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]

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]

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]