BANNOCKBURN, Ill., July 27, 2022 (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, today announced financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights

• Net revenue of $980.8 million, up 14.0% compared to $860.3 million in the second quarter of 2021
• Gross profit of $216.9 million, or 22.1% of net revenue, up 9.0% compared to $199.0 million, or 23.1% of net revenue, in the second quarter of 2021
• Net income of $33.9 million, or $0.19 per share, compared to net income of $31.8 million, or $0.18 per share, in the second quarter of 2021
• Adjusted EBITDA of $85.2 million, or 8.7% of net revenue, up 17.0% compared to $72.8 million, or 8.5% of net revenue, in the second quarter of 2021
• Cash flow from operations of $104.4 million compared to $73.7 million in the second quarter of 2021
• Cash balances were $204.0 million at the end of the second quarter
• Completed the acquisition of Specialty Pharmacy Nursing Network for $60.0 million, financed through cash balances on hand

John C. Rademacher, Chief Executive Officer, commented, “Overall the second quarter was very productive for the Option Care Health team. We continue to execute on our purpose of providing extraordinary care that changes lives. Despite continued inflationary challenges, we delivered strong financial results and we believe we are well positioned going into the second half of the year.”

Full Year 2022 Guidance

For the full year 2022, Option Care Health is increasing its guidance and now expects to generate:

• Net Revenue of $3.85 billion to $3.95 billion
• Adjusted EBITDA of $330 million to $342 million
• Cash Flow from Operations of at least $250 million

Conference Call

Option Care Health will host a conference call to discuss its second quarter 2022 financial results later today at 8:30 a.m. EDT. The conference call can be accessed 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 7,500 team members including more than 4,500 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 team members. 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
[email protected]	[email protected]

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, including, without limitation, statements concerning our full year 2022 guidance and our expectations regarding industry and macroeconomic trends and our operating performance. 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.

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; and (iv) the loss of one or more key payers. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our most recent Annual Report on Form 10-K 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, loss on extinguishment of debt, 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. We have not reconciled Adjusted EBITDA guidance to net income as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. For a full reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, please see below.

Schedule 1

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

	(unaudited)
	June 30,			December 31,
		2022			2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	204,046		$	119,423
Accounts receivable, net		362,772			338,242
Inventories		231,766			183,095
Prepaid expenses and other current assets		78,555			69,496
Total current assets		877,139			710,256
NONCURRENT ASSETS:
Property and equipment, net		105,210			111,535
Intangible assets, net		23,161			21,433
Referral sources		352,368			344,587
Goodwill		1,512,246			1,477,564
Other noncurrent assets		115,788			125,543
Total noncurrent assets		2,108,773			2,080,662
TOTAL ASSETS	$	2,985,912		$	2,790,918
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	380,516		$	279,246
Other current liabilities		174,792			180,449
Total current liabilities		555,308			459,695
NONCURRENT LIABILITIES:
Long-term debt, net of discount, deferred financing costs and current portion		1,059,017			1,059,900
Other noncurrent liabilities		86,593			95,437
Total noncurrent liabilities		1,145,610			1,155,337
Total liabilities		1,700,918			1,615,032
STOCKHOLDERS’ EQUITY		1,284,994			1,175,886
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,985,912		$	2,790,918

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,
		2022				2021				2022				2021
NET REVENUE	$	980,820			$	860,272			$	1,896,604			$	1,619,509
COST OF REVENUE		763,920				661,304				1,478,768				1,255,068
GROSS PROFIT		216,900				198,968				417,836				364,441
OPERATING COSTS AND EXPENSES:
Selling, general and administrative expenses		141,787				134,257				275,756				254,297
Depreciation and amortization expense		16,037				16,619				30,759				32,958
Total operating expenses		157,824				150,876				306,515				287,255
OPERATING INCOME		59,076				48,092				111,321				77,186
OTHER INCOME (EXPENSE):
Interest expense, net		(12,765	)			(17,236	)			(25,011	)			(36,717	)
Other, net		1,327				1,691				2,596				(9,505	)
Total other expense		(11,438	)			(15,545	)			(22,415	)			(46,222	)
INCOME BEFORE INCOME TAXES		47,638				32,547				88,906				30,964
INCOME TAX EXPENSE		13,709				731				24,702				2,009
NET INCOME	$	33,929			$	31,816			$	64,204			$	28,955
Earnings per share, basic	$	0.19			$	0.18			$	0.36			$	0.16
Earnings per share, diluted	$	0.19			$	0.18			$	0.35			$	0.16
Weighted average common shares outstanding, basic		180,621				179,843				180,293				179,826
Weighted average common shares outstanding, diluted		181,618				181,037				181,176				180,975

Schedule 3

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

	Six Months Ended June 30,
		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	64,204			$	28,955
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization expense		33,249				35,705
Other non-cash adjustments		44,371				22,688
Changes in operating assets and liabilities:
Accounts receivable, net		(22,950	)			(9,866	)
Inventories		(48,671	)			(14,651	)
Accounts payable		100,924				26,532
Other		(34,173	)			2,671
Net cash provided by operating activities		136,954				92,034
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(10,055	)			(6,808	)
Business acquisitions, net of cash acquired		(59,897	)			(18,852	)
Net cash used in investing activities		(69,952	)			(25,660	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt		—				355,200
Retirement of debt obligations		—				(352,009	)
Proceeds from warrant exercises		20,098				—
Other financing cash flows		(2,477	)			(11,304	)
Net cash used in financing activities		17,621				(8,113	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		84,623				58,261
Cash and cash equivalents - beginning of the period		119,423				99,265
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	204,046			$	157,526

Schedule 4

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

	Three Months EndedJune 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Consolidated net income	$	33,929		$	31,816		$	64,204		$	28,955
Interest expense, net		12,765			17,236			25,011			36,717
Income tax expense		13,709			731			24,702			2,009
Depreciation and amortization expense		17,270			17,989			33,249			35,705
Consolidated EBITDA		77,673			67,772			147,166			103,386
EBITDA adjustments
Stock-based incentive compensation		4,398			2,525			8,576			3,730
Loss on extinguishment of debt		—			—			—			12,403
Restructuring, acquisition, integration and other		3,105			2,526			7,216			5,534
Consolidated adjusted EBITDA	$	85,176		$	72,823		$	162,958		$	125,053

Source: Option Care Health, Inc.

Globe Newswire Press Releases

Option Care Health (OPCH) Misses Q2 EPS by 4cJuly 27, 2022 7:33 AM