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Mar 31, 2022

Option Care Health Q1 2022 Earnings Report

Announced financial results, demonstrating substantial revenue growth and improved profitability.

Key Takeaways

Option Care Health reported a strong first quarter in 2022, with a 20.6% increase in net revenue, a significant rise in gross profit, and a shift from net loss to net income. The company's adjusted EBITDA also saw a substantial increase, and cash flow from operations improved significantly.

Net revenue increased by 20.6% to $915.8 million compared to the first quarter of 2021.

Gross profit rose by 21.4% to $200.9 million, representing 21.9% of net revenue.

Net income was $30.3 million, or $0.17 per share, a significant improvement from the net loss in the same period last year.

Adjusted EBITDA increased by 48.9% to $77.8 million.

Total Revenue
$916M
Previous year: $759M
+20.6%
EPS
$0.17
Previous year: -$0.02
-950.0%
Adjusted EBITDA
$77.8M
Previous year: $52.2M
+48.9%
Cash Flow from Operations
$32.7M
Previous year: $18.4M
+77.8%
Gross Profit
$201M
Previous year: $165M
+21.4%
Cash and Equivalents
$146M
Previous year: $109M
+33.1%
Free Cash Flow
$27.3M
Previous year: $15.3M
+79.1%
Total Assets
$2.88B
Previous year: $2.64B
+9.0%

Option Care Health

Option Care Health

Forward Guidance

For the full year 2022, Option Care Health expects to generate net revenue between $3.75 billion and $3.90 billion, adjusted EBITDA between $320 million and $335 million, and cash flow from operations of at least $230 million.

Positive Outlook

  • Net Revenue of $3.75 billion to $3.90 billion
  • Adjusted EBITDA of $320 million to $335 million
  • Cash Flow from Operations of at least $230 million
  • Overall, the company expects 2022 to be a productive year.
  • The Option Care Health team executed exceptionally to ensure high quality patient care and solid financial results.

Challenges Ahead

  • Ongoing pandemic disruption
  • Challenging environment
  • Uncertainty regarding material reconciling items for Adjusted EBITDA guidance.
  • Changes in laws and regulations applicable to the business model
  • Changes in market conditions and receptivity to services and offerings.