Enhabit(US:EHAB)2023-02-15 19:23Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2022 was $275.1 million, a decrease of $1 million or 0.4% year-over-year [11] - For the full year 2022, total revenue was $1,083.1 million with an EBITDA of $159.3 million [13] - Adjusted EBITDA for Q4 2022 decreased by $8.7 million or 17.8% year-over-year, influenced by higher service costs and administrative expenses [19] - The company expects 2023 adjusted EBITDA to range between $125 million and $140 million [10][85] Business Line Data and Key Metrics Changes - In the Home Health segment, total admissions decreased by 1.5% year-over-year, with non-episodic visits growing to approximately 26% of total visits [80] - The Hospice segment saw a 2.9% sequential growth in average daily census from Q3 to Q4 2022 [12] - The average daily census in Hospice grew by 0.7% same-store, indicating stability despite seasonal fluctuations [76] Market Data and Key Metrics Changes - The company reported a 19% increase in the full-time nursing candidate pool in Q4 2022 compared to the previous year [6] - The full-time vacancy rate ended 2022 at approximately 24%, reflecting a shift in staffing dynamics [6] - The payer mix is shifting towards non-episodic patients, which is expected to continue impacting revenue [23][80] Company Strategy and Development Direction - The company is focusing on a case management model instead of a home health staffing model to enhance hiring efforts and operational efficiency [8] - A new organizational structure was announced to improve alignment between sales and operations [9] - The company plans to invest $2 million to $4 million to open 10 de novo locations in 2023, prioritizing new Hospice sites in existing Home Health markets [88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for home-based services in 2023, despite a challenging operating environment [10][23] - The company anticipates that financial performance will improve in the second half of 2023 compared to the first half [27][126] - Management highlighted the importance of maintaining financial flexibility and being disciplined in acquisition strategies due to increased leverage [27][126] Other Important Information - The company experienced a $5 million audit recovery related to prior year medical claims, which positively impacted revenue [11][83] - The cost per visit is expected to increase by 4% to 5% in 2023, primarily due to rising labor costs [85] Q&A Session Summary Question: What is the impact of contract labor on staffing? - Management clarified that contract labor is significantly more expensive than PRN staff, with 5.2% of Hospice visits performed by contract labor in Q4 compared to 1.7% the previous year [33] Question: What are the volume expectations for 2023? - Management indicated that they do not provide detailed volume expectations but emphasized the balance between growth in Medicare Advantage and traditional fee-for-service [45][46] Question: How does the company view its competitive positioning? - Management feels more competitive due to staffing improvements and the ability to meet employee needs with flexible staffing options [65]