•
Mar 31, 2021

Option Care Health Q1 2021 Earnings Report

Announced financial results, demonstrating revenue growth and increased adjusted EBITDA.

Key Takeaways

Option Care Health reported a 7.6% increase in net revenue to $759.2 million and a 30.0% increase in Adjusted EBITDA to $52.2 million compared to the first quarter of 2020. The company experienced a net loss of $2.9 million, or $0.02 loss per share, improved from a net loss of $19.9 million, or $0.11 loss per share, in the same period last year.

Net revenue increased by 7.6% to $759.2 million compared to Q1 2020.

Gross profit rose by 4.7% to $165.5 million, representing 21.8% of net revenue.

Net loss improved to $2.9 million, or $0.02 loss per share, compared to a $19.9 million loss in Q1 2020.

Adjusted EBITDA increased by 30.0% to $52.2 million compared to Q1 2020.

Total Revenue
$759M
Previous year: $705M
+7.6%
EPS
-$0.02
Previous year: -$0.11
-81.8%
Adjusted EBITDA
$52.2M
Previous year: $40.2M
+30.0%
Cash Flow from Operations
$18.4M
Previous year: $18.4M
-0.1%
Gross Profit
$165M
Previous year: $158M
+4.7%
Cash and Equivalents
$109M
Previous year: $77.2M
+41.6%
Free Cash Flow
$15.3M
Previous year: $13.1M
+16.9%
Total Assets
$2.64B
Previous year: $2.61B
+1.1%

Option Care Health

Option Care Health

Forward Guidance

Option Care Health is maintaining its previously-communicated guidance with the exception of the expected range for Adjusted EBITDA. The Company is raising its expectation for Adjusted EBITDA to $248.0 million to $260.0 million, from a previous expected range of $245.0 million to $258.0 million. Expectations for net revenue, cash flow from operations and leverage ratio remain consistent with previous guidance communications.

Positive Outlook

  • Adjusted EBITDA guidance raised to $248.0 million - $260.0 million.
  • Net revenue expectations maintained.
  • Cash flow from operations expectations maintained.
  • Leverage ratio expectations maintained.
  • Integration efforts are progressing well.

Challenges Ahead

  • Changes in laws and regulations applicable to our business model
  • Changes in market conditions and receptivity to our services and offerings
  • Results of litigation
  • The loss of one or more key payers
  • The spread and impact of the COVID-19 pandemic