Option Care Health Q1 2020 Earnings Report
Key Takeaways
Option Care Health announced strong financial results for the first quarter ended March 31, 2020, with a net revenue of $705.4 million, up 48.0% compared to the first quarter of 2019. The company reported a net loss of $19.9 million, or $0.11 per share, and an adjusted EBITDA of $40.2 million, up 107.6% compared to the first quarter of 2019. The company's cash flow from operations was $18.4 million, and it had cash balances of $77.2 million at the end of the quarter.
Net revenue increased by 48.0% to $705.4 million compared to the first quarter of 2019.
Gross profit increased by 60.9% to $158.0 million compared to the first quarter of 2019.
Adjusted EBITDA increased by 107.6% to $40.2 million compared to the first quarter of 2019.
Cash flow from operations increased by 102.7% to $18.4 million compared to the first quarter of 2019.
Option Care Health
Option Care Health
Forward Guidance
The pandemic is expected to impact the Company across a number of areas; however, such impacts cannot be accurately projected given the dynamic nature of the situation. As a result, the Company is not in a position to maintain its previously-communicated guidance for the full year 2020.
Challenges Ahead
- Variability in acute therapy patient referrals from hospitals based on changes in hospital-based procedures and treatment patterns
- Variability in chronic therapy patient referrals based on disruptions in the diagnosis of chronic conditions requiring infusion therapy
- Inefficiencies in clinical labor expenses and higher labor costs from staffing disruptions and availability, potential overtime due to inefficient clinical staffing and utilization of contract labor
- Higher costs to procure, and potential unavailability of, critical personal protection equipment, pharmaceuticals and medical supplies given a constrained supply environment.