Enhabit(US:EHAB)2024-08-06 20:16Financial Performance - Net service revenue for Q2 2024 was $260.6 million, a decrease of 0.6% compared to Q2 2023[2] - Adjusted EBITDA increased by 5.4% year over year to $25.2 million, with an adjusted EBITDA margin of 9.7%[4] - Operating income for the six months ended June 30, 2024, was $24.1 million, compared to a loss of $60.3 million for the same period in 2023[15] - Net income attributable to Enhabit, Inc. for the three months ended June 30, 2024, was a loss of $0.2 million, significantly improved from a loss of $74.4 million in the same period last year[15] - Adjusted EBITDA for Q2 2024 was $25.2 million, compared to $23.9 million in Q2 2023, reflecting a year-over-year increase of 5.4%[20] - The net income attributable to Enhabit, Inc. for the six months ended June 30, 2024, was $6.9 million, compared to a net loss of $(70.9) million in the same period of 2023[25] - Diluted EPS for Q2 2024 was $0.07, compared to a diluted EPS of $(1.49) in Q2 2023, indicating a significant recovery[21] - Adjusted earnings per share for the six months ended June 30, 2024, was $0.14, compared to $0.14 for the same period in 2023[18] Revenue and Guidance - Updated full-year 2024 guidance for net service revenue is now $1,050 to $1,063 million, down from previous guidance of $1,076 to $1,102 million[9] - Adjusted EPS guidance for 2024 was updated to a range of $0.19 to $0.37, compared to previous guidance of $0.12 to $0.43[9] - Net service revenue for the three months ended June 30, 2024, was $260.6 million, a decrease of 0.6% from $262.3 million for the same period in 2023[15] Admissions and Patient Metrics - Total admissions growth was 6.4% year over year, driven by a 25.2% increase in non-Medicare admissions[2][6] - Hospice average daily census increased by 2.7% year over year, with a sequential increase every month since January 2024[2][8] - The 30-day hospitalization readmission rate in home health is 23.3% better than the national average[2] - Average revenue per patient day in hospice increased by 0.6% year over year to $157[8] Costs and Expenses - Cost per visit decreased by 2.2% year over year, primarily due to reduced contract labor costs[7] - Total interest expense and amortization of debt discounts and fees for Q2 2024 was $(10.9) million, slightly higher than $(10.3) million in Q2 2023[21] - Stock-based compensation for Q2 2024 was $(2.2) million, compared to $(2.6) million in Q2 2023, indicating a reduction in related expenses[21] Cash Flow and Balance Sheet - Cash and cash equivalents increased to $30.2 million at the end of the period, up from $27.2 million at the beginning of the period[17] - Net cash provided by operating activities for the six months ended June 30, 2024, was $26.9 million, compared to $39.2 million for the same period in 2023[17] - Net cash provided by operating activities for the three months ended June 30, 2024, was $9.6 million, consistent with the same period in 2023[26] - Total assets as of June 30, 2024, were $1,419.0 million, a slight decrease from $1,433.6 million as of December 31, 2023[16] - Total liabilities decreased to $713.6 million as of June 30, 2024, from $731.9 million as of December 31, 2023[16] Strategic Focus and Risks - The company anticipates potential risks including regulatory developments and changes in reimbursement rates that could impact future performance[29] - The company is focused on executing strategic plans and integrating technology into operations to enhance growth opportunities[29] Unusual Items and Acquisitions - The company reported unusual or nonrecurring items in Q2 2024 totaling $(4.8) million, primarily related to shareholder activism and litigation costs[20] - The company has not reported any acquisitions during the six months ended June 30, 2024, compared to an acquisition cost of $2.8 million in the same period last year[17]