Enhabit Stock Price, News & Analysis

Enhabit (NYSE: EHAB), a leading home health and hospice provider, has released preliminary results for Q2 2024. Key highlights include:

• Adjusted EBITDA between $24.5 million and $25.0 million
• Bank debt reduced by $15 million, including a $10 million payment on the revolving credit facility
• 43% of non-Medicare visits now under payor innovation contracts at improved rates, up from 38% in Q1 2024
• Home health admissions increased 6.4% year-over-year, driven by non-Medicare admissions
• Hospice segment achieved monthly sequential growth in average daily census for the fifth consecutive month

The company reports continued business stabilization and positioning for profitable growth.

AREX Capital Management, owning 4.9% of Enhabit (NYSE: EHAB), announced that Institutional Shareholder Services Inc. (ISS) supports their call for boardroom change. ISS recommends Enhabit's stockholders elect three AREX nominees—Anna-Gene O'Neal, Mark W. Ohlendorf, and Dr. Gregory S. Sheff—at the 2024 Annual Meeting on July 25, 2024.

ISS cites Enhabit's lack of expertise in home health, hospice, and financial reporting. They highlight Enhabit's underperformance, with a 40% drop in adjusted EBITDA and significant TSR underperformance since the spin-off. AREX argues their nominees bring essential industry-specific expertise and operational oversight needed for Enhabit's turnaround.

Enhabit Home Health & Hospice (NYSE: EHAB) announced that Institutional Shareholder Services (ISS) has recommended stockholders vote in favor of a majority of Enhabit’s director nominees at the upcoming Annual Meeting on July 25, 2024. ISS recognizes the company’s promising performance in the last two quarters and its responsiveness to investor input, including adding new directors and running a public sales process. However, ISS suggests additional industry-relevant expertise might be beneficial.

Enhabit urges stockholders to support all nine of its nominees, highlighting their expertise and value in driving stockholder value. Disagreement exists over the exclusion of nominees Gregory Rush, Erin Hoeflinger, and Susan La Monica, whom Enhabit believes are important for their financial, payor industry, and human resources expertise, respectively. Stockholders are encouraged to vote using the YELLOW proxy card for the company's recommended nominees.

Enhabit (NYSE: EHAB), a leading national provider in home health and hospice care, announced its plans to report second-quarter results for the period ending June 30, 2024, on August 6, 2024. The company will also host a webcast and conference call on August 7, 2024, at 10 a.m. EDT. Stakeholders interested in participating should join the call 15 minutes early. Access details include a toll-free number (888-660-6150), an international line (929-203-0843), and a Conference ID (5248158). The webcast will be available on the Enhabit investor website, with online replay options provided. Enhabit operates 255 home health locations and 112 hospice locations across 34 states, leveraging advanced technology and compassionate care.

Enhabit, a major provider of home health and hospice services, has communicated with its stockholders ahead of the 2024 Annual Meeting, urging them to support its current Board of Directors. The company contends that AREX Capital Management's attempt to replace most of Enhabit's independent directors with less experienced candidates could destabilize the business. Enhabit highlights the extensive and relevant industry experience of its own board nominees, asserting that none of AREX's candidates possess the necessary expertise. The letter also refutes AREX's claims about Enhabit's business performance and cost management, emphasizing the company's recent achievements in stabilizing operations and positioning for growth. The Board critiques AREX's proposed 'Transformation Committee,' arguing it to be composed of inadequately qualified individuals. Enhabit concludes by urging stockholders to vote for its nominated directors using the enclosed YELLOW proxy card.

AREX Capital Management, owner of 4.9% of Enhabit’s shares, has expressed disappointment in Enhabit's recent investor presentation, accusing the company of recycling excuses and making unfulfilled promises. AREX believes Enhabit's strategies are failing, and emphasizes the company's lack of industry-specific expertise on its board. AREX urges shareholders to support its seven nominees for the board at the 2024 Annual Meeting, advocating for their plan to improve Enhabit's operational performance and create shareholder value.

Enhabit, a top home health and hospice provider, has shared an investor presentation ahead of its 2024 Annual Meeting on July 25. The company has shown improved performance, with a 5.3% increase in Home Health admissions and 5.6% growth in Hospice admissions. Non-Medicare admissions rose 25%, and payor innovation contracts now cover 38% of non-Medicare visits. Enhabit has added 151 full-time nurses. The Board, refreshed since the spin-off from Encompass Health, emphasizes its strategic initiatives and opposes AREX Capital's attempt to take control, citing it would disrupt business stability. Stockholders are urged to vote for Enhabit's nominees via the YELLOW proxy card.

AREX Capital Management, LP, which owns 4.9% of Enhabit’s outstanding common shares, has released a presentation outlining a comprehensive plan to improve Enhabit’s operational performance.

The plan includes recapturing home health market share, revamping hospice sales, and reducing corporate overhead, with an anticipated 50% increase in EBITDA. AREX is urging stockholders to vote for its seven nominees using the WHITE Proxy Card at the 2024 Annual Meeting.

AREX believes their nominees possess the necessary experience and skills to oversee management and drive significant value creation for Enhabit’s stockholders.

Further details are available at www.RehabEHAB.com.

Enhabit (NYSE: EHAB), a key player in home health and hospice care, has outlined steps to stabilize its business and drive profitable growth following its separation from Encompass Health The company's letter to shareholders addresses misstatements by AREX Capital Management, which seeks to replace the Board of Directors. Enhabit emphasizes its progress in stabilizing the business, improving Medicare Advantage contract rates, and enhancing its hospice business. The letter urges shareholders to vote for Enhabit's Board nominees on the YELLOW proxy card at the upcoming annual meeting on July 25, 2024.