Option Care Health, Inc. · NASDAQ:OPCH
Option Care Health — Investor Presentation (December 2019)
14 slides from Option Care Health's investor presentation, Dec 3, 2019
Slide 1: Q4 2019 Investor Presentation
Q4 2019 Investor Presentation NASDAQ: BIOS
Slide 2: Disclaimer
Disclaimer This communication may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “
Slide 3: Option Care Health at a Glance
Option Care Health at a Glance • Nation’s largest independent provider of home and 46 alternate site infusion services states • Clinical leadership and technology-enabled patient- 96% centered model of U.S. population covered National Footprint 3Q’19 Results (in millions) $2.7bn+ $616 combined 2018
Slide 4: Leading Position in a Large and Growing Market
Leading Position in a Large and Growing Market1 U.S. Competitive Landscape – Home U.S. Infusion Market 1% Includes: hospitals, $100 B physician outpatient 6% / offices, SNFs and home 10% infusion $12 B U.S. Home Infusion Market 45% $12B 17% / Lowest-cost setting; growing penetration of overall marke
Slide 5: Investment Highlights
Investment Highlights ✓ Only independent national provider in network with all national payers ✓ Right side of healthcare – independent, low cost care setting, patient centric ✓ Large, growing and highly fragmented market ✓ Significant merger-related cost synergies expected ✓ Improved free cash flow
Slide 6: On the Right Side of Healthcare Trends
On the Right Side of Healthcare Trends The Home is the Disruptive Service Model within the Infusion Market Remicade infusion example IG infusion example $10,000 $9,800 ~44% cost savings ~77% cost savings $5,500 $2,300 The right place, the right team, and the right time. Outpatient Hospital Outpatien
Slide 7: Strength in Diversity
Strength in Diversity Therapy Revenue Split Payer Mix1 ~13% ~40% ~60% ~87% Acute Commercial Chronic Government • No therapy category represents more • No payer more than 15% of revenue than 20% of revenue • Low direct government reimbursement risk • Broad portfolio of chronic and acute • Productive
Slide 8: Acute vs Chronic Therapy Portfolios
Acute vs Chronic Therapy Portfolios Acute Chronic ~40% % of Net Revenue ~60% 50-70% Product Margin 10-25% Shorter, typically Average length of Longer, typically months 1-12 weeks treatment or for life Anti-infectives, Immunoglobulin, nutritional support, Therapies inflammatory, other inotropic thera
Slide 9: Roadmap for Growth
Roadmap for Growth Realize synergy opportunities • Execution of defined short and longer-term integration synergies • Utilize improved capital structure and liquidity position to create investment plan Optimize and expand offerings • Alignment of acute and chronic sales activity against top market o
Slide 10: Synergy Capture Roadmap
Synergy Capture Roadmap Network Savings $20-$25M 18-24 months to realization Optimize assets to best serve the market SG&A Optimization $60M+ 12-18 months to realization $35-$40M Streamline corporate and administrative Annualized functions Net Savings1 Procurement Synergies 9 -12 months to realizati
Slide 11: Proven, Experienced Leadership Team
Proven, Experienced Leadership Team John Rademacher Mike Shapiro Harriet Booker Chris Hartman Rich Denness Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Growth Officer Chief Strategy Officer o Joined Option Care in o Joined Option Care in o Joined Option Care o Joined
Slide 12: Q3 2019 Financial Highlights
Q3 2019 Financial Highlights $ in millions Net Revenue Adjusted EBITDA Quarterly Highlights • Revenue of $616M, up 24.7% on a $616 $35 reported basis; up 2.3% on a comparable basis $494 • Gross margin of 22.4% increased 50 $26 bps on a reported basis • Adj. EBITDA of $35M, up 32.1% on a reported bas
Slide 13: Improved Capital Structure
Improved Capital Structure $ in millions Q3’19 Capital Structure Key Highlights Pro Forma Capitalization • Simple capital structure First Lien Term Loan $925 Second Lien 400 • $150mm ABL Revolver - Strong liquidity Total Debt $1,325 Cash 53 • Covenant-lite Net Debt $1,272 • Path to deleveraging Leve
Slide 14: Contact
Mike Shapiro Bob East, Asher Dewhurst, Jordan Kohnstam Chief Financial Officer Westwicke (312) 940-2538 (413) 213-0500 mike.shapiro@optioncare.com optioncarehealth@westwicke.com ©2019 Option Care Health, Inc. All rights reserved. 19OCH00004 14
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