Option Care Health (NASDAQ: OPCH) reported Q3 EPS of $0.01, $0.05 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $781.6 million versus the consensus estimate of $720.49 million.

Third Quarter 2020 Financial Highlights

• Net revenue of $781.6 million, up 27% compared to $615.9 million in the third quarter of 2019
• Gross profit of $174.2 million, or 22.3% of net revenue, up 26% compared to $137.8 million, or 22.4% of revenue, in the third quarter of 2019
• Net income of $1.7 million, or $0.01 per share, compared to net loss of $42.8 million, or $0.26 loss per share, in the third quarter of 2019
• Adjusted EBITDA of $59.2 million, up 70% compared to $34.8 million in the third quarter of 2019
• Cash flow from operations of $48.3 million compared to a cash outflow of $5.8 million in the third quarter of 2019
• Cash balances of $140.0 million at the end of the third quarter and no outstanding borrowings on the Company’s $175.0 million revolver
• Subsequent to the third quarter, the Company entered into new, multi-year national provider contracts with both Centene and Cigna

Comparable revenue growth for the quarter is approximately 13% when considering the impact and timing of the merger as well as harmonization of accounting policies, with chronic therapies growth over prior year in the mid teens and acute therapies flat to prior year. Additionally, the Company continues to make significant progress on merger-related integration efforts and expects to be complete with integration efforts, other than technology harmonization, by the end of the year.

John C. Rademacher, Chief Executive Officer, commented, “The third quarter was very productive for Option Care Health as we continue to serve patients relying on us for critical infusion therapies while also laying the foundation for sustained organic growth. Despite a very challenging operating environment, the team continues to rise to the challenge and reinforce the reliability and dedication of the Option Care team.”

Full Year 2020 Guidance

For the full year, the Company expects to generate between $216 million and $220 million in Adjusted EBITDA and at least $80 million in free cash flow, defined by the Company as net change in ending cash balance compared to the cash balance at December 31, 2019.

For earnings history and earnings-related data on Option Care Health (OPCH) click here.