On August 6, 2024, AdaptHealth Corp (AHCO, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. AdaptHealth Corp is a national leader in providing patient-centered, healthcare-at-home solutions, including home medical equipment, medical supplies, and related services.
Performance Overview
AdaptHealth Corp (AHCO, Financial) reported net revenue of $806.0 million for Q2 2024, surpassing the analyst estimate of $802.63 million and reflecting a 1.6% increase from $793.3 million in Q2 2023. Net income attributable to AdaptHealth Corp was $19.4 million, a significant 39.0% increase from $14.0 million in the same period last year. However, Adjusted EBITDA decreased by 3.3% to $165.3 million from $171.0 million in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Revenue | $806.0 million | $793.3 million | 1.6% |
| Net Income | $19.4 million | $14.0 million | 39.0% |
| Adjusted EBITDA | $165.3 million | $171.0 million | -3.3% |
| Cash Flow from Operations (YTD) | $247.0 million | $226.6 million | 9.0% |
| Free Cash Flow (YTD) | $77.9 million | $54.8 million | 42.2% |
Financial Achievements and Challenges
AdaptHealth Corp's increase in net revenue and net income highlights the company's ability to grow despite a challenging economic environment. The rise in cash flow from operations and free cash flow indicates strong operational efficiency and liquidity, which are crucial for sustaining growth and managing debt.
However, the decline in Adjusted EBITDA suggests that the company faced higher operational costs or other financial pressures during the quarter. This metric is particularly important as it reflects the company's core profitability and is often used by investors to gauge financial health.
Income Statement Highlights
For the three months ended June 30, 2024, AdaptHealth Corp reported net revenue of $805.975 million, up from $793.286 million in the same period last year. The cost of net revenue increased slightly to $678.973 million from $673.397 million. General and administrative expenses rose to $57.012 million from $50.078 million, while depreciation and amortization expenses decreased to $11.395 million from $15.549 million.
Balance Sheet and Cash Flow
As of June 30, 2024, AdaptHealth Corp reported total assets of $4.510 billion, slightly up from $4.508 billion as of December 31, 2023. Total liabilities stood at $3.018 billion, down from $3.041 billion at the end of 2023. The company's total stockholders' equity increased to $1.493 billion from $1.467 billion.
Year-to-date cash flow from operations was $247.0 million, up from $226.6 million during the same period in 2023. Free cash flow also saw a significant increase to $77.9 million from $54.8 million.
Management Commentary
"I want to recognize the team for delivering another consistent quarter with results in line with our expectations for net revenue, Adjusted EBITDA, and free cash flow," said Suzanne Foster, Chief Executive Officer of AdaptHealth.
"I joined this team because I believe in our purpose and the vital role we play in improving healthcare. I am optimistic about the road ahead and look forward to working as One Adapt, a unified team, to support our patients in their homes," Foster added.
Financial Outlook
AdaptHealth Corp has updated its financial guidance for fiscal year 2024. The company now expects net revenue to range between $3.255 billion and $3.315 billion, Adjusted EBITDA to range between $660 million and $700 million, and free cash flow to range between $160 million and $180 million.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AdaptHealth Corp for further details.
