PLYMOUTH MEETING – AdaptHealth Corp. (NASDAQ:), a provider of home medical equipment and related services, reported a mixed financial performance for the first quarter ended March 31, 2024, with revenue growth but a miss on earnings per share (EPS) expectations.
The company’s net revenue reached $792.5 million, surpassing the analyst consensus estimate of $770.98 million and marking a 6.4% increase from the $744.6 million reported in the same quarter last year. However, AdaptHealth posted a net loss of $2.1 million, or an EPS of -$0.02, which fell short of the expected $0.06 EPS by analysts.
Adjusted EBITDA for the first quarter showed a significant improvement, rising 18.3% to $158.5 million, compared to $134.0 million in the prior year’s quarter. This increase was attributed to a robust Adjusted EBITDA Margin of 20.0%.
Despite the positive revenue growth and EBITDA performance, cash flow from operations declined to $49.0 million from $140.2 million, and Free Cash Flow was negative at -$38.9 million, a decrease from $51.1 million in the first quarter of the previous year. The company noted that these decreases were primarily driven by delayed payments resulting from the Change Healthcare (NASDAQ:) data breach, but payments have largely been caught up since the end of the quarter.
Richard Barasch, Chairman and Interim CEO of AdaptHealth, expressed satisfaction with the company’s first-quarter achievements, highlighting the strength of the Sleep and Respiratory product lines and the positive direction of the Diabetes product line. “We delivered 6.2% non-acquired revenue growth and an 18.3% increase in Adjusted EBITDA driven by Adjusted EBITDA Margin of 20.0%,” said Barasch.
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Despite the temporary challenges posed by the data breach, the company’s expectations for Free Cash Flow for the first half and the full year remain unchanged. Barasch also mentioned the company’s progress in reducing debt, with an expectation to be below 3x leverage in 2024.
AdaptHealth’s performance reflects its position as a national leader in the healthcare-at-home market, serving approximately 4.1 million patients annually across the United States with a wide range of medical products and solutions.
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