AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the
“Company”), a national leader in providing patient-centered,
healthcare-at-home solutions, including home medical equipment,
medical supplies and related services, today provided its initial
guidance for full-year 2023 and preliminary commentary on fourth
quarter 2022 results.
Based on current business, market trends, and acquisitions
completed to date, the Company is establishing initial guidance for
fiscal year 2023 as follows:
- Net revenue of $3.210 billion to $3.290 billion;
- Adjusted EBITDA of $690 million to $750 million; and
- Total capital expenditures are expected to be 9-11% of net
revenue.
Guidance for fiscal year 2023 reflects anticipated net impacts
from scheduled changes in the reimbursement and regulatory
environment, including increased revenue related to the consumer
price index updates to the DMEPOS fee schedule, the extension of
current rural and non-rural/non-CBA blended Medicare rates and the
extension of sequester relief in 2023. Consistent with prior
guidance estimates, the Company’s guidance for fiscal year 2023
does not include contribution from any acquisitions that have not
yet closed.
For the full year 2022, the Company anticipates net revenue to
be near the midpoint of the previously-provided guidance range of
$2.950 billion to $3.010 billion and Adjusted EBITDA to be near the
low end of the previously-provided guidance range of $620 million
to $650 million. The Company expects to release fourth quarter and
full year 2022 results on February 28, 2023.
Steve Griggs, Chief Executive Officer, commented, “We are
pleased with our guidance for the full year ending December 31,
2023 which reflects continued improvement and stabilization of the
supply of PAP devices for our sleep business and overall
non-acquired net revenue growth for the Company in the range of 8%
to 10%.”
“Demand remains very strong across our businesses and we are
pleased with our ability to execute on that demand, addressing the
needs of our patients and adding value for our partners. We
continue to work on innovative technology solutions that allow us
to seamlessly communicate with patients, providers and payers to
take advantage of value-based care and chronic care management
opportunities. At the same time, we are not immune to the cost of
goods inflation and labor pressures that all operators in the
healthcare industry are experiencing and we will continue to look
for ways to drive efficiency and generate operating leverage.”
The preliminary information regarding 2022 results presented in
this press release is unaudited, is based on the Company’s current
estimates of its financial results for the quarter and fiscal year
ended December 31, 2022, and remains subject to change based on
management’s final review of the Company’s fourth quarter financial
results and the completion of the Company’s annual audit.
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centered,
healthcare-at-home solutions including home medical equipment
(HME), medical supplies, and related services. The Company provides
a full suite of medical products and solutions designed to help
patients manage chronic conditions in the home, adapt to challenges
in their activities of daily living, and thrive. Product and
service offerings include (i) sleep therapy equipment, supplies,
and related services (including CPAP and bi PAP services) to
individuals suffering from obstructive sleep apnea, (ii) medical
devices and supplies to patients for the treatment of diabetes
(including continuous glucose monitors and insulin pumps), (iii)
HME to patients discharged from acute care and other facilities,
(iv) oxygen and related chronic therapy services in the home, and
(v) other HME devices and supplies on behalf of chronically ill
patients with wound care, urological, incontinence, ostomy and
nutritional supply needs. The Company is proud to partner with an
extensive and highly diversified network of referral sources,
including acute care hospitals, sleep labs, pulmonologists, skilled
nursing facilities, and clinics. AdaptHealth services beneficiaries
of Medicare, Medicaid, and commercial insurance payors, reaching
approximately 3.9 million patients annually in all 50 states
through its network of approximately 750 locations in 47
states.
Forward-Looking
Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding projections,
estimates and forecasts of revenue and other financial and
performance metrics and projections of market opportunity and
expectations and the Company’s acquisition pipeline. These
statements are based on various assumptions and on the current
expectations of AdaptHealth management and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on, by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including the outcome of judicial and
administrative proceedings to which the Company may become a party
or governmental investigations to which the Company may become
subject that could interrupt or limit the Company’s operations,
result in adverse judgments, settlements or fines and create
negative publicity; changes in the Company’s customers’
preferences, prospects and the competitive conditions prevailing in
the healthcare sector; and the impact of the coronavirus (COVID-19)
pandemic and the Company’s response to it. A further description of
such risks and uncertainties can be found in the Company’s filings
with the Securities and Exchange Commission. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. There may be additional risks that the Company
presently knows or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect the Company’s expectations,
plans or forecasts of future events and views as of the date of
this press release. The Company anticipates that subsequent events
and developments will cause the Company’s assessments to change.
However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Use of Non-GAAP Financial Information
and Financial Guidance
This release contains non-GAAP financial guidance, which is
adjusted to exclude certain costs, expenses, gains and losses and
other specified items that are evaluated on an individual basis.
These non-GAAP items are adjusted after considering their
quantitative and qualitative aspects and typically have one or more
of the following characteristics, such as being highly variable,
difficult to project, unusual in nature, significant to the results
of a particular period or not indicative of future operating
results. Similar charges or gains were recognized in prior periods
and will likely reoccur in future periods.
The Company uses EBITDA and Adjusted EBITDA, which are financial
measures that are not prepared in accordance with generally
accepted accounting principles in the United States, or U.S. GAAP,
to analyze its financial results and believes that they are useful
to investors, as a supplement to U.S. GAAP measures.
The Company believes Adjusted EBITDA is useful to investors in
evaluating the Company’s financial performance. The Company uses
this metric as the profitability measure in its incentive
compensation plans that have a profitability component and to
evaluate acquisition opportunities, where it is most often used for
purposes of contingent consideration arrangements.
EBITDA and Adjusted EBITDA should not be considered as measures
of financial performance under U.S. GAAP, and the items excluded
from EBITDA and Adjusted EBITDA are significant components in
understanding and assessing financial performance. Accordingly,
these key business metrics have limitations as an analytical tool.
They should not be considered as an alternative to net income or
any other performance measures derived in accordance with U.S. GAAP
or as an alternative to cash flows from operating activities as a
measure of the Company’s liquidity.
There is no reliable or reasonably estimable comparable GAAP
measure for the Company’s non-GAAP financial guidance because the
Company is not able to reliably predict the impact of certain
items, including equity-based compensation expense, transaction
costs, changes in fair value of the warrant liability, and other
non-recurring items of expense or income in full year 2022. As a
result, reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is not available without
unreasonable effort. In addition, the Company believes such a
reconciliation would imply a degree of precision and certainty that
could be confusing to investors. The variability of the specified
items may have a significant and unpredictable impact on the
Company’s future GAAP results.
In addition, the Company’s non-GAAP financial guidance in this
release excludes the impact of any potential additional future
strategic acquisitions and any specified items that have not yet
been identified and quantified. The financial guidance is subject
to risks and uncertainties applicable to all forward-looking
statements as described elsewhere in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230110006045/en/
AdaptHealth Corp. Jason Clemens, CFA Chief Financial
Officer
Anton Hie Vice President, Investor Relations
IR@adapthealth.com
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