NASDAQ$OPCH

Option Care Health, Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Option Care Health reported mixed Q4 2019 results, with revenue up but net income down, and announced full year 2020 guidance.

Option Care Health announced financial results for Q4 and full year 2019. Net revenue for Q4 was $720.8 million, up 42.5% compared to Q4 2018. Net loss was $15.8 million, compared to net income of $3.3 million in Q4 2018. Adjusted EBITDA was $53.0 million, up 70.0% compared to Q4 2018.

  • Net revenue increased by 42.5% to $720.8 million compared to the fourth quarter of 2018.
  • Gross profit increased by 58.2% to $175.6 million compared to the fourth quarter of 2018.
  • Net loss was $15.8 million, compared to net income of $3.3 million in the fourth quarter of 2018.
  • Adjusted EBITDA increased by 70.0% to $53.0 million compared to the fourth quarter of 2018.

Headline financials

Total Revenue

$721M

Previous: $184M+292.6%
EPS (adj)

-$0.09

Previous: -$0.56+83.9%
Adjusted EBITDA

$53M

Previous: $31.1M+70.0%
Capital Expenditures

$15.1M

No prior period
Free Cash Flow

$7.76M

No prior period
Net Income

-$15.8M

Previous: -$15.4M-2.9%
Operating Income

$14M

Previous: $5.52M+153.0%
Gross Profit

$176M

Previous: $62.1M+182.7%
Cash & Equivalents

$67.1M

No prior period
Total Assets

$2.59B

No prior period
Stock-Based Comp

$272K

No prior period

Revenue & EPS history

Option Care Health · Revenue · Quarterly

$721M

Q4 2019+292.6%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

For the full year 2020, Option Care Health expects net revenue of $2.83 billion to $2.90 billion, adjusted EBITDA of $200.0 million to $215.0 million, cash flow from operations of at least $50.0 million, and net debt to Adjusted EBITDA leverage ratio at December 31, 2020 of approximately 5.5x

Tailwinds

  • Net revenue of $2.83 billion to $2.90 billion
  • Approximate comparable full year growth of 2.5% to 5.0% normalizing for the timing of the merger
  • Adjusted EBITDA of $200.0 million to $215.0 million
  • Cash flow from operations of at least $50.0 million
  • Net debt to Adjusted EBITDA leverage ratio at December 31, 2020 of approximately 5.5x

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 Q4 2019

Historical avgQ4 2019

-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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