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]

Core Viewpoint - Aveanna Healthcare Holdings Inc. reported strong financial results for Q3 2024, with significant growth in revenue and adjusted EBITDA, reflecting positive operational momentum and strategic cost reductions. Financial Performance - Q3 2024 revenue reached $509.0 million, a 6.5% increase from $478.0 million in Q3 2023, driven by growth in Private Duty Services, Medical Solutions, and Home Health & Hospice segments [1][2] - Gross margin for Q3 2024 was $159.7 million, or 31.4% of revenue, up from $147.3 million, or 30.8% of revenue in Q3 2023, marking an 8.4% increase [3] - The net loss for Q3 2024 was $42.8 million, significantly improved from a net loss of $102.4 million in Q3 2023, with adjusted net income of $4.6 million compared to an adjusted net loss of $9.3 million in the prior year [4][5] - Adjusted EBITDA for Q3 2024 was $47.8 million, a 32.2% increase from $36.2 million in Q3 2023, representing 9.4% of revenue [5] Year-to-Date Performance - For the nine-month period ended September 28, 2024, revenue totaled $1,504.6 million, a 6.2% increase from $1,416.4 million in the same period of 2023, primarily due to growth in Private Duty Services and Medical Solutions [6][7] - Gross margin for the nine-month period was $463.8 million, or 30.8% of revenue, compared to $447.0 million, or 31.6% of revenue in the prior year, reflecting a 3.8% increase [6] - The net loss for the nine-month period was $40.1 million, improved from a net loss of $108.8 million in the same period of 2023 [7][8] - Adjusted EBITDA for the nine-month period was $128.4 million, a 27.7% increase from $100.5 million in the prior year, representing 8.5% of revenue [8] Guidance and Outlook - The company raised its full-year 2024 revenue guidance to approximately $2.0 billion, up from prior guidance of greater than $1,985 million [11] - Adjusted EBITDA guidance for the full year 2024 was also raised to greater than $168 million, up from previous guidance of greater than $158 million [12] Liquidity and Cash Flow - As of September 28, 2024, the company had cash of $78.5 million and an incremental borrowing capacity of $37.9 million under its securitization facility, with a revolver undrawn [9] - Year-to-date net cash provided by operating activities was $19.2 million, with free cash flow of $16.7 million for 2024 [9]

Core Insights - Aveanna Healthcare Holdings Inc. has appointed Brent Layton as a Class III director of its Board of Directors and a member of the Audit Committee, effective November 1, 2024 [1] - Brent Layton brings over 20 years of healthcare leadership experience from Centene Corporation, which will support Aveanna's strategic growth plans [2] - Layton currently serves as CEO of Sharecare and previously held the position of president and COO at Centene, overseeing significant healthcare offerings [3] Company Overview - Aveanna Healthcare is headquartered in Atlanta, Georgia, and operates in 33 states, providing a wide range of healthcare services for both pediatric and adult populations [5] - Services include nursing, rehabilitation, therapy, home health, hospice, and case management, aimed at offering high-quality, lower-cost alternatives to prolonged hospitalization [5] - The company also provides respite healthcare services to relieve normal caregivers [5]

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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 ...

ATLANTA, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (“Aveanna”) (NASDAQ: AVAH) today announced that the company will release its third quarter results before the market open on Thursday, November 7, 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 three hours after the call and can be accessed ...

Company Performance - Aveanna Healthcare (AVAH) has shown a year-to-date performance increase of approximately 72.4%, significantly outperforming the average gain of 7% in the Medical sector [2] - Aveanna Healthcare currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with full-year earnings estimates moving 30.4% higher in the past quarter [2][3] - Cardinal Health (CAH) is another Medical stock that has outperformed the sector, with a year-to-date increase of 12.9% and a Zacks Rank of 2 (Buy) [2] Industry Comparison - Aveanna Healthcare is part of the Medical - Outpatient and Home Healthcare industry, which has gained an average of 15.5% year-to-date, indicating that AVAH is performing better than its industry peers [3] - In contrast, Cardinal Health belongs to the Medical - Dental Supplies industry, which has seen a decline of 1.2% year-to-date, highlighting the relative strength of Aveanna Healthcare's performance [3] - The Medical sector ranks 3 in the Zacks Sector Rank, with Aveanna Healthcare being one of the 1025 individual stocks contributing to this ranking [1]