Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $362.3 million, a 25% increase from $289.8 million in Q3 2024 [6] - Adjusted earnings per share rose to $1.56, up 20% from $1.30 in the previous year [6] - Adjusted EBITDA increased by 31.6% to $45.1 million compared to $34.3 million in Q3 2024 [6][18] - Operating cash flow exceeded $50 million for the quarter, with cash on hand of approximately $102 million as of September 30, 2025 [6][25] - Net leverage was under one times adjusted EBITDA, providing flexibility for strategic acquisitions [6] Business Line Data and Key Metrics Changes - Personal Care segment revenues were $275.8 million, accounting for 76.1% of total revenue, with same-store revenue growth of 6.6% [21] - Hospice segment revenues increased by 19% year-over-year, with same-store average daily census rising to 3,872, up 9.5% from the previous year [13][20] - Home Health segment revenues were $17.6 million, representing 4.9% of total revenue, with a 2.8% decrease in same-store revenue compared to Q3 2024 [14][22] Market Data and Key Metrics Changes - Texas and Illinois announced rate increases for personal care services, with Texas effective October 1, 2025, and Illinois set for January 1, 2026 [8][19] - The hospice reimbursement rate update effective October 1, 2025, is expected to increase rates by approximately 3.1% [20] - Proposed home health payment rule indicates a 6.4% aggregate reduction in Medicare payments for 2026 [10] Company Strategy and Development Direction - The company continues to pursue strategic acquisitions to enhance geographic coverage and density, with recent acquisitions including Del Cielo Home Care Services [15][21] - Focus on maintaining a balanced approach to organic growth and acquisitions, particularly in overlapping markets for home health and hospice services [16][68] - Emphasis on the value of home-based care and the benefits of personal care services in reducing overall care costs [8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the growth potential in personal care services due to favorable rate increases and strong hiring trends [19][40] - The company anticipates continued organic growth momentum into 2026, supported by recent rate increases and hiring performance [41] - Management acknowledged challenges in the home health segment but remains focused on improving operational efficiencies and profitability [50][52] Other Important Information - The company reported a gross margin percentage of 32.2%, an increase from 31.8% in Q3 2024 [22] - Adjusted G&A expenses were 19.8%, a decrease from 20% in the prior year [23] - The company maintains a strong balance sheet with total bank debt of $154.3 million, down from the previous quarter [25] Q&A Session Summary Question: About same store volume growth in Personal Care - Management noted improvements in fill rates and billable hours, attributing part of the 6.6% same store revenue growth to these factors [28][33] Question: On cash flow and DSOs - Management indicated that fluctuations in DSOs are typical and attributed the strong cash flow to timing rather than specific changes in payer behavior [34] Question: Organic growth expectations for 2026 - Management expressed confidence in maintaining above 2% year-over-year volume growth, supported by strong hiring and rate increases [40][41] Question: Home health and hospice asset allocation - Management remains interested in home health acquisitions that complement existing personal care and hospice services, despite current market uncertainties [44] Question: Hospice revenue per patient day and Medicare cap dynamics - Management confirmed that the absence of cap liability this quarter positively impacted revenue per patient day, with expectations for similar dynamics in Q4 [104]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $697 million, up from nearly $687 million in Q3 2024, with a notable one-time revenue benefit of $6 million in the previous year impacting growth rates [15][19] - Adjusted EBITDA for Q3 2025 was $92 million, down from $108 million in Q3 2024, affected by the same one-time benefit and increased product costs [17][19] - Adjusted net income per share was $0.25 compared to $0.36 in 2024, while year-to-date adjusted net income per share was $0.80 versus $0.64 in the same period last year [19] Business Line Data and Key Metrics Changes - Key categories showing year-over-year growth included sleep therapy, ostomy, and urology, while diabetes revenue remained nearly flat compared to 2024 [15][16] - The company is focusing on improving therapy adherence and expanding customer capture across its ecosystem to drive stronger diabetes growth [16] Market Data and Key Metrics Changes - The U.S. market has over 37 million diagnosed diabetes patients and approximately 85 million adults with some degree of obstructive sleep apnea (OSA), presenting significant growth opportunities for the company [8][9] - The company is actively collaborating with industry partners to maintain a strong dialogue regarding competitive bidding programs in home-based healthcare [10] Company Strategy and Development Direction - The company announced a definitive agreement to sell its Products and Healthcare Services segment, allowing it to focus solely on the home-based care business [5][6] - Future investments will prioritize technology and automation to enhance customer experience and operational efficiency [7][8] - The company aims to improve cash flow and financial flexibility by prioritizing debt repayment following the divestiture [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future as a pure-play home-based care company, anticipating strong organic growth and improved cash flow despite the loss of a large customer contract [26][30] - The company expects to maintain compliance with covenants and remain financially stable post-divestiture [33] Other Important Information - Year-to-date stranded costs were $25 million, down from $39 million in the same period in 2024, with expectations of annualized stranded costs around $40 million [19] - The company reported $28 million of free cash flow in Q3 and $78 million for the first nine months of the year [22] Q&A Session Summary Question: How should the company think about the durability of trends going into 2026? - Management indicated that while they cannot provide specific 2026 data yet, they expect strong trends to continue, barring a significant customer loss [24][26] Question: What is the outlook for free cash flow in 2025 and beyond? - Management expects Q4 to resemble Q3 in terms of free cash flow, with improvements anticipated in 2026 due to the loss of a less profitable contract [30][31] Question: Are there any risks to covenants post-divestiture? - Management confirmed that they are in compliance with covenants and expect to remain so [33] Question: How do preferred vendor agreements work, and how will the company fill the gap from the lost contract? - Management stated that it will take fewer contracts to cover the lost contract's EBITDA and cash flow, emphasizing the favorable margins of new agreements [36][41] Question: Can you elaborate on the cash flow issues related to the new kitting facility? - Management explained that startup costs and over-acquired inventory for the new facility are impacting cash flow, but these issues are expected to resolve in the coming months [42][44]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $337.7 million, a 20.3% increase from $280.7 million in Q1 2024 [6] - Adjusted earnings per share rose to $1.42, up 17.4% from $1.21 in Q1 2024 [6] - Adjusted EBITDA increased to $40.6 million, a 25.1% rise from $32.4 million in Q1 2024 [6] - Gross margin percentage improved to 31.9% from 31.4% in Q1 2024 [21] - Adjusted EBITDA margin was 12%, compared to 11.6% in Q1 2024 [22] Business Line Data and Key Metrics Changes - Personal Care segment revenues were $258.3 million, accounting for 76.5% of total revenue, with a same-store revenue growth of 7.4% [20] - Hospice segment revenues were $61.4 million, representing 18.2% of total revenue, with same-store revenue growth of 9.9% [20] - Home Health segment revenues were $18 million, making up 5.3% of total revenue, with a same-store revenue growth of 1.3% [20] Market Data and Key Metrics Changes - Personal Care hiring reached 79 hires per day, an increase from the previous year [7] - Average daily census for hospice increased to 3,515, up 4.6% from 3,359 in Q1 2024 [11] - Same-store hours for Personal Care increased by 2% compared to Q1 2024 [10] Company Strategy and Development Direction - The company aims for a minimum annual revenue growth of 10%, focusing on acquisitions that complement organic growth [13] - The strategy includes expanding personal care services in Texas and evaluating smaller acquisition opportunities [14] - The company is committed to maintaining a conservative approach to valuation and due diligence in acquisitions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for home-based care services, which are seen as cost-effective and safe [15] - The company anticipates stable gross margins and consistent cash flow conversion for the full year 2025 [22][24] - Management noted that the clinical hiring environment remains challenging but is improving overall [8][66] Other Important Information - The company utilized approximately $2.5 million in ARPA funding during Q1 2025, with $8.8 million remaining [25] - As of March 31, 2025, the company had cash on hand of approximately $97 million and reduced bank debt by $20 million [6][25] Q&A Session Summary Question: Commentary on hospice cap limitations - Management indicated that cap limitations have not been material, emphasizing a balanced referral mix [28][30] Question: Growth expectations for personal care services - Management acknowledged weather-related impacts in January but expects growth in hours to remain in the 2% to 2.5% range [38] Question: Hospice revenue growth expectations - Management anticipates hospice revenue growth in the 5% to 7% range, likely at the higher end [40] Question: Margin expansion expectations - Management expects 40 to 50 basis points of margin expansion from Q1 to Q2, consistent with historical patterns [46] Question: Impact of ACA expansion rollback - Management stated that potential changes to ACA expansion would likely have no direct impact on the company [50][52] Question: Same-store revenue growth components - Management attributed strong same-store revenue growth to improved scheduling and caregiver assignment practices [56] Question: Industry-wide workforce retention improvements - Management noted improvements in workforce retention across the industry, particularly in personal care [66] Question: Updates on Gentiva's performance - Management reported that Gentiva's bottom line performance has exceeded expectations, while top-line growth has been slightly lighter [76] Question: State budget and rate increase outlook - Management expressed confidence in state budgets and is closely monitoring potential rate increases, particularly in Texas [79]