On Thursday, October 27, 2022, Option Care Health, Inc., the nation’s largest independent provider of home and alternate site infusion services, announced financial results for the third quarter ended September 30, 2022. The Bannockburn, Illinois-based company reported:
- 14.5% increase in net revenue from $891.9 million in Q3:21 to $1.02 billion in Q3:22
- 7.4% increase in gross profit from $203 million (22.8% of net revenue) in Q3:21 to $218 million (21.4% of net revenue) in Q3:22
- 9.3% increase in net income from $35.5 million ($0.20 per share) in Q3:21 to $38.8 million ($0.21 per share) in Q3:22
- 9.8% increase in adjusted EBITDA from $78 million (8.7% of net revenue) in Q3:21 to $85.6 million (8.4% of net revenue) in Q3:22
- 69.9% increase in cash flow from operations from $51.2 million in Q3:21 to $87 million in Q3:22
- Completed the acquisition of Rochester Home Infusion, Inc. for $27.4 million, financed through cash balances on hand
Option Care Health is revising its guidance for Full Year 2022 and is now expecting to generate:
- Net revenue of $3.90 billion to $3.95 billion
- Adjusted EBITDA of $336 million to $341 million
- Cash Flow from operations of at least $250 million
Here are some notable quotes from John C. Rademacher, CEO of Option Care Health:
- “The third quarter results reflect our continued strong execution in a very challenging operating environment. Overall, we are quite pleased with the progress we made in the third quarter, while delivering solid growth in revenue and earnings. Growing EBITDA earnings by nearly 10% year-over-year during a period of significant disruption demonstrates the strength of our team and the resilience of the platform.”
- “We do not see cost pressures subsiding in the near term, and in fact we have seen heightened pressure in several areas. As always, we continue to relentlessly focus on operational efficiencies to offset the pressure, and in some instances we have negotiated improved reimbursement for therapies and services most impacted by the inflationary environment.”
- “We continue to invest in our organic growth strategies. Our technology enablement and digital strategy took significant steps forward as we began to pilot Touchpoint, our mobile app that improves patient engagement through self-service functions and secure two-way communication, as well as increase in the data capture and analytics that we can provide. This has been part of our overarching, multi-year technology investment, and is great to see the fruits of our labor begin to ripen.”
- “Also through Q3, we have opened 16 new ambulatory infusion centers across the country this year, and have expanded our total chair count to over 570 infusion chairs across the country. We are on track to open a total of 25 new facilities this year … Increasing utilization of our infusion centers is a key growth strategy, as it enables us to more effectively treat patients and better utilize our clinical resources.”
- “The Option Care Health team continued to execute on our commitment to delivering extraordinary care to our patients. Our focus on quality patient care, as well as our investments for future growth, have allowed us to capitalize on dynamic market opportunities and deliver solid financial results in the third quarter, despite an ongoing challenging inflationary environment.”
