Company Overview - Aveanna Healthcare is headquartered in Atlanta, Georgia, and operates in 33 states, offering a wide range of pediatric and adult healthcare services [3] - Services include nursing, rehabilitation, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill patients, home health and hospice services, and enteral nutrition delivery [3] - The company also provides case management services to coordinate care among insurers, physicians, hospitals, and other healthcare providers, as well as respite healthcare services for temporary caregiver relief [3] Upcoming Events - Aveanna's management team will attend the 43rd Annual J.P. Morgan Healthcare Conference in San Francisco on January 15, 2025 [5] - The presentation will take place at 10:30 a.m. PST, followed by one-on-one investor meetings on the same day [2]

Core Viewpoint - Aveanna Healthcare (AVAH) is experiencing significant selling pressure, having declined 17.6% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating that a stock may be oversold [2]. - AVAH's current RSI reading is 29.51, suggesting that the heavy selling may be exhausting, indicating a potential bounce back [5]. - Technical analysis indicates that stocks oscillate between overbought and oversold conditions, and the RSI can help identify points of reversal [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts covering AVAH, with earnings estimates for the current year being raised by 5.9% over the last 30 days, which typically correlates with price appreciation [7]. - AVAH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a potential turnaround [8].

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]

Core Insights - Aveanna Healthcare (AVAH) reported revenue of $509.02 million for Q3 2024, marking a year-over-year increase of 6.5% and exceeding the Zacks Consensus Estimate by 2.67% [1] - The company achieved an EPS of $0.02, a significant improvement from -$0.03 a year ago, resulting in an EPS surprise of 300.00% compared to the consensus estimate of -$0.01 [1] Financial Performance Metrics - Hours - PDS: 10,474 hours, surpassing the estimated 10,301.9 hours [3] - Revenue rate - MS: $492.67, compared to the average estimate of $454.77 [3] - Unique patients served (UPS) - MS: 92, matching the estimated average [3] - Revenue rate - PDS: $39.10, exceeding the average estimate of $38.66 [3] - Revenue - PDS: $409.56 million, above the estimated $399.42 million, reflecting a 6.5% year-over-year change [3] - Revenue - MS: $45.33 million, compared to the estimated $41.66 million, indicating a year-over-year change of 12.6% [3] - Revenue - HHH: $54.14 million, slightly above the estimated $53.32 million, with a year-over-year change of 2.2% [3] Stock Performance - Aveanna's shares have returned +3% over the past month, in line with the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

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]

Third Quarter Revenue was $509.0 million, a 6.5% increase over the prior year period Gross margin increased 8.4% to $159.7 million, compared to Q3 2023 Third Quarter Net loss was $42.8 million, compared to net loss of $102.4 million in the comparable prior year period Adjusted Net income was $4.6 million, an increase of $9.3 million over the comparable prior year period Adjusted EBITDA was $47.8 million, a 32.2% increase as compared to the prior year periodFull Year 2024 Revenue guidance raised to approxima ...

ATLANTA, Nov. 04, 2024 (GLOBE NEWSWIRE) -- 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 the appointment of Brent Layton to serve as a Class III director of the Board of Directors of Aveanna Healthcare Holdings Inc., and additionally as a member of the Audit Committee of the Board, effective November 1, 2024. “I am delighted to announce the appointment of Brent Layton t ...

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ATLANTA, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (“Aveanna”) (NASDAQ: AVAH) today announced that its management team will attend the Stephens Annual Investment Conference. Management will host virtual 1x1 investor meetings on Friday, November 22, 2024. About Aveanna Healthcare Aveanna Healthcare is headquartered in Atlanta, Georgia and has locations in 33 states providing a broad range of pediatric and adult healthcare services including nursing, rehabilitation services, occupatio ...