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BioScrip Reports Fourth Quarter and Full Year 2018 Financial Results

By GlobeNewswire,  March 15, 2019, 07:01:00 AM EDT


DENVER, March 15, 2019 (GLOBE NEWSWIRE) -- BioScrip, Inc. (NASDAQ:BIOS) ("BioScrip" or the "Company"), the largest independent national provider of infusion and home care management solutions, today announced its fourth quarter and full year 2018 financial results.                                                                    

Fourth Quarter 2018 Highlights

  • Net revenue of $183.6 million, up 2.8% compared to $178.5 million in the fourth quarter of 2017, on a comparable ASC 606 basis.
  • The company recorded a bad debt adjustment which reduced both net revenue and adjusted EBITDA by $7.5 million.
  • Net revenue year over year growth of 7.8%, excluding bad debt expense of $13.3 million and $4.0 million from both current and prior year net revenue.
  • Net loss from continuing operations of $15.4 million, compared to $1.7 million in the prior year.
  • Adjusted EBITDA of $11.6 million, or $19.1 million before the $7.5 million bad debt adjustment, compared to $17.1 million in the prior year quarter.
  • Liquidity of $14.5 million at December 31, 2018, consisting of cash and cash equivalents.

2018 Highlights

  • Net revenue of $708.9 million, compared to $793.5 million in 2017, on a comparable ASC 606 basis.
  • Net loss from continuing operations of $51.6 million, compared to $63.3 million in 2017.
  • Adjusted EBITDA of $45.1 million, or $52.6 million before the bad debt expense adjustment of $7.5 million, compared to $45.0 million in the prior year.

Daniel E. Greenleaf, President and Chief Executive Officer, commented, "BioScrip delivered record comparable net revenue growth of almost 8% in the fourth quarter of 2018.  Excluding the bad debt adjustment, we achieved adjusted EBITDA of $52.6 million for the year, which was slightly below the low-end of our expectations due to slower than anticipated revenue growth in the month of December.  However, we commenced 2019 on a very strong note, with gross revenue growth of approximately 9% in both January and February, and March gross revenue to date trending at similar levels." 

Mr. Greenleaf continued, "This morning BioScrip and Option Care jointly announced a definitive merger agreement, which will create the nation's preeminent home infusion company and transform the industry.  The combined company will have a national footprint of more than 150 locations in 46 states and revenue exceeding $2.6 billion, as well as improved financial strength and flexibility through an optimized capital structure.  We are extremely excited about the value this combination will create for all of our combined stakeholders and patients and look forward to closing the transaction."    

Financial Guidance

Given the pending combination announced today with Option Care, the Company will not be providing updated 2019 BioScrip financial guidance.

Conference Call and Presentation

BioScrip will host a conference call and live webcast on March 15, 2019, at 9:00 a.m. Eastern Time, to discuss the definitive merger agreement with Option Care as well as its fourth quarter and full year 2018 financial results.  Interested parties may participate by dialing 877-423-9820 (U.S.) or by accessing a link under the "Investors" section on the Company's website at www.bioscrip.com.   

A copy of the merger agreement investor presentation will be available under the "Investors" section of the Company's website at www.bioscrip.com.

An audio webcast and archive will be available within two hours of the call's completion under the "Investors" section of the Company's website.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

BioScrip, Inc. ("BioScrip" or the "Company") will file with the Securities and Exchange Commission ("SEC") a proxy statement in connection with the proposed transaction. The proxy statement will contain important information about the proposed transaction and related matters.  INVESTORS AND SECURITY HOLDERS ARE URGED AND ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.  The proxy statement and other relevant materials (when they become available) and any other documents filed by the Company with the SEC may be obtained free of charge at the SEC's website, at www.sec.gov.  In addition, security holders will be able to obtain free copies of the proxy statement and other relevant materials from the Company by contacting Investor Relations by mail at 1600 Broadway, Suite 700, Denver, CO 80202, Attn: Investor Relations, by telephone at (720) 697-5200, or by going to the Company's Investor Relations page on its corporate web site at https://investors.bioscrip.com.

PARTICIPANTS IN THE SOLICITATION

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the matters discussed above. Information about the Company's directors and executive officers is set forth in the Proxy Statement on Schedule 14A for the Company's 2018 annual meeting of stockholders, which was filed with the SEC on April 4, 2018.  This document can be obtained free of charge from the sources indicated above.  Information regarding the ownership of the Company's directors and executive officers in the Company's securities is included in the Company's SEC filings on Forms 3, 4, and 5, which can be found through the SEC's website at www.sec.gov.  Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the preliminary proxy statement and the definitive proxy statement and other relevant materials to be filed with the SEC when they become available.

About BioScrip, Inc.

BioScrip, Inc. is the largest independent national provider of infusion and home care management solutions, with approximately 2,100 teammates and nearly 70 service locations across the U.S. BioScrip partners with physicians, hospital systems, payors, pharmaceutical manufacturers and skilled nursing facilities 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.

Investor Contacts

Stephen Deitsch                                                                               

Chief Financial Officer & Treasurer                                        

T:  (720) 697-5200                                                                        

stephen.deitsch@bioscrip.com                                                

Kalle Ahl, CFA

The Equity Group

T:  (212) 836-9614

kahl@equityny.com 

Forward-Looking Statements - Safe Harbor

This communication, in addition to historical information, contains "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of BioScrip and Option Care. All statements other than statements of historical facts are forward-looking statements.  In addition, words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or the negative of these words, and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. Forward-looking statements relating to the proposed transaction include, but are not limited to: statements about the benefits of the proposed transaction between BioScrip and Option Care, including future financial and operating results; BioScrip's and Option Cares plans, objectives, expectations and intentions; the expected timing of completion of the proposed transaction; and other statements relating to the acquisition that are not historical facts. Forward-looking statements are based on information currently available to BioScrip and Option Care and involve estimates, expectations and projections. Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties (both known and unknown), and many factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the proposed transaction between BioScrip and Option Care, these factors could include, but are not limited to: the risk that BioScrip or Option Care may be unable to obtain governmental and regulatory approvals required for the transaction, or that required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could reduce the anticipated benefits from the proposed transaction or cause the parties to abandon the proposed transaction; the risk that a condition to closing of the transaction may not be satisfied; the length of time necessary to consummate the proposed transaction, which may be longer than anticipated for various reasons; the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on transaction-related issues; the effect of future regulatory or legislative actions on the companies or the industries in which they operate; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; economic and foreign exchange rate volatility; and the other risks contained in BioScrip's most recently filed Annual Report on Form 10-K.

Many of these risks, uncertainties and assumptions are beyond BioScrip's ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the parties on the date they are made, and neither BioScrip nor Option Care undertakes any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication. Nothing in this communication is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per BioScrip share for the current or any future financial years or those of the combined company, will necessarily match or exceed the historical published earnings per BioScrip share, as applicable. Neither BioScrip nor Option Care gives any assurance (1) that either BioScrip or Option Care will achieve its expectations, or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decrees, cost reductions, business strategies, earnings or revenue trends or future financial results. All subsequent written and oral forward-looking statements concerning BioScrip, Option Care, the proposed transaction, the combined company or other matters and attributable to BioScrip or Option Care or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

Note Regarding Use of Non-GAAP Financial Measures

In 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. 

 
  Schedule 1
BIOSCRIP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
  December 31,
   2018    2017
ASSETS      
Current assets      
Cash and cash equivalents $   14,539     $   39,457  
Restricted cash     4,321         4,950  
Accounts receivable, net     114,864         85,522  
Inventory     26,689         38,044  
Prepaid expenses and other current assets     14,292         18,620  
Total current assets     174,705         186,593  
Property and equipment, net     28,788         26,973  
Goodwill     367,198         367,198  
Deferred taxes     1,032         1,098  
Intangible assets, net     10,470         19,114  
Other non-current assets     1,745         2,116  
Total assets $    583,938     $    603,092  
LIABILITIES AND STOCKHOLDERS' DEFICIT      
Current liabilities      
Current portion of long-term debt $   3,179     $   1,722  
Accounts payable     67,025         65,963  
Amounts due to plan sponsors     956         4,621  
Accrued interest     6,706         6,706  
Accrued expenses and other current liabilities     29,450         26,118  
Total current liabilities     107,316         105,130  
Long-term debt, net of current portion     501,495         478,866  
Other non-current liabilities     25,842         21,769  
Total liabilities     634,653         605,765  
Series A convertible preferred stock, $.0001 par value     3,231         2,827  
Series C convertible preferred stock, $.0001 par value     90,058         79,252  
Stockholders' deficit      
Preferred stock, $.0001 par value     -          -   
Common stock, $.0001 par value     13         13  
Treasury stock, shares at cost     (950 )       (16 )
Additional paid-in capital     618,137         624,762  
Accumulated deficit     (761,204 )       (709,511 )
Total stockholders' deficit     (144,004 )       (84,752 )
Total liabilities and stockholders' deficit $    583,938     $    603,092  
       



 
      Schedule 2
BIOSCRIP, INC. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(in thousands, expect per share amounts) 
       
       
  Year Ended December 31,
   2018    2017
       
Net revenue $    708,903     $    817,190  
Cost of revenue (excluding depreciation expense)     465,865         547,948  
Gross profit     243,038         269,242  
Percentage of revenues   34.3 %     32.9 %
       
Operating expenses:      
Service location operation expenses     154,813         163,273  
General and administrative expenses     47,264         39,625  
Depreciation and amortization expense     23,601         27,725  
Restructuring, acquisition, integration, and other expenses     6,457         12,662  
Bad debt expense     -          23,697  
Total operating expenses     232,135         266,982  
Operating income     10,903         2,260  
Other expense:      
Interest expense, net     57,433         52,072  
Change in fair value of equity linked liabilities     4,836         3,587  
Loss (gain) on dispositions     (342 )       581  
Loss on extinguishment of debt     -          13,453  
Total other expense     61,927         69,693  
Loss from continuing operations,  before income taxes     (51,024 )       (67,433 )
Income tax (expense) benefit     (568 )       4,130  
Loss from continuing operations     (51,592 )       (63,303 )
Loss from discontinued operations, net of income taxes     (101 )       (893 )
Net loss     (51,693 )       (64,196 )
Accrued dividends on preferred stock     (11,210 )       (10,077 )
Loss attributable to common stockholders $    (62,903 )   $    (74,273 )
       
Loss per common share:      
Loss from continuing operations, basic and diluted $   (0.49 )   $   (0.59 )
Loss from discontinued operations, basic and diluted     -          (0.01 )
Loss per common share, basic and diluted $    (0.49 )   $    (0.60 )
       
Weighted average number of common shares outstanding:      
Basic and diluted    127,942        123,791  
       



 
Schedule 3
BIOSCRIP, INC. AND SUBSIDIARIES
 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)
                     
    Three Months Ended   Twelve Months Ended
    March 31, 2018   June 30, 2018   September 30, 2018   December 31, 2018   December 31, 2018
                     
Loss from continuing operations   $    (12,987 )   $    (15,124 )   $    (8,103 )   $    (15,378 )   $    (51,592 )
                     
Interest expense, net       (13,395 )       (13,805 )       (14,971 )       (15,262 )       (57,433 )
Change in fair value of equity linked liabilities       3,439         (3,064 )       (1,605 )       (3,606 )       (4,836 )
Gain on dispositions       305         13         10         14         342  
Income tax expense       (48 )       (43 )       (102 )       (375 )       (568 )
Depreciation and amortization expense       (6,486 )       (6,366 )       (5,767 )       (4,982 )       (23,601 )
Stock-based compensation       (556 )       (1,253 )       (1,224 )       (1,142 )       (4,175 )
Restructuring, acquisition, integration, and other expenses, net (1)       (1,882 )       (2,024 )       (885 )       (1,666 )       (6,457 )
Consolidated Adjusted EBITDA   $    5,636     $    11,418     $    16,441     $    11,641     $    45,136  
                     
                     
(1) Restructuring, acquisition, integration, and other expenses include non-recurring costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed branches/offices. 
     



 
Schedule 4
BIOSCRIP, INC. AND SUBSIDIARIES
 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)
                     
    Three Months Ended   Twelve Months Ended
    March 31, 2017   June 30, 2017   September 30, 2017   December 31, 2017   December 31, 2017
                     
Loss from continuing operations   $    (19,419 )   $    (29,151 )   $    (13,058 )   $    (1,675 )   $    (63,303 )
                     
Interest expense, net       (12,659 )       (12,630 )       (13,360 )       (13,423 )       (52,072 )
Change in fair value of equity linked liabilities       -          -          (1,103 )       (2,484 )       (3,587 )
Loss on extinguishment of debt       -          (13,453 )       -          -          (13,453 )
Gain (loss) on dispositions       -          (685 )       33         71         (581 )
Income tax (expense) benefit       (619 )       (718 )       (60 )       5,527         4,130  
Depreciation and amortization expense       (7,165 )       (7,065 )       (7,058 )       (6,437 )       (27,725 )
Stock-based compensation       (594 )       (433 )       (545 )       (788 )       (2,360 )
Restructuring, acquisition, integration, and other expenses, net (1)       (3,223 )       (4,147 )       (4,037 )       (1,255 )       (12,662 )
Consolidated Adjusted EBITDA   $    4,841     $    9,980     $    13,072     $    17,114     $    45,007  
                     
                     
(1) Restructuring, acquisition, integration, and other expenses include non-recurring costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed branches/offices. 
     



 
                  Schedule 5
BIOSCRIP, INC AND SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOWS
(in thousands)
(unaudited)
                   
  Three Months Ended   Twelve Months Ended
  March 31, 2018   June 30, 2018   September 30, 2018   December 31, 2018   December 31, 2018
Cash flows from operating activities:                  
Net loss $    (13,017 )   $    (15,139 )   $    (8,174 )   $    (15,363 )   $    (51,693 )
Less: Income (loss) from discontinued operations, net of income taxes     (30 )       (15 )       (73 )       17         (101 )
Loss from continuing operations     (12,987 )       (15,124 )       (8,101 )       (15,380 )       (51,592 )
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:                  
Depreciation and amortization     6,486         6,366         5,765         4,984         23,601  
Amortization of deferred financing costs and debt discount     2,023         2,048         2,013         2,088         8,172  
Change in deferred taxes     31         25         52         (42 )       66  
Stock-based compensation     556         1,253         1,223         1,143         4,175  
Paid-in-kind interest capitalized as principal on Second Lien Note Facility     -          -          3,800         3,987         7,787  
Loss (gain) on dispositions     (305 )       (13 )       (12 )       (12 )       (342 )
Change in fair value of equity linked liabilities     (3,439 )       3,064         1,603         3,608         4,836  
Changes in assets and liabilities, net of acquired businesses:                  
Accounts receivable     (2,663 )       (8,734 )       (16,709 )       (1,236 )       (29,342 )
Inventory     (3,505 )       16,264         2,180         (3,584 )       11,355  
Prepaid expenses and other assets     8,807         1,247         (3,098 )       (2,257 )       4,699  
Accounts payable     2,872         (19,574 )       14,640         3,124         1,062  
Amounts due to plan sponsors     (969 )       (1,468 )       (638 )       (590 )       (3,665 )
Accrued interest     (4,487 )       4,510         (4,461 )       4,438         -   
Accrued expenses and other liabilities     2,418         (4,984 )       1,899         (148 )       (815 )
Net cash provided by (used in) operating activities from continuing operations     (5,162 )       (15,120 )       156         123         (20,003 )
Net cash provided by (used in) operating activities from discontinued operations     (30 )       (15 )       (72 )       16         (101 )
Net cash used in operating activities     (5,192 )       (15,135 )       84         139         (20,104 )
Cash flows from investing activities:                  
Purchases of property and equipment, net     (2,646 )       (4,300 )       (2,462 )       (4,467 )       (13,875 )
Proceeds from sales of property and equipment     -          -          -          360         360  
Net cash used in investing activities     (2,646 )       (4,300 )       (2,462 )       (4,107 )       (13,515 )
Cash flows from financing activities:                  
Proceeds from private issuances, net     -          -          -          -          -   
Proceeds from priming credit agreement, net     -          -          -          -          -   
Fees attributable to extinguishment of debt     -          -          -          -          -   
Borrowings on revolving credit facility     -          -          -          -          -   
Repayments on revolving credit facility     -          -          -          -          -   
Borrowing of long-term debt, net of expenses     -          10,000         -          -          10,000  
Principal payments of long-term debt     -          -          -          -          -   
Repayments of capital leases     (967 )       (218 )       (438 )       (250 )       (1,873 )
Net activity from exercise of employee stock awards     (300 )       121         310         (186 )       (55 )
Net cash provided by financing activities     (1,267 )       9,903         (128 )       (436 )       8,072  
Net change in cash and cash equivalents and restricted cash     (9,105 )       (9,532 )       (2,506 )       (4,404 )       (25,547 )
Cash and cash equivalents and restricted cash - beginning of period     44,407         35,302         25,770         23,264         44,407  
Cash and cash equivalents and restricted cash - end of period $    35,302     $    25,770     $    23,264     $    18,860     $    18,860  
                   



 
                  Schedule 6
BIOSCRIP, INC AND SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOWS
(in thousands)
(unaudited)
                   
  Three Months Ended   Twelve Months Ended
  March 31, 2017   June 30, 2017   September 30, 2017   December 31, 2017   December 31, 2017
Cash flows from operating activities:                  
Net loss $    (19,718 )   $    (29,525 )   $    (12,992 )   $    (1,961 )   $    (64,196 )
Less: Income (loss) from discontinued operations, net of income taxes     (299 )       (373 )       66         (287 )       (893 )
Loss from continuing operations     (19,419 )       (29,152 )       (13,058 )       (1,674 )       (63,303 )
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:                  
Depreciation and amortization     7,165         7,067         7,056         6,437         27,725  
Amortization of deferred financing costs and debt discount     1,318         1,557         1,801         2,322         6,998  
Change in deferred taxes     619         604         645         (5,247 )       (3,379 )
Stock-based compensation     521         433         571         835         2,360  
Loss (gain) on dispositions     -          685         (33 )       (71 )       581  
Change in fair value of equity linked liabilities     -          -          1,103         2,484         3,587  
Loss on extinguishment of debt     -          13,453         -          -          13,453  
Changes in assets and liabilities, net of acquired businesses:                  
Accounts receivable     2,210         6,281         13,766         1,307         23,564  
Inventory     5,616         1,727         1,048         (10,935 )       (2,544 )
Prepaid expenses and other assets     3,601         1,872         (2,440 )       (3,272 )       (239 )
Accounts payable     (10,936 )       (43 )       (3,737 )       15,405         689  
Amounts due to plan sponsors     645         382         64         (149 )       942  
Accrued interest     (1,157 )       1,188         (3,539 )       3,509         1  
Accrued expenses and other liabilities     (917 )       316         (2,199 )       (2,005 )       (4,805 )
Net cash provided by (used in) operating activities from continuing operations     (10,734 )       6,370         1,048         8,946         5,630  
Net cash provided by (used in) operating activities from discontinued operations     (299 )       (373 )       (5,434 )       (287 )       (6,393 )
Net cash used in operating activities     (11,033 )       5,997         (4,386 )       8,659         (763 )
Cash flows from investing activities:                  
Purchases of property and equipment, net     (1,684 )       (2,608 )       (2,278 )       (2,110 )       (8,680 )
Proceeds from sales of property and equipment     -          -          -          -          -   
Net cash used in investing activities     (1,684 )       (2,608 )       (2,278 )       (2,110 )       (8,680 )
Cash flows from financing activities:                  
Proceeds from private issuances, net     5,052         15,724         46         (45 )       20,777  
Proceeds from priming credit agreement, net     23,060         -          -          -          23,060  
Fees attributable to extinguishment of debt     -          (311 )       (669 )       -          (980 )
Borrowings on revolving credit facility     563         -          -          -          563  
Repayments on revolving credit facility     (1,000 )       (54,863 )       -          -          (55,863 )
Borrowing of long-term debt, net of expenses     -          294,446         -          -          294,446  
Principal payments of long-term debt     (3,137 )       (233,633 )       -          -          (236,770 )
Repayments of capital leases     (238 )       (163 )       (391 )       (280 )       (1,072 )
Net activity from exercise of employee stock awards     (51 )       (102 )       53         220         120  
Net cash provided by financing activities     24,249         21,098         (961 )       (105 )       44,281  
Net change in cash and cash equivalents and restricted cash     11,532         24,487         (7,625 )       6,444         34,838  
Cash and cash equivalents and restricted cash - beginning of period     9,569         21,101         45,588         37,963         9,569  
Cash and cash equivalents and restricted cash - end of period $    21,101     $    45,588     $    37,963     $    44,407     $    44,407  
                   



   
Schedule 7  
BIOSCRIP, INC. AND SUBSIDIARIES  
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share amounts)  
(unaudited)  
                       
                       
    Three Months Ended   Twelve Months Ended  
    March 31, 2018   June 30, 2018   September 30, 2018   December 31, 2018   December 31, 2018  
                       
Net revenue   $    168,584     $    175,789     $    180,962     $    183,568     $    708,903    
Cost of revenue (excluding depreciation expense)       113,536         115,832         115,051         121,446         465,865    
Gross profit       55,048         59,957         65,911         62,122         243,038    
Percentage of revenues     32.7 %     34.1 %     36.4 %     33.8 %     34.3 %  
                       
Operating expenses:                      
Service location operation expenses       39,299         38,861         38,216         38,437         154,813    
General and administrative expenses       10,669         10,931         12,478         13,186         47,264    
Depreciation and amortization expense       6,486         6,366         5,767         4,982         23,601    
Restructuring, acquisition, integration, and other expenses       1,882         2,024         885         1,666         6,457    
Total operating expenses       58,336         58,182         57,346         58,271         232,135    
Operating income (loss)       (3,288 )       1,775         8,565         3,851         10,903    
Other expense:                   -         
Interest expense, net       13,395         13,805         14,971         15,262         57,433    
Change in fair value of equity linked liabilities       (3,439 )       3,064         1,605         3,606         4,836    
Loss (gain) on dispositions       (305 )       (13 )       (10 )       (14 )       (342 )  
Total other expense       9,651         16,856         16,566         18,854         61,927    
Loss from continuing operations,  before income taxes       (12,939 )       (15,081 )       (8,001 )       (15,003 )       (51,024 )  
Income tax (expense) benefit       (48 )       (43 )       (102 )       (375 )       (568 )  
Loss from continuing operations       (12,987 )       (15,124 )       (8,103 )       (15,378 )       (51,592 )  
                                           
Loss from discontinued operations, net of income taxes       (30 )       (15 )       (71 )       15         (101 )  
Net loss       (13,017 )       (15,139 )       (8,174 )       (15,363 )       (51,693 )  
Accrued dividends on preferred stock       (2,657 )       (2,756 )       (2,861 )       (2,936 )       (11,210 )  
Loss attributable to common stockholders   $    (15,674 )   $    (17,895 )   $    (11,035 )   $    (18,299 )   $    (62,903 )  
                       
Loss per common share:                      
Loss from continuing operations, basic and diluted   $   (0.12 )   $   (0.14 )   $   (0.09 )   $   (0.14 )   $   (0.49 )  
Loss from discontinued operations, basic and diluted       -          -          -          -          -     
Loss per common share, basic and diluted   $    (0.12 )   $    (0.14 )   $    (0.09 )   $    (0.14 )   $    (0.49 )  
                       
Weighted average number of common shares outstanding:                      
Basic and diluted       127,772         128,038         127,528         128,074         127,942    
                                           



   
Schedule 8  
BIOSCRIP, INC. AND SUBSIDIARIES  
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share amounts)  
(unaudited)  
                       
                       
    Three Months Ended   Twelve Months Ended  
    March 31, 2017   June 30, 2017   September 30, 2017   December 31, 2017   December 31, 2017  
                       
Net revenue   $    217,810     $    218,106     $    198,692     $    182,582     $    817,190    
Cost of revenue (excluding depreciation expense)       152,936         150,495         132,129         112,388         547,948    
Gross profit       64,874         67,611         66,563         70,194         269,242    
Percentage of revenues     29.8 %     31.0 %     33.5 %     38.4 %     32.9 %  
                       
Operating expenses:                      
Service location operation expenses       44,319         42,293         38,143         38,518         163,273    
General and administrative expenses       9,266         9,654         9,405         11,300         39,625    
Depreciation and amortization expense       7,165         7,065         7,058         6,437         27,725    
Restructuring, acquisition, integration, and other expenses       3,223         4,147         4,037         1,255         12,662    
Bad debt expense       7,042         6,117         6,488         4,050         23,697    
Total operating expenses       71,015         69,276         65,131         61,560         266,982    
Operating income (loss)       (6,141 )       (1,665 )       1,432         8,634         2,260    
Other expense:                   -         
Interest expense, net       12,659         12,630         13,360         13,423         52,072    
Change in fair value of equity linked liabilities       -          -          1,103         2,484         3,587    
Loss (gain) on dispositions       -          685         (33 )       (71 )       581    
Loss on extinguishment of debt       -          13,453         -          -          13,453    
Total other expense       12,659         26,768         14,430         15,836         69,693    
Loss from continuing operations,  before income taxes       (18,800 )       (28,433 )       (12,998 )       (7,202 )       (67,433 )  
Income tax (expense) benefit       (619 )       (718 )       (60 )       5,527         4,130    
Loss from continuing operations       (19,419 )       (29,151 )       (13,058 )       (1,675 )       (63,303 )  
                                           
Loss from discontinued operations, net of income taxes       (299 )       (373 )       66         (287 )       (893 )  
Net loss       (19,718 )       (29,524 )       (12,992 )       (1,962 )       (64,196 )  
Accrued dividends on preferred stock       (2,388 )       (2,478 )       (2,569 )       (2,642 )       (10,077 )  
Loss attributable to common stockholders   $    (22,106 )   $    (32,002 )   $    (15,561 )   $    (4,604 )   $    (74,273 )  
                       
Loss per common share:                      
Loss from continuing operations, basic and diluted   $   (0.18 )   $   (0.26 )   $   (0.12 )   $   (0.03 )   $   (0.59 )  
Loss from discontinued operations, basic and diluted       -          -          -          (0.01 )       (0.01 )  
Loss per common share, basic and diluted   $    (0.18 )   $    (0.26 )   $    (0.12 )   $    (0.04 )   $    (0.60 )  
                       
Weighted average number of common shares outstanding:                      
Basic and diluted       118,783         121,189         127,488         127,488         123,791    

Source: BioScrip, Inc.

This article appears in: News Headlines

Referenced Stocks: BIOS










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