ELMSFORD, N.Y., March 11, 2013 /PRNewswire/ -- BioScrip, Inc. (NASDAQ:BIOS) today announced 2012 fourth quarter financial results. Fourth quarter revenue from continuing operations was $180.7 million and the net loss from continuing operations was $1.4 million, or $0.03 per diluted share. Consolidated Adjusted EBITDA for the fourth quarter was $12.1 million, and consolidated adjusted earnings per diluted share for the fourth quarter was $0.04 per diluted share.
(Logo: http://photos.prnewswire.com/prnh/20130117/NY44138LOGO )
This quarter, the Company will also begin reporting adjusted earnings per diluted share ("Adjusted EPS"), which excludes the same elements in calculating Adjusted EBITDA (restructuring and other expenses, acquisition and integration expenses, stock-based compensation expense) as well as the impact of acquisition-related intangible amortization. Management believes that this non-GAAP financial measure provides useful supplemental information regarding the performance of our business operations and facilitates comparisons to our historical operating results.
As a result of the sale of the Company's traditional and specialty pharmacy mail operations and community retail pharmacy stores on May 4, 2012 (the "Pharmacy Services Asset Sale"), the Company's financial statements reflect the discontinued operations' results for the three months ended December 31, 2012 and 2011, and assets transferred in the transaction as of December 31, 2012 and 2011, separate from the continuing operations of the business. The remaining assets and liabilities of the divested business that were not transferred as a part of the Pharmacy Services Asset Sale are included in continuing operations.
Fourth Quarter Highlights
- Revenue from continuing operations increased by $22.5 million, or 14.2%, as compared to the prior year;
- Gross profit from continuing operations was $60.4 million, or 33.4% of revenue, as compared to $58.6 million, or 37.0% of revenue, in the prior year period;
- Adjusted EBITDA from continuing operations was $12.1 million, compared to $11.6 million in the third quarter, a 4.3% sequential quarter improvement, despite the impact of Hurricane Sandy on the Northeast market; and,
- Entered into a definitive agreement to acquire HomeChoice Partners, Inc. ("HomeChoice"), a majority-owned subsidiary of DaVita HealthCare Partners Inc. (NYSE:DVA).
"We are pleased to report solid fourth quarter performance. Our consolidated results reflect continued progress in the execution of our strategic goals and growth in our infusion business," said Rick Smith, President and Chief Executive Officer of BioScrip.
"Overall, 2012 was a year of positive progress and momentum for BioScrip. We accomplished a number of our key objectives towards repositioning the Company to focus on our infusion and home health businesses. In 2013, we will continue to build on our organic growth initiatives, which will be augmented with targeted acquisitions. The core drivers of organic growth will be delivering on our strong clinical programs, flexible go-to-market approach, and high-touch customer service model," concluded Smith.
Results of Operations
Fourth Quarter 2012 versus Fourth Quarter 2011
Revenue from continuing operations for the fourth quarter of 2012 totaled $180.7 million, compared to $158.3 million for the same period a year ago, an increase of $22.5 million or 14.2%. Infusion Services segment revenue was $135.6 million in the fourth quarter, as compared to $102.5 million for the same period in 2011. The 32.4% increase was driven primarily by overall volume growth as well as the addition of the InfuScience acquisition. Home Health Services segment revenue was $18.3 million for the fourth quarter of 2012, as compared to $17.2 million in the prior year quarter. The 6.5% increase was primarily the result of volume growth offset by the previously announced reimbursement reductions from Medicare and the state of Tennessee TennCare program. PBM Services segment revenue was $26.8 million for the fourth quarter of 2012, compared to $38.6 million for the prior year period. The decrease was due primarily to a decline in the funded PBM business and a reduction in discount card revenues.
Consolidated gross profit for the fourth quarter of 2012 was $60.4 million, or 33.4% of revenue, compared to $58.6 million, or 37.0% of revenue, for the fourth quarter of 2011. The increase in gross profit was the result of growth in the volume of Infusion Services segment revenues and growth in the Home Health Services business. The decline in gross profit margin percentage resulted primarily from a shift in the therapy mix in the Infusion Services segment, as well as a decrease in home health reimbursement rates from certain government payors.
During the fourth quarter of 2012, Infusion Services Segment Adjusted EBITDA was $11.0 million, or 8.1% of segment revenue, compared to $9.9 million, or 9.7% of segment revenue in the prior year quarter, and $9.9 million, or 7.9% of segment revenue in the third quarter of 2012.
The Home Health Services Segment Adjusted EBITDA in the fourth quarter of 2012 was $1.8 million, or 10.1% of segment revenue. This compares to Segment Adjusted EBITDA of $1.5 million, or 8.7% of segment revenue, in the comparable prior year period, and $1.4 million, or 8.1% of segment revenue in the third quarter of 2012. The PBM Services Segment Adjusted EBITDA was $6.3 million, or 23.5% of segment revenue, for the fourth quarter of 2012 compared to $9.3 million, or 24.0% of segment revenue, in the prior year quarter.
On a consolidated basis, BioScrip reported $12.1 million of Adjusted EBITDA during the fourth quarter of 2012, or 6.7% of total revenue, compared to $14.9 million, or 9.4% of total revenue, in the same period last year.
Interest expense in the fourth quarter of 2012 was $6.4 million compared to $6.2 million in the prior year period.
Income tax benefit for continuing operations in the fourth quarter was $1.8 million compared to an income tax expense of $2.8 million in the fourth quarter of 2011.
Net loss from continuing operations for the fourth quarter of 2012 was $1.4 million, or a loss of $0.03 per diluted share, compared to a net income of $2.6 million, or $0.05 per diluted share, for the fourth quarter of 2011.
Twelve Months Ended 2012 versus Twelve Months Ended 2011
Revenue from continuing operations for the twelve months ended December 31, 2012 totaled $662.6 million, compared to $554.5 million for the same period a year ago, a 19.5% increase. Infusion Services segment revenue was $481.6 million for the twelve months ended December 31, 2012, compared to $374.3 million for the same period in 2011. The 28.7% increase was driven primarily by an increase in volume growth and the InfuScience acquisition. Home Health Services segment revenue for the twelve months ended December 31, 2012 was $69.2 million, compared to $69.6 million in the prior year. The 0.6% decrease was primarily the result of reimbursement reductions as previously discussed. PBM Services segment revenue for the twelve months ended December 31, 2012 was $111.9 million, compared to $110.6 million for the prior year period. The 1.2% increase is primarily due to an increase in discount card program sales.
Consolidated gross profit for the twelve months ended December 31, 2012 was $225.0 million, or 33.9% of revenue, compared to $215.4 million, or 38.8% of revenue, in the comparable prior year period. The net increase in gross profit was due primarily to organic growth and the contribution from InfuScience. As previously disclosed, in connection with the Pharmacy Services Asset Sale, the Company provided certain lower margin services on behalf of key customers after the sale. Additionally, there was a substantial decrease in cross referrals of certain therapies from the specialty sales personnel affiliated with the divested business.
During the twelve months ended December 31, 2012, Infusion Services Segment Adjusted EBITDA was $36.8 million, or 7.6% of segment revenue, compared to $35.1 million, or 9.4% of segment revenue, in the prior year.
The Home Health Services Segment Adjusted EBITDA for the twelve months ended December 31, 2012 was $5.4 million, or 7.8% of segment revenue. This compares to Segment Adjusted EBITDA of $6.0 million, or 8.6% of segment revenue, in the prior year. The PBM Services Segment Adjusted EBITDA was $25.7 million, or 22.9% of segment revenue, for the twelve months ended December 31, 2012 compared to $30.1 million, or 27.2% of segment revenue, in the prior year.
On a consolidated basis, BioScrip reported $41.1 million of Adjusted EBITDA for the twelve months ended December 31, 2012, or 6.2% of total revenue, compared to $47.9 million, or 8.6% of total revenue, in the same period last year.
Interest expense for the twelve months ended December 31, 2012 was $26.1 million compared to $25.5 million in the prior year.
Income tax benefit for continuing operations for the twelve months ended December 31, 2012 was $4.4 million, compared to an income tax expense of $0.4 million in 2011.
Net loss from continuing operations for the twelve months ended December 31, 2012 was $8.3 million, or $0.15 per diluted share, compared to a net loss of $0.4 million, or $0.01 per diluted share, in the comparable prior year period.
Liquidity and Capital Resources
For the twelve months ended December 31, 2012, BioScrip generated $49.9 million in net cash from continuing operating activities, compared to $3.1 million generated from operating activities during the twelve months of 2011, an increase of $46.7 million. This increase was primarily due to the collection of accounts receivable retained after the Pharmacy Services Asset Sale, net of accounts payable paid related to those businesses. The Company's cash balance at the end of the fourth quarter was $62.1 million.
Outlook
Revenue in 2013 is projected to grow by 25% to 30% to a range of $830.0 million to $865.0 million and the Company is initially targeting 2013 Adjusted EBITDA of $67.0 million to $73.0 million. The range of Adjusted EBITDA reflects the on-going impact of Hurricane Sandy in the first quarter of 2013 as well as the estimated impact of competitive bidding. Additionally, revenue and Adjusted EBITDA for 2013 may be impacted by therapy mix, any lingering effects of Hurricane Sandy on the Northeast market beyond the first quarter, additional acquisitions, de novo activities, and the timing and earnings contribution from the integration of HomeChoice.
Conference Call
BioScrip will host a conference call to discuss its fourth quarter 2012 financial results on March 12, 2013 at 8:30 a.m. Eastern Time.
Interested parties may participate in the conference call by dialing 800-705-5308 (US), or 303-223-4377 (International), 5-10 minutes prior to the start of the call. 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 21648877. An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the BioScrip website at www.bioscrip.com.
About BioScrip, Inc.
BioScrip, Inc. provides comprehensive infusion and home care solutions. By partnering with patients, physicians, healthcare payors, government agencies and pharmaceutical manufacturers we are able to provide access to infusible medications and management solutions. Our goal is to optimize outcomes for chronic and other complex healthcare conditions and enhance the quality of patient life. BioScrip brings clinical competence in providing high-touch, comprehensive infusion and nursing services to patients in the most convenient ways possible. Through our customer services and treatments we aim to ensure the best possible therapy outcome.
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," "intend," "plan," "believe," "predict," "potential," "continue" or comparable terms. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and, because such statements inherently involve risks and uncertainties, actual results may differ materially from those in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to risks associated with: the Company's ability to grow its Infusion segment organically or through acquisitions and obtain financing in connection therewith; its ability to effectively integrate acquisitions; its ability to reduce operating costs while sustaining growth; reductions in federal, state and commercial payor 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, including the Company's annual report on Form 10-K for the year ended December 31, 2011. 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, 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, income tax expense, depreciation and amortization, stock-based compensation expense, acquisition and integration expenses, and restructuring and other expenses. As part of restructuring and other expenses, the Company may incur significant charges such as, but not limited to, 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 diluted share, excluding the same elements in calculating Adjusted EBITDA (restructuring and other expenses, acquisition and integration expenses, stock-based compensation expense) 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.
(Financial Tables Follow)
|
Schedule 1
|
|
BIOSCRIP, INC
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except for share amounts)
|
|
|
|
|
|
December 31, 2012
|
|
December 31, 2011
|
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$ 62,101
|
|
—
|
|
Receivables, less allowance for doubtful accounts of $22,212 and $22,728 at
December 31, 2012 and December 31, 2011, respectively
|
129,103
|
|
225,412
|
|
Inventory
|
34,034
|
|
17,997
|
|
Prepaid expenses and other current assets
|
10,189
|
|
10,184
|
|
Current assets from discontinued operations
|
—
|
|
38,876
|
|
Total current assets
|
235,427
|
|
292,469
|
|
Property and equipment, net
|
23,721
|
|
26,951
|
|
Goodwill
|
350,810
|
|
312,387
|
|
Intangible assets, net
|
17,446
|
|
19,622
|
|
Deferred financing costs
|
2,877
|
|
3,992
|
|
Investments in and advances to unconsolidated affiliate
|
10,042
|
|
—
|
|
Other non-current assets
|
2,053
|
|
1,552
|
|
Non-current assets from discontinued operations
|
—
|
|
20,129
|
|
Total assets
|
$ 642,376
|
|
677,102
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of long-term debt
|
$ 953
|
|
66,161
|
|
Accounts payable
|
34,438
|
|
79,155
|
|
Claims payable
|
7,411
|
|
11,766
|
|
Amounts due to plan sponsors
|
18,173
|
|
25,219
|
|
Accrued interest
|
5,803
|
|
5,825
|
|
Accrued expenses and other current liabilities
|
41,491
|
|
32,648
|
|
Total current liabilities
|
108,269
|
|
220,774
|
|
Long-term debt, net of current portion
|
225,426
|
|
227,298
|
|
Deferred taxes
|
10,291
|
|
10,295
|
|
Other non-current liabilities
|
4,981
|
|
3,456
|
|
Total liabilities
|
348,967
|
|
461,823
|
|
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; shares issued:
59,600,713 and 57,800,791, respectively; shares outstanding: 57,026,957 and
55,109,038, respectively
|
6
|
|
6
|
|
Treasury stock, shares at cost: 2,582,520 and 2,638,421, respectively
|
(10,311)
|
|
(10,461)
|
|
Additional paid-in capital
|
388,798
|
|
375,525
|
|
Accumulated deficit
|
(85,084)
|
|
(149,791)
|
|
Total stockholders' equity
|
293,409
|
|
215,279
|
|
Total liabilities and stockholders' equity
|
$ 642,376
|
|
$ 677,102
|
|
Schedule 2
|
|
BIOSCRIP, INC
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Product revenue
|
$ 132,785
|
|
$ 100,158
|
|
$ 471,506
|
|
$ 365,526
|
|
Service revenue
|
47,953
|
|
58,107
|
|
191,131
|
|
188,980
|
|
Total revenue
|
180,738
|
|
158,265
|
|
662,637
|
|
554,506
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
92,214
|
|
66,025
|
|
325,271
|
|
238,072
|
|
Cost of service revenue
|
28,131
|
|
33,642
|
|
112,406
|
|
101,019
|
|
Total cost of revenue
|
120,345
|
|
99,667
|
|
437,677
|
|
339,091
|
|
Gross profit
|
60,393
|
|
58,598
|
|
224,960
|
|
215,415
|
|
% of revenues
|
33.4%
|
|
37.0%
|
|
33.9%
|
|
38.8%
|
|
Selling, general and administrative expenses
|
49,087
|
|
42,971
|
|
184,491
|
|
167,136
|
|
Bad debt expense
|
3,358
|
|
3,073
|
|
14,035
|
|
11,441
|
|
Acquisition and integration expenses
|
2,241
|
|
—
|
|
4,046
|
|
—
|
|
Restructuring and other expenses
|
1,446
|
|
101
|
|
5,143
|
|
7,909
|
|
Amortization of intangibles
|
1,113
|
|
880
|
|
3,957
|
|
3,376
|
|
Income from operations
|
3,148
|
|
11,573
|
|
13,288
|
|
25,553
|
|
Interest expense, net
|
6,362
|
|
6,167
|
|
26,067
|
|
25,542
|
|
Net income (loss) from continuing operations, before income
taxes
|
(3,214)
|
|
5,406
|
|
(12,779)
|
|
11
|
|
Tax provision (benefit)
|
(1,795)
|
|
2,841
|
|
(4,439)
|
|
435
|
|
Net income (loss) from continuing operations, net of income
taxes
|
(1,419)
|
|
2,565
|
|
(8,340)
|
|
(424)
|
|
Net income (loss) from discontinued operations, net of income
taxes
|
8,599
|
|
4,144
|
|
73,047
|
|
8,296
|
|
Net income (loss)
|
$ 7,180
|
|
$ 6,709
|
|
$ 64,707
|
|
$ 7,872
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
|
56,922
|
|
54,972
|
|
56,239
|
|
54,505
|
|
Diluted weighted average shares
|
56,922
|
|
55,608
|
|
56,239
|
|
54,505
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share:
|
|
|
|
|
|
|
|
|
Basic loss from continuing operations
|
$ (0.03)
|
|
$ 0.05
|
|
$ (0.15)
|
|
$ (0.01)
|
|
Basic income (loss) from discontinued operations
|
$ 0.15
|
|
$ 0.07
|
|
$ 1.30
|
|
$ 0.15
|
|
Basic income (loss)
|
$ 0.12
|
|
$ 0.12
|
|
$ 1.15
|
|
$ 0.14
|
|
|
|
|
|
|
|
|
|
Diluted loss from continuing operations
|
$ (0.03)
|
|
$ 0.05
|
|
$ (0.15)
|
|
$ (0.01)
|
|
Diluted income (loss) from discontinued operations
|
$ 0.15
|
|
$ 0.07
|
|
$ 1.30
|
|
$ 0.15
|
|
Diluted income (loss)
|
$ 0.12
|
|
$ 0.12
|
|
$ 1.15
|
|
$ 0.14
|
|
Schedule 3
|
|
BIOSCRIP, INC
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
|
Years Ended December 31,
|
|
2012
|
|
2011
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss)
|
$ 64,707
|
|
$ 7,872
|
|
Less: Income from discontinued operations, net of income taxes
|
73,047
|
|
8,296
|
|
Loss from continuing operations, net of income taxes
|
(8,340)
|
|
(424)
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
|
8,513
|
|
6,591
|
|
Amortization of intangibles
|
3,957
|
|
3,376
|
|
Amortization of deferred financing costs
|
1,261
|
|
1,055
|
|
Change in deferred income tax
|
(4)
|
|
1,153
|
|
Compensation under stock-based compensation plans
|
6,122
|
|
4,467
|
|
Loss on disposal of fixed assets
|
156
|
|
201
|
|
Changes in assets and liabilities, net of acquired business:
|
|
|
|
|
Receivables, net of bad debt expense
|
101,230
|
|
(31,690)
|
|
Inventory
|
(15,249)
|
|
(2,497)
|
|
Prepaid expenses and other assets
|
3,726
|
|
11,211
|
|
Accounts payable
|
(48,200)
|
|
(1,659)
|
|
Claims payable
|
(4,354)
|
|
8,729
|
|
Amounts due to plan sponsors
|
(7,046)
|
|
5,437
|
|
Accrued interest
|
(22)
|
|
59
|
|
Accrued expenses and other liabilities
|
8,112
|
|
(2,945)
|
|
Net cash provided by (used in) operating activities from continuing operations
|
$ 49,862
|
|
$ 3,064
|
|
Net cash provided by (used in) operating activities from discontinued operations
|
(22,978)
|
|
23,905
|
|
Net cash provided by (used in) operating activities
|
$ 26,884
|
|
$ 26,969
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment, net
|
$ (10,986)
|
|
$ (7,853)
|
|
Cash consideration paid for asset acquisitions
|
(43,046)
|
|
(463)
|
|
Cash consideration paid to DS Pharmacy
|
(2,935)
|
|
—
|
|
Cash consideration paid for unconsolidated affiliate, net of cash acquired
|
(10,652)
|
|
—
|
|
Net cash provided by (used in) investing activities from continuing operations
|
(67,619)
|
|
(8,316)
|
|
Net cash provided by (used in) investing activities from discontinued operations
|
161,499
|
|
(1,591)
|
|
Net cash used in investing activities
|
$ 93,880
|
|
$ (9,907)
|
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings on line of credit
|
1,244,050
|
|
1,773,644
|
|
Repayments on line of credit
|
(1,307,872)
|
|
(1,791,058)
|
|
Repayments of capital leases
|
(3,278)
|
|
(2,635)
|
|
Deferred and other financing costs
|
—
|
|
(22)
|
|
Net proceeds from exercise of employee stock compensation plans
|
8,611
|
|
3,198
|
|
Surrender of stock to satisfy minimum tax withholding
|
(174)
|
|
(189)
|
|
Net cash provided by (used in) financing activities from continuing operations
|
(58,663)
|
|
(17,062)
|
|
Net cash provided by (used in) financing activities from discontinued operations
|
—
|
|
—
|
|
Net cash (used in) provided by financing activities
|
$ (58,663)
|
|
$ (17,062)
|
|
Net change in cash and cash equivalents
|
62,101
|
|
—
|
|
Cash and cash equivalents - beginning of period
|
—
|
|
—
|
|
Cash and cash equivalents - end of period
|
$ 62,101
|
|
—
|
|
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
Cash paid during the period for interest
|
$ 25,589
|
|
$ 27,528
|
|
Cash paid during the period for income taxes
|
$ 2,757
|
|
$ 1,042
|
|
DISCLOSURE OF NON-CASH TRANSACTIONS:
|
|
|
|
|
Capital lease obligations incurred to acquire property and equipment
|
$ 20
|
|
$ 6,631
|
|
Schedule 4
|
|
BIOSCRIP, INC
|
|
|
Reconciliation between GAAP and Non-GAAP Measures
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Results of Operations:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Infusion Services - product revenue
|
$ 132,785
|
|
$ 100,158
|
|
$ 471,506
|
|
$ 365,526
|
|
Infusion Services - service revenue
|
2,838
|
|
2,301
|
|
10,080
|
|
8,756
|
|
Total Infusion Services revenue
|
135,623
|
|
102,459
|
|
481,586
|
|
374,282
|
|
|
|
|
|
|
|
|
|
Home Health Services - service revenue
|
18,320
|
|
17,206
|
|
69,190
|
|
69,635
|
|
PBM Services - service revenue
|
26,795
|
|
38,600
|
|
111,861
|
|
110,589
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$ 180,738
|
|
$ 158,265
|
|
$ 662,637
|
|
$ 554,506
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment before corporate overhead:
|
|
|
|
|
|
|
|
|
Infusion Services
|
$ 11,024
|
|
$ 9,947
|
|
$ 36,764
|
|
$ 35,128
|
|
Home Health Services
|
1,844
|
|
1,498
|
|
5,401
|
|
5,954
|
|
PBM Services
|
6,292
|
|
9,274
|
|
25,659
|
|
30,122
|
|
Total Segment Adjusted EBITDA
|
19,160
|
|
20,719
|
|
67,824
|
|
71,204
|
|
|
|
|
|
|
|
|
|
Corporate overhead
|
(7,090)
|
|
(5,853)
|
|
(26,755)
|
|
(23,308)
|
|
Consolidated Adjusted EBITDA
|
12,070
|
|
14,866
|
|
41,069
|
|
47,896
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
(6,362)
|
|
(6,167)
|
|
(26,067)
|
|
(25,542)
|
|
Income tax (expense) benefit
|
1,795
|
|
(2,841)
|
|
4,439
|
|
(435)
|
|
Depreciation
|
(2,398)
|
|
(1,828)
|
|
(8,513)
|
|
(6,591)
|
|
Amortization of intangibles
|
(1,113)
|
|
(880)
|
|
(3,957)
|
|
(3,376)
|
|
Stock-based compensation expense
|
(1,724)
|
|
(484)
|
|
(6,122)
|
|
(4,467)
|
|
Acquisition and integration expenses
|
(2,241)
|
|
-
|
|
(4,046)
|
|
—
|
|
Restructuring and other expenses
|
(1,446)
|
|
(101)
|
|
(5,143)
|
|
(7,909)
|
|
Net (loss) income:
|
$ (1,419)
|
|
$ 2,565
|
|
$ (8,340)
|
|
$ (424)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 6,685
|
|
$ 4,826
|
|
Home Health Services
|
|
|
|
|
171
|
|
170
|
|
PBM Services
|
|
|
|
|
0
|
|
0
|
|
Corporate unallocated
|
|
|
|
|
4,130
|
|
2,857
|
|
Total
|
|
|
|
|
$ 10,986
|
|
$ 7,853
|
|
|
|
|
|
|
|
|
|
Depreciation Expense:
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 4,347
|
|
$ 5,242
|
|
Home Health Services
|
|
|
|
|
111
|
|
48
|
|
PBM Services
|
|
|
|
|
0
|
|
0
|
|
Corporate unallocated
|
|
|
|
|
4,055
|
|
1,301
|
|
Total
|
|
|
|
|
$ 8,513
|
|
$ 6,591
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 438,623
|
|
$ 353,999
|
|
Home Health Services
|
|
|
|
|
62,403
|
|
64,672
|
|
PBM Services
|
|
|
|
|
36,354
|
|
40,418
|
|
Corporate unallocated
|
|
|
|
|
95,813
|
|
24,348
|
|
Assets from discontinued operations
|
|
|
|
|
0
|
|
59,005
|
|
Assets associated with discontinued operations, not sold
|
|
|
|
|
9,183
|
|
134,660
|
|
Total
|
|
|
|
|
$ 642,376
|
|
$ 677,102
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
|
Infusion Services
|
|
|
|
|
$ 304,282
|
|
$ 265,859
|
|
Home Health Services
|
|
|
|
|
33,784
|
|
33,784
|
|
PBM Services
|
|
|
|
|
12,744
|
|
12,744
|
|
Total
|
|
|
|
|
$ 350,810
|
|
$ 312,387
|
|
Schedule 5
|
|
BIOSCRIP, INC
|
|
|
Reconciliation between GAAP and Non-GAAP Earnings Per Share
|
|
(in thousands)
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012 1,2
|
|
2011 3,4
|
|
2012 5,6
|
|
2011 7,8
|
|
Net income from continuing operations
|
$ (1,419)
|
|
$ 2,565
|
|
$ (8,340)
|
|
$ (424)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and other expenses
|
871
|
|
61
|
|
3,099
|
|
4,798
|
|
|
Acquisition and integration expenses
|
1,350
|
|
-
|
|
2,438
|
|
-
|
|
|
Amortization of intangibles
|
671
|
|
534
|
|
2,384
|
|
2,048
|
|
|
Compensation under stock-based compensation plans
|
1,039
|
|
294
|
|
3,689
|
|
2,710
|
|
Non-GAAP Net income from continuing operations
|
$ 2,512
|
|
$ 3,454
|
|
$ 3,270
|
|
$ 9,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations, basic and diluted
|
$ (0.03)
|
|
$ 0.05
|
|
$ (0.15)
|
|
$ (0.01)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and other related costs
|
0.02
|
|
-
|
|
0.06
|
|
0.09
|
|
|
Acquisition and integration expenses
|
0.02
|
|
-
|
|
0.04
|
|
-
|
|
|
Amortization of intangibles
|
0.01
|
|
0.01
|
|
0.04
|
|
0.04
|
|
|
Compensation under stock-based compensation plans
|
0.02
|
|
0.01
|
|
0.07
|
|
0.05
|
|
Non-GAAP earnings per share from continuing operations, basic and diluted
|
$ 0.04
|
|
$ 0.07
|
|
$ 0.06
|
|
$ 0.17
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic
|
56,922
|
|
54,972
|
|
56,239
|
|
54,505
|
|
Weighted average shares outstanding, diluted
|
57,948
|
|
55,608
|
|
57,001
|
|
55,150
|
|
Schedule 5
|
|
BIOSCRIP, INC
|
|
|
Reconciliation between GAAP and Non-GAAP Earnings Per Share
|
|
(in thousands)
|
|
|
|
(1)
|
For the three months ended December 31, 2012, 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, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was $575, $891, $442, and $685 respectively.
|
|
|
|
|
|
(2)
|
For the three months ended December 31, 2012, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate method. The tax expense per basic and diluted share netted against restructuring and other expenses, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was $(0.01), $(0.02), $(0.01), and $(0.01) per share, respectively.
|
|
|
|
|
|
|
(3)
|
For the three months ended December 31, 2011, 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, amortization of intangibles, and stock-based compensation expense was $40, $346, and $190, respectively.
|
|
|
|
|
|
(4)
|
For the three months ended December 31, 2011, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate method. The tax expense per basic and diluted share netted against restructuring and other expenses, amortization of intangibles, and stock-based compensation expense were $(0.00), $(0.01), and $(0.00) per share, respectively.
|
|
|
|
|
|
|
(5)
|
For the year ended December 31, 2012, 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, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was $2,044, $1,608, 1,573, and $2,433, respectively.
|
|
|
|
|
|
(6)
|
For the year ended December 31, 2012, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate method. The tax expense per basic and diluted share netted against restructuring and other expenses, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was $(0.04), $(0.03), $(0.03), and $(0.04) per share, respectively.
|
|
|
|
|
|
|
(7)
|
For the year ended December 31, 2011, 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, amortization of intangibles, and stock-based compensation expense was $3,111, $1,328, and $1,757, respectively.
|
|
|
|
|
|
(8)
|
For the year ended December 31, 2011, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate method. The tax expense per basic and diluted share netted against restructuring and other expenses, amortization of intangibles, and stock-based compensation expense were $(0.06), $(0.02), and $(0.03) per share, respectively.
|
|
|
|
SOURCE BioScrip, Inc.