Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q3 2023 Earnings Conference Call November 9, 2023 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer Jeffrey Shaner - Chief Executive Officer David Afshar - Chief Financial Officer Matt Buckhalter - Interim Chief Financial Officer Debbie Stewart - Chief Accounting Officer Conference Call Participants Operator Good morning and welcome to Aveanna Healthcare Holdings Third Quarter 2023 Earnings Conference Call. Today’s call is being recorded, and ...

Revenue Performance - Consolidated revenue for the three-month period ended September 30, 2023, was $478.01 million, an increase from $443.01 million for the same period in 2022, representing a growth of 7.9%[105] - For the nine-month period ended September 30, 2023, consolidated revenue reached $1.416 billion, compared to $1.336 billion for the same period in 2022, reflecting a year-over-year increase of 6.0%[107] - The Private Duty Services (PDS) segment generated $384.75 million in revenue for the third quarter of 2023, accounting for 81% of consolidated revenue, compared to $355.62 million in the same quarter of 2022[105] - Home Health & Hospice (HHH) segment revenue was $52.99 million for the third quarter of 2023, maintaining an 11% share of consolidated revenue, up from $49.85 million in the prior year[105] - Medical Solutions (MS) segment revenue was $40.27 million for the third quarter of 2023, representing 8% of consolidated revenue, compared to $37.54 million in the same quarter of 2022[105] - PDS segment revenue increased by $29.1 million, or 8.2%, attributed to a 4.5% increase in volume and a 3.7% increase in revenue rate[141] - HHH revenue grew by $3.1 million, or 6.3%, while MS revenue increased by $2.7 million, or 7.3%[141] - Revenue for the nine-month period ended September 30, 2023, was $1,416.4 million, an increase of $79.9 million, or 6.0%, compared to $1,336.5 million for the same period in 2022[169] Financial Performance - Operating loss for the third quarter of 2023 was $76.4 million, a decrease of $81.1 million from an operating income of $4.8 million in the same quarter of 2022, primarily due to a $105.1 million goodwill impairment charge[139] - Net loss for the three-month period ended September 30, 2023, was $102.4 million, compared to a net income of $24.3 million for the same period in 2022, reflecting a decrease of $126.7 million[140] - Net loss for the nine-month period ended September 30, 2023, was $108.8 million, a decrease of $315.5 million, or 74.4%, compared to the prior year[159] - Operating loss decreased to $21.2 million for the nine-month period ended September 30, 2023, from a loss of $437.8 million in the prior year, representing a reduction of $416.6 million, or 95.2%[167] - Interest expense increased by $11.3 million, net of interest income, impacting net loss[140] - Interest expense, net of interest income, rose by $39.9 million, or 54.4%, to $113.3 million for the nine-month period ended September 30, 2023, compared to $73.4 million for the same period in 2022[182] - Other income decreased by $59.4 million to $27.1 million for the nine-month period ended September 30, 2023, down from $86.5 million for the same period in 2022[183] Cost and Margin Analysis - Gross margin increased to $147.3 million, representing 30.8% of revenue, up from 30.4% in the prior year, with a $12.7 million increase year-over-year[139] - Cost of revenue, excluding depreciation and amortization, was $330.7 million, an increase of $22.3 million, or 7.2%, compared to the prior year[143] - Gross margin was $447.0 million, or 31.6% of revenue, for the nine-month period ended September 30, 2023, compared to $424.5 million, or 31.8% of revenue, for the same period in 2022[173] - Field contribution rose by $11.2 million, or 24.9%, with a Field contribution margin of 11.8%, up from 10.2% in the previous year[139] - Field contribution increased by $15.8 million, or 10.1%, to $173.0 million, or 12.2% of revenue, for the nine-month period ended September 30, 2023, compared to $157.2 million, or 11.8% of revenue, for the same period in 2022[175] Goodwill and Impairment - Goodwill impairment was recorded at $105.1 million for the three-month period ended September 30, 2023, with no impairment in the comparable period last year[151] - Goodwill impairment was recorded at $105.1 million for the nine-month period ended September 30, 2023, significantly lower than the $470.2 million impairment in the comparable period in 2022[179] - The company recorded a goodwill impairment charge of $105.1 million during the three-month period ended September 30, 2023, due to challenges in the labor market affecting anticipated volume[222] Cash Flow and Liquidity - Net cash provided by operating activities for the nine-month period ended September 30, 2023 was $25.7 million, compared to a cash used of $8.2 million for the same period in 2022, reflecting an increase of $33.8 million[207][208] - Net cash used in investing activities decreased to $7.2 million for the nine-month period ended September 30, 2023, down from $22.1 million in the same period of 2022, primarily due to a $14.9 million reduction in cash used[211] - Net cash provided by financing activities decreased by $52.8 million, from $63.4 million for the nine-month period ended October 1, 2022 to $10.6 million for the same period in 2023[212] - As of September 30, 2023, the company had $48.3 million in cash, $20.0 million available under the Securitization Facility, and approximately $168.0 million borrowing capacity under the Revolving Credit Facility[205] Compliance and Internal Controls - The company is addressing a material weakness in internal control over financial reporting, specifically related to IT general controls (ITGCs) for user access and program change management[226] - Remediation efforts include implementing a new revenue system and enhancing ITGCs to ensure effective internal controls[227] - No changes in internal control over financial reporting occurred during the three-month period ended September 30, 2023, that materially impacted internal controls[228] - Management acknowledges inherent limitations in the effectiveness of controls, stating that no system can provide absolute assurance against errors or fraud[229] Future Outlook and Strategic Initiatives - The company aims to enhance its patient-centered care delivery platform to improve care quality and reduce high-cost care settings, positioning itself for sustainable growth through both organic means and acquisitions[103] - The proposed HHS rule aims to ensure that at least 80% of Medicaid payments for personal care services are allocated to direct care worker compensation, which could impact the company's operations positively or negatively depending on the final requirements[118] - Future capital requirements will depend on various unpredictable factors, including potential acquisitions and capital investments[205]

Aveanna Healthcare Holdings Announces Second Quarter 2023 Financial Results August 10, 2023 Revenue was $471.9 million, a 6.5% increase over the prior year Gross margin increased 7.0% to $155.3 million, compared to Q2 2022 Net income was $25.6 million, compared to net loss of $473.9 million in the comparable prior year period Adjusted EBITDA was $35.8 million, a sequential increase of 25.6% and a 3.2% decrease as compared to the prior year Full year 2023 revenue guidance raised to a range of $1,850 million ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q2 2023 Earnings Conference Call August 10, 2023 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer Jeff Shaner - Chief Executive Officer Matt Buckhalter - Interim-Chief Financial Officer & Principal Financial Officer Conference Call Participants Pito Chickering - Deutsche Bank Ben Hendrix - RBC Capital Markets Operator Greetings. Welcome to the Aveanna Healthcare Holdings, Inc. Second Quarter 2023 Earnings Call. At this time, all participants ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q1 2023 Earnings Conference Call May 11, 2023 10:00 AM ET Company Participants Shannon Drake – Chief Legal Officer Jeff Shaner – Chief Executive Officer Dave Afshar – Chief Financial Officer Conference Call Participants Brian Tanquilut – Jefferies Kieran Ryan – Deutsche Bank A.J. Rice – Credit Suisse Joanna Gajuk – Bank of America Scott Fidel – Stephens Inc. Operator Good morning, and welcome to the Aveanna Healthcare Holdings First Quarter 2023 Earnings Confer ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q4 2022 Earnings Conference Call March 16, 2023 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer and Corporate Secretary Jeff Shaner - CEO David Afshar - CFO Conference Call Participants Taji Phillips - Jefferies Joanna Gajuk - Bank of America Benjamin Shaver - Deutsche Bank Ben Hendrix - RBC Capital Markets Matt Borsch - Water Tower Research Operator Good morning, and welcome to Aveanna's Healthcare Holdings Fourth Quarter and Full Year 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40362 400 Interstate North Parkway SE Atlanta, GA 30339 (Address of principal executive offices, including zip code) Aveanna Healthca ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q3 2022 Earnings Conference Call November 10, 2022 10:00 AM ET Company Participants Shannon Drake – Chief Legal Officer and Corporate Secretary Tony Strange – President and Chief Executive Officer Jeff Shaner – Chief Operating Officer David Afshar – Chief Financial Officer Conference Call Participants Taji Phillips – Jefferies Joanna Gajuk – Bank of America Pito Chickering – Deutsche Bank Ben Hendrix – RBC Operator Good morning, and welcome to Aveanna Healthca ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q2 2022 Earnings Conference Call August 11, 2022 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer and Corporate Secretary Rod Windley - Executive Chairman Tony Strange - Chief Executive Officer and President David Afshar - Chief Financial Officer Jeff Shaner - Chief Operating Officer Conference Call Participants Joanna Gajuk - Bank of America Brian Tanquilut - Jefferies Matt Borsch - BMO Capital Markets A.J. Rice - Credit Suisse Sarah James ...

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET Company Participants Shannon Drake - Chief Legal Officer & Corporate Secretary Tony Strange - President & CEO Jeff Shaner - Chief Operating Officer Dave Afshar - CFO Conference Call Participants Matt Borsch - BMO Capital Markets Joanna Gajuk - Bank of America Pito Chickering - Deutsche Bank Brian Tanquilut - Jefferies Sarah James - Barclays A.J. Rice - Credit Suisse Ben Hendrix - RBC Capital Markets John ...