Brightspring Health Services, Inc.(BTSGU) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 2024 was $2,730 million, representing a 26.0$2,167 million in Q2 2023[2] - Net income for Q2 2024 was $19.4 million, compared to$2.8 million in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was $139 million, down 6.9$149 million in Q2 2023; however, excluding a $30 million Quality Incentive Payment in 2023, it increased by 16.7$119 million in Q2 2023[2][3] - The company reported a gross profit of $389 million for Q2 2024, up 4.6$372 million in Q2 2023; excluding the QIP, the growth rate was 13.8%[3] - Total revenues for Q2 2024 reached $2,730,210, a 26$2,166,724 in Q2 2023[33] - Product revenues were $2,114,491 in Q2 2024, up 32$1,596,839 in Q2 2023[33] - Gross profit for Q2 2024 was $389,033, compared to$372,070 in Q2 2023, reflecting a gross margin improvement[33] - Operating income decreased to $62,414 in Q2 2024 from$79,616 in Q2 2023, indicating challenges in managing operating expenses[33] - Net income for Q2 2024 was $19,441, a significant recovery from a net loss of$2,766 in Q2 2023[33] - Adjusted EBITDA for Q2 2024 was $139,142 thousand, compared to$149,427 thousand in Q2 2023[35] Revenue Guidance - Full year 2024 revenue guidance was increased to between $10,450 million and$10,900 million, indicating growth of 18.4% to 23.5% over 2023[7] - Adjusted EBITDA guidance for 2024 was raised to between $570 million and$580 million, reflecting a growth of 12.2% to 14.2% over 2023[7] - The Pharmacy Segment is expected to generate revenue between $8,000 million and$8,400 million, representing a growth of 22.7% to 28.8% over 2023[7] - The Provider Segment is projected to achieve revenue between $2,450 million and$2,500 million, indicating growth of 6.3% to 8.5% over 2023[7] Cash and Liquidity - Cash and cash equivalents increased to $25,027 as of June 30, 2024, from$13,071 at the end of 2023, indicating improved liquidity[28] - Cash and cash equivalents at the end of Q2 2024 were $25,027 thousand, compared to$11,256 thousand at the end of Q2 2023[34] - Cash used in operating activities for Q2 2024 was $(15,225) thousand, an improvement from$(25,204) thousand in Q2 2023[34] - The company experienced a net cash provided by financing activities of $39,907 thousand in Q2 2024, down from$70,581 thousand in Q2 2023[34] Debt Management - Long-term debt decreased to $2,563,536 as of June 30, 2024, down from$3,331,941 at the end of 2023, showing improved debt management[31] - Long-term debt borrowings in Q2 2024 were $2,566,000 thousand, with no new borrowings reported in Q2 2023[34] Earnings Per Share - The company reported a basic income per share of$0.10 for Q2 2024, compared to $0.03 in Q2 2023, indicating improved profitability per share[33] - For the three months ended June 30, 2024, the diluted EPS was$0.10, compared to $0.03 for the same period in 2023, representing a 233$0.22, compared to $0.04 for the same period in 2023, indicating a 450$0.22, reflecting a significant improvement compared to $(0.15) in 2023[38] Costs and Expenses - Total adjustments to reconcile net income to Adjusted EBITDA amounted to$26,657 thousand for Q2 2024[35] - The company incurred $5,022 thousand in acquisition-related costs during Q2 2024[35] - Depreciation and amortization expenses for Q2 2024 were$50,071 thousand, slightly down from $50,205 thousand in Q2 2023[35] - Ransomware attack response costs for the first half of 2023 amounted to$0.5 million for the three months and $2.5 million for the six months ended June 30, 2023[36] Shareholder Information - The weighted average common shares outstanding used in calculating diluted EPS for the three months ended June 30, 2024, was 208,987 thousand, up from 126,449 thousand in 2023[38] - The income tax impact on adjustments for the three months ended June 30, 2024, was$(0.12), compared to $(0.04) in 2023[39] - The total management fees resulting from the Monitoring Agreement were$22.7 million, which ceased following the completion of the IPO[36]