Aveanna Healthcare Holdings Inc. has recently released its 10-K report, providing detailed insights into its operations and financial performance. The company is a diversified home care platform focused on providing pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform aims to allow patients to remain in their homes and minimize the overutilization of high-cost care settings, such as hospitals. Aveanna Healthcare operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS).
In the 10-K report, the company's management's discussion and analysis of financial condition and results of operations highlighted several key metrics. For the fiscal year ended December 30, 2023, Aveanna Healthcare reported consolidated revenue of $1,895,209, representing a 6.0% increase from the previous fiscal year. The cost of revenue, excluding depreciation and amortization, amounted to $1,299,777, resulting in a gross margin of $595,432, or 31.4% of revenue. The company's operating income for the fiscal year was $8,072, marking a significant improvement from the previous year's operating loss of $642,276.
A breakdown of the revenue by segment revealed that the PDS segment generated $1,518,811, accounting for 80% of the consolidated revenue. The HHH segment contributed $218,628, representing 12% of the consolidated revenue, while the MS segment generated $157,770, accounting for 8% of the consolidated revenue.
Aveanna Healthcare also provided important operating metrics for each segment. For the PDS and MS segments, the company reviewed volume, revenue rate, cost of revenue rate, and spread rate to assess growth opportunities, reimbursement rates, and cost management. In the HHH segment, the company monitored metrics such as home health total admissions, home health total episodes, and home health revenue per completed episode to evaluate growth and financial performance.
The company's financial results showed improvements in key performance measures. The gross margin percentage increased to 31.4% from 30.9% in the previous fiscal year. Additionally, the operating income as a percentage of revenue improved to 0.4% from -35.9% in the prior year.
Today the company's shares have moved -6.0% to a price of $2.35. Check out the company's full 10-K submission here.
