001-41406 | 47-2409192 | ||||
(Commission File Number) | (IRS Employer Identification No.) | ||||
☐ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | EHAB | New York Stock Exchange |
Exhibit Number |
Description | |||||||
104 | Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document |
ENHABIT, INC. | ||||||||
By: | /s/ Dylan C. Black | |||||||
Name: | Dylan C. Black | |||||||
Title: | General Counsel |
Q1 | '23 vs. '22 | |||||||||||||||||||
($ in millions, except per share data) | 2023 | 2022 | ||||||||||||||||||
Home health net service revenue | $ | 215.8 | $ | 224.9 | (4.0)% | |||||||||||||||
Hospice net service revenue | 49.3 | 49.4 | (0.2)% | |||||||||||||||||
Total net service revenue | $ | 265.1 | $ | 274.3 | (3.4)% | |||||||||||||||
% of Revenue | % of Revenue | |||||||||||||||||||
Cost of services | 50.0% | $ | (132.6) | 47.3% | $ | (129.7) | 2.2% | |||||||||||||
Gross margin | 50.0% | 132.5 | 52.7% | 144.6 | (8.4)% | |||||||||||||||
General and administrative expenses | 40.2% | (106.7) | 35.3% | (96.9) | 10.1% | |||||||||||||||
Operating expenses | 90.2% | $ | (239.3) | 82.6% | $ | (226.6) | 5.6% | |||||||||||||
Equity earnings / noncontrolling interests | 0.5 | 0.6 | ||||||||||||||||||
Adjusted EBITDA | $ | 25.3 | $ | 47.0 | (46.2)% | |||||||||||||||
Adjusted EBITDA margin | 9.5% | 17.1% | ||||||||||||||||||
Adjusted EPS | $ | 0.09 | $ | 0.56 | (83.9)% |
Q1 | '23 vs. '22 | |||||||||||||
($ in millions) | 2023 | 2022 | ||||||||||||
Net service revenue | $ | 215.8 | $ | 224.9 | (4.0)% | |||||||||
Cost of services | 108.2 | 108.0 | 0.2% | |||||||||||
Gross margin | 49.9% | 52.0% | ||||||||||||
General and administrative expenses | $ | 62.9 | $ | 58.7 | 7.2% | |||||||||
Non-controlling interest | $ | 0.4 | $ | 0.5 | (20.0)% | |||||||||
Adjusted EBITDA | $ | 44.3 | $ | 57.7 | (23.2)% | |||||||||
% Adj. EBITDA margin | 20.5% | 25.7% | ||||||||||||
Operational metrics (Actual Amounts) | ||||||||||||||
Starts of care | ||||||||||||||
Episodic admissions | 35,032 | 38,971 | (10.1)% | |||||||||||
Non-episodic admissions | 18,911 | 14,338 | 31.9% | |||||||||||
Total admissions | 53,943 | 53,309 | 1.2% | |||||||||||
Same-store total admissions growth | —% | |||||||||||||
Episodic recertifications | 23,674 | 25,808 | (8.3)% | |||||||||||
Non-episodic recertifications | 8,104 | 5,979 | 35.5% | |||||||||||
Total recertifications | 31,778 | 31,787 | —% | |||||||||||
Same-store total recertifications growth | (0.5)% | |||||||||||||
Total starts of care | 85,721 | 85,096 | 0.7% | |||||||||||
Completed episodes | 57,827 | 63,111 | (8.4)% | |||||||||||
Revenue per episode | $ | 2,943 | $ | 3,038 | (3.1)% | |||||||||
Visits per episode | 14.8 | 15.2 | (2.6)% | |||||||||||
Total visits | 1,205,700 | 1,228,084 | (1.8)% | |||||||||||
Non-episodic visits | 351,283 | 270,253 | 30.0% | |||||||||||
Cost per visit | $ | 88 | $ | 86 | 2.3% |
Q1 | '23 vs. '22 | |||||||||||||
($ in millions) | 2023 | 2022 | ||||||||||||
Net service revenue | $ | 49.3 | $ | 49.4 | (0.2)% | |||||||||
Cost of services | 24.4 | 21.7 | 12.4% | |||||||||||
Gross margin | 50.5% | 56.1% | ||||||||||||
General and administrative expenses | $ | 16.3 | $ | 14.9 | 9.4% | |||||||||
Non-controlling interest | $ | 0.1 | $ | 0.1 | —% | |||||||||
Adjusted EBITDA | $ | 8.5 | $ | 12.7 | (33.1)% | |||||||||
% Adj. EBITDA margin | 17.2% | 25.7% | ||||||||||||
Operational metrics (Actual Amounts) | ||||||||||||||
Total admissions | 3,122 | 3,246 | (3.8)% | |||||||||||
Same-store total admissions growth | (11.3)% | |||||||||||||
Patient days | 317,027 | 319,834 | (0.9)% | |||||||||||
Discharged average length of stay | 114 | 108 | 5.6% | |||||||||||
Average daily census | 3,523 | 3,554 | (0.9)% | |||||||||||
Revenue per day | $ | 155 | $ | 154 | 0.6% | |||||||||
Cost per day | $ | 77 | $ | 68 | 13.2% |
Full-year 2023 | Guidance | |||||||
Net Service Revenue | between $1,110 and $1,140 million | |||||||
Adjusted EBITDA | between $125 and $140 million | |||||||
Adjusted EPS | between $0.50 and $0.89 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(In Millions, Except Per Share Data) | |||||||||||
Net service revenue | $ | 265.1 | $ | 274.3 | |||||||
Cost of service, excluding depreciation and amortization | 132.6 | 129.7 | |||||||||
General and administrative expenses | 110.5 | 100.7 | |||||||||
Depreciation and amortization | 7.8 | 8.5 | |||||||||
Operating income | 14.2 | 35.4 | |||||||||
Interest expense and amortization of debt discounts and fees | 9.5 | — | |||||||||
Income before income taxes and noncontrolling interests | 4.7 | 35.4 | |||||||||
Income tax expense | 1.5 | 8.7 | |||||||||
Net income | 3.2 | 26.7 | |||||||||
Less: Net income attributable to noncontrolling interests | 0.5 | 0.6 | |||||||||
Net income attributable to Enhabit, Inc. | $ | 2.7 | $ | 26.1 | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 49.8 | 49.6 | |||||||||
Diluted | 50.1 | 49.6 | |||||||||
Earnings per common share: | |||||||||||
Basic earnings per share attributable to Enhabit, Inc. common stockholders | $ | 0.05 | $ | 0.53 | |||||||
Diluted earnings per share attributable to Enhabit, Inc. common stockholders | $ | 0.05 | $ | 0.53 |
March 31, 2023 |
December 31, 2022 |
||||||||||
(In Millions) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 37.6 | $ | 22.9 | |||||||
Restricted cash | 2.0 | 4.3 | |||||||||
Accounts receivable | 156.5 | 149.6 | |||||||||
Income tax receivable | 4.3 | 11.4 | |||||||||
Prepaid expenses and other current assets | 12.2 | 23.6 | |||||||||
Total current assets | 212.6 | 211.8 | |||||||||
Property and equipment, net | 19.0 | 20.4 | |||||||||
Operating lease right-of-use assets | 45.8 | 42.0 | |||||||||
Goodwill | 1,147.5 | 1,144.8 | |||||||||
Intangible assets, net | 97.1 | 102.6 | |||||||||
Other long-term assets | 5.0 | 5.2 | |||||||||
Total assets | $ | 1,527.0 | $ | 1,526.8 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 22.7 | $ | 23.1 | |||||||
Current operating lease liabilities | 11.6 | 14.0 | |||||||||
Accounts payable | 6.2 | 3.8 | |||||||||
Accrued payroll | 47.7 | 35.5 | |||||||||
Refunds due patients and other third-party payors | 8.0 | 8.3 | |||||||||
Accrued medical insurance | 7.5 | 7.5 | |||||||||
Other current liabilities | 31.9 | 40.7 | |||||||||
Total current liabilities | 135.6 | 132.9 | |||||||||
Long-term debt, net of current portion | 549.7 | 560.0 | |||||||||
Long-term operating lease liabilities | 34.2 | 28.1 | |||||||||
Deferred income tax liabilities | 28.5 | 28.6 | |||||||||
Other long-term liabilities | 3.0 | 1.9 | |||||||||
751.0 | 751.5 | ||||||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interests | 5.1 | 5.2 | |||||||||
Stockholders’ equity: | |||||||||||
Enhabit, Inc. stockholders’ equity: | 744.3 | 741.7 | |||||||||
Noncontrolling interests | 26.6 | 28.4 | |||||||||
Total stockholders’ equity | 770.9 | 770.1 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,527.0 | $ | 1,526.8 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
(In Millions) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 3.2 | $ | 26.7 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities— | |||||||||||
Depreciation and amortization | 7.8 | 8.5 | |||||||||
Amortization of debt related costs | 0.3 | — | |||||||||
Stock-based compensation | 1.5 | 1.3 | |||||||||
Deferred tax expense (benefit) | 0.3 | (0.2) | |||||||||
Other, net | — | (0.2) | |||||||||
Changes in assets and liabilities, net of acquisitions— | |||||||||||
Accounts receivable | (6.7) | (0.1) | |||||||||
Prepaid expenses and other assets | 18.1 | (1.6) | |||||||||
Accounts payable | 2.3 | (0.6) | |||||||||
Accrued payroll | 12.2 | (1.6) | |||||||||
Other liabilities | (9.4) | 9.2 | |||||||||
Net cash provided by operating activities | 29.6 | 41.4 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of businesses, net of cash acquired | (2.8) | — | |||||||||
Purchases of property and equipment | (0.6) | (2.3) | |||||||||
Other, net | 0.2 | 0.9 | |||||||||
Net cash used in investing activities | (3.2) | (1.4) | |||||||||
Cash flows from financing activities: | |||||||||||
Principal payments on term loan | (5.0) | — | |||||||||
Payments on revolving credit facility | (5.0) | — | |||||||||
Distributions paid to noncontrolling interests of consolidated affiliates | (2.5) | (0.5) | |||||||||
Principal payments under finance lease obligations | (1.0) | (1.4) | |||||||||
Contributions from Encompass | — | 23.5 | |||||||||
Distributions to Encompass | — | (55.8) | |||||||||
Contributions from noncontrolling interests of consolidated affiliates | — | 7.4 | |||||||||
Other | (0.5) | ||||||||||
Net cash used in financing activities | (14.0) | (26.8) | |||||||||
Increase in cash, cash equivalents, and restricted cash | 12.4 | 13.2 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 27.2 | 8.0 | |||||||||
Cash, cash equivalents, and restricted cash at end of year | $ | 39.6 | $ | 21.2 | |||||||
Q1 | |||||||||||
2023 | 2022 | ||||||||||
Earnings per share, as reported | $ | 0.05 | $ | 0.53 | |||||||
Adjustments, net of tax: | |||||||||||
Income tax adjustments | 0.01 | — | |||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
0.03 | 0.03 | |||||||||
Adjusted earnings per share(2) |
$ | 0.09 | $ | 0.56 |
Q1 QTD | |||||||||||||||||||||||
2023 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
As Reported | Income Tax Adjustments | Unusual or nonrecurring items that are not typical of ongoing operations | As Adjusted | ||||||||||||||||||||
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||||
Adjusted EBITDA(1) |
$ | 25.3 | $ | — | $ | — | $ | 25.3 | |||||||||||||||
Depreciation and amortization | (7.8) | — | — | (7.8) | |||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (9.5) | — | — | (9.5) | |||||||||||||||||||
Gain on disposal of assets | — | — | — | — | |||||||||||||||||||
Stock-based compensation | (1.5) | — | — | (1.5) | |||||||||||||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
(2.3) | — | 2.3 | — | |||||||||||||||||||
Income before income tax expense | 4.2 | — | 2.3 | 6.5 | |||||||||||||||||||
Provision for income tax expense | (1.5) | 0.4 | (0.6) | (1.7) | |||||||||||||||||||
Net income attributable to Enhabit | $ | 2.7 | $ | 0.4 | $ | 1.7 | $ | 4.8 | |||||||||||||||
Diluted earnings per share(3) |
$ | 0.05 | $ | 0.01 | $ | 0.03 | $ | 0.09 | |||||||||||||||
Diluted shares used in calculation | 50.1 |
Q1 QTD | |||||||||||||||||
2022 | |||||||||||||||||
Adjustments | |||||||||||||||||
As Reported | Unusual or nonrecurring items that are not typical of ongoing operations | As Adjusted | |||||||||||||||
(In Millions, Except Per Share Amounts) | |||||||||||||||||
Adjusted EBITDA(1) |
$ | 47.0 | $ | — | $ | 47.0 | |||||||||||
Depreciation and amortization | (8.5) | — | (8.5) | ||||||||||||||
Interest expense and amortization of debt discounts and fees | — | — | — | ||||||||||||||
Gain on disposal of assets | 0.1 | — | 0.1 | ||||||||||||||
Stock-based compensation | (1.3) | — | (1.3) | ||||||||||||||
Stock-based compensation included in overhead allocation | (0.5) | — | (0.5) | ||||||||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
(2.0) | 2.0 | — | ||||||||||||||
Income before income tax expense | 34.8 | 2.0 | 36.8 | ||||||||||||||
Provision for income tax expense | (8.7) | (0.5) | (9.2) | ||||||||||||||
Net income attributable to Enhabit | $ | 26.1 | $ | 1.5 | $ | 27.6 | |||||||||||
Diluted earnings per share(3) |
$ | 0.53 | $ | 0.03 | $ | 0.56 | |||||||||||
Diluted shares used in calculation | 49.6 |
Three Months Ended March 31, |
|||||||||||
2023 | 2022 | ||||||||||
(In Millions) | |||||||||||
Net Income | $ | 3.2 | $ | 26.7 | |||||||
Income tax expense | 1.5 | 8.7 | |||||||||
Interest expense and amortization of debt discounts and fees | 9.5 | — | |||||||||
Depreciation and amortization | 7.8 | 8.5 | |||||||||
(Gain) loss on disposal or impairment of assets | — | (0.1) | |||||||||
Stock-based compensation | 1.5 | 1.3 | |||||||||
Stock-based compensation included in overhead allocation | — | 0.5 | |||||||||
Net income attributable to noncontrolling interests | (0.5) | (0.6) | |||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
2.3 | 2.0 | |||||||||
Adjusted EBITDA | $ | 25.3 | $ | 47.0 |
Three Months Ended March 31, |
|||||||||||
2023 | 2022 | ||||||||||
(In Millions) | |||||||||||
Net cash provided by operating activities | $ | 29.6 | $ | 41.4 | |||||||
Interest expense and amortization of debt discounts and fees | 9.5 | — | |||||||||
Equity in net income of nonconsolidated affiliates | — | — | |||||||||
Net income attributable to noncontrolling interests in continuing operations | (0.5) | (0.6) | |||||||||
Distributions from nonconsolidated affiliates | — | (0.2) | |||||||||
Current portion of income tax expense | 1.2 | 8.9 | |||||||||
Change in assets and liabilities | (16.5) | (5.3) | |||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
2.3 | 2.0 | |||||||||
Stock-based compensation included in overhead allocation | — | 0.5 | |||||||||
Other | (0.3) | 0.3 | |||||||||
Adjusted EBITDA | $ | 25.3 | $ | 47.0 |
Q1 | ||||||||||||||
($ in millions) | 2023 | 2022 | ||||||||||||
Net cash provided by operating activities | $ | 29.6 | $ | 41.4 | ||||||||||
Capital expenditures for maintenance | (0.6) | (2.3) | ||||||||||||
Distributions paid to noncontrolling interests of consolidated affiliates | (2.5) | (0.5) | ||||||||||||
Other working capital adjustments | (0.5) | (0.5) | ||||||||||||
Items non-indicative of ongoing operating performance: | ||||||||||||||
Stock-based compensation included in overhead allocation | — | 0.5 | ||||||||||||
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
2.3 | 2.0 | ||||||||||||
Adjusted free cash flow | $ | 28.3 | $ | 40.6 |