Option Care(US:OPCH)2025-04-29 20:00Financial Performance - Net revenue for the three months ended March 31, 2025, was $1,332.97 million, a 16.3% increase from $1,146.05 million in the same period of 2024[91] - Gross profit for the same period was $263.05 million, representing a gross profit margin of 19.7%, down from 20.8% in 2024[91] - Operating income increased to $79.19 million, with an operating margin of 5.9%, compared to $69.03 million and 6.0% in 2024[91] - Net income for the three months ended March 31, 2025, was $46.74 million, a 4.4% increase from $44.79 million in 2024[100] - The increase in net revenue was primarily driven by organic growth in the company's portfolio of therapies, with acute revenue growing in the mid-teens and chronic revenue in the high-teens[94] Expenses and Taxation - Selling, general and administrative expenses rose to $168.12 million, but decreased as a percentage of revenue to 12.6% from 13.5%[95] - Income tax expense increased to $16.81 million, reflecting an effective tax rate of 26.5%, up from 21.4% in 2024[99] - The company reported total other expense of $15.63 million, an increase of 29.5% compared to $12.08 million in 2024[97] - The change in unrealized loss on cash flow hedges resulted in a loss of $2.40 million, compared to a gain of $1.55 million in 2024[100] - The company experienced a decrease in net comprehensive income to $44.34 million from $46.34 million in the prior year[102] Cash Flow and Investments - As of March 31, 2025, the company had cash and cash equivalents of $171.4 million and $412.6 million as of December 31, 2024, with $395.9 million available under credit facilities[103] - Net cash used in operating activities for the three months ended March 31, 2025, was $(7,214) thousand, a decrease of $61,570 thousand compared to $(68,784) thousand in the same period of 2024[111] - Cash used in investing activities increased to $(126,693) thousand for the three months ended March 31, 2025, primarily due to the Intramed Plus acquisition, with no comparable activity in 2024[113] - Cash and cash equivalents decreased by $241,193 thousand during the three months ended March 31, 2025, compared to a decrease of $124,336 thousand in the same period of 2024[111] Financing and Debt - The company repurchased $100.0 million of common stock during the three months ended March 31, 2025, compared to $40.0 million in the same period of 2024, resulting in an increase in cash used in financing activities[114] - The principal balance of the First Lien Term Loan is repayable in quarterly installments of $1.6 million plus interest, with a final payment due on October 27, 2028[107] - Interest payments on long-term debt obligations are estimated to total $249.2 million based on current rates as of March 31, 2025[110] - The company had $4.1 million of undrawn letters of credit issued and outstanding, resulting in net borrowing availability under the Revolver Facility of $395.9 million as of March 31, 2025[109] Strategic Outlook - The company continues to evaluate acquisition opportunities as a key part of its growth strategy, requiring additional capital for future acquisitions[105] - The company believes existing cash and expected cash flows will be sufficient to meet operating requirements over the next 12 months[106]