AdaptHealth Corp. (NASDAQ: AHCO), a leading provider of patient-centered healthcare-at-home solutions, including home medical equipment and related services, unveils its financial results for the fourth quarter and fiscal year ended December 31, 2023, along with guidance for fiscal year 2024.
Introduction to AdaptHealth Corp.
AdaptHealth Corp. is a national leader in delivering comprehensive healthcare-at-home solutions to patients across the United States. With a focus on home medical equipment, medical supplies, and related services, AdaptHealth serves approximately 4.1 million patients annually.
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Key Financial Results for Fiscal Year 2023
For fiscal year 2023, AdaptHealth reported robust financial performance, characterized by:
- Net revenue of $3,200.2 million, reflecting a 7.7% increase compared to the previous year, primarily driven by non-acquired growth of 7.3%.
- Net loss attributable to AdaptHealth Corp. was $678.9 million, largely attributable to a pre-tax write-down of goodwill amounting to $830.8 million.
- Adjusted EBITDA increased to $670.8 million, marking a 13.0% increase year-over-year.
- Cash flow from operations surged to $480.7 million, representing a notable increase of 28.6%.
- Free cash flow soared to $143.2 million, compared to a negative free cash flow of $(17.6) million in the previous year.
Fourth Quarter 2023 Highlights
In the fourth quarter of 2023, AdaptHealth continued its strong performance with the following highlights:
- Net revenue reached $858.2 million, up 10.0% from the same quarter in the previous year, primarily driven by non-acquired growth of 9.7%.
- The company reported a net loss attributable to AdaptHealth Corp. of $254.5 million, mainly due to a pre-tax write-down of goodwill totaling $318.9 million.
- Adjusted EBITDA surged to $204.6 million, reflecting an impressive increase of 40.2% year-over-year.
- Cash flow from operations witnessed a substantial increase of 60.2%, reaching $155.3 million.
- Free cash flow turned positive at $66.6 million, compared to a negative free cash flow of $(46.0) million in the same quarter of the previous year.
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Fiscal Year 2024 Guidance
For fiscal year 2024, AdaptHealth Corp. provided the following financial guidance:
- Net revenue is expected to range between $3.25 billion and $3.35 billion.
- Adjusted EBITDA is projected to be in the range of $650 million to $710 million.
- Free cash flow is anticipated to range from $150 million to $180 million.
This guidance excludes any contributions from acquisitions that have not yet closed and assumes no extension of the 75/25 blended Medicare reimbursement rate adjustment in non-rural, non-competitive bid areas.
Management Commentary and Strategic Outlook
Richard Barasch, Chairman and Interim CEO of AdaptHealth, expressed satisfaction with the company’s performance, particularly in the fourth quarter of 2023.
He highlighted the record revenue of $3.2 billion and the significant increase in Adjusted EBITDA, indicating the success of strategic initiatives aimed at enhancing efficiency.
Mr. Barasch emphasized AdaptHealth’s commitment to providing essential medical equipment and supplies to millions of patients annually, supported by a dedicated workforce focused on delivering value and improving patient lives.
AdaptHealth Corp.’s robust financial performance in 2023, coupled with its optimistic guidance for fiscal year 2024, underscores its resilience and strategic focus on driving growth and value creation in the healthcare-at-home sector.
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