Home care company Aveanna Healthcare Holdings lost a whopping $474 million in the second quarter of 2022, the company disclosed Wednesday. While major, the loss was not altogether surprising, as the company signaled last month it would report weaker-than-expected second quarter earnings.
During the same period last year, the company earned a profit of $1.2 million. Revenues for the second quarter of 2022 rose modestly to $443 million. That compares with revenues of $436.1 million in the year-earlier quarter.
“Despite continued challenges in the labor markets during the second quarter, including both shortages in workforce and ongoing inflationary wage pressures, we are optimistic about many aspects of our business, including reimbursement rate increases in our PDS [Private Duty Services] segment during the second half of 2022 and ongoing opportunities to further solidify our relationships with our payor partners through value-based pricing arrangements,” CEO Tony Strange commented in an earnings report. “The demand for our services has never been higher and we are confident that the Aveanna platform and infrastructure is primed for growth once the macro headwinds we are facing subside.”
The company, which went public last year and offers home health, private duty and hospice, is hardly alone in its poor second-quarter earnings. Just this week, Pennant Group posted a loss of $2.6 million on slightly higher revenues. It cited labor and inflation challenges as contributing to the weak quarter. Other home health and hospice companies also struggled in the second quarter.
For the first six months of 2022, Aveanna lost $448.4 million on revenues of $893.5 million. That compares with a profit of $7.1 million on revenues of $853.3 million for the first half of last year. At the end of the 2022 six-month period, Aveanna had $17.5 million in cash and cash equivalents. That compares with a year earlier when it was flush with $106.5 million.
