U.S. markets open in 6 hours 31 minutes
  • S&P Futures

    4,378.25
    -43.50 (-0.98%)
     
  • Dow Futures

    34,022.00
    -440.00 (-1.28%)
     
  • Nasdaq Futures

    15,207.50
    -118.50 (-0.77%)
     
  • Russell 2000 Futures

    2,195.10
    -33.20 (-1.49%)
     
  • Crude Oil

    71.31
    -0.66 (-0.92%)
     
  • Gold

    1,752.60
    +1.20 (+0.07%)
     
  • Silver

    22.44
    +0.10 (+0.46%)
     
  • EUR/USD

    1.1718
    -0.0014 (-0.12%)
     
  • 10-Yr Bond

    1.3700
    0.0000 (0.00%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3690
    -0.0048 (-0.35%)
     
  • USD/JPY

    109.8330
    -0.0620 (-0.06%)
     
  • BTC-USD

    45,599.74
    -2,500.39 (-5.20%)
     
  • CMC Crypto 200

    1,137.05
    -88.48 (-7.22%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.75 (+0.58%)
     

Option Care Health Announces Financial Results for the Second Quarter Ended June 30, 2021

  • Oops!
    Something went wrong.
    Please try again later.
·10 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

BANNOCKBURN, Ill., Aug. 03, 2021 (GLOBE NEWSWIRE) -- Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Financial Highlights

  • Net revenue of $860.3 million, up 16.1% compared to $740.8 million in the second quarter of 2020

  • Gross profit of $199.0 million, or 23.1% of net revenue, up 19.6% compared to $166.3 million, or 22.4% of revenue, in the second quarter of 2020

  • Net income of $31.8 million, or $0.18 per share, compared to net loss of $7.7 million, or $0.04 loss per share, in the second quarter of 2020

  • Adjusted EBITDA of $72.8 million, up 33.3% compared to $54.6 million in the second quarter of 2020

  • Cash flow from operations of $73.7 million compared to a cash flow of $35.0 million in the second quarter of 2020

  • Cash balances of $157.5 million at the end of the second quarter and no outstanding borrowings on the Company’s $175.0 million revolver

  • Completed the acquisition of certain assets of BioCure for an acquisition price of $18.9 million

John C. Rademacher, Chief Executive Officer, commented, “The Option Care Health team delivered a very strong second quarter while continuing to invest for future growth. Most importantly, the team focused on extraordinary patient care as we continue to navigate a dynamic healthcare environment. Based on the momentum established in the first half, the Company is positioned very well heading into the second half of 2021.”

Full Year 2021 Guidance

For the full year 2021, Option Care Health is increasing its financial guidance as follows:

  • Net Revenue of $3.35 billion to $3.50 billion

  • Adjusted EBITDA of $275 million to $285 million

  • Cash Flow from Operations of at least $170 million

Conference Call

The Company will host a conference call this morning at 8:30 a.m. E.T. which can be accessed by dialing (866) 360-3136 and referencing conference ID 4065104; or via a live audio webcast that will be available online at https://investors.optioncarehealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

About Option Care Health

Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 5,000 teammates, including approximately 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and teammates. To learn more, please visit our website at OptionCareHealth.com.

Investor Contacts

Mike Shapiro

Bob East, Asher Dewhurst, Jordan Kohnstam

Chief Financial Officer

Westwicke

T: (312) 940-2538

T: (413) 213-0500

mike.shapiro@optioncare.com

optioncarehealth@westwicke.com

Forward-Looking Statements - Safe Harbor
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we may make regarding future revenues, future earnings, regulatory developments, market developments, new products and growth strategies, integration activities and the effects of any of the foregoing on our future results of operations or financial conditions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings; (iii) results of litigation; (iv) the loss of one or more key payers; and (v) the spread and impact of the COVID-19 pandemic. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Note Regarding Use of Non-GAAP Financial Measures

In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies. Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, and restructuring, integration and other expenses. As part of restructuring, integration and other expenses, the Company may incur significant charges such as the write down of certain long−lived assets, temporary redundant expenses, professional fees, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that Adjusted EBITDA provides useful supplemental information regarding the performance of Option Care Health’s business operations and facilitates comparisons to the Company’s historical operating results. For a full reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, please see the attachment to this earnings release.


Schedule 1

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)


(unaudited)

June 30,

December 31,

2021

2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

157,526

$

99,265

Accounts receivable, net

338,206

328,340

Inventories

173,853

158,601

Prepaid expenses and other current assets

66,179

70,806

Total current assets

735,764

657,012

NONCURRENT ASSETS:

Property and equipment, net

110,662

121,149

Intangible assets, net

351,675

351,052

Goodwill

1,428,610

1,428,610

Other noncurrent assets

92,047

89,616

Total noncurrent assets

1,982,994

1,990,427

TOTAL ASSETS

$

2,718,758

$

2,647,439

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

309,445

$

282,913

Other current liabilities

150,071

151,110

Total current liabilities

459,516

434,023

NONCURRENT LIABILITIES:

Long-term debt, net of discount, deferred financing costs and current portion

1,119,458

1,115,103

Other noncurrent liabilities

83,173

82,589

Total noncurrent liabilities

1,202,631

1,197,692

Total liabilities

1,662,147

1,631,715

STOCKHOLDERS’ EQUITY

1,056,611

1,015,724

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,718,758

$

2,647,439


Schedule 2

OPTION CARE HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


Three Months Ended
June 30,

Six Months Ended
June 30,

2021

2020

2021

2020

NET REVENUE

$

860,272

$

740,848

$

1,619,509

$

1,446,288

COST OF REVENUE

661,304

574,528

1,255,068

1,121,939

GROSS PROFIT

198,968

166,320

364,441

324,349

OPERATING COSTS AND EXPENSES:

Selling, general and administrative expenses

134,257

124,918

254,297

254,198

Depreciation and amortization expense

16,619

18,194

32,958

38,295

Total operating expenses

150,876

143,112

287,255

292,493

OPERATING INCOME

48,092

23,208

77,186

31,856

OTHER INCOME (EXPENSE):

Interest expense, net

(17,236

)

(31,432

)

(36,717

)

(59,519

)

Other, net

1,691

1,026

(9,505

)

1,596

Total other expense

(15,545

)

(30,406

)

(46,222

)

(57,923

)

INCOME (LOSS) BEFORE INCOME TAXES

32,547

(7,198

)

30,964

(26,067

)

INCOME TAX EXPENSE

731

470

2,009

1,511

NET INCOME (LOSS)

$

31,816

$

(7,668

)

$

28,955

$

(27,578

)

Earnings (loss) per share, basic and diluted

$

0.18

$

(0.04

)

$

0.16

$

(0.16

)


Schedule 3

OPTION CARE HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)


Six Months Ended June 30,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

28,955

$

(27,578

)

Adjustments to reconcile net income (loss) to net cash provided by operations:

Depreciation and amortization expense

35,705

41,813

Other non-cash adjustments

22,688

17,423

Changes in operating assets and liabilities:

Accounts receivable, net

(9,866

)

4,194

Inventories

(14,651

)

(33,239

)

Accounts payable

26,532

36,422

Other

2,671

14,355

Net cash provided by operating activities

92,034

53,390

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment

(6,808

)

(9,269

)

Other investing cash flows

541

Business acquisitions, net of cash acquired

(18,852

)

Net cash used in investing activities

(25,660

)

(8,728

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from debt

355,200

Retirement of debt obligations

(352,009

)

Deferred financing costs

(2,880

)

Other financing cash flows

(8,424

)

6,381

Net cash (used in) provided by financing activities

(8,113

)

6,381

NET INCREASE IN CASH AND CASH EQUIVALENTS

58,261

51,043

Cash and cash equivalents - beginning of the period

99,265

67,056

CASH AND CASH EQUIVALENTS - END OF PERIOD

$

157,526

$

118,099


Schedule 4

OPTION CARE HEALTH, INC.
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(IN THOUSANDS)
(UNAUDITED)


Three Months Ended
June 30,

Six Months Ended
June 30,

2021

2020

2021

2020

Consolidated net income (loss)

$

31,816

$

(7,668

)

$

28,955

$

(27,578

)

Interest expense, net

17,236

31,432

36,717

59,519

Income tax expense

731

470

2,009

1,511

Depreciation and amortization expense

17,989

19,969

35,705

41,813

Consolidated EBITDA

67,772

44,203

103,386

75,265

EBITDA adjustments

Accounting principle changes and non-cash charges

Stock-based incentive compensation

2,525

661

3,730

1,418

Loss on extinguishment of debt

12,403

Restructuring, acquisition, integration and other

2,526

9,759

5,534

18,119

Consolidated adjusted EBITDA

$

72,823

$

54,623

$

125,053

$

94,802