Aveanna Healthcare Holdings Announces Third Quarter 2024 Financial Results and Revised 2024 Outlook

Core Viewpoint - Aveanna Healthcare Holdings Inc. reported strong financial results for Q3 2024, with significant growth in revenue and adjusted EBITDA, reflecting positive operational momentum and strategic cost reductions. Financial Performance - Q3 2024 revenue reached $509.0 million, a 6.5% increase from $478.0 million in Q3 2023, driven by growth in Private Duty Services, Medical Solutions, and Home Health & Hospice segments [1][2] - Gross margin for Q3 2024 was $159.7 million, or 31.4% of revenue, up from $147.3 million, or 30.8% of revenue in Q3 2023, marking an 8.4% increase [3] - The net loss for Q3 2024 was $42.8 million, significantly improved from a net loss of $102.4 million in Q3 2023, with adjusted net income of $4.6 million compared to an adjusted net loss of $9.3 million in the prior year [4][5] - Adjusted EBITDA for Q3 2024 was $47.8 million, a 32.2% increase from $36.2 million in Q3 2023, representing 9.4% of revenue [5] Year-to-Date Performance - For the nine-month period ended September 28, 2024, revenue totaled $1,504.6 million, a 6.2% increase from $1,416.4 million in the same period of 2023, primarily due to growth in Private Duty Services and Medical Solutions [6][7] - Gross margin for the nine-month period was $463.8 million, or 30.8% of revenue, compared to $447.0 million, or 31.6% of revenue in the prior year, reflecting a 3.8% increase [6] - The net loss for the nine-month period was $40.1 million, improved from a net loss of $108.8 million in the same period of 2023 [7][8] - Adjusted EBITDA for the nine-month period was $128.4 million, a 27.7% increase from $100.5 million in the prior year, representing 8.5% of revenue [8] Guidance and Outlook - The company raised its full-year 2024 revenue guidance to approximately $2.0 billion, up from prior guidance of greater than $1,985 million [11] - Adjusted EBITDA guidance for the full year 2024 was also raised to greater than $168 million, up from previous guidance of greater than $158 million [12] Liquidity and Cash Flow - As of September 28, 2024, the company had cash of $78.5 million and an incremental borrowing capacity of $37.9 million under its securitization facility, with a revolver undrawn [9] - Year-to-date net cash provided by operating activities was $19.2 million, with free cash flow of $16.7 million for 2024 [9]