Latest news with #SuzanneFoster
Business Wire
05-08-2025
- Business
- Business Wire
AdaptHealth Corp. Partners With a Major National Healthcare System to Become the Exclusive Provider of Home Medical Equipment
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)-- AdaptHealth Corp. (NASDAQ: AHCO) ('AdaptHealth' or the 'Company'), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, today announced that it has entered into a definitive agreement with a major national healthcare system. Under the agreement, AdaptHealth will serve as the exclusive provider of home medical equipment and supplies across the healthcare system's broad network of hospitals and medical offices. The 5-year agreement, which is subject to certain termination provisions, is structured primarily as a capitation payment model and covers all of the system's more than 10 million members. 'We are excited to work with our new partner to help its members achieve their best health at home,' said AdaptHealth CEO Suzanne Foster. 'We were able to demonstrate how our combination of talent, expertise, and tech-enabled patient experience aligned with the healthcare system's innovative approach to serving its membership.' Ms. Foster continued, 'This partnership reaffirms that we are uniquely positioned to drive non-acquired growth as we transform healthcare services in the home, through innovative service arrangements that deliver consistent experiences and more predictable costs to the patients, plan members, providers, and payors in the U.S. healthcare system.' The agreement covers the national healthcare system's Medicare Advantage, Medicaid Managed Care, and privately insured patients. About AdaptHealth Corp. AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Diabetes Health segment provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment. The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 630 locations in 47 states. Forward Looking Statements This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as 'believe,' 'may,' 'will,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'should,' 'would,' 'plan,' 'predict,' 'potential,' 'seem,' 'seek,' 'future,' 'outlook,' and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company's operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company's customers' preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company's filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company's assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed on these forward-looking statements.
Business Wire
05-08-2025
- Business
- Business Wire
AdaptHealth Corp. Announces Second Quarter 2025 Results
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)-- AdaptHealth Corp. (NASDAQ: AHCO) ('AdaptHealth' or the 'Company'), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the second quarter ended June 30, 2025. Second Quarter Results and Highlights All comparisons are to the quarter ended June 30, 2024 unless otherwise stated. Net revenue was $800.4 million compared to $806.0 million, a decrease of 0.7%. Net income attributable to AdaptHealth Corp. was $14.7 million compared to net income of $19.4 million. Adjusted EBITDA was $155.5 million compared to $165.3 million, a decrease of 5.9%. Cash flow from operations was $257.5 million year-to-date 2025, an increase from $247.0 million during the comparable period in 2024, and free cash flow was $73.3 million year-to-date 2025, compared to $77.9 million during the comparable period in 2024. The Company closed on its previously disclosed sales of certain incontinence assets and certain infusion assets in its Wellness at Home segment. Management Commentary 'AdaptHealth's momentum continues to build,' said Suzanne Foster, CEO of AdaptHealth. 'We delivered another quarter of solid results in the second quarter. We are driving revenue growth, underscored by today's milestone announcement of a new capitated partnership with a major national healthcare system. We are advancing multiple initiatives to boost operating efficiency, elevate the patient experience, and expand our profit margins. And we are making rapid progress reducing debt and fortifying our financial position. Step by step, we are executing on a focused plan to unlock the full value of our enterprise, guided by our dedication to providing exceptional service to the 4.2 million patients that depend on us.' Financial Outlook The Company is updating previous financial guidance for fiscal year 2025, as follows: Net revenue of $3.18 billion to $3.26 billion, from $3.15 billion to $3.29 billion Adjusted EBITDA of $642 million to $682 million, from $662 million to $702 million Free cash flow of $170 million to $190 million, unchanged Conference Call Management will host a teleconference today, Tuesday, August 5, 2025, at 8:30 am ET to discuss the results and business activities with analysts and investors. Interested parties may participate in the call by dialing: 800-343-4136 (Domestic) or 203-518-9843 (International) When prompted, reference Conference ID: AHCO2Q25 Webcast registration: Click Here Following the live call, a replay will be available for six months on the Company's website, under 'Investor Relations.' About AdaptHealth Corp. AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Diabetes Health segment provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment. The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 630 locations in 47 states. Forward-Looking Statements This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as 'believe,' 'may,' 'will,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'should,' 'would,' 'plan,' 'predict,' 'potential,' 'seem,' 'seek,' 'future,' 'outlook,' and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company's acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company's operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company's customers' preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company's filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company's assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Use of Non-GAAP Financial Information and Financial Guidance The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and free cash flow, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company's ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA. The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company's financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company's liquidity. The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations. Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth's liquidity. This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company's non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company's future GAAP results. In addition, the Company's financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Expand ADAPTHEALTH CORP. Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, 2025 2024 2025 2024 Net revenue $ 800,372 $ 805,975 $ 1,578,254 $ 1,598,472 Costs and expenses: Cost of net revenue 645,714 636,622 1,303,158 1,271,652 General and administrative expenses 97,436 99,363 184,290 188,404 Depreciation and amortization, excluding patient equipment depreciation 10,195 11,395 20,609 22,760 Goodwill impairment — 6,548 — 13,078 Total costs and expenses 753,345 753,928 1,508,057 1,495,894 Gain on sale of businesses (32,225 ) — (32,225 ) — Operating income 79,252 52,047 102,422 102,578 Interest expense, net 27,533 33,038 55,932 65,510 Change in fair value of warrant liability — (7,010 ) — 443 Other (income) loss, net — (1,760 ) — 3,345 Income before income taxes 51,719 27,779 46,490 33,280 Income tax expense 35,891 7,248 36,741 13,858 Net income 15,828 20,531 9,749 19,422 Income attributable to noncontrolling interest 1,154 1,096 2,282 2,121 Net income attributable to AdaptHealth Corp. $ 14,674 $ 19,435 $ 7,467 $ 17,301 Weighted average common shares outstanding - basic 134,993 133,218 134,897 133,066 Weighted average common shares outstanding - diluted 137,071 136,029 137,181 135,698 Basic net income per share $ 0.10 $ 0.13 $ 0.05 $ 0.12 Diluted net income per share $ 0.10 $ 0.13 $ 0.05 $ 0.12 Expand ADAPTHEALTH CORP. Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities: Net income $ 9,749 $ 19,422 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization, including patient equipment depreciation 186,705 184,038 Goodwill impairment — 13,078 Equity-based compensation 11,427 9,751 Change in fair value of warrant liability — 443 Reduction in the carrying amount of operating lease right-of-use assets 15,300 17,770 Reduction in the carrying amount of finance lease right-of-use assets 7,096 4,793 Deferred income tax expenses 12,643 12,103 Change in fair value of interest rate swaps, net of reclassification adjustment — (367 ) Amortization of deferred financing costs 3,105 2,729 Payment of contingent consideration from an acquisition — (1,850 ) Gain on sale of businesses (32,225 ) — Changes in operating assets and liabilities, net of effects from acquisitions: Accounts receivable 8,868 (48,166 ) Inventory (9,713 ) (10,254 ) Prepaid and other assets (4,578 ) 16,225 Operating lease obligations (15,812 ) (17,887 ) Operating liabilities 64,956 45,191 Net cash provided by operating activities 257,521 247,019 Cash flows from investing activities: Purchases of equipment and other fixed assets (184,250 ) (169,163 ) Payments for business acquisitions, net of cash acquired (18,561 ) — Proceeds from the sale of businesses, net of cash disposed 115,674 — Receipt of contingent consideration from the sale of assets 1,156 — Net cash used in investing activities (85,981 ) (169,163 ) Cash flows from financing activities: Repayments on long-term debt and lines of credit (175,000 ) (145,000 ) Proceeds from borrowings on lines of credit — 75,000 Repayments of finance lease obligations (8,346 ) (4,890 ) Proceeds from the exercise of stock options — 545 Proceeds received in connection with employee stock purchase plan 564 607 Payments relating to the Tax Receivable Agreement (25,012 ) (1,432 ) Distributions to noncontrolling interests (2,573 ) (3,500 ) Payments for tax withholdings from vesting of restricted stock units (2,079 ) (1,399 ) Payments of contingent consideration and deferred purchase price from acquisitions (211 ) (5,087 ) Net cash used in financing activities (212,657 ) (85,156 ) Net decrease in cash (41,117 ) (7,300 ) Cash at beginning of period 109,747 77,132 Cash at end of period $ 68,630 $ 69,832 Expand Non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin This press release presents AdaptHealth's EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the three and six months ended June 30, 2025 and 2024. AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling interests, interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient equipment depreciation. AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, litigation settlement expense (gain), gain on sale of businesses, and certain other non-recurring items of expense or income. AdaptHealth defines Adjusted EBITDA Margin as Adjusted EBITDA (as defined above) as a percentage of net revenue. The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the three months ended June 30, 2025 and 2024: Three Months Ended June 30, 2025 2024 (in thousands, except percentages) Dollars Revenue Percentage Dollars Revenue Percentage Net income attributable to AdaptHealth Corp. $ 14,674 1.8 % $ 19,435 2.4 % Income attributable to noncontrolling interest 1,154 0.1 % 1,096 0.1 % Interest expense, net 27,533 3.4 % 33,038 4.1 % Income tax expense 35,891 4.5 % 7,248 0.9 % Depreciation and amortization, including patient equipment depreciation 92,360 11.5 % 91,162 11.3 % EBITDA 171,612 21.3 % 151,979 18.8 % Equity-based compensation expense (a) 6,131 0.8 % 5,218 0.6 % Change in fair value of warrant liability (b) — — % (7,010 ) (0.9 )% Goodwill impairment (c) — — % 6,548 0.8 % Litigation settlement gain (d) — — % (1,760 ) (0.2 )% Gain on sale of businesses (e) (32,225 ) (4.0 )% — — % Other non-recurring expenses, net (f) 10,026 1.3 % 10,340 1.3 % Adjusted EBITDA $ 155,544 19.4 % $ 165,315 20.5 % Adjusted EBITDA Margin 19.4 % 20.5 % Expand (a) Represents equity-based compensation expense for awards granted to employees and non-employee directors. (b) Represents a non-cash gain for the change in the estimated fair value of the warrant liability. These warrants expired on November 8, 2024. (c) Represents a non-cash goodwill impairment charge relating to an immaterial business disposal during 2024. (d) Represents a pre-tax gain for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement. (e) Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. (f) The 2025 period consists of $6.9 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees on the sales of businesses), $1.0 million of transaction costs associated with acquisitions, and $2.1 million of other non-recurring expenses. The 2024 period consists of $5.8 million of consulting expenses associated with systems implementation activities, $1.6 million of expenses associated with litigation, a $0.9 million write-down of assets, $0.3 million of consulting expenses associated with asset dispositions, and $1.7 million of other non-recurring expenses. Expand The following unaudited table presents the reconciliation of net income attributable to AdaptHealth Corp. to EBITDA and Adjusted EBITDA, and the reconciliation of net income attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the six months ended June 30, 2025 and 2024: Six Months Ended June 30, 2025 2024 (in thousands, except percentages) Dollars Revenue Percentage Dollars Revenue Percentage Net income attributable to AdaptHealth Corp. $ 7,467 0.5 % $ 17,301 1.1 % Income attributable to noncontrolling interest 2,282 0.1 % 2,121 0.1 % Interest expense, net 55,932 3.6 % 65,510 4.1 % Income tax expense 36,741 2.3 % 13,858 0.9 % Depreciation and amortization, including patient equipment depreciation 186,705 11.8 % 184,038 11.5 % EBITDA 289,127 18.3 % 282,828 17.7 % Equity-based compensation expense (a) 11,427 0.7 % 9,751 0.6 % Change in fair value of warrant liability (b) — — % 443 — % Goodwill impairment (c) — — % 13,078 0.8 % Litigation settlement expense (d) — — % 3,345 0.2 % Gain on sale of businesses (e) (32,225 ) (2.0 )% — — % Other non-recurring expenses, net (f) 15,153 1.0 % 14,355 0.9 % Adjusted EBITDA $ 283,482 18.0 % $ 323,800 20.3 % Adjusted EBITDA Margin 18.0 % 20.3 % Expand (a) Represents equity-based compensation expense for awards granted to employees and non-employee directors. (b) Represents a non-cash charge for the change in the estimated fair value of the warrant liability. These warrants expired on November 8, 2024. (c) Represents a non-cash goodwill impairment charge relating to an immaterial business disposal during 2024. (d) Represents a $2.4 million charge for the change in fair value of shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities settlement, as well as an expense of $0.9 million to settle a shareholder derivative complaint. (e) Represents pre-tax gains associated with the dispositions of two businesses within the Company's Wellness at Home segment. (f) The 2025 period consists of $9.2 million of consulting expenses associated with asset dispositions (of which $5.1 million relates to contingent success fees on the sales of businesses), $2.0 million of consulting expenses associated with systems implementation activities, $1.1 million of transaction costs associated with acquisitions, and $2.8 million of other non-recurring expenses. The 2024 period consists of $6.9 million of consulting expenses associated with systems implementation activities, $2.8 million of expenses associated with litigation, a $1.6 million write-down of assets, $0.9 million of consulting expenses associated with asset dispositions, and $2.2 million of other non-recurring expenses. Expand Free Cash Flow This press release presents AdaptHealth's free cash flow for the three and six months ended June 30, 2025 and 2024. AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets. The following unaudited table reconciles net cash provided by operating activities to free cash flow for the three and six months ended June 30, 2025 and 2024:
Business Wire
30-06-2025
- Business
- Business Wire
AdaptHealth Corp. Closes Transaction to Dispose of Certain Home Infusion Assets and Reduces Debt
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)-- AdaptHealth Corp. (NASDAQ: AHCO) ('AdaptHealth' or the 'Company'), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, today announced that it has closed on the previously disclosed disposition of certain infusion assets in its Wellness at Home segment to a third party. The transaction was completed earlier this month. 'The disposition of certain infusion assets marks yet another significant step in our effort to sharpen our strategic focus by exiting ancillary product lines,' said AdaptHealth CEO, Suzanne Foster. 'Additionally, the sale advances our commitment to debt reduction to unlock value for our shareholders.' The Company used the proceeds of the disposition, and other funds, to make a prepayment of $65.0 million on its outstanding term loan. This prepayment was in addition to a previously announced $70.0 million prepayment on the term loan in May, funded primarily with proceeds from the sale of certain incontinence assets. The products included in the disposition of certain infusion assets represented approximately $52 million of annual revenue and approximately $5 million of annual Adjusted EBITDA. Additionally, the Company projects $30 million of cash taxes due on the gains from this disposition. To reflect these impacts, the Company is revising its full-year revenue guidance to a range of $3,150 million to $3,290 million, its full-year 2025 Adjusted EBITDA to a range of $662 million to $702 million, and its full-year 2025 Free Cash Flow to a range of $170 million to $190 million. About AdaptHealth Corp. AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment (HME), medical supplies, and related services. The Company provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to challenges in their activities of daily living, and thrive. Product and service offerings include (i) sleep therapy equipment, supplies, and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea, (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors and insulin pumps), (iii) HME to patients discharged from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 670 locations in 47 states. Forward-Looking Statements This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as 'believe,' 'may,' 'will,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'should,' 'would,' 'plan,' 'predict,' 'potential,' 'seem,' 'seek,' 'future,' 'outlook,' and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company's acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the Company may become subject that could interrupt or limit the Company's operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company's customers' preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company's filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company's assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Use of Non-GAAP Financial Information and Financial Guidance The Company uses Adjusted EBITDA and free cash flow, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company's ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA. The Company believes Adjusted EBITDA is useful to investors in evaluating the Company's financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements. Adjusted EBITDA should not be considered as a measure of financial performance under U.S. GAAP, and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company's liquidity. The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations. Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth's liquidity. This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company's non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company's future GAAP results. In addition, the Company's financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.
Yahoo
08-05-2025
- Business
- Yahoo
Q1 Earnings Highs And Lows: AdaptHealth (NASDAQ:AHCO) Vs The Rest Of The Senior Health, Home Health & Hospice Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at AdaptHealth (NASDAQ:AHCO) and its peers. The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success. The 7 senior health, home health & hospice stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 2.3%. Thankfully, share prices of the companies have been resilient as they are up 5.1% on average since the latest earnings results. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $777.9 million, down 1.8% year on year. This print exceeded analysts' expectations by 1.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts' EPS estimates and full-year revenue guidance slightly missing analysts' expectations. 'Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us,' said Suzanne Foster, Chief Executive Officer of AdaptHealth. AdaptHealth delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The stock is down 5.3% since reporting and currently trades at $8.24. Read our full report on AdaptHealth here, it's free. Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals. Addus HomeCare reported revenues of $337.7 million, up 20.3% year on year, falling short of analysts' expectations by 0.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with a narrow beat of analysts' sales volume estimates. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $115. Is now the time to buy Addus HomeCare? Access our full analysis of the earnings results here, it's free. With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities. Brookdale reported revenues of $813.9 million, up 4% year on year, in line with analysts' expectations. It was a slower quarter as it posted a significant miss of analysts' EPS estimates. As expected, the stock is down 2.7% since the results and currently trades at $6.61. Read our full analysis of Brookdale's results here. Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. BrightSpring Health Services reported revenues of $2.88 billion, up 11.7% year on year. This print beat analysts' expectations by 4.6%. It was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates and full-year revenue guidance exceeding analysts' expectations. BrightSpring Health Services achieved the highest full-year guidance raise among its peers. The stock is up 30.4% since reporting and currently trades at $23.32. Read our full, actionable report on BrightSpring Health Services here, it's free. With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Chemed reported revenues of $646.9 million, up 9.8% year on year. This number topped analysts' expectations by 0.8%. It was a satisfactory quarter as it also produced a decent beat of analysts' EPS estimates. The stock is down 1.6% since reporting and currently trades at $577.44. Read our full, actionable report on Chemed here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. 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Yahoo
06-05-2025
- Business
- Yahoo
AdaptHealth (NASDAQ:AHCO) Posts Better-Than-Expected Sales In Q1, Stock Jumps 13.2%
Healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.8% year on year to $777.9 million. On the other hand, the company's full-year revenue guidance of $3.25 billion at the midpoint came in 0.5% below analysts' estimates. Its GAAP loss of $0.05 per share was significantly below analysts' consensus estimates. Is now the time to buy AdaptHealth? Find out in our full research report. AdaptHealth (AHCO) Q1 CY2025 Highlights: Revenue: $777.9 million vs analyst estimates of $764.8 million (1.8% year-on-year decline, 1.7% beat) EPS (GAAP): -$0.05 vs analyst estimates of $0.03 (significant miss) Adjusted EBITDA: $127.9 million vs analyst estimates of $127.3 million (16.4% margin, in line) The company dropped its revenue guidance for the full year to $3.25 billion at the midpoint from $3.29 billion, a 1.2% decrease EBITDA guidance for the full year is $685 million at the midpoint, in line with analyst expectations Operating Margin: 3%, down from 6.4% in the same quarter last year Free Cash Flow was -$58,000 compared to -$38.86 million in the same quarter last year Market Capitalization: $1.17 billion 'Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us,' said Suzanne Foster, Chief Executive Officer of AdaptHealth. Company Overview With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, AdaptHealth's 40.1% annualized revenue growth over the last five years was incredible. Its growth beat the average healthcare company and shows its offerings resonate with customers. AdaptHealth Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. AdaptHealth's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.9% over the last two years was well below its five-year trend. AdaptHealth Year-On-Year Revenue Growth This quarter, AdaptHealth's revenue fell by 1.8% year on year to $777.9 million but beat Wall Street's estimates by 1.7%.
