BrightSpring Health Services(BTSG) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 2024 was $2,730 million, representing a 26.0% increase from $2,167 million in Q2 2023[2] - Net income for Q2 2024 was $19.4 million, compared to $2.8 million in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was $139 million, down 6.9% from $149 million in Q2 2023; however, excluding a $30 million Quality Incentive Payment in 2023, it was up 16.7% compared to $119 million in Q2 2023[2][3] - Total revenues for Q2 2024 reached $2,730,210, an increase of 25.9% compared to $2,166,724 in Q2 2023[26] - Product revenues were $2,114,491 in Q2 2024, up 32.4% from $1,596,839 in Q2 2023[26] - Gross profit for Q2 2024 was $389,033, compared to $372,070 in Q2 2023, reflecting a gross margin improvement[26] - Operating income decreased to $62,414 in Q2 2024 from $79,616 in Q2 2023, indicating challenges in managing operating expenses[26] - Net income for Q2 2024 was $19,441, a significant recovery from a net loss of $2,766 in Q2 2023[26] - The company reported a basic earnings per share of $0.10 for Q2 2024, compared to $0.03 in Q2 2023[26] Revenue Guidance - Full year 2024 revenue guidance increased to between $10,450 million and $10,900 million, reflecting growth of 18.4% to 23.5% over 2023[5] - Adjusted EBITDA guidance for 2024 is set between $570 million and $580 million, indicating growth of 12.2% to 14.2% over 2023[5] - The Pharmacy Segment revenue for 2024 is projected to be between $8,000 million and $8,400 million, representing growth of 22.7% to 28.8% over 2023[5] - The Provider Segment revenue for 2024 is expected to be between $2,450 million and $2,500 million, indicating growth of 6.3% to 8.5% over 2023[5] Operational Insights - The company expressed confidence in its operational excellence and ability to provide efficient care, positioning itself well for the remainder of 2024 and into 2025[2] - The conclusion of the Quality Incentive Payment program is expected to impact future Adjusted EBITDA positively, as it was a significant factor in the previous year's results[3] - The company plans to continue focusing on strategic investments and operational efficiencies to enhance future performance[18] Cash Flow and Assets - Total current assets increased to $1,521,879 as of June 30, 2024, from $1,456,641 at the end of 2023[22] - Total liabilities decreased to $3,999,212 as of June 30, 2024, down from $4,920,172 at the end of 2023[24] - Cash and cash equivalents rose to $25,027 as of June 30, 2024, compared to $13,071 at the end of 2023[22] - Cash used in operating activities for Q2 2024 was $(15,225,000), an improvement from $(25,204,000) in Q2 2023[27] - Total cash used in investing activities for Q2 2024 was $(57,692,000), compared to $(45,301,000) in Q2 2023, indicating increased investment[27] - The company reported a net cash increase of $39,907,000 from financing activities in Q2 2024, compared to $70,581,000 in Q2 2023[27] - Cash and cash equivalents at the end of Q2 2024 were $25,027,000, up from $11,256,000 at the end of Q2 2023[27] Debt and Costs - Long-term debt borrowings in Q2 2024 amounted to $2,566,000,000, with no new borrowings reported in Q2 2023[27] - Provision for credit losses in Q2 2024 was $6,496,000, up from $5,958,000 in Q2 2023, indicating a rise in expected credit losses[27] - The company incurred $5,022,000 in acquisition-related costs in Q2 2024, compared to $5,789,000 in Q2 2023[28] - Depreciation and amortization for Q2 2024 was $50,071,000, slightly down from $50,205,000 in Q2 2023[28] Earnings Per Share - For the three months ended June 30, 2024, the diluted EPS was $0.10, compared to $0.03 for the same period in 2023, representing a 233% increase[31] - The adjusted EPS for the six months ended June 30, 2024, was $0.22, up from $0.04 in 2023, indicating a significant improvement[31] - Non-cash share-based compensation for the three months ended June 30, 2024, was $0.07, compared to $0.01 in 2023, reflecting a 600% increase[31] - Acquisition, integration, and transaction-related costs for the three months ended June 30, 2024, were $0.02, down from $0.05 in 2023, showing a 60% decrease[31] - Restructuring and divestiture-related costs for the three months ended June 30, 2024, were $0.02, compared to $0.06 in 2023, a reduction of 67%[31] - The weighted average common shares outstanding used in calculating diluted EPS for the three months ended June 30, 2024, was 208,987 thousand, up from 126,449 thousand in 2023[31] - The income tax impact on adjustments for the three months ended June 30, 2024, was $(0.12), compared to $(0.04) in 2023[32] Other Costs - The company incurred ransomware attack response costs of $0.5 million for the three months ended June 30, 2023[29] - Management fees ceased following the completion of the IPO, with $22.7 million in termination fees recorded[29] - The company reported unreimbursed COVID-19 related costs of $0.00 for the three months ended June 30, 2024[31]