BTSG - Earnings call transcript Q3 2024 | BrightSpring Health Services, Inc. Common Stock

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Operator

Good day, and thank you for standing by. Welcome to BrightSpring Health Services, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jennifer Phipps, Chief Accounting Officer. ahead. go Please

Jennifer Phipps

Chief you name Thank BrightSpring. in conference Jon today's am Chief Jim Good Officer. Financial Jennifer for Phipps, My Rousseau, by call is on of Officer; Chief call. and joined Mattingly, morning. today's participating Executive Accounting I Officer

today, financial on available the the website. results Earlier quarter XXXX. XX, is September BrightSpring and of copy presentation released A the for ended press release company's

expectations, today's discussion and our will include those to statements future forward-looking our reflect and materially and forward-looking market statements industry that our certain current are of that financial assumptions results statements forward-looking differ from uncertainties not to note These are including Such and risks to could related that guarantees actual expectations. Please performance performance. subject future conditions. cause

review and our can to report our in information filed with Specific the well factors law. statements press time the that may be update in found quarterly SEC, any as forward-looking presentation the to release we periodic will uncertainties required you SEC. encourage our as do be SEC. with and also factors filings duty We be and Such XX-K time in from in not as on XX-Q Form to any updated today's risk undertake with except by previously filed the

and During the condition. financial performance talking call, company's we will the use when non-GAAP financial about measures

is non-GAAP and financial again Relations unreasonable our press available the their replay recorded earnings additional find to available effort presentation, and to on of these This measures Relations can and on website. which today's information be our directly measures release in You without Investor webcast website. Investor financial on comparable being non-GAAP most available for will extent our measures are GAAP reconciliations

Rousseau, And Executive Officer. I turn Jon to Chief will the with over call that,

Jon Rousseau

and our and the home everyone. every appreciation deliver and would joining very hard express and serve gratitude for teammates, to to XXXX Thank care I and my you BrightSpring's attentive, and to moment individuals like to Call. patients morning, a who settings for employees work Quarter day. we Earnings Third community take compassionate and Good quality across

to quarter delivered results. financial another have We're pleased of strong

Third $XXX quarter growth XX% adjusted representing billion, And growth representing XX% $X.X year-over-year. was million, total EBITDA revenue year-over-year. was

this on million the total to guidance revenue of performance million in to Jim are we Based to million for outlook midpoint $XXX shortly. $XXX raising will adjusted the from quarter, in and $XXX $XXX detail our more our XXXX financial discuss million. EBITDA

of can to we high-quality we Consistent our to operate markets best expand needs where with focus growing patients sales and the quarters, and with as to favorably continue we operators with and serve large Total growth exceptional services well volume prior continue Pharmacy significant strategies, continue essential scripts connecting drove segment, and trend need. dispensed our rigor with year-to-date and the in marketing Within as services. patients execute. as they therapies operational leading

previously Provider, in outpaced Our XXXX announced script growth hours, Specialty acquisition. integrated we and launches and with business forecast saw and volumes XXXX good in driven In generic scripts. census by successfully higher we LDD

leveraging best We while continue the and driven practices [indiscernible] sequentially to deliver by margins improving across organization. scale

M&A and de remain BrightSpring. focus expansion novo at a

high-quality growth delivered. we reside are healthy strong to and the patients to BrightSpring, if complex of at care community, support the where financial a would a results which We deliver all, engine profile in pipeline the augment with we they All that, have the converted, continue company. organic proud acquisition the in of

had script strong XX% while XX% and Pharmacy pharmacy $X.X year Solutions revenue another performance, XX% community year-over-year, Specialty growing Infusion volume. primarily revenue compared the grew very closer of third billion to with business revenue represented driven growth last third strong home quarter quarter Working of year-over-year. by quarter, The

driven scripts total Infusion scripts dispensed Specialty and support Across and of the million Strong XX% dispensed. integration Pharmacy and launches, in compared third by strategic and last satisfaction, growth in be saw quarter driven generic quality growth sales represented in XX% to Promoter Specialty year customer growth the segment, in with providers Net and continue we focus LDD drug with leading by force operational utilization. Scores, partner discipline, XX.X

The LDD launch to XX XXX portfolio expanded And months. next therapies LDDs during to XX quarter. the continue new XX to the to expect we over

of We those to was a number the patients a are diseases. limited who are specialty committed of for partner drug selected are as OncoXXX improving therapies lives cancer, orphan that other honored of distribution pharmacy and and battling rare each

used diagnosed and converted forward cell late in the look quarter. in we to And opportunity helping of newly chronic for the adults navigate the with third launched this generic also CML generic patients in Ph-positive market. now [indiscernible] treatment phase the

investing with Within XXXX, quarter. Throughout business. business have see from we drive growth practices been process operational people, the the changes in volume in drive therapies future, to year. third Infusion, results we XXXX. and to best acture chronic started profitability in continued to in have in overinvest to in expecting leadership investments Infusion the our We improving and efficiencies, the earlier And in these operational continued and capabilities

strong medical settings, In script programs nursing, across home the living, [indiscernible] driven patients of facilities, including wins rehab settings variety need and where this as locations other community and community mid-teens assisted execution and skilled pharmacy was pharmacy of home our support. well as by and at-home new a hospice growth quarter, and customer service

infrastructure growth segment Services. service to XX XX% and by and Segment points driven across lines. EBITDA basis margin grew Provider Turning all execution year-over-year primarily by year-over-year, expanded leveraging revenue adjusted broad-based volume

customer which compared we Community the to quality the In and the the patients. testament to a service saw team rehab continues X%, revenue and growth hours year. business, grew deliver with in to is last care billable rehab mid-teens

and partnerships our is and settings, in through health, hospice to year integrated meaningful complementary with future home home care the today. to population novos rehab evolve outpatient growth for growth the the provide supports to and provide ALS program. rehab the Medicare primary and we solutions. of are and and today to workers' to we add ALS foundation better B prescriber another care continue rehab in community commercial A and we Part neuro we are seniors motion we to grow program and homes about and complementary over to more avenue motion size as long-term additional also and rehab next comp laying for We This rehab next that new and way anticipate excited in years, services are our X patient and de Medicare known patients to

clients coordinated care team conscientious services robust Community and living within by a performance has a remained quality to consistent driven by delivered infrastructure.

achieve recent most in another difficult of Indiana, received the we which of evidence As this, another of very providers accreditation to is for quality. stamp third-party and X-year State

scores, In by in over quarter quality exceptional to primary clinical average revenue rates XX,XXX, XX% our XX% XX-day the home national that grew healthcare, XX% in third grew the services. are lower supported care And readmission census year-over-year. daily including emerging average than

end Florida. of to acquisition, closing and in the the the the care expanding announced patients forward high-need quarter, we third we to Towards quality of look our Haven Hospice

health provider of display patient satisfaction, care a Our great of solid systems. care holding rating profile and consumer with assessment hospice overall XX% according currently continues growth the to business to

compassionate our believe positioned on complex health XXXX we populations. of Overall, BrightSpring and deliver execute solutions comprehensive outlook. in our to We consistently and continue towards are well to XXXX, teams to driving updated our mission

providing reliable, Pharmacy attractive Broad-based XXXX patients In BrightSpring's continues strength markets growth to practices operational further lower-cost plans and company across the coordinated, Provider drive while and underpin in best success. to volume beyond, and care. high-quality and

third third our care Before director who I Dr. quality impressive XXXX and the look to our deliver decades a BrightSpring guidance clinical to like leading financial turn to that I call and brings recently Steve to to discuss forward we more with I quarter experience. Miller, to added Steve detail, Jim to patients. in over highlight of would company independent to Board, our working of grow leadership results

through With call Jim the walk updated to financials guidance. that, and I'll the turn to over

Jim Mattingly

XXXX Total period. segment Pharmacy achieving $X.X quarter XX% prior XX% you, in was Solutions the growth revenue revenue the year growth third $X.X billion, Thank Jon. from representing year-over-year. of of was billion,

revenue and year. from XX% of Within of representing was was million, $XXX the $X.X XX% growth segment, year-over-year. billion, home revenue last Infusion and pharmacy Specialty Pharmacy And community representing growth

Provider the growth $XXX revenue representing we reported period. of million, segment, XX% year In Services of the prior to compared

year-over-year. home reported million year. And representing of segment, healthcare million, for quarter, in growth care $XXX growth Services $XXX Provider third versus X% the XX% revenue revenue rehab was the community Within last of and

negatively the million P&L. items the the profit quarter company $XXX profit community million, related Total to down of Gross approximately and periods. in compared the customer nonrecurring growth related impacted last EBITDA with of quarter settlement to third by XX% material representing in gross impact year. Moving third and was $XX to that was including pharmacy, the small adjusted large prior home costs hurricane from onboarding not a with in a a payer related to a start-up quarter, was

third was the for was for EBITDA total Adjusted for total company last XX% Adjusted for million $XXX the quarter, year. EPS the third quarter. company compared to $X.XX growing the

gross $XXX last was growing was line Adjusted of Pharmacy EBITDA margin with segment our in last X.X%, quarter the to adjusted EBITDA Turning representing to expectations. back year. third for quarter, growing profit of performance. XX% $XX Pharmacy third for Solutions the was million Solutions an million, year, compared XX% compared which with

last was million year. profit adjusted versus $XX gross EBITDA year, XX% up versus $XXX growing an representing the of Adjusted margin year. last Services versus last for Provider quarter, third basis of XX.X%, for XX was quarter points the third Provider growing XX% Services million, EBITDA

million on from previously including of On operations legacy as flow disclosed. was matter legal $XX company million in cash quarter payment final $XX a a total the basis, third the XXXX,

was operations strategic our legal inventory with million, purchases. included was some flow in $XX cash that payment, which Excluding line expectations and from

focused legacy and expenses approximately improving leverage on goal ratio annual our $XXX of track to expenses towards of remain operating to We [indiscernible] X we continue disclosed years. run our litigation as deliver cash million Xx to within on remain flow, X rate IPO-related

is with net was leverage our at X.XXx, approximately ratio XX, our projections. line internal which with outstanding September of As billion our $X.X debt in

including interest net includes per approximately TEU on cash Quarterly received due to expense place swap related quarter, rate fixed we income X in expected million million instrument. have set hedges interest interest approximately $X.X XXXX. the XX, As is interest mature to in be expense related September pay interest agreements still to expense a to our variable to $XX flow reminder, that

our to guidance for XXXX. Turning

adjusted to for to billion, be of in revenue range We expected EBITDA. are billion is $X.X revenue Total raising $XX.X Pharmacy $X.XX $X.X Services billion to $X.XX the Solutions and Provider $XX.X billion revenue billion to of of billion. now expectations revenue and including

year raising XXXX full represents to $XXX This total million also We $XXX XXXX. of XX.X% excluding for range to full range QIP when adjusted growth million to XX.X% the XXXX. our are EBITDA the versus outlook in received year

we is range, our adjusted Since adjusted of see to of increased nearly the midpoint the have adjusted $XX million. start At approximately the midpoint to EBITDA year, margin in EBITDA the our by guidance EBITDA and expect X.X%, expansion QX. we continue margin of the

will With Jon. it turn to now that, I back

Jon Rousseau

BrightSpring's to results update. time your today for go you Thank guidance through third quarter and

will open questions. for the call We Operator? up now

Operator

Our from Instructions] comes from [Operator line Brian Jefferies. the Tanquilut of first question

Brian Tanquilut

to Congrats just point to -- question, in on the that to solid a margins, be expecting about Jim quarter. quarter. expecting Maybe, fourth that made my improve first Jon, the

that that that Just be about and how expansion? [indiscernible] curious other between initiatives should margin mix between thinking drive would we

Jon Rousseau

that other a items. quarter and year. typically as this always including year it's for to highest But is trend every for reasons, been the of almost year QX variety our expect days margin we of continue

SPRYCEL, are of items new launch a or hospice, quarter. hospice occur to nonstructural in should through rate be the a into in generic to we of There going We QX. some well. other customers effect as drug are occur some specialty onboarding that in had new the We some goes expect

fixed point volume ultimately corporate continued Those our adders are in in all pretty with items, as much well And holding quarter-over-quarter margin leveraging costs, we're at time. to along growth the the this our quarter. flat and

Brian Tanquilut

and the that investor be as -- -- are just seem lot a there's on of lot biosimilars adjustments questions And to Jon, in that are pricing community that a maybe, from a of Awesome. happening then space. follow-up, there

these So or seeing just the how of biosim world. thinking dynamics about taking some curious in what we should be your you're to exposure

Jon Rousseau

Yes.

and of oral that's That's in So business. injectable relevant rare and oncology specialty not and business more pharmacy an business. our orphan

really STELARA seeing aware we're you infusion, now activity. only to of where is As right drug you're look the biosimilar

business don't our mix as well given see we company as For material us, at infusion, a from impact the that. in

a for our that that positive been future. And initiatives, whole still specific cetera, nursing, then building this service delivery, infusion, host have as our focused the There's for multiple in out to year in talked where items play on in that terms could we're cetera, of well. of et we've there's that specifically us, really as be situation et we've about, operational

to We've service been very space platform levels. making investments build in durable to try the with long-term a leading

So our operational we've that the in anything do as with host has have, from believe from we margin other of and a where to we STELARA. sales-related next that's upside focus been. talked And whole separate year business items about, in

our we So a for In that have think material otherwise the of what year revenue, company specific we on would GP. less not going X.X% to us, to what said as XXXX, of case, planning are than that and and about drug STELARA say. next impact our X.X% have happens versus is is

hopefully and events to move inevitably in to other incur time. drivers. efficiency of growing on things focused the we're market that business they the as These just any Unfortunately, have in again, you and to -- from there's absorb. these growth time are lot past a volume of So driving

Operator

[Operator Instructions] Our from next from line the question of UBS. A.J. comes Rice

Albert Rice

quarter, client, you that might It on like sounds you in being your that about have come any for Can last care a a with know start-up color about must long-term in costs to talked onboarding what operator. mean? negotiations comments fruition. give us I

at had update health seeing also about I'm was And large managed quarter, last as business. home contracting home you're talked in you if with your health well. managed care being in think wondering discussion what care I a any -- there on about some plan

Jon Rousseau

Thanks, Yes. A.J.

the So attractive And underpinned in and in digit that community And really business well multiple across service in channels. scripts again. all dimensions. those and on as year-over-year market focus to our grew in at to differentiate try space on first the home we as sales by on continue really point double that's marketing pharmacy, we tactics we our programs the quality and

in was to was United But speaks the been we we've talked And We're It big of as buildings. have in XXX a did but that effort, do the company particular, States about that. think able across customer, onboard one over that successful. would execution probably very the to it's team. the only I

lingering It's individuals. costs going you're over We well. still some as massive and customers and such do you onboarding of incur things other have a some time amount

QX. we We QX to and to get continue as that expect through decrease into

been to that million ultimately as monthly increase You can of think about a that long-term drive into QX to situation. as that $X get for as profile continue hopefully we've finalize EBITDA we should that able specific see and what labor we

care, hospitalization. the On where payers level and provide the for payer and very early of a in home-based continue being do idea care are to talk we directly primary to home innings, high we a dramatically community can in here the the high handful that risk reduce members of primary

to progress don't the and talk it's ability specifically These other discussions continuing situation. direction. can to have still they specific well in one take I continuing right a to that are the in than looking trend yet while, but very about

Albert Rice

the glad got Haven And completed. hear to Okay. deal you

that, another might how $XX business I original update was contribute on And thoughts flow potential that -- a discussion and it how XXXX Is expand that revenue EBITDA. how might might million contributes? that think Is of there the contribution? through? might what any you quickly that on you expand any

Jon Rousseau

terms or close. together, that getting there, see good think onboarding over It we and a And excellent team XX, X, over days Yes. to ingrained XX And XX of sort ton XX, $XX year. million next million opportunity was the be you that stair been couple enthusiasm. with if have years. of really million will of in of coming just the can several believe will, over a everybody first this $X years, of $X about the in step, We be a realized EBITDA that

Operator

[Operator the from from Instructions] BTIG. David next Our line Larsen comes question of

David Larsen

the if Inflation a kind there's the good to back you on we've a sort market. on into icon specialty. is investors headwind Reduction yesterday. causing come heavily CROs pull of maybe amongst Congratulations mean it's it's bit a IQVIA We've My Act seen invest pressure. little that of Can some the impact the quarter. under of about more some overall There's pharma view any? a seen on I view talk

in is having impact brand your what on overall inflation Just IRA the business?

Jon Rousseau

Yes.

are certain So market the look things a you Again, that us meaningful XXXX. events in timeline. that's ] out an would whatsoever. moved situation certainly, situation that of future, ahead to for these in could primarily do [ be SOLAR to where manufacturer not a the that's in The example,

drug out We partner specific business our just having with it take risk business are already one that on But very specialty specialty. no and really pharmacy in see That's we XXXX. by conversations on situation the to business. got and have You've oncology that list. constructive in on manufacturing

You the our and drugs good infusion. that's which is LTC very around situation, there the about QX XXXX. we material. list thought. then or got X was pharmacy, not you [indiscernible] talked look on the X And where at in at We you've look what this, for one drug us news There in

CMS the impact to But always was has the and written intention that said is it no in the pharmacies. have into on IRA it

is really CMS to be pretty to stating clarifying a there's what the true-up that much exactly QX, -- that whack so were mechanism formalized LTC going basically that for we in pharmacies, And seeking. which

drug take place. in we to LTC got by we by business But good feel really drug. and a across look like infusion you've pharmacy, we're business, as this So specialty,

home the a what beyond The we from pharmacy in quality just is value of pharmacies in perspective do the essential of last program and and miles world. patient's the

without participants. home the the get as can't drug pharmacies to You the willing

then situations the on LTC to us out the looking mechanism side each formalization of are very couple the And risk great specific business the in so in drug was of a to see years. low CMS' And quarter. the of

David Larsen

The It like Great. to you. of then volumes. around that me color MA pressure been And could just seems tailwind have a any because plans to volumes? high under be

any been translating the Just have there color that's of under, pressure how how plans that business. on the to your --

Jon Rousseau

Yes.

MA, relates bit. that's to on Provider it a the as going us, on relevance home For is only be to really, health little there the And side.

constructive And in health over home so several the been we've years. with past working

don't demand supply. profound, get out reducing who the because demand so are health really, health, the keeping is really imbalance individuals which benefits and health need of supply outstrips the it given of -- and in it, home Just of home a Today, really XX% problem hospital of home the cost. people

And so levels is in what there, business. But quality and health relationships, see David, we service we payers -- continuing what we've all that rates that really to given the home to negotiate do with very only of consider them. relevance with across MA. the it do we lines our XX% is constructive or had very Call contracting broad just could of our so be sustainable

really standpoint, an in So company. from MA that's the it

Operator

from [Operator America. Instructions] Our of next Gajuk Bank Joanna question line the of from comes

Joanna Gajuk

I to related So questions topics, I I have prior if X guess may.

one first on IRA. the So the

commenting understand the Part essentially for I cost to other lowering patients. But D, prices. on side, some were drug the on there changes to you So are changes flip the the

specialty they payers utilization have said higher And of some just saw of that. that because

well? as that seen you have So

costs And also to the in patient the are be even to bigger actually in going 'XX. this context, changes

year those expect under So next do bigger utilization in even changes? increase you

Jon Rousseau

from continue for continuing will you I been mean a affordable be be referred more perspective to that D Part good is to the what only expect for extent a Joanna, us that are made positive to drugs thing. and patients, we Yes. to there thank you. has

is right robust market. market to our is extremely very we force, manufacturers in that our growth sales dynamic business. with and continuing drive innovative very our with a now. Oncology, with relationships in And volume are with high-growth particular, It and quality, an

the Specialty example. in and grew their infusion revenue quarter over XX% as

year As us. that accelerant That the those January into for every turns effect. an items calendar go some into was year, mentioned this of you

out of And take making referrals these front in as team year always new people bolus the full of our event and months it that sure this get expect planning can. advantage well. to we of to changeover drugs is sales year-over-year we given And we ahead that, into an our life-saving like as a as January, of marketing many

bump into you we a get expect due January we perspective as another laid the volume So that to out. would items from

Joanna Gajuk

Great. And the on follow around if up I discussion may STELARA.

terms exposure, STELARA I you and ahead are to you your is changes of other the refer maker spread peer set thank introduce but some that there your So drug. changes of in reducing for so details guess the that that happening, on materially to of essentially infusion plans

So going future view this that happen final. But follow happen, it of this biosimilar change see like if kind of think you if of about your does change change, this because drug makers to launches? does forward? benefit sounds does impact Could was was maybe to your the not how suit? to how And that how we other business similar

Jon Rousseau

really that to future I it's we say idiosyncratic. Look, very of just Yes. impossible of the prognosticate this would space. the situation being around as in view at biosimilars sort least

the on terms of play in is And in the instance. one the list. a that's change from of manufacturer pricing any specific this in drug here This probably IRA

is is So that's our that isolated. view this

back and fantastic given market market of the patients a the have high are high-execution fast job. some is and continues barriers entry, you I times larger the for think the players business to an prescribers local a When turnaround be extremely and step attractive real where services demand where at infusion done to there look in broadly from you

participate to really model That from are we like defines markets a pharmacy and that everything are that do. challenging perspective, We in service local.

infusion for those So reasons. we like a lot

drugs opportunities focus look, time. onto margin play There service long-term with and deep. in efficiency drugs advantage drivers from success volume a on going to and possible are and you extremely just constantly then generic, all this take is that market, continue and just you growth the can next real coming X, market over is to a factors focus those quality in biosimilar, going levels on of over drugs XX drug market years. perspective, many X have pipeline the X, critical and any the The And at

about, And drive infusion, a lot continuing P&L. We've historically. in try we much for our we've as us, that's been year. this as to talked a that's our is business at investments that as That's made that less of volume mature to business can. in On company

be year. look those as into a to benefit next we expect We

So again, for we And specific before, view there's were And specific variety STELARA, change very can situation would out our next we from is planning a well. a within said one outlook to not year. I as be play STELARA situation positive what that otherwise materially that reasons. of still several very as items the

more still be there. seen to So

Operator

[Operator Instructions] Hynes Our from line from Ann next comes the Mizuho. question of

Ann Hynes

you guidance, I but giving not next and you might headwinds maybe facing? highlight you're know can year, tailwinds heading into be key some XXXX

Jon Rousseau

guidance budgets. to down we're Yes. in getting the time. we'll be Obviously, path Yes, of well XXXX

need we to numbers and formalize formalize that to So all work be communicated.

of bit time, as ability But we're little historical year. on more were if the in we positive next our not way, the same to I've the continue a at drive of this last feeling terms our level growth as into past, said in call to

that about right now, CAGR see the change base and no a we're and growth has in perspective. X digits been last the business would our the that's reason year, and revenue And thinking Over we years from next now. EBITDA our double how plan why

particularly really foremost, momentum, rare we a of the just you look again, business our growth ton first mix, It's In terms and something specialty, like. in there's at the drivers orphan multipronged we of And just are space. and of given oncology the and company. a business,

We dominant to continue. drive and that our as investment We and independent have our quality in relationships forward. position pharmacy continuing sales the force and focus. in and It's that market our expect a to an business certainly trade

launched in QX. It went It's a tailwind. SPRYCEL generic.

is momentum And drug to LDD really to continue in QX, we go hopefully maybe from overall generic have going launches. Another QX, our good just hopefully QX.

this pharmacies Of X LDD specialty, rest less. launches of or narrow those are launch X think I We'll XX networks only ultra are X XX exclusive, in and year. or the of note,

so And fulfill only pharmacies or drugs. really X to these manufacturers and selecting X support

our So generics we'll existing continue LDD with our well. and year next in as our momentum momentum portfolio

business that highly our data too. continues manufacturers, to valued fee-for-service then and And services grow, provide specialty with for and we

So specialty just multiple alone. growth drivers within

I mentioned infusion.

business the to in to that continued expect would expect pay the of But projects we've up, double-digit. year. focusing see some business given start of tick next operationally business just operational We now investments growth the to start to off We margin volume expecting on. in importantly, that been that we're in

For us, And that's working that's an share industry. big top attractive, our that's in the of opportunity a we've service to And really there. are market. with market hopefully focus in that our levels the grow been on what

out I should the acute. note look have companies. that when Quorum just also smaller on infusion, the to there out infusion of on they getting quarter players were the you of infusion announced started in lot A focus specialty, particularly

you Our do both. to thesis have is that

you to most have That, chronic to infusion us, and is to You the payer. do have relevant therapies. acute, do the to

you be infuse or expect to their for would X. members able to Payers X types and not therapy just all

that are continues being we a And on focusing so infusion do acute. company broad-based to

a margin. has market, infusion is and Acute it a respectable huge

lot a to reasons do believe to of And acute. there's so that continue we

market, also has tailwind as As recently pulled should we get from into most Quorum year. next that that away a be

As health we said support. before, and continues great home we a like to hospice Hospice get lot.

to we grow volume those But of we continue centralization in double and invest in at those technology digits. to operational businesses opportunities businesses well. continue And both efficiency expect as to

We well. like clinically rehab as

care to de novos home-based too. more and we then business try at as upside, And scale continue We double primary penetrate for current markets business markets. in will continue we digits our to that grow to expect to do evolve and

the initiatives pharmacy and year, this of going on to year and perspective volume that I a see both is but LTC pharmacy operational I LTC, we've And did customer margin some from year, So of a business EBITDA next reasons. mention for been expect to up hard this too. variety for driving our we business, given a well third think next us do year-over-year year, be

Operator

line comes from Instructions] Our the from question [Operator of next Leerink. Whit Mayo

Benjamin Mayo

guide how you individual the each about within for implied of growth But points thinking stronger directional the quarter, the seasonality the sequential the to the of within we see segments? business. sort certainly about trends within are curious Just that fourth the

Jon Rousseau

Yes.

would XX% QX to to sequentially, that imply good rate million million $XX about a feel XX% growth a we essentially number. So step-up but year-over-year of and $XX

continued it's the think operational of focus company. our execution on at reflection a and growth I

and to same raised look We again raised a the number the QX. why It's spoke across to be of guidance as drivers our more at the earlier guidance. going We of our we business. we

Provider very expected EBITDA and healthy Pharmacy a double-digit in well. grow grow rates, is QX growth expected to at is at to as rate

So would growth say, QX I contribution, growth. if we Jim similar know QX relative very, saw anything or in Jen, very the as else. But have you in the I don't

Jim Mattingly

Yes, QX. a couple as talked would second of half. year add about, is we've a a QX, stronger is half QX And just first stronger historically the seasonality than I from of pieces. Jon, than little bit perspective the

have So our best seasonality the year. we period of

The number to drive dollar very of came margin earlier question different the initiatives much it as that profit. up the also Jon relates mentioned

in end SPRYCEL be generic that of will QX live the QX. the launch went So at full bore

through as customer, start launch home favorable we start-up those our On net which go will costs and the QX, to will on pharmacy community be quarter-over-quarter. into -- dissipate and the

we continue net favorable side, rate went On sequentially. Provider That's [ the live solid support. rates ]. have XX/X quarter-over-quarter to Hospice

of QX a and full continuing to and overall just on volume perspective overly Haven sequentially is positive. QX meaningful through have we we acquisition, sequentially, EBITDA And -- have certainly to company year, total through the year-over-year the QX The not drives that then year. from Hospice net end grow the while

divisional add really a to of scale. all pieces to around we G&A those of and up overhead a continue all wrapped corporate a degree that confidence, high So

Our flat. QX corporate was overhead QX to

QX overhead and QX same business should revenue area be favorable slightly the and in continue corporate as Our to we profitability. gross to or grow profit level drive

out So up us year. to all add to QX a of for pieces those strong the close

Jon Rousseau

Yes.

scale, we costs holding As those on to flat. divisions continue corporate

Benjamin Mayo

So in think You've just in this, maybe bit you allocating areas largely health. you next a That's interest you're capital but or next I home super capital and hospice, in capital of like this, look the maybe out do about best out businesses will Maybe thinking not you how noncore active or over the year? portfolio and the more forward? but year. -- say helpful. be your taking over kind think little maybe missed there where to the Are deployment just as going priorities been it's maybe any

Jon Rousseau

Yes.

from strategy an done acquisition couple just what of think be the past I with Whit, we've extremely years. perspective, going consistent to it's over

long-term side, there's accretive infusion, things for pharmacy will Pharmacy the care at. transactions be those sub-Xx On very look if we in or opportunities

been rehab, it's and home-based And the on and health Provider home care as then then hospice well. primary side,

the that of will So be mix, focus. probably I say If to as thumb. XX-XX a rule continue had to a it's

small X hospice. we health can the kind tuck-ins high just or capital, million that now, make. very couple X, In are Those we and right pipeline of less our of things really just have investments little a of home in that CON but dollars are ROI or

bigger bit $X that million, several are million million, acquisitions that $X now. our case EBITDA the than right sort do $X little That's Certainly, in a base of range. we might

really are hundred Provider home adjacent that capital and And markets, it, each Those year. to between them. XX side, point and of rehab good this it's markets from into XX a de then novo those have at really easy thousand entrants on to had call health, hospice do new and on the to investments very for ROI attached dollars several typically standpoint a historically and

over But on plans X outside very target. big We for always So leverage we're doing at specific opportunistic. opportunities. point of the focused have a been years. getting in We're no anything to time this we've last what always

a for little bigger are sub-$XX we for our bit we'll could over just really smaller, front that center us the then X That's but remain that for has very of unique agile year focus accretive been There be our are could last we're now and the to doing. but that behavior a always on drive EBITDA. million shareholders, the transactions. value that's plan. right or everything base And at situations couple And

Operator

Instructions] the [Operator of from Bolduc from question Our next line Morgan Linda comes Stanley.

Linda Bolduc

Wright. on Linda Bolduc is Erin This for

quickly drug's of a the if what I the And that exposure? STELARA this back Is is I is so, to drug believe going another one heard it IRA drug IRA, company drug? or So the list. on mention having

Jon Rousseau

oncology. Yes. IMBRUVICA oncology one in would specialty the in specialty drug be

great feel already, of going how that been about year a relationship it's manufacturer. all there. I We've don't of well IRA. there And We situation a [indiscernible] have ahead over any we terms for very with the talking months out. to good play in any to see risk

it's X the X on We infusion that's think within LTC, talked drugs. We isolated infusion there's side, then And world. about or the On that. really pretty STELARA.

true-up down I the took clarified place around memorialize language down meaningful industry would the their risk CMS really LTC for mentioned the really the was that great significantly. see. took It be significantly. in And to impact mechanism which And that the in pharmacies, to any for quarter,

items believe still make should terms that all that and with as and everybody the positive for we'll are next on LTC be would have of industry of that the do year working we view hill CMS throughout sense in would that There we LTC. things for

list on still in be with So to LTC. D.C. relates items as folks we're long to of working going it our

will was see next the that at but to CMS year, the in out play sort quarter. it baseline of good But really feedback from least over

change summarizes X, and in that it long-term really X as from lines everything service years So beyond IRA, growth about to think relates our really over how of in our and no terms perspective company. we the across

Linda Bolduc

target and when impressive within That's long-term last growth year segment, a compared of we've single helpful. digits. seen And especially to the high quarter-over-quarter compare also growth Pharmacy to that we continued

BrightSpring the parse from and peers these to growth bit industry this a [indiscernible] out how expanding much growth that share specialty capturing drugs? meaningful related new is with So just further, to of impressive

Jon Rousseau

Yes.

the X big think of pharmacy. double innovation the Oncology pipeline X is specialty as It's I in within biggest as digits. primarily growing markets it's the The latter. is ever.

I think some onto expected pipeline. years. X generic the And X of a massive to the market new there's in there's or next $XX revenue billion come

in generic expected go are X large to more As brands went that years years. out to there's X generic you XX QX, after SPRYCEL just look over the X next

has And so investments brands levels being to be closely market at effective with these LDD, service our as new to our force launch on able team, manufacturers our the work partner really events on in come a are given sales just been and those and new as occurring brands. to

possible our take seriously years over really a to we really the force work possible. the and the having the service ourselves with very work market patients market, capitalize say really done partner able good position our a as service to to XX from hard this quality best endeavor every manufacturing And entering provide innovators most day. be and partners perspective to and in for that's to closely provide the service put perspective sales new the us last to something a But and would patients and market best and to to in drugs to be come they those try speedy the and I on

And generics are everybody. good for

really had And we tactical so focus to support something we've not plays involved anybody perspective business and how on strategically also a model a and just extremely It's real do. That's well. also generics. from that can our

Operator

Perse from the question next line Goldman of Jamie comes from Our Instructions] [Operator Sachs.

Jamie Perse

capital the success and your spend that gauge I care here? management what focus level a you're in measuring how of should in you'll hoping was minute we to could primary your Jon, deploy on you And looking XXXX? XXXX early for be and efforts, there space just

Jon Rousseau

Jamie. Thanks, Yes.

a really which very to we've where lost prerogative good an never money, really build focus continue the year. So and grow growth that's for that has business this continued us. But on patient mostly to organic a been business we drive been organically. It's has any

are hospitalization XX% the reductions going XX% primary going rates. nursing of to skilled clinician nurse and Again, time, and these really living, in the be into the doctors into sometimes home physician facilities and practitioners assisted to drive

grow perspective at we've volumes continued XX% So patient with that value from this year. XX%, proposition and our a to that benefit,

us contracts place. in I-SNP was in QX, getting ACO some The managed late our having with care acquisition internal our for plans. own And back key

on. a real really of focus those much EBITDA efforts And talking about very really lot there's talk so are not We're around about. There's to just until it there continuing a it.

about $X that as figures we have a to to do business. we're maybe next this in EBITDA of of manage that million get patients space in X XXXX EBITDA Certainly, target year. X-year to XXX,XXX hoping We'll over year. X- to into But certainly quickly,

So potentially I meaningful patient count proxy XXXX then profitability in as at and sort the driver pretty you the level year X. over business particular, think I in the as company. be near-term say of or And get we look the would profitability that next obviously, is would in a best into and really of growth

it shared relates relates going in I-SNP patient ACO their lives savings, and a are relates to well as to things we we members. And But as managing the payer an to model it on focus under lives have hopefully, contracted we're population where where there. as to continue it with future, our lives

Operator

of Our Instructions] comes line Pito Deutsche Bank. [Operator next question Chickering from the from

Pito Chickering

quarter beat. it models, the part looks was a third business Provider discrete like of the the Well, side EBITDA of big

So growth? that SG&A overall just margin spectacular, revenue patients quarter, which on home rehab and declining of or leverage came community sort year-over-year? from versus the positive improvement So pricing health much was XX% this mix seen how of coming from

Jon Rousseau

a There's of bit Thanks, Pito. Yes. little both.

growth market factors. good the X So was certainly, we which were you cost, at helpful from then perspective, in that, fixed had quarter. volume leverage look With a we to

the you when rehab attractive in hospice to two, health mix, at home well. grow and with living Number look their continuing a as business with margins community to at rates relative

And rehab, higher than at hospice, So business. higher home that continue grow at the those health as community are those and well. to margin living is rates, as businesses volume play

and our process track procurement really some individual and business reflected corporate the we're BPO we to third, $XX team, businesses. projects segments the of organization, example, in efficiency which team, Really But to for deliver get corporate optimization the P&Ls with our team million. continue drive on with across over

this just procurement, to and We're year over $XX of and on segments The really from of efficiency purchasing really the This flows that P&L. outside businesses deliver a and the initiatives. track of reduction through the benefit Pharmacy is cost million perspective.

hospice good dramatically rate versus fourth, helpful have as frontline really particularly majority value, to continue services then vast stable I living And of and and support, our quality advocacy can just we these workforce, say, the -- of given we clinicians get costs well. good to funds ROI all rate have so goes continue the a would reduced The caregivers community any that and side. ultimately that the setting, of our other on services, the of that and is the but very which and

Operator

[Operator from Instructions] KeyBanc. Gillmor from question Our final Matthew

Matthew Gillmor

contemplated reported items that the And guidance? settlement? you as of Or million to should EBITDA? the related start-up to called curious nonrecurring incremental between in view something the that, then delineate was was you sort that that what payer of on was if could So $XX and out, -- you losses it I we we

Jon Rousseau

Yes.

the to new Jen relates turn been as any customers, of associated onboarding guidance that and mean in over Jim. it I that with start-up I'll costs to have So would payer before that and that, years isolated, an very all along. comments situation, ago, other dated literally old The but item relates to back to very, any on X too. it the as

Jennifer Phipps

Yes.

other legal finalize, did included noted, So a as also was as well. that we of from payer We perspective settlement guidance the all cases.

working this was through costs those from an we as some year quarter well the projects. a acquisition integration and and a that increase had expenses of nonrecurring So standpoint in as we of lot as were

Operator

I time, this the back closing to like now to Jon Rousseau conference remarks. for would turn At

Jon Rousseau

bring all from very around everybody, you, really to your valuable continue We it. can these people benefit the At appreciate services. focus Thank company, to trying every homes high-quality and today. day, us time every for who communities we across on services to day

one. we're continue a in each of focusing we focus. on service time good people to trying and our XXXX you about our all and Again, out will So really optimistic position. a today, biggest I we volume of make into to these closing your Thank in impact remain a think Quality, have do XXXX, good areas one for And job operational lines. good communities. efficiency can Bye. getting execution growth for the in

Operator

participating. for you Thank call. conference today's concludes This

disconnect. may You now

BrightSpring Health Services, Inc. Common Stock (BTSG) 1 Nov 242024 Q3 Earnings call transcript