Enhabit Reports Fourth Quarter Results and Issues Full-Year 2025 Guidance

Enhabit Staff on March 5, 2025

DALLAS–(BUSINESS WIRE)–Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the fourth quarter ended Dec. 31, 2024.

“Enhabit is exiting 2024 having executed specific strategies that set us up for long-term growth in both our home health and hospice segments,” said Barb Jacobsmeyer, president and chief executive officer of Enhabit. “In our home health segment, fourth quarter Medicare census continued to stabilize, and with the renegotiation of a large national contract complete, we will be well positioned as a full-service provider to our referral sources. The hospice segment exited 2024 with our highest average daily census since the spin and has increased census sequentially every month since January 2024 as the case management model we implemented in 2023 continues to mature.”

SUMMARY PERFORMANCE – CONSOLIDATED

  • Net service revenue of $258.2 million
  • Net loss attributable to Enhabit, Inc. of $46.0 million
  • Adjusted EBITDA of $25.1 million
  • Loss per share of $0.92
  • Adjusted earnings per share of $0.04

RECENT COMPANY HIGHLIGHTS

  • Home health non-Medicare admissions increased 10.7% leading to total admissions growth of 1.8% year over year despite hurricane and contract negotiation impacts.
  • 48% of home health non-Medicare visits are now in payer innovation contracts at improved rates.
  • Home health cost per patient day increased approximately 1% year over year.
  • 30-day home health hospital readmission rate 20.0% better than national average.
  • Hospice average daily census increased 8.6% year over year.
    • Average daily census increased sequentially every month since January 2024.
  • Hospice admissions increased 6.5% year over year.
  • Hospice net service revenue increased 13.1% and Adjusted EBITDA increased 13.7% year over year.
  • Hospice cost per patient day increased 5.7% year over year.
  • Home office G&A expenses decreased approximately 12% due to cost control initiatives and incentive compensation expenses lower year over year.
  • Reduced bank debt by $10 million in the fourth quarter, bringing the total 2024 debt reduction to $40 million.
  • Opened three hospice de novo locations in Q4, bringing the 2024 total to one home health and five hospice de novo locations.

FINANCIAL RESULTS

Consolidated

SEGMENT RESULTS

Home health

Hospice

GUIDANCE

The Company is providing full-year 2025 guidance as follows:

For additional considerations regarding the Company’s financial results 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 a.m. EST on March 6, 2025, to discuss its results for the fourth quarter of 2024. 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/519715442. Following the call, a replay will be available on the Company’s website at: http://investors.ehab.com.

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 115 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 include certain “non-GAAP financial measures” as defined in Regulation G under the Exchange Act, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, 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 at the end of this presentation. Our Form 8-K, filed with the SEC as of the date of this presentation, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Additionally, our Form 10-K for the year ended December 31, 2024, provides further information regarding “unusual or nonrecurring items that are not typical of ongoing operations,” a reconciliation item in our Adjusted EBITDA calculation.

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

This press release contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, our future financial performance, our projected business results, or our projected capital expenditures. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, the reader can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Any forward-looking statement speaks only as of the date of this press release, and the Company 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, many of which are beyond our control. Actual events or results may differ materially from the results 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 the Company 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; changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payers’, and other contract counterparties’ information systems; the outcome of litigation; quality performance and ratings; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; and our ability to control costs, particularly labor and employee benefit costs. Additional information regarding 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 are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com.

Contacts

Investor relations contact


Jobie Williams
[email protected]
469-860-6061

Media contact


Erin Volbeda
[email protected]
972-338-5141