BioScrip, Inc. (NASDAQ:BIOS) (“BioScrip” or the “Company”) today
announced financial results for the first quarter 2016. For the
first quarter, the Company reported revenue from continuing
operations of $238.5 million, net loss from continuing operations
of ($11.9) million and diluted EPS of ($0.17) loss per share.
First Quarter Highlights
- Net revenue for the first quarter 2016 was $238.5 million, a
decrease year over year as anticipated in accordance with the
planned shift in revenue mix to greater core infusion revenue
business composition away from lower margin chronic infusion
revenue.
- Consolidated Adjusted EBITDA was $7.4 million for the first
quarter 2016, up $2.5 million year over year from the first quarter
2015 Adjusted EBITDA of $4.9 million. The year over year increase
was due to the success of the Company’s operating improvement
initiatives to further reduce its costs and focus more directly on
its core infusion business;
- Infusion Services Adjusted EBITDA (which excludes corporate
overhead costs) was $17.0 million, or 7.1% of revenues, for the
2016 first quarter representing an increase of $2.0 million over
the first quarter 2015; and
Rick Smith, President and Chief Executive Officer stated, “We
are pleased with our first quarter results, which reflect continued
patient census growth tempered by seasonality. The improvement in
our Adjusted EBITDA results in the quarter is continued evidence of
our strengthening operations. The infusion platform we have
developed through BioScrip’s clinical and operational teams enables
us to serve our patients daily with high-quality care and
outstanding service.”
Results of Operations
First Quarter 2016 versus Prior Year First Quarter
2015
Revenue from continuing operations for the first quarter of 2016
was $238.5 million, compared to $244.4 million in the first quarter
of 2015, a decrease of $5.9 million or 2.4%. The decrease was due
primarily to the Company’s planned shift in revenue mix to greater
core revenues away from lower margin chronic.
Consolidated gross profit for the first quarter of 2016 was
$64.2 million, or 26.9% of revenue, up 30 basis points as a
percentage of revenue as compared to the same period prior
year.
Consolidated Adjusted EBITDA from continuing operations for the
first quarter of 2016 was $7.4 million representing an increase of
$2.5 million or 51% over the same period prior year Consolidated
Adjusted EBITDA which was $4.9 million. Excluding Corporate
Overhead Adjusted EBITDA, Infusion Services Adjusted EBITDA was
$17.0 million for the first quarter 2016, an increase of $2.0
million over the first quarter 2015. This increase was due to the
continued operating improvement initiatives employed by the Company
to further reduce operating costs including reducing bad debt costs
as a result of improved cash collection experience on accounts
receivables. Adjusted EBITDA excludes, among other things,
restructuring expenses such as severance and retention costs and
certain restructuring related consulting & professional
fees. Restructuring, integration and other expenses in the
first quarter 2016 totaled $2.7 million, down $1.0 million from the
same quarter prior year.
Interest expense in the first quarter of 2016 was $9.4 million,
roughly consistent with $9.2 million in the first quarter 2015.
Income tax expense from continuing operations in the first
quarter of 2016 was negligible and decreased as compared to the
income tax expense in the same period prior year of $1.9
million.
Net loss from continuing operations for the first quarter of
2016 was ($11.9) million, or ($0.17) per diluted share, compared to
the same first quarter period in 2015 net loss of ($18.9) million,
or ($0.28) per diluted share.
Liquidity and Capital Resources
As of May 5, 2016, the Company had $54.2 million of liquidity,
which is comprised of $7.6 million of cash and $46.6 of undrawn
capacity available on its revolving credit facility. The
Company’s net Days Sales Outstanding (“DSO”) was 39 days at March
31, 2016 which was seven days lower than the prior year first
quarter 2015 DSO of 46 days, and was comparable to the sequential
fourth quarter 2015 DSO of 37 days.
The Company generated solid operating cash in the first quarter
2016 and was able to use its operating cash flow to fund 100% of
all operating costs of the business. The Company had a net use of
cash of $5.0 million for the first quarter 2016 when factoring in
the $8.9 million semi-annual cash interest payment on the 2021
Notes.
The Company expects to be operating cash flow positive for the
full 2016 fiscal year. In addition to being operating cash
flow positive for the full 2016 fiscal year, the Company also
expects to pay down more than $12 million of bank term
debt in 2016 from cash flow generated by operations.
As of March 31, 2016 the Company is in compliance with its bank
covenants under the terms of the Amended Credit Facility.
FY 2016 Guidance
The Company is re-affirming its previously announced guidance
for the full year 2016.
Conference Call and Presentation
BioScrip will host a conference call and live webcast tomorrow,
May 6, 2016, at 8:00 a.m. Eastern Time, to discuss its first
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
94119366. 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," including projections of certain
measures of the Company's results of operations, including its
revenues and cash flows, projections of future cost savings
associated with the absence or reduction of certain charges and
expenses, and other statements regarding the Company's expectations
regarding the impact of its financial improvement plan 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 continue to experience positive results
from 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, gain on sale of
property and equipment, 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.
TABLES TO FOLLOW
Schedule
1 |
BIOSCRIP,
INC. AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED
BALANCE SHEETS |
(in thousands,
except share amounts) |
|
|
|
|
|
March 31, 2016 |
|
December 31, 2015 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
8,051 |
|
|
$ |
15,577 |
|
Receivables, less allowance for
doubtful accounts of $56,805 and $59,689 at March 31, 2016 and
December 31, 2015, respectively |
|
101,770 |
|
|
|
97,353 |
|
Inventory |
|
29,116 |
|
|
|
42,983 |
|
Prepaid expenses and other current
assets |
|
19,908 |
|
|
|
27,772 |
|
Total current
assets |
|
158,845 |
|
|
|
183,685 |
|
Property and equipment, net |
|
30,484 |
|
|
|
31,939 |
|
Goodwill |
|
308,729 |
|
|
|
308,729 |
|
Intangible assets, net |
|
4,306 |
|
|
|
5,128 |
|
Other non-current assets |
|
1,130 |
|
|
|
1,161 |
|
Total assets |
$ |
503,494 |
|
|
$ |
530,642 |
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term
debt |
$ |
32,201 |
|
|
$ |
24,380 |
|
Accounts payable |
|
53,082 |
|
|
|
65,077 |
|
Amounts due to plan sponsors |
|
3,812 |
|
|
|
3,491 |
|
Accrued interest |
|
2,268 |
|
|
|
6,898 |
|
Accrued expenses and other current
liabilities |
|
44,329 |
|
|
|
52,918 |
|
Total current
liabilities |
|
135,692 |
|
|
|
152,764 |
|
Long-term debt, net of
current portion |
|
391,729 |
|
|
|
393,741 |
|
Deferred taxes |
|
410 |
|
|
|
236 |
|
Other non-current liabilities |
|
2,099 |
|
|
|
1,861 |
|
Total
liabilities |
|
529,930 |
|
|
|
548,602 |
|
Series A convertible preferred
stock, $.0001 par value; 825,000 shares authorized; 635,822 shares
issued and outstanding as of March 31, 2016 and December 31,
2015;and, $71,701 and $69,702 liquidation preference as of March
31, 2016 and December 31, 2015, respectively |
|
65,088 |
|
|
|
62,918 |
|
Stockholders' deficit |
|
|
|
Preferred stock, $.0001 par
value; 4,175,000 shares authorized; no shares issued and
outstanding as of March 31, 2016 and December 31, 2015,
respectively |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Common stock, $.0001 par value;
125,000,000 shares authorized; 71,441,664 and 71,421,664 shares
issued and 68,780,241 and 68,767,613 shares outstanding as of March
31, 2016 and December 31, 2015, respectively |
|
8 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
Treasury stock, 2,661,423 and
2,654,051 shares, at cost, as of March 31, 2016 and December 31,
2015, respectively |
|
(10,754 |
) |
|
|
(10,737 |
) |
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
530,671 |
|
|
|
531,764 |
|
|
|
|
|
|
|
|
|
Accumulated deficit |
|
(611,449 |
) |
|
|
(601,913 |
) |
Total stockholders'
deficit |
|
(91,524 |
) |
|
|
(80,878 |
) |
Total liabilities and
stockholders' deficit |
$ |
503,494 |
|
|
$ |
530,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
QUARTERLY CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts) |
|
|
|
|
Three Months Ended
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
Net
revenue |
|
$ |
238,462 |
|
|
$ |
244,357 |
|
|
Cost of revenue
(excluding depreciation expense) |
|
|
174,230 |
|
|
|
179,402 |
|
|
Gross
profit |
|
|
64,232 |
|
|
|
64,955 |
|
|
%
of revenues |
|
|
26.9 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
Other operating
expenses |
|
|
39,658 |
|
|
|
41,615 |
|
|
Bad debt expense |
|
|
7,591 |
|
|
|
8,346 |
|
|
General and
administrative expenses |
|
|
11,051 |
|
|
|
11,699 |
|
|
Restructuring,
integration, and other expenses, net |
|
|
2,667 |
|
|
|
3,704 |
|
|
Depreciation and
amortization expense |
|
|
4,538 |
|
|
|
5,794 |
|
|
Loss from continuing
operations |
|
|
(1,273 |
) |
|
|
(6,203 |
) |
|
Interest expense,
net |
|
|
9,412 |
|
|
|
9,163 |
|
|
Gain on sale of
property and equipment |
|
|
(939 |
) |
|
|
- |
|
|
Loss from continuing
operations, before income taxes |
|
|
(9,746 |
) |
|
|
(15,366 |
) |
|
Income
tax provision |
|
|
23 |
|
|
|
1,928 |
|
|
Loss from continuing
operations, net of income taxes |
|
|
(9,769 |
) |
|
|
(17,294 |
) |
|
Income (loss) from discontinued
operations, net of income taxes |
|
|
233 |
|
|
|
(2,379 |
) |
|
Net loss |
|
|
(9,536 |
) |
|
|
(19,673 |
) |
|
Accrued dividends on
preferred stock |
|
|
(1,998 |
) |
|
|
(453 |
) |
|
Deemed dividend on
preferred stock |
|
|
(172 |
) |
|
|
(1,164 |
) |
|
Loss attributable to common
stockholders |
|
$ |
(11,706 |
) |
|
$ |
(21,290 |
) |
|
|
|
|
|
|
|
Denominator -
Basic and Diluted: |
|
|
|
|
|
Weighted
average common shares
outstanding |
|
|
68,771 |
|
|
|
68,637 |
|
|
|
|
|
|
|
|
Loss from continuing
operations, basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.28 |
) |
|
Loss from discontinued
operations, basic and diluted |
|
|
0.00 |
|
|
|
(0.03 |
) |
|
Net loss, basic
and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.31 |
) |
|
|
|
|
|
|
|
Schedule
3 |
BIOSCRIP,
INC AND SUBSIDIARIES |
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
Three
Months Ended March 31, |
|
|
2016 |
|
|
|
2015 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(9,536 |
) |
|
$ |
(19,673 |
) |
Less: Income (loss) from discontinued operations,
net of income taxes |
|
233 |
|
|
|
(2,379 |
) |
Loss from continuing operations, net of income
taxes |
|
(9,769 |
) |
|
|
(17,294 |
) |
Adjustments to reconcile net loss from continuing
operations, net of income taxes to net cash(used in) operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
4,538 |
|
|
|
5,794 |
|
Amortization of deferred financing
costs and debt discount |
|
1,003 |
|
|
|
780 |
|
Change in fair value of contingent
consideration |
|
51 |
|
|
|
21 |
|
Change in deferred income
taxes |
|
174 |
|
|
|
1,927 |
|
Compensation under stock-based
compensation plans |
|
1,474 |
|
|
|
1,657 |
|
Gain on sale of property and
equipment |
|
(939 |
) |
|
|
- |
|
Changes in assets and liabilities |
|
|
|
|
|
|
|
Receivables, net of bad debt
expense |
|
(4,417 |
) |
|
|
799 |
|
Inventory |
|
13,867 |
|
|
|
(4,666 |
) |
Prepaid expenses and other
assets |
|
7,897 |
|
|
|
(854 |
) |
Accounts payable |
|
(11,995 |
) |
|
|
995 |
|
Amounts due to plan sponsors |
|
321 |
|
|
|
(1,511 |
) |
Accrued interest |
|
(4,630 |
) |
|
|
(4,585 |
) |
Accrued expenses and other
liabilities |
|
(2,548 |
) |
|
|
(9,689 |
) |
Net cash (used in) operating
activities from continuing operations |
|
(4,973 |
) |
|
|
(26,626 |
) |
Net cash (used in) operating
activities from discontinued operations |
|
(5,989 |
) |
|
|
(1,421 |
) |
Net cash (used in)
operating activities |
|
(10,962 |
) |
|
|
(28,047 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property and
equipment, net |
|
(2,429 |
) |
|
|
(2,066 |
) |
Proceeds from sale of property and
equipment |
|
1,106 |
|
|
|
- |
|
Net cash (used in)
investing activities |
|
(1,323 |
) |
|
|
(2,066 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from issuance of
convertible preferred stock and warrants, net of issuance
costs |
|
- |
|
|
|
58,951 |
|
Deferred and other financing
costs |
|
- |
|
|
|
(1,218 |
) |
Borrowings on revolving credit
facility |
|
21,000 |
|
|
|
74,963 |
|
Repayments on revolving credit
facility |
|
(13,000 |
) |
|
|
(79,963 |
) |
Principal payments of long-term
debt |
|
(3,137 |
) |
|
|
- |
|
Repayments of capital leases |
|
(51 |
) |
|
|
(114 |
) |
Other |
|
(53 |
) |
|
|
- |
|
Net cash provided by
financing activities |
|
4,759 |
|
|
|
52,619 |
|
Net change in cash and cash
equivalents |
|
(7,526 |
) |
|
|
22,506 |
|
Cash and cash equivalents - beginning of
period |
|
15,577 |
|
|
|
740 |
|
Cash and cash equivalents - end of
period |
|
8,051 |
|
|
|
23,246 |
|
|
|
|
|
DISCLOSURE OF CASH FLOW
INFORMATION: |
|
|
|
Cash paid during the period for interest |
$ |
13,143 |
|
|
$ |
13,748 |
|
Cash paid during the period for income taxes |
$ |
13 |
|
|
$ |
528 |
|
|
|
|
|
Schedule 4 |
BIOSCRIP, INC. AND SUBSIDIARIES |
|
QUARTERLY RECONCILIATION
BETWEEN GAAP AND NON-GAAP MEASURES |
(in thousands) |
|
|
|
|
|
Three Months Ended
March 31, |
|
|
2016 |
|
2015 |
Adjusted EBITDA
by Segment: |
|
|
|
|
Infusion Services Adjusted
EBITDA |
|
$ |
16,983 |
|
|
$ |
14,994 |
|
Adjusted EBITDA
margin % |
|
|
7.1 |
% |
|
|
6.1 |
% |
Corporate Overhead
Adjusted EBITDA |
|
|
(9,577 |
) |
|
|
(10,042 |
) |
Adjusted EBITDA
margin % |
|
|
(4.0 |
%) |
|
|
(4.1 |
%) |
|
|
|
|
|
Consolidated
Adjusted EBITDA |
|
|
7,406 |
|
|
|
4,952 |
|
Adjusted EBITDA
margin % |
|
|
3.1 |
% |
|
|
2.0 |
% |
|
|
|
|
|
Interest expense,
net |
|
|
(9,412 |
) |
|
|
(9,163 |
) |
Gain on sale of
property and equipment |
|
|
939 |
|
|
|
- |
|
Income tax expense |
|
|
(23 |
) |
|
|
(1,928 |
) |
Depreciation and
amortization expense |
|
|
(4,538 |
) |
|
|
(5,794 |
) |
Stock-based
compensation expense |
|
|
(1,474 |
) |
|
|
(1,657 |
) |
Restructuring,
integration, and other expenses, net (1) |
|
|
(2,667 |
) |
|
|
(3,704 |
) |
Loss from
continuing operations, net of income taxes |
|
$ |
(9,769 |
) |
|
$ |
(17,294 |
) |
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses on Face of Income Statement: |
|
|
|
|
Corporate overhead
adjusted EBITDA |
|
$ |
(9,577 |
) |
|
$ |
(10,042 |
) |
Stock-based
compensation expense |
|
|
(1,474 |
) |
|
|
(1,657 |
) |
General and
administrative expenses |
|
$ |
(11,051 |
) |
|
$ |
(11,699 |
) |
|
|
|
|
|
|
|
|
|
|
(1) Restructuring, integration and other expenses, net include
non-operating costs associated with restructuring and integration
initiatives such as employee severance costs, certain non-recurring
legal and professional fees, non-recurring training costs,
redundant wage costs, impacts recorded from the change in
contingent consideration obligations, and other non-recurring costs
related to contract terminations and closed branches/offices. |
|
Contact:
Lisa Wilson
In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com
BioPlus Acquisition (NASDAQ:BIOS)
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BioPlus Acquisition (NASDAQ:BIOS)
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From Apr 2023 to Apr 2024