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Dec 31, 2020

Option Care Health Q4 2020 Earnings Report

Financial results for the fourth quarter and full year 2020 were announced.

Key Takeaways

Option Care Health reported a strong fourth quarter with a revenue increase of 11.6% and net income of $17.8 million, a significant turnaround from the net loss in the same quarter of the previous year. The company also provided financial guidance for the full year 2021.

Net revenue increased by 11.6% to $804.7 million compared to Q4 2019.

Gross profit rose to $183.8 million, representing 22.8% of revenue.

Net income was $17.8 million, or $0.10 earnings per share, a significant improvement from the net loss in Q4 2019.

Adjusted EBITDA increased by 27.7% to $67.7 million.

Total Revenue
$805M
Previous year: $721M
+11.6%
EPS
$0.1
Previous year: -$0.09
-211.1%
Adjusted EBITDA
$67.7M
Previous year: $53M
+27.8%
Cash Flow from Operations
$25.7M
Previous year: $22.9M
+12.2%
Gross Profit
$184M
Previous year: $176M
+4.6%
Cash and Equivalents
$99.3M
Previous year: $67.1M
+48.0%
Free Cash Flow
$11.7M
Previous year: $7.76M
+50.4%
Total Assets
$2.65B
Previous year: $2.59B
+2.2%

Option Care Health

Option Care Health

Forward Guidance

For the full year 2021, Option Care Health expects to deliver net revenue between $3.20 billion and $3.25 billion, adjusted EBITDA between $245.0 million and $258.0 million, and cash flow from operations of at least $140.0 million.

Positive Outlook

  • Net revenue of $3.20 billion to $3.25 billion
  • Adjusted EBITDA of $245.0 million to $258.0 million
  • Cash flow from operations of at least $140.0 million
  • Net debt to Adjusted EBITDA leverage ratio at December 31, 2021 below 4.0x