EX-99.1 21 a19-22526_2ex99d1.htm EX-99.1

Exhibit 99.1

 

SELECTED HISTORICAL FINANCIAL INFORMATION OF ADAPTHEALTH

 

The following table shows selected historical financial information of AdaptHealth Holdings for the periods and as of the dates indicated. The selected historical consolidated financial information of AdaptHealth Holdings as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 was derived from the audited historical consolidated financial statements of AdaptHealth Holdings included or incorporated by reference elsewhere in this Current Report on Form 8-K. The selected historical interim condensed consolidated financial information of AdaptHealth Holdings as of September 30, 2019 and for the nine months ended September 30, 2019 and 2018 was derived from the unaudited interim condensed consolidated financial statements of AdaptHealth Holdings included or incorporated by reference elsewhere in this Current Report on Form 8-K.

 

AdaptHealth Holdings’ historical results are not necessarily indicative of future operating results. The selected consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations of AdaptHealth,” as well as the historical consolidated financial statements of AdaptHealth Holdings and accompanying notes included or incorporated by reference elsewhere in this Current Report on Form 8-K.

 

(in thousands)

 

Nine Months Ended September 30,

 

Year Ended December 31,

 

Statements of Operations Data:

 

2019

 

2018

 

2018

 

2017

 

2016

 

 

 

(unaudited)

 

 

 

 

 

 

 

Total net revenue

 

$

380,103

 

$

236,625

 

$

345,278

 

$

192,559

 

$

174,316

 

Net (loss) income attributable to AdaptHealth Holdings

 

$

(11,570

)

$

19,756

 

$

23,260

 

$

9,687

 

$

(4,183

)

 

(in thousands)

 

As of
September 30,

 

As of December 31,

 

Balance Sheet Data:

 

2019

 

2018

 

2017

 

 

 

(unaudited)

 

 

 

 

 

Total assets

 

$

427,987

 

$

368,957

 

$

111,984

 

Total long-term obligations, including current portion

 

$

456,523

 

$

158,415

 

$

66,935

 

 

The following table sets forth selected elements of AdaptHealth Holdings’ Consolidated Statements of Cash Flows:

 

 

 

Nine Months Ended September 30,

 

Year Ended December 31,

 

(in thousands)

 

2019

 

2018

 

2018

 

2017

 

2016

 

 

 

(unaudited)

 

 

 

 

 

 

 

Net Cash provided by Operating Activities

 

$

43,174

 

$

43,147

 

$

68,427

 

$

45,930

 

$

29,936

 

Net Cash used in Investing Activities

 

$

(62,399

)

$

(86,048

)

$

(96,284

)

$

(15,077

)

$

(2,676

)

Net Cash provided by (used in) Financing Activities

 

$

2,862

 

$

59,528

 

$

48,769

 

$

(30,263

)

$

(27,580

)

 

 

The following table sets forth EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex:

 

 

 

Nine Months Ended September 30,

 

Year Ended December 31,

 

(in thousands)

 

2019

 

2018

 

2018

 

2017

 

2016

 

 

 

(unaudited)

 

EBITDA

 

$71,938

 

$54,130

 

$77,569

 

$43,580

 

$28,886

 

Adjusted EBITDA

 

$89,352

 

$58,734

 

$84,447

 

$45,035

 

$33,104

 

Adjusted EBITDA less Patient Equipment Capex

 

$53,763

 

$30,828

 

$45,083

 

$19,186

 

$7,625

 

 

The following table reconciles net income (loss) attributable to AdaptHealth Holdings, the most directly comparable GAAP measure, to EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex:

 

 

 

Nine Months

 

Year Ended

 

 

 

Ended September 30,

 

December 31,

 

(in thousands)

 

2019

 

2018

 

2018

 

2017

 

2016

 

 

 

(unaudited)

 

Net (loss) income attributable to AdaptHealth Holdings LLC

 

$

(11,570

)

$

19,756

 

$

23,260

 

$

9,687

 

$

(4,183

)

Income attributable to noncontrolling interest

 

1,336

 

681

 

1,077

 

580

 

563

 

Interest expense (income) - Excluding change in FV of interest rate swaps

 

19,292

 

5,481

 

8,000

 

5,041

 

5,761

 

Interest expense (income) - Change in FV of interest rate swaps

 

12,359

 

(281

)

(547

)

—

 

—

 

Income tax expense (benefit)

 

5,444

 

(4,519

)

(2,098

)

249

 

(208

)

Depreciation

 

45,077

 

33,012

 

47,877

 

27,816

 

26,563

 

Loss from discontinued operations, net of tax

 

—

 

—

 

—

 

207

 

390

 

EBITDA

 

71,938

 

54,130

 

77,569

 

43,580

 

28,886

 

Loss on extinguishment of debt, net (a)

 

2,121

 

1,399

 

1,399

 

324

 

—

 

Equity-based compensation expense (b)

 

5,806

 

571

 

884

 

49

 

49

 

Transaction costs (c)

 

8,232

 

1,342

 

2,514

 

—

 

—

 

Severance (d)

 

721

 

1,198

 

1,920

 

826

 

430

 

Non-recurring expenses (e)

 

534

 

94

 

161

 

256

 

3,739

 

Adjusted EBITDA

 

89,352

 

58,734

 

84,447

 

45,035

 

33,104

 

Less: Patient equipment capex (f)

 

(35,589

)

(27,906

)

(39,364

)

(25,849

)

(25,479

)

Adjusted EBITDA less Patient Equipment Capex

 

$

53,763

 

$

30,828

 

$

45,083

 

$

19,186

 

$

7,625

 

 

(a)                                 Represents write off of deferred financing costs and prepayment penalty expense related to refinancing of debt offset by gain on debt extinguishment.

(b)                                 Represents amortization of equity-based compensation to employees and expense resulting from accelerated vesting of certain profit interests.

(c)                                  Represents transaction costs primarily related to acquisition growth, the 2019 Recapitalization, and costs related to the Business Combination.

(d)                                 Represents severance costs related to acquisition integration and internal AdaptHealth Holdings restructuring and workforce reduction activities.

(e)                                  Represents one-time legal and consulting expenses, in addition to certain non-recurring expenses.

(f)                                   Represents patient equipment acquired during the respective period without regard to the manner in which the equipment was financed.