Enhabit(US:EHAB)2025-05-07 21:10Financial Performance - Net service revenue for Q1 2025 was $259.9 million, a decrease of 1.0% compared to Q1 2024's $262.4 million[6] - Net income attributable to Enhabit, Inc. was $17.8 million, significantly up from $0.2 million in Q1 2024, representing an increase of 8,800.0%[6] - Adjusted EBITDA for Q1 2025 was $26.6 million, reflecting a year-over-year growth of 5.1%[7] - Hospice net service revenue rose to $59.3 million, a 20.5% increase from $49.2 million in Q1 2024[10] - Net income for Q1 2025 was $18.4 million, a significant increase from $0.9 million in Q1 2024, representing a growth of over 1,955%[23] - Adjusted EBITDA for Q1 2025 was $26.6 million, compared to $25.3 million in Q1 2024, reflecting a year-over-year increase of 5.1%[33] - The company reported a diluted earnings per share of $0.35 for Q1 2025, a substantial increase from $0.01 in Q1 2024[25] Admissions and Growth - Home health non-Medicare admissions increased by 7.4% year over year, while total admissions grew by 0.7%[5] - Hospice Adjusted EBITDA surged by 64.8% year over year, reaching $15.0 million[10] Debt and Financial Position - The company reduced bank debt by $25.0 million in the quarter, totaling a $60.0 million reduction year over year[7] - The leverage ratio improved to below 4.5 times, allowing the company to exit the covenant relief period restrictions[2] - Principal payments on debt totaled $25.0 million in Q1 2025, compared to $5.0 million in Q1 2024, indicating a significant increase in debt repayment[23] Guidance and Projections - Full-year 2025 guidance for net service revenue is projected between $1,050 million and $1,080 million, compared to $1,034.8 million in 2024[11] - Adjusted diluted earnings per share for 2025 is guided to be between $0.41 and $0.51, up from $0.21 in 2024[11] Assets and Equity - Total assets as of March 31, 2025, were $1,235.9 million, up from $1,226.0 million as of December 31, 2024, indicating a growth of 0.2%[21] - Cash and cash equivalents increased to $39.5 million in Q1 2025 from $28.4 million in Q4 2024, marking a rise of 39.2%[21] - Total stockholders' equity rose to $568.3 million as of March 31, 2025, compared to $548.9 million at the end of 2024, an increase of 3.1%[21] Cash Flow and Expenses - Cash flows from operating activities provided $17.9 million in Q1 2025, slightly higher than $17.3 million in Q1 2024[23] - Net cash provided by operating activities increased to $17.9 million in Q1 2025 from $17.3 million in Q1 2024, representing a growth of 3.5%[34] - Adjusted free cash flow decreased to $16.9 million in Q1 2025 from $18.6 million in Q1 2024, a decline of 9.1%[35] - General and administrative expenses as a percentage of revenue were 41.4% in Q1 2025, slightly up from 41.0% in Q1 2024[37] Margins and Unusual Items - Gross margin as a percentage of revenue improved to 49.9% in Q1 2025 compared to 48.9% in Q1 2024, indicating a 1.0 percentage point increase[37] - Adjusted EBITDA margin increased to 10.2% in Q1 2025 from 9.6% in Q1 2024, showing a growth of 0.6 percentage points[37] - Unusual or nonrecurring items in Q1 2025 amounted to $1.0 million, down from $3.7 million in Q1 2024, a reduction of 73.0%[35] Strategic Focus - The company plans to continue focusing on restructuring activities and addressing nonrecurring litigation costs as part of its ongoing strategy[33] - The company is focused on integrating technology into operations and successfully completing acquisitions and joint ventures as part of its growth strategy[38] - The company anticipates future financial performance to be influenced by strategic plans, regulatory developments, and economic conditions, with no specific guidance provided[38]