Enhabit(US:EHAB)2024-05-08 20:18Financial Performance - Net service revenue for Q1 2024 was $262.4 million, a decrease of 1.0% compared to $265.1 million in Q1 2023[5]. - Adjusted EBITDA remained stable at $25.3 million for both Q1 2024 and Q1 2023, with an Adjusted EBITDA margin of 9.6%[5][6]. - The company reported a net income attributable to Enhabit, Inc. of $0.2 million, a significant decrease of 92.6% from $2.7 million in Q1 2023[5][6]. - Net income for Q1 2024 was $0.9 million, a decrease of 71.9% from $3.2 million in Q1 2023[24]. - Adjusted earnings per share (EPS) for Q1 2024 was $0.07, down from $0.09 in Q1 2023, representing a decline of 22.2%[25]. - Net cash provided by operating activities was $17.3 million in Q1 2024, a decrease of 41.0% from $29.6 million in Q1 2023[24]. - Adjusted free cash flow for Q1 2024 was $18.6 million, down from $28.3 million in Q1 2023, representing a decrease of about 34.0%[35]. - Gross margin as a percentage of revenue was 48.9% in Q1 2024, compared to 50.0% in Q1 2023, indicating a decline of 1.1 percentage points[37]. - Adjusted EBITDA margin improved slightly to 9.6% in Q1 2024 from 9.5% in Q1 2023[37]. Operational Highlights - Non-Medicare admissions increased by 25.2%, contributing to a total admission growth of 5.3% year over year[5][7]. - The company added 151 net new full-time nursing hires in Q1 2024, enhancing operational capacity[5]. - The 30-day hospitalization readmission rate in home health is 20.5% better than the national average, indicating improved patient outcomes[5]. - Two new hospice de novo locations were opened in Texas in March 2024, supporting market expansion efforts[5]. Cost Management - General and administrative expenses decreased by 4.2% year over year, reflecting improved cost control measures[5][6]. - The company reported unusual or nonrecurring items totaling $3.7 million in Q1 2024, compared to $2.3 million in Q1 2023, reflecting increased strategic review costs[33]. - Unusual or nonrecurring items in Q1 2024 amounted to $3.7 million, compared to $2.3 million in Q1 2023, reflecting an increase of approximately 60.9%[34]. - Capital expenditures for maintenance increased to $1.8 million in Q1 2024 from $0.6 million in Q1 2023, a rise of 200%[35]. Guidance and Future Outlook - The company reaffirmed its full-year 2024 guidance for net service revenue between $1,076 million and $1,102 million[13]. - Adjusted EPS guidance for 2024 is set between $0.12 and $0.43[13]. - Future growth opportunities may be influenced by regulatory developments and changes in reimbursement rates, as indicated in the forward-looking statements[39]. - The company aims to successfully integrate technology in operations and complete acquisitions to enhance market presence[39]. - The management emphasizes the importance of attracting and retaining key personnel to support strategic plans and operational efficiency[39]. Balance Sheet and Assets - Total assets increased to $1,445.2 million as of March 31, 2024, compared to $1,433.6 million at December 31, 2023, reflecting a growth of 0.8%[22]. - Total current liabilities increased to $150.5 million as of March 31, 2024, up from $137.7 million at December 31, 2023, marking an increase of 9.9%[22]. - Total stockholders' equity increased to $700.0 million as of March 31, 2024, compared to $696.7 million at December 31, 2023, an increase of 0.5%[22]. - Cash, cash equivalents, and restricted cash at the end of Q1 2024 totaled $39.4 million, slightly down from $39.6 million at the end of Q1 2023[24]. - Principal payments on debt in Q1 2024 were $5.0 million, consistent with Q1 2023[24].