AdaptHealth(AHCO) - 2024 Q4 - Annual Results

Financial Performance - Net revenue for the full year 2024 was $3,261.0 million, an increase of 1.9% compared to $3,200.2 million in 2023[4] - Net income attributable to AdaptHealth Corp. for 2024 was $90.4 million, a significant recovery from a net loss of $678.9 million in 2023[4] - Adjusted EBITDA for the full year 2024 was $688.7 million, reflecting a 2.7% increase from $670.8 million in 2023[4] - For Q4 2024, net revenue was $856.6 million, a slight decrease of 0.2% compared to $858.2 million in Q4 2023[4] - Q4 2024 net income attributable to AdaptHealth Corp. was $50.3 million, recovering from a net loss of $254.5 million in Q4 2023[4] - Adjusted EBITDA for Q4 2024 was $200.6 million, down 2.0% from $204.6 million in Q4 2023[4] - Net revenue for the three months ended December 31, 2024, was $856,645, a slight decrease of 0.1% compared to $858,234 in the same period of 2023[21] - Net income attributable to AdaptHealth Corp. for the twelve months ended December 31, 2024, was $90,422, a significant improvement from a net loss of $678,895 in 2023[32] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $688,657, representing an adjusted EBITDA margin of 21.1%, compared to $670,795 and 21.0% in 2023[32] - Operating income for the three months ended December 31, 2024, was $97,667, compared to an operating loss of $217,804 in the same period of 2023[21] - Total costs and expenses for the twelve months ended December 31, 2024, were $2,997,243, down from $3,798,578 in 2023[21] Cash Flow and Financial Position - Cash flow from operations increased to $541.8 million in 2024 from $480.7 million in 2023, while free cash flow rose to $235.8 million from $143.2 million[4] - Cash flows from operating activities for the twelve months ended December 31, 2024, increased to $541,839 from $480,666 in 2023[23] - The company had cash at the end of the period amounting to $109,747, an increase from $77,132 at the beginning of the period[27] - Free cash flow for Q4 2024 was $73.1 million, compared to $66.6 million in Q4 2023, representing an increase of 7.2%[34] - For the twelve months ended December 31, 2024, free cash flow totaled $143.2 million, a decrease from $235.8 million in 2023, reflecting a decline of 39.2%[34] - Net cash provided by operating activities for Q4 2024 was $150.4 million, down from $155.3 million in Q4 2023, indicating a decrease of 5.7%[34] Strategic Initiatives and Expenses - AdaptHealth reached a definitive agreement to sell certain incontinence assets in its Wellness at Home segment during Q4 2024[4] - The 2024 period included $2.4 million in charges related to the change in fair value of common stock issued following a court-approved securities class action lawsuit[35] - Consulting expenses in 2024 amounted to $13.9 million for systems implementation activities, while 2023 saw $5.6 million for similar expenses, reflecting a significant increase[35] - Severance charges in 2024 were $3.9 million, primarily related to the separation of the former President, compared to $7.1 million in 2023, which included $2.9 million for the former CEO's separation[35] - The company incurred $4.5 million in consulting expenses associated with asset dispositions in 2024, indicating a strategic focus on optimizing asset management[35] Impairments and Interest Expenses - The company reported a goodwill impairment of $13,078 for the twelve months ended December 31, 2024, significantly lower than the $830,787 recorded in 2023[32] - Interest expense for the twelve months ended December 31, 2024, was $126,668, a slight decrease from $130,299 in 2023[32] - Non-cash goodwill impairment charges were recorded in both years, with 2024 reflecting charges related to the disposition of certain immaterial custom rehab technology assets[35]