NASDAQ$OPCH

Option Care Health, Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported strong financial results with robust revenue growth and solid cash flow generation.

Option Care Health announced strong financial results for the first quarter ended March 31, 2020, with a net revenue of $705.4 million, up 48.0% compared to the first quarter of 2019. The company reported a net loss of $19.9 million, or $0.11 per share, and an adjusted EBITDA of $40.2 million, up 107.6% compared to the first quarter of 2019. The company's cash flow from operations was $18.4 million, and it had cash balances of $77.2 million at the end of the quarter.

  • Net revenue increased by 48.0% to $705.4 million compared to the first quarter of 2019.
  • Gross profit increased by 60.9% to $158.0 million compared to the first quarter of 2019.
  • Adjusted EBITDA increased by 107.6% to $40.2 million compared to the first quarter of 2019.
  • Cash flow from operations increased by 102.7% to $18.4 million compared to the first quarter of 2019.

Headline financials

Total Revenue

$705M

Previous: $179M+294.2%
EPS (adj)

-$0.11

Previous: -$0.40+72.5%
Adjusted EBITDA

$40.2M

Previous: $19.4M+107.6%
Capital Expenditures

-$5.35M

Previous: $5.37M-199.7%
Free Cash Flow

-$25.3M

Previous: -$10.3M-145.7%
Net Income

-$19.9M

Previous: -$10.3M-93.6%
Operating Income

$8.65M

Previous: -$5.11M+269.2%
Gross Profit

$158M

Previous: $57.7M+174.1%
Cash & Equivalents

$77.2M

Previous: $5.7M+1254.4%
Total Assets

$2.61B

Previous: $597M+337.5%
Stock-Based Comp

$757K

Previous: $584K+29.6%

Revenue & EPS history

Option Care Health · Revenue · Quarterly

$705M

Q1 2020+294.2%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The pandemic is expected to impact the Company across a number of areas; however, such impacts cannot be accurately projected given the dynamic nature of the situation. As a result, the Company is not in a position to maintain its previously-communicated guidance for the full year 2020.

Headwinds

  • Variability in acute therapy patient referrals from hospitals based on changes in hospital-based procedures and treatment patterns
  • Variability in chronic therapy patient referrals based on disruptions in the diagnosis of chronic conditions requiring infusion therapy
  • Inefficiencies in clinical labor expenses and higher labor costs from staffing disruptions and availability, potential overtime due to inefficient clinical staffing and utilization of contract labor
  • Higher costs to procure, and potential unavailability of, critical personal protection equipment, pharmaceuticals and medical supplies given a constrained supply environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.9%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-1.9%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+27.4%

Q3 2015

Best reaction

-53.6%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-24.3%-20.7%-22.4%
Q4 2025-7.3%-10.1%-23.1%
Q3 2025-8.7%-5.7%+8.5%
Q1 2025-6.9%-0.1%-2.2%
Q4 2024+1.6%+4.1%+6.4%
Q3 2024-24.5%-26.3%-22.0%
Q2 2024-1.9%-5.3%+2.1%
Q1 2024-1.6%-2.6%-6.0%
Q4 2023-3.4%-1.8%-2.0%
Q3 2023-15.6%-18.4%-8.1%
Q2 2023+5.3%+4.0%+7.9%
Q1 2023-14.7%-12.6%-11.4%
Q4 2022+7.1%+6.3%+9.4%
Q3 2022-10.9%-13.3%-17.6%
Q2 2022+5.0%+4.8%-2.2%
Q1 2022+10.3%+7.4%+14.2%
Q4 2021+8.6%+10.8%+20.9%
Q3 2021-0.0%-2.1%-12.1%
Q2 2021-0.1%+8.3%+35.1%
Q1 2021-4.7%-8.8%+2.3%
Q4 2020+2.2%+1.9%-3.7%
Q3 2020+11.4%+11.7%+14.1%
Q2 2020+3.6%+1.7%-2.8%
Q1 2020+8.8%+6.6%+32.7%
Q4 2019-12.8%-16.1%-48.4%
Q3 2019-2.4%-5.9%-16.3%
Q2 2019-1.4%-5.2%+21.5%
Q1 2019-2.5%-1.5%-4.0%
Q4 2018-33.0%-38.7%-50.4%
Q3 2018+16.0%+12.8%+34.2%
Q2 2018-1.5%+2.5%+4.4%
Q1 2018-6.1%-0.4%+6.9%
Q4 2017+3.3%+0.0%+9.8%
Q3 2017-13.8%-18.8%+5.8%
Q2 2017+8.6%+21.8%+6.8%
Q1 2017+3.6%+1.8%+24.2%
Q4 2016-12.3%-10.6%-33.9%
Q3 2016-53.6%-47.9%-56.3%
Q2 2016+3.0%+2.6%+2.3%
Q1 2016+3.1%
Q4 2015+7.1%
Q3 2015+27.4%
Q2 2015-22.8%
Q1 2015-10.0%
Q4 2014-11.3%
Q3 2014+1.3%
Q2 2014-4.4%
Q1 2014+2.1%
Q4 2013+6.3%
Q2 1997+9.0%
Q3 2013-4.6%
Q2 2013-17.2%
Q1 2013-0.1%
Q4 2012-1.5%
Q3 2012+3.7%
Q2 2012+11.0%
Q1 2012+3.2%
Q4 2011-1.5%
Q3 2011-11.2%
Q2 2011+1.5%
Q4 2010+1.5%
Q1 2011-1.4%
Q3 2010+8.1%
Q2 2010-3.0%
Q1 2009+0.9%
Q1 2010+3.4%
Q2 2009+2.6%
Q4 2007+2.6%
Q4 2009+2.6%
Q3 2009+5.6%
Q3 2008+5.6%
Q4 2008+5.6%

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