On August 2, 2024, BrightSpring Health Services Inc (BTSG, Financial) released its 8-K filing for the second quarter of 2024, showcasing significant revenue growth and an increase in full-year guidance. BrightSpring Health Services Inc is a home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. Its platform delivers clinical services and pharmacy solutions across Medicare, Medicaid, and commercially insured populations. Its segments include Pharmacy Solutions and Provider Services, with the majority of its revenue generated from the Pharmacy Solutions segment.
Quarterly Financial Highlights
BrightSpring Health Services Inc reported net revenue of $2,730 million for Q2 2024, a 26.0% increase compared to $2,167 million in Q2 2023. This figure surpassed the analyst estimate of $2,613.34 million. The company's net income also saw a substantial rise, reaching $19.4 million, up from $2.8 million in the same quarter last year.
Adjusted EBITDA for the quarter was $139 million, a 6.9% decrease from $149 million in Q2 2023. However, when excluding a $30 million Quality Incentive Payment (QIP) received in 2023, Adjusted EBITDA increased by 16.7% to $139 million from $119 million in Q2 2023. The QIP program has since concluded.
Segment Performance
| Segment | Q2 2024 Revenue ($ millions) | Q2 2023 Revenue ($ millions) | Change (%) |
|---|---|---|---|
| Pharmacy Solutions | 2,114 | 1,597 | 32% |
| Provider Services | 616 | 570 | 8% |
| Total Revenue | 2,730 | 2,167 | 26% |
The Pharmacy Solutions segment led the revenue growth with a 32% increase, while Provider Services saw an 8% rise. The Pharmacy Solutions segment's EBITDA, however, decreased by 14% to $94 million, whereas the Provider Services segment's EBITDA increased by 16% to $86 million.
Balance Sheet and Cash Flow
As of June 30, 2024, BrightSpring Health Services Inc reported total assets of $5,605 million, up from $5,533 million at the end of 2023. The company's cash and cash equivalents stood at $25 million, a significant increase from $13 million at the end of 2023. Total liabilities decreased to $3,999 million from $4,920 million, reflecting a reduction in long-term debt.
Net cash used in operating activities was $15 million for Q2 2024, compared to $25 million in Q2 2023. Investing activities used $58 million, primarily for property and equipment purchases and acquisitions. Financing activities provided $40 million, driven by long-term debt borrowings and proceeds from the issuance of common stock.
Full-Year 2024 Guidance
BrightSpring Health Services Inc has raised its full-year 2024 guidance, now expecting net revenue between $10,450 million and $10,900 million, representing an 18.4% to 23.5% growth over 2023. Adjusted EBITDA is projected to be between $570 million and $580 million, reflecting a 12.2% to 14.2% increase over the previous year.
"We are very pleased to report another quarter of strong revenue and earnings growth across both segments," said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company. "Our Pharmacy Solutions business delivered impressive growth, while our Provider Services business saw margin expansion and revenue growth afforded by our operational excellence, scale, and efficiencies."
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from BrightSpring Health Services Inc for further details.
