Workflow
Option Care Health Announces Financial Results for the Third Quarter Ended September 30, 2024
OPCHOption Care(OPCH) GlobeNewswire News Room·2024-10-30 11:00

Core Insights - Option Care Health reported a net revenue of 1,278.5millionforQ32024,representinga17.01,278.5 million for Q3 2024, representing a 17.0% increase from 1,093.0 million in Q3 2023 [2] - The gross profit for the quarter was 256.7million,accountingfor20.1256.7 million, accounting for 20.1% of net revenue, which is a slight increase from 254.3 million (23.3% of net revenue) in the same quarter last year [2] - Net income decreased by 4.3% to 53.9million,maintainingadilutedearningspershareof53.9 million, maintaining a diluted earnings per share of 0.31, unchanged from Q3 2023 [2] - Adjusted net income was 70.7million,or70.7 million, or 0.41 adjusted diluted earnings per share, down 3.2% from 73.1million(73.1 million (0.40) in Q3 2023 [2] - Adjusted EBITDA rose by 5.3% to 115.6millioncomparedto115.6 million compared to 109.8 million in Q3 2023 [2] - Cash flow from operations significantly increased to 160.4millionfrom160.4 million from 61.0 million in Q3 2023 [2] - The company ended Q3 2024 with cash and cash equivalents of 483.0million[2]SupplyChainChallenges−OptionCareHealthfacedsupplychaindisruptionsduetoHurricaneHelene,affectingtheproductionofintravenoussolutionbags,whichimpactstheabilitytosupportexistingandnewpatients[2]−Thecompanyiscloselymonitoringthesituationandcollaboratingwithmanufacturerstosecureinventory,butexpectsnegativeimpactsonQ4financialresults[2]UpdatedFinancialGuidance−Forthefullyear2024,OptionCareHealthanticipatesnetrevenuebetween483.0 million [2] Supply Chain Challenges - Option Care Health faced supply chain disruptions due to Hurricane Helene, affecting the production of intravenous solution bags, which impacts the ability to support existing and new patients [2] - The company is closely monitoring the situation and collaborating with manufacturers to secure inventory, but expects negative impacts on Q4 financial results [2] Updated Financial Guidance - For the full year 2024, Option Care Health anticipates net revenue between 4.9 billion and 4.95billion[3]−AdjustedEBITDAisexpectedtobeintherangeof4.95 billion [3] - Adjusted EBITDA is expected to be in the range of 438 million to 443million[3]−Thecompanymaintainsacashflowfromoperationsguidanceofatleast443 million [3] - The company maintains a cash flow from operations guidance of at least 300 million [3] - The effective tax rate is projected to be between 26% and 28%, consistent with previous guidance [3] - Net interest expense is expected to be approximately 55millionto55 million to 60 million, also consistent with prior guidance [3] Company Overview - Option Care Health is the largest independent provider of home and alternate site infusion services in the U.S., employing over 7,500 team members, including more than 4,500 clinicians [4] - The company aims to elevate care standards for patients with acute and chronic conditions across all 50 states [4]