Enhabit Reports Fourth Quarter 2025 Financial Results
“Our fourth quarter 2025 results capped a pivotal year for
QUARTERLY PERFORMANCE - CONSOLIDATED
-
Net service revenue of
$270.4 million -
Net loss attributable to
Enhabit, Inc. of$38.7 million -
Adjusted EBITDA of
$28.0 million -
Diluted loss per share of
$0.76 -
Adjusted diluted earnings per share of
$0.14
RECENT COMPANY HIGHLIGHTS
-
Announced entry into a definitive agreement (the "Merger Agreement") to be acquired by
Kinderhook Industries, LLC ("Kinderhook") for$13.80 per share. -
On
Feb. 26, 2026 , the company entered into an amended and restated credit agreement with a maturity date ofFebruary 2031 that consists of a$315.0 million senior secured term loan A facility and a$160.0 million senior secured revolving credit facility. - Home health year-over-year admissions growth of 7.3% with non-Medicare admissions growth of 16.0%; 8.1% total admission growth when normalized for branches closed in 2025.
- Home health average daily census (ADC) growth of 6.4% compared to prior year; continued stabilization of Medicare ADC decline, down 4.0% year over year and 1.7% sequentially.
- Home health cost per patient day decreased 3.5% year over year.
-
Hospice ADC grew 9.9% year over year.
- ADC increased sequentially every quarter since Q1 2024.
- Hospice admissions increased 0.8% year over year; 3% when normalized for branches closed in 2025.
-
Hospice net service revenue of
$63.6 million ; Adjusted EBITDA increased 2.3% year over year. - Hospice cost per patient day increased 0.6% year over year.
-
Total net service revenue of
$270.4 million ; consolidated Adjusted EBITDA grew 11.6% year over year and 3.7% sequentially to$28.0 million . - Opened four de novo locations in Q4 2025; 10 total de novo locations in 2025.
-
Consistent de-levering of balance sheet with the eighth straight quarter of debt prepayment, inclusive of an additional
$20.0 million prepayment made in Q1 of 2026.$125.0 million reduction in total bank debt from Q4 2023 resulting in an annualized$22 million cash interest savings.-
Reduced bank debt by
$15.0 million in the fourth quarter, yielding a leverage ratio of 3.7x.
TRANSACTION WITH KINDERHOOK
As previously announced on
As previously disclosed, given the pending Merger,
FINANCIAL RESULTS
Consolidated
|
($ in millions, except per share data) |
Q4 |
'25 vs. '24 |
||||||||||
|
2025 |
2024 |
|||||||||||
|
Home health net service revenue |
$ |
206.8 |
|
$ |
200.4 |
|
3.2 |
% |
||||
|
Hospice net service revenue |
|
63.6 |
|
|
57.8 |
|
10.0 |
% |
||||
|
Total net service revenue |
$ |
270.4 |
|
$ |
258.2 |
|
4.7 |
% |
||||
|
|
% of revenue |
|
% of revenue |
|
|
|||||||
|
Cost of service |
51.3 |
% |
$ |
138.7 |
|
51.5 |
% |
$ |
133.1 |
|
4.2 |
% |
|
Gross margin |
48.7 |
% |
|
131.7 |
|
48.5 |
% |
|
125.1 |
|
5.3 |
% |
|
General and administrative expenses |
38.2 |
% |
|
103.2 |
|
38.7 |
% |
|
99.8 |
|
3.4 |
% |
|
Total operating expenses |
89.5 |
% |
$ |
241.9 |
|
90.2 |
% |
$ |
232.9 |
|
3.9 |
% |
|
Other income |
|
(0.1 |
) |
|
— |
|
|
|||||
|
Net income attributable to noncontrolling interests |
$ |
0.4 |
|
$ |
0.2 |
|
|
|||||
|
Adjusted EBITDA(1) |
$ |
28.0 |
|
$ |
25.1 |
|
11.6 |
% |
||||
|
Adjusted EBITDA margin(1) |
|
10.4 |
% |
|
9.7 |
% |
|
|||||
|
Impairment of goodwill |
$ |
44.7 |
|
$ |
53.8 |
|
(16.9 |
)% |
||||
|
Net income (loss) attributable to |
$ |
(38.7 |
) |
$ |
(46.0 |
) |
15.9 |
% |
||||
|
Reported diluted EPS |
$ |
(0.76 |
) |
$ |
(0.92 |
) |
(17.4 |
)% |
||||
|
Adjusted diluted EPS(1) |
$ |
0.14 |
|
$ |
0.04 |
|
250.0 |
% |
||||
|
General and administrative expenses in the above table exclude: |
||||||||||||
|
Loss (gain) on disposal of assets |
$ |
0.1 |
|
$ |
(0.2 |
) |
|
|||||
|
Stock-based compensation expense |
$ |
6.8 |
|
$ |
3.9 |
|
|
|||||
|
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
$ |
1.1 |
|
$ |
1.1 |
|
|
|||||
|
(1) See reconciliation of GAAP to Non-GAAP measures. |
||||||||||||
|
(2) Unusual or nonrecurring items in the three months ended |
||||||||||||
|
SEGMENT RESULTS |
||||||||
|
Home health |
||||||||
|
($ in millions) |
Q4 |
'25 vs. '24 |
||||||
|
2025 |
2024 |
|||||||
|
Net service revenue: |
|
|
|
|||||
|
Medicare |
$ |
111.6 |
|
$ |
117.3 |
|
(4.9 |
)% |
|
Non-Medicare |
|
93.4 |
|
|
80.8 |
|
15.6 |
% |
|
Private duty(1) |
|
1.8 |
|
|
2.3 |
|
(21.7 |
)% |
|
Home health net service revenue |
|
206.8 |
|
|
200.4 |
|
3.2 |
% |
|
Cost of service |
|
108.2 |
|
|
105.5 |
|
2.6 |
% |
|
Gross margin |
|
47.7 |
% |
|
47.4 |
% |
|
|
|
General and administrative expenses |
|
61.3 |
|
|
59.1 |
|
3.7 |
% |
|
Net income attributable to noncontrolling interests |
|
0.3 |
|
|
0.3 |
|
— |
% |
|
Segment Adjusted EBITDA(2) |
$ |
37.0 |
|
$ |
35.5 |
|
4.2 |
% |
|
Segment Adjusted EBITDA margin(2) |
|
17.9 |
% |
|
17.7 |
% |
|
|
|
Operational metrics (actual amounts) |
|
|||||||
|
Medicare: |
|
|
|
|||||
|
Admissions |
|
22,196 |
|
|
23,121 |
|
(4.0 |
)% |
|
Recertifications |
|
15,203 |
|
|
16,300 |
|
(6.7 |
)% |
|
Completed episodes |
|
38,077 |
|
|
39,104 |
|
(2.6 |
)% |
|
Average daily census |
|
19,030 |
|
|
19,818 |
|
(4.0 |
)% |
|
Visits |
|
490,281 |
|
|
560,002 |
|
(12.5 |
)% |
|
Visits per episode |
|
12.9 |
|
|
14.3 |
|
(9.8 |
)% |
|
Revenue per episode |
$ |
2,931 |
|
$ |
3,000 |
|
(2.3 |
)% |
|
Non-Medicare: |
|
|
|
|||||
|
Admissions |
|
34,582 |
|
|
29,810 |
|
16.0 |
% |
|
Recertifications |
|
14,840 |
|
|
13,541 |
|
9.6 |
% |
|
Average daily census |
|
23,294 |
|
|
19,968 |
|
16.7 |
% |
|
Visits |
|
574,023 |
|
|
533,618 |
|
7.6 |
% |
|
Total: |
|
|
|
|||||
|
Admissions |
|
56,778 |
|
|
52,931 |
|
7.3 |
% |
|
Same-store total admissions growth |
|
|
7.2 |
% |
||||
|
Recertifications |
|
30,043 |
|
|
29,841 |
|
0.7 |
% |
|
Same-store total recertifications growth |
|
|
0.7 |
% |
||||
|
Average daily census |
|
42,324 |
|
|
39,786 |
|
6.4 |
% |
|
Visits |
|
1,064,304 |
|
|
1,093,620 |
|
(2.7 |
)% |
|
Visits per episode |
|
12.5 |
|
|
13.9 |
|
(10.1 |
)% |
|
Cost per visit |
$ |
102 |
|
$ |
95 |
|
7.1 |
% |
|
Revenue per patient day |
$ |
53.1 |
|
$ |
54.7 |
|
(2.9 |
)% |
|
Cost per patient day |
$ |
27.8 |
|
$ |
28.8 |
|
(3.5 |
)% |
|
(1) Private duty represents long-term comprehensive hourly nursing medical care. |
||||||||
|
(2) See reconciliation of GAAP to Non-GAAP measures. |
||||||||
|
Hospice |
||||||||
|
($ in millions) |
Q4 |
'25 vs. '24 |
||||||
|
2025 |
2024 |
|||||||
|
Net service revenue |
$ |
63.6 |
|
$ |
57.8 |
|
10.0 |
% |
|
Cost of service |
|
30.5 |
|
|
27.6 |
|
10.5 |
% |
|
Gross margin |
|
52.0 |
% |
|
52.2 |
% |
|
|
|
General and administrative expenses |
|
19.4 |
|
|
17.0 |
|
14.1 |
% |
|
Net income attributable to noncontrolling interests |
|
0.1 |
|
|
(0.1 |
) |
|
|
|
Segment Adjusted EBITDA(1) |
$ |
13.6 |
|
$ |
13.3 |
|
2.3 |
% |
|
Segment Adjusted EBITDA margin(1) |
|
21.4 |
% |
|
23.0 |
% |
|
|
|
Operational metrics (actual amounts) |
|
|
|
|||||
|
Total admissions |
|
3,083 |
|
|
3,059 |
|
0.8 |
% |
|
Same-store total admissions growth |
|
|
(0.1 |
)% |
||||
|
Patient days |
|
377,112 |
|
|
343,063 |
|
9.9 |
% |
|
Discharged average length of stay |
|
110 |
|
|
110 |
|
— |
% |
|
Average daily census |
|
4,099 |
|
|
3,729 |
|
9.9 |
% |
|
Revenue per patient day |
$ |
168.7 |
|
$ |
168.6 |
|
0.1 |
% |
|
Cost per patient day |
$ |
80.9 |
|
$ |
80.4 |
|
0.6 |
% |
|
(1) See reconciliation of GAAP to Non-GAAP measures. |
||||||||
ABOUT ENHABIT HOME HEALTH & HOSPICE
OTHER INFORMATION
Note regarding presentation and reconciliation of non-GAAP financial measures
The financial data contained in this press release and supplemental information includes non-GAAP (generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, Adjusted EPS, and Adjusted free cash flow. For 2025, the Company has modified its methodology of calculating Adjusted free cash flow to exclude the impact of unusual or nonrecurring items on cash income taxes and changes in working capital. The change was made to conform to the Adjusted free cash flow measure with the current definition used by management and the Board of Directors to manage cash flow and evaluate performance. Prior periods presented herein have been recast to conform with the new methodology.
The Company believes the non-GAAP financial measures are useful to investors because they facilitate evaluation of core business operating results over multiple periods unaffected by differences in unusual or nonrecurring items. See “Supplemental Non-GAAP Information” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Additionally, our Form 10-K for the year ended
Note regarding presentation of same-store comparisons
The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.
|
|
|||||||||||||||
|
Condensed Consolidated Statements of Income |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
($ in millions, except per share data) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net service revenue |
$ |
270.4 |
|
|
$ |
258.2 |
|
|
$ |
1,060.0 |
|
|
$ |
1,034.8 |
|
|
Cost of service, excluding depreciation and amortization |
|
138.7 |
|
|
|
133.1 |
|
|
|
540.2 |
|
|
|
530.8 |
|
|
General and administrative expenses |
|
112.3 |
|
|
|
104.6 |
|
|
|
433.5 |
|
|
|
425.9 |
|
|
Depreciation and amortization |
|
5.0 |
|
|
|
7.9 |
|
|
|
22.5 |
|
|
|
31.5 |
|
|
Impairment of goodwill |
|
44.7 |
|
|
|
53.8 |
|
|
|
44.7 |
|
|
|
161.7 |
|
|
Impairment of intangible assets |
|
3.0 |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
|
Operating income (loss) |
|
(33.3 |
) |
|
|
(41.2 |
) |
|
|
16.1 |
|
|
|
(115.1 |
) |
|
Interest income |
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
Interest expense and amortization of debt discounts and fees |
|
7.6 |
|
|
|
10.1 |
|
|
|
34.0 |
|
|
|
42.9 |
|
|
Other (income) expense |
|
0.1 |
|
|
|
— |
|
|
|
(19.1 |
) |
|
|
— |
|
|
Income (loss) before income taxes and noncontrolling interests |
|
(40.8 |
) |
|
|
(51.3 |
) |
|
|
1.4 |
|
|
|
(158.0 |
) |
|
Provision for (benefit from) income taxes |
|
(2.5 |
) |
|
|
(5.5 |
) |
|
|
4.0 |
|
|
|
(4.0 |
) |
|
Net income (loss) |
|
(38.3 |
) |
|
|
(45.8 |
) |
|
|
(2.6 |
) |
|
|
(154.0 |
) |
|
Less: Net income attributable to noncontrolling interests |
|
0.4 |
|
|
|
0.2 |
|
|
|
2.0 |
|
|
|
2.2 |
|
|
Net income (loss) attributable to |
$ |
(38.7 |
) |
|
$ |
(46.0 |
) |
|
$ |
(4.6 |
) |
|
$ |
(156.2 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
50.7 |
|
|
|
50.2 |
|
|
|
50.8 |
|
|
|
50.2 |
|
|
Diluted |
|
50.7 |
|
|
|
50.2 |
|
|
|
50.8 |
|
|
|
50.2 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
|
Basic earnings (loss) per share attributable to |
$ |
(0.76 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.09 |
) |
|
$ |
(3.11 |
) |
|
Diluted earnings (loss) per share attributable to |
$ |
(0.76 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.09 |
) |
|
$ |
(3.11 |
) |
|
|
|||||
|
Condensed Consolidated Balance Sheets |
|||||
|
(Unaudited) |
|||||
|
($ in millions) |
|
|
|
||
|
Assets |
|
|
|
||
|
Current assets: |
|
|
|
||
|
Cash and cash equivalents |
$ |
43.6 |
|
$ |
28.4 |
|
Restricted cash |
|
1.9 |
|
|
1.9 |
|
Accounts receivable, net of allowances |
|
144.0 |
|
|
149.2 |
|
Prepaid expenses and other current assets |
|
16.1 |
|
|
13.2 |
|
Total current assets |
|
205.6 |
|
|
192.7 |
|
Property and equipment, net |
|
15.5 |
|
|
17.7 |
|
Operating lease right-of-use assets |
|
49.8 |
|
|
52.8 |
|
|
|
855.3 |
|
|
900.0 |
|
Intangible assets, net |
|
38.5 |
|
|
58.1 |
|
Other long-term assets |
|
2.4 |
|
|
4.7 |
|
Total assets |
$ |
1,167.1 |
|
$ |
1,226.0 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||
|
Current liabilities: |
|
|
|
||
|
Current portion of long-term debt |
$ |
22.3 |
|
$ |
22.8 |
|
Current portion of operating lease liabilities |
|
12.6 |
|
|
12.3 |
|
Accounts payable |
|
9.2 |
|
|
6.7 |
|
Accrued payroll |
|
40.4 |
|
|
37.1 |
|
Other current liabilities |
|
41.8 |
|
|
47.3 |
|
Total current liabilities |
|
126.3 |
|
|
126.2 |
|
Long-term debt, net of current portion |
|
426.0 |
|
|
492.6 |
|
Long-term operating lease liabilities, net of current portion |
|
39.1 |
|
|
41.8 |
|
Deferred income tax liabilities |
|
11.5 |
|
|
11.5 |
|
Other long-term liabilities |
|
0.1 |
|
|
— |
|
Total liabilities |
|
603.0 |
|
|
672.1 |
|
Commitments and contingencies |
|
|
|
||
|
Redeemable noncontrolling interests |
|
5.0 |
|
|
5.0 |
|
Stockholders’ equity: |
|
|
|
||
|
|
|
534.0 |
|
|
523.5 |
|
Noncontrolling interests |
|
25.1 |
|
|
25.4 |
|
Total stockholders’ equity |
|
559.1 |
|
|
548.9 |
|
Total liabilities and stockholders’ equity |
$ |
1,167.1 |
|
$ |
1,226.0 |
|
|
|||||||
|
Condensed Consolidated Statements of Cash Flows |
|||||||
|
(Unaudited) |
|||||||
|
|
Year Ended
|
||||||
|
($ in millions) |
2025 |
|
2024 |
||||
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income (loss) |
$ |
(2.6 |
) |
|
$ |
(154.0 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities— |
|
|
|
||||
|
Depreciation and amortization |
|
22.5 |
|
|
|
31.5 |
|
|
Amortization of debt related costs |
|
1.5 |
|
|
|
1.5 |
|
|
Gain on sale of investment |
|
(19.2 |
) |
|
|
— |
|
|
Impairment of goodwill |
|
44.7 |
|
|
|
161.7 |
|
|
Impairment of intangible assets |
|
3.0 |
|
|
|
— |
|
|
Stock-based compensation |
|
16.6 |
|
|
|
11.7 |
|
|
Deferred income taxes |
|
— |
|
|
|
(5.7 |
) |
|
Other, net |
|
0.4 |
|
|
|
(0.6 |
) |
|
Changes in assets and liabilities, net of acquisitions — |
|
|
|
||||
|
Accounts receivable, net of allowances |
|
5.2 |
|
|
|
15.5 |
|
|
Prepaid expenses and other assets |
|
(2.3 |
) |
|
|
3.1 |
|
|
Accounts payable |
|
2.6 |
|
|
|
(1.0 |
) |
|
Accrued payroll |
|
3.7 |
|
|
|
(2.3 |
) |
|
Other liabilities |
|
(5.4 |
) |
|
|
(10.2 |
) |
|
Net cash provided by operating activities |
|
70.7 |
|
|
|
51.2 |
|
|
Cash flows from investing activities: |
|
|
|
||||
|
Purchases of property and equipment, including capitalized software costs |
|
(4.9 |
) |
|
|
(3.8 |
) |
|
Proceeds from sale of investment |
|
21.0 |
|
|
|
— |
|
|
Other |
|
0.6 |
|
|
|
1.4 |
|
|
Net cash provided by (used) in investing activities |
|
16.7 |
|
|
|
(2.4 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Principal payments on term loan facility |
|
(20.0 |
) |
|
|
(20.0 |
) |
|
Payments on revolving credit facility |
|
(45.0 |
) |
|
|
(20.0 |
) |
|
Principal payments under finance lease obligations |
|
(2.7 |
) |
|
|
(3.6 |
) |
|
Distributions paid to noncontrolling interests of consolidated affiliates |
|
(2.3 |
) |
|
|
(3.7 |
) |
|
Other |
|
(2.2 |
) |
|
|
(1.0 |
) |
|
Net cash used in financing activities |
|
(72.2 |
) |
|
|
(48.3 |
) |
|
Increase in cash, cash equivalents, and restricted cash |
|
15.2 |
|
|
|
0.5 |
|
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
30.3 |
|
|
|
29.8 |
|
|
Cash, cash equivalents, and restricted cash at end of year |
$ |
45.5 |
|
|
$ |
30.3 |
|
|
|
|||||||||||||||||||||||||||
|
Supplemental Non-GAAP Information |
|||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||
|
(in millions except Diluted EPS amounts) |
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||||||||||||||
|
Amount |
|
Diluted EPS |
|
Amount |
|
Diluted EPS |
|
Amount |
|
Diluted EPS |
|
Amount |
|
Diluted EPS |
|||||||||||||
|
Net income (loss) attributable to |
$ |
(38.7 |
) |
|
$ |
(0.76 |
) |
|
$ |
(46.0 |
) |
|
(0.92 |
) |
|
$ |
(4.6 |
) |
|
(0.09 |
) |
|
(156.2 |
) |
|
(3.11 |
) |
|
Impairment of goodwill |
|
39.0 |
|
|
|
— |
|
|
|
44.0 |
|
|
|
|
|
39.0 |
|
|
|
|
141.3 |
|
|
|
|||
|
Impairment of intangible assets |
|
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
2.3 |
|
|
|
|
|
|
|
||||
|
Gain on sale of investment and disposal of assets(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
(14.7 |
) |
|
|
|
— |
|
|
|
|||
|
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
1.7 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
|
|
5.8 |
|
|
|
|
10.0 |
|
|
|
|||
|
(Benefit from) provision for income taxes(3) |
|
2.8 |
|
|
|
— |
|
|
|
2.9 |
|
|
|
|
|
(0.3 |
) |
|
|
|
15.6 |
|
|
|
|||
|
Adjusted Net income (loss) attributable to |
$ |
7.1 |
|
|
$ |
0.14 |
|
|
$ |
2.0 |
|
|
0.04 |
|
|
$ |
27.5 |
|
|
0.53 |
|
|
10.7 |
|
|
0.21 |
|
|
Diluted weighted average common shares outstanding |
|
|
|
50.7 |
|
|
|
|
50.2 |
|
|
|
|
50.8 |
|
|
|
|
50.2 |
|
|||||||
|
Fully diluted weighted average common shares outstanding(4) |
|
|
|
52.2 |
|
|
|
|
50.5 |
|
|
|
|
51.6 |
|
|
|
|
50.4 |
|
|||||||
|
(1) |
Gain on sale of investment in 2025 resulted from the sale of Medalogix investment. |
|
|
(2) |
Unusual or nonrecurring items in the three months and year ended |
|
|
(3) |
Income tax adjustments include the effect of a valuation allowance recorded against a portion of our deferred tax assets and the effect of permanent book-tax differences attributable to stock-based compensation. |
|
|
(4) |
Reflects diluted weighted average common shares outstanding plus potential common shares used for the calculation of adjusted diluted earnings per share. |
|
|
|||||||||||||||
|
Supplemental Non-GAAP Information |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
||||||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net income (loss) |
$ |
(38.3 |
) |
|
$ |
(45.8 |
) |
|
$ |
(2.6 |
) |
|
$ |
(154.0 |
) |
|
Interest expense, net |
|
7.4 |
|
|
|
10.1 |
|
|
|
33.8 |
|
|
|
42.9 |
|
|
(Benefit from) provision for income taxes |
|
(2.5 |
) |
|
|
(5.5 |
) |
|
|
4.0 |
|
|
|
(4.0 |
) |
|
Depreciation and amortization |
|
5.0 |
|
|
|
7.9 |
|
|
|
22.5 |
|
|
|
31.5 |
|
|
Loss (gain) on sale of investment and disposal of assets(1) |
|
0.1 |
|
|
|
(0.2 |
) |
|
|
(19.1 |
) |
|
|
(0.7 |
) |
|
Impairment of goodwill |
|
44.7 |
|
|
|
53.8 |
|
|
|
44.7 |
|
|
|
161.7 |
|
|
Stock-based compensation |
|
6.8 |
|
|
|
3.9 |
|
|
|
16.6 |
|
|
|
11.7 |
|
|
Net income attributable to noncontrolling interests |
|
(0.4 |
) |
|
|
(0.2 |
) |
|
|
(2.0 |
) |
|
|
(2.2 |
) |
|
Unusual or nonrecurring items that are not typical of ongoing operations(2) |
|
2.2 |
|
|
|
1.1 |
|
|
|
7.6 |
|
|
|
13.2 |
|
|
Adjusted EBITDA |
$ |
28.0 |
|
|
$ |
25.1 |
|
|
$ |
108.5 |
|
|
$ |
100.1 |
|
|
(1) |
Gain on sale of investment in 2025 resulted from the sale of Medalogix investment. |
|
|
(2) |
Unusual or nonrecurring items in the three months and year ended |
|
|
|||||||||||||||
|
Supplemental Non-GAAP Information |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
Reconciliation of Income (Loss) Before Income Taxes And Noncontrolling Interests to Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Income (loss) before income taxes and noncontrolling interests |
$ |
(40.8 |
) |
|
$ |
(51.3 |
) |
|
$ |
1.4 |
|
|
$ |
(158.0 |
) |
|
Non-segment general and administrative expenses |
|
24.8 |
|
|
|
24.6 |
|
|
|
107.4 |
|
|
|
113.3 |
|
|
Interest expense, net |
|
7.4 |
|
|
|
10.1 |
|
|
|
33.8 |
|
|
|
42.9 |
|
|
Depreciation and amortization |
|
5.0 |
|
|
|
7.9 |
|
|
|
22.5 |
|
|
|
31.5 |
|
|
Gain (loss) on sale of investment (1) |
|
0.1 |
|
|
|
— |
|
|
|
(19.1 |
) |
|
|
— |
|
|
Impairment of intangible assets |
|
3.0 |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
|
Impairment of goodwill |
|
44.7 |
|
|
|
53.8 |
|
|
|
44.7 |
|
|
|
161.7 |
|
|
Stock-based compensation expense |
|
6.8 |
|
|
|
3.9 |
|
|
|
16.6 |
|
|
|
11.7 |
|
|
Net income attributable to noncontrolling interests |
|
(0.4 |
) |
|
|
(0.2 |
) |
|
|
(2.0 |
) |
|
|
(2.2 |
) |
|
Total Segment Adjusted EBITDA |
$ |
50.6 |
|
|
$ |
48.8 |
|
|
$ |
208.3 |
|
|
$ |
200.9 |
|
|
|
|||||||||||||||||||||||||||||||
|
Supplemental Non-GAAP Information |
|||||||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||||||
|
|
|
|
Hospice |
|
|
|
Hospice |
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||||||||||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||||||||||
|
Net service revenue |
$ |
206.8 |
|
|
$ |
200.4 |
|
|
$ |
63.6 |
|
|
$ |
57.8 |
|
|
$ |
813.8 |
|
|
$ |
824.8 |
|
|
$ |
246.2 |
|
|
$ |
210.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Labor |
|
99.0 |
|
|
|
95.9 |
|
|
|
19.1 |
|
|
|
17.1 |
|
|
|
390.1 |
|
|
|
389.5 |
|
|
|
71.9 |
|
|
|
63.8 |
|
|
Supplies and pharmacy |
|
2.3 |
|
|
|
2.4 |
|
|
|
5.6 |
|
|
|
5.1 |
|
|
|
9.5 |
|
|
|
9.9 |
|
|
|
21.8 |
|
|
|
19.4 |
|
|
Travel |
|
5.4 |
|
|
|
5.4 |
|
|
|
1.4 |
|
|
|
1.3 |
|
|
|
20.8 |
|
|
|
21.8 |
|
|
|
5.1 |
|
|
|
4.7 |
|
|
Other cost of service |
|
1.5 |
|
|
|
1.8 |
|
|
|
4.4 |
|
|
|
4.1 |
|
|
|
6.1 |
|
|
|
7.0 |
|
|
|
14.9 |
|
|
|
14.7 |
|
|
Total cost of service, excluding depreciation and amortization |
|
108.2 |
|
|
|
105.5 |
|
|
|
30.5 |
|
|
|
27.6 |
|
|
|
426.5 |
|
|
|
428.2 |
|
|
|
113.7 |
|
|
|
102.6 |
|
|
General and administrative salaries |
|
48.7 |
|
|
|
48.9 |
|
|
|
16.3 |
|
|
|
14.1 |
|
|
|
188.6 |
|
|
|
193.2 |
|
|
|
59.7 |
|
|
|
54.0 |
|
|
Other general and administrative expenses(2) |
|
12.6 |
|
|
|
10.2 |
|
|
|
3.1 |
|
|
|
2.9 |
|
|
|
48.7 |
|
|
|
42.2 |
|
|
|
12.5 |
|
|
|
11.5 |
|
|
Total general and administrative expenses |
|
61.3 |
|
|
|
59.1 |
|
|
|
19.4 |
|
|
|
17.0 |
|
|
|
237.3 |
|
|
|
235.4 |
|
|
|
72.2 |
|
|
|
65.5 |
|
|
Net income attributable to noncontrolling interests |
|
0.3 |
|
|
|
0.3 |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
1.5 |
|
|
|
1.8 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
Segment Adjusted EBITDA |
$ |
37.0 |
|
|
$ |
35.5 |
|
|
$ |
13.6 |
|
|
$ |
13.3 |
|
|
$ |
148.5 |
|
|
$ |
159.4 |
|
|
$ |
59.8 |
|
|
$ |
41.5 |
|
|
Segment Adjusted EBITDA margin(3) |
|
17.9 |
% |
|
|
17.7 |
% |
|
|
21.4 |
% |
|
|
23.0 |
% |
|
|
18.2 |
% |
|
|
19.3 |
% |
|
|
24.3 |
% |
|
|
19.8 |
% |
|
(1) |
Gain on sale of investment in 2025 resulted from the sale of Medalogix investment. | |
|
(2) |
Other general and administrative expenses are comprised of licensing fees and other individually insignificant fees for both the |
|
|
(3) |
Segment Adjusted EBITDA margin is defined as the ratio of Segment Adjusted EBITDA to segment net service revenue. |
|
|
|||||||||||||||
|
Supplemental Information |
|||||||||||||||
|
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
($ in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net cash provided by operating activities |
$ |
4.3 |
|
|
$ |
(4.1 |
) |
|
$ |
70.7 |
|
|
$ |
51.2 |
|
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
|
3.5 |
|
|
|
1.1 |
|
|
|
10.1 |
|
|
|
13.2 |
|
|
Capital expenditures for maintenance |
|
(1.0 |
) |
|
|
(0.6 |
) |
|
|
(4.9 |
) |
|
|
(3.7 |
) |
|
Other working capital adjustments(2) |
|
0.4 |
|
|
|
0.3 |
|
|
|
(2.4 |
) |
|
|
(3.5 |
) |
|
Distributions paid to noncontrolling interests of consolidated affiliates |
|
(0.8 |
) |
|
|
(1.5 |
) |
|
|
(2.3 |
) |
|
|
(3.7 |
) |
|
Adjusted free cash flow |
$ |
6.4 |
|
|
$ |
(4.8 |
) |
|
$ |
71.2 |
|
|
$ |
53.5 |
|
|
(1) |
Unusual or nonrecurring items in the three months and year ended |
|
|
(2) |
For 2025 and going forward, adjusted free cash flow will exclude the cash impact of unusual and nonrecurring items from both cash income tax payments (refunds), net and working capital and other. The 2024 calculations have been conformed to the current methodology, which has an impact of |
|
Reconciliation of Gross Margin to Adjusted EBITDA Margin |
|||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
Gross margin as a percentage of revenue |
48.7 |
% |
|
48.5 |
% |
|
49.0 |
% |
|
48.7 |
% |
|
General and administrative expenses |
(41.5 |
)% |
|
(40.5 |
)% |
|
(40.9 |
)% |
|
(41.2 |
)% |
|
Gains on disposal of assets |
— |
% |
|
— |
% |
|
|
|
— |
% |
|
|
Stock-based compensation |
2.5 |
% |
|
1.4 |
% |
|
1.6 |
% |
|
1.1 |
% |
|
Noncontrolling interests |
(0.1 |
)% |
|
(0.1 |
)% |
|
(0.2 |
)% |
|
(0.2 |
)% |
|
Unusual or nonrecurring items that are not typical of ongoing operations(1) |
0.8 |
% |
|
0.4 |
% |
|
0.7 |
% |
|
1.3 |
% |
|
Adjusted EBITDA Margin |
10.4 |
% |
|
9.7 |
% |
|
10.2 |
% |
|
9.7 |
% |
|
(1) |
Unusual or nonrecurring items in the three months and year ended |
FORWARD-LOOKING STATEMENTS
This press release contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this presentation, and the Company 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, many of which are beyond our control. Actual events or results may differ materially from the results 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 the Company include, but are not limited to,disruption from the proposed Merger with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement or the inability to complete the proposed transaction on the anticipated terms and timetable; the risk that certain regulatory approvals for the proposed Merger are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed Merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on Merger-related issues; the risk that termination fees may be payable by us in the event that the Merger Agreement is terminated under certain circumstances; reputational risk related to the proposed Merger; the risk of litigation or regulatory action related to the proposed Merger; 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; changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this release are described in reports filed with the
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication may be deemed to be solicitation material in respect of the transaction between the Company,
PARTICIPANTS IN THE SOLICITATION
The directors and executive officers of the Company, and other persons, may be deemed to be participants in the solicitation of proxies in respect of the transaction. Information regarding the Company's directors and executive officers is available in the Company's definitive proxy statement filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20260303111104/en/
Investor relations contact
Bob Okunski
investorrelations@ehab.com
469-860-6061
Media contact
media@ehab.com
972-338-5141
Source:
