Full Press Release Details
REPORTS FIRST Quarter 2022 Results, UPDATES 2022 guidance,
ANNOUNCES $200 million SHARE REPURCHASE program
PLYMOUTH MEETING, Pa. - May 10, 2022 - AdaptHealth Corp. (NASDAQ:
AHCO) ("AdaptHealth" or the "Company"), a national leader in providing patient-centered, healthcare-at-home
solutions including home medical equipment, medical supplies, and related services, announced today
financial results for the first quarter ended March 31, 2022, and announced the authorization of a share repurchase program for up to
First Quarter Results
Guidance Updated for Fiscal Year 2022
Based on current business, market trends, governmental reimbursement
updates, and acquisitions to date, the Company is updating its previously issued financial guidance for fiscal year 2022, as follows:
Guidance for fiscal year 2022 does not include any contribution from
acquisitions that have not yet closed, or continuing Public Health Emergency benefits beyond the currently scheduled expiration date.
Share Repurchase Authorization
The Company announced that its Board of Directors has authorized a
share repurchase program for up to $200 million of the Company's common stock through December 31, 2022. The timing and actual number
of shares to be repurchased will depend upon market conditions and other factors. Shares may be repurchased from time to time on the open
market, through privately negotiated transactions or otherwise. Purchases may be started or stopped at any time without prior notice depending
on market conditions and other factors. The Company intends to fund the share repurchase program through its available cash and liquidity.
Management Commentary
Steve Griggs, Chief Executive Officer, commented, "We are very
pleased with our strong start to the year. During the quarter we have seen continued strength in our diabetes product line, consistent
with our expectations, and our HME product line continues to be resilient as CPAP patient set ups in March and April were at or near 2021
Despite overall economic challenges, including wage pressure and higher
equipment and fuel costs, AdaptHealth continues to meet our expectations for growth and profitability. Our operating and financial results
demonstrate the Company's strong position as a leading national provider of medical equipment and supplies across the U.S., with
an increasingly important role to play in the lives of our approximately 3.9 million patients.
The announcement of our $200 million share repurchase program reflects
our confidence in AdaptHealth's outlook and our Board of Directors' view that AdaptHealth's common stock continues to
trade at a discount based on our immediate prospects and the Company's long-term value. "
Josh Parnes, President, commented, "We remain focused as an organization
on driving efficiency amid the ongoing challenges in the operating environment, including through continued investments in technology
to drive better operating performance, improved patient outcomes, and reduced cost of care."
Management will host a conference call at 8:30
am ET today to discuss the results and business activities. Interested parties may participate in the call by dialing:
- (877) 407-6176 (Domestic) or
- (201) 689-8451 (International)
Webcast registration:
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-centered, healthcare-at-home solutions including home medical equipment (HME), medical supplies, and related services. The Company
provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to challenges
in their activities of daily living, and thrive. Product and service 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) HME to patients discharged
from acute care and other facilities, (iv) oxygen and related chronic therapy services in the home, and (v) other HME 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, reaching
approximately 3.9 million patients annually in all 50 states through its network of over 750 locations in 47 states.
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 customers' preferences, prospects
and the competitive conditions prevailing in the healthcare sector; and the impact of the 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.
Use of Non-GAAP Financial Information and Financial Guidance
This release contains non-GAAP financial guidance, which is adjusted
to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These non-GAAP
items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics,
such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative
of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods.
The Company uses EBITDA and Adjusted EBITDA, which are financial measures
that are not prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial
results and believes that they are useful to investors, as a supplement to U.S. GAAP measures.
The Company believes Adjusted EBITDA is useful to investors in evaluating
the Company's financial performance. The Company uses this metric as the profitability measure in its incentive compensation plans
that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent
consideration arrangements.
EBITDA and Adjusted EBITDA should not be considered as measures of
financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding
and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be
considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative
to cash flows from operating activities as a measure of the Company's liquidity.
There is no reliable or reasonably estimable comparable GAAP measure
for the Company's non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items, including
equity-based compensation expense, transaction costs, changes in fair value of the warrant liability, and other non-recurring items of