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Mar 31, 2024
Enhabit Q1 2024 Earnings Report
Enhabit reported a slight decrease in total net service revenue but maintained adjusted EBITDA in the first quarter of 2024, driven by strong non-Medicare admissions in home health and cost management.
Key Takeaways
Enhabit, Inc. reported first-quarter 2024 financial results with total net service revenue of $262.4 million, a slight decrease from the previous year. Despite the revenue dip, the company maintained consolidated Adjusted EBITDA at $25.3 million, consistent with the prior year, primarily due to strong growth in home health Medicare Advantage admissions and effective cost control.
Net service revenue decreased by 1.0% year-over-year to $262.4 million.
Adjusted EBITDA remained flat at $25.3 million compared to the first quarter of 2023.
Home health non-Medicare admissions increased by 25.2%, driving total admission growth of 5.3% year-over-year.
General and administrative expenses declined year-over-year, contributing to sustained profitability.
Enhabit
Enhabit
Enhabit Revenue by Segment
Revenue by Segment
Home Health Net Service Revenue
CapyFin.comHospice Net Service Revenue
CapyFin.com Forward Guidance
Enhabit reaffirmed its full-year 2024 guidance, projecting net service revenue between $1,076 million and $1,102 million, Adjusted EBITDA between $98 million and $110 million, and Adjusted EPS between $0.12 and $0.43.
Positive Outlook
- Continued focus on operational strategies to drive future growth.
- Anticipated benefits from additional frontline clinicians.
- Expectations of more and better home health payor contracts.
- Continued control over general and administrative expenses.
- Strategic initiatives aimed at increasing admissions in payor innovation contracts.
Challenges Ahead
- Potential impact of payor mix shift to more non-Medicare admissions on consolidated revenue.
- Increased cost of service due to merit and market rate increases.
- Uncertainty regarding the future impact of items outside the company's control on financial performance.
- Potential for litigation, shareholder activism, and standalone transition costs.
- Challenges in predicting the precise impact of market consolidation transactions on results of operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income