Option Care(US:OPCH)2024-04-23 20:01Financial Performance - For the three months ended March 31, 2024, net revenue increased to $1,146,052, representing a 12.8% growth compared to $1,015,848 in the same period of 2023[87] - Gross profit for the first quarter of 2024 was $238,500, with a gross profit margin of 20.8%, down from 22.5% in the prior year[89] - Operating income for the first quarter of 2024 was $69,030, which is 6.0% of revenue, compared to $66,625 or 6.6% of revenue in the same quarter of 2023[87] - Net income for the three months ended March 31, 2024, was $44.8 million, an increase of 14.2% from $39.2 million in the same period of 2023[93] - Net comprehensive income rose to $46.3 million for the three months ended March 31, 2024, compared to $35.8 million for the same period in 2023, reflecting a 29.6% increase[94] Expenses and Costs - Selling, general and administrative expenses increased to $154,742, but as a percentage of revenue, they decreased to 13.5% from 14.6% year-over-year[90] - Total operating expenses for Q1 2024 were $169,470, compared to $162,380 in Q1 2023, reflecting a 4.4% increase[90] - Interest expense, net decreased to $13,202 in Q1 2024 from $13,834 in Q1 2023, reflecting a 4.6% reduction[91] - Income tax expense for the first quarter of 2024 was $12,164, down 19.0% from $15,021 in the same quarter of 2023, with an effective tax rate of 21.4%[92] Cash Flow and Liquidity - Cash and cash equivalents decreased to $219.5 million as of March 31, 2024, down from $343.8 million at the end of 2023[96] - Cash flows from operating activities showed a net cash outflow of $68.8 million for the three months ended March 31, 2024, compared to an inflow of $89.8 million in the same period of 2023, a variance of $158.5 million[106] - The company utilized $40.0 million for common stock repurchases during the three months ended March 31, 2024, compared to $75.0 million in the same period of 2023[109] - The company had $394.7 million of borrowings available under its credit facilities as of March 31, 2024[101] - The company’s cash flows from operations were impacted by the Change Healthcare Cybersecurity Incident, affecting accounts receivable[107] Strategic Initiatives - The increase in net revenue was primarily driven by organic growth in the company's portfolio of therapies, with chronic revenue growing in the mid-teens[89] - The company maintained strong liquidity and resumed claims submission to payers following the Change Healthcare Cybersecurity Incident, which did not materially impact financial results[74] - The company continues to work through accumulated unprocessed claims and establish full recovery with Change Healthcare's applications[73] - The company plans to continue evaluating acquisition opportunities as a key part of its growth strategy[98] - The company’s capital expenditures increased during the three months ended March 31, 2024, compared to the same period in 2023[108] - Interest payments on long-term debt obligations are estimated to total $341.8 million based on current rates as of March 31, 2024[104]