PLYMOUTH MEETING, Pa. (May 10, 2022)—AdaptHealth Corp. announced first quarter revenues were up 47% over 2021 and the authorization of a share repurchase program for up to $200 million as part of a quarterly earnings report released this week. Adapt Health is a national provider of patient-centered, health care-at-home solutions including home medical equipment (HME), medical supplies and related services.
“We are very pleased with our strong start to the year,” said Steve Griggs, chief executive officer. “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 levels.”
AdaptHealth delivered solid net revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter, as it began to overcome ongoing challenges resulting from shortages of CPAP equipment. Net revenue was $706.2 million compared to $482.1 million in the first quarter of 2021, an increase of 46.5%.
“Despite overall economic challenges, including wage pressure and higher equipment and fuel costs, AdaptHealth continues to meet our expectations for growth and profitability,” said Griggs. “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 company also reported net income of $41.8 million, or $0.08 per diluted share, compared to a net loss of $4.0 million, or $0.08 per diluted share, in the first quarter of 2021. Organic growth for the first quarter was 3.7% and non-acquired growth was 3.7%. Adjusted EBITDA was $137.6 million, compared to $104.2 million in the first quarter of 2021, an increase of 32.1%.
During the first quarter, the company began integration of the previously-announced acquisition of Community Surgical Supply, and for the year to date, has completed six acquisitions of HME and sleep providers.
Cash flow from operations was $66.5 million in the first quarter of 2022 compared to $18.4 million in the first quarter of 2021.
Josh Parnes, president, said, “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.
Share Repurchase Authorization
The company also announced that its board of directors has authorized a share repurchase program for up to $200 million of the company’s common stock through Dec. 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.
“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,” Griggs said.
Visit adapthealth.com for more information.