PLYMOUTH MEETING, PA – AdaptHealth Corp. (NASDAQ:AHCO), a provider of home healthcare services with a market capitalization of $1.23 billion and annual EBITDA of $669 million, announced an amendment to its executive compensation agreement on Monday. According to InvestingPro data, the company has demonstrated strong financial management with aggressive share buybacks. Shaw Rietkerk, AdaptHealth's Chief Business Officer, will see a significant reduction in his annual base salary starting January 1, 2025.
According to the 8-K filing with the Securities and Exchange Commission, Rietkerk's base salary will be adjusted from $500,000 to $125,000. This change comes as part of an amendment to the transition, separation, and release agreement that was originally dated August 21, 2024.
The amendment, filed on December 13, 2024, follows the company's original agreement with Rietkerk, which outlined the terms of his departure from the role of Chief Business Officer. The details of the amendment were included in the filing, with the reduction in salary being the most notable change.
AdaptHealth has stated that the full text of the amendment is attached to the filing, providing transparency for shareholders and the public. The company, which is incorporated in Delaware and has its executive offices in Plymouth Meeting, Pennsylvania, is recognized within the home health care services industry under the standard industrial classification code 8082.
Investors and market watchers will likely be observing how this adjustment will affect AdaptHealth's corporate governance and overall business strategy as it moves forward. Trading at $9.40, the stock appears undervalued according to InvestingPro's Fair Value analysis, with a notable free cash flow yield. The information provided in this article is based on a press release statement and InvestingPro research, which offers additional insights through its comprehensive Pro Research Report, available among 1,400+ US equity analyses.
In other recent news, AdaptHealth Corp. reported a slight increase in Q3 2024 net revenue, reaching $805.9 million despite challenges in its diabetes segment. Growth was noted in sleep and respiratory revenues, while diabetes revenue experienced a decline. The company's adjusted EBITDA was reported at $164.3 million, with a margin of 20.4%, and free cash flow surpassed targets.
Analysts from RBC Capital and Truist Securities adjusted their outlook on AdaptHealth, lowering their price targets due to uncertainty surrounding the recovery trajectory of the diabetes business segment. RBC Capital revised its price from $13.00 to $11.00, while Truist Securities adjusted from $13.00 to $12.00, both maintaining positive ratings.
AdaptHealth has secured a $950 million senior secured credit facility and raised its full-year guidance. However, the company adjusted its revenue midpoint for 2024 by reducing it by $45 million and EBITDA midpoint by $15 million, reflecting ongoing challenges in the diabetes segment.
In leadership news, Russell Schuster was appointed as Chief Commercial Officer at AdaptHealth, bringing over 25 years of experience in executive roles to the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.