AdaptHealth Corp (AHCO) Reports 6.3% Increase in Q3 Net Revenue Despite Net Loss
AdaptHealth Corp (NASDAQ:AHCO) reports a 6.3% increase in net revenue for Q3 2023, amounting to $804.0 million.
The company experienced a net loss of $454.1 million, largely due to a $511.9 million pre-tax write down of goodwill.
Year-to-date cash flow from operations increased to $325.4 million, up from $276.9 million in the same period in 2022.
Adjusted EBITDA slightly increased by 0.6% to $161.2 million.
AdaptHealth Corp (NASDAQ:AHCO), a national leader in providing patient-centered, healthcare-at-home solutions, announced its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported an increase in net revenue by 6.3% to $804.0 million, compared to $756.5 million in the same quarter in 2022. However, the company also reported a net loss of $454.1 million, largely due to a $511.9 million pre-tax write down of goodwill.
Financial Performance and Highlights
Despite the net loss, the company's cash flow from operations increased significantly to $325.4 million year-to-date 2023, up from $276.9 million during the same period in 2022. Free cash flow also increased to $76.6 million year-to-date 2023, up from $28.4 million in the same period in 2022. The company's Adjusted EBITDA slightly increased by 0.6% to $161.2 million.
Management Commentary
We are pleased with the results of the third quarter, said Richard Barasch, Chairman and Interim CEO of AdaptHealth. Powered by our sleep products, we generated 6.3% growth over last year, leading to record revenues for the quarter. Equally important, we generated cash flow from operations of $98.8 million and free cash flow of $21.7 million. Adjusted EBITDA fell short of our expectations largely as a result of unplanned delays in the implementation of the Humana contract. Nevertheless, we believe that the contract will prove to be profitable for AdaptHealth.
Financial Outlook
AdaptHealth Corp (NASDAQ:AHCO) updated its financial guidance for fiscal year 2023, projecting net revenue of $3.160 to $3.185 billion, down from the previous estimate of $3.16 to $3.20 billion. The company also adjusted its EBITDA forecast to $630 to $650 million, down from $650 to $680 million. The projections for total capital expenditures and free cash flow as a percentage of net revenue remained unchanged.
Balance Sheet Overview
As of September 30, 2023, AdaptHealth Corp (NASDAQ:AHCO) reported total assets of $4.725 billion, down from $5.219 billion as of December 31, 2022. The company's total liabilities also decreased to $2.985 billion from $3.061 billion over the same period. The company's total stockholders' equity stood at $1.739 billion, down from $2.157 billion as of December 31, 2022.
Explore the complete 8-K earnings release (here) from AdaptHealth Corp for further details.
This article first appeared on GuruFocus.
