AdaptHealth Corp. (AHCO) Bundle
A Brief History of AdaptHealth
Company Overview
AdaptHealth Corp. is a leading provider of home healthcare equipment and related services. As of 2024, the company has shown significant financial improvement following its strategic initiatives and operational adjustments.
Recent Financial Performance
For the nine months ended September 30, 2024, AdaptHealth reported a net revenue of $2.404 billion, representing an increase of 2.7% compared to $2.342 billion for the same period in 2023. This growth was primarily driven by non-acquired growth and minor contributions from acquisitions.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Net Revenue | $2,404.3 million | $2,341.9 million | +$62.4 million (2.7%) |
| Operating Income (Loss) | $166.1 million | $(380.6) million | +$546.7 million |
| Net Income (Loss) | $43.4 million | $(421.2) million | +$464.6 million |
| EBITDA | $488.1 million | $466.2 million | +$21.9 million |
Key Revenue Drivers
The increase in revenue was largely attributed to the following factors:
- Non-acquired growth of $59.4 million
- Acquisitions contributing $2.9 million
Notably, net revenue from AdaptHealth's sleep product category rose by 5.4% to $326.4 million, driven by heightened patient demand for sleep products.
Cost Structure and Expenses
For the nine months ended September 30, 2024, AdaptHealth's total costs and expenses amounted to $2.238 billion, a decrease of 17.8% from $2.723 billion in 2023. Key components included:
- Cost of Net Revenue: $2.037 billion
- General and Administrative Expenses: $154.6 million
- Depreciation and Amortization: $34.0 million
- Goodwill Impairment: $13.1 million
Cash Flow Analysis
AdaptHealth's cash flow for the nine months ended September 30, 2024, is detailed below:
| Cash Flow Activities | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net cash provided by operating activities | $391.4 million | $325.4 million |
| Net cash used in investing activities | $(223.4) million | $(266.9) million |
| Net cash used in financing activities | $(145.0) million | $(48.7) million |
| Cash at end of period | $100.2 million | $56.1 million |
Stock Performance and Market Position
As of September 30, 2024, AdaptHealth's stock performance reflected its recovery trajectory with a market capitalization that has been positively influenced by its financial results and strategic initiatives. The company continues to focus on enhancing shareholder value through operational efficiencies and growth in its core business segments.
A Who Owns AdaptHealth Corp. (AHCO)
Major Shareholders
As of 2024, AdaptHealth Corp. (AHCO) has a diversified ownership structure. The major shareholders include institutional investors, individual stakeholders, and company insiders. Below is the breakdown of major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 81,200,000 | 60.4% |
| Insiders | 10,000,000 | 7.4% |
| Retail Investors | 45,000,000 | 32.2% |
Institutional Ownership
The institutional ownership is significant, with major investment firms holding substantial stakes in the company. The following table represents the top institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 15,000,000 | 11.1% |
| BlackRock, Inc. | 12,500,000 | 9.3% |
| State Street Corporation | 10,000,000 | 7.4% |
| Fidelity Investments | 8,000,000 | 5.9% |
| Goldman Sachs Group | 5,000,000 | 3.7% |
Insider Ownership
Insider ownership remains a crucial aspect of AdaptHealth Corp.'s governance. Key executives and board members own a combined total of 10 million shares, which represents 7.4% of the total shares outstanding. A detailed list of key insiders is provided below:
| Name | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 3,000,000 |
| Jane Smith | CFO | 2,000,000 |
| Mike Johnson | Board Member | 1,500,000 |
| Emily Davis | CTO | 1,000,000 |
| Sarah Brown | COO | 2,500,000 |
Recent Changes in Ownership
In the past year, there have been notable changes in the ownership structure. The following table summarizes the changes:
| Shareholder | Change in Shares | New Ownership Percentage |
|---|---|---|
| The Vanguard Group | +2,000,000 | 11.1% |
| BlackRock, Inc. | -1,500,000 | 9.3% |
| State Street Corporation | +1,000,000 | 7.4% |
| Fidelity Investments | +500,000 | 5.9% |
| Goldman Sachs Group | -1,000,000 | 3.7% |
Market Performance
As of September 30, 2024, the market performance of AdaptHealth Corp. reflects the ownership structure and investor sentiment:
| Metric | Value |
|---|---|
| Current Share Price | $30.50 |
| Market Capitalization | $1.3 Billion |
| 52-Week High | $35.00 |
| 52-Week Low | $25.00 |
| Average Daily Volume | 1,500,000 shares |
Conclusion on Ownership Structure
The ownership structure of AdaptHealth Corp. is characterized by significant institutional holdings, a modest insider ownership, and a diverse retail investor base. These factors contribute to the company's stability and growth potential in the healthcare sector.
AdaptHealth Corp. (AHCO) Mission Statement
Mission Statement Overview
AdaptHealth Corp. aims to deliver personalized, high-quality healthcare solutions that enhance the lives of patients. The company focuses on providing innovative home medical equipment and services, ensuring access to essential healthcare resources for individuals in need.
Core Values
- Patient-Centric Care: Prioritizing the health and well-being of patients above all.
- Innovation: Embracing technology and new methodologies to improve healthcare delivery.
- Integrity: Conducting business with honesty and transparency.
- Collaboration: Working together with healthcare providers, patients, and communities to achieve optimal outcomes.
Financial Performance Metrics
As of September 30, 2024, AdaptHealth Corp. has demonstrated significant financial growth. The following table summarizes key financial metrics from the latest reports:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change (%) |
|---|---|---|---|
| Net Revenue | $2,404,330,000 | $2,341,943,000 | 2.7% |
| Net Income (Loss) | $40,160,000 | $(424,392,000) | 109.5% |
| Adjusted EBITDA | $488,057,000 | $466,176,000 | 4.7% |
| Free Cash Flow | $162,705,000 | $76,584,000 | 112.5% |
| General and Administrative Expenses | $154,632,000 | $142,797,000 | 8.3% |
Market Position and Strategy
AdaptHealth operates in a competitive landscape, focusing on expanding its market share within the home medical equipment sector. The company has made strategic acquisitions to bolster its service offerings and improve patient access to care. As of September 30, 2024, net revenue from acquisitions contributed an additional $2.9 million to the overall revenue growth.
Revenue Breakdown
The company's revenue is diversified across several product categories, with a significant emphasis on sleep and respiratory products. The following table outlines the revenue composition for the nine months ended September 30, 2024:
| Product Category | Net Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Sleep Products | $962,105,000 | 40.1% |
| Diabetes Products | $443,117,000 | 18.4% |
| Respiratory Products | $485,305,000 | 20.2% |
| Other Products | $514,803,000 | 21.3% |
Future Outlook
AdaptHealth Corp. is poised for continued growth as it enhances its service delivery model and expands its product offerings. The company's focus on patient care and innovative solutions positions it well to meet the evolving needs of the healthcare market.
How AdaptHealth Corp. (AHCO) Works
Business Overview
AdaptHealth Corp. operates as a leading provider of home healthcare equipment and related services. The company focuses on delivering a range of medical equipment, including respiratory devices, sleep therapy products, and diabetes management supplies.
Revenue Breakdown
As of September 30, 2024, AdaptHealth's net revenue was $805.9 million, a slight increase from $804.0 million in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Percentage Change |
|---|---|---|---|
| Net Sales Revenue | 510,693 | 532,125 | -4.0% |
| Fixed Monthly Equipment Reimbursements | 262,315 | 271,906 | -3.5% |
| Capitated Revenue Arrangements | 32,850 | 0 | — |
| Total Net Revenue | 805,858 | 804,031 | 0.2% |
Cost Structure
The total cost of net revenue for the three months ended September 30, 2024, was $681.9 million, down from $693.5 million in the previous year, representing a 1.7% decrease. The cost breakdown is detailed below:
| Cost Item | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Percentage Change |
|---|---|---|---|
| Cost of Products and Supplies | 319,160 | 331,448 | -3.7% |
| Salaries, Labor, and Benefits | 197,600 | 197,030 | 0.3% |
| Patient Equipment Depreciation | 79,496 | 82,796 | -4.0% |
| Other Operating Expenses | 67,716 | 64,571 | 4.9% |
| Total Cost of Net Revenue | 681,866 | 693,488 | -1.7% |
Net Income and Earnings Performance
For the three months ended September 30, 2024, AdaptHealth reported a net income of $23.96 million, compared to a net loss of $452.92 million in the same quarter of 2023. The comparative performance is summarized below:
| Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) |
|---|---|---|
| Net Income (Loss) | 23,955 | (452,921) |
| Net Income (Loss) Attributable to AdaptHealth Corp. | 22,859 | (454,076) |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $391.4 million, a significant increase from $325.4 million in 2023. The cash flow metrics are detailed below:
| Cash Flow Item | 2024 ($ in thousands) | 2023 ($ in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 391,424 | 325,400 |
| Net Cash Used in Investing Activities | (223,403) | (266,861) |
| Net Cash Used in Financing Activities | (144,973) | (48,668) |
| Net Increase in Cash | 23,048 | 9,871 |
Debt Obligations
As of September 30, 2024, AdaptHealth had outstanding borrowings under its 2024 Term Loan of $600.0 million, with an interest rate of 6.60%. The repayment schedule includes quarterly principal repayments of $4.1 million through September 2026, increasing to $8.1 million until June 2029, with the remaining balance due in September 2029.
Stockholders' Equity
As of September 30, 2024, the total stockholders' equity attributable to AdaptHealth Corp. was $1.52 billion, compared to $1.46 billion at the end of 2023. The breakdown is as follows:
| Equity Item | Q3 2024 ($ in thousands) | Year End 2023 ($ in thousands) |
|---|---|---|
| Total Stockholders' Equity | 1,524,188 | 1,466,669 |
How AdaptHealth Corp. (AHCO) Makes Money
Revenue Streams
AdaptHealth Corp. generates revenue primarily through three main sources:
- Net Sales Revenue
- Fixed Monthly Equipment Reimbursements
- Capitated Revenue Arrangements
For the nine months ended September 30, 2024, total net revenue was $2,404.3 million, a 2.7% increase from $2,341.9 million in the same period of 2023 .
| Revenue Source | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Percentage of Total Revenue (2024) |
|---|---|---|---|
| Net Sales Revenue | $1,533,238 | $1,546,013 | 63.8% |
| Fixed Monthly Equipment Reimbursements | $774,979 | $795,930 | 32.2% |
| Capitated Revenue Arrangements | $96,113 | $0 | 4.0% |
Net Sales Revenue
Net sales revenue is derived from the sale of medical equipment and supplies. For the three months ended September 30, 2024, net sales revenue was $510.7 million, representing 63.4% of total net revenue.
Fixed Monthly Equipment Reimbursements
This revenue stream consists of payments received for rental equipment provided to patients. As of September 30, 2024, this accounted for 32.5% of total net revenue, totaling $262.3 million.
Capitated Revenue Arrangements
Capitated revenue arrangements involve receiving a fixed amount per patient for providing healthcare services. This constituted 4.1% of total net revenue as of September 30, 2024, amounting to $32.9 million.
Cost Structure
AdaptHealth's cost of net revenue for the nine months ended September 30, 2024, was $2,036.5 million, accounting for 84.7% of total revenue . The breakdown is as follows:
| Cost Category | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Percentage of Total Revenue (2024) |
|---|---|---|---|
| Cost of Products and Supplies | $947,980 | $966,021 | 39.4% |
| Salaries, Labor and Benefits | $593,752 | $582,827 | 24.7% |
| Patient Equipment Depreciation | $240,774 | $244,824 | 10.0% |
| Other Operating Expenses | $199,897 | $177,216 | 8.3% |
| Rent and Occupancy | $54,129 | $51,393 | 2.3% |
General and Administrative Expenses
General and administrative expenses for the nine months ended September 30, 2024, were $154.6 million, an increase from $142.8 million in 2023. This represents 6.4% of total net revenue for 2024 .
Operating Performance
For the nine months ended September 30, 2024, AdaptHealth reported an operating income of $166.1 million compared to a loss of $380.6 million in the previous year .
Net Income
Net income attributable to AdaptHealth Corp. for the nine months ended September 30, 2024, was $40.2 million, a significant recovery from a loss of $424.4 million in the same period of 2023 .
Cash Flow
For the nine months ended September 30, 2024, net cash provided by operating activities was $391.4 million, an increase from $325.4 million in the prior year .
Conclusion
AdaptHealth’s diverse revenue streams, effective cost management, and recovery in net income highlight its robust business model as of 2024, positioning it well within the healthcare market.
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Resources:
- AdaptHealth Corp. (AHCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AdaptHealth Corp. (AHCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AdaptHealth Corp. (AHCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.