Enhabit(EHAB) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, net service revenue was $253.6 million, a decrease of 1.8$258.3 million in the same period of 2023[95]. - The company reported a net loss attributable to Enhabit, Inc. of $110.2 million for the three months ended September 30, 2024, compared to a net loss of$2.4 million in the same period of 2023[95]. - Net loss for the three months ended September 30, 2024, was $(109.5) million, significantly higher than$(2.2) million in the same period of 2023[108]. - Total consolidated net service revenue for the nine months ended September 30, 2024, was $776.6 million, a decrease from$785.7 million in the same period of 2023[111]. - Adjusted EBITDA for the three months ended September 30, 2024, was $24.5 million, compared to$23.2 million for the same period in 2023, reflecting a growth of 5.6%[108]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $75.0 million, compared to$72.5 million for the same period in 2023, indicating a growth of 3.5%[109]. Goodwill Impairment - The company experienced a goodwill impairment charge of $107.9 million in the third quarter of 2024, compared to an impairment of$85.8 million in the same period of 2023[99]. - The company recorded an impairment charge of $107.9 million for the home health reporting unit during the three months ended September 30, 2024[137]. Revenue Segments - Home health segment net service revenue for the three months ended September 30, 2024, decreased to$201.0 million, down 4.7% from $210.9 million in the same period of 2023[116]. - Hospice segment net service revenue increased to$52.6 million for the three months ended September 30, 2024, up 10.9% from $47.4 million in the same period of 2023[111]. - Medicare accounted for 58.4$81.5 million for the three months ended September 30, 2024, compared to $67.4 million in the same period of 2023[116]. Expenses and Costs - General and administrative expenses decreased to 40.9$10.8 million, a slight decrease from $10.9 million in the same period of 2023[100]. - The effective income tax rate for the three months ended September 30, 2024, was (0.6)$12.0 million against deferred tax assets[102]. - Cost of service as a percentage of net service revenue for hospice decreased to 25.8% in Q3 2024 from 24.0% in Q3 2023[122]. Operational Metrics - The company operates 256 home health locations and 112 hospice locations across 34 states as of September 30, 2024[79]. - Medicare admissions decreased by 8.5% to 23,422 in Q3 2024 compared to Q3 2023, while non-Medicare admissions increased by 20.1% to 29,950[117]. - Total admissions for hospice increased by 5.7% to 3,046 in Q3 2024 compared to Q3 2023[122]. - Segment adjusted EBITDA for hospice increased by 29.9% to $10.0 million in Q3 2024 compared to Q3 2023, reflecting higher net service revenue[126]. Cash Flow and Capital Expenditures - Cash and cash equivalents increased to$45.7 million as of September 30, 2024, up from $27.4 million at the end of 2023[129]. - Net cash provided by operating activities increased to$55.3 million for the nine months ended September 30, 2024, compared to $45.5 million for the same period in 2023[130]. - Capital expenditures for the nine months ended September 30, 2024, were$3.2 million, compared to $3.6 million for the same period in 2023[135]. - The company expects to spend approximately$5 million to $7 million on capital expenditures in 2024[135]. Debt and Obligations - As of September 30, 2024, the total consolidated contractual obligations amount to$718.9 million, with long-term debt obligations accounting for $355.0 million[134]. - Interest on long-term debt as of September 30, 2024, is calculated at$115.6 million, with $38.5 million due in the current period[134]. - The company had$48.4 million available under its revolving credit facility as of September 30, 2024[129]. - Total purchase obligations amount to $6.6 million, primarily related to software licensing and support[134].