The following is a summary of the Aveanna Healthcare Holdings Inc. (AVAH) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Aveanna reported Q2 2024 revenue of approximately $505 million, a 7% increase year-over-year.

• Adjusted EBITDA for Q2 was $45.6 million, representing a 27.3% increase from the previous year.

• Consolidated gross margin was $158.3 million, or 31.3%.

• Full year 2024 revenue is now expected to exceed $1.985 billion, with adjusted EBITDA projected over $158 million.

Business Progress:

• Aveanna has secured double-digit reimbursement rate improvements in Georgia and Massachusetts effective in the second half of 2024.

• The company has added five additional preferred payer agreements, bringing the total to 19 with a goal to reach 22 by year-end.

• Positive trends in caregiver hiring and retention owing to aligned efforts with payers offering enhanced reimbursement rates and value-based agreements.

Opportunities:

• Expansion in preferred payer partnerships enhances Aveanna's capacity to invest in caregiver wages and recruitment, supporting growth.

• Legislative strategies in states like California, despite challenging conditions, aim to secure further funding for PDN rates effective January 1, 2026, under the MCO tax provision, demonstrating a long-term commitment to securing financial sustainability and growth.

Risks:

• The ongoing challenges in the labor market and evolving wage rates necessitate continuous adjustment and advocacy to maintain operational stability and growth.

• Seasonality impacting Q3 volumes, particularly in skilled nursing services, which may affect the financial performance temporarily.

More details: Aveanna Healthcare IR

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