Aveanna Healthcare Holdings, Inc.

Previous wording

Our fiscal year ends on the Saturday that is closest to December 31 of a given year, resulting in either a 52-week or 53-week fiscal year. “Fiscal year 2024” refers to the 52-week fiscal year ending on December 28, 2024. “Fiscal year 2023” refers to the 52-week fiscal year ended on December 30, 2023. The “three-month period ended September 28, 2024”, or “third quarter of 2024” refers to the 13-week fiscal quarter ended on September 28, 2024. The “three-month period ended September 30, 2023” or “third quarter of 2023” refers to the 13-week fiscal quarter ended on September 30, 2023. The "nine-month period ended September 28, 2024", or "first nine months of 2024", refers to the period from December 31, 2023 through September 28, 2024. The "nine-month period ended September 30, 2023", or "first nine months of 2023", refers to the period from January 1, 2023 through September 30, 2023.

Current wording

Our fiscal year ends on the Saturday that is closest to December 31 of a given year, resulting in either a 52-week or 53-week fiscal year. “Fiscal year 2025” refers to the 53-week fiscal year ending on January 3, 2026. “Fiscal year 2024” refers to the 52-week fiscal year ended on December 28, 2024. The “three-month period ended March 29, 2025”, or “first quarter of 2025” refers to the 13-week fiscal quarter ended on March 29, 2025. The “three-month period ended March 30, 2024” or “first quarter of 2024” refers to the 13-week fiscal quarter ended on March 30, 2024.

Previous wording

Non-clinical care, including programs such as employer of record support services and personal care services.

Current wording

Non-clinical care, including programs such as support services and personal care services.

Previous wording

Home health total admissions represents the number of new patients who have begun receiving services. We review the number of home health admissions on a daily basis as we believe it is a leading indicator of our growth. We measure home health admissions by reimbursement structure, separating them into home health episodic admissions and fee-for-service admissions (other admissions), which allows us to better understand the payor mix of our home health business.

Current wording

Home health total admissions represents the number of new patients who have begun receiving services. We review the number of home health admissions on a daily basis as we believe it is a leading indicator of our growth. We measure home health admissions by reimbursement structure, separating them into home health episodic admissions, which are reimbursed for a fixed duration of care - typically 30 days, and other admissions, which primarily follow a per-visit reimbursement model. This allows us to better understand the payor mix of our home health business.

Previous wording

The following discussion of our results of operations should be read in conjunction with the foregoing tables summarizing our consolidated results of operations and key performance measures, as well as our audited consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023.

Current wording

The following discussion of our results of operations should be read in conjunction with the foregoing tables summarizing our consolidated results of operations and key performance measures, as well as our interim unaudited consolidated financial statements of operations contained in this Quarterly Report on Form 10-Q (our "Quarterly Financial Statements") and our audited consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024.

Previous wording

Operating income was $94.0 million for the nine-month period ended September 28, 2024, as compared to operating loss of $21.2 million for the nine-month period ended September 30, 2023, an increase of $115.2 million, or 543.0%.

Current wording

Operating income was $51.8 million, or 9.3% of revenue, for the three-month period ended March 29, 2025, as compared to operating income of $22.9 million for the three-month period ended March 30, 2024, an increase of $28.9 million.

Previous wording

Operating income for the third quarter of 2024 was positively impacted by an increase of $15.3 million, or 27.1%, in Field contribution, as compared to the third quarter of 2023. The $15.3 million increase in Field contribution resulted from a $31.0 million, or 6.5%, increase in consolidated revenue and a 2.2% increase in our Field contribution margin to 14.0% for the third quarter of 2024 from 11.8% for the third quarter of 2023. The primary driver of our higher Field contribution margin over the comparable quarter was an increase in gross margin percentage of 0.6%, along with a 1.7% decrease in branch and regional administrative expenses as a percentage of revenue to 17.3% for the third quarter of 2024 from 19.0% for the third quarter of 2023.

Current wording

Operating income for the first quarter of 2025 was positively impacted by an increase of $34.2 million, or 59.1%, in Field contribution, as compared to the first quarter of 2024. The $34.2 million increase in Field contribution resulted from a $68.6 million, or 14.0%, increase in consolidated revenue and a 4.7% increase in our Field contribution margin to 16.5% for the first quarter of 2025 from 11.8% for the first quarter of 2024. The primary driver of our higher Field contribution margin over the comparable quarter was an increase in gross margin percentage of 3.1%, along with a 1.6% decrease in branch and regional administrative expenses as a percentage of revenue to 16.3% for the first quarter of 2025 from 17.9% for the first quarter of 2024.

Previous wording

The following items primarily contributed to the $110.4 million increase in operating income over the comparable third quarter period:

Current wording

The following items primarily contributed to the $28.9 million increase in operating income over the comparable first quarter period:

Previous wording

a $2.2 million decrease in depreciation and amortization; offset by

Current wording

a $2.2 million decrease in other operating expense, offset by

Previous wording

Net loss for the three-month period ended September 28, 2024 was $42.8 million, as compared to net loss of $102.4 million for the three-month period ended September 30, 2023. The $59.5 million decrease in net loss was primarily driven by the following:

Current wording

Net income for the three-month period ended March 29, 2025 was $5.2 million, as compared to net loss of $11.2 million for the three-month period ended March 30, 2024. The $16.4 million increase in net income was primarily driven by the following:

Previous wording

Interest Expense, net of Interest Income

Current wording

a $3.3 million decrease in interest expense, net; and

Previous wording

an aggregate $36.4 million decrease in valuation gains on interest rate derivatives and net settlements received from interest rate derivative counterparties over the comparable quarter; and

Current wording

an aggregate $23.6 million decrease in valuation gains on interest rate derivatives and net settlements received from interest rate derivative counterparties over the comparable periods.

Previous wording

a $1.2 million, or 2.2%, increase in HHH revenue; and

Current wording

a $2.1 million, or 3.9%, increase in HHH revenue; and

Previous wording

Our PDS segment revenue growth of $24.8 million, or 6.4%, for thethree-month period ended September 28, 2024 was attributable to a 3.8% increase in volume and a 2.6% increase in revenue rate. The 3.8% increase in volume was primarily attributable to growth in demand for non-clinical services.

Current wording

Our PDS segment revenue growth of $65.0 million, or 16.5%, for thethree-month period ended March 29, 2025 was attributable to a 6.1% increase in volume and a 10.4% increase in revenue rate. The 6.1% increase in volume was primarily attributable to growth in demand for non-clinical services.

Previous wording

The 2.6% increase in PDS revenue rate for thethree-month period ended September 28, 2024, as compared to thethree-month period ended September 30, 2023, resulted primarily from reimbursement rate increases issued by various state Medicaid programs and Managed Medicaid payers and increases in value-based payments, offset by increases in implicit price concessions.

Current wording

The 10.4% increase in PDS revenue rate for thethree-month period ended March 29, 2025, as compared to thethree-month period ended March 30, 2024, resulted primarily from reimbursement rate increases issued by various state Medicaid programs and Managed Medicaid payers, including payments received in the current period related to certain rate increases applied retroactively and improved collections on fully reserved aged receivables.

Previous wording

Our HHH segment revenue increase of $1.2 million, or 2.2%, for thethree-month period ended September 28, 2024, as compared to thethree-month period ended September 30, 2023, resulted primarily from an increase in home health total episodes over the comparable period and an increase in home health revenue per completed episode due to improvements in home health episodic mix.

Current wording

Our HHH segment revenue increase of $2.1 million, or 3.9%, for thethree-month period ended March 29, 2025, as compared to thethree-month period ended March 30, 2024, resulted primarily from an increase in home health revenue per completed episode due to improvements in home health episodic mix.

Previous wording

The$5.1 million, or 12.6%, increase in MS segment revenue for thethree-month period ended September 28, 2024, as compared to thethree-month period ended September 30, 2023, was attributable to both an 8.1% increase in revenue rate and volume growth of 4.5% over the comparable period.

Current wording

The$1.5 million, or 3.6%, increase in MS segment revenue for thethree-month period ended March 29, 2025, as compared to thethree-month period ended March 30, 2024, was attributable to a 6.9% increase in revenue rate, partially offset by a decline in volume of 3.3% over the comparable period.

Previous wording

The 6.9% increase in PDS cost of revenue for thethree-month period ended September 28, 2024 resulted from the previously described 3.8% increase in PDS volume combined with a 3.1% increase in PDS cost of revenue rate. The 3.1% increase in cost of revenue rate primarily resulted from higher caregiver labor costs, including the pass-through of reimbursement rate increases.

Current wording

The 10.3% increase in PDS cost of revenue for thethree-month period ended March 29, 2025 resulted from the previously described 6.1% increase in PDS volume combined with a 4.2% increase in PDS cost of revenue rate. The 4.2% increase in cost of revenue rate primarily resulted from higher caregiver labor costs, including the pass-through of reimbursement rate increases.

Previous wording

The 9.6% decrease in HHH cost of revenue for thethree-month period ended September 28, 2024 was driven primarily by a decline in HHH non-episodic volumes and improvements in HHH caregiver utilization.

Current wording

The 1.4% increase in HHH cost of revenue for thethree-month period ended March 29, 2025 was driven primarily by higher caregiver labor costs.

Previous wording

The 7.8% increase in MS cost of revenue for thethree-month period ended September 28, 2024 was driven by the previously described 4.5% growth in MS volumes and a 3.3% increase in cost of revenue rate.

Current wording

The 0.3% increase in MS cost of revenue for thethree-month period ended March 29, 2025 was driven by the 3.6% increase in cost of revenue rate, offset by the previously described 3.3% decline in MS volumes.

Previous wording

Gross margin was $159.7 million, or 31.4% of revenue, for the three-month period ended September 28, 2024, as compared to $147.3 million, or 30.8% of revenue, for the three-month period ended September 30, 2023. Gross margin increased $12.4 million, or 8.4%, from the comparable prior year quarter. The 0.6% increase in gross margin percentage for the three-month period ended September 28, 2024 resulted from the combined changes in our revenue rates and cost of revenue rates in each of our segments, which we refer to as the change in our spread rate, as follows:

Current wording

Gross margin was $183.6 million, or 32.8% of revenue, for the three-month period ended March 29, 2025, as compared to $145.9 million, or 29.7% of revenue, for the three-month period ended March 30, 2024. Gross margin increased $37.7 million, or 25.9%, from the comparable prior year quarter. The 3.1% increase in gross margin percentage for the three-month period ended March 29, 2025 resulted from the combined changes in our revenue rates and cost of revenue rates in each of our segments, which we refer to as the change in our spread rate, as follows:

Previous wording

a 1.3% increase in PDS spread rate from $10.35 to $10.48 driven by the 2.6% increase in PDS revenue rate, net of the 3.1% increase in PDS cost of revenue rate;

Current wording

a 28.4% increase in PDS spread rate from $9.75 to $12.37 driven by the 10.4% increase in PDS revenue rate, net of the 4.2% increase in PDS cost of revenue rate;

Previous wording

a 14.3% increase in MS spread rate from $197.84 to $224.79 driven by the 8.1% increase in MS revenue rate, net of the 3.3% increase in MS cost of revenue rate; and

Current wording

a 11.6% increase in MS spread rate from $182.01 to $203.74 driven by the 6.9% increase in MS revenue rate, net of the 3.6% increase in MS cost of revenue rate; and

Previous wording

Operating income for the nine-month period of 2024 was positively impacted by an increase of $26.7 million, or 15.5%, in Field contribution as compared to the nine-month period of 2023. The $26.7 million increase in Field contribution resulted from a $88.3 million, or 6.2%, increase in consolidated revenue and a 1.1% increase in our Field contribution margin to 13.3% for the nine-month period of 2024 from 12.2% for the nine-month period of 2023. The primary driver of our higher Field contribution margin year over year was a 1.7% decrease in branch and regional administrative expenses as a percentage of revenue to 17.6% for the nine-month period of 2024 from 19.3% for the nine-month period of 2023 partially offset by a decrease in gross margin percentage of 0.8% over the comparable period.

Current wording

a 1.1% increase in gross margin percentage in our HHH segment.

Previous wording

The 3.1% decrease in branch and regional administrative expenses for thethree-month period ended September 28, 2024, as compared to thethree-month period ended September 30, 2023, was primarily due to the positive effects of restructuring portions of our branch and regional operating structure, which resulted in the overall 1.7% decrease in branch and regional administrative expenses as a percentage of revenue for the three-month period ended September 28, 2024, as compared to the three-month period ended September 30, 2023.

Current wording

The 4.0% increase in branch and regional administrative expenses for thethree-month period ended March 29, 2025, as compared to thethree-month period ended March 30, 2024, was primarily due to an increase in incentive compensation expense during the current three-month period due to improved forecasted performance compared to annual targets and the acceleration of certain non-cash share-based compensation awards during the quarter. The overall 1.6% decrease in branch and regional administrative expenses as a percentage of revenue for the three-month period ended March 29, 2025, as compared to the three-month period ended March 30, 2024, resulted from leveraging our branch and administrative expense structure as a result of our restructuring efforts.

Previous wording

Field contribution was $71.5 million, or 14.0% of revenue, for the three-month period ended September 28, 2024, as compared to $56.3 million, or 11.8% of revenue, for the three-month period ended September 30, 2023. Field contribution increased $15.3 million, or 27.1%, for the three-month period ended September 28, 2024, as compared to the three-month period ended September 30, 2023. The 2.2% increase in Field contribution margin for the three-month period ended September 28, 2024 resulted from the following:

Current wording

Field contribution was $92.2 million, or 16.5% of revenue, for the three-month period ended March 29, 2025, as compared to $57.9 million, or 11.8% of revenue, for the three-month period ended March 30, 2024. Field contribution increased $34.2 million, or 59.1%, for the three-month period ended March 29, 2025, as compared to the three-month period ended March 30, 2024. The 4.7% increase in Field contribution margin for the three-month period ended March 29, 2025 resulted from the following:

Previous wording

Corporate expenses were $31.9 million, or 6.3% of revenue, forthe three-month period ended September 28, 2024, as compared to $27.4 million, or 5.7% of revenue, forthe three-month period ended September 30, 2023. The $4.4 million, or 16.2%, increase in corporate expenses resulted primarily from higher compensation and benefits costs, non-cash share-based compensation, and professional services.

Current wording

Corporate expenses were $37.5 million, or 6.7% of revenue, forthe three-month period ended March 29, 2025, as compared to $29.8 million, or 6.1% of revenue, forthe three-month period ended March 30, 2024. The $7.7 million, or 25.7%, increase in corporate expenses resulted primarily from higher compensation and benefits costs and non-cash share-based compensation.

Previous wording

Depreciation and amortization was $2.6 million for the three-month period ended September 28, 2024, as compared to $3.0 million for the three-month period ended September 30, 2023, a decrease of $0.4 million, or 12.7%. The $0.4 million decrease primarily resulted from improved capital asset management.

Current wording

Depreciation and amortization was $2.6 million for the three-month period ended March 29, 2025, as compared to $2.9 million for the three-month period ended March 30, 2024, a decrease of $0.3 million, or 10.9%. The $0.3 million decrease primarily resulted from improved capital asset management.

Previous wording

Depreciation and amortization was $8.3 million for the nine-month period ended September 28, 2024, as compared to $10.5 million for the nine-month period ended September 30, 2023, a decrease of $2.2 million, or 20.6%. The $2.2 million decrease primarily resulted from improved capital asset management.

Current wording

Other operating expense was $0.2 million for thethree-month period ended March 29, 2025, as compared to other operating expense of $2.3 million for thethree-month period ended March 30, 2024, a decrease in other operating expense of $2.2 million. The $2.2 million decrease primarily resulted from a certain facility lease asset impairment recorded in the first fiscal quarter of 2024.

Previous wording

Interest expense, net of interest income was $39.1 million for the three-month period ended September 28, 2024, as compared to $39.5 million for the three-month period ended September 30, 2023, a decrease of $0.4 million, or 1.0%. The decrease was primarily driven by a lower principal balance on the 2021 Extended Term Loan (as described in Note 4 to our interim unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q (our “Quarterly Financial Statements”))and the September 2024 U.S.

Current wording

Interest expense, net of interest income was $36.2 million for the three-month period ended March 29, 2025, as compared to $39.5 million for the three-month period ended March 30, 2024, a decrease of $3.3 million, or 8.5%. The decrease was primarily driven by a lower principal balance on the 2021 Extended Term Loan (as described in Note 4 to our Quarterly Financial Statements)and decreases in the U.S. federal funds rate. See further analysis under Liquidity and Capital Resources below.

Previous wording

Other income was $2.3 million forthe nine-month period ended September 28, 2024, as compared to other income of $27.1 million forthe nine-month period ended September 30, 2023. We realized a $29.5 million decrease in non-cash valuation gains on interest rate derivatives resulting from changes in market expectations of future interest rates as of the comparable valuation dates, offset by a $4.8 million improvement in net settlements with interest rate derivative counterparties as interest rates increased compared to the prior year period due to higher market interest rates. Details of other income included the following:

Current wording

Other expense was $5.5 million forthe three-month period ended March 29, 2025, as compared to other income of $18.2 million forthe three-month period ended March 30, 2024, a decrease to other income of $23.6 million. We realized a $19.9 million increase in non-cash valuation losses associated with interest rate derivatives resulting from changes in market expectations of future interest rates as of the comparable quarter-end valuation date, as well as a $3.6 million decrease in net settlements with interest rate derivative counterparties as interest rates decreased compared to the prior year fiscal quarter due to lower market interest rates. Details of other (expense) income included the following:

Previous wording

We incurred income tax expense of $15.5 million for thethree-month period ended September 28, 2024, as compared to income tax expense of $0.6 million for thethree-month period ended September 30, 2023. This increase in tax expense was primarily driven by the changes in federal and state valuation allowances, and changes to federal and state current tax expense due to certain non-deductible expenses, most notably interest expense.

Current wording

We record income tax expense during interim periods based on our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. We analyze various factors to determine the estimated annual effective income tax rate, including projections of our annual earnings, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. We incurred income tax expense of $5.0 million for thethree-month period ended March 29, 2025, as compared to income tax expense of $12.7 million for thethree-month period ended March 30, 2024. This decrease in tax expense was primarily driven by differences in our projections of annual earnings at the end of each comparable three-month period, as well as changes in federal and state valuation allowances, and changes to federal and state current tax expense due to certain non-deductible expenses, most notably interest expense.

Previous wording

EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of 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 impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; other system transition costs, professional fees; and other costs including gains and losses on acquisitions and dispositions of certain businesses. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.

Current wording

EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace financial performance measures determined in accordance with U.S. GAAP, such as net income or loss. Rather, we present EBITDA and Adjusted EBITDA as supplemental measures of our performance. We define EBITDA as net income or loss before interest expense, net; income tax expense; and depreciation and amortization. We define Adjusted EBITDA as EBITDA, adjusted for the impact of 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 impairments of goodwill, intangible assets, and other long-lived assets; non-cash, share-based compensation, and associated employer payroll taxes; loss on extinguishment of debt; fees related to debt modifications; the effect of interest rate derivatives; acquisition-related and integration costs; legal costs and settlements associated with acquisition matters; restructuring costs; other legal matters; other system transition costs, professional fees; and other costs including gains and losses on acquisitions and dispositions of certain businesses. As non-GAAP financial measures, our computations of EBITDA and Adjusted EBITDA may vary from similarly termed non-GAAP financial measures used by other companies, making comparisons with other companies on the basis of this measure impracticable.

Previous wording

The following table reconciles net loss to EBITDA and Adjusted EBITDA for the periods indicated:

Current wording

The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA for the periods indicated:

Previous wording

Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other things, of $0.2 million and $0.8 million for the three and nine-month periods ended September 28, 2024, respectively, and $0.3 million and $1.1 million for the three and nine-month periods ended September 30, 2023, respectively; and (ii) transitionary costs incurred to integrate acquired companies into our field and corporate operations of $0.1 million for the nine-month period ended September 28, 2024, no such cost was recorded during the three-month period ended September 28, 2024, and $0.2 million and $0.6 million for the three and nine-month periods ended September 30, 2023, respectively. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.

Current wording

Represents (i) costs associated with our Integration Management Office, which focuses on our integration efforts and transformational projects such as systems conversions and implementations, material cost reduction and restructuring projects, among other things, of $0.2 million for the three-month period ended March 29, 2025, and $0.3 million for the three-month period ended March 30, 2024; and (ii) transitionary costs incurred to integrate acquired companies into our field and corporate operations of $0.0 million for the three-month period ended March 29, 2025 and $0.0 million for the three-month period ended March 30, 2024. Transitionary costs incurred to integrate acquired companies include IT consulting costs and related integration support costs; salary, severance and retention costs associated with duplicative acquired company personnel until such personnel are exited from the Company; accounting, legal and consulting costs; expenses and impairments related to the closure and consolidation of overlapping markets of acquired companies, including lease termination and relocation costs; costs associated with terminating legacy acquired company contracts and systems; and one-time costs associated with rebranding our acquired companies and locations to the Aveanna brand.

Previous wording

Represents legal and forensic costs, as well as settlements associated with resolving legal matters arising during or as a result of our acquisition-related activities. This primarily includes (i) costs of $0.4 million and $1.0 million for the three and nine-month periods ended September 28, 2024, respectively, and $0.0 million and $0.3 million for the three and nine-month periods ended September 30, 2023, respectively, to comply with the U.S. Department of Justice, Antitrust Division’s grand jury subpoena related to nurse wages and hiring activities in certain of our markets, in connection with a terminated transaction, and (ii) release of reserve of $3.6 million for the nine-month period ended September 30, 2023, related to the settlement of a legal matter resulting from a 2020 acquisition.

Current wording

Represents legal and forensic costs, as well as settlements associated with resolving legal matters arising during or as a result of our acquisition-related activities. This primarily includes costs of $0.9 million for the three-month period ended March 29, 2025 and $0.4 million for the three-month period ended March 30, 2024, to comply with the U.S. Department of Justice, Antitrust Division’s grand jury subpoena related to nurse wages and hiring activities in certain of our markets, in connection with a terminated transaction.

Previous wording

Represents: (i) costs associated with the implementation of, and transition to, new electronic medical record systems, billing and collection systems, duplicative system costs while such transformational projects are in-process, and other system transition costs of $0.6 million and $1.3 million for the three-month and nine-month periods ended September 30, 2023, respectively, no such cost was recorded in other presented periods; (ii) a $5.1 million non-cash gain on the acquisition of certain business licenses and other net assets in the three and nine-month periods ended September 30, 2023, there were no such gains recorded in any other periods, and (iii) other costs or (income) that are either non-cash or non-core to the Company’s ongoing operations of $0.4 million and $(0.3) million for the three and nine-month periods ended September 28, 2024, respectively, and $(0.2) million and $(0.8) million for the three and nine-month periods ended September 30, 2023, respectively.

Current wording

Represents other costs or (income) that are either non-cash or non-core to the Company’s ongoing operations of $(0.2) million for the three-month period ended March 29, 2025, and $(0.8) million for the three-month period ended March 30, 2024.

Previous wording

For additional information with respect to the foregoing litigation matters, please see"Litigation and Other Current Liabilities" set forth in Note 10 to our interim unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q.

Current wording

For additional information with respect to the foregoing litigation matters, please see"Litigation and Other Current Liabilities" set forth in Note 10 to our Quarterly Financial Statements.

Previous wording

At September 28, 2024 we had $78.5 million in cash on hand, $37.9 million available to us under our Securitization Facility and approximately $168.2 million of borrowing capacity under the Revolving Credit Facility (as defined below, and prior to giving effect to the amendment to such facility on September 30, 2024 that, among other things, reduced the maximum borrowing capacity from $200.0 million to $170.3 million). Available borrowing capacity under the Revolving Credit Facility is subject to a maintenance leverage covenant that becomes effective if more than 30% of the total commitment is utilized, subject to a $15.0 million carve-out for letters of credit. We believe that our operating cash flows, available cash on hand, and availability under our Securitization Facility and Revolving Credit Facility will be sufficient to meet our cash requirements for at least the next twelve months. Our future capital requirements will depend on many factors that are difficult to predict, including the size, timing and structure of any future acquisitions, future capital investments and future results of operations. We cannot assure you that cash provided by operating activities or cash and cash equivalents on hand will be sufficient to meet our future needs. If we are unable to generate sufficient cash flows from operations in the future, we may have to obtain additional financing. If we obtain additional capital by issuing equity, the interests of our existing stockholders will be diluted. If we incur additional indebtedness, that indebtedness may contain significant financial and other covenants that may significantly restrict our operations. We cannot assure you that we could obtain refinancing or additional financing on favorable terms or at all.

Current wording

At March 29, 2025 we had $71.5 million in cash on hand, $56.2 million available to us under our Securitization Facility and approximately $138.0 million of borrowing capacity under the Revolving Credit Facility. Available borrowing capacity under the Revolving Credit Facility is subject to a maintenance leverage covenant that becomes effective if more than 30% of the total commitment is utilized, subject to a $15.0 million carve-out for letters of credit. We believe that our operating cash flows, available cash on hand, and availability under our Securitization Facility and Revolving Credit Facility will be sufficient to meet our cash requirements for at least the next twelve months. Our future capital requirements will depend on many factors that are difficult to predict, including the size, timing and structure of any future acquisitions, future capital investments and future results of operations. We cannot assure you that cash provided by operating activities or cash and cash equivalents on hand will be sufficient to meet our future needs. If we are unable to generate sufficient cash flows from operations in the future, we may have to obtain additional financing. If we obtain additional capital by issuing equity, the interests of our existing stockholders will be diluted. If we incur additional indebtedness, that indebtedness may contain significant financial and other covenants that may significantly restrict our operations. We cannot assure you that we could obtain refinancing or additional financing on favorable terms or at all.

Previous wording

The following table sets forth a summary of our cash flows from operating, investing, and financing activities for the nine-month periods presented:

Current wording

The following table sets forth a summary of our cash flows from operating, investing, and financing activities for the three-month periods presented:

Previous wording

The primary sources or uses of our operating cash flow are operating income or operating losses, as well as any other significant non-cash items such as depreciation, amortization and share-based compensation, and cash paid for interest. The timing of collections of accounts receivable and the payment of accounts payable, other accrued liabilities and accrued payroll can also impact and cause fluctuations in our operating cash flow. Cash provided by operating activities decreased by $6.4 million for the nine-month period ended September 28, 2024 compared to the nine-month period ended September 30, 2023, primarily due to:

Current wording

The primary sources or uses of our operating cash flow are operating income or operating losses, as well as any other significant non-cash items such as depreciation, amortization and share-based compensation, and cash paid for interest. The timing of collections of accounts receivable and the payment of accounts payable, other accrued liabilities and accrued payroll can also impact and cause fluctuations in our operating cash flow. Cash used in operating activities decreased by $3.3 million for the three-month period ended March 29, 2025 compared to the three-month period ended March 30, 2024, primarily due to: