EX-99.1 2 btsg-ex99_1.htm EX-99.1 EX-99.1

 

BrightSpring健康服務公司報告2024年第三季度財務業績並提高了2024年的指引

 

肯塔基州路易斯維爾，2024年11月1日 —— 面向複雜人群提供家庭和社區基礎健康服務的領先提供商BrightSpring健康服務公司（「BrightSpring」或「公司」）（納斯達克股票代碼：BTSG）今天宣佈截至2024年9月30日第三季度的財務業績，並提高了2024年的營業收入和調整後的EBITDA指引。1 指導方向。

 

財務亮點

•
營業收入爲290700萬美元，比2023年第三季度的225700萬美元增長了28.8%。
•
淨虧損爲900萬美元，而2023年第三季度爲淨虧損13010萬美元。
•
調整後的EBITDA1 爲15100萬美元，比2023年第三季度的13100萬美元增長15.7%
•
提升2024年營業收入和調整後的EBITDA指導:
o
營業收入：11000萬美元 - 1130000萬美元
o
調整後的EBITDA1：580萬美元至58500萬美元

「我們對第三季度藥房解決方案和供應商服務的營收和利潤增長的廣泛強勁表現感到滿意，」公司董事長、總裁兼首席執行官Jon Rousseau表示。「在BrightSpring，我們致力於推動運營卓越和效率，同時在整個組織上增加規模，以爲患者提供更低成本和高質量的護理。我們有信心公司仍然處於良好的執行位置，爲患者提供高水平的護理並繼續發展我們的業務，直至2024年底和2025年。」

 

2024年第三季度財務結果

 

淨營業收入爲290700萬美元，比2023年第三季度的225700萬美元增長28.8%。淨營業收入增長受到業務範圍內的強勁推動，特別是專業和輸液藥房的強勁增長。

 

毛利潤爲40800萬美元，比2023年第三季度的35800萬美元增長了13.9%。

 

淨損失爲900萬美元，與2023年第三季度的淨損失13010萬美元相比。

 

調整後的EBITDA1 營業收入爲15100萬美元，比2023年第三季度的13100萬美元增長了15.7%。

 

1調整後的EBITDA是一項非GAAP財務指標。請參閱本新聞稿末尾的「非GAAP財務信息」，以了解調整後的EBITDA與按照GAAP編制的最直接可比財務指標淨損失之間的調節。

 

 

 

 

 

1

 

 

關鍵財務數據:

 

 

 

 

 

 

 

 

 

 

 

 

 

三個月之內結束

 

 

 

9月30日（未經審計）

 

 

 

 

2024

2023

%

 

（單位：百萬美元）

 

 

 

 

 

 

藥房解決方案營業收入

 

$

 2,266

 

$

 1,673

 

 35%

 

提供者服務營業收入

 

 641

 

 583

 

 10%

 

總收入

 

$

 2,907

 

$

 2,257

 

 29%

 

 

 

 

三個月之內結束

 

 

截至9月30日（未經審計）

 

 

 

2024

2023

%

（單位：百萬美元）

 

 

 

 

 

藥房解決方案部門EBITDA

 

$

 99

 

$

 86

 

 15%

提供者服務部門EBITDA

 

 93

 

 81

 

 14%

總業務板塊調整後的息稅折舊及攤銷前利潤

 

$

 192

 

$

 168

 

 14%

企業成本

 

 

(41)

 

 

(37)

 

-

全公司調整後的營業收入

 

$

151

 

$

131

 

15.7%

 

 

2024年全年財務指南

 

對於2024財年，BrightSpring正在提高指引，不包括任何未來關閉收購的影響。

 

•
淨營業收入爲1100000萬至1130000萬美元，同比增長24.6%至28.0%。
o
藥房部門營業收入爲850000萬至875000萬美元，同比增長30.3%至34.2%。
o
服務提供商部門營業收入爲250000萬至255000萬美元，同比增長8.5%至10.7%。
•
調整後的EBITDA2 58000萬至58500萬美元，同比增長14.2%至15.2%，不包括2023年某項質量獎勵支付的影響。

 

 

公司第三季度收入陳述副本可在公司投資者關係網站上獲得。 https://ir.brightspringhealth.com/

 

2 由於準確預測尚未發生、超出我們控制範圍或無法合理預測的各種調整項目的發生和財務影響會帶來困難，因此無法提供調整後的調整EBITDA至GAAP淨損失的上述指引的對賬。出於同樣的原因，公司無法評估無法取得信息的重要性，這可能會對其未來的GAAP財務結果產生重大影響。

 

2

 

 

網絡直播和電話會議詳情

 

BrightSpring將於2024年11月1日上午8:30舉行電話會議。有興趣收聽電話會議的投資者需要 在線註冊.

 

在BrightSpring網站的「活動與演示」欄目上可以收看活動的現場直播和存檔視頻 https://ir.brightspringhealth.com/該公司已經在第三季度業績中發佈了補充財務信息，這些信息將在電話會議中提到。投資者可以在公司的投資者關係頁面的「活動與演示」欄目下找到這些補充信息。

 

關於BrightSpring Health Services

 

BrightSpring醫療保健服務爲需要專業和/或慢性護理的複雜人群提供互補和綜合的家庭和社區藥房和健康解決方案。通過公司的服務線路，包括藥房、家庭醫療保健和初級護理，以及康復和行爲健康，我們在所有50個州爲超過40萬名客戶、客戶和患者每天提供全面的護理和臨床解決方案。

 

前瞻性聲明

 

本新聞稿包含根據1995年《私人證券訴訟改革法案》的「前瞻性聲明」。這些前瞻性聲明代表我們對業務和財務表現等方面的當前看法。前瞻性聲明包括一切非歷史事實的聲明。這些前瞻性聲明可能涉及的事項包括，但不限於，行業、業務策略、市場地位、未來業務、利潤率、盈利能力、資本支出、流動性和資本資源以及其他財務和經營信息。在某些情況下，我們使用諸如「預計」、「假設」、「相信」、「繼續」、「可能」、「估計」、「期望」、「打算」、「可能」、「計劃」、「潛在」、「預測」、「項目」、「未來」、「將」、「尋找」、「可預見」、「目標」、「指引」、這些詞的負面形式，或類似的術語和短語來識別這些前瞻性聲明。

這些前瞻性聲明基於管理層目前的預期，不是歷史事實，也不是未來表現的保證。前瞻性聲明涉及未來，因此受各種難以預測或量化的風險、不確定性、假設或環境變化的影響。我們的預期、信念和預測是真誠的，我們相信有合理的依據。然而，我們無法保證管理層的期望、信念和預測會實現。由於全球、區域或當地經濟、業務、競爭、市場、監管和其他因素的變化，其中許多因素超出我們的控制，實際結果可能與這些預期有實質性差異。我們認爲這些因素包括但不限於以下內容：

•
我們在競爭激烈的行業中的運營方式；
•
我們無法與現有患者轉診來源保持關係或建立新的轉診來源；
•
Medicare和Medicaid費率或支付方式的變化可能影響我們服務的Medicare和Medicaid支付;

3

 

 

•
cost containment initiatives of third-party payors, including post-payment audits;
•
the implementation of alternative payment models and the transition of Medicaid and Medicare beneficiaries to managed care organizations may limit our market share and could adversely affect our revenues;
•
changes in the case mix of patients, as well as payor mix and payment methodologies, and decisions and operations of third-party organizations;
•
our reliance on federal and state spending, budget decisions, and continuous governmental operations which may fluctuate under different political conditions;
•
changes in drug utilization and/or pricing, PBM contracts, and Medicare Part D/Medicaid reimbursement, which may negatively impact our profitability;
•
changes in our relationships with pharmaceutical suppliers, including changes in drug availability or pricing;
•
reliance on the continual recruitment and retention of nurses, pharmacists, therapists, caregivers, direct support professionals, and other qualified personnel, including senior management;
•
compliance with or changes to federal, state, and local laws and regulations that govern our employment practices, including minimum wage, living wage, and paid time-off requirements;
•
fluctuation of our results of operations on a quarterly basis;
•
harm caused by labor relation matters;
•
limitations in our ability to control reimbursement rates received for our services if we are unable to maintain or reduce our costs to provide such services;
•
delays in collection or non-collection of our accounts receivable, particularly during the business integration process;
•
failure to manage our growth effectively, which may inhibit our ability to execute our business plan, maintain high levels of service and satisfaction or adequately address competitive challenges;
•
our ability to identify, successfully complete and manage acquisitions, joint ventures, and other strategic initiatives;
•
our ability to continue to provide consistently high quality of care;
•
maintenance of our corporate reputation or the emergence of adverse publicity, including negative information on social media or changes in public perception of our services;
•
contract continuance, expansion and renewal with our existing customers, including renewals at lower fee levels, customers declining to purchase additional services from us, or reduction in the services received from us pursuant to those contracts;
•
effective investment in, implementation of improvements to and proper maintenance of the uninterrupted operation and data integrity of our information technology and other business systems;
•
security breaches, loss of data, and other disruptions, which could compromise sensitive business or patient information; cause a loss of confidential patient data, employee data or personal information; or prevent access to critical information and thereby expose us to liability, litigation, and federal and state governmental inquiries and damage our reputation and brand;
•
risks related to credit card payments and other payment methods;
•
potential substantial malpractice or other similar claims;
•
various risks related to governmental inquiries, regulatory actions, and whistleblower and other lawsuits, which may not be entirely covered by insurance;
•
our current insurance program, which may expose us to unexpected costs, particularly if we incur losses not covered by our insurance or if claims or losses differ from our estimates;

4

 

 

•
factors outside of our control, including those listed, which have required and could in the future require us to record an asset impairment of goodwill;
•
a pandemic, epidemic, or outbreak of an infectious disease, including the ongoing effects of COVID-19;
•
inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations;
•
our inability to adequately protect our intellectual property rights

The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. These factors should not be construed as exhaustive, and should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward- looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make.

For additional information on these and other factors that could cause BrightSpring’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

 

Non-GAAP Financial Measures

 

This press release contains “non-GAAP financial measures,” including “EBITDA” and “Adjusted EBITDA,” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP.

EBITDA and Adjusted EBITDA have been presented in this release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also believes that these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses EBITDA and Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish and award discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures.

Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. EBITDA and Adjusted EBITDA are not GAAP measures of our financial performance and should not be considered as an alternative to net loss as a measure of financial performance or any other performance measures

5

 

 

derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as tax payments, debt service requirements, total capital expenditures, and certain other cash costs that may recur in the future.

Management defines EBITDA as net loss before income tax expense (benefit), interest expense, and depreciation and amortization. Management also defines Adjusted EBITDA as EBITDA, further adjusted to exclude non-cash share-based compensation, acquisition, integration and transaction-related costs, restructuring and divestiture-related and other costs, goodwill impairment, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, management fees, and unreimbursed COVID-19 related costs.

The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see the end of this press release for reconciliations of non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP.

 

 

BrightSpring Contact:

 

Investor Relations:

David Deuchler, CFA

Gilmartin Group LLC

ir@brightspringhealth.com

 

Media Contact:
Leigh White
leigh.white@brightspringhealth.com
502.630.7412

 

 

 

 

 

 

 

6

 

 

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

September 30, 2024 and December 31, 2023

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

35,973

 

 

$

13,071

 

Accounts receivable, net of allowance for credit losses

 

 

1,025,711

 

 

 

881,627

 

Inventories

 

 

478,319

 

 

 

402,776

 

Prepaid expenses and other current assets

 

 

169,582

 

 

 

159,167

 

Total current assets

 

 

1,709,585

 

 

 

1,456,641

 

Property and equipment, net of accumulated depreciation of $426,484 and $368,089 at
    September 30, 2024 and December 31, 2023, respectively

 

 

248,548

 

 

 

245,908

 

Goodwill

 

 

2,672,791

 

 

 

2,608,412

 

Intangible assets, net of accumulated amortization

 

 

842,479

 

 

 

881,476

 

Operating lease right-of-use assets, net

 

 

259,138

 

 

 

267,446

 

Deferred income taxes, net

 

 

6,678

 

 

 

—

 

Other assets

 

 

46,748

 

 

 

72,838

 

Total assets

 

$

5,785,967

 

 

$

5,532,721

 

Liabilities, Redeemable Noncontrolling Interests, and Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$

783,838

 

 

$

641,607

 

Accrued expenses

 

 

349,101

 

 

 

492,363

 

Current portion of obligations under operating leases

 

 

69,763

 

 

 

71,053

 

Current portion of obligations under financing leases

 

 

12,367

 

 

 

11,141

 

Current portion of long-term debt

 

 

48,853

 

 

 

32,273

 

Total current liabilities

 

 

1,263,922

 

 

 

1,248,437

 

Obligations under operating leases, net of current portion

 

 

195,921

 

 

 

201,655

 

Obligations under financing leases, net of current portion

 

 

24,988

 

 

 

22,528

 

Long-term debt, net of current portion

 

 

2,608,537

 

 

 

3,331,941

 

Deferred income taxes, net

 

 

—

 

 

 

23,668

 

Long-term liabilities

 

 

73,502

 

 

 

91,943

 

Total liabilities

 

 

4,166,870

 

 

 

4,920,172

 

Redeemable noncontrolling interests

 

 

4,125

 

 

 

27,139

 

Shareholders' equity:

 

 

 

 

 

 

    Common stock, $0.01 par value, 1,500,000,000 and 137,398,625 shares authorized,
       174,078,977 and 117,857,055 shares issued and outstanding at September 30, 2024 and
       December 31, 2023, respectively

 

 

1,741

 

 

 

1,179

 

Preferred stock, $0.01 par value, 250,000,000 authorized, no shares issued and
   outstanding at September 30, 2024; no shares authorized, issued or outstanding at
   December 31, 2023

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

1,848,115

 

 

 

771,336

 

Accumulated deficit

 

 

(234,380

)

 

 

(200,319

)

Accumulated other comprehensive (loss) income

 

 

(705

)

 

 

12,544

 

Total shareholders' equity

 

 

1,614,771

 

 

 

584,740

 

Noncontrolling interest

 

 

201

 

 

 

670

 

Total equity

 

 

1,614,972

 

 

 

585,410

 

Total liabilities, redeemable noncontrolling interests, and equity

 

$

5,785,967

 

 

$

5,532,721

 

 

7

 

 

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2024 and 2023

(In thousands, except per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

2,265,697

 

 

$

1,673,152

 

 

$

6,357,223

 

 

$

4,736,993

 

Services

 

 

641,126

 

 

 

583,377

 

 

 

1,856,448

 

 

 

1,714,638

 

Total revenues

 

 

2,906,823

 

 

 

2,256,529

 

 

 

8,213,671

 

 

 

6,451,631

 

Cost of goods

 

 

2,077,121

 

 

 

1,509,845

 

 

 

5,815,981

 

 

 

4,226,075

 

Cost of services

 

 

421,590

 

 

 

388,388

 

 

 

1,231,154

 

 

 

1,160,477

 

Gross profit

 

 

408,112

 

 

 

358,296

 

 

 

1,166,536

 

 

 

1,065,079

 

Selling, general, and administrative expenses

 

 

351,272

 

 

 

410,549

 

 

 

1,039,215

 

 

 

986,161

 

Operating income (loss)

 

 

56,840

 

 

 

(52,253

)

 

 

127,321

 

 

 

78,918

 

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

12,726

 

 

 

—

 

Interest expense, net

 

 

56,061

 

 

 

83,678

 

 

 

173,520

 

 

 

241,539

 

Income (loss) before income taxes

 

 

779

 

 

 

(135,931

)

 

 

(58,925

)

 

 

(162,621

)

Income tax expense (benefit)

 

 

9,760

 

 

 

(5,807

)

 

 

(23,000

)

 

 

(12,987

)

Net loss

 

 

(8,981

)

 

 

(130,124

)

 

 

(35,925

)

 

 

(149,634

)

Net (loss) income attributable to noncontrolling interests

 

 

(751

)

 

 

548

 

 

 

(1,864

)

 

 

(1,568

)

Net loss attributable to BrightSpring Health Services,
       Inc. and subsidiaries

 

$

(8,230

)

 

$

(130,672

)

 

$

(34,061

)

 

$

(148,066

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share - basic

 

$

(0.04

)

 

$

(1.11

)

 

$

(0.18

)

 

$

(1.26

)

Loss per share - diluted

 

$

(0.04

)

 

$

(1.11

)

 

$

(0.18

)

 

$

(1.26

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

198,491

 

 

 

117,864

 

 

 

190,541

 

 

 

117,871

 

Diluted

 

 

198,491

 

 

 

117,864

 

 

 

190,541

 

 

 

117,871

 

 

8

 

 

BrightSpring Health Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the three and nine months ended September 30, 2024 and 2023

(In thousands)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(8,981

)

 

$

(130,124

)

 

$

(35,925

)

 

$

(149,634

)

Adjustments to reconcile net loss to cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

50,608

 

 

 

50,774

 

 

 

149,601

 

 

 

151,324

 

Impairment of long-lived assets

 

 

2,801

 

 

 

2,181

 

 

 

4,781

 

 

 

8,295

 

Provision for credit losses

 

 

8,778

 

 

 

6,753

 

 

 

21,896

 

 

 

18,927

 

Amortization of deferred debt issuance costs

 

 

2,540

 

 

 

5,182

 

 

 

9,477

 

 

 

15,691

 

Share-based compensation

 

 

15,210

 

 

 

825

 

 

 

55,194

 

 

 

2,100

 

Deferred income taxes, net

 

 

21,479

 

 

 

(10,810

)

 

 

(27,781

)

 

 

(36,565

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

12,726

 

 

 

—

 

(Gain) loss on disposition of fixed assets

 

 

(79

)

 

 

438

 

 

 

(55

)

 

 

957

 

Other

 

 

479

 

 

 

(582

)

 

 

(959

)

 

 

(210

)

Change in operating assets and liabilities, net of acquisitions and dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(51,474

)

 

 

(11,520

)

 

 

(163,996

)

 

 

(116,922

)

Prepaid expenses and other current assets

 

 

(24,207

)

 

 

(22,272

)

 

 

(2,470

)

 

 

(162

)

Inventories

 

 

(103,985

)

 

 

16,536

 

 

 

(74,265

)

 

 

53,244

 

Trade accounts payable

 

 

114,234

 

 

 

31,353

 

 

 

155,563

 

 

 

(58,313

)

Accrued expenses

 

 

3,860

 

 

 

89,671

 

 

 

(150,032

)

 

 

159,353

 

Other assets and liabilities

 

 

(4,017

)

 

 

5,286

 

 

 

(20,593

)

 

 

298

 

Net cash provided by (used in) operating activities

 

$

27,246

 

 

$

33,691

 

 

$

(66,838

)

 

$

48,383

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

$

(20,043

)

 

$

(17,899

)

 

$

(65,602

)

 

$

(56,693

)

Acquisitions of businesses, net of cash acquired

 

 

(17,225

)

 

 

(37,044

)

 

 

(59,755

)

 

 

(62,508

)

Other

 

 

360

 

 

 

296

 

 

 

900

 

 

 

1,790

 

Net cash used in investing activities

 

$

(36,908

)

 

$

(54,647

)

 

$

(124,457

)

 

$

(117,411

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt borrowings

 

$

—

 

 

$

—

 

 

$

2,566,000

 

 

$

—

 

Long-term debt repayments

 

 

(13,663

)

 

 

(7,536

)

 

 

(3,384,633

)

 

 

(22,857

)

Proceeds from issuance of common stock on initial public

   offering, net

 

 

—

 

 

 

—

 

 

 

656,485

 

 

 

—

 

Proceeds from issuance of tangible equity units, net

 

 

—

 

 

 

—

 

 

 

389,000

 

 

 

—

 

Borrowings of the Revolving Credit Facility, net

 

 

41,300

 

 

 

31,650

 

 

 

46,400

 

 

 

98,250

 

Payment of debt issuance costs

 

 

—

 

 

 

—

 

 

 

(43,188

)

 

 

—

 

Repurchase of shares of common stock

 

 

—

 

 

 

(325

)

 

 

(650

)

 

 

(325

)

Shares issued under share-based compensation plan, including
   tax effects

 

 

127

 

 

 

453

 

 

 

531

 

 

 

598

 

Payment of acquisition earn-outs

 

 

(1,500

)

 

 

—

 

 

 

(4,156

)

 

 

—

 

Purchase of redeemable noncontrolling interest

 

 

(2,016

)

 

 

—

 

 

 

(2,316

)

 

 

—

 

Payment of financing lease obligations

 

 

(3,640

)

 

 

(2,901

)

 

 

(9,276

)

 

 

(8,625

)

Net cash provided by financing activities

 

$

20,608

 

 

$

21,341

 

 

$

214,197

 

 

$

67,041

 

Net increase (decrease) in cash and cash equivalents

 

 

10,946

 

 

 

385

 

 

 

22,902

 

 

 

(1,987

)

Cash and cash equivalents at beginning of year

 

 

25,027

 

 

 

11,256

 

 

 

13,071

 

 

 

13,628

 

Cash and cash equivalents at end of year

 

$

35,973

 

 

$

11,641

 

 

$

35,973

 

 

$

11,641

 

 

9

 

 

BrightSpring Health Services, Inc. and Subsidiaries

Reconciliation of EBITDA and Adjusted EBITDA

For the three and nine months ended September 30, 2024 and 2023

(Unaudited)

 

The following table reconciles net loss to EBITDA and Adjusted EBITDA:

 

($ in thousands)

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss

 

$

(8,981

)

 

$

(130,124

)

 

$

(35,925

)

 

$

(149,634

)

Income tax expense (benefit)

 

 

9,760

 

 

 

(5,807

)

 

 

(23,000

)

 

 

(12,987

)

Interest expense, net

 

 

56,061

 

 

 

83,678

 

 

 

173,520

 

 

 

241,539

 

Depreciation and amortization

 

 

50,608

 

 

 

50,774

 

 

 

149,601

 

 

 

151,324

 

EBITDA

 

$

107,448

 

 

$

(1,479

)

 

$

264,196

 

 

$

230,242

 

Non-cash share-based compensation (1)

 

 

15,210

 

 

 

825

 

 

 

55,194

 

 

 

2,100

 

Acquisition, integration, and transaction-related costs (2)

 

 

11,767

 

 

 

6,319

 

 

 

25,331

 

 

 

13,754

 

Restructuring and divestiture-related and other costs (3)

 

 

6,672

 

 

 

4,527

 

 

 

28,065

 

 

 

16,172

 

Legal costs and settlements (4)

 

 

8,920

 

 

 

117,042

 

 

 

21,886

 

 

 

121,706

 

Significant projects (5)

 

 

1,000

 

 

 

1,935

 

 

 

2,604

 

 

 

6,899

 

Management fee (6)

 

 

—

 

 

 

1,383

 

 

 

23,381

 

 

 

4,248

 

Unreimbursed COVID-19 related costs

 

 

—

 

 

 

(48

)

 

 

—

 

 

 

88

 

Total adjustments

 

$

43,569

 

 

$

131,983

 

 

$

156,461

 

 

$

164,967

 

Adjusted EBITDA

 

$

151,017

 

 

$

130,504

 

 

$

420,657

 

 

$

395,209

 

 

(1)
Represents non-cash share-based compensation to certain members of our management and full-time employees. The three and nine months ended September 30, 2024 includes $14.4 million and $35.8 million of costs, respectively, related to new equity awards granted upon the completion of our IPO under the 2024 Equity Incentive Plan. The nine months ended September 30, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, a portion of which vested upon completion of the IPO.
(2)
Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions. The three months ended September 30, 2024 includes acquisition and integration related costs of $7.5 million, earn-out adjustments from previous acquisitions of $0.9 million, and other non-routine transaction costs of $2.9 million, as compared to acquisition and integration related costs of $3.7 million and other non-routine transaction costs of $0.9 million for the three months ended September 30, 2023. These costs also included $0.5 million and $6.0 million of costs related to the IPO Offerings which were not capitalizable for the three and nine months ended September 30, 2024, respectively, compared to $1.7 million and $1.9 million for the three and nine months ended September 30, 2023, respectively.
(3)
Represents costs associated with restructuring-related activities, including closure, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs included $12.7 million of unamortized debt issuance costs associated with the extinguishment of our Second Lien Facility in the nine months ended September 30, 2024. These costs also included $1.8 million and $3.7 million of intangible asset and other non-cash investment impairment for the three and nine months ended September 30, 2024, respectively, as compared to $1.4 million and $7.4 million for the three and nine months ended September 30, 2023, respectively.
(4)
Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which are expected to be completed in 2024. See Note 10 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for additional information.
(5)
Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation and pharmacy billing system implementation, which both completed in the second fiscal quarter of 2024; and ransomware attack response costs. Ransomware attack response costs were $1.0 million for the three and nine months ended September 30, 2024, compared to $0.6 million and $3.1 million for the three and nine months ended September 30, 2023, respectively.
(6)
Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and $22.7 million of termination fees resulting from the Monitoring Agreement being terminated upon completion of the IPO Offerings. All management fees have ceased following the completion of the IPO.

10

 

 

BrightSpring Health Services, Inc. and Subsidiaries

Reconciliation of Adjusted EPS

For the three and nine months ended September 30, 2024 and 2023

(Unaudited)

The following table reconciles diluted EPS to Adjusted EPS:

 

(shares in thousands)

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Diluted EPS

 

$

(0.04

)

 

$

(1.11

)

 

$

(0.18

)

 

$

(1.26

)

Non-cash share-based compensation (1)

 

 

0.07

 

 

 

0.01

 

 

 

0.28

 

 

 

0.02

 

Acquisition, integration, and transaction-related costs (1)

 

 

0.06

 

 

 

0.05

 

 

 

0.13

 

 

 

0.11

 

Restructuring and divestiture-related and other costs (1)

 

 

0.03

 

 

 

0.04

 

 

 

0.14

 

 

 

0.13

 

Legal costs and settlements (1)

 

 

0.04

 

 

 

0.93

 

 

 

0.11

 

 

 

0.96

 

Significant projects (1)

 

 

—

 

 

 

0.02

 

 

 

0.01

 

 

 

0.05

 

Management fee (1)

 

 

—

 

 

 

0.01

 

 

 

0.12

 

 

 

0.03

 

Unreimbursed COVID-19 related costs (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax impact on adjustments (2)(3)

 

 

(0.05

)

 

 

(0.03

)

 

 

(0.27

)

 

 

(0.10

)

Adjusted EPS

 

$

0.11

 

 

$

(0.08

)

 

$

0.34

 

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding used in calculating
     diluted U.S. GAAP net loss per share

 

 

198,491

 

 

 

117,864

 

 

 

190,541

 

 

 

117,871

 

Weighted average common shares outstanding used in calculating
     diluted Non-GAAP earnings (loss) per share

 

 

208,694

 

 

 

126,346

 

 

 

199,930

 

 

 

126,428

 

 

(1)
This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA.
(2)
The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment.
(3)
For the nine months ended September 30, 2024, the income tax impact on adjustments is inclusive of a discrete tax benefit related to the Silver matter that was finalized in connection with the signing of the settlement agreement during the second fiscal quarter of 2024.

11