BrightSpring Health Services(BTSG) - 2025 Q1 - Quarterly Results

First Quarter 2025 Earnings Overview BrightSpring reported strong Q1 2025 financial results, with significant revenue and Adjusted EBITDA growth, and positive net income Financial Highlights (Q1 2025) BrightSpring reported strong Q1 2025 financial results, with significant growth in revenue, gross profit, and Adjusted EBITDA, and a return to net income | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net Revenue | $2,878 | $2,286 | 25.9% | | Gross Profit | $338 | $292 | 15.7% | | Net Income (Loss) from Cont. Ops | $9.2 | $(56.0) | N/A | | Adjusted EBITDA | $131 | $102 | 28.2% | CEO Commentary CEO Jon Rousseau highlighted the company's foundational focus on quality and efficient home and community-based care for complex populations, expressing satisfaction with Q1 results across Pharmacy and Provider service lines and confidence in future service delivery - CEO Jon Rousseau emphasized the company's foundational focus on quality and efficient care in home and community settings for complex populations, driving growth and financial performance[2] - The company is pleased with Q1 results across Pharmacy and Provider service lines, reaching more patients, leveraging its scaled platform, and investing in best practices[2] Full Year 2025 Guidance Update BrightSpring increased its full-year 2025 guidance for both Revenue and Adjusted EBITDA, excluding the Community Living business, projecting strong growth across both Pharmacy and Provider segments - BrightSpring increased its full-year 2025 guidance for Revenue and Adjusted EBITDA, excluding the Community Living business and the effects of any future closed acquisitions[5][7] | Metric | Guidance Range (Millions) | Growth vs FY2024 (%) | | :---------------------- | :------------------------ | :------------------- | | Net Revenue | $12,000 - $12,500 | 19.1% - 24.1% | | Pharmacy Segment Revenue | $10,550 - $11,000 | 20.5% - 25.7% | | Provider Segment Revenue | $1,450 - $1,500 | 10.0% - 13.8% | | Adjusted EBITDA | $570 - $585 | 23.9% - 27.2% | Strategic Updates The planned divestiture of the Community Living business to Sevita, announced in January 2025, remains on track for completion this year - The planned divestiture of the Community Living business to Sevita, announced on January 20, 2025, is on track to be completed this year[5] Company Information This section provides an overview of BrightSpring Health Services and details regarding its Q1 2025 earnings webcast and conference call About BrightSpring Health Services BrightSpring Health Services is a leading provider of complementary home- and community-based pharmacy and provider health solutions for complex populations, serving over 450,000 patients daily across all 50 states with a focus on quality metrics and cost reduction - BrightSpring provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care[12] - The company serves over 450,000 customers, clients, and patients daily across all 50 states through service lines including pharmacy, home health care and primary care, and rehabilitation and behavioral health[12] - BrightSpring consistently demonstrates strong quality metrics, improves the quality of life and health for high-need individuals, and reduces overall costs to the healthcare system[12] Webcast and Conference Call Details BrightSpring hosted a conference call on May 2, 2025, to discuss Q1 2025 results, with a live and archived webcast available on its investor relations website, where supplemental financial information was also posted - A conference call was held on May 2, 2025, at 8:30 a.m. Eastern Time, with online registration required for investors[10] - A live and archived webcast, along with supplemental financial information, is available on the 'Events & Presentations' section of the BrightSpring investor relations website[11] Consolidated Financial Statements This section presents BrightSpring's consolidated balance sheets, statements of operations, and cash flows for the first quarter of 2025 and comparative periods Consolidated Balance Sheets As of March 31, 2025, BrightSpring's total assets decreased slightly compared to December 31, 2024, primarily due to a reclassification of non-current assets held for sale to current assets held for sale, while total liabilities also decreased | Item | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :----------------------------------- | :------------------------- | :-------------------------- | :----------------- | | Total assets | $5,846,945 | $5,926,140 | $(79,195) | | Current assets held for sale | $836,183 | $131,447 | $704,736 | | Non-current assets held for sale | — | $687,960 | $(687,960) | | Total liabilities | $4,156,378 | $4,274,555 | $(118,177) | | Total shareholders' equity | $1,687,369 | $1,647,855 | $39,514 | Consolidated Statements of Operations For Q1 2025, BrightSpring reported a significant increase in total revenues and a shift from a net loss to net income from continuing operations, driven by higher product and service revenues and reduced interest expense | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :------------------------------------------------- | :------------------ | :------------------ | :----------------- | | Total revenues | $2,878,129 | $2,285,766 | $592,363 | | Gross profit | $338,369 | $292,491 | $45,878 | | Operating income (loss) | $50,739 | $(15,335) | $66,074 | | Interest expense, net | $41,763 | $54,470 | $(12,707) | | Income (loss) from continuing operations, net of taxes | $9,216 | $(56,027) | $65,243 | | Net income (loss) attributable to BrightSpring | $29,542 | $(45,750) | $75,292 | | Basic EPS from continuing operations | $0.05 | $(0.31) | N/A | | Diluted EPS from continuing operations | $0.05 | $(0.31) | N/A | Consolidated Statements of Cash Flows BrightSpring's operating activities generated positive cash flow in Q1 2025, a significant improvement from a net cash outflow in Q1 2024, while cash used in investing activities decreased and financing activities shifted from providing cash to using cash | Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change (Thousands) | | :-------------------------------------- | :------------------ | :------------------ | :----------------- | | Net cash provided by (used in) operating activities | $101,598 | $(78,859) | $180,457 | | Net cash used in investing activities | $(24,191) | $(30,938) | $6,747 | | Net cash (used in) provided by financing activities | $(86,018) | $154,763 | $(240,781) | | Net (decrease) increase in cash and cash equivalents | $(8,611) | $44,966 | $(53,577) | | Cash and cash equivalents at end of period | $52,642 | $58,037 | $(5,395) | Non-GAAP Financial Measures This section explains BrightSpring's non-GAAP financial measures, including EBITDA and Adjusted EBITDA, and provides their reconciliation to GAAP net income Explanation of Non-GAAP Measures BrightSpring uses non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide investors and analysts with a clearer view of core operating performance by excluding non-recurring or non-operational items, aiding in performance comparison and strategic evaluation, while acknowledging their limitations as analytical tools - Non-GAAP measures (EBITDA, Adjusted EBITDA) are used to supplement GAAP results, assisting investors and analysts in comparing operating performance consistently by excluding items not indicative of core operations[19][21] - Management uses these measures for evaluating business strategies, budgeting, establishing incentive compensation, and comparing performance against peer companies[19] - EBITDA is defined as net income (loss) from continuing operations before income tax benefit, interest expense, net, and depreciation and amortization. Adjusted EBITDA further excludes non-cash share-based compensation, acquisition/integration/transaction costs, restructuring/divestiture costs, legal costs, significant projects