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Mar 31, 2020
Option Care Health Q1 2020 Earnings Report
Reported strong financial results with robust revenue growth and solid cash flow generation.
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.