NYSE$EHAB

Enhabit Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Enhabit reported a slight decline in net service revenue and a significant decrease in net income and adjusted EBITDA for the fourth quarter of 2022.

Enhabit, Inc. reported net service revenue of $275.1 million for the fourth quarter of 2022, a 0.4% decline from Q4 2021. Net income decreased by 72.5% to $8.2 million, and Adjusted EBITDA was down 17.8% to $40.3 million.

  • Net service revenue for Q4 2022 was $275.1 million, a slight decrease of 0.4% compared to Q4 2021.
  • Net income for Q4 2022 significantly declined by 72.5% to $8.2 million.
  • Adjusted EBITDA for Q4 2022 was $40.3 million, representing a 17.8% decrease from the prior year.
  • Home health Medicare Advantage experienced strong growth with nine new negotiated agreements added during the fourth quarter.

Headline financials

Total Revenue

$275M

No prior period
EPS (adj)

$0.32

No prior period
Adjusted EBITDA

$30.3M

No prior period
Adjusted EBITDA Margin

11.5%

No prior period
Home Health Admissions

50.0K

No prior period
Home Health Cost per Visit

$92.00

No prior period
Hospice Admissions

2.9K

No prior period
Hospice Patient Days

330.1K

No prior period
Hospice Average Daily Census

3.6K

No prior period
Hospice Revenue per Patient Day

$144.00

No prior period
Hospice Cost per Patient Day

$74.00

No prior period
Total Home Health Visits

1.2M

No prior period
Capital Expenditures

-$400K

No prior period
Free Cash Flow

$4.2M

No prior period
Net Income

$8.2M

No prior period
Operating Income

$27M

No prior period
Gross Profit

$142M

No prior period
Cash & Equivalents

$22.9M

No prior period
Total Assets

$1.65B

No prior period

Revenue & EPS history

Enhabit · Revenue · Quarterly

$275M

Q4 2022
Beat estimate in 3 of 4 quarters(75%)
ActualEstimate

Revenue by segment

Enhabit · $263M total across 2 segments · Q4 2022

  • Home Health
    $216M
  • Hospice
    $47.4M

Forward guidance

Enhabit provided full-year 2023 guidance with net service revenue projected between $1,110 million and $1,140 million, Adjusted EBITDA between $125 million and $140 million, and Adjusted EPS between $0.50 and $0.89.

Tailwinds

  • The company is confident in the long-term prospects for Enhabit despite facing numerous headwinds in 2023.
  • Expansion of human resource and talent acquisitions teams is making notable progress.
  • Establishment of a payor innovation team is making notable progress.
  • Strategic changes to management and the staffing model in hospice are making notable progress.
  • Operational and sales teams are being aligned into a regional structure to drive clinical and operational success at a local level.

Headwinds

  • The company faces numerous headwinds in 2023.
  • The guidance for comparable GAAP measures for Adjusted EBITDA and Adjusted EPS is not provided due to inherent difficulty in predicting future impacts of certain items.
  • Future impacts of items like gains or losses related to hedging instruments are outside the company's control.
  • Loss on early extinguishment of debt is an unpredictable factor.
  • Adjustments to income tax provision (e.g., valuation allowance adjustments and settlements of income tax claims) and items related to corporate and facility restructurings are difficult to forecast.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+8.6%

Avg return

30 days after

40%

6 / 15 earnings

Positive

+18.2%

Q1 2025

Best reaction

-6.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+0.1%
Q4 2025+0.0%+0.0%+2.9%
Q3 2025-6.1%-2.7%+13.6%
Q2 2025+15.2%+11.4%+15.1%
Q1 2025+18.2%+27.7%+31.7%
Q4 2024+1.6%+2.3%+13.3%
Q3 2024-0.4%-5.7%-12.0%
Q2 2024+0.0%-3.1%+14.8%
Q1 2024+0.0%-5.4%-13.4%
Q4 2022+0.0%-5.7%-0.4%
Q3 2023+6.1%+6.7%+19.3%
Q2 2023-2.6%-2.9%+5.6%
Q1 2023-4.5%-6.0%-2.0%
Q3 2022-0.1%+1.9%+11.3%
Q2 2022+1.7%+5.1%+20.6%

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