Enhabit (EHAB) Q3 2024 Earnings Call Transcript

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Thursday, November 7, 2024 astatine 10:00 a.m. ET

• President and Chief Executive Officer — Barb Jacobsmeyer

• Chief Financial Officer — Crissy Carlisle

• Vice President of Finance — Jobie Williams

Barb Jacobsmeyer, President and Chief Executive Officer and Crissy Carlisle, Chief Financial Officer. Before we begin, if you bash not already person a copy, the 3rd 4th net release, supplemental information, and related Form 8-K filed with the SEC are disposable connected our website astatine investors.ehab.com. On Page 2 of the supplemental information, you volition find the Safe Harbor Statements, which are besides acceptable distant connected the past leafage of the net release. During the call, we volition marque forward-looking statements, which are taxable to hazard and uncertainties galore of which are beyond our control.

Certain risks and uncertainties that could origin existent results to disagree materially from our projections, estimates, and expectations are discussed successful our SEC filings including our yearly study connected signifier 10-K, which are disposable connected our website. We promote you to work them. You are cautioned not to spot undue reliance connected the estimates, projections, guidance, and different forward-looking accusation presented, which are based connected existent estimates of aboriginal events and talk lone arsenic of today. We bash not undertake a work to update these forward-looking statements.

Our supplemental accusation and treatment connected this telephone volition see definite non-GAAP fiscal measures for specified measures reconciliation to the astir straight comparable GAAP measurement is disposable astatine the extremity of the supplemental accusation and the net release. With that, I’ll crook the telephone implicit to Barb.

Barb Jacobsmeyer: Thanks, Jobie. Good greeting and acknowledgment for joining us. Quarter three, 2024 marks our 4th sequential 4th demonstrating the occurrence of our measurement maturation strategies. At the commencement of this year, we laid retired our 2024 priorities and I privation to supply an update connected the presumption of those and the ongoing and caller initiatives to instrumentality our concern to gross maturation and amended our profitability and margins. We are pleased with the continued advancement of our Hospice conception and expect continued growth. Our precedence has been connected increasing census and gaining operating leverage against the fixed outgo operation associated with the lawsuit absorption staffing model. Our mean regular census continues its sequential maturation each period since January 2024.

In the 3rd quarter, our mean regular census accrued 6.9% year-over-year. Completing the modulation of each branches to our centralized admittance departments this twelvemonth with the absorption connected timely responses to our referral sources has been palmy arsenic evident with some our accrued admissions and an summation successful our referral conversion complaint from 74.2% past twelvemonth to 77.4% this year. The level outgo per time year-over-year is the result we expected arsenic our accrued census offset the fixed costs that were added successful 2023 to instrumentality our lawsuit absorption model.