BrightSpring Health Services(US:BTSG)2024-05-02 12:55Revenue Growth - Revenue for Q1 2024 increased by $548.3 million, or 27.0%, to $2.6 billion compared to Q1 2023[131] - Pharmacy Solutions segment revenue grew by $510.0 million, or 34.8%, to $2.0 billion, while Provider Services segment revenue increased by $38.2 million, or 6.8%, to $599.6 million[131] - Total revenues for the three months ended March 31, 2024, were $2,576.6 million, an increase of $548.3 million or 27.0% compared to $2,028.4 million for the same period in 2023[167] - Revenues for Q1 2024 reached $1,977.0 million, a 34.8% increase from $1,467.0 million in Q1 2023, driven by volume growth[180] Financial Performance - Adjusted EBITDA rose by $15.2 million, or 13.2%, to $130.5 million[131] - Adjusted EBITDA for Q1 2024 was $130.5 million, up $15.2 million or 13.2% from $115.3 million in Q1 2023[177] - The company reported a net loss of $46.4 million for the three months ended March 31, 2024, compared to a net loss of $22.3 million for the same period in 2023, representing an increase in loss of $24.1 million[164] - Net loss for Q1 2024 was $46.4 million, an increase of $24.1 million from $22.3 million in Q1 2023[175] - The company incurred $86.2 million in total adjustments for the three months ended March 31, 2024, compared to $13.4 million in the same period of 2023[206] Expenses and Costs - Cost of goods for the three months ended March 31, 2024, was $1,807.1 million, reflecting an increase of $500.1 million or 38.3% from $1,307.0 million in the prior year[168] - Selling, general, and administrative expenses rose to $361.3 million for the three months ended March 31, 2024, an increase of $78.2 million or 27.6% compared to $283.2 million in the same period of 2023[171] - Selling, general, and administrative expenses for Q1 2024 were $109.0 million, up $2.7 million or 2.6% from $106.3 million in Q1 2023[186] Patient and Market Expansion - The company serves over 400,000 patients daily through approximately 10,000 clinical providers and pharmacists across all 50 states[126] - The patient census and prescriptions in pharmacy services grew by 11% and 9%, respectively, in Q1 2024 compared to Q1 2023[137] - The company opened 14 de novo offices and clinics in Q1 2024, expanding its footprint in targeted markets[146] Debt and Liquidity - Total outstanding debt as of March 31, 2024, was $2.6 billion, with a long-term debt net of debt issuance costs of $2.5 billion[233] - The Company’s leverage ratio was 4.33x as of March 31, 2024, down from 5.86x at December 31, 2023[234] - Total liquidity at the end of March 31, 2024, was $526.0 million, an increase from $431.5 million at the end of December 31, 2023[215] Legal and Compliance - The estimated financial impact of a legal settlement increased from $115.0 million to $120.0 million, reflecting increased costs associated with settling the claim[154] - The company incurred $10.5 million in legal costs and settlements for the three months ended March 31, 2024, compared to $2.0 million in the same period of 2023[206] Cybersecurity Incident - The company experienced a cybersecurity incident affecting Change Healthcare, resulting in an estimated increase to accounts receivable of approximately $20.0 million for the three months ended March 31, 2024[156] Shareholder and Equity Information - The company completed its initial public offering on January 30, 2024, raising net proceeds of $656.5 million from common stock and $389.0 million from tangible equity units[150] - The company granted approximately $63.3 million in non-cash share-based compensation in January 2024, with an expectation to grant approximately 7.7 million restricted stock units starting in Q2 FY 2024[153] - The Company issued 8,000,000 Tangible Equity Units (TEUs) with a stated amount of $50.00 per unit, resulting in annual quarterly cash installments equivalent to 6.75% per year[232] Interest and Taxation - Interest expense, net decreased to $65.0 million for the three months ended March 31, 2024, down $13.2 million or 16.8% from $78.2 million in the prior year[173] - Income tax benefit increased to $23.3 million for the three months ended March 31, 2024, compared to $4.3 million in the same period of 2023, due to an increase in pre-tax book loss and effective tax rate[174] - Interest expense for the three months ended March 31, 2024, included $9.6 million related to cash flow hedges of interest rate risk[231] Cash Flow and Investments - Net cash used in operating activities was $78.9 million for the three months ended March 31, 2024, a significant decrease from net cash provided by operating activities of $39.9 million in the same period of 2023[216] - Net cash used in investing activities increased by $13.5 million, from $17.5 million in Q1 2023 to $30.9 million in Q1 2024, primarily due to a $4.0 million increase in property and equipment purchases and $9.4 million paid for acquisitions[218] - Net cash provided by financing activities was $154.8 million for Q1 2024, mainly from net proceeds of $1,045.5 million from IPO offerings, offset by $793.4 million in long-term debt repayments[219]