BioScrip, Inc. (NASDAQ:BIOS) (“BioScrip” or the “Company”) today
announced financial results for the third quarter 2016. For the
third quarter, the Company reported revenue from continuing
operations of $224.5 million, net loss from continuing operations
of ($11.1) million and diluted EPS of ($0.12) loss per share.
Third Quarter Highlights
- Net revenue for the third quarter 2016 was $224.5 million, a
decrease year over year partly as a result of lower than expected
core sales volumes and partly as a result of anticipated revenue
declines in connection with the ongoing shift in revenue mix to a
greater percentage of core infusion revenue and less lower-margin
chronic infusion revenue. Home Solutions experienced double
digit year over year core revenue growth in 2016 prior to its
acquisition. The core revenues of Home Solutions and its
continued core growth will be accretive to the Company on a go
forward basis;
- Consolidated Loss from continuing operations, net of income
taxes was $(11.1) million, an improvement of $13.4 million compared
to the prior year third quarter consolidated loss from continuing
operations, net of income taxes of $(24.5) million. The year over
year reduction in loss was the result of a prior year third quarter
2015 non-cash goodwill impairment charge, which did not recur in
2016, partially offset by lower year over year revenues and higher
year over year operating expenses during the third quarter of 2016;
and
- Consolidated Adjusted EBITDA was $3.5 million for the third
quarter 2016, as compared to the $6.0 million consolidated Adjusted
EBITDA in the prior year third quarter. The year over year
$2.5 million decrease in consolidated Adjusted EBITDA resulted from
lower than expected core sales volumes combined with higher than
expected operating expenses during the third quarter of 2016.
Preparations for the integration of the Home Solutions acquisition
by the Company took a great deal of effort by management and staff
and in some respects took attention away from certain operating
processes of the Company leading up to the closing of the
transaction thus adversely impacting its operating results.
Daniel E. Greenleaf, President and Chief Executive Officer
stated, “I have just completed my first few weeks with the Company
and based on my initial review it is clear we have work ahead of
us. We are acutely focused on continuing to improve our
operating processes and deliver on our financial commitments.
I believe there is tremendous opportunity at the Company for
improved financial performance over the next 18 months. I have made
it clear to my leadership team and to the overall organization that
the top five priorities that we must deliberately execute upon are
driving profitable growth, delivering customer-centric service
excellence, enhancing employee effectiveness, optimizing
operational efficiencies, and exceeding cash collection
targets. Executing upon these five priorities drove the
tremendous financial successes and increases to shareholder value
at Coram and later at Home Solutions and I am confident that they
will drive similar outcomes at BioScrip.”
Furthermore, Mr. Greenleaf commented on the company’s third
quarter financial results stating, “We do not believe our third
quarter financial results are indicative of the financial
capability of the company and what we will achieve going
forward. We have already implemented a number of cost
reductions and performance changes at the Company in late September
and October. Those implemented changes include a substantive
workforce reduction to enhance our cost structure, renegotiated
supply chain arrangements to improve gross margins and re-alignment
of our sales organization which will result in core revenue
growth. We are confident these recent adjustments will be
beneficial to our fourth quarter financial results and will serve
to help form a solid base for our continued restructuring and
financial performance in 2017.”
The Company reconfirms its plan to achieve between $14 million
to $17 million in Home Solutions cost synergies over the next 12 to
18 months. Additionally, the Company is in the process of
finalizing its evaluation of an incrementally larger amount of
additional synergies over and above the $14 million to $17 million
of synergies initially identified which we also believe may be
achievable as incremental additional cost savings over the next 12
to 18 months.
Results of Operations
Third Quarter 2016 versus Prior Year Third Quarter
2015
Revenue from continuing operations for the third quarter of 2016
was $224.5 million, compared to $247.2 million in the third quarter
of 2015, a decrease of $22.7 million or 9.2%. This revenue decrease
was due in part to lower than expected core sales volumes and in
part the result of the Company’s previously announced shift in its
revenue mix to a greater percentage of core infusion revenue and
less lower-margin chronic infusion revenue.
Consolidated gross profit for the third quarter of 2016 was
$62.6 million, or 27.9% of revenue, up 150 basis points as a
percentage of revenue, compared to the prior year third quarter
2015 gross profit of $65.2 million, or 26.4% of revenue. The
improvement in gross profit percentage was the result of the
improved revenue mix year over year.
Consolidated Loss from continuing operations, net of income
taxes for the third quarter of 2016 was $11.1 million, representing
an improvement of $13.4 million versus the same period prior year
Consolidated Loss from continuing operations, net of income taxes
of $24.5 million. The year over year change was due to higher
operating expenses in the third quarter of 2016, offset by the
prior year third quarter 2015 non-cash goodwill impairment charge,
which did not recur in 2016.
Consolidated Adjusted EBITDA from continuing operations for the
third quarter of 2016 was $3.5 million, representing an decrease of
$2.5 million versus the same period prior year Consolidated
Adjusted EBITDA of $6.0 million. The decrease in Consolidated
Adjusted EBITDA resulted from lower than expected core revenues and
larger than expected year over year operating expenses incurred
during the third quarter of 2016.
2016 Guidance Update and Preliminary Guidance for
2017
In light of the Company’s third quarter results, the ongoing
integration work the Company is undertaking associated with the
Home Solutions acquisition, and the Company’s new leadership, which
has led to a comprehensive assessment of all operating processes,
the Company is lowering the prior financial guidance as to the full
year 2016 and the fourth quarter 2016 that it previously provided
on August 8, 2016. The updated full year 2016 guidance is
revenues in the range of $928 million to $934 million and adjusted
EBITDA in the range of $27 million to $29 million.
The Company is also providing preliminary guidance for full year
2017. The full year 2017 guidance is preliminary in nature
and subject to change given the new management team’s comprehensive
assessment of all operating processes which is currently
underway. Following the completion of this comprehensive
assessment process the Company will further update the preliminary
2017 guidance. The preliminary full year 2017 guidance is
revenues in the range of $940 million to $980 million and adjusted
EBITDA in the range of $50 million to $60 million.
Liquidity and Capital Resources
As of September 30, 2016, the Company had $34.2 million of
liquidity, which consists of $2.8 million of cash and $31.4 million
of undrawn capacity available on its revolving credit
facility.
The Company’s net Days Sales Outstanding (“DSO”) was 42 days at
September 30, 2016, consistent with the year ago third quarter 2015
net DSO.
Through the first nine months of 2016, the Company’s cash flows
from operations represent a net use of cash from operations
totaling $32.5 million, significantly lower than the $70.7 million
net use of cash during the same period last year. The $32.5
million use of cash from operations during the first nine months of
2016 includes the impact of over $8.3 million in cash used for
acquisition and restructuring matters.
As of September 30, 2016 the Company is in full compliance with
its bank covenants under the terms of the Amended Credit Agreement.
We anticipate we will not comply with the more restrictive debt
leverage covenant that will apply in the Amended Credit Agreement
beginning in 2017. We are proactively working with our
lenders and evaluating options for maintaining compliance,
including further amending our Amended Credit Agreement.
Conference Call and Presentation
BioScrip will host a conference call and live webcast, November
8, 2016, at 11:00 a.m. Eastern Time, to discuss its third quarter
2016 financial results. Interested parties may participate by
dialing 888-372-9592 (US) 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) and
entering conference call ID number 1061955. 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 the statements
regarding 2016 and preliminary 2017 guidance, projections of
certain measures of the Company's results of operations,
projections of future levels of certain charges and expenses,
expectations of Home Solutions cost synergies 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
successfully integrate the HS Infusion Holdings, Inc. business into
its existing businesses; 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; the
Company’s ability to evaluate opportunities for improvement and
implement solutions as part of its strategic review process; the
Company’s ability to comply with the covenants in its debt
agreements or obtain amendments to such covenants; 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.
Note Regarding Use of Non-GAAP Financial
MeasuresIn addition to reporting financial information 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. The
Company is not able to provide a reconciliation of projected
adjusted EBITDA, where provided, to expected results due to the
unknown effect, timing and potential significance of gains or
losses on disposition and restructuring, acquisition, integration
and other similar expenses.
TABLES TO FOLLOW
|
|
Schedule 1 |
|
BIOSCRIP, INC.
AND SUBSIDIARIES |
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS |
|
(in thousands, except for
share amounts) |
|
|
|
|
|
|
|
September
30, 2016 |
|
December
31, 2015 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash
equivalents |
$ |
2,835 |
|
|
$ |
15,577 |
|
|
Receivables, less
allowance for doubtful accounts of $51,072 and $59,689 at
September 30, 2016 and December 31, 2015, respectively |
|
103,688 |
|
|
|
97,353 |
|
|
Inventory |
|
33,380 |
|
|
|
42,983 |
|
|
Prepaid expenses and
other current assets |
|
19,462 |
|
|
|
27,772 |
|
|
Total current
assets |
|
159,365 |
|
|
|
183,685 |
|
|
Property and equipment, net |
|
33,710 |
|
|
|
31,939 |
|
|
Goodwill |
|
373,070 |
|
|
|
308,729 |
|
|
Intangible assets, net |
|
27,201 |
|
|
|
5,128 |
|
|
Other non-current assets |
|
2,055 |
|
|
|
1,161 |
|
|
Total
assets |
$ |
595,401 |
|
|
$ |
530,642 |
|
|
LIABILITIES AND STOCKHOLDERS'
DEFICIT |
|
|
|
|
Current
liabilities |
|
|
|
|
Current portion of
long-term debt |
$ |
48,189 |
|
|
$ |
24,380 |
|
|
Accounts payable |
|
45,700 |
|
|
|
65,077 |
|
|
Amounts due to plan
sponsors |
|
3,953 |
|
|
|
3,491 |
|
|
Accrued interest |
|
2,268 |
|
|
|
6,898 |
|
|
Accrued expenses and
other current liabilities |
|
40,804 |
|
|
|
52,918 |
|
|
Total current
liabilities |
|
140,914 |
|
|
|
152,764 |
|
|
Long-term debt, net of current
portion |
|
388,052 |
|
|
|
393,741 |
|
|
Deferred taxes |
|
773 |
|
|
|
236 |
|
|
Contingent consideration liability |
|
15,812 |
|
|
|
- |
|
|
Other non-current liabilities |
|
4,502 |
|
|
|
1,861 |
|
|
Total
liabilities |
|
550,053 |
|
|
|
548,602 |
|
|
|
|
|
|
|
Series A convertible
preferred stock, $.0001 par value; 825,000 shares authorized; |
|
2,386 |
|
|
|
62,918 |
|
|
21,645 and 635,822
shares issued and outstanding; and, $2,530 and $69,702 |
|
|
|
|
liquidation
preference as of September 30, 2016 and December 31, 2015,
respectively |
|
|
|
|
Series C convertible
preferred stock, $.0001 par value; 625,000 shares authorized; |
|
67,242 |
|
|
|
- |
|
|
614,177 shares
issued and outstanding; and $73,365 liquidation preference as
of |
|
|
|
|
September 30,
2016 |
|
|
|
|
Stockholders'
equity |
|
|
|
|
Preferred stock,
$.0001 par value; 4,175,000 shares authorized; no shares issued
and |
|
- |
|
|
|
- |
|
|
outstanding as of
September 30, 2016 and December 31, 2015, respectively |
|
|
|
|
Common stock, $.0001 par
value; 125,000,000 shares authorized; 117,682,543 and |
|
12 |
|
|
|
8 |
|
|
71,421,664 shares
issued and 117,682,543 and 68,767,613 shares outstanding as of |
|
|
|
|
September 30, 2016
and December 31, 2015, respectively |
|
|
|
|
Treasury stock, no shares
outstanding as of September 30, 2016 and 2,654,051 shares
outstanding, at cost, as of December 31, 215 |
|
- |
|
|
|
(10,737 |
) |
|
Additional paid-in
capital |
|
606,656 |
|
|
|
531,764 |
|
|
Accumulated deficit |
|
(630,948 |
) |
|
|
(601,913 |
) |
|
Total
stockholders' deficit |
|
(24,280 |
) |
|
|
(80,878 |
) |
|
Total liabilities
and stockholders' deficit |
$ |
595,401 |
|
|
$ |
530,642 |
|
|
|
|
|
|
|
|
|
Schedule 2 |
|
BIOSCRIP, INC. AND SUBSIDIARIES |
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue |
|
|
$ |
224,542 |
|
|
$ |
247,224 |
|
|
$ |
695,466 |
|
|
$ |
738,478 |
|
|
Cost of revenue
(excluding depreciation expense) |
|
|
|
161,957 |
|
|
|
181,991 |
|
|
|
504,485 |
|
|
|
543,472 |
|
|
Gross
profit |
|
|
|
62,585 |
|
|
|
65,233 |
|
|
|
190,981 |
|
|
|
195,006 |
|
|
% of revenues |
|
|
|
27.9 |
% |
|
|
26.4 |
% |
|
|
27.5 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
expenses |
|
|
|
42,729 |
|
|
|
42,155 |
|
|
|
123,006 |
|
|
|
127,120 |
|
|
Bad debt expense |
|
|
|
7,727 |
|
|
|
9,366 |
|
|
|
19,598 |
|
|
|
32,832 |
|
|
General and
administrative expenses |
|
|
|
9,948 |
|
|
|
8,547 |
|
|
|
30,413 |
|
|
|
31,881 |
|
|
Impairment of
goodwill |
|
|
|
- |
|
|
|
13,850 |
|
|
|
- |
|
|
|
251,850 |
|
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
|
2,368 |
|
|
|
5,368 |
|
|
|
9,326 |
|
|
|
15,041 |
|
|
Depreciation and
amortization expense |
|
|
|
4,166 |
|
|
|
5,473 |
|
|
|
12,956 |
|
|
|
17,517 |
|
|
Interest expense,
net |
|
|
|
9,331 |
|
|
|
9,506 |
|
|
|
28,212 |
|
|
|
27,750 |
|
|
Gain on disposition of
property and equipment |
|
|
|
(3,015 |
) |
|
|
(2 |
) |
|
|
(3,954 |
) |
|
|
(5 |
) |
|
Loss from
continuing operations,
before income taxes |
|
|
|
(10,669 |
) |
|
|
(29,030 |
) |
|
|
(28,576 |
) |
|
|
(308,980 |
) |
|
Income tax expense
(benefit) |
|
|
|
421 |
|
|
|
(4,551 |
) |
|
|
593 |
|
|
|
(22,544 |
) |
|
Loss from
continuing operations, net of income taxes |
|
|
|
(11,090 |
) |
|
|
(24,479 |
) |
|
|
(29,169 |
) |
|
|
(286,436 |
) |
|
Income (loss) from
discontinued operations, net of income taxes |
|
|
|
(174 |
) |
|
|
7,698 |
|
|
|
134 |
|
|
|
5,172 |
|
|
Net
loss |
|
|
$ |
(11,264 |
) |
|
$ |
(16,781 |
) |
|
$ |
(29,035 |
) |
|
$ |
(281,264 |
) |
|
Accrued dividends on
preferred stock |
|
|
|
(2,138 |
) |
|
|
(1,899 |
) |
|
|
(6,192 |
) |
|
|
(4,157 |
) |
|
Deemed dividend on
preferred stock |
|
|
|
(173 |
) |
|
|
(169 |
) |
|
|
(518 |
) |
|
|
(3,519 |
) |
|
Loss
attributable to common stockholders |
|
|
$ |
(13,575 |
) |
|
$ |
(18,849 |
) |
|
$ |
(35,745 |
) |
|
$ |
(288,940 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator - Basic and
Diluted: |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
114,826 |
|
|
|
68,742 |
|
|
|
85,701 |
|
|
|
68,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations, basic and diluted |
|
|
$ |
(0.12 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.42 |
) |
|
$ |
(4.28 |
) |
|
Income from
discontinued operations, basic and diluted |
|
|
|
- |
|
|
|
0.11 |
|
|
|
- |
|
|
|
0.08 |
|
|
Loss per common
share, basic and diluted |
|
|
$ |
(0.12 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.42 |
) |
|
$ |
(4.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3 |
|
BIOSCRIP, INC AND SUBSIDIARIES |
|
CONSOLIDATED CONDENSED CASH
FLOWS |
|
(in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
|
3/31/2015 |
|
6/30/2015 |
|
9/30/2015 |
|
9/30/2015 |
|
3/31/2016 |
|
6/30/2016 |
|
9/30/2016 |
|
9/30/2016 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations |
$ |
(17,056 |
) |
|
$ |
(244,901 |
) |
|
$ |
(24,479 |
) |
|
$ |
(286,436 |
) |
|
$ |
(9,768 |
) |
|
$ |
(8,311 |
) |
|
$ |
(11,090 |
) |
|
$ |
(29,169 |
) |
|
Receivables, net of bad
debt expense |
|
799 |
|
|
|
7,134 |
|
|
|
(4,310 |
) |
|
|
3,623 |
|
|
|
(4,417 |
) |
|
|
3,136 |
|
|
|
8,001 |
|
|
|
6,720 |
|
|
Inventory |
|
(4,666 |
) |
|
|
(483 |
) |
|
|
15,477 |
|
|
|
10,328 |
|
|
|
13,867 |
|
|
|
(3,330 |
) |
|
|
2,265 |
|
|
|
12,802 |
|
|
Prepaid expenses and
other assets |
|
(854 |
) |
|
|
163 |
|
|
|
(2,695 |
) |
|
|
(3,386 |
) |
|
|
7,897 |
|
|
|
(7,575 |
) |
|
|
8,839 |
|
|
|
9,161 |
|
|
Accounts payable |
|
995 |
|
|
|
(13,723 |
) |
|
|
(23,094 |
) |
|
|
(35,822 |
) |
|
|
(11,995 |
) |
|
|
(4,195 |
) |
|
|
(15,058 |
) |
|
|
(31,248 |
) |
|
Accrued interest |
|
(4,585 |
) |
|
|
4,437 |
|
|
|
(4,438 |
) |
|
|
(4,586 |
) |
|
|
(4,630 |
) |
|
|
4,438 |
|
|
|
(4,437 |
) |
|
|
(4,629 |
) |
|
Accrued expenses and
other liabilities |
|
(11,200 |
) |
|
|
1,267 |
|
|
|
24 |
|
|
|
(9,909 |
) |
|
|
(2,227 |
) |
|
|
(851 |
) |
|
|
(4,302 |
) |
|
|
(7,380 |
) |
|
Non-Cash
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
5,794 |
|
|
|
6,247 |
|
|
|
5,476 |
|
|
|
17,517 |
|
|
|
4,538 |
|
|
|
4,252 |
|
|
|
4,166 |
|
|
|
12,956 |
|
|
Impairment of
goodwill |
|
- |
|
|
|
238,000 |
|
|
|
13,850 |
|
|
|
251,850 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Deferred Taxes |
|
1,927 |
|
|
|
(17,761 |
) |
|
|
(5,374 |
) |
|
|
(21,208 |
) |
|
|
174 |
|
|
|
178 |
|
|
|
184 |
|
|
|
536 |
|
|
Other Non-Cash |
|
2,219 |
|
|
|
2,081 |
|
|
|
3,043 |
|
|
|
7,343 |
|
|
|
1,589 |
|
|
|
1,554 |
|
|
|
(5,342 |
) |
|
|
(2,199 |
) |
|
Operating Cash
Flow (Use) |
|
(26,627 |
) |
|
|
(17,539 |
) |
|
|
(26,520 |
) |
|
|
(70,686 |
) |
|
|
(4,972 |
) |
|
|
(10,704 |
) |
|
|
(16,774 |
) |
|
|
(32,450 |
) |
|
Discontinued
operations |
|
(1,421 |
) |
|
|
(573 |
) |
|
|
28,430 |
|
|
|
26,436 |
|
|
|
(5,989 |
) |
|
|
76 |
|
|
|
(175 |
) |
|
|
(6,088 |
) |
|
Capital expenditures |
|
(2,063 |
) |
|
|
(3,734 |
) |
|
|
(4,349 |
) |
|
|
(10,146 |
) |
|
|
(2,429 |
) |
|
|
(3,037 |
) |
|
|
(2,578 |
) |
|
|
(8,044 |
) |
|
Proceeds from
dispositions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,105 |
|
|
|
27 |
|
|
|
3,045 |
|
|
|
4,177 |
|
|
Preferred stock and
warrants |
|
58,951 |
|
|
|
- |
|
|
|
740 |
|
|
|
59,691 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Common stock raise,
net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
83,267 |
|
|
|
- |
|
|
|
83,267 |
|
|
Home Solutions
Acquisition |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(67,516 |
) |
|
|
(67,516 |
) |
|
Term note
(repayments) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,137 |
) |
|
|
(3,137 |
) |
|
|
(3,137 |
) |
|
|
(9,411 |
) |
|
Revolver borrowing
(repayments) |
|
(5,000 |
) |
|
|
- |
|
|
|
30,000 |
|
|
|
25,000 |
|
|
|
8,000 |
|
|
|
(23,000 |
) |
|
|
39,000 |
|
|
|
24,000 |
|
|
Deferred financing costs
and other |
|
(1,365 |
) |
|
|
(229 |
) |
|
|
- |
|
|
|
(1,594 |
) |
|
|
(104 |
) |
|
|
(118 |
) |
|
|
(455 |
) |
|
|
(677 |
) |
|
Total All Cash
Flow (Use) |
$ |
22,475 |
|
|
$ |
(22,075 |
) |
|
$ |
28,301 |
|
|
$ |
28,701 |
|
|
$ |
(7,526 |
) |
|
$ |
43,374 |
|
|
$ |
(48,590 |
) |
|
$ |
(12,742 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4 |
|
BIOSCRIP, INC. AND SUBSIDIARIES |
|
|
|
QUARTERLY
RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended
September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Adjusted EBITDA
by Segment: |
|
|
|
|
|
|
|
|
|
Infusion Services Adjusted
EBITDA |
|
$ |
12,129 |
|
|
$ |
13,712 |
|
|
$ |
48,377 |
|
|
$ |
35,054 |
|
|
Adjusted EBITDA margin
% |
|
|
5.4 |
% |
|
|
5.5 |
% |
|
|
7.0 |
% |
|
|
4.7 |
% |
|
Corporate Overhead
Adjusted EBITDA |
|
|
(8,590 |
) |
|
|
(7,715 |
) |
|
|
(27,066 |
) |
|
|
(28,230 |
) |
|
Adjusted EBITDA margin
% |
|
|
(3.8 |
%) |
|
|
(3.1 |
%) |
|
|
(3.9 |
%) |
|
|
(3.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted EBITDA |
|
|
3,539 |
|
|
|
5,997 |
|
|
|
21,311 |
|
|
|
6,824 |
|
|
Adjusted EBITDA margin
% |
|
|
1.6 |
% |
|
|
2.4 |
% |
|
|
3.1 |
% |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(9,331 |
) |
|
|
(9,506 |
) |
|
|
(28,212 |
) |
|
|
(27,750 |
) |
|
Gain on dispositions of
property and equipment |
|
|
3,015 |
|
|
|
2 |
|
|
|
3,954 |
|
|
|
5 |
|
|
Income tax (provision)
benefit |
|
|
(421 |
) |
|
|
4,551 |
|
|
|
(593 |
) |
|
|
22,544 |
|
|
Depreciation and
amortization expense |
|
|
(4,166 |
) |
|
|
(5,473 |
) |
|
|
(12,956 |
) |
|
|
(17,517 |
) |
|
Stock-based
compensation expense |
|
|
(1,358 |
) |
|
|
(832 |
) |
|
|
(3,347 |
) |
|
|
(3,651 |
) |
|
Impairment of
goodwill |
|
|
- |
|
|
|
(13,850 |
) |
|
|
- |
|
|
|
(251,850 |
) |
|
Restructuring,
acquisition, integration, and other expenses, net (1) |
|
|
(2,368 |
) |
|
|
(5,368 |
) |
|
|
(9,326 |
) |
|
|
(15,041 |
) |
|
Loss from
continuing operations, net of income taxes |
|
$ |
(11,090 |
) |
|
$ |
(24,479 |
) |
|
$ |
(29,169 |
) |
|
$ |
(286,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses on Face of Income Statement: |
|
|
|
|
|
|
|
|
|
Corporate overhead
adjusted EBITDA |
|
$ |
(8,590 |
) |
|
$ |
(7,715 |
) |
|
$ |
(27,066 |
) |
|
$ |
(28,230 |
) |
|
Stock-based
compensation expense |
|
|
(1,358 |
) |
|
|
(832 |
) |
|
|
(3,347 |
) |
|
|
(3,651 |
) |
|
General and
administrative expenses |
|
$ |
(9,948 |
) |
|
$ |
(8,547 |
) |
|
$ |
(30,413 |
) |
|
$ |
(31,881 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Nine Months Ended |
|
|
|
3/31/2016 |
|
6/30/2016 |
|
9/30/2016 |
|
9/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenue |
|
$ |
238,462 |
|
|
$ |
232,462 |
|
|
$ |
224,542 |
|
|
$ |
695,466 |
|
|
Cost of revenue
(excluding depreciation expense) |
|
|
174,230 |
|
|
|
168,298 |
|
|
|
161,957 |
|
|
|
504,485 |
|
|
Gross
profit |
|
|
64,232 |
|
|
|
64,164 |
|
|
|
62,585 |
|
|
|
190,981 |
|
|
% of revenues |
|
|
26.9 |
% |
|
|
27.6 |
% |
|
|
27.9 |
% |
|
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other operating
expenses |
|
|
39,658 |
|
|
|
40,619 |
|
|
|
42,729 |
|
|
|
123,006 |
|
|
Bad debt expense |
|
|
7,592 |
|
|
|
4,279 |
|
|
|
7,727 |
|
|
|
19,598 |
|
|
General and
administrative expenses |
|
|
11,051 |
|
|
|
9,414 |
|
|
|
9,948 |
|
|
|
30,413 |
|
|
Impairment of
goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
2,667 |
|
|
|
4,291 |
|
|
|
2,368 |
|
|
|
9,326 |
|
|
Depreciation and
amortization expense |
|
|
4,538 |
|
|
|
4,252 |
|
|
|
4,166 |
|
|
|
12,956 |
|
|
Interest expense,
net |
|
|
9,412 |
|
|
|
9,469 |
|
|
|
9,331 |
|
|
|
28,212 |
|
|
Gain on disposition of
property and equipment |
|
|
(939 |
) |
|
|
- |
|
|
|
(3,015 |
) |
|
|
(3,954 |
) |
|
Loss from
continuing operations,
before income taxes |
|
|
(9,747 |
) |
|
|
(8,160 |
) |
|
|
(10,669 |
) |
|
|
(28,576 |
) |
|
Income tax expense
(benefit) |
|
|
23 |
|
|
|
149 |
|
|
|
421 |
|
|
|
593 |
|
|
Loss from
continuing operations, net of income taxes |
|
|
(9,770 |
) |
|
|
(8,309 |
) |
|
|
(11,090 |
) |
|
|
(29,169 |
) |
|
Income from discontinued
operations, net of income taxes |
|
|
233 |
|
|
|
75 |
|
|
|
(174 |
) |
|
|
134 |
|
|
Net
loss |
|
$ |
(9,537 |
) |
|
$ |
(8,234 |
) |
|
$ |
(11,264 |
) |
|
$ |
(29,035 |
) |
|
Accrued dividends on
preferred stock |
|
|
(1,998 |
) |
|
|
(2,056 |
) |
|
|
(2,138 |
) |
|
|
(6,192 |
) |
|
Deemed dividends on
preferred stock |
|
|
(172 |
) |
|
|
(173 |
) |
|
|
(173 |
) |
|
|
(518 |
) |
|
Loss
attributable to common stockholders |
|
$ |
(11,707 |
) |
|
$ |
(10,463 |
) |
|
$ |
(13,575 |
) |
|
$ |
(35,745 |
) |
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share: |
|
|
|
|
|
|
|
|
|
Denominator - Basic and
Diluted: |
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
68,771 |
|
|
|
73,186 |
|
|
|
114,826 |
|
|
|
85,701 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations, basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
Income from
discontinued operations, basic and diluted |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net loss per
common share, basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
43,313 |
|
|
|
42,155 |
|
|
|
38,878 |
|
|
|
165,962 |
|
|
Bad debt expense |
|
|
8,346 |
|
|
|
15,165 |
|
|
|
9,366 |
|
|
|
8,210 |
|
|
|
41,087 |
|
|
General and
administrative expenses |
|
|
11,699 |
|
|
|
11,866 |
|
|
|
8,547 |
|
|
|
10,643 |
|
|
|
42,755 |
|
|
Impairment of
goodwill |
|
|
- |
|
|
|
238,000 |
|
|
|
13,850 |
|
|
|
- |
|
|
|
251,850 |
|
|
Restructuring,
acquisition, integration, and other expenses, net |
|
|
3,704 |
|
|
|
5,969 |
|
|
|
5,368 |
|
|
|
9,363 |
|
|
|
24,404 |
|
|
Depreciation and
amortization expense |
|
|
5,794 |
|
|
|
6,247 |
|
|
|
5,473 |
|
|
|
5,226 |
|
|
|
22,740 |
|
|
Interest expense,
net |
|
|
9,163 |
|
|
|
9,080 |
|
|
|
9,504 |
|
|
|
9,568 |
|
|
|
37,315 |
|
|
Loss from
continuing operations,
before income taxes |
|
|
(15,367 |
) |
|
|
(264,822 |
) |
|
|
(29,030 |
) |
|
|
(15,979 |
) |
|
|
(325,198 |
) |
|
Income tax expense
(benefit) |
|
|
1,928 |
|
|
|
(19,921 |
) |
|
|
(4,551 |
) |
|
|
1,012 |
|
|
|
(21,532 |
) |
|
Loss from
continuing operations, net of income taxes |
|
|
(17,295 |
) |
|
|
(244,901 |
) |
|
|
(24,479 |
) |
|
|
(16,991 |
) |
|
|
(303,666 |
) |
|
(Loss) Income from
discontinued operations, net of income taxes |
|
|
(2,379 |
) |
|
|
94 |
|
|
|
7,698 |
|
|
|
(1,451 |
) |
|
|
3,962 |
|
|
Net
loss |
|
$ |
(19,674 |
) |
|
$ |
(244,807 |
) |
|
$ |
(16,781 |
) |
|
$ |
(18,442 |
) |
|
$ |
(299,704 |
) |
|
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 |
) |
|
$ |
(248,798 |
) |
|
$ |
(18,849 |
) |
|
$ |
(20,576 |
) |
|
$ |
(309,514 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.28 |
) |
|
$ |
(4.56 |
) |
|
Income from
discontinued operations, basic and diluted |
|
|
- |
|
|
|
- |
|
|
|
0.11 |
|
|
|
(0.02 |
) |
|
|
0.05 |
|
|
Net loss per
common share, basic and diluted |
|
$ |
(0.28 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.30 |
) |
|
$ |
(4.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jeffrey M. Kreger
Chief Financial Officer
(720) 697-5200
Jeffrey.kreger@bioscrip.com
BioPlus Acquisition (NASDAQ:BIOS)
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From Mar 2024 to Apr 2024
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From Apr 2023 to Apr 2024