Enhabit Releases Investor Presentation Demonstrating Execution of Clear Growth Strategy and Path to Unlock Shareholder Value
Recent Results Demonstrate Improving Performance Despite Headwinds
Board Has Taken Decisive Actions in Light of the Challenges Faced by
Enhabit’s Proposed Board is Specifically Designed to Possess Relevant Industry and Public Company Oversight Expertise
AREX’s Proposal to Take Control of the Board is Not in the Best Interests of Stockholders
Stockholders Urged to Vote FOR Enhabit’s Director Nominees on the YELLOW Proxy Card
The Enhabit Board of Directors issued the following statement:
“The Enhabit Board and management team have successfully stabilized the business in the face of substantial industry and company-specific headwinds and positioned the Company to unlock shareholder value. As we look to the future,
As a result, AREX’s campaign threatens the recent stabilization of the business. Enhabit’s nominees, by contrast, are fit for purpose, highly engaged and focused on driving our strategy and enhancing value for all stockholders.”
Highlights of Enhabit’s presentation include:
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Enhabit’s recent performance demonstrates significant improvement in performance through key initiatives.
- The Company reported its second consecutive quarter of beating adjusted EBITDA consensus estimates and reaffirmed its full-year 2024 guidance.
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In the most recent quarter,
Enhabit reported strong growthin Home Health admissions, with non-Medicare admissions up 25%, driving total admissions growth of 5.3% year over year. - In addition, 38% of non-Medicare visits are now in payor innovation contracts at improved rates.
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In Hospice,
Enhabit reported 5.6% sequential growth in Hospice admissions in Q1 2024 earnings and disclosed sequential census growth in hospice each month of 2024 from January to May. - In Q1 2024, Enhabit’s full-time nursing candidate pool increased over 30% year-over-year and resulted in the addition of 151 net new full-time nurses.
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Enhabit’s Board has taken decisive actions in light of challenges faced since the spin-off from Encompass Health Corporation.
- Enhabit’s Board has provided oversight and guidance for the advancement of the Company’s payor innovation strategy to improve Medicare Advantage rates and increase admissions to create a strong platform for the future.
- The Board also formed a limited-time special technology committee to redefine the Company’s go-forward IT infrastructure and data / analytics strategy.
- The Board’s audit and finance committee have closely overseen the development and enhancement of Enhabit’s finance organization through a challenging operating environment
- The Board ran a comprehensive strategic review process that lasted nine months and engaged 38 potential counterparties. Having received no formal proposals, the Board unanimously determined to conclude the strategic review, but remains open to considering all potential paths to enhance stockholder value.
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Enhabit’s proposed Board is specifically designed to possess relevant industry and public company oversight expertise.
- The experience of all of Enhabit’s director nominees is directly relevant to the Company’s growth strategy and has been indispensable in overseeing management’s execution of strategic initiatives.
- Deliberate succession planning has resulted in a recently refreshed board, with only one of the nine nominees having tenure greater than two years.
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Nominees incorporate recent stockholder input, with two directors appointed in connection with a
March 2023 cooperation agreement.
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AREX’s proposal to take control of the Board threatens to destroy stockholder value.
- AREX’s demand for control of the Board jeopardizes the stability that has been achieved by the Company and the continued progress going forward.
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AREX’s slate recruitment appears to prioritize putting forth nominees who can claim nexus to the
Home Health and Hospice industry, including for short periods of time and with low levels of management authority. - AREX’s selection of its slate, intention to institute a “Transformation Committee” that presumably would function as a shadow management team, and cursory operating plan reflect its lack of understanding of the issues and the key drivers of Enhabit’s business.
The Enhabit Board of Directors is committed to acting in the best interests of stockholders and unanimously recommends that stockholders vote the YELLOW proxy card “FOR” ONLY Enhabit’s nine highly qualified nominees –
If stockholders have questions or need assistance voting their shares, please contact:
Toll-Free: 1-800-322-2885
Or
Email: Enhabit@MacKenziePartners.com
About
Forward-Looking Statements
Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and
Important Additional Information and Where to Find It
The Company has filed a definitive proxy statement on Schedule 14A and other documents with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701469738/en/
Media contact
media@ehab.com
972-338-5141
Investor relations contact
investorrelations@ehab.com
469-860-6061
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