Adapthealth Buys Two Medical Equipment Distributors
So again, that full bridge is included on Page 7 of our supplement. In terms of — I think when you say traditional same store, you might be alluding — or I’m sorry, when you say traditional organic growth, you might be alluding to same store. I’m going to pass that to — yes, I’m going to pass it to Steve to reiterate why that’s not a metric that we use to run our business. So that’s the $617 million that we reported this quarter against the prior year of $232 million. The next step that we’re demonstrating is pro forma net revenue.
Overall, we are very pleased with the amount of cash our business is generating and remain in range of our previously discussed expectation of converting approximately two-thirds of adjusted EBITDA to cash flow from operations. As announced this morning, we are increasing our 2021 full-year guidance for net revenue, adjusted EBITDA, and adjusted EBITDA less patient equipment capex. Additionally, this program simplifies workflow and drives efficiencies for our several hundred clinicians who serve patients in their homes.
Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Insufficient data to determine if AHCO’s debt to equity ratio has reduced over the past 5 years. Specializing in supplying patients and facilities with PAP Devices, Oxygen, Vents, Wheel Chairs, Beds and much more. We’re confident that inventory can help us out in the third quarter for sure and then some of the fourth quarter.
As a reminder, our guidance does not include any contribution from acquisitions that have not yet closed. We continue our progress transforming our back-office operations, including the installation of new technology and capabilities. We are guiding to net revenue of $2.38 billion to $2.48 billion, adjusted EBITDA of $555 million to $580 million, and adjusted EBITDA less patient equipment capex of $360 million to $375 million.
I guess you guys mentioned that in diabetes, you feel like you’re growing in line with market. Because if you use the $482 million that we reported, that’s missing a month of AeroCare, and it’s going to throw your numbers a bit. So in using the $564 million, if you just add that to our — to the top of our guide, you’re going to be in that 23% — 22%, 23% ballpark for Q1 for the total company and the amount of revenue that we produced as part of the annual revenue. Again, as we said historically, that’s going to bump up about 1 point in Q2, about another point, maybe 1.5 points in Q3, and then the balance of that is going to be in Q4, you should be at a 26% to 27% of the annual revenue will be delivered in Q4. Again, as discussed in diabetes, that is a much more pronounced slope within that book of business. And then nonpatient equipment capex is around 1 point or so.
Some equipment title transfers to patients’ ownership after a prescribed number of fixed monthly payments. Equipment that does not transfer wears out or often times is not recovered after a patient’s use of the equipment terminates. The Company uses this metric 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. In addition, the Company’s debt agreements contain covenants that use a variation of Adjusted EBITDA less Patient Equipment Capex for purposes of determining debt covenant compliance.