BrightSpring Health Services (BTSG) FY 2025 Conference June 11, 2025 02:40 PM ET Speaker0 Wanted to start, you just joined as CFO. You've been with the company a long time, but just as you get to know the investor community, just wanted to give you a chance to talk about your background and what you bring to the CFO seat that's new and helps the strategy of the company going forward. Speaker1 Sure. Thank you. I've been with the company for over eight and a half years, have been a part of everything that we' ...

Key Takeaways BrightSpring posted $178M in Q1 2025 Home Health Care sales, marking 21% year-over-year growth BrightSpring's growth is driven by Medicare Advantage gains and strong operational execution. BTSG's daily census rose 12% to 30,000 and 80% of branches earned 4-star ratings or higher.BrightSpring Health Services, Inc. (BTSG) is experiencing strong momentum in its Home Health Care segment, backed by the robust global expansion of the Home Healthcare market. Per a Grand View Research report, the gl ...

Core Viewpoint - BrightSpring Health Services, Inc. announced the pricing of a secondary offering of 14,000,000 shares at $21.75 per share, with proceeds going to the selling stockholders, including KKR affiliates and management members [1] Group 1: Offering Details - The offering is underwritten and will close on June 12, 2025, subject to customary closing conditions [1] - The KKR Selling Stockholder has granted underwriters a 30-day option to purchase an additional 2,100,000 shares [1] - No shares are being sold by BrightSpring itself in this offering [1] Group 2: Underwriters and Managers - Goldman Sachs & Co. LLC, BofA Securities, Jefferies, and Morgan Stanley & Co. LLC are the lead book-running managers for the offering [2] - KKR Capital Markets LLC is acting as the lead managing agent [2] - A number of other firms are participating as bookrunners and co-managers for the offering [2] Group 3: Registration and Compliance - A shelf registration statement was filed with the SEC on June 10, 2025, and became effective upon filing [3] - The offering will be made only by means of a prospectus supplement and accompanying prospectus [4]

LOUISVILLE, Ky., June 10, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (NASDAQ: BTSG) (“BrightSpring” or the “Company”), a leading provider of home and community-based health services for complex populations, today announced that certain of its stockholders (the “Selling Stockholders”), including affiliates of Kohlberg Kravis Roberts & Co. L.P. (the “KKR Selling Stockholder”) and certain members of management, intend to offer for sale in an underwritten secondary offering an aggregate 14,000, ...

Key Takeaways BrightSpring soared 120% year over year, far outperforming AMED, OPCH, and the Medical sector. BTSG posted Q1 revenue and EPS growth of 14% and 111%, respectively, beating estimates on both fronts. BTSG's Home Health now has 80% of branches rated 4 stars or higher, with broad quality gains across services.BrightSpring Health Services (BTSG) reached an all-time high of $25.57 on June 9, marking a meteoric 120% stock surge over the past year and in sharp contrast to the declines across the bro ...

Core Insights - BrightSpring Health Services, Inc. (BTSG) has made significant investments in process improvements and technology enhancements, leading to better care delivery efficiency and patient outcomes [1][4] - The company has achieved high ratings across various segments, with over 80% of Home Health branches rated 4 stars or better and patient satisfaction nearing 90% [1][8] Home Health Segment - Over 80% of Home Health branches achieved a 4-star rating or better, with declining 60-day hospitalization rates [1][8] - Patient satisfaction in the Home Health segment is approaching 90% [1] Hospice Operations - Hospice operations have outperformed, with visit frequency and time spent with patients exceeding the national average by 50% [2] - Quality index scores in the Hospice segment have reached record highs [2] Rehabilitation and Personal Care Segments - Patient satisfaction in the Rehab segment remains strong at 98% [2] - The Personal Care segment achieved its highest-ever rating with a satisfaction score of 4.6 out of 5 [2] Community Living and Infusion Segments - Community Living recorded its lowest number of audit findings to date, which is 40% better than the industry average [2] - The Infusion segment reported a 96% therapy completion discharge rate and a 95% patient satisfaction score [3] Operational Metrics - Home and Community Pharmacy Services achieved near-perfect operational metrics, including 99.999% dispense accuracy and 99% order completeness [3] Competitive Landscape - Amedisys (AMED) maintains a focus on clinical distinction, achieving an average Quality of Patient Care star rating of 4.18 across all providers, with 88% of care centers rated 4 stars or higher [5] - Addus HomeCare Corporation (ADUS) has launched the Care Advantage Program to enhance preventive care and patient satisfaction through a tech-enabled approach [6] Stock Performance and Valuation - Shares of BrightSpring have gained 104.1% in the past year, significantly outperforming the industry, which saw a decline of 21.7% [7] - BTSG trades at a forward price-to-earnings ratio of 21.59, above the industry's 14.25 [9] Earnings Estimates - The Zacks Consensus Estimate for BTSG's earnings has been on the rise over the past 30 days, with current quarter estimates at $0.22 and next year at $1.19 [10][11]

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Investment Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 3: BrightSpring Health Services, Inc. (BTSG) Analysis - BrightSpring Health Services, Inc. (BTSG) has shown significant recent price momentum, with a four-week price change of 37.3%, indicating growing investor interest [3] - Over the past 12 weeks, BTSG has gained 20.5%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - BTSG has a beta of 2.06, suggesting it moves 106% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - BTSG has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [5] - The stock has a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investor interest [6] - BTSG is trading at a Price-to-Sales ratio of 0.35, indicating it is relatively cheap, as investors pay only 35 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides BTSG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Summary of BrightSpring Health Services (BTSG) Conference Call Company Overview - **Company**: BrightSpring Health Services (BTSG) - **Industry**: Healthcare, specifically home and community health care and pharmacy services Key Points and Arguments Financial Performance - **Q1 Performance**: The company reported a strong Q1, beating expectations and raising guidance, primarily driven by specialty pharmacy performance [2][4] - **Historical Growth**: The company has achieved a mid-teens CAGR in EBITDA and revenue over nearly a decade, with broad-based growth across service lines [4][5] - **Volume Growth**: Volume growth is supported by quality service across all lines, operational efficiencies, and accretive mergers and acquisitions (M&A) [5][6] Specialty Pharmacy Growth - **Oncology and Rare Diseases**: Specialty pharmacy, particularly in oncology and rare diseases, has seen significant growth, with a reported 30% growth year-over-year for the last three years [9][10] - **Innovation in Therapies**: Continuous innovation in therapies is driving demand, with expectations of 12 to 18 new products entering the market in the next 18 months [13] Service Lines and Market Dynamics - **Home and Community Focus**: BrightSpring aims to be a leading provider in home and community health care, with strong demand for services [6][17] - **Provider Business Growth**: The provider business experienced around 10% year-over-year growth, even with fewer days in the quarter compared to the previous year [7] - **Pharmacy Services**: The pharmacy business is expected to grow in the mid-single digits, with potential for double-digit growth in specific areas like infusion and specialty oncology [25][26] M&A Strategy - **Acquisition Focus**: The company has executed several smaller tuck-in acquisitions and plans to continue this strategy, particularly in home health, hospice, and rehab [15][58] - **Community Living Divestiture**: The divestiture of the community living business is expected to close by the end of the year, which will help improve leverage ratios [54][55] Regulatory Environment - **Impact of Inflation Reduction Act (IRA)**: The IRA has both positive and negative implications for the company, particularly concerning drug pricing and access to medications [35][38] - **Tariffs on Drugs**: Potential tariffs on drugs are being monitored, with the company confident in its supply chain resilience due to a significant portion of drugs being sourced domestically [42][46] Operational Efficiency - **EBITDA Margin Target**: The company targets a 6% EBITDA margin, focusing on lean operations and technology to enhance efficiency across business lines [34] - **Integrated Care Opportunities**: The company is exploring integrated care models that combine various services to improve patient outcomes and reduce hospitalizations [31][33] Future Outlook - **Leverage Reduction**: The company aims to reduce leverage to around three times by the end of the year, supported by cash generation and growth [55][56] - **Market Positioning**: BrightSpring is positioned to leverage its scale and operational capabilities to navigate regulatory changes and market dynamics effectively [50][51] Additional Important Insights - **Quality and Compliance**: The company emphasizes its commitment to quality and compliance, which has resulted in better performance metrics compared to industry averages [22] - **Patient-Centric Approach**: The focus on delivering high-quality, patient-centered services is seen as a key driver for growth and market share [20][21]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with BrightSpring Health Services, Inc. (BTSG) currently holding a Momentum Style Score of A [2] Group 2: Zacks Rank and Performance - BTSG has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Stocks rated Zacks Rank 1 and 2 with Style Scores of A or B have historically outperformed the market over the following month [3] Group 3: Price Performance - BTSG shares have increased by 23.35% over the past week, significantly outperforming the Zacks Medical Services industry, which rose by only 0.63% [5] - Over the past month, BTSG's price change is 29.35%, compared to the industry's 0.88% [5] - In the last quarter, BTSG shares increased by 1.99%, and over the past year, they have gained 95.66%, while the S&P 500 has moved -5.75% and 10.63%, respectively [6] Group 4: Trading Volume - BTSG's average 20-day trading volume is 2,067,688 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 5: Earnings Outlook - Over the past two months, four earnings estimates for BTSG have been revised upwards, with no downward revisions, increasing the consensus estimate from $0.69 to $0.98 [9] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [9] Group 6: Conclusion - Given the strong performance metrics and positive earnings outlook, BTSG is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][11]. Earnings Estimate Revisions - Analysts have become increasingly optimistic about the earnings prospects of BrightSpring Health Services, leading to higher earnings estimates, which are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter has risen to $0.20 per share, reflecting a 100% increase from the previous year [7]. - For the full year, the earnings estimate is projected at $0.98 per share, representing a year-over-year increase of 75% [8]. - Over the past month, the consensus estimate for the current year has increased by 35.24%, with four estimates moving up and no negative revisions [9]. Zacks Rank and Performance - BrightSpring Health Services has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [10]. - Historically, stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, suggesting a strong correlation between earnings estimate revisions and stock performance [3][10]. Stock Performance - The stock has experienced a 27% gain over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11].