Q2 Consolidated Revenue of $232.5 Million, Loss
from continuing operations, net of income taxes of $(8.3) Million
and Adjusted EBITDA of $10.4 Million
BioScrip, Inc. (NASDAQ:BIOS) (“BioScrip” or the “Company”) today
announced financial results for the second quarter 2016. For the
second quarter, the Company reported revenue from continuing
operations of $232.5 million, net loss from continuing operations
of ($8.3) million and diluted EPS of ($0.14) loss per
share.
Second Quarter Highlights
- Net revenue for the second quarter 2016 was $232.5 million, a
decrease year over year as anticipated in connection with the
ongoing shift in revenue mix to a greater percentage of core
infusion revenue and less lower margin chronic infusion
revenue;
- Consolidated Loss from continuing operations, net of income
taxes of $8.3 Million, an improvement of $236.6 million compared to
Loss from continuing operations, net of income taxes of $244.9
million in the prior year second quarter. The year over year
improvement was due to the improved operating performance of the
Company in 2016 combined with the fact that prior year second
quarter 2015 included a significant non-cash cost associated with
the impairment of goodwill, which did not recur in 2016;
- Consolidated Adjusted EBITDA was $10.4 million for the second
quarter 2016, up $14.7 million compared to consolidated Adjusted
EBITDA of a negative ($4.4) million in the prior year second
quarter. The year over year increase was due to the success of the
Company’s operating improvement initiatives to further reduce costs
and focus more directly on its core infusion business;
and,
- Infusion Services Adjusted EBITDA (which excludes corporate
overhead costs) was $19.3 million, or 8.3% of revenues, for the
2016 second quarter, representing an increase of $12.9 million over
the second quarter of 2015.
Rick Smith, President and Chief Executive Officer stated, “We
are pleased with our second quarter results, during which BioScrip
delivered its lowest loss from continuing operations and its
strongest Adjusted EBITDA since 2013. Our solid quarter
demonstrates the significant progress we have made since beginning
to implement our operational improvement initiatives.”
Smith added, “BioScrip is poised to enter into its next phase
following the completion of our acquisition of Home Solutions,
which we anticipate will add double-digit organic core revenue
growth to our platform and support stronger patient census
levels. We are on track to close the Home Solutions
transaction in September and expect a smooth and successful
integration.”
Results of Operations
Second Quarter 2016 versus Prior Year Second Quarter
2015
Revenue from continuing operations for the second quarter of
2016 was $232.5 million, compared to $246.9 million in the second
quarter of 2015, a decrease of $14.4 million or 5.8%. This revenue
decrease resulted from the Company’s previously announced shift in
revenue mix to a greater percentage of core infusion revenue and
less lower margin chronic revenue.
Consolidated gross profit for the second quarter of 2016 was
$64.2 million, or 27.6% of revenue, up 130 basis points as a
percentage of revenue, compared to second quarter 2015 gross profit
of $64.8 million, or 26.3% of revenue.
Consolidated Loss from continuing operations, net of income
taxes for the second quarter of 2016 was $8.3 million representing
an improvement of $236.6 million versus the same period prior
year Consolidated Loss from continuing operations, net of income
taxes of $244.9 million. The improvement in Consolidated Loss
from continuing operations, net of income taxes resulted from the
improved operating performance of the Company in 2016 combined with
the fact that prior year second quarter 2015 included a significant
non-cash cost associated with the impairment of goodwill, which did
not recur in 2016 .
Consolidated Adjusted EBITDA from continuing operations for the
second quarter of 2016 was $10.4 million representing an increase
of $14.7 million versus the same period prior year Consolidated
Adjusted EBITDA of a negative ($4.4) million. The increase in
Consolidated Adjusted EBITDA resulted from the continued operating
improvement initiatives employed by the Company to further reduce
operating costs, including reducing bad debt costs as a result of
significantly improved cash collection experience on accounts
receivable.
Liquidity and Capital Resources
As of June 30, 2016, the Company had $121.8 million of
liquidity, which consists of $51.4 million of cash and $70.4 of
undrawn capacity available on its revolving credit facility.
The Company intends to use $67.5 million of its liquidity in
September 2016 to finance and complete the pending acquisition of
the business of HS Infusion Holdings, Inc. (known as “Home
Solutions”).
The Company’s net Days Sales Outstanding (“DSO”) improved to 39
days at June 30, 2016, four days less than the prior year second
quarter 2015 DSO of 43 days.
Through the first six months of 2016, the Company’s cash flows
from operations represent a net use of cash from operations
totaling $15.7 million, significantly lower than the $44.2 million
net use of cash during the same period last year. The $15.7
million use of cash from operations during the first six months of
2016 includes the impact of over $6.0 million in cash used for
acquisition and restructuring matters. BioScrip expects to produce
positive cash flow from operating activities over the second half
of 2016, excluding the use of cash expected from integration and
transaction costs from closing the Home Solutions acquisition.
As of June 30, 2016 the Company is in full compliance with its
bank covenants under the terms of the Amended Credit Facility.
Update on Home Solutions Acquisition
As announced in June 2016, BioScrip entered into an agreement to
acquire the business of Home Solutions. The acquisition is expected
to generate $14 million to $17 million of annual operating cost
reduction synergies within 12 to 18 months following the closing.
The transformational transaction is expected to be accretive
to BioScrip stockholders and drive significant benefits for all
stakeholders. Furthermore, we expect the acquisition to
strengthen the Company’s balance sheet and its leverage profile,
thereby improving BioScrip’s strategic flexibility and competitive
positioning, and realigning the Company as a growth platform in the
attractive post-acute care segment.
The Home Solutions acquisition is expected to be completed in
September 2016; the Company expects to hold a Special Meeting of
Stockholders in early September 2016 to approve the transaction and
amend the Company’s Certificate of Incorporation to permit an
increase in the amount of common stock the Company is authorized to
issue.
FY 2016 Guidance Update
BioScrip is updating its financial guidance for full year 2016
as disclosed in the chart below. BioScrip’s updated guidance
includes the expected revenue and Adjusted EBITDA contribution of
Home Solutions following closing of the transaction and reflects a
nominal amount of the $14 million to $17 million of annual
operating cost reduction synergies anticipated to be achieved
within 12 to 18 months following completion of the
acquisition. BioScrip expects to deliver annual run rate
Adjusted EBITDA in the mid-$60 million range by the conclusion of
2016, which reflects only a small portion of the anticipated
$14 million to $17 million of synergies.
The updated guidance range also reflects temporary timing delays
on the realization of ongoing operating cost reductions and revenue
mix improvement initiatives, primarily as a result of a shift in
corporate resources used to focus on transaction diligence and
planning for the successful integration of the Home Solutions
acquisition.
|
|
|
Full Year
2016 |
(dollars in millions,
except EPS) |
Low |
|
High |
|
|
|
|
Revenues |
$ |
940.0 |
|
|
$ |
960.0 |
|
|
|
|
|
Adjusted
EBITDA |
|
45.0 |
|
|
|
50.0 |
|
adjusted ebitda margin |
|
4.8 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
Stock Compensation |
|
5.2 |
|
|
|
4.8 |
|
Depreciation &
Amortization |
|
18.0 |
|
|
|
17.0 |
|
Interest Expense,
net |
|
39.0 |
|
|
|
37.0 |
|
Acquisition,
Integration, and Restructuring Costs |
|
18.5 |
|
|
|
17.0 |
|
Income Tax
(Benefit) |
|
0.5 |
|
|
|
(0.5 |
) |
Preferred Stock
Dividends |
|
9.2 |
|
|
|
9.1 |
|
Net Loss
- Continuing Ops |
$ |
(45.4 |
) |
|
$ |
(34.4 |
) |
weighted average
diluted shares |
|
95.0 |
|
|
|
91.0 |
|
Diluted Loss Per Common
Share |
$ |
(0.48 |
) |
|
$ |
(0.38 |
) |
|
|
|
|
Conference Call and Presentation
BioScrip will host a conference call and live webcast today,
August 8, 2016, at 9:00 a.m. Eastern Daylight Time, to discuss its
second quarter 2016 financial results. Interested parties may
participate by dialing 888-372-9592 (US) or 918-559-5628
(International) or by accessing a link on the Company's website at
www.bioscrip.com.
A replay of the conference call will be available for two weeks
after the call's completion by dialing 855-859-2056 (US) or
404-537-3406 (International) and entering conference call ID number
51653511. 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.
Forward-Looking Statements – Safe HarborThis
press release includes statements that may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including projections of
certain measures of the Company's results of operations,
projections of future levels of certain charges and expenses, and
other statements regarding the Company's financial improvement plan
and strategy. 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 actual results to differ
materially from those in the forward-looking statement include but
are not limited to risks associated with: the Company's ability to
continue to execute its financial improvement plan to reduce
operating costs and focus its business on its Infusion Services
segment; 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 MeasuresIn
addition to reporting all financial information required 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 or a 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, impairment of
goodwill, stock-based compensation expense, and restructuring,
integration and other expenses. 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. Management believes that Adjusted EBITDA provides
useful supplemental information regarding the performance of
BioScrip’s business operations and facilitates comparisons to the
Company’s historical operating results. For a full reconciliation
of Adjusted EBITDA to the most comparable GAAP financial measure,
please see the attachment to this earnings release.
|
Schedule 1 |
BIOSCRIP,
INC. AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED
BALANCE SHEETS |
(in thousands,
except for share amounts) |
|
|
|
|
|
June 30,
2016 |
|
December
31, 2015 |
|
|
|
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
51,425 |
|
|
$ |
15,577 |
|
Receivables, less allowance for
doubtful accounts of $51,314 and $59,689 at June 30, 2016 and
December 31, 2015, respectively |
|
98,634 |
|
|
|
97,353 |
|
Inventory |
|
32,446 |
|
|
|
42,983 |
|
Prepaid expenses and other current
assets |
|
16,509 |
|
|
|
27,772 |
|
Total current
assets |
|
199,014 |
|
|
|
183,685 |
|
Property and equipment, net |
|
30,789 |
|
|
|
31,939 |
|
Goodwill |
|
308,729 |
|
|
|
308,729 |
|
Intangible assets, net |
|
3,512 |
|
|
|
5,128 |
|
Other non-current assets |
|
1,203 |
|
|
|
1,161 |
|
Total assets |
$ |
543,247 |
|
|
$ |
530,642 |
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term
debt |
$ |
9,357 |
|
|
$ |
24,380 |
|
Accounts payable |
|
48,887 |
|
|
|
65,077 |
|
Amounts due to plan sponsors |
|
3,553 |
|
|
|
3,491 |
|
Accrued interest |
|
6,706 |
|
|
|
6,898 |
|
Accrued expenses and other current
liabilities |
|
33,158 |
|
|
|
52,918 |
|
Total current
liabilities |
|
101,661 |
|
|
|
152,764 |
|
Long-term debt, net of current portion |
|
390,102 |
|
|
|
393,741 |
|
Deferred taxes |
|
589 |
|
|
|
236 |
|
Other non-current liabilities |
|
1,655 |
|
|
|
1,861 |
|
Total
liabilities |
|
494,007 |
|
|
|
548,602 |
|
Series A convertible preferred
stock, $.0001 par value; 825,000 shares authorized; 21,645 and
635,822 shares issued and outstanding; and, $2,459 and $69,702
liquidation preference as of June 30, 2016 and December 31, 2015,
respectively |
|
2,292 |
|
|
|
62,918 |
|
Series C convertible preferred
stock, $.0001 par value; 625,000 shares authorized; 614,177 shares
issued and outstanding; and $71,298 liquidation preference as of
June 30, 2016 |
|
65,025 |
|
|
|
- |
|
Stockholders' equity |
|
|
|
Preferred stock, $.0001 par
value; 4,175,000 shares authorized; no shares issued and
outstanding as of June 30, 2016 and December 31, 2015,
respectively |
|
- |
|
|
|
- |
|
Common stock, $.0001 par value;
125,000,000 shares authorized; 116,641,664 and 71,421,664 shares
issued and 113,880,241 and 68,767,613 shares outstanding as of June
30, 2016 and December 31, 2015, respectively |
|
12 |
|
|
|
8 |
|
Treasury stock, 2,761,423 and
2,654,051 shares, at cost, as of June 30, 2016 and December 31,
2015, respectively |
|
(11,009 |
) |
|
|
(10,737 |
) |
Additional paid-in capital |
|
612,603 |
|
|
|
531,764 |
|
Accumulated deficit |
|
(619,683 |
) |
|
|
(601,913 |
) |
Total stockholders'
deficit |
|
(18,077 |
) |
|
|
(80,878 |
) |
Total liabilities and
stockholders' deficit |
$ |
543,247 |
|
|
$ |
530,642 |
|
|
|
|
|
|
|
Schedule 2 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenue |
|
|
$ |
232,462 |
|
|
$ |
246,897 |
|
|
$ |
470,924 |
|
|
$ |
491,254 |
|
Cost of revenue
(excluding depreciation expense) |
|
|
|
168,298 |
|
|
|
182,079 |
|
|
|
342,528 |
|
|
|
361,481 |
|
Gross
profit |
|
|
|
64,164 |
|
|
|
64,818 |
|
|
|
128,396 |
|
|
|
129,773 |
|
% of
revenues |
|
|
|
27.6 |
% |
|
|
26.3 |
% |
|
|
27.3 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
|
|
|
|
Other operating
expenses |
|
|
|
40,619 |
|
|
|
43,314 |
|
|
|
80,277 |
|
|
|
84,929 |
|
Bad debt expense |
|
|
|
4,279 |
|
|
|
15,165 |
|
|
|
11,870 |
|
|
|
23,511 |
|
General and
administrative expenses |
|
|
|
9,414 |
|
|
|
11,866 |
|
|
|
20,465 |
|
|
|
23,565 |
|
Impairment of
goodwill |
|
|
|
- |
|
|
|
238,000 |
|
|
|
- |
|
|
|
238,000 |
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
|
4,291 |
|
|
|
5,969 |
|
|
|
6,958 |
|
|
|
9,673 |
|
Depreciation and
amortization expense |
|
|
|
4,252 |
|
|
|
6,247 |
|
|
|
8,790 |
|
|
|
12,041 |
|
Interest expense,
net |
|
|
|
9,469 |
|
|
|
9,080 |
|
|
|
18,881 |
|
|
|
18,243 |
|
Gain on disposition of
property and equipment |
|
|
|
- |
|
|
|
- |
|
|
|
(939 |
) |
|
|
- |
|
Loss from continuing
operations, before income
taxes |
|
|
|
(8,160 |
) |
|
|
(264,823 |
) |
|
|
(17,906 |
) |
|
|
(280,189 |
) |
Income
tax expense (benefit) |
|
|
|
149 |
|
|
|
(19,921 |
) |
|
|
172 |
|
|
|
(17,993 |
) |
Loss from continuing operations, net of income
taxes |
|
|
|
(8,309 |
) |
|
|
(244,902 |
) |
|
|
(18,078 |
) |
|
|
(262,196 |
) |
Income
(loss) from discontinued operations, net of income taxes |
|
|
|
75 |
|
|
|
94 |
|
|
|
308 |
|
|
|
(2,285 |
) |
Net loss |
|
|
$ |
(8,234 |
) |
|
$ |
(244,808 |
) |
|
$ |
(17,770 |
) |
|
$ |
(264,481 |
) |
Accrued dividends on
preferred stock |
|
|
|
(2,056 |
) |
|
|
(1,805 |
) |
|
|
(4,054 |
) |
|
|
(2,258 |
) |
Deemed dividend on
preferred stock |
|
|
|
(173 |
) |
|
|
(2,186 |
) |
|
|
(345 |
) |
|
|
(3,350 |
) |
Loss
attributable to common stockholders |
|
|
$ |
(10,463 |
) |
|
$ |
(248,799 |
) |
|
$ |
(22,169 |
) |
|
$ |
(270,089 |
) |
|
|
|
|
|
|
|
|
|
|
Denominator -
Basic and Diluted: |
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
|
73,186 |
|
|
|
68,698 |
|
|
|
70,978 |
|
|
|
68,668 |
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations, basic and diluted |
|
|
$ |
(0.14 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.32 |
) |
|
$ |
(3.90 |
) |
Income from
discontinued operations, basic and diluted |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.03 |
) |
Net loss, basic
and diluted |
|
|
$ |
(0.14 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.32 |
) |
|
$ |
(3.93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3 |
BIOSCRIP, INC AND SUBSIDIARIES |
CONSOLIDATED CONDENSED CASH
FLOWS |
(in thousands) |
|
|
|
|
Three
Months Ended |
|
Six Months
Ended |
|
Three
Months Ended |
|
Six Months
Ended |
|
3/31/2015 |
|
6/30/2015 |
|
6/30/2015 |
|
3/31/2016 |
|
6/30/2016 |
|
6/30/2016 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations |
$ |
(17,294 |
) |
|
$ |
(244,902 |
) |
|
$ |
(262,196 |
) |
|
$ |
(9,769 |
) |
|
$ |
(8,309 |
) |
|
$ |
(18,078 |
) |
Receivables, net of bad debt
expense |
|
799 |
|
|
|
7,134 |
|
|
|
7,933 |
|
|
|
(4,417 |
) |
|
|
3,136 |
|
|
|
(1,281 |
) |
Inventory |
|
(4,666 |
) |
|
|
(483 |
) |
|
|
(5,149 |
) |
|
|
13,867 |
|
|
|
(3,330 |
) |
|
|
10,537 |
|
Prepaid expenses and other
assets |
|
(854 |
) |
|
|
163 |
|
|
|
(691 |
) |
|
|
7,897 |
|
|
|
(7,575 |
) |
|
|
322 |
|
Accounts payable |
|
995 |
|
|
|
(13,723 |
) |
|
|
(12,728 |
) |
|
|
(11,995 |
) |
|
|
(4,195 |
) |
|
|
(16,190 |
) |
Accrued interest |
|
(4,585 |
) |
|
|
4,437 |
|
|
|
(148 |
) |
|
|
(4,630 |
) |
|
|
4,438 |
|
|
|
(192 |
) |
Accrued expenses and other
liabilities |
|
(11,200 |
) |
|
|
1,267 |
|
|
|
(9,933 |
) |
|
|
(2,227 |
) |
|
|
(851 |
) |
|
|
(3,078 |
) |
Non-Cash
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
5,794 |
|
|
|
6,247 |
|
|
|
12,041 |
|
|
|
4,538 |
|
|
|
4,252 |
|
|
|
8,790 |
|
Impairment of goodwill |
|
- |
|
|
|
238,000 |
|
|
|
238,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Deferred Taxes |
|
1,927 |
|
|
|
(17,761 |
) |
|
|
(15,834 |
) |
|
|
174 |
|
|
|
178 |
|
|
|
352 |
|
Other Non-Cash |
|
2,457 |
|
|
|
2,082 |
|
|
|
4,539 |
|
|
|
1,590 |
|
|
|
1,552 |
|
|
|
3,142 |
|
Operating Cash Flow (Use) |
|
(26,627 |
) |
|
|
(17,539 |
) |
|
|
(44,166 |
) |
|
|
(4,972 |
) |
|
|
(10,704 |
) |
|
|
(15,676 |
) |
Discontinued operations |
|
(1,421 |
) |
|
|
(573 |
) |
|
|
(1,994 |
) |
|
|
(5,989 |
) |
|
|
76 |
|
|
|
(5,913 |
) |
Capital expenditures |
|
(2,063 |
) |
|
|
(3,734 |
) |
|
|
(5,797 |
) |
|
|
(2,429 |
) |
|
|
(3,037 |
) |
|
|
(5,466 |
) |
Pittsburgh sale proceeds |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,105 |
|
|
|
27 |
|
|
|
1,132 |
|
Preferred stock and warrants |
|
58,951 |
|
|
|
- |
|
|
|
58,951 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock raise, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
83,267 |
|
|
|
83,267 |
|
Term note (repayments) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,137 |
) |
|
|
(3,137 |
) |
|
|
(6,274 |
) |
Revolver borrowing
(repayments) |
|
(5,000 |
) |
|
|
- |
|
|
|
(5,000 |
) |
|
|
8,000 |
|
|
|
(23,000 |
) |
|
|
(15,000 |
) |
Deferred financing costs and
other |
|
(1,332 |
) |
|
|
(229 |
) |
|
|
(1,561 |
) |
|
|
(104 |
) |
|
|
(118 |
) |
|
|
(222 |
) |
Total All Cash Flow (Use) |
$ |
22,508 |
|
|
$ |
(22,075 |
) |
|
$ |
433 |
|
|
$ |
(7,526 |
) |
|
$ |
43,374 |
|
|
$ |
35,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
QUARTERLY
RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended June
30, |
|
Six Months
Ended June
30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Adjusted EBITDA
by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infusion Services Adjusted
EBITDA |
|
$ |
19,266 |
|
|
$ |
6,339 |
|
|
$ |
36,249 |
|
|
$ |
21,333 |
|
Adjusted
EBITDA margin % |
|
|
8.3 |
% |
|
|
2.6 |
% |
|
|
7.7 |
% |
|
|
4.3 |
% |
Corporate Overhead |
|
|
(8,895 |
) |
|
|
(10,704 |
) |
|
|
(18,475 |
) |
|
|
(20,746 |
) |
Corporate
Overhead margin % |
|
|
(3.8 |
%) |
|
|
(4.3 |
%) |
|
|
(3.9 |
%) |
|
|
(4.2 |
%) |
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted EBITDA |
|
|
10,371 |
|
|
|
(4,365 |
) |
|
|
17,774 |
|
|
|
587 |
|
Adjusted
EBITDA margin % |
|
|
4.5 |
% |
|
|
(1.8 |
%) |
|
|
3.8 |
% |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(9,469 |
) |
|
|
(9,080 |
) |
|
|
(18,881 |
) |
|
|
(18,243 |
) |
Gain on sale of
property and equipment |
|
|
- |
|
|
|
- |
|
|
|
939 |
|
|
|
- |
|
Income tax expense |
|
|
(149 |
) |
|
|
19,921 |
|
|
|
(172 |
) |
|
|
17,993 |
|
Depreciation and
amortization expense |
|
|
(4,252 |
) |
|
|
(6,247 |
) |
|
|
(8,790 |
) |
|
|
(12,041 |
) |
Impairment of
goodwill |
|
|
- |
|
|
|
(238,000 |
) |
|
|
- |
|
|
|
(238,000 |
) |
Stock-based
compensation expense |
|
|
(519 |
) |
|
|
(1,162 |
) |
|
|
(1,990 |
) |
|
|
(2,819 |
) |
Restructuring,
acquisition, integration, and other expenses, net (1) |
|
|
(4,291 |
) |
|
|
(5,969 |
) |
|
|
(6,958 |
) |
|
|
(9,673 |
) |
Loss from
continuing operations, net of income taxes |
|
$ |
(8,309 |
) |
|
$ |
(244,902 |
) |
|
$ |
(18,078 |
) |
|
$ |
(262,196 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses on Face of Income Statement: |
|
|
|
|
|
|
|
|
Corporate overhead |
|
$ |
(8,895 |
) |
|
$ |
(10,704 |
) |
|
$ |
(18,475 |
) |
|
$ |
(20,746 |
) |
Stock-based
compensation expense |
|
|
(519 |
) |
|
|
(1,162 |
) |
|
|
(1,990 |
) |
|
|
(2,819 |
) |
General
and administrative expenses |
|
$ |
(9,414 |
) |
|
$ |
(11,866 |
) |
|
$ |
(20,465 |
) |
|
$ |
(23,565 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring, acquisition, integration and other
expenses, net include costs associated with restructuring,
acquisition, and integration initiatives such as employee severance
costs, certain legal and professional fees, redundant wage costs,
impacts recorded from the change in contingent consideration
obligations, and other costs related to contract terminations and
closed locations. |
|
Schedule 5 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
QUARTERLY CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts) |
|
|
|
|
|
Three Months Ended |
|
Six
Months Ended |
|
|
3/31/2016 |
|
6/30/2016 |
|
12/31/2016 |
|
|
|
|
|
|
|
Net
revenue |
|
$ |
238,462 |
|
|
$ |
232,462 |
|
|
$ |
470,924 |
|
Cost of revenue
(excluding depreciation expense) |
|
|
174,230 |
|
|
|
168,298 |
|
|
|
342,528 |
|
Gross
profit |
|
|
64,232 |
|
|
|
64,164 |
|
|
|
128,396 |
|
% of
revenues |
|
|
26.9 |
% |
|
|
27.6 |
% |
|
|
27.3 |
% |
|
|
|
|
|
|
|
Other operating
expenses |
|
|
39,658 |
|
|
|
40,619 |
|
|
|
80,277 |
|
Bad debt expense |
|
|
7,591 |
|
|
|
4,279 |
|
|
|
11,870 |
|
General and
administrative expenses |
|
|
11,051 |
|
|
|
9,414 |
|
|
|
20,465 |
|
Impairment of
goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
2,667 |
|
|
|
4,291 |
|
|
|
6,958 |
|
Depreciation and
amortization expense |
|
|
4,538 |
|
|
|
4,252 |
|
|
|
8,790 |
|
Interest expense,
net |
|
|
9,412 |
|
|
|
9,469 |
|
|
|
18,881 |
|
Gain on disposition of
property and equipment |
|
|
(939 |
) |
|
|
- |
|
|
|
(939 |
) |
Loss from continuing
operations, before income
taxes |
|
|
(9,746 |
) |
|
|
(8,160 |
) |
|
|
(17,906 |
) |
Income
tax expense (benefit) |
|
|
23 |
|
|
|
149 |
|
|
|
172 |
|
Loss from continuing operations, net of income
taxes |
|
|
(9,769 |
) |
|
|
(8,309 |
) |
|
|
(18,078 |
) |
Income
from discontinued operations, net of income taxes |
|
|
233 |
|
|
|
75 |
|
|
|
308 |
|
Net loss |
|
|
(9,536 |
) |
|
|
(8,234 |
) |
|
$ |
(17,770 |
) |
Accrued dividends on
preferred stock |
|
|
(1,998 |
) |
|
|
(2,056 |
) |
|
|
(4,054 |
) |
Deemed dividends on
preferred stock |
|
|
(172 |
) |
|
|
(173 |
) |
|
|
(345 |
) |
Loss
attributable to common stockholders |
|
$ |
(11,706 |
) |
|
$ |
(10,463 |
) |
|
$ |
(22,169 |
) |
|
|
|
|
|
|
|
Denominator -
Basic and Diluted: |
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
68,771 |
|
|
|
73,186 |
|
|
|
70,978 |
|
|
|
|
|
|
|
|
Loss from
continuing operations, basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.32 |
) |
Income from
discontinued operations, basic and diluted |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss, basic
and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.32 |
) |
|
|
|
|
|
|
|
Schedule 6 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
QUARTERLY CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve
Months Ended |
|
|
3/31/2015 |
|
6/30/2015 |
|
9/30/2015 |
|
12/31/2015 |
|
12/31/2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenue |
|
$ |
244,357 |
|
|
$ |
246,897 |
|
|
$ |
247,224 |
|
|
$ |
243,745 |
|
|
$ |
982,223 |
|
Cost of revenue
(excluding depreciation expense) |
|
|
179,402 |
|
|
|
182,079 |
|
|
|
181,991 |
|
|
|
177,836 |
|
|
|
721,308 |
|
Gross
profit |
|
|
64,955 |
|
|
|
64,818 |
|
|
|
65,233 |
|
|
|
65,909 |
|
|
|
260,915 |
|
%
of revenues |
|
|
26.6 |
% |
|
|
26.3 |
% |
|
|
26.4 |
% |
|
|
27.0 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other operating
expenses |
|
|
41,616 |
|
|
|
43,314 |
|
|
|
41,198 |
|
|
|
39,870 |
|
|
|
165,998 |
|
Bad debt expense |
|
|
8,346 |
|
|
|
15,165 |
|
|
|
9,321 |
|
|
|
8,210 |
|
|
|
41,042 |
|
General and
administrative expenses |
|
|
11,699 |
|
|
|
11,866 |
|
|
|
9,308 |
|
|
|
9,651 |
|
|
|
42,524 |
|
Impairment of
goodwill |
|
|
- |
|
|
|
238,000 |
|
|
|
13,850 |
|
|
|
- |
|
|
|
251,850 |
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
3,704 |
|
|
|
5,969 |
|
|
|
5,369 |
|
|
|
9,363 |
|
|
|
24,405 |
|
Depreciation and
amortization expense |
|
|
5,794 |
|
|
|
6,247 |
|
|
|
5,471 |
|
|
|
5,231 |
|
|
|
22,743 |
|
Interest expense,
net |
|
|
9,163 |
|
|
|
9,080 |
|
|
|
9,507 |
|
|
|
9,563 |
|
|
|
37,313 |
|
Loss from continuing
operations, before income
taxes |
|
|
(15,367 |
) |
|
|
(264,823 |
) |
|
|
(28,791 |
) |
|
|
(15,979 |
) |
|
|
(324,960 |
) |
Income
tax expense (benefit) |
|
|
1,928 |
|
|
|
(19,921 |
) |
|
|
(4,551 |
) |
|
|
1,012 |
|
|
|
(21,532 |
) |
Loss from continuing operations, net of income
taxes |
|
|
(17,295 |
) |
|
|
(244,902 |
) |
|
|
(24,240 |
) |
|
|
(16,991 |
) |
|
|
(303,428 |
) |
Income
from discontinued operations, net of income taxes |
|
|
(2,379 |
) |
|
|
94 |
|
|
|
7,457 |
|
|
|
(1,451 |
) |
|
|
3,721 |
|
Net loss |
|
$ |
(19,674 |
) |
|
$ |
(244,808 |
) |
|
$ |
(16,783 |
) |
|
$ |
(18,442 |
) |
|
$ |
(299,707 |
) |
Accrued dividends on
preferred stock |
|
|
(453 |
) |
|
|
(1,805 |
) |
|
|
(1,899 |
) |
|
|
(1,963 |
) |
|
|
(6,120 |
) |
Deemed dividends on
preferred stock |
|
|
(1,164 |
) |
|
|
(2,186 |
) |
|
|
(169 |
) |
|
|
(171 |
) |
|
|
(3,690 |
) |
Loss
attributable to common stockholders |
|
$ |
(21,291 |
) |
|
$ |
(248,799 |
) |
|
$ |
(18,851 |
) |
|
$ |
(20,576 |
) |
|
$ |
(309,517 |
) |
|
|
|
|
|
|
|
|
|
|
|
Denominator -
Basic and Diluted: |
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
68,637 |
|
|
|
68,698 |
|
|
|
68,742 |
|
|
|
68,760 |
|
|
|
68,710 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations, basic and diluted |
|
$ |
(0.28 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.28 |
) |
|
$ |
(4.56 |
) |
Income from
discontinued operations, basic and diluted |
|
|
(0.03 |
) |
|
|
- |
|
|
|
0.11 |
|
|
|
(0.02 |
) |
|
|
0.05 |
|
Net loss, basic
and diluted |
|
$ |
(0.31 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.30 |
) |
|
$ |
(4.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jeffrey M. Kreger
Chief Financial Officer
(720) 697-5200
Jeffrey.kreger@bioscrip.com
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