Option Care Health (OPCH) Bank of America Securities 2024 Leveraged Finance Conference summary

Business and Market Position

• Largest independent provider of home and alternate site infusion therapy in the U.S., licensed in all 50 states, serving over 270,000 patients annually through 170+ locations and 90+ pharmacies.

• Holds about a quarter of the $20 billion home and alternate site infusion market and is the largest national provider in a fragmented $100B U.S. infusion market.

• Diverse portfolio includes 50+ limited distribution therapies, with a payer mix that minimizes direct government reimbursement risk and no single commercial payer exceeding 15% of revenue.

• 88% of revenue comes from commercial payers, with limited direct government reimbursement exposure.

• Recognized for workplace excellence and diversity, including Gallup Exceptional Workplace and DiversityInc honors.

Financial Performance and Capital Structure

• Net revenue grew from $2.3B in 2019 to $4.3B in 2023, with a 12% three-year CAGR; adjusted EBITDA increased from $131M to $425M, a 24% CAGR.

• Achieved a 12% revenue CAGR over five years, with EBITDA growth outpacing revenue.

• Ended Q3 2024 with a net leverage ratio of 1.5x, the lowest since the 2019 merger.

• Over $400M in shares repurchased since January 2023 and ~$200M in M&A capital deployed post-merger.

• Expects over $300 million in operating cash flow for 2024, with annual CapEx of $30–$40 million.

Operational Highlights and Strategic Initiatives

• Q3 2024 net revenue reached $1.3B, up 17% year-over-year; adjusted EBITDA was $115.6M, up 5.3%.

• Maintains over 93% patient satisfaction, with technology-enabled engagement and expanded rural reach.

• Center expansion has doubled since COVID, with over 100 centers opened and ongoing additions.

• Consistent execution in strategic M&A, expanding clinical capabilities and geographic reach.

• Focused investments in infusion suite expansion, M&A, and technology to drive operational excellence.