Enhabit, Inc. · NYSE:EHAB
Enhabit — Q1 2025 Earnings Presentation
30 slides from Enhabit's earnings presentation, May 7, 2025
Slide 1: First Quarter Earnings Call Supplemental Information
First Quarter Earnings Call Supplemental Information May 8, 2025
Slide 2: Disclaimer: Forward looking statements
Enhabit Home Health & Hospice 2 Disclaimer Forward looking statements This presentation contains historical information, as well as forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amen
Slide 3: Contents
Contents Overview 4 2025 Priorities 5 Quarterly Results at a Glance 6 Consolidated Results 7 Clinical Expertise and High-Quality Outcomes 8 Home Health Segment and KPI Performance 9-10 Hospice Segment and KPI Performance 11-12 Consolidated Adjusted EBITDA 13 Debt and Liquidity Metrics 14 Adjusted Fr
Slide 4: Overview
Enhabit Home Health & Hospice 4 Overview 108 Hospice locations co-located with Home Health locations(1) Home Health Locations Hospice Locations Home Health & Hospice State Home Health Only State (1) As of March 31, 2025 - due to scale, not all locations can be represented by locational markers 113 H
Slide 5: 2025 Priorities for Success
Enhabit Home Health & Hospice 5 2025 Priorities for Success • Home health census ◦ Payer mix • Hospice average daily census • Open de novo locations in strategic markets • Optimize de novo locations opened in 2023 and 2024 • Continue de-leveraging the balance sheet • G&A expense management • Home he
Slide 6: Quarterly Results at a Glance
Enhabit Home Health & Hospice 6 Improved financial performance • Net income attributable to Enhabit, Inc. of $17.8 million, which includes a gain on sale of investment of $14.7 million, net of tax. • Consolidated Adjusted EBITDA grew 5.1% year over year and 6.0% sequentially to $26.6 million. • Redu
Slide 7: Consolidated Results
Enhabit Home Health & Hospice 7 Consolidated Results ($ in millions, except per share data) Q1 '25 vs. '242025 2024 Home health net service revenue $200.6 $213.2 (5.9) % Hospice net service revenue 59.3 49.2 20.5 % Total net service revenue $259.9 $262.4 (1.0) % % of revenue % of revenue Cost of ser
Slide 8: Clinical Expertise and High-Quality Outcomes
Enhabit Home Health & Hospice 8 Clinical Expertise and High-Quality Outcomes Enhabit National Average % Better Than Average QoPC Star Rating1 3.2 3.0 6.7% 70% of our home health agencies are 3 Stars or higher; 21% are 4 Stars or higher1 HHCAHPS Star Rating2 3.9 3.7 5.4% 99% of our home health agenci
Slide 9: Home Health Q1 Revenue KPI Performance
Enhabit Home Health & Hospice 9 Home Health Q1 Revenue KPI Performance • Growth across all payer types sequentially with outsized growth in non-episodic volumes within the quarter from a key national contract signed in December 2024. • Two straight quarters of sequential Medicare ADC growth. Q1 Medi
Slide 10: Home Health Q1 Profitability KPI Performance
Enhabit Home Health & Hospice 10 Home Health Q1 Profitability KPI Performance • Gross margin of 48.5% improving sequentially and flat year over year. Q1 home health sequential Gross Margin drivers: • Unit Revenue: lower sequentially 1.3% as volumes normalized on large national contract in Q1 offset
Slide 11: Hospice Q1 Revenue KPI Performance
Enhabit Home Health & Hospice 11 Hospice Q1 Revenue KPI Performance • Revenue per patient day increased 2.6% sequentially and 8.4% year over year. • Revenue per patient day improvement partially driven by benefit of $1.0 million in Q1 2025 from reversed accruals for aged Medicare cap liability. • No
Slide 12: Hospice Q1 Profitability KPI Performance
Enhabit Home Health & Hospice 12 Hospice Q1 Profitability KPI Performance • Gross margin of 54.8% increasing 260bps sequentially and higher 420bps year over year. Q1 hospice sequential revenue drivers: • Unit Revenue: increased 2.6% sequentially primarily on Medicare billing cap benefit in the quart
Slide 13: Consolidated Adjusted EBITDA
Enhabit Home Health & Hospice 13 Consolidated Adjusted EBITDA ($ in millions) Q1 2025 % of Consolidated Revenue Q1 2024 % of Consolidated Revenue Home health segment Adjusted EBITDA $38.3 $43.2 Hospice segment Adjusted EBITDA 15.0 9.1 Home office general and administrative expenses (26.7) 10.3% (27.
Slide 14: Debt & Liquidity Metrics
Enhabit Home Health & Hospice 14 Debt & Liquidity Metrics ($ in millions) March 31, 2025 December 31, 2024 Advances under revolving credit facility, due 2027(1)(2) $140.0 $160.0 $400 million term loan facility, due 2027(1)(3) 343.1 348.0 Finance lease obligations 6.7 7.4 Total debt $489.8 $515.4 Les
Slide 15: Adjusted Free Cash Flow
Enhabit Home Health & Hospice 15 Adjusted Free Cash Flow • The change in working capital was primarily the result of the timing of payroll, which was favorable to cash flow in Q1 2024. • See Adjusted free cash flow assumptions and uses of Adjusted free cash flow on slide 17. • For 2025 and going for
Slide 16: 2025 Guidance
Enhabit Home Health & Hospice 16 2025 Guidance ($ in millions, except per share data) 2024 Actuals 2025 Guidance Net service revenue $1,034.8 $1,050 to $1,080 Adjusted EBITDA $100.1 $101 to $107 Adjusted EPS $0.21 $0.41 to $0.51 Guidance Considerations Tax rate: approximately 25% Diluted share count
Slide 17: Adjusted Free Cash Flow Assumptions
Enhabit Home Health & Hospice 17 Adjusted Free Cash Flow Assumptions ($ in millions) Certain cash flow items 2024 Full Year 2025 YTD 2025 Assumptions Adjusted EBITDA $100.1 $26.6 $101 to $107 Cash interest expense(1) 42.7 9.0 $37 to $39 Cash income tax payments (refunds), net(2)(3) 1.9 (0.2) $7 to $
Slide 18: Appendix
Enhabit Home Health & Hospice 18 Appendix
Slide 19: Home Health Segment
Enhabit Home Health & Hospice 19 Home Health Segment ($ in millions) Q1 '25 vs. '242025 2024 Net service revenue: Medicare $114.2 $128.3 (11.0) % Non-Medicare 84.4 82.6 2.2 % Private duty(1) 2.0 2.3 (13.0) % Home health net service revenue 200.6 213.2 (5.9) % Cost of service 103.4 109.9 (5.9) % Gros
Slide 20: Home Health Operational Metrics
Enhabit Home Health & Hospice 20 Home Health Operational Metrics (net service revenue $ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Medicare $128.3 $121.7 $117.3 $117.3 $484.6 $114.2 Non-Medicare 82.6 86.3 81.5 80.8 331.2 84.4 Private duty(1) 2.3 2.2 2.2 2.3 9.0 2.0 Home health net
Slide 21: Hospice Segment
Enhabit Home Health & Hospice 21 Hospice Segment ($ in millions) Q1 '25 vs. '242025 2024 Net service revenue $59.3 $49.2 20.5 % Cost of service 26.8 24.3 10.3 % Gross margin 54.8 % 50.6 % General and administrative expenses 17.4 15.7 10.8 % Net income attributable to noncontrolling interests 0.1 0.1
Slide 22: Hospice Operational Metrics
Enhabit Home Health & Hospice 22 Hospice Operational Metrics (net service revenue $ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Hospice net service revenue $49.2 $50.4 $52.6 $57.8 $210.0 $59.3 (actual amounts) Total admissions 3,032 2,888 3,046 3,059 12,025 3,274 Patient days 308,54
Slide 23: Payer Sources As a % of Revenue
Enhabit Home Health & Hospice 23 Payer Sources As a % of Revenue First Quarter Fiscal Year Consolidated 2025 2024 2024 Medicare 65.9% 67.4% 66.8% Medicare Advantage 23.3% 22.6% 23.0% Managed Care 9.0% 8.8% 9.1% Medicaid 1.2% 0.9% 0.9% Other 0.6% 0.3% 0.2% Total 100.0% 100.0% 100.0% Home Health Medic
Slide 24: Large and Growing Addressable Markets
Enhabit Home Health & Hospice 24 (1) MedPAC Report to Congress as of March 2023. (2) MedPAC Tab H Hospice December 2024 (3) MedPAC Tab G Home Health December 2024. (Calculated based on 30-day home health period.) (4) AARP 2024 Survey. (5) Centers for Medicare & Medicaid Services, Medicare Trustees’
Slide 25: EPS Calculation: Q1 2025
Enhabit Home Health & Hospice 25 EPS Calculation: Q1 2025 ($ in millions, except per share amounts) Adjusted EPS – Q1 2025 As Reported Gain on Sale of Investment and Loss on Disposal of Assets Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(4) As Adjus
Slide 26: EPS Calculation: Q1 2024
Enhabit Home Health & Hospice 26 EPS Calculation: Q1 2024 ($ in millions, except per share amounts) Adjusted EPS – Q1 2024 As Reported Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted Adjusted EBITDA(1) $25.3 $— $— $25.3 Interest expense
Slide 27: Reconciliation of Net Income to Adjusted EBITDA – Consolidated
Enhabit Home Health & Hospice 27 Reconciliation of Net Income to Adjusted EBITDA – Consolidated ($ in millions) Three Months Ended March 31, 2025 2024 Net income $18.4 $0.9 Interest expense and amortization of debt discounts and fees 9.4 11.1 Income tax expense 7.4 0.9 Depreciation and amortization
Slide 28: Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
Enhabit Home Health & Hospice 28 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA ($ in millions) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $17.9 $17.3 Interest expense, excluding amortization of debt discounts and fees 9.0 10.7 Cu
Slide 29: Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
Enhabit Home Health & Hospice 29 Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow ($ in millions) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $17.9 $17.3 Unusual or nonrecurring items that are not typical of ongoing operation
Slide 30: Reconciliation of Gross Margin to Adjusted EBITDA Margin
Enhabit Home Health & Hospice 30 Reconciliation of Gross Margin to Adjusted EBITDA Margin Three Months Ended March 31, 2025 2024 Gross margin as a percentage of revenue 49.9 % 48.9 % General and administrative expenses (41.4) % (41.0) % Loss (gain) on disposal of assets — % (0.1) % Stock-based compe