8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): August 1, 2022

Enhabit, Inc.

(Exact name of Registrant as specified in its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

001-41406	47-2409192
(Commission File Number)	(IRS Employer Identification No.)

6688 N. Central Expressway, Suite 1300, Dallas, Texas 75206

(Address of Principal Executive Offices, Including Zip Code)

(214) 239-6500

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.     Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	EHAB	New York Stock Exchange

The information contained herein is being furnished pursuant to Item 2.02 of Form 8‑K, “Results of Operations and Financial Condition,” and Item 7.01 of Form 8-K, “Regulation FD Disclosure.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 2.02. Results of Operations and Financial Condition.

On August 1, 2022, Enhabit, Inc. (“Enhabit” or the “Company”) issued a press release reporting the financial results of the Company for the three and six months ended June 30, 2022. A copy of the press release is attached to this report as Exhibit 99.1 and incorporated herein by reference.

The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

ITEM 7.01. Regulation FD Disclosure.

See Item 2.02, “Results of Operations and Financial Condition,” above.

In addition, a copy of the supplemental information which will be discussed during the Company’s earnings call at 11:00 a.m. Eastern Time on Tuesday, August 2, 2022 is attached to this report as Exhibit 99.2 and incorporated herein by reference.

Note Regarding Presentation of Non-GAAP Financial Measures

The financial data contained in the press release and supplemental information include “non-GAAP financial measures” as defined in Regulation G of the Exchange Act, including the Company’s adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow.

The Company is providing adjusted earnings per share from continuing operations attributable to Enhabit (“Adjusted EPS”). The Company believes the presentation of Adjusted EPS provides useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods given that it excludes the impact of government, class action, and related settlements; professional fees—accounting, tax, and legal; gains or losses related to hedging and equity instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be non-indicative of its ongoing operating performance. It is reasonable to expect that one or more of these excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period and may not directly relate to the Company’s ongoing operating performance. Accordingly, they can complicate comparisons of the Company’s results of operations across periods and comparisons of the Company’s results to those of other healthcare companies. Adjusted EPS should not be considered as a measure of financial performance under generally accepted accounting principles in the United States (“GAAP”) as the items excluded from it are significant components in understanding and assessing financial performance. Because Adjusted EPS is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, it may not be comparable as presented to other similarly titled measures of other companies. The Company reconciles Adjusted EPS to earnings per share in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2.

The leverage ratio referenced therein is defined as the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters. The Company believes its leverage ratio and Adjusted EBITDA are measures of its ability to service its debt and its ability to make capital expenditures. Additionally, the leverage ratio is a standard measurement used by investors to gauge the creditworthiness of an institution. The Company’s credit agreement also includes a maximum leverage ratio financial covenant which allows the Company to deduct up to $200 million of cash on hand from consolidated total debt. The Company reconciles Adjusted EBITDA to net income and to net cash provided by operating activities in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2.

The Company uses Adjusted EBITDA on a consolidated basis as a liquidity measure. The Company believes this financial measure on a consolidated basis is important in analyzing its liquidity because it is the key component of certain material covenants contained within the Company’s credit agreement, which is discussed in more detail in the Company’s Form 10 Registration Statement filed on May 25, 2022, as amended on June 9, 2022 and June 14, 2022. These covenants are material

terms of the credit agreement. Noncompliance with these financial covenants under the credit agreement—its interest coverage ratio and its leverage ratio—could result in the Company’s lenders requiring the Company to immediately repay all amounts borrowed. If the Company anticipated a potential covenant violation, it would seek relief from its lenders, which would have some cost to the Company, and such relief might be on terms less favorable to those in the Company’s existing credit agreement. In addition, if the Company cannot satisfy these financial covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying common stock dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the Company’s assessment of its liquidity.

In general terms, the credit agreement definition of Adjusted EBITDA, therein referred to as “Adjusted Consolidated EBITDA,” allows the Company to add back to consolidated net income interest expense, income taxes, and depreciation and amortization and then add back to consolidated net income (1) share-based compensation expense and (2) any “run rate” cost savings, operating expense reductions and synergies related to any acquisitions, dispositions and other specified transactions, restructurings, cost savings initiatives and other initiatives that are reasonably quantifiable not in excess of 25% of Adjusted Consolidated EBITDA. The Company also subtracts from consolidated net income all unusual or nonrecurring items to the extent they increase consolidated net income.

Adjusted EBITDA is not a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Therefore, Adjusted EBITDA should not be considered a substitute for net income or cash flows from operating, investing, or financing activities. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

The Company also uses adjusted free cash flow as an analytical indicator to assess its performance. Management believes the presentation of adjusted free cash flow provides investors an efficient means by which they can evaluate the Company’s capacity to reduce debt, pursue development activities, and return capital to its common stockholders. The calculation of adjusted free cash flow and a reconciliation of net cash provided by operating activities to adjusted free cash flow are included in the press release attached as Exhibit 99.1 and the supplemental information attached as Exhibit 99.2. This measure is not a defined measure of financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities. The Company’s definition of adjusted free cash flow is limited and does not represent residual cash flows available for discretionary spending. Because this measure is not determined in accordance with GAAP and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. See the consolidated statements of cash flows included in the Company’s Form 10 Registration Statement filed on May 25, 2022, as amended on June 9, 2022 and June 14, 2022, and the condensed consolidated statements of cash flows included in the Company's quarterly report on Form 10-Q for the quarterly period ended June 30, 2022 (the “June 2022 Form 10-Q”), when filed, and in the press release attached as Exhibit 99.1 for the GAAP measures of cash flows from operating, investing, and financing activities.

Forward-Looking Statements

The information contained herein and in the press release attached as Exhibit 99.1 hereto, and supplemental information, attached as Exhibit 99.2 hereto, include certain estimates, projections, and other forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve known and unknown risks and relate to, among other things, future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “targets,” “potential,” or “continue” or the negative of these terms or other comparable terminology. These estimates, projections, and other forward-looking statements are based on assumptions the Company believes, as of the date hereof, are reasonable. Inevitably, there will be differences between such estimates and actual results, and those differences may be material.

There can be no assurance that any estimates, projections, or forward-looking statements will be realized.

All such estimates, projections, and forward-looking statements speak only as of the date hereof. The Company undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise.

You are cautioned not to place undue reliance on the estimates, projections, and other forward-looking statements in this report, the press release, and supplemental information as they are based on current expectations and general assumptions and are subject to various risks, uncertainties, and other factors, including those set forth in the attached press release, supplemental information, and in the Company’s Form 10 Registration Statement filed on May 25, 2022, as amended on June 9, 2022 and June 14, 2022, the June 2022 Form 10-Q when filed, and in other documents the Company previously filed with the SEC, many of which are beyond the Company’s control. These factors may cause actual results to differ materially from the views, beliefs, and estimates expressed herein.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit Number	Description
99.1	Press release of Enhabit Inc., dated August 1, 2022.
99.2	Supplemental information provided in connection with the second quarter 2022 earnings call of Enhabit Inc.
104	Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

ENHABIT, INC.
By:	/s/ Crissy B. Carlisle
	Name:	Crissy B. Carlisle
	Title:	Chief Financial Officer

Dated: August 1, 2022

EX-99.1

Exhibit 99.1

Investor Relations Contact

Jennifer Hills

469-621-6496

jennifer.hills@ehab.com

Media Contact

Erin Volbeda

214.239.6520

Erin.Volbeda@ehab.com

Enhabit Reports Second Quarter Financial Results

Company to host a conference call tomorrow, Aug. 2, 2022 at 11 AM EDT

DALLAS, TX – Aug. 1, 2022 – Enhabit Home Health & Hospice (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the second quarter ended June 30, 2022.

“It has been a very busy and rewarding quarter as we worked hard in preparation of becoming an independent, publicly traded company on July 1,” Enhabit’s President and Chief Executive Officer, Barb Jacobsmeyer said. “During the quarter, we continued to build and strengthen our team for the long-term as we addressed the ongoing challenging operating environment for the healthcare industry. Despite labor challenges and inflation, we saw momentum in our recruiting and retention efforts that will help us meet the growing demand for our services. We remain focused on providing high-quality, compassionate care to our patients that will ultimately drive long-term value for all of our stakeholders."

QUARTERLY PERFORMANCE - CONSOLIDATED

Consolidated second quarter 2022 results were impacted by the continued shift to non-episodic payor mix in the home health segment, the partial resumption of sequestration and higher cost of services related to labor, mileage reimbursement and fleet costs.

•Net service revenue of $268.0 million, declined 6.3% from Q2’21

•Net income of $20.1 million, down 37.8% from Q2’21

•Adjusted EBITDA of $40.3 million, down 30.3% from Q2’21

•Earnings per diluted share of $0.41

•Adjusted earnings per diluted share of $0.47

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RECENT COMPANY HIGHLIGHTS

•Completed the spin-off from Encompass Health on July 1, 2022 to become an independent publicly traded company on the NYSE under the ticker ”EHAB”

•Continued to drive strong growth in Medicare Advantage admissions, with non-episodic admissions up 21.5% year over year

•Began experiencing positive growth trends in hospice admissions late in the second quarter

•Entered into a five-year, $350 million revolving credit facility and $400 million term loan A

•Opened a de novo hospice location in Temple, Texas in May 2022; year-to-date total of three de novo hospice locations

FINANCIAL RESULTS

Consolidated

	Q2								'22 vs. '21
($ in millions, except per share data)	2022				2021
Home health net service revenue	$	220.2			$	232.3			(5.2)%
Hospice net service revenue	47.8				53.8				(11.2)%
Total net service revenue	$	268.0			$	286.1			(6.3)%
	% of Revenue				% of Revenue
Cost of services	(48.6)%		$	(130.3)	(45.3)%		$	(129.6)	0.5%
Gross margin	51.4%		137.7		54.7%		156.5		(12.0)%
Administrative & general expenses	(36.1)%		(96.7)		(35.0)%		(100.0)		(3.3)%
Operating expenses	(84.7)%		$	(227.0)	(80.3)%		$	(229.6)	(1.1)%
Other income	$	—			$	(1.6)
Equity earnings / noncontrolling interest	0.7				0.3
Adjusted EBITDA	$	40.3			$	57.8			(30.3)%
Adjusted EBITDA margin			15.0%				20.2%
Adjusted EPS	$	0.47			$	0.71			(33.8)%

Consolidated revenue decreased year over year primarily due to lower volumes in both segments, the continued shift to more non-episodic patients in home health, and the partial resumption of sequestration. Lower volumes year over year resulted from capacity constraints resulting from increased usage of paid-days-off, referral challenges resulting from the impact of rebranding on electronic referral systems, and decreased admissions from acute care hospitals.

Adjusted EBITDA decreased year over year primarily due to lower revenue and higher cost of services related to labor, fleet, and mileage reimbursement.

2

SEGMENT RESULTS

Home health

	Q2				'22 vs. '21
($ in millions)	2022		2021
Net service revenue	$	220.2	$	232.3	(5.2)%
Cost of services	108.8		106.6		2.1%
Gross margin	50.6%		54.1%
Adjusted EBITDA	$	53.0	$	63.3	(16.3)%
% Adj. EBITDA margin	24.1%		27.2%
Operational metrics (Actual Amounts)
Starts of care
Episodic admissions	36,106		39,657		(9.0)%
Non-episodic admissions	13,293		10,941		21.5%
Total admissions	49,399		50,598		(2.4)%
Same-store total admissions growth					(5.3)%
Episodic recertifications	25,993		28,296		(8.1)%
Non-episodic recertifications	6,447		5,498		17.3%
Total recertifications	32,440		33,794		(4.0)%
Same-store total recertifications growth					(5.8)%
Total starts of care	81,839		84,392		(3.0)%
Completed episodes	62,691		67,839		(7.6)%
Revenue per episode	$	2,972	$	2,967	0.2%
Visits per episode	15.0		15.6		(3.8)%
Total visits	1,217,447		1,297,350		(6.2)%
Non-episodic visits	275,679		240,006		14.9%
Cost per visit	$	88	$	80	10.0%

The year-over-year decrease in revenue primarily was due to a decline in total admissions, the continued shift to more non-episodic patients and the partial resumption of sequestration. Total admissions decreased year over year primarily due to a reduction in episodic admissions offset by continued growth in non-episodic admissions. Factors contributing to the decrease in volumes included capacity constraints resulting from increased usage of paid-days-off, referral challenges resulting from the impact of rebranding on electronic referral systems, and decreased admissions from acute care hospitals. Revenue per episode was generally flat year over year as the increase in Medicare reimbursement rates was offset by the partial resumption of sequestration, the timing of completed episodes and patient mix under the Patient Driven Groupings Model.

Adjusted EBITDA decreased year over year primarily due to lower revenue and higher cost of services related to labor, fleet, and mileage reimbursement.

3

Hospice

	Q2				'22 vs. '21
($ in millions)	2022		2021
Net service revenue	$	47.8	$	53.8	(11.2)%
Cost of services	21.5		23.0		(6.5)%
Gross margin	55.0%		57.2%
Adjusted EBITDA	$	10.7	$	14.5	(26.2)%
% Adj. EBITDA margin	22.4%		27.0%
Operational metrics (Actual Amounts)
Total admissions	2,835		3,298		(14.0)%
Same-store total admissions growth					(22.1)%
Patient days	313,718		351,878		(10.8)%
Discharged average length of stay	109		115		(5.2)%
Average daily census	3,447		3,867		(10.9)%
Revenue per day	$	152	$	153	(0.7)%
Cost per day	$	69	$	65	6.2%

The year-over-year decrease in revenue primarily was due to the decrease in average daily census and the partial resumption of sequestration. Admissions decreased year over year primarily due to capacity constraints and staffing challenges leading to a decline in referrals. In addition, fewer patients began care relative to the discharge rate during the second quarter of 2022.

Adjusted EBITDA decreased year over year primarily due to lower revenue and higher cost of services related to labor, fleet, mileage reimbursement and our use of Medalogix Muse for patient care planning.

GUIDANCE

The Company has revised its full-year 2022 guidance to reflect the current challenging operating environment which has resulted in the return of volumes to be slower than expected.

The guidance assumes an approximate $12 million impact from the resumption of sequestration and $8 to $10 million of additional overhead costs in the back half of the year associated with the separation from Encompass Health.

Full-year 2022	Revised Guidance	Prior Guidance
Net Service Revenue	between $1,075 and $1,110 million	between $1,080 and $1,120 million
Adjusted EBITDA	between $155 and $170 million	between $165 and $185 million
Adjusted EPS	between $1.47 and $1.75	between $1.64 and $2.01

For additional considerations regarding the Company’s 2022 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com. See also the “Other Information” section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.

CONFERENCE CALL INFORMATION

The Company will host an investor conference call at 11 AM Eastern Time on Aug. 2, 2022 to discuss its results for the second quarter of 2022. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call may be accessed by visiting http://investors.ehab.com. Following the call, a replay will be available at the same location.

4

For reference during the call, the company will post certain supplemental information at http://investors.ehab.com.

ABOUT ENHABIT HOME HEALTH & HOSPICE

Enhabit Home Health & Hospice is a leading national home health and hospice provider working to expand what’s possible for patient care in the home. The Company’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 251 home health locations and 100 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit www.ehab.com.

OTHER INFORMATION

The information in this press release is summarized and should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “June 2022 Form 10-Q”), when filed, as well as the Company’s Current Report on Form 8-K filed on August 1, 2022 (the “Q2 Earnings Release Form 8-K”), to which this press release is attached as Exhibit 99.1. In addition, the Company will post supplemental information today on its website at http://investors.ehab.com for reference during its August 2, 2022 earnings call.

The financial data contained in the press release and supplemental information includes non-GAAP financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, leverage ratios, adjusted earnings per share, and adjusted free cash flow. Schedules are attached that reconcile these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States. The Q2 Earnings Release Form 8-K provides further explanation and disclosure regarding the Company’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information.

Excluding net operating revenue, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Such items include gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be non-indicative of its ongoing operations. These items cannot be reasonable predicted and will depend on several factors, including industry and market conditions, and could be material to the Company’s results computed in accordance with GAAP.

However, the following reasonably estimable GAAP measures for 2022 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:

•Interest expense and amortization of debt discounts and fees - estimate of $11.2 million to $15.2 million

•Amortization of debt-related items - approximately $1.3 million

The Q2 Earnings Form 8-K and, when filed, the June 2022 Form 10-Q can be found on the Company’s website at http://investors.ehab.com and the SEC’s website at www.sec.gov.

5

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In Millions, Except Per Share Data)
Net service revenue	$	268.0	$	286.1	$	542.3	$	556.6
Cost of service (excluding depreciation and amortization)	130.3		129.6		260.0		254.2
Gross margin	137.7		156.5		282.3		302.4
General and administrative expenses	102.2		105.7		202.9		205.6
Depreciation and amortization	8.2		9.4		16.7		18.5
Operating income	27.3		41.4		62.7		78.3
Interest expense and amortization of debt discounts and fees	0.1		—		0.1		0.1
Equity in net income of nonconsolidated affiliates	—		(0.2)		—		(0.4)
Other income	—		(1.6)		—		(1.6)
Income before income taxes and noncontrolling interests	27.2		43.2		62.6		80.2
Income tax expense	6.4		10.4		15.1		19.1
Net income	20.8		32.8		47.5		61.1
Less: Net income attributable to noncontrolling interests	0.7		0.5		1.3		0.9
Net income attributable to Enhabit, Inc	$	20.1	$	32.3	$	46.2	$	60.2
Weighted average common shares outstanding:
Basic	49.6		49.6		49.6		49.6
Diluted	49.6		49.6		49.6		49.6
Earnings per common share:
Basic earnings per share attributable to Enhabit, Inc. common stockholders	$	0.41	$	0.65	$	0.93	$	1.21
Diluted earnings per share attributable to Enhabit, Inc. common stockholders	$	0.41	$	0.65	$	0.93	$	1.21

6

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30, 2022		December 31, 2021
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	50.2	$	5.4
Restricted cash	3.5		2.6
Accounts receivable	154.6		164.5
Prepaid expenses and other current assets	9.2		6.3
Total current assets	217.5		178.8
Property and equipment, net	22.7		20.4
Operating lease right-of-use assets	43.3		48.4
Goodwill	1,217.7		1,189.0
Intangible assets, net	111.6		259.1
Other long-term assets	8.6		24.3
Total assets	$	1,621.4	$	1,720.0
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	23.6	$	5.0
Current operating lease liabilities	14.3		14.9
Accounts payable	2.8		3.5
Accrued payroll	72.8		66.4
Refunds due patients and other third-party payors	10.8		9.4
Income tax payable	—		4.2
Accrued medical insurance	7.2		8.3
Other current liabilities	22.9		24.8
Total current liabilities	154.4		136.5
Long-term debt, net of current portion	550.3		3.5
Long-term operating lease liabilities	29.1		33.5
Deferred income tax liabilities	31.7		63.2
	765.5		236.7
Commitments and contingencies
Redeemable noncontrolling interests	5.2		5.0
Stockholders’ equity:
Enhabit, Inc stockholders’ equity:
Total Enhabit, Inc stockholders’ equity	822.3		1,470.0
Noncontrolling interests	28.4		8.3
Total stockholders’ equity	850.7		1,478.3
Total liabilities and stockholders’ equity	$	1,621.4	$	1,720.0

7

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Cash Flows

(Unaudited)

	Six Months Ended June 30,
	2022		2021
	(In Millions)
Cash flows from operating activities:
Net income	$	47.5	$	61.1
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	16.7		18.5
Equity in net income of nonconsolidated affiliates	—		(0.4)
Distributions from nonconsolidated affiliates	—		0.2
Stock-based compensation	2.5		1.8
Deferred tax (benefit) expense	(1.4)		0.9
Other, net	(0.6)		(2.1)
Changes in assets and liabilities, net of acquisitions—
Accounts receivable	13.4		(28.0)
Prepaid expenses and other assets	(2.7)		(0.8)
Accounts payable	(0.8)		(1.0)
Accrued payroll	6.2		19.9
Other liabilities	(5.8)		23.5
Net cash provided by operating activities	75.0		93.6
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	—		(97.7)
Purchases of property and equipment	(4.5)		(2.1)
Additions to capitalized software costs	(0.5)		(1.0)
Other, net	1.5		2.5
Net cash used in investing activities	(3.5)		(98.3)
Cash flows from financing activities:
Principal borrowings on notes	400.0		—
Principal payments on debt	(0.4)		—
Borrowings on revolving credit fiacility	170.0		—
Principal payments under finance lease obligations	(2.6)		(3.7)
Debt issuance costs	(4.4)		—
Distributions paid to noncontrolling interests of consolidated affiliates	(0.7)		(1.3)
Contributions from Encompass	59.8		83.7
Distributions to Encompass	(654.9)		(74.3)
Contributions from noncontrolling interests of consolidated affiliates	7.4		—
Net cash (used in) provided by financing activities	(25.8)		4.4
Increase (decrease) in cash, cash equivalents, and restricted cash	45.7		(0.3)
Cash, cash equivalents, and restricted cash at beginning of year	8.0		40.0
Cash, cash equivalents, and restricted cash at end of year	$	53.7	$	39.7

8

Enhabit, Inc. and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

	Q2				6 Months
	2022		2021		2022		2021
Earnings per share, as reported	$	0.41	$	0.65	$	0.93	$	1.21
Adjustments, net of tax:
Income tax adjustments	—		—		—		(0.01)
Transaction costs	0.06		0.06		0.09		0.07
Adjusted earnings per share*	$	0.47	$	0.71	$	1.02	$	1.28

*    Adjusted EPS may not sum due to rounding.

9

Enhabit, Inc. and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

	Q2 QTD
	2022
			Adjustments
	As Reported		Transaction Costs		As Adjusted
	(In Millions, Except Per Share Amounts)
Adjusted EBITDA*	$	40.3	$	—	$	40.3
Depreciation and amortization	(8.2)		—		(8.2)
Interest expense and amortization of debt discounts and fees	(0.1)		—		(0.1)
Loss on disposal or impairment of assets	0.4		—		0.4
Stock-based compensation	(1.2)		—		(1.2)
Stock-based compensation included in overhead allocation	(0.6)		—		(0.6)
Transaction costs	(4.1)		4.1		—
Income before income tax expense	26.5		4.1		30.6
Provision for income tax expense	(6.4)		(1.0)		(7.4)
Net income attributable to Enhabit	$	20.1	$	3.1	$	23.2
Diluted earnings per share**	$	0.41	$	0.06	$	0.47
Diluted shares used in calculation	49.6

*    Reconciliation to GAAP provided on page 14

**    Adjusted EPS may not sum due to rounding.

10

Enhabit, Inc. and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

	Q2 QTD
	2021
			Adjustments
	As Reported		Income Tax Adjustments		Transaction Costs		As Adjusted
	(In Millions, Except Per Share Amounts)
Adjusted EBITDA*	$	57.8	$	—	$	—	$	57.8
Depreciation and amortization	(9.4)		—		—		(9.4)
Loss on disposal or impairment of assets	0.4		—		—		0.4
Stock-based compensation	(1.2)		—		—		(1.2)
Stock-based compensation included in overhead allocation	(0.9)		—		—		(0.9)
Transaction costs	(4.0)		—		4.0		—
Income before income tax expense	42.7		—		4.0		46.7
Provision for income tax expense	(10.4)		(0.1)		(1.0)		(11.5)
Net income attributable to Enhabit	$	32.3	$	(0.1)	$	3.0	$	35.2
Diluted earnings per share**	$	0.65	$	—	$	0.06	$	0.71
Diluted shares used in calculation	49.6

*    Reconciliation to GAAP provided on page 14

**    Adjusted EPS may not sum due to rounding.

11

Enhabit, Inc. and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

	Q2 YTD
	2022
			Adjustments
	As Reported		Transaction Costs		As Adjusted
	(In Millions, Except Per Share Amounts)
Adjusted EBITDA*	$	87.3	$	—	$	87.3
Depreciation and amortization	(16.7)		—		(16.7)
Interest expense and amortization of debt discounts and fees	(0.1)		—		(0.1)
Loss on disposal or impairment of assets	0.5		—		0.5
Stock-based compensation	(2.5)		—		(2.5)
Stock-based compensation included in overhead allocation	(1.1)		—		(1.1)
Transaction costs	(6.1)		6.1		—
Income before income tax expense	61.3		6.1		67.4
Provision for income tax expense	(15.1)		(1.5)		(16.6)
Net income attributable to Enhabit	$	46.2	$	4.6	$	50.8
Diluted earnings per share**	$	0.93	$	0.09	$	1.02
Diluted shares used in calculation	49.6

*    Reconciliation to GAAP provided on page 14

**    Adjusted EPS may not sum due to rounding.

12

Enhabit, Inc. and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

	Q2 YTD
	2021
			Adjustments
	As Reported		Income Tax Adjustments		Transaction Costs		As Adjusted
	(In Millions, Except Per Share Amounts)
Adjusted EBITDA*	$	105.0	$	—	$	—	$	105.0
Depreciation and amortization	(18.5)		—		—		(18.5)
Interest expense and amortization of debt discounts and fees	(0.1)		—		—		(0.1)
Loss on disposal or impairment of assets	0.5		—		—		0.5
Stock-based compensation	(1.8)		—		—		(1.8)
Stock-based compensation included in overhead allocation	(1.1)		—		—		(1.1)
Transaction costs	(4.7)		—		4.7		—
Income before income tax expense	79.3		—		4.7		84.0
Provision for income tax expense	(19.1)		(0.3)		(1.2)		(20.6)
Net income attributable to Enhabit	$	60.2	$	(0.3)	$	3.5	$	63.4
Diluted earnings per share**	$	1.21	$	(0.01)	$	0.07	$	1.28
Diluted shares used in calculation	49.6

*    Reconciliation to GAAP provided on page 14

**    Adjusted EPS may not sum due to rounding.

13

Enhabit, Inc. and Subsidiaries

Supplemental Information

Reconciliation of Net Income to Adjusted EBITDA

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In Millions)
Net Income	$	20.8	$	32.8	$	47.5	$	61.1
Income tax expense	6.4		10.4		15.1		19.1
Interest expense and amortization of debt discounts and fees	0.1		—		0.1		0.1
Depreciation and amortization	8.2		9.4		16.7		18.5
Loss on disposal or impairment of assets	(0.4)		(0.4)		(0.5)		(0.5)
Stock-based compensation	1.2		1.2		2.5		1.8
Stock-based compensation included in overhead allocation	0.6		0.9		1.1		1.1
Net income attributable to noncontrolling interests	(0.7)		(0.5)		(1.3)		(0.9)
Transaction costs	4.1		4.0		6.1		4.7
Adjusted EBITDA	$	40.3	$	57.8	$	87.3	$	105.0

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In Millions)
Net cash provided by operating activities	$	33.6	$	73.2	$	75.0	$	93.6
Interest expense and amortization of debt discounts and fees	0.1		—		0.1		0.1
Equity in net income of nonconsolidated affiliates	—		0.2		—		0.4
Net income attributable to noncontrolling interests in continuing operations	(0.7)		(0.5)		(1.3)		(0.9)
Distributions from nonconsolidated affiliates	—		(0.1)		—		(0.2)
Current portion of income tax expense	7.6		10.1		16.5		18.2
Change in assets and liabilities	(5.0)		(31.6)		(10.3)		(13.6)
Transaction costs	4.1		4.0		6.1		4.7
Stock-based compensation included in overhead allocation	0.6		0.9		1.1		1.1
Other	—		1.6		0.1		1.6
Adjusted EBITDA	$	40.3	$	57.8	$	87.3	$	105.0

14

Enhabit, Inc. and Subsidiaries

Supplemental Information

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

	Q2				6 Months
($ in millions)	2022		2021		2022		2021
Net cash provided by operating activities	$	33.6	$	73.2	$	75.0	$	93.6
Capital expenditures for maintenance	(0.3)		(2.2)		(2.6)		(3.1)
Distributions paid to noncontrolling interests of consolidated affiliates	(0.2)		(1.0)		(0.7)		(1.3)
Items non-indicative of ongoing operating performance:
Stock-based compensation included in overhead allocation	0.6		0.9		1.1		1.1
Transaction costs and related assumed liabilities	3.7		3.1		5.2		3.1
Adjusted free cash flow	$	37.4	$	74.0	$	78.0	$	93.4

15

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, the impact of the ongoing COVID-19 pandemic, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, our ability to control costs, particularly labor and employee benefit costs, and other factors which may be identified from time to time in Enhabit’s SEC filings and other public announcements, including Enhabit’s Form 10 Registration Statement filed on May 25, 2022, as amended on June 9, 2022 and June 14, 2022 and Form 10-Q for the quarter ended June 30, 2022, when filed.

16

EX-99.2

Second Quarter Earnings Call Supplemental Information August 2, 2022

Enhabit Home Health & Hospice 2 Forward Looking Statement Statements contained in this presentation which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, our ability to attract and retain key management personnel and healthcare professionals, the impact of the ongoing COVID-19 pandemic, potential disruptions or breaches of our or our vendors’ information systems, the outcome of litigation, our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures, our ability to control costs, particularly labor and employee benefit costs, and other factors which may be identified from time to time in Enhabit’s SEC filings and other public announcements, including Enhabit’s Form 10 Registration Statement filed on May 25, 2022, as amended on June 9, 2022 and June 14, 2022. Note regarding presentation of non-GAAP financial measures The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, leverage ratios, adjusted earnings per share, and adjusted free cash flow. Schedules are attached that reconcile the non-GAAP financial measures included in the following presentation to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States. The Q2 Earnings Release Form 8-K, to which the following presentation is attached as Exhibit 99.2, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information.

Enhabit Home Health & Hospice 3 Contents Overview and Key Takeaways 5-10 Detailed Financial and Operational Results 11-15 Debt, Liquidity and Cash Flow 16-18 Guidance 19-23 Company Overview 24-26 Appendix, Including Reconciliations to GAAP 27-43

Enhabit Home Health & Hospice 4 A better way to care We remain committed to providing high-quality, compassionate care to every patient wherever they call home Enhabit began trading on the NYSE under the ticker symbol EHAB on July 1, 2022.

Overview of Quarter Results 1

Enhabit Home Health & Hospice 6 Quarterly Results at a Glance Continued payor mix shift in home heath, the partial resumption of sequestration, and inflation impacted the quarter. The partial resumption of sequestration reduced consolidated net revenue and Adjusted EBITDA by ~$3.4 million. Cost of services increased due to higher costs of labor, fleet and mileage reimbursement. Home health continues to drive strong growth in Medicare Advantage admissions. Total admissions decreased 2.4% Y/Y, as the 21.5% growth in non-episodic admissions was offset by a 9.0% decrease in episodic admissions. Total admissions are up 1.3% YTD for 2022. $268.0M Revenue $40.3M Adjusted EBITDA 49,399 Home Health Total Admissions 2,835 Hospice Admissions 62,691 Home Health Completed Episodes 3,447 Hospice Average Daily Census Hospice admissions growth began to trend positive late in the quarter. Q1 declines in admissions due to staffing constraints continued into Q2 and drove average daily census lower. Strategic changes to hospice leadership, operations and sales are providing positive momentum exiting June and into the third quarter. $2,972 Home Health Revenue per Completed Episode $152 Hospice Revenue per Day $88 Home Health Cost per Visit $69 Hospice Cost per Day Reconciliations to GAAP provided on pages 36 to 42 The second quarter was the strongest quarter in 2021 for starts of care.

Enhabit Home Health & Hospice 7 Q2’22 Strategic Commentary • Total admissions decreased Y/Y primarily due to a reduction in episodic admissions offset by continued growth in non-episodic admissions. o Factors contributing to the Y/Y decrease in volumes included: - Increased use of paid days off (PDO) - Rebranding and its impact on electronic referral systems - Decreased admissions from acute care hospitals • Recertifications decreased 4.0% Y/Y primarily due to an increase in therapy patients. • Revenue per completed episode was generally flat Y/Y as the increase in Medicare reimbursement rates was offset by the partial resumption of sequestration, the timing of completed episodes and patient mix under the Patient Driven Groupings Model. • Cost per visit increased 10.0% Y/Y primarily due to lower clinical productivity, increased costs associated with fleet and mileage reimbursement, increased PDO usage, increased use of contract staff, and market rate increases for nurses. • Admissions decreased 14.0% Y/Y primarily due to capacity constraints and staffing challenges leading to a decline in referrals. • Fewer patients began care relative to the discharge rate during Q2 2022. • Cost per day increased 6.2% Y/Y primarily due to lower clinical productivity, increased costs associated with fleet and mileage reimbursement, and costs associated with our use of Medalogix Muse for patient care planning. Home Health total admissions decreased 2.4% Y/Y Hospice average daily census decreased 10.9% Y/Y

Enhabit Home Health & Hospice 8 Q2’22 Strategic Commentary • Revenue decreased Y/Y primarily due to lower volumes in both segments, the continued shift to more non-episodic patients in home health, and the partial resumption of sequestration. • Lower volumes Y/Y resulted from: o Capacity constraints resulting from increased usage of PDO o Referral challenges resulting from the impact of rebranding on electronic referral systems o Decreased admissions from acute care hospitals • 22.6% of total home health visits were non-episodic visits in Q2’22, up from 18.5% of total visits in Q2’21 o Estimated impact of this payor mix shift is $3 million to $4 million in Q2’22 • Partial resumption of sequestration (1% April 1st; 2% July 1st) decreased revenue $3.4 million in Q2’22 ($3.0 million home health; $0.4 million hospice). • Adjusted EBITDA decreased Y/Y primarily due to lower revenue and higher cost of services related to labor, fleet and mileage reimbursement. o Additional costs associated with increased use of PDO and covering absences with extra visit pay, PRN usage, etc… o Cost associated with fleet and mileage reimbursement increased $2.3 million Y/Y o Increased costs associated with lower clinical productivity, increased use of contract staff and market rate increases for nurses Adjusted EBITDA decreased 30.3% Y/Y Revenue decreased 6.3% Y/Y Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 9 Q2’22 Strategic Commentary • Medicare Advantage has grown from 12.9% of our home health revenue in Q2’21 to 16.8% in Q2’22. • Continued growth in non-episodic admissions underscores the continued shift of Medicare eligibles to Medicare Advantage. • Current Medicare Advantage per visit rate differential to Medicare fee-for-service is 35% to 40%. • Deploying a disciplined approach to manage growth in Medicare Advantage and close the rate differential o Creation of payor innovation team o Strategic conversations with Medicare Advantage payors o Terminating low-paying contracts • Continuing to prioritize nursing hires and experiencing positive trends • Caring for and investing in our growing team o Updated mileage reimbursement program o Kept employee paid premiums down or flat o Increased hiring incentives through salary market adjustments and more flexible work schedules Continued Growth in Medicare Advantage Labor trends and retention initiatives

Enhabit Home Health & Hospice 10 Home Health & Hospice Highlights Home Health Q2 Overview 4th Largest Provider of Medicare-Certified Skilled Home Health Services 34Home Health Locations States Hospice Q2 Overview 12th Largest Provider of Medicare-Certified Hospice Services 22Hospice Locations States 81,839 Total Starts of Care 49,399 Total Admissions $2,972 Revenue per Episode $88 Total Cost per Visit 1,217,447 Total Visits 2,835 Total Admissions 3,447 Average Daily Census $152 Revenue per Day $69 Cost per Day 109 Average Length of Stay Note: Market share is based on 2020 Medicare expenditures. 251 100

Detailed Financial and Operational Results 2

Enhabit Home Health & Hospice 12 Q2’22 Consolidated Results Q2 ‘22 vs. ‘21 ($ in millions, except per share data) 2022 2021 Home health net service revenue $220.2 $232.3 (5.2)% Hospice net service revenue $47.8 $53.8 (11.2)% Total net service revenue $268.0 $286.1 (6.3)% % of Revenue % of Revenue Cost of services 48.6% ($130.3) 45.3% ($129.6) 0.5% Gross margin 51.4% $137.7 54.7% $156.5 (12.0)% Administrative & general expenses 36.1% ($96.7) 35.0% ($100.0) (3.3)% Operating expenses 84.7% ($227.0) 80.3% ($229.6) (1.1)% Other income - ($1.6) Equity in net income of nonconsolidated affiliates - ($0.2) Noncontrolling interests $0.7 $0.5 Adjusted EBITDA $40.3 $57.8 (30.3%) Adjusted EBITDA margin 15.0% 20.2% Adjusted EPS see calculations on slides 36 and 37 $0.47 $0.71 (33.8%) In arriving at Adjusted EBITDA, the following were excluded: Gain on disposal of assets ($0.4) ($0.4) Stock compensation expense $1.2 $1.2 Other losses $4.7 $4.9 Revenue • Lower volumes • Payor mix shift to more non-episodic • Partial resumption of sequestration Adjusted EBITDA • Lower revenue • Higher cost of services related to labor, fleet and mileage reimbursement Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 13 Home Health Segment Q2 ‘22 vs. ‘21($ in millions) 2022 2021 Net service revenue $220.2 $232.3 (5.2)% Cost of services 108.8 106.6 2.1% Gross margin 50.6% 54.1% Adjusted EBITDA $53.0 $63.3 (16.3)% % Adj. EBITDA margin 24.1% 27.3% Operational metrics (Actual Amounts) Starts of care Episodic admissions 36,106 39,657 (9.0)% Non-episodic admissions 13,293 10,941 21.5% Total admissions 49,399 50,598 (2.4)% Same-store total admissions growth (5.3)% Episodic recertifications 25,993 28,296 (8.1)% Non-episodic recertifications 6,447 5,498 17.3% Total recertifications 32,440 33,794 (4.0)% Same-store total recertifications growth (5.8)% Total starts of care 81,839 84,392 (3.0)% Completed episodes 62,691 67,839 (7.6)% Revenue per episode $2,972 $2,967 0.2% Visits per episode 15.0 15.6 (3.8)% Total visits 1,217,447 1,297,350 (6.2)% Non-episodic visits 275,679 240,006 14.9% Cost per visit $88 $80 10.0% Revenue • Reduction in episodic admissions • Payor mix shift • Partial resumption of sequestration Adjusted EBITDA • Lower revenue • Higher cost of services related to labor, fleet and mileage reimbursement Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 14 Hospice Segment Q2 ‘22 vs. ‘21($ in millions) 2022 2021 Net service revenue $47.8 $53.8 (11.2)% Cost of services 21.5 23.0 (6.5)% Gross margin 55.0% 57.2% Adjusted EBITDA $10.7 $14.5 (26.2)% % Adj. EBITDA margin 22.4% 27.0% Operational metrics (Actual Amounts) Total admissions 2,835 3,298 (14.0)% Same-store total admissions growth (22.1)% Patient days 313,718 351,878 (10.8)% Discharged average length of stay 109 115 (5.2)% Average daily census 3,447 3,867 (10.9)% Revenue per day $152 $153 (0.7)% Cost per day $69 $65 6.2% Revenue • Decrease in average daily census • Partial resumption of sequestration Adjusted EBITDA • Lower revenue • Higher cost of services related to labor, fleet, mileage reimbursement, and implementation of MUSE Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 15 Consolidated Adjusted EBITDA *Home office administrative and general expenses in the above table exclude stock compensation of $1.8 million and $2.1 million for Q2 2022 and Q2 2021, respectively, as well as $4.1 million and $2.7 million in costs associated with the strategic alternatives review for Q2 2022 and Q2 2021, respectively. In addition, Q2 2021 excludes $1.3 million of transaction costs associated with the Frontier acquisition in Q2 2021. Reconciliations to GAAP provided on pages 36 to 42 ($ in millions) Q2 2022 % of Consolidated Rev. Q2 2021 % of Consolidated Rev. Home health segment Adjusted EBITDA $53.0 $63.3 Hospice segment Adjusted EBITDA $10.7 $14.5 Home office administrative and general expenses* ($23.4) 8.7% ($20.0) 7.0% Consolidated Adjusted EBITDA $40.3 $57.8

Debt, Liquidity and Cash Flow 3

Enhabit Home Health & Hospice 17 Debt & Liquidity Metrics ($ in millions) Jun 30, 2022 Advances under $350 million revolving credit facility, due 2027 $170.0 $400 million term loan facility, due 2027 397.7 Finance lease obligations 6.2 Total debt $573.9 Less: Cash and cash equivalents 50.2 Net debt $523.7 Net debt to Adjusted EBITDA 2.9x Available liquidity $230.2 Notes: • Current interest rate of 3.9% (SOFR + credit spread adjustment + 175 bps) Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 18 Adjusted Free Cash Flow The reduction in adjusted free cash flow primarily resulted from the decrease in Adjusted EBITDA. See uses of free cash flow on slide 23. ($ in millions) Reconciliations to GAAP provided on pages 36 to 42

Guidance 4

Enhabit Home Health & Hospice 20 2022 Guidance Revised August 1, 2022 ($ in millions, except per share data) 2022 Updated Guidance 2022 Original Guidance 2021 Adjusted* Net service revenue $1,075 to $1,110 $1,080 to $1,120 $1,107 Adjusted EBITDA $155 to $170 $165 to $185 $197 Adjusted EPS $1.47 to $1.75 $1.64 to $2.01 $2.35 Reconciliations to GAAP provided on pages 36 to 42 * Reflects Enhabit on a carve-out basis

Enhabit Home Health & Hospice 21 Guidance Considerations • An increase of 3.4% in Medicare pricing prior to resumption of sequestration • Cost per visit increase of 5% to 6% Commentary: Home Health Projections • Capacity constraints related to staffing in the first half of 2022 led to a decline in hospice referrals; recovery of volumes has been slower than anticipated • An increase of 2.0% in Medicare pricing prior to resumption of sequestration • Cost per patient day increase of 3.5% to 4.5% Commentary: Hospice Projections • Incremental general and administrative costs of $22 million to $24 million(1) • Incremental expense of $2 million to $3 million for de novo locations • Interest expense of $10 million to $14 million • Tax rate of approximately 26% • Diluted share count of approximately 50 million shares • Guidance excludes nonrecurring costs related to the separation from Encompass Health Commentary: Consolidated Projections (1) The incremental G&A costs for Enhabit on a full-year basis are expected to be $26 million to $28 million, with that run rate achieved by the end of FY 2023. Enhabit's FY 2022 incremental G&A is expected to be lower than this range due to the lower cost of overhead allocated from Encompass Health prior to the separation date. See page 30 for overhead allocations from Encompass Health. Changes since prior guidance are underlined

Enhabit Home Health & Hospice 22Reconciliations to GAAP provided on pages 36 to 42 Adjusted Free Cash Flow Assumptions Certain cash flow items (in millions) 2021 Adjusted* 2022 YTD 2022 Assumptions Cash interest payments $0.3 $0.1 $10 to $14 Cash income tax payments, net of refunds 28.4 - $20 to $25 Working capital 32.8 $6.6 $25 to $35 Maintenance capital expenditures 5.4 $2.6 $5 to $10 Adjusted free cash flow $130.3 $78.0 $75 to $106 * Reflects Enhabit on a carve-out basis

Enhabit Home Health & Hospice 23 Uses of Free Cash Flow *Reflects Enhabit on a carve-out basis **On January 1, 2022, we acquired a 50% equity interest from Frontier Home Health and Hospice, LLC in a joint venture with Saint Alphonsus system which operates home health and hospice locations in Boise, Idaho. The total purchase price was $15.9 million and was funded on December 31, 2021. ***2021 adjusted primarily related to finance lease obligations on vehicle fleet. In 2022, Enhabit will be required to pay $10 million of scheduled debt amortization associated with its term loan. (in millions) 2021 Adjusted* 2022 YTD 2022 Assumptions Growth in Core Business De novos $- $0.5 $2 to $3 Acquisitions** $117.5 - $50 to $100 Debt reduction Debt redemptions (borrowings), net*** $1.2 ($567.1) TBD

Company Overview 5

Enhabit Home Health & Hospice 25 Overview 86 hospice locations co-located with home health locations(1) 11 states where we are #1 or #2 in home health(2) ~69% of total Medicare home health spend occurs in states in which we operate(2) We are a leading provider of home health and hospice services that strives to provide superior, cost-effective care where patients prefer it: in their homes For over 20 years, we’ve provided care with high-quality outcomes becoming a trusted partner of health systems, payors and other risk-bearing entities We operate nationally across 34 states with 10,000+ employees We foster an award-winning culture that is a strategic advantage in attracting and retaining talent and a main contributor to our continued success Home Health Locations Hospice Locations Home Health & Hospice State Home Health Only State (1) As of June 30, 2022 (2) Based on 2020 Home Health Medicare revenues 100 Hospice Locations 251 Home Health Locations

Enhabit Home Health & Hospice 26 Growth Strategy Multi-faceted growth avenues with clearly defined areas of opportunity Drive organic growth at existing operations Execute on de novo strategy Pursue strategic acquisitions Leverage care transitions expertise Expand Medicare Advantage focus Explore adjacent service offerings Currently located in states that represent ~69% of 2020 total Medicare home health spend Expecting to open 10 de novo locations per year In 2022, we expect to spend approximately $50 to $100 million on acquisitions Attractive partner due to quality of outcomes, data management capabilities, scale and market density Total Medicare beneficiaries choosing Medicare Advantage expected to grow to 51% by 2030 compared to ~44% in 2021 Explore adjacent verticals to further bolster our footprint in home health services

Enhabit Home Health & Hospice 27 Appendix

Enhabit Home Health & Hospice 28 Home Health Operational Metrics (In Millions) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY 2021 Home health net service revenue $220.2 $224.9 $224.0 $221.1 $232.3 $219.9 $897.3 Home Health (Actual Amounts) Total admissions 49,399 53,309 50,817 48,412 50,598 50,799 200,626 Episodic admissions 36,106 38,971 37,908 37,577 39,657 40,215 155,357 Non-episodic admissions 13,293 14,338 12,909 10,835 10,941 10,584 45,269 Total recertifications 32,440 31,787 32,621 32,942 33,794 31,902 131,259 Episodic recertifications 25,993 25,808 27,273 27,742 28,296 28,083 111,394 Non-episodic recertifications 6,447 5,979 5,348 5,200 5,498 3,819 19,865 Total starts of care 81,839 85,096 83,438 81,354 84,392 82,701 331,885 Completed episodes 62,691 63,111 64,242 66,065 67,839 66,435 264,581 Avg. revenue per episode $2,972 $3,038 $3,010 $2,916 $2,967 $2,923 $2,954 Visits per episode 15.0 15.2 15.1 15.0 15.6 15.8 15.4 Total visits 1,217,447 1,228,084 1,219,906 1,213,370 1,297,350 1,239,073 4,969,699 Non-episodic visits 275,679 270,253 246,777 220,260 240,006 191,056 898,099 Cost per visit $88 $86 $85 $87 $80 $81 $83

Enhabit Home Health & Hospice 29 Hospice Operational Metrics (In Millions) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY 2021 Hospice net service revenue $47.7 $49.4 $52.1 $52.8 $53.8 $50.6 $209.3 Hospice (Actual Amounts) Total admissions 2,835 3,246 3,223 3,262 3,298 3,330 13,113 Patient days 313,718 319,834 334,011 352,691 351,878 334,400 1,372,980 Discharged average length of stay 109 108 106 106 115 100 107 Average daily census 3,447 3,554 3,631 3,834 3,867 3,716 3,762 Revenue per day $152 $154 $156 $150 $153 $151 $152 Cost per day $69 $68 $66 $67 $65 $65 $66

Enhabit Home Health & Hospice 30 Reconciliation of Historic Segment Adjusted EBITDA of Encompass Health to Enhabit Adjusted EBITDA ($ in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 YTD 2022 Encompass Health Segment Adjusted EBITDA $50.8 $61.7 $46.4 $52.6 $211.5 $50.1 $43.8 $93.9 Less: Overhead allocation from Encompass Health (3.8) (4.6) (3.9) (4.4) (16.7) (3.6) (4.1) (7.7) Add: stock compensation included in overhead allocation 0.2 0.9 0.5 0.8 2.4 0.5 0.6 1.1 Enhabit Adjusted EBITDA $47.2 $58.0 $43.0 $49.0 $197.2 $47.0 $40.3 $87.3 Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 31 Consolidated Results – YTD 2022 Year-To-Date ‘22 vs. ‘21 ($ in millions, except per share data) 2022 2021 Home health net service revenue $445.1 $452.2 (1.6)% Hospice net service revenue $97.2 $104.4 (6.9)% Total net service revenue $542.3 $556.6 (2.6)% % of Revenue % of Revenue Cost of services 47.9% ($260.0) 45.7% ($254.2) 2.3% Gross margin 52.1% $282.3 54.3% $302.4 (6.6)% Administrative & general expenses 35.7% ($193.7) 35.7% ($198.5) (2.4)% Operating expenses 83.7% ($453.7) 81.3% ($452.7) 0.2% Other income - ($1.6) Equity in net income of nonconsolidated affiliates - ($0.4) Noncontrolling interests $1.3 $0.9 Adjusted EBITDA $87.3 $105.0 (16.9%) Adjusted EBITDA margin 16.1% 18.9% Adjusted EPS $1.02 $1.28 (20.3%) In arriving at Adjusted EBITDA, the following were excluded: Gain on disposal of assets ($0.5) ($0.5) Stock compensation expense $2.5 $1.8 Other losses $7.2 $5.8 Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 32 Home Health Segment Results – YTD 2022 Year-To-Date ‘22 vs. ‘21($ in millions) 2022 2021 Net service revenue $445.1 $452.2 (1.6)% Cost of services 216.8 209.6 3.4% Gross margin 51.3% 53.6% Adjusted EBITDA $110.7 119.3 (7.2)% % Adj. EBITDA margin 24.9% 26.4% Operational metrics (Actual Amounts) Starts of care Episodic admissions 75,077 79,872 (6.0)% Non-episodic admissions 27,631 21,525 28.4% Total admissions 102,708 101,397 1.3% Same-store total admissions growth (2.2)% Episodic recertifications 51,801 56,379 (8.1)% Non-episodic recertifications 12,426 9,317 33.4% Total recertifications 64,227 65,696 (2.2)% Same-store total recertifications growth (4.4)% Total starts of care 166,935 167,093 (0.1)% Completed episodes 125,802 134,274 (6.3)% Revenue per episode $3,005 $2,945 2.0% Visits per episode 15.1 15.7 (3.8)% Total visits 2,445,531 2,536,423 (3.6)% Non-episodic visits 545,932 431,062 26.6% Cost per visit $87 $81 7.4% Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 33 Hospice Segment Results – YTD 2022 Year-To-Date ‘22 vs. ‘21($ in millions) 2022 2021 Net service revenue $97.2 $104.4 (6.9)% Cost of services 43.2 44.6 (3.1)% Gross margin 55.6% 57.3% Adjusted EBITDA $23.4 $28.0 (16.4)% % Adj. EBITDA margin 24.1% 26.8% Operational metrics (Actual Amounts) Total admissions 6,081 6,628 (8.3)% Same-store total admissions growth (18.4)% Patient days 633,552 686,278 (7.7)% Discharged average length of stay 109 108 0.9% Average daily census 3,500 3,792 (7.7)% Revenue per day $153 $152 0.7% Cost per day $68 $65 4.6% Reconciliations to GAAP provided on pages 36 to 42

Enhabit Home Health & Hospice 34 Payor Sources - Consolidated Consolidated Q2 YTD FY As a % of Revenue 2022 2021 2022 2021 2021 Medicare 78.5% 82.1% 78.8% 82.4% 81.9% Medicare Advantage 13.8% 10.5% 13.2% 10.4% 10.6% Managed Care 6.7% 5.8% 6.8% 5.6% 5.9% Medicaid 1.0% 1.4% 1.2% 1.4% 1.4% Other 0.0% 0.2% - 0.2% 0.2% Total 100.0% 100.0% 100.0% 100.0% 100.0%

Enhabit Home Health & Hospice 35 Payor Sources - By Segment Home Health Q2 YTD FY As a % of Revenue 2022 2021 2022 2021 2021 Medicare 74.5% 78.5% 75.0% 78.9% 78.2% Medicare Advantage 16.8% 12.9% 16.0% 12.8% 13.1% Managed Care 7.5% 6.8% 7.7% 6.5% 6.9% Medicaid 1.2% 1.6% 1.3% 1.6% 1.6% Other 0.0% 0.2% 0.0% 0.2% 0.2% Total 100.0% 100.0% 100.0% 100.0% 100.0% Hospice Q2 YTD FY As a % of Revenue 2022 2021 2022 2021 2021 Medicare 96.7% 97.8% 96.8% 98.1% 97.9% Managed Care 2.9% 1.5% 2.6% 1.2% 1.5% Medicaid 0.4% 0.7% 0.6% 0.7% 0.6% Total 100.0% 100.0% 100.0% 100.0% 100.0%

Enhabit Home Health & Hospice 36 EPS Calculation: Q2 2022 Adjusted EPS – Q2 2022 ($ in millions, except per share amounts) As Reported Income Tax Adjustments Transaction Costs As Adjusted Adjusted EBITDA $40.3 - - $40.3 Gain on disposal or impairment of assets 0.4 - - 0.4 Stock compensation expense (1.2) - - (1.2) Transaction costs (4.1) - 4.1 - Depreciation and amortization (8.2) - - (8.2) Interest exp. and amortization of debt discounts & fees (0.1) - - (0.1) Stock compensation in overhead allocation (0.6) - - (0.6) Net income before income taxes 26.5 - 4.1 30.6 Income tax expense (6.4) - (1.0) (7.4) Net income attributable to Enhabit $20.1 - $3.1 $23.2 Diluted earnings per share $0.41 - $0.06 $0.47 Diluted shares 49.6 - - 49.6

Enhabit Home Health & Hospice 37 EPS Calculation: Q2 2021 Adjusted EPS – Q2 2021 ($ in millions, except per share amounts) As Reported Income Tax Adjustments Transaction Costs As Adjusted Adjusted EBITDA $57.8 - - $57.8 Gain on disposal or impairment of assets 0.4 - - 0.4 Stock compensation expense (1.2) - - (1.2) Transaction costs (4.0) - 4.0 - Depreciation and amortization (9.4) - - (9.4) Interest exp. and amortization of debt discounts & fees - - - - Stock compensation in overhead allocation (0.9) - - (0.9) Net income before income taxes 42.7 - 4.0 46.7 Income tax expense (10.4) (0.1) (1.0) (11.5) Net income attributable to Enhabit $32.3 $(0.1) $3.0 $35.2 Diluted earnings per share $0.65 $0.00 $0.06 $0.71 Diluted shares 49.6 - - 49.6

Enhabit Home Health & Hospice 38 EPS Calculation: YTD 2022 Adjusted EPS – YTD 2022 ($ in millions, except per share amounts) As Reported Transaction Costs As Adjusted Adjusted EBITDA $87.3 - $87.3 Gain on disposal or impairment of assets 0.5 - 0.5 Stock compensation expense (2.5) - (2.5) Transaction costs (6.1) 6.1 - Depreciation and amortization (16.7) - (16.7) Interest exp. and amortization of debt discounts & fees (0.1) - (0.1) Stock compensation in overhead allocation (1.1) - (1.1) Net income before income taxes 61.3 6.1 67.4 Income tax expense (15.1) (1.5) (16.6) Net income attributable to Enhabit $46.2 $4.6 $50.8 Diluted earnings per share $0.93 $0.09 $1.02 Diluted shares 49.6 - 49.6

Enhabit Home Health & Hospice 39 EPS Calculation: YTD 2021 Adjusted EPS – YTD 2021 ($ in millions, except per share amounts) As Reported Income Tax Adjustments Transaction Costs As Adjusted Adjusted EBITDA $105.0 - - $105.0 Gain on disposal or impairment of assets 0.5 - - 0.5 Stock compensation expense (1.8) - - (1.8) Transaction costs (4.7) - 4.7 - Depreciation and amortization (18.5) - - (18.5) Interest exp. and amortization of debt discounts & fees (0.1) - - (0.1) Stock compensation in overhead allocation (1.1) - - (1.1) Net income before income taxes 79.3 - 4.7 84.0 Income tax expense (19.1) (0.3) (1.2) (20.6) Net income attributable to Enhabit $60.2 ($0.3) $3.5 $63.4 Diluted earnings per share $1.21 ($0.01) $0.07 $1.28 Diluted shares 49.6 - - 49.6

Enhabit Home Health & Hospice 40 Reconciliation of Net Income to Adjusted EBITDA – Consolidated QTD YTD ($ in millions) 2022 2021 2022 2021 Net income $20.8 $32.8 $47.5 $61.1 Income tax expense 6.4 10.4 15.1 19.1 Interest expense and amortization of debt discounts and fees 0.1 - 0.1 0.1 Depreciation and amortization 8.2 9.4 16.7 18.5 Gain on disposal or impairment of assets (0.4) (0.4) (0.5) (0.5) Stock-based compensation 1.2 1.2 2.5 1.8 Stock-based compensation including overhead allocation 0.6 0.9 1.1 1.1 Net income attributable to noncontrolling interests (0.7) (0.5) (1.3) (0.9) Transaction costs 4.1 4.0 6.1 4.7 Adjusted EBITDA $40.3 $57.8 $87.3 $105.0

Enhabit Home Health & Hospice 41 Reconciliation of Cash Provided by Operations to Adjusted EBITDA QTD YTD ($ in millions) 2022 2021 2022 2021 Net cash provided by operating activities $33.6 $73.2 $75.0 $93.6 Interest expense and amortization of debt discounts and fees 0.1 - 0.1 0.1 Equity in net income of nonconsolidated affiliates - 0.2 - 0.4 Net income attributable to noncontrolling interests in continuing operations (0.7) (0.5) (1.3) (0.9) Distributions from nonconsolidated affiliates - (0.1) - (0.2) Current portion of income tax expense 7.6 10.1 16.5 18.2 Change in assets and liabilities (5.0) (31.6) (10.3) (13.6) Transaction costs 4.1 4.0 6.1 4.7 Stock-based compensation included in overhead allocation 0.6 0.9 1.1 1.1 Other - 1.6 0.1 1.6 Adjusted EBITDA $40.3 $57.8 $87.3 $105.0

Enhabit Home Health & Hospice 42 Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow QTD YTD ($ in millions) 2022 2021 2022 2021 Net cash provided by operating activities $33.6 $73.2 $75.0 $93.6 Cash expenditures for maintenance (0.3) (2.2) (2.6) (3.1) Distributions paid to non controlling interests of consolidated affairs (0.2) (1.0) (0.7) (1.3) Items non-indicative of ongoing operations performance: Stock-based compensation including overhead allocation 0.6 0.9 1.1 1.1 Transaction costs and related assumed liabilities 3.7 3.1 5.2 3.1 Adjusted free cash flow $37.4 $74.0 $78.0 $93.4

ehab.com

XML

Cover	Aug. 01, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 01, 2022
Entity Registrant Name	Enhabit, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-41406
Entity Tax Identification Number	47-2409192
Entity Address, Address Line One	6688 N. Central Expressway
Entity Address, Address Line Two	Suite 1300
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75206
City Area Code	214
Local Phone Number	239-6500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EHAB
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001803737