other material
confidence high
sentiment negative
materiality 0.75
Enhabit delays FY2022 10-K, discloses $12M AR understatement and material weakness
Enhabit, Inc.
- Company unable to file FY2022 10-K by due date; goodwill impairment analysis not finalized.
- Accounts receivable reserve understated by ~$12M; half from computation failures, half from updated collections assumptions due to Medicare Advantage payor shift.
- Material weakness in internal controls over AR allowance methodology; expects disclosure controls and ICFR ineffective as of Dec 31, 2022.
- Company does not expect to revise previously issued financial statements or FY2023 guidance.
- $2M benefit from 2022 bonus accrual following board approval in Feb 2023.