AdaptHealth Corp. (AHCO) Misses Q4 EPS by 16c, Revenues Beat; Raises FY20 Oultook

AdaptHealth Corp. (NASDAQ: AHCO) reported Q4 EPS of ($0.10), $0.16 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $149.5 million versus the consensus estimate of $142.26 million.

Fourth Quarter 2019

• Net revenue was $149.5 million, a 38% increase from the fourth quarter of 2018 and 10% higher than the third quarter of 2019.
• Net loss attributable to AdaptHealth Corp. was $3.4 million, which included $5.3 million of equity-based compensation and $7.8 million of transaction costs primarily related to the merger with DFB.
• Adjusted EBITDA less Patient Equipment Capex was $21.8 million, a 53% increase compared to the fourth quarter of 2018 and 17% higher than the third quarter of 2019.
• Adjusted EBITDA was $33.7 million, a 31% increase compared to the fourth quarter of 2018 and a 6% increase over the third quarter of 2019.

CEO Commentary

Luke McGee, Chief Executive Officer of AdaptHealth, commented, “we are very pleased with our 2019 performance, which we believe reflects our success in deploying a scalable growth model focused on organic sales, acquisitions, accretive capital deployment, margin expansion, and cash generation. We reported a record 2019 across key financial metrics, closed on a near record number of acquisitions, and generated strong organic top line growth. In the fourth quarter of 2019, we generated record net revenues, Adjusted EBITDA, and Adjusted EBITDA less Patient Equipment Capex driven in large part by ordering patterns, particularly on Positive Airway Pressure (PAP) resupply that are typically highest in the fourth quarter.”

GUIDANCE:

AdaptHealth Corp. sees FY2020 revenue of $765-782 million, versus the consensus of $770.94 million.

• 2020 Outlook Increased
  • AdaptHealth has increased its outlook for 2020. AdaptHealth now expects to generate net revenue of $765 million to $782 million, Adjusted EBITDA of $155 million to $158 million, and Adjusted EBITDA less Patient Equipment Capex of $95 million to $97 million. This outlook reflects the acquisitions of Advanced and PCS but excludes anticipated first year PCS operating losses as well as severance and restructuring costs associated with the PCS acquisition totaling approximately $15 million.

For earnings history and earnings-related data on AdaptHealth Corp. (AHCO) click here.

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