Wall Street expects a year-over-year increase in earnings on higher revenues when BrightSpring Health Services, Inc. (BTSG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be re ...

LOUISVILLE, Ky., April 10, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG) announced today that it plans to release its first quarter 2025 financial results on Friday, May 2, 2025, prior to the Company’s earnings conference call, which will be held at 8:30 a.m. ET on the same day. To participate in the conference call, please register here before the 8:30 a.m. ET start. A live and archived webcast of the call will be available on the Company’s inv ...

BrightSpring Health Services, Inc. (NASDAQ:BTSG) Q4 2024 Earnings Conference Call March 6, 2025 8:30 AM ET Company Participants David Deuchler - Investor Relations Jon Rousseau - President & Chief Executive Officer Jen Phipps - Chief Financial Officer Conference Call Participants A.J. Rice - UBS Whit Mayo - Leerink Brian Tanquilut - Jefferies David Larsen - BTIG Joanna Gajuk - Bank of America Securities Erin Wright - Morgan Stanley Jamie Perse - Goldman Sachs Pito Chickering - Deutsche Bank Stephen Baxter - ...

Forward-Looking Statements; Non-GAAP Financial Information Fourth Quarter 2024 Earnings Presentation March 6, 2025 1 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-loo ...

Acquisitions and Growth Strategy - The company acquired Abode Healthcare in April 2021, enhancing its service offerings in applied behavioral analysis[1] - The company’s growth strategy includes identifying and successfully completing acquisitions and joint ventures[19] - The company acquired BrightSpring Health Holdings Corp. and its subsidiaries in March 2019, contributing to its growth strategy[150] Financial Performance and Stability - The company has a substantial indebtedness of approximately $2.7 billion as of December 31, 2024[20] - The company reported fluctuations in results of operations on a quarterly basis, indicating variability in financial performance[19] - Approximately 47% of the company's revenue comes from 10 states, indicating a concentrated geographic footprint[31] - The company derives substantial revenue from government healthcare programs, primarily Medicare and Medicaid, which are subject to regulatory changes that could adversely affect revenue[161] - The company faces risks from potential reductions in federal and state spending on healthcare programs, including Medicare and Medicaid[181] - Changes in Medicare and Medicaid reimbursement methodologies could lead to reduced payments and impact the company's financial condition[166] Patient Care and Satisfaction - The patient satisfaction rate for outpatient therapy services from April 1, 2023, to June 30, 2023, was reported at 85%[11] - The Net Promoter Score (NPS) for the company is above 50, indicating excellent patient satisfaction levels[11] - The company achieved 99.99% order accuracy and 98.63% order completeness in its pharmacy services, with a patient satisfaction rate of 97% in outpatient rehab services[29][35] - The CCRx program launched in 2021 has shown a 73.1% lower hospitalization rate for enrolled home health patients compared to non-enrolled patients[42] - The company’s hospice services have an average of 17.1 visits per patient per month, exceeding the national average of 15.6 visits[46] - The outpatient rehab services received a 97% patient satisfaction score, with 97% of patients recommending the services[51] Operational Efficiency and Quality Initiatives - The company emphasizes operational excellence as a key driver for growth, focusing on continuous improvement in volume and cost efficiency[59] - The implementation of the PMO-led continuous improvement program has resulted in approximately $67.5 million of annual savings in 2024[60] - The company invests over $200 million annually in quality, compliance, and safety initiatives as part of its "Quality First" framework[64] - The company has built a Clinical (Nursing) Hub to enhance patient care coordination and monitoring, particularly for high-risk patients[49] Regulatory Compliance and Risks - The company is subject to extensive federal, state, and local regulations, and non-compliance could lead to severe consequences affecting its business and financial condition[97] - The Stark Law prohibits physicians with financial relationships from making referrals for designated health services, with penalties including denial of payment and civil penalties up to $27,750 per service[105][108] - The company must notify CMS of overpayments within 60 days of identification, or risk liability under the False Claims Act[113] - The company is subject to various federal, state, and local licensure and certification requirements for healthcare services, impacting operational compliance and potential revenue[127] - The company faces significant competition in attracting and retaining qualified pharmacy professionals, which could adversely affect its business[66] Market and Competitive Landscape - The company operates in a highly competitive industry, which poses risks to its market position and financial performance[17] - The company operates in a highly competitive U.S. healthcare industry, facing intense competition in both Pharmacy Solutions and Provider Services segments[155] - The market for Senior and Specialty patients is over $1.0 trillion, with patients having an average of nine prescriptions at a given time[26][29] Technology and Innovation - The cloud-based data lake and business intelligence capabilities are set up to provide real-time tracking of quality, operational, and financial metrics[61] - The company continues to invest in technology resources and systems to drive continuous improvement and enhance employee and patient experiences[90] Employee Relations and Workforce - As of December 31, 2024, the company had over 37,000 full-time equivalent employees, with approximately 7,200 represented by labor unions[96] - Compensation has increased over 50% in the last four years, reflecting the company's commitment to attracting and retaining skilled employees[95] - Approximately 68% retention rate of clinical positions in home health care, hospice care, and rehab care from December 31, 2023, to December 31, 2024[94] Financial Management and Accounts Receivable - The company experiences significant delays in reimbursement from Medicare and Medicaid programs, particularly under managed care, which pay claims slower than traditional programs[207] - The complexity of billing and collection processes may lead to increased age of accounts receivable, impacting working capital management[206] - The company may need to record credit losses in its consolidated financial statements due to delays or non-collection of accounts receivable[208]

Group 1: Earnings Performance - BrightSpring Health Services, Inc. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and compared to a loss of $0.06 per share a year ago, representing an earnings surprise of 15.79% [1] - The company posted revenues of $3.05 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.35%, and compared to year-ago revenues of $2.37 billion [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - BrightSpring Health Services, Inc. shares have increased about 8% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.19 on $2.78 billion in revenues, and $0.77 on $11.84 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Medical Services industry, to which BrightSpring Health Services, Inc. belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Fourth quarter net revenue reached $3,053 million, a 28.6% increase from $2,375 million in Q4 2023[4] - Fourth quarter net income was $15.4 million, compared to a net loss of $7.2 million in Q4 2023[5] - Full year net revenue for 2024 was $11,266 million, up 27.6% from $8,826 million in 2023[6] - Full year Adjusted EBITDA for 2024 was $588 million, a 9.3% increase from $538 million in 2023[7] - Pharmacy Solutions revenue for 2024 was $8,754 million, a 34% increase from $6,522 million in 2023[8] - Provider Services revenue for 2024 was $2,512 million, a 9% increase from $2,304 million in 2023[8] - Total revenues for the year ended December 31, 2024, increased to $11,266,472, up 27.8% from $8,826,175 in 2023[30] - Gross profit for the year ended December 31, 2024, was $1,588,435, representing a gross margin of 14.1% compared to 16.2% in 2023[30] - Net income attributable to BrightSpring Health Services, Inc. for the year ended December 31, 2024, was a loss of $18,062, improving from a loss of $154,603 in 2023[30] - Basic net income per share for the year ended December 31, 2024, was $0.09, compared to a loss of $1.31 per share in 2023[30] - EBITDA for the year ended December 31, 2024, was $398,130 thousand, up from $349,516 thousand in 2023, reflecting a year-over-year increase of approximately 13.9%[33] - Adjusted EBITDA for the year ended December 31, 2024, reached $588,075 thousand, compared to $537,808 thousand in 2023, indicating a growth of about 9.3%[33] Guidance and Future Outlook - 2025 revenue guidance is set between $11,600 million and $12,100 million, reflecting a growth of 15.2% to 20.1% over 2024[9] - Adjusted EBITDA guidance for 2025 is projected between $545 million and $560 million, indicating an 18.4% to 21.7% growth over 2024[15] Divestiture and Strategic Moves - The company announced a divestiture of the Community Living business to Sevita for $835 million[5] - The company expects the divestiture to enhance capital flexibility and growth rates moving forward[3] Cash Flow and Financial Position - Cash and cash equivalents increased significantly to $61,253 as of December 31, 2024, compared to $13,071 in 2023[28] - Total assets grew to $5,926,140 as of December 31, 2024, up from $5,532,721 in 2023[28] - Long-term debt decreased to $2,561,858 as of December 31, 2024, from $3,331,941 in 2023, indicating improved financial leverage[28] - Total current liabilities increased to $1,428,333 as of December 31, 2024, from $1,248,437 in 2023, indicating a rise in short-term obligations[28] - The company reported an operating income of $206,374 for the year ended December 31, 2024, compared to $147,180 in 2023, reflecting operational efficiency[30] - The cash provided by operating activities for the three months ended December 31, 2024, was $90,612 thousand, down from $162,400 thousand in the same period of 2023[32] - The net cash used in investing activities for the year ended December 31, 2024, was $(140,237) thousand, compared to $(134,433) thousand in 2023, indicating an increase in cash outflow[32] Interest and Credit Losses - The company incurred $54,866 thousand in interest expense for the three months ended December 31, 2024, compared to $83,054 thousand in the same period of 2023, reflecting a decrease of approximately 34.0%[33] - The company reported a provision for credit losses of $12,102 thousand for the three months ended December 31, 2024, compared to $4,310 thousand in the same period of 2023, representing a significant increase[32] Goodwill and Adjustments - The company’s goodwill increased to $2,671,524 as of December 31, 2024, from $2,608,412 in 2023, reflecting potential acquisitions or asset appreciation[28] - Total adjustments to EBITDA for the year ended December 31, 2024, amounted to $189,945 thousand, compared to $188,292 thousand in 2023, showing a slight increase[33] - The company reported a diluted EPS of $0.08 for the three months ended December 31, 2024, compared to a diluted loss per share of $(0.06) in the same period of 2023[36]

Core Insights - BrightSpring Health Services reported strong financial performance for Q4 and full year 2024, with significant revenue growth and improved profitability metrics [4][5][10] - The company anticipates a streamlined organization and enhanced growth rates following the divestiture of its Community Living business [3][5] Financial Highlights - Q4 2024 net revenue reached $3,053 million, a 28.6% increase from $2,375 million in Q4 2023 [4][6] - Q4 2024 gross profit was $422 million, up 14.4% from $369 million in Q4 2023 [4][6] - Q4 2024 net income was $15.4 million, compared to a net loss of $7.2 million in Q4 2023 [4][6] - Full year 2024 net revenue totaled $11,266 million, a 27.6% increase from $8,826 million in 2023 [5][6] - Full year 2024 gross profit was $1,588 million, up 10.8% from $1,434 million in 2023 [5][6] - Full year 2024 Adjusted EBITDA was $588 million, a 9.3% increase from $538 million in 2023 [5][6] Segment Performance - Pharmacy Solutions segment revenue for Q4 2024 was $2,397 million, a 34% increase from $1,785 million in Q4 2023 [6] - Provider Services segment revenue for Q4 2024 was $656 million, an 11% increase from $589 million in Q4 2023 [6] - Full year 2024 Pharmacy Solutions revenue was $8,754 million, a 34% increase from $6,522 million in 2023 [6] - Full year 2024 Provider Services revenue was $2,512 million, a 9% increase from $2,304 million in 2023 [6] Guidance and Future Outlook - For 2025, the company increased its revenue guidance to $11,600 – $12,100 million, reflecting a growth of 15.2% to 20.1% over 2024 [5][10] - Adjusted EBITDA guidance for 2025 is set at $545 – $560 million, indicating an 18.4% to 21.7% growth over 2024 [10]

Core Viewpoint - BrightSpring Health Services has announced the promotion of Jennifer Phipps to Chief Financial Officer, effective March 4, 2025, succeeding Jim Mattingly [1][4]. Company Overview - BrightSpring Health Services is a leading provider of home and community-based pharmacy and health services for complex populations, serving over 450,000 customers daily across all 50 states [5]. Leadership Transition - Jennifer Phipps has been with BrightSpring for eight years, previously serving as Chief Accounting Officer and Principal Accounting Officer, and has played a significant role in financial processes and improvements [2][4]. - Jim Mattingly, the outgoing CFO, has contributed to the company's growth and success during his tenure [4]. Jennifer Phipps' Qualifications - Phipps brings over 20 years of financial and accounting experience in the healthcare services industry, having held leadership roles at Cardinal Health and Ernst & Young [3]. - She holds an active Certified Public Accountant license and has degrees in Business Administration and Accounting from The Ohio State University [3]. Company Mission and Vision - The company aims to provide high-quality and impactful community-based pharmacy and health solutions to complex populations, with a commitment to enhancing patient care and operational efficiency [4][5].

Core Points - BrightSpring Health Services, Inc. plans to release its fourth quarter and full year 2024 financial results on March 6, 2025, prior to an earnings conference call at 8:30 a.m. ET [1] - The conference call will be accessible via registration and will include a live and archived webcast on the company's investor relations website [2] - BrightSpring Health Services provides integrated home- and community-based pharmacy and health solutions for complex populations, serving over 400,000 customers daily across all 50 states [3]