BTSG 10-Q filed 2026-10-30 | Key takeaways
BTSG filed its 10-Q; the most relevant disclosure change is added Discontinued operations: Community Living business divested March 30, 2026 for $810.9 million cash proceeds, resulting in pre-tax gain of $101.8 million. Q3 2026 shows loss from discontinued operations of $0.5 million. Nine months 2026 shows income from discontinued operations of $71.
Key takeaways
Community Living divestiture completed March 30, 2026 for $810.9 million cash proceeds, pre-tax gain of $101.8 million
Company entered consignment inventory arrangement with supplier; approximately $111.6 million of consigned inventory held at September 30, 2026 not recognized on balance sheet
Company leverage of 1.79x at September 30, 2026
Pharmacy Solutions revenue grew 25.8% to $3.7 billion; segment EBITDA up 43.3% to $202.0 million
Provider Services revenue grew 31.0% to $480.8 million; segment EBITDA up 30.1% to $79.0 million
Amedisys and LHC Branches Acquisition contributed $76.1 million in Q3 2026 revenue
Debt refinancing in May 2026: Tranche B-6 Term Loan of $2.2 billion at SOFR plus 2.00%, replacing Tranche B-5
Key metrics
Disclosure changes
- Discontinued operations
Community Living business divested March 30, 2026 for $810.9 million cash proceeds, resulting in pre-tax gain of $101.8 million. Q3 2026 shows loss from discontinued operations of $0.5 million. Nine months 2026 shows income from discontinued operations of $71.4 million including the gain.
Material one-time gain and strategic shift; changes revenue and income composition - Consignment inventory arrangement
During 2026, company entered consignment arrangement with supplier where supplier retains title to consigned inventory until purchase or dispense. Approximately $111.6 million of consigned inventory held at September 30, 2026 not recognized on balance sheet. No consignment inventory at December 31, 2025.
Off-balance sheet inventory obligation; significant working capital implication - Debt refinancing
Tranche B-6 Term Loan of $2,214.9 million established May 28, 2026 at SOFR plus 2.00% (reduced from SOFR plus 2.50% on Tranche B-5). $300 million of Tranche B-5 repaid using Community Living divestiture proceeds. Interest expense decreased 18.8% year-over-year to $31.0 million in Q3 2026.
Lower interest costs; changed debt maturity profile - Integrated care patient count
Company provides multiple pharmacy and provider services to approximately 10,000 patients today
Growing integrated care opportunity; indicator of cross-selling success - Interest rate swaps
Forward starting interest rate swap with $500 million notional became effective September 30, 2026. Total notional amount reduced from $1,500 million to $1,000 million at September 30, 2026. Net fair value of cash flow hedges was $27.4 million asset at September 30, 2026.
Hedging strategy details; fair value impact on AOCI - Tangible equity units reclassification
Amortizing Notes with maturity of February 1, 2027 reclassified entirely to current portion of long-term debt ($13.0 million)
Maturity within one year triggers current classification
Primary source
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