Enhabit(US:EHAB)2024-11-06 21:25Financial Performance - Net service revenue for Q3 2024 was $253.6 million, a decrease of 1.8% from $258.3 million in Q3 2023[4] - Adjusted EBITDA increased to $24.5 million, reflecting a 5.6% improvement year over year from $23.2 million[5] - Adjusted EPS remained flat at $0.03 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 $2.4 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 $2.2 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 $0 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), compared to a net loss of $2.4 million and diluted EPS of $(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 $109.5 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 $117.3 million, while non-Medicare revenue increased by 20.9% to $81.5 million[7] - Hospice net service revenue grew by 11.0% to $52.6 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 $258.3 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 $55.3 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 $28.4 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 $30.3 million, compared to $8.6 million for the same period in 2023[30] Assets and Liabilities - Total assets decreased to $1,304.3 million as of September 30, 2024, from $1,433.6 million as of December 31, 2023[19] - Total liabilities decreased to $706.4 million as of September 30, 2024, from $731.9 million as of December 31, 2023[19] - Cash and cash equivalents increased to $45.7 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 $24.5 million, up from $23.2 million in the prior year[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $75.0 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 $107.9 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 $30.7 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 $1,046 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 $3.1 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]