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Enhabit(EHAB) - 2024 Q3 - Quarterly Results
EHABEnhabit(EHAB)2024-11-06 21:25

Financial Performance - Net service revenue for Q3 2024 was 253.6million,adecreaseof1.8253.6 million, a decrease of 1.8% from 258.3 million in Q3 2023[4] - Adjusted EBITDA increased to 24.5million,reflectinga5.624.5 million, reflecting a 5.6% improvement year over year from 23.2 million[5] - Adjusted EPS remained flat at 0.03comparedtoQ32023[5]−ThecompanyreportedanetlossattributabletoEnhabit,Inc.of0.03 compared to Q3 2023[5] - The company reported a net loss attributable to Enhabit, Inc. of 110.2 million, a significant increase from a loss of 2.4millioninQ32023[5]−Thecompanyreportedanetlossof2.4 million in Q3 2023[5] - The company reported a net loss of 109.5 million for the three months ended September 30, 2024, compared to a net loss of 2.2millionforthesameperiodin2023[18]−Theimpairmentofgoodwillwas2.2 million for the same period in 2023[18] - The impairment of goodwill was 107.9 million for the three months ended September 30, 2024, compared to 0forthesameperiodin2023[18]−NetlossattributabletoEnhabit,Inc.forQ32024was0 for the same period in 2023[18] - Net loss attributable to Enhabit, Inc. for Q3 2024 was 110.2 million, with a diluted EPS of (2.20),comparedtoanetlossof(2.20), compared to a net loss of 2.4 million and diluted EPS of (0.05)inQ32023[24]−Thecompanyrecordedanimpairmentofgoodwillamountingto(0.05) in Q3 2023[24] - The company recorded an impairment of goodwill amounting to 107.9 million in Q3 2024, which significantly impacted the overall financial results[23] - Net loss for the three months ended September 30, 2024, was 109.5million,comparedtoalossof109.5 million, compared to a loss of 2.2 million for the same period in 2023[27] Revenue Breakdown - Medicare net service revenue decreased by 16.8% to 117.3million,whilenon−Medicarerevenueincreasedby20.9117.3 million, while non-Medicare revenue increased by 20.9% to 81.5 million[7] - Hospice net service revenue grew by 11.0% to 52.6million,drivenbyincreasedpatientdaysandMedicarereimbursementrates[10]−Non−Medicareadmissionsroseby20.152.6 million, driven by increased patient days and Medicare reimbursement rates[10] - Non-Medicare admissions rose by 20.1%, contributing to total admissions growth of 5.6% year over year[3] - Net service revenue for the three months ended September 30, 2024, was 253.6 million, a decrease of 1.1% from 258.3millionforthesameperiodin2023[18]CashFlowandDebtManagement−Thecompanyreducedbankdebtby258.3 million for the same period in 2023[18] Cash Flow and Debt Management - The company reduced bank debt by 10 million during the quarter[3] - The company reported net cash provided by operating activities of 55.3millionfortheninemonthsendedSeptember30,2024,comparedto55.3 million for the nine months ended September 30, 2024, compared to 45.5 million for the same period in 2023[20] - Net cash provided by operating activities for the three months ended September 30, 2024, was 28.4million,significantlyhigherthan28.4 million, significantly higher than 6.3 million in the same period of 2023[30] - Adjusted free cash flow for the three months ended September 30, 2024, was 30.3million,comparedto30.3 million, compared to 8.6 million for the same period in 2023[30] Assets and Liabilities - Total assets decreased to 1,304.3millionasofSeptember30,2024,from1,304.3 million as of September 30, 2024, from 1,433.6 million as of December 31, 2023[19] - Total liabilities decreased to 706.4millionasofSeptember30,2024,from706.4 million as of September 30, 2024, from 731.9 million as of December 31, 2023[19] - Cash and cash equivalents increased to 45.7millionasofSeptember30,2024,from45.7 million as of September 30, 2024, from 27.4 million as of December 31, 2023[19] Operational Metrics - Average daily census in the hospice segment increased by 6.9% year over year, with sequential growth every month since January 2024[11] - Same-store comparisons are used to explain changes in performance metrics, calculated based on home health and hospice locations open throughout both the current and prior periods[17] - Adjusted EBITDA for the three months ended September 30, 2024, was 24.5million,upfrom24.5 million, up from 23.2 million in the prior year[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was 75.0million,consistentwiththesameperiodin2023[25]UnusualItemsandAdjustments−UnusualornonrecurringitemsinQ32024includedcostsassociatedwithshareholderactivismandrestructuringactivities,totaling75.0 million, consistent with the same period in 2023[25] Unusual Items and Adjustments - Unusual or nonrecurring items in Q3 2024 included costs associated with shareholder activism and restructuring activities, totaling 3.6 million[23] - The company incurred impairment of goodwill amounting to 107.9millionforthethreemonthsendedSeptember30,2024[27]−ThetotalinterestexpenseandamortizationofdebtdiscountsandfeesfortheninemonthsendedSeptember30,2024,was107.9 million for the three months ended September 30, 2024[27] - The total interest expense and amortization of debt discounts and fees for the nine months ended September 30, 2024, was 32.8 million, compared to 30.7millioninthesameperiodof2023[26]FutureOutlook−Thecompanyanticipatescontinuedfocusonstrategicgrowthopportunitiesandmanagingcostseffectivelyintheupcomingquarters[33]−Thecompanyreviseditsfull−year2024guidancefornetservicerevenuetoarangeof30.7 million in the same period of 2023[26] Future Outlook - The company anticipates continued focus on strategic growth opportunities and managing costs effectively in the upcoming quarters[33] - The company revised its full-year 2024 guidance for net service revenue to a range of 1,031 million to 1,046million[12]−ThecompanyisunabletoreconcileguidanceforAdjustedEBITDAandAdjustedEPStoGAAPmeasuresduetotheinherentdifficultyinpredictingfutureimpactsofcertainitems[16]ShareholderImpact−Dilutedsharesoutstandingincreasedfrom50.1millioninQ32023to50.8millioninQ32024,indicatingaslightdilution[24]−Thecompanyexperiencedasignificantincreaseinstock−basedcompensation,whichamountedto1,046 million[12] - The company is unable to reconcile guidance for Adjusted EBITDA and Adjusted EPS to GAAP measures due to the inherent difficulty in predicting future impacts of certain items[16] Shareholder Impact - Diluted shares outstanding increased from 50.1 million in Q3 2023 to 50.8 million in Q3 2024, indicating a slight dilution[24] - The company experienced a significant increase in stock-based compensation, which amounted to 3.8 million in Q3 2024, compared to 3.1millioninQ32023[24]−TheadjusteddilutedEPSforQ32024was3.1 million in Q3 2023[24] - The adjusted diluted EPS for Q3 2024 was 0.03, a slight improvement from $0.03 in Q3 2023, despite the overall net loss[24]