Aveanna Healthcare(US:AVAH)2025-05-08 10:30Financial Performance - First quarter revenue was $559.2 million, a 14.0% increase compared to $490.7 million in the prior year period[4] - Net income for the first quarter was $5.2 million, compared to a net loss of $11.2 million in the prior year[6] - Adjusted net income was $21.4 million, an increase of $27.1 million compared to Q1 2024[7] - Adjusted EBITDA for Q1 2025 was $67.4 million, a 93.1% increase from $34.9 million in Q1 2024[8] - Operating income increased by 126.5% to $51,801,000 compared to $22,866,000 in the prior year[33] - Net income for the period was $5,193,000, a significant recovery from a net loss of $11,172,000 in the same quarter last year[32] - Adjusted net income for Q1 2025 was $21,418,000, translating to an adjusted net income per diluted share of $0.10, compared to a loss of $5,680,000 and $(0.03) per share in Q1 2024[37] Revenue Guidance - Revised full year 2025 revenue guidance is greater than $2.15 billion, updated from a range of $2.10 - $2.12 billion[11] EBITDA Guidance - Revised full year 2025 adjusted EBITDA guidance is greater than $207 million, updated from a range of $190 - $194 million[11] Cash and Debt Management - As of March 29, 2025, the company had cash of $71.5 million and bank debt of $1,472.0 million[12] - Total indebtedness as of March 29, 2025, was $1,472,000,000, with a significant portion attributed to the 2021 Extended Term Loan of $888,250,000[31] - Cash and cash equivalents at the end of the period were $71,494,000, down from $84,288,000 at the beginning of the period[31] - Interest expense decreased to $36,203,000 in Q1 2025 from $39,545,000 in Q1 2024, suggesting improved debt management[36] Operational Efficiency - Gross margin increased to $183.6 million, or 32.8% of revenue, up from $145.9 million, or 29.7% of revenue, representing a 25.9% increase[5] - Field contribution margin increased to 16.5%, up from 11.8% in the previous year, indicating improved operational efficiency[33] - Field contribution margin improved to 16.5% in Q1 2025 from 11.8% in Q1 2024, indicating enhanced operational efficiency[36] - The company reported a 59.1% increase in Field contribution to $92,171,000 compared to $57,940,000 in the same quarter last year[33] Segment Performance - Revenue from the Pediatric and Adult Services segment (PDS) was $459,998,000, a 16.5% increase from $395,009,000 in the prior year[34] - Home health revenue per completed episode increased to $3,128, a 2.1% rise from $3,064 in the previous year[34] Cash Flow - Free cash flow for 2025 was $(12.9) million, indicating cash used after mandatory payments[12] - Free cash flow for Q1 2025 was $(12,908,000), reflecting net cash used in operating activities of $(8,632,000)[40] Corporate Expenses and Strategic Initiatives - Corporate expenses rose to $9,109,000 in Q1 2025, up from $5,378,000 in Q1 2024, reflecting increased investment in corporate infrastructure[40] - The company incurred acquisition-related costs of $107,000 in Q1 2025, indicating ongoing strategic growth initiatives[40] - The company continues to focus on strategic cost reductions and improved reimbursement rates through government partnerships[10] Adjustments and Complexity - Total adjustments to net income for Q1 2025 amounted to $23,364,000, significantly higher than $3,598,000 in Q1 2024, indicating increased operational complexities[37]