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Aveanna Healthcare Holdings Inc. (AVAH-5.34%) has submitted its 10-K annual report filing for the fiscal year ended December 28, 2024. The company operates a diversified home care platform providing services to medically complex, high-cost patient populations across 34 states, with a focus on private duty services, home health and hospice, and medical solutions.
The company's revenue for the fiscal year ended December 28, 2024, was $2,024.5 million, reflecting a 6.8% increase from the previous year. This growth was primarily driven by a 7.6% increase in Private Duty Services (PDS) revenue and a 9.1% rise in Medical Solutions (MS) revenue, although Home Health & Hospice (HHH) revenue saw a slight decrease of 0.4%.
The cost of revenue, excluding depreciation and amortization, was $1,389.0 million for the fiscal year ended December 28, 2024, marking a 6.9% increase from the previous year. This increase was mainly due to higher caregiver labor costs and volume growth in the PDS and MS segments.
Aveanna's operating income for the fiscal year ended December 28, 2024, was $139.8 million, a significant increase from $8.1 million in the previous year. This change was largely due to a $105.1 million non-cash goodwill impairment charge recorded in fiscal year 2023 and a $48.3 million increase in Field contribution.
The company reported a net loss of $10.9 million for the fiscal year ended December 28, 2024, compared to a net loss of $134.5 million in the previous year. The decrease in net loss was primarily driven by the increase in operating income and a decrease in valuation losses on interest rate derivatives, offset by an increase in income tax expense and interest expense.
Aveanna's principal sources of cash have historically been from operating activities, credit facilities, and issuances of common stock. As of December 28, 2024, the company had $84.3 million in cash on hand and $138.0 million of borrowing capacity under its Revolving Credit Facility.
The company faces various risks related to competition, reimbursement rates, regulatory compliance, and cybersecurity. Aveanna's business is subject to extensive federal and state regulations, and changes in these regulations could materially affect its operations.
Aveanna's strategy includes increasing volumes within its existing footprint, leveraging scale for value-based care arrangements, expanding through acquisitions, and reinvesting in its platform for optimized performance.
The company has significant goodwill and intangible assets, and any impairment could negatively impact financial results. In fiscal year 2023, Aveanna recorded a $105.1 million goodwill impairment charge within its HHH segment.
Aveanna's financial position includes substantial indebtedness, with $1,474 million in principal amount outstanding under its credit facilities. The company is exposed to interest rate risk due to variable rate debt, and changes in interest rates could affect its financial condition.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aveanna Healthcare Holdings Inc. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.