Enhabit(US:EHAB)2024-05-09 20:48Financial Performance - For the three months ended March 31, 2024, consolidated net service revenue was $262.4 million, a decrease of 1.0% compared to $265.1 million in the same period of 2023[86]. - Net income attributable to Enhabit, Inc. for the three months ended March 31, 2024, was $0.2 million, a decline of 92.6% from $2.7 million in the same period of 2023[86]. - Adjusted EBITDA for the three months ended March 31, 2024, remained stable at $25.3 million, unchanged from the same period in 2023[95]. - Home health net service revenue decreased by 1.2% to $213.2 million for the three months ended March 31, 2024, compared to $215.8 million in 2023[101]. - Hospice net service revenue slightly decreased by 0.2% to $49.2 million, with general and administrative expenses reduced by 3.7%[110]. Revenue Breakdown - The home health segment net service revenue was $213.2 million, accounting for 81.2% of consolidated revenue, while the hospice segment net service revenue was $49.2 million, representing 18.8% of consolidated revenue[97]. - Medicare admissions fell by 11.4% to 25,944, while non-Medicare admissions increased by 25.2% to 30,881 during the same period[101]. - The shift to more non-Medicare admissions in home health contributed to the decrease in net service revenue[87]. Expenses and Costs - Interest expense increased to $11.1 million for the three months ended March 31, 2024, compared to $9.5 million in the same period of 2023, reflecting higher interest rates and increased leverage[90]. - The effective income tax rate for the three months ended March 31, 2024, was 50.0%, significantly higher than 31.9% for the same period in 2023[91]. - Cost of service as a percentage of net service revenue increased to 51.5% in Q1 2024 from 50.1% in Q1 2023[105]. - Home health segment adjusted EBITDA decreased by 2.5% to $43.2 million, primarily due to lower net service revenue and increased cost of service[107]. Cash Flow and Capital Expenditures - The company had $36.5 million in cash and cash equivalents as of March 31, 2024, up from $27.4 million at the end of 2023[117]. - Net cash provided by operating activities decreased to $17.3 million for the three months ended March 31, 2024, compared to $29.6 million in 2023[118]. - Capital expenditures for the three months ended March 31, 2024, were $1.8 million, compared to $0.6 million in the same period of 2023[124]. - The company expects to spend approximately $5 million to $10 million on capital expenditures during 2024[124]. Debt and Obligations - Total long-term debt obligations amounted to $365.0 million, with $180.0 million under the revolving credit facility as of March 31, 2024[122]. - Long-term debt, including interest, totals $139.7 million, with $43.0 million due in the current period[123]. - The company has $180.0 million in revolving credit facility obligations, all classified as long-term[122]. - Operating lease obligations total $70.4 million, with $10.8 million due in the current period[122]. - Total consolidated contractual obligations as of March 31, 2024, amounted to $772.7 million, with long-term debt obligations excluding revolving credit facility at $365.0 million[122]. Strategic Outlook - The proposed 2025 Hospice Rule by CMS suggests a 2.6% estimated net increase in payments compared to 2024, potentially resulting in a net increase of approximately 3.2% in Medicare payment rates for the company[79]. - The company remains committed to enhancing shareholder value and will evaluate all opportunities to do so following the conclusion of its strategic alternatives review[78]. - There have been no material changes to critical accounting estimates from those disclosed in the Form 10-K[125].