Aveanna Healthcare Holdings Inc at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Rossi - JP Morgan - Analyst : Great. Thanks. So to start, before we talk about your forward outlook, would you mind providing us with a retrospective on 2024 and walk us through some of the key drivers behind your financial performance over the course of the year?

Question: Ben Rossi - JP Morgan - Analyst : All right, great. Thank you for that summary. So looking ahead then, would you give us an update on what is going on in Aveanna and generally how you're approaching 2025? And then what are some key milestones that we should be looking forward this year?

Question: Ben Rossi - JP Morgan - Analyst : Thank you for that color. So on the strategic transformation, you're now in year three across the organization. Could you just update us on how this transformation is tracking against your initial goals? And then how should we be thinking about impact here in 2025?

Question: Ben Rossi - JP Morgan - Analyst : Great. So digging into some of the topline trends, you talked about patient utilization has been a consistent topic of discussion in the wake of COVID. Could you just speak to general patient demand over the past several quarters and how your volumes fared across your Medicare and Medicaid books of business?

Question: Ben Rossi - JP Morgan - Analyst : Got it. So flipping then to the rate side, I can appreciate that your rate development comes in on a state-by-state basis. But could you just walk us through your 2024 wrapped up and your general rate expectations for 2025? And then how have those conversations been coming along in some of your larger markets?

Question: Ben Rossi - JP Morgan - Analyst : Thank you for that. Turning over to the expense side, labor. How would you describe your current recruiting and retention efforts? And then are you still seeing a long tail on hiring trends for markets where you've been able to negotiate more favorable rates?

Question: Ben Rossi - JP Morgan - Analyst : I can definitely see the economics clearly there. So turning to something that you kind of mentioned earlier on the regulatory side, new administration, people -- or the new incoming administration, certainly a lot of buzz there. How do you anticipate change in healthcare regulations that impact Aveanna's performance for this year and given your exposure within Medicaid? How do you think about potential program changes amid the broader discussion regarding government spending?

Question: Ben Rossi - JP Morgan - Analyst : Yeah, I can certainly see where the value proposition comes into play with the potential cost savings, appetite growing. So shifting gears to your capital structure and leverage. What is your go-forward plan for deleveraging? And how much of this do you expect to achieve from pure EBITDA to growth versus simply paying down debt? And then how are you balancing all that with your M&A pipeline across segments?

Question: Ben Rossi - JP Morgan - Analyst : Got you. So as a follow-up then on the cash flow cadence, just regarding your cash flow for the year, payroll taxes typically come in during the first quarter. But is there anything else you'd want to call out as we go through 2025?

Question: Ben Rossi - JP Morgan - Analyst : Thanks for that. So taking a step back just on competitive dynamics, Aveanna's footprint covers some 33 states. Could you just walk us through some of the competitive dynamics by market? And are you seeing any common players across your markets with matching service offerings at this stage?

Question: Ben Rossi - JP Morgan - Analyst : That makes sense. Thanks for the commentary there. So we're starting to slowly approach time here. So I like to always wrap this up with kind of like a one-year forward outlook. But what will investors appreciate about Aveanna one year from now that they don't today?

Question: Ben Rossi - JP Morgan - Analyst : Great. Well, that wraps up our Q&A session here. Thank you to Jeff and Matt for the very informative answers and appreciate you all for listening in here. Thank you so much.