ATLANTA, April 18, 2024 (GLOBE NEWSWIRE) --  Aveanna Healthcare Holdings Inc. ("Aveanna") (NASDAQ:AVAH) today announced that the company will release its first quarter results before the market open on Thursday, May 9, 2024, to be followed by a conference call at 10:00 a.m. (Eastern Time) on the same day. The conference call can be accessed live over the phone by dialing 1-877-407-0789 or for international callers, 1-201-689-8562. A replay will be available two hours after the call and can be accessed by di ...

ATLANTA, April 03, 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 Jerry Perchik to serve as Chief Legal Officer and Secretary, effective April 29, 2024. "I am pleased to announce the appointment of Jerry to the Chief Legal Officer and Secretary role. Jerry has a strong background in corporate law and a wealth of healthcare indus ...

Financial Data and Key Metrics - Q4 2023 revenue was $479 million, a 6.1% increase YoY [5] - Q4 2023 adjusted EBITDA was $38.7 million, a 30.4% increase YoY, driven by improved payor rates and cost reduction efforts [5] - Full-year 2023 revenue was $1.895 billion, a 6% increase YoY, and adjusted EBITDA was $139.2 million, a 7.6% increase YoY [6] - Full-year 2024 revenue is expected to be between $1.96 billion and $1.98 billion, with adjusted EBITDA between $146 million and $150 million [14][24] Business Line Performance Private Duty Services (PDS) - Q4 2023 PDS revenue was $383 million, a 6.1% increase YoY, driven by 10.1 million hours of care, a 5.1% volume increase YoY [17] - Revenue per hour for PDS was $38.04, up 1% YoY [17] - Gross margin for PDS was 27%, a 12.7% increase YoY, with a cost of revenue rate of $27.76, flat sequentially [18] - The company achieved double-digit PDS rate increases in eight key states, with 19 states representing 55% of PDS footprint [8] Home Health & Hospice - Q4 2023 revenue was $54 million, a 1.1% decrease YoY, with 9,200 total admissions and 11,300 episodes of care [18] - Medicare revenue per episode was $3,064, up 1.8% YoY [18] - Gross margin for Home Health & Hospice was 50.9%, reflecting cost initiatives and a focus on episodic payors [19] - The episodic mix improved from 60% in 2022 to 74% in Q4 2023 [11] Medical Solutions - Q4 2023 revenue was $41.3 million, a 17.5% increase YoY, driven by 90,000 unique patients served, an 8.4% increase YoY [20] - Revenue per unique patient served (UPS) was $458.80 [20] - Gross margin for Medical Solutions was 42%, up 2.3% YoY [21] Market and Strategic Focus - The company is focusing on enhancing partnerships with government and preferred payors to create caregiver capacity [13] - The labor market remains a challenge, but the company is seeing improvements in caregiver hiring and retention trends [7] - The company is targeting a 70% preferred payor penetration in Texas PDN volumes by 2024 [11] - In California, the company is accelerating its preferred payor strategy while continuing legislative efforts for rate increases [35] Management Commentary on Operating Environment and Future Outlook - The company expects 20% of full-year 2024 adjusted EBITDA to be recognized in Q1 and 44% in the first half of 2024 [24] - The company is optimistic about continued rate improvements and volume growth in 2024 [22] - The company aims to return to a 10% adjusted EBITDA margin in the long term [29] Other Important Information - The company ended Q4 2023 with $232 million in liquidity, including $43.9 million in cash and $168 million available under its revolver [22] - Cash provided by operating activities was $22.7 million in Q4, with free cash flow of $12.5 million [24] - The company has no material term loan maturities until July 2028 [23] Q&A Session Summary Question 1: Margin Expectations for 2024 - The company expects gross margins to remain consistent with Q3 and Q4 2023 levels, with potential outperformance from preferred payor agreements and state rate increases [30][32] - The company is focused on reinvesting rate increases into caregiver wages to drive volume growth [30] Question 2: Labor Environment and Wage Inflation - The company plans to pass through rate increases to caregivers to improve hiring and retention [32] - Wage inflation is expected to be managed through rate improvements and cost efficiencies [32] Question 3: Preferred Payor Progress in California - The company is accelerating its preferred payor strategy in California, with a focus on both legislative efforts and commercial plans [35] - The company has two preferred payors in California, paying above the Medicaid PDN rate [35] Question 4: Upside Potential Across Business Lines - The Home Health & Hospice business has shown significant improvement, with a focus on episodic payors and improved clinical outcomes [38] - The company expects continued growth in PDS and Medical Solutions, driven by rate increases and volume growth [38] Question 5: Cash Flow and Working Capital Dynamics - The company expects moderate headwinds in Q1 2024 due to seasonality but anticipates positive operating cash flow for the year [40] - The company is considering small M&A opportunities in the back half of 2024 or 2025 [40] Question 6: Margin Expansion and Revenue Growth - Margin expansion in 2024 is expected to come primarily from SG&A efficiencies, with minimal improvement in gross margins [45] - Revenue growth in PDS is expected to be split evenly between rate and volume increases [48]

Aveanna Healthcare (AVAH) reported $478.84 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 6.1%. EPS of -$0.01 for the same period compares to -$0.03 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $464.33 million, representing a surprise of +3.12%. The company delivered an EPS surprise of +50.00%, with the consensus EPS estimate being -$0.02.While investors closely watch year-over-year changes in headline numbers -- revenue and e ...

Aveanna Healthcare (AVAH) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this home health care services provider would post a loss of $0.02 per share when it actually produced a loss of $0.03, delivering a surprise of -50%.Over the last four quarters, ...

Fourth Quarter Revenue was $478.8 million, a 6.1% increase over the prior year Gross margin increased 15.3% to $148.4 million, compared to Q4 2022 Fourth Quarter Net loss was $25.7 million, compared to net loss of $237.8 million in the comparable prior year period Adjusted EBITDA was $38.7 million, a 30.4% increase as compared to the prior year quarter Expect Full Year 2024 Revenue between $1,960 million and $1,980 million and Adjusted EBITDA between $146 million and $150 million ATLANTA, March 14, 2024 (GL ...

Financial Performance - Fourth Quarter Revenue was $478.8 million, a 6.1% increase compared to the prior year[1] - Fourth Quarter Net loss was $25.7 million, significantly improved from a net loss of $237.8 million in Q4 2022[3] - Adjusted EBITDA for Q4 2023 was $38.7 million, a 30.4% increase compared to the prior year quarter[4] - Full Year 2023 Revenue was $1,895.2 million, a 6.0% increase from $1,787.6 million in 2022[5] - Adjusted EBITDA for Fiscal Year 2023 was $139.2 million, a 7.6% increase from $129.3 million in 2022[6] - Revenue for the three-month period ended December 30, 2023, was $478,841 thousand, representing a 6.1% increase from $451,147 thousand for the same period in 2022[28] - Net loss for the three-month period ended December 30, 2023, was $(25,736) thousand, compared to a net loss of $(237,779) thousand for the same period in 2022[28] - Adjusted EBITDA for the three-month period ended December 30, 2023, was $38,663 thousand, up from $29,658 thousand in the same period of 2022, indicating a year-over-year increase of 30.7%[39] Gross Margin and Profitability - Gross margin increased 15.3% to $148.4 million, representing 31.0% of revenue for Q4 2023[3] - Gross margin for the fiscal year ended December 30, 2023, was $595,432 thousand, with a gross margin percentage of 31.4%, up from 30.9% in the previous year[31] - The company reported a field contribution margin of 12.4% for the fiscal year ended December 30, 2023, compared to 11.0% in the previous year[31] - Gross margin for the same period was $423,720, reflecting an increase of $31,255 or 8.0% from $392,465 in the prior year[35] - The gross margin percentage improved to 27.9%, up from 27.7% year-over-year[35] - Gross margin percentage for the same period improved to 50.9%, up from 41.9% year-over-year[33] Cash Flow and Debt - As of December 30, 2023, the company had cash of $43.9 million and bank debt of $1,469.8 million[7] - Free cash flow for year-to-date 2023 was $12.5 million[7] - Cash and cash equivalents at the end of the period were $43,942 thousand, up from $19,217 thousand at the beginning of the period[26] - The company reported a free cash flow of $12,505 thousand for the fiscal year ended December 30, 2023[44] - The net cash provided by operations for the fiscal year ended December 30, 2023, was $22,672 thousand[44] - Total indebtedness as of December 30, 2023, was $1,469,750 thousand, with a 2021 Extended Term Loan of $899,750 thousand and a Second Lien Term Loan of $415,000 thousand[27] Corporate Strategy and Operations - The company is focusing on enhancing payor partnerships to invest in caregivers and expand patient care[2] - The company anticipates continued growth through effective execution of its growth strategy, including organic growth and acquisitions[22] - Unique patients served increased to 348, up by 28 or 8.8% from 320 in the previous year[35] - Revenue per completed episode rose to $3,032, an increase of $45 or 1.5% compared to $2,987 in the previous year[35] Corporate Expenses - Corporate expenses for the three-month period ended December 30, 2023, decreased by 11.2% to $28,299 thousand from $31,880 thousand in the same period last year[30] - Corporate expenses for the three-month period ended December 30, 2023, were $4,760 thousand, down from $7,227 thousand in the same period of 2022[43] Goodwill and Adjustments - Goodwill impairment for the three-month period ended December 30, 2023, was $205,139 thousand, compared to $105,136 thousand for the fiscal year ended December 31, 2022[43] - Total adjustments for the three-month period ended December 30, 2023, amounted to $27,359 thousand, compared to $230,597 thousand for the same period in 2022, reflecting a decrease of 88.2%[39] - The company reported an adjusted net loss income of $3,177 thousand for the three-month period ended December 30, 2023, compared to an adjusted net loss income of $6,409 thousand for the same period in 2022[40]

Competition and Market Dynamics - The company faces intense competition in the home health, hospice, and durable medical equipment industries, with numerous competitors having greater financial resources [140]. - The company may face increased competition if large national healthcare entities enter the home health or hospice market [143]. - Approximately 51% of all Medicare beneficiaries were enrolled in a Medicare Advantage plan in 2023, indicating a growing trend towards managed care [163]. - 480 MSSP ACOs served over 13 million patients as of January 1, 2024, highlighting the scale of alternative payment models [162]. Regulatory and Reimbursement Risks - The company relies heavily on Medicare, Medicaid, and private insurance for funding, with potential reductions in reimbursement rates posing a significant risk to revenue [149]. - Changes to Medicare reimbursement rates and methodologies, including the implementation of the Patient-Driven Groupings Model (PDGM), could adversely affect profitability [156]. - The company is subject to the Review Choice Demonstration (RCD) Project, which could result in delayed or reduced Medicare reimbursements if compliance is not met [157]. - The Consolidated Appropriations Act has delayed mandatory sequestration of Medicare benefit payments until January 1, 2025, providing temporary relief [158]. - The CY 2024 30-day base payment rate under PDGM was reduced by 1% [160]. - A permanent behavioral adjustment of 5.78% to home health payments was finalized, with 2.89% applied to the 30-day base payment rate starting January 1, 2024 [160]. - The annual market basket update resulted in a 3.3% increase to the CY 2024 30-day base payment rate [160]. - The 2024 Home Health Rule includes a Medicare reimbursement rate increase of 0.8%, reflecting a market basket increase of 3.3% offset by a productivity adjustment of -0.3% and a PDGM behavioral assumption adjustment of -5.78% [184]. - Quality reporting requirements could result in a 2% reduction in Medicare reimbursement if compliance is not met, affecting financial performance [187]. - The ACA mandates a reduction in home health reimbursement that began in federal fiscal year 2014 and was phased in over a four-year period [251]. Operational Challenges - The COVID-19 pandemic has impacted caregiver recruitment and retention, affecting the ability to meet service demand [147]. - The expiration of the Public Health Emergency (PHE) related to COVID-19 in May 2023 may lead to decreased demand for services and increased operational costs [148]. - The company faces challenges in recruiting and retaining qualified personnel, leading to increased labor costs and potential declines in service quality [193]. - The complexity of Medicare and Medicaid managed care programs may lead to slower payment processes compared to traditional models [169]. - The company faces risks related to delays in billing and collections, which could adversely affect liquidity and financial position [167]. - The company is sensitive to regional weather conditions, which could disrupt operations and affect patient volumes [241]. - Public health catastrophes could significantly impact the company's operations and patient enrollment due to the vulnerable nature of its patient population [243]. Financial Position and Debt - As of December 30, 2023, the company had $1,470 million principal amount outstanding under its Senior Secured Credit Facilities and approximately $168.1 million borrowing capacity under its Revolving Credit Facility [215]. - The company's high degree of leverage may increase vulnerability to economic conditions and restrict access to borrowings, potentially impacting cash flow and operational flexibility [216]. - The Senior Secured Credit Facilities and Revolving Credit Facility contain restrictive covenants that limit the company's ability to incur additional indebtedness and make acquisitions [217]. - Any failure to comply with covenants could result in an event of default, leading to acceleration of all debt under the Senior Secured Credit Facilities [217]. - The company has substantial indebtedness, which may limit its ability to pursue strategic alternatives and react to changes in the business environment [215]. Cybersecurity and Information Systems - The company is vulnerable to cybersecurity threats, which could materially impact its business and financial condition [176]. - Change Healthcare experienced a cybersecurity incident affecting approximately 16 business days of billings for certain claims, potentially increasing patient accounts receivable and decreasing net cash from operating activities for Q1 2024 [178]. - Failure to maintain information system security could lead to significant operational disruptions, regulatory penalties, and increased operating expenses, adversely affecting financial position and liquidity [179]. - The company is dependent on the integrity and security of its information systems, with risks associated with new technology initiatives potentially disrupting operations [199]. - Implementation disruptions of new or upgraded systems could materially affect the company's financial position and liquidity [201]. - The company has taken steps to protect its information systems, but there is no assurance that these measures will prevent breaches or operational disruptions [202]. Legal and Compliance Risks - The company is subject to ongoing investigations by the OIG, the United States DOJ, and State Attorneys General regarding billing practices for Medicare and Medicaid patients [263]. - The company is exposed to various risks related to legal proceedings and claims, which could adversely impact financial condition and results of operations [229]. - The company maintains professional liability insurance, but there is no assurance that claims will not exceed coverage limits, potentially affecting financial condition [233]. - The company is required to offer a minimum level of health coverage for 95% of its full-time employees in 2024 to avoid annual penalties [284]. - The company’s financial relationships with referring physicians must comply with the Stark Law, which is complex and may expose the company to liabilities if not adhered to [268]. - The company is subject to various federal and state laws regarding the protection and management of personal health information (PHI), including HIPAA and the HITECH Act, which impose significant compliance costs and potential penalties for violations [271]. - The company may face civil penalties and exclusion from federal healthcare programs if it inadvertently hires or contracts with excluded persons, with penalties reaching up to $20,000 for each item or service provided by such individuals [284]. - The company has incurred and expects to continue incurring additional costs to comply with the California Consumer Privacy Act (CCPA) and similar regulations, which may adversely affect its business operations [280]. - The company is at risk of significant penalties for non-compliance with evolving data privacy laws, which could adversely affect its reputation and financial position [281]. - The company’s ability to manage PHI is subject to ongoing regulatory scrutiny, and any violations could lead to substantial civil monetary penalties [273]. Strategic and Growth Considerations - The company may face challenges in identifying, acquiring, and integrating strategic acquisitions, which could limit growth opportunities [222]. - Federal regulations, such as the "36 Month Rule," may restrict the company's ability to acquire new home health agencies and could adversely affect acquisition strategies [226]. - The company has not applied for any patents, relying instead on trademark law and trade secret protection to safeguard its intellectual property [207]. - The company may face significant costs and liabilities from intellectual property disputes, which could divert management's attention and resources [212]. Financial Reporting and Governance - As of December 30, 2023, the company did not maintain effective internal control over financial reporting due to an identified material weakness [297]. - Compliance with the Sarbanes-Oxley Act has resulted in substantial expenses and management efforts, impacting financial resources available for business expansion [296]. - The company faces increased costs related to insurance, legal, and accounting as a public entity, which could adversely affect financial condition and results of operations [292]. - Material weaknesses in internal controls could lead to misstatements in financial statements, harming investor confidence and stock price [298]. - The company has established exclusive forums for litigation, which may limit stockholders' abilities to bring claims in preferred jurisdictions [302]. - The company has amended its charter to renounce any interest in corporate opportunities presented to its sponsors and affiliates, which may lead to competitive harm [306]. - The company may face competition from its sponsors and affiliates, who are not prohibited from operating or investing in competing businesses, potentially resulting in lost corporate opportunities [307]. Stock Performance and Market Perception - The market for the company's common stock is influenced by analysts' reports; unfavorable commentary or downgrades could lead to a decline in stock price [308]. - If the company's operating and financial performance does not meet public guidance, the market price of its common stock may decline [309]. - The company has provided public guidance on expected operating and financial results, which are subject to risks and uncertainties [309]. - The company does not intend to pay dividends for the foreseeable future, which may affect the attractiveness of its common stock [287]. - The company intends to retain all available funds and future earnings for business development, with no cash dividends anticipated in the foreseeable future [288].

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q3 2023 Earnings Conference Call November 9, 2023 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer Jeffrey Shaner - Chief Executive Officer David Afshar - Chief Financial Officer Matt Buckhalter - Interim Chief Financial Officer Debbie Stewart - Chief Accounting Officer Conference Call Participants Operator Good morning and welcome to Aveanna Healthcare Holdings Third Quarter 2023 Earnings Conference Call. Today’s call is being recorded, and ...

Revenue Performance - Consolidated revenue for the three-month period ended September 30, 2023, was $478.01 million, an increase from $443.01 million for the same period in 2022, representing a growth of 7.9%[105] - For the nine-month period ended September 30, 2023, consolidated revenue reached $1.416 billion, compared to $1.336 billion for the same period in 2022, reflecting a year-over-year increase of 6.0%[107] - The Private Duty Services (PDS) segment generated $384.75 million in revenue for the third quarter of 2023, accounting for 81% of consolidated revenue, compared to $355.62 million in the same quarter of 2022[105] - Home Health & Hospice (HHH) segment revenue was $52.99 million for the third quarter of 2023, maintaining an 11% share of consolidated revenue, up from $49.85 million in the prior year[105] - Medical Solutions (MS) segment revenue was $40.27 million for the third quarter of 2023, representing 8% of consolidated revenue, compared to $37.54 million in the same quarter of 2022[105] - PDS segment revenue increased by $29.1 million, or 8.2%, attributed to a 4.5% increase in volume and a 3.7% increase in revenue rate[141] - HHH revenue grew by $3.1 million, or 6.3%, while MS revenue increased by $2.7 million, or 7.3%[141] - Revenue for the nine-month period ended September 30, 2023, was $1,416.4 million, an increase of $79.9 million, or 6.0%, compared to $1,336.5 million for the same period in 2022[169] Financial Performance - Operating loss for the third quarter of 2023 was $76.4 million, a decrease of $81.1 million from an operating income of $4.8 million in the same quarter of 2022, primarily due to a $105.1 million goodwill impairment charge[139] - Net loss for the three-month period ended September 30, 2023, was $102.4 million, compared to a net income of $24.3 million for the same period in 2022, reflecting a decrease of $126.7 million[140] - Net loss for the nine-month period ended September 30, 2023, was $108.8 million, a decrease of $315.5 million, or 74.4%, compared to the prior year[159] - Operating loss decreased to $21.2 million for the nine-month period ended September 30, 2023, from a loss of $437.8 million in the prior year, representing a reduction of $416.6 million, or 95.2%[167] - Interest expense increased by $11.3 million, net of interest income, impacting net loss[140] - Interest expense, net of interest income, rose by $39.9 million, or 54.4%, to $113.3 million for the nine-month period ended September 30, 2023, compared to $73.4 million for the same period in 2022[182] - Other income decreased by $59.4 million to $27.1 million for the nine-month period ended September 30, 2023, down from $86.5 million for the same period in 2022[183] Cost and Margin Analysis - Gross margin increased to $147.3 million, representing 30.8% of revenue, up from 30.4% in the prior year, with a $12.7 million increase year-over-year[139] - Cost of revenue, excluding depreciation and amortization, was $330.7 million, an increase of $22.3 million, or 7.2%, compared to the prior year[143] - Gross margin was $447.0 million, or 31.6% of revenue, for the nine-month period ended September 30, 2023, compared to $424.5 million, or 31.8% of revenue, for the same period in 2022[173] - Field contribution rose by $11.2 million, or 24.9%, with a Field contribution margin of 11.8%, up from 10.2% in the previous year[139] - Field contribution increased by $15.8 million, or 10.1%, to $173.0 million, or 12.2% of revenue, for the nine-month period ended September 30, 2023, compared to $157.2 million, or 11.8% of revenue, for the same period in 2022[175] Goodwill and Impairment - Goodwill impairment was recorded at $105.1 million for the three-month period ended September 30, 2023, with no impairment in the comparable period last year[151] - Goodwill impairment was recorded at $105.1 million for the nine-month period ended September 30, 2023, significantly lower than the $470.2 million impairment in the comparable period in 2022[179] - The company recorded a goodwill impairment charge of $105.1 million during the three-month period ended September 30, 2023, due to challenges in the labor market affecting anticipated volume[222] Cash Flow and Liquidity - Net cash provided by operating activities for the nine-month period ended September 30, 2023 was $25.7 million, compared to a cash used of $8.2 million for the same period in 2022, reflecting an increase of $33.8 million[207][208] - Net cash used in investing activities decreased to $7.2 million for the nine-month period ended September 30, 2023, down from $22.1 million in the same period of 2022, primarily due to a $14.9 million reduction in cash used[211] - Net cash provided by financing activities decreased by $52.8 million, from $63.4 million for the nine-month period ended October 1, 2022 to $10.6 million for the same period in 2023[212] - As of September 30, 2023, the company had $48.3 million in cash, $20.0 million available under the Securitization Facility, and approximately $168.0 million borrowing capacity under the Revolving Credit Facility[205] Compliance and Internal Controls - The company is addressing a material weakness in internal control over financial reporting, specifically related to IT general controls (ITGCs) for user access and program change management[226] - Remediation efforts include implementing a new revenue system and enhancing ITGCs to ensure effective internal controls[227] - No changes in internal control over financial reporting occurred during the three-month period ended September 30, 2023, that materially impacted internal controls[228] - Management acknowledges inherent limitations in the effectiveness of controls, stating that no system can provide absolute assurance against errors or fraud[229] Future Outlook and Strategic Initiatives - The company aims to enhance its patient-centered care delivery platform to improve care quality and reduce high-cost care settings, positioning itself for sustainable growth through both organic means and acquisitions[103] - The proposed HHS rule aims to ensure that at least 80% of Medicaid payments for personal care services are allocated to direct care worker compensation, which could impact the company's operations positively or negatively depending on the final requirements[118] - Future capital requirements will depend on various unpredictable factors, including potential acquisitions and capital investments[205]