PLYMOUTH MEETING, PA — AdaptHealth Corp. (NASDAQ: AHCO), a national leader in home healthcare solutions, recently reported its financial results for the fiscal year and fourth quarter ending December 31, 2023.
For the full year of 2023, AdaptHealth reported net revenue of $3.2 billion, marking a 7.7% increase from the previous year’s $2.97 billion. This growth was primarily driven by non-acquired sources, which accounted for 7.3% of the increase. However, the company also reported a net loss of $678.9 million, compared to a net income of $69.3 million in the previous year. The loss is largely attributed to a pre-tax goodwill write-down of $830.8 million.
Despite this setback, the company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 13.0%, from $593.8 million to $670.8 million. Additionally, cash flow from operations rose by 28.6% to $480.7 million, and free cash flow saw a significant increase from a deficit of $17.6 million to a positive $143.2 million.
In the fourth quarter alone, AdaptHealth reported a 10.0% increase in net revenue, reaching $858.2 million. The period also saw a net loss of $254.5 million, largely due to a pre-tax goodwill write-down of $318.9 million. Despite this, the company’s adjusted EBITDA rose by 40.2% to $204.6 million, and cash flow from operations saw a substantial increase of 60.2% to $155.3 million. Free cash flow for the quarter was also positive, at $66.6 million.
Looking ahead, AdaptHealth provided its initial financial guidance for the 2024 fiscal year, projecting net revenue of $3.25 to $3.35 billion, adjusted EBITDA of $650 to $710 million, and free cash flow of $150 to $180 million.
Richard Barasch, Chairman and Interim CEO of AdaptHealth, expressed confidence in the company’s performance. “We closed out 2023 with strong performance across the board in the fourth quarter. Driven by continued strength in sleep and respiratory, we generated record revenue of $3.2 billion, up 7.7% year-over-year, nearly all from non-acquired sources,” he said.
Barasch also noted the improvement in cash flow from operations and free cash flow as a highlight of the year, and expressed satisfaction with the company’s declining leverage ratio, which fell from 3.69x to 3.16x.
“AdaptHealth provides needed medical equipment and supplies to approximately 4.1 million patients annually,” Barasch added. “Our nearly 11,000 employees, including approximately 1,000 healthcare professionals, are committed to constant improvement in our service and value to these patients so they can live better and healthier lives.”
AdaptHealth is known for providing patient-centered, healthcare-at-home solutions, including home medical equipment (HME), medical supplies, and related services. The company offers a full suite of medical products and solutions designed to help patients manage chronic conditions at home. Despite the goodwill write-down, the company’s performance indicates solid operational efficiency and an effective growth strategy that should continue to serve it well in the future.
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