Group 1: Company Performance - BrightSpring Health Services, Inc. (BTSG) shares increased by 12.6% to close at $20.89, with notable trading volume compared to typical sessions [1] - The company anticipates full year 2024 revenue between $11.2 million and $11.3 million, indicating a growth of 26.9% to 28.0% [2] - Quarterly earnings are expected to be $0.23 per share, reflecting a year-over-year increase of 483.3%, with revenues projected at $2.95 billion, up 24.1% from the previous year [3] Group 2: Market Sentiment and Estimates - The consensus EPS estimate for BrightSpring has remained unchanged over the last 30 days, suggesting that stock price movements may not continue without earnings estimate revisions [4] - BrightSpring Health Services holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] - In comparison, Premier, Inc. (PINC), another company in the same industry, has a Zacks Rank of 2 (Buy) and reported a 1.5% decline in its last trading session [4][5]

Core Insights - BrightSpring Health Services Inc (BTSG) has agreed to sell its Community Living business, ResCare Community Living, to Sevita for $835 million in cash, with the deal expected to close in 2025 [1] - The divestiture aligns with BrightSpring's strategic focus on enhancing core services such as home health, hospice, primary care, rehabilitation, and pharmacy solutions [1] - The company anticipates operational efficiencies and stronger revenue growth in its Provider Services portfolio post-sale, supported by an optimized payer mix and focus on high-demand growth markets [2][3] Financial Performance - The Community Living business generated approximately $1.2 billion in revenue and $128 million in adjusted EBITDA in 2024, serving 14,000 clients with 13,500 employees [3] - BrightSpring expects after-tax proceeds of $715 million from the sale, primarily allocated toward debt reduction, improving its financial position [3] - Preliminary 2024 sales are projected to be between $11.2 billion and $11.3 billion, reflecting a year-over-year increase of 26.9% to 28.0% [4] - For 2025, sales are expected to be between $11.5 billion and $12 billion [5] Segment Revenue Expectations - Pharmacy Segment Revenue is anticipated to be between $8.7 billion and $8.75 billion, while Provider Segment Revenue is expected to be between $2.5 billion and $2.55 billion [8] - Adjusted EBITDA for 2024 is expected to be approximately $588 million, with Community Living Adjusted EBITDA around $128 million [8] - Future Pharmacy Segment Revenue is projected to be between $10.05 billion and $10.5 billion, and Provider Segment Revenue between $1.45 billion and $1.5 billion [8] Stock Performance - BTSG stock has increased by 13.6%, reaching $21.08 at the last check [6]

Transaction Overview - BrightSpring Health Services has entered into a definitive agreement to divest its Community Living business, ResCare Community Living, to Sevita for $835 million in cash consideration [1] - The transaction is expected to close in 2025, subject to regulatory approvals and typical closing conditions [1] - The divested Community Living business is expected to generate approximately $1.2 billion in Revenue and $128 million of Adjusted EBITDA in 2024 [8] Post-Divestiture Business Focus - Following the divestiture, BrightSpring's Provider Services will focus on Home Health and Hospice, Personal Care, Rehabilitation Services, and Primary Care [2] - The streamlined service offerings are expected to result in increased strategic focus, operational efficiencies, and greater clinical integration across the Provider Services and Pharmacy Solutions segments [4] - The transaction is expected to be accretive to both Company and Provider Services Revenue growth and Adjusted EBITDA growth [2] Financial Impact and Use of Proceeds - BrightSpring expects to realize approximately $715 million of after-tax cash proceeds from the transaction [9] - The net proceeds will primarily be used for debt paydown, strengthening the Company's balance sheet and reducing interest expense [9] - The divestiture is expected to increase Company Revenue and EBITDA Growth Rates and Cash Conversion, as well as Provider Services Revenue and EBITDA Growth Rates and Margin [7] Preliminary 2024 Results and 2025 Guidance - BrightSpring expects to report full year 2024 financial results above the guidance previously provided, with Net Revenue of $11,200 million to $11,300 million and Adjusted EBITDA of approximately $588 million [16] - For 2025, the Company is initiating guidance excluding the Community Living business, with Net Revenue expected to be $11,500 million to $12,000 million and Adjusted EBITDA expected to be $540 million to $555 million [17] Strategic Rationale - The divestiture allows BrightSpring to focus on a concentrated group of customers, patients, and stakeholders, maximizing exposure to target growth markets such as home health, rehab, primary care, hospice, and specialty and home and community pharmacy [4] - The transaction accelerates the Company's deleveraging path towards the long-term target of less than 3.0x [4] Industry and Company Background - BrightSpring Health Services is a leading provider of home and community-based pharmacy and health services for complex populations, serving over 400,000 customers, clients, and patients daily [19] - Sevita, the acquirer, has over 50 years of experience in providing home and community-based care for individuals with intellectual and developmental disabilities, serving 50,000 individuals in 40 states [20]

The Medical Services sector is experiencing significant transformation fueled by advancements in technology, increased adoption of value-based care and heightened focus on patient-centric solutions. Growing demand for remote treatment has led to a tremendous upsurge in digital healthcare options over the past few years. Demand for digital healthcare treatment continues to grow in the form of telemedicine-focused online medical and AI-powered technology services backed by the adoption of data and analytics. ...

LOUISVILLE, Ky., Dec. 11, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, completed the successful refinancing of all of its $2.55 billion Term Loan B facility due February 2031, through its subsidiary Phoenix Guarantor Inc. BrightSpring incurred no additional indebtedness as a result of the transaction. The Company’s refinanced facility was repriced at SOFR + ...

LOUISVILLE, Ky., Nov. 26, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services (“BrightSpring” or “BrightSpring Health Services”) (NASDAQ: BTSG) is proud of its specialty pharmacy partner, Onco360®, for being selected as the national pharmacy partner for multiple medications approved to treat advanced cancers and blood disease. “Our partner Onco360 is rapidly bringing innovative medicines and treatments to market to help improve the lives of patients living with once untreatable, rare diseases,” said Brigh ...

LOUISVILLE, Ky., Nov. 21, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG) announced today that Company management will participate at two upcoming virtual investor conferences. BTIG Virtual Digital Health Forum Panel on Monday, November 25th at 9:00AM ET Bank of America Virtual Home Care Conference 2024Fireside Chat on Tuesday, December 10th at 2:10PM ET A live and archived webcast of the Bank of America Home Care Conference Fireside Chat will be ...

LOUISVILLE, Ky., Nov. 06, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services (“BrightSpring” or “BrightSpring Health Services”) (NASDAQ: BTSG) is proud that CareMed, a BrightSpring company and leading independent Specialty Pharmacy, was selected by Eisai to be the national specialty pharmacy provider for Leqembi®, a cutting-edge treatment for Alzheimer’s disease. “We’re proud of the work CareMed is doing with manufacturers and prescribers to improve and extend the lives of patients living with mild cogni ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $2.9 billion, representing a 29% year-over-year growth [7][24] - Adjusted EBITDA was $151 million, reflecting a 16% growth year-over-year [7][27] - The company raised its total revenue guidance for 2024 to a range of $11.0 billion to $11.3 billion and adjusted EBITDA guidance to $580 million to $585 million [32][33] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue was $2.3 billion, achieving a 35% growth year-over-year [24] - Infusion and Specialty business revenue grew 42% year-over-year, while home and community pharmacy revenue increased by 19% [11][24] - Provider Services segment revenue grew 10% year-over-year, with home healthcare revenue increasing by 13% and community and rehab care revenue growing by 8% [25][16] Market Data and Key Metrics Changes - Total scripts dispensed year-to-date showed a 15% growth compared to last year, driven by a 36% increase in Specialty scripts [11] - The company reported a 16% increase in average daily census in home healthcare, reaching over 46,000 [19] Company Strategy and Development Direction - The company continues to focus on M&A and de novo expansion, with a strong acquisition pipeline to augment organic growth [10] - BrightSpring aims to drive operational best practices and volume growth in attractive markets while providing high-quality, lower-cost care [22] - The company is investing in its Infusion business to improve operational efficiencies and profitability, expecting results from these investments in 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on its updated 2024 outlook, citing broad-based strength across Pharmacy and Provider segments [21][22] - The management highlighted the positive impact of changes in Part D on drug affordability, which is expected to drive volume growth [57][58] Other Important Information - The company received a 3-year CARF accreditation in Indiana, indicating high-quality service delivery [18] - A new independent director, Dr. Steve Miller, was added to the Board, bringing extensive clinical leadership experience [23] Q&A Session Summary Question: Margin expectations for Q4 - Management expects Q4 to be the highest margin quarter due to various factors including the launch of a generic drug and onboarding of new customers [36] Question: Impact of biosimilars and pricing adjustments - Management indicated minimal impact from biosimilars in their Specialty pharmacy business, focusing on operational initiatives for future growth [38] Question: Update on large long-term care operator negotiations - Successful onboarding of a large customer across over 200 buildings was confirmed, with expectations of increased EBITDA as costs decrease [42][44] Question: Impact of the Inflation Reduction Act - Management noted that the IRA's impact is primarily seen in 2026, with no significant risk identified for the company [48][49] Question: Growth drivers for 2025 - Management highlighted multiple growth drivers including specialty pharmacy, infusion, home health, and hospice services, expecting continued double-digit growth [66][73] Question: Capital deployment priorities - The company plans to focus on small, accretive transactions in pharmacy and provider services, maintaining a balanced approach to acquisitions and de novo expansions [84][86]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41938 | --- | |----------------------------------------------------------------------------| | | | | | | | Delaware | | (Stat ...