Company to host a conference call tomorrow,
Aug. 2, 2022 at 11 AM EDT
DALLAS, Aug. 1, 2022
/PRNewswire/ -- Enhabit Home Health & Hospice (NYSE:
EHAB), a leading home health and hospice care provider, today
reported its results of operations for the second quarter ended
June 30, 2022.
"It has been a very busy and rewarding quarter as we worked hard
in preparation of becoming an independent, publicly traded company
on July 1," Enhabit's President and
Chief Executive Officer, Barb
Jacobsmeyer said. "During the quarter, we continued to build
and strengthen our team for the long-term as we addressed the
ongoing challenging operating environment for the healthcare
industry. Despite labor challenges and inflation, we saw momentum
in our recruiting and retention efforts that will help us meet the
growing demand for our services. We remain focused on providing
high-quality, compassionate care to our patients that will
ultimately drive long-term value for all of our stakeholders."
QUARTERLY PERFORMANCE - CONSOLIDATED
Consolidated second quarter 2022 results were impacted by the
continued shift to non-episodic payor mix in the home health
segment, the partial resumption of sequestration and higher cost of
services related to labor, mileage reimbursement and fleet
costs.
- Net service revenue of $268.0
million, declined 6.3% from Q2'21
- Net income of $20.1 million, down
37.8% from Q2'21
- Adjusted EBITDA of $40.3 million,
down 30.3% from Q2'21
- Earnings per diluted share of $0.41
- Adjusted earnings per diluted share of $0.47
RECENT COMPANY HIGHLIGHTS
- Completed the spin-off from Encompass Health on July 1, 2022 to become an independent publicly
traded company on the NYSE under the ticker "EHAB"
- Continued to drive strong growth in Medicare Advantage
admissions, with non-episodic admissions up 21.5% year over
year
- Began experiencing positive growth trends in hospice admissions
late in the second quarter
- Entered into a five-year, $350
million revolving credit facility and $400 million term loan A
- Opened a de novo hospice location in Temple, Texas in May
2022; year-to-date total of three de novo hospice
locations
FINANCIAL RESULTS
Consolidated
|
|
Q2
|
'22 vs.
'21
|
|
($ in millions,
except per share data)
|
2022
|
2021
|
|
Home health net
service revenue
|
$
220.2
|
$
232.3
|
(5.2) %
|
|
Hospice net service
revenue
|
47.8
|
53.8
|
(11.2) %
|
|
Total net service
revenue
|
$
268.0
|
$
286.1
|
(6.3) %
|
|
|
|
|
|
|
|
% of
Revenue
|
|
% of
Revenue
|
|
|
|
Cost of
services
|
(48.6) %
|
$
(130.3)
|
(45.3) %
|
$
(129.6)
|
0.5 %
|
|
Gross
margin
|
51.4 %
|
137.7
|
54.7 %
|
156.5
|
(12.0) %
|
|
Administrative &
general expenses
|
(36.1) %
|
(96.7)
|
(35.0) %
|
(100.0)
|
(3.3) %
|
|
Operating
expenses
|
(84.7) %
|
$
(227.0)
|
(80.3) %
|
$
(229.6)
|
(1.1) %
|
|
|
|
|
|
|
|
Other income
|
$
—
|
$
(1.6)
|
|
|
Equity earnings /
noncontrolling interest
|
0.7
|
0.3
|
|
|
Adjusted
EBITDA
|
$
40.3
|
$
57.8
|
(30.3) %
|
|
Adjusted EBITDA
margin
|
|
15.0 %
|
|
20.2 %
|
|
|
Adjusted
EPS
|
$
0.47
|
$
0.71
|
(33.8) %
|
Consolidated revenue decreased year over year primarily due to
lower volumes in both segments, the continued shift to more
non-episodic patients in home health, and the partial resumption of
sequestration. Lower volumes year over year resulted from capacity
constraints resulting from increased usage of paid-days-off,
referral challenges resulting from the impact of rebranding on
electronic referral systems, and decreased admissions from acute
care hospitals.
Adjusted EBITDA decreased year over year primarily due to lower
revenue and higher cost of services related to labor, fleet, and
mileage reimbursement.
SEGMENT RESULTS
Home health
|
|
Q2
|
'22 vs.
'21
|
|
($ in
millions)
|
|
2022
|
2021
|
|
Net service
revenue
|
$
220.2
|
$
232.3
|
(5.2) %
|
|
Cost of
services
|
108.8
|
106.6
|
2.1 %
|
|
Gross
margin
|
50.6 %
|
54.1 %
|
|
|
Adjusted
EBITDA
|
$
53.0
|
$
63.3
|
(16.3) %
|
|
% Adj. EBITDA
margin
|
24.1 %
|
27.2 %
|
|
|
Operational metrics
(Actual Amounts)
|
|
|
|
|
Starts of
care
|
|
|
|
|
Episodic
admissions
|
36,106
|
39,657
|
(9.0) %
|
|
Non-episodic
admissions
|
13,293
|
10,941
|
21.5 %
|
|
Total
admissions
|
49,399
|
50,598
|
(2.4) %
|
|
Same-store total
admissions growth
|
|
|
(5.3) %
|
|
Episodic
recertifications
|
25,993
|
28,296
|
(8.1) %
|
|
Non-episodic
recertifications
|
6,447
|
5,498
|
17.3 %
|
|
Total
recertifications
|
32,440
|
33,794
|
(4.0) %
|
|
Same-store total
recertifications growth
|
|
|
(5.8) %
|
|
Total starts of
care
|
81,839
|
84,392
|
(3.0) %
|
|
Completed
episodes
|
62,691
|
67,839
|
(7.6) %
|
|
Revenue per
episode
|
$
2,972
|
$
2,967
|
0.2 %
|
|
Visits per
episode
|
15.0
|
15.6
|
(3.8) %
|
|
Total
visits
|
1,217,447
|
1,297,350
|
(6.2) %
|
|
Non-episodic
visits
|
275,679
|
240,006
|
14.9 %
|
|
Cost per
visit
|
$
88
|
$
80
|
10.0 %
|
The year-over-year decrease in revenue primarily was due to a
decline in total admissions, the continued shift to more
non-episodic patients and the partial resumption of sequestration.
Total admissions decreased year over year primarily due to a
reduction in episodic admissions offset by continued growth in
non-episodic admissions. Factors contributing to the decrease in
volumes included capacity constraints resulting from increased
usage of paid-days-off, referral challenges resulting from the
impact of rebranding on electronic referral systems, and decreased
admissions from acute care hospitals. Revenue per episode was
generally flat year over year as the increase in Medicare
reimbursement rates was offset by the partial resumption of
sequestration, the timing of completed episodes and patient mix
under the Patient Driven Groupings Model.
Adjusted EBITDA decreased year over year primarily due to lower
revenue and higher cost of services related to labor, fleet, and
mileage reimbursement.
Hospice
|
|
Q2
|
'22 vs.
'21
|
|
($ in
millions)
|
|
2022
|
2021
|
|
Net service
revenue
|
$
47.8
|
$
53.8
|
(11.2) %
|
|
Cost of
services
|
21.5
|
23.0
|
(6.5) %
|
|
Gross
margin
|
55.0 %
|
57.2 %
|
|
|
Adjusted
EBITDA
|
$
10.7
|
$
14.5
|
(26.2) %
|
|
% Adj. EBITDA
margin
|
22.4 %
|
27.0 %
|
|
|
Operational metrics
(Actual Amounts)
|
|
|
|
|
Total
admissions
|
2,835
|
3,298
|
(14.0) %
|
|
Same-store total
admissions growth
|
|
|
(22.1) %
|
|
Patient
days
|
313,718
|
351,878
|
(10.8) %
|
|
Discharged average
length of stay
|
109
|
115
|
(5.2) %
|
|
Average daily
census
|
3,447
|
3,867
|
(10.9) %
|
|
Revenue per
day
|
$
152
|
$
153
|
(0.7) %
|
|
Cost per
day
|
$
69
|
$
65
|
6.2 %
|
The year-over-year decrease in revenue primarily was due to the
decrease in average daily census and the partial resumption of
sequestration. Admissions decreased year over year primarily due to
capacity constraints and staffing challenges leading to a decline
in referrals. In addition, fewer patients began care relative to
the discharge rate during the second quarter of 2022.
Adjusted EBITDA decreased year over year primarily due to lower
revenue and higher cost of services related to labor, fleet,
mileage reimbursement and our use of Medalogix Muse for patient
care planning.
GUIDANCE
The Company has revised its full-year 2022 guidance to reflect
the current challenging operating environment which has resulted in
the return of volumes to be slower than
expected.
The guidance assumes an approximate $12
million impact from the resumption of sequestration and
$8 to $10
million of additional overhead costs in the back half of the
year associated with the separation from Encompass Health.
|
Full-year
2022
|
Revised
Guidance
|
Prior
Guidance
|
|
Net Service
Revenue
|
between $1,075 and
$1,110 million
|
between $1,080 and
$1,120 million
|
|
Adjusted
EBITDA
|
between $155 and $170
million
|
between $165 and $185
million
|
|
Adjusted
EPS
|
between $1.47 and
$1.75
|
between $1.64 and
$2.01
|
For additional considerations regarding the Company's 2022
guidance ranges, see the supplemental information posted on the
Company's website at http://investors.ehab.com. See also the "Other
Information" section below for an explanation of why the Company
does not provide guidance for comparable GAAP measures for Adjusted
EBITDA and adjusted earnings per share.
CONFERENCE CALL INFORMATION
The Company will host an investor conference call at
11 AM Eastern Time on Aug. 2, 2022 to discuss its results for the
second quarter of 2022. To access the live call by phone, dial
toll-free (888) 660-6150 or international (929) 203-0843; the
conference ID is 5248158. A simultaneous webcast of the call may be
accessed by visiting http://investors.ehab.com. Following the call,
a replay will be available at the same location.
For reference during the call, the company will post certain
supplemental information at http://investors.ehab.com.
ABOUT ENHABIT HOME HEALTH & HOSPICE
Enhabit Home Health & Hospice is a leading national home
health and hospice provider working to expand what's possible for
patient care in the home. The Company's team of clinicians supports
patients and their families where they are most comfortable, with a
nationwide footprint spanning 251 home health locations and 100
hospice locations across 34 states. Enhabit leverages advanced
technology and compassionate teams to deliver extraordinary patient
care. For more information, visit www.ehab.com.
OTHER INFORMATION
The information in this press release is summarized and should
be read in conjunction with the Company's Quarterly Report on Form
10-Q for the quarter ended June 30,
2022 (the "June 2022 Form
10-Q"), when filed, as well as the Company's Current Report on Form
8-K filed on August 1, 2022 (the "Q2
Earnings Release Form 8-K"), to which this press release is
attached as Exhibit 99.1. In addition, the Company will post
supplemental information today on its website at
http://investors.ehab.com for reference during its August 2, 2022 earnings call.
The financial data contained in the press release and
supplemental information includes non-GAAP financial measures as
defined in Regulation G under the Securities Exchange Act of 1934,
including Adjusted EBITDA, leverage ratios, adjusted earnings per
share, and adjusted free cash flow. Schedules are attached that
reconcile these non-GAAP financial measures to the most directly
comparable financial measures calculated and presented in
accordance with Generally Accepted Accounting Principles in
the United States. The Q2 Earnings
Release Form 8-K provides further explanation and disclosure
regarding the Company's use of non-GAAP financial measures and
should be read in conjunction with this supplemental
information.
Excluding net operating revenue, the Company does not provide
guidance on a GAAP basis because it is unable to predict, with
reasonable certainty, the future impact of items that are deemed to
be outside the control of the Company or otherwise non-indicative
of its ongoing operating performance. Such items include gains or
losses related to hedging instruments; loss on early extinguishment
of debt; adjustments to its income tax provision (such as valuation
allowance adjustments and settlements of income tax claims); items
related to corporate and facility restructurings; and certain other
items the Company believes to be non-indicative of its ongoing
operations. These items cannot be reasonable predicted and will
depend on several factors, including industry and market
conditions, and could be material to the Company's results computed
in accordance with GAAP.
However, the following reasonably estimable GAAP measures for
2022 would be included in a reconciliation for Adjusted EBITDA if
the other reconciling GAAP measures could be reasonably
predicted:
- Interest expense and amortization of debt discounts and fees -
estimate of $11.2 million to
$15.2 million
- Amortization of debt-related items - approximately $1.3 million
The Q2 Earnings Form 8-K and, when filed, the June 2022 Form 10-Q can be found on the Company's
website at http://investors.ehab.com and the SEC's website at
www.sec.gov.
|
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Statements of
Income
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In Millions, Except
Per Share Data)
|
|
Net service
revenue
|
$
268.0
|
|
$
286.1
|
|
$
542.3
|
|
$
556.6
|
|
Cost of service
(excluding depreciation and
amortization)
|
130.3
|
|
129.6
|
|
260.0
|
|
254.2
|
|
Gross
margin
|
137.7
|
|
156.5
|
|
282.3
|
|
302.4
|
|
General and
administrative expenses
|
102.2
|
|
105.7
|
|
202.9
|
|
205.6
|
|
Depreciation and
amortization
|
8.2
|
|
9.4
|
|
16.7
|
|
18.5
|
|
Operating
income
|
27.3
|
|
41.4
|
|
62.7
|
|
78.3
|
|
Interest expense and
amortization of debt discounts and fees
|
0.1
|
|
—
|
|
0.1
|
|
0.1
|
|
Equity in net income of
nonconsolidated affiliates
|
—
|
|
(0.2)
|
|
—
|
|
(0.4)
|
|
Other income
|
—
|
|
(1.6)
|
|
—
|
|
(1.6)
|
|
Income before income
taxes and noncontrolling interests
|
27.2
|
|
43.2
|
|
62.6
|
|
80.2
|
|
Income tax
expense
|
6.4
|
|
10.4
|
|
15.1
|
|
19.1
|
|
Net
income
|
20.8
|
|
32.8
|
|
47.5
|
|
61.1
|
|
Less: Net income
attributable to noncontrolling interests
|
0.7
|
|
0.5
|
|
1.3
|
|
0.9
|
|
Net income
attributable to Enhabit, Inc
|
$
20.1
|
|
$
32.3
|
|
$
46.2
|
|
$
60.2
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
49.6
|
|
49.6
|
|
49.6
|
|
49.6
|
|
Diluted
|
49.6
|
|
49.6
|
|
49.6
|
|
49.6
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Enhabit,
Inc. common stockholders
|
$
0.41
|
|
$
0.65
|
|
$
0.93
|
|
$
1.21
|
|
Diluted earnings per
share attributable to
Enhabit, Inc. common stockholders
|
$
0.41
|
|
$
0.65
|
|
$
0.93
|
|
$
1.21
|
|
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Balance
Sheets
(Unaudited)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(In
Millions)
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
50.2
|
|
$
5.4
|
|
Restricted
cash
|
3.5
|
|
2.6
|
|
Accounts
receivable
|
154.6
|
|
164.5
|
|
Prepaid expenses and
other current assets
|
9.2
|
|
6.3
|
|
Total current
assets
|
217.5
|
|
178.8
|
|
Property and equipment,
net
|
22.7
|
|
20.4
|
|
Operating lease
right-of-use assets
|
43.3
|
|
48.4
|
|
Goodwill
|
1,217.7
|
|
1,189.0
|
|
Intangible assets,
net
|
111.6
|
|
259.1
|
|
Other long-term
assets
|
8.6
|
|
24.3
|
|
Total
assets
|
$
1,621.4
|
|
$
1,720.0
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
23.6
|
|
$
5.0
|
|
Current operating
lease liabilities
|
14.3
|
|
14.9
|
|
Accounts
payable
|
2.8
|
|
3.5
|
|
Accrued
payroll
|
72.8
|
|
66.4
|
|
Refunds due patients
and other third-party payors
|
10.8
|
|
9.4
|
|
Income tax
payable
|
—
|
|
4.2
|
|
Accrued medical
insurance
|
7.2
|
|
8.3
|
|
Other current
liabilities
|
22.9
|
|
24.8
|
|
Total current
liabilities
|
154.4
|
|
136.5
|
|
Long-term debt, net of
current portion
|
550.3
|
|
3.5
|
|
Long-term operating
lease liabilities
|
29.1
|
|
33.5
|
|
Deferred income tax
liabilities
|
31.7
|
|
63.2
|
|
765.5
|
|
236.7
|
|
Commitments and
contingencies
|
|
|
|
|
Redeemable
noncontrolling interests
|
5.2
|
|
5.0
|
|
Stockholders'
equity:
|
|
|
|
|
Enhabit, Inc
stockholders' equity:
|
|
|
|
|
Total Enhabit, Inc
stockholders' equity
|
822.3
|
|
1,470.0
|
|
Noncontrolling
interests
|
28.4
|
|
8.3
|
|
Total stockholders'
equity
|
850.7
|
|
1,478.3
|
|
Total liabilities
and stockholders' equity
|
$
1,621.4
|
|
$
1,720.0
|
|
Enhabit, Inc. and Subsidiaries
Condensed Consolidated Cash
Flows
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
(In
Millions)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
47.5
|
|
$
61.1
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities—
|
|
|
|
|
Depreciation and
amortization
|
16.7
|
|
18.5
|
|
Equity in net income
of nonconsolidated affiliates
|
—
|
|
(0.4)
|
|
Distributions from
nonconsolidated affiliates
|
—
|
|
0.2
|
|
Stock-based
compensation
|
2.5
|
|
1.8
|
|
Deferred tax (benefit)
expense
|
(1.4)
|
|
0.9
|
|
Other, net
|
(0.6)
|
|
(2.1)
|
|
Changes in assets and
liabilities, net of acquisitions—
|
|
|
|
|
Accounts
receivable
|
13.4
|
|
(28.0)
|
|
Prepaid expenses and
other assets
|
(2.7)
|
|
(0.8)
|
|
Accounts
payable
|
(0.8)
|
|
(1.0)
|
|
Accrued
payroll
|
6.2
|
|
19.9
|
|
Other
liabilities
|
(5.8)
|
|
23.5
|
|
Net cash provided by
operating activities
|
75.0
|
|
93.6
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
(97.7)
|
|
Purchases of property
and equipment
|
(4.5)
|
|
(2.1)
|
|
Additions to
capitalized software costs
|
(0.5)
|
|
(1.0)
|
|
Other, net
|
1.5
|
|
2.5
|
|
Net cash used in
investing activities
|
(3.5)
|
|
(98.3)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Principal borrowings
on notes
|
400.0
|
|
—
|
|
Principal payments on
debt
|
(0.4)
|
|
—
|
|
Borrowings on
revolving credit fiacility
|
170.0
|
|
—
|
|
Principal payments
under finance lease obligations
|
(2.6)
|
|
(3.7)
|
|
Debt issuance
costs
|
(4.4)
|
|
—
|
|
Distributions paid to
noncontrolling interests of consolidated affiliates
|
(0.7)
|
|
(1.3)
|
|
Contributions from
Encompass
|
59.8
|
|
83.7
|
|
Distributions to
Encompass
|
(654.9)
|
|
(74.3)
|
|
Contributions from
noncontrolling interests of consolidated affiliates
|
7.4
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
(25.8)
|
|
4.4
|
|
Increase (decrease)
in cash, cash equivalents, and restricted cash
|
45.7
|
|
(0.3)
|
|
Cash, cash
equivalents, and restricted cash at beginning of
year
|
8.0
|
|
40.0
|
|
Cash, cash
equivalents, and restricted cash at end of year
|
$
53.7
|
|
$
39.7
|
|
|
|
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
|
|
|
Q2
|
|
6
Months
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Earnings per share,
as reported
|
$
0.41
|
|
$
0.65
|
|
$
0.93
|
|
$
1.21
|
|
Adjustments, net of
tax:
|
|
|
|
|
|
|
|
|
Income tax
adjustments
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
Transaction
costs
|
0.06
|
|
0.06
|
|
0.09
|
|
0.07
|
|
Adjusted earnings
per share*
|
$
0.47
|
|
$
0.71
|
|
$
1.02
|
|
$
1.28
|
|
* Adjusted
EPS may not sum due to rounding.
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
|
|
|
Q2
QTD
|
|
2022
|
|
|
|
Adjustments
|
|
|
As
Reported
|
|
Transaction
Costs
|
|
As
Adjusted
|
|
(In Millions, Except
Per Share Amounts)
|
|
Adjusted
EBITDA*
|
$
40.3
|
|
$
—
|
|
$
40.3
|
|
Depreciation and
amortization
|
(8.2)
|
|
—
|
|
(8.2)
|
|
Interest expense and
amortization of debt discounts and fees
|
(0.1)
|
|
—
|
|
(0.1)
|
|
Loss on disposal or
impairment of assets
|
0.4
|
|
—
|
|
0.4
|
|
Stock-based
compensation
|
(1.2)
|
|
—
|
|
(1.2)
|
|
Stock-based
compensation included in overhead allocation
|
(0.6)
|
|
—
|
|
(0.6)
|
|
Transaction
costs
|
(4.1)
|
|
4.1
|
|
—
|
|
Income before
income tax expense
|
26.5
|
|
4.1
|
|
30.6
|
|
Provision for income
tax expense
|
(6.4)
|
|
(1.0)
|
|
(7.4)
|
|
Net income
attributable to Enhabit
|
$
20.1
|
|
$
3.1
|
|
$
23.2
|
|
Diluted earnings per
share**
|
$
0.41
|
|
$
0.06
|
|
$
0.47
|
|
Diluted shares used
in calculation
|
49.6
|
|
|
|
|
|
*
Reconciliation to GAAP provided on page 14
|
|
**
Adjusted EPS may not sum due to rounding.
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
|
|
|
Q2
QTD
|
|
2021
|
|
|
|
Adjustments
|
|
|
As
Reported
|
|
Income Tax
Adjustments
|
|
Transaction
Costs
|
|
As
Adjusted
|
|
(In Millions, Except
Per Share Amounts)
|
|
Adjusted
EBITDA*
|
$
57.8
|
|
$
—
|
|
$
—
|
|
$
57.8
|
|
Depreciation and
amortization
|
(9.4)
|
|
—
|
|
—
|
|
(9.4)
|
|
Loss on disposal or
impairment of assets
|
0.4
|
|
—
|
|
—
|
|
0.4
|
|
Stock-based
compensation
|
(1.2)
|
|
—
|
|
—
|
|
(1.2)
|
|
Stock-based
compensation included in overhead allocation
|
(0.9)
|
|
—
|
|
—
|
|
(0.9)
|
|
Transaction
costs
|
(4.0)
|
|
—
|
|
4.0
|
|
—
|
|
Income before
income tax expense
|
42.7
|
|
—
|
|
4.0
|
|
46.7
|
|
Provision for income
tax expense
|
(10.4)
|
|
(0.1)
|
|
(1.0)
|
|
(11.5)
|
|
Net income
attributable to Enhabit
|
$
32.3
|
|
$
(0.1)
|
|
$
3.0
|
|
$
35.2
|
|
Diluted earnings per
share**
|
$
0.65
|
|
$
—
|
|
$
0.06
|
|
$
0.71
|
|
Diluted shares used
in calculation
|
49.6
|
|
|
|
|
|
|
|
*
Reconciliation to GAAP provided on page 14
|
|
**
Adjusted EPS may not sum due to rounding.
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
|
|
|
Q2
YTD
|
|
2022
|
|
|
|
Adjustments
|
|
|
As
Reported
|
|
Transaction
Costs
|
|
As
Adjusted
|
|
(In Millions, Except
Per Share Amounts)
|
|
Adjusted
EBITDA*
|
$
87.3
|
|
$
—
|
|
$
87.3
|
|
Depreciation and
amortization
|
(16.7)
|
|
—
|
|
(16.7)
|
|
Interest expense and
amortization of debt discounts and fees
|
(0.1)
|
|
—
|
|
(0.1)
|
|
Loss on disposal or
impairment of assets
|
0.5
|
|
—
|
|
0.5
|
|
Stock-based
compensation
|
(2.5)
|
|
—
|
|
(2.5)
|
|
Stock-based
compensation included in overhead allocation
|
(1.1)
|
|
—
|
|
(1.1)
|
|
Transaction
costs
|
(6.1)
|
|
6.1
|
|
—
|
|
Income before
income tax expense
|
61.3
|
|
6.1
|
|
67.4
|
|
Provision for income
tax expense
|
(15.1)
|
|
(1.5)
|
|
(16.6)
|
|
Net income
attributable to Enhabit
|
$
46.2
|
|
$
4.6
|
|
$
50.8
|
|
Diluted earnings per
share**
|
$
0.93
|
|
$
0.09
|
|
$
1.02
|
|
Diluted shares used
in calculation
|
49.6
|
|
|
|
|
|
*
Reconciliation to GAAP provided on page 14
|
|
**
Adjusted EPS may not sum due to rounding.
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
|
|
|
Q2
YTD
|
|
2021
|
|
|
|
Adjustments
|
|
|
As
Reported
|
|
Income Tax
Adjustments
|
|
Transaction
Costs
|
|
As
Adjusted
|
|
(In Millions, Except
Per Share Amounts)
|
|
Adjusted
EBITDA*
|
$
105.0
|
|
$
—
|
|
$
—
|
|
$
105.0
|
|
Depreciation and
amortization
|
(18.5)
|
|
—
|
|
—
|
|
(18.5)
|
|
Interest expense and
amortization of debt discounts and fees
|
(0.1)
|
|
—
|
|
—
|
|
(0.1)
|
|
Loss on disposal or
impairment of assets
|
0.5
|
|
—
|
|
—
|
|
0.5
|
|
Stock-based
compensation
|
(1.8)
|
|
—
|
|
—
|
|
(1.8)
|
|
Stock-based
compensation included in overhead allocation
|
(1.1)
|
|
—
|
|
—
|
|
(1.1)
|
|
Transaction
costs
|
(4.7)
|
|
—
|
|
4.7
|
|
—
|
|
Income before
income tax expense
|
79.3
|
|
—
|
|
4.7
|
|
84.0
|
|
Provision for income
tax expense
|
(19.1)
|
|
(0.3)
|
|
(1.2)
|
|
(20.6)
|
|
Net income
attributable to Enhabit
|
$
60.2
|
|
$
(0.3)
|
|
$
3.5
|
|
$
63.4
|
|
Diluted earnings per
share**
|
$
1.21
|
|
$
(0.01)
|
|
$
0.07
|
|
$
1.28
|
|
Diluted shares used
in calculation
|
49.6
|
|
|
|
|
|
|
|
*
Reconciliation to GAAP provided on page 14
|
|
**
Adjusted EPS may not sum due to rounding.
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Income to Adjusted
EBITDA
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In
Millions)
|
|
Net
Income
|
$
20.8
|
|
$
32.8
|
|
$
47.5
|
|
$
61.1
|
|
Income tax
expense
|
6.4
|
|
10.4
|
|
15.1
|
|
19.1
|
|
Interest expense and
amortization of debt
discounts and fees
|
0.1
|
|
—
|
|
0.1
|
|
0.1
|
|
Depreciation and
amortization
|
8.2
|
|
9.4
|
|
16.7
|
|
18.5
|
|
Loss on disposal or
impairment of assets
|
(0.4)
|
|
(0.4)
|
|
(0.5)
|
|
(0.5)
|
|
Stock-based
compensation
|
1.2
|
|
1.2
|
|
2.5
|
|
1.8
|
|
Stock-based
compensation included in
overhead allocation
|
0.6
|
|
0.9
|
|
1.1
|
|
1.1
|
|
Net income attributable
to noncontrolling
interests
|
(0.7)
|
|
(0.5)
|
|
(1.3)
|
|
(0.9)
|
|
Transaction
costs
|
4.1
|
|
4.0
|
|
6.1
|
|
4.7
|
|
Adjusted
EBITDA
|
$
40.3
|
|
$
57.8
|
|
$
87.3
|
|
$
105.0
|
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In
Millions)
|
|
Net cash provided by
operating activities
|
$
33.6
|
|
$
73.2
|
|
$
75.0
|
|
$
93.6
|
|
Interest expense and
amortization of debt
discounts and fees
|
0.1
|
|
—
|
|
0.1
|
|
0.1
|
|
Equity in net income of
nonconsolidated affiliates
|
—
|
|
0.2
|
|
—
|
|
0.4
|
|
Net income attributable
to noncontrolling interests
in continuing operations
|
(0.7)
|
|
(0.5)
|
|
(1.3)
|
|
(0.9)
|
|
Distributions from
nonconsolidated affiliates
|
—
|
|
(0.1)
|
|
—
|
|
(0.2)
|
|
Current portion of
income tax expense
|
7.6
|
|
10.1
|
|
16.5
|
|
18.2
|
|
Change in assets and
liabilities
|
(5.0)
|
|
(31.6)
|
|
(10.3)
|
|
(13.6)
|
|
Transaction
costs
|
4.1
|
|
4.0
|
|
6.1
|
|
4.7
|
|
Stock-based
compensation included in overhead
allocation
|
0.6
|
|
0.9
|
|
1.1
|
|
1.1
|
|
Other
|
—
|
*
|
1.6
|
*
|
0.1
|
*
|
1.6
|
|
Adjusted
EBITDA
|
$
40.3
|
|
$
57.8
|
|
$
87.3
|
|
$
105.0
|
|
Enhabit, Inc. and Subsidiaries
Supplemental Information
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted Free Cash Flow
|
|
|
|
Q2
|
|
6
Months
|
|
($ in
millions)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net cash provided by
operating activities
|
|
$
33.6
|
|
$
73.2
|
|
$
75.0
|
|
$
93.6
|
|
Capital expenditures
for maintenance
|
|
(0.3)
|
|
(2.2)
|
|
(2.6)
|
|
(3.1)
|
|
Distributions paid to
noncontrolling interests
of consolidated affiliates
|
|
(0.2)
|
|
(1.0)
|
|
(0.7)
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
Items non-indicative
of ongoing operating
performance:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in
overhead allocation
|
|
0.6
|
|
0.9
|
|
1.1
|
|
1.1
|
|
Transaction costs and
related assumed
liabilities
|
|
3.7
|
|
3.1
|
|
5.2
|
|
3.1
|
|
Adjusted free cash
flow
|
|
$
37.4
|
|
$
74.0
|
|
$
78.0
|
|
$
93.4
|
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not
historical facts, such as those relating to future events,
projections, financial guidance, legislative or regulatory
developments, strategy or growth opportunities, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All such estimates, projections, and
forward-looking information speak only as of the date hereof, and
Enhabit undertakes no duty to publicly update or revise such
forward-looking information, whether as a result of new
information, future events, or otherwise. Such forward-looking
statements are necessarily estimates based upon current information
and involve a number of risks and uncertainties. Actual events or
results may differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors.
While it is impossible to identify all such factors, factors which
could cause actual events or results to differ materially from
those estimated by Enhabit include, but are not limited to, our
ability to execute on our strategic plans, regulatory and other
developments impacting the markets for our services, changes in
reimbursement rates, general economic conditions, our ability to
attract and retain key management personnel and healthcare
professionals, the impact of the ongoing COVID-19 pandemic,
potential disruptions or breaches of our or our vendors'
information systems, the outcome of litigation, our ability to
successfully complete and integrate de novo developments,
acquisitions, investments, and joint ventures, our ability to
control costs, particularly labor and employee benefit costs, and
other factors which may be identified from time to time in
Enhabit's SEC filings and other public announcements, including
Enhabit's Form 10 Registration Statement filed on May 25,
2022, as amended on June 9, 2022 and
June 14, 2022 and Form 10-Q for the
quarter ended June 30, 2022, when
filed.
Investor Relations
Contact
Jennifer
Hills
469-621-6496
jennifer.hills@ehab.com
Media Contact
Erin Volbeda
214.239.6520
Erin.Volbeda@ehab.com
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SOURCE Enhabit Home Health & Hospice