Slide 1: Fourth Quarter Earnings Call Supplemental Information
Fourth Quarter Earnings Call Supplemental Information March 5, 2025
Slide 2: Disclaimers: Forward looking statements
Enhabit Home Health & Hospice 2 Disclaimers 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 ame
Slide 3: Contents
Contents Overview 4 2024 Year in Review 5 2025 Priorities 6 Quarterly Results at a Glance 7 Consolidated Results 8 Clinical Expertise and High-Quality Outcomes 9 Home Health Segment and KPI Performance 10-12 Payer Innovation 13-14 Hospice Segment and KPI Performance 15-17 Consolidated Adjusted EBITD
Slide 4: Overview
Enhabit Home Health & Hospice 4 Overview 110 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 December 31, 2024 - due to scale, not all locations can be represented by locational markers 11
Slide 5: 2024 Year in Review
Enhabit Home Health & Hospice 5 2024 Year in Review Home Health - Payer Innovation Home Health - Medicare Census Stabilization Hospice Focus on Profitability and Balance Sheet • Consistent Medicare fee for service admissions at 44% of total admissions over past three quarters • Medicare census stabi
Slide 6: 2025 Priorities for Success
Enhabit Home Health & Hospice 6 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 h
Slide 7: Quarterly Results at a Glance
Enhabit Home Health & Hospice 7 Improved financial performance sequentially • Net loss of $46.0 million. • Consolidated Adjusted EBITDA remained relatively flat year over year at $25.1 million. • Reduced bank debt by $10 million in the quarter; bank debt down $40 million year over year. • Home offic
Slide 8: Consolidated Results
Enhabit Home Health & Hospice 8 Consolidated Results ($ in millions, except per share data) Q4 '24 vs. '232024 2023 Home Health net service revenue $200.4 $209.5 (4.3) % Hospice net service revenue 57.8 51.1 13.1 % Total net service revenue $258.2 $260.6 (0.9) % % of revenue % of revenue Cost of ser
Slide 9: Clinical Expertise and High-Quality Outcomes
Enhabit Home Health & Hospice 9 Clinical Expertise and High-Quality Outcomes Enhabit National Average % Better Than Average QoPC Star Rating1 3.1 3.0 3.3% 69% of our home health agencies are 3 Stars or higher; 18% are 4 Stars or higher1 HHCAHPS Star Rating2 4.1 3.9 5.1% 99% of our home health agenci
Slide 10: Home Health Q4 Revenue KPI Performance
Enhabit Home Health & Hospice 10 Home Health Q4 Revenue KPI Performance • Payer Innovation strategy has set the stage for both Medicare and other episodic ADC growth which typically have a unit revenue advantage per patient day • Q4 2024 Medicare ADC growth sequentially of 1%, with continued focus t
Slide 11: Home Health Q4 Profitability KPI Performance
Enhabit Home Health & Hospice 11 Home Health Q4 Profitability KPI Performance • Gross margin of 47.4% flat sequentially and lower 40bps year over year Q4 Home health sequential Gross Margin drivers: • Unit Revenue: relatively flat sequentially with favorable patient mix offset by seasonal increase i
Slide 12: Home Health Segment
Enhabit Home Health & Hospice 12 Home Health Segment ($ in millions) Q4 '24 vs. '232024 2023 Net service revenue: Medicare $117.3 $130.9 (10.4) % Non-Medicare 80.8 76.8 5.2 % Private duty(1) 2.3 1.8 27.8 % Home Health net service revenue 200.4 209.5 (4.3) % Cost of service 105.5 109.4 (3.6) % Gross
Slide 13: Payer Innovation
Enhabit Home Health & Hospice 13 Payer Innovation Payer innovation strategy continues to foster Medicare Advantage growth. Driving steady increases in our non-Medicare revenue per visit 48% of non-Medicare visits are now in Payer Innovation contracts at improved rates. Visits from payer innovation c
Slide 14: Payer Innovation (continued)
Enhabit Home Health & Hospice 14 Payer Innovation (continued) • Improved clinical capacity • Increased favorable payer contracts • negotiated 76 new contracts since spin • Pipeline of 49 new contracting opportunities and an additional 31 historic agreements that are being re-negotiated • Utilizing t
Slide 15: Hospice Q4 Revenue KPI Performance
Enhabit Home Health & Hospice 15 Hospice Q4 Revenue KPI Performance • Revenue per patient day increased 6.9% sequentially and 4.2% year over year • CMS Medicare reimbursement rate increase effective October 2024 • Sequential revenue per patient day improvement partially driven by Company accruing $1
Slide 16: Hospice Q4 Profitability KPI Performance
Enhabit Home Health & Hospice 16 Hospice Q4 Profitability KPI Performance • Gross margin of 52.2% increasing 120bps sequentially and lower 80bps year over year • Q4 hospice sequential revenue drivers: • Unit Revenue: +6.9% sequentially with combination of CMS rate increase of 3.8% and favorable mix
Slide 17: Hospice Segment
Enhabit Home Health & Hospice 17 Hospice Segment ($ in millions) Q4 '24 vs. '232024 2023 Net service revenue $57.8 $51.1 13.1 % Cost of service 27.6 24.0 15.0 % Gross margin 52.2 % 53.0 % General and administrative expenses 17.0 15.4 10.4 % Net income attributable to noncontrolling interests (0.1) —
Slide 18: Consolidated Adjusted EBITDA
Enhabit Home Health & Hospice 18 Consolidated Adjusted EBITDA ($ in millions) Q4 2024 % of Consolidated Revenue Q4 2023 % of Consolidated Revenue Home Health Segment Adjusted EBITDA $35.5 $40.3 Hospice Segment Adjusted EBITDA 13.3 11.7 Home office general and administrative expenses (23.7) 9.2 % (26
Slide 19: Debt & Liquidity Metrics
Enhabit Home Health & Hospice 19 Debt & Liquidity Metrics ($ in millions) December 31, 2024 December 31, 2023 Advances under revolving credit facility, due 2027(1)(2) $160.0 $180.0 $400 million term loan facility, due 2027 (1)(3) 348.0 367.1 Finance lease obligations 7.4 5.5 Total debt $515.4 $552.6
Slide 20: Adjusted Free Cash Flow
Enhabit Home Health & Hospice 20 2022 YTD 2021 YTD Adjusted EBITDA ($ in thousands) $87,317 $105,012 Change in net working capital (6,561) (8,297) Cash interest payments (123) (145) Cash tax payments - - Maintenance capital expenditures 2616 3,129 Adjusted free cash flow $78,017 $93,441 ($ in millio
Slide 21: 2025 Guidance
Enhabit Home Health & Hospice 21 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 $0.51 Guidance Considerations Tax rate: approximately 25% Diluted share count
Slide 22: Adjusted Free Cash Flow Assumptions and Uses
Enhabit Home Health & Hospice 22 Adjusted Free Cash Flow Assumptions ($ in millions) Certain cash flow items 2023 Full Year 2024 Full Year 2025 Assumptions Adjusted EBITDA $97.6 $100.1 $101 to $107 Cash interest expense(1) 40.6 42.7 $37 to $39 Cash income tax payments (refunds), net(2) (8.2) (0.8) $
Slide 23: Enhabit Home Health & Hospice 23 Appendix
Enhabit Home Health & Hospice 23 Appendix
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: Enhabit Home Health Long-Term Outlook
Enhabit Home Health & Hospice 25 Enhabit Home Health Long-Term Outlook Q4 2024 Home health admission growth was impacted by hurricanes and contract negotiations with a national payer. We expect to continue growing at mid- to high-single digits over the next three years with our ability to better ser
Slide 26: Enhabit Hospice Long-Term Outlook
Enhabit Home Health & Hospice 26 Enhabit Hospice Long-Term Outlook Expect hospice volumes to grow at mid- to high-single digits over the next three years after investing in the case management model and the build out of business development team Sequential monthly growth in census 2024 Hospice Month
Slide 27: Home Health Operational Metrics
Enhabit Home Health & Hospice 27 Home Health Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Medicare $146.0 $139.4 $141.0 $130.9 $557.4 $128.3 $121.7 $117.3 $117.3 $484.6 Non-Medicare 67.1 71.8 67.3 76.8 283.0 8
Slide 28: Hospice Operational Metrics
Enhabit Home Health & Hospice 28 Hospice Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Hospice net service revenue $49.3 $48.5 $47.4 $51.1 $196.2 $49.2 $50.4 $52.6 $57.8 $210.0 (actual amounts) Total admissions
Slide 29: Consolidated Results – YTD 2024
Enhabit Home Health & Hospice 29 Consolidated Results – YTD 2024 ($ in millions, except per share data) Year-To-Date '24 vs. '232024 2023 Home Health net service revenue $824.8 $850.1 (3.0) % Hospice net service revenue 210.0 196.2 7.0 % Total net service revenue $1,034.8 $1,046.3 (1.1) % % of Reven
Slide 30: Home Health Segment Results – YTD 2024
Enhabit Home Health & Hospice 30 Home Health Segment Results – YTD 2024 ($ in millions) Year-To-Date '24 vs. '232024 2023 Net service revenue: Medicare $484.6 $557.4 (13.1) % Non-Medicare 331.2 283.0 17.0 % Private duty(1) 9.0 9.7 (7.2) % Home Health net service revenue 824.8 850.1 (3.0) % Cost of s
Slide 31: Hospice Segment Results – YTD 2024
Enhabit Home Health & Hospice 31 Hospice Segment Results – YTD 2024 ($ in millions) Year-To-Date '24 vs. '232024 2023 Net service revenue $210.0 $196.2 7.0 % Cost of service 102.6 96.6 6.2 % Gross margin 51.1 % 50.8 % General and administrative expenses 65.5 63.4 3.3 % Net income attributable to non
Slide 32: Payer Sources As a % of Revenue
Enhabit Home Health & Hospice 32 Payer Sources As a % of Revenue Fourth Quarter Fiscal Year Consolidated 2024 2023 2024 2023 Medicare 66.8% 68.5% 66.8% 71.5% Medicare Advantage 22.5% 19.5% 23.0% 19.0% Managed Care 9.2% 10.6% 9.1% 8.2% Medicaid 1.3% 1.3% 0.9% 1.2% Other 0.2% 0.1% 0.2% 0.1% Total 100.
Slide 33: EPS Calculation: Q4 2024
Enhabit Home Health & Hospice 33 EPS Calculation: Q4 2024 ($ in millions, except per share amounts) Adjusted EPS – Q4 2024 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $25.1 $—
Slide 34: EPS Calculation: Q4 2023
Enhabit Home Health & Hospice 34 EPS Calculation: Q4 2023 ($ in millions, except per share amounts) Adjusted EPS – Q4 2023 As Reported Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $25.2 $— $— $25.2 Interest expen
Slide 35: EPS Calculation: 2024
Enhabit Home Health & Hospice 35 EPS Calculation: 2024 ($ in millions, except per share amounts) Adjusted EPS – 2024 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As Adjusted(4) Adjusted EBITDA(1) $100.1 $— $— $—
Slide 36: EPS Calculation: 2023
Enhabit Home Health & Hospice 36 EPS Calculation: 2023 Reconciliations to GAAP provided in Appendix ($ in millions, except per share amounts) Adjusted EPS – 2023 As Reported Impairment of Goodwill Unusual or Nonrecurring Items That are Not Typical of Ongoing Operations Income Tax Adjustments(3) As A
Slide 37: Reconciliation of Net Loss to Adjusted EBITDA – Consolidated
Enhabit Home Health & Hospice 37 Reconciliation of Net Loss to Adjusted EBITDA – Consolidated ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net loss $(45.8) $(5.9) $(154.0) $(79.0) Interest expense and amortization of debt discounts and fees 10.1 12.3 42.9 43.0 Benefit from income taxes (5.
Slide 38: Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
Enhabit Home Health & Hospice 38 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net cash provided by operating activities $(4.1) $2.8 $51.2 $48.4 Interest expense excluding amortization of debt discounts and fees
Slide 39: Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
Enhabit Home Health & Hospice 39 Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow PLACE HOLDER – WILL NEED: • EBITDA to Net income • Adjusted EPS to reported EPS and Net income ($ in millions) Fourth Quarter YTD 2024 2023 2024 2023 Net cash provided by operating
Slide 40: Reconciliation of Gross Margin to Adjusted EBITDA Margin
Enhabit Home Health & Hospice 40 Reconciliation of Gross Margin to Adjusted EBITDA Margin Fourth Quarter YTD 2024 2023 2024 2023 Gross margin as a percentage of revenue 48.5 % 48.8 % 48.7 % 48.8 % General and administrative expenses (40.5) % (43.9) % (41.2) % (42.2) % Gains on disposal of assets (0.