ELMSFORD, N.Y., March 2, 2015 /PRNewswire/
-- BioScrip®, Inc. (NASDAQ: BIOS) (the "Company")
today announced 2014 fourth quarter financial results. Fourth
quarter revenue from continuing operations was $253.7 million and the net loss from continuing
operations was $61.9 million, or
$0.90 per basic and diluted share.
Non-GAAP adjusted loss from continuing operations per basic and
diluted share was $0.69.
Fourth Quarter Highlights
- Total revenue increased by $28.2
million, or 12.5%, as compared to the prior year period.
Revenue from the Infusion Services segment increased to
$239.5 million, reflecting 13.0%
growth year-over-year, driven by organic revenue growth;
- Gross profit from continuing operations was $65.6 million, or 25.9% of revenue, as compared
to $68.2 million, or 30.2% of
revenue, in the prior year period;
- Adjusted EBITDA from continuing operations was a loss of
$30.6 million, primarily reflecting
incremental allowance for bad debt expense.
- The Company booked an incremental $31.7
million charge to bad debt, an increase of $29.2 million compared to the prior year period,
bringing the total bad debt expense in 2014 to $79.6 million. The Company believes this
charge appropriately reserves older account receivables;
- The Company implemented an annualized $15 million in previously identified cost savings
projects and identified incremental gross savings of $9 million expected to be realized in 2015, for a
total of $24 million of expected
gross cost savings in the year. Net of investments and expenses to
support double digit organic growth and continued improvement of
cash collections, the Company anticipates realizing a total of
$10 million in net cost savings in
2015;
- Cash flow from continuing operations was positive for the
second consecutive sequential quarter at $2.0 million; and,
- As a result of the continued focus on cash collections, the
Company has increased monthly average accounts receivable
collections from $70.0 million in the
first quarter of 2014 to $83.0
million in the fourth quarter of 2014.
"Fourth quarter and full year 2014 results reflect double digit
organic revenue growth in our infusion business. We have taken
a number of actions to align our cost structure and focus our
resources in support of core infusion therapies, which we believe
will continue to drive profitable growth and shareholder value. In
addition, following an in-depth review of our bad debt reserve, we
recorded a charge this quarter that we feel appropriately reserves
older account receivables," said Rick
Smith, President and Chief Executive Officer of
BioScrip.
"As we head into 2015, we expect to continue to focus on double
digit organic growth, operating cash flow generation and cost
savings initiatives. We have confidence that our platform and our
solid payor and hospital relationships will continue to drive
profitable growth," concluded Mr. Smith.
Results of Operations
Fourth Quarter 2014 versus Fourth Quarter 2013
Revenue
from continuing operations for the fourth quarter of 2014 totaled
$253.7 million, compared to
$225.5 million for the same period a
year ago, an increase of $28.2
million or 12.5%. Infusion Services segment revenue was
$239.5 million in the fourth quarter
of 2014 as compared to $212.0 million
for the same period in 2013. The 13.0% increase was driven
primarily by continued strong organic growth.
Consolidated gross profit for the fourth quarter of 2014 was
$65.6 million, or 25.9% of revenue,
compared to $68.2 million, or 30.2%
of revenue, for the fourth quarter of 2013. The decrease in gross
profit dollars and margin percentage was primarily the result of a
decrease in the PBM Services segment and the impact of therapy mix
on the Infusion Services segment.
During the fourth quarter of 2014, on a consolidated basis,
Adjusted EBITDA from continuing operations declined by $43.9 million to a loss of $30.6 million, compared to $13.3 million in the prior year period. Infusion
Services segment Adjusted EBITDA was a loss of $18.3 million in the fourth quarter of 2014.
PBM Services segment revenue was $14.2
million for the fourth quarter of 2014, compared to
$13.5 million for the prior year
period. PBM Services segment Adjusted EBITDA was $1.6 million, or 11.2% of segment revenue, for
the fourth quarter of 2014 compared to $1.7
million, or 12.7% of segment revenue, in the prior year
quarter.
Interest expense in the fourth quarter of 2014 was $9.3 million compared to $8.0 million in the prior year period.
Income tax expense for continuing operations in the fourth
quarter of 2014 was $2.9 million
compared to an income tax expense of $2.6
million in the prior year period.
Net loss from continuing operations for the fourth quarter of
2014 was $61.9 million, or a loss of
$0.90 per basic and diluted share,
compared to a net loss of $15.6
million, or $0.23 per basic
and diluted share, in the prior year period.
Twelve Months Ended 2014 versus Twelve Months Ended
2013
Revenue from continuing operations for the twelve
months ended December 31, 2014
totaled $984.1 million, compared to
$769.5 million for the same period a
year ago. The 27.9% increase was driven primarily by organic growth
in infusion therapies. Infusion Services segment revenue was
$922.7 million for the twelve months
ended December 31, 2014, compared to
$696.9 million for the same period in
2013, a 32.4% increase.
Consolidated gross profit for the twelve months ended
December 31, 2014, was $261.1 million, or 26.5% of revenue, compared to
$243.6 million, or 31.7% of revenue,
in the prior year. The net increase in gross profit was primarily
due to organic growth. Consolidated gross profit margin percentage
was primarily impacted by the PBM Services segment and the impact
of therapy mix on the Infusion Services segment.
PBM Services segment revenue for the twelve months ended
December 31, 2014 was $61.4 million, compared to $72.6 million for the prior year period.
For the twelve months ended December 31,
2014, on a consolidated basis, Adjusted EBITDA from
continuing operations declined by $68.8
million to a loss of $23.0
million, compared to $45.7
million in the prior year period. Infusion Services segment
Adjusted EBITDA was $6.5 million, or
0.7% of segment revenue, compared to $60.7
million, or 8.7% of segment revenue, in the prior year. On a
pro-forma basis, Infusion Services segment Adjusted EBITDA was
$62.8 million, compared to
$60.7 million, in the prior year
period.
On a pro-forma basis, consolidated Adjusted EBITDA from
continuing operations was $39.3
million, which adjusts for the impact of non-recurring items
that primarily include $56.3 million
in Infusion Services pro-forma adjustments and $5.8 million of one-time accounting fees incurred
during the fourth quarter of 2014.
Interest expense for the twelve months ended December 31, 2014 was $38.5 million compared to the $28.2 million in the prior year.
Income tax expense from continuing operations for the twelve
months ended December 31, 2014 was
$11.4 million, compared to an income
tax expense of $2.5 million in
2013.
The net loss from continuing operations, net of taxes, for the
twelve months ended December 31, 2014
was $143.4 million, or $2.09 per basic and diluted share, compared to a
net loss of $57.0 million, or
$0.89 per basic and diluted share, in
the prior year.
Liquidity and Capital Resources
For the twelve months
ended December 31, 2014, BioScrip
used $24.6 million in net cash from
continuing operating activities, compared to cash used of
$46.0 million during the twelve
months of 2013, a decrease of $21.4
million. The Company achieved positive cash flow from
continuing operations during the last two quarters of 2014. As of
December 31, 2014, the Company has
$740,000 in cash and $423.8 million of outstanding debt. In addition,
the Company had availability of $70.0
million on its $75.0 million
revolving credit facility.
Conference Call and Presentation
BioScrip will host a conference call and live webcast to discuss
its fourth quarter 2014 financial results on March 2, 2015 at 8:30 a.m.
Eastern Time. Interested parties may participate by dialing
800-771-6917 (US), or 212-231-2919 (International) or accessing a
link on the Company's website at www.bioscrip.com. The Company is
also providing supplemental slides that will be posted prior to the
conference call and will be accessible through the "Investor
Relations" section of the BioScrip website at www.bioscrip.com.
A replay of the conference call will be available for two weeks
after the call's completion by dialing 800-633-8284 (US) or
402-977-9140 (International) and entering conference call ID number
21762174. An audio webcast and archive will also be available for
30 days under the "Investor Relations" section of the Company's
website.
About BioScrip, Inc.
BioScrip, Inc. is a leading national provider of infusion and
home care management solutions. BioScrip partners with physicians,
hospital systems, skilled nursing facilities, healthcare payors,
and pharmaceutical manufacturers to provide patients access to
post-acute care services. BioScrip operates with a commitment to
bring customer-focused pharmacy and related healthcare infusion
therapy services into the home or alternate-site setting. By
collaborating with the full spectrum of healthcare professionals
and the patient, BioScrip provides cost-effective care that is
driven by clinical excellence, customer service, and values that
promote positive outcomes and an enhanced quality of life for those
it serves. BioScrip provides its infusion services from over 70
locations across 29 states.
Forward-Looking Statements – Safe Harbor This press
release includes statements that may constitute "forward-looking
statements," including projections of certain measures of the
Company's results of operations, projections of certain charges and
expenses, and other statements regarding the Company's goals,
regulatory approvals and strategy. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. You can identify these statements by
the fact that they do not relate strictly to historical or current
facts. In some cases, forward-looking statements can be identified
by words such as "may," "should," "could," "anticipate,"
"estimate," "expect," "project," "outlook," "aim," "intend,"
"plan," "believe," "predict," "potential," "continue" or comparable
terms. Because such statements inherently involve risks and
uncertainties, actual future results may differ materially from
those expressed or implied by such forward-looking statements.
Investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those in the forward-looking statements as a result of various
factors. Important factors that could cause or contribute to such
differences include but are not limited to risks associated with:
the Company's ability to integrate any acquisitions; the Company's
ability to grow its Infusion Services segment organically or
through acquisitions and obtain financing in connection therewith;
its ability to reduce operating costs while sustaining growth;
reductions in federal, state and commercial reimbursement for the
Company's products and services; increased government regulation
related to the health care and insurance industries; as well as the
risks described in the Company's periodic filings with the
Securities and Exchange Commission. The Company does not undertake
any duty to update these forward-looking statements after the date
hereof, even though the Company's situation may change in the
future. All of the forward-looking statements herein are qualified
by these cautionary statements.
Reconciliation to Non-GAAP Financial Measures
In addition to reporting all financial information required in
accordance with generally accepted accounting principles (GAAP),
the Company is also reporting EBITDA, Adjusted EBITDA (including
pro-forma Adjusted EBITDA), and Adjusted EPS, which are non-GAAP
financial measures. EBITDA, Adjusted EBITDA and Adjusted EPS are
not measurements 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 or a measure of our liquidity. In
addition, the Company's definitions of EBITDA, Adjusted EBITDA and
Adjusted EPS may not be comparable to similarly titled non-GAAP
financial measures reported by other companies. EBITDA represents
net income before net interest expense, income tax expense,
depreciation and amortization. Adjusted EBITDA, as defined by the
Company, represents net income before net interest expense, loss on
extinguishment of debt, income tax expense, depreciation and
amortization, stock-based compensation expense, acquisition and
integration expenses, restructuring-related expenses and
investments in start-up operations. As part of restructuring, the
Company may incur significant charges such as the write down of
certain long−lived assets, temporary redundant expenses, retraining
expenses, potential cash bonus payments and potential accelerated
payments or terminated costs for certain of its contractual
obligations. Adjusted EPS, as defined by the Company, represents
earnings per basic and diluted share, excluding the same elements
in calculating Adjusted EBITDA as well as the impact of
acquisition-related intangible amortization. Management believes
that these non-GAAP financial measures provide useful supplemental
information regarding the performance of our business operations
and facilitates comparisons to our historical operating results.
For a full reconciliation of EBITDA, Adjusted EBITDA and Adjusted
EPS to the most comparable GAAP financial measures, please see the
attachments to this earnings release.
|
Schedule
1
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in thousands, except
for share amounts)
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
740
|
|
$
1,001
|
|
Receivables, less
allowance for doubtful accounts of $66,500 and $17,836 at
December 31, 2014 and December 31, 2013, respectively
|
140,810
|
|
172,188
|
|
Inventory
|
37,215
|
|
34,341
|
|
Prepaid expenses and
other current assets
|
9,450
|
|
14,110
|
|
Current assets of
discontinued operations
|
-
|
|
15,316
|
|
Total current
assets
|
188,215
|
|
236,956
|
|
Property and
equipment, net
|
38,171
|
|
41,182
|
|
Goodwill
|
573,323
|
|
571,337
|
|
Intangible assets,
net
|
10,269
|
|
16,824
|
|
Deferred financing
costs
|
13,463
|
|
17,184
|
|
Other non-current
assets
|
1,272
|
|
3,733
|
|
Non-current assets of
discontinued operations
|
-
|
|
49,642
|
|
Total
assets
|
$
824,713
|
|
$
936,858
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$ 5,395
|
|
$ 60,257
|
|
Accounts
payable
|
90,032
|
|
63,575
|
|
Claims
payable
|
8,162
|
|
2,547
|
|
Amounts due to plan
sponsors
|
5,779
|
|
4,826
|
|
Accrued
interest
|
6,853
|
|
2,173
|
|
Accrued expenses and
other current liabilities
|
46,092
|
|
36,371
|
|
Current liabilities
of discontinued operations
|
-
|
|
6,576
|
|
Total current
liabilities
|
162,313
|
|
176,325
|
|
Long-term debt, net
of current portion
|
418,408
|
|
375,322
|
|
Deferred
taxes
|
19,058
|
|
6,935
|
|
Other non-current
liabilities
|
8,129
|
|
17,540
|
|
Non-current
liabilities of discontinued operations
|
-
|
|
6,153
|
|
Total
liabilities
|
607,908
|
|
582,275
|
|
Stockholders'
equity
|
|
|
|
|
Preferred stock,
$.0001 par value; 5,000,000 shares authorized; no shares issued
or
outstanding
|
-
|
|
-
|
|
Common stock, $.0001
par value; 125,000,000 shares authorized; 71,273,564 and
70,711,439 shares issued and 68,636,965 and 68,128,919 shares
outstanding as of
December 31, 2014 and 2013, respectively
|
8
|
|
7
|
|
Treasury stock,
2,637,099 and 2,582,520 shares, at cost, as of December 31, 2014
and
2013, respectively
|
(10,679)
|
|
(10,311)
|
|
Additional paid-in
capital
|
529,682
|
|
519,625
|
|
Accumulated
deficit
|
(302,206)
|
|
(154,738)
|
|
Total
stockholders' equity
|
216,805
|
|
354,583
|
|
Total
liabilities and stockholders' equity
|
$
824,713
|
|
$
936,858
|
|
Schedule
2
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Product
revenue
|
$
234,052
|
|
$
206,090
|
|
$
901,653
|
|
$
675,684
|
|
Service
revenue
|
19,626
|
|
19,394
|
|
82,402
|
|
93,774
|
|
Total
revenue
|
253,678
|
|
225,484
|
|
984,055
|
|
769,458
|
|
|
|
|
|
|
|
|
|
Cost of product
revenue
|
169,896
|
|
142,332
|
|
645,419
|
|
466,155
|
|
Cost of service
revenue
|
18,174
|
|
14,956
|
|
77,570
|
|
59,690
|
|
Total cost of
revenue
|
188,070
|
|
157,288
|
|
722,989
|
|
525,845
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
65,608
|
|
68,196
|
|
261,066
|
|
243,613
|
|
% of
revenues
|
25.9%
|
|
30.2%
|
|
26.5%
|
|
31.7%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
64,684
|
|
59,956
|
|
239,810
|
|
209,627
|
|
Change in fair value
of contingent consideration
|
(423)
|
|
(5,374)
|
|
(7,364)
|
|
(5,786)
|
|
Bad debt
expense
|
38,533
|
|
9,360
|
|
79,574
|
|
19,625
|
|
Acquisition and
integration expenses
|
3,170
|
|
3,105
|
|
17,924
|
|
16,130
|
|
Restructuring and
other expenses
|
5,350
|
|
4,261
|
|
15,646
|
|
7,718
|
|
Amortization of
intangibles
|
1,612
|
|
1,870
|
|
6,555
|
|
6,671
|
|
Loss from
operations
|
(47,318)
|
|
(4,982)
|
|
(91,079)
|
|
(10,372)
|
|
Interest expense,
net
|
9,342
|
|
8,029
|
|
38,539
|
|
28,198
|
|
Loss on
extinguishment of debt
|
2,373
|
|
-
|
|
2,373
|
|
15,898
|
|
Loss from continuing
operations, before income taxes
|
(59,033)
|
|
(13,011)
|
|
(131,991)
|
|
(54,468)
|
|
Income tax
provision
|
2,907
|
|
2,565
|
|
11,391
|
|
2,523
|
|
Loss from continuing
operations, net of income taxes
|
(61,940)
|
|
(15,576)
|
|
(143,382)
|
|
(56,991)
|
|
Loss from discontinued
operations, net of income taxes
|
(1,686)
|
|
(2,983)
|
|
(4,086)
|
|
(12,663)
|
|
Net Loss
|
$
(63,626)
|
|
$
(18,559)
|
|
$
(147,468)
|
|
$
(69,654)
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations, basic and diluted
|
$
(0.90)
|
|
$
(0.23)
|
|
$
(2.09)
|
|
$
(0.89)
|
|
Loss from discontinued
operations, basic and diluted
|
(0.02)
|
|
(0.04)
|
|
(0.06)
|
|
(0.19)
|
|
Loss, basic and
diluted
|
$
(0.92)
|
|
$
(0.27)
|
|
$
(2.15)
|
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,637
|
|
68,097
|
|
68,476
|
|
64,560
|
|
Schedule
3
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
Years Ended
December 31,
|
|
2014
|
|
2013
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$ (147,468)
|
|
$ (69,654)
|
|
Less: Income (loss)
from discontinued operations, net of income taxes
|
(4,086)
|
|
(12,663)
|
|
Loss from continuing
operations, net of income taxes
|
(143,382)
|
|
(56,991)
|
|
Adjustments to
reconcile net loss from continuing operations to net cash provided
(used in) by
operating activities:
|
|
|
|
|
Depreciation
|
16,388
|
|
13,381
|
|
Amortization of
intangibles
|
6,555
|
|
6,671
|
|
Amortization of
deferred financing costs and debt discount
|
4,153
|
|
2,259
|
|
Change in fair value
of contingent consideration
|
(7,364)
|
|
(5,786)
|
|
Change in deferred
income tax
|
12,318
|
|
4,801
|
|
Compensation under
stock-based compensation plans
|
8,570
|
|
9,450
|
|
Loss on
extinguishment of debt
|
2,373
|
|
15,898
|
|
Equity in earnings of
unconsolidated affiliate
|
-
|
|
675
|
|
Changes in assets and
liabilities, net of acquired business:
|
|
|
|
|
Receivables, net of
bad debt expense
|
30,650
|
|
(33,511)
|
|
Inventory
|
(2,952)
|
|
4,939
|
|
Prepaid expenses and
other assets
|
5,464
|
|
(456)
|
|
Accounts
payable
|
26,021
|
|
22,260
|
|
Claims
payable
|
5,614
|
|
(4,864)
|
|
Amounts due to plan
sponsors
|
953
|
|
(13,105)
|
|
Accrued
interest
|
4,681
|
|
(3,627)
|
|
Accrued expenses and
other liabilities
|
5,313
|
|
(8,005)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
(24,645)
|
|
(46,011)
|
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
(6,771)
|
|
(8,542)
|
|
Net cash (used in)
provided by operating activities
|
(31,416)
|
|
(54,553)
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment, net
|
(13,829)
|
|
(25,525)
|
|
Cash consideration
paid for acquisitions, net of cash acquired
|
(454)
|
|
(282,998)
|
|
Net cash proceeds
from sale of unconsolidated affiliate
|
852
|
|
8,617
|
|
Cash advances to
unconsolidated affiliate
|
-
|
|
(2,363)
|
|
Net cash used in
investing activities from continuing operations
|
(13,431)
|
|
(302,269)
|
|
Net cash provided by
investing activities from discontinued operations
|
57,688
|
|
(101)
|
|
Net cash provided
by (used in) investing activities
|
44,257
|
|
(302,370)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from stock
offering
|
-
|
|
118,382
|
|
Proceeds from senior
notes due 2021, net of lenders' fees, other expenses and debt
discount
|
194,539
|
|
-
|
|
Proceeds from senior
credit facility, net of fees paid to issuers
|
-
|
|
378,091
|
|
Repayment of 10 1/4%
senior unsecured notes
|
-
|
|
(237,397)
|
|
Deferred and other
financing costs
|
(1,135)
|
|
-
|
|
Borrowings on line of
credit
|
244,700
|
|
449,559
|
|
Repayments on line of
credit
|
(279,703)
|
|
(409,559)
|
|
Principal payments on
long-term debt
|
(172,243)
|
|
(5,000)
|
|
Repayments of capital
leases
|
(360)
|
|
(802)
|
|
Net proceeds from
exercise of employee stock compensation plans
|
1,468
|
|
2,549
|
|
Surrender of stock to
satisfy minimum tax withholding
|
(368)
|
|
-
|
|
Net cash provided
by (used in) financing activities
|
(13,102)
|
|
295,823
|
|
Net change in cash
and cash equivalents
|
(261)
|
|
(61,100)
|
|
Cash and cash
equivalents - beginning of period
|
1,001
|
|
62,101
|
|
Cash and cash
equivalents - end of period
|
$
740
|
|
$ 1,001
|
|
DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
|
Cash paid during the
period for interest
|
$ 34,133
|
|
$ 25,589
|
|
Cash paid during the
period for income taxes, net of refunds
|
$ 1,651
|
|
$ 3,137
|
|
DISCLOSURE OF
NON-CASH TRANSACTIONS:
|
|
|
|
|
Capital lease
obligations incurred to acquire property and equipment
|
$
107
|
|
$
20
|
|
Schedule
4
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
Reconciliation
between GAAP and Non-GAAP Measures
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Infusion Services - product
revenue
|
$ 234,052
|
|
$ 206,090
|
|
$ 901,653
|
|
$ 675,684
|
|
Infusion Services - service
revenue
|
5,442
|
|
5,900
|
|
21,001
|
|
21,182
|
|
Total Infusion Services
revenue
|
239,494
|
|
211,990
|
|
922,654
|
|
696,866
|
|
|
|
|
|
|
|
|
|
PBM Services - service
revenue
|
14,184
|
|
13,494
|
|
61,401
|
|
72,592
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$ 253,678
|
|
$ 225,484
|
|
$ 984,055
|
|
$ 769,458
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment before corporate overhead:
|
|
|
|
|
|
|
|
|
Infusion Services
|
(18,310)
|
|
$ 20,071
|
|
$ 6,501
|
|
$ 60,686
|
|
PBM Services
|
1,594
|
|
1,709
|
|
6,731
|
|
17,094
|
|
Total Segment Adjusted
EBITDA
|
(16,716)
|
|
21,780
|
|
13,232
|
|
77,780
|
|
|
|
|
|
|
|
|
|
Corporate
overhead
|
(13,879)
|
|
(8,511)
|
|
(36,264)
|
|
(32,042)
|
|
Consolidated Adjusted
EBITDA
|
(30,595)
|
|
13,269
|
|
(23,032)
|
|
45,738
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(9,342)
|
|
(8,029)
|
|
(38,539)
|
|
(28,199)
|
|
Loss on
extinguishment of debt
|
(2,373)
|
|
-
|
|
(2,373)
|
|
(15,898)
|
|
Income tax
provision
|
(2,907)
|
|
(2,565)
|
|
(11,391)
|
|
(2,523)
|
|
Depreciation
|
(4,389)
|
|
(5,212)
|
|
(16,388)
|
|
(13,381)
|
|
Amortization of
intangibles
|
(1,612)
|
|
(1,870)
|
|
(6,555)
|
|
(6,671)
|
|
Stock-based
compensation expense
|
(1,933)
|
|
(2,190)
|
|
(8,570)
|
|
(9,450)
|
|
Acquisition and
integration expenses
|
(3,170)
|
|
(3,105)
|
|
(17,924)
|
|
(16,130)
|
|
Restructuring and
other expenses and investments
|
(5,619)
|
|
(5,874)
|
|
(18,610)
|
|
(10,477)
|
|
Loss from
continuing operations, net of taxes
|
(61,940)
|
|
$ (15,576)
|
|
$ (143,382)
|
|
$ (56,991)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 9,754
|
|
$ 15,972
|
|
PBM Services
|
|
|
|
|
-
|
|
-
|
|
Corporate
unallocated
|
|
|
|
|
4,075
|
|
9,553
|
|
Total Capital
Expenditures
|
|
|
|
|
$ 13,829
|
|
$ 25,525
|
|
|
|
|
|
|
|
|
|
Depreciation
Expense:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 10,203
|
|
$ 8,541
|
|
PBM Services
|
|
|
|
|
-
|
|
-
|
|
Corporate
unallocated
|
|
|
|
|
6,185
|
|
4,840
|
|
Total Depreciation
Expense
|
|
|
|
|
$ 16,388
|
|
$ 13,381
|
|
|
|
|
|
|
|
|
|
Total
Assets:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 755,955
|
|
$ 793,475
|
|
PBM Services
|
|
|
|
|
29,147
|
|
25,239
|
|
Corporate
unallocated
|
|
|
|
|
39,611
|
|
53,169
|
|
Assets from
discontinued operations
|
|
|
|
|
-
|
|
64,959
|
|
Assets associated with
discontinued operations, not sold
|
|
|
|
|
-
|
|
16
|
|
Total
Assets
|
|
|
|
|
$ 824,713
|
|
$ 936,858
|
|
|
|
|
|
|
|
|
|
Goodwill:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 560,579
|
|
$ 558,593
|
|
PBM Services
|
|
|
|
|
12,744
|
|
12,744
|
|
Total
Goodwill
|
|
|
|
|
$ 573,323
|
|
571,337
|
|
Schedule
5
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
Reconciliation
between GAAP and Non-GAAP Earnings Per Share
|
|
(in thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2014(1)
|
|
2013(2)
|
|
2014(1)
|
|
2013(3)
|
|
Loss from continuing
operations, net of income taxes
|
$ (61,940)
|
|
$ (15,576)
|
|
$ (143,382)
|
|
$ (56,991)
|
|
Non-GAAP adjustments,
net of income taxes:
|
|
|
|
|
|
|
|
|
Restructuring and
other related costs and investments (4)
|
5,619
|
|
5,876
|
|
18,610
|
|
10,478
|
|
Loss on
extinguishment of debt
|
2,373
|
|
-
|
|
2,373
|
|
15,894
|
|
Acquisition and
integration expenses
|
3,170
|
|
3,104
|
|
17,924
|
|
16,126
|
|
Amortization of
intangibles
|
1,612
|
|
1,869
|
|
6,555
|
|
6,669
|
|
Compensation under
stock-based compensation plans
|
1,933
|
|
2,189
|
|
8,570
|
|
9,448
|
|
Non-GAAP net income
(loss) from continuing operations
|
$ (47,233)
|
|
$ (2,538)
|
|
$ (89,350)
|
|
$ 1,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations, basic and diluted
|
$ (0.90)
|
|
$ (0.23)
|
|
$
(2.09)
|
|
$ (0.89)
|
|
Non-GAAP adjustments,
net of income taxes:
|
|
|
|
|
|
|
|
|
Restructuring and
other related costs and investments (4)
|
0.08
|
|
0.09
|
|
0.27
|
|
0.16
|
|
Loss on
extinguishment of debt
|
0.03
|
|
-
|
|
0.03
|
|
0.25
|
|
Acquisition and
integration expenses
|
0.05
|
|
0.05
|
|
0.26
|
|
0.25
|
|
Amortization of
intangibles
|
0.02
|
|
0.03
|
|
0.10
|
|
0.10
|
|
Compensation under
stock-based compensation plans
|
0.03
|
|
0.03
|
|
0.13
|
|
0.15
|
|
Non-GAAP earnings per
share from continuing operations, basic and diluted
|
$ (0.69)
|
|
$ (0.03)
|
|
$
(1.30)
|
|
$ 0.02
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,637
|
|
68,097
|
|
68,476
|
|
64,560
|
|
|
|
(1)For the three
months and year ended December 31, 2014 non-GAAP net loss from
continuing operations adjustments are net of tax,
calculated using an annual effective tax rate method. However, the
Company has recorded a full valuation allowance on its deferred tax
a
assets and, as a result, no tax benefit is being recognized for the
non-GAAP net loss from continuing operations. The tax expense
in
continuing operations relates to indefinite-lived intangible assets
and an insignificant amount of state tax expense which would not
be
impacted by the non-GAAP adjustments above. Accordingly, no tax
expense has been allocated to the non-GAAP adjustments.
|
|
|
(2)For the three
months ended December 31, 2013, non-GAAP net income from continuing
operations adjustments are net of tax,
calculated using an annual effective tax rate method. The tax
expense netted against restructuring and other expenses and
investments, acquisition and integration expenses, amortization of
intangibles, and stock-based compensation expense was $2,
$1, $1 and $1, respectively. The tax effect of these adjustments on
a per share basis is not meaningful.
|
|
|
(3)For the year ended
December 31, 2013, non-GAAP net income from continuing operations
adjustments are net of tax, calculated using
an annual effective tax rate method. The tax expense netted against
restructuring and other expenses and investments, loss on
extinguishment of debt, acquisition and integration expenses,
amortization of intangibles, and stock-based compensation expense
was
$3, $4, $4, $2 and $2, respectively. The tax effect of these
adjustments on a per share basis is not meaningful.
|
|
|
(4)Restructuring and
other expenses and investments include costs associated with
restructuring such as employee severance, third
party consulting costs and facility closure costs; training and
transitional costs as well as redundant salaries; losses in the
short-term
investment in the unconsolidated affiliate; and investments in
start-up branch locations.
|
|
|
|
|
|
|
|
|
|
|
Schedule
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
Year Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Pro
Forma Adj EBITDA
|
|
|
Infusion Segment Pro
Forma Adjusted EBITDA
|
|
$'000
|
|
|
|
|
|
$'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adj
EBITDA
|
|
($23,032)
|
|
Infusion Adj
EBITDA
|
|
$6,501
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Adjustments:
|
|
|
|
Pro Forma
Adjustments:
|
|
|
|
Infusion Pro Forma
Adjustments
|
$56,255
|
|
Bad Debt
|
|
|
$54,127
|
|
One-Time Audit
Fees
|
|
5,800
|
|
Contractual
Adjustments
|
|
4,127
|
|
Incremental FY Impact
of 2014 RIF
|
239
|
|
Gain on Contingent
Consideration
|
(7,364)
|
|
Total Pro Forma
Adjustments
|
|
$62,294
|
|
Incremental FY Impact
of 2014 RIF
|
4,280
|
|
|
|
|
|
|
Site
Closures
|
|
|
1,085
|
|
|
|
|
|
|
Total Pro Forma
Adjustments
|
|
$56,255
|
|
Consolidated Pro
Forma Adj EBITDA
|
$39,262
|
|
|
|
|
|
|
|
|
|
|
|
|
Infusion Pro Forma
Adj EBITDA
|
$62,756
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bioscrip-reports-fourth-quarter-2014-financial-results-300043373.html
SOURCE BioScrip, Inc.