The following is a summary of the Aveanna Healthcare Holdings Inc. (AVAH) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Aveanna Healthcare reported Q3 revenue of $509 million, up 6.5% year-over-year.

• Adjusted EBITDA for the quarter was $47.8 million, up 32.2% from the previous year, due to improved payer rates and cost reduction efforts.

• YTD free cash flow was positive, with $19.2 million provided by operating activities.

Business Progress:

• Aveanna is executing its strategic transformation, focusing on enhancing partnerships with government and preferred payers to expand caregiver capacity.

• Efforts in legislative strategy for rate improvements yielded double-digit rate increases in Georgia and Massachusetts.

• The company has secured 12 state rate increases for Private Duty Services and added seven new preferred payer agreements, with total agreements now at 21.

• Aveanna continues to focus on its Medical Solutions segment to implement a preferred payer strategy.

Opportunities:

• The approval of Proposition 35 in California potentially opens avenues for future rate increases beneficial to Aveanna's operations.

• Aveanna expects to exceed its goal of 22 preferred payers by the end of 2024, demonstrating robust company growth and expanding payer relationships.

Risks:

• Labor market challenges continue to impact the business, although improvements in caregiver hiring trends are being observed.

• Hurricane disruptions in late Q3 affected the business temporarily, highlighting operational risks due to natural disasters.

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