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SELECTED HISTORICAL FINANCIAL INFORMATION OF ADAPTHEALTH
The following table shows selected historical financial information of AdaptHealth Holdings for the periods and as of the dates indicated. The selected historical consolidated financial information of AdaptHealth Holdings as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 was derived from the audited historical consolidated financial statements of AdaptHealth Holdings included or incorporated by reference elsewhere in this Current Report on Form 8-K. The selected historical interim condensed consolidated financial information of AdaptHealth Holdings as of September 30, 2019 and for the nine months ended September 30, 2019 and 2018 was derived from the unaudited interim condensed consolidated financial statements of AdaptHealth Holdings included or incorporated by reference elsewhere in this Current Report on Form 8-K.
AdaptHealth Holdings historical results are not necessarily indicative of future operating results. The selected consolidated financial information should be read in conjunction with Management s Discussion and Analysis of Financial Condition and Results of Operations of AdaptHealth, as well as the historical consolidated financial statements of AdaptHealth Holdings and accompanying notes included or incorporated by reference elsewhere in this Current Report on Form 8-K.
| (in thousands) | Nine Months Ended September 30, | Year Ended December 31, | ||||||||||||||
| Statements of Operations Data: | 2019 | 2018 | 2018 | 2017 | 2016 | |||||||||||
| (unaudited) | ||||||||||||||||
| Total net revenue | $ | 380,103 | $ | 236,625 | $ | 345,278 | $ | 192,559 | $ | 174,316 | ||||||
| Net (loss) income attributable to AdaptHealth Holdings | $ | (11,570 | ) | $ | 19,756 | $ | 23,260 | $ | 9,687 | $ | (4,183 | ) |
| (in thousands) | As of September 30, | As of December 31, | ||||||||
| Balance Sheet Data: | 2019 | 2018 | 2017 | |||||||
| (unaudited) | ||||||||||
| Total assets | $ | 427,987 | $ | 368,957 | $ | 111,984 | ||||
| Total long-term obligations, including current portion | $ | 456,523 | $ | 158,415 | $ | 66,935 |
The following table sets forth selected elements of AdaptHealth Holdings Consolidated Statements of Cash Flows:
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2018 | 2017 | 2016 | |||||||||||
| (unaudited) | ||||||||||||||||
| Net Cash provided by Operating Activities | $ | 43,174 | $ | 43,147 | $ | 68,427 | $ | 45,930 | $ | 29,936 | ||||||
| Net Cash used in Investing Activities | $ | (62,399 | ) | $ | (86,048 | ) | $ | (96,284 | ) | $ | (15,077 | ) | $ | (2,676 | ) | |
| Net Cash provided by (used in) Financing Activities | $ | 2,862 | $ | 59,528 | $ | 48,769 | $ | (30,263 | ) | $ | (27,580 | ) |
The following table sets forth EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex:
| Nine Months Ended September 30, | Year Ended December 31, | ||||||||||
| (in thousands) | 2019 | 2018 | 2018 | 2017 | 2016 | ||||||
| (unaudited) | |||||||||||
| EBITDA | $71,938 | $54,130 | $77,569 | $43,580 | $28,886 | ||||||
| Adjusted EBITDA | $89,352 | $58,734 | $84,447 | $45,035 | $33,104 | ||||||
| Adjusted EBITDA less Patient Equipment Capex | $53,763 | $30,828 | $45,083 | $19,186 | $7,625 |
The following table reconciles net income (loss) attributable to AdaptHealth Holdings, the most directly comparable GAAP measure, to EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex:
| Nine Months | Year Ended | |||||||||||||||
| Ended September 30, | December 31, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2018 | 2017 | 2016 | |||||||||||
| (unaudited) | ||||||||||||||||
| Net (loss) income attributable to AdaptHealth Holdings LLC | $ | (11,570 | ) | $ | 19,756 | $ | 23,260 | $ | 9,687 | $ | (4,183 | ) | ||||
| Income attributable to noncontrolling interest | 1,336 | 681 | 1,077 | 580 | 563 | |||||||||||
| Interest expense (income) - Excluding change in FV of interest rate swaps | 19,292 | 5,481 | 8,000 | 5,041 | 5,761 | |||||||||||
| Interest expense (income) - Change in FV of interest rate swaps | 12,359 | (281 | ) | (547 | ) | |||||||||||
| Income tax expense (benefit) | 5,444 | (4,519 | ) | (2,098 | ) | 249 | (208 | ) | ||||||||
| Depreciation | 45,077 | 33,012 | 47,877 | 27,816 | 26,563 | |||||||||||
| Loss from discontinued operations, net of tax | 207 | 390 | ||||||||||||||
| EBITDA | 71,938 | 54,130 | 77,569 | 43,580 | 28,886 | |||||||||||
| Loss on extinguishment of debt, net (a) | 2,121 | 1,399 | 1,399 | 324 | ||||||||||||
| Equity-based compensation expense (b) | 5,806 | 571 | 884 | 49 | 49 | |||||||||||
| Transaction costs (c) | 8,232 | 1,342 | 2,514 | |||||||||||||
| Severance (d) | 721 | 1,198 | 1,920 | 826 | 430 | |||||||||||
| Non-recurring expenses (e) | 534 | 94 | 161 | 256 | 3,739 | |||||||||||
| Adjusted EBITDA | 89,352 | 58,734 | 84,447 | 45,035 | 33,104 | |||||||||||
| Less: Patient equipment capex (f) | (35,589 | ) | (27,906 | ) | (39,364 | ) | (25,849 | ) | (25,479 | ) | ||||||
| Adjusted EBITDA less Patient Equipment Capex | $ | 53,763 | $ | 30,828 | $ | 45,083 | $ | 19,186 | $ | 7,625 |
(a) Represents write off of deferred financing costs and prepayment penalty expense related to refinancing of debt offset by gain on debt extinguishment.
(b) Represents amortization of equity-based compensation to employees and expense resulting from accelerated vesting of certain profit interests.
(c) Represents transaction costs primarily related to acquisition growth, the 2019 Recapitalization, and costs related to the Business Combination.
(d) Represents severance costs related to acquisition integration and internal AdaptHealth Holdings restructuring and workforce reduction activities.
(e) Represents one-time legal and consulting expenses, in addition to certain non-recurring expenses.
(f) Represents patient equipment acquired during the respective period without regard to the manner in which the equipment was financed.