Aveanna Healthcare Holdings Announces First Quarter Financial Results and Revised 2025 Outlook

   -- First Quarter Revenue was $559.2 million, a 14.0% increase over the prior 
      year period 
 
          -- Gross margin increased 25.9% to $183.6 million compared to Q1 2024 
 
   -- First Quarter Net income was $5.2 million compared to net loss of $11.2 
      million for the comparable prior year period 
 
          -- Adjusted Net income was $21.4 million, an increase of $27.1 
             million compared to Q1 2024 
 
   -- Adjusted EBITDA for Q1 2025 was $67.4 million, a 93.1% increase as 
      compared to Q1 2024 
 
   -- Revised Full Year 2025 Revenue guidance greater than $2.15 billion, 
      updated from a range of $2.10 - $2.12 billion 
 
          -- Revised Full Year 2025 Adjusted EBITDA guidance greater than $207 
             million, updated from a range of $190 - $194 million 

ATLANTA, May 08, 2025 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations, today announced financial results for the three-month period March 29, 2025.

Jeff Shaner, Chief Executive Officer, commented, "Our first quarter results reflect the continued positive momentum in all three operating divisions as we enter the third year of our Strategic Transformation. The quarter was highlighted by revenue and adjusted EBITDA growth of 14.0% and 93.1%, respectively, when compared to the prior year period. We continue to build upon and advocate for our government and payor partnerships that support our core volume growth and exceptional clinical outcomes. Our national platform delivers cost effective and high-quality home care that provides significant value to our payor and government partners. Looking ahead, 2025 is shaping up to be a great year for Aveanna, and our refreshed guidance demonstrates the positive outlook we have on our business."

Three-Month Period Ended March 29, 2025 and March 30, 2024

Revenue was $559.2 million for the three-month period ended March 29, 2025, as compared to $490.7 million for the three-month period ended March 30, 2024, an increase of $68.6 million, or 14.0%. The overall increase in revenue was attributable to a $65.0 million increase in PDS segment revenue, a $2.1 million increase in HHH segment revenue, and a $1.5 million increase in MS segment revenue over the comparable period.

Gross margin was $183.6 million, or 32.8% of revenue, for the three-month period ended March 29, 2025, as compared to $145.9 million, or 29.7% of revenue, for the three-month period ended March 30, 2024, an increase of $37.7 million, or 25.9%.

Net income was $5.2 million for the three-month period ended March 29, 2025, as compared to net loss of $11.2 million for the three-month period ended March 30, 2024. Net income per diluted share was $0.03 for the three-month period ended March 29, 2025, as compared to net loss per diluted share of $(0.06) for the three-month period ended March 30, 2024. Adjusted net income per diluted share was $0.10 for the three-month period ended March 29, 2025, as compared to adjusted net loss per diluted share of $(0.03) for the three-month period ended March 30, 2024. See "Non-GAAP Financial Measures - Adjusted net income (loss) and Adjusted net income (loss) per diluted share" below.

Adjusted EBITDA was $67.4 million, or 12.0% of revenue, for the three-month period ended March 29, 2025, as compared to $34.9 million, or 7.1% of revenue, for the three-month period ended March 30, 2024, an increase of $32.5 million or 93.1%. See "Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA" below.

Liquidity, Cash Flow, and Debt

   -- As of March 29, 2025, we had cash of $71.5 million and incremental 
      borrowing capacity of $56.2 million under our securitization facility. 
      Our revolver was undrawn, with approximately $138.0 million of borrowing 
      capacity and approximately $32.3 million of outstanding letters of 
      credit. 
 
   -- 2025 net cash used in operating activities was $8.6 million. Free cash 
      flow was $(12.9) million for 2025. See "Non-GAAP Financial Measures - 
      Free cash flow" below. 
 
   -- As of March 29, 2025 we had bank debt of $1,472.0 million. Our interest 
      rate exposure under our credit facilities is currently hedged with the 
      following instruments: 
 
          -- $520.0 million notional amount of interest rate swaps that convert 
             variable rate debt to a fixed rate, and 
 
          -- $880.0 million notional amount of interest rate caps that cap our 
             exposure to SOFR at 2.96%. 

Matt Buckhalter, Chief Financial Officer, commented "We delivered exceptional first-quarter results, with revenue and Adjusted EBITDA growing 14.0% and 93.1%, respectively, compared to the prior year. While the quarter included some non-recurring items, our performance reflects the strength and potential of Aveanna. These results were driven by strategic cost reductions, the continued success of our preferred payor strategy, and improved reimbursement rates through our Government Affairs efforts. They also highlight the outstanding efforts of our clinicians, associates, and leaders, as well as the strong partnerships we've built with government and payor stakeholders. We are pleased to raise our full-year 2025 guidance to revenue of greater than $2.15 billion and Adjusted EBITDA of greater than $207 million."

Full Year 2025 Guidance

The following is our guidance reflecting our updated expectations for revenue and Adjusted EBITDA for the full fiscal year 2025 (year ending January 3, 2026):

   -- Revenue of greater than $2.15 billion, updated from a range of $2.10 - 
      $2.12 billion 

Consistent with prior practice, we are not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with our interest rate swaps and caps.

   -- Adjusted EBITDA of greater than $207 million, updated from a range of 
      $190 - $194 million 

Non-GAAP Financial Measures

In addition to our results of operations prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we also evaluate our financial performance using EBITDA, Adjusted EBITDA, Field contribution, Field contribution margin, Adjusted net income or loss, Adjusted net income or loss per diluted share, and Free cash flow. Given our determination of adjustments in arriving at our computations, these non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes or alternatives to net income or loss, revenue, operating income or loss, cash flows from operating activities, total indebtedness or any other financial measures calculated in accordance with GAAP. The reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in the financial tables below.

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense or benefit; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; and other system transition costs, professional fees and other costs. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.

We believe our computations of EBITDA and Adjusted EBITDA are helpful in highlighting trends in our core operating performance. In determining which adjustments are made to arrive at EBITDA and Adjusted EBITDA, we consider both (1) certain non-recurring, infrequent, non-cash or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which we do not believe are indicative of our core operating performance. We use EBITDA and Adjusted EBITDA to assess operating performance and make business decisions.

We have incurred substantial acquisition-related costs and integration costs. The underlying acquisition activities take place over a defined timeframe, have distinct project timelines and are incremental to activities and costs that arise in the ordinary course of our business. Therefore, we believe it is important to exclude these costs from our Adjusted EBITDA because it provides us a normalized view of our core, ongoing operations after integrating our acquired companies, which we believe is an important measure in assessing our performance.

Field contribution and Field contribution margin

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