Adapthealth Corp Announces Second Quarter 2021 Financial Results
The deal follows the company’s $425 million acquisition of Solara, a direct-to-patient provider of diabetes management supplier, in May. But there’s a national global wide shortage of components. Intel announced that the chip shortage is real, and it’s going to last for an extended period of time. We’re seeing obviously the cost synergies and contributing to our increased margins. But also, we’re seeing really the AeroCare organic growth engine that essentially consolidated with our AdaptHealth sales efforts, which are driving organic growth across both organizations. Obviously, the sales synergies, as you know, generally take a little bit longer than cost synergies, and we definitely feel like it’s starting to kick into gear somewhat six months into the integration and definitely should have an impact on our late ’21, ’22 numbers.
We’ve now included every dollar of acquired revenue in the quarter. Historically, the company had included only material acquisitions, and so not all dollars were included. Before we turn to questions, I’d like to thank our 9,068 employees across our 678 locations for their contributions to a successful second quarter. Also, we appreciated their continued commitment, passion, and excellence toward advancing our strategy of organic growth, improving operations, and accretive acquisitions. In addition, we completed three more acquisitions in the second quarter, one being the acquisition of Healthy Living Medical Supply based in Michigan.
Following the acquisition of PCS in January 2020, AdaptHealth services over 1.4 million patients annually in all 50 states through its network of 187 locations. AdaptHealth Corp. engages in the provision of home healthcare equipment, supplies and related services. The company was founded in 2012 and is headquartered in Plymouth Meeting, PA. Continuing with our strategic road map, our long-term goal as a leading home care provider is to continue evolving our service model to more efficiently help patients manage chronic illness in the comfort of their own homes. Several programs are underway focused on our sleep, COPD, and diabetes patients, including technology-enabled coaching and chronic disease management to drive a better disease outcome over time. For one example, we have enrolled several thousand patients in our COPD disease management program, which develops individualized plans of care and provides patient clinical data reporting to physicians.
My boss Is flexible about me needing time off for different functions and my coworkers and I all work together and we all get along on our team. EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from EBITDA, Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex 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.
The second thing we demonstrate is there’s a difference between pro forma — the formal definition of pro forma revenue versus acquisitions that AeroCare made from January 2020 until we acquired AeroCare. So as you all know, AeroCare was highly acquisitive, and so we’ve pulled those acquisitions out. We think it gives a somewhat distorted view of growth, if that’s counted in. We had $175 million outstanding on the revolver at the end of the quarter. We’re pleased to take this next step forward in simplifying our capital structure and refinancing expensive debt.
The announcement also included information about AdaptHealth’s recent purchase of New England Home Medical, a direct-to-patient diabetes supplier that has more than 3,900 patients using continuous glucose monitoring. The combined company will operate under the name AdaptHealth, and Luke McGee, CEO of AdaptHealth, and Steve Griggs, CEO of AeroCare, will jointly lead the company as co-CEOs. In addition, AdaptHealth will expand its Board of Directors at closing of the transaction to 11 directors, with Steve Griggs and shareholder designee Ted Lundberg of Peloton Equity to join the Board. Yes – Parachute Health is compliant with HIPAA guidelines, and completes a HIPAA compliance audit each year to ensure the safety of your patient data. The ability to source, supply and fit any necessary equipment at industry pricing and without unnecessary delay.