• Total Revenue: $2.9 billion, 29% growth year-over-year.

• Adjusted EBITDA: $151 million, 16% growth year-over-year.

• Pharmacy Solutions Revenue: $2.3 billion, 35% growth year-over-year.

• Infusion and Specialty Revenue: $1.7 billion, 42% growth year-over-year.

• Home and Community Pharmacy Revenue: $588 million, 19% growth year-over-year.

• Provider Services Revenue: $641 million, 10% growth year-over-year.

• Home Healthcare Revenue: $265 million, 13% growth year-over-year.

• Community and Rehab Care Revenue: $376 million, 8% growth year-over-year.

• Gross Profit: $408 million, 14% growth year-over-year.

• Adjusted EPS: $0.11 for the third quarter.

• Cash Flow from Operations: $27 million, excluding legal payment $51 million.

• Net Debt Outstanding: Approximately $2.7 billion.

• Leverage Ratio: 4.39x.

• 2024 Revenue Guidance: $11.0 billion to $11.3 billion.

• 2024 Adjusted EBITDA Guidance: $580 million to $585 million.

• Warning! GuruFocus has detected 9 Warning Signs with MTZ.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BrightSpring Health Services Inc (NASDAQ:BTSG) reported a strong financial performance with a 29% year-over-year revenue growth, reaching $2.9 billion in the third quarter.

• The Pharmacy Solutions segment achieved a 35% revenue growth, driven by strong script volume and strategic focus.

• The company raised its 2024 revenue and adjusted EBITDA guidance, reflecting confidence in continued growth.

• BrightSpring successfully integrated a previously announced acquisition, contributing to growth in the Provider Services segment.

• The company continues to expand in large and growing markets, focusing on high-quality services and operational efficiency.

Negative Points

• Gross profit growth was lower than revenue growth, at 14%, partly due to nonrecurring items such as start-up costs and a settlement with a payer.

• The company faces risks and uncertainties related to forward-looking statements, which could impact future performance.

• There are ongoing costs associated with onboarding new customers, which may affect short-term profitability.

• The company has a high leverage ratio of 4.39x, with net debt outstanding at approximately $2.7 billion.

• Potential impacts from the Inflation Reduction Act and biosimilar market dynamics could pose challenges in the future.

Q & A Highlights

Q: Congrats on a solid quarter. Can you elaborate on the expected margin improvements in the fourth quarter? A: Jon Rousseau, CEO: Q4 is typically our highest margin quarter due to various factors, including days and other items. We expect this trend to continue, aided by the launch of a generic drug in specialty, new hospice rates, and onboarding of new customers. These, along with volume growth and leveraging fixed costs, will contribute to margin expansion.