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AdaptHealth(AHCO) - 2025 Q1 - Quarterly Report
AHCOAdaptHealth(AHCO)2025-05-06 20:29
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Financial Performance - Net revenue for the three months ended March 31, 2025, was 777,882,adecreaseof1777,882, a decrease of 1% from 792,497 in the same period of 2024[20]. - Operating income decreased to 23,170forQ12025,down5423,170 for Q1 2025, down 54% from 50,531 in Q1 2024[20]. - Net loss attributable to AdaptHealth Corp. was 7,207forQ12025,comparedtoanetlossof7,207 for Q1 2025, compared to a net loss of 2,134 in Q1 2024, representing a significant increase in losses[20]. - The company reported a comprehensive loss of 6,754forQ12025,comparedtoacomprehensivelossof6,754 for Q1 2025, compared to a comprehensive loss of 253 in Q1 2024[22]. - The net loss for the three months ended March 31, 2025, was 6,079,000,comparedtoanetlossof6,079,000, compared to a net loss of 1,109,000 for the same period in 2024[26]. - Adjusted EBITDA for the three months ended March 31, 2025, was 127,938,000,downfrom127,938,000, down from 158,485,000 in the same period of 2024, indicating a decline of about 19.3%[100]. - The diluted net loss per share for the three months ended March 31, 2025, was (0.05),consistentwiththedilutednetlosspershareforthesameperiodin2024[154].RevenueBreakdown−ForthethreemonthsendedMarch31,2025,totalnetrevenuewas(0.05), consistent with the diluted net loss per share for the same period in 2024[154]. Revenue Breakdown - For the three months ended March 31, 2025, total net revenue was 777.9 million, a decrease of 1.8% from 792.5millioninthesameperiodof2024[73].−InsurancerevenueforthethreemonthsendedMarch31,2025,was792.5 million in the same period of 2024[73]. - Insurance revenue for the three months ended March 31, 2025, was 454.2 million, down 6.0% from 483.4millionin2024[73].−Patientpayrevenueincreasedby14.0483.4 million in 2024[73]. - Patient pay revenue increased by 14.0% to 126.2 million in Q1 2025, compared to 110.7millioninQ12024[73].−NetsalesrevenuefromSleepHealthsegmentwas110.7 million in Q1 2024[73]. - Net sales revenue from Sleep Health segment was 241.2 million in Q1 2025, slightly up from 237.6millioninQ12024[75].−Revenuefromfixedmonthlyequipmentreimbursementstotaled237.6 million in Q1 2024[75]. - Revenue from fixed monthly equipment reimbursements totaled 249.5 million in Q1 2025, down from 254.3millioninQ12024[75].−TheSleepHealthsegmentgeneratednetrevenueof254.3 million in Q1 2024[75]. - The Sleep Health segment generated net revenue of 316,351,000 for the three months ended March 31, 2025, compared to 325,334,000in2024,adecreaseofapproximately2.9325,334,000 in 2024, a decrease of approximately 2.9%[95]. - The Wellness at Home segment reported net revenue of 157,206,000 for the three months ended March 31, 2025, slightly up from 156,044,000in2024[95].AssetsandLiabilities−TotalassetsasofMarch31,2025,were156,044,000 in 2024[95]. Assets and Liabilities - Total assets as of March 31, 2025, were 4,437,350, a decrease from 4,486,947asofDecember31,2024[18].−Totalliabilitiesdecreasedto4,486,947 as of December 31, 2024[18]. - Total liabilities decreased to 2,863,496 as of March 31, 2025, down from 2,908,829attheendof2024[18].−Thecompany’saccumulateddeficitincreasedto2,908,829 at the end of 2024[18]. - The company’s accumulated deficit increased to 569,385 as of March 31, 2025, from 562,178asofDecember31,2024[18].−AsofMarch31,2025,theassetsheldforsaleamountedto562,178 as of December 31, 2024[18]. - As of March 31, 2025, the assets held for sale amounted to 101,449,000, an increase from 52,748,000asofDecember31,2024[84].−Thetotalliabilitiesheldforsaleincreasedto52,748,000 as of December 31, 2024[84]. - The total liabilities held for sale increased to 17,514,000 as of March 31, 2025, from 7,043,000asofDecember31,2024[84].−Long−termdebtasofMarch31,2025,totaled7,043,000 as of December 31, 2024[84]. - Long-term debt as of March 31, 2025, totaled 1.941 billion, down from 1.965billionasofDecember31,2024[124].CashFlowandLiquidity−Cashandcashequivalentsdecreasedto1.965 billion as of December 31, 2024[124]. Cash Flow and Liquidity - Cash and cash equivalents decreased to 53,650 as of March 31, 2025, from 109,747asofDecember31,2024,indicatingaliquiditycontraction[18].−Netcashprovidedbyoperatingactivitiesincreasedto109,747 as of December 31, 2024, indicating a liquidity contraction[18]. - Net cash provided by operating activities increased to 95,527,000 in Q1 2025, up from 49,035,000inQ12024,representinga9549,035,000 in Q1 2024, representing a 95% increase[26]. - Cash at the end of the period was 53,650,000, down from 79,566,000attheendofQ12024,indicatingadecreaseofapproximately32.679,566,000 at the end of Q1 2024, indicating a decrease of approximately 32.6%[26]. - The company’s cash paid for interest was 45,969,000 in Q1 2025, down from 50,259,000inQ12024,indicatingadecreaseof8.650,259,000 in Q1 2024, indicating a decrease of 8.6%[26]. Expenses - General and administrative expenses were 86,854 for Q1 2025, slightly down from 89,041inQ12024[20].−Thecompanyreporteddepreciationandamortizationexpensesof89,041 in Q1 2024[20]. - The company reported depreciation and amortization expenses of 94,345,000 for Q1 2025, slightly up from 92,876,000inQ12024[26].−Thecompanyincurredequity−basedcompensationexpensesof92,876,000 in Q1 2024[26]. - The company incurred equity-based compensation expenses of 5,296,000 in Q1 2025, compared to 4,533,000inQ12024,reflectinga16.94,533,000 in Q1 2024, reflecting a 16.9% increase[26]. - The company recognized depreciation expense of 89.2 million for the three months ended March 31, 2025, compared to 87.3millionforthesameperiodin2024[85].−Thecompanyincurredfinanceleasecostsof87.3 million for the same period in 2024[85]. - The company incurred finance lease costs of 3,374,000 for amortization of right-of-use (ROU) assets in Q1 2025, which is an increase of 49.8% compared to 2,255,000inQ12024[164].−Thecompanyrecordedanincometaxexpenseof2,255,000 in Q1 2024[164]. - The company recorded an income tax expense of 0.9 million for the three months ended March 31, 2025, a significant decrease from 6.6millioninthesameperiodof2024[167].ComplianceandLegalMatters−Thecompanyhasnomaterialaccrualsrelatedtolawsuits,claims,orinvestigationsatthistime,indicatingastablelegalstanding[171].−ThecompanyisfullycooperatingwithmultipleinvestigationsregardingpotentialviolationsoftheFalseClaimsAct,buttheimpactonfinancialconditionsremainsuncertain[172][179][181].DebtandFinancing−TheCompanyissued6.6 million in the same period of 2024[167]. Compliance and Legal Matters - The company has no material accruals related to lawsuits, claims, or investigations at this time, indicating a stable legal standing[171]. - The company is fully cooperating with multiple investigations regarding potential violations of the False Claims Act, but the impact on financial conditions remains uncertain[172][179][181]. Debt and Financing - The Company issued 600.0 million aggregate principal amount of 5.125% senior unsecured notes in August 2021, maturing on March 1, 2030[132]. - The Company recognized a loss of 0.7millioninothercomprehensiveincomeduetocashflowhedgeaccountingforthethreemonthsendedMarch31,2025[121].−TheCompanymadeavoluntaryrepaymentof0.7 million in other comprehensive income due to cash flow hedge accounting for the three months ended March 31, 2025[121]. - The Company made a voluntary repayment of 20.9 million on the 2024 Term Loan during the three months ended March 31, 2025[130]. - As of March 31, 2025, the outstanding borrowings under the 2024 Term Loan were 525.0million,withaquarterlyprincipalrepaymentrequirementof525.0 million, with a quarterly principal repayment requirement of 4.1 million through September 30, 2026, increasing to 8.1millionfromDecember31,2026,throughJune30,2029[130].−ThemaximumamounttheCompanycouldborrowunderthe2024Revolverwhileremainingcompliantwithfinancialdebtcovenantswas8.1 million from December 31, 2026, through June 30, 2029[130]. - The maximum amount the Company could borrow under the 2024 Revolver while remaining compliant with financial debt covenants was 277.6 million[131].