Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $329 million, reflecting a 20% year-on-year increase [5][11] - Resident count increased by 15% year-on-year, reaching approximately 189,000 [5][11] - Adjusted EBITDA rose to $23.4 million, a 16% increase compared to the previous year [5][11] - Excluding PUBCO costs, adjusted EBITDA growth was 20% year-on-year [11][12] - Gross profit increased by 17% to $64.4 million [11] Business Line Data and Key Metrics Changes - The growth in revenue was driven by organic growth and acquisitions, specifically Heartland and Freedom pharmacies [11][12] - The company is actively integrating two acquisitions from 2024, which are expected to enhance operational efficiency [6][12] Market Data and Key Metrics Changes - The company is closely monitoring industry trends, particularly the impact of tariffs and the Inflation Reduction Act on future performance [8][10] - The competitive landscape for generic drugs remains strong, with manufacturers facing challenges in raising prices due to market competition [8] Company Strategy and Development Direction - The company is focused on sustainable long-term growth and is committed to integrating acquisitions effectively [6][20] - A robust acquisition pipeline is in place, with several near-term opportunities identified [5][12] - The company plans to continue expanding its regional presence through both acquisitions and Greenfield startups [7][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue at the higher end of the guidance range due to strong Q1 performance [15] - The company is prepared to navigate potential impacts from the Inflation Reduction Act and is in discussions with policymakers [10] - Management noted that the integration of Heartland's IT infrastructure is expected to enhance operational capabilities in the long term, despite short-term cost pressures [12][14] Other Important Information - The company ended Q1 with $14 million in cash and zero debt, indicating a strong financial position [15] - The company reiterated its adjusted EBITDA range for the year between $97 million and $101 million, remaining conservative in forecasts due to integration-related expenses [16] Q&A Session Summary Question: Size of Heartland drag in Q1 and full year integration costs - Management indicated that the integration costs associated with Heartland were included in guidance, with an estimated impact of around $500,000 due to expedited operating system conversion [25][27] Question: Impact of the Trump executive order on negotiations with payer partners - Management acknowledged uncertainty regarding the executive order's effects but remained positive about ongoing discussions with payors to resolve IRA issues [28][29] Question: Breakdown of resident count growth between same-store metrics and acquisitions - Management confirmed that organic growth met high single-digit guidance, with the remainder attributed to acquisitions [40] Question: Pipeline status and impact of economic uncertainty on opportunities - Management reported a robust acquisition pipeline, indicating that economic pressures have not negatively impacted opportunities [42]
Guardian Pharmacy Services, Inc.(GRDN) - 2025 Q1 - Earnings Call Transcript