Full Press Release Details
ADAPTHEALTH CORP. ANNOUNCES FOURTH
QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS
Plymouth Meeting, PA - March 4, 2021 - AdaptHealth
Corp. (NASDAQ: AHCO) ("AdaptHealth" or the "Company"), a national leader in providing patient-centric
and technology-enabled chronic disease management solutions including home healthcare equipment, medical supplies to the home and
related services in the United States, announced today financial results for the fourth
quarter and full year ended December 31, 2020.
Fourth Quarter Results
While it is difficult to predict the duration and impact of
the COVID-19 crisis, based on current business and market trends, the Company is increasing its previously issued financial guidance
for fiscal year 2021 as follows:
Luke McGee, Co-CEO of AdaptHealth, commented, "We are
very pleased with our 2020 performance, which we believe is a testament to our relentless focus on our patients and referral sources
and our ability to drive growth through process improvements and technology solutions. In the fourth quarter, our diabetes business
drove substantial growth as the result of high ordering patterns in December and our continued investment in accretive acquisitions.
We are increasing guidance for 2021 as a result of these acquisitions as well as from our prospects for organic growth in 2021.
We are benefiting not only from the underlying growth in the diabetes business in general, but also from our investments in our
other chronic disease businesses such as obstructive sleep apnea. The enhanced scale of the combined AdaptHealth and AeroCare (serving
nearly 3 million patients annually) positions us as a national leader in helping patients manage chronic diseases."
Steve Griggs, Co-CEO of AdaptHealth, added, "Joining the
AdaptHealth team and witnessing the collaboration between AdaptHealth and AeroCare employees has been incredibly rewarding. As
a result of the strong cultural fit between both organizations, we feel we have already become one company. The AeroCare team has
been welcomed with open arms and recognized for the complementary skills we're able to bring to AdaptHealth. The transition
has thus far been incredibly smooth and we are already hard at work to deliver the $50 million cost synergy target and enhance
the organic growth of the combined company."
Steve together commented, "One of the most exciting aspects of our integration is bringing together the proprietary patient
care technology both organizations have been developing independently. We are combining the best features of each technology solution
as part of our integration plans. Our technology enables interactive patient engagement, advances compliance and monitoring capabilities,
lowers operating costs, and provides patients with greater care."
Accounting for Contingent Consideration Common Shares
Together with our independent auditors, we have reevaluated
the accounting treatment of the previously disclosed contingent consideration common shares to which the former owners of AdaptHealth
Holdings are entitled (the "Contingent Common Shares") in connection with the Business Combination. Due to the fact
that the issuance of the Contingent Common Shares would be accelerated on a change of control regardless of the transaction value,
we have determined, consistent with recent SEC comments to other SPAC registrants, to present the Contingent Common Shares as liability-classified,
not equity-classified as previously presented. Accordingly, the fair value of the Contingent Common Shares is reflected as
a liability on the Company's consolidated balance sheets at December 31, 2020 and 2019, and the non-cash change in the fair
value each period is recognized in the Company's consolidated statements of operations. In our 2020 Form 10-K we will
recast our December 31, 2019 consolidated balance sheet and adjust our unaudited 2020 quarterly consolidated statements of operations
to reflect such accounting. We will also update our unaudited pro forma financial information recently filed on Form 8-K with respect
to the AeroCare acquisition, consistent with this treatment. When presenting diluted earnings (loss) per share for 2020 and
2019 periods in prior SEC filings, the Contingent Common Shares were included in the diluted share count in accordance with U.S.
GAAP. The change in fair value each period is a non-cash charge and has no impact on historical reported revenues, operating
income and adjusted EBITDA of the Company for any period.
Management will host a conference at 8:30
am ET today to discuss the results and business activities. Interested parties may participate in the call by dialing:
Webcast registration: Click Here
Following the live call, a replay will be available for six
months on the Company's website, www.adapthealth.com under "Investor Relations."
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centric
and technology enabled chronic disease management solutions including home healthcare equipment, medical supplies to the home
and related services in the United States. AdaptHealth provides a full suite of medical products and solutions designed to help
patients manage chronic conditions in the home, adapt to life and thrive. Product and services offerings include (i) sleep
therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from obstructive
sleep apnea, (ii) medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors
and insulin pumps), (iii) home medical equipment (HME) to patients discharged from acute care and other facilities, (iv) oxygen
and related chronic therapy services in the home, and (v) other HME medical devices and supplies on behalf of chronically
ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. The Company is proud to partner with
an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled
nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid and commercial insurance payors. AdaptHealth
services nearly 3 million patients annually in all 50 states through its network of over 500 locations in 46 states. Learn more
On July 8, 2019, AdaptHealth Holdings LLC ("AdaptHealth Holdings")
entered into an Agreement and Plan of Merger (the "Merger Agreement"), as amended on October 15, 2019, with DFB Healthcare Acquisitions
Corp. ("DFB"), pursuant to which AdaptHealth Holdings combined with DFB (the "Business Combination"). The merger was
approved by DFB's stockholders, and the Business Combination closed on November 8, 2019. AdaptHealth Holdings was the accounting
acquirer in the merger, which was treated as a reverse recapitalization. Accordingly, for accounting purposes, the merger was treated
as the equivalent of AdaptHealth Holdings issuing stock for the net assets of DFB, accompanied by a recapitalization. In connection
with the Business Combination, the name of the combined company was changed to AdaptHealth Corp.
Forward-Looking Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," and similar expressions that predict or indicate
future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not
limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and
projections of market opportunity and expectations and the Company's acquisition pipeline. These statements are based on
various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied
on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events
and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances
are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party
or governmental investigations to which the Company may become subject that could interrupt or limit the Company's operations,
result in adverse judgments, settlements or fines and create negative publicity; changes in the Company's clients'
preferences, prospects and the competitive conditions prevailing in the healthcare sector; and the impact of the recent coronavirus
(COVID-19) pandemic and the Company's response to it. A further description of such risks and uncertainties can be found
in the Company's filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect,
actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks
that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company's
expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that
subsequent events and developments will cause the Company's assessments to change. However, while the Company may elect to
update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent
to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.