Financial Performance - Net revenue for Q2 2022 was $727.6 million, an increase of 17.9% compared to $617.0 million in Q2 2021[17] - Net income for Q2 2022 was $15.2 million, a decrease of 81.0% compared to $80.1 million in Q2 2021[17] - Operating income for Q2 2022 was $59.2 million, a decrease of 9.5% compared to $65.4 million in Q2 2021[17] - Basic net income per share for Q2 2022 was $0.10, a decrease of 82.1% compared to $0.56 in Q2 2021[17] - Comprehensive income for Q2 2022 was $16.8 million, a decrease of 79.1% compared to $80.7 million in Q2 2021[20] - Net income for Q1 2022 was $41.75 million, contributing to a total equity increase of $42.23 million[23] - Net income for Q2 2022 was $14.032 million, contributing to a total equity increase of $15.247 million[23] - Net income for the six months ended June 30, 2022 was $57.477 million, compared to $76.416 million in the same period in 2021[27] - Net revenue for the six months ended June 30, 2022 was $1,438.8 million, compared to $1,417.6 million in the same period in 2021[86] - Operating income for the six months ended June 30, 2022 was $110.7 million, compared to $114.4 million in the same period in 2021[86] - Basic net income per share was $0.10 for the three months ended June 30, 2022, and $0.38 for the six months ended June 30, 2022[160] - Diluted net income per share was $0.09 for the three months ended June 30, 2022, and $0.24 for the six months ended June 30, 2022[160] Balance Sheet and Assets - Total assets as of June 30, 2022 were $5.20 billion, a slight decrease from $5.25 billion as of December 31, 2021[15] - Cash and cash equivalents decreased to $118.8 million as of June 30, 2022 from $149.6 million as of December 31, 2021[15] - Long-term debt, less current portion, was $2.17 billion as of June 30, 2022, a slight decrease from $2.18 billion as of December 31, 2021[15] - Inventory decreased to $102.7 million as of June 30, 2022 from $123.1 million as of December 31, 2021[15] - Total stockholders' equity attributable to AdaptHealth Corp. increased to $2.13 billion as of June 30, 2022 from $2.06 billion as of December 31, 2021[16] - Total equity as of June 30, 2022, stood at $2.137693 billion, up from $2.066689 billion at the end of 2021[23] - Total equity as of June 30, 2021, stood at $1.894043 billion, up from $280.845 million at the end of 2020[26] - Goodwill balance increased to $3,515.6 million as of June 30, 2022, up from $3,512.6 million at December 31, 2021[91] - Identifiable intangible assets, net of accumulated amortization, were $182.8 million as of June 30, 2022, down from $202.2 million at December 31, 2021[94][95] - Total assets measured at fair value increased from $14,000 in December 2021 to $2,664,000 in June 2022, driven by interest rate swap agreements[103] - Total ROU assets decreased from $165.17 million in December 2021 to $140.03 million in June 2022[170] Cash Flow and Financing - Net cash provided by operating activities increased to $169.924 million in 2022 from $147.624 million in 2021[27] - Net cash used in investing activities was $170.031 million in 2022, significantly lower than $1.372 billion in 2021, primarily due to reduced business acquisition payments[27] - Net cash used in financing activities was $30.711 million in 2022, compared to net cash provided by financing activities of $1.303 billion in 2021[27] - Cash and cash equivalents decreased to $118.809 million at the end of June 2022 from $178.189 million at the end of June 2021[27] - The company repurchased shares worth $3.375 million under its share repurchase program in Q2 2022[23] - The company repaid $71.8 million of the New Promissory Note in June 2021, incurring a $8.5 million prepayment penalty[132] - The company repaid the remaining $71.7 million of the New Promissory Note in August 2021[132] - The company issued $600 million in 5.125% senior unsecured notes due 2030 on August 19, 2021[128] - The company issued $500 million in 4.625% senior unsecured notes due 2029 on January 4, 2021[129] - The company issued $350 million in 6.125% senior unsecured notes due 2028 on July 29, 2020[130] - Secured term loans outstanding decreased from $785 million in December 2021 to $775 million in June 2022[123] - Senior unsecured notes remained unchanged at $1,450 million between December 2021 and June 2022[123] - The 2021 Term Loan has an interest rate of 3.06% as of June 30, 2022[126] - The company had $0 outstanding under the 2021 Revolver as of June 30, 2022, with $432.6 million available for borrowing after considering stand-by letters of credit[127] Revenue Breakdown - Net revenue for the three months ended June 30, 2022 was $727.6 million, with $436.2 million from insurance, $196.3 million from government, and $95.1 million from patient pay[62] - Net revenue for the six months ended June 30, 2022 was $1.43 billion, with $857.1 million from insurance, $378.0 million from government, and $198.8 million from patient pay[62] - Net sales revenue for the three months ended June 30, 2022, was $492.654 million, a 23% increase from $400.597 million in the same period in 2021[65] - Total net revenue for the six months ended June 30, 2022, reached $1.433 billion, up 30.5% from $1.099 billion in the same period in 2021[65] - Sleep segment revenue for the three months ended June 30, 2022, was $260.354 million, a 13.4% increase from $229.666 million in the same period in 2021[65] - Diabetes segment revenue for the three months ended June 30, 2022, was $166.293 million, a 31.4% increase from $126.530 million in the same period in 2021[65] - Respiratory segment revenue for the three months ended June 30, 2022, was $136.756 million, a 9.7% increase from $124.682 million in the same period in 2021[65] - The company recouped $3.9 million and $9.1 million of CMS advance payments during the three and six months ended June 30, 2022, respectively[65] Acquisitions and Goodwill - The company completed acquisitions totaling $16.799 million in cash and deferred payments during the six months ended June 30, 2022[72] - Goodwill generated from acquisitions during the six months ended June 30, 2022, was $4.591 million[74] - The company acquired AeroCare Holdings, Inc. for $1.148 billion in cash and equity on February 1, 2021[75] - Net assets acquired totaled $2,562.8 million, with AeroCare contributing $2,369.0 million of the total[80] - The company received net cash of $0.9 million relating to working capital and other adjustments associated with businesses acquired during 2021, which was recorded as a decrease to goodwill[93] Leases and Operating Costs - The company leases office facilities and equipment with lease agreements expiring through March 2033, including renewal options[166] - The company has finance lease obligations for patient medical equipment and supplies, with monthly payments at various interest rates[169] - Operating lease costs for the six months ended June 30, 2022, were $19.30 million, compared to $17.64 million in the same period in 2021[171] - Finance lease costs for the six months ended June 30, 2022, were $6.63 million, compared to $19.06 million in the same period in 2021[171] - Variable lease costs increased from $6.28 million in the six months ended June 30, 2021, to $8.95 million in the same period in 2022[171] - Weighted average remaining lease term for operating leases decreased slightly from 6.7 years in December 2021 to 6.6 years in June 2022[173] - Total future undiscounted lease payments for operating leases as of June 30, 2022, amounted to $160.41 million[174] - Cash paid for operating lease liabilities in the six months ended June 30, 2022, was $19.22 million, compared to $17.51 million in the same period in 2021[175] Equity and Compensation - Equity-based compensation in Q1 2022 amounted to $5.502 million, increasing total equity by the same amount[23] - Equity-based compensation in Q2 2022 amounted to $5.72 million, increasing total equity by the same amount[23] - The company recorded equity-based compensation expense of $11.2 million for the six months ended June 30, 2022, with $7.5 million in general and administrative expenses and $3.7 million in cost of net revenue[156] - Unrecognized compensation expense related to equity-based awards was $45.4 million as of June 30, 2022, expected to be recognized over a weighted-average period of 2.3 years[157] - The company granted 127,322 shares of restricted stock to employees with a grant-date fair value of $2.4 million, vesting over 3-4 years[152] - 81,347 shares of restricted stock were granted to non-employee directors with a grant-date fair value of $1.5 million, vesting after one year[152] - 317,554 shares of restricted stock units were granted to senior executives with a grant-date fair value of $5.7 million, vesting over three years[153] - 317,554 performance-vested restricted stock units (Performance RSUs) were granted to senior executives with a grant-date fair value of $8.7 million, vesting based on relative TSR performance[153] Legal and Regulatory Matters - The company is defending against a consolidated class action lawsuit alleging violations of federal securities laws, with a motion for class certification due to be filed by January 20, 2023[188] - The company is defending against a shareholder derivative complaint alleging breaches of fiduciary duties and other claims, with the action stayed pending resolution of the consolidated class action[189][190] - The company is cooperating with a civil investigative demand issued by the U.S. Attorney's Office for the Southern District of New York regarding potential False Claims Act violations by a subsidiary[191] COVID-19 Impact - The company received $45.8 million in recoupable advance payments from CMS under the CARES Act in April 2020, with $3.7 million remaining to be recouped as of June 30, 2022[203][204] - The company received $17.2 million in CARES Act Provider Relief Fund (PRF) payments in April 2020 and assumed $7.7 million in PRF liabilities from acquired companies[206] - The company deferred $8.6 million in employer-paid FICA taxes under the CARES Act, with $4.3 million paid on January 4, 2022, and the remaining $4.3 million expected to be paid after December 31, 2022[208] - AdaptHealth experienced declines in net revenue in services related to elective medical procedures, such as new CPAP services and orthopedic supplies[209] - Increased net revenue from higher demand for respiratory products like oxygen and resupply businesses due to stay-at-home orders[209] - One-time sales of respiratory equipment, including ventilators and oxygen concentrators, to hospitals and local health agencies[209] - Medicare sequestration suspension resulted in a 2% increase in Medicare payments through March 31, 2022, and a 1% increase from April 1, 2022, to June 30, 2022[209] - Medicare sequestration resumed after July 1, 2022, leading to a 2% reduction in Medicare Fee-for-Service claims[209] Other Financial Metrics - The change in fair value of interest rate swaps in Q1 2022 resulted in a $5.998 million increase in accumulated other comprehensive income[23] - The change in fair value of interest rate swaps in Q2 2022 resulted in a $1.593 million increase in accumulated other comprehensive income[23] - The company recorded depreciation expense of $136.5 million for the six months ended June 30, 2022, compared to $86.8 million in the same period in 2021[89] - Amortization expense related to identifiable intangible assets was $20.0 million for the six months ended June 30, 2022, compared to $24.2 million in the same period in 2021[95] - Future amortization expense related to identifiable intangible assets is estimated to be $182.8 million over the next several years[98] - The company recorded no impairment charges related to identifiable intangible assets during the six months ended June 30, 2022 and 2021[98] - Contingent consideration liabilities increased from $20.3 million at the beginning of 2022 to $17.3 million by June 30, 2022, with short-term liabilities at $16.3 million and long-term at $1.0 million[106][108] - Warrant liability decreased from $57.8 million in December 2021 to $38.8 million in June 2022, reflecting changes in fair value[103] - Interest rate swap agreements had a notional amount of $250 million as of June 30, 2022, with maturity dates in February 2023 and March 2024[116] - The company recognized a gain of $9.0 million in other comprehensive income during the six months ended June 30, 2022, due to cash flow hedge accounting[119] - The fair value of derivatives related to interest rate swap agreements was $1.6 million in assets and $7.5 million in liabilities as of June 30, 2022[118] - The company uses Level 3 inputs for credit valuation adjustments in derivative contracts, though the impact on overall valuation is not significant[105][106] - Accounts payable decreased from $248.0 million in December 2021 to $198.4 million in June 2022, contributing to a total reduction in accounts payable and accrued expenses from $358.4 million to $315.0 million[121] - The company entered into forward-dated interest rate swap agreements in April 2022, effective in February 2023 and March 2024, maturing in January 2026[116] - Income tax expense for the six months ended June 30, 2022, was $14.5 million, compared to $10.6 million in the same period in 2021[176] - The company recognized an expense of $4.5 million related to changes in the estimated liability for the Tax Receivable Agreement during the six months ended June 30, 2022[178] - The company had a liability of $304.8 million related to the Tax Receivable Agreement as of June 30, 2022[179] Operational Metrics - The company serviced approximately 3.9 million patients annually as of June 30, 2022, through its network of 759 locations in 47 states[200] - Unbilled accounts receivable as of June 30, 2022, was $22.4 million, down from $23.8 million as of December 31, 2021[69] - The company incurred $1.7 million and $1.2 million in expenses related to a vendor for the three months ended June 30, 2022, and 2021, respectively, and $3.1 million and $2.2 million for the six months ended June 30, 2022, and 2021, respectively[192] - The company had $7.7 million in outstanding accounts payable to a vendor as of June 30, 2022, with purchases from this vendor totaling $15.6 million and $29.6 million for the three and six months ended June 30, 2022, respectively[195] - The company had $1.7 million in outstanding accounts payable to a service provider as of June 30, 2022, with purchases totaling $5.7 million and $10.5 million for the three and six months ended June 30, 2022, respectively[196]

Financial Data and Key Metrics Changes - AdaptHealth reported net revenue of $706.2 million for Q1 2022, representing a year-over-year growth of 46.5%, including a full quarter's contribution from the AeroCare acquisition [21][22] - Organic growth for the quarter was 3.7%, improving about 1 percentage point from Q4 2021 [21][22] - Adjusted EBITDA margins are expected to rebound in future quarters, with full-year guidance implying a 21.9% margin at the midpoint [23] Business Line Data and Key Metrics Changes - The diabetes business showed strong growth, benefiting from better-than-expected patient volumes, while home medical equipment (HME) and sleep categories also performed well despite supply chain challenges [21][22] - The company saw a significant increase in digital ordering, with over 55% of diabetes and 38% of CPAP resupply orders generated through proprietary digital portals [14][15] Market Data and Key Metrics Changes - AdaptHealth services approximately 3.9 million patients annually, many of whom are polychronic, driving high healthcare costs [18][19] - The company is positioned to capitalize on the demographic growth of the U.S. population living longer and more actively, which is favorable for healthcare providers [10] Company Strategy and Development Direction - AdaptHealth is focusing on expanding its presence in outpatient and at-home services, leveraging its broad home medical equipment offerings [11][16] - The company aims to establish partnerships and innovative programs to lower healthcare costs for chronic disease patients in their homes [19][20] - M&A activities remain a growth opportunity, with a selective approach to capital deployment [13][69] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the inflationary environment, including workforce wage pressure and increased operating costs, but expressed confidence in managing these challenges through technology improvements [8][9] - The backlog of patients waiting for CPAP setups is expected to grow until supply pressures are alleviated, with management focusing on reducing turnaround times for equipment delivery [28][29] Other Important Information - The Board of Directors authorized a share buyback program of up to $200 million, reflecting confidence in the company's outlook [29] - Cash flow from operations was $66.4 million, up from $18.4 million a year ago, with total capital expenditures at $77.2 million [25] Q&A Session Summary Question: Backlog build and market share shifting due to Respironics - Management noted that the backlog continues to grow due to supply constraints, and efforts are being made to minimize their portion of the backlog to be well-positioned when supply normalizes [32][34] Question: Acquisition strategy and market valuations - Management indicated a more selective approach to acquisitions, focusing on integrating previous acquisitions and assessing market valuations amid inflation and supply chain issues [35][36][37] Question: Monetizing care management and value-based contracts - The company is leveraging existing relationships with patients to drive better outcomes and aims to enter more value-based contracts without significant additional costs [39][41] Question: Impact of fuel prices and CapEx - Management confirmed that while fuel prices have increased, they are comfortable with their guidance and expect some relief later in the year [44][58] Question: Diabetes revenue projections - Management indicated that diabetes revenue is expected to be in the ballpark of $740 million for the year, based on first-quarter performance [59][60] Question: Sustainability of resupply revenue levels - Management expressed confidence that the strong resupply revenue levels are sustainable due to improvements in their resupply program [63][65] Question: Capital allocation strategy - Management emphasized a balanced approach to capital allocation, focusing on acquisitions, technology investments, and share repurchase programs [66][68]

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Interim Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Interim%20Consolidated%20Financial%20Statements) This section presents AdaptHealth Corp.'s unaudited consolidated financial statements for Q1 2022, including balance sheets, income statements, and cash flows, with explanatory notes [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) Unaudited statements show a significant turnaround in Q1 2022 profitability, with net revenue growth leading to a net income of **$42.2 million** versus a net loss in Q1 2021 Financial Metric | Financial Metric | March 31, 2022 | March 31, 2021 | | :--- | :--- | :--- | | **Net Revenue** | $706.2 Million | $482.1 Million | | **Operating Income** | $51.6 Million | $15.4 Million | | **Net Income (Loss)** | $42.2 Million | $(3.6) Million | | **Diluted EPS** | $0.08 | $(0.08) | Balance Sheet Item | Balance Sheet Item | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | $5,204.3 Million | $5,250.5 Million | | **Total Liabilities** | $3,083.7 Million | $3,183.8 Million | | **Total Stockholders' Equity** | $2,120.6 Million | $2,066.7 Million | Cash Flow Item (Q1) | Cash Flow Item (Q1) | 2022 | 2021 | | :--- | :--- | :--- | | **Net Cash from Operations** | $66.5 Million | $18.4 Million | | **Net Cash from Investing** | $(80.1) Million | $(1,213.8) Million | | **Net Cash from Financing** | $(16.6) Million | $1,227.6 Million | [Notes to Interim Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue breakdowns, acquisitions, goodwill valuation, debt structure, and a subsequent **$200 million** share repurchase program - The company's business focuses on providing home medical equipment (HME) and related services for conditions like sleep apnea, diabetes, and other chronic illnesses, serving patients covered by Medicare, Medicaid, and commercial insurance[29](index=29&type=chunk) Net Revenue by Payor (Q1 2022) | Net Revenue by Payor (Q1 2022) | Amount (in thousands) | | :--- | :--- | | Insurance | $420,890 | | Government | $181,650 | | Patient pay | $103,663 | | **Total Net Revenue** | **$706,203** | Net Revenue by Service Line (Q1 2022) | Net Revenue by Service Line (Q1 2022) | Amount (in thousands) | | :--- | :--- | | Sleep | $250,273 | | Diabetes | $155,305 | | Respiratory | $140,725 | | HME | $56,576 | | Other | $103,324 | | **Total Net Revenue** | **$706,203** | - In Q1 2022, the company completed minor acquisitions for **$2.8 million**, contrasting with Q1 2021 which included the major acquisition of AeroCare for a total consideration of **$2.4 billion**[69](index=69&type=chunk)[70](index=70&type=chunk)[75](index=75&type=chunk) - A decline in the company's stock price and market capitalization triggered a goodwill impairment assessment as of March 31, 2022, but no impairment charge was recorded as fair value exceeded carrying value[85](index=85&type=chunk) - Subsequent to quarter-end, on May 9, 2022, the Board of Directors authorized a share repurchase program for up to **$200 million** of the company's Common Stock through December 31, 2022[191](index=191&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=66&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial performance, highlighting a **46.5%** increase in net revenue to **$706.2 million** driven by acquisitions, and an increase in Adjusted EBITDA to **$137.6 million** [Results of Operations](index=74&type=section&id=MD%26A_Results_of_Operations) This section details Q1 2022 operating results, showing net revenue increased by **$224.1 million (46.5%)** due to acquisitions, and operating income surged **234.6%** to **$51.6 million** - Net revenue growth was primarily driven by acquisitions completed after December 31, 2020, which contributed **$212.6 million** to revenue, including the significant AeroCare acquisition[223](index=223&type=chunk) - Revenue in Q1 2022 was negatively impacted by the Philips Respironics recall of certain CPAP, BiPAP, and ventilator devices, which created supply chain shortages and limited the company's ability to meet patient demand[223](index=223&type=chunk) - General and administrative expenses decreased by **26.8%** to **$41.4 million**, mainly due to lower transaction costs (**$2.8 million** in Q1 2022 vs **$31.4 million** in Q1 2021)[228](index=228&type=chunk)[230](index=230&type=chunk) Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net income (loss) attributable to AdaptHealth Corp.** | $41,750 | $(3,966) | | Income attributable to noncontrolling interest | $480 | $324 | | Interest expense, net | $24,776 | $22,185 | | Income tax expense (benefit) | $5,603 | $(1,695) | | Depreciation and amortization | $77,030 | $47,206 | | **EBITDA** | **$149,639** | **$64,054** | | Adjustments (Transaction costs, Equity-based comp, etc.) | $(11,995) | $40,121 | | **Adjusted EBITDA** | **$137,644** | **$104,175** | [Liquidity and Capital Resources](index=82&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company's liquidity sources are cash from operations and debt financing, with **$119.4 million** in cash and **$171.4 million** in working capital as of March 31, 2022, and total debt including a **$780.0 million** term loan and **$1.45 billion** in senior unsecured notes - As of March 31, 2022, the company had **$119.4 million** in cash and cash equivalents and believes its operating cash flows and available credit are sufficient to fund operations for at least the next twelve months[247](index=247&type=chunk)[246](index=246&type=chunk) - Total debt as of March 31, 2022, included **$780.0 million** outstanding under the 2021 Term Loan and **$1.45 billion** in aggregate principal from three series of senior unsecured notes[252](index=252&type=chunk)[254](index=254&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) - Net cash provided by operating activities increased to **$66.5 million** in Q1 2022 from **$18.4 million** in Q1 2021, primarily due to a **$45.9 million** improvement in net income and changes in working capital[260](index=260&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=93&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate fluctuations on its variable-rate debt, with **$780.0 million** outstanding under the 2021 Term Loan as of March 31, 2022 - The company's main market risk is from interest rate changes on its variable-rate debt, which is tied to the Adjusted LIBOR Rate, with **$780.0 million** outstanding under the 2021 Term Loan subject to this risk as of March 31, 2022[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=93&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2022, due to previously disclosed material weaknesses in internal control over financial reporting, for which remediation plans are underway - Management concluded that disclosure controls and procedures were not effective as of March 31, 2022, due to ongoing material weaknesses in internal control over financial reporting[282](index=282&type=chunk) - The identified material weaknesses relate to an insufficient complement of resources leading to an ineffective risk assessment, deficiencies in the review of non-routine transactions, and issues in the accounts payable process[283](index=283&type=chunk)[284](index=284&type=chunk)[287](index=287&type=chunk) - Remediation efforts are underway, including establishing an executive steering committee, hiring additional professionals, process mapping, and implementing a new enterprise resource planning (ERP) system which went live in Q1 2022[288](index=288&type=chunk) [PART II - OTHER INFORMATION](index=96&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings and Risk Factors](index=96&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) This section refers to other parts of the report and previous filings for details on legal proceedings, including government investigations and shareholder lawsuits, and a comprehensive discussion of risk factors - For details on legal proceedings, the report refers to the 'Commitments and Contingencies' section (Note 14), which discusses ongoing government investigations and shareholder lawsuits[290](index=290&type=chunk)[174](index=174&type=chunk) - The company directs investors to its Annual Report on Form 10-K for the year ended December 31, 2021, for a comprehensive discussion of risk factors[291](index=291&type=chunk) [Other Information (Items 2-6)](index=96&type=section&id=Other%20Information%20%28Items%202-6%29) This section covers standard SEC filing requirements, reporting no unregistered sales of equity securities, no defaults upon senior securities, and no other material information to disclose for the period, and includes the exhibit index - The company reported no unregistered sales of equity securities, defaults on senior securities, or other material information during the quarter[292](index=292&type=chunk)[293](index=293&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 Organizatio ...

Financial Data and Key Metrics Changes - AdaptHealth reported net revenue of $702 million for Q4 2021, representing a year-over-year growth of 102% [17] - Adjusted EBITDA for the quarter was $158 million, with an adjusted EBITDA margin of 22.5% [18] - For the full year, cash flow from operations was $276 million, and free cash flow was $72 million [20] Business Line Data and Key Metrics Changes - Organic growth for Q4 was 2.7%, with non-acquired growth at 2.4% [17] - The demand for PAP devices was robust, but the company faced challenges in fulfilling patient needs due to supply shortages [11] - The acquisition of Community Surgical Supply is expected to add approximately $100 million in annual revenue [13] Market Data and Key Metrics Changes - The company serves approximately 3.8 million patients annually, with over 32,000 daily deliveries [8] - The Philips PAP device recall significantly impacted supply, with only about 70% of patients receiving needed machines [24] Company Strategy and Development Direction - AdaptHealth aims to enhance its value proposition through acquisitions and technology integration, including the implementation of an enterprise-wide Oracle ERP system [13][15] - The company is focused on capturing market share as supply chain issues improve, particularly in the sleep sector [11][16] - The acquisition strategy remains active, with a focus on smaller, strategic deals while digesting previous acquisitions [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover from supply chain disruptions and capture backlog once PAP supply normalizes [24] - The company anticipates organic growth of approximately 4% for 2022, factoring in the impact of the Philips recall [22] - Management highlighted the importance of maintaining operational efficiency amid rising costs and supply chain challenges [12][50] Other Important Information - The company raised $600 million in fixed-rate debentures to fund acquisitions and simplify its capital structure [10] - The integration of AeroCare and other acquisitions has been successful, enhancing operational capabilities and technology solutions [9] Q&A Session Summary Question: Can you clarify the 2022 EBITDA guidance and the impact of CPAP supply issues? - Management explained that the guidance was adjusted down by $25 million, primarily due to a $45 million negative impact from CPAP supply challenges [26][29] Question: How are you managing pricing increases from vendors? - Management acknowledged that vendors are pushing through price increases, but the DMEPOS fee schedule increase has been accounted for in guidance [32][35] Question: What is the expected cadence for revenue growth throughout 2022? - Management indicated that revenue may be slightly back-weighted due to ongoing supply chain issues, with Q1 expected to be lower than normal [63] Question: Can you provide insights on the Community Surgical acquisition? - The acquisition is expected to enhance AdaptHealth's respiratory and clinical capabilities, with significant cross-pollination opportunities [78] Question: How is the company addressing labor cost pressures? - Management noted that while labor costs are increasing, operational efficiencies from technology investments are helping to mitigate these pressures [52][81]

AdaptHealth Corp. (NASDAQ:AHCO) Q3 2021 Earnings Conference Call November 4, 2021 8:30 AM ET Company Participants Chris Joyce - General Counsel Steve Griggs - Chief Executive Officer Josh Parnes - President Jason Clemens - Chief Financial Officer Conference Call Participants Brian Tanquilut - Jefferies Pito Chickering - Deutsche Bank Courtney Ashi - Bank of America Mathew Blackman - Stifel Whit Mayo - SVB Leerink Andrea Alfonso - UBS Richard Close - Canaccord Genuity Operator Good day, ladies and gentlemen, ...

AdaptHealth Corp. (NASDAQ:AHCO) Q2 2021 Earnings Conference Call August 5, 2021 8:30 AM ET Company Participants Christopher Joyce - General Counsel Steve Griggs - Chief Executive Officer Joshua Parnes - President Jason Clemens - Chief Financial Officer Conference Call Participants Brian Tanquilut - Jefferies Pito Chickering - Deutsche Bank Mathew Blackman - Stifel Courtney Fondufe - Bank of America Eric Coldwell - Baird Richard Close - Canaccord Genuity Operator Greetings. Welcome to the conference AdaptHea ...