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July 20, 2020, 8:00 a.m. EDT

Option Care Health Announces Preliminary Financial Results for the Second Quarter and Schedules Second Quarter Earnings Call

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BANNOCKBURN, Jul 20, 2020 (GLOBE NEWSWIRE via COMTEX) -- Option Care Health, Inc. (the "Company" or "Option Care Health") /zigman2/quotes/204677417/composite OPCH -0.76% , the nation's largest independent provider of home and alternate site infusion services, announced today preliminary financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Preliminary Financial Results

For the second quarter, Option Care Health expects to report:

-- Net revenue of approximately $740.8 million, representing comparable growth over the prior year of approximately 7%

-- Net loss of approximately $7.7 million

-- Adjusted EBITDA of approximately $54.6 million, representing approximately 7.4% of net revenue

-- Cash Flow from Operations of approximately $35.5 million

-- Ending cash balance of $118.1 million, representing an increase of $40.9 million compared to $77.2 million at March 31, 2020 and no outstanding borrowings on the Company's revolver

-- Ending gross debt of $1,332.6 million, or $1,214.5 million net of ending cash

As previously disclosed, Option Care Health received approximately $11.7 million in the second quarter from the Public Health and Social Services Emergency Fund as part of the Coronavirus Aid, Relief, and Economics Security Act. The $11.7 million will be reflected in the second quarter as a cash inflow from financing activities and, as a result, is reflected in the ending cash balance and net debt results above. The net revenue, adjusted EBITDA and cash flow from operations results above exclude any benefit from the proceeds. Additional communication regarding the final resolution of the funds and related accounting treatment will be forthcoming.

The second quarter results reflect the Company's continued efforts to accelerate growth and drive merger-related cost savings offset by the detrimental impact of the COVID-19 pandemic. As expected, the pandemic has negatively affected new patient referrals for both acute and chronic conditions; however, the Company did experience an increase in patient transfers from hospital and outpatient settings which positively affected revenues. For the second quarter, the revenue results reflect a single digit decline in acute revenues relative to the prior year while chronic revenue grew in the low double digits. Option Care Health continues to collaborate with payers and health systems to transition patients into the home or one of our alternate treatment sites to receive vital infusion therapy.

As previously disclosed, Option Care Health experienced cost inefficiencies in the second quarter with respect to clinical labor and other staffing challenges, as well as higher costs to procure personal protection equipment. Offsetting the negative impacts resulting from the COVID-19 pandemic, the Company managed spending and accelerated many integration-related initiatives. The Company exited the second quarter having fully achieved the articulated goal of at least $60 million in net cost synergies and, while certain integration efforts continue, ultimately expects to exceed the net cost synergy goal.

Full Year 2020 Financial Guidance

Option Care Health is reinstating financial guidance for the full year 2020 and now expects to generate $200 million to $210 million in Adjusted EBITDA and at least $50 million in Free Cash Flow. The full year guidance excludes any impact from the receipts from the Public Health and Social Services Emergency Fund as part of the Coronavirus Aid, Relief, and Economics Security Act described above.

Conference Call

The Company will release its second quarter results in their entirety on Tuesday, August 4, 2020 before the market opens. In conjunction, the management team will host a conference call to review the results at 8:30 a.m. E.T. on the same day.

The conference call can be accessed by dialing (866) 360-3136 for U.S. participants, or (602) 563-8603 for international participants, and referencing conference ID 9790835; or via a live audio webcast that will be available online at https://investors.optioncarehealth.com . A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Comparable growth represents Management's estimate of revenue growth in the second quarter as compared to the second quarter of 2019 had the merger been effective under consistent accounting policies

/zigman2/quotes/204677417/composite
US : U.S.: Nasdaq
$ 15.75
-0.12 -0.76%
Volume: 267,636
Nov. 30, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.96 billion
Rev. per Employee
$391,397
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