BrightSpring Health Services, Inc. Reports Third Quarter 2024 Financial Results and Increases Full Year 2024 Guidance
BrightSpring Health Services reported strong Q3 2024 financial results with net revenue of $2,907 million, up 28.8% year-over-year. The company reduced its net loss to $9.0 million from $130.1 million in Q3 2023, while Adjusted EBITDA grew 15.7% to $151 million. Pharmacy Solutions revenue increased 35% to $2,266 million, and Provider Services revenue grew 10% to $641 million. Based on strong performance, BrightSpring increased its full-year 2024 guidance, projecting revenue of $11,000-$11,300 million (24.6-28.0% growth) and Adjusted EBITDA of $580-$585 million (14.2-15.2% growth).
BrightSpring Health Services ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato netto di 2.907 milioni di dollari, in aumento del 28,8% rispetto all'anno precedente. L'azienda ha ridotto la sua perdita netta a 9,0 milioni di dollari, rispetto ai 130,1 milioni di dollari del terzo trimestre del 2023, mentre l'EBITDA rettificato è cresciuto del 15,7% a 151 milioni di dollari. I ricavi delle soluzioni farmaceutiche sono aumentati del 35% a 2.266 milioni di dollari, e i ricavi dei servizi ai fornitori sono cresciuti del 10% a 641 milioni di dollari. Sulla base delle solide performance, BrightSpring ha aumentato le previsioni per l'intero anno del 2024, prevedendo un fatturato di 11.000-11.300 milioni di dollari (crescita del 24,6-28,0%) e un EBITDA rettificato di 580-585 milioni di dollari (crescita del 14,2-15,2%).
BrightSpring Health Services reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos netos de 2,907 millones de dólares, un aumento del 28.8% interanual. La compañía redujo su pérdida neta a 9.0 millones de dólares, desde 130.1 millones de dólares en el tercer trimestre de 2023, mientras que el EBITDA ajustado creció un 15.7% a 151 millones de dólares. Los ingresos de Soluciones Farmacéuticas aumentaron un 35% a 2,266 millones de dólares, y los ingresos de Servicios a Proveedores crecieron un 10% a 641 millones de dólares. Basado en un rendimiento sólido, BrightSpring incrementó su guía para el año completo de 2024, proyectando ingresos de 11,000-11,300 millones de dólares (crecimiento del 24.6-28.0%) y EBITDA ajustado de 580-585 millones de dólares (crecimiento del 14.2-15.2%).
BrightSpring Health Services는 2024년 3분기 강력한 재무 결과를 보고했으며, 순수익은 29억 7천만 달러로 작년 대비 28.8% 증가했습니다. 회사는 2023년 3분기의 1억 3천만 달러에서 900만 달러로 순손실을 줄였으며, 조정된 EBITDA는 15.7% 증가하여 1억 5천 1백만 달러에 달했습니다. 약국 솔루션의 수익은 35% 증가하여 22억 6천 6백만 달러에 이르렀고, 제공자 서비스의 수익은 10% 증가하여 6억 4천 1백만 달러에 이르렀습니다. 강력한 실적을 바탕으로 BrightSpring은 2024년 전체 연도 가이드를 상향 조정하여 110억-113억 달러(24.6-28.0% 성장)와 조정된 EBITDA 5억 8천만-5억 8천 5백만 달러(14.2-15.2% 성장)를 예측했습니다.
BrightSpring Health Services a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires net de 2,907 millions de dollars, en hausse de 28,8 % par rapport à l'année précédente. L'entreprise a réduit sa perte nette à 9,0 millions de dollars, contre 130,1 millions de dollars au troisième trimestre 2023, tandis que l'EBITDA ajusté a augmenté de 15,7 % pour atteindre 151 millions de dollars. Les revenus des solutions pharmaceutiques ont augmenté de 35 % pour atteindre 2,266 millions de dollars, et les revenus des services fournis ont crû de 10 % pour atteindre 641 millions de dollars. Sur la base de ces performances solides, BrightSpring a revu à la hausse ses prévisions pour l'ensemble de l'année 2024, projetant un chiffre d'affaires de 11 000 à 11 300 millions de dollars (croissance de 24,6 à 28,0 %) et un EBITDA ajusté de 580 à 585 millions de dollars (croissance de 14,2 à 15,2 %).
BrightSpring Health Services hat für das dritte Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit Nettoeinnahmen von 2.907 Millionen Dollar, was einem Anstieg von 28,8% im Vergleich zum Vorjahr entspricht. Das Unternehmen hat seinen Nettoverlust auf 9,0 Millionen Dollar von 130,1 Millionen Dollar im dritten Quartal 2023 gesenkt, während das bereinigte EBITDA um 15,7% auf 151 Millionen Dollar gewachsen ist. Die Einnahmen aus Arzneimittellösungen stiegen um 35% auf 2.266 Millionen Dollar, und die Einnahmen aus Dienstleistungsanbietern wuchsen um 10% auf 641 Millionen Dollar. Aufgrund der starken Performance erhöhte BrightSpring seine Prognose für das Gesamtjahr 2024 und erwartet Einnahmen zwischen 11.000 und 11.300 Millionen Dollar (Wachstum von 24,6-28,0%) und ein bereinigtes EBITDA von 580-585 Millionen Dollar (Wachstum von 14,2-15,2%).
- Net revenue increased 28.8% YoY to $2,907 million
- Net loss significantly reduced from $130.1M to $9.0M YoY
- Adjusted EBITDA grew 15.7% to $151 million
- Pharmacy Solutions revenue up 35% to $2,266 million
- Provider Services revenue increased 10% to $641 million
- Raised full-year 2024 guidance for both revenue and EBITDA
- Company still operating at a net loss of $9.0 million
- Corporate costs increased from $37M to $41M
Insights
BrightSpring's Q3 results demonstrate robust growth with
The increased FY2024 guidance, projecting revenue of
The strong performance in Specialty and Infusion Pharmacy segments indicates BrightSpring's successful positioning in high-growth healthcare sectors. The
The reduced net loss and improved EBITDA margins suggest successful integration of operations and cost management initiatives. The company's strategy of focusing on lower-cost, high-quality care aligns well with healthcare industry trends toward value-based care and home-based services.
LOUISVILLE, Ky., Nov. 01, 2024 (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 third quarter ended September 30, 2024, and increases 2024 revenue and Adjusted EBITDA1 guidance.
Financial Highlights
- Net Revenue of
$2,907 million , up28.8% compared to$2,257 million in the third quarter of 2023. - Net loss of
$9.0 million , compared to net loss of$130.1 million in the third quarter of 2023. - Adjusted EBITDA1 of
$151 million , up15.7% versus$131 million in the third quarter of 2023 - Increased 2024 Revenue and Adjusted EBITDA Guidance:
- Revenue:
$11,000 -$11,300 million - Adjusted EBITDA1:
$580 -$585 million
- Revenue:
“We are pleased with the broad-based strength in revenue and earnings growth across Pharmacy Solutions and Providers Services in the third quarter,” said Jon Rousseau, Chairman, President and Chief Executive Officer of the Company. “At BrightSpring we are focused on driving operational excellence and efficiencies while increasing scale across our organization to deliver lower-cost and high-quality care to patients. We are confident that the Company remains well positioned to execute on providing a high level of quality care to patients and continuing to grow our businesses for the remainder of 2024 and in 2025.”
Third Quarter 2024 Financial Results
Net revenue of
Gross profit of
Net loss of
Adjusted EBITDA1 of
1Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” and the end of this press release for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure prepared in accordance with GAAP.
Key Financials:
| Three Months Ended | |||||||||||
| September 30, (Unaudited) | |||||||||||
| 2024 | 2023 | % | |||||||||
| ($ in millions) | |||||||||||
| Pharmacy Solutions Revenue | $ | 2,266 | $ | 1,673 | |||||||
| Provider Services Revenue | 641 | 583 | |||||||||
| Total Revenue | $ | 2,907 | $ | 2,257 | | ||||||
| Three Months Ended | |||||||||||
| September 30, (Unaudited) | |||||||||||
| 2024 | 2023 | % | |||||||||
| ($ in millions) | |||||||||||
| Pharmacy Solutions segment EBITDA | $ | 99 | $ | 86 | |||||||
| Provider Services segment EBITDA | 93 | 81 | |||||||||
| Total Segment Adjusted EBITDA | $ | 192 | $ | 168 | |||||||
| Corporate Costs | (41) | (37) | - | ||||||||
| Total Company Adjusted EBITDA | $ | 151 | $ | 131 | |||||||
Full Year 2024 Financial Guidance
For the full year 2024, BrightSpring is increasing guidance, which excludes the effects of any future closed acquisitions.
- Net revenue of
$11,000 million to$11,300 million , or24.6% to28.0% growth over 2023- Pharmacy Segment Revenue of
$8,500 million to$8,750 million , or30.3% to34.2% growth over full year 2023 - Provider Segment Revenue of
$2,500 million to$2,550 million , or8.5% to10.7% growth over full year 2023
- Pharmacy Segment Revenue of
- Adjusted EBITDA2 of
$580 million to$585 million , or14.2% to15.2% growth over full year 2023, excluding the impact from a certain Quality Incentive Payment in 2023
A copy of the Company’s third quarter earnings presentation is available on the company’s investor relations website, https://ir.brightspringhealth.com/
2 A 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, November 1, 2024, 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 third quarter 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 and integrated home- and community-based pharmacy and 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 care and clinical solutions in all 50 states to over 400,000 customers, clients and patients daily.
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;
- 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, including the ongoing effects of COVID-19;
- inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations;
- 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 Condensed Consolidated Balance Sheets September 30, 2024 and December 31, 2023 (In thousands, except share and per share data) (Unaudited) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 35,973 | $ | 13,071 | |||
| Accounts receivable, net of allowance for credit losses | 1,025,711 | 881,627 | |||||
| Inventories | 478,319 | 402,776 | |||||
| Prepaid expenses and other current assets | 169,582 | 159,167 | |||||
| Total current assets | 1,709,585 | 1,456,641 | |||||
| Property and equipment, net of accumulated depreciation of | 248,548 | 245,908 | |||||
| Goodwill | 2,672,791 | 2,608,412 | |||||
| Intangible assets, net of accumulated amortization | 842,479 | 881,476 | |||||
| Operating lease right-of-use assets, net | 259,138 | 267,446 | |||||
| Deferred income taxes, net | 6,678 | — | |||||
| Other assets | 46,748 | 72,838 | |||||
| Total assets | $ | 5,785,967 | $ | 5,532,721 | |||
| Liabilities, Redeemable Noncontrolling Interests, and Equity | |||||||
| Current liabilities: | |||||||
| Trade accounts payable | $ | 783,838 | $ | 641,607 | |||
| Accrued expenses | 349,101 | 492,363 | |||||
| Current portion of obligations under operating leases | 69,763 | 71,053 | |||||
| Current portion of obligations under financing leases | 12,367 | 11,141 | |||||
| Current portion of long-term debt | 48,853 | 32,273 | |||||
| Total current liabilities | 1,263,922 | 1,248,437 | |||||
| Obligations under operating leases, net of current portion | 195,921 | 201,655 | |||||
| Obligations under financing leases, net of current portion | 24,988 | 22,528 | |||||
| Long-term debt, net of current portion | 2,608,537 | 3,331,941 | |||||
| Deferred income taxes, net | — | 23,668 | |||||
| Long-term liabilities | 73,502 | 91,943 | |||||
| Total liabilities | 4,166,870 | 4,920,172 | |||||
| Redeemable noncontrolling interests | 4,125 | 27,139 | |||||
| Shareholders' equity: | |||||||
| Common stock, | 1,741 | 1,179 | |||||
| Preferred stock, | — | — | |||||
| Additional paid-in capital | 1,848,115 | 771,336 | |||||
| Accumulated deficit | (234,380 | ) | (200,319 | ) | |||
| Accumulated other comprehensive (loss) income | (705 | ) | 12,544 | ||||
| Total shareholders' equity | 1,614,771 | 584,740 | |||||
| Noncontrolling interest | 201 | 670 | |||||
| Total equity | 1,614,972 | 585,410 | |||||
| Total liabilities, redeemable noncontrolling interests, and equity | $ | 5,785,967 | $ | 5,532,721 | |||
| BrightSpring Health Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the three and nine months ended September 30, 2024 and 2023 (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Products | $ | 2,265,697 | $ | 1,673,152 | $ | 6,357,223 | $ | 4,736,993 | |||||||
| Services | 641,126 | 583,377 | 1,856,448 | 1,714,638 | |||||||||||
| Total revenues | 2,906,823 | 2,256,529 | 8,213,671 | 6,451,631 | |||||||||||
| Cost of goods | 2,077,121 | 1,509,845 | 5,815,981 | 4,226,075 | |||||||||||
| Cost of services | 421,590 | 388,388 | 1,231,154 | 1,160,477 | |||||||||||
| Gross profit | 408,112 | 358,296 | 1,166,536 | 1,065,079 | |||||||||||
| Selling, general, and administrative expenses | 351,272 | 410,549 | 1,039,215 | 986,161 | |||||||||||
| Operating income (loss) | 56,840 | (52,253 | ) | 127,321 | 78,918 | ||||||||||
| Loss on extinguishment of debt | — | — | 12,726 | — | |||||||||||
| Interest expense, net | 56,061 | 83,678 | 173,520 | 241,539 | |||||||||||
| Income (loss) before income taxes | 779 | (135,931 | ) | (58,925 | ) | (162,621 | ) | ||||||||
| Income tax expense (benefit) | 9,760 | (5,807 | ) | (23,000 | ) | (12,987 | ) | ||||||||
| Net loss | (8,981 | ) | (130,124 | ) | (35,925 | ) | (149,634 | ) | |||||||
| Net (loss) income attributable to noncontrolling interests | (751 | ) | 548 | (1,864 | ) | (1,568 | ) | ||||||||
| Net loss attributable to BrightSpring Health Services, Inc. and subsidiaries | $ | (8,230 | ) | $ | (130,672 | ) | $ | (34,061 | ) | $ | (148,066 | ) | |||
| Net loss per common share: | |||||||||||||||
| Loss per share - basic | $ | (0.04 | ) | $ | (1.11 | ) | $ | (0.18 | ) | $ | (1.26 | ) | |||
| Loss per share - diluted | $ | (0.04 | ) | $ | (1.11 | ) | $ | (0.18 | ) | $ | (1.26 | ) | |||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 198,491 | 117,864 | 190,541 | 117,871 | |||||||||||
| Diluted | 198,491 | 117,864 | 190,541 | 117,871 | |||||||||||
| BrightSpring Health Services, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the three and nine months ended September 30, 2024 and 2023 (In thousands) (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net loss | $ | (8,981 | ) | $ | (130,124 | ) | $ | (35,925 | ) | $ | (149,634 | ) | |||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||||||||||||
| Depreciation and amortization | 50,608 | 50,774 | 149,601 | 151,324 | |||||||||||
| Impairment of long-lived assets | 2,801 | 2,181 | 4,781 | 8,295 | |||||||||||
| Provision for credit losses | 8,778 | 6,753 | 21,896 | 18,927 | |||||||||||
| Amortization of deferred debt issuance costs | 2,540 | 5,182 | 9,477 | 15,691 | |||||||||||
| Share-based compensation | 15,210 | 825 | 55,194 | 2,100 | |||||||||||
| Deferred income taxes, net | 21,479 | (10,810 | ) | (27,781 | ) | (36,565 | ) | ||||||||
| Loss on extinguishment of debt | — | — | 12,726 | — | |||||||||||
| (Gain) loss on disposition of fixed assets | (79 | ) | 438 | (55 | ) | 957 | |||||||||
| Other | 479 | (582 | ) | (959 | ) | (210 | ) | ||||||||
| Change in operating assets and liabilities, net of acquisitions and dispositions: | |||||||||||||||
| Accounts receivable | (51,474 | ) | (11,520 | ) | (163,996 | ) | (116,922 | ) | |||||||
| Prepaid expenses and other current assets | (24,207 | ) | (22,272 | ) | (2,470 | ) | (162 | ) | |||||||
| Inventories | (103,985 | ) | 16,536 | (74,265 | ) | 53,244 | |||||||||
| Trade accounts payable | 114,234 | 31,353 | 155,563 | (58,313 | ) | ||||||||||
| Accrued expenses | 3,860 | 89,671 | (150,032 | ) | 159,353 | ||||||||||
| Other assets and liabilities | (4,017 | ) | 5,286 | (20,593 | ) | 298 | |||||||||
| Net cash provided by (used in) operating activities | $ | 27,246 | $ | 33,691 | $ | (66,838 | ) | $ | 48,383 | ||||||
| Investing activities: | |||||||||||||||
| Purchases of property and equipment | $ | (20,043 | ) | $ | (17,899 | ) | $ | (65,602 | ) | $ | (56,693 | ) | |||
| Acquisitions of businesses, net of cash acquired | (17,225 | ) | (37,044 | ) | (59,755 | ) | (62,508 | ) | |||||||
| Other | 360 | 296 | 900 | 1,790 | |||||||||||
| Net cash used in investing activities | $ | (36,908 | ) | $ | (54,647 | ) | $ | (124,457 | ) | $ | (117,411 | ) | |||
| Financing activities: | |||||||||||||||
| Long-term debt borrowings | $ | — | $ | — | $ | 2,566,000 | $ | — | |||||||
| Long-term debt repayments | (13,663 | ) | (7,536 | ) | (3,384,633 | ) | (22,857 | ) | |||||||
| Proceeds from issuance of common stock on initial public offering, net | — | — | 656,485 | — | |||||||||||
| Proceeds from issuance of tangible equity units, net | — | — | 389,000 | — | |||||||||||
| Borrowings of the Revolving Credit Facility, net | 41,300 | 31,650 | 46,400 | 98,250 | |||||||||||
| Payment of debt issuance costs | — | — | (43,188 | ) | — | ||||||||||
| Repurchase of shares of common stock | — | (325 | ) | (650 | ) | (325 | ) | ||||||||
| Shares issued under share-based compensation plan, including tax effects | 127 | 453 | 531 | 598 | |||||||||||
| Payment of acquisition earn-outs | (1,500 | ) | — | (4,156 | ) | — | |||||||||
| Purchase of redeemable noncontrolling interest | (2,016 | ) | — | (2,316 | ) | — | |||||||||
| Payment of financing lease obligations | (3,640 | ) | (2,901 | ) | (9,276 | ) | (8,625 | ) | |||||||
| Net cash provided by financing activities | $ | 20,608 | $ | 21,341 | $ | 214,197 | $ | 67,041 | |||||||
| Net increase (decrease) in cash and cash equivalents | 10,946 | 385 | 22,902 | (1,987 | ) | ||||||||||
| Cash and cash equivalents at beginning of year | 25,027 | 11,256 | 13,071 | 13,628 | |||||||||||
| Cash and cash equivalents at end of year | $ | 35,973 | $ | 11,641 | $ | 35,973 | $ | 11,641 | |||||||
BrightSpring Health Services, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA
For the three and nine months ended September 30, 2024 and 2023
(Unaudited)
The following table reconciles net loss to EBITDA and Adjusted EBITDA:
| ($ in thousands) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (8,981 | ) | $ | (130,124 | ) | $ | (35,925 | ) | $ | (149,634 | ) | |||
| Income tax expense (benefit) | 9,760 | (5,807 | ) | (23,000 | ) | (12,987 | ) | ||||||||
| Interest expense, net | 56,061 | 83,678 | 173,520 | 241,539 | |||||||||||
| Depreciation and amortization | 50,608 | 50,774 | 149,601 | 151,324 | |||||||||||
| EBITDA | $ | 107,448 | $ | (1,479 | ) | $ | 264,196 | $ | 230,242 | ||||||
| Non-cash share-based compensation (1) | 15,210 | 825 | 55,194 | 2,100 | |||||||||||
| Acquisition, integration, and transaction-related costs (2) | 11,767 | 6,319 | 25,331 | 13,754 | |||||||||||
| Restructuring and divestiture-related and other costs (3) | 6,672 | 4,527 | 28,065 | 16,172 | |||||||||||
| Legal costs and settlements (4) | 8,920 | 117,042 | 21,886 | 121,706 | |||||||||||
| Significant projects (5) | 1,000 | 1,935 | 2,604 | 6,899 | |||||||||||
| Management fee (6) | — | 1,383 | 23,381 | 4,248 | |||||||||||
| Unreimbursed COVID-19 related costs | — | (48 | ) | — | 88 | ||||||||||
| Total adjustments | $ | 43,569 | $ | 131,983 | $ | 156,461 | $ | 164,967 | |||||||
| Adjusted EBITDA | $ | 151,017 | $ | 130,504 | $ | 420,657 | $ | 395,209 | |||||||
| (1) | Represents non-cash share-based compensation to certain members of our management and full-time employees. The three and nine months ended September 30, 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 three months ended September 30, 2024 includes acquisition and integration related costs of |
| (3) | Represents costs associated with restructuring-related activities, including closure, 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 are expected to be completed in 2024. See Note 10 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for additional information. |
| (5) | Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation and pharmacy billing system implementation, which both completed in the second fiscal quarter of 2024; and ransomware attack response costs. Ransomware attack response costs 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 nine months ended September 30, 2024 and 2023
(Unaudited)
The following table reconciles diluted EPS to Adjusted EPS:
| (shares in thousands) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diluted EPS | $ | (0.04 | ) | $ | (1.11 | ) | $ | (0.18 | ) | $ | (1.26 | ) | |||
| Non-cash share-based compensation (1) | 0.07 | 0.01 | 0.28 | 0.02 | |||||||||||
| Acquisition, integration, and transaction-related costs (1) | 0.06 | 0.05 | 0.13 | 0.11 | |||||||||||
| Restructuring and divestiture-related and other costs (1) | 0.03 | 0.04 | 0.14 | 0.13 | |||||||||||
| Legal costs and settlements (1) | 0.04 | 0.93 | 0.11 | 0.96 | |||||||||||
| Significant projects (1) | — | 0.02 | 0.01 | 0.05 | |||||||||||
| Management fee (1) | — | 0.01 | 0.12 | 0.03 | |||||||||||
| Unreimbursed COVID-19 related costs (1) | — | — | — | — | |||||||||||
| Income tax impact on adjustments (2)(3) | (0.05 | ) | (0.03 | ) | (0.27 | ) | (0.10 | ) | |||||||
| Adjusted EPS | $ | 0.11 | $ | (0.08 | ) | $ | 0.34 | $ | (0.06 | ) | |||||
| Weighted average common shares outstanding used in calculating diluted U.S. GAAP net loss per share | 198,491 | 117,864 | 190,541 | 117,871 | |||||||||||
| Weighted average common shares outstanding used in calculating diluted Non-GAAP earnings (loss) per share | 208,694 | 126,346 | 199,930 | 126,428 | |||||||||||
| (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 nine months ended September 30, 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. |
FAQ
What was BrightSpring's (BTSG) revenue growth in Q3 2024?
How much did BrightSpring (BTSG) reduce its net loss in Q3 2024?
What is BrightSpring's (BTSG) revenue guidance for full-year 2024?
How did BrightSpring's (BTSG) Pharmacy Solutions segment perform in Q3 2024?
