Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $2,900,000,000, representing a 26% year-over-year growth [8][26] - Adjusted EBITDA for the company was $131,000,000, growing 28% compared to the same period last year [9][28] - EBITDA margin increased in the quarter despite fewer days in Q1 2025 compared to Q1 2024, which was a leap year [9][28] Business Line Data and Key Metrics Changes - Pharmacy Solutions revenue was $2,500,000,000, achieving 28% growth year-over-year [8][26] - Provider Services revenue was $346,000,000, representing 12% growth compared to the prior year [8][26] - Within Provider Services, home health care revenue grew 21% to $178,000,000, rehab revenue grew 5% to $70,000,000, and personal care revenue grew 3% to $98,000,000 [27][20] Market Data and Key Metrics Changes - Specialty and Infusion business revenue grew 33% year-over-year, with total script volume growth of 20% [13][14] - Home and community pharmacy revenue grew 14%, driven by increased script volumes and new customers [15][26] Company Strategy and Development Direction - The company is focused on high-quality operations and disciplined investments to drive efficiency, with a commitment to delivering coordinated care in home and community settings [7][10] - A planned divestiture of the Community Living business is expected to close in the second half of 2025, which will be reported in discontinued operations [7][8] - The company expects to continue its growth trajectory, with a mid-teens revenue and EBITDA CAGR over the past nine years [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth despite potential regulatory changes, including the IRA [39][42] - The company anticipates strong demand for its services, supported by loyal referral sources and new market investments [10][19] - Management expects to deliver over $300,000,000 of annual run rate operating cash flows in 2025, with a focus on improving leverage ratios [31][32] Other Important Information - The company has a robust pipeline of generic drug launches, with expectations for 16 to 18 additional launches over the next 12 to 18 months [15] - Approximately 50% of the company's drug supply comes from the U.S. and North America, mitigating potential impacts from future pharma tariffs [17][18] Q&A Session Summary Question: What drove the strong gross profit per script in the quarter? - Management indicated that the increase was due to a favorable mix of drugs and proactive purchasing efforts [36] Question: How does the IRA impact pharmacy trends for the second half of the year? - Management stated that they do not foresee any significant changes in pharmacy growth rates due to the IRA [38][42] Question: Can you provide an update on the Amedisys acquisition? - Management noted that they are subject to confidentiality and could not provide specific details but emphasized their quality and platform strength [54] Question: What are the potential scenarios around tariffs? - Management explained that any potential tariff impacts would likely be manageable and that reimbursement for brand drugs is tied to cost [60] Question: How does the infusion business growth outlook look? - Management expressed optimism about the infusion market and indicated they are on pace to meet internal growth budgets [92] Question: What is the guidance update for 2025? - Management increased revenue guidance to $12,000,000,000 to $12,500,000,000 and adjusted EBITDA guidance to $570,000,000 to $585,000,000 [32][33]
BrightSpring Health Services(BTSG) - 2025 Q1 - Earnings Call Transcript