November 2024 - Page 336 of 337

S&P 500 Records Worst Session In Over A Month, Meta And Microsoft Tumble: Greed Index Moves To 'Fear' Zone

01.11.2024 by admin

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Fear” zone on Thursday.

U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 500 points during the session. The S&P 500 and Nasdaq both recorded their biggest single-day declines since Sept. 3.

Shares of Meta Platforms Inc. META fell around 4% on Thursday after the company reported third-quarter financial results. Shares of Microsoft Corp. MSFT fell around 6% on Thursday after the company reported first-quarter financial results.

On the economic data front, U.S. initial jobless claims declined by 12,000 from the previous week to 216,000 in the week ending Oct. 26. The personal consumption expenditure price index rose 0.2% month-over-month in September following a 0.1% increase in August.

Most sectors on the S&P 500 closed on a negative note, with information technology, consumer discretionary, and real estate stocks recording the biggest losses on Thursday. However, utilities and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 378 points to 41,763.46 on Thursday. The S&P 500 fell 1.86% to 5,705.45, while the Nasdaq Composite fell 2.76% at 18,095.15 during Thursday’s session.

Investors are awaiting earnings results from Chevron Corporation CVX, Exxon Mobil Corporation XOM, and Cardinal Health, Inc. CAH today.

What is CNN Business Fear & Greed Index?

At a current reading of 43.5, the index moved to the “Fear” zone on Thursday, versus a prior reading of 54.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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Earnings News

BrightSpring Health Services, Inc. Reports Third Quarter 2024 Financial Results and Increases Full Year 2024 Guidance

01.11.2024 by admin

LOUISVILLE, Ky., Nov. 01, 2024 (GLOBE NEWSWIRE) — BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) BTSG, a leading provider of home and community-based health services for complex populations, today announced financial results for the third quarter ended September 30, 2024, and increases 2024 revenue and Adjusted EBITDA¹ guidance.

Financial Highlights

Net Revenue of $2,907 million, up 28.8% compared to $2,257 million in the third quarter of 2023.
Net loss of $9.0 million, compared to net loss of $130.1 million in the third quarter of 2023.
Adjusted EBITDA¹ of $151 million, up 15.7% versus $131 million in the third quarter of 2023
Increased 2024 Revenue and Adjusted EBITDA Guidance:
- Revenue: $11,000 – $11,300 million
- Adjusted EBITDA¹: $580 – $585 million

“We are pleased with the broad-based strength in revenue and earnings growth across Pharmacy Solutions and Providers Services in the third quarter,” said Jon Rousseau, Chairman, President and Chief Executive Officer of the Company. “At BrightSpring we are focused on driving operational excellence and efficiencies while increasing scale across our organization to deliver lower-cost and high-quality care to patients. We are confident that the Company remains well positioned to execute on providing a high level of quality care to patients and continuing to grow our businesses for the remainder of 2024 and in 2025.”

Third Quarter 2024 Financial Results

Net revenue of $2,907 million, up 28.8% compared to $2,257 million in the third quarter of 2023. Net revenue growth was driven by strength across the business, with robust growth in Specialty and Infusion Pharmacy.

Gross profit of $408 million, up 13.9% compared to $358 million in the third quarter of 2023.

Net loss of $9.0 million, compared to net loss of $130.1 million in the third quarter of 2023.

Adjusted EBITDA¹ of $151 million, up 15.7% compared to $131 million in the third quarter of 2023

¹Adjusted EBITDA is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” and the end of this press release for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure prepared in accordance with GAAP.

Key Financials:

	Three Months Ended
	September 30, (Unaudited)
	2024		2023		%
($ in millions)
Pharmacy Solutions Revenue	$	2,266	$	1,673		35%
Provider Services Revenue		641		583		10%
Total Revenue	$	2,907	$	2,257		29%

	Three Months Ended
	September 30, (Unaudited)
	2024		2023		%
($ in millions)
Pharmacy Solutions segment EBITDA	$	99	$	86		15%
Provider Services segment EBITDA		93		81		14%
Total Segment Adjusted EBITDA	$	192	$	168		14%
Corporate Costs		(41)		(37)		–
Total Company Adjusted EBITDA	$	151	$	131		15.7%

Full Year 2024 Financial Guidance

For the full year 2024, BrightSpring is increasing guidance, which excludes the effects of any future closed acquisitions.

Net revenue of $11,000 million to $11,300 million, or 24.6% to 28.0% growth over 2023
- Pharmacy Segment Revenue of $8,500 million to $8,750 million, or 30.3% to 34.2% growth over full year 2023
- Provider Segment Revenue of $2,500 million to $2,550 million, or 8.5% to 10.7% growth over full year 2023
Adjusted EBITDA² of $580 million to $585 million, or 14.2% to 15.2% growth over full year 2023, excluding the impact from a certain Quality Incentive Payment in 2023

A copy of the Company’s third quarter earnings presentation is available on the company’s investor relations website, https://ir.brightspringhealth.com/

² A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDA to GAAP net loss cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.

Webcast and Conference Call Details

BrightSpring will host a conference call today, November 1, 2024, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online.

A live and archived webcast of the event will be available on the “Events & Presentations” section of the BrightSpring website at https://ir.brightspringhealth.com/. The Company has posted supplemental financial information on the third quarter results that it will reference during the conference call. The supplemental information can be found under the “Events & Presentations” on the Company’s investor relations page.

About BrightSpring Health Services

BrightSpring Health Services provides complementary and integrated home- and community-based pharmacy and health solutions for complex populations in need of specialized and/or chronic care. Through the Company’s service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, we provide comprehensive care and clinical solutions in all 50 states to over 400,000 customers, clients and patients daily.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements may relate to matters which include, but are not limited to, industries, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. In some cases, we have used words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “target,” “guidance,” the negative version of these words, or similar terms and phrases to identify these forward-looking statements.

The forward-looking statements are based on management’s current expectations and are not historical facts or guarantees of future performance. The forward-looking statements relate to the future and are therefore subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following:

our operation in a highly competitive industry;
our inability to maintain relationships with existing patient referral sources or establish new referral sources;
changes to Medicare and Medicaid rates or methods governing Medicare and Medicaid payments for our services;
cost containment initiatives of third-party payors, including post-payment audits;
the implementation of alternative payment models and the transition of Medicaid and Medicare beneficiaries to managed care organizations may limit our market share and could adversely affect our revenues;
changes in the case mix of patients, as well as payor mix and payment methodologies, and decisions and operations of third-party organizations;
our reliance on federal and state spending, budget decisions, and continuous governmental operations which may fluctuate under different political conditions;
changes in drug utilization and/or pricing, PBM contracts, and Medicare Part D/Medicaid reimbursement, which may negatively impact our profitability;
changes in our relationships with pharmaceutical suppliers, including changes in drug availability or pricing;
reliance on the continual recruitment and retention of nurses, pharmacists, therapists, caregivers, direct support professionals, and other qualified personnel, including senior management;
compliance with or changes to federal, state, and local laws and regulations that govern our employment practices, including minimum wage, living wage, and paid time-off requirements;
fluctuation of our results of operations on a quarterly basis;
harm caused by labor relation matters;
limitations in our ability to control reimbursement rates received for our services if we are unable to maintain or reduce our costs to provide such services;
delays in collection or non-collection of our accounts receivable, particularly during the business integration process;
failure to manage our growth effectively, which may inhibit our ability to execute our business plan, maintain high levels of service and satisfaction or adequately address competitive challenges;
our ability to identify, successfully complete and manage acquisitions, joint ventures, and other strategic initiatives;
our ability to continue to provide consistently high quality of care;
maintenance of our corporate reputation or the emergence of adverse publicity, including negative information on social media or changes in public perception of our services;
contract continuance, expansion and renewal with our existing customers, including renewals at lower fee levels, customers declining to purchase additional services from us, or reduction in the services received from us pursuant to those contracts;
effective investment in, implementation of improvements to and proper maintenance of the uninterrupted operation and data integrity of our information technology and other business systems;
security breaches, loss of data, and other disruptions, which could compromise sensitive business or patient information; cause a loss of confidential patient data, employee data or personal information; or prevent access to critical information and thereby expose us to liability, litigation, and federal and state governmental inquiries and damage our reputation and brand;
risks related to credit card payments and other payment methods;
potential substantial malpractice or other similar claims;
various risks related to governmental inquiries, regulatory actions, and whistleblower and other lawsuits, which may not be entirely covered by insurance;
our current insurance program, which may expose us to unexpected costs, particularly if we incur losses not covered by our insurance or if claims or losses differ from our estimates;
factors outside of our control, including those listed, which have required and could in the future require us to record an asset impairment of goodwill;
a pandemic, epidemic, or outbreak of an infectious disease, including the ongoing effects of COVID-19;
inclement weather, natural disasters, acts of terrorism, riots, civil insurrection or social unrest, looting, protests, strikes, or street demonstrations;
our inability to adequately protect our intellectual property rights

The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. These factors should not be construed as exhaustive, and should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward- looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make.

For additional information on these and other factors that could cause BrightSpring’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures,” including “EBITDA” and “Adjusted EBITDA,” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP.

EBITDA and Adjusted EBITDA have been presented in this release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management also believes that these measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses EBITDA and Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish and award discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures.

Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. EBITDA and Adjusted EBITDA are not GAAP measures of our financial performance and should not be considered as an alternative to net loss as a measure of financial performance or any other performance measures derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as tax payments, debt service requirements, total capital expenditures, and certain other cash costs that may recur in the future.

Management defines EBITDA as net loss before income tax expense (benefit), interest expense, and depreciation and amortization. Management also defines Adjusted EBITDA as EBITDA, further adjusted to exclude non-cash share-based compensation, acquisition, integration and transaction-related costs, restructuring and divestiture-related and other costs, goodwill impairment, legal costs and settlements associated with certain historical matters for PharMerica, significant projects, management fees, and unreimbursed COVID-19 related costs.

The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see the end of this press release for reconciliations of non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with GAAP.

BrightSpring Contact:

Investor Relations:
David Deuchler, CFA
Gilmartin Group LLC
ir@brightspringhealth.com

Media Contact:
Leigh White
leigh.white@brightspringhealth.com
502.630.7412


BrightSpring Health Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets September 30, 2024 and December 31, 2023 (In thousands, except share and per share data) (Unaudited)

	September 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	35,973		$	13,071
Accounts receivable, net of allowance for credit losses		1,025,711			881,627
Inventories		478,319			402,776
Prepaid expenses and other current assets		169,582			159,167
Total current assets		1,709,585			1,456,641
Property and equipment, net of accumulated depreciation of $426,484 and $368,089 at September 30, 2024 and December 31, 2023, respectively		248,548			245,908
Goodwill		2,672,791			2,608,412
Intangible assets, net of accumulated amortization		842,479			881,476
Operating lease right-of-use assets, net		259,138			267,446
Deferred income taxes, net		6,678			—
Other assets		46,748			72,838
Total assets	$	5,785,967		$	5,532,721
Liabilities, Redeemable Noncontrolling Interests, and Equity
Current liabilities:
Trade accounts payable	$	783,838		$	641,607
Accrued expenses		349,101			492,363
Current portion of obligations under operating leases		69,763			71,053
Current portion of obligations under financing leases		12,367			11,141
Current portion of long-term debt		48,853			32,273
Total current liabilities		1,263,922			1,248,437
Obligations under operating leases, net of current portion		195,921			201,655
Obligations under financing leases, net of current portion		24,988			22,528
Long-term debt, net of current portion		2,608,537			3,331,941
Deferred income taxes, net		—			23,668
Long-term liabilities		73,502			91,943
Total liabilities		4,166,870			4,920,172
Redeemable noncontrolling interests		4,125			27,139
Shareholders’ equity:
Common stock, $0.01 par value, 1,500,000,000 and 137,398,625 shares authorized, 174,078,977 and 117,857,055 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		1,741			1,179
Preferred stock, $0.01 par value, 250,000,000 authorized, no shares issued and outstanding at September 30, 2024; no shares authorized, issued or outstanding at December 31, 2023		—			—
Additional paid-in capital		1,848,115			771,336
Accumulated deficit		(234,380	)		(200,319	)
Accumulated other comprehensive (loss) income		(705	)		12,544
Total shareholders’ equity		1,614,771			584,740
Noncontrolling interest		201			670
Total equity		1,614,972			585,410
Total liabilities, redeemable noncontrolling interests, and equity	$	5,785,967		$	5,532,721

BrightSpring Health Services, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the three and nine months ended September 30, 2024 and 2023 (In thousands, except per share amounts) (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenues:
Products	$	2,265,697		$	1,673,152		$	6,357,223		$	4,736,993
Services		641,126			583,377			1,856,448			1,714,638
Total revenues		2,906,823			2,256,529			8,213,671			6,451,631
Cost of goods		2,077,121			1,509,845			5,815,981			4,226,075
Cost of services		421,590			388,388			1,231,154			1,160,477
Gross profit		408,112			358,296			1,166,536			1,065,079
Selling, general, and administrative expenses		351,272			410,549			1,039,215			986,161
Operating income (loss)		56,840			(52,253	)		127,321			78,918
Loss on extinguishment of debt		—			—			12,726			—
Interest expense, net		56,061			83,678			173,520			241,539
Income (loss) before income taxes		779			(135,931	)		(58,925	)		(162,621	)
Income tax expense (benefit)		9,760			(5,807	)		(23,000	)		(12,987	)
Net loss		(8,981	)		(130,124	)		(35,925	)		(149,634	)
Net (loss) income attributable to noncontrolling interests		(751	)		548			(1,864	)		(1,568	)
Net loss attributable to BrightSpring Health Services, Inc. and subsidiaries	$	(8,230	)	$	(130,672	)	$	(34,061	)	$	(148,066	)

Net loss per common share:
Loss per share – basic	$	(0.04	)	$	(1.11	)	$	(0.18	)	$	(1.26	)
Loss per share – diluted	$	(0.04	)	$	(1.11	)	$	(0.18	)	$	(1.26	)
Weighted average shares outstanding:
Basic		198,491			117,864			190,541			117,871
Diluted		198,491			117,864			190,541			117,871

BrightSpring Health Services, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the three and nine months ended September 30, 2024 and 2023 (In thousands) (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Operating activities:
Net loss	$	(8,981	)	$	(130,124	)	$	(35,925	)	$	(149,634	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization		50,608			50,774			149,601			151,324
Impairment of long-lived assets		2,801			2,181			4,781			8,295
Provision for credit losses		8,778			6,753			21,896			18,927
Amortization of deferred debt issuance costs		2,540			5,182			9,477			15,691
Share-based compensation		15,210			825			55,194			2,100
Deferred income taxes, net		21,479			(10,810	)		(27,781	)		(36,565	)
Loss on extinguishment of debt		—			—			12,726			—
(Gain) loss on disposition of fixed assets		(79	)		438			(55	)		957
Other		479			(582	)		(959	)		(210	)
Change in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable		(51,474	)		(11,520	)		(163,996	)		(116,922	)
Prepaid expenses and other current assets		(24,207	)		(22,272	)		(2,470	)		(162	)
Inventories		(103,985	)		16,536			(74,265	)		53,244
Trade accounts payable		114,234			31,353			155,563			(58,313	)
Accrued expenses		3,860			89,671			(150,032	)		159,353
Other assets and liabilities		(4,017	)		5,286			(20,593	)		298
Net cash provided by (used in) operating activities	$	27,246		$	33,691		$	(66,838	)	$	48,383
Investing activities:
Purchases of property and equipment	$	(20,043	)	$	(17,899	)	$	(65,602	)	$	(56,693	)
Acquisitions of businesses, net of cash acquired		(17,225	)		(37,044	)		(59,755	)		(62,508	)
Other		360			296			900			1,790
Net cash used in investing activities	$	(36,908	)	$	(54,647	)	$	(124,457	)	$	(117,411	)
Financing activities:
Long-term debt borrowings	$	—		$	—		$	2,566,000		$	—
Long-term debt repayments		(13,663	)		(7,536	)		(3,384,633	)		(22,857	)
Proceeds from issuance of common stock on initial public offering, net		—			—			656,485			—
Proceeds from issuance of tangible equity units, net		—			—			389,000			—
Borrowings of the Revolving Credit Facility, net		41,300			31,650			46,400			98,250
Payment of debt issuance costs		—			—			(43,188	)		—
Repurchase of shares of common stock		—			(325	)		(650	)		(325	)
Shares issued under share-based compensation plan, including tax effects		127			453			531			598
Payment of acquisition earn-outs		(1,500	)		—			(4,156	)		—
Purchase of redeemable noncontrolling interest		(2,016	)		—			(2,316	)		—
Payment of financing lease obligations		(3,640	)		(2,901	)		(9,276	)		(8,625	)
Net cash provided by financing activities	$	20,608		$	21,341		$	214,197		$	67,041
Net increase (decrease) in cash and cash equivalents		10,946			385			22,902			(1,987	)
Cash and cash equivalents at beginning of year		25,027			11,256			13,071			13,628
Cash and cash equivalents at end of year	$	35,973		$	11,641		$	35,973		$	11,641

BrightSpring Health Services, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA
For the three and nine months ended September 30, 2024 and 2023
(Unaudited)

The following table reconciles net loss to EBITDA and Adjusted EBITDA:

($ in thousands)	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Net loss	$	(8,981	)	$	(130,124	)	$	(35,925	)	$	(149,634	)
Income tax expense (benefit)		9,760			(5,807	)		(23,000	)		(12,987	)
Interest expense, net		56,061			83,678			173,520			241,539
Depreciation and amortization		50,608			50,774			149,601			151,324
EBITDA	$	107,448		$	(1,479	)	$	264,196		$	230,242
Non-cash share-based compensation (1)		15,210			825			55,194			2,100
Acquisition, integration, and transaction-related costs (2)		11,767			6,319			25,331			13,754
Restructuring and divestiture-related and other costs (3)		6,672			4,527			28,065			16,172
Legal costs and settlements (4)		8,920			117,042			21,886			121,706
Significant projects (5)		1,000			1,935			2,604			6,899
Management fee (6)		—			1,383			23,381			4,248
Unreimbursed COVID-19 related costs		—			(48	)		—			88
Total adjustments	$	43,569		$	131,983		$	156,461		$	164,967
Adjusted EBITDA	$	151,017		$	130,504		$	420,657		$	395,209

(1)	Represents non-cash share-based compensation to certain members of our management and full-time employees. The three and nine months ended September 30, 2024 includes $14.4 million and $35.8 million of costs, respectively, related to new equity awards granted upon the completion of our IPO under the 2024 Equity Incentive Plan. The nine months ended September 30, 2024 includes $15.0 million of previously unrecognized share-based compensation expense related to performance-vesting options under the 2017 Stock Plan, a portion of which vested upon completion of the IPO.

(2)	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; costs associated with the integration of acquisitions, including any facility consolidation, integration travel, or severance; and costs associated with other planned, completed, or terminated non-routine transactions. The three months ended September 30, 2024 includes acquisition and integration related costs of $7.5 million, earn-out adjustments from previous acquisitions of $0.9 million, and other non-routine transaction costs of $2.9 million, as compared to acquisition and integration related costs of $3.7 million and other non-routine transaction costs of $0.9 million for the three months ended September 30, 2023. These costs also included $0.5 million and $6.0 million of costs related to the IPO Offerings which were not capitalizable for the three and nine months ended September 30, 2024, respectively, compared to $1.7 million and $1.9 million for the three and nine months ended September 30, 2023, respectively.

(3)	Represents costs associated with restructuring-related activities, including closure, and related license impairment, and severance expenses associated with certain enterprise-wide or significant business line cost-savings measures. These costs included $12.7 million of unamortized debt issuance costs associated with the extinguishment of our Second Lien Facility in the nine months ended September 30, 2024. These costs also included $1.8 million and $3.7 million of intangible asset and other non-cash investment impairment for the three and nine months ended September 30, 2024, respectively, as compared to $1.4 million and $7.4 million for the three and nine months ended September 30, 2023, respectively.

(4)	Represents settlement and defense costs associated with certain historical PharMerica litigation matters, including the Silver matter, all of which are expected to be completed in 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.

(5)	Represents costs associated with certain transformational projects and for the periods presented primarily included general ledger system implementation and pharmacy billing system implementation, which both completed in the second fiscal quarter of 2024; and ransomware attack response costs. Ransomware attack response costs were $1.0 million for the three and nine months ended September 30, 2024, compared to $0.6 million and $3.1 million for the three and nine months ended September 30, 2023, respectively.

(6)	Represents annual management fees payable to the Managers under the Monitoring Agreement through the date of the IPO, and $22.7 million of termination fees resulting from the Monitoring Agreement being terminated upon completion of the IPO Offerings. All management fees have ceased following the completion of the IPO.

BrightSpring Health Services, Inc. and Subsidiaries
Reconciliation of Adjusted EPS
For the three and nine months ended September 30, 2024 and 2023
(Unaudited)

The following table reconciles diluted EPS to Adjusted EPS:

(shares in thousands)	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Diluted EPS	$	(0.04	)	$	(1.11	)	$	(0.18	)	$	(1.26	)
Non-cash share-based compensation (1)		0.07			0.01			0.28			0.02
Acquisition, integration, and transaction-related costs (1)		0.06			0.05			0.13			0.11
Restructuring and divestiture-related and other costs (1)		0.03			0.04			0.14			0.13
Legal costs and settlements (1)		0.04			0.93			0.11			0.96
Significant projects (1)		—			0.02			0.01			0.05
Management fee (1)		—			0.01			0.12			0.03
Unreimbursed COVID-19 related costs (1)		—			—			—			—
Income tax impact on adjustments (2)(3)		(0.05	)		(0.03	)		(0.27	)		(0.10	)
Adjusted EPS	$	0.11		$	(0.08	)	$	0.34		$	(0.06	)

Weighted average common shares outstanding used in calculating diluted U.S. GAAP net loss per share		198,491			117,864			190,541			117,871
Weighted average common shares outstanding used in calculating diluted Non-GAAP earnings (loss) per share		208,694			126,346			199,930			126,428

(1)	This adjustment reflects the per share impact of the adjustment reflected within the definition of Adjusted EBITDA.

(2)	The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment.

(3)	For the nine months ended September 30, 2024, the income tax impact on adjustments is inclusive of a discrete tax benefit related to the Silver matter that was finalized in connection with the signing of the settlement agreement during the second fiscal quarter of 2024.

Markets News

Trump Loses $1.9B In Net Worth As DJT Stock Tumbles 2nd Time This Week

01.11.2024 by admin

Former President Donald Trump has seen a significant decline in his net worth, losing approximately $1.9 billion due to a steep drop in Trump Media & Technology Group Corp DJT stock.

What Happened: According to Benzinga Pro, DJT shares fell by 11.72%, closing at $35.34 on Thursday. This followed a 22% decline on Wednesday after the stock had reached an intraday high of $54.68 on Tuesday. The reasons for the two-day sell-off remain unclear, but the stock has attracted the attention of speculators and shortsellers.

S3 Partners, a research group, indicated that the surge in DJT shares during October might have been driven by short sellers covering their positions, resulting in a short squeeze. They noted the stock’s high squeeze risk due to limited float and significant short interest, which is closely linked to Trump’s election prospects, CBS News reported on Thursday.

Trump, the largest shareholder with around 115 million shares in Trump Media, saw his stake’s value drop from nearly $6.3 billion at Tuesday’s peak to about $4 billion based on Thursday’s closing price.

Trump Media and his company are yet to respond to Benzinga’s queries.

Why It Matters: The volatility in DJT stock is not new, as it has been highly unpredictable since going public following a SPAC merger. The stock’s movements are closely tied to Trump’s 2024 election prospects, with potential outcomes significantly impacting its value. According to a report from S3 Partners, a Trump victory could push the stock to $60, while a loss might render shares “worthless.”

Earlier this week, DJT stock experienced multiple vola tility halts as prices fluctuated significantly. The stock was halted several times on Tuesday, reflecting its unpredictable nature and the market’s sensitivity to political developments.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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Earnings News

Biodesix Announces Third Quarter 2024 Results and Highlights

01.11.2024 by admin

Q3 2024 revenue grew 35% over Q3 2023 to $18.2 million;

Q3 2024 gross profit margin of 77.0%, up from 76.1% in Q3 2023;

Q3 2024 Net loss improved by 6% compared to Q3 2023;

Conference Call and Webcast Today at 8:30 a.m. ET

LOUISVILLE, Colo., Nov. 01, 2024 (GLOBE NEWSWIRE) — Biodesix, Inc. BDSX, a leading diagnostic solutions company, today announced its financial and operating results for the third quarter ended September 30, 2024.

“The Biodesix team is pleased to report another solid quarter focused on executing and delivering on our three main goals – driving revenue growth through the adoption of our lung diagnostic tests and biopharma services, continued implementation of operational efficiencies, and maintaining a cost-disciplined approach as we drive our business to profitability,” said Scott Hutton, CEO of Biodesix.

“We reported 40% year-over-year growth in lung diagnostics revenue, a growing book of biopharma services contracts, sustained gross margins in the high 70% range, and improved Net Loss on our path to profitability. In addition, at the annual meeting of the American College of Chest Physicians (CHEST), we presented new clinical data on our Nodify XL2® and Nodify CDT® tests, and announced a new clinical study (CLARIFY) to expand our data in diverse patient populations tested in a real-world clinical setting. Building on this momentum, we are reiterating our prior guidance of $70-$72 million for 2024 and we look forward to achieving Adjusted EBITDA profitability in the second half of 2025. At Biodesix, our tests play a vital role in treating the deadliest of all cancers. Our committed and driven team embraces the opportunity, and the responsibility, to transform the standard of care to improve outcomes for patients.”

Third Quarter Ended September 30, 2024 Business Highlights

Grew Lung Diagnostic test volume to 13,900, a 34% improvement over the third quarter of 2023.
Quarterly gross profit margin of 77.0% versus 76.1% for the third quarter of 2023.
Presented compelling new data at the CHEST Annual Meeting and announced the launch of a new clinical study, CLARIFY.
- New data was presented detailing the experience of healthcare providers using the Nodify Lung® Nodule Risk Assessment Tests (Nodify XL2 and Nodify CDT tests) in over 35,000 patients tested in a real-world clinical setting. Results shared were consistent with prior studies, highlighting the high proportion of results that up- or down-classify patients into actionable risk categories with clear, guideline-recommended, diagnostic plans.
- The new study, CLARIFY, is designed to confirm performance of the Nodify CDT and Nodify XL2 tests in diverse patient subgroups through a retrospective chart review of up to 4,000 patients that were tested in a real-world clinical setting. The study’s intent is to expand the extensive evidence characterizing the validation and utility of Nodify Lung testing.

Third Quarter Ended September 30, 2024 Financial Highlights

Total revenue of $18.2 million, an increase of 35% over the third quarter 2023:
- Lung Diagnostic revenue of $17.2 million reflected a year-over-year increase of 40% driven by the continued adoption of Nodify XL2 and Nodify CDT nodule risk assessment tests and strong reimbursement. However, test volumes were impacted at the end of the third quarter by disruption to patients, healthcare providers, and Biodesix teammates in the southeast due to Hurricane Helene;
- Biopharmaceutical Services revenue of $1.0 million decreased 17% year-over-year, driven by the timing of receipt of samples and shift of the completion of certain projects from the end of the third quarter into the beginning of the fourth;
Third quarter 2024 gross profit of $14.0 million, or 77.0% gross margin compared to 76.1% gross margin in the comparable prior year period. Our steady margin performance is primarily driven by volume growth in Lung Diagnostic testing that continues to drive down the per test costs;
Operating expenses (excluding direct costs and expenses) of $22.6 million, an increase of 29% as compared to the third quarter 2023, which includes $3.0 million of non-cash stock compensation expense and depreciation and amortization as compared to $1.7 million in third quarter of 2023. This increase is primarily attributable to an increase in sales and marketing costs to support both business lines’ sales growth to enhance product awareness and drive adoption, and an increase in depreciation expense related to the leasehold improvements in the Company’s Louisville, CO offices and laboratory which opened in January 2024;
Net loss of $10.3 million, an improvement of 6% as compared to the same period of 2023;
Adjusted EBITDA was a loss of $5.6 million, a slight increase over the loss of $5.4 million in the third quarter of 2023 and consistent with the second quarter of 2024;
Cash and cash equivalents of $31.4 million as of September 30, 2024, a decrease from $42.2 million from June 30, 2024;
- Cash and cash equivalents as of September 30, 2024 includes the final milestone payment of $6.1 million for the acquisition of Integrated Diagnostics in 2018.

2024 – 2025 Financial Outlook

The Company is reiterating the 2024 revenue forecast of between $70 million and $72 million.

Conference call and webcast information

Listeners can register for the webcast via this link. Analysts who wish to participate in the question-and-answer session should use this link. A replay of the webcast will be available via the Company’s investor relations page on the website approximately two hours after the call’s conclusion. Participants are advised to join 15 minutes prior to the start time.

For a full list of Biodesix press releases and webinars, please visit biodesix.com.

About Biodesix

Biodesix is a leading diagnostic solutions company with five Medicare-covered tests available for patients with lung diseases. The blood-based Nodify Lung® Nodule Risk Assessment, consisting of the Nodify XL2® and the Nodify CDT® tests, evaluates the risk of malignancy in pulmonary nodules, enabling physicians to better triage patients to the most appropriate course of action. The blood-based IQLung™ test portfolio for lung cancer patients integrates the GeneStrat® targeted ddPCR™ test, the GeneStrat NGS® test, and the VeriStrat® test to support treatment decisions across all stages of lung cancer and expedite personalized treatment. In addition, Biodesix collaborates with the world’s leading biopharmaceutical companies to provide biomarker discovery, diagnostic test development, and clinical trial support services. For more information about Biodesix, visit biodesix.com.

Trademarks: Biodesix, Nodify Lung, Nodify XL2, Nodify CDT, IQLung, GeneStrat, GeneStrat NGS, and VeriStrat are trademarks or registered trademarks of Biodesix, Inc. The ddPCR technology is a trademark of Bio-Rad Laboratories, Inc.

Use of Non-GAAP Financial Measure

Biodesix reported results are presented in accordance with generally accepted accounting principles in the United States (GAAP). Biodesix has provided in this press release financial information that has not been prepared in accordance with GAAP. Biodesix uses the non-GAAP financial measure, Adjusted EBITDA, internally in analyzing its financial results and believes that use of this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Biodesix financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Biodesix financial statements prepared in accordance with GAAP. A reconciliation of Biodesix historical non-GAAP financial measure to the most directly comparable GAAP measure has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of Net loss to Adjusted EBITDA, helps investors make comparisons between our Company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.

Adjusted EBITDA is used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures. Period-to-period comparisons of Adjusted EBITDA help our management identify additional trends in our financial results that may not be shown solely by period- to-period comparisons of Net loss or Loss from operations. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items and may not be directly comparable to similarly titled metrics used by other companies.

We calculate Adjusted EBITDA as Net loss adjusted to exclude interest, income tax expense, if any, depreciation and amortization, share-based compensation expense, loss on debt extinguishments, net, COVID-19 revenue, COVID-19 direct costs and expenses, change in fair value of warrant liabilities, net, other income, net, and other non-recurring items. Non-recurring items are excluded as they are not representative of our underlying operating performance. We also exclude revenue and direct costs and expenses associated with COVID-19 because we believe that these revenues and expenses do not reflect expected future operating results as they do not represent our Lung Diagnostic and Biopharmaceutical Services business. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for Loss from operations, Net loss, and other GAAP measures.

Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict,” “potential,” “opportunity,” “goals,” or “should,” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors. Biodesix has based these forward-looking statements largely on its current expectations and projections about future events and trends. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions. Forward-looking statements may include information concerning the impact of backlog and the timing and assumptions regarding collection of revenues on projections, availability of funds and future capital including under the term loan facility, expectations regarding revenue and margin growth and its impact on profitability, and the impact of a pandemic, epidemic, or outbreak, including the COVID-19 pandemic, on Biodesix and its operations and financial performance. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. The Company’s ability to continue as a going concern could cause actual results to differ materially from those contemplated in this press release and additionally, other factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Biodesix most recent annual report on Form 10-K, filed March 1, 2024 or subsequent quarterly reports on Form 10-Q during 2024, if applicable. Biodesix undertakes no obligation to revise or publicly release the results of any revision to such forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.

Contacts:
Media:
Natalie St. Denis
natalie.stdenis@
biodesix.com
(720) 925-9285

Investors:
Chris Brinzey
chris.brinzey@
westwicke.com
(339) 970-2843

Biodesix, Inc. Condensed Balance Sheets (unaudited) (in thousands, except share data)

	September 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	31,406		$	26,284
Accounts receivable, net of allowance for credit losses of $246 and $65		8,036			7,679
Other current assets		4,575			5,720
Total current assets		44,017			39,683
Non-current assets
Property and equipment, net		28,683			27,867
Intangible assets, net		6,438			7,911
Operating lease right-of-use assets		1,918			1,745
Goodwill		15,031			15,031
Other long-term assets		6,656			6,859
Total non-current assets		58,726			59,413
Total assets	$	102,743		$	99,096

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	2,537		$	2,929
Accrued liabilities		8,553			7,710
Deferred revenue		676			324
Current portion of operating lease liabilities		624			252
Current portion of contingent consideration		—			21,857
Current portion of notes payable		29			51
Other current liabilities		544			293
Total current liabilities		12,963			33,416
Non-current liabilities
Long-term notes payable, net of current portion		36,112			35,225
Long-term operating lease liabilities		25,191			25,163
Other long-term liabilities		620			712
Total non-current liabilities		61,923			61,100
Total liabilities		74,886			94,516
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value, 5,000,000 authorized; 0 (2024 and 2023) issued and outstanding		—			—
Common stock, $0.001 par value, 200,000,000 authorized; 145,465,941 (2024) and 96,235,883 (2023) shares issued and outstanding		145			96
Additional paid-in capital		481,958			424,050
Accumulated deficit		(454,246	)		(419,566	)
Total stockholders’ equity		27,857			4,580
Total liabilities and stockholders’ equity	$	102,743		$	99,096

Biodesix, Inc. Condensed Statements of Operations (unaudited) (in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenues
Diagnostic Testing revenue	$	17,168		$	12,301		$	47,503		$	32,395
Biopharmaceutical Services and other revenue		983			1,190			3,391			2,024
Total revenues		18,151			13,491			50,894			34,419
Direct costs and expenses		4,179			3,229			11,231			9,636
Research and development		2,547			1,938			7,145			8,099
Sales, marketing, general and administrative		20,016			15,496			60,232			51,136
Impairment loss on intangible assets		—			—			135			20
Total operating expenses		26,742			20,663			78,743			68,891
Loss from operations		(8,591	)		(7,172	)		(27,849	)		(34,472	)
Other (expense) income:
Interest expense		(2,041	)		(2,386	)		(6,506	)		(7,207	)
Loss on extinguishment of liabilities		—			—			(248	)		—
Change in fair value of warrant liability, net		—			(1,393	)		—			(1,332	)
Other (expense) income, net		374			2			(77	)		4
Total other expense		(1,667	)		(3,777	)		(6,831	)		(8,535	)


Net loss	$	(10,258	)	$	(10,949	)	$	(34,680	)	$	(43,007	)
Net loss per share, basic and diluted	$	(0.07	)	$	(0.14	)	$	(0.28	)	$	(0.55	)
Weighted-average shares outstanding, basic and diluted		146,296			79,709			123,634			78,672

Biodesix, Inc. Reconciliation of Net Loss to Adjusted EBITDA (unaudited) (in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net loss	$	(10,258	)	$	(10,949	)	$	(34,680	)	$	(43,007	)
Interest expense		2,041			2,386			6,506			7,207
Depreciation and amortization		1,492			782			4,324			2,351
Share-based compensation expense		1,515			954			5,373			4,292
Loss on extinguishment of liabilities		—			—			248			—
COVID-19 Revenue		—			—			—			(13	)
COVID-19 Direct costs and expenses		—			—			—			1
Change in fair value of warrant liability, net		—			1,393			—			1,332
Other expense (income), net		(374	)		(2	)		77			(4	)
Adjusted EBITDA	$	(5,584	)	$	(5,436	)	$	(18,152	)	$	(27,841	)

Markets News

Jim Cramer Warns Apple Stock Should Have 'Never Been Up That Much' After Q3 Earnings Even As This Analyst Defends iPhone 16 Launch

01.11.2024 by admin

After Apple Inc.’s AAPL forecast cuts following the company’s fourth-quarter results, “Mad Money” host Jim Cramer cautions that “the stock should never have been up that much,” while Dan Ives defends the company’s strong iPhone 16 launch.

What Happened: On Thursday, Cramer took to X, formerly Twitter, and suggested that Apple’s lowered financial forecast, indicating a slowdown, has now been “absorbed” by the market, which he thinks brings down overhyped expectations to a more “reasonable” level

Okay we are over the big bad forecast cut for Apple. Tomorrow we get price target cuts and maybe a downgrade or two but now expectations are at last reasonable.. Interesting that Europe was strong for BOTH Apple and Amazon

— Jim Cramer (@jimcramer) October 31, 2024

Cramer also implied Apple hasn’t faced as much criticism for spending on AI compared to other tech giants, possibly because investors don’t think Apple’s AI efforts are as significant or game-changing.

“Oh and, tell me, please, who was surprised by the forecast guidedown? The stock should never have been up that much…,” he stated.

Let’s noodle on this. The hyperscalers are all attacked for spending too much. Apple gets a free a.i. ride but it means nothing to the Apple bears…Oh and, tell me, please, who was surprised by the forecast guidedown? The stock should never have been up that much…

— Jim Cramer (@jimcramer) October 31, 2024

Contrarily, Wedbush analyst Ives defended Apple’s fourth-quarter performance. He lauded the successful launch of iPhone 16 and forecasted a robust December quarter for the company, propelled by the rollout of Apple Intelligence.

Ives also conveyed his conviction that the strong performance will persist throughout the rest of the fiscal year 2025, despite a lower guide delta for wearables, Mac, and iPad.

This was a solid q for Apple and the iPhone 16 launch appears be off to a very good start. The rollout of Apple Intelligence will result in a strong Dec q but will also flow into rest of FY25. We believe Dec guide delta is lower wearables/Mac/iPad..iPhone and Services solid🐂🏆🍎

— Dan Ives (@DivesTech) November 1, 2024

Why It Matters: Apple announced fiscal fourth-quarter revenue of $94.9 billion, surpassing analyst predictions of $94.56 billion. The company also reported adjusted earnings of $1.64 per share for the quarter, exceeding expectations of $1.60 per share.

This marks the seventh consecutive quarter that Apple has exceeded analyst forecasts for both revenue and earnings, according to Benzinga Pro.

During the earnings call on Thursday, Apple CEO Tim Cook said that the adoption rate of iOS 18.1 has doubled that of its predecessor, iOS 17.1, indicating a strong demand for the new iPhone 16.

However, previously it was reported that Apple had to resort to aggressive pricing strategies, including discounts on Alibaba’s Tmall, to counter the initial lukewarm response to the iPhone 16 in China.

Price Action: Apple’s stock fell 1.8% on Thursday to close at $225.91, and fell over 1.2% in premarket trading on Friday. Year-to-date, Apple’s shares are up 21.7%, according to Benzinga Pro data.

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Photo courtesy: Apple

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Lastest news News

Boeing Sweetens Deal With 38% Wage Hike, $12K Bonus And More To End 7-Week Strike: Vote Set For Monday

01.11.2024 by admin

Striking employees at Boeing Co. BA are poised to vote on a new contract proposal on Monday. The proposal, which includes a 38% wage increase over four years and a larger signing bonus, has received backing from the workers’ union.

What Happened: The International Association of Machinists and Aerospace Workers (IAM) stated that they have negotiated the best possible terms with Boeing. Previously, union members had turned down two offers from the company.

Reuters reported on Friday that this new offer comes as Boeing attempts to stabilize its finances amid a seven-week strike involving over 33,000 factory workers on the U.S. West Coast. The strike has significantly affected Boeing’s cash flow and halted production of key aircraft models.

Acting U.S. Secretary of Labor Julie Su facilitated recent negotiations, lauding both parties for their efforts. President Joe Biden also praised the union and Boeing for reaching a new contract proposal, highlighting the sacrifices made by Boeing’s machinists.

Boeing’s latest offer includes a $12,000 ratification bonus, integrating previous bonuses into workers’ 401(k) retirement accounts. Despite the improved terms, approval remains uncertain as some workers express dissatisfaction due to the absence of a defined-benefit pension.

Why It Matters: The ongoing strike has already cost Boeing an estimated $2 billion over the last five weeks. The machinists’ rejection of previous offers has added further uncertainty to Boeing’s financial recovery efforts.

In a bid to bolster its finances, Boeing recently expanded its stock offering, aiming for a $20.7 billion windfall. The company priced its public offerings at 112.5 million shares of common stock at $143.00 each.

Price Action: Boeing saw its stock climb higher by 2.77% during the after-hours market after it closed at $149.31 on Thursday, according to Benzinga Pro.

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News Real estate

RE/MAX HOLDINGS, INC. REPORTS THIRD QUARTER 2024 RESULTS

01.11.2024 by admin

Total Revenue of $78.5 Million, Adjusted EBITDA of $27.3 Million

DENVER, Oct. 31, 2024 /PRNewswire/ —

Third Quarter 2024 Highlights
(Compared to third quarter 2023 unless otherwise noted)

Total Revenue decreased 3.4% to $78.5 million
Revenue excluding the Marketing Funds¹ decreased 3.3% to $58.4 million, driven by negative 3.0% organic growth² and 0.3% adverse foreign currency movements
Net income attributable to RE/MAX Holdings, Inc. of $1.0 million and earnings per diluted share (GAAP EPS) of $0.05
Adjusted EBITDA³ increased 2.0% to $27.3 million, Adjusted EBITDA margin³ of 34.8% and Adjusted earnings per diluted share (Adjusted EPS³) of $0.38
Total agent count increased 174 agents, or 0.1%, to 145,483 agents
U.S. and Canada combined agent count decreased 4.4% to 78,201 agents
Total open Motto Mortgage franchises decreased 3.3% to 234 offices⁴

RE/MAX Holdings, Inc. (the “Company” or “RE/MAX Holdings”) RMAX, parent company of RE/MAX, one of the world’s leading franchisors of real estate brokerage services, and Motto Mortgage (“Motto”), the first and only national mortgage brokerage franchise brand in the U.S., today announced operating results for the quarter ended September 30, 2024.

“We continue to drive operational efficiency across the enterprise, which helped generate better-than-forecasted third-quarter financial results,” said Erik Carlson, RE/MAX Holdings Chief Executive Officer. “Our team is developing new revenue opportunities while working to run our core business better each day. That effort has contributed to our strong margin performance the past two quarters, which is an encouraging trend.”

Carlson continued: “Business optimization, having a growth mindset, and delivering the absolute best customer experience possible are the cornerstones of our playbook. We are making measurable progress on each of these. With increasing optimism about the trajectory of future interest rates, our growing global agent count, and our bold new initiatives – including providing innovative and enhanced technology products to our RE/MAX affiliates, improving the agent-customer experience by cultivating leads, and starting to monetize our digital assets – we are well-positioned to finish the year with positive momentum.”

Third Quarter 2024 Operating Results

Agent Count

The following table compares agent count as of September 30, 2024 and 2023:


	As of September 30,		Change
	2024	2023	#	%
U.S.	52,808	56,494	(3,686)	(6.5)
Canada	25,393	25,288	105	0.4
Subtotal	78,201	81,782	(3,581)	(4.4)
Outside the U.S. & Canada	67,282	63,527	3,755	5.9
Total	145,483	145,309	174	0.1

Revenue

RE/MAX Holdings generated revenue of $78.5 million in the third quarter of 2024, a decrease of $2.7 million, or 3.4%, compared to $81.2 million in the third quarter of 2023. Revenue excluding the Marketing Funds was $58.4 million in the third quarter of 2024, a decrease of $2.0 million, or 3.3%, versus the same period in 2023. The decrease in Revenue excluding the Marketing Funds was attributable to negative organic revenue growth of 3.0% and adverse foreign currency movements of 0.3%. Negative organic revenue growth was principally driven by a decrease in U.S. agent count and a reduction in revenue from previous acquisitions, partially offset by an increase in Broker fee revenue.

Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $1.5 million, or 3.8%, compared to the third quarter of 2023 and accounted for 66.4% of Revenue excluding the Marketing Funds in the third quarter of 2024 compared to 66.7% of Revenue excluding the Marketing Funds in the prior-year period.

Operating Expenses

Total operating expenses were $63.3 million for the third quarter of 2024, a decrease of $39.0 million, or 38.1%, compared to $102.2 million in the third quarter of 2023. During the third quarter of 2023, the Company agreed to pay $55.0 million to settle various industry class-action lawsuits, which was recorded in the third quarter of 2023. A $24.9 million gain on reduction in tax receivable agreement liability was also recorded in the third quarter of 2023.

Selling, operating and administrative expenses were $35.9 million in the third quarter of 2024, a decrease of $7.2 million, or 16.6%, compared to the third quarter of 2023 and represented 61.5% of Revenue excluding the Marketing Funds, compared to 71.4% in the prior-year period. Third quarter 2024 selling, operating and administrative expenses decreased primarily due to lower personnel costs and a decrease in bad debt, legal, and other technology expenses.

Net Income (Loss) and GAAP EPS

Net income attributable to RE/MAX Holdings was $1.0 million for the third quarter of 2024 compared to net loss of ($59.5) million for the third quarter of 2023. Reported basic and diluted GAAP earnings per share were $0.05 each for the third quarter of 2024 compared to basic and diluted GAAP loss per share of ($3.28) each in the third quarter of 2023.

Adjusted EBITDA and Adjusted EPS

Adjusted EBITDA was $27.3 million for the third quarter of 2024, an increase of $0.5 million, or 2.0%, compared to the third quarter of 2023. Third quarter 2024 Adjusted EBITDA increased primarily due to a decrease in bad debt, legal, personnel, and other technology expenses, partially offset by a decrease in U.S. agent count. Adjusted EBITDA margin was 34.8% in the third quarter of 2024, compared to 32.9% in the third quarter of 2023.

Adjusted basic and diluted EPS were $0.39 and $0.38, respectively, for the third quarter of 2024 compared to Adjusted basic and diluted EPS of $0.40 each for the third quarter of 2023. The ownership structure used to calculate Adjusted basic and diluted EPS for the quarter ended September 30, 2024, assumes RE/MAX Holdings owned 100% of RMCO, LLC (“RMCO”). The weighted average ownership RE/MAX Holdings had in RMCO was 60.0% for the quarter ended September 30, 2024.

Balance Sheet

As of September 30, 2024, the Company had cash and cash equivalents of $83.8 million, an increase of $1.2 million from December 31, 2023. As of September 30, 2024, the Company had $441.8 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $444.6 million as of December 31, 2023.

Share Repurchases and Retirement

As previously disclosed, in January 2022 the Company’s Board of Directors authorized a common stock repurchase program of up to $100 million. During the three months ended September 30, 2024, the Company did not repurchase any shares. As of September 30, 2024, $62.5 million remained available under the share repurchase program.

Impact of Hurricanes Helene and Milton

Several of the Company’s affiliates were impacted by the recent hurricanes. While the extent of the hurricanes’ full impact on the Company’s networks is not entirely known at this time, the Company currently estimates that its fourth quarter revenue will be lower than previously expected as financial support is provided to affected affiliates for a limited time. As a result, the Company’s fourth quarter and full year revenue (below) was reduced by approximately $1.0 million to $1.5 million, of which approximately 40% relates to the Marketing Funds, to reflect expected foregone revenue in the form of fee waivers provided to affiliates impacted by these storms.

Outlook

The Company’s fourth quarter and full year 2024 Outlook includes the impact of the fee waivers to hurricane-impacted affiliates and assumes no further currency movements, acquisitions, or divestitures.

For the fourth quarter of 2024, RE/MAX Holdings expects:

Agent count to change 0.0% to 1.0% over fourth quarter 2023;
Revenue in a range of $71.0 million to $76.0 million (including revenue from the Marketing Funds in a range of $18.5 million to $20.5 million); and
Adjusted EBITDA in a range of $20.5 million to $23.5 million.

For the full year 2024, the Company now expects:

Agent count to change 0.0% to 1.0% over full year 2023, changed from negative 1.0% to positive 1.0%;
Revenue in a range of $306.0 million to $311.0 million (including revenue from the Marketing Funds in a range of $78.5 million to $80.5 million), changed from $305.0 million to $315.0 million (including revenue from the Marketing Funds in a range of $78.0 million to $82.0 million); and
Adjusted EBITDA in a range of $95.0 million to $98.0 million, changed from $93.0 million to $98.0 million.

Webcast and Conference Call

The Company will host a conference call for interested parties on Friday, November 1, 2024, beginning at 8:30 a.m. Eastern Time. Interested parties can register in advance for the conference call using the link below:

https://registrations.events/direct/Q4I941153

Interested parties also can access a live webcast through the Investor Relations section of the Company’s website at http://investors.remaxholdings.com. Please dial-in or join the webcast 10 minutes before the start of the conference call. An archive of the webcast will be available on the Company’s website for a limited time as well.

Basis of Presentation

Unless otherwise noted, the results presented in this press release are consolidated and exclude adjustments attributable to the non-controlling interest.

Footnotes:

¹Revenue excluding the Marketing Funds is a non-GAAP measure of financial performance that differs from U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and a reconciliation to the most directly comparable U.S. GAAP measure is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue excluding the Marketing Funds:
Total revenue	$	78,478	$	81,223	$	235,218	$	249,071
Less: Marketing Funds fees		20,098		20,853		60,331		63,272
Revenue excluding the Marketing Funds	$	58,380	$	60,370	$	174,887	$	185,799

²The Company defines organic revenue growth as revenue growth from continuing operations excluding (i) revenue from Marketing Funds, (ii) revenue from acquisitions, and (iii) the impact of foreign currency movements. The Company defines revenue from acquisitions as the revenue generated from the date of an acquisition to its first anniversary (excluding Marketing Funds revenue related to acquisitions where applicable).

³Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS are non-GAAP measures. These terms are defined at the end of this release. Please see Tables 5 and 6 appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.

⁴Total open Motto Mortgage franchises includes only “bricks and mortar” offices with a unique physical address with rights granted by a full franchise agreement with Motto Franchising, LLC and excludes any “virtual” offices or Branchise^SM offices.

# # #

About RE/MAX Holdings, Inc.

RE/MAX Holdings, Inc. RMAX is one of the world’s leading franchisors in the real estate industry, franchising real estate brokerages globally under the RE/MAX^® brand, and mortgage brokerages within the U.S. under the Motto^® Mortgage brand. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Now with more than 140,000 agents in nearly 9,000 offices and a presence in more than 110 countries and territories, nobody in the world sells more real estate than RE/MAX, as measured by total residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Franchising, LLC, a ground-breaking mortgage brokerage franchisor, in 2016. Motto Mortgage, the first and only national mortgage brokerage franchise brand in the U.S., has grown to over 225 offices across more than 40 states.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” “anticipate,” “may,” “will,” “would” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. Forward-looking statements include statements related to agent count; Motto open offices; franchise sales; revenue; operating expenses and cost management; the Company’s outlook for the fourth quarter and full year 2024; non-GAAP financial measures; housing and mortgage market conditions; interest rates; the amount of fee waivers to affiliates affected by recent hurricanes and the impact of such fee waivers on our fourth quarter and full year 2024 outlook; operational efficiencies; business optimization and delivering the absolute best customer experience; development of new revenue opportunities; our strong margin performance being an encouraging trend; increasing optimism about future interest rates; our growing global agent count and our bold new initiatives, including enhanced technology, improved customer experience with leads, and monetizing our digital assets; and being well positioned to finish the year with positive momentum. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily accurately indicate the times at which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, without limitation, (1) changes in the real estate market or interest rates and availability of financing, (2) changes in business and economic activity in general, (3) the Company’s ability to attract and retain quality franchisees, (4) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (5) changes in laws and regulations, (6) the Company’s ability to enhance, market, and protect its brands, (7) the Company’s ability to implement its technology initiatives, (8) risks related to the Company’s leadership transition, (9) fluctuations in foreign currency exchange rates, (10) the nature and amount of the exclusion of charges in future periods when determining Adjusted EBITDA is subject to uncertainty and may not be similar to such charges in prior periods, and (11) those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remaxholdings.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no obligation, to update this information to reflect future events or circumstances.

TABLE 1
RE/MAX Holdings, Inc.
Consolidated Statements of Income (Loss)
*(In thousands, except share and per share amounts)*
*(Unaudited)*

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue:
Continuing franchise fees	$	30,798	$	31,834	$	92,223	$	96,011
Annual dues		7,969		8,456		24,345		25,661
Broker fees		14,915		14,255		40,159		39,468
Marketing Funds fees		20,098		20,853		60,331		63,272
Franchise sales and other revenue		4,698		5,825		18,160		24,659
Total revenue		78,478		81,223		235,218		249,071
Operating expenses:
Selling, operating and administrative expenses		35,932		43,090		116,488		132,417
Marketing Funds expenses		20,098		20,853		60,331		63,272
Depreciation and amortization		7,237		8,195		22,489		24,236
Settlement and impairment charges		—		55,000		—		55,000
Gain on reduction in tax receivable agreement liability		—		(24,917)		—		(24,917)
Total operating expenses		63,267		102,221		199,308		250,008
Operating income (loss)		15,211		(20,998)		35,910		(937)
Other expenses, net:
Interest expense		(9,249)		(9,292)		(27,696)		(26,377)
Interest income		885		1,173		2,835		3,318
Foreign currency transaction gains (losses)		74		125		(568)		383
Total other expenses, net		(8,290)		(7,994)		(25,429)		(22,676)
Income (loss) before provision for income taxes		6,921		(28,992)		10,481		(23,613)
Provision for income taxes		(3,507)		(53,680)		(6,484)		(56,494)
Net income (loss)	$	3,414	$	(82,672)	$	3,997	$	(80,107)
Less: net income (loss) attributable to non-controlling interest		2,448		(23,218)		2,679		(21,992)
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	966	$	(59,454)	$	1,318	$	(58,115)

Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock
Basic	$	0.05	$	(3.28)	$	0.07	$	(3.22)
Diluted	$	0.05	$	(3.28)	$	0.07	$	(3.22)
Weighted average shares of Class A common stock outstanding
Basic		18,863,793		18,150,557		18,733,190		18,064,009
Diluted		19,483,798		18,150,557		19,063,279		18,064,009
Cash dividends declared per share of Class A common stock	$	—	$	0.23	$	—	$	0.69

TABLE 2
RE/MAX Holdings, Inc.
Consolidated Balance Sheets
*(In thousands, except share and per share amounts)*
*(Unaudited)*

	As of
	September 30,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	83,779	$	82,623
Restricted cash		72,599		43,140
Accounts and notes receivable, current portion, net of allowances		30,598		33,427
Income taxes receivable		1,693		1,706
Other current assets		13,224		15,669
Total current assets		201,893		176,565
Property and equipment, net of accumulated depreciation		8,295		8,633
Operating lease right of use assets		19,209		23,013
Franchise agreements, net		87,346		101,516
Other intangible assets, net		15,297		19,176
Goodwill		240,102		241,164
Other assets, net of current portion		6,507		7,083
Total assets	$	578,649	$	577,150
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	5,347	$	4,700
Accrued liabilities		105,132		107,434
Income taxes payable		1,274		766
Deferred revenue		22,625		23,077
Current portion of debt		4,600		4,600
Current portion of payable pursuant to tax receivable agreements		285		822
Operating lease liabilities		8,437		7,920
Total current liabilities		147,700		149,319
Debt, net of current portion		437,176		439,980
Deferred tax liabilities		11,281		10,797
Deferred revenue, net of current portion		15,482		17,607
Operating lease liabilities, net of current portion		25,044		31,479
Other liabilities, net of current portion		3,729		4,029
Total liabilities		640,412		653,211
Commitments and contingencies
Stockholders’ equity (deficit):
Class A common stock, par value $.0001 per share, 180,000,000 shares authorized; 18,872,052 and 18,269,284 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		2		2
Class B common stock, par value $.0001 per share, 1,000 shares authorized; 1 share issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		—		—
Additional paid-in capital		562,594		550,637
Accumulated deficit		(139,524)		(140,217)
Accumulated other comprehensive income (deficit), net of tax		35		638
Total stockholders’ equity attributable to RE/MAX Holdings, Inc.		423,107		411,060
Non-controlling interest		(484,870)		(487,121)
Total stockholders’ equity (deficit)		(61,763)		(76,061)
Total liabilities and stockholders’ equity (deficit)	$	578,649	$	577,150

TABLE 3
RE/MAX Holdings, Inc.
Consolidated Statements of Cash Flows
*(In thousands)*
*(Unaudited)*

	Nine Months Ended
	September 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	3,997	$	(80,107)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		22,489		24,236
Equity-based compensation expense		14,443		14,050
Bad debt expense		1,039		4,903
Deferred income tax expense (benefit)		434		51,799
Fair value adjustments to contingent consideration		(300)		(379)
Settlement payment, net		—		55,000
Loss (gain) on sale or disposition of assets, net		160		386
Non-cash lease benefit		(2,110)		(2,242)
Non-cash debt charges		646		644
Payment of contingent consideration in excess of acquisition date fair value		(360)		—
Gain on reduction in tax receivable agreement liability		—		(24,917)
Other, net		53		(73)
Changes in operating assets and liabilities		2,376		(23,675)
Net cash provided by operating activities		42,867		19,625
Cash flows from investing activities:
Purchases of property, equipment and capitalization of software		(5,821)		(4,249)
Other		698		679
Net cash used in investing activities		(5,123)		(3,570)
Cash flows from financing activities:
Payments on debt		(3,450)		(3,450)
Distributions paid to non-controlling unitholders		—		(8,667)
Dividends and dividend equivalents paid to Class A common stockholders		(591)		(13,492)
Payments related to tax withholding for share-based compensation		(2,548)		(4,014)
Common shares repurchased		—		(3,408)
Payment of contingent consideration		—		(360)
Other financing		(21)		—
Net cash used in financing activities		(6,610)		(33,391)
Effect of exchange rate changes on cash		(519)		21
Net increase (decrease) in cash, cash equivalents and restricted cash		30,615		(17,315)
Cash, cash equivalents and restricted cash, beginning of period		125,763		138,128
Cash, cash equivalents and restricted cash, end of period	$	156,378	$	120,813

TABLE 4

RE/MAX Holdings, Inc.

Agent Count

(Unaudited)

As of

September 30,

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

December 31,

September 30,

2024

2023

2022

Agent Count:

U.S.

Company-Owned Regions

46,283

46,780

47,302

48,401

49,576

50,011

50,340

51,491

52,804

Independent Regions

6,525

6,626

6,617

6,730

6,918

6,976

7,110

7,228

7,311

U.S. Total

52,808

53,406

53,919

55,131

56,494

56,987

57,450

58,719

60,115

Canada

Company-Owned Regions

20,515

20,347

20,151

20,270

20,389

20,354

20,172

20,228

20,174

Independent Regions

4,878

4,846

4,885

4,898

4,899

4,864

4,899

4,892

4,844

Canada Total

25,393

25,193

25,036

25,168

25,288

25,218

25,071

25,120

25,018

U.S. and Canada Total

78,201

78,599

78,955

80,299

81,782

82,205

82,521

83,839

85,133

Outside U.S. and Canada

Independent Regions

67,282

64,943

64,332

64,536

63,527

62,305

61,002

60,175

59,167

Outside U.S. and Canada Total

67,282

64,943

64,332

64,536

63,527

62,305

61,002

60,175

59,167

Total

145,483

143,542

143,287

144,835

145,309

144,510

143,523

144,014

144,300

TABLE 5
RE/MAX Holdings, Inc.
Adjusted EBITDA Reconciliation to Net Income (Loss)
*(In thousands, except percentages)*
*(Unaudited)*

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Net income (loss)	$	3,414		$	(82,672)		$	3,997		$	(80,107)
Depreciation and amortization		7,237			8,195			22,489			24,236
Interest expense		9,249			9,292			27,696			26,377
Interest income		(885)			(1,173)			(2,835)			(3,318)
Provision for income taxes		3,507			53,680			6,484			56,494
EBITDA		22,522			(12,678)			57,831			23,682
Settlement charge ⁽¹⁾		—			55,000			—			55,000
Equity-based compensation expense		4,618			4,891			14,443			14,050
Acquisition-related expense⁽²⁾		—			59			—			160
Fair value adjustments to contingent consideration⁽³⁾		(437)			(280)			(300)			(379)
Restructuring charges ⁽⁴⁾		(18)			4,278			(59)			4,245
Gain on reduction in tax receivable agreement liability ⁽⁵⁾		—			(24,917)			—			(24,917)
Other ⁽⁶⁾		605			395			2,444			1,471
Adjusted EBITDA⁽⁷⁾	$	27,290		$	26,748		$	74,359		$	73,312
Adjusted EBITDA Margin⁽⁷⁾		34.8	%		32.9	%		31.6	%		29.4	%


(1)	Represents the settlement of industry class-action lawsuits.
(2)	Acquisition-related expense includes personnel, legal, accounting, advisory and consulting fees incurred in connection with acquisition activities and integration of acquired companies.
(3)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(4)	During the third quarter of 2023, the Company announced a reduction in force and reorganization intended to streamline the Company’s operations and yield cost savings over the long term.
(5)	Gain on reduction in tax receivable agreement liability is a result of a valuation allowance on deferred tax assets recorded during the third quarter of 2023.
(6)	Other is primarily made up of employee retention related expenses from the Company’s CEO transition.
(7)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

TABLE 6
RE/MAX Holdings, Inc.
Adjusted Net Income (Loss) and Adjusted Earnings per Share
*(In thousands, except share and per share amounts)*
*(Unaudited)*

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net income (loss)	$	3,414	$	(82,672)	$	3,997	$	(80,107)
Amortization of acquired intangible assets		4,672		5,768		15,085		17,299
Provision for income taxes		3,507		53,680		6,484		56,494
Add-backs:
Settlement charge ⁽¹⁾		—		55,000		—		55,000
Equity-based compensation expense		4,618		4,891		14,443		14,050
Acquisition-related expense⁽²⁾		—		59		—		160
Fair value adjustments to contingent consideration⁽³⁾		(437)		(280)		(300)		(379)
Restructuring charges ⁽⁴⁾		(18)		4,278		(59)		4,245
Gain on reduction in tax receivable agreement liability ⁽⁵⁾		—		(24,917)		—		(24,917)
Other ⁽⁶⁾		605		395		2,444		1,471
Adjusted pre-tax net income		16,361		16,202		42,094		43,316
Less: Provision for income taxes at 25% ⁽⁷⁾		(4,091)		(4,051)		(10,524)		(10,829)
Adjusted net income⁽⁸⁾	$	12,270	$	12,151	$	31,570	$	32,487

Total basic pro forma shares outstanding		31,423,393		30,710,157		31,292,790		30,623,609
Total diluted pro forma shares outstanding		32,043,398		30,710,157		31,622,879		30,623,609

Adjusted net income basic earnings per share⁽⁸⁾	$	0.39	$	0.40	$	1.01	$	1.06
Adjusted net income diluted earnings per share⁽⁸⁾	$	0.38	$	0.40	$	1.00	$	1.06


(1)	Represents the settlement of industry class-action lawsuits.
(2)	Acquisition-related expense includes personnel, legal, accounting, advisory and consulting fees incurred in connection with acquisition activities and integration of acquired companies.
(3)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(4)	During the third quarter of 2023, the Company announced a reduction in force and reorganization intended to streamline the Company’s operations and yield cost savings over the long term.
(5)	Gain on reduction in tax receivable agreement liability is a result of a valuation allowance on deferred tax assets recorded during the third quarter of 2023.
(6)	Other is primarily made up of employee retention related expenses from the Company’s CEO transition.
(7)	The long-term tax rate assumes the exchange of all outstanding non-controlling interest partnership units for Class A Common Stock that (a) removes the impact of unusual, non-recurring tax matters and (b) does not estimate the residual impacts to foreign taxes of additional step-ups in tax basis from an exchange because that is dependent on stock prices at the time of such exchange and the calculation is impracticable.
(8)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

TABLE 7
RE/MAX Holdings, Inc.
Pro Forma Shares Outstanding
*(Unaudited)*

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Total basic weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	18,863,793	18,150,557	18,733,190	18,064,009
Remaining equivalent weighted average shares of stock outstanding on a pro forma basis assuming RE/MAX Holdings owned 100% of RMCO	12,559,600	12,559,600	12,559,600	12,559,600
Total basic pro forma weighted average shares outstanding	31,423,393	30,710,157	31,292,790	30,623,609

Total diluted weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	18,863,793	18,150,557	18,733,190	18,064,009
Remaining equivalent weighted average shares of stock outstanding on a pro forma basis assuming RE/MAX Holdings owned 100% of RMCO	12,559,600	12,559,600	12,559,600	12,559,600
Dilutive effect of unvested restricted stock units⁽¹⁾	620,005	—	330,089	—
Total diluted pro forma weighted average shares outstanding	32,043,398	30,710,157	31,622,879	30,623,609


(1)	In accordance with the treasury stock method.

TABLE 8
RE/MAX Holdings, Inc.
Adjusted Free Cash Flow & Unencumbered Cash
*(Unaudited)*

	Nine Months Ended
	September 30,
	2024		2023
Cash flow from operations	$	42,867	$	19,625
Less: Purchases of property, equipment and capitalization of software		(5,821)		(4,249)
(Increases) decreases in restricted cash of the Marketing Funds⁽¹⁾		(1,959)		12,222
Adjusted free cash flow⁽²⁾		35,087		27,598

Adjusted free cash flow ⁽²⁾		35,087		27,598
Less: Tax/Other non-dividend distributions to RIHI		—		—
Adjusted free cash flow after tax/non-dividend distributions to RIHI⁽²⁾		35,087		27,598

Adjusted free cash flow after tax/non-dividend distributions to RIHI ⁽²⁾		35,087		27,598
Less: Debt principal payments		(3,450)		(3,450)
Unencumbered cash generated⁽²⁾	$	31,637	$	24,148

Summary
Cash flow from operations	$	42,867	$	19,625
Adjusted free cash flow⁽²⁾	$	35,087	$	27,598
Adjusted free cash flow after tax/non-dividend distributions to RIHI ⁽²⁾	$	35,087	$	27,598
Unencumbered cash generated⁽²⁾	$	31,637	$	24,148

Adjusted EBITDA ⁽²⁾	$	74,359	$	73,312
Adjusted free cash flow as % of Adjusted EBITDA⁽²⁾		47.2 %		37.6 %
Adjusted free cash flow less distributions to RIHI as % of Adjusted EBITDA⁽²⁾		47.2 %		37.6 %
Unencumbered cash generated as % of Adjusted EBITDA⁽²⁾		42.5 %		32.9 %


(1)	This line reflects any subsequent changes in the restricted cash balance (which under GAAP reflects as either (a) an increase or decrease in cash flow from operations or (b) an incremental amount of purchases of property and equipment and capitalization of developed software) to remove the impact of changes in restricted cash in determining adjusted free cash flow.
(2)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

Non-GAAP Financial Measures

The SEC has adopted rules to regulate the use in filings with the SEC and in public disclosures of financial measures that are not in accordance with U.S. GAAP, such as revenue excluding the Marketing Funds, Adjusted EBITDA and the ratios related thereto, Adjusted net income, Adjusted basic and diluted earnings per share (Adjusted EPS) and adjusted free cash flow. These measures are derived based on methodologies other than in accordance with U.S. GAAP.

Revenue excluding the Marketing Funds is calculated directly from our consolidated financial statements as Total revenue less Marketing Funds fees.

The Company defines Adjusted EBITDA as EBITDA (consolidated net income before depreciation and amortization, interest expense, interest income and the provision for income taxes, each of which is presented in the unaudited consolidated financial statements included earlier in this press release), adjusted for the impact of the following items that are either non-cash or that the Company does not consider representative of its ongoing operating performance: loss or gain on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gain on reduction in tax receivable agreement liability, expense or income related to changes in the estimated fair value measurement of contingent consideration, restructuring charges and other non-recurring items. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.

Because Adjusted EBITDA and Adjusted EBITDA margin omit certain non-cash items and other non-recurring cash charges or other items, the Company believes that each measure is less susceptible to variances that affect its operating performance resulting from depreciation, amortization and other non-cash and non-recurring cash charges or other items. The Company presents Adjusted EBITDA and the related Adjusted EBITDA margin because the Company believes they are useful as supplemental measures in evaluating the performance of its operating businesses and provides greater transparency into the Company’s results of operations. The Company’s management uses Adjusted EBITDA and Adjusted EBITDA margin as factors in evaluating the performance of the business.

Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analyzing the Company’s results as reported under U.S. GAAP. Some of these limitations are:

these measures do not reflect changes in, or cash requirements for, the Company’s working capital needs;
these measures do not reflect the Company’s interest expense, or the cash requirements necessary to service interest or principal payments on its debt;
these measures do not reflect the Company’s income tax expense or the cash requirements to pay its taxes;
these measures do not reflect the cash requirements to pay dividends to stockholders of the Company’s Class A common stock and tax and other cash distributions to its non-controlling unitholders;
these measures do not reflect the cash requirements pursuant to the tax receivable agreements;
these measures do not reflect the cash requirements for share repurchases;
these measures do not reflect the cash requirements for the settlement of industry class-action lawsuits and other legal settlements;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures do not reflect any cash requirements for such replacements;
although equity-based compensation is a non-cash charge, the issuance of equity-based awards may have a dilutive impact on earnings per share; and
other companies may calculate these measures differently so similarly named measures may not be comparable.

The Company’s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments to EBITDA in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior quarters, such as gain or loss on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gains or losses from changes in the tax receivable agreement liability, expense or income related to changes in the fair value measurement of contingent consideration, restructuring charges and other non-recurring items. The exclusion of these charges and costs in future periods will have a significant impact on the Company’s Adjusted EBITDA. The Company is not able to provide a reconciliation of the Company’s non-GAAP financial guidance to the corresponding U.S. GAAP measures without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

Adjusted net income is calculated as Net income attributable to RE/MAX Holdings, assuming the full exchange of all outstanding non-controlling interests for shares of Class A common stock as of the beginning of the period (and the related increase to the provision for income taxes after such exchange), plus primarily non-cash items and other items that management does not consider to be useful in assessing the Company’s operating performance (e.g., amortization of acquired intangible assets, gain on sale or disposition of assets and sub-lease, non-cash impairment charges, acquisition-related expense, restructuring charges and equity-based compensation expense).

Adjusted basic and diluted earnings per share (Adjusted EPS) are calculated as Adjusted net income (as defined above) divided by pro forma (assuming the full exchange of all outstanding non-controlling interests) basic and diluted weighted average shares, as applicable.

When used in conjunction with GAAP financial measures, Adjusted net income and Adjusted EPS are supplemental measures of operating performance that management believes are useful measures to evaluate the Company’s performance relative to the performance of its competitors as well as performance period over period. By assuming the full exchange of all outstanding non-controlling interests, management believes these measures:

facilitate comparisons with other companies that do not have a low effective tax rate driven by a non-controlling interest on a pass-through entity;
facilitate period over period comparisons because they eliminate the effect of changes in Net income attributable to RE/MAX Holdings, Inc. driven by increases in its ownership of RMCO, LLC, which are unrelated to the Company’s operating performance; and
eliminate primarily non-cash and other items that management does not consider to be useful in assessing the Company’s operating performance.

Adjusted free cash flow is calculated as cash flows from operations less capital expenditures and any changes in restricted cash of the Marketing Funds, all as reported under GAAP, and quantifies how much cash a company has to pursue opportunities that enhance shareholder value. The restricted cash of the Marketing Funds is limited in use for the benefit of franchisees and any impact to adjusted free cash flow is removed. The Company believes adjusted free cash flow is useful to investors as a supplemental measure as it calculates the cash flow available for working capital needs, re-investment opportunities, potential Independent Region and strategic acquisitions, dividend payments or other strategic uses of cash.

Adjusted free cash flow after tax and non-dividend distributions to RIHI is calculated as adjusted free cash flow less tax and other non-dividend distributions paid to RIHI (the non-controlling interest holder) to enable RIHI to satisfy its income tax obligations. Similar payments would be made by the Company directly to federal and state taxing authorities as a component of the Company’s consolidated provision for income taxes if a full exchange of non-controlling interests occurred in the future. As a result and given the significance of the Company’s ongoing tax and non-dividend distribution obligations to its non-controlling interest, adjusted free cash flow after tax and non-dividend distributions, when used in conjunction with GAAP financial measures, provides a meaningful view of cash flow available to the Company to pursue opportunities that enhance shareholder value.

Unencumbered cash generated is calculated as adjusted free cash flow after tax and non-dividend distributions to RIHI less quarterly debt principal payments less annual excess cash flow payment on debt, as applicable. Given the significance of the Company’s excess cash flow payment on debt, when applicable, unencumbered cash generated, when used in conjunction with GAAP financial measures, provides a meaningful view of the cash flow available to the Company to pursue opportunities that enhance shareholder value after considering its debt service obligations.

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SOURCE RE/MAX Holdings, Inc.

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Lastest news News

Hometown Hero Honors Veterans with $60,000 Donation to Support Texas VFW

01.11.2024 by admin

AUSTIN, Texas, Nov. 01, 2024 (GLOBE NEWSWIRE) — Hometown Hero, the veteran-supporting cannabusiness of hemp-derived THC and cannabidiol-based products, will present officers from the Texas Department of the Veterans of Foreign Wars (VFW) with a $60K donation to help the organization continue its mission of providing essential resources and assistance for veterans.

WHEN:	November 4, 2024 at 1 p.m.

WHERE:	Texas VFW Headquarters (8503 North Interstate 35, Austin, Texas 78753).

WHAT:	The ceremony will include remarks from Hometown Hero executives, Texas VFW leadership and local veterans, as well as a formal check presentation and group photo opportunities.

WHY:	Hometown Hero donates a portion of its profits to veteran-focused organizations that provide vital support, resources and care to veterans in need. The company also provides year-round discounts for active and retired military service members for its premium line of hemp-derived and cannabidiol-based products, which are increasingly being used by veterans as an alternative to opioids. Visit here to learn more about how Hometown Hero is supporting veterans.

“Supporting our veterans is at the heart of everything we do at Hometown Hero,” said Lukas Gilkey, cofounder of Hometown Hero and a U.S. Coast Guard veteran. “This donation to the Texas VFW Foundation is our way of giving back to those who have sacrificed so much for our country. As we celebrate Veterans Day, we’re honored to help provide the resources and support veterans need, and we look forward to continuing this mission in every way we can.”

About Hometown Hero
Headquartered in Austin, Texas, Hometown Hero manufactures and distributes a variety of hemp-derived products, such as Delta-9 THC, Delta-8 THC, CBD, CBDA + CBGA, among others. Founded in 2015 by Lukas Gilkey and Lewis Hamer, the company donates a portion of all proceeds to various charities and organizations that support veterans. For more information, visit https://hometownhero.com/ or follow the brand on Twitter and Instagram @HometownHeroATX.

About the Texas VFW
The Texas Veterans of Foreign Wars (VFW) is a statewide organization committed to advocating for and supporting veterans who have served in overseas conflicts. With 288 posts and 60,000 members across Texas, the organization provides vital resources to veterans, such as access to healthcare, benefits assistance and educational programs. More information can be found by visiting https://www.texasvfw.org.

MEDIA CONTACT:

George Medici 
PondelWilkinson 
310.279.5968 
gmedici@pondel.com

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News Real estate

Automotive Properties REIT Announces Agreements to Acquire One Automotive Property in Tampa and Two Construction Equipment Dealership Properties in Greater Montreal

01.11.2024 by admin

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Oct. 31, 2024 /CNW/ – Automotive Properties Real Estate Investment Trust APR (“Automotive Properties REIT” or the “REIT”) announced today that it has entered into two separate agreements to acquire a total of three properties (the “Acquisitions”). The first agreement is to acquire a Rivian-tenanted automotive property in Tampa, Florida (the “Tampa Property”) for a purchase price of approximately US$13.5 million. The second agreement is to acquire two heavy construction equipment dealership properties in the Greater Montreal Area (the “Greater Montreal Properties”) for a purchase price of approximately $25.4 million. The additions of the Tampa Property and the Greater Montreal Properties are expected to be accretive to the REIT’s Adjusted Funds from Operations (“AFFO”)¹ per unit.

“Our acquisition of this Rivian property in Tampa will mark our targeted entry into the U.S. market and increase our exposure to the electric vehicle retail and service market in North America. Our acquisition of these two heavy construction equipment dealership properties in Greater Montreal will mark our entry into a new industry vertical that has similar characteristics to automotive dealerships, including the essential nature of their business,” said Milton Lamb, President and CEO of Automotive Properties REIT. “Upon closing, these acquisitions will enhance the tenant and geographic diversification within our portfolio, and are expected to drive AFFO.”

The Tampa Property is a 25,000 square-foot Rivian sales, delivery and service facility that is situated on 2.75 acres of land located at 701 N. Dale Mabry Highway in Tampa, Florida, in close proximity to Interstate 275 and the Tampa International Airport. The Tampa Property is tenanted by Rivian LLC, which recently completed a major renovation to the facility, under a long term, triple-net lease that includes contractual fixed annual rent increases with renewal options. Rivian LLC is a leading American developer and manufacturer of electric vehicles and accessories that completed its US$13.7 billion initial public offering on the NASDAQ stock exchange in November 2021. The REIT expects to close the Tampa Property acquisition in the first quarter of 2025, subject to customary closing conditions.

The Greater Montreal Properties consist of a 31,000 square-foot Brandt Tractor Ltd. facility with a John Deere heavy construction equipment dealership that is situated on 6.6 acres of land located at 3855 Boulevard Matte in Brossard, Québec, and a 28,611 square-foot Strongco heavy construction equipment dealership (Volvo, and other equipment brands) that is situated on 5.1 acres of land located at 72 Chemin du Tremblay in Boucherville, Québec. The REIT expects to close the Greater Montreal Properties acquisition in December 2024, subject to customary closing conditions.

The triple-net lease on the Brandt Tractor Ltd. heavy construction equipment dealership property, is a mid-term lease, and includes contractual bi-annual fixed rent increases. Brandt Tractor Ltd. is the world’s largest John Deere construction and forestry dealer and a division of the Brandt Group of Companies, a privately-owned, Canadian based manufacturing and distribution company that was founded in 1932 and serves customers in industries such as agriculture, construction, forestry, rail, mining, steel, transportation, material handling, and energy in Canada, the United States, Australia, and New Zealand.

The Strongco heavy construction equipment dealership property is tenanted pursuant to a mid-term lease, and includes contractual annual fixed rent increases. Strongco is owned by Nors, S.A. Founded in 1933, Nors is a privately-owned, Portuguese based company that sells, rents and services construction, infrastructure, mining and forestry equipment, trucks, busses, cars and marine and industrial engines in 16 countries in four continents.

The REIT expects to fund the respective purchase prices of the Acquisitions with cash on hand and by drawing on its revolving credit facilities which had been paid down in full from the net proceeds of the previously announced closing of the sale of the REIT’s Markham, Ontario dealership property on October 1, 2024.

About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT’s portfolio currently consists of 76 income-producing commercial properties, representing approximately 2.8 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

(1) Non-IFRS Financial Measure
This news release contains a financial measure which is not defined under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. AFFO is a key measure of earnings performance used by real estate businesses. This measure is not defined by IFRS and does not have a standardized meaning prescribed by IFRS, and therefore should not be construed as an alternative to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT’s ability to pay distributions from earnings. The IFRS measurement most directly comparable to AFFO is net income. Please refer to the REIT’s Management Discussion & Analysis (“MD&A”) most recently filed on SEDAR+ for further discussion of this non-IFRS financial measure.

Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events and in some cases can be identified by such terms as “will”, “should”, “anticipates”, “could” and “expects”. Forward-looking information includes statements regarding the financial impact of the Acquisitions on the REIT’s AFFO per unit and the expected timing of closing the Acquisitions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risks & Uncertainties, Critical Judgments & Estimates” in the REIT’s Management’s Discussion & Analysis (“MD&A”) for the three and six-month periods ended June 30, 2024 and in the REIT’s annual information form dated March 7, 2024, which are available on SEDAR+ (www.sedarplus.ca) and the REIT’s website (www.automotivepropertiesreit.ca). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

SOURCE Automotive Properties Real Estate Investment Trust

View original content: http://www.newswire.ca/en/releases/archive/October2024/31/c4924.html

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Economics News

Surgical Equipment Market Size to Achieve USD 45.61 Bn by 2034

01.11.2024 by admin

Ottawa, Oct. 31, 2024 (GLOBE NEWSWIRE) — The global surgical equipment market size is predicted to increase from USD 20.25 billion in 2025 to approximately USD 45.61 billion by 2034, according to a study published by Towards Healthcare a sister firm of Precedence Statistics. The industry is representing a solid CAGR of 9.44% during the forecast period. North America dominated the market with the largest market share of 41% in 2023.

Download a sample of this report @ https://www.towardshealthcare.com/download-statistics/5240

Key Takeaways

Advancements in surgical techniques, the development of minimally invasive surgery techniques has increased the demand for specialized surgical equipment that allows for smaller incisions and faster recovery times.
Rising prevalence of chronic diseases, the growing burden of chronic diseases such as heart disease, cancer and diabetes has led to an increase in surgical procedures.
Technological innovations and advancements in medical technology including robotics, imaging and material science have led to the development of new and improved surgical equipment.

Regional Insights:

North America, Cosmetic Surgery Driving the Market

The region North America held the largest share of the surgical equipment market in 2023. The increasing number of surgical procedures, advancements in healthcare infrastructure and the presence of leading industry players are some of the factors which are driving the market in North America. The United States performs around 40 to 50 million surgeries annually which makes it a key contributor to the region’s market. For instance, in 2023, 9.5 million neuro modular procedures were conducted for wrinkle reduction, reflecting the growing demand for cosmetic surgeries.

Technological innovations in surgical tools and favorable government policies are also propelling market growth. For instance, in May of 2023, Crothall Healthcare Partnered with Ascendco Health to introduce advanced tracking systems for sterile surgical instruments in United States healthcare facilities. This partnership highlights the increasing focus on safety, quality and technological improvement.

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Asia Pacific on to Grow and is Fastest Growing Market

In the coming years Asia Pacific is expected to grow at the fastest rate in surgical equipment market. This growth is driven by a combination of factors such as rising geriatric population, Increasing surgical procedures and rapid healthcare infrastructure development. In the country India around 30 million surgical procedures are performed each year, and the country has attracted significant foreign direct investments in medical and surgical appliances which is over USD 3.28 billion from April 2000 to March 2024.

Countries like China, South Korea and Japan are global leaders in plastic surgeries ranking third, fourth and fifth respectively. Government policies are further fueling market growth in the region. For instance, in 2022 the Chinese government introduced a USD 29 billion loan incentive policy to upgrade medical facilities which is helping boost demand for advanced surgical tools.

In June 2024, the Tamil Nadu state government in India announced plans to sell affordable surgical equipment to the public through government run medical shops. This initiative underscores the government’s focus on expanding access to high quality surgical equipment across the country.

Related Markets Impacted by Surgical Equipment Market:

3D Printed Medical Devices Market

The 3D printed medical devices market is closely connected to the surgical equipment market as both sectors rely on cutting edge technology and innovations to improve patient outcomes. 3D medical devices ranging from imaging equipment like MRI machines 2 monitoring devices and implants, are observed to gain momentum in the upcoming years. The increasing demand for advanced surgical tools naturally push the need for complementary medical devices that assist in diagnosis, monitoring and rehabilitation. Custom devices like hearing aids, orthotics, and surgical tools can be designed with precise measurements, offering a superior fit and enhancing patient comfort compared to mass-produced alternatives.

Medical Device Gaskets & Seals Market

The medical device gaskets & seals market was estimated at US$ 0.92 billion in 2023 and is projected to grow to US$ 1.57 billion by 2034, rising at a compound annual growth rate (CAGR) of 5% from 2024 to 2034. The surgical equipment market has positively impacted the Medical Device Gaskets & Seals Market in several significant ways, primarily driven by the growing demand for high-quality, reliable components in medical devices. As the surgical equipment market expands due to advancements in technology, increasing surgical procedures, and stringent regulatory standards, the need for effective gaskets and seals has surged.

You can place an order or ask any questions, please feel free to contact us at sales@towardshealthcare.com

Surgical Equipment Market Opportunity

Growing Demand for Power Tools in Surgical Procedures:

In recent years, the increasing demand for power tools in surgical procedures is set to drive the growth of the surgical equipment market. With the rise of minimally invasive surgeries power tools such as saws, trains and reamers are becoming essential for surgeons. These tools provide precision, reduce operative time and enhance overall surgical outcomes. Battery driven cordless surgical power tools are one of the key developments in this field which is shifting the market.

In March 2023, Stryker, a global leader in medical technology introduced a new line of battery powered surgical power tools. Their innovative system of 9 cordless surgical power tools uses lithium-ion batteries which offers longer operational time and enhanced performance. Surgeons have reported improved precision and workflow particularly in orthopedic surgeries.

Surgical Equipment Market Segments:

By product, in 2023 the surgical structures and staplers segment held the largest share of the surgical equipment market. Structures and staplers are critical for wound closures in various types of surgeries, from minor procedures to major operations like cardiovascular and gastrointestinal surgeries. Their widespread use across different specialities and advancements in structure materials and stapling technology have driven the demand.
By type, in 2023 disposable surgical equipment segment dominated the surgical equipment market. With growing concerns over hospital acquired infections and the need for sterile surgical environments, disposable tools like scalpels, forceps, and scissors are preferred for single use. They minimize cross contamination risks and ensure safety for both patients and healthcare professionals. In the July of 2023, Madeline Industries launched a new range of eco-friendly disposable surgical kits that offer enhanced safety while addressing environmental concerns by using biodegradable materials.
By application, the others segment which includes various general and specialized surgeries like plastic surgery, urology and obstetrics, let the surgical equipment market in 2023. These surgeries are becoming more frequent due to an aging population, rising cancer cases and an increase in elective cosmetic procedures.

Recent Developments and News of the Market:

Company	Indraprastha Apollo Hospital
Headquarter	New Delhi, India, Asia Pacific
Development	In March 2024, At Indraprastha Apollo Hospital in New Delhi, Apollo Hospitals introduced ZAP-X, a gyroscopic radiosurgery platform for the treatment of brain tumors. The US-based medical equipment manufacturer Zap Surgical is set to launch the platform in India. Apollo stated in an official statement that “ZAP-X will offer patients a non-invasive, pain-free alternative to traditional surgical interventions for brain tumors, with sessions lasting just 30 minutes and without the necessity of anesthesia.

Company	Crothall Healthcare
Headquarter	United States, North America
Development	May 2024, Crothall Healthcare (Crothall), a leading provider of sterile processing and support services, and Ascendco Health (Ascendco), a leading innovator in health technology, announced a groundbreaking partnership that will usher in a new era for instrument tracking and overall sterile processing quality within healthcare facilities across the nation. This partnership has the potential to significantly elevate standards within the field of sterile processing.

Browse More Insights of Towards Healthcare:

The drug-device combination products market size was estimated at $150.3 billion in 2023 and is projected to grow to $337.81 billion by 2034, with a CAGR of 7.64% from 2024 to 2034.
The mycobacterium tuberculosis market was estimated at US$ 730.00 million in 2023 and is projected to grow to US$ 1,385.79 million by 2034, rising at a CAGR of 6% from 2024 to 2034.
The safety lancets market was estimated at $2.1 billion in 2023 and is expected to grow to $6.32 billion by 2034, with a CAGR of 10.54% from 2024 to 2034.
The peripheral nerve conduit market was estimated at $140 million in 2023 and is projected to grow to $411.58 million by 2034, with a CAGR of 10.3% from 2024 to 2034.
The vet ultrasound system market was estimated at $400 million in 2023 and is projected to grow to $845.41 million by 2034, with a CAGR of 7.04% from 2024 to 2034.
The ambulatory electrocardiography (ECG) market was estimated at $630 million in 2023 and is expected to grow to $1,561.24 million by 2034, with a CAGR of 8.6% from 2024 to 2034.
The blood product market was estimated at $36.52 billion in 2023 and is projected to grow to $59.89 billion by 2034, with a CAGR of 4.6% from 2024 to 2034.
The personal protective equipment (PPE) market was estimated at $79.57 billion in 2023 and is projected to grow to $171.66 billion by 2034, with a CAGR of 7.24% from 2024 to 2034.
The cell therapy human raw materials market size was estimated at $2.91 billion in 2023 and is projected to grow to $22.75 billion by 2034, with a CAGR of 22.38% from 2023 to 2034.
The biomaterials market size was estimated at $178.16 billion in 2023 and is projected to grow to $761.23 billion by 2033, with a CAGR of 15.63% from 2024 to 2033.

Surgical Equipment Market Top Companies

Aesculap Implant Systems, Inc.
ARCH Medical Solutions
Arthrex
BioRad Medisys Pvt. Ltd.
Bricon GmbH
InTech Medical
KLS Martin Group
Medtronic Plc
Miraclus Orthotech Pvt. Ltd.
Precision Spine, Inc.
Trauson Medical Instruments

Segments Covered in the Report

By Product

Surgical Sutures & Staplers
Electrosurgical Devices
Handheld Surgical Devices
Forceps & Spatulas
Retractors
Dilators
Graspers
Auxiliary Instruments
Cutter instruments
Others

By Type

By Application

Neurosurgery
Plastic & Reconstructive Surgery
Wound Closure
Obstetrics & Gynecology
Cardiovascular
Orthopedic
Others

By Region

North America
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

Discover our detailed Table of Contents (TOC) for the Industry, providing a thorough examination of market segments, material, emerging technologies and key trends. Our TOC offers a structured analysis of market dynamics, emerging innovations, and regional dynamics to guide your strategic decisions in this rapidly evolving healthcare field – https://www.towardshealthcare.com/table-of-content/surgical-equipment-market-sizing

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Gain access to the latest insights and statistics in the healthcare industry by subscribing to our Annual Membership. Stay updated on healthcare industry segmentation with detailed reports, market trends, and expert analysis tailored to your needs. Stay ahead of the curve with valuable resources and strategic recommendations. Join today to unlock a wealth of knowledge and opportunities in the dynamic world of healthcare: Get a Subscription

About Us

Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.

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