• Net Revenue: Increased by 7.7% to $3.2 billion in FY 2023.

• Net Loss: Reported a net loss of $678.9 million due to a significant goodwill impairment.

• Adjusted EBITDA: Grew by 13.0% to $670.8 million for the full year.

• Cash Flow: Operations cash flow rose by 28.6% to $480.7 million; Free cash flow turned positive to $143.2 million.

• 2024 Guidance: Projects net revenue of $3.25 billion to $3.35 billion and adjusted EBITDA of $650 million to $710 million.

• Warning! GuruFocus has detected 5 Warning Signs with AHCO.

On February 27, 2024, AdaptHealth Corp (NASDAQ:AHCO) released its 8-K filing, unveiling the financial results for the fourth quarter and the full fiscal year ended December 31, 2023. The company, a national leader in providing patient-centered, healthcare-at-home solutions, reported a significant increase in net revenue, which rose to $3.2 billion, marking a 7.7% growth compared to the previous year. This growth was primarily driven by non-acquired expansion of 7.3%. Despite the revenue increase, the company faced a net loss attributable to AdaptHealth Corp of $678.9 million, largely due to a substantial pre-tax goodwill impairment of $830.8 million.

AdaptHealth's adjusted EBITDA for the year showed a robust increase of 13.0%, reaching $670.8 million. The company also experienced a notable improvement in cash flow from operations, which surged by 28.6% to $480.7 million. Free cash flow also saw a positive shift, increasing to $143.2 million from a negative $17.6 million in the previous year. For the fourth quarter specifically, net revenue increased by 10.0% to $858.2 million, and adjusted EBITDA rose by 40.2% to $204.6 million.

Looking ahead, AdaptHealth provided initial financial guidance for the fiscal year 2024, projecting net revenue between $3.25 billion and $3.35 billion, with adjusted EBITDA anticipated to be in the range of $650 million to $710 million, and free cash flow expected to be between $150 million and $180 million. This guidance does not account for contributions from acquisitions that have not yet closed and assumes that the 75/25 blended Medicare reimbursement rate adjustment in non-rural, non-competitive bid areas is not extended.

"We closed out 2023 with strong performance across the board in the fourth quarter. Driven by continued strength in sleep and respiratory, we generated record revenue of $3.2 billion, up 7.7% year-over-year, nearly all from non-acquired sources. We are also quite pleased that Adjusted EBITDA for the year increased at an even faster rate, giving us confidence that the strategic initiatives we undertook to improve efficiency have started to produce results," said Richard Barasch, Chairman and Interim CEO of AdaptHealth.