Option Care Health Reports Financial Results for Fourth Quarter and Full Year 2024

February 26, 2025 07:00 ET | Source: Option Care Health, Inc. BANNOCKBURN, Ill., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the fourth quarter and full year ended December 31, 2024. Fourth Quarter 2024 Financial Highlights Net revenue of $1,346.4 million, up 19.7% compared to $1,124.4 million in the fourth quarter of 2023Gross profit of $268.4 million, or 19.9% of net revenue, up 8.6% compared to $247.1 million, or 22.0% of net revenue, in the fourth quarter of 2023Net income of $60.1 million, compared to net income of $57.2 million, in the fourth quarter of 2023 and diluted earnings per share of $0.35, up 9.4% compared to diluted earnings per share of $0.32 in the fourth quarter of 2023Adjusted net income of $75.5 million, compared to adjusted net income of $66.7 million in the fourth quarter of 2023 and adjusted diluted earnings per share of $0.44, up 15.8% compared to adjusted diluted earnings per share of $0.38 in the fourth quarter of 2023Adjusted EBITDA of $121.6 million, up 8.9% compared to $111.6 million in the fourth quarter of 2023Cash flow from operations of $36.1 million, down 29.1% compared to cash flow from operations of $51.0 million in the fourth quarter of 2023Repurchased approximately $90.0 million of stock in the fourth quarter of 2024 Full Year 2024 Financial Highlights Net revenue of $4,998.2 million, up 16.2% compared to $4,302.3 million in full year 2023Gross profit of $1,013.0 million, or 20.3% of revenue, up 3.2% compared to $981.2 million, or 22.8% of revenue, in full year 2023Net income of $211.8 million, compared to net income of $267.1 million in full year 2023 and diluted earnings per share of $1.23, down 16.9% compared to diluted earnings per share of $1.48, inclusive of the impact from non-operating income, in full year 2023Adjusted net income of $272.8 million, compared to adjusted net income of $257.7 million in full year 2023 and adjusted diluted earnings per share of $1.58, up 10.5% compared to adjusted diluted earnings per share of $1.43 in full year 2023Adjusted EBITDA of $443.8 million, up 4.4% compared to $425.2 million in full year 2023Cash flow from operations of $323.4 million, down 12.9% compared to $371.3 million in full year 2023 John C. Rademacher, Chief Executive Officer, commented, “The Option Care Health team’s execution produced solid financial results in the fourth quarter and full year 2024, demonstrating resilience in a dynamic and challenging period, while continuing to place the patient at the center of everything that we do. I am excited about the road ahead and the opportunity to leverage our capabilities to provide more patients high quality, affordable care, in a setting in which they wish to receive it.” Full Year 2025 Financial Guidance For the full year 2025, Option Care Health expects to deliver the following financial results: Net revenue of $5.3 billion to $5.5 billionAdjusted diluted earnings per share of $1.59 to $1.69Adjusted EBITDA of $450 million to $470 millionCash flow from operations of at least $320 millionEffective tax rate of 25% - 27%Net interest expense of approximately $55 million to $60 million Conference Call Option Care Health will host a conference call to discuss its financial results later today at 8:30 a.m. EST. The conference call can be accessed via a live audio webcast that will be available online at 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. About Option Care Health Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 8,000 team members, including more than 5,000 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and teammates. To learn more, please visit our website at optioncarehealth.com. Investor Contact Mike ShapiroChief Financial OfficerT: (312) 940-2538mike.shapiro@optioncare.com Forward-Looking Statements - Safe Harbor This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we may make regarding future revenues, future earnings, regulatory developments, market developments, new products and growth strategies, integration activities and the effects of any of the foregoing on our future results of operations or financial conditions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: changes in laws and regulations applicable to our business model; changes in market conditions and receptivity to our services and offerings; pending and future litigation; potential liability for claims not covered by insurance; and loss of relationships with managed care organizations and other non-governmental third party payers. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our periodic reports as filed with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Note Regarding Use of Non-GAAP Financial Measures In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted net income, Adjusted EBITDA and Adjusted earnings per share ("Adjusted EPS"), which are non-GAAP financial measures. These adjusted measures are not measurements of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, earnings per share, or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definitions of Adjusted net income, Adjusted EBITDA, and Adjusted EPS may not be comparable to similarly titled non-GAAP financial measures reported by other companies. As defined by the Company: (i) Adjusted net income represents net income before intangible asset amortization expense, stock-based compensation expense, and restructuring, acquisition, integration and other expenses, net of tax adjustments (ii) Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other expenses, and (iii) Adjusted earnings per share represents Adjusted net income divided by weighted average common shares outstanding, diluted. As part of restructuring, acquisition, integration and other expenses, the Company may incur significant charges such as the write down of certain long‑lived assets, temporary redundant expenses, professional fees, certain litigation expenses and reserves related to acquired businesses, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that these adjusted measures provide useful supplemental information regarding the performance of Option Care Health’s business operations and facilitate comparisons to the Company’s historical operating results. We have not reconciled Adjusted EBITDA or Adjusted diluted earnings per share guidance to net income as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. Full reconciliations of each adjusted measure to the most comparable GAAP financial measure are set forth below. Schedule 1OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(IN THOUSANDS)(UNAUDITED) December 31, 2024 2023ASSETS CURRENT ASSETS: Cash and cash equivalents$412,565 $343,849Accounts receivable, net 409,733 377,658Inventories 388,131 274,004Prepaid expenses and other current assets 112,198 98,744Total current assets 1,322,627 1,094,255 NONCURRENT ASSETS: Property and equipment, net 127,367 120,630Intangible assets, net 16,993 20,092Referral sources, net 284,017 315,304Goodwill 1,540,246 1,540,246Other noncurrent assets 130,493 126,508Total noncurrent assets 2,099,116 2,122,780TOTAL ASSETS$3,421,743 $3,217,035 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable$610,779 $426,513Other current liabilities 169,367 191,796Total current liabilities 780,146 618,309 NONCURRENT LIABILITIES: Long-term debt, net of discount, deferred financing costs and current portion 1,104,641 1,056,650Other noncurrent liabilities 132,718 120,404Total noncurrent liabilities 1,237,359 1,177,054Total liabilities 2,017,505 1,795,363 STOCKHOLDERS' EQUITY 1,404,238 1,421,672TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,421,743 $3,217,035 Schedule 2OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 NET REVENUE$1,346,418 $1,124,390 $4,998,202 $4,302,324 COST OF REVENUE 1,078,039 877,267 3,985,209 3,321,101 GROSS PROFIT 268,379 247,123 1,012,993 981,223 OPERATING COSTS AND EXPENSES: Selling, general and administrative expenses 164,727 147,783 630,251 607,427 Depreciation and amortization expense 16,615 14,784 60,909 59,201 Total operating expenses 181,342 162,567 691,160 666,628 OPERATING INCOME 87,037 84,556 321,833 314,595 OTHER INCOME (EXPENSE): Interest expense, net (10,879) (12,432) (49,029) (51,248)Other, net 4,891 6,801 10,795 95,395 Total other (expense) income (5,988) (5,631) (38,234) 44,147 INCOME BEFORE INCOME TAXES 81,049 78,925 283,599 358,742 INCOME TAX EXPENSE 20,916 21,748 71,776 91,652 NET INCOME$60,133 $57,177 $211,823 $267,090 Earnings per share, basic$0.36 $0.32 $1.23 $1.49 Earnings per share, diluted$0.35 $0.32 $1.23 $1.48 Weighted average common shares outstanding, basic 168,816 176,055 171,567 178,973 Weighted average common shares outstanding, diluted 169,980 177,743 172,845 180,375 Schedule 3OPTION CARE HEALTH, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) Year EndedDecember 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income$211,823 $267,090 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization expense 63,498 62,200 Deferred income taxes - net 12,656 12,766 Other non-cash adjustments 55,661 50,684 Changes in operating assets and liabilities: Accounts receivable, net (32,075) 224 Inventories (114,127) (51,000)Accounts payable 183,395 47,703 Other (57,439) (18,372)Net cash provided by operating activities 323,392 371,295 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment (35,606) (41,866)Proceeds from sale of assets — 3,743 Business acquisitions, net of cash acquired — (12,494)Other investing activities (864) (5,889)Net cash used in investing activities (36,470) (56,506) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of debt 49,959 — Purchase of company stock and related excise taxes (252,726) (250,261)Other financing activities (15,439) (14,865)Net cash used in financing activities (218,206) (265,126) NET INCREASE IN CASH AND CASH EQUIVALENTS 68,716 49,663 Cash and cash equivalents - beginning of the period 343,849 294,186 CASH AND CASH EQUIVALENTS - END OF PERIOD$412,565 $343,849 Schedule 4OPTION CARE HEALTH, INC.RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES(IN THOUSANDS)(UNAUDITED) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income$60,133 $57,177 $211,823 $267,090 Interest expense, net 10,879 12,432 49,029 51,248 Income tax expense 20,916 21,748 71,776 91,652 Depreciation and amortization expense 17,469 15,777 63,498 62,200 EBITDA 109,397 107,134 396,126 472,190 EBITDA adjustments Stock-based incentive compensation expense 8,523 7,571 36,143 30,479 Loss on extinguishment of debt — — 377 — Restructuring, acquisition, integration and other (1) 3,639 (3,103) 11,143 (77,486)Adjusted EBITDA$121,559 $111,602 $443,789 $425,183 Net income$60,133 $57,177 $211,823 $267,090 Intangible asset amortization expense 8,596 8,629 34,405 34,381 Stock-based incentive compensation expense 8,523 7,571 36,143 30,479 Restructuring, acquisition, integration and other (1) 3,639 (3,103) 11,143 (77,486)Total pre-tax adjustments 20,758 13,097 81,691 (12,626)Tax adjustments (2) (5,356) (3,615) (20,668) 3,220 Adjusted net income$75,535 $66,659 $272,846 $257,684 Earnings per share, diluted$0.35 $0.32 $1.23 $1.48 Adjusted earnings per share, diluted$0.44 $0.38 $1.58 $1.43 Weighted average common shares outstanding, diluted 169,980 177,743 172,845 180,375 (1) Restructuring, acquisition, integration and other for the year ended December 31, 2023 includes the Amedisys merger termination fee, net of merger-related expenses (2) Tax adjustments for the three months and year ended December 31, 2024 and 2023 includes the estimated income tax effect on non-GAAP adjustments based on the effective tax rate

Option Care Health Reports Financial Results for Fourth Quarter and Full Year 2024

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