The following is a summary of the Option Care Health, Inc. (OPCH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Option Care Health reported Q1 revenue growth of over 12% and a gross profit of $238.5 million, a 4.1% increase over the prior year.
SG&A expenses grew by 4.7% as the company managed to reduce spending.
Adjusted EBITDA stood at $98.3 million, representing 8.6% of net revenue.
The company aims to generate net revenue of $4.65 billion to $4.8 billion and adjusted EBITDA between $430 million and $450 million for the full year.
Costs related to therapy slightly escalated due to supply chain difficulties, but it didn't significantly impact revenue.
The company repurchased $40 million worth of shares, suspending the program for the time being to focus on liquidity preservation.
Business Progress:
The company maintained a high patient satisfaction and Net Promoter Score despite a cybersecurity incident with Change Healthcare.
This incident made the company prioritize cybersecurity and take steps to strengthen their platform.
The company is expanding with three additional facilities and focusing on improving clinical programs to better patient outcomes and reduce costs.
Supply chain disruptions are anticipated to lessen throughout the year, bringing business operations back to normal.
The company is exploring M&A opportunities and potential capital deployment through share repurchases.
It also plans to improve operational efficiency by automating processes and enhancing both front-end and back-end business operations.
The company is in discussions for potential future additions to its therapy offerings, including Oncology.
Despite disruptions in cash flow owing to the incident with Change Healthcare, the company is actively recovering its financial growth.
Opening of new ambulatory infusion suites is on the anvil as part of their strategy.
More details: Option Care Health IR
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