AdaptHealth Corp. (NASDAQ: AHCO) Co-CEO Luke McGee: ”22 Acquistions in 2020 – Fueling Growth”

 

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AdaptHealth Corp. (NASDAQ:AHCO) Q4 2020 Earnings Highlights

Co-CEO Luke McGee:

“…Our patient’s home health needs have only grown throughout the duration of 2020. And now that AdaptHealth and AeroCare have combined, we have amplified our ability to empower our patients to live their best lives out of the hospital and in their home. To put that in context, on a combined basis, we provided home medical equipment to more than 43,000 patients with a COVID diagnosis.

On top of that, we provided hundreds of ventilators, thousands of oxygen concentrators and hundreds of thousands of pulse oximeters and thermometers to our hospital partners. We, along with our HME peers, were a critical part of the health care system in responding to COVID. Not only did Adapt step up to meet the needs of our patients, payers and referrals throughout 2020, but we did so while delivering record financial results. As Jason will detail later, our full year results beat the high end of our updated guidance that we published in November 2020 across revenue, adjusted EBITDA and adjusted EBITDA less CapEx.

We continue to grow our business with accretive acquisitions through the year, including the transformation of acquisition of AeroCare that closed on February 1, 2021. In total, we acquired 22 companies in 2020. As we’ve demonstrated over the past several years, our team has the ability to integrate acquisitions into a cohesive and comprehensive platform to deliver health care in the home. The acquisition of AeroCare will only enhance and accelerate our goals here. Our management teams have shared a common view of success for a long time, a business that is powered by technology, connectivity and ease of doing business with our referring providers, efficient logistics and turnaround times and patient satisfaction with our products and services.

We continue to invest in these important areas and the team we’ll talk about progress in our prepared remarks. Following AeroCare closing, we remain focused on strengthening our geographic footprint, product mix and patient access through strategic and accretive acquisitions. In late February, we closed on the acquisition of Allina Health Home Oxygen & Medical Equipment in Minneapolis. And earlier this week, we closed on two other acquisitions, further complementing our existing HME businesses in the Midwest and Southern California.

We continue to build out our rapidly growing diabetes supply business to complement the acquisition of Solara last year. We are pleased to announce the acquisition of Louisiana-based diabetes management and supply, a leading supplier of CGM and diabetes management supplies throughout Louisiana and the Southeastern United States. We’ve also added an additional scale with a small acquisition in Upstate New York at the end of 2020.

To support our acquisitions with appropriate financing, we’ve been active in the capital markets. We are pleased with the recent success of these activities, including our $500 million unsecured note issuance, our $700 million refinancing of our senior secured credit facilities and our successful $279 million equity raised in January 2021. In total, we expect these acquisitions to deliver $130 million to $150 million of incremental revenue in 2021, and we are increasing our guidance in quarterly. Jason will talk about the components of our guidance later…”

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