Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): May 8, 2024

Enhabit, Inc.

(Exact name of registrant as specified in its charter)


Delaware	001-41406	47-2409192
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

6688 N. Central Expressway, Suite 1300, Dallas, Texas 75206

(Address of principal executive offices, including zip code)

(214) 239-6500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	EHAB	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.*

On May 8, 2024, Enhabit, Inc. (the “Company”) issued a press release reporting the financial results of the Company for the quarter ended March 31, 2024 (the “Earnings Press Release”). A copy of the Earnings Press Release is attached to this report as Exhibit 99.1 and incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.*

Earnings Supplemental Information

A copy of the supplemental information which will be discussed during the Company’s earnings call at 10:00 a.m. Eastern Time on Thursday, May 9, 2024, is attached to this report as Exhibit 99.2 and incorporated herein by reference.

Strategic Alternatives Process

On May 8, 2024, the Company issued a press release announcing the conclusion of its review of strategic alternatives, first announced in August 2023 (the “Strategic Alternatives Press Release”). The Strategic Alternatives Press Release is attached to this report as Exhibit 99.3 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number						Description
99.1						Earnings Press Release of Enhabit, Inc., dated May 8, 2024.*
99.2						Supplemental information provided in connection with the f irst quarter 202 4 earnings call of Enhabit, Inc.*
99.3						Strategic Alternatives Press Release of Enhabit, Inc., dated May 8, 2024.*
104						Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document

* The information in Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, unless specifically identified as being incorporated therein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


ENHABIT, INC.
By:	/s/ Dylan C. Black
	Name:	Dylan C. Black
	Title:	General Counsel

Dated: May 8, 2024

Exhibit 99.1

Enhabit Reports First Quarter 2024 Financial Results

Company to host a conference call tomorrow, May 9, 2024, at 10 a.m. EDT

DALLAS, TX – May 8, 2024 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the first quarter ended March 31, 2024.

“Our momentum exiting 2023 and through the first quarter of 2024 instills confidence and excitement in our strategy and team,” said Enhabit’s President and Chief Executive Officer Barb Jacobsmeyer. “Our strong start to 2024 is a result of our team’s continued focus on our operational strategies. Additional frontline clinicians, more and better home health payor contracts and controlling general and administrative expenses were the key drivers of our performance in the first quarter and resulted in sustained consolidated Adjusted EBITDA of $25.3 million in both the first quarter of 2024 and 2023. We are confident we are taking the right steps to drive future growth.”

QUARTERLY PERFORMANCE - CONSOLIDATED

•Net service revenue of $262.4 million

•Net income attributable to Enhabit, Inc. of $0.2 million

•Adjusted EBITDA of $25.3 million

•Earnings per share of $0.01

•Adjusted earnings per share of $0.07

RECENT COMPANY HIGHLIGHTS

•Strong growth in home health Medicare Advantage admissions with non-Medicare admissions up 25.2%, driving total admission growth of 5.3% year over year

◦38% of non-Medicare visits are now in payor innovation contracts at improved rates

•Continued recruiting success adding 151 net new full-time nursing hires in the first quarter

•30-day hospitalization readmission rate in home health is 20.5% better than the national average

•5.6% sequential growth in hospice admissions

•53.2% better than the national average for hospice patient visits in last days of life

•General and administrative expense declined year over year

•Opened two hospice de novo locations in Texas in March

FINANCIAL RESULTS

Consolidated


($ in millions, except per share data)	Q1								'24 vs. '23
	2024				2023
Home health net service revenue	$	213.2			$	215.8			(1.2)%
Hospice net service revenue	49.2				49.3				(0.2)%
Total net service revenue	$	262.4			$	265.1			(1.0)%

	% of revenue				% of revenue
Cost of service	51.1%		$	134.2	50.0%		$	132.6	1.2%
Gross margin	48.9%		128.2		50.0%		132.5		(3.2)%
General and administrative expenses	38.9%		102.2		40.2%		106.7		(4.2)%
Total operating expenses	90.1%		$	236.4	90.3%		$	239.3	(1.2)%


Net income attributable to noncontrolling interests	(0.7)				(0.5)

Adjusted EBITDA	$	25.3			$	25.3			—%
Adjusted EBITDA margin	9.6%				9.5%

Net income attributable to Enhabit, Inc.	$	0.2			$	2.7			(92.6)%
Reported diluted EPS	$	0.01			$	0.05			(80.0)%
Adjusted EPS	$	0.07			$	0.09			(22.2)%

The strategy to increase admissions in payor innovation contracts lessened the impact of mix shift contributing to sustained consolidated Adjusted EBITDA of $25.3 million in both periods presented. The shift to more non-Medicare admissions in home health impacted consolidated revenue and Adjusted EBITDA by approximately $6 million partially offset by approximately $4 million in pricing improvement.

SEGMENT RESULTS

Home Health


($ in millions)	Q1				'24 vs. '23
	2024		2023
Net service revenue:

Medicare	128.3		146.0		(12.1)%
Non-Medicare	82.6		67.1		23.1%
Private duty(1)	2.3		2.7		(14.8)%
Home health net service revenue	213.2		215.8		(1.2)%
Cost of service	109.9		108.2		1.6%
Gross margin	48.5%		49.9%
General and administrative expenses	59.5		62.9		(5.4)%

Net income attributable to noncontrolling interests	0.6		0.4		50.0%
Adjusted EBITDA	$	43.2	$	44.3	(2.5)%
% Adj. EBITDA margin	20.3%		20.5%
Operational metrics (actual amounts)
Medicare:
Admissions	25,944		29,285		(11.4)%
Recertifications	17,652		19,938		(11.5)%
Completed episodes	43,171		49,231		(12.3)%
Visits	632,047		723,399		(12.6)%
Visits per episode	14.6		14.7		(0.7)%
Revenue per episode	$	2,972	$	2,966	0.2%
Non-Medicare:
Admissions	30,881		24,658		25.2%
Recertifications	13,489		11,840		13.9%
Visits	571,289		482,301		18.5%

Total:
Admissions	56,825		53,943		5.3%
Same-store total admissions growth					5.0%
Recertifications	31,141		31,778		(2.0)%
Same-store total recertifications growth					(2.4)%


Visits	1,203,336		1,205,700		(0.2)%


Cost per visit	$	90	$	88	2.3%

(1) Private duty represents long-term comprehensive hourly nursing medical care.

Revenue declined year over year primarily due to the payor mix shift to more non-Medicare admissions (approximately $6 million) partially offset by improved pricing (approximately $4 million).

Adjusted EBITDA decreased year over year primarily due to the payor mix shift to more non-Medicare admissions and increased cost of service, offset by a reduction in general and administrative expenses. Cost per visit increased 2.3% year over year primarily due to merit and market rate increases. General and administrative expenses declined year over year primarily due to a new organizational structure implemented in the first quarter of 2023 to align the Company’s sales and operations teams.

Hospice


($ in millions)	Q1				'24 vs. '23
	2024		2023
Net service revenue	$	49.2	$	49.3	(0.2)%
Cost of service	24.3		24.4		(0.4)%
Gross margin	50.6%		50.5%
General and administrative expenses	15.7		16.3		(3.7)%
Net income attributable to noncontrolling interests	0.1		0.1		—%
Adjusted EBITDA	$	9.1	$	8.5	7.1%
% Adj. EBITDA margin	18.5%		17.2%
Operational metrics (actual amounts)
Total admissions	3,032		3,122		(2.9)%
Same-store total admissions growth					(5.1)%
Patient days	308,542		317,027		(2.7)%
Discharged average length of stay	104		114		(8.8)%
Average daily census	3,391		3,523		(3.7)%
Revenue per patient day	$	159	$	156	1.9%
Cost per patient day	$	79	$	77	2.6%

Net service revenue decreased year over year as increased Medicare reimbursement rates were offset by a decrease in patient days.

Adjusted EBITDA increased year over year primarily due to a decrease in general and administrative expenses. Cost per day increased 2.6% year over year primarily due to a decrease in patient days. General and administrative expenses declined year over year primarily due to the restructuring of hospice back office staffing in the third quarter of 2023.

GUIDANCE

The Company reaffirmed its full-year 2024 guidance as follows:

($ in millions, except per share data)

2024 Guidance

Net service revenue

$1,076 to $1,102

Adjusted EBITDA

$98 to $110

Adjusted EPS

$0.12 to $0.43

For additional considerations regarding the Company’s 2024 guidance ranges, see the supplemental information posted on the Company’s website at http://investors.ehab.com.

CONFERENCE CALL INFORMATION

The Company will host an investor conference call at 10 a.m. EDT on May 9, 2024, to discuss its results for the first quarter of 2024. To access the live call by phone, dial toll-free (888) 660-6150 or international (929) 203-0843; the conference ID is 5248158. A simultaneous webcast of the call, along with supplemental information, may be accessed by visiting https://events.q4inc.com/attendee/834974223. Following the call, a replay will be available on the Company’s website at http://investors.ehab.com.

ABOUT ENHABIT HOME HEALTH & HOSPICE

Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading national home health and hospice provider working to expand what's possible for patient care in the home. Enhabit’s team of clinicians supports patients and their families where they are most comfortable, with a nationwide footprint spanning 255 home health locations and 112 hospice locations across 34 states. Enhabit leverages advanced technology and compassionate teams to deliver extraordinary patient care. For more information, visit ehab.com.

OTHER INFORMATION

Note regarding presentation and reconciliation of non-GAAP financial measures

The financial data contained in this press release and supplemental information includes non-GAAP (generally accepted accounting principles (GAAP)) financial measures as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, and Adjusted free cash flow. See “Reconciliations of Non-GAAP Financial Measures” for reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Additionally, our Form 10-Q for the three months ended March 31, 2024, provide further information regarding “unusual or nonrecurring items that are not typical of ongoing operations,” a reconciliation item in our Adjusted EBITDA calculation. Such non-GAAP financial measures exclude significant components in understanding and assessing financial performance and should therefore not be considered superior to, as a substitute for or alternative to the GAAP financial measures presented in this press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.

The Company is unable to reconcile the guidance for Adjusted EBITDA and Adjusted EPS to their corresponding GAAP measures without unreasonable effort due to the inherent difficulty in predicting, with reasonable certainty, the future impact of items that are outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Accordingly, the Company relies on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. Such items include, but are not limited to, gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); and items related to corporate and facility restructurings. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Note regarding presentation of same-store comparisons

The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)


	Three Months Ended March 31,
	2024		2023
	($ in millions, except per share data)
Net service revenue	$	262.4	$	265.1
Cost of service, excluding depreciation and amortization	134.2		132.6

General and administrative expenses	107.5		110.5
Depreciation and amortization	7.8		7.8

Operating income	12.9		14.2
Interest expense and amortization of debt discounts and fees	11.1		9.5


Income before income taxes and noncontrolling interests	1.8		4.7
Income tax expense	0.9		1.5
Net income	0.9		3.2
Less: Net income attributable to noncontrolling interests	0.7		0.5
Net income attributable to Enhabit, Inc.	$	0.2	$	2.7

Weighted average common shares outstanding:
Basic	50.1		49.8
Diluted	50.4		50.1

Earnings per common share:
Basic earnings per share attributable to Enhabit, Inc. common stockholders	$	0.01	$	0.05
Diluted earnings per share attributable to Enhabit, Inc. common stockholders	$	0.01	$	0.05

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)


	March 31, 2024		December 31, 2023
	($ in millions)
Assets
Current assets:
Cash and cash equivalents	$	36.5	$	27.4
Restricted cash	2.9		2.4
Accounts receivable, net of allowances	174.3		164.7




Prepaid expenses and other current assets	12.4		15.6
Total current assets	226.1		210.1
Property and equipment, net	20.6		19.0
Operating lease right-of-use assets	57.0		57.5
Goodwill	1,061.7		1,061.7
Intangible assets, net	74.6		80.0
Other long-term assets	5.2		5.3
Total assets	$	1,445.2	$	1,433.6
Liabilities and stockholders’ equity
Current liabilities:
Current portion of long-term debt	$	22.8	$	22.5
Current operating lease liabilities	11.2		11.8
Accounts payable	9.0		7.6
Accrued payroll	49.1		38.5
Refunds due patients and other third-party payors	10.5		8.2


Accrued medical insurance	7.4		8.4


Other current liabilities	40.5		40.7
Total current liabilities	150.5		137.7
Long-term debt, net of current portion	526.7		530.1
Long-term operating lease liabilities, net of current portion	45.8		45.7
Deferred income tax liabilities	17.0		17.1
Other long-term liabilities	0.2		1.3
Total liabilities	740.2		731.9

Redeemable noncontrolling interests	5.0		5.0
Stockholders’ equity:
Total Enhabit, Inc. stockholders’ equity	672.3		669.7
Noncontrolling interests	27.7		27.0
Total stockholders’ equity	700.0		696.7
Total liabilities and stockholders’ equity	$	1,445.2	$	1,433.6

Enhabit, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
	2024		2023
	($ in millions)
Cash flows from operating activities:
Net income	$	0.9	$	3.2
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	7.8		7.8
Amortization of debt related costs	0.4		0.3



Stock-based compensation	1.8		1.5
Deferred tax (benefit) expense	(0.5)		0.3
Other	(0.3)		—
Changes in assets and liabilities, net of acquisitions—
Accounts receivable, net of allowances	(9.7)		(6.7)
Prepaid expenses and other assets	3.7		18.1
Accounts payable	1.4		2.3
Accrued payroll	10.7		12.2
Other liabilities	1.1		(9.4)
Net cash provided by operating activities	17.3		29.6
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	—		(2.8)
Purchases of property and equipment, including capitalized software costs	(1.8)		(0.6)

Other	0.7		0.2
Net cash used in investing activities	(1.1)		(3.2)
Cash flows from financing activities:

Principal payments on debt	(5.0)		(5.0)

Payments on revolving credit facility	—		(5.0)

Principal payments under finance lease obligations	(1.0)		(1.0)

Distributions paid to noncontrolling interests of consolidated affiliates	—		(2.5)



Other	(0.6)		(0.5)
Net cash used in financing activities	(6.6)		(14.0)
Increase in cash, cash equivalents, and restricted cash	9.6		12.4
Cash, cash equivalents, and restricted cash at beginning of year	29.8		27.2
Cash, cash equivalents, and restricted cash at end of period	$	39.4	$	39.6

Enhabit, Inc. and Subsidiaries

Supplemental Information


Reconciliation of Diluted Earnings Per Share to Adjusted Earnings Per Share

	Three Months Ended March 31,
	2024		2023
Diluted earnings per share, as reported	$	0.01	$	0.05
Adjustments, net of tax:

Unusual or nonrecurring items that are not typical of ongoing operations(1)	0.06		0.03
Income tax adjustments(2)	0.01		0.01
Adjusted earnings per share(3)	$	0.07	$	0.09

(1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

(2) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation.

(3) Adjusted EPS may not sum due to rounding.

Enhabit, Inc. and Subsidiaries

Supplemental Information


Reconciliation of Adjusted EBITDA to Adjusted Earnings Per Share

	Three Months Ended March 31,
	2024
			Adjustments
	As Reported			Unusual or nonrecurring items that are not typical of ongoing operations		Income tax Adjustments(3)		As Adjusted
	($ in millions, except per share data)
Adjusted EBITDA(1)	$	25.3		$	—	$	—	$	25.3

Interest expense and amortization of debt discounts and fees	(11.1)			—		—		(11.1)
Depreciation and amortization	(7.8)			—		—		(7.8)
Unusual or nonrecurring items that are not typical of ongoing operations(2)	(3.7)			3.7		—		—
Stock-based compensation	(1.8)			—		—		(1.8)
Gain on disposal or impairment of assets	0.2			—		—		0.2

Income before income taxes	1.1			3.7		—		4.8
Income tax expense	(0.9)			(0.9)		0.6		(1.2)
Net income attributable to Enhabit, Inc.	$	0.2		$	2.8	$	0.6	$	3.6
Diluted EPS(4)	$	0.01		$	0.06	$	0.01	$	0.07
Diluted shares	50.4							50.4

(1) Reconciliation to GAAP provided below.

(2) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism.

(3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation.

(4) Diluted EPS may not sum due to rounding.

Enhabit, Inc. and Subsidiaries

Supplemental Information


Reconciliation of Adjusted EBITDA to Adjusted Earnings Per Share

	Three Months Ended March 31,
	2023
			Adjustments
	As Reported			Unusual or nonrecurring items that are not typical of ongoing operations		Income Tax Adjustments(3)		As Adjusted
	($ in millions, except per share data)
Adjusted EBITDA(1)	$	25.3		$	—	$	—	$	25.3
Depreciation and amortization	(7.8)			—		—		(7.8)
Interest expense and amortization of debt discounts and fees	(9.5)			—		—		(9.5)
Stock-based compensation	(1.5)			—		—		(1.5)
Unusual or nonrecurring items that are not typical of ongoing operations(2)	(2.3)			2.3		—		—


Income before income taxes	4.2			2.3		—		6.5
Income tax expense	(1.5)			(0.6)		0.4		(1.7)
Net income attributable to Enhabit, Inc.	$	2.7		$	1.7	$	0.4	$	4.8
Diluted EPS(4)	$	0.05		$	0.03	$	0.01	$	0.09
Diluted shares	50.1							50.1

(1) Reconciliation to GAAP provided below.

(2) Unusual or nonrecurring items in Q1 2023 include nonroutine litigation, shareholder activism and standalone transition costs.

(3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation.

(4) Diluted EPS may not sum due to rounding.

Enhabit, Inc. and Subsidiaries

Supplemental Information


Reconciliation of Net Income to Adjusted EBITDA

	Three Months Ended March 31,
	2024		2023
	($ in millions)
Net income	$	0.9	$	3.2
Income tax expense	0.9		1.5
Interest expense and amortization of debt discounts and fees	11.1		9.5
Depreciation and amortization	7.8		7.8
Gain on disposal or impairment of assets	(0.2)		—
Stock-based compensation	1.8		1.5
Net income attributable to noncontrolling interests	(0.7)		(0.5)
Unusual or nonrecurring items that are not typical of ongoing operations(1)	3.7		2.3

Adjusted EBITDA	$	25.3	$	25.3


Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

	Three Months Ended March 31,
	2024		2023
	($ in millions)
Net cash provided by operating activities	$	17.3	$	29.6
Current portion of income tax expense	1.4		1.2
Interest expense, excluding amortization of debt discounts and fees	10.7		9.5

Change in assets and liabilities, excluding derivative instrument	(7.2)		(16.5)
Net income attributable to noncontrolling interests	(0.7)		(0.5)
Unusual or nonrecurring items that are not typical of ongoing operations(1)	3.7		2.3
Other	0.1		(0.3)


Adjusted EBITDA	$	25.3	$	25.3

Enhabit, Inc. and Subsidiaries

Supplemental Information


Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

	Three Months Ended March 31,
	2024		2023
	($ in millions)
Net cash provided by operating activities	$	17.3	$	29.6
Unusual or nonrecurring items that are not typical of ongoing operations(1)	3.7		2.3
Capital expenditures for maintenance	(1.8)		(0.6)
Other working capital adjustments	(0.6)		(0.5)
Distributions paid to noncontrolling interests of consolidated affiliates	—		(2.5)

Adjusted free cash flow	$	18.6	$	28.3


Reconciliation of Gross Margin to Adjusted EBITDA Margin

	Three Months Ended March 31,
	2024		2023

Gross margin as a percentage of revenue	48.9	%	50.0	%
General and administrative expenses	(41.0)	%	(41.7)	%
Unusual or nonrecurring items that are not typical of ongoing operations(1)	1.4	%	0.9	%
Stock-based compensation	0.7	%	0.5	%
Noncontrolling interests	(0.3)	%	(0.2)	%
Gain on disposal or impairment of assets	(0.1)	%	—	%

Adjusted EBITDA margin	9.6	%	9.5	%

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Enhabit include, but are not limited to, our ability to execute on our strategic plans; regulatory and other developments impacting the markets for our services; changes in reimbursement rates; general economic conditions; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients, and payment methodologies; our ability to attract and retain key management personnel and health care professionals; potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems; the outcome of litigation; our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; our ability to control costs, particularly labor and employee benefit costs; and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which are available on the Company’s website at http://investors.ehab.com.

Investor relations contact

Crissy Carlisle

investorrelations@ehab.com

469-860-6061

Media contact

Erin Volbeda

media@ehab.com

972-338-5141

First Quarter Earnings Call Supplemental Information May 9, 2024

Enhabit Home Health & Hospice 2 Disclaimer Forward looking statements Statements contained in this presentation which are not historical facts, such as those relating to future events, projections, financial guidance, legislative or regulatory developments, strategy or growth opportunities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by the Company include, but are not limited to, our ability to execute on our strategic plans; regulatory and other developments impacting the markets for our services; changes in reimbursement rates; general economic conditions; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; our ability to attract and retain key management personnel and healthcare professionals; potential disruptions or breaches of our or our vendors’, payors’, and other contract counterparties’ information systems; the outcome of litigation; our ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures; our ability to successfully integrate technology in our operations; our ability to control costs, particularly labor and employee benefit costs; and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this presentation are described in reports filed with the SEC, including our annual report on Form 10-K and subsequent quarterly reports on Form 10- Q, copies of which are available on the Company’s website at http:// investors.ehab.com. Note regarding presentation of non-GAAP financial measures This presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, and Adjusted free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP are presented at the end of this presentation. Our Form 8-K, filed with the SEC as of the date of this presentation, provides further explanation and disclosure regarding Enhabit’s use of non-GAAP financial measures and should be read in conjunction with this supplemental information. Additionally, our Form 10-Q for the three months ended March 31, 2024, provides further information regarding "unusual or nonrecurring items that are not typical of ongoing operations," a reconciliation item in our Adjusted EBITDA calculation. Note regarding presentation of same-store comparisons The Company uses “same-store” comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on home health and hospice locations open throughout both the full current period and the immediately prior period presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company’s results of operations.

Contents Results at a Glance 4 Consolidated Results 5-6 Clinical Expertise and High-Quality Outcomes 7 Payor Innovation 8 De Novos 9 Home Health Segment 10-12 Hospice Segment 13-14 Consolidated Adjusted EBITDA 15 Debt and Liquidity 16 Adjusted Free Cash Flow 17 Guidance 18-19 Adjusted Free Cash Flow Assumptions and Uses of Free Cash Flow 20-21 Appendix, Including Company Overview & Reconciliations to GAAP 23-33

Enhabit Home Health & Hospice 4 Non-Medicare admissions grew 25.2%, driving total admissions growth of 5.3% year over year. Strong growth in Medicare Advantage admissions and stabilization of Medicare admissions. Cost per visit increased 2.3% year over year. 38% of non-Medicare visits are now in payor innovation contracts at improved rates. 30-day hospital readmission rate 20.5% better than national average. 5.6% sequential growth in hospice admissions Adjusted EBITDA grew 7.1% year over year. Cost per day increased 2.6% year over year. 53.2% better than the national average for patient visits in the last days of life. Reconciliations to GAAP provided in Appendix Results at a Glance Sustained consolidated Adjusted EBITDA despite shift to Medicare Advantage Continued success in recruitment and retention of nurses. General and administrative expenses declined year over year. Home Health Hospice Consolidated $262.4M Net service revenue $0.2M $0.01 Net income attributable to Enhabit, Inc. Reported EPS $25.3M $0.07 Adjusted EBITDA Adjusted EPS 56,825 3,032 Home Health Admissions Hospice Admissions 57,504 3,391 Home Health Completed episodes Hospice Average daily census $2,972 $159 Home Health Medicare revenue per episode Hospice Revenue per patient day $90 $79 Home Health Cost per visit Hospice Cost per patient day

Enhabit Home Health & Hospice 5 Consolidated Results ($ in millions, except per share data) Q1 '24 vs. '232024 2023 Home health net service revenue $213.2 $215.8 (1.2) % Hospice net service revenue 49.2 49.3 (0.2) % Total net service revenue $262.4 $265.1 (1.0) % % of revenue % of revenue Cost of service 51.1 % $134.2 50.0 % $132.6 1.2 % Gross margin 48.9 % 128.2 50.0 % 132.5 (3.2) % General and administrative expenses 38.9 % 102.2 40.2 % 106.7 (4.2) % Total operating expenses 90.1 % $236.4 90.3 % $239.3 (1.2) % Net income attributable to noncontrolling interests (0.7) (0.5) Adjusted EBITDA $25.3 $25.3 — % Adjusted EBITDA margin 9.6 % 9.5 % Net income attributable to Enhabit, Inc. $0.2 $2.7 (92.6) % Reported diluted EPS $0.01 $0.05 (80.0) % Adjusted EPS (see calculations on slides 28 and 29) $0.07 $0.09 (22.2) % General and administrative expenses in the above table exclude: Unusual or nonrecurring items that are not typical of ongoing operations(1) $3.7 $2.3 Stock compensation expense $1.8 $1.5 Gain on disposal or impairment of assets $(0.2) $— Reconciliations to GAAP provided in Appendix 1 Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Enhabit Home Health & Hospice 6 Consolidated Results (continued) • The shift to more non-Medicare admissions in home health impacted consolidated revenue and Adjusted EBITDA by approximately $6 million partially offset by approximately $4 million in pricing improvement. Strategy to increase admissions in payor innovation contracts lessened the impact of mix shift contributing to sustained Consolidated Adjusted EBITDA of $25.3 million in both periods presented. Consolidated revenue decreased $2.7 million, or 1.0%, year over year. Reconciliations to GAAP provided in Appendix Continued success in recruitment and retention • 151 net new full-time nursing hires in Q1 2024 – Represents 42 additional hires compared to Q1 2023 and 31 additional hires compared to Q4 2023

Enhabit Home Health & Hospice 7 Clinical Expertise and High-Quality Outcomes Enhabit National Average % Better Than Average QoPC Star Rating1 3.5 3.0 16.7% 89% of our home health agencies are 3 Stars or higher; 34% are 4 Stars or higher1 HHCAHPS Star Rating2 3.7 3.5 5.7% 99% of our home health agencies are 3 Stars or higher; 66% are 4 Stars or higher2 30-Day Hospital Readmission Rate3 14.0% 17.6% 20.5% % of patients readmitted to an acute care hospital within 30 days of start of care or resumption of care Patient Visits in Last Days of Life4 73.4% 47.9% 53.2% % of patients who received in person visits from RN or medical social worker on at least two out of the final three days of the patient’s life Standardized Protocols Motivated Clinicians Disciplined Use of Technology Superior Performance ü ü ü ü 1) Quality of Patient Care (QoPC) Star Ratings as of January 2024 for dates of service full year 2022; April 2022 through March 2023 2) Home Health Care Consumer Assessment of Healthcare Providers (HHCAHPS) Patient Survey Star Ratings as of January 2024 for dates of service July 1, 2022 - June 30, 2023 3) Research Institute for Home Care 2022 Chartbook (data from Medicare Standard Analytics Files for CY 2022), Enhabit data is as of Q4 2023 4) Medicare fee for service claims data from January 2021 to December 2022 (source Medicare Provider Data catalog - January 2024)

Enhabit Home Health & Hospice 8 Payor Innovation Payor innovation strategy continues to foster Medicare Advantage growth. Strategy to increase admissions in payor innovation contracts lessens the impact of mix shift. 38% of non-Medicare visits are now in payor innovation contracts at improved rates. Visits from payor innovation contracts as a percentage of total non-Medicare visits: Q1 23 Q4 23Q3 23Q2 23 Q1 24 Two national contracts: start dates of May 1, 2023 and January 1, 2024 Basis of presentation differs from previous versions that used non-episodic totals. See page 10 for additional information regarding change in home health metric presentation.

Enhabit Home Health & Hospice 9 De Novos Strategically reinvesting for growth • Added two hospice de novo locations in Q1 2024 – Denton, TX hospice location began accepting patients in March 2024 – Richmond, TX hospice location began accepting patients in March 2024 • One additional home health de novo location opened in April in Melbourne, FL (not reflected in count below) Home Health Hospice Total December 31, 2020 241 82 323 De Novo Locations Opened 0 3 3 Acquired Locations 11 11 22 Merged/Closed Locations (1) 0 (1) December 31, 2021 251 96 347 De Novo Locations Opened 1 3 4 Acquired Locations 2 6 8 Merged/Closed Locations (2) 0 (2) December 31, 2022 252 105 357 De Novo Locations Opened 2 4 6 Acquired Locations 1 0 1 YTD 2023 255 109 364 251 252 255 255 96 105 110 112 Home Health Hospice 12/31/21 12/31/22 12/31/23 YTD 2024 0 100 200 300 400 Location Count

Enhabit Home Health & Hospice 10 Home Health Reporting Change Reconciliations to GAAP provided in Appendix With an advanced episodic model added to our payor innovation contracts effective January 1, 2024, we have updated how we report volume and pricing metrics for our home health segment, separating traditional Medicare from all other payors. All prior period amounts have been recast to conform to the current presentation, with no impact on the unaudited consolidated financial statements.

Enhabit Home Health & Hospice 11 Home Health Segment ($ in millions) Q1 '24 vs. '232024 2023 Net service revenue: Medicare $128.3 $146.0 (12.1) % Non-Medicare 82.6 67.1 23.1 % Private duty(1) 2.3 2.7 (14.8) % Home health net service revenue 213.2 215.8 (1.2) % Cost of service 109.9 108.2 1.6 % Gross margin 48.5 % 49.9 % General and administrative expenses 59.5 62.9 (5.4) % Net income attributable to noncontrolling interests 0.6 0.4 50.0 % Adjusted EBITDA $43.2 $44.3 (2.5) % % Adj. EBITDA margin 20.3 % 20.5 % Operational metrics (actual amounts) Medicare: Admissions 25,944 29,285 (11.4) % Recertifications 17,652 19,938 (11.5) % Completed episodes 43,171 49,231 (12.3) % Visits 632,047 723,399 (12.6) % Visits per episode 14.6 14.7 (0.7) % Revenue per episode $2,972 $2,966 0.2 % Non-Medicare: Admissions 30,881 24,658 25.2 % Recertifications 13,489 11,840 13.9 % Visits 571,289 482,301 18.5 % Total: Admissions 56,825 53,943 5.3 % Same-store total admissions growth 5.0 % Recertifications 31,141 31,778 (2.0) % Same-store total recertifications growth (2.4) % Visits 1,203,336 1,205,700 (0.2) % Cost per visit $90 $88 2.3 % Reconciliations to GAAP provided in Appendix Note: See slide 10 for details on a home health metric reporting change.(1) Private duty represents long-term comprehensive hourly nursing medical care.

Enhabit Home Health & Hospice 12 Home Health Segment (continued) Non-Medicare admissions grew 25.2%, driving total admissions growth of 5.3% year over year. • Revenue declined $2.6 million, or 1.2%, year over year primarily due to the payor mix shift to more non-Medicare admissions. – The shift to more non-Medicare admissions reduced revenue approximately $6 million partially offset by approximately $4 million in pricing improvement. Adjusted EBITDA decreased $1.1 million, or 2.5%, year over year primarily due to the shift to more non-Medicare admissions and increased cost of service, offset by a reduction in general and administrative expenses. • Cost per visit increased 2.3% year over year primarily due to merit and market rate increases. • General and administrative expenses declined year over year primarily due to a new organizational structure implemented in the first quarter of 2023 to align our sales and operations teams. Home health total admissions increased 5.3% year over year. Reconciliations to GAAP provided in Appendix

Enhabit Home Health & Hospice 13 Hospice Segment ($ in millions) Q1 '24 vs. '232024 2023 Net service revenue $49.2 $49.3 (0.2) % Cost of service 24.3 24.4 (0.4) % Gross margin 50.6 % 50.5 % General and administrative expenses 15.7 16.3 (3.7) % Net income attributable to noncontrolling interests 0.1 0.1 — % Adjusted EBITDA $9.1 $8.5 7.1 % % Adj. EBITDA margin 18.5 % 17.2 % Operational metrics (actual amounts) Total admissions 3,032 3,122 (2.9) % Same-store total admissions growth (5.1) % Patient days 308,542 317,027 (2.7) % Discharged average length of stay 104 114 (8.8) % Average daily census 3,391 3,523 (3.7) % Revenue per patient day $159 $156 1.9 % Cost per patient day $79 $77 2.6 % Reconciliations to GAAP provided in Appendix

Enhabit Home Health & Hospice 14 Hospice Segment (continued) Hospice average daily census decreased 3.7% year over year. Revenue decreased $0.1 million, or 0.2%, year over year as increased Medicare reimbursement rates were offset by a decrease in patient days. • Admissions decreased 2.9% year over year. • Revenue per day increased 1.9% year over year primarily due to increased Medicare reimbursement rates. Average daily census decreased 1.2% sequentially. • Average daily census declined in January as the number of deaths following the holiday season approximated the number of admissions during the month. • Census built as the quarter progressed with admissions increasing 5.6% sequentially. Adjusted EBITDA increased $0.6 million, or 7.1%, year over year primarily due to a decrease in general and administrative expenses. • Cost per day increased 2.6% year over year primarily due to a decrease in patient days. – The impact of merit and market increases was offset by a reduction in contract labor. • General and administrative expenses declined year over year primarily due to the restructuring of hospice back office staffing in the third quarter of 2023. Reconciliations to GAAP provided in Appendix

Enhabit Home Health & Hospice 15 Consolidated Adjusted EBITDA ($ in millions) Q1 2024 % of Consolidated Revenue Q1 2023 % of Consolidated Revenue Home health segment Adjusted EBITDA $43.2 $44.3 Hospice segment Adjusted EBITDA 9.1 8.5 Home office general & administrative expenses (27.0) 10.3 % (27.5) 10.4 % Consolidated Adjusted EBITDA $25.3 $25.3 Home office general & administrative expenses in the above table exclude: Unusual or nonrecurring items that are not typical of ongoing operations(1) $3.7 $2.3 Stock-based compensation $1.8 $1.5 Gain on disposal or impairment of assets $(0.2) $— Reconciliations to GAAP provided in Appendix (1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Enhabit Home Health & Hospice 16 Debt & Liquidity Metrics ($ in millions) March 31, 2024 December 31, 2023 Advances under revolving credit facility, due 2027(1) $180.0 $180.0 $400 million term loan facility, due 2027(1)(2) 362.3 367.1 Finance lease obligations 7.2 5.5 Total debt $549.5 $552.6 Less: Cash and cash equivalents 36.5 27.4 Net debt $513.0 $525.2 Net debt to Adjusted EBITDA 5.3x 5.4x Trailing twelve-month Adjusted EBITDA $97.6 $97.6 Available liquidity $69.9 $60.8 Reconciliations to GAAP provided in Appendix (1) The Q1 2024 weighted average interest rate was 7.7% (SOFR + credit spread adjustment + 250 bps). (2) In October 2022, Enhabit entered into an interest rate swap to fix the rate on $200 million of its term loan. The swap fixes the SOFR component of the interest rate at 4.3%.

Enhabit Home Health & Hospice 17 Adjusted Free Cash Flow • Adjusted free cash flow decreased year over year primarily due to approximately $6 million of income tax refunds received in Q1 2023. • See Adjusted free cash flow assumptions on slide 20. • See uses of Adjusted free cash flow on slide 21. ($ in millions) $28.3 $(1.2)$(1.6)$(5.7) $(1.2) $18.6 Adj. Free Cash Flow YTD 2023 Cash Tax Payments, Net of Refunds Cash Interest Payments Change in Working Capital and Other Maintenance Capital Expenditures Adj. Free Cash Flow YTD 2024 $0 $10 $20 $30 $40 Reconciliations to GAAP provided in Appendix

Enhabit Home Health & Hospice 18 2024 Guidance Reaffirmed as of May 8, 2024 ($ in millions, except per share data) 2023 Actuals 2024 Guidance Net service revenue $1,046.3 $1,076 to $1,102 Adjusted EBITDA $97.6 $98 to $110 Adjusted EPS $0.22 $0.12 to $0.43 Reconciliations to GAAP provided in Appendix

Enhabit Home Health & Hospice 19 Guidance Considerations • An increase of 1.2% in Medicare pricing • Continued shift to more non-Medicare admissions • Cost per visit increase of 2.0% to 3.0% Home Health • An increase of 2.9% in Medicare pricing for Q1 through Q3 • Cost per patient day increase of 2.0% to 4.0% Hospice • Tax rate of approximately 26% • Diluted share count of approximately 50.5 million shares Consolidated

Enhabit Home Health & Hospice 20 Adjusted Free Cash Flow Assumptions ($ in millions) Certain cash flow items 2023 Full Year 2024 YTD 2024 Assumptions Adjusted EBITDA $97.6 $25.3 $98 to $110 Cash interest expense 40.6 11.8 $40 to $45 Cash income tax payments (refunds), net (8.2) (0.2) $4 to $6 Working capital and other 3.0 (6.7) $(3) to $3 Maintenance capital expenditures 3.4 1.8 $5 to $10 Adjusted free cash flow $58.8 $18.6 $36 to $62 Reconciliations to GAAP provided in Appendix • Net cash income tax refunds in 2023 include the impact of a partial refund of 2022 overpayment. • The change in working capital and other primarily resulted from the timing of payroll.

Enhabit Home Health & Hospice 21 Uses of Adjusted Free Cash Flow ($ in millions) Growth in Core Business 2023 Full Year Q1 2024 2024 Assumptions De novos $2.2 $0.7 $2.5 to $3.5 Acquisitions(1) $2.8 $— TBD Debt repayments (borrowings), net $30.0 $5.0 TBD (1) Completed the acquisition of Specialty Home Health Care Inc. in Q1 2023 at a purchase price of $3.1 million, with a hold back of $0.3 million expected to be released March 1, 2025.

Enhabit Home Health & Hospice 22 Appendix

Enhabit Home Health & Hospice 23 Overview 107 hospice locations co-located with home health locations(1) 10 states where we are #1 or #2 in home health(2) ~66% of total Medicare home health spend occurs in states in which we operate(2) Home Health Locations Hospice Locations Home Health & Hospice State Home Health Only State (1) As of March 31, 2024 - due to scale, not all locations can be represented by locational markers (2) Based on 2022 Home Health Medicare revenues 112 Hospice Locations(1) 255 Home Health Locations(1) We are a leading provider of home health and hospice services that strives to provide superior, cost-effective care where patients prefer it: in their homes For over 20 years, we've provided care with high-quality outcomes becoming a trusted partner of health systems, payors and other risk-bearing entities We operate nationally across 34 states with 10,800+ employees We foster an award-winning culture that is a strategic advantage in attracting and retaining talent and a main contributor to our continued success

Enhabit Home Health & Hospice 24 2024 Priorities Home Health Hospice De Novos People Strategy • Stabilize Medicare as a % of total home health revenue • Leverage payor innovation strategy – Improve Medicare Advantage rates – Shift away from lower rate contracts • Grow through increased clinical staffing, ability to accept new payors and alignment of clinical resource utilization with patient acuity and complexities • Grow census through improved staffing capacity with case management model • Gain operating leverage in hospice fixed cost structure by growing census • Increase use of analytics to drive high-quality care via case management model • Focus on efficiencies in referral to admission process • Open 10 de novo locations • Ramp up staffing, referral and admission growth in de novo locations opened in 2023 • Continue to increase net full-time nursing and therapy headcount to support home health growth • Focus on employee engagement to retain workforce

Enhabit Home Health & Hospice 25 Home Health Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Medicare $146.0 $139.4 $141.0 $130.9 $557.3 $128.3 Non-Medicare 67.1 71.8 67.3 76.8 283.0 82.6 Private duty(1) 2.7 2.6 2.6 1.8 9.7 2.3 Home health net service revenue $215.8 $213.8 $210.9 $209.5 $850.1 $213.2 (actual amounts)(1) Medicare: Admissions 29,285 26,845 25,585 25,090 106,805 25,944 Recertifications 19,938 19,884 19,321 18,970 78,113 17,652 Completed episodes 49,231 47,528 44,350 44,305 185,414 43,171 Visits 723,399 691,857 660,380 639,744 2,715,380 632,047 Visits per episode 14.7 14.6 14.9 14.4 14.6 14.6 Revenue per episode $ 2,966 $ 2,933 $ 3,179 $ 2,955 $ 3,006 $ 2,972 Non-Medicare: Admissions 24,658 24,130 24,938 26,917 100,643 30,881 Recertifications 11,840 13,458 13,411 13,058 51,767 13,489 Visits 482,301 514,008 501,764 522,641 2,020,714 571,289 Total: Admissions 53,943 50,975 50,523 52,007 207,448 56,825 Recertifications 31,778 33,342 32,732 32,028 129,880 31,141 Visits 1,205,700 1,205,865 1,162,144 1,162,385 4,736,094 1,203,336 Cost per visit $ 88 $ 91 $ 93 $ 92 $ 91 $ 90 (1) Private duty represents long-term comprehensive hourly nursing medical care. Note: See slide 10 for details on a home health metric reporting change.

Enhabit Home Health & Hospice 26 Hospice Operational Metrics (net service revenue $ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Hospice net service revenue $49.3 $48.5 $47.4 $51.1 $196.2 $49.2 (actual amounts) Total admissions 3,122 2,837 2,882 2,872 11,713 3,032 Patient days 317,027 311,465 311,719 315,870 1,256,081 308,542 Discharged average length of stay 114 108 107 102 108 104 Average daily census 3,523 3,423 3,388 3,433 3,441 3,391 Revenue per day $156 $156 $152 $162 $156 $159 Cost per day $77 $77 $77 $76 $77 $79

Enhabit Home Health & Hospice 27 Payor Sources As a % of Revenue First Quarter Fiscal Year Consolidated 2024 2023 2023 Medicare 67.4% 73.0% 71.5% Medicare Advantage 22.6% 18.6% 19.0% Managed Care 8.8% 7.1% 8.2% Medicaid 0.9% 1.1% 1.2% Other 0.3% 0.2% 0.1% Total 100.0% 100.0% 100.0% Home Health Medicare 60.2% 67.7% 65.6% Medicare Advantage 27.8% 22.8% 23.4% Managed Care 10.5% 8.0% 9.5% Medicaid 1.2% 1.3% 1.4% Other 0.3% 0.2% 0.1% Total 100.0% 100.0% 100.0% Hospice Medicare 98.6% 96.5% 97.1% Managed Care 1.4% 3.5% 2.5% Medicaid —% —% 0.4% Total 100.0% 100.0% 100.0%

Enhabit Home Health & Hospice 28 EPS Calculation: Q1 2024 ($ in millions, except per share amounts) Adjusted EPS – Q1 2024 As Reported Unusual or nonrecurring items that are not typical of ongoing operations Income Tax Adjustments(3) As Adjusted Adjusted EBITDA(1) $25.3 $— $— $25.3 Interest expense and amortization of debt discounts and fees (11.1) — — (11.1) Depreciation and amortization (7.8) — — (7.8) Unusual or nonrecurring items that are not typical of ongoing operations(2) (3.7) 3.7 — — Stock-based compensation (1.8) — — (1.8) Gain on disposal or impairment of assets 0.2 — — 0.2 Income before income taxes 1.1 3.7 — 4.8 Income tax expense (0.9) (0.9) 0.6 (1.2) Net income attributable to Enhabit, Inc. $0.2 $2.8 $0.6 $3.6 Diluted EPS(4) $0.01 $0.06 $0.01 $0.07 Diluted shares 50.4 50.4 (1) Reconciliation to GAAP provided on slides 30 and 31. (2) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism. (3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation. (4) Diluted EPS may not sum due to rounding.

Enhabit Home Health & Hospice 29 EPS Calculation: Q1 2023 ($ in millions, except per share amounts) Adjusted EPS – Q1 2023 As Reported Unusual or nonrecurring items that are not typical of ongoing operations Income Tax Adjustments(3) As Adjusted Adjusted EBITDA(1) $25.3 $— $— $25.3 Depreciation and amortization (7.8) — — (7.8) Interest expense and amortization of debt discounts and fees (9.5) — — (9.5) Stock-based compensation (1.5) — — (1.5) Unusual or nonrecurring items that are not typical of ongoing operations(2) (2.3) 2.3 — — Income before income taxes 4.2 2.3 — 6.5 Income tax expense (1.5) (0.6) 0.4 (1.7) Net income attributable to Enhabit, Inc. $2.7 $1.7 $0.4 $4.8 Diluted EPS(4) $0.05 $0.03 $— $0.09 Diluted shares 50.1 50.1 (1) Reconciliation to GAAP provided on slides 30 and 31. (2) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism. (3) Income tax adjustments include the effect of permanent book-tax differences attributable to stock-based compensation. (4) Diluted EPS may not sum due to rounding.

Enhabit Home Health & Hospice 30 Reconciliation of Net Income to Adjusted EBITDA – Consolidated ($ in millions) Three Months Ended March 31, 2024 2023 Net income $0.9 $3.2 Income tax expense 0.9 1.5 Interest expense and amortization of debt discounts and fees 11.1 9.5 Depreciation and amortization 7.8 7.8 Gain on disposal or impairment of assets (0.2) — Stock-based compensation 1.8 1.5 Net income attributable to noncontrolling interests (0.7) (0.5) Unusual or nonrecurring items that are not typical of ongoing operations(1) 3.7 2.3 Adjusted EBITDA $25.3 $25.3 (1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Enhabit Home Health & Hospice 31 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA ($ in millions) Three Months Ended March 31, 2024 2023 Net cash provided by operating activities $17.3 $29.6 Current portion of income tax expense 1.4 1.2 Interest expense, excluding amortization of debt discounts and fees 10.7 9.5 Change in assets and liabilities, excluding derivative instrument (7.2) (16.5) Net income attributable to noncontrolling interests (0.7) (0.5) Unusual or nonrecurring items that are not typical of ongoing operations(1) 3.7 2.3 Other 0.1 (0.3) Adjusted EBITDA $25.3 $25.3 (1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Enhabit Home Health & Hospice 32 Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow ($ in millions) Three Months Ended March 31, 2024 2023 Net cash provided by operating activities $17.3 $29.6 Unusual or nonrecurring items that are not typical of ongoing operations(1) 3.7 2.3 Capital expenditures for maintenance (1.8) (0.6) Other working capital adjustments (0.6) (0.5) Distributions paid to noncontrolling interests of consolidated affiliates — (2.5) Adjusted free cash flow $18.6 $28.3 (1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Enhabit Home Health & Hospice 33 Reconciliation of Gross Margin to Adjusted EBITDA Margin Three Months Ended March 31, 2024 2023 Gross margin as a percentage of revenue 48.9 % 50.0 % General and administrative expenses (41.0) % (41.7) % Unusual or nonrecurring items that are not typical of ongoing operations(1) 1.4 % 0.9 % Stock-based compensation 0.7 % 0.5 % Noncontrolling interests (0.3) % (0.2) % Gain on disposal or impairment of assets (0.1) % — % Adjusted EBITDA margin 9.6 % 9.5 % (1) Unusual or nonrecurring items in Q1 2024 include costs associated with the strategic review process, nonroutine litigation, standalone transition costs and shareholder activism; in Q1 2023, they include nonroutine litigation, shareholder activism and standalone transition costs.

Exhibit 99.3

Enhabit Concludes Review of Strategic Alternatives

Continues to Execute on Operating Plan; Commences Planned Board Transition

DALLAS – May 8, 2024 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today announced Enhabit’s Board of Directors (the “Board”) has concluded the Company’s strategic review process, announced in August 2023, which was overseen by the Board with assistance from its financial and legal advisors, Goldman Sachs and Sidley Austin, respectively. After evaluating a full range of strategic alternatives, including a potential sale, merger or other transaction, the Board unanimously determined that continuing to execute on the Company’s strategic plan as an independent, public company is in the best interests of the Company and its shareholders at this time.

The Company and its advisors ran a thorough strategic review process that concentrated on a merger or acquisition of the Company. The Board directed the Company’s financial advisor to identify potential strategic partners and financial sponsors that might be interested in an acquisition of or strategic combination with the Company. In addition to inbound inquiries, outreach was conducted to a comprehensive range of strategic and financial counterparties. The Company executed Non-Disclosure Agreements with a broad number of counterparties and received indications of interest from a variety of counterparties.

There was serious interest based on parties’ engagement in the process; however, the Company did not receive any formal proposals for a transaction. “We believe macro headwinds including, among other things, uncertain regulatory developments including Medicare reimbursement policies throughout the healthcare industry and an evolving antitrust landscape, a difficult healthcare operating environment, and persistently high interest rates ultimately stifled possibilities for a transaction that would enhance shareholder value,” said Chairperson of the Board Leo Higdon. “Considering this, and other strategic alternatives reviewed with advisors during the review process, the Board determined the best way to enhance shareholder value at this time is to continue to operate as a stand-alone business. The Board looks forward to working with the management team to lead the Company’s execution on its operating plan. The Board remains committed to enhancing value for all shareholders and will continue to be open to and evaluate all opportunities to do so.”

The Board and management team remain focused on the Company’s financial and operating results. “With the strategic alternatives review process concluded, the management team is focused on operating Enhabit’s core businesses,” said President and Chief Executive Officer Barbara Jacobsmeyer. “Our momentum exiting 2023 and through the first quarter of 2024, in which we hired additional frontline clinicians, negotiated more and better home health payor contracts, and controlled G&A expenses, instills excitement in our strategy and team, and we are confident we are taking the right steps to drive future growth to increase shareholder value.”

Confirms Previously Disclosed Board Transition

Today, the Company’s Board consists of 13 directors, 12 of whom are independent directors, including five legacy independent directors who previously served on Encompass Health Corporation’s (“Encompass”) board of directors prior to the Company’s separation from Encompass in July 2022. The Company believes service by the legacy Encompass directors on a transitional basis over the past two years was invaluable to the public company transition of the new company. In addition to their historical knowledge of the business and public company board experience, their leadership in recruiting directors

with diverse skill sets and wide-ranging experience will benefit the Company going forward. As previously disclosed, including in the Company’s proxy statement for last year’s 2023 annual meeting of shareholders, the Nominating & Corporate Governance Committee of the Board is committed to an orderly transition of four of the five legacy Encompass board members by this year’s 2024 annual shareholder meeting, which will result in a board size of nine directors. The four legacy directors who will not stand for election are Leo I. Higdon, Yvonne M. Curl, John E. Maupin, Jr., and L. Edward Shaw, Jr.

About Enhabit Home Health & Hospice

Investor relations contact

Crissy Carlisle

investorrelations@ehab.com

469-860-6061

Media contact

Erin Volbeda

media@ehab.com

972-338-5141

Cover	May 08, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 08, 2024
Entity Registrant Name	Enhabit, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-41406
Entity Tax Identification Number	47-2409192
Entity Address, Address Line One	6688 N. Central Expressway
Entity Address, Address Line Two	Suite 1300
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75206
City Area Code	214
Local Phone Number	239-6500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EHAB
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001803737