Latest news with #JonRousseau
Yahoo
16-05-2025
- Business
- Yahoo
BTSG Q1 Earnings Call: Revenue and Profit Exceed Expectations, Raises Full-Year Outlook
Healthcare services provider BrightSpring Health Services (NASDAQ:BTSG) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 11.7% year on year to $2.88 billion. The company's full-year revenue guidance of $12.25 billion at the midpoint came in 2.5% above analysts' estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts' consensus estimates. Is now the time to buy BTSG? Find out in our full research report (it's free). Revenue: $2.88 billion vs analyst estimates of $2.75 billion (11.7% year-on-year growth, 4.6% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.09 (significant beat) Adjusted EBITDA: $131.1 million vs analyst estimates of $125.6 million (4.6% margin, 4.4% beat) The company lifted its revenue guidance for the full year to $12.25 billion at the midpoint from $11.85 billion, a 3.4% increase EBITDA guidance for the full year is $577.5 million at the midpoint, above analyst estimates of $563.1 million Operating Margin: 1.8%, up from -0.6% in the same quarter last year Free Cash Flow was $83.97 million, up from -$100.7 million in the same quarter last year Market Capitalization: $4.19 billion BrightSpring Health Services delivered Q1 results that outpaced Wall Street's expectations, with management attributing the performance to continued growth in pharmacy solutions and provider services. CEO Jon Rousseau highlighted strong volume gains in specialty and infusion pharmacy, as well as operational improvements across home health and rehab, stating, 'We have consistently driven outsized volume growth in our markets, led by responsive and reliable high-quality care, loyal and expanding referral sources, and new market investments.' Looking ahead, management's raised guidance was underpinned by ongoing efficiency initiatives, a robust pipeline of generic drug launches, and anticipated expansion in home and community-based care. CFO Jen Phipps noted that operational initiatives are expected to support improved margins throughout the year, while Rousseau emphasized BrightSpring's ability to manage regulatory uncertainty, saying, "We are confident in our ability to execute against our increased financial outlook throughout 2025." BrightSpring's leadership focused on the drivers behind Q1's outperformance and the factors influencing its updated outlook. The following points summarize key management insights: Pharmacy Solutions Momentum: Specialty and infusion pharmacy businesses saw accelerated growth, supported by new drug launches, increased generic utilization, and market share gains from high service levels and clinical outcomes. Operational Efficiency Gains: Investments in technology and process improvements yielded ongoing organizational efficiencies, helping to manage costs and enable margin expansion, particularly in the pharmacy segment. Provider Services Execution: Home health and hospice operations delivered solid revenue increases, attributed to strong patient satisfaction, de novo market expansion, and improved contracts with Medicare Advantage plans. Regulatory Risk Management: Management addressed uncertainty around potential pharmaceutical tariffs and the Inflation Reduction Act (IRA), emphasizing that current exposure is limited and that reimbursement models and inventory management mitigate near-term risks. M&A and Strategic Divestitures: The planned sale of the community living business remains on track, while management's approach to M&A continues to focus on targeted, accretive acquisitions in home health and hospice—without jeopardizing leverage goals. Management expects BrightSpring's growth trajectory to continue, anchored by sustained demand for home and community-based healthcare, operational discipline, and expansion in specialty pharmacy. Specialty Pharmacy Pipeline: A robust pipeline of limited distribution drugs (LDDs) and ongoing generic launches are projected to drive higher script volumes and revenue growth over the next year. Cost Discipline Initiatives: Ongoing procurement and lean operational programs are expected to improve margins and cash flow, with management emphasizing their institutionalized approach to efficiency gains. Regulatory and Payer Environment: Management views upcoming policy changes—such as pharmaceutical tariffs and the IRA—as manageable risks, with reimbursement mechanisms and diversified sourcing expected to limit financial impact. Whit Mayo (Leerink Partners): Asked about the drivers behind gross profit per script increases. Management cited favorable product and payer mix, procurement efforts, and ongoing generic launches as key factors. Ann Hynes (Mizuho): Inquired about the potential for the IRA to change patient and physician behavior. CFO Jen Phipps responded that meaningful swings are not expected, and any upside from utilization shifts would be incremental. Joanna Gajuk (Bank of America): Questioned whether gross profit per script could continue to rise with more generic launches. Management noted that while product mix can vary, a robust generic pipeline and strong specialty growth support positive trends. David Larsen (BTIG): Sought clarity on the impact of hypothetical pharmaceutical tariffs. CEO Jon Rousseau explained that reimbursement is typically tied to cost, allowing the company to pass on increases, and current inventory levels reduce near-term risk. Brian Tanquilut (Jefferies): Asked if recent M&A activity signals more provider-side acquisitions. Management reiterated a focus on value-accretive, targeted deals and stated leverage targets would not be compromised. In coming quarters, the StockStory team will monitor (1) the pace of new limited distribution drug launches and specialty pharmacy adoption, (2) execution of operational efficiency and cost-saving initiatives, and (3) progress on the community living business divestiture. Developments in regulatory policy, particularly regarding pharmaceutical tariffs and the IRA, will also be closely watched for their potential financial impact. BrightSpring Health Services currently trades at a forward P/E ratio of 37.7×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
07-05-2025
- Business
- Yahoo
UnitedHealth, Amedisys reach new deal to sell home health and hospice locations if merger approved
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Amedisys and UnitedHealth have inked a new deal to sell some home care and hospice centers as the companies work to get their merger over the finish line. The firms have agreed to divest centers to Louisville, Kentucky-based BrightSpring Health Services and Eagle, Idaho-based Pennant Group, Amedisys said in a securities filing last week. Financial terms weren't disclosed, but Pennant said the price for its purchase was $102.5 million in its own filing. The sales are contingent on the closure of UnitedHealth's acquisition of Amedisys, which has been held up by regulators over anticompetitive concerns. Last month, a judge scheduled the companies to go into mediation with the Department of Justice on Aug. 18. Dive Insight: UnitedHealth's health services unit Optum notched the $3.3 billion deal to acquire Amedisys in summer 2023, beating out Option Care Health to buy the Baton Rogue, Louisiana home care provider. But the deal faced a setback late last year when the DOJ sued to block the acquisition, arguing the purchase would allow UnitedHealth to control 30% or more of the home health or hospice market in eight states. The regulator noted the healthcare giant had already acquired Amedisys' competitor LHC Group in 2023. In a bid to appease regulators, UnitedHealth and Amedisys, which deny the DOJ's claims that the merger would negatively impact patients, have moved to divest assets. Last summer, the companies said they would sell some medical centers to VCG Luna, a subsidiary of Texas home health and hospice company VitalCaring Group. However, that deal was scrapped in January, according to a securities filing. Now, the firms are again looking to divest home health and hospice assets, this time to Pennant and BrightSpring. Pennant provides home health and hospice services through more than 120 affiliated agencies, operating in 13 mostly Western states. A Pennant spokesperson said the firm would complete its deal shortly after the UnitedHealth and Amedisys merger closes, though the company can't predict when that could happen. Meanwhile, BrightSpring, which went public early last year, runs home care and pharmacy services in all 50 states. The firm is also fairly acquisitive, completing eight purchases in its provider and pharmacy segments last year, according to a securities filing. During an earnings call last week, BrightSpring CEO Jon Rousseau said the latest purchase is 'very in line with our acquisition philosophy' and the company has 'essentially no geographical overlap' with the locations in the deal.
Yahoo
02-05-2025
- Business
- Yahoo
BrightSpring Health Services (NASDAQ:BTSG) Beats Expectations in Strong Q1, Stock Soars
Healthcare services provider BrightSpring Health Services (NASDAQ:BTSG) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 11.7% year on year to $2.88 billion. The company's full-year revenue guidance of $12.25 billion at the midpoint came in 2.5% above analysts' estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts' consensus estimates. Is now the time to buy BrightSpring Health Services? Find out in our full research report. Revenue: $2.88 billion vs analyst estimates of $2.75 billion (11.7% year-on-year growth, 4.6% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.09 (significant beat) Adjusted EBITDA: $131.1 million vs analyst estimates of $125.6 million (4.6% margin, 4.4% beat) The company lifted its revenue guidance for the full year to $12.25 billion at the midpoint from $11.85 billion, a 3.4% increase EBITDA guidance for the full year is $577.5 million at the midpoint, above analyst estimates of $563.1 million Operating Margin: 1.8%, up from 0.3% in the same quarter last year Free Cash Flow was $83.97 million, up from -$100.7 million in the same quarter last year Market Capitalization: $3.13 billion 'BrightSpring's focus on serving patients with quality and efficient care in home and community settings continues to be foundational to the Company's growth and financial performance,' said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, BrightSpring Health Services grew its sales at an impressive 18.6% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a stretched historical view may miss new innovations or demand cycles. BrightSpring Health Services's annualized revenue growth of 20.9% over the last two years is above its three-year trend, suggesting its demand was strong and recently accelerated. We can dig further into the company's revenue dynamics by analyzing its most important segment, Pharmacy. Over the last two years, BrightSpring Health Services's Pharmacy revenue averaged 30% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company's performance. This quarter, BrightSpring Health Services reported year-on-year revenue growth of 11.7%, and its $2.88 billion of revenue exceeded Wall Street's estimates by 4.6%. Looking ahead, sell-side analysts expect revenue to grow 6.4% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is satisfactory given its scale and indicates the market is forecasting success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. BrightSpring Health Services was profitable over the last five years but held back by its large cost base. Its average operating margin of 2.3% was weak for a healthcare business. Analyzing the trend in its profitability, BrightSpring Health Services's operating margin decreased by 1.7 percentage points over the last five years. A silver lining is that on a two-year basis, its margin has stabilized. We like BrightSpring Health Services and hope it can right the ship. In Q1, BrightSpring Health Services generated an operating profit margin of 1.8%, up 1.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. BrightSpring Health Services's EPS grew at a decent 6.8% compounded annual growth rate over the last three years. However, this performance was lower than its 18.6% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. In Q1, BrightSpring Health Services reported EPS at $0.19, up from $0.12 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects BrightSpring Health Services's full-year EPS of $0.61 to grow 3.8%. We were impressed by how significantly BrightSpring Health Services blew past analysts' EPS expectations this quarter. We were also glad its revenue outperformed Wall Street's estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 6.4% to $19.03 immediately after reporting. BrightSpring Health Services put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
BrightSpring Health Services, Inc. Reports First Quarter 2025 Financial Results and Increases Full Year 2025 Guidance
LOUISVILLE, Ky., May 02, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. ('BrightSpring' or the 'Company') (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, today announced financial results for the first quarter ended March 31, 2025, and increased Revenue and Adjusted EBITDA1 guidance. Financial Highlights(note: all figures exclude the Community Living business) Net Revenue of $2,878 million, up 25.9% compared to $2,286 million in the first quarter of 2024. Net Income from Continuing Operations of $9.2 million, compared to Net Loss from Continuing Operations of $56.0 million in the first quarter of 2024. Adjusted EBITDA1 of $131 million, up 28.2% versus $102 million in the first quarter of 2024. Planned divestiture of Community Living business to Sevita, announced on January 20, 2025, remains on track to be divested this year. Increased 2025 Revenue and Adjusted EBITDA guidance: Revenue: $12,000 - $12,500 million Adjusted EBITDA1: $570 - $585 million 'BrightSpring's focus on serving patients with quality and efficient care in home and community settings continues to be foundational to the Company's growth and financial performance,' said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. 'We are pleased with our first quarter results across the Pharmacy and Provider service lines, as we reach more patients with high-quality solutions, leverage our scaled platform and processes, and invest in best practices and the future. We remain confident in our team's ability to bring timely, coordinated, and impactful services and care to the populations we serve, where they are.' First Quarter 2025 Financial Results (note: all figures exclude the Community Living business) Net Revenue of $2,878 million, up 25.9% compared to $2,286 million in the first quarter of 2024. Gross Profit of $338 million, up 15.7% compared to $292 million in the first quarter of 2024. Net Income from Continuing Operations of $9.2 million, compared to Net Loss from Continuing Operations of $56.0 million in the first quarter of 2024. Adjusted EBITDA1 of $131 million, up 28.2% compared to $102 million in the first quarter of 2024. 1Adjusted EBITDA is a non-GAAP financial measure. Please see 'Non-GAAP Financial Information' and the end of this press release for a reconciliation of Adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. Key Financials (for BrightSpring continuing operations) Three Months Ended March 31, (Unaudited) 2025 2024 % ($ in millions) Pharmacy Solutions Revenue $ 2,532 $ 1,977 28 % Provider Services Revenue 346 309 12 % Total Revenue $ 2,878 $ 2,286 26 % Three Months Ended March 31, (Unaudited) 2025 2024 % ($ in millions) Pharmacy Solutions segment EBITDA $ 116 $ 88 31 % Provider Services segment EBITDA 51 47 9 % Total Segment Adjusted EBITDA $ 167 $ 135 24 % Corporate Costs (36 ) (33 ) - Total Company Adjusted EBITDA(1) $ 131 $ 102 28 % 1Adjusted EBITDA is a non-GAAP financial measure. Please see 'Non-GAAP Financial Information' and the end of this press release for a reconciliation of Adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable financial measure prepared in accordance with GAAP. Full Year 2025 Financial Guidance For the full year 2025, BrightSpring is increasing guidance, which excludes the Community Living business and the effects of any future closed acquisitions. All growth rates are shown as compared to the full year 2024 Revenue and Adjusted EBTIDA results, excluding the Community Living business. Net Revenue of $12,000 million to $12,500 million, or 19.1% to 24.1% growth. Pharmacy Segment Revenue of $10,550 million to $11,000 million, or 20.5% to 25.7% growth. Provider Segment Revenue of $1,450 million to $1,500 million, or 10.0% to 13.8% growth. Adjusted EBITDA2 of $570 million to $585 million, or 23.9% to 27.2% growth. A copy of the Company's first quarter 2025 earnings presentation is available on the Company's investor relations website, 2A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDA to GAAP net income (loss) from continuing operations cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. Webcast and Conference Call Details BrightSpring will host a conference call today, May 2, 2025, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the 'Events & Presentations' section of the BrightSpring website at The Company has posted supplemental financial information on the first quarter 2025 results that it will reference during the conference call. The supplemental information can be found under the 'Events & Presentations' on the Company's investor relations page. About BrightSpring Health Services BrightSpring Health Services provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care. Through the Company's service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive and more integrated care and clinical solutions in all 50 states to over 450,000 customers, clients and patients daily. BrightSpring has consistently demonstrated strong and often industry-leading quality metrics across its services lines while improving the quality of life and health for high-need individuals and reducing overall costs to the healthcare system. Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements may relate to matters which include, but are not limited to, industries, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. In some cases, we have used words such as 'anticipate,' 'assume,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'future,' 'will,' 'seek,' 'foreseeable,' 'target,' 'guidance,' the negative version of these words, or similar terms and phrases to identify these forward-looking statements. The forward-looking statements are based on management's current expectations and are not historical facts or guarantees of future performance. The forward-looking statements relate to the future and are therefore subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: our operation in a highly competitive industry; our inability to maintain relationships with existing patient referral sources or establish new referral sources; changes to Medicare and Medicaid rates or methods governing Medicare and Medicaid payments for our services; cost containment initiatives of third-party payors, including post-payment audits; the implementation of alternative payment models and the transition of Medicaid and Medicare beneficiaries to managed care organizations may limit our market share and could adversely affect our revenues; changes in the case mix of patients, as well as payor mix and payment methodologies, and decisions and operations of third-party organizations; our reliance on federal and state spending, budget decisions, and continuous governmental operations which may fluctuate under different political conditions; changes in drug utilization and/or pricing, PBM contracts, and Medicare Part D/Medicaid reimbursement, which may negatively impact our profitability; changes in our relationships with pharmaceutical suppliers, including changes in drug availability or pricing; reliance on the continual recruitment and retention of nurses, pharmacists, therapists, caregivers, direct support professionals, and other qualified personnel, including senior management; compliance with or changes to federal, state, and local laws and regulations that govern our employment practices, including minimum wage, living wage, and paid time-off requirements; fluctuation of our results of operations on a quarterly basis; harm caused by labor relation matters; limitations in our ability to control reimbursement rates received for our services if we are unable to maintain or reduce our costs to provide such services; delays in collection or non-collection of our accounts receivable, particularly during the business integration process; failure to manage our growth effectively, which may inhibit our ability to execute our business plan, maintain high levels of service and satisfaction or adequately address competitive challenges; our ability to identify, successfully complete and manage acquisitions, joint ventures, and other strategic initiatives, including the pending sale of our Community Living business; our ability to continue to provide consistently high quality of care; maintenance of our corporate reputation or the emergence of adverse publicity, including negative information on social media or changes in public perception of our services; contract continuance, expansion and renewal with our existing customers, including renewals at lower fee levels, customers declining to purchase additional services from us, or reduction in the services received from us pursuant to those contracts; effective investment in, implementation of improvements to and proper maintenance of the uninterrupted operation and data integrity of our information technology and other business systems; security breaches, loss of data, and other disruptions, which could compromise sensitive business or patient information; cause a loss of confidential patient data, employee data or personal information; or prevent access to critical information and thereby expose us to liability, litigation, and federal and state governmental inquiries and damage our reputation and brand; risks related to credit card payments and other payment methods; potential substantial malpractice or other similar claims; various risks related to governmental inquiries, regulatory actions, and whistleblower and other lawsuits, which may not be entirely covered by insurance; our current insurance program, which may expose us to unexpected costs, particularly if we incur losses not covered by our insurance or if claims or losses differ from our estimates; factors outside of our control, including those listed, which have required and could in the future require us to record an asset impairment of goodwill; a pandemic, epidemic, or outbreak of an infectious disease; inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations; and significant changes in tax or trade policies, tariffs, or trade relations between the United States and other countries, such as the imposition of unilateral tariffs on imported products; and our inability to adequately protect our intellectual property rights. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. These factors should not be construed as exhaustive, and should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward- looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. For additional information on these and other factors that could cause BrightSpring's actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the 'SEC'), which are accessible on the SEC's website at Non-GAAP Financial Measures This press release contains 'non-GAAP financial measures,' including 'EBITDA' and 'Adjusted EBITDA,' which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP. EBITDA and Adjusted EBITDA have been presented in this release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also believes that these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses EBITDA and Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish and award discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. EBITDA and Adjusted EBITDA are not GAAP measures of our financial performance and should not be considered as an alternative to net income (loss) as a measure of financial performance or any other performance measures derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use as they do not consider certain cash requirements such as tax payments, debt service requirements, total capital expenditures, and certain other cash costs that may recur in the future. Management defines EBITDA as net income (loss) from continuing operations before income tax benefit, interest expense, net and depreciation and amortization. Management also defines Adjusted EBITDA as EBITDA, further adjusted to exclude non-cash share-based compensation, acquisition, integration and transaction-related costs, restructuring and divestiture-related and other costs, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, and management fees. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see the end of this press release for reconciliations of non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP. BrightSpring Contact: David Deuchler, CFAGilmartin Group LLCir@ Leigh BrightSpring Health Services, Inc. and SubsidiariesConsolidated Balance SheetsMarch 31, 2025 and December 31, 2024(In thousands, except share and per share data)(Unaudited) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 52,337 $ 60,954 Accounts receivable, net of allowance for credit losses 975,264 902,782 Inventories 533,637 636,561 Prepaid expenses and other current assets 131,027 161,310 Current assets held for sale 836,183 131,447 Total current assets 2,528,448 1,893,054 Property and equipment, net of accumulated depreciation of $355,623 and $339,892 at March 31, 2025 and December 31, 2024, respectively 177,228 180,570 Goodwill 2,370,024 2,363,884 Intangible assets, net of accumulated amortization 568,284 595,224 Operating lease right-of-use assets, net 162,371 161,032 Deferred income taxes, net 2,311 5,288 Other assets 38,279 39,128 Non-current assets held for sale — 687,960 Total assets $ 5,846,945 $ 5,926,140 Liabilities, Redeemable Noncontrolling Interest, and Equity Current liabilities: Trade accounts payable $ 868,080 $ 923,926 Accrued expenses 302,590 295,746 Current portion of obligations under operating leases 38,687 38,910 Current portion of obligations under financing leases 3,287 3,463 Current portion of long-term debt 48,725 48,725 Current liabilities held for sale 196,248 117,563 Total current liabilities 1,457,617 1,428,333 Obligations under operating leases, net of current portion 130,360 129,467 Obligations under financing leases, net of current portion 6,477 6,530 Long-term debt, net of current portion 2,489,339 2,561,858 Long-term liabilities 72,585 71,190 Non-current liabilities held for sale — 77,177 Total liabilities 4,156,378 4,274,555 Redeemable noncontrolling interest 3,323 3,730 Shareholders' equity: Common stock, $0.01 par value, 1,500,000,000 shares authorized, 175,183,434 and 174,245,990 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively $ 1,752 $ 1,742 Preferred stock, $0.01 par value, 250,000,000 authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024 — — Additional paid-in capital 1,880,099 1,866,850 Accumulated deficit (192,613 ) (222,155 ) Accumulated other comprehensive (loss) income (1,869 ) 1,418 Total shareholders' equity 1,687,369 1,647,855 Noncontrolling interest (125 ) — Total equity 1,687,244 1,647,855 Total liabilities, redeemable noncontrolling interest, and equity $ 5,846,945 $ 5,926,140 BrightSpring Health Services, Inc. and SubsidiariesConsolidated Statements of OperationsFor the three months ended March 31, 2025 and 2024(In thousands, except per share amounts)(Unaudited) For the Three Months Ended March 31, 2025 2024 Revenues: Products $ 2,532,171 $ 1,977,035 Services 345,958 308,731 Total revenues 2,878,129 2,285,766 Cost of goods 2,328,215 1,807,100 Cost of services 211,545 186,175 Gross profit 338,369 292,491 Selling, general, and administrative expenses 287,630 307,826 Operating income (loss) 50,739 (15,335 ) Loss on extinguishment of debt — 12,726 Interest expense, net 41,763 54,470 Income (loss) from continuing operations before income taxes 8,976 (82,531 ) Income tax benefit (240 ) (26,504 ) Income (loss) from continuing operations, net of income taxes 9,216 (56,027 ) Income from discontinued operations, net of income taxes 19,794 9,642 Net income (loss) 29,010 (46,385 ) Net loss attributable to noncontrolling interests included in continuing operations (532 ) (635 ) Net income (loss) attributable to BrightSpring Health Services, Inc. and subsidiaries $ 29,542 $ (45,750 ) Net income (loss) per common share: Basic income (loss) per share attributable to common shareholders: Continuing operations $ 0.05 $ (0.31 ) Discontinued operations $ 0.10 $ 0.05 Net income (loss) $ 0.15 $ (0.26 ) Diluted income (loss) per share attributable to common shareholders: Continuing operations $ 0.05 $ (0.31 ) Discontinued operations $ 0.09 $ 0.05 Net income (loss) $ 0.14 $ (0.26 ) Weighted average shares outstanding: Basic 201,005 175,531 Diluted 214,927 175,531 BrightSpring Health Services, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the three months ended March 31, 2025 and 2024(In thousands)(Unaudited) For the Three Months Ended March 31, 2025 2024 Operating activities: Net income (loss) $ 29,010 $ (46,385 ) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Depreciation and amortization 42,161 48,922 Impairment of long-lived assets 3,411 1,769 Change in fair value of contingent consideration, net 1,698 — Provision for credit losses 8,101 6,622 Amortization of deferred debt issuance costs 2,749 4,447 Share-based compensation 15,681 24,848 Deferred income taxes, net 4,031 (31,732 ) Loss on extinguishment of debt — 12,726 (Gain) loss on disposition of fixed assets (287 ) 122 Other 161 (312 ) Change in operating assets and liabilities, net of acquisitions and dispositions: Accounts receivable (79,449 ) (115,576 ) Prepaid expenses and other current assets 23,973 8,916 Inventories 103,300 30,485 Trade accounts payable (53,871 ) 21,605 Accrued expenses 8,643 (43,430 ) Other assets and liabilities (7,714 ) (1,886 ) Net cash provided by (used in) operating activities $ 101,598 $ (78,859 ) Investing activities: Purchases of property and equipment $ (17,632 ) $ (21,816 ) Acquisitions of businesses (6,754 ) (9,394 ) Other 195 272 Net cash used in investing activities $ (24,191 ) $ (30,938 ) Financing activities: Long-term debt borrowings $ — $ 2,566,000 Long-term debt repayments (11,792 ) (3,359,353 ) Proceeds from issuance of common stock on initial public offering, net — 656,485 Proceeds from issuance of tangible equity units, net — 389,000 Repayments of the Revolving Credit Facility, net (63,300 ) (50,700 ) Payment of debt issuance costs — (42,963 ) Repurchase of shares of common stock — (325 ) Proceeds from shares issued under share-based compensation plan 345 — Taxes paid related to net share settlement of equity awards (2,763 ) — Purchase of redeemable noncontrolling interest (5,100 ) (300 ) Payment of financing lease obligations (3,408 ) (3,081 ) Net cash (used in) provided by financing activities $ (86,018 ) $ 154,763 Net (decrease) increase in cash and cash equivalents (8,611 ) 44,966 Cash and cash equivalents at beginning of period 61,253 13,071 Cash and cash equivalents at end of period $ 52,642 $ 58,037 Cash and cash equivalents included in assets held for sale at end of period 305 2,494 Cash and cash equivalents included in continuing operations at end of period $ 52,337 $ 55,543 BrightSpring Health Services, Inc. and SubsidiariesReconciliation of EBITDA and Adjusted EBITDAFor the three months ended March 31, 2025 and 2024(Unaudited) The following table reconciles net income (loss) from continuing operations to EBITDA and Adjusted EBITDA: ($ in thousands) For the Three Months Ended March 31, 2025 2024 Net income (loss) from continuing operations $ 9,216 $ (56,027 ) Income tax benefit (240 ) (26,504 ) Interest expense, net 41,763 54,470 Depreciation and amortization 40,832 39,236 EBITDA $ 91,571 $ 11,175 Non-cash share-based compensation (1) 12,474 23,586 Acquisition, integration, and transaction-related costs (2) 9,521 8,541 Restructuring and divestiture-related and other costs (3) 17,496 23,899 Legal costs and settlements (4) — 10,473 Significant projects (5) — 1,160 Management fee (6) — 23,381 Total adjustments $ 39,491 $ 91,040 Adjusted EBITDA $ 131,062 $ 102,215 (1) Represents non-cash share-based compensation to certain members of our management and full-time employees. The three months ended March 31, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, a portion of which vested upon completion of the IPO. (2) Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions. (3) Represents costs associated with restructuring-related activities, including closure, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs include $10.0 million and $6.1 million of costs that did not meet the criteria for discontinued operations related to the Community Living divestiture for the three months ended March 31, 2025 and 2024, respectively. These costs also include $12.7 million of unamortized debt issuance costs associated with the extinguishment of our Second Lien Facility in the three months ended March 31, 2024. (4) Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which were finalized in 2024. See Note 13 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for additional information. (5) Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation, pharmacy billing system implementation, and ransomware attack response costs, all of which were finalized in 2024. (6) Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and $22.7 million of termination fees resulting from the termination of the Monitoring Agreement upon completion of the IPO Offerings. All management fees ceased following the completion of the IPO in 2024. BrightSpring Health Services, Inc. and SubsidiariesReconciliation of Adjusted EPSFor the three months ended March 31, 2025 and 2024(Unaudited) The following table reconciles diluted EPS to Adjusted EPS: (shares in thousands) For the Three Months Ended March 31, 2025 2024 Diluted EPS from continuing operations $ 0.05 $ (0.31 ) Non-cash share-based compensation (1) 0.06 0.13 Acquisition, integration, and transaction-related costs (1) 0.04 0.05 Restructuring and divestiture-related and other costs (1) 0.08 0.13 Legal costs and settlements (1) — 0.06 Significant projects (1) — 0.01 Management fee (1) — 0.13 Income tax impact on adjustments (2) (0.04 ) (0.11 ) Adjusted EPS $ 0.19 $ 0.09 Weighted average common shares outstanding used in calculating diluted U.S. GAAP net income (loss) per share 214,927 175,531 Weighted average common shares outstanding used in calculating diluted Non-GAAP income (loss) per share 214,927 186,783 (1) This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA. (2) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment.
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29-03-2025
- Business
- Yahoo
A Look Back at Senior Health, Home Health & Hospice Stocks' Q4 Earnings: BrightSpring Health Services (NASDAQ:BTSG) Vs The Rest Of The Pack
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at BrightSpring Health Services (NASDAQ:BTSG) and its peers. The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success. The 7 senior health, home health & hospice stocks we track reported a strong Q4. As a group, revenues beat analysts' consensus estimates by 2%. Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results. Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. BrightSpring Health Services reported revenues of $3.05 billion, up 28.6% year on year. This print exceeded analysts' expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts' EPS estimates but full-year EBITDA guidance missing analysts' expectations. 'In 2024, BrightSpring's focus on quality and third-party satisfaction scores, growth in customers and patients served, and efficiency and best practices across the organization resulted in another excellent year of both operational and financial performance,' said Jon Rousseau, Chairman, President and Chief Executive Officer of the Company. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $18.52. Read our full report on BrightSpring Health Services here, it's free. With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States. Option Care Health reported revenues of $1.35 billion, up 19.7% year on year, outperforming analysts' expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts' full-year EPS guidance estimates. Option Care Health delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $34.91. Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it's free. With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities. Brookdale reported revenues of $780.9 million, up 3.5% year on year, in line with analysts' expectations. It was a slower quarter as it posted a significant miss of analysts' EPS estimates. Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.5% since the results and currently trades at $5.92. Read our full analysis of Brookdale's results here. Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals. Addus HomeCare reported revenues of $297.1 million, up 7.5% year on year. This number topped analysts' expectations by 2.7%. It was a very strong quarter as it also logged an impressive beat of analysts' sales volume estimates and a decent beat of analysts' EPS estimates. The stock is down 9.9% since reporting and currently trades at $98. Read our full, actionable report on Addus HomeCare here, it's free. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $856.6 million, flat year on year. This result beat analysts' expectations by 3.3%. Overall, it was a strong quarter as it also produced a solid beat of analysts' EPS estimates and full-year EBITDA guidance slightly topping analysts' expectations. AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 24.7% since reporting and currently trades at $10.66. Read our full, actionable report on AdaptHealth here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. 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