Option Care Health Announces Financial Results for the Second Quarter Ended June 30, 2023

About this update from Option Care Health, Inc.

BANNOCKBURN, Ill. , July 27, 2023 (GLOBE NEWSWIRE) -- Option Care Health, Inc. (the “Company” or “Option Care Health”) (Nasdaq: OPCH), the nation’s largest independent provider of home and alternate site infusion services, announced today financial results for the second quarter ended June 30, 2023 . Second Quarter 2023 Financial Results and Highlights Net revenue of $1,069.1 million , up 9.0% compared to $980.8 million in the second quarter of 2022 Gross profit of $250.8 million , or 23.5% of net revenue, up 15.6% compared to $216.9 million , or 22.1% of net revenue, in the second quarter of 2022 Net income of $114.4 million , or $0.64 basic earnings per share, up 237.2% compared to net income of $33.9 million , or $0.19 basic earnings per share, in the second quarter of 2022 Adjusted EBITDA of $110.1 million , up 29.2% compared to $85.2 million in the second quarter of 2022 Cash flow from operations of $169.5 million compared to $104.4 million in the second quarter of 2022 Cash and cash equivalents balance was $441.2 million at the end of the second quarter of 2023 Entered into and subsequently terminated the Merger Agreement with Amedisys, Inc. and received a payment of $106.0 million in cash on behalf of Amedisys John C. Rademacher , Chief Executive Officer, commented, “The Option Care Health team executed on another solid quarter of financial results. Our commitment to providing unparalleled care that produces superior clinical outcomes makes us confident in our continued growth trajectory as we head into the back half of the year.” Updated Full Year 2023 Financial Guidance For the full year 2023, Option Care Health expects to generate: Net Revenue of $4.2 billion to $4.3 billion Adjusted EBITDA of $415 million to $425 million Cash Flow from Operations of at least $350 million , inclusive of Amedisys termination fee, net of expenses Additionally, the Company continues to anticipate an effective tax rate of 27% to 29% and net interest expense of approximately $55.0 million to $59.0 million . Conference Call Option Care Health will host a conference call to discuss its second quarter 2023 financial results later today at 8:30 a.m. EDT . The conference call can be accessed via a live audio webcast that will be available online at https://investors.optioncarehealth.com . A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. About Option Care Health Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 7,500 team members including more than 4,500 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and team members. To learn more, please visit our website at OptionCareHealth.com . Investor Contacts Mike Shapiro Bob East , Asher Dewhurst , Jordan Kohnstam Chief Financial Officer Westwicke T: (312) 940-2538 T: (413) 213-0500 [email protected] [email protected] Forward-Looking Statements - Safe Harbor This press release 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,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we may make regarding future revenues, future earnings, regulatory developments, market developments, new products and growth strategies, integration activities and the effects of any of the foregoing on our future results of operations or financial conditions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: changes in laws and regulations applicable to our business model; changes in market conditions and receptivity to our services and offerings; pending and future litigation; potential liability for claims not covered by insurance; and loss of relationships with managed care organizations and other non-governmental third party payers. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our periodic reports as filed with the SEC . Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Note Regarding Use of Non-GAAP Financial Measures In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities ora measure of the Company’s liquidity. In addition, the Company's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies. Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, and restructuring, acquisition, integration and other. As part of restructuring, acquisition, integration and other, the Company may incur significant charges such as the write down of certain long‑lived assets, temporary redundant expenses, professional fees, potential retention and severance costs and potential accelerated payments or termination costs for certain of its contractual obligations. Management believes that Adjusted EBITDA provides useful supplemental information regarding the performance of Option Care Health’s business operations and facilitates comparisons to the Company’s historical operating results. We have not reconciled Adjusted EBITDA guidance to net income as management believes creation of this reconciliation would not be practicable due to the uncertainty regarding, and potential variability of, material reconciling items. For a full reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, please see below. Schedule 1 OPTION CARE HEALTH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)(UNAUDITED) June 30, 2023 December 31, 2022 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 441,166 $ 294,186 Accounts receivable, net 396,501 377,542 Inventories 262,924 224,281 Prepaid expenses and other current assets 97,629 98,330 Total current assets 1,198,220 994,339 NONCURRENT ASSETS: Property and equipment, net 106,777 108,321 Intangible assets, net 21,645 22,371 Referral sources, net 330,948 341,744 Goodwill 1,540,567 1,533,424 Other noncurrent assets 122,741 112,737 Total noncurrent assets 2,122,678 2,118,597 TOTAL ASSETS $ 3,320,898 $ 3,112,936 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 467,666 $ 378,763 Other current liabilities 200,801 186,588 Total current liabilities 668,467 565,351 NONCURRENT LIABILITIES: Long-term debt, net of discount, deferred financing costs and current portion 1,057,391 1,058,204 Other noncurrent liabilities 119,657 103,278 Total noncurrent liabilities 1,177,048 1,161,482 Total liabilities 1,845,515 1,726,833 STOCKHOLDERS’ EQUITY 1,475,383 1,386,103 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 3,320,898 $ 3,112,936 Schedule 2 OPTION CARE HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)(UNAUDITED) Three Months Ended June 30 , Six Months Ended June 30 , 2023 2022 2023 2022 NET REVENUE $ 1,069,072 $ 980,820 $ 2,084,920 $ 1,896,604 COST OF REVENUE 818,243 763,920 1,605,086 1,478,768 GROSS PROFIT 250,829 216,900 479,834 417,836 OPERATING COSTS AND EXPENSES: Selling, general and administrative expenses 153,564 141,787 301,430 275,756 Depreciation and amortization expense 14,898 16,037 29,412 30,759 Total operating expenses 168,462 157,824 330,842 306,515 OPERATING INCOME 82,367 59,076 148,992 111,321 OTHER INCOME (EXPENSE): Interest expense, net (13,196 ) (12,765 ) (27,030 ) (25,011 ) Other, net 86,332 1,327 87,770 2,596 Total other income (expense) 73,136 (11,438 ) 60,740 (22,415 ) INCOME BEFORE INCOME TAXES 155,503 47,638 209,732 88,906 INCOME TAX EXPENSE 41,100 13,709 56,121 24,702 NET INCOME $ 114,403 $ 33,929 $ 153,611 $ 64,204 Earnings per share, basic $ 0.64 $ 0.19 $ 0.85 $ 0.36 Earnings per share, diluted $ 0.63 $ 0.19 $ 0.84 $ 0.35 Weighted average common shares outstanding, basic 179,807 180,621 180,531 180,293 Weighted average common shares outstanding, diluted 181,241 181,618 181,931 181,176 Schedule 3 OPTION CARE HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)(UNAUDITED) Six Months Ended June 30 , 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 153,611 $ 64,204 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization expense 30,801 33,249 Other non-cash adjustments 38,498 44,371 Changes in operating assets and liabilities: Accounts receivable, net (18,619 ) (22,950 ) Inventories (38,643 ) (48,671 ) Accounts payable 88,896 100,924 Other 4,744 (34,173 ) Net cash provided by operating activities 259,288 136,954 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment (13,554 ) (10,055 ) Business acquisitions, net of cash acquired (12,855 ) (59,897 ) Net cash used in investing activities (26,409 ) (69,952 ) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of company stock (75,000 ) — Proceeds from warrant exercises — 20,098 Other financing cash flows (10,899 ) (2,477 ) Net cash (used in) provided by financing activities (85,899 ) 17,621 NET INCREASE IN CASH AND CASH EQUIVALENTS 146,980 84,623 Cash and cash equivalents - beginning of the period 294,186 119,423 CASH AND CASH EQUIVALENTS - END OF PERIOD $ 441,166 $ 204,046 Schedule 4 OPTION CARE HEALTH, INC. QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES (IN THOUSANDS)(UNAUDITED) Three Months Ended June 30 , Six Months Ended June 30 , 2023 2022 2023 2022 Net income $ 114,403 $ 33,929 $ 153,611 $ 64,204 Interest expense, net 13,196 12,765 27,030 25,011 Income tax expense 41,100 13,709 56,121 24,702 Depreciation and amortization expense 15,576 17,270 30,801 33,249 EBITDA 184,275 77,673 267,563 147,166 EBITDA adjustments Stock-based incentive compensation 7,685 4,398 13,673 8,576 Restructuring, acquisition, integration and other (1) (81,910 ) 3,105 (77,412 ) 7,216 Adjusted EBITDA $ 110,050 $ 85,176 $ 203,824 $ 162,958 (1) Inclusive of Amedisys merger termination fee, net of merger-related expenses Source: Option Care Health, Inc.

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