BrightSpring Health Services, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results and Increases Full Year 2025 Guidance
BrightSpring Health Services (NASDAQ: BTSG) reported strong Q4 and full year 2024 results, with significant revenue growth and improved profitability. Q4 net revenue increased 28.6% to $3,053 million, with net income of $15.4 million compared to a loss in Q4 2023. Full year revenue grew 27.6% to $11,266 million, while net loss improved to $20.5 million from $156.8 million in 2023.
The company announced plans to divest its Community Living business to Sevita for $835 million. For 2025, BrightSpring increased guidance (excluding Community Living), projecting revenue of $11,600-$12,100 million (15.2-20.1% growth) and Adjusted EBITDA of $545-560 million (18.4-21.7% growth). The Pharmacy Segment is expected to grow 15.9-21.1%, while the Provider Segment is forecast to grow 10.0-13.8%.
BrightSpring Health Services (NASDAQ: BTSG) ha riportato risultati solidi per il Q4 e l'intero anno 2024, con una significativa crescita dei ricavi e un miglioramento della redditività. Il fatturato netto del Q4 è aumentato del 28,6% a $3.053 milioni, con un reddito netto di $15,4 milioni rispetto a una perdita nel Q4 2023. Il fatturato dell'intero anno è cresciuto del 27,6% a $11.266 milioni, mentre la perdita netta è migliorata a $20,5 milioni rispetto ai $156,8 milioni del 2023.
L'azienda ha annunciato piani per dismettere la sua attività di Community Living a Sevita per $835 milioni. Per il 2025, BrightSpring ha aumentato le previsioni (escludendo Community Living), prevedendo un fatturato di $11.600-$12.100 milioni (crescita del 15,2-20,1%) e un EBITDA rettificato di $545-560 milioni (crescita del 18,4-21,7%). Si prevede che il segmento Farmaceutico cresca del 15,9-21,1%, mentre il segmento Fornitori è previsto crescere del 10,0-13,8%.
BrightSpring Health Services (NASDAQ: BTSG) reportó resultados sólidos para el Q4 y el año completo 2024, con un crecimiento significativo en los ingresos y una mejora en la rentabilidad. Los ingresos netos del Q4 aumentaron un 28.6% a $3,053 millones, con un ingreso neto de $15.4 millones en comparación con una pérdida en el Q4 de 2023. Los ingresos del año completo crecieron un 27.6% a $11,266 millones, mientras que la pérdida neta mejoró a $20.5 millones desde $156.8 millones en 2023.
La compañía anunció planes para desinvertir su negocio de Community Living a Sevita por $835 millones. Para 2025, BrightSpring aumentó su guía (excluyendo Community Living), proyectando ingresos de $11,600-$12,100 millones (crecimiento del 15.2-20.1%) y EBITDA ajustado de $545-560 millones (crecimiento del 18.4-21.7%). Se espera que el segmento de Farmacia crezca entre un 15.9% y un 21.1%, mientras que se prevé que el segmento de Proveedores crezca entre un 10.0% y un 13.8%.
BrightSpring Health Services (NASDAQ: BTSG)는 2024년 4분기 및 전체 연도에 대한 강력한 실적을 보고했으며, 매출이 크게 성장하고 수익성이 개선되었습니다. 4분기 순매출은 28.6% 증가한 30억 5,300만 달러를 기록했으며, 2023년 4분기의 손실과 비교해 1540만 달러의 순이익을 올렸습니다. 전체 연도 매출은 27.6% 증가하여 112억 6,600만 달러에 달했으며, 순손실은 2023년 1억 5,680만 달러에서 2,050만 달러로 개선되었습니다.
회사는 Community Living 사업을 Sevita에 8억 3,500만 달러에 매각할 계획을 발표했습니다. 2025년을 위해 BrightSpring은 (Community Living을 제외하고) 매출을 116억 ~ 121억 달러(15.2-20.1% 성장)로, 조정 EBITDA를 5억 4500만 ~ 5억 6000만 달러(18.4-21.7% 성장)로 예상했습니다. 약국 부문은 15.9-21.1% 성장할 것으로 예상되며, 제공자 부문은 10.0-13.8% 성장할 것으로 예측됩니다.
BrightSpring Health Services (NASDAQ: BTSG) a annoncé des résultats solides pour le Q4 et l'année entière 2024, avec une croissance significative des revenus et une amélioration de la rentabilité. Les revenus nets du Q4 ont augmenté de 28,6 % pour atteindre 3 053 millions de dollars, avec un revenu net de 15,4 millions de dollars par rapport à une perte au Q4 2023. Les revenus de l'année entière ont augmenté de 27,6 % pour atteindre 11 266 millions de dollars, tandis que la perte nette s'est améliorée à 20,5 millions de dollars contre 156,8 millions de dollars en 2023.
L'entreprise a annoncé des projets de cession de son activité Community Living à Sevita pour 835 millions de dollars. Pour 2025, BrightSpring a relevé ses prévisions (hors Community Living), projetant des revenus de 11 600 à 12 100 millions de dollars (croissance de 15,2 à 20,1 %) et un EBITDA ajusté de 545 à 560 millions de dollars (croissance de 18,4 à 21,7 %). Le segment Pharmacie devrait croître de 15,9 à 21,1 %, tandis que le segment Fournisseurs devrait croître de 10,0 à 13,8 %.
BrightSpring Health Services (NASDAQ: BTSG) hat starke Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet, mit signifikantem Umsatzwachstum und verbesserter Rentabilität. Der Nettoumsatz im Q4 stieg um 28,6 % auf 3.053 Millionen Dollar, mit einem Nettogewinn von 15,4 Millionen Dollar im Vergleich zu einem Verlust im Q4 2023. Der Umsatz des gesamten Jahres wuchs um 27,6 % auf 11.266 Millionen Dollar, während sich der Nettoverlust auf 20,5 Millionen Dollar von 156,8 Millionen Dollar im Jahr 2023 verbesserte.
Das Unternehmen kündigte Pläne an, sein Community Living-Geschäft für 835 Millionen Dollar an Sevita zu verkaufen. Für 2025 hat BrightSpring die Prognose (ohne Community Living) angehoben und rechnet mit einem Umsatz von 11.600 bis 12.100 Millionen Dollar (Wachstum von 15,2-20,1 %) und einem bereinigten EBITDA von 545 bis 560 Millionen Dollar (Wachstum von 18,4-21,7 %). Der Pharmasektor wird voraussichtlich um 15,9-21,1 % wachsen, während der Anbietersektor mit 10,0-13,8 % Wachstum prognostiziert wird.
- Q4 revenue up 28.6% to $3,053M
- Q4 net income of $15.4M vs loss of $7.2M in Q4 2023
- Full year revenue up 27.6% to $11,266M
- Net loss improved significantly from $156.8M to $20.5M
- Divestiture of Community Living for $835M to improve capital flexibility
- Increased 2025 guidance with 15-20% revenue growth
- Full year 2024 still shows net loss of $20.5M
- Loss of $30M Quality Incentive Payment program affecting EBITDA
Insights
BrightSpring Health's Q4 and full-year 2024 results showcase impressive revenue growth coupled with substantial profitability improvements. The 28.6% Q4 revenue increase to
The planned
Most compelling is their increased 2025 guidance, projecting 15.2-20.1% revenue growth and 18.4-21.7% Adjusted EBITDA growth (excluding the divested segment). The Pharmacy segment's projected 15.9-21.1% growth underscores its position as the company's growth engine. This guidance increase reflects management's confidence in their operational model and market position despite the significant business divestiture.
The company's focus on efficiency and service quality appears to be yielding financial results across key metrics, suggesting their business model is gaining traction in the complex home and community-based health services market. The substantial improvement in bottom-line performance while maintaining strong top-line growth indicates effective cost management and operational leverage taking hold.
LOUISVILLE, Ky., March 06, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, today announced financial results for the fourth quarter and full year ended December 31, 2024, and increased revenue and Adjusted EBITDA¹ guidance.
Financial Highlights
- Fourth quarter net revenue of
$3,053 million , up28.6% compared to$2,375 million in the fourth quarter of 2023. - Fourth quarter net income of
$15.4 million , compared to net loss of$7.2 million in the fourth quarter of 2023. - Fourth quarter Adjusted EBITDA¹ of
$167 million , up17.4% versus$143 million in the fourth quarter of 2023. - Full year net revenue of
$11,266 million , up27.6% compared to$8,826 million in 2023. - Full year net loss of
$20.5 million , compared to net loss of$156.8 million in 2023. - Full year Adjusted EBITDA¹ of
$588 million , up9.3% versus$538 million in 2023.- When excluding a certain
$30 million Quality Incentive Payment (QIP) in 2023, Adjusted EBITDA was up15.9% compared to$508 million in 2023. This certain vendor QIP program has reached its conclusion, as previously disclosed.
- When excluding a certain
- On January 20, 2025, announced BrightSpring entered into a definitive agreement to divest the Community Living business to Sevita for
$835 million , subject to customary closing adjustments. - Increased 2025 Revenue and Adjusted EBITDA Guidance, excluding Community Living:
- Revenue:
$11,600 –$12,100 million - Adjusted EBITDA¹:
$545 –$560 million
- Revenue:
“In 2024, BrightSpring’s focus on quality and third-party satisfaction scores, growth in customers and patients served, and efficiency and best practices across the organization resulted in another excellent year of both operational and financial performance,” said Jon Rousseau, Chairman, President and Chief Executive Officer of the Company. “I am proud of our team’s commitment and capabilities that underpin these results, as well as the organization’s impact throughout communities. We are enthusiastic about what’s in front of us in 2025, as we further drive our mission to reach people who need the Company’s beneficial service solutions. We expect the recently announced divestiture of Community Living to result in a more streamlined organization with greater capital flexibility and increased growth rates.”
Fourth Quarter 2024 Financial Results
Net revenue of
Gross profit of
Net income of
Adjusted EBITDA¹ of
Full Year 2024 Financial Results
Net revenue of
Gross profit of
Net loss of
Adjusted EBITDA¹ of
- When excluding a certain
$30 million QIP in 2023, Adjusted EBITDA¹ was up15.9% compared to$508 million in 2023.
¹Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” and the end of this press release for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure prepared in accordance with GAAP.
Key Financials
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2024 | 2023 | % | 2024 | 2023 | % | |||||||||||||||||
($ in millions) | ||||||||||||||||||||||
Pharmacy Solutions Revenue | $ | 2,397 | $ | 1,785 | 34 | % | $ | 8,754 | $ | 6,522 | 34 | % | ||||||||||
Provider Services Revenue | 656 | 589 | 11 | % | 2,512 | 2,304 | 9 | % | ||||||||||||||
Total Revenue | $ | 3,053 | $ | 2,375 | 29 | % | $ | 11,266 | $ | 8,826 | 28 | % |
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2024 | 2023 | % | 2024 | 2023 | % | |||||||||||||||||
($ in millions) | ||||||||||||||||||||||
Pharmacy Solutions segment EBITDA | $ | 113 | $ | 93 | 22 | % | $ | 395 | $ | 371 | 6 | % | ||||||||||
Provider Services segment EBITDA | 99 | 86 | 16 | % | 361 | 307 | 18 | % | ||||||||||||||
Total Segment Adjusted EBITDA | $ | 212 | $ | 178 | 19 | % | $ | 755 | $ | 678 | 11 | % | ||||||||||
Corporate Costs | (45 | ) | (36 | ) | - | (167 | ) | (140 | ) | - | ||||||||||||
Total Company Adjusted EBITDA | $ | 167 | $ | 143 | 17 | % | $ | 588 | $ | 538 | 9 | % |
Full Year 2025 Financial Guidance
For the full year 2025, BrightSpring is increasing guidance, which excludes the Community Living business and the effects of any future closed acquisitions. All growth rates reflect growth from the full year 2024 revenue and Adjusted EBTIDA results, excluding the Community Living business.
- Net Revenue of
$11,600 million to$12,100 million , or15.2% to20.1% growth over full year 2024.- Pharmacy Segment Revenue of
$10,150 million to$10,600 million , or15.9% to21.1% growth over full year 2024. - Provider Segment Revenue of
$1,450 million to$1,500 million , or10.0% to13.8% growth over full year 2024.
- Pharmacy Segment Revenue of
- Adjusted EBITDA² of
$545 million to$560 million , or18.4% to21.7% growth over full year 2024.
A copy of the Company’s fourth quarter and fiscal year 2024 earnings presentation is available on the Company’s investor relations website, https://ir.brightspringhealth.com/
²A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDA to GAAP net loss cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
Webcast and Conference Call Details
BrightSpring will host a conference call today, March 6, 2025, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online.
A live and archived webcast of the event will be available on the “Events & Presentations” section of the BrightSpring website at https://ir.brightspringhealth.com/. The Company has posted supplemental financial information on the fourth quarter and fiscal year 2024 results that it will reference during the conference call. The supplemental information can be found under the “Events & Presentations” on the Company’s investor relations page.
About BrightSpring Health Services
BrightSpring Health Services provides complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care. Through the Company’s service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive and more integrated care and clinical solutions in all 50 states to over 450,000 customers, clients and patients daily. BrightSpring has consistently demonstrated strong and often industry-leading quality metrics across its services lines while improving the quality of life and health for high-need individuals and reducing overall costs to the healthcare system.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements may relate to matters which include, but are not limited to, industries, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. In some cases, we have used words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases to identify these forward-looking statements.
The forward-looking statements are based on management’s current expectations and are not historical facts or guarantees of future performance. The forward-looking statements relate to the future and are therefore subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following:
- our operation in a highly competitive industry;
- our inability to maintain relationships with existing patient referral sources or establish new referral sources;
- changes to Medicare and Medicaid rates or methods governing Medicare and Medicaid payments for our services;
- cost containment initiatives of third-party payors, including post-payment audits;
- the implementation of alternative payment models and the transition of Medicaid and Medicare beneficiaries to managed care organizations may limit our market share and could adversely affect our revenues;
- changes in the case mix of patients, as well as payor mix and payment methodologies, and decisions and operations of third-party organizations;
- our reliance on federal and state spending, budget decisions, and continuous governmental operations which may fluctuate under different political conditions;
- changes in drug utilization and/or pricing, PBM contracts, and Medicare Part D/Medicaid reimbursement, which may negatively impact our profitability;
- changes in our relationships with pharmaceutical suppliers, including changes in drug availability or pricing;
- reliance on the continual recruitment and retention of nurses, pharmacists, therapists, caregivers, direct support professionals, and other qualified personnel, including senior management;
- compliance with or changes to federal, state, and local laws and regulations that govern our employment practices, including minimum wage, living wage, and paid time-off requirements;
- fluctuation of our results of operations on a quarterly basis;
- harm caused by labor relation matters;
- limitations in our ability to control reimbursement rates received for our services if we are unable to maintain or reduce our costs to provide such services;
- delays in collection or non-collection of our accounts receivable, particularly during the business integration process;
- failure to manage our growth effectively, which may inhibit our ability to execute our business plan, maintain high levels of service and satisfaction or adequately address competitive challenges;
- our ability to identify, successfully complete and manage acquisitions, joint ventures, and other strategic initiatives, including the pending sale of our Community Living business;
- our ability to continue to provide consistently high quality of care;
- maintenance of our corporate reputation or the emergence of adverse publicity, including negative information on social media or changes in public perception of our services;
- contract continuance, expansion and renewal with our existing customers, including renewals at lower fee levels, customers declining to purchase additional services from us, or reduction in the services received from us pursuant to those contracts;
- effective investment in, implementation of improvements to and proper maintenance of the uninterrupted operation and data integrity of our information technology and other business systems;
- security breaches, loss of data, and other disruptions, which could compromise sensitive business or patient information; cause a loss of confidential patient data, employee data or personal information; or prevent access to critical information and thereby expose us to liability, litigation, and federal and state governmental inquiries and damage our reputation and brand;
- risks related to credit card payments and other payment methods;
- potential substantial malpractice or other similar claims;
- various risks related to governmental inquiries, regulatory actions, and whistleblower and other lawsuits, which may not be entirely covered by insurance;
- our current insurance program, which may expose us to unexpected costs, particularly if we incur losses not covered by our insurance or if claims or losses differ from our estimates;
- factors outside of our control, including those listed, which have required and could in the future require us to record an asset impairment of goodwill;
- a pandemic, epidemic, or outbreak of an infectious disease;
- inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations; and
- our inability to adequately protect our intellectual property rights.
The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. These factors should not be construed as exhaustive, and should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward- looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make.
For additional information on these and other factors that could cause BrightSpring’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.
Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” including “EBITDA” and “Adjusted EBITDA,” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP.
EBITDA and Adjusted EBITDA have been presented in this release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also believes that these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses EBITDA and Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish and award discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures.
Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. EBITDA and Adjusted EBITDA are not GAAP measures of our financial performance and should not be considered as an alternative to net loss as a measure of financial performance or any other performance measures derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as tax payments, debt service requirements, total capital expenditures, and certain other cash costs that may recur in the future.
Management defines EBITDA as net loss before income tax expense (benefit), interest expense, and depreciation and amortization. Management also defines Adjusted EBITDA as EBITDA, further adjusted to exclude non-cash share-based compensation, acquisition, integration and transaction-related costs, restructuring and divestiture-related and other costs, goodwill impairment, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, management fees, and unreimbursed COVID-19 related costs.
The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see the end of this press release for reconciliations of non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP.
BrightSpring Contact:
Investor Relations:
David Deuchler, CFA
Gilmartin Group LLC
ir@brightspringhealth.com
Media Contact:
Leigh White
leigh.white@brightspringhealth.com
502.630.7412
BrightSpring Health Services, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
December 31, 2024 and 2023 | ||||||||
(In thousands, except share and per share data) | ||||||||
(Unaudited) | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 61,253 | $ | 13,071 | ||||
Accounts receivable, net of allowance for credit losses | 1,028,654 | 881,627 | ||||||
Inventories | 640,568 | 402,776 | ||||||
Prepaid expenses and other current assets | 162,579 | 159,167 | ||||||
Total current assets | 1,893,054 | 1,456,641 | ||||||
Property and equipment, net of accumulated depreciation of | 250,286 | 245,908 | ||||||
Goodwill | 2,671,524 | 2,608,412 | ||||||
Intangible assets, net of accumulated amortization | 811,482 | 881,476 | ||||||
Operating lease right-of-use assets, net | 249,748 | 267,446 | ||||||
Deferred income taxes, net | 5,575 | — | ||||||
Other assets | 44,471 | 72,838 | ||||||
Total assets | $ | 5,926,140 | $ | 5,532,721 | ||||
Liabilities, Redeemable Noncontrolling Interests, and Equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 941,292 | $ | 641,607 | ||||
Accrued expenses | 356,538 | 492,363 | ||||||
Current portion of obligations under operating leases | 69,665 | 71,053 | ||||||
Current portion of obligations under financing leases | 12,113 | 11,141 | ||||||
Current portion of long-term debt | 48,725 | 32,273 | ||||||
Total current liabilities | 1,428,333 | 1,248,437 | ||||||
Obligations under operating leases, net of current portion | 187,614 | 201,655 | ||||||
Obligations under financing leases, net of current portion | 24,991 | 22,528 | ||||||
Long-term debt, net of current portion | 2,561,858 | 3,331,941 | ||||||
Deferred income taxes, net | — | 23,668 | ||||||
Long-term liabilities | 71,759 | 91,943 | ||||||
Total liabilities | 4,274,555 | 4,920,172 | ||||||
Redeemable noncontrolling interests | 3,730 | 27,139 | ||||||
Shareholders’ equity: | ||||||||
Common stock, | $ | 1,742 | $ | 1,179 | ||||
Preferred stock, | — | — | ||||||
Additional paid-in capital | 1,866,850 | 771,336 | ||||||
Accumulated deficit | (222,155 | ) | (200,319 | ) | ||||
Accumulated other comprehensive income | 1,418 | 12,544 | ||||||
Total shareholders’ equity | 1,647,855 | 584,740 | ||||||
Noncontrolling interest | — | 670 | ||||||
Total equity | 1,647,855 | 585,410 | ||||||
Total liabilities, redeemable noncontrolling interests, and equity | $ | 5,926,140 | $ | 5,532,721 |
BrightSpring Health Services, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
For the three and twelve months ended December 31, 2024 and 2023 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 2,397,059 | $ | 1,785,457 | $ | 8,754,282 | $ | 6,522,450 | ||||||||
Services | 655,742 | 589,087 | 2,512,190 | 2,303,725 | ||||||||||||
Total revenues | 3,052,801 | 2,374,544 | 11,266,472 | 8,826,175 | ||||||||||||
Cost of goods | 2,192,520 | 1,614,641 | 8,008,501 | 5,840,716 | ||||||||||||
Cost of services | 438,382 | 391,188 | 1,669,536 | 1,551,665 | ||||||||||||
Gross profit | 421,899 | 368,715 | 1,588,435 | 1,433,794 | ||||||||||||
Selling, general, and administrative expenses | 342,846 | 300,453 | 1,382,061 | 1,286,614 | ||||||||||||
Operating income | 79,053 | 68,262 | 206,374 | 147,180 | ||||||||||||
Loss on extinguishment of debt | — | — | 12,726 | — | ||||||||||||
Interest expense, net | 54,866 | 83,054 | 228,386 | 324,593 | ||||||||||||
Income (loss) before income taxes | 24,187 | (14,792 | ) | (34,738 | ) | (177,413 | ) | |||||||||
Income tax expense (benefit) | 8,783 | (7,591 | ) | (14,217 | ) | (20,578 | ) | |||||||||
Net income (loss) | 15,404 | (7,201 | ) | (20,521 | ) | (156,835 | ) | |||||||||
Net loss attributable to noncontrolling interests | (595 | ) | (664 | ) | (2,459 | ) | (2,232 | ) | ||||||||
Net income (loss) attributable to BrightSpring Health Services, Inc. and subsidiaries | $ | 15,999 | $ | (6,537 | ) | $ | (18,062 | ) | $ | (154,603 | ) | |||||
Net income (loss) per common share: | ||||||||||||||||
Income (loss) per share – basic | $ | 0.08 | $ | (0.06 | ) | $ | (0.09 | ) | $ | (1.31 | ) | |||||
Income (loss) per share – diluted | $ | 0.08 | $ | (0.06 | ) | $ | (0.09 | ) | $ | (1.31 | ) | |||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 200,312 | 117,857 | 192,997 | 117,868 | ||||||||||||
Diluted | 213,160 | 117,857 | 192,997 | 117,868 |
BrightSpring Health Services, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||
For the three and twelve months ended December 31, 2024 and 2023 | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Operating activities: | ||||||||||||||||
Net income (loss) | $ | 15,404 | $ | (7,201 | ) | $ | (20,521 | ) | $ | (156,835 | ) | |||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 54,881 | 51,012 | 204,482 | 202,336 | ||||||||||||
Impairment of long-lived assets | 5,454 | 2,336 | 10,235 | 10,631 | ||||||||||||
Change in fair value of contingent consideration, net | 2,261 | — | 2,261 | — | ||||||||||||
Payment of contingent consideration in excess of acquisition date fair value | (2,351 | ) | — | (2,351 | ) | — | ||||||||||
Provision for credit losses | 12,102 | 4,310 | 33,998 | 23,237 | ||||||||||||
Amortization of deferred debt issuance costs | 2,631 | 5,225 | 12,108 | 20,916 | ||||||||||||
Share-based compensation | 13,980 | 1,817 | 69,174 | 3,917 | ||||||||||||
Deferred income taxes, net | 1,867 | (16,067 | ) | (25,914 | ) | (52,632 | ) | |||||||||
Loss on extinguishment of debt | — | — | 12,726 | — | ||||||||||||
Loss (gain) on disposition of fixed assets | 156 | (608 | ) | 101 | 349 | |||||||||||
Other | (1,492 | ) | (362 | ) | (2,451 | ) | (572 | ) | ||||||||
Change in operating assets and liabilities, net of acquisitions and dispositions: | ||||||||||||||||
Accounts receivable | (15,044 | ) | (10,324 | ) | (179,040 | ) | (127,246 | ) | ||||||||
Prepaid expenses and other current assets | 10,065 | (34,737 | ) | 7,595 | (34,899 | ) | ||||||||||
Inventories | (162,249 | ) | (24,584 | ) | (236,514 | ) | 28,660 | |||||||||
Trade accounts payable | 147,646 | 163,962 | 303,209 | 105,649 | ||||||||||||
Accrued expenses | 5,452 | 34,280 | (144,580 | ) | 193,633 | |||||||||||
Other assets and liabilities | (151 | ) | (6,659 | ) | (20,744 | ) | (6,361 | ) | ||||||||
Net cash provided by operating activities | $ | 90,612 | $ | 162,400 | $ | 23,774 | $ | 210,783 | ||||||||
Investing activities: | ||||||||||||||||
Purchases of property and equipment | $ | (15,311 | ) | $ | (16,834 | ) | $ | (80,913 | ) | $ | (73,527 | ) | ||||
Acquisitions of businesses, net of cash acquired | (42 | ) | (550 | ) | (59,797 | ) | (63,058 | ) | ||||||||
Other | (427 | ) | 362 | 473 | 2,152 | |||||||||||
Net cash used in investing activities | $ | (15,780 | ) | $ | (17,022 | ) | $ | (140,237 | ) | $ | (134,433 | ) | ||||
Financing activities: | ||||||||||||||||
Long-term debt borrowings | $ | — | $ | — | $ | 2,566,000 | $ | — | ||||||||
Long-term debt repayments | (11,701 | ) | (7,584 | ) | (3,396,334 | ) | (30,441 | ) | ||||||||
Proceeds from issuance of common stock on initial public offering, net | — | — | 656,485 | — | ||||||||||||
Proceeds from issuance of tangible equity units, net | — | — | 389,000 | — | ||||||||||||
(Repayments) borrowings of the Revolving Credit Facility, net | (33,800 | ) | (122,350 | ) | 12,600 | (24,100 | ) | |||||||||
Payment of debt issuance costs | (3,857 | ) | — | (47,045 | ) | — | ||||||||||
Repurchase of shares of common stock | — | (325 | ) | (650 | ) | (650 | ) | |||||||||
Proceeds from shares issued under share-based compensation plan | 377 | — | 1,535 | 598 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (569 | ) | — | (1,196 | ) | — | ||||||||||
Repurchase of stock options | — | (10,000 | ) | — | (10,000 | ) | ||||||||||
Payment of contingent consideration | 2,351 | (1,453 | ) | (1,805 | ) | (1,453 | ) | |||||||||
Distributions to redeemable noncontrolling interests | — | — | — | — | ||||||||||||
Purchase of redeemable noncontrolling interest | — | — | (2,316 | ) | — | |||||||||||
Investment in noncontrolling interests | — | 735 | — | 735 | ||||||||||||
Payment of financing lease obligations | (2,353 | ) | (2,971 | ) | (11,629 | ) | (11,596 | ) | ||||||||
Net cash (used in) provided by financing activities | $ | (49,552 | ) | $ | (143,948 | ) | $ | 164,645 | $ | (76,907 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 25,280 | 1,430 | 48,182 | (557 | ) | |||||||||||
Cash and cash equivalents at beginning of year | 35,973 | 11,641 | 13,071 | 13,628 | ||||||||||||
Cash and cash equivalents at end of year | $ | 61,253 | $ | 13,071 | $ | 61,253 | $ | 13,071 |
BrightSpring Health Services, Inc. and Subsidiaries | ||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||||||
For the three and twelve months ended December 31, 2024 and 2023 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA: | ||||||||||||||||
($ in thousands) | For the Three Months Ended | For the Years Ended | ||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) | $ | 15,404 | $ | (7,201 | ) | $ | (20,521 | ) | $ | (156,835 | ) | |||||
Income tax benefit | 8,783 | (7,591 | ) | (14,217 | ) | (20,578 | ) | |||||||||
Interest expense, net | 54,866 | 83,054 | 228,386 | 324,593 | ||||||||||||
Depreciation and amortization | 54,881 | 51,012 | 204,482 | 202,336 | ||||||||||||
EBITDA | $ | 133,934 | $ | 119,274 | $ | 398,130 | $ | 349,516 | ||||||||
Non-cash share-based compensation (1) | 13,980 | 1,817 | 69,174 | 3,917 | ||||||||||||
Acquisition, integration, and transaction-related costs (2) | 9,538 | 6,980 | 34,869 | 20,734 | ||||||||||||
Restructuring and divestiture-related and other costs (3) | 9,966 | 5,676 | 38,031 | 21,848 | ||||||||||||
Legal costs and settlements (4) | — | 5,989 | 21,886 | 127,695 | ||||||||||||
Significant projects (5) | — | 1,480 | 2,604 | 8,379 | ||||||||||||
Management fees (6) | — | 1,383 | 23,381 | 5,631 | ||||||||||||
Unreimbursed COVID-19 related costs | — | — | — | 88 | ||||||||||||
Total adjustments | $ | 33,484 | $ | 23,325 | $ | 189,945 | $ | 188,292 | ||||||||
Adjusted EBITDA | $ | 167,418 | $ | 142,599 | $ | 588,075 | $ | 537,808 |
(1) | Represents non-cash share-based compensation to certain members of our management and other full-time employees. The year ended December 31, 2024 includes |
(2) | Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions. The year ended December 31, 2024 includes acquisition and integration related costs of |
(3) | Represents costs associated with restructuring-related activities, including closure costs, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs included |
(4) | Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which were finalized in 2024. See Note 14 “Commitments and Contingencies” within the audited consolidated financial statements and related notes, included elsewhere in this Annual Report on Form 10-K, for additional information. |
(5) | Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation, pharmacy billing system implementation, and ransomware attack response costs, all of which were finalized in 2024. General ledger system migration and related business intelligence system implementation costs, which were capitalized as development costs and are subsequently amortized in accordance with ASC 350-40, Internal Use Software, were |
(6) | Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and |
BrightSpring Health Services, Inc. and Subsidiaries | ||||||||||||||||
Reconciliation of Adjusted EPS | ||||||||||||||||
For the three and twelve months ended December 31, 2024 and 2023 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
The following table reconciles diluted EPS to Adjusted EPS: | ||||||||||||||||
(shares in thousands) | For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Diluted EPS | $ | 0.08 | $ | (0.06 | ) | $ | (0.09 | ) | $ | (1.31 | ) | |||||
Non-cash share-based compensation (1) | 0.07 | 0.01 | 0.34 | 0.03 | ||||||||||||
Acquisition, integration, and transaction-related costs (1) | 0.04 | 0.06 | 0.17 | 0.16 | ||||||||||||
Restructuring and divestiture-related and other costs (1) | 0.05 | 0.05 | 0.19 | 0.17 | ||||||||||||
Legal costs and settlements (1) | — | 0.05 | 0.11 | 1.01 | ||||||||||||
Significant projects (1) | — | 0.01 | 0.01 | 0.07 | ||||||||||||
Management fee (1) | — | 0.01 | 0.12 | 0.04 | ||||||||||||
Unreimbursed COVID-19 related costs (1) | — | — | — | 0.00 | ||||||||||||
Income tax impact on adjustments (2)(3) | (0.02 | ) | (0.05 | ) | (0.29 | ) | (0.10 | ) | ||||||||
Adjusted EPS | $ | 0.22 | $ | 0.08 | $ | 0.56 | $ | 0.07 | ||||||||
Weighted average common shares outstanding used in calculating diluted U.S. GAAP net earnings (loss) per share | 213,160 | 117,857 | 192,997 | 117,868 | ||||||||||||
Weighted average common shares outstanding used in calculating diluted Non-GAAP earnings per share | 213,160 | 126,091 | 202,106 | 126,355 |
(1) | This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA. |
(2) | The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment. |
(3) | For the year ended December 31, 2024, the income tax impact on adjustments is inclusive of a discrete tax benefit related to the Silver matter that was finalized in connection with the signing of the settlement agreement during the second fiscal quarter of 2024. |

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