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Dec 31, 2021

Option Care Health Q4 2021 Earnings Report

Option Care Health's financial performance increased due to revenue growth and strategic acquisitions.

Key Takeaways

Option Care Health reported a strong fourth quarter and full year in 2021, marked by a 15.2% increase in net revenue for Q4, reaching $927.2 million, and a net income of $75.5 million. The company's adjusted EBITDA for Q4 grew by 28.3% to $86.8 million. Additionally, Option Care Health completed the acquisition of Wasatch Infusion LLC and announced a definitive agreement to acquire Specialty Pharmacy Nursing Network, Inc.

Net revenue increased by 15.2% to $927.2 million compared to Q4 2020.

Gross profit rose by 15.5% to $212.2 million, representing 22.9% of revenue.

Net income was reported at $75.5 million, or $0.42 earnings per share, including a one-time tax benefit.

Adjusted EBITDA grew by 28.3% to $86.8 million compared to the same period last year.

Total Revenue
$927M
Previous year: $805M
+15.2%
EPS
$0.25
Previous year: $0.1
+150.0%
Adjusted EBITDA
$86.8M
Previous year: $67.7M
+28.2%
Cash Flow from Operations
$65.3M
Previous year: $25.7M
+154.1%
Gross Profit
$212M
Previous year: $184M
+15.5%
Cash and Equivalents
$119M
Previous year: $99.3M
+20.3%
Free Cash Flow
$51.4M
Previous year: $11.7M
+341.0%
Total Assets
$2.79B
Previous year: $2.65B
+5.4%

Option Care Health

Option Care Health

Forward Guidance

For the full year 2022, Option Care Health expects to deliver net revenue between $3.65 billion and $3.85 billion, adjusted EBITDA between $310 million and $330 million, and cash flow from operations of at least $230 million. This guidance does not include the impact of the SPNN acquisition.

Positive Outlook

  • Net revenue of $3.65 billion to $3.85 billion is expected.
  • Adjusted EBITDA of $310 million to $330 million is anticipated.
  • Cash flow from operations is projected to be at least $230 million.
  • The company is focused on patient-centered care, serving over a quarter of a million patients in 2021.
  • Continued investments are being made to drive future growth.

Challenges Ahead

  • Ongoing challenging environment.
  • The financial expectations do not include any impact from the acquisition of SPNN.
  • Potential variability of material reconciling items.
  • Changes in laws and regulations applicable to the business model.
  • Changes in market conditions and receptivity to services and offerings.