FALSE000172525500017252552025-02-252025-02-25

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

February 25, 2025
Date of Report (date of earliest event reported)

AdaptHealth Corp.
(Exact name of registrant as specified in its charter)

Delaware
001-38399
82-3677704
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification Number)
220 West Germantown Pike, Suite 250, Plymouth Meeting, PA 19462
(Address of principal executive offices and zip code)
(610) 424-4515
(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 communications 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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.0001 per shareAHCOThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐



Item 2.02 - Results of Operations and Financial Condition.

The following information is furnished pursuant to Regulation FD.

On February 25, 2025, AdaptHealth Corp. (the "Company") issued a press release (the “Press Release”) announcing financial results for the fourth quarter and fiscal year ended December 31, 2024. A copy of the Press Release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.

Item 9.01 - Financial Statements and Exhibits
(d)    Exhibits

Exhibit No.Description
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

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

Dated: February 25, 2025



AdaptHealth Corp.
By:
/s/ Jason Clemens
Name:
Jason Clemens
Title:
Chief Financial Officer


Exhibit 99.1
ahco_img001.jpg
FOR IMMEDIATE RELEASE
 

ADAPTHEALTH CORP. ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2024 RESULTS
AND PROVIDES 2025 OUTLOOK
 
PLYMOUTH MEETING, Pa. – February 25, 2025 - AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the fourth quarter and fiscal year ended December 31, 2024.
 
Full Year 2024 Results and Highlights
All comparisons are to the year ended December 31, 2023.
•Net revenue was $3,261.0 million compared to $3,200.2 million, an increase of 1.9%.
•Net income attributable to AdaptHealth Corp. was $90.4 million compared to a net loss attributable to AdaptHealth Corp. of $678.9 million.
•Adjusted EBITDA was $688.7 million compared to $670.8 million, an increase of 2.7%.
•Cash flow from operations was $541.8 million, an increase from $480.7 million, and free cash flow was $235.8 million, an increase from $143.2 million.
•In the fourth quarter, the Company reached a definitive agreement to sell certain incontinence assets in its Wellness at Home segment to a third party.
Fourth Quarter 2024 Results and Highlights
All comparisons are to the quarter ended December 31, 2023.
•Net revenue was $856.6 million compared to $858.2 million, a decrease of 0.2%.
•Net income attributable to AdaptHealth Corp. was $50.3 million compared to a net loss attributable to AdaptHealth Corp. of $254.5 million.
•Adjusted EBITDA was $200.6 million compared to $204.6 million, a decrease of 2.0%.
•Cash flow from operations was $150.4 million, a decrease from $155.3 million, and free cash flow was $73.1 million, an increase from $66.6 million.
Guidance for Fiscal Year 2025
The Company is providing its financial guidance for fiscal year 2025, as follows:
•Net revenue of $3.22 billion to $3.36 billion;
•Adjusted EBITDA of $670 million to $710 million;
•Free cash flow of $180 million to $220 million
Management Commentary

“Over the course of the second half of 2024, we continued to make progress on our five areas of focus, which include our One Adapt initiative, accelerating the application of AI and automation, increasing our clinical relevance, delivering organic growth, and strengthening our balance sheet,” said Suzanne Foster, Chief Executive Officer of AdaptHealth. “The progress we have made helped drive our solid fourth quarter results and, more importantly, is strengthening our foundation for long-term success and growth.”

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Conference Call
 
Management will host a teleconference today, Tuesday, February 25, 2025, at 8:30 am ET to discuss the results and business activities with analysts and investors.

Interested parties may participate in the call by dialing:
 
•(800) 245-3047 (Domestic) or
•(203) 518-9765 (International)

When prompted, reference Conference ID: AHCO4Q24

To access the Webcast please go to the Company’s Investor Relations page at https://adapthealth.com/investorrelations/
 
Following the live call, a replay will be available for six months on the Company’s website, www.adapthealth.com, under “Investor Relations.”
 
About AdaptHealth Corp.
 
AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including CPAP and BiLevel services) to individuals for the treatment of obstructive sleep apnea. The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Diabetes Health segment provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes. The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment.

The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 660 locations in 47 states.

 
Forward-Looking Statements
 
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics and projections of market opportunity and expectations and the Company’s acquisition pipeline. These statements are based on various assumptions and on the current expectations of AdaptHealth management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are subject to a number of risks and uncertainties, including the outcome of judicial and administrative proceedings to which the Company may become a party or governmental investigations to which the
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Company may become subject that could interrupt or limit the Company’s operations, result in adverse judgments, settlements or fines and create negative publicity; changes in the Company’s customers’ preferences, prospects and the competitive conditions prevailing in the healthcare sector. A further description of such risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently knows or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
 
Use of Non-GAAP Financial Information and Financial Guidance

The Company uses EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and free cash flow, which are financial measures that are not in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, to analyze its financial results and believes that they are useful to investors, as a supplement to U.S. GAAP measures. In addition, the Company’s ability to incur additional indebtedness and make investments under its existing credit agreement is governed, in part, by its ability to satisfy tests based on a variation of Adjusted EBITDA.
 
The Company believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating the Company’s financial performance. The Company uses Adjusted EBITDA as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities, where it is most often used for purposes of contingent consideration arrangements.
 
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity.

The Company uses free cash flow, which is a financial measure that is not in accordance with U.S. GAAP, in its operational and financial decision-making and believes free cash flow is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate the Company's competitors and to measure the ability of companies to service their debt. The Company's presentation of free cash flow should not be construed as a measure of liquidity or discretionary cash available to the Company to fund its cash needs, including investing in the growth of its business and meeting its obligations.

Free cash flow should not be considered as a measure of financial performance under U.S. GAAP. Accordingly, this key business metric has limitations as an analytical tool. It should not be considered as an alternative to any performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as a measure of AdaptHealth’s liquidity.

This release contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company’s non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods. As a result, reconciliation of the non-GAAP financial guidance to the most directly comparable GAAP measure is not available without unreasonable effort. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of the specified items may have a significant and unpredictable impact on the Company’s future GAAP results.

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In addition, the Company’s financial guidance in this release excludes the impact of any potential additional future strategic acquisitions and any items that have not yet been identified and quantified. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.
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ADAPTHEALTH CORP.
Condensed Consolidated Balance Sheets (Unaudited)
 
(in thousands) December 31, 2024December 31, 2023
Assets 
Current assets: 
Cash $109,747 $77,132 
Accounts receivable 408,019 388,910 
Inventory 139,842 113,642 
Prepaid and other current assets 45,432 69,338 
Assets held for sale52,748 — 
Total current assets 755,788 649,022 
Equipment and other fixed assets, net 474,556 495,101 
Operating lease right-of-use assets 105,999 110,465 
Finance lease right-of-use assets37,801 31,962 
Goodwill 2,675,166 2,724,958 
Identifiable intangible assets, net 105,548 130,160 
Deferred tax assets 314,505 345,854 
Other assets 17,584 21,128 
Total Assets $4,486,947 $4,508,650 
Liabilities and Stockholders' Equity 
Current liabilities: 
Accounts payable and accrued expenses $437,985 $391,994 
Current portion of long-term debt 16,250 53,368 
Current portion of operating lease obligations 29,945 29,270 
Current portion of finance lease obligations 14,315 9,122 
Contract liabilities 34,944 38,570 
Warrant liability— 4,021 
Other liabilities 26,505 10,654 
Liabilities held for sale7,043 — 
Total current liabilities 566,987 536,999 
Long-term debt, less current portion 1,964,921 2,094,614 
Operating lease obligations, less current portion 80,275 85,529 
Finance lease obligations, less current portion24,630 22,746 
Other long-term liabilities 272,016 302,093 
Total Liabilities 2,908,829 3,041,981 
Total Stockholders' Equity 1,578,118 1,466,669 
Total Liabilities and Stockholders' Equity $4,486,947 $4,508,650 
 
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ADAPTHEALTH CORP.
  Consolidated Statements of Operations (Unaudited)
 
 Three Months EndedTwelve months ended
(in thousands, except per share data)December 31,December 31,
 2024202320242023
Net revenue$856,645  $858,234  $3,260,975 $3,200,177 
Costs and expenses:  
Cost of net revenue664,435  656,905  2,579,882 2,576,110 
General and administrative expenses83,521  88,721  359,238 334,594 
Depreciation and amortization, excluding patient equipment depreciation11,022  11,491  45,045 57,087 
Goodwill impairment— 318,921 13,078 830,787 
Total costs and expenses758,978  1,076,038  2,997,243 3,798,578 
Operating income (loss)97,667  (217,804) 263,732 (598,401)
Interest expense, net29,729  33,486  126,668 130,299 
Loss on extinguishment of debt—  —  2,273 — 
Change in fair value of warrant liability(2,221)(2,596)(4,021)(34,482)
Other (income) loss, net(552) 22,992  2,793 29,566 
Income (loss) before income taxes70,711  (271,686) 136,019 (723,784)
Income tax expense (benefit)19,308  (18,111) 41,239 (49,004)
Net income (loss)51,403  (253,575) 94,780 (674,780)
Income attributable to noncontrolling interest1,141  928  4,358 4,115 
Net income (loss) attributable to AdaptHealth Corp.$50,262  $(254,503) $90,422 $(678,895)
  
Weighted average common shares outstanding - basic134,575 132,990  133,756 134,156 
Weighted average common shares outstanding - diluted136,534 132,990  135,531 134,418 
  
Basic net income (loss) per share$0.34  $(1.91) $0.62 $(5.06)
Diluted net income (loss) per share$0.34  $(1.91) $0.61 $(5.31)

 
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ADAPTHEALTH CORP.
 Consolidated Statements of Cash Flows (Unaudited)
(in thousands)Twelve Months Ended December 31,
20242023
Cash flows from operating activities:
Net income (loss)$94,780 $(674,780)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including patient equipment depreciation365,334 382,783 
Goodwill impairment13,078 830,787 
Equity-based compensation14,880 22,468 
Change in fair value of warrant liability(4,021)(34,482)
Reduction in the carrying amount of operating lease right-of-use assets32,848 31,873 
Reduction in the carrying amount of finance lease right-of-use assets11,100 5,938 
Deferred income tax expense (benefit)32,049 (62,595)
Change in fair value of interest rate swaps, net of reclassification adjustment(367)(1,801)
Amortization of deferred financing costs5,666 5,234 
Loss on extinguishment of debt2,273 — 
Payment of contingent consideration from an acquisition(1,850)— 
Other2,128 350 
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable(26,217)(28,862)
Inventory(28,065)15,531 
Prepaid and other assets27,325 (20,305)
Operating lease obligations(32,934)(32,428)
Operating liabilities33,832 40,955 
Net cash provided by operating activities541,839 480,666 
Cash flows from investing activities:
Purchases of equipment and other fixed assets(306,055)(337,463)
Payments for business acquisitions, net of cash acquired(9,536)(19,687)
Proceeds from the sale of assets5,316 — 
Payments for cost method investments— (128)
Net cash used in investing activities(310,275)(357,278)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt and lines of credit253,477 50,000 
Repayments on long-term debt and lines of credit(423,477)(95,000)
Repayments of finance lease obligations(9,865)(6,769)
Payments for shares purchased under share repurchase program— (29,275)
Payments for tax withholdings from restricted stock vestings and stock option exercises(2,066)(5,843)
Payments of contingent consideration and deferred purchase price from acquisitions(5,298)(2,535)
Payments relating to the Tax Receivable Agreement(1,432)(3,224)
Payments of debt financing costs(6,429)— 
Distributions to noncontrolling interests(5,600)(2,500)
Proceeds from the exercise of stock options742 587 
Proceeds received in connection with employee stock purchase plan999 2,031 
Net cash used in financing activities(198,949)(92,528)
Net increase in cash32,615 30,860 
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ADAPTHEALTH CORP.
Cash at beginning of period77,132 46,272 
Cash at end of period$109,747 $77,132 
Non-GAAP Financial Measures
 
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
This press release presents AdaptHealth’s EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the three and twelve months ended December 31, 2024 and 2023.
AdaptHealth defines EBITDA as net income (loss) attributable to AdaptHealth Corp., plus net income (loss) attributable to noncontrolling interests, interest expense, net, income tax expense (benefit), and depreciation and amortization, including patient equipment depreciation.
AdaptHealth defines Adjusted EBITDA as EBITDA (as defined above), plus equity-based compensation expense, change in fair value of the warrant liability, goodwill impairment, loss on extinguishment of debt, litigation settlement expense, and certain other non-recurring items of expense or income.

AdaptHealth defines Adjusted EBITDA Margin as Adjusted EBITDA (as defined above) as a percentage of net revenue.

The following unaudited table presents the reconciliation of net income (loss) attributable to AdaptHealth Corp., to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the three months December 31, 2024 and 2023:
 
Three Months Ended December 31,
20242023
(Unaudited)
(in thousands, except percentages)DollarsRevenue PercentageDollarsRevenue Percentage
Net income (loss) attributable to AdaptHealth Corp.$50,262 5.9%$(254,503)(29.7)%
Income attributable to noncontrolling interest1,141 0.1%928 0.1%
Interest expense, net29,729 3.5%33,486 3.9%
Income tax expense (benefit)19,308 2.3%(18,111)(2.1)%
Depreciation and amortization, including patient equipment depreciation90,537 10.6%92,364 10.8%
EBITDA190,977 22.4%(145,836)(17.0)%
Equity-based compensation expense (a)4,266 0.5%5,184 0.6%
Change in fair value of warrant liability (b)(2,221)(0.3)%(2,596)(0.3)%
Goodwill impairment (c)— —%318,921 37.2%
Litigation settlement expense (d)— —%25,140 2.9%
Other non-recurring expenses, net (e)7,578 0.8%3,806 0.4%
Adjusted EBITDA$200,600 23.4%$204,619 23.8%
Adjusted EBITDA Margin23.4%23.8%
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(a)Represents equity-based compensation expense for awards granted to employees and non-employee directors.
(b)Represents non-cash gains for the changes in the estimated fair value of the warrant liability. The warrants expired on November 8, 2024.
(c)The 2023 period includes non-cash goodwill impairment charges as a result of the fair value of the Company’s reporting unit at that time being less than it's carrying value.
(d)
The 2023 period includes a charge relating to a previously disclosed securities class action lawsuit, net of contributions from the Company’s insurers.
(e)
The 2024 period consists of $4.2 million of consulting expenses associated with systems implementation activities, $1.6 million of consulting expenses associated with asset dispositions, $1.0 million of expenses associated with litigation, $0.5 million of severance charges, and $0.3 million of other non-recurring expenses. The 2023 period consists of $1.7 million of consulting expenses associated with systems implementation activities, $1.4 million of expenses associated with litigation, $0.8 million of severance charges, $0.6 million of lease termination costs associated with a cost management program, $0.3 million of transaction costs, and $1.5 million of other non-recurring expenses, offset by income of $2.5 million related to changes in AdaptHealth's estimated liability related to its Tax Receivable Agreement.
  

The following unaudited table presents the reconciliation of net income (loss) attributable to AdaptHealth Corp., to EBITDA and Adjusted EBITDA, and the reconciliation of net income (loss) attributable to AdaptHealth Corp. as a percentage of net revenue to Adjusted EBITDA Margin, for the twelve months ended December 31, 2024 and 2023:

Twelve Months Ended December 31,
20242023
(Unaudited)
(in thousands, except percentages)DollarsRevenue PercentageDollarsRevenue Percentage
Net income (loss) attributable to AdaptHealth Corp.$90,422 2.8%$(678,895)(21.2)%
Income attributable to noncontrolling interest4,358 0.1%4,115 0.1%
Interest expense, net126,668 3.9%130,299 4.1%
Income tax expense (benefit)41,239 1.3%(49,004)(1.5)%
Depreciation and amortization, including patient equipment depreciation365,334 11.1%382,783 12.0%
EBITDA628,021 19.2%(210,702)(6.5)%
Equity-based compensation expense (a)14,880 0.5%22,468 0.7%
Change in fair value of warrant liability (b)(4,021)(0.1)%(34,482)(1.1)%
Goodwill impairment (c)13,078 0.4%830,787 26.0%
Loss on extinguishment of debt (d)2,273 0.1%— —%
Litigation settlement expense (e)3,338 0.1%25,140 0.8%
Other non-recurring expenses, net (f)31,088 0.9%37,584 1.1%
Adjusted EBITDA$688,657 21.1%$670,795 21.0%
Adjusted EBITDA Margin21.1%21.0%
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(a)Represents equity-based compensation expense for awards granted to employees and non-employee directors.
(b)Represents non-cash gains for the changes in the estimated fair value of the warrant liability. The warrants expired on November 8, 2024.
(c)The 2024 period includes non-cash goodwill impairment charges relating to the disposition of certain immaterial custom rehab technology assets. The 2023 period includes non-cash goodwill impairment charges as a result of the fair value of the Company’s reporting unit at that time being less than it's carrying value.
(d)Represents lender fees and the write-off of unamortized deferred financing costs in connection with the refinancing of the Company's credit agreement.
(e)
The 2024 period includes a $2.4 million charge for the change in fair value of the shares of Common Stock of the Company that were issued in July 2024 following final court approval of a previously disclosed securities class action lawsuit, as well as an expense of $0.9 million to settle a shareholder derivative complaint. The 2023 period includes a charge relating to a previously disclosed securities class action lawsuit, net of contributions from the Company’s insurers.
(f)
The 2024 period consists of $13.9 million of consulting expenses associated with systems implementation activities, $4.5 million of consulting expenses associated with asset dispositions, $4.2 million of expenses associated with litigation, $3.9 million of severance charges (primarily related to the separation of the Company's former President), $2.7 million write-down of assets, and $1.9 million of other non-recurring expenses. The 2023 period consists of $13.9 million of expenses associated with litigation, $7.1 million of severance charges (of which $2.9 million relates to the separation of the Company's former CEO), $5.6 million of consulting expenses associated with systems implementation activities, $5.2 million of consulting expenses associated with cost savings initiatives, $4.8 million of lease termination costs associated with a cost management program, $1.0 million of transaction costs and expenses related to integration efforts related to acquisitions, $0.9 million of net impairments of operating lease right-of-use assets as a result of vacating the leased facilities, and $1.6 million of other non-recurring expenses, offset by income of $2.5 million related to changes in AdaptHealth's estimated liability related to its Tax Receivable Agreement.

Free Cash Flow
This press release presents AdaptHealth’s free cash flow for the three and twelve months ended December 31, 2024 and 2023.

AdaptHealth defines free cash flow as net cash provided by operating activities less cash paid for purchases of equipment and other fixed assets.
 
The following unaudited table reconciles net cash provided by operating activities to the free cash flow measure for the three and twelve months ended December 31, 2024 and 2023:

Three Months EndedTwelve Months Ended
(in thousands)December 31,December 31,
2024202320242023
(Unaudited)
Net cash provided by operating activities$150,415 $155,266 $541,839 $480,666 
Purchases of equipment and other fixed assets(77,336)(88,647)(306,055)(337,463)
Free cash flow$73,079 $66,619 $235,784 $143,203 


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Contacts
 
AdaptHealth Corp.
Jason Clemens, CFA
Chief Financial Officer

Luke Montgomery
Senior Vice President, Investor Relations
IR@adapthealth.com

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v3.25.0.1
Cover
Feb. 25, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 25, 2025
Entity Registrant Name AdaptHealth Corp.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38399
Entity Tax Identification Number 82-3677704
Entity Address, Address Line One 220 West Germantown Pike
Entity Address, Address Line Two Suite 250
Entity Address, City or Town Plymouth Meeting
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19462
City Area Code 610
Local Phone Number 424-4515
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 $0.0001 per share
Trading Symbol AHCO
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001725255
Amendment Flag false
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