Enhabit Home Health & Hospice Announces Date of 2023 Fourth Quarter Earnings Call

DALLAS – February 8, 2024 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced it will report its results for the fourth quarter ended
Dec. 31, 2023, on March 6, 2024, and host a webcast and conference call on March 7, 2024. Individuals who would like to participate in the conference call webcast should join 15 minutes before the scheduled start time.

A link to the webcast of the conference call and online replay can be found on Enhabit’s investor website.

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About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 110 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.  

Investor Contact

Crissy Carlisle [email protected] 469-860-6061

Media Contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Reports Third Quarter 2023 Financial Results

Revises Full-Year Guidance

Company to host a conference call tomorrow, November 8, 2023 at 10 AM EDT

DALLAS, TX – November 7, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the third quarter ended September 30, 2023.

“In the midst of industry disruption associated with Medicare reimbursement uncertainty, labor pressures and the shift to Medicare Advantage, we continue to deliver on our mission of providing exceptional care to our patients,” said Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer. “We are winning the war for labor as demonstrated by our recruitment of an additional 166 net new nursing hires in the third quarter, and payors are increasingly receptive to our value proposition given our hospital readmission rates which are 20% better than the national average. Some payors are recognizing the variation of quality results within the industry and are willing to pay for access to high-quality providers like Enhabit.”

QUARTERLY PERFORMANCE – CONSOLIDATED

  • Net service revenue of $258.3 million
  • Net loss attributable to Enhabit, Inc. of $2.4 million
  • Adjusted EBITDA of $23.2 million
  • Loss per share of $0.05
  • Adjusted earnings per share of $0.03

RECENT COMPANY HIGHLIGHTS

  • Continued strong growth in home health Medicare Advantage admissions with non-episodic admissions up 33.5% driving total admission growth of 1.6% year over year
    • 11 new Medicare Advantage agreements negotiated in the third quarter
    • 22% of non-episodic visits are now in payor innovation contracts at improved rates
  • Continued recruiting success adding 166 net new full-time home health nursing hires in the third quarter
  • 30-day hospitalization readmission rate in home health is approximately 20% better than the national average
  • Approximately 44% better than the national average for hospice patient visits in last days of life
  • Hospice cost per day stabilized for the third consecutive quarter
  • Opened one hospice de novo location in Colorado in July

FINANCIAL RESULTS

Consolidated

The continued shift to more non-episodic admissions in home health impacted consolidated revenue and Adjusted EBITDA by approximately $8 million, net of the impact from improved pricing of payor innovation contracts.

SEGMENT RESULTS

Home health

The year-over-year decrease in revenue was due primarily to the continued payor mix shift to more non-episodic admissions. Non-episodic admissions grew 33.5% in the quarter, driving total admission growth of 1.6% year over year. Revenue per episode increased year over year primarily due to changes in our estimated recoverability of net service revenue.

Revenue and Adjusted EBITDA decreased $8 million in Q3 due to the continued payor mix shift to more non-episodic admissions. Cost per visit increased 1.1% year over year primarily due to merit and market rate increases for clinical staff, partially offset by improved nursing productivity.

Hospice

Net service revenue decreased year over year primarily due to a decrease in patient days.

Adjusted EBITDA decreased year over year primarily due to higher cost of services resulting from increased labor costs. Cost per day increased year over year primarily due to increased labor costs resulting from the implementation of the new case management model, including costs associated with dedicated on-call and triage nurses.

CREDIT AGREEMENT AMENDMENT

On November 3, 2023, Enhabit entered into an amendment to its credit agreement with its bank group. The amendment provided for additional cushion to the Company’s financial covenants through March 31, 2025. The amendment also included a permanent reduction in the revolver commitment from $350 million to $220 million. The Company expects to realize a reduction in commitment fees of $0.3 million per year as a result of the commitment reduction.

“The covenant levels requested and received were done out of an abundance of caution as we continue to operate in an industry with shifting dynamics in payor sources and reimbursement,” said Enhabit’s Chief Financial Officer, Crissy Carlisle. “Given our cash on hand and availability under our revolver, we believe we have adequate liquidity to service our debt and fund operations.”

GUIDANCE

The Company revised its full-year 2023 guidance as follows:

For additional considerations regarding the Company’s 2023 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com.

CONFERENCE CALL INFORMATION

The Company will host an investor conference call at 10 AM Eastern Time on November 8, 2023 to discuss its results for the third quarter of 2023. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting https://events.q4inc.com/attendee/530971935. Following the call, a replay will be available at Enhabit’s investor website.

ABOUT ENHABIT HOME HEALTH & HOSPICE

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 109 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

OTHER INFORMATION

Note regarding presentation and reconciliation of non-GAAP financial measures

The financial data contained in this press release and supplemental information includes non-GAAP

(generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, and Adjusted free cash flow. See “Reconciliations of Non-GAAP Financial Measures” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Such non-GAAP financial measures exclude significant components in understanding and assessing financial performance and should therefore not be considered superior to, as a substitute for or alternative to the GAAP financial measures presented in this press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.

The Company is unable to reconcile the guidance for Adjusted EBITDA and Adjusted EPS to their corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Note regarding presentation of same-store comparisons

The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, our ability to control costs, particularly labor and employee benefit costs, and that our review of strategic alternatives will result in our pursuing any strategic transaction, or that we will successfully consummate any particular strategic transaction on attractive terms or at all. Our annual reports on Form 10-K and quarterly reports on Form 10-Q, each of which can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov, discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Investor Relations Contact                                         

Jordan Loyd [email protected] 469-860-6061

Media Contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Home Health & Hospice Announces Date of 2023 Third Quarter Earnings Call; Comments on Limited Waiver and Liquidity

DALLAS – Oct. 4, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today provided updates on the timing for release of its results for the third quarter ended Sept. 30, 2023, and certain other matters. 

The Company is in the process of closing its books for the third quarter ended Sept. 30, 2023, and will report its results on Nov. 7, 2023, and host a webcast and conference call on Nov. 8, 2023. Individuals who would like to participate in the conference call webcast should join 15 minutes before the scheduled start time.

A link to the webcast of the conference call and online replay can be found on Enhabit’s investor website.

Other information

As previously announced on a Form 8-K filed on Oct. 2, 2023, the Company entered into a Limited Waiver dated Sept. 29, 2023, with Wells Fargo Bank, National Association, as administrative agent under its existing Credit Agreement. Also as previously announced, Enhabit has launched a process to review strategic alternatives.  Since the announcement, the Company has been working diligently with its advisors on this review process, and the process is ongoing. With respect to the Limited Waiver announced in the Form 8-K, Company President and Chief Executive Officer Barb Jacobsmeyer said, “As we work with our advisors and prospective strategic partners as part of our strategic review, out of an abundance of caution we chose to proactively reach out to our bank group to ensure we remain in compliance with our financial covenants.” At this time, the Company believes it has adequate liquidity. The Company has not drawn on its revolving credit facility in 2023.  As of Sept. 30, 2023, the Company had total available liquidity of approximately $80 million, including cash and cash equivalents.

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About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 108 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.  

Forward-looking statements

Statements contained in this press release which are not historical facts, such as those relating to the status of our strategic alternatives review process and our current liquidity position and other future events are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, our ability to control costs, particularly labor and employee benefit costs and our ability to successfully pursue and complete a strategic transaction. Our Form 10-K and subsequent quarterly reports on Form 10-Q, each of which can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov, discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Investor relations contact

Jordan Loyd [email protected] 469-860-6061

Media contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Home Health & Hospice Confirms Exploration of Strategic Alternatives to Enhance Stockholder Value

DALLAS, August 23, 2023 Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today announced that it has satisfied the conditions in its Tax Matters Agreement (“TMA”), dated June 30, 2022, with Encompass Health Corporation to conduct a review of strategic alternatives and has formally initiated such process. As part of this process, the board of directors will consider a wide range of options for the Company including, among other things, a potential sale, merger or other strategic transaction. Certain transactions involving the company remain subject to additional conditions in the TMA, including securing an additional tax opinion with respect to the specific transaction, satisfactory to Encompass Health in its sole and absolute discretion, that such proposed transaction would not jeopardize the tax-free treatment of the spin-off of Enhabit.

The Company issued the following statement:

“Enhabit is a leader in a valuable industry, providing a better way to care where patients prefer to receive their care. The Enhabit board and management team are aligned in their belief that the best way to enhance value for stockholders is to comprehensively review the Company’s strategic alternatives, including a potential sale of Enhabit. We will pursue the pathway that enhances value for our stockholders and ensures we can continue to deliver exceptional care to our patients.”

There can be no assurance the Company’s strategic alternatives process will result in Enhabit pursuing any particular transaction or other strategic outcome or that any such transaction will satisfy the remaining conditions in the TMA. The Company has not set a timetable for completion of this process, and it does not intend to disclose further developments unless and until it determines further disclosure is appropriate or necessary.

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Advisor

Goldman Sachs & Co. LLC is serving as financial advisor to Enhabit.

About Enhabit Home Health & Hospice  

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 108 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com

Forward-looking statements

Statements contained in this press release which are not historical facts, such as those relating to our initiation of a strategic alternatives review process focused on enhancing shareholder value, our consideration of potential strategic transactions, including a potential sale, merger or other strategic transaction, and other future events are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, the outcome of our strategic alternatives review, the volatility and uncertainty in the capital markets for home health and hospice companies and the availability of financing to any potential strategic partner, the availability of suitable third parties with which to conduct any strategic transaction, our ability to satisfy the remaining conditions under the TMA, and if a definitive agreement for a transaction is signed with another party, whether the conditions to closing are satisfied, including any necessary regulatory or other approvals. Our Form 10-K and subsequent quarterly reports on Form 10-Q, each of which can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov, discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.

Investor contact

Jordan Loyd [email protected] 469-860-6061

Media contact 

Andy Brimmer / Adam Pollack

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Enhabit Reports Second Quarter 2023 Financial Results 

Revises Full-Year Guidance 

Announces Intent to Launch Strategic Alternatives Process Subject to Satisfaction of Conditions in Tax Matters Agreement 

Company to host a conference call tomorrow, August 10, 2023 at 10 AM EDT 

DALLAS, TX – August 9, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the second quarter ended June 30, 2023. 

“During the second quarter, we negotiated ten new contracts with Medicare Advantage payors, increased our clinical staff with 203 net new full-time nursing hires, and continued to outperform the industry average with a 30-day hospital readmission rate that is 370 basis points better than the national average,” said Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer. “While we continue to make progress with our strategic initiatives, the pace of the progress has not been fast enough in 2023 to meet our initial guidance. We remain confident our teams’ relentless efforts to retain staff, manage costs, and deliver high-quality care will enhance our value long term.” 

 QUARTERLY PERFORMANCE – CONSOLIDATED 

  • Net service revenue of $262.3 million 
  • Net loss of $74.1 million 
  • Adjusted EBITDA of $23.9 million 
  • Loss per diluted share of $1.49 
  • Adjusted earnings per share of $0.04 

RECENT COMPANY HIGHLIGHTS 

  • Negotiated ten new Medicare Advantage payor contracts in the second quarter 
  • Shifted approximately 5% of previous non-episodic visits into non-episodic payor innovation contracts at improved per visit rates 
  • Continued strong growth in home health Medicare Advantage admissions with non-episodic admissions up 38.0% driving total admission growth of 3.2% year over year 
  • Continued recruiting success adding 203 net new full-time nursing hires in the second quarter 
  • Opened two de novo home health locations in Montana in April and one hospice de novo location in Texas in May 
  • Hospice cost per day stabilized sequentially 
  • 30-day hospitalization readmission rate is 370 basis points better than the national average 

FINANCIAL RESULTS 

Consolidated 

The continued shift to more non-episodic admissions in home health and the resumption of sequestration reduced consolidated net service revenue and Adjusted EBITDA $10.5 million year over year. 

Adjusted EBITDA decreased year over year primarily due to the continued shift to more non-episodic admissions in home health, incremental costs associated with being a stand-alone company, and the resumption of sequestration. 

SEGMENT RESULTS 

Home health 

The year-over-year decrease in revenue was due primarily to the continued payor mix shift to more non-episodic admissions and the resumption of sequestration. Revenue per episode decreased year over year primarily due to the resumption of sequestration and patient mix. 

Adjusted EBITDA decreased year over year primarily due to the continued payor mix shift to more non-episodic admissions, the resumption of sequestration, and increased general and administrative expenses associated with new stores. Cost per visit increased year-over-year primarily due to increased contract labor, merit and market rate increases for clinical staff, and increased costs associated with employee group medical claims partially offset by improved clinical productivity. 

Hospice 

Net service revenue increased year over year primarily due to increased Medicare reimbursement rates. 

Adjusted EBITDA decreased year over year primarily due to higher cost of services resulting from increased labor costs. Cost per day increased year over year primarily due to increased labor costs resulting from the implementation of the new case management model, including costs associated with dedicated on-call and triage nurses. 

TAX MATTERS AGREEMENT 

Enhabit also announced today that it is undertaking steps to attempt to satisfy the conditions in its Tax Matters Agreement (“TMA”), dated June 30, 2022, with Encompass Health Corporation relating to certain transactions involving the Company. The conditions in the TMA include securing a tax opinion of legal counsel, satisfactory to Encompass Health in its sole and absolute discretion, that the actions taken by Enhabit would not jeopardize the tax-free treatment of the spin-off of Enhabit. 

Upon satisfaction of these conditions, the Enhabit board, with the assistance of independent advisors, intends to launch a strategic alternatives process. As part of any such process, the board expects it would consider a wide range of options for the company including, among other things, a potential sale, merger or other strategic transaction. There can be no assurance that the conditions in the TMA will be satisfied, that Enhabit will initiate such a process, or if launched, that a process would result in Enhabit pursuing a particular transaction or other strategic outcome. 

GUIDANCE 

The Company revised its full-year 2023 guidance as follows: 

For additional considerations regarding the Company’s 2023 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com. 

CONFERENCE CALL INFORMATION 

The Company will host an investor conference call at 10 AM Eastern Time on August 10, 2023 to discuss its results for the second quarter of 2023. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting https://events.q4inc.com/attendee/923162031. Following the call, a replay will be available at Enhabit’s investor website. 

ABOUT ENHABIT HOME HEALTH & HOSPICE 

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 108 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com

OTHER INFORMATION 

Note regarding presentation of non-GAAP financial measures 

The financial data contained in this press release and supplemental information includes non-GAAP (generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, leverage ratios, adjusted EPS, and adjusted free cash flow. See “Reconciliations of Non-GAAP Financial Measures” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. 

The Company is unable to reconcile the guidance for Adjusted EBITDA and adjusted EPS to their corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); 

and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information. 

Note regarding reconciliations of non-GAAP financial measures 

This press release contains the reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Such non-GAAP financial measures exclude significant components in understanding and assessing financial performance and should therefore not be considered superior to, as a substitute for or alternative to the GAAP financial measures presented in this press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies. 

Note regarding presentation of same-store comparisons 

The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations. 

FORWARD-LOOKING STATEMENTS 

Statements contained in this press release which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, and our ability to control costs, particularly labor and employee benefit costs. In addition, with respect to the Tax Matters Agreement (TMA) and the potential launch of a strategic alternative process, these factors include, our ability to receive Encompass Health Corporation’s approval to pursue a strategic transaction as required under the TMA and our ability to successfully pursue and complete a strategic transaction, as discussed above. Our Form 10-K and subsequent quarterly reports on Form 10-Q, each of which can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov, discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release. 

Investor Relations Contact 

Jordan Loyd [email protected] 469-860-6061 

Media Contact 

Erin Volbeda [email protected] 972-338-5141 

Enhabit Home Health & Hospice Announces Date of 2023 Second Quarter Earnings Call

DALLAS – July 27, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced it will report its results for the second quarter ended
June 30, 2023, on Aug. 9, 2023, and host a webcast and conference call on Aug. 10, 2023. Individuals who would like to participate in the conference call webcast should join 15 minutes before the scheduled start time.

A link to the webcast of the conference call and online replay can be found on Enhabit’s investor website.

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About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 108 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.  

Investor relations contact

Jordan Loyd [email protected] 469-860-6061

Media contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Announces Participation in Upcoming Jefferies Healthcare Conference

DALLAS – June 1, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced its participation in the Jefferies Healthcare Conference.

Enhabit’s President and Chief Executive Officer Barbara Jacobsmeyer and Chief Financial Officer Crissy Carlisle will participate in a fireside chat on Wednesday, June 7, 2023, at 1:30 p.m. ET. The fireside chat will be webcast live and available for replay at https://investors.ehab.com.  

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About Enhabit Home Health & Hospice  

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 253 home health locations and 107 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

Investor relations contact

Jordan Loyd [email protected] 469-860-6061

Media contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Reports First Quarter 2023 Financial Results and Reaffirms Full-Year Guidance

Announces new national payor agreement and two new convener agreements with
national reach effective May 1, 2023

Company to host a conference call tomorrow, May 10, 2023 at 10 AM EDT

DALLAS, TX – May 9, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the first quarter ended March 31, 2023.
“The first quarter was underscored by progress in two of our critical success factors for 2023.

Our sequential admissions growth for home health and hospice was possible due to our continued efforts in recruitment and retention of clinical staff and our payor innovation team negotiating a new national payor agreement and two convener agreements with national reach,” said Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer. “With our expansion of Medicare Advantage contracts and improved rates combined with reduced staffing capacity constraints, we expect to see improvements in our bottom line throughout 2023.”


QUARTERLY PERFORMANCE – CONSOLIDATED

• Net service revenue of $265.1 million


• Net income of $3.2 million


• Adjusted EBITDA of $25.3 million


• Earnings per diluted share of $0.05


• Adjusted earnings per diluted share of $0.09

RECENT COMPANY HIGHLIGHTS

• Executed new national agreement with Medicare Advantage payor plus two new agreements with conveners with national reach


• Continued strong growth in home health Medicare Advantage admissions with non-episodic admissions up 31.9% driving total admissions growth of 1.2% year over year


• Continued recruiting success adding 101 net new full-time nursing hires in the first quarter


• Further reduced staffing constrained hospice locations with continued implementation of case management model for nurses; hospice staffing constraints lowest in four quarters


• Acquired one home health location in Indiana and opened two de novo hospice locations in Texas in March

FINANCIAL RESULTS

Consolidated

The continued shift to more non-episodic admissions in home health and the resumption of sequestration reduced consolidated net service revenue and adjusted EBITDA approximately $10 million year over year.


Adjusted EBITDA decreased year over year primarily due to the continued shift to more non-episodic admissions in home health, the resumption of sequestration, and increased general and administrative expenses. General and administrative expenses were higher year over year primarily due to an increase in employee group medical claims, approximately $2 million of incremental costs associated with being a stand-alone company, vendor rebates received in the first quarter of 2022, and improved back office staffing in the field.

SEGMENT RESULTS

Home health

The year-over-year decrease in revenue was due primarily to the continued payor mix shift to more non-episodic admissions and the resumption of sequestration. Revenue per episode decreased year over year primarily due to the resumption of sequestration and the timing of completed episodes partially offset by a 0.7% increase in Medicare reimbursement rates.


Adjusted EBITDA decreased year over year primarily due to lower revenue and increased general and administrative expenses. General and administrative expenses increased primarily due to an increase in employee group medical claims, vendor rebates received in the first quarter of 2022, and improved back office staffing in the field. Cost per visit increased year over year primarily due to merit and market rate increases for clinical staff, increased contract labor, and increased costs associated with employee group medical claims partially offset by improved clinical productivity.

Hospice

Net service revenue was relatively flat to the prior year as the decline in average daily census and resumption of sequestration was offset by increased Medicare reimbursement rates. Admissions decreased 3.8% year over year but increased 7.1% sequentially. Revenue per day increased year over year primarily due to increased Medicare reimbursement rates partially offset by the resumption of sequestration and patient mix.


Adjusted EBITDA decreased year over year primarily due to higher cost of services resulting from increased labor costs. Cost per day increased year over year primarily due to increased labor costs related to the implementation of the new case management model, including costs associated with dedicated on-call and triage nurses, increased contract labor, and an increase in employee group medical claims.


GUIDANCE


The Company reaffirmed its full-year 2023 guidance as follows:

For additional considerations regarding the Company’s 2023 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com. See also “Other Information” below for an explanation of why the Company does not provide guidance for comparable GAAP measures for adjusted EBITDA and adjusted EPS.


CONFERENCE CALL INFORMATION


The Company will host an investor conference call at 10 AM Eastern Time on May 10, 2023 to discuss its results for the first quarter of 2023. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting http://investors.ehab.com. Following the call, a replay will be available at the same location.


ABOUT ENHABIT HOME HEALTH & HOSPICE


Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 253 home health locations and 107 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information,
visit ehab.com.

OTHER INFORMATION


Note regarding presentation of non-GAAP financial measures


The financial data contained in the press release and supplemental information includes non-GAAP financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including adjusted EBITDA, adjusted EBITDA margin, leverage ratios, adjusted EPS, and adjusted free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP are presented on the attached schedules. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, reconciliation of our guidance of adjusted EBITDA and adjusted EPS to their corresponding GAAP measures is not provided because the Company is unable to provide such reconciliation, without unreasonable effort, due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Such items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information.


Note regarding presentation of same-store comparisons


The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

FORWARD-LOOKING STATEMENTS


Statements contained in this press release which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, and our ability to control costs, particularly labor and employee benefit costs. Our Form 10K and subsequent quarterly reports on Form 10-Q, each of which can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov, discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release.


Investor Relations Contact


Mark Brewer
[email protected]
469-860-6061


Media Contact


Erin Volbeda
[email protected]
972-338-5141

Enhabit Home Health & Hospice Announces Date of 2023 First Quarter Earnings Call

DALLAS – April 20, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading national home health and hospice provider, today announced it will report its results for the first quarter ended
March 31, 2023, on May 9, 2023, and host a webcast and conference call on May 10, 2023. Individuals who would like to participate in the conference call webcast should join 15 minutes before the scheduled start time.

  • May 10, 2023
  • 10:00 a.m. Eastern
  • Toll-free: 888-660-6150
  • International: 929-203-0843
  • Conference ID: 5248158
  • Internet website: https://investors.ehab.com 

A link to the webcast of the conference call and online replay can be found on Enhabit’s investor website at the web address provided above.

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About Enhabit Home Health & Hospice

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 253 home health locations and 107 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.  

Investor Contact

Mark Brewer [email protected] 469-621-6496

Media Contact

Erin Volbeda [email protected] 972-338-5141

Enhabit Home Health & Hospice Awarded First Age-Friendly Care at Home Certification from CHAP

DALLAS, April 13, 2023 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice provider, today announced it has been awarded the Age-Friendly Care at Home Certification from Community Health Accreditation Partner (CHAP). Enhabit is the first home health provider to receive the CHAP certification for its home health agencies in Petersburg, Virginia, and Clermont, Florida.

The CHAP certification program brings Age-Friendly Health Systems, an initiative of The John A. Hartford Foundation (JAHF) and the Institute for Healthcare Improvement (IHI) in partnership with the American Hospital Association (AHA) and the Catholic Health Association of the United States (CHA), to home health and hospice settings. The movement has been shown to reduce cost of care, improve clinical retention and satisfaction, and improve patient outcomes.

“We are proud to be at the forefront of bringing the Age-Friendly Health Systems movement to home-based care,” Enhabit Executive Vice President of Clinical Excellence and Strategy Bud Langham said. “While we’ve always focused on delivering evidence-based, patient-centered care, this movement provides a clear framework on how to incorporate these elements into our standards of care in a way that benefits our patients, clinicians, referral sources and payors.”

CHAP certification demonstrates that Enhabit meets the industry’s highest nationally recognized standards for age-friendly care. The rigorous evaluation by CHAP focuses on providing a set of four evidence-based elements established by the Age-Friendly Health System movement known as the 4Ms: What Matters, Medication, Mentation and Mobility.

“Enhabit has played an instrumental role in helping us bring the 4M Framework to the home setting,” CHAP Chief Operating Officer Teresa Harbour said. “As part of our Volunteer Advisory Group, the Enhabit team helped us develop the certification program along with educational tools and resources. We look forward to continuing to work together to ensure older adults receive care that focuses on what matters to them.”

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About Enhabit Home Health & Hospice   

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 252 home health locations and 105 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com

About Community Health Accreditation Partner (CHAP)CHAP is an independent, nonprofit organization accrediting providers of home and community-based care. Founded in 1965, CHAP was first to recognize the need for and value of home and community-based care standards and accreditation. As a Centers for Medicare & Medicaid Services (CMS)–approved accrediting organization, CHAP surveys organizations providing home health, hospice, and home medical equipment services to establish if Medicare Conditions of Participation and DMEPOS Quality Standard are met and recommend certification to CMS. CHAP’s purpose is to partner with organizations nationwide to advance quality in the delivery of care and services in the home and community.

Media Contact 

Erin Volbeda 

[email protected]  

972-338-5141 

Investor Contact

Mark Brewer

[email protected]

469-621-6496