Aveanna Healthcare Holdings Announces Fourth Quarter and Full Year 2024 Financial Results and 2025 Outlook
Aveanna Healthcare Holdings (NASDAQ: AVAH) reported strong Q4 2024 financial results, with revenue increasing 8.6% to $519.9 million compared to Q4 2023. The company achieved significant improvements with a net income of $29.2 million, contrasting with a $25.7 million loss in the prior year period.
Key Q4 metrics include a 15.7% increase in gross margin to $171.7 million and a 42.8% rise in Adjusted EBITDA to $55.2 million. For the full year 2024, revenue reached $2.02 billion, up 6.8% from 2023, while Adjusted EBITDA grew 31.9% to $183.6 million.
Looking ahead, Aveanna provided 2025 guidance projecting revenue between $2.10-2.12 billion and Adjusted EBITDA between $190-194 million. The company maintains a strong liquidity position with $84.3 million in cash and additional borrowing capacity through various facilities.
Aveanna Healthcare Holdings (NASDAQ: AVAH) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con un aumento del fatturato dell'8,6% a $519,9 milioni rispetto al quarto trimestre del 2023. L'azienda ha ottenuto miglioramenti significativi con un utile netto di $29,2 milioni, in contrasto con una perdita di $25,7 milioni nello stesso periodo dell'anno precedente.
I principali indicatori del quarto trimestre includono un aumento del 15,7% del margine lordo a $171,7 milioni e un incremento del 42,8% dell'EBITDA rettificato a $55,2 milioni. Per l'intero anno 2024, il fatturato ha raggiunto $2,02 miliardi, in crescita del 6,8% rispetto al 2023, mentre l'EBITDA rettificato è aumentato del 31,9% a $183,6 milioni.
Guardando al futuro, Aveanna ha fornito una previsione per il 2025 che prevede un fatturato compreso tra $2,10 e $2,12 miliardi e un EBITDA rettificato tra $190 e $194 milioni. L'azienda mantiene una solida posizione di liquidità con $84,3 milioni in contante e una capacità di indebitamento aggiuntiva attraverso varie strutture.
Aveanna Healthcare Holdings (NASDAQ: AVAH) reportó resultados financieros sólidos para el cuarto trimestre de 2024, con un aumento del 8.6% en los ingresos a $519.9 millones en comparación con el cuarto trimestre de 2023. La compañía logró mejoras significativas con un ingreso neto de $29.2 millones, en contraste con una pérdida de $25.7 millones en el mismo periodo del año anterior.
Los principales indicadores del cuarto trimestre incluyen un aumento del 15.7% en el margen bruto a $171.7 millones y un incremento del 42.8% en el EBITDA ajustado a $55.2 millones. Para el año completo 2024, los ingresos alcanzaron $2.02 mil millones, un aumento del 6.8% respecto a 2023, mientras que el EBITDA ajustado creció un 31.9% a $183.6 millones.
De cara al futuro, Aveanna proporcionó una guía para 2025 proyectando ingresos entre $2.10 y $2.12 mil millones y un EBITDA ajustado entre $190 y $194 millones. La compañía mantiene una sólida posición de liquidez con $84.3 millones en efectivo y capacidad de endeudamiento adicional a través de varias facilidades.
아베안나 헬스케어 홀딩스 (NASDAQ: AVAH)는 2024년 4분기 재무 결과가 강력하다고 보고했으며, 수익은 2023년 4분기 대비 8.6% 증가한 $519.9 백만에 이르렀습니다. 회사는 전년 동기 대비 $29.2 백만의 순이익을 달성하여 $25.7 백만의 손실과 대조를 이루었습니다.
4분기의 주요 지표에는 총 마진이 $171.7 백만으로 15.7% 증가하고, 조정 EBITDA가 $55.2 백만으로 42.8% 증가한 것이 포함됩니다. 2024년 전체 연도 동안 수익은 $2.02 억에 도달했으며, 이는 2023년 대비 6.8% 증가한 것이고, 조정 EBITDA는 31.9% 증가하여 $183.6 백만에 달했습니다.
앞을 내다보며, 아베안나는 2025년 가이던스를 제공하여 수익을 $2.10-2.12 억으로 예상하고 조정 EBITDA는 $190-194 백만으로 예상하고 있습니다. 회사는 $84.3 백만의 현금을 보유하고 있으며 다양한 시설을 통해 추가 차입 능력을 유지하고 있습니다.
Aveanna Healthcare Holdings (NASDAQ: AVAH) a annoncé des résultats financiers solides pour le quatrième trimestre 2024, avec une augmentation de 8,6 % des revenus à $519,9 millions par rapport au quatrième trimestre 2023. L'entreprise a réalisé des améliorations significatives avec un bénéfice net de $29,2 millions, contrastant avec une perte de $25,7 millions durant la même période de l'année précédente.
Les principaux indicateurs du quatrième trimestre incluent une augmentation de 15,7 % de la marge brute à $171,7 millions et une hausse de 42,8 % de l'EBITDA ajusté à $55,2 millions. Pour l'année complète 2024, les revenus ont atteint $2,02 milliards, en hausse de 6,8 % par rapport à 2023, tandis que l'EBITDA ajusté a augmenté de 31,9 % à $183,6 millions.
En regardant vers l'avenir, Aveanna a fourni une prévision pour 2025 projetant des revenus entre $2,10 et $2,12 milliards et un EBITDA ajusté entre $190 et $194 millions. L'entreprise maintient une solide position de liquidité avec $84,3 millions en espèces et une capacité d'emprunt supplémentaire grâce à diverses facilités.
Aveanna Healthcare Holdings (NASDAQ: AVAH) hat starke Finanzzahlen für das 4. Quartal 2024 gemeldet, mit einem Umsatzanstieg von 8,6% auf $519,9 Millionen im Vergleich zum 4. Quartal 2023. Das Unternehmen erzielte signifikante Verbesserungen mit einem Nettogewinn von $29,2 Millionen, im Gegensatz zu einem Verlust von $25,7 Millionen im Vorjahreszeitraum.
Wichtige Kennzahlen für das 4. Quartal umfassen einen Anstieg der Bruttomarge um 15,7% auf $171,7 Millionen und einen Anstieg des bereinigten EBITDA um 42,8% auf $55,2 Millionen. Für das gesamte Jahr 2024 erreichte der Umsatz $2,02 Milliarden, was einem Anstieg von 6,8% gegenüber 2023 entspricht, während das bereinigte EBITDA um 31,9% auf $183,6 Millionen wuchs.
Für die Zukunft gab Aveanna eine Prognose für 2025 ab, die einen Umsatz zwischen $2,10 und $2,12 Milliarden und ein bereinigtes EBITDA zwischen $190 und $194 Millionen prognostiziert. Das Unternehmen hält eine starke Liquiditätsposition mit $84,3 Millionen in bar und zusätzlicher Kreditaufnahme durch verschiedene Einrichtungen.
- Q4 revenue increased 8.6% to $519.9 million
- Q4 net income improved to $29.2 million from -$25.7 million loss year-over-year
- Q4 Adjusted EBITDA grew 42.8% to $55.2 million
- Gross margin improved to 33.0% from 31.0% in Q4
- Full year 2024 revenue grew 6.8% to $2.02 billion
- Strong liquidity position with $84.3 million cash on hand
- Full year 2024 still showed net loss of $10.9 million
- High debt level of $1.47 billion as of December 2024
- Home Health & Hospice segment revenue decreased by $0.8 million year-over-year
Insights
Aveanna Healthcare's Q4 results demonstrate remarkable financial improvement with revenue reaching
The Private Duty Services segment led growth with a
Notably, Aveanna generated
The 2025 guidance—revenue of
- Fourth Quarter Revenue was
$519.9 million , an8.6% increase over the prior year period- Gross margin increased
15.7% to$171.7 million compared to Q4 2023
- Gross margin increased
- Fourth Quarter Net income was
$29.2 million compared to net loss of$25.7 million for the comparable prior year period- Adjusted Net income was
$11.1 million , an increase of$14.3 million compared to Q4 2023
- Adjusted Net income was
- Adjusted EBITDA for Q4 2024 was
$55.2 million , a42.8% increase as compared to Q4 2023 - Full Year 2025 Revenue guidance between
$2.10 -$2.12 billion - Full Year 2025 Adjusted EBITDA guidance between
$190 -$194 million
- Full Year 2025 Adjusted EBITDA guidance between
ATLANTA, March 13, 2025 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations, today announced financial results for the three-month period and fiscal year December 28, 2024.
Jeff Shaner, Chief Executive Officer, commented, “Our fourth quarter results reflect an exceptional year of transformation at Aveanna. This quarter showed positive operating and financial results, highlighted by revenue and adjusted EBITDA growth of
Three-Month Periods Ended December 28, 2024 and December 30, 2023
Revenue was
Gross margin was
Net income was
Adjusted EBITDA was
Year Ended December 28, 2024 and December 30, 2023
Revenue was
Gross margin was
Net loss was
Adjusted EBITDA was
Liquidity, Cash Flow, and Debt
- As of December 28, 2024, we had cash of
$84.3 million and incremental borrowing capacity of$37.9 million under our securitization facility. Our revolver was undrawn, with approximately$138.0 million of borrowing capacity and approximately$32.3 million of outstanding letters of credit. - 2024 net cash provided by operating activities was
$32.6 million . Free cash flow was$25.7 million for 2024. See “Non-GAAP Financial Measures - Free cash flow” below. - As of December 28, 2024 we had bank debt of
$1,474.3 million . Our interest rate exposure under our credit facilities is currently hedged with the following instruments:$520.0 million notional amount of interest rate swaps that convert variable rate debt to a fixed rate, and$880.0 million notional amount of interest rate caps that cap our exposure to SOFR at2.96% .
Matt Buckhalter, Chief Financial Officer, commented “I'm pleased to report
Full Year 2025 Guidance
The following is our guidance reflecting our current expectations for revenue and Adjusted EBITDA for the full fiscal year 2025 (year ending January 3, 2026):
- Revenue of between
$2.10 -$2.12 billion
Consistent with prior practice, we are not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with our interest rate swaps and caps.
- Adjusted EBITDA of between
$190 -$194 million
Non-GAAP Financial Measures
In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution, Field contribution margin, Adjusted net income or loss, Adjusted net income or loss per diluted share, and Free cash flow. Given our determination of adjustments in arriving at our computations, these non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness or any other financial measures calculated in accordance with GAAP. The reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in the financial tables below.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax benefit (expense); and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; and other system transition costs, professional fees and other costs. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.
We believe our computations of EBITDA and Adjusted EBITDA are helpful in highlighting trends in our core operating performance. In determining which adjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both (1) certain non-recurring, infrequent, non-cash or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which we do not believe are indicative of our core operating performance. We use EBITDA and Adjusted EBITDA to assess operating performance and make business decisions.
We have incurred substantial acquisition-related costs and integration costs. The underlying acquisition activities take place over a defined timeframe, have distinct project timelines and are incremental to activities and costs that arise in the ordinary course of our business. Therefore, we believe it is important to exclude these costs from our Adjusted EBITDA because it provides us a normalized view of our core, ongoing operations after integrating our acquired companies, which we believe is an important measure in assessing our performance.
Field contribution and Field contribution margin
Field contribution and Field contribution margin are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as gross margin and gross margin percentage. Rather, we present Field contribution and Field contribution margin as supplemental measures of our performance. We define Field contribution as gross margin less branch and regional administrative expenses. Field contribution margin is Field contribution as a percentage of revenue. As non-GAAP financial measures, our computations of Field contribution and Field contribution margin may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of these measures impracticable.
Field contribution and Field contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to gross margin, gross margin percentage, net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness or any other financial measures calculated in accordance with GAAP.
Management believes Field contribution and Field contribution margin are helpful in highlighting trends in our core operating performance and evaluating trends in our branch and regional results, which can vary from year to year. We use Field contribution and Field contribution margin to make business decisions and assess the operating performance and results delivered by our core field operations, prior to corporate and other costs not directly related to our field operations. These metrics are also important because they guide us in determining whether or not our branch and regional administrative expenses are appropriately sized to support our caregivers and direct patient care operations. Additionally, Field contribution and Field contribution margin determine how effective we are in managing our field supervisory and administrative costs associated with supporting our provision of services and sale of products.
Adjusted net income (loss) and Adjusted net income (loss) per diluted share
Adjusted net income (loss) represents net income (loss) as adjusted for the impact of GAAP income tax, goodwill, intangible and other long-lived asset impairment charges, non-cash share-based compensation expense, loss on extinguishment of debt, interest rate derivatives, acquisition-related costs, integration costs, legal costs, restructuring costs, other legal matters, other system transition costs, professional fees and certain other miscellaneous items on a pre-tax basis. Adjusted net income (loss) includes a provision for income taxes derived utilizing a combined statutory tax rate. The combined statutory tax rate is our estimate of our long-term tax rate. The most comparable GAAP measure is net income (loss).
Adjusted net income (loss) per diluted share represents adjusted net income (loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. The most comparable GAAP measure is net income (loss) per share, diluted.
Adjusted net income (loss) and adjusted net income (loss) per diluted share are important to us because they allow us to assess financial results, exclusive of the items mentioned above that are not operational in nature or comparable to those of our competitors.
Free cash flow
Free cash flow is a liquidity measure that represents operating cash flow, adjusted for the impact of purchases of property, equipment and software, principal payments on term loans, notes payable and financing leases, and settlements with swap counterparties. The most comparable GAAP measure is cash flow from operations.
We believe free cash flow is helpful in highlighting the cash generated or used by the Company, after taking into consideration mandatory payments on term loans, notes payable and financing leases, as well as cash needed for non-acquisition related capital expenditures, and cash paid to or received from derivative counterparties.
Conference Call
Aveanna will host a conference call on Thursday, March 13, 2025, at 10:00 a.m. Eastern Time to discuss our fourth quarter results. The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A telephonic replay of the conference call will be available until March 20, 2025, by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13750192. A live webcast of our conference call will also be available under the Investor Relations section of our website: https://ir.aveanna.com/. The online replay will also be available for one week following the call.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements (other than statements of historical facts) in this press release regarding our prospects, plans, financial position, business strategy and expected financial and operational results may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of terminology such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may,” “should,” “would,” “predict,” “project,” “potential,” “continue,” “could,” “design,” “guidance,” or the negatives of these terms or variations of them or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, such as our ability to successfully execute our growth strategy, including through organic growth and the completion of acquisitions, effective integration of the companies we acquire, unexpected costs of acquisitions and dispositions, the possibility that expected cost synergies may not materialize as expected, the failure of Aveanna or the companies we acquire to perform as expected, estimation inaccuracies in revenue recognition, our ability to drive margin leverage through lower costs, unexpected increases in SG&A and other expenses, changes in reimbursement, changes in government regulations, changes in Aveanna’s relationships with referral sources, increased competition for Aveanna’s services or wage inflation, the failure to retain or attract employees, changes in the interpretation of government regulations or discretionary determinations made by government officials, uncertainties regarding the outcome of rate discussions with managed care organizations and our ability to effectively collect our cash from these organizations, changes in the case-mix of our patients, as well as the payor mix and payment methodologies, legal proceedings, claims or governmental inquiries, our ability to effectively collect and submit data required under Electronic Visit Verification regulations, our ability to comply with the terms and conditions of the CMS Review Choice Demonstration program, our ability to effectively implement and transition to new electronic medical record systems or billing and collection systems, a failure to maintain the security and functionality of our information systems or to defend against or otherwise prevent a cybersecurity attack or breach, changes in tax rates, our substantial indebtedness, the impact of adverse weather, the impact to our business operations, and other risks set forth under the heading “Risk Factors” in Aveanna’s Annual Report on Form 10-K for its 2024 fiscal year filed with the Securities and Exchange Commission on March 13, 2025, which is available at www.sec.gov. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may prove to be incorrect or imprecise. Accordingly, forward-looking statements included in this press release do not purport to be predictions of future events or circumstances, and actual results may differ materially from those expressed by forward-looking statements. All forward-looking statements speak only as of the date made, and Aveanna undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Aveanna Healthcare
Aveanna Healthcare is headquartered in Atlanta, Georgia and has locations in 34 states providing a broad range of pediatric and adult healthcare services including nursing, rehabilitation services, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill children and adults, home health and hospice services, as well as delivery of enteral nutrition and other products to patients. The Company also provides case management services in order to assist families and patients by coordinating the provision of services between insurers or other payers, physicians, hospitals, and other healthcare providers. In addition, the Company provides respite healthcare services, which are temporary care provider services provided in relief of the patient’s normal caregiver. The Company’s services are designed to provide a high quality, lower cost alternative to prolonged hospitalization. For more information, please visit www.aveanna.com.
Cash Flow and Information about Indebtedness
The following table sets forth a summary of our cash flows from operating, investing, and financing activities for the periods presented:
| For the fiscal years ended | |||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | |||||
| Net cash provided by operating activities | $ | 32,637 | $ | 22,672 | |||
| Net cash used in investing activities | $ | (6,319 | ) | $ | (8,794 | ) | |
| Net cash provided by financing activities | $ | 14,028 | $ | 10,847 | |||
| Cash and cash equivalents at beginning of period | $ | 43,942 | $ | 19,217 | |||
| Cash and cash equivalents at end of period | $ | 84,288 | $ | 43,942 | |||
The following table presents our long-term indebtedness as of December 28, 2024:
| (dollars in thousands) | |||||
| Instrument | Interest Rate | December 28, 2024 | |||
| 2021 Extended Term Loan (1) | S + | $ | 890,550 | ||
| Second Lien Term Loan (1) | S + | 415,000 | |||
| Revolving Credit Facility (1) | S + | - | |||
| Securitization Facility | S + | 168,750 | |||
| Total indebtedness | $ | 1,474,300 | |||
| (1) S = Greater of | |||||
Results of Operations
The following table summarizes our consolidated results of operations for the periods indicated (amounts in thousands, except per share data):
| For the three-month periods ended | For the fiscal years ended | |||||||||||
| December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||
| Revenue | $ | 519,872 | $ | 478,841 | $ | 2,024,506 | $ | 1,895,209 | ||||
| Cost of revenue, excluding depreciation and amortization | 348,150 | 330,393 | 1,388,964 | 1,299,777 | ||||||||
| Branch and regional administrative expenses | 88,744 | 87,011 | 352,814 | 360,978 | ||||||||
| Corporate expenses | 33,421 | 28,299 | 125,402 | 113,034 | ||||||||
| Goodwill impairment | - | - | - | 105,136 | ||||||||
| Depreciation and amortization | 2,446 | 3,284 | 10,778 | 13,778 | ||||||||
| Acquisition-related costs | 1,340 | - | 1,490 | 466 | ||||||||
| Other operating expense (income) | - | 561 | 5,271 | (6,032 | ) | |||||||
| Operating income | 45,771 | 29,293 | 139,787 | 8,072 | ||||||||
| Interest income | 201 | 89 | 498 | 327 | ||||||||
| Interest expense | (38,097 | ) | (39,704 | ) | (156,602 | ) | (153,246 | ) | ||||
| Other income (expense) | 19,060 | (21,273 | ) | 21,389 | 5,851 | |||||||
| Income (loss) before income taxes | 26,935 | (31,595 | ) | 5,072 | (138,996 | ) | ||||||
| Income tax benefit (expense) | 2,245 | 5,859 | (16,001 | ) | 4,472 | |||||||
| Net income (loss) | $ | 29,180 | $ | (25,736 | ) | $ | (10,929 | ) | $ | (134,524 | ) | |
| Net income (loss) per share: | ||||||||||||
| Net income (loss) per share, basic | $ | 0.15 | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.71 | ) | |
| Weighted average shares of common stock outstanding, basic | 193,369 | 190,928 | 192,893 | 189,956 | ||||||||
| Net income (loss) per share, diluted | $ | 0.14 | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.71 | ) | |
| Weighted average shares of common stock outstanding, diluted | 203,863 | 190,928 | 192,893 | 189,956 | ||||||||
The following tables summarize our consolidated key performance measures, including Field contribution and Field contribution margin, which are non-GAAP measures, for the periods indicated:
| For the three-month periods ended | ||||||||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | ||||||||
| Revenue | $ | 519,872 | $ | 478,841 | $ | 41,031 | 8.6 | % | ||||
| Cost of revenue, excluding depreciation and amortization | 348,150 | 330,393 | 17,757 | 5.4 | % | |||||||
| Gross margin | $ | 171,722 | $ | 148,448 | $ | 23,274 | 15.7 | % | ||||
| Gross margin percentage | 33.0 | % | 31.0 | % | ||||||||
| Branch and regional administrative expenses | 88,744 | 87,011 | 1,733 | 2.0 | % | |||||||
| Field contribution | $ | 82,978 | $ | 61,437 | $ | 21,541 | 35.1 | % | ||||
| Field contribution margin | 16.0 | % | 12.8 | % | ||||||||
| Corporate expenses | $ | 33,421 | $ | 28,299 | $ | 5,122 | 18.1 | % | ||||
| As a percentage of revenue | 6.4 | % | 5.9 | % | ||||||||
| Operating income | $ | 45,771 | $ | 29,293 | $ | 16,478 | 56.3 | % | ||||
| As a percentage of revenue | 8.8 | % | 6.1 | % | ||||||||
| For the fiscal years ended | ||||||||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | ||||||||
| Revenue | $ | 2,024,506 | $ | 1,895,209 | $ | 129,297 | 6.8 | % | ||||
| Cost of revenue, excluding depreciation and amortization | 1,388,964 | 1,299,777 | 89,187 | 6.9 | % | |||||||
| Gross margin | $ | 635,542 | $ | 595,432 | $ | 40,110 | 6.7 | % | ||||
| Gross margin percentage | 31.4 | % | 31.4 | % | ||||||||
| Branch and regional administrative expenses | 352,814 | 360,978 | (8,164 | ) | -2.3 | % | ||||||
| Field contribution | $ | 282,728 | $ | 234,454 | $ | 48,274 | 20.6 | % | ||||
| Field contribution margin | 14.0 | % | 12.4 | % | ||||||||
| Corporate expenses | $ | 125,402 | $ | 113,034 | $ | 12,368 | 10.9 | % | ||||
| As a percentage of revenue | 6.2 | % | 6.0 | % | ||||||||
| Operating income | $ | 139,787 | $ | 8,072 | $ | 131,715 | NM | |||||
| As a percentage of revenue | 6.9 | % | 0.4 | % | ||||||||
The following tables summarize our key performance measures by segment for the periods indicated:
| PDS | |||||||||||||
| For the three-month periods ended | |||||||||||||
| (dollars and hours in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 422,191 | $ | 383,446 | $ | 38,745 | 10.1 | % | |||||
| Cost of revenue, excluding depreciation and amortization | 298,560 | 279,870 | 18,690 | 6.7 | % | ||||||||
| Gross margin | $ | 123,631 | $ | 103,576 | $ | 20,055 | 19.4 | % | |||||
| Gross margin percentage | 29.3 | % | 27.0 | % | 2.3 | % | (4) | ||||||
| Hours | 10,488 | 10,080 | 408 | 4.0 | % | ||||||||
| Revenue rate | $ | 40.25 | $ | 38.04 | $ | 2.21 | 6.1 | % | (1) | ||||
| Cost of revenue rate | $ | 28.47 | $ | 27.76 | $ | 0.71 | 2.7 | % | (2) | ||||
| Spread rate | $ | 11.78 | $ | 10.28 | $ | 1.50 | 15.4 | % | (3) | ||||
| HHH | |||||||||||||
| For the three-month periods ended | |||||||||||||
| (dollars and admissions/episodes in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 54,423 | $ | 54,103 | $ | 320 | 0.6 | % | |||||
| Cost of revenue, excluding depreciation and amortization | 25,496 | 26,573 | (1,077 | ) | -4.1 | % | |||||||
| Gross margin | $ | 28,927 | $ | 27,530 | $ | 1,397 | 5.1 | % | |||||
| Gross margin percentage | 53.2 | % | 50.9 | % | 2.3 | % | (4) | ||||||
| Home health total admissions (5) | 8.5 | 9.2 | (0.7 | ) | -7.6 | % | |||||||
| Home health episodic admissions (6) | 6.5 | 6.8 | (0.3 | ) | -4.4 | % | |||||||
| Home health total episodes (7) | 11.2 | 11.3 | (0.1 | ) | -0.9 | % | |||||||
| Home health episodic mix (8) | 76.5 | % | 73.9 | % | 2.6 | % | |||||||
| Home health revenue per completed episode (9) | $ | 3,128 | $ | 3,064 | $ | 64 | 2.1 | % | |||||
| MS | |||||||||||||
| For the three-month periods ended | |||||||||||||
| (dollars and UPS in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 43,258 | $ | 41,292 | $ | 1,966 | 4.8 | % | |||||
| Cost of revenue, excluding depreciation and amortization | 24,094 | 23,950 | 144 | 0.6 | % | ||||||||
| Gross margin | $ | 19,164 | $ | 17,342 | $ | 1,822 | 10.5 | % | |||||
| Gross margin percentage | 44.3 | % | 42.0 | % | 2.3 | % | (4) | ||||||
| Unique patients served (“UPS”) | 89 | 90 | (1 | ) | -1.1 | % | |||||||
| Revenue rate | $ | 486.04 | $ | 458.80 | $ | 27.24 | 5.9 | % | (1) | ||||
| Cost of revenue rate | $ | 270.72 | $ | 266.11 | $ | 4.61 | 1.7 | % | (2) | ||||
| Spread rate | $ | 215.33 | $ | 192.69 | $ | 22.63 | 11.6 | % | (3) | ||||
| PDS | |||||||||||||
| For the fiscal years ended | |||||||||||||
| (dollars and hours in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 1,634,609 | $ | 1,518,811 | $ | 115,798 | 7.6 | % | |||||
| Cost of revenue, excluding depreciation and amortization | 1,190,148 | 1,095,091 | 95,057 | 8.7 | % | ||||||||
| Gross margin | $ | 444,461 | $ | 423,720 | $ | 20,741 | 4.9 | % | |||||
| Gross margin percentage | 27.2 | % | 27.9 | % | -0.7 | % | (4) | ||||||
| Hours | 41,562 | 39,818 | 1,744 | 4.4 | % | ||||||||
| Revenue rate | $ | 39.33 | $ | 38.14 | $ | 1.19 | 3.2 | % | (1) | ||||
| Cost of revenue rate | $ | 28.64 | $ | 27.50 | $ | 1.14 | 4.3 | % | (2) | ||||
| Spread rate | $ | 10.69 | $ | 10.64 | $ | 0.05 | 0.5 | % | (3) | ||||
| HHH | |||||||||||||
| For the fiscal years ended | |||||||||||||
| (dollars and admissions/episodes in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 217,805 | $ | 218,628 | $ | (823 | ) | -0.4 | % | ||||
| Cost of revenue, excluding depreciation and amortization | 101,310 | 113,762 | (12,452 | ) | -10.9 | % | |||||||
| Gross margin | $ | 116,495 | $ | 104,866 | $ | 11,629 | 11.1 | % | |||||
| Gross margin percentage | 53.5 | % | 48.0 | % | 5.5 | % | (4) | ||||||
| Home health total admissions (5) | 36.9 | 40.1 | (3.2 | ) | -8.0 | % | |||||||
| Home health episodic admissions (6) | 28.0 | 28.6 | (0.6 | ) | -2.1 | % | |||||||
| Home health total episodes (7) | 46.2 | 45.5 | 0.7 | 1.5 | % | ||||||||
| Home health episodic mix (8) | 75.9 | % | 71.3 | % | 4.6 | % | |||||||
| Home health revenue per completed episode (9) | $ | 3,099 | $ | 3,032 | $ | 67 | 2.2 | % | |||||
| MS | |||||||||||||
| For the fiscal years ended | |||||||||||||
| (dollars and UPS in thousands) | December 28, 2024 | December 30, 2023 | Change | % Change | |||||||||
| Revenue | $ | 172,092 | $ | 157,770 | $ | 14,322 | 9.1 | % | |||||
| Cost of revenue, excluding depreciation and amortization | 97,506 | 90,924 | 6,582 | 7.2 | % | ||||||||
| Gross margin | $ | 74,586 | $ | 66,846 | $ | 7,740 | 11.6 | % | |||||
| Gross margin percentage | 43.3 | % | 42.4 | % | 0.9 | % | (4) | ||||||
| Unique patients served (“UPS”) | 367 | 348 | 19 | 5.5 | % | ||||||||
| Revenue rate | $ | 468.92 | $ | 453.36 | $ | 15.56 | 3.6 | % | (1) | ||||
| Cost of revenue rate | $ | 265.68 | $ | 261.28 | $ | 4.40 | 1.7 | % | (2) | ||||
| Spread rate | $ | 203.24 | $ | 192.08 | $ | 11.16 | 6.1 | % | (3) | ||||
1) Represents the period over period change in revenue rate, plus the change in revenue rate attributable to the change in volume.
2) Represents the period over period change in cost of revenue rate, plus the change in cost of revenue rate attributable to the change in volume.
3) Represents the period over period change in spread rate, plus the change in spread rate attributable to the change in volume.
4) Represents the change in margin percentage year over year (or quarter over quarter).
5) Represents home health episodic and fee-for-service admissions.
6) Represents home health episodic admissions.
7) Represents episodic admissions and recertifications.
8) Represents the ratio of home health episodic admissions to home health total admissions.
9) Represents Medicare revenue per completed episode.
The following table reconciles gross margin and gross margin percentage to Field contribution and Field contribution margin:
| For the three-month periods ended | For the fiscal years ended | |||||||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | ||||||||
| Gross margin | $ | 171,722 | $ | 148,448 | $ | 635,542 | $ | 595,432 | ||||
| Branch and regional administrative expenses | 88,744 | 87,011 | 352,814 | 360,978 | ||||||||
| Field contribution | $ | 82,978 | $ | 61,437 | $ | 282,728 | $ | 234,454 | ||||
| Revenue | $ | 519,872 | $ | 478,841 | $ | 2,024,506 | $ | 1,895,209 | ||||
| Field contribution margin | 16.0 | % | 12.8 | % | 14.0 | % | 12.4 | % | ||||
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA:
| For the three-month periods ended | For the fiscal years ended | ||||||||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||
| Net income (loss) | $ | 29,180 | $ | (25,736 | ) | $ | (10,929 | ) | $ | (134,524 | ) | ||
| Interest expense, net | 37,896 | 39,615 | 156,104 | 152,919 | |||||||||
| Income tax (benefit) expense | (2,245 | ) | (5,859 | ) | 16,001 | (4,472 | ) | ||||||
| Depreciation and amortization | 2,446 | 3,284 | 10,778 | 13,778 | |||||||||
| EBITDA | 67,277 | 11,304 | 171,954 | 27,701 | |||||||||
| Goodwill, intangible and other long-lived asset impairment | (40 | ) | 723 | 5,264 | 107,945 | ||||||||
| Non-cash share-based compensation | 4,983 | 3,014 | 17,465 | 13,158 | |||||||||
| Interest rate derivatives (1) | (19,131 | ) | 21,253 | (21,351 | ) | (5,612 | ) | ||||||
| Acquisition-related costs (2) | 1,340 | - | 1,490 | 466 | |||||||||
| Integration costs (3) | 262 | 579 | 1,211 | 2,310 | |||||||||
| Legal costs and settlements associated with acquisition matters (4) | 203 | 47 | 1,626 | (4,749 | ) | ||||||||
| Restructuring (5) | 618 | 2,318 | 5,405 | 8,051 | |||||||||
| Other legal matters (6) | 241 | 96 | 1,353 | (4,904 | ) | ||||||||
| Other system transition costs, professional fees and other (7) | (545 | ) | (671 | ) | (839 | ) | (5,176 | ) | |||||
| Total adjustments | $ | (12,069 | ) | $ | 27,359 | $ | 11,624 | $ | 111,489 | ||||
| Adjusted EBITDA | $ | 55,208 | $ | 38,663 | $ | 183,578 | $ | 139,190 | |||||
The following table reconciles net income (loss) to adjusted net income (loss) and presents adjusted net income (loss) per diluted share:
| For the three-month periods ended | For the fiscal years ended | |||||||||||
| (dollars in thousands, except share and per share data) | December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | ||||||||
| Net income (loss) | $ | 29,180 | $ | (25,736 | ) | $ | (10,929 | ) | $ | (134,524 | ) | |
| Income tax (benefit) expense | (2,245 | ) | (5,859 | ) | 16,001 | (4,472 | ) | |||||
| Goodwill, intangible and other long-lived asset impairment | (40 | ) | 723 | 5,264 | 107,945 | |||||||
| Non-cash share-based compensation | 4,983 | 3,014 | 17,465 | 13,158 | ||||||||
| Interest rate derivatives (1) | (19,131 | ) | 21,253 | (21,351 | ) | (5,612 | ) | |||||
| Acquisition-related costs (2) | 1,340 | - | 1,490 | 466 | ||||||||
| Integration costs (3) | 262 | 579 | 1,211 | 2,310 | ||||||||
| Legal costs and settlements associated with acquisition matters (4) | 203 | 47 | 1,626 | (4,749 | ) | |||||||
| Restructuring (5) | 618 | 2,318 | 5,405 | 8,051 | ||||||||
| Other legal matters (6) | 241 | 96 | 1,353 | (4,904 | ) | |||||||
| Other system transition costs, professional fees and other (7) | (545 | ) | (671 | ) | (839 | ) | (5,176 | ) | ||||
| Total adjustments | (14,314 | ) | 21,500 | 27,625 | 107,017 | |||||||
| Adjusted pre-tax income (loss) | 14,866 | (4,236 | ) | 16,696 | (27,507 | ) | ||||||
| Income tax (expense) benefit on adjusted pre-tax income (loss) (8) | (3,717 | ) | 1,059 | (4,174 | ) | 6,877 | ||||||
| Adjusted net income (loss) | $ | 11,149 | $ | (3,177 | ) | $ | 12,522 | $ | (20,630 | ) | ||
| Weighted average shares outstanding, diluted (9) | 203,863 | 190,928 | 199,349 | 189,956 | ||||||||
| Adjusted net income (loss) per diluted share (10) | $ | 0.05 | $ | (0.02 | ) | $ | 0.06 | $ | (0.11 | ) | ||
The following footnotes are applicable to tables above that reconcile (i) net income (loss) to EBITDA and Adjusted EBITDA and (ii) net income (loss) to adjusted net income (loss).
1) Represents valuation adjustments and settlements associated with interest rate derivatives that are not included in interest expense, net. Such items are included in other income (expense).
2) Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, and finance and accounting diligence and documentation, as presented on the Company’s consolidated statements of operations.
3) Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other things, of
4) Represents legal and forensic costs, as well as settlements associated with resolving legal matters arising during or as a result of our acquisition-related activities. This primarily includes (i) costs of
5) Represents costs associated with restructuring our branch and regional administrative footprint as well as our corporate overhead infrastructure costs in order to appropriately size our resources to current volumes, including: (i) branch and regional salary and severance costs; (ii) corporate salary and severance costs; and (iii) rent and lease termination costs associated with the closure of certain office locations. Restructuring costs also include compensation, severance and related benefits costs associated with an executive transition plan initiated in the first quarter of 2024.
6) Represents activity related to accrued legal settlements and the related costs and expenses associated with certain judgments and arbitration awards rendered against the Company where certain insurance coverage is in dispute.
7) Represents: (i) costs associated with the implementation of, and transition to, new electronic medical record systems, billing and collection systems, duplicative system costs while such transformational projects are in-process, and other system transition costs of
8) Derived utilizing a combined statutory rate of
9) Weighted average shares outstanding, diluted for the fiscal year ended December 28, 2024 includes 6.5 million additional dilutive shares that are not presented within our consolidated results of operations due to net loss for the fiscal year ended December 28, 2024, as their inclusion in calculating net loss per share would be antidilutive. The dilutive shares are included within the calculation of adjusted net income per dilutive share for fiscal year ended December 28, 2024 above, as their effect would have been dilutive.
10) Adjustments used to reconcile net income (loss) per diluted share on a GAAP basis to adjusted net income (loss) per diluted share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to adjusted net income (loss) divided by the weighted-average diluted shares outstanding during the period.
The following table reconciles net income (loss) to adjusted net income (loss) and presents adjusted net income (loss) per diluted share:
| For the three-month periods ended | For the fiscal years ended | |||||||||||||||||||||||
| December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||||||||||
| (dollars in thousands) | Dollars | Per Diluted Share | Dollars | Per Diluted Share | Dollars | Per Diluted Share | Dollars | Per Diluted Share | ||||||||||||||||
| Net income (loss) | $ | 29,180 | $ | 0.14 | $ | (25,736 | ) | $ | (0.13 | ) | $ | (10,929 | ) | $ | (0.06 | ) | $ | (134,524 | ) | $ | (0.71 | ) | ||
| Total adjustments (1) | (14,314 | ) | (0.07 | ) | 21,500 | 0.11 | 27,625 | 0.14 | 107,017 | 0.56 | ||||||||||||||
| Income tax (benefit on adjusted pre-tax income (loss) | (3,717 | ) | (0.02 | ) | 1,059 | 0.00 | (4,174 | ) | (0.02 | ) | 6,877 | 0.04 | ||||||||||||
| Adjusted net income (loss) | $ | 11,149 | $ | 0.05 | $ | (3,177 | ) | $ | (0.02 | ) | $ | 12,522 | $ | 0.06 | $ | (20,630 | ) | $ | (0.11 | ) | ||||
1) Total adjustments agrees to the net income (loss) to adjusted net income (loss) table above.
The table below reflects the increase or decrease, and aggregate impact, to the line items included on our consolidated statements of operations based upon the adjustments used in arriving at Adjusted EBITDA from EBITDA for the periods indicated.
| For the three-month periods ended | For the fiscal years ended | |||||||||||
| (dollars in thousands) | December 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | ||||||||
| Cost of revenue, excluding depreciation and amortization | $ | 281 | $ | 88 | $ | 738 | $ | (4,424 | ) | |||
| Branch and regional administrative expenses | 1,682 | 667 | 7,071 | 6,796 | ||||||||
| Corporate expenses | 3,688 | 4,760 | 18,443 | 15,388 | ||||||||
| Goodwill impairment | - | - | - | 105,136 | ||||||||
| Acquisition-related costs | 1,340 | - | 1,490 | 466 | ||||||||
| Other operating expense (income) | 77 | (146 | ) | 2,189 | (8,882 | ) | ||||||
| Other income (expense) | (19,137 | ) | 21,990 | (18,307 | ) | (2,991 | ) | |||||
| Total adjustments | $ | (12,069 | ) | $ | 27,359 | $ | 11,624 | $ | 111,489 | |||
The following table reconciles the net cash provided by operating activities to free cash flow:
| For the fiscal year ended | ||||
| (dollars in thousands) | December 28, 2024 | |||
| Net cash provided by operating activities | $ | 32,637 | ||
| Purchases of property and equipment, and software | (6,319 | ) | ||
| Principal payments of term loans | (9,200 | ) | ||
| Principal payments of notes payable and financing lease obligations | (6,908 | ) | ||
| Settlements with swap counterparties | 15,489 | |||
| Free cash flow | $ | 25,699 | ||
Investor Contact
Matt Buckhalter
Chief Financial Officer
Ir@aveanna.com
FAQ
What was Aveanna Healthcare's (AVAH) revenue growth in Q4 2024?
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