ATLANTA - Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH) announced its fourth-quarter financial results, showcasing a revenue increase and meeting earnings per share (EPS) expectations. The company reported a Q4 EPS of -$0.02, aligning with analyst estimates.
Revenue for the quarter was reported at $478.8 million, surpassing the consensus estimate of $464.99 million and marking a 6.1% increase compared to the same quarter last year.
Following the announcement, the stock rose 3.5% in premarket trading.
The company's gross margin saw a significant rise of 15.3% to $148.4 million compared to Q4 of the previous year. Despite this, Aveanna experienced a net loss of $25.7 million, which is a notable improvement from the net loss of $237.8 million in the comparable period last year. The reduced net loss is primarily due to a substantial non-cash goodwill impairment charge recorded in Q4 2022. Adjusted EBITDA for the quarter also increased by 30.4% to $38.7 million.
Looking ahead, Aveanna forecasts full-year 2024 revenue to be between $1.96 billion and $1.98 billion. This guidance range's midpoint of $1.97 billion is in line with analyst consensus. Adjusted EBITDA expectations for the full year 2024 are set between $146 million and $150 million.
Jeff Shaner, Chief Executive Officer, attributed the strong quarter to the company's strategic transformation and expansion as a value-based homecare provider. He expressed pride in the team's efforts and the solid results produced, which support the company's positive outlook for 2024.
The company's financial health is further evidenced by its liquidity position, with $43.9 million in cash and an undrawn revolver providing approximately $168.1 million of borrowing capacity. Fiscal year-to-date 2023 net cash provided by operating activities was $22.7 million, and free cash flow stood at $12.5 million for the year.
Aveanna's CFO, Matt Buckhalter, highlighted the 6.1% growth in revenue and 30.4% growth in Adjusted EBITDA compared to the prior year period. He emphasized the strategic initiatives that have positively impacted the company's cash flow from operations in 2023 and expressed confidence in the momentum heading into 2024.
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