The following is a summary of the Aveanna Healthcare Holdings Inc. (AVAH) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Aveanna Healthcare reported Q1 2024 revenue of $491 million, a 5.2% increase compared to the previous year.

• The Q1 2024 adjusted EBITDA rose to $34.9 million, up by 22.5%, attributed to an improved payer rate environment and cost reduction efforts.

• Consolidated gross margin was about 30% or $145.9 million, up by 1% from the previous period.

• Cash on hand was approximately $42.6 million among over $220 million in liquidity at end Q1.

• Q1 negative operating cash flow of $12 million was reported, although the company anticipates positive operating cash flow for 2024.

• The company expects revenue exceeding $1.97 billion and adjusted EBITDA over $150 million for the full year 2024.

Business Progress:

• Aveanna Healthcare carried out four additional preferred payer contracts in Q1 2024, intending to increase the total from 14 to 22.

• The company noted optimistic indicators in the caregiver labor market due to their preferred payer strategy.

• Aveanna maintains a disciplined growth approach while adjusting its caregiver capacity to preferred payers.

• It reported a significant increase in gross margins in Q1 2024.

• The company earmarked growth in Private Duty Services (PDS) and Medical Solutions sectors as key revenue drivers.

• Aveanna aims for preferred payer volume to constitute over 50% of its total volume going forward.

• The company projects immediate sequential rise in Q2 gross margin and a positive year-over-year growth for the rest of the year.

• Aveanna added Jerry Perchik as the new Chief Legal Officer, strengthening its legal team.

• The company is pursuing its preferred payer strategy across numerous states and diligently working to expand organically while maintaining cost-effectiveness and efficiency.

More details: Aveanna Healthcare IR

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