Core Viewpoint - BrightSpring Health Services, Inc. announced the pricing of a secondary offering of 14,000,000 shares at $21.75 per share, with proceeds going to the selling stockholders, including KKR affiliates and management members [1] Group 1: Offering Details - The offering is underwritten and will close on June 12, 2025, subject to customary closing conditions [1] - The KKR Selling Stockholder has granted underwriters a 30-day option to purchase an additional 2,100,000 shares [1] - No shares are being sold by BrightSpring itself in this offering [1] Group 2: Underwriters and Managers - Goldman Sachs & Co. LLC, BofA Securities, Jefferies, and Morgan Stanley & Co. LLC are the lead book-running managers for the offering [2] - KKR Capital Markets LLC is acting as the lead managing agent [2] - A number of other firms are participating as bookrunners and co-managers for the offering [2] Group 3: Registration and Compliance - A shelf registration statement was filed with the SEC on June 10, 2025, and became effective upon filing [3] - The offering will be made only by means of a prospectus supplement and accompanying prospectus [4]

Core Viewpoint - BrightSpring Health Services, Inc. announced a secondary offering of 14,000,000 shares of common stock by certain stockholders, including affiliates of Kohlberg Kravis Roberts & Co. L.P. [1] Group 1: Offering Details - The offering will be conducted under a shelf registration statement filed with the SEC, and no shares are being sold by BrightSpring itself [1][3] - The KKR Selling Stockholder plans to grant underwriters a 30-day option to purchase an additional 2,100,000 shares [1] - Goldman Sachs & Co. LLC and BofA Securities are the lead book-running managers for the offering, with KKR Capital Markets LLC acting as the lead managing agent [2] Group 2: Registration and Prospectus - A shelf registration statement on Form S-3 was filed with the SEC on June 10, 2025, and became effective upon filing [3] - The offering will be made only by means of a prospectus supplement and accompanying prospectus [4]

Core Insights - BrightSpring Health Services (BTSG) achieved an all-time high stock price of $25.57 on June 9, reflecting a remarkable 120% increase over the past year, contrasting with declines in the broader medical sector [1][8] - The company outperformed competitors Amedisys (AMED) and Option Care Health (OPCH), which saw stock increases of 2.7% and 12.2%, respectively [2][8] Financial Performance - In Q1 2025, BrightSpring reported a 14% year-over-year revenue growth and a 111% increase in adjusted EPS, both exceeding Zacks Consensus Estimates [6][8] - Adjusted EBITDA rose by 19%, supporting management's confidence in achieving continued double-digit growth in revenues and EBITDA for the full year [6] Quality Metrics - Over 80% of BrightSpring's Home Health branches are rated 4 stars or higher, with a declining 60-day hospitalization rate and patient satisfaction around 90% [7][8] - In Hospice services, the company provides 50% more visits and time with patients than the national average, achieving all-time high quality scores [7] - Rehabilitation services reported that 52% of catastrophic neuro event patients regained independence, while Personal Care achieved a satisfaction score of 4.6 out of 5 [7] Valuation - BrightSpring's stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.32, lower than the industry average of 0.39 and below competitors like Amedisys (1.23X) and OPCH (0.90X) [11][12] - Despite being above its one-year median of 0.24X, the stock remains undervalued compared to peers, indicating improved investor sentiment [12] Future Earnings Estimates - The Zacks Consensus Estimate for BrightSpring's 2025 earnings suggests an 82.1% year-over-year improvement [9] - Current estimates for Q1 2025 earnings are 0.22, with projections for the next year at 1.02 [10]

Core Insights - BrightSpring Health Services, Inc. (BTSG) has made significant investments in process improvements and technology enhancements, leading to better care delivery efficiency and patient outcomes [1][4] - The company has achieved high ratings across various segments, with over 80% of Home Health branches rated 4 stars or better and patient satisfaction nearing 90% [1][8] Home Health Segment - Over 80% of Home Health branches achieved a 4-star rating or better, with declining 60-day hospitalization rates [1][8] - Patient satisfaction in the Home Health segment is approaching 90% [1] Hospice Operations - Hospice operations have outperformed, with visit frequency and time spent with patients exceeding the national average by 50% [2] - Quality index scores in the Hospice segment have reached record highs [2] Rehabilitation and Personal Care Segments - Patient satisfaction in the Rehab segment remains strong at 98% [2] - The Personal Care segment achieved its highest-ever rating with a satisfaction score of 4.6 out of 5 [2] Community Living and Infusion Segments - Community Living recorded its lowest number of audit findings to date, which is 40% better than the industry average [2] - The Infusion segment reported a 96% therapy completion discharge rate and a 95% patient satisfaction score [3] Operational Metrics - Home and Community Pharmacy Services achieved near-perfect operational metrics, including 99.999% dispense accuracy and 99% order completeness [3] Competitive Landscape - Amedisys (AMED) maintains a focus on clinical distinction, achieving an average Quality of Patient Care star rating of 4.18 across all providers, with 88% of care centers rated 4 stars or higher [5] - Addus HomeCare Corporation (ADUS) has launched the Care Advantage Program to enhance preventive care and patient satisfaction through a tech-enabled approach [6] Stock Performance and Valuation - Shares of BrightSpring have gained 104.1% in the past year, significantly outperforming the industry, which saw a decline of 21.7% [7] - BTSG trades at a forward price-to-earnings ratio of 21.59, above the industry's 14.25 [9] Earnings Estimates - The Zacks Consensus Estimate for BTSG's earnings has been on the rise over the past 30 days, with current quarter estimates at $0.22 and next year at $1.19 [10][11]

Danaher Corporation (DHR) recently partnered with AstraZeneca PLC (AZN) to develop and market novel diagnostic tools aimed at improving patient selection for precision medicine treatments.Based in Cambridge, UK, AstraZeneca is a biopharmaceutical company that researches, develops, manufactures and commercializes innovative prescription medicines. The company works with primary and specialty care doctors through distributors and representative offices in the US, the UK, Europe and Asia.Inside the HeadlinesPr ...

Company Overview - Amedisys (AMED) is part of the Medical group, which consists of 997 companies and is currently ranked 5 within the Zacks Sector Rank [2] - Amedisys operates in the Medical - Outpatient and Home Healthcare industry, which includes 17 individual stocks and is ranked 73 in the Zacks Industry Rank [5] Performance Analysis - Year-to-date, Amedisys has returned 3.1%, outperforming the average loss of 6.8% in the Medical sector [4] - The Zacks Consensus Estimate for Amedisys's full-year earnings has increased by 1.5% over the past quarter, indicating improved analyst sentiment [3] - In comparison, BrightSpring Health Services, Inc. has returned 34.6% year-to-date and has a consensus EPS estimate increase of 23.8% over the past three months [4][5] Industry Context - The Medical - Outpatient and Home Healthcare industry has seen an average gain of 2.6% this year, with Amedisys performing better than this average [5] - The broader Medical Services industry, which includes BrightSpring Health Services, has declined by 5.5% this year and is ranked 65 [6]

Summary of BrightSpring Health Services (BTSG) Conference Call Company Overview - **Company**: BrightSpring Health Services (BTSG) - **Industry**: Healthcare, specifically home and community health care and pharmacy services Key Points and Arguments Financial Performance - **Q1 Performance**: The company reported a strong Q1, beating expectations and raising guidance, primarily driven by specialty pharmacy performance [2][4] - **Historical Growth**: The company has achieved a mid-teens CAGR in EBITDA and revenue over nearly a decade, with broad-based growth across service lines [4][5] - **Volume Growth**: Volume growth is supported by quality service across all lines, operational efficiencies, and accretive mergers and acquisitions (M&A) [5][6] Specialty Pharmacy Growth - **Oncology and Rare Diseases**: Specialty pharmacy, particularly in oncology and rare diseases, has seen significant growth, with a reported 30% growth year-over-year for the last three years [9][10] - **Innovation in Therapies**: Continuous innovation in therapies is driving demand, with expectations of 12 to 18 new products entering the market in the next 18 months [13] Service Lines and Market Dynamics - **Home and Community Focus**: BrightSpring aims to be a leading provider in home and community health care, with strong demand for services [6][17] - **Provider Business Growth**: The provider business experienced around 10% year-over-year growth, even with fewer days in the quarter compared to the previous year [7] - **Pharmacy Services**: The pharmacy business is expected to grow in the mid-single digits, with potential for double-digit growth in specific areas like infusion and specialty oncology [25][26] M&A Strategy - **Acquisition Focus**: The company has executed several smaller tuck-in acquisitions and plans to continue this strategy, particularly in home health, hospice, and rehab [15][58] - **Community Living Divestiture**: The divestiture of the community living business is expected to close by the end of the year, which will help improve leverage ratios [54][55] Regulatory Environment - **Impact of Inflation Reduction Act (IRA)**: The IRA has both positive and negative implications for the company, particularly concerning drug pricing and access to medications [35][38] - **Tariffs on Drugs**: Potential tariffs on drugs are being monitored, with the company confident in its supply chain resilience due to a significant portion of drugs being sourced domestically [42][46] Operational Efficiency - **EBITDA Margin Target**: The company targets a 6% EBITDA margin, focusing on lean operations and technology to enhance efficiency across business lines [34] - **Integrated Care Opportunities**: The company is exploring integrated care models that combine various services to improve patient outcomes and reduce hospitalizations [31][33] Future Outlook - **Leverage Reduction**: The company aims to reduce leverage to around three times by the end of the year, supported by cash generation and growth [55][56] - **Market Positioning**: BrightSpring is positioned to leverage its scale and operational capabilities to navigate regulatory changes and market dynamics effectively [50][51] Additional Important Insights - **Quality and Compliance**: The company emphasizes its commitment to quality and compliance, which has resulted in better performance metrics compared to industry averages [22] - **Patient-Centric Approach**: The focus on delivering high-quality, patient-centered services is seen as a key driver for growth and market share [20][21]

Core Viewpoint - Pediatrix Medical Group, Inc. reported strong first-quarter 2025 results, leading to an 11.5% increase in shares, driven by same-unit revenue growth, improved payor mix, and a decline in overall expenses, although higher clinical compensation costs partially offset these gains [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 33 cents, exceeding the Zacks Consensus Estimate by 32% and showing a 65% year-over-year increase [2]. - Net revenues totaled $458.4 million, a decline of 7.4% year over year, but still beating the consensus mark by 0.9% [2]. - Same-unit revenues improved by 6.2% year over year, surpassing estimates, with patient volume contributing a 1.6% increase [3]. - Total operating expenses decreased by 11% year over year to $426.3 million, driven by lower practice salaries and benefits, which fell 8.7% to $337 million [4]. - Net income reached $20.7 million, a significant increase from $4 million in the prior-year quarter, while adjusted EBITDA rose 32.3% to $49.2 million [5]. Cash and Debt Position - As of March 31, 2025, cash and cash equivalents were $99 million, down from $229.9 million at the end of 2024, with total assets declining to $2 billion [6]. - Total debt, including finance leases, was $612.6 million, a slight decrease from $617.7 million at the end of 2024 [6]. Shareholder Equity and Repurchase - Total shareholders' equity increased to $789.2 million from $764.9 million at the end of 2024 [7]. - The company repurchased common shares worth $1.6 million in Q1 2025, with a remaining capacity of $1.3 million under its $500 million repurchase program [8]. Future Outlook - Management revised the 2025 adjusted EBITDA projection to between $220 million and $240 million, up from the previous range of $215 million to $235 million [9]. - Estimated net income for 2025 is projected to be between $106.21 million and $120.81 million, with interest expenses forecasted at $36.87 million [10].

Core Viewpoint - Select Medical Holdings Corporation's shares have declined 17.6% following disappointing first-quarter 2025 results, primarily due to reduced occupancy and admissions in key segments, despite some revenue improvements per patient day [1] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 44 cents, missing the Zacks Consensus Estimate of 45 cents, but up from 33 cents a year ago [2] - Net operating revenues reached $1.35 billion, a 2.4% increase year-over-year, but fell short of the consensus by 0.8% [2] - Total costs and expenses rose 3% year-over-year to $1.2 billion, consistent with estimates, driven by higher service costs [3] Segmental Update Critical Illness Recovery Hospital - Revenues decreased 2.9% year-over-year to $637 million, missing the consensus of $667 million, with a 1.8% decline in revenue per patient day [4] - Patient days fell 1.1% and admissions dropped 1.9% year-over-year, although occupancy improved by 200 basis points [4] - Adjusted EBITDA was $86.6 million, down 25.3% year-over-year, missing estimates [5] Rehabilitation Hospital - Revenues increased 15.7% year-over-year to $307.4 million, surpassing the consensus of $292.1 million, supported by 6.9% growth in admissions [6] - Adjusted EBITDA rose 14.7% year-over-year to $70.4 million, exceeding estimates, though the adjusted EBITDA margin decreased by 20 basis points [6] Outpatient Rehabilitation - Revenues were $307.3 million, a 1.4% year-over-year increase, beating the consensus of $303.8 million [7] - Adjusted EBITDA decreased 2.6% year-over-year to $24.3 million, missing estimates, with a margin decline of 30 basis points [7] Financial Position - As of March 31, 2025, cash and cash equivalents were $53.2 million, down from $59.7 million at the end of 2024 [8] - Total assets increased to $5.7 billion from $5.6 billion at the end of 2024, while long-term debt decreased to $1.8 billion [9] - Total equity rose 2.5% to $2 billion, with net cash used in operations improving to $3.5 million from $66.7 million a year ago [9] Share Repurchase & Dividend Update - In Q1 2025, Select Medical repurchased shares worth $11.4 million, totaling approximately $611.7 million since the program's inception [10] - A cash dividend of 6.25 cents per share was approved, to be paid on May 29 to shareholders of record as of May 15 [10] 2025 Outlook - Management revised revenue expectations to between $5.3 billion and $5.5 billion, down from the previous range of $5.4 billion to $5.6 billion [11] - Adjusted EBITDA is now expected to be between $510 million and $530 million, lower than the earlier estimate of $520 million to $540 million [11] - EPS guidance remains unchanged at between $1.09 and $1.19 [11]

Core Viewpoint - Teladoc Health Inc. reported better-than-expected first-quarter 2025 results, but the outlook for 2025 has disappointed investors, leading to a 4.6% decline in shares since the earnings report [1] Financial Performance - The company incurred an adjusted loss of 19 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 33 cents and improved from a loss of 49 cents in the same quarter last year [2] - Operating revenues were $629.4 million, down from $646.1 million year-over-year, but exceeded the consensus estimate by 1.9% [2] - Access fees revenue decreased by 6% year-over-year to $525.7 million, missing the consensus estimate by 1.5% [3] - Other revenues increased by 16% year-over-year to $103.6 million, beating the consensus estimate by 22.9% [3] Segment Performance - The Integrated Care segment generated revenues of $389.5 million, a 3% year-over-year increase, surpassing both the Zacks Consensus Estimate and internal estimates [6] - The BetterHelp segment's revenues declined by 11% year-over-year to $239.9 million, although it beat the consensus estimate [7] Operational Metrics - Total visits decreased by 3% year-over-year to 4.4 million, falling short of the consensus estimate by 0.1% [8] - U.S. Integrated Care Members reached 102.5 million, a 12% year-over-year increase, exceeding the consensus mark by 1.2% [8] Expense and Cash Flow - Total expenses rose by 2.3% year-over-year to $750 million, exceeding internal estimates [5] - Operating cash flow improved to $15.9 million from $8.9 million year-over-year, while free cash outflow decreased to $15.7 million from $26.6 million [10] Outlook - For the second quarter, Integrated Care segment revenues are expected to grow by 0.25%-2.75% year-over-year, with an adjusted EBITDA margin forecasted between 13.25-14.75% [11] - Full-year revenues are projected to be between $2.468 billion and $2.576 billion, with a net loss expected between 90 cents and $1.40 per share [15]