Financial Performance - BrightSpring's total revenue for Q1 2025 reached $2878 million, a 25.9% increase year-over-year[18] - Adjusted EBITDA for Q1 2025 was $131.1 million, representing a 28.2% growth compared to the previous year[18] - Pharmacy Solutions revenue grew by 28.1% to $2532 million in Q1 2025[18] - Provider Services revenue increased by 12.1% to $346 million in Q1 2025[18] Segment Performance - Within Pharmacy Solutions, Infusion and Specialty revenue saw a 33.2% increase, reaching $1952 million[18] - Home and Community Pharmacy revenue grew by 13.6% to $581 million[18] - Pharmacy Segment EBITDA increased by 31.2% to $116 million[18] - Home Health Care revenue within Provider Services grew by 20.9% to $178 million[18] Business Metrics - Home Health Care average daily census increased by 11.6% year-over-year, reaching 30,241 in Q1 2025[29] - Prescriptions dispensed in Pharmacy Solutions increased by 10.4% year-over-year[25] - Revenue per script in Pharmacy Solutions grew by 16.0% year-over-year to $232.79[25] Guidance - The company updated its FY 2025 total revenue guidance to a range of $12000 million to $12500 million, representing a 19.1% to 24.1% year-over-year growth[37]

"BrightSpring's focus on serving patients with quality and efficient care in home and community settings continues to be foundational to the Company's growth and financial performance," said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. "We are pleased with our first quarter results across the Pharmacy and Provider service lines, as we reach more patients with high-quality solutions, leverage our scaled platform and processes, and invest in best practices and the future. We ...

Core Viewpoint - BrightSpring Health Services, Inc. reported strong financial results for Q1 2025, with significant increases in revenue and adjusted EBITDA, and has raised its full-year guidance for revenue and adjusted EBITDA [1][6]. Financial Performance - Net Revenue for Q1 2025 reached $2,878 million, a 25.9% increase from $2,286 million in Q1 2024 [3][6]. - Gross Profit for the same period was $338 million, up 15.7% from $292 million in Q1 2024 [3][6]. - Net Income from Continuing Operations was $9.2 million, a turnaround from a Net Loss of $56.0 million in Q1 2024 [3][6]. - Adjusted EBITDA for Q1 2025 was $131 million, reflecting a 28.2% increase compared to $102 million in Q1 2024 [4][6]. Segment Performance - Pharmacy Solutions Revenue was $2,532 million, up 28% from $1,977 million in Q1 2024 [5]. - Provider Services Revenue increased by 12% to $346 million from $309 million in Q1 2024 [5]. Guidance and Future Outlook - The company has increased its 2025 Revenue guidance to a range of $12,000 million to $12,500 million, representing a growth of 19.1% to 24.1% [6][14]. - Adjusted EBITDA guidance for 2025 is now set at $570 million to $585 million, indicating a growth of 23.9% to 27.2% [6][14]. Strategic Initiatives - The planned divestiture of the Community Living business to Sevita is on track to be completed within the year [6].

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.14, reflecting a +16.7% change, and revenues projected at $2.73 billion, up 5.9% from the previous year [1][3]. Earnings Expectations - The stock price may increase if the actual earnings exceed expectations in the upcoming report scheduled for May 2, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 1.73% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +106.62% for BrightSpring, suggesting analysts have become more optimistic about the company's earnings prospects [11]. - The company currently holds a Zacks Rank of 3, indicating a hold position, which suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, BrightSpring exceeded the expected EPS of $0.19 by delivering $0.22, resulting in a surprise of +15.79%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - Another player in the Zacks Medical Services industry, Organon (OGN), is expected to report earnings of $0.92 per share, reflecting a year-over-year decline of -24.6%, with revenues projected at $1.54 billion, down 4.9% [17]. - Organon's consensus EPS estimate has been revised down by 1.7% over the last 30 days, and it currently has a negative Earnings ESP of -1.91%, making it difficult to predict a beat on the consensus EPS estimate [18].

Company Announcement - BrightSpring Health Services, Inc. plans to release its first quarter 2025 financial results on May 2, 2025, prior to an earnings conference call at 8:30 a.m. ET on the same day [1] Conference Call Details - Participants can register for the conference call before the 8:30 a.m. ET start, and a live and archived webcast will be available on the Company's investor relations website [2] Company Overview - BrightSpring Health Services provides home- and community-based pharmacy and provider health solutions for complex populations, serving over 450,000 customers daily across all 50 states [3] - The Company offers services including pharmacy, home health care, primary care, rehabilitation, and behavioral health, demonstrating strong quality metrics and improving health outcomes while reducing healthcare costs [3]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $11.3 billion, representing a 28% year-over-year growth, with adjusted EBITDA of $588 million, reflecting a 16% growth year-over-year [14][33][35] - In Q4 2024, total revenue was $3.1 billion, marking a 29% increase from the prior year, with adjusted EBITDA of $167 million, a 17% increase compared to Q4 2023 [32][34] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue for 2024 was $8.8 billion, a 34% increase year-over-year, while Provider Services revenue was $2.5 billion, showing a 9% growth [14][33] - In Q4 2024, Pharmacy Solutions revenue was $2.4 billion, achieving 34% year-over-year growth, and Provider Services revenue was $656 million, representing an 11% increase [32][33] Market Data and Key Metrics Changes - The Infusion and Specialty business grew revenue by 42% year-over-year in Q4, driven by specialty script growth of 35% [22][32] - Home and Community Pharmacy revenue grew 17% year-over-year in Q4, supported by script growth and new customer acquisitions [24][32] Company Strategy and Development Direction - The company is focused on operational efficiencies and quality improvements, with a commitment to delivering high-quality services and expanding its reach to more patients [12][20] - A definitive agreement to divest the community living business is in place, expected to close in 2025, which will streamline operations and enhance growth rates in remaining segments [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit growth rates, with expectations for adjusted EBITDA growth of 5% to 6% post-divestiture of the community living business [78][80] - The company anticipates continued growth in the Infusion business, targeting around 20% growth in 2025 [54][88] Other Important Information - The company has implemented over 100 efficiency projects, contributing to EBITDA growth and reinvestment in quality and compliance initiatives [65][66] - The company is optimistic about the impact of the Inflation Reduction Act (IRA) on its operations, with a focus on ensuring appropriate margins for specialty drugs [110][111] Q&A Session Summary Question: Changes in the competitive landscape for limited distribution drugs - Management noted no significant shifts in the market, emphasizing a long history of operational excellence and strong service levels [46][48] Question: Growth trajectory and margin potential for the Infusion business - Management highlighted a focus on operational standardization and best practices, with expectations for 20% growth in the Infusion business in 2025 [54][52] Question: Cumulative savings from internal operating cost-saving initiatives - Management indicated that numerous efficiency projects have contributed to EBITDA, with ongoing efforts expected to yield further benefits [66][65] Question: Development opportunities in Home Health and Hospice - Management aims to double Home Health and Hospice revenue over the next five years, supported by improved quality ratings and reimbursement discussions [68][70] Question: Sustainability of growth rates post-community living divestiture - Management expects continued double-digit growth, with a potential increase in growth rates due to the divestiture [78][80] Question: ACO arrangements and their impact - Management views ACO participation as an upside opportunity, with positive outcomes expected from shared savings initiatives [94][96] Question: Specialty pricing and revenue growth stability - Management reported stability in the specialty market, with a diverse portfolio mitigating risks to revenue growth [100][101] Question: Impact of the IRA on future growth - Management discussed potential downside risks related to the IRA but remains optimistic about overall growth due to the company's diversified operations [110][111] Question: Refinement of business mix post-divestiture - Management sees the divestiture as an opportunity to streamline operations and enhance the focus on pharmacy and provider services [116][118]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $11,300,000,000, representing a 28% year-over-year growth, with Q4 revenue of $3,100,000,000 reflecting a 29% increase from the prior year [10][25] - Adjusted EBITDA for the full year 2024 was $588,000,000, showing a 16% growth year-over-year, while Q4 adjusted EBITDA was $167,000,000, growing 17% compared to Q4 2023 [11][27] - The company increased its revenue and adjusted EBITDA guidance for 2025, expecting total revenue between $11,600,000,000 and $12,100,000, and adjusted EBITDA between $545,000,000 and $560,000,000 [30][31] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue for 2024 was $8,800,000,000, a 34% increase year-over-year, with Q4 revenue of $2,400,000,000 growing 34% compared to Q4 2023 [10][25] - Provider Services revenue for 2024 was $2,500,000,000, reflecting a 9% growth year-over-year, with Q4 revenue of $656,000,000, an 11% increase from the prior year [10][25] - Home Health Care revenue grew 17% year-over-year in Q4, while Community and Rehab Care revenue increased by 8% [20][26] Market Data and Key Metrics Changes - The company reported a 13% lower healthcare cost for patients in skilled nursing facilities and a 31% reduction for patients in assisted living, indicating effective cost management and care delivery [14] - The company achieved high customer satisfaction scores, with a net promoter score of 98 for Onco360 and 100 for CareMed, reflecting strong service quality in specialty pharmacy [12][16] Company Strategy and Development Direction - The company is focused on operational efficiencies and quality improvements, aiming to deepen its reach to more patients and enhance service delivery across pharmacy and provider businesses [10][23] - The divestiture of the Community Living business is expected to streamline operations and enhance growth rates in remaining segments, with a strategic focus on home health care, rehab, and personal care [22][23] - The company continues to invest in technology and automation to drive efficiencies and improve service delivery across all business lines [16][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit growth rates, emphasizing a strong operational infrastructure and a focus on quality and efficiency [60][63] - The company is optimistic about the reimbursement environment for home health and hospice services, anticipating enhanced rates due to improved quality metrics [51][56] - Management acknowledged potential risks from the IRA but remains confident in the company's diversified growth drivers to absorb any impacts [87] Other Important Information - The company has launched 12 limited distribution drugs (LDDs) in 2024, with plans for an additional 16 to 18 launches in the next 12 to 18 months, indicating a robust pipeline in specialty pharmacy [18] - The company has implemented over 100 procurement and automation programs to drive process improvements and cost efficiencies [16][48] Q&A Session Summary Question: Comments on limited distribution drug business and competitive landscape - Management noted no significant changes in the market, with a trend towards more niche therapies and a narrowing of pharmacy networks, which has benefited the company [34] Question: Growth trajectory for the infusion business - Management expects the infusion business to grow above 20% in 2025, driven by operational improvements and a focus on specialty care [40] Question: Cumulative savings from internal efficiency initiatives - Management highlighted ongoing efforts in process optimization and automation, contributing to EBITDA growth and reinvestment in the business [49] Question: Outlook for home health and hospice development - Management aims to double home health and hospice revenue in the next five years, supported by a favorable reimbursement environment [51] Question: ACO arrangements and their impact - Management views ACO participation as an upside opportunity, with expectations for shared savings based on positive outcomes [74] Question: Specialty pricing and revenue growth sustainability - Management reported stability in specialty pricing and a diverse portfolio that supports continued revenue growth [77]

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]