In This Article:
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Revenue: $559 million, a 14% increase over the prior year period.
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Adjusted EBITDA: $67.4 million, a 93.1% increase over the prior year period.
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Private Duty Services Revenue: $460 million, a 16.5% increase.
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Home Health and Hospice Revenue: $56.7 million, a 3.9% increase.
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Medical Solutions Revenue: $42.5 million, a 3.6% increase.
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Consolidated Gross Margin: $183.6 million, or 32.8%.
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Private Duty Services Gross Margin: $134.7 million, or 29.3%.
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Home Health and Hospice Gross Margin: 54.2%, up 1.1% over the prior year period.
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Medical Solutions Gross Margin: $18.1 million, or 42.7%.
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Liquidity: Approximately $266 million, including $72 million cash on hand.
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Debt: $1.47 billion of variable rate debt, with $520 million hedged with fixed rate swaps.
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Free Cash Flow: Negative $12.9 million for the quarter.
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2025 Revenue Outlook: Greater than $2.15 billion.
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2025 Adjusted EBITDA Outlook: Greater than $207 million.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) reported a 14% increase in revenue for Q1 2025, reaching approximately $559 million.
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The company achieved a 93.1% increase in adjusted EBITDA, primarily due to improved payer rates and cost-saving initiatives.
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Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) successfully executed five rate enhancements for its Private Duty Services (PDS) segment in Q1.
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The company added two new preferred payer agreements, increasing the total to 24, which now account for 54% of PDS Managed Care Organization volumes.
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Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) is on track to close the acquisition of Thrive Skilled Pediatric, which is expected to enhance its preferred payer and government affairs strategies.
Negative Points
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The labor environment remains a primary challenge for Aveanna Healthcare Holdings Inc (NASDAQ:AVAH), impacting its growth trajectory.
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Volume growth is expected to be muted this year, despite improvements in clinical outcomes and customer satisfaction.
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The company faces ongoing wage pressures and labor market challenges, affecting its cost of labor and gross margin metrics.
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Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) anticipates a relatively muted year for government affairs rate increases, with expectations to achieve ten state rate improvements.
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The company's free cash flow was negative $12.9 million in Q1, reflecting the seasonal low point for operating and free cash flows.
Q & A Highlights
Q: Can you discuss the progress in the ten states targeted for rate increases and the preferred payer agreements? A: We are optimistic about reaching ten states for rate increases this year. We have already achieved five GA rate increases and two preferred payer wins in Q1. We expect to achieve our goal of ten GA rate increases, although it will be a relatively muted year. Our preferred payer strategy is robust, with significant growth in PDS MCO volumes from 50% to 54% due to two new agreements.