AdaptHealth Corp. (NASDAQ:AHCO) Q3 2023 Earnings Conference Call November 7, 2023 8:30 AM ET
Company Participants
Richard Barasch - Interim Chief Executive Officer
Jason Clemens - Chief Financial Officer
Conference Call Participants
Matthew Blackman - Stifel
Pito Chickering - Deutsche Bank
Richard Close - Canaccord Genuity
Joanna Gajuk - Bank of America
Eric Coldwell - Baird
Operator
Good day, everyone, and welcome to today's AdaptHealth Third Quarter 2023 Earnings Release Call. At this time, all participants are in a listen-only mode. Later you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions].
It is now my pleasure to turn today's call over to Richard Barasch, Chairman and Interim CEO. Please go ahead.
Richard Barasch
Good morning, everyone. Thank you for joining us today to discuss AdaptHealth's third quarter performance. Before we begin, I'd like to remind everyone that statements included in this conference call and in the press release issued today may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements include, but are not limited to comments regarding financial results for 2023 and beyond. Actual results could differ materially from those projected in forward-looking statements because of a number of risk factors and uncertainties, which are discussed at length in the company's annual and quarterly SEC filings. AdaptHealth Corp. should have no obligation to update the information provided on this call to reflect such subsequent events.
Additionally, on this call, the company will reference certain financial measures, such as EBITDA, adjusted EBITDA, and free cash flow, all of which are non-GAAP financial measures. This morning's call is being recorded, and a replay of the call will be available later today.
We are pleased with the results of the third quarter. Powered by our Sleep business, we generated 6.3% growth over last year, leading to record revenues for the quarter. Equally important, we generated cash flow from operations of $98.8 million and free cash flow of $21.7 million. Adjusted EBITDA fell short of our expectations largely as a result of unplanned delays in the implementation of the Humana contract.
Jason and I will get into more detail on why this happened, but these results do not reduce our optimism that this will be a profitable contract for AdaptHealth nor does it diminish our enthusiasm for more enterprise sales of this time. Other than this contract, we would have met our expectations for revenue, adjusted EBITDA, margins and cash flow in the quarter.