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Dec 31, 2023
Enhabit Q4 2022 Earnings Report
Enhabit reported a slight decline in net service revenue and a significant decrease in net income and adjusted EBITDA for the fourth quarter of 2022.
Key Takeaways
Enhabit, Inc. reported net service revenue of $275.1 million for the fourth quarter of 2022, a 0.4% decline from Q4 2021. Net income decreased by 72.5% to $8.2 million, and Adjusted EBITDA was down 17.8% to $40.3 million.
Net service revenue for Q4 2022 was $275.1 million, a slight decrease of 0.4% compared to Q4 2021.
Net income for Q4 2022 significantly declined by 72.5% to $8.2 million.
Adjusted EBITDA for Q4 2022 was $40.3 million, representing a 17.8% decrease from the prior year.
Home health Medicare Advantage experienced strong growth with nine new negotiated agreements added during the fourth quarter.
Enhabit
Enhabit
Enhabit Revenue by Segment
Revenue by Segment
Home Health Net Service Revenue
CapyFin.comHospice Net Service Revenue
CapyFin.com Forward Guidance
Enhabit provided full-year 2023 guidance with net service revenue projected between $1,110 million and $1,140 million, Adjusted EBITDA between $125 million and $140 million, and Adjusted EPS between $0.50 and $0.89.
Positive Outlook
- The company is confident in the long-term prospects for Enhabit despite facing numerous headwinds in 2023.
- Expansion of human resource and talent acquisitions teams is making notable progress.
- Establishment of a payor innovation team is making notable progress.
- Strategic changes to management and the staffing model in hospice are making notable progress.
- Operational and sales teams are being aligned into a regional structure to drive clinical and operational success at a local level.
Challenges Ahead
- The company faces numerous headwinds in 2023.
- The guidance for comparable GAAP measures for Adjusted EBITDA and Adjusted EPS is not provided due to inherent difficulty in predicting future impacts of certain items.
- Future impacts of items like gains or losses related to hedging instruments are outside the company's control.
- Loss on early extinguishment of debt is an unpredictable factor.
- Adjustments to income tax provision (e.g., valuation allowance adjustments and settlements of income tax claims) and items related to corporate and facility restructurings are difficult to forecast.
Revenue & Expenses
Visualization of income flow from segment revenue to net income