BrightSpring Health Services(US:BTSG)2024-08-02 12:50Revenue Growth - Revenue for Q2 2024 increased by $563.5 million, or 26.0%, reaching $2.7 billion compared to Q2 2023[65] - Total revenues for the three months ended June 30, 2024, were $2,730.2 million, an increase of $563.5 million or 26.0% compared to $2,166.7 million for the same period in 2023[88] - Total revenues for the six months ended June 30, 2024, were $5,306.8 million, an increase of $1,111.7 million or 26.5% compared to $4,195.1 million for the same period in 2023[98] - Revenues for the three months ended June 30, 2024, were $2,114.5 million, an increase of $517.7 million or 32.4% compared to $1,596.8 million in 2023[106] - Revenues for the six months ended June 30, 2024, were $4,091.5 million, an increase of $1,027.7 million or 33.5% compared to $3,063.8 million for the same period in 2023[112] Segment Performance - Pharmacy Solutions segment revenue grew by $517.7 million, or 32.4%, to $2.1 billion, while Provider Services segment revenue increased by $45.8 million, or 8.0%, to $615.7 million[65] - Pharmacy Solutions accounted for 77.4% of total revenue in Q2 2024, while Provider Services contributed 22.6%[67] - Infusion and Specialty Pharmacy segment revenue increased to 57.5% of total revenue for the six months ended June 30, 2024, compared to 51.3% for the same period in 2023[70] - Provider Services segment revenue increased to 22.9% of total revenue for the six months ended June 30, 2024, up from 27.0% for the same period in 2023[70] Profitability Metrics - Net income rose by $15.9 million to $19.9 million; excluding a $30 million quality incentive payment from Q2 2023, net income increased by $46.8 million[65] - Income per share increased from $0.03 to $0.10, reflecting a growth of $0.07[65] - Adjusted EBITDA decreased by $10.3 million, or 6.9%, to $139.1 million; excluding the $30 million quality incentive payment, it increased by $19.9 million, or 16.7%[65] - Adjusted EBITDA for the six months ended June 30, 2024, was $269.6 million, an increase of $4.9 million or 1.9% from $264.7 million in 2023[103] Expenses and Costs - Cost of goods for the three months ended June 30, 2024, was $1,931.8 million, reflecting an increase of $522.5 million or 37.1% from $1,409.2 million in the prior year[89] - Cost of services increased to $409.4 million for the three months ended June 30, 2024, up $24.0 million or 6.2% from $385.4 million in the same period of 2023[90] - Selling, general, and administrative expenses rose to $326.6 million for the three months ended June 30, 2024, an increase of $34.2 million or 11.7% compared to $292.5 million in 2023[91] - Selling, general, and administrative expenses for the six months ended June 30, 2024, were $687.9 million, an increase of $112.3 million or 19.5% from $575.6 million in 2023[100] Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2024, was $94.1 million, a significant decrease from net cash provided of $14.7 million in the same period of 2023[135] - Total liquidity at the end of June 30, 2024, was $437,211 thousand, compared to $431,460 thousand at the end of December 31, 2023[135] - Net cash used in investing activities increased by $25.9 million, from $62.8 million in the six months ended June 30, 2023 to $88.6 million in 2024[137] - Net cash provided by financing activities was $194.7 million for the six months ended June 30, 2024, primarily from net proceeds of $1,045.5 million from IPO offerings, offset by $805.0 million in long-term debt repayments[139] Debt and Financial Position - Total long-term debt as of June 30, 2024, was $2,685.9 million, a decrease from $3,414.4 million as of December 31, 2023[145] - The Company’s leverage ratio was 4.51x at June 30, 2024, down from 5.86x at December 31, 2023[145] - The Revolving Credit Facility had a total borrowing capacity of $475.0 million as of June 30, 2024, with $55.8 million of borrowings outstanding[140] - The Company was in compliance with all applicable financial covenants as of June 30, 2024[140] Challenges and Risks - The company faces challenges in passing on increased costs associated with providing services to Medicare and Medicaid patients due to fixed reimbursement rates established by federal and state laws[147] - Labor costs are expected to rise due to inflation and labor shortages in the healthcare industry, impacting the company's operations[148] - The company is unable to predict its ability to manage and mitigate future cost increases effectively due to inflationary impacts in its supply chain[148] - Rising pharmaceutical drug costs are being passed along to the company from suppliers, affecting the Pharmacy Solutions segment[148] - The demand for homecare services is anticipated to grow, but the company may struggle with labor shortages of qualified caregivers in its markets[148]