2022 Q1 Form 10-K Financial Statement

#000095017022004799 Filed on March 28, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2022 2021 Q1
Revenue $414.1M $1.679B
YoY Change 12.27%
Cost Of Revenue $289.7M $1.136B
YoY Change 9.19%
Gross Profit $124.4M $542.4M
YoY Change 19.34%
Gross Profit Margin 30.04% 32.31%
Selling, General & Admin $106.6M $297.4M
YoY Change 23.42%
% of Gross Profit 85.72% 54.83%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $5.387M $15.30M
YoY Change 17.69%
% of Gross Profit 4.33% 2.82%
Operating Expenses $111.7M $297.4M
YoY Change 23.42%
Operating Profit $12.71M -$36.11M
YoY Change 935.59%
Interest Expense -$10.19M $68.93M
YoY Change -16.93%
% of Operating Profit -80.2%
Other Income/Expense, Net $1.127M $4.914M
YoY Change -85.74%
Pretax Income -$122.1M -$113.6M
YoY Change 119.54%
Income Tax $4.080M $3.468M
% Of Pretax Income
Net Earnings -$126.2M -$117.0M
YoY Change 105.16%
Net Earnings / Revenue -30.48% -6.97%
Basic Earnings Per Share -$0.69
Diluted Earnings Per Share -$682.6K -$686.0K
COMMON SHARES
Basic Shares Outstanding 184.7M 170.6K
Diluted Shares Outstanding 170.6K

Balance Sheet

Concept 2022 Q1 2022 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $30.49M $30.49M
YoY Change -77.79%
Cash & Equivalents $30.49M $30.49M $137.3M
Short-Term Investments
Other Short-Term Assets $9.202M $23.44M $11.34M
YoY Change -18.85% 4.62%
Inventory
Prepaid Expenses $14.23M $11.08M
Receivables $218.9M $225.3M $172.9M
Other Receivables $0.00 $0.00
Total Short-Term Assets $279.2M $279.2M $340.6M
YoY Change -18.03% -18.02%
LONG-TERM ASSETS
Property, Plant & Equipment $31.37M $83.37M $32.65M
YoY Change -3.91% 5.66%
Goodwill $1.836B $1.316B
YoY Change 39.44%
Intangibles $102.9M $73.57M
YoY Change 39.8%
Long-Term Investments
YoY Change
Other Assets $7.829M $7.829M $7.627M
YoY Change 2.65% -26.14%
Total Long-Term Assets $2.055B $2.055B $1.503B
YoY Change 36.7% 36.7%
TOTAL ASSETS
Total Short-Term Assets $279.2M $279.2M $340.6M
Total Long-Term Assets $2.055B $2.055B $1.503B
Total Assets $2.334B $2.334B $1.844B
YoY Change 26.59% 26.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $52.62M $52.62M
YoY Change -7.19%
Accrued Expenses $71.77M $71.77M
YoY Change 0.94%
Deferred Revenue
YoY Change
Short-Term Debt $7.451M $7.451M
YoY Change 156.93%
Long-Term Debt Due $8.600M $129.2M $9.910M
YoY Change -13.22% 1130.48%
Total Short-Term Liabilities $344.8M $344.8M $260.4M
YoY Change 32.42% 32.42%
LONG-TERM LIABILITIES
Long-Term Debt $1.227B $1.227B $1.163B
YoY Change 5.42% 5.34%
Other Long-Term Liabilities $16.69M $121.3M $30.96M
YoY Change -46.08% -2.16%
Total Long-Term Liabilities $1.243B $1.349B $1.194B
YoY Change 4.08% 4.62%
TOTAL LIABILITIES
Total Short-Term Liabilities $344.8M $344.8M $260.4M
Total Long-Term Liabilities $1.243B $1.349B $1.194B
Total Liabilities $1.696B $1.696B $1.577B
YoY Change 7.58% 7.59%
SHAREHOLDERS EQUITY
Retained Earnings -$574.7M -$457.6M
YoY Change 25.58%
Common Stock $1.210B $722.7M
YoY Change 67.5%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $635.8M $638.0M $265.0M
YoY Change
Total Liabilities & Shareholders Equity $2.334B $2.334B $1.844B
YoY Change 26.59% 26.59%

Cashflow Statement

Concept 2022 Q1 2022 2021 Q1
OPERATING ACTIVITIES
Net Income -$126.2M -$117.0M
YoY Change 105.16%
Depreciation, Depletion And Amortization $5.387M $15.30M
YoY Change 17.69%
Cash From Operating Activities -$33.54M -$11.35M
YoY Change -109.73%
INVESTING ACTIVITIES
Capital Expenditures -$5.644M $15.95M
YoY Change 4.68%
Acquisitions $666.9M
YoY Change 274.03%
Other Investing Activities -$562.7M -$665.9M
YoY Change 273.46%
Cash From Investing Activities -$568.3M -$681.8M
YoY Change 252.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $477.7M
YoY Change 855.38%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 510.6M 586.3M
YoY Change 177.95%
NET CHANGE
Cash From Operating Activities -33.54M -11.35M
Cash From Investing Activities -568.3M -681.8M
Cash From Financing Activities 510.6M 586.3M
Net Change In Cash -91.22M -106.9M
YoY Change -179.73%
FREE CASH FLOW
Cash From Operating Activities -$33.54M -$11.35M
Capital Expenditures -$5.644M $15.95M
Free Cash Flow -$27.89M -$27.30M
YoY Change -126.93%

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CY2022 us-gaap Nature Of Operations
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<p id="footnotes_to_financial_statements" style="text-indent:-4.749%;padding-left:4.533%;font-size:10.0pt;margin-top:0.0pt;line-height:1.15;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">1. DESCRI</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">PTION OF BUSINESS</span><span style="color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> </span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:10.0pt;line-height:1.15;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">Aveanna Healthcare Holdings Inc. (together with its consolidated subsidiaries, referred to herein as the “Company”) is headquartered in Atlanta, Georgia and has locations in</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> </span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">33</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> states </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">with concentrations in Texas, Pennsylvania, and California, providing a broad range of pediatric and adult healthcare services, including nursing, hospice, rehabilitation services, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill children and adults, as well as delivery of enteral nutrition and other products to patients. The Company also provides case management services in order to assist families and patients by coordinating the provision of services between insurers or other payers, physicians, hospitals, and other healthcare providers. In addition, the Company provides respite healthcare services, which are temporary care provider services provided in relief of the patient’s normal caregiver. The Company’s services are designed to provide a high quality, lower cost alternative to prolonged hospitalization.</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:10.0pt;line-height:1.15;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;font-style:italic;">Initial Public Offering</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:10.0pt;line-height:1.15;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">On May 3, 2021, the Company completed the initial public offering (“IPO”) of its common stock pursuant to a Registration Statement on Form S-1 (File No. 333-254981), which was declared effective by the SEC on April 28, 2021. The Company issued and sold an aggregate of </span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">42,236,000</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> shares of common stock, including </span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">4,000,000</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> shares of common stock purchased by the underwriters on May 25, 2021 pursuant to the underwriters’ option to purchase additional shares at the initial public offering price, less underwriting discounts and commissions. The Company received net proceeds from the IPO of </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">$</span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">477.7</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> million. On May 3, 2021, the Company used </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">$</span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">307.0</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> million of proceeds to repay in full all outstanding obligations under the second lien credit agreement dated as of March 16, 2017 (as amended, the “Prior Second Lien Credit Agreement”), thereby terminating the Prior Second Lien Credit Agreement. In addition, on May 4, 2021, the Company used </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">$</span><span style="font-size:10.0pt;font-family:Times New Roman;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">100.0</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> million of proceeds to repay an equal amount of principal outstanding under its First Lien Credit Agreement (as defined in Note 7 – </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;font-style:italic;">Long-term Obligations</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">). The remaining proceeds have been used for offering costs and general corporate purposes, including acquisitions.</span></p>
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CY2022 us-gaap Use Of Estimates
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<p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(35,31,32,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;font-style:italic;">Use of Estimates</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(35,31,32,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">The Company’s accounting and reporting policies conform with U.S. GAAP. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that impact the amounts reported in these consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.</span></p>
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<p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;font-style:italic;">Concentration of Credit Risk</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of patient accounts receivable. Should government agencies suspend or significantly reduce contributions to government insurance programs, the Company’s ability to collect its receivables would be adversely affected. The Company’s exposure to credit risk with respect to its remaining receivables is limited due to the large number of state Medicaid, Medicaid Managed Care Organization payers, and Medicare Advantage payers.</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">The Company is also subject to credit risk due to the variable interest rates on its term loan obligations. As a result, the Company has entered into interest caps and interest rate swap agreements to limit its exposure to risk on its variable rate debt. See Note 10 – </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;font-style:italic;">Derivative Financial Instruments</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> for further details on the interest rate derivative instruments.</span><span style="color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;"> </span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;line-height:1.1164583333333333;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:Times New Roman;">The Company maintains its cash in bank deposit accounts with major financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to significant credit risk on cash and cash equivalents.</span></p>
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