Option Care's 2002 revenue jumps 48%
March 3, 2003
BUFFALO GROVE, Ill. - Home infusion giant Option Care saw its forth quarter revenue jump 40% over the same period last year, rising from $65.2 million to $91.4 million. Same store sales increased 19% from the prior year period.
For the year ended December 31, 2002, revenue increased 48% to $320.5 million compared to $217.1 million for the year ended December 31, 2001.
Same store sales increased 25% from the prior year period. Net income increased 52% to $15.1 million.
Raj Rai, Option Care's president and chief executive officer commented, "We are very pleased with our results for the fourth quarter and the full year of
2002. Our results reflect the execution of our plan in each of our businesses, home infusion and specialty pharmacy services. We have delivered strong organic growth of 25% through focused sales efforts and expanded managed care and manufacturer relationships. In addition, the acquisitions completed in 2002 further expand the Option Care footprint and leverage our infrastructure."
Rai continued, "We will continue to pursue similar strategic initiatives in 2003 and in addition, focus on strengthening our infrastructure and upgrading our information systems. Our existing system is robust and will be further enhanced by moving to a browser-based platform. We are currently operating our new platform in two locations and expect to continue our rollout during the second quarter. At that point we will re-activate our acquisition program. We are very excited about the acquisition opportunities and are evaluating a number of them."
Commenting on the financial aspects of the quarter Paul Mastrapa, chief financial officer of Option Care, stated, "We are very pleased with the record revenue achieved in the fourth quarter. Cash flow from operations for the quarter continued to be strong at $4.1 million, equaling our net earnings for the period before the charge. Days sales outstanding were 75 days at the end of the quarter, a continued improvement from the 79 days for the prior quarter ended September 30, 2002, and 80 days for the prior year ended December 31, 2001."
Mastrapa added, "Gross profit within our service lines continues to remain stable. For home infusion pharmacy services, gross profit was 43.6% for the
fourth quarter compared to 42.1% during the previous quarter ended September 30, 2002. Gross profit for specialty pharmacy services was 19.4% during the fourth quarter, up from 19.1% during the third quarter of this year."
Mastrapa added, "As previously announced, our revenue guidance for 2003 is $365 to $375 million or approximately 15% to 20% growth. The impact of any future acquisitions will be incremental to our guidance."
On a product line basis, home infusion pharmacy and related services and specialty pharmacy revenue increased 13% and 70% respectively from the prior year quarter as a result of increased penetration of managed care relationships and acquisitions completed since 2001. Same store sales increase 19% for the current quarter.
Net cash flow provided by operations was $4.1 million for the quarter ended December 31, 2002 primarily attributable to improved cash collections. Net cash flow used in investing activities for the fourth quarter was $2.5 million. During the fourth quarter, Option Care invested $0.6 million in acquisitions and $1.9 million for equipment purchases including infrastructure improvements such as office furniture and equipment and leasehold improvements, revenue-producing medical equipment, and on new information systems development.
Total capital purchases for 2002 were $7.3 million. Option Care ended the fourth quarter with $7.1 million borrowed on its $60 million credit facility, a reduction of $1.4 million from the prior quarter ended September 30, 2002.