Revenue and Growth - Revenue for Q1 2024 increased by $548.3 million, or 27.0%, to $2.6 billion compared to Q1 2023[78] - 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[78] - Total revenues for Q1 2024 were $2,576.6 million, a 27.0% increase from $2,028.4 million in Q1 2023[100] - Revenues for the Pharmacy Solutions segment reached $1,977.0 million in Q1 2024, a $510.0 million or 34.8% increase from $1,467.0 million in Q1 2023[108] - Home Health Care revenue was $242.0 million, up $19.1 million or 8.6% from $222.9 million in the prior year[113] - Community and Rehab Care revenue increased to $357.6 million, reflecting a $19.1 million or 5.6% rise from $338.5 million in the previous year[113] Financial Performance - Adjusted EBITDA for Q1 2024 increased by $15.2 million, or 13.2%, to $130.5 million[78] - Adjusted EBITDA for Q1 2024 was $130.5 million, up 13.2% from $115.3 million in Q1 2023[100] - Segment EBITDA for the Pharmacy Solutions segment was $88.2 million for Q1 2024, a $5.9 million or 7.1% increase from $82.3 million in Q1 2023[111] - Gross profit for Q1 2024 was $169.9 million, an increase of $9.9 million or 6.2% from $160.0 million in Q1 2023[109] - Gross profit reached $199.5 million, up $24.8 million or 14.2% from $174.7 million in the prior year[114] - The company reported a net loss of $46.4 million for Q1 2024, compared to a net loss of $22.3 million in Q1 2023[100] - The diluted EPS for the three months ended March 31, 2024, was $(0.26), compared to $(0.18) for the same period in 2023, reflecting a decline[123] - Adjusted EPS improved to $0.12 for the three months ended March 31, 2024, from $(0.10) in the same period of 2023[123] Expenses and Costs - The cost of goods for Q1 2024 was $1,807.1 million, reflecting a 38.3% increase from $1,306.9 million in Q1 2023[100] - Selling, general, and administrative expenses rose to $361.3 million in Q1 2024, a 27.6% increase from $283.2 million in Q1 2023[100] - Cost of services increased to $400.1 million for Q1 2024, up $13.5 million or 3.5% from $386.7 million in Q1 2023[102] - Selling, general, and administrative expenses were $134.4 million, reflecting a $7.2 million or 5.7% increase from $127.2 million in the previous year[115] Operational Highlights - The company serves over 400,000 patients daily through approximately 10,000 clinical providers and pharmacists across all 50 states[77] - Pharmacy services patient census and prescriptions grew by 11% and 9%, respectively, in Q1 2024 compared to Q1 2023[84] - In Q1 2024, the company opened 14 de novo offices and clinics, enhancing its presence in targeted markets[89] - Average daily census for Home Health Care increased to 42,928, up 4,103 or 10.6% from 38,825[113] - Prescriptions dispensed increased to 9,854,495 in Q1 2024, a growth of 826,584 or 9.2% from 9,027,911 in Q1 2023[108] Cash Flow and Liquidity - Net cash used in operating activities was $78.9 million for the three months ended March 31, 2024, compared to net cash provided of $39.9 million in the same period in 2023, a variance of $118.8 million[126] - Net cash used in investing activities increased to $30.9 million for the three months ended March 31, 2024, from $17.5 million in the same period of 2023, primarily due to $9.4 million paid for acquisitions[129] - Net cash provided by financing activities was $154.8 million for the three months ended March 31, 2024, primarily due to net proceeds from IPO offerings of $1,045.5 million[130] - The ending cash balance as of March 31, 2024, was $58.0 million, compared to $13.1 million at the end of December 31, 2023[127] - Total liquidity at the end of the period was $525.9 million, an increase from $431.5 million at the end of December 31, 2023[127] Debt and Financing - The company completed its IPO on January 30, 2024, raising net proceeds of $656.5 million from common stock and $389.0 million from tangible equity units[92] - Total outstanding debt as of March 31, 2024, was $2.639 billion, down from $3.414 billion as of December 31, 2023[135] - The company's leverage ratios were 4.33x and 5.86x under the First Lien and Second Lien Credit Agreements, respectively, as of March 31, 2024, and December 31, 2023[137] - The company incurred a loss on extinguishment of debt of $12.7 million related to the write-off of unamortized debt issuance costs following the IPO offerings[132] Challenges and Risks - The company faces challenges from inflation, particularly in labor costs, which are expected to rise due to a shortage of qualified caregivers[140] - The company anticipates continued growth in demand for homecare services, which may impact operational costs[140] - The company has not experienced significant impacts from inflation to date, but future cost increases remain a concern[140] - A hypothetical 1% increase in interest rates would decrease the company's cash flows by $6.4 million annually based on the debt level as of March 31, 2024[141]
Brightspring Health Services, Inc.(BTSGU) - 2024 Q1 - Quarterly Report