BrightSpring Health Services Inc
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
BTSG$67.15+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0000950170-24-051607
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000950170-24-089623
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 188 previous paragraphs and 222 current paragraphs.
96 unchanged; 59 reworded; 53 added; 30 removed; 3 previous and 14 current paragraphs rearranged.
Tables are not compared: 11 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (53)
Current report
Completed three acquisitions within our Pharmacy Solutions and Provider Services segments
Current report
7.7 million restricted stock units granted to certain full-time employees, as disclosed in connection with our IPO Offerings
Current report
Financial Performance Highlights: Second Quarter of 2024 Compared to Second Quarter of 2023
Current report
Revenue grew by $563.5 million, or 26.0% to $2.7 billion
Current report
Net income increased by $15.9 million to $19.9 million; when excluding the approximately $30 million quality incentive payment(“QIP”)received in the second fiscal quarter of 2023, net income increased by $46.8 million
Current report
Adjusted EBITDA(1) decreased by $10.3 million, or 6.9%, to $139.1 million; when excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, Adjusted EBITDA increased by $19.9 million, or 16.7%
Current report
Pharmacy Solutions segment EBITDA decreased by $15.3 million, or 13.9%, to $94.5 million; when excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, Pharmacy Solutions segment EBITDA increased by $14.9 million, or 18.7%
Current report
Income per share increased by $0.07 from $0.03 to $0.10
Current report
Adjusted EPS(1) was $0.10
Current report
Quality Incentive Payment
Current report
As discussed under Part I, Item 1. “Business” in our Annual Report on Form 10-K for the year ended December 31, 2023, the Company was eligible to receive incentive payments in connection with a payor contract based on the Company's Net Promoter Score (“NPS”) achieved from surveys performed directly by the payor. During the second fiscal quarter of 2023, our Infusion and Specialty Pharmacy services earned a QIP of approximately $30 million. The Company did not receive a QIP during the three and six months ended June 30, 2024. The QIP program has reached its conclusion.
Current report
Selling, general, and administrative expenses were $326.6 million for the three months ended June 30, 2024, as compared with $292.5 million for the three months ended June 30, 2023, an increase of $34.2 million or 11.7%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $15.8 million, or 5.4% growth on consolidated 2023 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
Income tax benefit was $9.5 million for the three months ended June 30, 2024, as compared to $2.8 million for the three months ended June 30, 2023, an increase of $6.6 million. The increase in the income tax benefit is attributable to a decrease in the effective tax rate for the three months ended June 30, 2024 of (94.9%) compared to 4,167.6% for the three months ended June 30, 2023. The decrease in the effective tax rate is primarily due to a combination of the discrete tax benefit recognized in the quarter related to the Silver matter that was finalized during the second fiscal quarter of 2024 as well as the impact of the year-to-date cumulative adjustment of the second fiscal quarter of 2023 estimated effective tax rate on near break-even pre-tax book loss for the quarter. For additional information on the Silver matter, see Note 10 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q.
Current report
Net Income
Current report
Net income was $19.4 million for the three months ended June 30, 2024, as compared with $2.8 million for the three months ended June 30, 2023, an increase of $16.7 million. Net income for the second fiscal quarter of 2024 is primarily attributable to the aforementioned decrease in interest expense, net, increase in revenues, and increase in income tax benefit. When excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, net income increased by $46.8 million compared to a net loss of $27.4 million in the second fiscal quarter of 2023.
Current report
Adjusted EBITDA was $139.1 million for the three months ended June 30, 2024, as compared with $149.4 million for the three months ended June 30, 2023, a decrease of $10.3 million or 6.9%. When excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, Adjusted EBITDA increased $19.9 million or 16.7%. The decrease of $10.3 million primarily resulted from the following segment activity and factors:
Current report
an increase of $11.7 million, or 7.8% growth on consolidated 2023 Adjusted EBITDA, as a result of growth in our Provider Services segment. See additional discussion in “—Segment Results of Operations” below; offset by
Current report
a decrease of $15.3 million, or 10.2% decline on consolidated 2023 Adjusted EBITDA, as a result of a decline in our Pharmacy Solutions segment primarily attributable to not receiving a QIP in 2024. See additional discussion in “—Segment Results of Operations” below; and
Current report
o
Current report
When excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, Adjusted EBITDA related to the Pharmacy Solutions segment increased 12.5% compared to consolidated Adjusted EBITDA of $119.2 million in the second fiscal quarter of 2023.
Current report
n.m.: not meaningful
Current report
Revenues were $5,306.8 million for the six months ended June 30, 2024, as compared with $4,195.1 million for the six months ended June 30, 2023, an increase of $1,111.7 million or 26.5%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current report
Cost of goods was $3,738.9 million for the six months ended June 30, 2024, as compared with $2,716.2 million for the six months ended June 30, 2023, an increase of $1,022.6 million or 37.6%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current report
Cost of services was $809.6 million for the six months ended June 30, 2024, as compared with $772.1 million for the six months ended June 30, 2023, an increase of $37.5 million or 4.9%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current report
Selling, general, and administrative expenses were $687.9 million for the six months ended June 30, 2024, as compared with $575.6 million for the six months ended June 30, 2023, an increase of $112.3 million or 19.5%. The increase primarily resulted from the following segment activity and factors:
Current report
an increase of $24.3 million, or 4.2% growth on consolidated 2023 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Current report
Interest Expense, net
Current report
Income Tax Benefit
Current report
Adjusted EBITDA (1)
Current report
Adjusted EBITDA was $269.6 million for the six months ended June 30, 2024, as compared with $264.7 million for the six months ended June 30, 2023, an increase of $4.9 million or 1.9%. When excluding the approximately $30 million QIP received in 2023, Adjusted EBITDA increased $35.1 million or 15.0%. The increase of $4.9 million primarily resulted from the following segment activity and factors:
Current report
an decrease of $9.5 million, or 3.6% decline on consolidated 2023 Adjusted EBITDA, as a result of a decline in our Pharmacy Solutions segment primarily attributable to not receiving a QIP in 2024. See additional discussion in “—Segment Results of Operations” below; and,
Current report
o
Current report
When excluding the approximately $30 million QIP received in 2023, consolidated Adjusted EBITDA related to the Pharmacy Solutions segment increased 8.9% compared to consolidated Adjusted EBITDA of $234.5 million in 2023.
Current report
a decrease of $13.9 million, or 5.2% decline on consolidated 2023 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Current report
Revenues were $2,114.5 million for the three months ended June 30, 2024, as compared with $1,596.8 million for the three months ended June 30, 2023, an increase of $517.7 million or 32.4%. The increase primarily resulted from volume growth in prescriptions dispensed across and within the Pharmacy Solutions segment. Revenues attributable to Infusion and Specialty Pharmacy was $1,586.1 million for the three months ended June 30, 2024, as compared with $1,130.3 million for the three months ended June 30, 2023, an increase of $455.8 million or 40.3% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy was $528.4 million for the three months ended June 30, 2024, as compared with $466.5 million for the three months ended June 30, 2023, an increase of $61.9 million or 13.3% attributable to volume growth.
Current report
Gross profit was $182.7 million for the three months ended June 30, 2024, as compared with $187.6 million for the three months ended June 30, 2023, a decrease of $4.9 million or 2.6%. The decrease primarily resulted from outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins, and the QIP received in the second fiscal quarter of 2023 for which there was no comparable in 2024. When excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, gross profit increased 16.1% compared to gross profit of $157.4 million in the second fiscal quarter of 2023.
Current report
Selling, general, and administrative expenses were $115.5 million for the three months ended June 30, 2024, as compared with $106.5 million for the three months ended June 30, 2023, an increase of $8.9 million or 8.4%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Current report
Segment EBITDA was $94.5 million for the three months ended June 30, 2024, as compared with $109.8 million for the three months ended June 30, 2023, a decrease of $15.3 million or 13.9%. The decrease primarily resulted from the QIP received in the second fiscal quarter of 2023 that was not received in the comparable period. When excluding the approximately $30 million QIP received in the second fiscal quarter of 2023, segment EBITDA increased 18.7% compared to segment EBITDA of $79.6 million in the second fiscal quarter of 2023. See Note 14 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current report
Revenues were $4,091.5 million for the six months ended June 30, 2024, as compared with $3,063.8 million for the six months ended June 30, 2023, an increase of $1,027.7 million or 33.5%. The increase primarily resulted from volume growth in prescriptions dispensed across and within the Pharmacy Solutions segment. Revenues attributable to Infusion and Specialty Pharmacy was $3,051.7 million for the six months ended June 30, 2024, as compared with $2,151.2 million for the six months ended June 30, 2023, an increase of $900.5 million or 41.9% attributable to an increase in prescriptions dispensed on certain specialty branded drugs. Revenues attributable to Home and Community Pharmacy was $1,039.8 million for the six months ended June 30, 2024, as compared with $912.6 million for the six months ended June 30, 2023, an increase of $127.2 million or 13.9% attributable to volume growth.
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Removed paragraphs (30)
Previous report
Completion of our Initial Public Offering on January 30, 2024
Previous report
Paydown and modification of our First Lien Facility
Previous report
$63.3 million of equity awards granted to management in connection with our IPO
Previous report
Financial Performance Highlights: First Quarter of 2024 Compared to First Quarter of 2023
Previous report
Revenue grew by $548.3 million, or 27.0% to $2.6 billion
Previous report
Net loss increased by $24.1 million to $46.4 million
Previous report
Adjusted EBITDA(1) increased by $15.2 million, or 13.2%, to $130.5 million
Previous report
Pharmacy Solutions Segment EBITDA grew by $5.9 million, or 7.1%, to $88.2 million
Previous report
Loss per share increased from $(0.18) to $(0.26)
Previous report
Adjusted EPS(1) increased by $0.22 from $(0.10) to $0.12
Previous report
Change Healthcare Cybersecurity Incident
Previous report
The Company uses Change Healthcare, a subsidiary of UnitedHealth Group, to submit certain patient claims, primarily within our Pharmacy Solutions reportable segment, to Medicare and other payors for reimbursement. On February 22, 2024, UnitedHealth Group announced that on February 21, 2024, Change Healthcare’s information technology systems were impacted by a cybersecurity incident. The Change Healthcare cybersecurity incident did not impact our day-to-day operations; however, we were delayed in submitting patient claims to certain payors. As of the date of this filing, we are substantially caught up with our claim submissions; however, the delays in submitting claims resulted in a reduction of our operating cash flow and an estimated increase to our accounts receivable of approximately $20.0 million for the three months ended March 31, 2024.
Previous report
Cost of Goods
Previous report
Cost of Services
Previous report
Selling, general, and administrative expenses were $361.3 million for the three months ended March 31, 2024, as compared with $283.2 million for the three months ended March 31, 2023, an increase of $78.2 million or 27.6%. The increase primarily resulted from the following segment activity and factors:
Previous report
an increase of $9.9 million, or 3.5% growth on consolidated 2023 selling, general, and administrative expenses, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below;
Previous report
Included within selling, general, and administrative expenses for the three months ended March 31, 2024 were $0.6 million of certain pre-opening startup costs associated with our corporate de novo program as compared with $1.2 million for the three months ended March 31, 2023. The costs are attributable to certain strategic initiatives, and include costs incurred prior to opening de novo locations in connection with our expansion into specific new geographies, and fluctuate based on the number, timing and geographic footprint of new locations.
Previous report
Adjusted EBITDA was $130.5 million for the three months ended March 31, 2024, as compared with $115.3 million for the three months ended March 31, 2023, an increase of $15.2 million or 13.2%. The increase primarily resulted from the following segment activity and factors:
Previous report
Revenues were $1,977.0 million for the three months ended March 31, 2024, as compared with $1,467.0 million for the three months ended March 31, 2023, an increase of $510.0 million or 34.8%. The increase primarily resulted from volume growth partially offset by mix shifts across and within the Pharmacy Solutions segment resulting in decreased rates. Revenue attributable to Infusion and Specialty Pharmacy was $1,465.6 million for the three months ended March 31, 2024, as compared with $1,020.9 million for the three months ended March 31, 2023, an increase of $444.7 million or 43.6% attributable to an increase in prescriptions on certain specialty branded drugs. Revenue attributable to Home and Community Pharmacy was $511.4 million for the three months ended March 31, 2024, as compared with $446.1 million for the three months ended March 31, 2023, an increase of $65.3 million or 14.6%.
Previous report
Cost of Goods
Previous report
Selling, general, and administrative expenses were $109.0 million for the three months ended March 31, 2024, as compared with $106.3 million for the three months ended March 31, 2023, an increase of $2.7 million or 2.6%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Previous report
Segment EBITDA
Previous report
Segment EBITDA was $88.2 million for the three months ended March 31, 2024, as compared with $82.3 million for the three months ended March 31, 2023, an increase of $5.9 million or 7.1%. The increase primarily resulted from the aforementioned revenue and gross profit growth in the period. See Note 14 “Segment Information” to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Previous report
Cost of Services
Previous report
Selling, general, and administrative expenses were $134.4 million for the three months ended March 31, 2024, as compared with $127.2 million for the three months ended March 31, 2023, an increase of $7.2 million or 5.7%. The increase primarily resulted from the aforementioned revenue growth in the period with selling, general, and administrative expenses growing less than the volume growth rate and demonstrating economies of scale.
Previous report
Segment EBITDA
Previous report
a decrease of $20.0 million in cash inflows due to delayed cash collections of receivables as a result of the Change Healthcare cybersecurity event that occurred in the first fiscal quarter of 2024;
Previous report
an increase in cash paid for income taxes of $7.5 million; offset by
Previous report
Recent Accounting Pronouncements
Previous report
Refer to Note 1 “Significant Accounting Policies” within our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q for further discussion.
Reworded paragraphs (59)
Previous wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, which includes Behavioral populations, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states, we serve over 400,000 patients daily through our approximately 10,000 clinical providers and pharmacists, and our services make a profound impact in the lives and communities of the people we serve.
Current wording
We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, which includes Behavioral populations, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states, we serve over 400,000 patients daily through over 10,000 clinical providers and pharmacists, and our services make a profound impact in the lives and communities of the people we serve.
Previous wording
First Quarter of 2024 Key Highlights
Current wording
Second Quarter of 2024 Key Highlights
Previous wording
Pharmacy Solutions segment revenue grew by $510.0 million, or 34.8%, to $2.0 billion
Current wording
Pharmacy Solutions segment revenue grew by $517.7 million, or 32.4%, to $2.1 billion
Previous wording
Provider Services segment revenue grew by $38.2 million, or 6.8%, to $599.6 million
Current wording
Provider Services segment revenue grew by $45.8 million, or 8.0%, to $615.7 million
Previous wording
Provider Services Segment EBITDA grew by $16.6 million, or 25.4%, to $81.9 million
Current wording
Provider Services segment EBITDA grew by $11.7 million, or 15.7%, to $86.0 million
Previous wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 13% and 15% of total Company revenue for the three months ended March 31, 2024 and 2023, respectively. We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 53% of total Company revenue for the three months ended March 31, 2024 and 2023. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Current wording
We are characterized by payor diversification across our platform. Our payors are principally federal, state, and local governmental agencies, commercial insurance, private, and other payors. Additionally, our Medicaid payors can be further broken down across each individual state with our top 10 Medicaid states representing 12% of total Company revenue for the three and six months ended June 30, 2024, compared to 15% and 14% for the three and six months ended June 30, 2023, respectively.
Previous wording
See Note 2 of the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for more information regarding revenue by payor type for each segment for the three months ended March 31, 2024 and 2023.
Current wording
See Note 2 of the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for more information regarding revenue by payor type for each reportable segment for the three and six months ended June 30, 2024 and 2023.
Previous wording
We focus on providing health-dependent medications in a timely and well-supported manner to our patients receiving pharmacy solutions in their home and community-based settings. Our pharmacy services are primarily delivered directly to patients in their place of residence, home, or stay, and sometimes in a clinic setting. According to industry reports, pharmacy solutions delivered to and tailored for the home environment, such as home infusion services, oncology services, and daily medication management services in the home, will continue to grow faster than the overall and general pharmacy market. We have continued to expand our pharmacy capabilities to serve this need. Overall, our pharmacy has grown patient census and prescriptions by 11% and 9%, respectively, in the first fiscal quarter of 2024 compared to the first fiscal quarter of 2023. We are a leading independent pharmacy provider in our respective pharmacy patient markets, and we expect to continue to increase our share, including home infusion patients, specialty oncology patients, behavioral patients, in-home Seniors, and hospice patients.
Current wording
We focus on providing health-dependent medications in a timely and well-supported manner to our patients receiving pharmacy solutions in their home and community-based settings. Our pharmacy services are primarily delivered directly to patients in their place of residence, home, or stay, and sometimes in a clinic setting. According to industry reports, pharmacy solutions delivered to and tailored for the home environment, such as home infusion services, oncology services, and daily medication management services in the home, will continue to grow faster than the overall and general pharmacy market. We have continued to expand our pharmacy capabilities to serve this need. Overall, our pharmacy has grown patient census and prescriptions by 10% and 9%, respectively, in the second fiscal quarter of 2024 compared to the second fiscal quarter of 2023. We are a leading independent pharmacy provider in our respective pharmacy patient markets, and we expect to continue to increase our share, including home infusion patients, specialty oncology patients, behavioral patients, in-home Seniors, and hospice patients.
Previous wording
Quality and compliance are central to our strategies and mission. We have demonstrated leading and excellent service and customer/patient/family satisfaction scores across the organization, as referenced in prior filings such as our Form 10-K. In addition to quality and compliance resources and programs in field operations, we invest over $200 million a year in people, training, auditing, signature programs, accreditations, advocacy, and technologies to support quality, compliance, and safety as part of our “Quality First” framework. We have demonstrated consistently high and often leading marks for service levels, satisfaction scores, and quality metrics in our industries.
Current wording
Quality and compliance are central to our strategies and mission. We have demonstrated leading and excellent service and customer/patient/family satisfaction scores across the organization, as referenced in prior filings such as our Form 10-K. In addition to quality and compliance resources and programs in field operations, we invest in people, training, auditing, signature programs, accreditations, advocacy, and technologies to support quality, compliance, and safety as part of our “Quality First” framework. We have demonstrated consistently high and often leading marks for service levels, satisfaction scores, and quality metrics in our industries.
Previous wording
In the first fiscal quarter of 2024, we opened 14 de novo offices (branches/agencies) and clinics in new locations across our pharmacy and provider services. We typically identify and open new locations within proximity of an existing location as we leverage existing market knowledge and presence to expand in target markets, regions, and states. Our internal support resources in real estate, purchasing, IT, credentialing, payor contracting, HR, and sales and marketing, along with our Project Management Office, help to support and manage de novo locations from start to opening. We expect to continue to selectively and strategically expand our footprint within the United States and extend our service offerings to our patients and for customers, referral sources, and payors, and we believe de novo investments facilitate more integrated care capability and are a meaningful organic growth driver for the Company.
Current wording
In the second fiscal quarter of 2024, we opened four de novo offices (branches/agencies) and clinics in new locations across our pharmacy and provider services. We typically identify and open new locations within proximity of an existing location as we leverage existing market knowledge and presence to expand in target markets, regions, and states. Our internal support resources in real estate, purchasing, IT, credentialing, payor contracting, HR, and sales and marketing, along with our Project Management Office, help to support and manage de novo locations from start to opening. We expect to continue to selectively and strategically expand our footprint within the United States and extend our service offerings to our patients and for customers, referral sources, and payors, and we believe de novo investments facilitate more integrated care capability and are a meaningful organic growth driver for the Company.
Previous wording
We granted approximately $63.3 million in non-cash share-based compensation with respect to equity awards to our management and certain other full-time employees in January 2024 at the time of the IPO Offerings. Additionally, we expect to grant approximately 7.7 million restricted stock units to certain full-time employees starting in the second quarter of fiscal year 2024 as previously disclosed in connection with the IPO.
Current wording
We granted approximately $63.3 million in non-cash share-based compensation with respect to equity awards to our management and certain other full-time employees in January 2024 at the time of the IPO Offerings. Additionally, as previously disclosed in connection with the IPO, we granted approximately $100.0 million in non-cash share-based compensation with respect to equity awards, which equates to approximately 7.7 million restricted stock units, to certain full-time employees in the second quarter of fiscal year 2024.
Previous wording
In November 2023, the Company agreed to settle the Silver matter without admitting liability, as discussed under Item 3. “Legal Proceedings”. The settlement agreement is subject to the approval of the United States Department of Justice and the District Court. The estimated financial impact increased from $115.0 million as of December 31, 2023 to $120.0 million as of March 31, 2024. The $5.0 million change is an estimate of increased costs associated with settling the claim and is included in selling, general, and administrative expenses in the unaudited condensed consolidated statement of operations for the three months ended March 31, 2024. See Note 10 “Commitments and Contingencies” within the unaudited condensed consolidated financial statements and related notes, included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
In November 2023, the Company agreed to settle the Silver matter without admitting liability, as discussed under Part I, Item 3. “Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2023. On May 29, 2024, the parties entered into a final settlement agreement, which was approved by both the United States Department of Justice and the District Court. The total financial impact of the settlement is $120.0 million. The District Court entered an order dismissing the Silver action in its entirety, with prejudice, on July 3, 2024. See Note 10 “Commitments and Contingencies” within the unaudited condensed consolidated financial statements and related notes, included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
On May 11, 2023, the Department of Health and Human Services declared the COVID-19 pandemic is no longer a public health emergency. New variants could affect our operations for an extended period; however, at this time we cannot confidently forecast the duration or the ultimate financial impact on our operations, should such an impact occur. In the three months ended March 31, 2024, the Company received no funds from the Provider Relief Fund (“PRF”) and recognized no income related to the program. The Company received and recognized into income $18.8 million from the PRF for the three months ended March 31, 2023. The income recognized was offset directly by the expenses incurred within selling, general, and administrative expenses in our unaudited condensed consolidated statement of operations, which resulted in no net financial impact to the Company.
Current wording
On May 11, 2023, the Department of Health and Human Services declared the COVID-19 pandemic is no longer a public health emergency. New variants could affect our operations for an extended period; however, at this time we cannot confidently forecast the duration or the ultimate financial impact on our operations, should such an impact occur. In the three and six months ended June 30, 2024 and the three months ended June 30, 2023, the Company received no funds from the Provider Relief Fund (“PRF”) and recognized no income related to the program. The Company received and recognized into income $18.8 million from the PRF for the six months ended June 30, 2023. The income recognized was offset directly by the expenses incurred within selling, general, and administrative expenses in our unaudited condensed consolidated statement of operations, which resulted in no net financial impact to the Company.
Previous wording
Revenues were $2,576.6 million for the three months ended March 31, 2024, as compared with $2,028.4 million for the three months ended March 31, 2023, an increase of $548.3 million or 27.0%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Current wording
Revenues were $2,730.2 million for the three months ended June 30, 2024, as compared with $2,166.7 million for the three months ended June 30, 2023, an increase of $563.5 million or 26.0%. The increase resulted from growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of goods was $1,807.1 million for the three months ended March 31, 2024, as compared with $1,307.0 million for the three months ended March 31, 2023, an increase of $500.1 million or 38.3%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of goods was $1,931.8 million for the three months ended June 30, 2024, as compared with $1,409.2 million for the three months ended June 30, 2023, an increase of $522.5 million or 37.1%. The increase resulted from an increase in Pharmacy Solutions cost of goods. See additional discussion in “—Segment Results of Operations” below.
Previous wording
Cost of services was $400.1 million for the three months ended March 31, 2024, as compared with $386.7 million for the three months ended March 31, 2023, an increase of $13.5 million or 3.5%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Current wording
Cost of services was $409.4 million for the three months ended June 30, 2024, as compared with $385.4 million for the three months ended June 30, 2023, an increase of $24.0 million or 6.2%. The increase resulted from an increase in Provider Services cost of services. See additional discussion in “—Segment Results of Operations” below.
Previous wording
an increase of $8.6 million, or 3.0% growth on consolidated 2023 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year.
Current wording
an increase of $5.1 million, or 1.8% growth on consolidated 2023 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year.
Previous wording
a decrease of $7.2 million, or 6.2% decline on consolidated 2023 Adjusted EBITDA, as a result of increased corporate expenses incurred primarily due to investments in information technology and positions to support growth within the business.
Current wording
a decrease of $6.7 million, or 4.5% decline on consolidated 2023 Adjusted EBITDA, as a result of increases in certain public company costs incurred, investments in information technology, and positions to support growth within the business.
Previous wording
an increase of $42.1 million, or 14.9% growth on consolidated 2023 selling, general, and administrative expenses, as a result of our IPO Offerings and are not expected to recur. These expenses include $22.7 million of termination fees we will pay to the Managers in connection with the termination of our Monitoring Agreement; $15.0 million of previously unrecognized non-cash share-based compensation expense related to performance-vesting options, which vested upon the IPO; and $4.4 million of non-capitalizable offering costs;
Current wording
an increase of $43.2 million, or 7.5% growth on consolidated 2023 selling, general, and administrative expenses, as a result of our IPO Offerings and are therefore not expected to reoccur. These expenses include $22.7 million of termination fees we will pay to the Managers in connection with the termination of our Monitoring Agreement; $15.0 million of previously unrecognized non-cash share-based compensation expense related to performance-vesting options, which vested upon the IPO; and $5.5 million of non-capitalizable offering costs;
Previous wording
an increase of $8.1 million, or 2.9% growth on consolidated 2023 selling, general, and administrative expenses, due to non-cash share-based compensation related to the new equity awards granted to management in conjunction with the IPO;
Current wording
an increase of $21.4 million, or 3.7% growth on consolidated 2023 selling, general, and administrative expenses, due to non-cash share-based compensation related to the new equity awards granted to management and certain full-time employees in conjunction with the IPO;
Previous wording
an increase of $9.5 million, or 3.4% growth on consolidated 2023 selling, general, and administrative expenses, due to a change in estimate of legal settlements and defense costs related to two historical PharMerica litigation matters; and
Current wording
an increase of $12.0 million, or 2.1% growth on consolidated 2023 selling, general, and administrative expenses, due to a change in estimate of legal settlements and defense costs related to certain historical PharMerica litigation matters; and
Previous wording
During the three months ended March 31, 2024, we used proceeds from the IPO Offerings to repay the Second Lien on January 30, 2024 and as a result incurred a loss on extinguishment of debt of $12.7 million related to the write-off of unamortized debt issuance costs. There was no loss on extinguishment of debt recognized for the three months ended March 31, 2023.
Current wording
During the six months ended June 30, 2024, we used proceeds from the IPO Offerings to repay the Second Lien on January 30, 2024 and, as a result, incurred a loss on extinguishment of debt of $12.7 million related to the write-off of unamortized debt issuance costs. There was no loss on extinguishment of debt recognized for the six months ended June 30, 2023.
Previous wording
Interest expense, net was $65.0 million for the three months ended March 31, 2024, as compared with $78.2 million for the three months ended March 31, 2023, a decrease of $13.2 million or 16.8%. The decrease primarily resulted from lower outstanding term debt as compared to the prior period and a $4.5 million increase in interest income related to cash flow hedges of interest rate risk from $5.1 million of interest income for the three months ended March 31, 2023 to $9.6 million for the three months ended March 31, 2024. The Company's outstanding term debt decreased in the first fiscal quarter of 2024 due to the paydowns on our term debt using proceeds from the IPO Offerings.
Current wording
Interest expense, net was $117.5 million for the six months ended June 30, 2024, as compared with $157.9 million for the six months ended June 30, 2023, a decrease of $40.4 million or 25.6%. The decrease primarily resulted from lower outstanding term debt as compared to the prior period and a $6.4 million increase in interest income related to cash flow hedges of interest rate risk from $12.7 million of interest income for the six months ended June 30, 2023 to $19.1 million for the six months ended June 30, 2024. The Company's outstanding term debt decreased in the first fiscal quarter of 2024 due to the paydowns on our term debt using proceeds from the IPO Offerings.
Previous wording
Income tax benefit was $23.3 million for the three months ended March 31, 2024, as compared to $4.3 million for the three months ended March 31, 2023, an increase of $19.0 million. The increase in the income tax benefit is attributable to an increase in the pre-tax book loss for the three months ended March 31, 2024 as compared to three months ended March 31, 2023, and an increase in the effective tax rate for the three months ended March 31, 2024 of 33.4% compared to 16.3% for the three months ended March 31, 2023. The increase in the effective tax rate is primarily due to limitations on the deductibility of certain executive compensation that now apply to the Company after the IPO Offerings.
Current wording
Income tax benefit was $32.8 million for the six months ended June 30, 2024, as compared to $7.2 million for the six months ended June 30, 2023, an increase of $25.6 million. The increase in the income tax benefit is attributable to an increase in the pre-tax book loss for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, and an increase in the effective tax rate for the six months ended June 30, 2024 of 54.9% compared to 26.9% for the six months ended June 30, 2023. The increase in the effective tax rate is primarily due to limitations on the deductibility of certain executive compensation that now apply to the Company upon completion of its IPO in January 2024, as well as the discrete tax benefit recognized in the period related to the Silver matter that was finalized during the second fiscal quarter of 2024. See Note 10 within the unaudited condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q for additional information on the matter.
Previous wording
Net loss was $46.4 million for the three months ended March 31, 2024, as compared with $22.3 million for the three months ended March 31, 2023, an increase of $24.1 million. Net loss for the first fiscal quarter of 2024 includes the aforementioned $42.1 million of expense related to non-recurring costs directly associated with the IPO Offerings. Additionally, the Company incurred a write-off of $12.7 million of unamortized debt issuance costs upon the extinguishment of the Second Lien and $8.1 million of non-cash share-based compensation expense related to new equity awards granted to management in connection with the IPO Offerings. The increase in expenses is offset by the aforementioned decrease in interest expense, net, increase in revenue, and change in income tax benefit.
Current wording
Net loss was $26.9 million for the six months ended June 30, 2024, as compared with $19.5 million for the six months ended June 30, 2023, an increase of $7.4 million. Net loss for 2024 includes the aforementioned $42.7 million of expense related to non-recurring costs directly associated with the IPO Offerings. Additionally, the Company incurred a write-off of $12.7 million of unamortized debt issuance costs upon the extinguishment of the Second Lien and $21.4 million of non-cash share-based compensation expense related to new equity awards granted to management and certain full-time employees in connection with the IPO Offerings. The increase in expenses is offset by the aforementioned decrease in interest expense, net, increase in revenues, and increase in income tax benefit. When excluding the approximately $30 million QIP received in 2023, net loss decreased by $22.8 million compared to a net loss of $49.7 million in 2023.
Previous wording
an increase of $22.4 million, or 19.4% growth on consolidated 2023 Adjusted EBITDA, as a result of growth in our Pharmacy Solutions and Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by,
Current wording
an increase of $28.3 million, or 10.7% growth on consolidated 2023 Adjusted EBITDA, as a result of growth in our Provider Services segments. See additional discussion in “—Segment Results of Operations” below; offset by,
Previous wording
Cost of goods was $1,807.1 million for the three months ended March 31, 2024, as compared with $1,307.0 million for the three months ended March 31, 2023, an increase of $500.1 million or 38.3%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Current wording
Cost of goods was $1,931.8 million for the three months ended June 30, 2024, as compared with $1,409.2 million for the three months ended June 30, 2023, an increase of $522.5 million or 37.1%. The increase primarily resulted from the aforementioned revenue growth in the period as well as an increase in cost per prescription dispensed as a result of mix shift.
Previous wording
Gross profit margin for the three months ended March 31, 2024 was 8.6% compared to 10.9% for the three months ended March 31, 2023. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, and an increase in the fulfillment cost per script in Home and Community Pharmacy.
Current wording
Gross profit margin for the three months ended June 30, 2024 was 8.6% compared to 11.7% for the three months ended June 30, 2023. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, an increase in the fulfillment cost per script in Home and Community Pharmacy, and the QIP received in the second fiscal quarter of 2023 for which there was no comparable in 2024. When excluding the aforementioned QIP, gross profit margin was 10.0% for the three months ended June 30, 2023.
Previous wording
Gross profit was $169.9 million for the three months ended March 31, 2024, as compared with $160.0 million for the three months ended March 31, 2023, an increase of $9.9 million or 6.2%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins.
Current wording
Gross profit was $352.7 million for the six months ended June 30, 2024, as compared with $347.6 million for the six months ended June 30, 2023, an increase of $5.1 million or 1.5%. The increase primarily resulted from the aforementioned revenue growth in the period, primarily the result of outsized volume growth as well as mix in certain specialty branded drugs, which have lower margins, partially offset the QIP received in 2023 for which there was no comparable in 2024. When excluding the approximately $30 million QIP received in 2023, gross profit increased 11.1% compared to gross profit of $317.4 million in 2023.
Previous wording
Revenues were $599.6 million for the three months ended March 31, 2024, as compared with $561.4 million for the three months ended March 31, 2023, an increase of $38.2 million or 6.8%. The increase primarily resulted from volume growth as well as rate increases received during the period. Revenue attributable to Home Health Care was $242.0 million for the three months ended March 31, 2024, as compared with $222.9 million for the three months ended March 31, 2023, an increase of $19.1 million or 8.6%. Revenue attributable to Community and Rehab Care was $357.6 million for the three months ended March 31, 2024, as compared with $338.5 million for the three months ended March 31, 2023, an increase of $19.1 million or 5.6%.
Current wording
Revenues were $615.7 million for the three months ended June 30, 2024, as compared with $569.9 million for the three months ended June 30, 2023, an increase of $45.8 million or 8.0%. The increase primarily resulted from volume growth as well as rate increases received during the period. Revenues attributable to Home Health Care was $253.8 million for the three months ended June 30, 2024, as compared with $224.7 million for the three months ended June 30, 2023, an increase of $29.1 million or 13.0%. Revenues attributable to Community and Rehab Care was $361.9 million for the three months ended June 30, 2024, as compared with $345.2 million for the three months ended June 30, 2023, an increase of $16.7 million or 4.8%.
Previous wording
Cost of services was $400.1 million for the three months ended March 31, 2024, as compared with $386.7 million for the three months ended March 31, 2023, an increase of $13.5 million or 3.5%. The increase primarily resulted from the aforementioned revenue growth and included operational improvements resulting in lower costs of services increases compared to revenue growth.
Current wording
Cost of services was $409.4 million for the three months ended June 30, 2024, as compared with $385.4 million for the three months ended June 30, 2023, an increase of $24.0 million or 6.2%. The increase primarily resulted from the aforementioned revenue growth and included operational improvements resulting in lower costs of services increases compared to revenue growth.
Previous wording
Gross profit was $199.5 million for the three months ended March 31, 2024, as compared with $174.7 million for the three months ended March 31, 2023, an increase of $24.8 million or 14.2%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.
Current wording
Gross profit was $206.3 million for the three months ended June 30, 2024, as compared with $184.5 million for the three months ended June 30, 2023, an increase of $21.8 million or 11.8%. The increase primarily resulted from the aforementioned revenue growth and costs of services improvements in the period.
Previous wording
Segment EBITDA was $81.9 million for the three months ended March 31, 2024, as compared with $65.3 million for the three months ended March 31, 2023, an increase of $16.6 million or 25.4%. The increase primarily resulted from the aforementioned revenue growth and operational improvements impacting cost of services. See Note 14 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Current wording
Segment EBITDA was $86.0 million for the three months ended June 30, 2024, as compared with $74.4 million for the three months ended June 30, 2023, an increase of $11.7 million or 15.7%. The increase primarily resulted from the aforementioned revenue growth and operational improvements impacting cost of services. See Note 14 “Segment Information" to our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q for further discussion.
Previous wording
In addition to our results of operations prepared in accordance with U.S. GAAP, which we have discussed above, we also evaluate our financial performance using EBITDA, Adjusted EBITDA, and Adjusted earnings per share (“EPS”). These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net (loss) income and diluted EPS. Rather, we present EBITDA, Adjusted EBITDA, and Adjusted EPS as supplemental measures of our performance.
Current wording
In addition to our results of operations prepared in accordance with U.S. GAAP, which we have discussed above, we also evaluate our financial performance using EBITDA, Adjusted EBITDA, and Adjusted EPS. These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income (loss) and diluted EPS. Rather, we present EBITDA, Adjusted EBITDA, and Adjusted EPS as supplemental measures of our performance.
Previous wording
The following are key financial metrics and, when used in conjunction with U.S. GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. We define EBITDA as net (loss) income before income tax (benefit) expense, interest expense, net, and depreciation and amortization. Adjusted EBITDA and Adjusted EPS exclude certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including non-cash, share-based compensation; acquisition, integration, and transaction-related costs; restructuring and divestiture-related and other costs; goodwill impairment; legal costs associated with certain historical matters for PharMerica and settlement costs; significant projects; management fees; and unreimbursed COVID-19 related costs. In determining which adjustments are made to arrive at Adjusted EBITDA and Adjusted EPS, management considers both (1) certain non-recurring, infrequent, non-cash, or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which management does not believe are indicative of our core operating performance. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EBITDA is net (loss) income. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EPS is diluted EPS.
Current wording
The following are key financial metrics and, when used in conjunction with U.S. GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. We define EBITDA as net income (loss) before income tax benefit, interest expense, net, and depreciation and amortization. Adjusted EBITDA and Adjusted EPS exclude certain other items that are either non-recurring, infrequent, non-cash, unusual, or items deemed by management to not be indicative of the performance of our core operations, including non-cash, share-based compensation; acquisition, integration, and transaction-related costs; restructuring and divestiture-related and other costs; goodwill impairment; legal costs associated with certain historical matters for PharMerica and settlement costs; significant projects; management fees; and unreimbursed COVID-19 related costs. In determining which adjustments are made to arrive at Adjusted EBITDA and Adjusted EPS, management considers both (1) certain non-recurring, infrequent, non-cash, or unusual items, which can vary significantly from year to year, as well as (2) certain other items that may be recurring, frequent, or settled in cash but which management does not believe are indicative of our core operating performance. The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EBITDA is net income (loss). The financial measure calculated under U.S. GAAP which is most directly comparable to Adjusted EPS is diluted EPS.
Previous wording
The legal costs and settlements adjustment represents defense costs associated with certain PharMerica litigation matters associated with three cases, two of which remain outstanding as of March 31, 2024, that commenced prior to KKR Stockholder’s and Walgreen Stockholder’s acquisition of PharMerica in December 2017, as well as settlement costs associated with the Silver matter, which settled in November 2023. We have excluded legal costs associated with these PharMerica litigation matters from our Adjusted EBITDA and Adjusted EPS due to the magnitude of these cases and the costs attributable to them, the timing of the commencement of the cases and the fact that no similar cases have been brought against the Company since the acquisition of PharMerica, and the fact that these cases are unlike our routine legal and regulatory proceedings that we see in the normal course of business. Further, we have excluded settlement costs associated with the Silver matter from our Adjusted EBITDA and Adjusted EPS due to the magnitude of the case and the costs attributable to it, as well as the fact that the Silver matter is unlike our routine legal and regulatory proceedings that we see in the normal course of business.
Current wording
The legal costs and settlements adjustment represents defense costs associated with certain PharMerica litigation matters associated with three cases, two of which are being finalized as of June 30, 2024, that commenced prior to KKR Stockholder’s and Walgreen Stockholder’s acquisition of PharMerica in December 2017, as well as settlement costs associated with the Silver matter, which settled in November 2023. We have excluded defense costs associated with these PharMerica litigation matters from our Adjusted EBITDA and Adjusted EPS due to the magnitude of these cases and the costs attributable to them, the timing of the commencement of the cases and the fact that no similar cases have been brought against the Company since the acquisition of PharMerica, and the fact that these cases are unlike our routine legal and regulatory proceedings that we see in the normal course of business. Further, we have excluded settlement costs associated with the Silver matter from our Adjusted EBITDA and Adjusted EPS due to the magnitude of the case and the costs attributable to it, as well as the fact that the Silver matter is unlike our routine legal and regulatory proceedings that we see in the normal course of business.
Previous wording
EBITDA, Adjusted EBITDA, and Adjusted EPS are not measures of financial performance under U.S. GAAP and should be considered in addition to, and not as a substitute for, net (loss) income, earnings per diluted share or other financial measures performed in accordance with U.S. GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ financial measures and therefore may not be comparable to methods used by other companies.
Current wording
EBITDA, Adjusted EBITDA, and Adjusted EPS are not measures of financial performance under U.S. GAAP and should be considered in addition to, and not as a substitute for, net income (loss) , diluted EPS or other financial measures performed in accordance with U.S. GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ financial measures and therefore may not be comparable to methods used by other companies.
Previous wording
The following table reconciles net loss to EBITDA and Adjusted EBITDA:
Current wording
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA:
Previous wording
Represents non-cash share-based compensation to certain members of our management. The three months ended March 31, 2024 includes $8.1 million of costs related to new equity awards granted to management upon the completion of our IPO under the 2024 Stock Plan and $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, which vested upon completion of the IPO.
Current wording
Represents non-cash share-based compensation to certain members of our management and full-time employees. The three and six months ended June 30, 2024 includes $13.3 million and $21.4 million of costs, respectively, related to new equity awards granted upon the completion of our IPO under the 2024 Equity Incentive Plan. The six months ended June 30, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, which vested upon completion of the IPO.
Previous wording
Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation, and integration costs incurred including any facility consolidation, integration travel, or severance associated with the integration of an acquisition. These costs also included $4.4 million and $0.2 million of costs related to the IPO Offerings which were not capitalizable for the three months ended March 31, 2024 and 2023, respectively; and $0.1 million and $1.0 million of system implementation costs associated with the integration of acquisitions for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Represents transaction costs incurred in connection with planned, completed, or terminated acquisitions, which include investment banking fees, legal diligence and related documentation costs, finance and accounting diligence and documentation, and integration costs incurred including any facility consolidation, integration travel, or severance associated with the integration of an acquisition. These costs also included $1.1 million and $5.5 million of costs related to the IPO Offerings which were not capitalizable for the three and six months ended June 30, 2024, respectively, compared to $0.0 million and $0.2 million for the three and six months ended June 30, 2023, respectively; and system implementation costs associated with the integration of acquisitions of $0.1 million and $0.2 million for the three and six months ended June 30, 2024, respectively, compared to $0.5 million and $1.5 million for the three and six months ended June 30, 2023, respectively.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
We provide our services across all 50 states, Puerto Rico and Canada, with our top 10 states of operations comprising 52% and 45% of total Company revenues for the three and six months ended June 30, 2024, respectively, compared to 53% and 46% for the three and six months ended June 30, 2023, respectively. The federal, state, and local programs under which we operate are subject to legislative and budgetary changes that can influence reimbursement rates.
Current report — wording carried from elsewhere
an increase of $13.3 million, or 4.5% growth on consolidated 2023 selling, general, and administrative expenses, due to non-cash share-based compensation related to the new equity awards granted to management and certain full-time employees in conjunction with the IPO; and
Current report — wording carried from elsewhere
Interest expense, net was $52.4 million for the three months ended June 30, 2024, as compared with $79.7 million for the three months ended June 30, 2023, a decrease of $27.2 million or 34.2%. The decrease primarily resulted from lower outstanding term debt as compared to the prior period and a $1.9 million increase in interest income related to cash flow hedges of interest rate risk from $7.6 million of interest income for the three months ended June 30, 2023 to $9.5 million for the three months ended June 30, 2024.
Current report — wording carried from elsewhere
The following table sets forth, for the periods indicated, our consolidated results of operations.
Current report — wording carried from elsewhere
The following discussion of our results of operations should be read in conjunction with the foregoing table summarizing our consolidated results of operations.
Current report — wording carried from elsewhere
an increase of $11.4 million, or 2.0% growth on consolidated 2023 selling, general, and administrative expenses, as a result of an increase in other operational expenses year-over-year.
Current report — wording carried from elsewhere
(1) Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures” in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
The following table sets forth, for the periods indicated, our segment results of operations.
Current report — wording carried from elsewhere
The following discussion of our Pharmacy Solutions segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.
Current report — wording carried from elsewhere
The increase in revenue per prescription dispensed is due to mix changes year-over-year and a greater relative increase in volume growth in certain specialty brand drugs, which carry a higher revenue per prescription dispensed.
Current report — wording carried from elsewhere
Gross profit margin for the six months ended June 30, 2024 was 8.6% compared to 11.3% for the six months ended June 30, 2023. The decrease in gross profit margin is due to mix shift in the Pharmacy Solutions segment with greater relative volume growth in Infusion and Specialty Pharmacy, along with product-level mix shifts, rate changes, an increase in the fulfillment cost per script in Home and Community Pharmacy, and the QIP received in 2023 for which there was no comparable in 2024. When excluding the aforementioned QIP, gross profit margin was 10.5% for the six months ended June 30, 2023.
Current report — wording carried from elsewhere
The following table sets forth, for the years indicated, our segment results of operations.
Current report — wording carried from elsewhere
The following discussion of our Provider Services segment results of operations should be read in conjunction with the foregoing table summarizing our segment results of operations.
Current report — wording carried from elsewhere
Cost of services was $809.6 million for the six months ended June 30, 2024, as compared with $772.1 million for the six months ended June 30, 2023, an increase of $37.5 million or 4.9%. The increase primarily resulted from the aforementioned revenue growth and included operational improvements resulting in lower costs of services increases compared to revenue growth.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Extinguishment of our Second Lien Facility
Previous report — wording carried elsewhere
Three Months Ended March 31, 2024 and 2023
Previous report — wording carried elsewhere
On March 5, 2019, the Company entered into a $450.0 million Second Lien Facility. Borrowings under the Second Lien Facility were subordinated to the First Lien Credit Agreement. On January 30, 2024, we used a portion of the net proceeds received from the