SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
March 31, 2004
Commission file number 0-19878
OPTION CARE, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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36-3791193 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No.) |
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485 Half Day Road, Suite 300 |
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60089 |
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(Address of principal executive office) |
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(zip code) |
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(847) 465-2100 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Issued and
Outstanding |
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Common Stock - .01 par value |
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21,293,317 |
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INDEX
OPTION CARE, INC. AND SUBSIDIARIES
2
Item 1. Financial Statements
Option Care, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
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March 31, 2004 |
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December 31, 2003 |
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(Unaudited) |
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(Note 1) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
6,649 |
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$ |
3,961 |
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Accounts receivable, net |
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65,721 |
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62,190 |
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Inventory |
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8,248 |
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11,522 |
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Deferred income tax benefit |
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3,976 |
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4,442 |
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Other current assets |
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4,218 |
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5,279 |
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Total current assets |
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88,812 |
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87,394 |
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Equipment and other fixed assets, net |
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12,176 |
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12,145 |
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Goodwill, net |
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65,661 |
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64,970 |
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Other assets |
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1,874 |
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2,025 |
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Total assets |
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$ |
168,523 |
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$ |
166,534 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Trade accounts payable |
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$ |
18,523 |
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$ |
19,940 |
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Current portion of long-term debt |
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112 |
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424 |
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Other current liabilities |
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9,054 |
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10,253 |
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Total current liabilities |
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27,689 |
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30,617 |
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Long-term debt, less current portion |
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29 |
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82 |
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Long-term deferred income tax liability |
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5,983 |
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5,677 |
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Other liabilities |
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702 |
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711 |
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Minority interest |
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468 |
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427 |
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Total liabilities |
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34,871 |
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37,514 |
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Stockholders’ equity: |
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Common stock, $.01 par value per share, 60,000 shares authorized, 21,232 and 20,942 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively |
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212 |
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209 |
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Common stock to be issued, 27 and 144 shares at March 31, 2004 and December 31, 2003, respectively |
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276 |
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834 |
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Additional paid-in capital |
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106,019 |
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104,173 |
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Retained earnings |
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28,250 |
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23,965 |
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Less treasury stock, at cost, common shares 101 and 15, respectively |
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(1,105 |
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(161 |
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Total stockholders’ equity |
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133,652 |
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129,020 |
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Total liabilities and stockholders’ equity |
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$ |
168,523 |
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$ |
166,534 |
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See notes to condensed consolidated financial statements
3
Option Care, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)
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Three months ended March 31, |
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2004 |
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2003 |
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Revenue: |
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Specialty pharmacy services |
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$ |
64,932 |
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$ |
57,034 |
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Infusion and related healthcare services |
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34,946 |
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33,073 |
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Other |
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3,271 |
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2,455 |
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Total revenue |
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103,149 |
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92,562 |
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Cost of revenue: |
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Cost of goods sold |
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63,808 |
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54,824 |
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Cost of services provided |
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10,644 |
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10,458 |
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Total cost of revenue |
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74,452 |
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65,282 |
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Gross profit |
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28,697 |
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27,280 |
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Selling, general and administrative expenses |
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19,249 |
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18,030 |
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Provision for doubtful accounts |
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1,559 |
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1,878 |
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Depreciation and amortization |
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