(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 | ||||||
Exhibit No. | Description | |||||||
Option Care Health, Inc. | |||||||||||
Date: | March 11, 2021 | 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 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 99,265 | $ | 67,056 | |||||||
Accounts receivable, net | 328,340 | 324,416 | |||||||||
Inventories | 158,601 | 115,876 | |||||||||
Prepaid expenses and other current assets | 70,806 | 51,306 | |||||||||
Total current assets | 657,012 | 558,654 | |||||||||
NONCURRENT ASSETS: | |||||||||||
Property and equipment, net | 121,149 | 133,198 | |||||||||
Intangible assets, net | 351,052 | 385,910 | |||||||||
Goodwill | 1,428,610 | 1,425,542 | |||||||||
Other noncurrent assets | 89,616 | 86,243 | |||||||||
Total noncurrent assets | 1,990,427 | 2,030,893 | |||||||||
TOTAL ASSETS | $ | 2,647,439 | $ | 2,589,547 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 282,913 | $ | 221,060 | |||||||
Other current liabilities | 151,110 | 108,944 | |||||||||
Total current liabilities | 434,023 | 330,004 | |||||||||
NONCURRENT LIABILITIES: | |||||||||||
Long-term debt, net of discount, deferred financing costs and current portion | 1,115,103 | 1,277,246 | |||||||||
Other noncurrent liabilities | 82,589 | 75,470 | |||||||||
Total noncurrent liabilities | 1,197,692 | 1,352,716 | |||||||||
Total liabilities | 1,631,715 | 1,682,720 | |||||||||
STOCKHOLDERS' EQUITY | 1,015,724 | 906,827 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,647,439 | $ | 2,589,547 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
NET REVENUE | $ | 804,713 | $ | 720,779 | $ | 3,032,610 | $ | 2,310,417 | |||||||||||||||
COST OF REVENUE | 620,951 | 545,137 | 2,350,346 | 1,797,418 | |||||||||||||||||||
GROSS PROFIT | 183,762 | 175,642 | 682,264 | 512,999 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||||||||||
Selling, general and administrative expenses | 123,001 | 144,121 | 500,199 | 459,628 | |||||||||||||||||||
Depreciation and amortization expense | 16,418 | 17,548 | 71,310 | 53,690 | |||||||||||||||||||
Total operating expenses | 139,419 | 161,669 | 571,509 | 513,318 | |||||||||||||||||||
OPERATING INCOME (LOSS) | 44,343 | 13,973 | 110,755 | (319) | |||||||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||||
Interest expense, net | (23,668) | (29,607) | (107,770) | (73,724) | |||||||||||||||||||
Other, net | (2,270) | 818 | (8,228) | (4,151) | |||||||||||||||||||
Total other expense | (25,938) | (28,789) | (115,998) | (77,875) | |||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 18,405 | (14,816) | (5,243) | (78,194) | |||||||||||||||||||
INCOME TAX EXPENSE (BENEFIT) | 566 | 995 | 2,833 | (2,274) | |||||||||||||||||||
NET INCOME (LOSS) | $ | 17,839 | $ | (15,811) | $ | (8,076) | $ | (75,920) | |||||||||||||||
Earnings (loss) per share, basic and diluted | $ | 0.10 | $ | (0.09) | $ | (0.04) | $ | (0.49) |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | (8,076) | (75,920) | |||||||||
Adjustments to reconcile net loss to net cash provided by operations: | |||||||||||
Depreciation and amortization expense | 77,896 | 57,869 | |||||||||
Paid-in-kind interest capitalized as principal | 7,525 | 12,256 | |||||||||
Other non-cash adjustments | 42,917 | 29,236 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (3,924) | 82,285 | |||||||||
Inventories | (42,725) | (12,853) | |||||||||
Accounts payable | 59,215 | (30,856) | |||||||||
Other | (5,436) | (22,550) | |||||||||
Net cash provided by operating activities | 127,392 | 39,467 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisition of property and equipment | (26,875) | (28,292) | |||||||||
Other investing cash flows | 541 | 636 | |||||||||
Business acquisitions, net of cash acquired | — | (700,170) | |||||||||
Net cash used in investing activities | (26,334) | (727,826) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from debt | — | 981,050 | |||||||||
Retirement of debt obligations | (174,000) | (226,738) | |||||||||
Net proceeds from issuance of common stock | 118,934 | — | |||||||||
Deferred financing costs | (149) | (30,022) | |||||||||
Other financing cash flows | (13,634) | (5,266) | |||||||||
Net cash (used in) provided by financing activities | (68,849) | 719,024 | |||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 32,209 | 30,665 | |||||||||
Cash and cash equivalents - beginning of the period | 67,056 | 36,391 | |||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | 99,265 | 67,056 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Consolidated net income (loss) | $ | 17,839 | $ | (15,811) | $ | (8,076) | $ | (75,920) | |||||||||||||||
Interest expense, net | 23,668 | 29,607 | 107,770 | 73,724 | |||||||||||||||||||
Income tax expense (benefit) | 566 | 995 | 2,833 | (2,274) | |||||||||||||||||||
Depreciation and amortization expense | 17,842 | 18,872 | 77,896 | 57,869 | |||||||||||||||||||
Consolidated EBITDA | 59,915 | 33,663 | 180,423 | 53,399 | |||||||||||||||||||
EBITDA adjustments | |||||||||||||||||||||||
Accounting principle changes and non-cash charges | — | — | — | 8,535 | |||||||||||||||||||
Stock-based incentive compensation | 332 | 272 | 2,920 | 4,170 | |||||||||||||||||||
Loss on extinguishment of debt | 3,196 | — | 11,545 | 5,469 | |||||||||||||||||||
Restructuring, acquisition, integration and other | 4,208 | 19,027 | 26,788 | 59,178 | |||||||||||||||||||
Consolidated adjusted EBITDA | $ | 67,651 | $ | 52,962 | $ | 221,676 | $ | 130,751 |
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