Analyst Summary
- Q4 2024 revenue increased by 8.6% year-over-year to $519.9 million.
- Gross margin increased by 15.7% year-over-year to $171.7 million.
- Adjusted EBITDA increased by 42.6% year-over-year to $55.2 million.
- PDS Q4 2024 revenue growth of 10.1% from Q4 2023, driven by 10.5 million hours of care or 4.0% YOY volume increase
- MS Q4 2024 gross margin growth of 10.5% from Q4 2023, driven by modernization efforts taking hold
- HHH Q4 2024 gross margin growth of 5.1% from Q4 2023, driven by strong episodic mix and caregiver utilization
- 2024 Operating Cash Flow of positive $32.6m and Free Cash Flow of positive $25.7m
- Liquidity of over $260.1m, comprised of $84.2m cash on balance sheet, $138.0m revolver availability, and $37.9m securitization availability
- Total variable rate debt of $1,474m
- The company is focused on value-based growth, enhanced capital structure, and core organic growth.
Potential Implications
Company Performance
- Continued focus on optimization across Aveanna’s overhead platform and preferred payor strategy.
- Goal to continue drive positive operating cash flow FY 2025
Stock Price
- Positive financial results, particularly the increase in Adjusted EBITDA, could positively influence the stock price.
- Strategic focus on value-based growth and enhanced capital structure may attract investors.