Have you been paying attention to shares of Aveanna Healthcare (AVAH) ? Shares have been on the move with the stock up 37.4% over the past month. The stock hit a new 52-week high of $6.2 in the previous session. Aveanna has gained 27.1% since the start of the year compared to the -8.1% move for the Zacks Medical sector and the 0.3% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it ...

Aveanna Healthcare (AVAH) Q2 2025 Earnings Call August 07, 2025 10:00 AM ET Speaker0Good morning, and welcome to Aviana Healthcare Holdings Second Quarter twenty twenty five Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q and A. At this time, I'd like to turn the call over to Debbie Stewart, Aviana's Chief Accounting Officer. Thank you. You may begin.Speaker1Good morning, and welcome to Aviana's second quarter twenty twenty five earnings ca ...

Exhibit 99.1 AVEANNA HEALTHCARE HOLDINGS ANNOUNCES SECOND QUARTER FINANCIAL RESULTS AND REVISED 2025 OUTLOOK Atlanta, Georgia (August 7, 2025) – Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations, today announced financial results for the three and six-month periods ended June 28, 2025. Jeff Shaner, Chief Executive Officer, commented, "Our second quarter results reflect the continued positiv ...

Second Quarter Revenue was $589.6 million, a 16.8% increase over the prior year periodSecond Quarter Net income was $27.0 million, a 94.3% increase over the prior year periodAdjusted EBITDA for Q2 2025 was $88.4 million, a 93.6% increase over the prior year periodIncreased Full Year 2025 Revenue guidance greater than $2.3 billion, updated from greater than $2.15 billion Increased Full Year 2025 Adjusted EBITDA guidance greater than $270 million, updated from greater than $207 million ATLANTA, Aug. 07, 2025 ...

Company Announcement - Aveanna Healthcare Holdings Inc. will release its second quarter results before the market opens on August 7, 2025 [1] - A conference call will follow at 10:00 a.m. (Eastern Time) on the same day [1] Conference Call Details - The conference call can be accessed by dialing 1-877-407-0789 for domestic callers and 1-201-689-8562 for international callers [2] - A replay of the call will be available three hours after it concludes, accessible at 1-844-512-2921 for domestic and 1-412-317-6671 for international callers, with a passcode of 13754011 [2] - The replay will be available until August 14, 2025 [2] Webcast Information - Interested parties can listen to a simultaneous webcast of the conference call via the Investor Relations section of the company's website [3] - The online replay will be available for one week following the call [3] Company Overview - Aveanna Healthcare is headquartered in Atlanta, Georgia, and operates in 36 states, providing a wide range of pediatric and adult healthcare services [4] - Services include nursing, rehabilitation, occupational nursing in schools, therapy services, day treatment centers, home health and hospice services, and delivery of enteral nutrition [4] - The company also offers case management services to coordinate care among insurers, physicians, hospitals, and other providers, as well as respite healthcare services for caregivers [4] - The services aim to provide high-quality, lower-cost alternatives to prolonged hospitalization [4]

Investor Presentation May 2025 Disclaimers and Forward-Looking Statements This investor presentation (this "presentation") and any oral statements made in connection with this presentation are for information purposes only and do not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other securities of Aveanna Healthcare Holdings Inc. (including its consolidated subsidiaries, "Aveanna," the "Company," "we," "us" or "our"). The information con ...

Core Viewpoint - Aveanna Healthcare Holdings Inc. has completed the acquisition of Thrive Skilled Pediatric Care, enhancing its position in the pediatric home care market and expanding its service offerings into new states [1][2][3]. Company Overview - Aveanna Healthcare is a diversified home care platform providing services to medically complex, high-cost patient populations, with a presence in 36 states [7]. - The company offers a wide range of healthcare services, including nursing, rehabilitation, therapy, and case management, aimed at providing high-quality, lower-cost alternatives to prolonged hospitalization [7]. Acquisition Details - Thrive SPC is one of the largest independent providers of pediatric home care, operating 23 locations across seven states [2]. - The acquisition is expected to create significant growth opportunities for Aveanna, reinforcing its commitment to clinical excellence and compassionate care [3]. - The deal was financed through a combination of common stock and cash [3]. Strategic Implications - The integration of Thrive SPC is anticipated to enhance Aveanna's existing footprint and introduce its specialized care model into two new states [2][3]. - The acquisition aligns with Aveanna's strategic mission to lead in delivering high-quality care while providing value and clinical innovation to payors and stakeholders [3]. Advisory and Legal Support - Edge Healthcare Partners acted as the financial advisor for Aveanna, while Cantor Fitzgerald & Co. served as the financial advisor for Thrive SPC [4]. - Legal counsel for Aveanna was provided by Bass, Berry & Sims, and Ropes & Gray LLP represented Thrive SPC [4].

Summary of Aviana Healthcare Conference Call Company Overview - **Company**: Aviana Healthcare - **Industry**: Healthcare Services and Managed Care Key Points and Arguments Focus on Home Healthcare - Aviana Healthcare emphasizes its commitment to home healthcare, viewing it as the preferred setting for patients to receive care, especially in light of macro and microeconomic factors affecting the healthcare landscape in 2025 [3][4][5] - The company believes it is well-positioned to benefit from ongoing discussions around Medicaid and Medicare, with a focus on maintaining the integrity of these programs while achieving savings for the federal government [4][5] Medicaid and Legislative Environment - There has been a positive bipartisan dialogue regarding Medicaid, which is seen as beneficial for Aviana's operations [7] - The company feels insulated from potential cuts to Medicaid due to its patient mix and the nature of its services [8] - Uncertainty in state legislative processes has created challenges, but Aviana expects clarity by late summer or early fall [10] Government Affairs Strategy - Aviana's government affairs strategy is split between protecting Medicaid rate integrity and achieving rate increases [12][13] - The company aims for more than 10 Medicaid rate wins in 2025, with a strong start already achieved [13] - The preferred payer strategy is gaining momentum, with a goal of reaching 30 preferred payers in the PDS segment [14][17] Financial Performance - Aviana reported a strong Q1 with a 6.1% year-over-year volume growth and a 16.5% revenue growth in the PDS division [27] - The company is focused on reinvesting revenue into caregiver wages to attract more talent [27] - There was a notable influx in reimbursements, contributing to a strong financial performance in Q1 [30] Home Health and Hospice Business - Aviana maintains a disciplined approach to its home health business, with a focus on episodic care, achieving 77% episodic episodes in the last quarter [44] - The company aims for a total revenue growth of 35% in the near term, with a long-term target of 5-7% growth [46] Capital Allocation Strategy - Aviana is focused on generating free cash flow and plans to allocate capital towards M&A opportunities, such as the acquisition of Thrive, which aligns with its business model [56][61] - The company has successfully deleveraged, targeting a leverage ratio below five turns in the next year and a half [59] Challenges in California - California remains a challenge due to low Medicaid reimbursement rates, which have hindered staffing efforts [35][36] - Aviana continues to advocate for better rates in California while growing its business in other states [42] Clinical Innovations - Aviana is investing in clinical innovations, which have led to improved clinical outcomes and reduced hospitalizations [22] - The company is focused on maintaining high standards of care while ensuring financial viability [52][53] Additional Important Content - The company is experiencing pent-up demand for caregivers, which is being addressed through strategic hiring and investment in caregiver wages [28] - Aviana's payer partners are increasingly recognizing the value of its clinical capabilities, which enhances its negotiating position [22][21] This summary encapsulates the key insights from the Aviana Healthcare conference call, highlighting the company's strategic focus, financial performance, and industry challenges.

Summary of Aviana Healthcare Conference Call Company Overview - **Company**: Aviana Healthcare - **Industry**: Home Care Services - **CEO**: Jeff Shaner - **CFO**: Matt Buckhalter - **Key Focus**: Strategic transformation and growth in home care services, including pediatric, adult, and geriatric care [3][5] Core Insights and Arguments - **Market Position**: Aviana is a leading national provider of home care services with over 340 locations across 34 states, serving over 80,000 patients weekly [4][6] - **Growth Strategy**: The company aims to enhance partnerships with government and preferred payers, identify cost efficiencies, modernize medical solutions, manage capital structure, and engage employees [10][12][13] - **Revenue Growth**: Aviana expects 2025 revenue to exceed $2.15 billion and adjusted EBITDA to exceed $207 million, reflecting a strong growth trajectory [8] - **Preferred Payer Agreements**: The goal is to increase preferred payer agreements from 22 to 30 by 2025, with a current mix of 54% in managed care organization volumes [14][15] - **Episodic Payer Mix**: The company aims to maintain an episodic payer mix above 70%, achieving 77% in Q1 2025 [19] Financial Performance - **Q1 Financials**: Revenues rose 14% year-over-year, with private duty services leading at 16.5% organic growth [27] - **Adjusted EBITDA**: Increased by 93.1% year-over-year to $67.4 million, driven by payer relations and government affairs strategies [28] - **Capital Structure**: Maintains liquidity of over $260 million and has $1.47 billion in variable rate debt, mostly hedged [29][30] Strategic Initiatives - **Acquisition Plans**: Recently announced plans to acquire Thrive Skilled Pediatric Care, expanding pediatric services into New Mexico and Kansas [6][7] - **Value-Based Agreements**: Focus on enhancing reimbursement rates and adding value-based agreements to improve clinical outcomes and attract caregivers [16] - **Legislative Advocacy**: Aiming to improve reimbursement rates in at least 10 states and advocate for Medicaid rate integrity for children with complex medical conditions [17][18] Additional Important Points - **Demand for Services**: The industry does not face a demand problem, with strong interest from state and federal governments for home and community-based care solutions [13] - **Long-Term Outlook**: Aviana is optimistic about its future, emphasizing cost-effective, patient-preferred solutions that align with payer and government interests [22][31]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $559 million, representing a 14% increase over the prior year period [5][18] - Adjusted EBITDA for Q1 2025 was $67.4 million, reflecting a 93.1% increase year-over-year, primarily due to improved pay rates and cost-saving initiatives [5][18] - Consolidated gross margin was $183.6 million, or 32.8% [18] Business Line Data and Key Metrics Changes - Private Duty Services (PDS) revenue was approximately $460 million, a 16.5% increase, driven by 10.9 million hours of care, a volume increase of 6.1% [19] - Home Health and Hospice revenue was approximately $56.7 million, a 3.9% increase, with 77% of admissions being episodic [20][21] - Medical Solutions revenue was $42.5 million, a 3.6% increase, with revenue per unique patient served at approximately $477, up 6.9% [23] Market Data and Key Metrics Changes - Preferred payer agreements accounted for approximately 54% of total PDS Managed Care Organization (MCO) volumes, up from 50% in the previous quarter [11] - The company aims to increase the number of PDS preferred payer agreements from 22 to 30 by the end of 2025 [10] Company Strategy and Development Direction - The company is focusing on five primary strategic initiatives: enhancing partnerships with government and preferred payers, identifying cost efficiencies, modernizing the medical solutions business, managing capital structure, and engaging employees [15] - The company anticipates 2025 revenue to exceed $2.15 billion and adjusted EBITDA to exceed $207 million, reflecting an improved outlook [16][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the labor environment remains a primary challenge, but demand for home and community-based care continues to be strong [7] - The company is optimistic about achieving its legislative goals for reimbursement rate improvements in at least 10 states [9] - Management expressed confidence in the continued positive momentum from preferred payer agreements and rate enhancements [14] Other Important Information - The company is on track to close the acquisition of ThriveSkilled Pediatrics, which is expected to enhance its preferred payer and government affairs strategies [16][60] - The company reported liquidity of approximately $266 million at the end of Q1 2025, providing room for operational investments [26] Q&A Session Summary Question: Update on targeted states for rate increases and preferred payers - Management reported five government affairs rate increases and two preferred payer wins in Q1, with expectations to achieve 10 GA rate increases by year-end [31][32] Question: Insights on operating cash flow and EBITDA conversion - Management indicated that Q1 cash outflow was better than anticipated, with expectations for operating cash flow to improve throughout 2025 [35] Question: Details on one-time EBITDA benefits - Management highlighted strong cash collections and retro rate increases contributing to an $11 million EBITDA benefit in Q1 [40][41] Question: Contribution of Thrive acquisition to revenue and earnings - Management stated that the Thrive acquisition aligns with the company's cultural and strategic goals, but it has not yet been included in guidance due to timing [56][60] Question: Updates on Medicaid policy and advocacy efforts - Management noted positive bipartisan support for Medicaid program integrity and ongoing discussions with federal counterparts [62][64] Question: Size of rate enhancements and outlook for wage increases - Management clarified that the five government affairs rate wins were meaningful, with expectations for future GA rate increases to be in the single digits [68][70]