AdaptHealth Corp (AHCO, Financial), a national leader in providing patient-centered, healthcare-at-home solutions, announced its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported an increase in net revenue by 6.3% to $804.0 million, compared to $756.5 million in the same quarter in 2022. However, the company also reported a net loss of $454.1 million, largely due to a $511.9 million pre-tax write down of goodwill.
Financial Performance and Highlights
Despite the net loss, the company's cash flow from operations increased significantly to $325.4 million year-to-date 2023, up from $276.9 million during the same period in 2022. Free cash flow also increased to $76.6 million year-to-date 2023, up from $28.4 million in the same period in 2022. The company's Adjusted EBITDA slightly increased by 0.6% to $161.2 million.
Management Commentary
“We are pleased with the results of the third quarter,” said Richard Barasch, Chairman and Interim CEO of AdaptHealth. “Powered by our sleep products, we generated 6.3% growth over last year, leading to record revenues for the quarter. Equally important, we generated cash flow from operations of $98.8 million and free cash flow of $21.7 million. Adjusted EBITDA fell short of our expectations largely as a result of unplanned delays in the implementation of the Humana contract. Nevertheless, we believe that the contract will prove to be profitable for AdaptHealth.”
Financial Outlook
AdaptHealth Corp (AHCO, Financial) updated its financial guidance for fiscal year 2023, projecting net revenue of $3.160 to $3.185 billion, down from the previous estimate of $3.16 to $3.20 billion. The company also adjusted its EBITDA forecast to $630 to $650 million, down from $650 to $680 million. The projections for total capital expenditures and free cash flow as a percentage of net revenue remained unchanged.
Balance Sheet Overview
As of September 30, 2023, AdaptHealth Corp (AHCO, Financial) reported total assets of $4.725 billion, down from $5.219 billion as of December 31, 2022. The company's total liabilities also decreased to $2.985 billion from $3.061 billion over the same period. The company's total stockholders' equity stood at $1.739 billion, down from $2.157 billion as of December 31, 2022.
Explore the complete 8-K earnings release (here) from AdaptHealth Corp for further details.
