Delaware | 001-11993 | 05-0489664 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.0001 par value per share | OPCH | Nasdaq Global Select Market |
Exhibit No. | Description | |||||||
Option Care Health, Inc. | |||||||||||
Date: | August 4, 2020 | By: | /s/ Michael Shapiro | ||||||||
Michael Shapiro | |||||||||||
Chief Financial Officer |
Mike Shapiro | Bob East, Asher Dewhurst, Jordan Kohnstam | ||||
Chief Financial Officer | Westwicke | ||||
T: (312) 940-2538 | T: (413) 213-0500 | ||||
mike.shapiro@optioncare.com | optioncarehealth@westwicke.com |
(unaudited) | |||||||||||
June 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 118,099 | $ | 67,056 | |||||||
Accounts receivable, net | 320,222 | 324,416 | |||||||||
Inventories | 149,115 | 115,876 | |||||||||
Prepaid expenses and other current assets | 50,107 | 51,306 | |||||||||
Total current assets | 637,543 | 558,654 | |||||||||
NONCURRENT ASSETS: | |||||||||||
Property and equipment, net | 117,629 | 133,198 | |||||||||
Intangible assets, net | 368,481 | 385,910 | |||||||||
Goodwill | 1,428,610 | 1,425,542 | |||||||||
Other noncurrent assets | 74,002 | 86,243 | |||||||||
Total noncurrent assets | 1,988,722 | 2,030,893 | |||||||||
TOTAL ASSETS | $ | 2,626,265 | $ | 2,589,547 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 260,120 | $ | 221,060 | |||||||
Other current liabilities | 134,491 | 108,944 | |||||||||
Total current liabilities | 394,611 | 330,004 | |||||||||
NONCURRENT LIABILITIES: | |||||||||||
Long-term debt, net of discount, deferred financing costs and current portion | 1,275,385 | 1,277,246 | |||||||||
Other noncurrent liabilities | 88,303 | 75,470 | |||||||||
Total noncurrent liabilities | 1,363,688 | 1,352,716 | |||||||||
Total liabilities | 1,758,299 | 1,682,720 | |||||||||
STOCKHOLDERS’ EQUITY | 867,966 | 906,827 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,626,265 | $ | 2,589,547 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
NET REVENUE | $ | 740,848 | $ | 497,266 | $ | 1,446,288 | $ | 973,758 | |||||||||||||||
COST OF REVENUE | 574,528 | 395,876 | 1,121,939 | 774,174 | |||||||||||||||||||
GROSS PROFIT | 166,320 | 101,390 | 324,349 | 199,584 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||||||||||
Selling, general and administrative expenses | 124,918 | 99,245 | 254,198 | 182,032 | |||||||||||||||||||
Depreciation and amortization expense | 18,194 | 10,150 | 38,295 | 20,119 | |||||||||||||||||||
Total operating expenses | 143,112 | 109,395 | 292,493 | 202,151 | |||||||||||||||||||
OPERATING INCOME (LOSS) | 23,208 | (8,005) | 31,856 | (2,567) | |||||||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||||
Interest expense, net | (31,432) | (11,563) | (59,519) | (22,608) | |||||||||||||||||||
Other, net | 1,026 | 542 | 1,596 | 1,015 | |||||||||||||||||||
Total other expense | (30,406) | (11,021) | (57,923) | (21,593) | |||||||||||||||||||
LOSS BEFORE INCOME TAXES | (7,198) | (19,026) | (26,067) | (24,160) | |||||||||||||||||||
INCOME TAX EXPENSE (BENEFIT) | 470 | (5,423) | 1,511 | (6,845) | |||||||||||||||||||
NET LOSS | $ | (7,668) | $ | (13,603) | $ | (27,578) | $ | (17,315) | |||||||||||||||
Net loss per share, basic and diluted | $ | (0.04) | $ | (0.10) | $ | (0.16) | $ | (0.12) |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | (27,578) | $ | (17,315) | |||||||
Adjustments to reconcile net loss to net cash provided by operations: | |||||||||||
Depreciation and amortization expense | 41,813 | 21,591 | |||||||||
Other non-cash adjustments | 17,423 | (73) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | 4,194 | 26,050 | |||||||||
Inventories | (33,239) | 8,321 | |||||||||
Accounts payable | 36,422 | (18,692) | |||||||||
Other | 14,355 | 2,524 | |||||||||
Net cash provided by operating activities | 53,390 | 22,406 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisition of property and equipment | (9,269) | (8,502) | |||||||||
Other investing cash flows | 541 | 636 | |||||||||
Net cash used in investing activities | (8,728) | (7,866) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Other financing cash flows | 6,381 | (4,076) | |||||||||
Net cash provided by (used in) financing activities | 6,381 | (4,076) | |||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 51,043 | 10,464 | |||||||||
Cash and cash equivalents - beginning of the period | 67,056 | 36,391 | |||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 118,099 | $ | 46,855 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Consolidated net loss | $ | (7,668) | $ | (13,603) | $ | (27,578) | $ | (17,315) | |||||||||||||||
Interest expense, net | 31,432 | 11,563 | 59,519 | 22,608 | |||||||||||||||||||
Income tax expense (benefit) | 470 | (5,423) | 1,511 | (6,845) | |||||||||||||||||||
Depreciation and amortization expense | 19,969 | 10,842 | 41,813 | 21,591 | |||||||||||||||||||
Consolidated EBITDA | 44,203 | 3,379 | 75,265 | 20,039 | |||||||||||||||||||
EBITDA adjustments | |||||||||||||||||||||||
Accounting principle changes and non-cash charges | — | 2,723 | — | 4,258 | |||||||||||||||||||
Stock-based incentive compensation | 661 | 569 | 1,418 | 1,153 | |||||||||||||||||||
Restructuring, acquisition, integration and other | 9,759 | 16,989 | 18,119 | 17,566 | |||||||||||||||||||
Consolidated adjusted EBITDA | $ | 54,623 | $ | 23,660 | $ | 94,802 | $ | 43,016 |
-_P7YC
M8D%__GZ21&& ?W\%'V2!_H <_+A^=(MYY ]^5XFRRMM^3X@4L3Y^7(:TER]^
M@H6;?)-^OH2Z8.E_#X/T0P!_EH-X':* Y(/?^J-])9<(XDA]')0QR5A])9%Z
MK\Y]2X\>E=9]AHT->TY]UXL\7[1^-XF)0 O=9Y9+XVK5IS3
M''BHX)- !H>EZX1J "#'( >MS$G:\^;3Z^X:N37PFY.*A;4"JSS*8S0(6N
MUZ3.+[FJL*!%'+.H,9-G!LBE1H26 "#'( YA]V<',8T!MW2W/QN8!X'W3,
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MA9ZU#VIU'XILVLMN&\[&Q41O*5_$'+*K/1_'7//EQ]_-731@'5_
M5G7=:.Y_B';V4#%_SW@(-)J 67D'#UB!\GD\U(Q]47Q_P+)] !8-^)H.Z
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M/'6$2I@^(L"$,)6= =6#)X$]L)**!S/X_.#65SXXD.
MT!5HN:_4N]UJ9ZN*INMK^:
#J9-&46V"
M\I&*/U6"99!"*V^!^Y =$>6"'HP9 " ( CR"%O*&^@0F$V9^6<>F#X9T;
M8
DVI?]9JZ@#%B<)?>;#UD
MWI4Q5VIG&I+ 07%HNY"O*&!H%X_*!WQS6840MHY9?ZL.I05<8J=\DIQ>_J.^
M?U]A=J (:VYCYYR95JUF+)F/0-9GR9
(8G*%?^>$8DV!4V9JX.6 ""
M%H " ( 5F*G-))^3 RD>I(B0*>ANI%5-"Z?(Y"D)F>=+Y"9%B:<]HWD
M!6J8<(.I "!@( " ( M29A4UFRH_YCT5T#DC9F+V W?X9H<6-,:]YJ
MGV9&5RALKFDE02IN8FO/)^MNVFW=!KETHV[%LRI=SF1AHG%@FF:LD-1C-FCF
M?DMEKFL0:KIH#6TH5AYJ0&\N0#5K_'$&)QAL$G)>!F-U-7-!L4Y:L6\!H*I=
MLW!*CTU@@W&,?-9C)G+.:6YEK'0-5/MG_G5#/SYINW96)E%I97<*!A=UM7@B
MKW17Y7F!GMU;%GGIH70<%HV9A3+B)I&)=@%>5I3([. " ( CGQXYUBQ@2=Y
M4EP)
H
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MQ6'F25%LJ647-+-N!F?M&]=M@FF; " &WPF\1>$%UTC5Y@L6!D?=IC)V,U
M;4)E?F7F6X1GMVAW2))IMFKD-!=K VT!&V=J36X@ " '+3F@M:6F=9BYY=
M0VEF?$]?]6M<:\QB?FT\6CQDXF\)1W=F^W"\,RMH+7(N&KIGD7+/ " '>#
MF%)6_7$FB>Y:(G)?>JY= W.':GA?MG2=60AB176G1G5D<7:D,F%EA7=V&BME
M.W>V " 'N6EKA4!7KLB'5777M?>4E::GN]:1Y=/GP*6 )?ZGQ618YB*'RD
M,:UC&WSE&;!C1'SN " '\2E611@H2UASQ5 81D>"M8,8/Z:!5;)8."5PQ=
MXX,21-5@)(*Y,1I@](*!&4AAI8*A " ( E%%/:(YSAC]3!HU?=T-63XPK
M9S]96HKR5D)<*XG41"M>;HCF,*E?%(A2&/Q@38A) " ( DX%-N)@:A7M1
M;99$=HA4Q91)9I%7VY)259U:MY"30XQ<^H\M,"Q=>(Y\&+E?.8SM " (
MDO1,=Z&7A.U0-Y\$=?=3DYQ$9@=6JYF95259B)=)0RQ;QI6-+\E<$Y3[&%E>
M9I!V " ( D5AIK%-B@YYK3%
QYZQC#5J7)JCBG!95):2B,%(L))@AQ(XKXW^A6XI^HE'@\FL[:K]FO6<:J:6
ME]2+JJ))E.=ZM)X9DBQIL)GYCX-8S97RC/A(5)'%BE8X@HUQAZ4J!(C1A."L
M1*IBHS>;R:7]GU*+"Z&PFYEZ&IV$F AI(YEFE(585I51D05( I$PC6LX6HSP
MB:\J#8ANA=2KGJGOJUZ;1*6 IJB*CJ$MHAAYG9T G:]HLYCOF517_93FE.5'
MQ9"[D$TX/HR(BX