BrightSpring Health Services, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>BrightSpring Health Services, Inc. has filed its 2023 annual report on Form 10-K, detailing its financial performance and corporate information.</b>

AI Summary

BrightSpring Health Services, Inc. (BTSGU) filed a Annual Report (10-K) with the SEC on March 6, 2024. BrightSpring Health Services, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company is incorporated in Delaware and its principal executive offices are located in Louisville, Kentucky. BrightSpring Health Services, Inc. is registered under the SIC code 8082 for Home Health Care Services. The company's common stock and 6.75% Tangible Equity Units are traded on The Nasdaq Stock Market LLC under symbols BTSG and BTSGU, respectively. The filing indicates that BrightSpring Health Services, Inc. is a non-accelerated filer and not a well-known seasoned issuer.

Why It Matters

For investors and stakeholders tracking BrightSpring Health Services, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of BrightSpring Health Services' operations and financial standing for the fiscal year 2023, crucial for investors to assess the company's performance and outlook. The report details the company's status as a non-accelerated filer and its listing on the Nasdaq, offering insights into its market presence and regulatory compliance.

Risk Assessment

Risk Level: medium — BrightSpring Health Services, Inc. shows moderate risk based on this filing. The company is classified as a non-accelerated filer, suggesting it may not meet the thresholds for accelerated or large accelerated filer status, which could imply a smaller market capitalization or less frequent reporting history.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand BrightSpring Health Services' operational performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (The report covers the fiscal year ended December 31, 2023.)
• 001-41938 — Commission File Number (The SEC file number assigned to the registrant.)
• 82-2956404 — IRS Number (The company's Employer Identification Number.)
• 6.75% — Tangible Equity Units Interest Rate (Interest rate for the company's Tangible Equity Units.)

Key Players & Entities

• BrightSpring Health Services, Inc. (company) — Filer of the 10-K report.
• Nasdaq Stock Market LLC (company) — Exchange where company's securities are traded.
• Delaware (jurisdiction) — State of incorporation.
• Louisville, Kentucky (location) — Location of principal executive offices.
• 8082 (other) — Standard Industrial Classification code for Home Health Care Services.
• BTSG (ticker) — Trading symbol for Common Stock.
• BTSGU (ticker) — Trading symbol for 6.75% Tangible Equity Units.

FAQ

Industry Context

BrightSpring Health Services operates within the Home Health Care Services industry, providing essential healthcare services to individuals in their homes.

Regulatory Implications

The company is subject to SEC regulations for public companies, including the requirement to file annual reports on Form 10-K.

What Investors Should Do

1. Analyze the detailed financial statements and management's discussion and analysis in the 10-K.
2. Review any disclosed risk factors that could impact future performance.
3. Monitor future filings for updates on the company's financial health and strategic direction.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-06: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ended December 31, 2023, as indicated by the filing type and date.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share 6.75% Tangible Equity Units
• $3.4 billion — bstantial indebtedness of approximately $3.4 billion as of December 31, 2023; and &#x2022;
• $1.0 — alty patients comprise a market of over $1.0 trillion across our business. The chron

Filing Documents

• btsg_10-k_20231231.htm (10-K) — 5042KB
• btsg-ex4_8.htm (EX-4.8) — 72KB
• btsg-ex23_1.htm (EX-23.1) — 2KB
• btsg-ex31_1.htm (EX-31.1) — 17KB
• btsg-ex31_2.htm (EX-31.2) — 17KB
• btsg-ex32_1.htm (EX-32.1) — 11KB
• btsg-ex32_2.htm (EX-32.2) — 11KB
• btsg-ex97_1.htm (EX-97.1) — 46KB
• img200896807_0.jpg (GRAPHIC) — 32KB
• img200896807_1.jpg (GRAPHIC) — 99KB
• 0000950170-24-027316.txt (&nbsp;) — 5399KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 39 Item 1B. Unresolved Staff Comments 81 Item 1C. Cybersecurity 81 Item 2.

Properties

Properties 83 Item 3.

Legal Proceedings

Legal Proceedings 83 Item 4. Mine Safety Disclosures 83 PART II Item 5. Market for Registrant&#x2019;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 84 Item 6. [Reserved] 85 Item 7. Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations 86 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 119 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 121 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 162 Item 9A.

Controls and Procedures

Controls and Procedures 162 Item 9B. Other Information 162 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 162 PART III Item 10. Directors, Executive Officers and Corporate Governance 163 Item 11.

Executive Compensation

Executive Compensation 169 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 190 Item 13. Certain Relationships and Related Transactions, and Director Independence 192 Item 14. Principal Accountant Fees and Services 194 PART IV Item 15. Exhibits and Financial Statement Schedules 196 Item 16. Form 10-K Summary 201 i Table of Contents GLOSSARY As used in this Annual Report on Form 10-K (this &#x201c;Form 10-K&#x201d;), the terms identified below have the meanings specified below unless otherwise noted or the context indicates otherwise. BrightSpring Health Services, Inc. conducts its operations through its subsidiaries, including its indirect subsidiaries, BrightSpring Health Holdings Corp. and its wholly-owned subsidiary, ResCare, Inc., and PharMerica Corporation, or PharMerica. As used in this Annual Report on Form 10-K, unless otherwise stated or the context requires otherwise, the terms &#x201c;BrightSpring,&#x201d; the &#x201c;Company,&#x201d; &#x201c;we,&#x201d; &#x201c;us,&#x201d; and &#x201c;our&#x201d; refer to BrightSpring Health Services, Inc. and its consolidated subsidiaries. &#x2022; &#x201c;ABA&#x201d; means applied behavioral analysis, a type of therapy that focuses on improving specific behaviors; &#x2022; &#x201c;ABI/TBI&#x201d; means acquired/traumatic brain injury; &#x2022; &#x201c;Abode&#x201d; means Abode Healthcare, which we acquired in April 2021; &#x2022; &#x201c;associated family satisfaction,&#x201d; for circumstances when a patient is unable to respond due to cognitive issues, is calculated by the percentage of such family member of a patient who would recommend the Company to another friend or family member based on the patient&#x2019;s experience in the Company&#x2019;s therapy, as reported in our outpatient therapy satisfaction survey from April 1, 2023 to June 30, 2023; &#x2022; &#x201c;Behavioral&#x201d; patients and populations mean individuals with intellectual and devel

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K includes forward-looking statements that 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 are included throughout this Annual Report on Form 10-K, including in the sections entitled &#x201c;Summary,&#x201d; &#x201c;Risk Factors,&#x201d; &#x201c;Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations&#x201d; and &#x201c;Business&#x201d; and relate to matters such as our 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. We have used the words &#x201c;anticipate,&#x201d; &#x201c;assume,&#x201d; &#x201c;believe,&#x201d; &#x201c;continue,&#x201d; &#x201c;could,&#x201d; &#x201c;estimate,&#x201d; &#x201c;expect,&#x201d; &#x201c;intend,&#x201d; &#x201c;may,&#x201d; &#x201c;plan,&#x201d; &#x201c;potential,&#x201d; &#x201c;predict,&#x201d; &#x201c;project,&#x201d; &#x201c;future,&#x201d; &#x201c;will,&#x201d; &#x201c;seek,&#x201d; &#x201c;foreseeable,&#x201d; the negative version of these words, or similar terms and phrases to identify forward-looking statements in this Annual Report on Form 10-K. The forward-looking statements contained in this Annual Report on Form 10-K are based on management&#x2019;s current expectations and are not guarantees of future performance. The forward-looking statements are 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&#x2019;s expectations, beliefs, and

Business

Item 1. Business Who We Are We are a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patients. We have a differentiated approach to care delivery, with an integrated and scaled model that addresses critical services that the highest-need and highest-cost patients require. With a focus on Senior and Specialty patients, which includes Behavioral populations, our platform provides pharmacy and provider services (both clinical and supportive care in nature) in lower-cost home and community settings largely to Medicare, Medicaid, and commercially-insured populations. We are an essential part of our nation&#x2019;s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management. Our presence spans all 50 states, we serve over 400,000 patients daily through our approximately 10,000 clinical providers and pharmacists, and our services make a profound impact in the lives and communities of the people we serve. Our model focuses on delivering high-touch and coordinated services to medically complex clients and patients, which is a large, growing, and underserved population in the U.S. healthcare system. These high-need and high-cost Senior and Specialty patients comprise a market of over $1.0 trillion across our business. The chronic conditions and long-term health needs of these patients not only represent an outsized share of health care spend today, according to RAND Health Care, but we believe that they are expected to also drive a disproportionate share of future expenditures. Americans with five or more chronic conditions make up over 10% of the population and account for 40% of total health care spending, on average spending 10 times more on health services than those without chronic conditions. These p

View Full Filing

View this 10-K filing on SEC EDGAR