Revenue Growth - Revenue increased by $592.4 million, or 25.9%, to $2,878.1 million in Q1 2025 compared to Q1 2024[145] - Pharmacy Solutions segment revenue grew by $555.1 million, or 28.1%, to $2,532.2 million, representing 88.0% of total revenue[142] - Provider Services segment revenue increased by $37.2 million, or 12.1%, to $345.9 million, accounting for 12.0% of total revenue[142] - Total revenues for Q1 2025 were $2,878.1 million, an increase of $592.4 million or 25.9% compared to Q1 2024[172] - Pharmacy Solutions segment revenues increased to $2,532.2 million in Q1 2025, a rise of $555.1 million or 28.1% compared to Q1 2024[184] - Home Health Care revenues increased to $178.4 million in Q1 2025, reflecting a 20.9% growth compared to Q1 2024[195] Profitability - Adjusted EBITDA rose by $28.8 million, or 28.2%, to $131.1 million in Q1 2025[145] - Net loss decreased from $56.0 million to net income of $9.2 million, with loss per share improving from $(0.31) to $0.05[145] - Gross profit for Q1 2025 was $338.4 million, reflecting a 15.7% increase from $292.5 million in Q1 2024[171] - Net income for Q1 2025 was $9.2 million, a significant improvement of $65.2 million compared to a net loss of $56.0 million in Q1 2024[179] - Adjusted EBITDA for Q1 2025 was $131.1 million, up $28.8 million or 28.2% from Q1 2024[182] - Diluted EPS for Q1 2025 was $0.05, recovering from a diluted loss per share of $0.31 in Q1 2024, with Adjusted EPS rising to $0.19 from $0.09[214] Expenses and Costs - Selling, general, and administrative expenses decreased by $20.2 million or 6.6% to $287.6 million in Q1 2025 compared to Q1 2024[176] - Interest expense, net decreased by $12.7 million or 23.3% to $41.8 million in Q1 2025, attributed to lower outstanding term debt[177] - Cost of goods for Q1 2025 was $2,328.2 million, an increase of $521.1 million or 28.8% from $1,807.1 million in Q1 2024[174] - Cost of services for Q1 2025 was $211.5 million, up $25.4 million or 13.6% compared to Q1 2024[175] - Selling, general, and administrative expenses for Pharmacy Solutions were $115.7 million in Q1 2025, a 6.2% increase from Q1 2024[191] Cash Flow and Liquidity - Cash provided by operating activities was $101.6 million for Q1 2025, a turnaround from cash used in operating activities of $78.9 million in Q1 2024, marking a variance of $180.5 million[219] - Total liquidity at the end of Q1 2025 was $530.5 million, up from $475.8 million at the end of 2024, driven by improved cash flows and available credit[218] - Net cash used in investing activities decreased to $24.2 million in Q1 2025 from $30.9 million in Q1 2024, primarily due to reduced capital expenditures[220] - Net cash used in financing activities was $86.0 million in Q1 2025, mainly due to long-term debt repayments and net repayments on the Revolving Credit Facility[223] Debt and Financing - The Company had $540.0 million available under the Revolving Credit Facility as of March 31, 2025, with no outstanding borrowings[230] - The First Lien Credit Agreement was amended to establish Tranche B-4, refinancing $2.6 billion of borrowings at a rate of SOFR plus 3.25%[228] - As of March 31, 2025, total outstanding debt was $2.6 billion, with a net long-term debt of $2.49 billion after accounting for debt issuance costs[238] - The Company repaid all outstanding borrowings under the $450 million Second Lien Facility, incurring a loss of $12.7 million on extinguishment of debt[234] - The Company's leverage ratio was 3.87x as of March 31, 2025, down from 4.16x at December 31, 2024[238] Operational Developments - The company completed one acquisition within its Provider Services segment and announced the divestiture of the Community Living business for $835 million[138][134] - The divestiture of the Community Living business is expected to enhance revenue and Adjusted EBITDA growth rates and improve operational efficiencies[134] - The company aims to expand its presence by opening new locations, leveraging existing market knowledge to enhance integrated care capabilities[156] - The company has entered into several accountable care organization arrangements to participate in shared savings from attributed primary care patients[160] Market and Patient Metrics - The top 10 Medicaid states represented 6% of total revenue for Q1 2025, down from 7% in Q1 2024[143] - Pharmacy services patient census and prescriptions grew by approximately 11% and 10%, respectively, in Q1 2025 compared to Q1 2024[147] - The company serves over 450,000 patients daily through approximately 11,000 clinical providers and pharmacists[133] Interest Rate and Inflation Challenges - The Company is facing challenges related to inflation, particularly in labor costs, which are expected to rise due to a shortage of qualified caregivers[241] - The Company has limited ability to pass on increased costs to Medicare and Medicaid patients due to fixed reimbursement rates established by federal and state laws[245] - A hypothetical 1% increase in interest rates would decrease the Company's net income and cash flows by $5.4 million annually based on the borrowing level as of March 31, 2025[247]
Brightspring Health Services, Inc.(BTSGU) - 2025 Q1 - Quarterly Report