Revenue Performance - Revenue for Q4 2024 was $519.9 million, an increase of 8.6% compared to $478.8 million in Q4 2023[4] - Full year 2024 revenue reached $2,024.5 million, a 6.8% increase from $1,895.2 million in 2023[8] - Revenue for the three-month period ended December 28, 2024, was $519,872,000, an increase of 8.6% compared to $478,841,000 for the same period in 2023[35] - Total revenue for the fiscal year ended December 28, 2024, was $1,634,609, up 7.6% from $1,518,811 in 2023[38] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $55.2 million, representing a 42.8% increase from $38.7 million in Q4 2023[7] - Adjusted EBITDA for the three-month period ended December 28, 2024, was $55,208, compared to $38,663 in the same period of 2023[40] - Net income for Q4 2024 was $29.2 million, compared to a net loss of $25.7 million in Q4 2023[6] - Net income for the fiscal year ended December 28, 2024, was $29,180,000, compared to a net loss of $134,524,000 for the fiscal year ended December 30, 2023[35] - Adjusted net income for the fiscal year ended December 28, 2024, was $12,522,000, an improvement from a loss of $20,630,000 in the previous fiscal year[44] Cash Flow and Debt - Cash provided by operating activities for 2024 was $32.6 million, with free cash flow of $25.7 million[15] - Cash and cash equivalents at the end of the period increased to $84,288,000 from $43,942,000 at the beginning of the period[34] - As of December 28, 2024, the company had bank debt of $1,474.3 million, with interest rate exposure hedged through $520.0 million in interest rate swaps and $880.0 million in interest rate caps[15] - Total indebtedness as of December 28, 2024, was $1,474,300,000, with a significant portion attributed to the 2021 Extended Term Loan at an interest rate of S + 3.75%[34] Segment Performance - PDS segment revenue for the three-month period ended December 30, 2024, was $422,191, a 10.1% increase from $383,446 in the same period of 2023[37] - Gross margin for the PDS segment increased to $123,631, representing a 19.4% growth compared to $103,576 in the prior year[37] - HHH segment revenue for the three-month period ended December 30, 2024, was $54,423, a slight increase of 0.6% from $54,103 in the same period of 2023[37] Operational Metrics - Gross margin for Q4 2024 was $171.7 million, or 33.0% of revenue, up from $148.4 million, or 31.0% of revenue in Q4 2023[5] - Gross margin for the fiscal year 2024 was $444,461, a 4.9% increase from $423,720 in 2023[38] - Gross margin percentage for the fiscal year ended December 28, 2024, remained stable at 31.4% compared to the previous year[36] - Field contribution for the three-month period ended December 28, 2024, was $82,978,000, reflecting a 35.1% increase from $61,437,000 in the same period of 2023[36] Corporate Expenses and Adjustments - Corporate expenses for the fiscal year ended December 28, 2024, were $125,402,000, an increase of 10.9% from $113,034,000 in 2023[36] - Corporate expenses for the fiscal year ended December 28, 2024, increased to $18,443,000 from $15,388,000 in 2023[47] - Acquisition-related costs for the three-month period ended December 28, 2024, were $1,340,000, compared to no costs in the same period of 2023[47] - Total adjustments for the three-month period ended December 28, 2024, amounted to $(14,314,000), while for the fiscal year, it was $27,625,000[44] Shareholder Metrics - Adjusted net income per diluted share for Q4 2024 was $0.05, compared to an adjusted net loss per diluted share of $(0.02) in Q4 2023[6] - The weighted average shares outstanding, diluted, for the fiscal year ended December 28, 2024, was 199,349,000, compared to 189,956,000 in 2023[41]

Core Insights - Aveanna Healthcare Holdings Inc. reported strong financial results for the fourth quarter and fiscal year ended December 28, 2024, with significant growth in revenue and adjusted EBITDA, indicating a successful transformation year for the company [2][9]. Financial Performance - For the fourth quarter of 2024, revenue reached $519.9 million, an increase of 8.6% from $478.8 million in the same period of 2023, driven primarily by growth in the Private Duty Services segment [3][9]. - Adjusted EBITDA for the fourth quarter was $55.2 million, representing a 42.8% increase compared to $38.7 million in the fourth quarter of 2023 [6][9]. - The fiscal year 2024 revenue totaled $2,024.5 million, up 6.8% from $1,895.2 million in fiscal year 2023, with adjusted EBITDA increasing by 31.9% to $183.6 million [7][11]. Profitability Metrics - Gross margin for the fourth quarter was $171.7 million, or 33.0% of revenue, compared to $148.4 million, or 31.0% of revenue, in the prior year, reflecting a 15.7% increase [4][9]. - The company achieved net income of $29.2 million in the fourth quarter of 2024, a turnaround from a net loss of $25.7 million in the same quarter of 2023 [5][9]. - For the fiscal year 2024, the net loss was reduced to $10.9 million from a loss of $134.5 million in fiscal year 2023, with adjusted net income per diluted share improving to $0.06 from a loss of $(0.11) [10][11]. Segment Performance - The Private Duty Services segment saw revenue increase by $38.7 million in the fourth quarter, while the Medical Solutions segment contributed an additional $2.0 million [3][7]. - The Home Health & Hospice segment experienced a slight revenue increase of $0.3 million, indicating stable performance [3]. Guidance and Future Outlook - The company provided guidance for fiscal year 2025, projecting revenue between $2.10 billion and $2.12 billion, and adjusted EBITDA between $190 million and $194 million [9][14]. - Management emphasized the focus on enhancing government and payor partnerships and leveraging their care platform to deliver high-quality, cost-effective care [2][13].

Industry Overview - The healthcare sector is experiencing growth due to technological advancements and increasing demand for medical services, leading to potential strong earnings growth in 2025 and beyond [1] - Rising healthcare expenditures, an aging population, and increasing disease prevalence are key factors driving this growth [1] Opportunities and Challenges - The sector faces both opportunities and challenges as 2025 approaches, with demographic trends and medical innovation supporting long-term growth, while potential government spending cuts and reduced funding create uncertainty [2] - Companies like Gilead Sciences, Option Care Health, and Aveanna Healthcare are highlighted as strong investment opportunities due to their resilience and impressive earnings surprise history [2] Gilead Sciences (GILD) - Gilead Sciences is a leader in the HIV market, known for its single-tablet regimen and significant market share [4] - The stock is trading near its 52-week high of $117.39, with a forward earnings ratio of 14.55X, significantly below the industry average of 45.36X [5] - The Zacks Consensus Estimate for GILD's 2025 earnings is $7.86 per share, reflecting a 70.1% year-over-year growth, with revenues projected at $28.55 billion [7] Option Care Health (OPCH) - Option Care Health specializes in home and alternate site infusion services, focusing on chronic and acute conditions [9] - The stock is close to its 52-week high of $34.85, with a forward earnings ratio of 22.46X, below its five-year median of 29.83X, indicating potential for further upside [10] - The Zacks Consensus Estimate for its 2025 earnings is $1.70 per share, indicating a 38.2% year-over-year growth, with revenues expected to increase by 8.3% [11] Aveanna Healthcare (AVAH) - Aveanna Healthcare operates as a diversified home care platform, allowing patients to receive care at home, which reduces reliance on costly hospital stays [12] - Analysts expect Aveanna to achieve and maintain profitability, supported by cost-reduction strategies and strategic partnerships [13] - The Zacks Consensus Estimate for Aveanna's 2024 earnings is 1 cent per share, indicating a 109.1% year-over-year improvement, with a projected jump to 7 cents per share in 2025 [15]

Company Announcement - Aveanna Healthcare Holdings Inc. will release its fourth quarter and full year results on March 13, 2025, before the market opens [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 13750192 [2] - The replay will be available until March 20, 2025 [2] Webcast Information - Interested parties can listen to a simultaneous webcast of the conference call on 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 33 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 enteral nutrition delivery [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] - Aveanna's services aim to provide high-quality, lower-cost alternatives to prolonged hospitalization [4]

ATLANTA, Dec. 23, 2024 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. ("Aveanna") (NASDAQ:AVAH) today announced that its management team will attend the 43rd Annual J.P. Morgan Healthcare Conference in San Francisco on January 15, 2025. Management will present at 10:30 a.m. PST followed by 1x1 investor meetings on the same day, January 15, 2025. Interested investors and other parties may also listen to a simultaneous webcast of the presentation by logging onto the Investor Relations section of the Com ...

Aveanna Healthcare (AVAH) has been on a downward spiral lately with significant selling pressure. After declining 17.6% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was approximately $509 million, representing a 6.5% increase over the prior year period [7] - Adjusted EBITDA for Q3 was $47.8 million, reflecting a 32.2% increase year-over-year due to improved payer rates and cost reduction efforts [7][35] - Consolidated gross margin was $159.7 million or 31.4% [35] Business Line Data and Key Metrics Changes - Private Duty Services (PDS) revenue was approximately $409 million, a 6.4% increase driven by 10.5 million hours of care, a volume increase of 3.8% [34][36] - Home Health & Hospice segment revenue was approximately $54.1 million, a 2.2% increase, with 76% of admissions being episodic [39][40] - Medical Solutions segment revenue was $45.3 million, a 12.6% increase, with gross margins at approximately 45.6% [43][44] Market Data and Key Metrics Changes - Preferred payer agreements accounted for approximately 47% of total PDS MCO volumes, up from 45% in Q2 [21] - The episodic payer mix was 76% in Q3, exceeding the goal of maintaining it above 70% [22] Company Strategy and Development Direction - The company is focused on enhancing partnerships with government and preferred payers to create additional caregiver capacity [29] - Strategic initiatives include identifying cost efficiencies, managing capital structure, and engaging employees [29] - The company plans to implement a preferred payer strategy in the Medical Solutions segment by the end of 2025 [25] Management's Comments on Operating Environment and Future Outlook - Management noted that the labor environment remains challenging but is showing signs of improvement [10][47] - The company expects full year 2024 revenue to be approximately $2 billion and adjusted EBITDA to exceed $168 million [30][52] - Management expressed optimism about the continued positive momentum in rate increases and preferred payer agreements [66] Other Important Information - The company has secured 12 state rate increases year-to-date and expects more in early 2025 [13] - Liquidity at the end of Q3 was approximately $285 million, providing room for operational and growth investments [48][49] Q&A Session Summary Question: Progress on preferred payer relationships in home health - Management indicated they are in the later stages of developing these relationships and expect continued growth in episodic volume [55] Question: Thoughts on final Home Health rules and budget neutrality - Management expressed disappointment in CMS's lack of action but noted their model remains successful under current reimbursement structures [61] Question: Pricing increases and labor market outlook for 2025 - Management highlighted positive momentum from rate increases and improvements in the labor market, with expectations for continued growth [64][66] Question: Sustainability of free cash flow generation - Management noted Q3 is typically a high period for cash flow and expects to remain a positive free cash flow company for 2024 [75] Question: Cost savings initiatives and margin outlook - Management stated that most cost reduction efforts are complete, with a focus now on Medical Solutions for further efficiencies [83] Question: Hiring trends in Georgia and Massachusetts - Management reported significant improvements in hiring and case fill rates in Georgia following rate increases [88][90] Question: Geographic expansion and M&A plans - Management confirmed plans to reenter the M&A market in 2025, focusing on Private Duty Services and Home Health & Hospice [93]

Aveanna Healthcare (AVAH) reported $509.02 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.5%. EPS of $0.02 for the same period compares to -$0.03 a year ago.The reported revenue represents a surprise of +2.67% over the Zacks Consensus Estimate of $495.8 million. With the consensus EPS estimate being -$0.01, the EPS surprise was +300.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compar ...

Group 1 - Aveanna Healthcare reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.03 per share a year ago, resulting in an earnings surprise of 300% [1] - The company achieved revenues of $509.02 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.67% and increasing from $478.01 million in the same quarter last year [2] - Aveanna has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Group 2 - Since the beginning of the year, Aveanna shares have increased by approximately 79.5%, significantly outperforming the S&P 500's gain of 24.3% [3] - The future performance of Aveanna's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [4][6] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $499.84 million, while for the current fiscal year, it is -$0.03 on revenues of $1.99 billion [7] Group 3 - The Medical - Outpatient and Home Healthcare industry, to which Aveanna belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Third Quarter Revenue was $509.0 million, a 6.5% increase compared to $478.0 million in the prior year period[1] - Revenue for the three-month period ended September 28, 2024, was $509,023, an increase of 6.5% compared to $478,010 for the same period in 2023[29] - Revenue for the nine-month period ended September 28, 2024, reached $1,212,418,000, a 6.8% increase from $1,135,365,000[35] - Revenue for the three-month period in the UPS segment was $45,326,000, a 12.6% increase from $40,271,000[34] - Revenue per completed episode in home health increased to $3,104, up from $3,046, marking a 1.9% increase[33] Profitability Metrics - Gross margin increased 8.4% to $159.7 million, representing 31.4% of revenue for Q3 2024[3] - Gross margin for the nine-month period ended September 28, 2024, was $463,820, representing a gross margin percentage of 30.8%[31] - The company reported a gross margin percentage of 31.4% for the three-month period ended September 28, 2024, compared to 30.8% for the same period in 2023[30] - Gross margin for the same period was $109,827,000, with a gross margin percentage of 26.8%, down from 27.2% year-over-year[32] - Gross margin for the nine-month period was $320,830,000, with a gross margin percentage of 26.5%, down from 28.2% year-over-year[35] Net Income and Loss - Net loss for Q3 2024 was $42.8 million, significantly improved from a net loss of $102.4 million in Q3 2023[4] - Net loss for the nine-month period ended September 28, 2024, was $40,109, compared to a net loss of $108,788 for the same period in 2023[29] - Net loss for the three-month period ended September 28, 2024, was $42,843, compared to a loss of $102,389 for the same period in 2023, indicating a significant improvement[39] Adjusted Metrics - Adjusted Net income was $4.6 million, an increase of $9.3 million over the comparable prior year period[1] - Adjusted EBITDA was $47.8 million, a 32.2% increase compared to $36.2 million in Q3 2023[5] - Adjusted EBITDA for the three-month period ended September 28, 2024, was $36,191, compared to $36,191 for the same period in 2023, reflecting stable operational performance[38] Cash Flow and Liquidity - Cash as of September 28, 2024, was $78.5 million with an incremental borrowing capacity of $37.9 million[8] - Free cash flow for 2024 was reported at $16.7 million[8] - Cash and cash equivalents at the end of the period were $78,462, up from $48,294 at the end of the previous year[27] - Net cash provided by operating activities for the nine-month period ended September 28, 2024, was $19,231, compared to $25,677 for the same period in 2023[27] - Free cash flow for the nine-month period ended September 28, 2024, was $16,720, demonstrating positive cash generation capabilities[43] Debt and Financing - Bank debt as of September 28, 2024, was $1,480.2 million, with interest rate exposure hedged through $520.0 million in interest rate swaps and $880.0 million in interest rate caps[8] - Total indebtedness as of September 28, 2024, was $1,480,150, including a 2021 Extended Term Loan of $895,150 and a Second Lien Term Loan of $415,000[28] - Interest expense, net for the nine-month period ended September 28, 2024, was $118,208, compared to $113,304 for the same period in 2023, indicating rising financing costs[38] Operational Efficiency - Field contribution for the three-month period ended September 28, 2024, was $71,515, reflecting a 27.1% increase from $56,260 in the same period in 2023[30] - Operating income for the three-month period ended September 28, 2024, was $34,024, a significant improvement from an operating loss of $76,352 in the same period in 2023[30] - The field contribution margin improved to 14.0% for the three-month period ended September 28, 2024, compared to 11.8% in the prior year[36] Other Financial Metrics - Corporate expenses for the nine-month period ended September 28, 2024, were $91,981, an increase of 8.6% compared to $84,735 for the same period in 2023[31] - Total adjustments for the three-month period ended September 28, 2024, amounted to $48,952, down from $96,069 in the same period last year, indicating reduced operational disruptions[42] - Goodwill impairment for the nine-month period ended September 28, 2024, was $2,904, significantly lower than $107,222 for the same period in 2023, suggesting improved asset valuation[39] - Non-cash share-based compensation for the three-month period ended September 28, 2024, was $4,902, slightly down from $5,116 in the same period last year[39] - Acquisition-related costs for the three-month period ended September 28, 2024, were $150, down from $428 in the same period last year, indicating a decrease in transaction-related expenses[39] Shareholder Metrics - The weighted average shares outstanding, diluted, increased to 193,361 for the three-month period ended September 28, 2024, from 189,139 in the same period last year[39] - Income tax expense for the three-month period ended September 28, 2024, was $15,511, a significant increase from $631 in the same period last year, reflecting changes in tax obligations[39]