BioScrip Announces Meeting with Investors
March 27 2017 - 9:00AM
BioScrip, Inc. (NASDAQ:BIOS) ("BioScrip" or the "Company"), a
leading national provider of infusion and home care management
solutions, today announced members of management will be meeting
with analysts and investors in New York City and Boston, on March
28-March 29, 2017. In conjunction with these meetings, the
Company is publishing an updated investor presentation to the
investor relations section of the Company’s website.
In the presentation, management reiterates its 2017 adjusted
EBITDA forecast of $45.0 million to $55.0 million. First
quarter 2017 adjusted EBITDA is anticipated to be lower year over
year reflecting the rollout by the Company of Cures Act legislation
mitigation measures, which were fully implemented by late January
2017. The reiteration of the company’s adjusted EBITDA
outlook for the year reflects the recent termination by the Company
of its contract with UnitedHealthcare, which will become effective
September 30, 2017. Although UnitedHealthcare was the
Company’s largest payor, accounting for 24% of 2016 revenue, the
contract was not profitable and its termination is expected to have
a positive impact on adjusted EBITDA outlook going forward.
“We continue to leverage our CORE initiative to accelerate the
growth of our profitable business segments and improve operational
efficiencies throughout the organization,” said Daniel E.
Greenleaf, President and Chief Executive Officer. “It is difficult
to end a relationship with a business partner, but in this
circumstance, we believe our business needs do not align. The exit
of this contract is consistent with our CORE initiative and better
positions BioScrip for improved operating results going
forward.”
About BioScrip
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 Harbor
This press release includes statements that may constitute
"forward-looking statements,” that involve substantial risks and
uncertainties, including the statements regarding 2017 guidance,
the anticipated effects of the UnitedHealthcare contract
termination and other statements regarding the Company’s plans and
strategies. 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 the acquisition of Home
Solutions, the Company's ability to grow its core Infusion
revenues, the Company's ability to continue to experience positive
results from its financial improvement plan to reduce operating
costs; the Company’s ability to comply with the covenants in its
debt agreements; the UnitedHealthcare contract termination,
including potential accounting charges and impacts on other
contract provisions and their associated revenue; the success of
the Company’s initiatives to mitigate the impact of the Cures Act
on its business; 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
Measures
This press release includes projected 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. The Company’s March 3, 2017
earnings release provides a reconciliation of projected adjusted
EBITDA to expected results.
For Further Information:
Investor Contacts
Jeffrey M. Kreger
Chief Financial Officer
(720) 697-5200
jeffrey.kreger@bioscrip.com
David Clair
ICR, Inc.
(646) 277-1266
david.clair@icrinc.com
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