AdaptHealth reports ‘near record’ number of acquisitions, increases outlook

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Tuesday, February 25, 2020

PLYMOUTH MEETING, Pa. – AdaptHealth reported net revenue of $149.5 million for the fourth quarter ended Dec. 31, 2019, a 38% increase over the same period last year.

The provider reported a net loss of $3.4 million for the quarter, including $5.3 million of equity-based compensation and $7.8 million of transaction costs, primarily related to the merger with DFB.

For 2019, AdaptHealth reported net revenue of $529.5 million, a 53% increase.

It reported a net loss of $15 million for the year, including equity based compensation of $11.1 million, transaction costs of $16 million and non-cash interest expense of $11.4 million related to interest rate swaps.

“We reported a record 2019 across key financial metrics, closed on a near record number of acquisitions, and generated strong, organic top line growth,” said Luke McGee, CEO.

AdaptHealth completed 18 acquisitions in 2019, deal-making that it expects to add annual net revenues of $116 million. Most recently, in January, the provider acquired the home medical supplies business of McKesson Patient Care Solutions, expected to add net revenues of approximately $117 million in 2020.

The provider has also increased its outlook for 2020. It expects to generate net revenue of $765 million to $782 million, adjusted EBITDA of $155 million to $158 million, and adjusted EBITDA less patient equipment capex of $95 million to $97 million.