Enhavit (EHAB) Reports Strong Q2 Results

By Tamara Parker • Monday, July 15 15:13 • Permanent Link

Enhavit, Inc. (NYSE: EHAB) has released its unaudited preliminary results for the second quarter ended June 30, 2024. The company is set to report its actual financial results on August 6, 2024, and will host a webcast and conference call on August 7, 2024.

The unaudited preliminary results for the second quarter ended June 30, 2024, include:

Adjusted EBITDA* in the range of $24.5 million to $25.0 million.
Reduced bank debt by $15 million, including a $10 million payment on Enhavit’s revolving credit facility.
43% of Enhavit’s non-Medicare visits have shifted to payor innovation contracts at improved rates, marking an increase from 38% in the first quarter of 2024.

Barb Jacobsmeyer, Enhavit’s president and chief executive officer, commented on the company's performance. In the home health segment, there was a 6.4% year-over-year increase in admissions driven by non-Medicare admissions. Additionally, the teams effectively managed visits per episode and created additional capacity for growth.

In the hospice segment, Enhavit achieved monthly sequential growth in average daily census in June for the fifth consecutive month. The company also closely monitored and managed its costs, with the home health cost per visit coming in better than expected and hospice cost per day decreasing sequentially as census continued to grow.

Jacobsmeyer noted that the second quarter of 2024 is on track to mark Enhavit’s third consecutive quarter of business stabilization, positioning the company for profitable growth. She emphasized the strength of the company's strategy, disciplined approach to debt reduction, and commitment to stockholder value creation.

Enhavit’s preliminary results are based on the most recent information available to the company’s management.

*Note: EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and adjusted EBITDA is a non-GAAP financial measure. As a result of these announcements, the company's shares have moved -0.7% on the market, and are now trading at a price of $9.41. For more information, read the company's full 8-K submission here.

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