AdaptHealth Corp. · Q1 2020 earnings

Briefing

Announced first quarter 2020 financial results, demonstrating resilience amidst COVID-19 challenges and successful deployment of a scalable growth model focused on organic sales, acquisitions, margin expansion, and cash generation.

AdaptHealth Corp. reported a strong first quarter despite COVID-19 challenges, driven by the team's hard work and the company's scalable growth model. The HME business performed well, and two accretive HME business acquisitions were closed and fully integrated. PCS generated $33.9 million in net revenue, with progress made in addressing issues and growth expected in continuous glucose monitoring.

• Strong first quarter performance reflects the extraordinary hard work, resilience and dedication of the AdaptHealth team.
• Successfully deploying a scalable growth model focused on organic sales, acquisitions, accretive capital deployment, margin expansion, and cash generation.
• Closed and fully integrated two significant and accretive HME business acquisitions during the quarter that are also expected to add an aggregate $91 million in net revenue in 2020.
• Patient Care Solutions (PCS) generated net revenue of $33.9 million for the quarter and exceeded internal revenue and operational projections.

Headline financials

Revenue & EPS history

Based on current trends, the company is affirming its financial guidance for 2020 of net revenue between $790 million to $808 million, Adjusted EBITDA of $160 million to $164 million, and Adjusted EBITDA less Patient Equipment Capex of $98 million to $101 million. This outlook excludes anticipated first year PCS operating losses as well as severance and restructuring costs associated with the PCS acquisition totaling approximately $15 million.