AdaptHealth posts strong quarter amid pandemic

PLYMOUTH MEETING, Pa. - AdaptHealth reported net revenue of $232.1 million for the second quarter ended June 30, an 87% increase from the same period in 2019, aided by its ability to supply critically needed equipment and medical supplies to referral partners during the COVID-19 pandemic. Net income was $4 million vs. a net loss of $2.1 million. The company reported net revenue of $423.6 million for the first six months of 2020, a 74% increase compared to the same period in 2019. Net income was $3.9 million vs. a net loss of $7.9 million. “Our strong year-to-date 2020 performance reflects the extraordinary hard work, resilience and dedication of our team and their support of our patients and health care partners,” said CEO Luke McGee. “We are continuing to successfully deploy a scalable growth model focused on organic sales, acquisitions, accretive capital deployment and cash generation.” AdaptHealth noted that CPAP new starts, orthotics and other business lines closely linked to discretionary hospital and long-term care facility discharges were significantly down and costs were higher in the second quarter of 2020. Offsetting that: New respiratory starts increased and resupply became a bigger focus. “Additionally, we were able to supply critical products needed to meet the emergency needs of non-traditional and new customers,” McGee said. “We generated approximately $28 million of business-to-business revenues in the quarter and opened new channels and customers, which we expect to have future positive impacts.” AdaptHealth expects net revenue of between $935 million to $938 million and adjusted EBITDA of $169 million to $178 million for fiscal year 2020.