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Mar 31, 2023
Option Care Health Q1 2023 Earnings Report
Option Care Health's financial performance for Q1 2023 showed strong growth and exceeded expectations.
Key Takeaways
Option Care Health reported a strong first quarter in 2023, with a 10.9% increase in net revenue, a 29.5% increase in net income, and a 20.6% increase in Adjusted EBITDA. The company also completed a $75.0 million stock repurchase and launched Naven Health.
Net revenue increased by 10.9% to $1,015.8 million compared to Q1 2022.
Net income rose by 29.5% to $39.2 million, with basic earnings per share at $0.22.
Adjusted EBITDA grew by 20.6% to $93.8 million compared to the same period last year.
Cash flow from operations increased to $89.8 million from $32.7 million in Q1 2022.
Option Care Health
Option Care Health
Forward Guidance
Option Care Health updated its full year 2023 financial guidance, excluding the impact of the pending combination with Amedisys, Inc. The company expects to generate net revenue of $4.15 billion to $4.375 billion, Adjusted EBITDA of $380 million to $395 million, and cash flow from operations of at least $240 million.
Positive Outlook
- Net Revenue of $4.15 billion to $4.375 billion
- Adjusted EBITDA of $380 million to $395 million
- Cash Flow from Operations of at least $240 million
- Effective tax rate of 27% - 29%
- Net interest expense of approximately $61.0 million to $65.0 million
Challenges Ahead
- Guidance excludes the impact of the Company's pending combination with Amedisys, Inc.
- Uncertainty regarding material reconciling items between Adjusted EBITDA guidance and net income
- Changes in laws and regulations applicable to our business model
- Changes in market conditions and receptivity to our services and offerings
- Potential liability for claims not covered by insurance