Addus HomeCare Corp.’s Q3 2022 Earnings Highlights
Addus HomeCare Corp., a provider of home care services, announced its financial results for the third quarter ended September 30, 2022. Despite staffing and Omicron-related headwinds, the company still reported revenue growth of 11% over the third quarter of 2021. Addus had revenue increases in its home health and hospice segments, demonstrating the strength and resilience of both operations. The Frisco, Texas-based company reported: 11% increase in net revenue from $216.7 million in Q3:21 to $240.5 million in Q3:22.12% increase in gross profit from $67 million (30.9% of net revenue) in Q3:21 to $75.2 million (31.3% of net revenue) in Q3:22.0.9% decrease in net income from $11.6 million... Read More »
Labcorp’s Q3 2022 Earnings Highlights
Laboratory Corporation of America Holdings (Labcorp), an S&P 500 global life sciences company, experienced a decline by nearly every financial metric (i.e. net revenue, gross profit, net earnings, operating income, etc.) and missed earnings estimates for the third quarter. Labcorp’s ‘robust’ acquisition strategy could not offset the impact of significant headwinds, including rising labor costs, labor shortages and other inflationary pressures. A major decrease in COVID-19 PCR and antibody testing sales also contributed to the decline in organic revenues. The reduced guidance for 2022 is indicative of this downward trend continuing into the final quarter of the year. The Burlington,... Read More »
Option Care Health’s Q3 2022 Earnings Highlights
On Thursday, October 27, 2022, Option Care Health, Inc., the nation’s largest independent provider of home and alternate site infusion services, announced financial results for the third quarter ended September 30, 2022. The Bannockburn, Illinois-based company reported: 14.5% increase in net revenue from $891.9 million in Q3:21 to $1.02 billion in Q3:227.4% increase in gross profit from $203 million (22.8% of net revenue) in Q3:21 to $218 million (21.4% of net revenue) in Q3:229.3% increase in net income from $35.5 million ($0.20 per share) in Q3:21 to $38.8 million ($0.21 per share) in Q3:229.8% increase in adjusted EBITDA from $78 million (8.7% of net revenue) in Q3:21 to $85.6 million... Read More »
Buyer Discipline Emerging in Healthcare M&A
On October 21, we attended McDermott Will & Emery’s HPE New York event for a morning of panel discussions and networking. Much of the focus was on private equity’s healthcare M&A strategy amid higher interest rates, a pricing disconnect between buyers and sellers, and other headwinds in the industry. Right off the bat, the first panel posed a question to the audience asking what was causing a drop in deal activity. Quite clearly, the top two answers were, “frozen credit markets” and “pricing too high,” with “wage inflation” another major factor in how buyers approached potential deals. Higher wages may very well keep some PE firms from buying service-intensive healthcare businesses... Read More »
Home Health M&A Market Slowed in Q3, But Big Transactions Kept Deal Values High
The first half of 2022 revealed a shift away from the pandemic-fueled activity in the Home Health & Hospice (HH&H) M&A market seen during 2020 and 2021. This trend has carried through to the third quarter of 2022, which included 25 deals, a 43% drop from 2021’s third quarter when there were 44 announced transactions in the sector. Through the end of the third quarter this year, there have been 83 transactions announced in the HH&H sector, which covers the categories of home health, home hospice, palliative care, durable medical equipment, respiratory home care, geriatric care management, personal care, home aides and multi-service providers. Deals this year have fallen 24%... Read More »Schedule a demo
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