Other long-term assets
4.9
5.3
Total assets
$
1,419.0
$
1,433.6
Liabilities and stockholders’
equity
Current liabilities:
Current portion of long-term debt
$
23.0
$
22.5
Current operating lease liabilities
11.0
11.8
Accounts payable
8.5
7.6
Accrued payroll
37.0
38.5
Refunds due patients and other third-party
payors
10.4
8.2
Accrued medical insurance
9.8
8.4
Other current liabilities
40.4
40.7
Total current liabilities
140.1
137.7
Long-term debt, net of current portion
512.7
530.1
Long-term operating lease liabilities, net
of current portion
44.3
45.7
Deferred income tax liabilities
16.4
17.1
Other long-term liabilities
0.1
1.3
Total liabilities
713.6
731.9
Redeemable noncontrolling interests
5.0
5.0
Stockholders’ equity:
Total Enhabit, Inc. stockholders’
equity
674.3
669.7
Noncontrolling interests
26.1
27.0
Total stockholders’ equity
700.4
696.7
Total liabilities and stockholders’
equity
$
1,419.0
$
1,433.6
Enhabit, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Six Months Ended June
30,
2024
2023
($ in millions)
Cash flows from operating
activities:
Net income (loss)
$
1.3
$
(70.9
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities—
Depreciation and amortization
15.4
15.5
Amortization of debt related costs
0.7
0.5
Impairment of goodwill
—
85.8
Stock-based compensation
4.0
4.1
Deferred tax benefit
(1.1
)
(11.0
)
Other
(0.1
)
0.9
Changes in assets and liabilities, net of
acquisitions—
Accounts receivable, net of allowances
(1.3
)
1.9
Prepaid expenses and other assets
5.9
19.2
Accounts payable
0.1
1.5
Accrued payroll
(1.5
)
(2.6
)
Other liabilities
3.5
(5.7
)
Net cash provided by operating
activities
26.9
39.2
Cash flows from investing
activities:
Acquisition of businesses, net of cash
acquired
—
(2.8
)
Purchases of property and equipment,
including capitalized software costs
(2.5
)
(1.7
)
Other
0.8
0.5
Net cash used in investing
activities
(1.7
)
(4.0
)
Cash flows from financing
activities:
Principal payments on term loan
facility
(10.0
)
(10.0
)
Principal payments on revolving credit
facility
(10.0
)
(10.0
)
Distributions paid to noncontrolling
interests of consolidated affiliates
(2.2
)
(2.5
)
Other
(2.6
)
(3.4
)
Net cash used in financing
activities
(24.8
)
(25.9
)
Increase in cash, cash equivalents, and
restricted cash
0.4
9.3
Cash, cash equivalents, and restricted
cash at beginning of period
29.8
27.2
Cash, cash equivalents, and restricted
cash at end of period
$
30.2
$
36.5
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Diluted
Earnings Per Share to Adjusted Earnings Per Share
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Diluted earnings per share, as
reported
$
—
$
(1.49
)
$
—
$
(1.44
)
Adjustments, net of tax:
Impairment of goodwill
—
1.50
—
1.50
Unusual or nonrecurring items that are not
typical of ongoing operations(1)
0.07
0.03
0.13
0.07
Income tax adjustments(2)
—
—
0.01
0.01
Adjusted earnings per share
$
0.07
$
0.04
$
0.14
$
0.14
(1)
Unusual or nonrecurring items in the three
and six months ended June 30, 2024 include costs associated with
shareholder activism, the strategic review process and nonroutine
litigation; in the three and six months ended June 30, 2023, they
include nonroutine litigation and shareholder activism.
(2)
Income tax adjustments include the effect
of permanent book-tax differences attributable to stock-based
compensation.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Adjusted
EBITDA to Adjusted Earnings Per Share
Three Months Ended June
30,
2024
Adjustments
As Reported
Unusual or Nonrecurring Items
That are Not Typical of Ongoing Operations
As Adjusted
($ in millions, except per
share data)
Adjusted EBITDA(1)
$
25.2
$
—
$
25.2
Interest expense and amortization of debt
discounts and fees
(10.9
)
—
(10.9
)
Depreciation and amortization
(7.6
)
—
(7.6
)
Stock-based compensation
(2.2
)
—
(2.2
)
Unusual or nonrecurring items that are not
typical of ongoing operations(2)
(4.8
)
4.8
—
(Loss) income before income
taxes
(0.3
)
4.8
4.5
Income tax benefit (expense)
0.1
(1.3
)
(1.2
)
Net (loss) income attributable to
Enhabit, Inc.
$
(0.2
)
$
3.5
$
3.3
Diluted EPS
$
—
$
0.07
$
0.07
Diluted shares
50.1
50.1
(1)
Reconciliation to GAAP provided below.
(2)
Unusual or nonrecurring items in Q2 2024
include costs associated with shareholder activism, the strategic
review process and nonroutine litigation.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Adjusted
EBITDA to Adjusted Earnings Per Share
Three Months Ended June
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)
$
23.9
$
—
$
—
$
—
$
23.9
Interest expense and amortization of debt
discounts and fees
(10.3
)
—
—
—
(10.3
)
Depreciation and amortization
(7.7
)
—
—
—
(7.7
)
Gain on disposal of assets
0.1
—
—
—
0.1
Impairment of goodwill
(85.8
)
85.8
—
—
—
Stock-based compensation
(2.6
)
—
—
—
(2.6
)
Unusual or nonrecurring items that are not
typical of ongoing operations(2)
(2.6
)
—
2.6
—
—
(Loss) income before income
taxes
(85.0
)
85.8
2.6
—
3.4
Income tax benefit (expense)
10.6
(11.1
)
(1.0
)
0.1
(1.4
)
Net (loss) income attributable to
Enhabit, Inc.
$
(74.4
)
$
74.7
$
1.6
$
0.1
$
2.0
Diluted EPS
$
(1.49
)
$
1.50
$
0.03
$
—
$
0.04
Diluted shares
49.8
49.8
(1)
Reconciliation to GAAP provided below.
(2)
Unusual or nonrecurring items in Q2 2023
include costs associated with nonroutine litigation and shareholder
activism.
(3)
Income tax adjustments include the effect
of permanent book-tax differences attributable to stock-based
compensation.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Adjusted
EBITDA to Adjusted Earnings Per Share
Six Months Ended June
30,
2024
Adjustments
As Reported
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)
$
50.5
$
—
$
—
$
50.5
Interest expense and amortization of debt
discounts and fees
(22.0
)
—
—
(22.0
)
Depreciation and amortization
(15.4
)
—
—
(15.4
)
Gain on disposal of assets
0.2
—
—
0.2
Stock-based compensation
(4.0
)
—
—
(4.0
)
Unusual or nonrecurring items that are not
typical of ongoing operations(2)
(8.5
)
8.5
—
—
Income before income taxes
0.8
8.5
—
9.3
Income tax expense
(0.8
)
(2.2
)
0.6
(2.4
)
Net income attributable to Enhabit,
Inc.
$
—
$
6.3
$
0.6
$
6.9
Diluted EPS
$
—
$
0.13
$
0.01
$
0.14
Diluted shares
50.1
50.1
(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.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Adjusted
EBITDA to Adjusted Earnings Per Share
Six Months Ended June
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)
$
49.2
$
—
$
—
$
—
$
49.2
Interest expense and amortization of debt
discounts and fees
(19.8
)
—
—
—
(19.8
)
Depreciation and amortization
(15.5
)
—
—
—
(15.5
)
Gain on disposal of assets
0.1
—
—
—
0.1
Impairment of goodwill
(85.8
)
85.8
—
—
—
Stock-based compensation
(4.1
)
—
—
—
(4.1
)
Unusual or nonrecurring items that are not
typical of ongoing operations(2)
(4.9
)
—
4.9
—
—
(Loss) income before income
taxes
(80.8
)
85.8
4.9
—
9.9
Income tax benefit (expense)
9.1
(11.1
)
(1.6
)
0.5
(3.1
)
Net (loss) income attributable to
Enhabit, Inc.
$
(71.7
)
$
74.7
$
3.3
$
0.5
$
6.8
Diluted EPS
$
(1.44
)
$
1.50
$
0.07
$
0.01
$
0.14
Diluted shares
49.8
49.8
(1)
Reconciliation to GAAP provided below.
(2)
Unusual or nonrecurring items in 2023
include costs associated with nonroutine litigation and shareholder
activism.
(3)
Income tax adjustments include the effect
of permanent book-tax differences attributable to stock-based
compensation.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
($ in millions)
Net income (loss)
$
0.4
$
(74.1
)
$
1.3
$
(70.9
)
Interest expense and amortization of debt
discounts and fees
10.9
10.3
22.0
19.8
Income tax (benefit) expense
(0.1
)
(10.6
)
0.8
(9.1
)
Depreciation and amortization
7.6
7.7
15.4
15.5
Gain on disposal of assets
—
(0.1
)
(0.2
)
(0.1
)
Impairment of goodwill
—
85.8
—
85.8
Stock-based compensation
2.2
2.6
4.0
4.1
Net income attributable to noncontrolling
interests
(0.6
)
(0.3
)
(1.3
)
(0.8
)
Unusual or nonrecurring items that are not
typical of ongoing operations(1)
4.8
2.6
8.5
4.9
Adjusted EBITDA
$
25.2
$
23.9
$
50.5
$
49.2
(1)
Unusual or nonrecurring items in the three
and six months ended June 30, 2024 include costs associated with
shareholder activism, the strategic review process and nonroutine
litigation; in the three and six months ended June 30, 2023, they
include nonroutine litigation and shareholder activism.
Reconciliation of Net Cash
Provided by Operating Activities to Adjusted EBITDA
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
($ in millions)
Net cash provided by operating
activities
$
9.6
$
9.6
$
26.9
$
39.2
Interest expense, excluding amortization
of debt discounts and fees
10.6
10.1
21.3
19.3
Current portion of income tax expense
0.5
0.7
1.9
1.9
Change in assets and liabilities,
excluding derivative instrument
0.3
1.2
(6.9
)
(15.0
)
Net income attributable to noncontrolling
interests
(0.6
)
(0.3
)
(1.3
)
(0.8
)
Unusual or nonrecurring items that are not
typical of ongoing operations(1)
4.8
2.6
8.5
4.9
Other
—
—
0.1
(0.3
)
Adjusted EBITDA
$
25.2
$
23.9
$
50.5
$
49.2
(1)
Unusual or nonrecurring items in the three
and six months ended June 30, 2024 include costs associated with
shareholder activism, the strategic review process and nonroutine
litigation; in the three and six months ended June 30, 2023, they
include nonroutine litigation and shareholder activism.
Enhabit, Inc. and
Subsidiaries
Supplemental Non-GAAP
Information
(Unaudited)
Reconciliation of Net Cash
Provided by Operating Activities to Adjusted Free Cash Flow
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
($ in millions)
Net cash provided by operating
activities
$
9.6
$
9.6
$
26.9
$
39.2
Unusual or nonrecurring items that are not
typical of ongoing operations(1)
4.8
2.6
8.5
4.9
Capital expenditures for maintenance
(0.7
)
(1.1
)
(2.5
)
(1.7
)
Other working capital adjustments
(1.1
)
(0.5
)
(1.7
)
(1.0
)
Distributions paid to noncontrolling
interests of consolidated affiliates
(2.2
)
—
(2.2
)
(2.5
)
Adjusted free cash flow
$
10.4
$
10.6
$
29.0
$
38.9
(1)
Unusual or nonrecurring items in the three
and six months ended June 30, 2024 include costs associated with
shareholder activism, the strategic review process and nonroutine
litigation; in the three and six months ended June 30, 2023, they
include nonroutine litigation and shareholder activism.
Reconciliation of Gross Margin
to Adjusted EBITDA Margin
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Gross margin as a percentage of
revenue
49.4 %
48.3 %
49.1 %
49.2 %
General and administrative expenses
(42.2) %
(41.1) %
(41.6) %
(41.4) %
Stock-based compensation
0.9 %
1.0 %
0.8 %
0.8 %
Noncontrolling interests
(0.2) %
(0.1) %
(0.2) %
(0.2) %
Unusual or nonrecurring items that are not
typical of ongoing operations(1)
1.8 %
1.0 %
1.6 %
0.9 %
Adjusted EBITDA margin
9.7 %
9.1 %
9.7 %
9.3 %
(1)
Unusual or nonrecurring items in the three
and six months ended June 30, 2024 include costs associated with
shareholder activism, the strategic review process and nonroutine
litigation; in the three and six months ended June 30, 2023, they
include nonroutine litigation and shareholder activism.
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not
historical facts, such as those relating to future events,
projections, financial guidance, legislative or regulatory
developments, strategy or growth opportunities, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All such estimates, projections and
forward-looking information speak 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 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 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; 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/20240806273689/en/
Investor relations contact Crissy Carlisle
investorrelations@ehab.com 469-860-6061
Media contact Erin Volbeda media@ehab.com
972-338-5141
Enhabit (NYSE:EHAB)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Enhabit (NYSE:EHAB)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
