AdaptHealth Corp. (NASDAQ:AHCO) Q1 2021 Earnings Conference Call May 6, 2021 8:30 AM ET Company Participants Chris Joyce - General Counsel Steve Griggs - Co-Chief Executive Officer Josh Parnes - President Jason Clemens - Chief Financial Officer Conference Call Participants Brian Tanquilut - Jefferies Anton Hie - RBC Capital Markets Mathew Blackman - Stifel Pito Chickering - Deutsche Bank Richard Close - Canaccord Genuity Kevin Fischbeck - Bank of America Eric Coldwell - Baird Operator Greetings and welcome ...

Acquisition and Growth - The company serviced approximately 3.0 million patients annually across 46 states following the acquisition of AeroCare, up from 1.9 million patients prior to the acquisition[14]. - The total consideration for the AeroCare acquisition was approximately $1.1 billion in cash, along with the issuance of shares and options[16]. - AdaptHealth completed acquisitions involving 22 companies for an aggregate consideration of approximately $914 million in 2020, compared to 18 companies for approximately $67 million in 2019[47]. - Following the acquisition of AeroCare in February 2021, AdaptHealth now services over 3.0 million patients annually and performs approximately 29,000 deliveries daily through a network of over 500 locations across 46 states[49]. - AdaptHealth had approximately 4,700 employees as of December 31, 2020, which increased to around 8,700 employees post-AeroCare acquisition[50]. Market Opportunities - The home medical equipment (HME) industry is projected to grow at a 6.1% CAGR over the next nine years, with the company's total addressable market exceeding $25 billion[19]. - The population of adults aged 65 and older in the U.S. is expected to grow at a 2.5% CAGR through 2030, increasing the market opportunity for the company[19]. - The continuous glucose monitoring (CGM) market is expected to grow by 18% to $3.4 billion by 2022, positioning the company favorably in the diabetes segment[20]. - The insulin pump market is projected to grow by 12% to $2.2 billion by 2022, further expanding the company's market reach[20]. - Obstructive sleep apnea affects 20 million people in the U.S., with 15 million undiagnosed, indicating a significant market potential for the company's sleep therapy products[20]. - AdaptHealth's home medical supplies segment is estimated to represent a $10 billion market opportunity[22]. Financial Performance - Net revenue for the year ended December 31, 2020, was $1,056,389, compared to $529,644 for the year ended December 31, 2019, representing a 99.5% increase[329]. - Operating income for 2020 was $71,346, up from $29,378 in 2019, indicating a significant improvement in operational efficiency[329]. - The net loss attributable to AdaptHealth Corp. for 2020 was $(64,481), compared to a net loss of $(17,062) in 2019, reflecting increased costs associated with growth initiatives[329]. - The company reported total costs and expenses of $999,320 for 2020, up from $500,266 in 2019, primarily driven by increased cost of net revenue[329]. - The weighted average common shares outstanding for 2020 were 52,488, compared to 22,557 in 2019, indicating a dilution effect due to increased share issuance[329]. Revenue Composition - Approximately 28% of AdaptHealth's net revenue for the year ended December 31, 2020, came from fixed monthly payments for certain HME products[36]. - The remaining 72% of net revenue was generated from resupply and one-time sale products, including consumables[37]. - Revenue composition by payer type in 2020 included $657,033 thousand from insurance, $295,657 thousand from government, and $103,699 thousand from patient pay, showing substantial increases across all categories compared to 2019[376]. - The core service line revenue for Sleep increased to $312,860 thousand in 2020 from $224,542 thousand in 2019, while Diabetes revenue was $159,490 thousand, marking a new revenue stream[380]. - The total net revenue from fixed monthly equipment reimbursements was $297,092 thousand in 2020, compared to $213,193 thousand in 2019, reflecting a growth of approximately 39.3%[380]. Regulatory and Competitive Environment - The company faces risks related to competition, regulatory changes, and the integration of AeroCare's operations into its business[9]. - The HME market is highly competitive, with AdaptHealth competing against large national providers, regional providers, and over 6,000 local organizations[51]. - AdaptHealth's operations are subject to extensive government regulations, which could impact its financial condition and results of operations[60]. - Legislative changes, such as those related to the ACA, could potentially reduce AdaptHealth's revenues by affecting Medicaid and Medicare reimbursement rates[68]. - The competitive bidding process for Medicare contracts may adversely affect the company's financial condition and results of operations in the future[425]. Cash Flow and Assets - Cash flows from operating activities provided $195.634 million, while cash used in investing activities was $815.703 million, indicating significant investment activity[341]. - The company reported a significant increase in accounts payable and accrued expenses, which rose to $136.628 million[341]. - The company's cash and cash equivalents rose to $99.96 million in 2020 from $76.88 million in 2019, an increase of about 30%[326]. - Total assets increased to $1.81 billion as of December 31, 2020, compared to $546.54 million in 2019, reflecting a growth of approximately 230%[326]. - The company has a total carrying value of long-term debt arrangements amounting to $784,381 thousand, with a fair value of $826,731 thousand as of December 31, 2020[397]. Operational Efficiency - The integrated technology platform developed by AdaptHealth automates complex processes, improving operational efficiency and patient service[32]. - The company recorded unbilled revenue of $20.2 million as of December 31, 2020, up from $8.6 million in 2019, indicating improved billing efficiency[384]. - Salaries, labor, and benefits costs rose to $257,898,000 in 2020 from $153,173,000 in 2019, marking a 68% increase[417]. - The company incurred interest expense of $41,430 in 2020, slightly up from $39,304 in 2019, indicating stable financing costs despite increased debt levels[329]. - The company expects to adopt ASU 2016-02 regarding leases during the year ended December 31, 2021, which will have a material effect on its consolidated financial statements[439].

AdaptHealth Corp. (NASDAQ:AHCO) Q4 2020 Earnings Conference Call March 4, 2021 8:30 AM ET Company Participants Chris Joyce – General Counsel Luke McGee – Co-Chief Executive Officer Steve Griggs – Co-Chief Executive Officer Josh Parnes – President Jason Clemens – Chief Financial Officer Conference Call Participants Brian Tanquilut – Jefferies Pito Chickering – Deutsche Bank Whit Mayo – UBS Matthew Blackman – Stifel Anton Hie – RBC Capital Markets Eric Coldwell – Baird Richard Close – Canaccord Genuity Kevin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38399 AdaptHealth Corp. (Exact name of registrant as specified in its charter) Delaware 82-3677704 (State of Other Jurisdiction of incorporation or Or ...

Financial Data and Key Metrics Changes - AdaptHealth generated net revenue of $284 million, an increase of 108% from Q3 2019 [18] - Adjusted EBITDA was $53 million, an increase of 68% from Q3 2019 [18] - Adjusted EBITDA less patient equipment CapEx was $36 million, an increase of 92% from Q3 2019 [18] - Operating cash flow for the nine months ended September 30, 2020, was $145 million, including approximately $46 million of CMS advanced payments and $17 million in CARES Act Provider Relief Funds [21] Business Line Data and Key Metrics Changes - New sleep starts rebounded to above 90% of pre-COVID levels by the end of Q3, recovering from a 30% decline in Q2 [20] - The diabetes supply management business is expected to add $85 million to $90 million in revenue in 2021 due to recent acquisitions [10] - The company continues to see strong growth in diabetes and supplies products, with expectations for organic growth to return to high-single digits [20][23] Market Data and Key Metrics Changes - The company noted a positive regulatory update from CMS regarding the Medicare competitive bid program, which is expected to provide rate stability for the next three years [12][13] - The competitive bid program's delay or cancellation is viewed positively, as it may lead to more stable pricing in the market [36][38] Company Strategy and Development Direction - AdaptHealth aims to evolve from a provider of equipment and supplies to a more complete connected healthcare solutions provider [11] - The company has an active M&A pipeline and plans to continue selectively pursuing acquisitions that align with its strategic goals [11] - The focus remains on expanding relationships with payers and formulating value-based reimbursement models [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its guidance for 2020 and 2021, despite uncertainties related to COVID-19 [73] - The company anticipates organic growth will return to normalized levels by the first half of 2021, with diabetes expected to grow at a mid-teens rate [23][43] - Management highlighted the importance of maintaining operational stability and adapting to ongoing challenges presented by the pandemic [15] Other Important Information - The company is focusing on technology and business process improvements, including increasing e-Prescribing penetration [17][49] - Management emphasized the importance of patient engagement and data collection through technology to enhance service delivery [69] Q&A Session Summary Question: Can you help us bridge the new 2020 guide? - Management indicated that the core business is performing slightly above plan, with most of the guidance increase related to acquisition activity [28] Question: What was the organic growth number in the quarter? - Organic growth for Q3 was a little over 1%, which management found pleasing given the circumstances [30] Question: How did Solara perform relative to expectations? - Revenue from Solara was slightly weaker than modeled due to the impact of TRICARE rate cuts, but new start trends are ahead of budget [32] Question: How does competitive bidding impact purchasing power? - Management noted that the uncertainty around competitive bidding had delayed discussions with suppliers, but they expect to establish purchasing targets moving forward [61] Question: What are the biggest risks for achieving guidance? - The primary risk for 2021 is the ongoing impact of COVID-19, which remains unpredictable [73] Question: How will the M&A strategy be affected by the election? - Management believes that the M&A pipeline remains active and that the election results will not significantly impact existing negotiations [75]

AdaptHealth Corp. (NASDAQ:AHCO) Q2 2020 Earnings Conference Call August 4, 2020 8:30 AM ET Company Participants Chris Joyce - General Counsel Josh Parnes - President Luke McGee - Chief Executive Officer Gregg Holst - Retiring Chief Financial Officer Conference Call Participants Pito Chickering - Deutsche Bank Stephen Tanal - SVB Leerink Brian Tanquilut - Jeffries Mathew Blackman - Stifel Anton Hie - RBC Capital Markets Richard Close - Canaccord Genuity Operator Greetings, and welcome to AdaptHealth Corp. se ...