Choice Care Well being Reviews Monetary Outcomes for Fourth Quarter and Full 12 months 2021 and Broadcasts Two Extra Acquisitions

Choice Care Enterprises, Inc.

BANNOCKBURN, In poor health., Feb. 23, 2022 (GLOBE NEWSWIRE) — Choice Care Well being, Inc. (the “Firm” or “Choice Care Well being”) (Nasdaq: OPCH), the nation’s largest unbiased supplier of residence and alternate website infusion companies, introduced right this moment monetary outcomes for the fourth quarter and full 12 months ended December 31, 2021.

The Firm additionally introduced that it acquired Wasatch Infusion LLC (“Wasatch”), an infusion heart operator primarily based in Salt Lake Metropolis, Utah, in December and has additionally entered right into a definitive settlement to accumulate Specialty Pharmacy Nursing Community, Inc. (“SPNN”), which it expects to finish in 2022.

Fourth Quarter 2021 Monetary Highlights

  • Web income of $927.2 million, up 15.2% in comparison with $804.7 million within the fourth quarter of 2020

  • Gross revenue of $212.2 million, or 22.9% of income, up 15.5% in comparison with $183.8 million, or 22.8% of income, within the fourth quarter of 2020

  • Web revenue of $75.5 million, or $0.42 earnings per share inclusive of a one-time profit from the elimination of the Firm’s valuation allowance on deferred tax property of $30.4 million or $0.17 per share, in comparison with internet revenue of $17.8 million, or $0.10 earnings per share, within the fourth quarter of 2020

  • Adjusted EBITDA of $86.8 million, up 28.3% in comparison with $67.7 million within the fourth quarter of 2020

  • Money stream from operations of $65.3 million, and money balances of $119.4 million on the finish of the fourth quarter

  • Acquired Infinity Infusion Nursing, LLC and Wasatch for $50.0 million and $17.8 million, respectively, financed by way of money balances available

Full 12 months 2021 Monetary Highlights

  • Web income of $3,438.6 million up 13.4% in comparison with $3,032.6 million within the full 12 months 2020

  • Gross revenue of $779.6 million, or 22.7% of income, up 14.2% in comparison with $682.3 million, or 22.5% of income, in full 12 months 2020

  • Web revenue of $139.9 million, or $0.78 earnings per share, in comparison with internet lack of $8.1 million, or $0.04 loss per share, in full 12 months 2020

  • Adjusted EBITDA of $289.8 million, up 30.7% in comparison with $221.7 million in full 12 months 2020

  • Money stream from operations of $208.6 million, up 63.7% in comparison with $127.4 million in full 12 months 2020

John C. Rademacher, Chief Govt Officer, commented, “Your complete Choice Care Well being workforce continues to execute in an ongoing difficult atmosphere. With the affected person on the heart of all the pieces we do, Choice Care Well being served over 1 / 4 of one million sufferers in 2021 regardless of the continued pandemic state of affairs. We’re happy with the outcomes now we have generated in addition to the numerous investments we proceed to make to drive future development.”

Full 12 months 2022 Monetary Steering

For the total 12 months 2022, Choice Care Well being expects to ship the next monetary outcomes:

  • Web income of $3.65 billion to $3.85 billion

  • Adjusted EBITDA of $310 million to $330 million

  • Money stream from operations of not less than $230 million

The monetary expectations don’t embody any influence from the acquisition of SPNN because it has not but been accomplished.

Convention Name

The convention name could be accessed by dialing (866) 360-3136 for U.S. contributors or (602) 563-8603 for worldwide contributors, and referencing convention ID 7156207; or by way of a stay audio webcast that will probably be out there on-line at traders.optioncarehealth.com. A replay of the decision will probably be out there by way of webcast for on-demand listening shortly after the completion of the decision, on the similar internet hyperlink, and can stay out there for roughly 90 days.

About Choice Care Well being

Choice Care Well being is the nation’s largest unbiased supplier of residence and alternate website infusion companies. With over 7,000 teammates, together with roughly 4,300 clinicians, we work compassionately to raise requirements of look after sufferers with acute and persistent situations in all 50 states. By our medical management, experience and nationwide scale, Choice Care Well being is reimagining the infusion care expertise for sufferers, prospects and teammates. To be taught extra, please go to our web site at OptionCareHealth.com.

Investor Contacts

Ahead-Wanting Statements – Secure Harbor

This press launch might comprise “forward-looking statements” inside the which means of the secure harbor provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements could be recognized by phrases akin to: “anticipate,” “intend,” “plan,” “imagine,” “undertaking,” “estimate,” “anticipate,” “might,” “ought to,” “will” and comparable references to future intervals. Examples of forward-looking statements embody, amongst others, statements we might make concerning future revenues, future earnings, regulatory developments, market developments, new merchandise and development methods, integration actions and the consequences of any of the foregoing on our future outcomes of operations or monetary situations.

Ahead-looking statements are neither historic info nor assurances of future efficiency. As a substitute, they’re primarily based solely on our present beliefs, expectations and assumptions concerning the way forward for our enterprise, future plans and techniques, projections, anticipated occasions and traits, the economic system and different future situations. As a result of forward-looking statements relate to the longer term, they’re topic to inherent uncertainties, dangers and adjustments in circumstances which might be troublesome to foretell and lots of of that are exterior of our management. Our precise outcomes and monetary situation might differ materially from these indicated within the forward-looking statements. Necessary elements that would trigger our precise outcomes and monetary situation to vary materially from these indicated within the forward-looking statements embody, amongst others, the next: (i) adjustments in legal guidelines and laws relevant to our enterprise mannequin; (ii) adjustments in market situations and receptivity to our companies and choices; (iii) outcomes of litigation; and (iv) the lack of a number of key payers. For an in depth dialogue of the danger elements that would have an effect on our precise outcomes, please seek advice from the danger elements recognized in our SEC studies as filed with the SEC.

Any forward-looking assertion made by us on this press launch relies solely on info presently out there to us and speaks solely as of the date on which it’s made. We undertake no obligation to publicly replace any forward-looking assertion, whether or not written or oral, that could be made every now and then, whether or not on account of new info, future developments or in any other case.

Notice Concerning Use of Non-GAAP Monetary Measures

Along with reporting monetary info in accordance with typically accepted accounting rules (GAAP), the Firm can be reporting Adjusted EBITDA, which is a non-GAAP monetary measure. Adjusted EBITDA shouldn’t be a measurement of monetary efficiency beneath GAAP and shouldn’t be utilized in isolation or in its place or different to internet revenue, working revenue or every other efficiency measure derived in accordance with GAAP, or in its place or different to money stream from working actions or a measure of the Firm’s liquidity. As well as, the Firm’s definition of Adjusted EBITDA will not be corresponding to equally titled non-GAAP monetary measures reported by different firms. Adjusted EBITDA, as outlined by the Firm, represents internet revenue earlier than internet curiosity expense, revenue tax expense, depreciation and amortization, stock-based compensation expense, and restructuring, integration and different bills. As a part of restructuring, integration and different bills, the Firm might incur important fees such because the write down of sure lengthy−lived property, short-term redundant bills, skilled charges, potential retention and severance prices and potential accelerated funds or termination prices for sure of its contractual obligations. Administration believes that Adjusted EBITDA gives helpful supplemental info concerning the efficiency of Choice Care Well being’s enterprise operations and facilitates comparisons to the Firm’s historic working outcomes. We’ve not reconciled Adjusted EBITDA steerage to internet revenue as creation of this reconciliation wouldn’t be practicable as a result of uncertainty concerning, and potential variability of, materials reconciling objects. For a full reconciliation of Adjusted EBITDA to essentially the most comparable GAAP monetary measure, please see the attachment to this earnings launch.

Schedule 1

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

December 31,

2021

2020

ASSETS

CURRENT ASSETS:

Money and money equivalents

$

119,423

$

99,265

Accounts receivable, internet

338,242

328,340

Inventories

183,095

158,601

Pay as you go bills and different present property

69,496

70,806

Whole present property

710,256

657,012

NONCURRENT ASSETS:

Property and gear, internet

111,535

121,149

Intangible property, internet

21,433

23,429

Referral sources

344,587

327,623

Goodwill

1,477,564

1,428,610

Different noncurrent property

125,543

89,616

Whole noncurrent property

2,080,662

1,990,427

TOTAL ASSETS

$

2,790,918

$

2,647,439

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

279,246

$

282,913

Different present liabilities

180,449

151,110

Whole present liabilities

459,695

434,023

NONCURRENT LIABILITIES:

Lengthy-term debt, internet of low cost, deferred financing prices and present portion

1,059,900

1,115,103

Different noncurrent liabilities

95,437

82,589

Whole noncurrent liabilities

1,155,337

1,197,692

Whole liabilities

1,615,032

1,631,715

STOCKHOLDERS’ EQUITY

1,175,886

1,015,724

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,790,918

$

2,647,439

Schedule 2

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Three Months Ended
December 31,

12 months Ended
December 31,

2021

2020

2021

2020

NET REVENUE

$

927,194

$

804,713

$

3,438,640

$

3,032,610

COST OF REVENUE

714,997

620,951

2,659,034

2,350,346

GROSS PROFIT

212,197

183,762

779,606

682,264

OPERATING COSTS AND EXPENSES:

Promoting, basic and administrative bills

136,777

123,001

525,707

500,199

Depreciation and amortization expense

14,648

16,418

63,058

71,310

Whole working bills

151,425

139,419

588,765

571,509

OPERATING INCOME

60,772

44,343

190,841

110,755

OTHER INCOME (EXPENSE):

Curiosity expense, internet

(14,286

)

(23,668

)

(67,003

)

(107,770

)

Different, internet

481

(2,270

)

(7,344

)

(8,228

)

Whole different expense

(13,805

)

(25,938

)

(74,347

)

(115,998

)

INCOME (LOSS) BEFORE INCOME TAXES

46,967

18,405

116,494

(5,243

)

INCOME TAX (BENEFIT) EXPENSE

(28,500

)

566

(23,404

)

2,833

NET INCOME (LOSS)

$

75,467

$

17,839

$

139,898

$

(8,076

)

Earnings (loss) per share, primary

$

0.42

$

0.10

$

0.78

$

(0.04

)

Earnings (loss) per share, diluted

$

0.41

$

0.10

$

0.77

$

(0.04

)

Schedule 3

OPTION CARE HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

12 months Ended
December 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Web revenue (loss)

139,898

(8,076

)

Changes to reconcile internet revenue (loss) to internet money supplied by operations:

Depreciation and amortization expense

68,804

77,896

Paid-in-kind curiosity capitalized as principal

7,525

Different non-cash changes

11,237

42,917

Adjustments in working property and liabilities:

Accounts receivable, internet

(4,273

)

(3,924

)

Inventories

(22,700

)

(42,725

)

Accounts payable

(10,381

)

59,215

Different

25,984

(5,436

)

Web money supplied by working actions

208,569

127,392

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and gear

(25,632

)

(26,875

)

Different investing money flows

541

Enterprise acquisitions, internet of money acquired

(85,909

)

Web money utilized in investing actions

(111,541

)

(26,334

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from debt

855,136

Retirement of debt obligations

(910,345

)

(174,000

)

Web proceeds from issuance of widespread inventory

118,934

Deferred financing prices

(10,339

)

(149

)

Different financing money flows

(11,322

)

(13,634

)

Web money (utilized in) financing actions

(76,870

)

(68,849

)

NET INCREASE IN CASH AND CASH EQUIVALENTS

20,158

32,209

Money and money equivalents – starting of the interval

99,265

67,056

CASH AND CASH EQUIVALENTS – END OF PERIOD

119,423

99,265

Schedule 4

OPTION CARE HEALTH, INC.
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(IN THOUSANDS)
(UNAUDITED)

Three Months Ended
December 31,

12 months Ended
December 31,

2021

2020

2021

2020

Consolidated internet revenue (loss)

$

75,467

$

17,839

$

139,898

$

(8,076

)

Curiosity expense, internet

14,286

23,668

67,003

107,770

Revenue tax (profit) expense

(28,500

)

566

(23,404

)

2,833

Depreciation and amortization expense

15,984

17,842

68,804

77,896

Consolidated EBITDA

77,237

59,915

252,301

180,423

EBITDA changes

Inventory-based incentive compensation

3,329

332

9,575

2,920

Loss on extinguishment of debt

984

3,196

13,387

11,545

Restructuring, acquisition, integration and different

5,200

4,208

14,543

26,788

Consolidated adjusted EBITDA

$

86,750

$

67,651

$

289,806

$

221,676

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