• Net Service Revenue: Q4 net service revenue slightly decreased by 1.0% to $260.6 million.

• Net Loss: Net loss attributable to Enhabit Inc narrowed significantly to $6.4 million from $95.2 million in the prior year.

• Adjusted EBITDA: Adjusted EBITDA declined by 16.8% to $25.2 million.

• Earnings Per Share (EPS): Loss per share improved to $0.13, while adjusted EPS was $0.06.

• Operational Metrics: Home health segment saw a 34.2% increase in non-episodic admissions, while hospice segment improved in average daily census and cost per day.

• 2024 Guidance: Enhabit Inc projects net service revenue between $1,076 and $1,102 million and adjusted EBITDA between $98 and $110 million for the full year.

• Warning! GuruFocus has detected 4 Warning Sign with EHAB.

On March 6, 2024, Enhabit Inc (NYSE:EHAB) released its 8-K filing, detailing the financial outcomes for the fourth quarter ended December 31, 2023. The company, a leading provider of home health and hospice care services in the United States, operates in two segments: home health and hospice. Enhabit Inc's home health agencies offer a range of Medicare-certified skilled services, while its hospice services focus on compassionate end-of-life care.

Despite a challenging environment, Enhabit Inc reported a net service revenue of $260.6 million, a slight decrease of 1.0% compared to the same period last year. The company experienced a net loss attributable to Enhabit Inc of $6.4 million, which is a significant improvement from the $95.2 million loss reported in the previous year. Adjusted EBITDA for the quarter was $25.2 million, a decrease of 16.8% year over year. The loss per share stood at $0.13, while adjusted earnings per share were reported at $0.06.

Enhabit Inc highlighted several operational achievements, including a 34.2% increase in non-episodic admissions in the home health segment and a reduction in hospice cost per day to $76. The company also noted a 53.2% better performance than the national average for hospice patient visits in the last days of life. Recruitment and retention efforts led to a 21.5% increase in the full-time nursing candidate pool year over year, resulting in 119 net new full-time home health nursing hires in the fourth quarter.

The company's financial results reflect the impact of a shift to more non-episodic admissions in home health, which affected consolidated revenue and Adjusted EBITDA by approximately $8 million, net of the impact from improved pricing of payor innovation contracts. The home health segment saw a decrease in net service revenue by 2.9% to $209.5 million, while the hospice segment's net service revenue increased by 7.8% to $51.1 million.