Accendra Health (ACH) Q4 2021 earnings summary

Executive summary

• Record-setting 2021, with net revenue of $9.785B and continuing-operations diluted EPS of $2.94; growth reflected market-share gains, recovering elective procedures and higher PPE sales.

• Expanded manufacturing capacity and technology investment supported customer supply amid global disruptions; operating performance also benefited from productivity and improved product mix.

Financial highlights

• Net revenue rose to $9.785B from $8.480B in 2020; operating income was $368.5M versus $204.1M, and net income was $221.6M versus $29.9M.

• Continuing-operations diluted EPS was $2.94, up from $1.39 in 2020; gross margin increased to $1.513B from $1.281B.

• Interest expense fell to $48.1M from $83.4M; debt-extinguishment loss rose to $40.4M, including $15.3M of financing-cost write-offs and $25.1M reclassified from accumulated OCI.

• Adjusted for neither acquisition/exit charges nor debt-extinguishment losses, reported results included $34.1M of acquisition-related and exit/realignment charges and $40.4M of debt-extinguishment loss.

Outlook and guidance

• Apria acquisition was expected to close in H1 2022, subject to customary closing conditions, regulatory approvals and Apria stockholder approval; total transaction value was stated at ~$1.6B.

• Expected continued customer demand for PPE reflected new protocols, stockpiles and additional healthcare, non-healthcare and international channels; future volumes and productivity were uncertain.

• Available financing sources were expected to fund working capital, capex, strategic growth, debt and lease payments, dividends and other cash needs in the foreseeable future.