Aveanna Healthcare Holdings Inc., headquartered in Atlanta, Georgia, reported its interim unaudited consolidated financial results for the three and nine-month periods ending September 28, 2024. The company operates across 33 states, providing a range of pediatric and adult healthcare services, including nursing, hospice, rehabilitation, and therapy services.

For the three-month period ended September 28, 2024, Aveanna generated total revenue of $509.0 million, a 6.5% increase from $478.0 million in the same period of the previous year. The gross margin for this period was $159.7 million, representing 31.4% of revenue, up from $147.3 million (30.8% of revenue) year-over-year. The operating income for Q3 2024 was $34.0 million, a significant turnaround from an operating loss of $76.4 million in Q3 2023, marking an increase of $110.4 million. The net loss for the quarter was $42.8 million, down from $102.4 million in the prior year, reflecting a 58.2% decrease in loss.

For the nine-month period ended September 28, 2024, total revenue reached $1.505 billion, a 6.2% increase from $1.416 billion in the same period of 2023. The gross margin for the nine months was $463.8 million (30.8% of revenue), compared to $447.0 million (31.6% of revenue) in the prior year. Operating income for this period was $94.0 million, a substantial improvement from an operating loss of $21.2 million in the previous year. The net loss for the nine-month period was $40.1 million, down from $108.8 million, indicating a 63.1% reduction in loss.

Revenue growth was primarily driven by the Private Duty Services (PDS) segment, which reported a 6.8% increase in revenue to $1.212 billion for the nine-month period, attributed to higher reimbursement rates and increased service demand. The Home Health & Hospice (HHH) segment saw a slight decline in revenue, while the Medical Solutions (MS) segment experienced a 10.6% increase in revenue, driven by volume growth and higher revenue rates.

Aveanna's financial position was supported by a reduction in branch and regional administrative expenses as a percentage of revenue, from 19.3% to 17.6%. The company also reported a decrease in goodwill impairment charges, which had significantly impacted prior results.

In terms of strategic developments, Aveanna amended its First Lien Credit Agreement on September 30, 2024, extending the maturity date of its Revolving Credit Facility and reducing maximum borrowing availability. The company continues to comply with all financial covenants related to its credit facilities. However, it acknowledged a material weakness in its internal controls, particularly in information technology general controls, and is implementing a remediation plan to address these issues.