Option Care Health Inc (OPCH, Financial), the nation's largest independent provider of home and alternate site infusion services, announced its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company reported a solid financial performance, with significant increases in net revenue, gross profit, and net income.
Financial Highlights
Option Care Health Inc (OPCH, Financial) reported a net revenue of $1,093.0 million for Q3 2023, up 7.1% compared to $1,020.9 million in the same period last year. Gross profit also saw a significant increase, rising by 16.6% to $254.3 million, or 23.3% of net revenue, compared to $218.0 million, or 21.4% of net revenue, in Q3 2022.
The company's net income surged by 45.0% to $56.3 million, or $0.31 basic earnings per share, compared to net income of $38.8 million, or $0.21 basic earnings per share, in the third quarter of 2022. Adjusted EBITDA also saw a substantial increase, climbing by 28.2% to $109.8 million compared to $85.6 million in Q3 2022.
However, cash flow from operations decreased to $61.0 million compared to $87.0 million in the third quarter of 2022. The company's cash and cash equivalents balance stood at $386.5 million at the end of the third quarter of 2023.
CEO's Commentary
“The Option Care Health team continues to execute on outstanding clinical outcomes and extraordinary patient care, which helped translate into solid financial results in the third quarter. I am excited to build on this momentum as we close out the year and look forward to seeing the impact we believe the team will make in the post-acute and ambulatory setting in the years to come.” - John C. Rademacher, Chief Executive Officer
Full Year 2023 Financial Guidance
For the full year 2023, Option Care Health expects to generate net revenue of $4.23 billion to $4.28 billion, adjusted EBITDA of $420 million to $425 million, and cash flow from operations of at least $350 million. The company also anticipates an effective tax rate of approximately 27% and net interest expense of approximately $52.0 million to $54.0 million.
Balance Sheet and Cash Flow Statement Highlights
As of September 30, 2023, Option Care Health's total current assets stood at $1,116.3 million, with cash and cash equivalents amounting to $386.5 million. The company's total liabilities were $1,803.5 million, with current liabilities amounting to $624.1 million.
The company's net cash flow from operations for the nine months ended September 30, 2023, was reported in the condensed consolidated statements of cash flows. However, the specific figures were not provided in the earnings release.
Option Care Health's solid financial performance in Q3 2023 reflects its commitment to delivering outstanding clinical outcomes and patient care. As the company continues to build on this momentum, investors can look forward to potentially robust financial results in the future.
