Full Press Release Details
BIOSCRIP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL
On August 27, 2015, BioScrip, Inc. (the
"Company") completed its previously announced sale of the Company's PBM Services segment (the "PBM Business")
pursuant to the Asset Purchase Agreement dated as of August 9, 2015 (the "Asset Purchase Agreement") by and among
the Company, BioScrip PBM Services, LLC and ProCare Pharmacy Benefit Manager Inc. (the "Buyer"). Under the Asset Purchase
Agreement, the Buyer agreed to acquire substantially all of the assets used solely in connection with the PBM Business and to
assume certain PBM Business liabilities (the "PBM Sale"). Pursuant to the terms of the Asset Purchase Agreement, the
Company received total cash consideration of approximately $25.6 million at closing, including an adjustment for estimated closing
date net working capital (the "Purchase Price").
Pro Forma Information
The accompanying unaudited pro forma consolidated
statements of operations of the Company for the year ended December 31, 2014 and the six months ended June 30, 2015
are presented as if the PBM Sale had occurred on January 1, 2014. The accompanying unaudited pro forma consolidated balance
sheet of the Company as of June 30, 2015 is presented as if the PBM Sale had occurred on June 30, 2015. The pro forma
adjustments related to the PBM Sale do not reflect the final Purchase Price or final asset and liability balances of the Company's
PBM Business. Accordingly, the pro forma adjustments are preliminary and have been made solely for the purpose of providing unaudited
pro forma consolidated financial information. The unaudited pro forma financial information is not necessarily indicative of the
results of operations or financial position that might have been achieved for the dates or periods indicated, nor is it necessarily
indicative of the results of operations or financial position that may occur in the future.
The historical consolidated financial
information has been adjusted in the unaudited pro forma financial information to give effect to pro forma events that are (1) directly
attributable to the disposal, (2) factually supportable, and (3) with respect to the statements of operations, expected
to have a continuing impact on the combined results. The pro forma information does not reflect several changes the Company expects
to realize after the PBM Sale, because the changes are not certain. The effects of the following are not reflected in the pro
The following is a brief description of
the amounts recorded under each of the column headings in the unaudited pro forma consolidated statements of operations and balance
This column reflects the Company's
historical audited operating results for the year ended December 31, 2014 and the historical unaudited operating results
of continuing operations and financial condition as of and for the six months ended June 30, 2015 prior to any adjustment
for the PBM Sale described above.
This column reflects the elimination of
the historical operating results of the PBM Business for the year ended December 31, 2014 and the six months ended June 30,
2015 at the amounts that have been reflected in the Company's consolidated statements of operations for those periods. The
disposition column on the unaudited pro forma consolidated balance sheet as of June 30, 2015 reflects the value of assets and
liabilities included in the PBM Business as of that date.
Pro Forma Adjustments
This column on the unaudited pro forma
consolidated balance sheet reflects the pro forma effect of the receipt and use of the approximately $25.6 million of cash consideration
from the PBM Sale, cash proceeds from borrowings under the Company's Revolving Credit Facility subsequent to June 30, 2015,
and an adjustment to remove accounts receivable of the PBM Business that were retained by the Company for which collection is
anticipated during the remainder of the fiscal year ending December 31, 2015.
This column on the unaudited pro forma
consolidated statements of operations for the year ended December 31, 2014 and for the six months ended June 30, 2015 reflects
adjustments to the Company's historical statements of operations for historical expenses that will be modified directly
related to the disposition.
BIOSCRIP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE
| As of June 30, 2015 | ||||||||||||||||
| Historical BioScrip | Disposition | Pro Forma Adjustments | Pro Forma | |||||||||||||
| ASSETS | ||||||||||||||||
| Current assets | ||||||||||||||||
| Cash and cash equivalents | $ | 1,172 | $ | - | $ | 568 | (A) | |||||||||
| 6,838 | (B) | |||||||||||||||
| 38,000 | (C) | $ | 46,578 | |||||||||||||
| Receivables, less allowance for doubtful accounts | 131,471 | (6,787 | ) | (6,838 | )(B) | 117,846 | ||||||||||
| Inventory | 42,364 | - | - | 42,364 | ||||||||||||
| Prepaid expenses and other current assets | 10,396 | (318 | ) | - | 10,078 | |||||||||||
| Total current assets | 185,403 | (7,105 | ) | 38,568 | 216,866 | |||||||||||
| Property and equipment, net | 34,906 | - | - | 34,906 | ||||||||||||
| Goodwill | 335,323 | (12,744 | ) | - | 322,579 | |||||||||||
| Intangible assets, net | 7,290 | - | - | 7,290 | ||||||||||||
| Deferred financing costs | 13,035 | - | - | 13,035 | ||||||||||||
| Other non-current assets | 1,192 | - | - | 1,192 | ||||||||||||
| Total assets | $ | 577,149 | $ | (19,849 | ) | $ | 38,568 | $ | 595,868 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Current liabilities | ||||||||||||||||
| Current portion of long-term debt | $ | 238 | $ | - | $ | 38,000 | (C) | |||||||||
| (22,700 | )(A) | $ | 15,538 | |||||||||||||
| Accounts payable | 77,085 | (546 | ) | (2,300 | )(A) | 74,239 | ||||||||||
| Claims payable | 4,816 | (4,816 | ) | - | - | |||||||||||
| Amounts due to plan sponsors | 4,254 | (788 | ) | - | 3,466 | |||||||||||
| Accrued interest | 6,705 | - | - | 6,705 | ||||||||||||
| Accrued expenses and other current liabilities | 40,923 | (74 | ) | - | 40,849 | |||||||||||
| Total current liabilities | 134,021 | (6,224 | ) | 13,000 | 140,797 | |||||||||||
| Long-term debt, net of current portion | 418,619 | - | - | 418,619 | ||||||||||||
| Deferred taxes | 2,924 | - | - | 2,924 | ||||||||||||
| Other non-current liabilities | 6,891 | - | - | 6,891 | ||||||||||||
| Total liabilities | 562,455 | (6,224 | ) | 13,000 | 569,231 | |||||||||||
| Series A Convertible Preferred Stock | 57,988 | - | - | 57,988 | ||||||||||||
| Stockholders' equity | ||||||||||||||||
| Preferred stock, $.0001 par value; | - | - | - | - | ||||||||||||
| Common stock, $.0001 par value | 8 | - | - | 8 | ||||||||||||
| Treasury stock, shares at cost: | (10,715 | ) | - | - | (10,715 | ) | ||||||||||
| Additional paid-in capital | 534,100 | - | - | 534,100 | ||||||||||||
| (Accumulated deficit) / Retained earnings | (566,687 | ) | (13,625 | ) | 25,568 | (A) | (554,744 | ) | ||||||||
| Total stockholders' (deficit) equity | (43,294 | ) | (13,625 | ) | 25,568 | (31,351 | ) | |||||||||
| Total liabilities and stockholders' (deficit) equity | $ | 577,149 | $ | (19,849 | ) | $ | 38,568 | $ | 595,868 |
BIOSCRIP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT
(in thousands, except for per share
| Six months ended June 30, 2015 | ||||||||||||||||
| Historical BioScrip | Disposition | Pro Forma Adjustments | Pro Forma | |||||||||||||
| Product revenue | $ | 480,067 | $ | - | $ | - | $ | 480,067 | ||||||||
| Service revenue | 43,977 | 32,790 | - | 11,187 | ||||||||||||
| Total revenue | 524,044 | 32,790 | - | 491,254 | ||||||||||||
| Cost of product revenue | 350,710 | - | - | 350,710 | ||||||||||||
| Cost of service revenue | 40,895 | 25,431 | - | 15,464 | ||||||||||||
| Total cost of revenue | 391,605 | 25,431 | - | 366,174 | ||||||||||||
| Gross profit | 132,439 | 7,359 | - | 125,080 | ||||||||||||
| Selling, general and administrative expenses | 118,140 | 4,277 | 1,701 | (D) | 112,162 | |||||||||||
| Change in fair value of contingent consideration | (72 | ) | - | - | (72 | ) | ||||||||||
| Bad debt expense | 23,466 | (45 | ) | - | 23,511 | |||||||||||
| Impairment of goodwill | 238,000 | - | - | 238,000 | ||||||||||||
| Acquisition and integration expenses | 479 | - | - | 479 | ||||||||||||
| Restructuring and other expenses | 8,266 | - | - | 8,266 | ||||||||||||
| Amortization of intangibles | 2,979 | - | - | 2,979 | ||||||||||||
| Income (loss) from continuing operations | (258,819 | ) | 3,127 | (1,701 | ) | (260,245 | ) | |||||||||
| Interest expense, net | 18,243 | - | - | 18,243 | ||||||||||||
| Loss on extinguishment of debt | - | - | - | - | ||||||||||||
| Income (loss) from continuing operations before income taxes | (277,062 | ) | 3,127 | (1,701 | ) | (278,488 | ) | |||||||||
| Income tax expense (benefit) | (17,993 | ) | (595 | )(E) | (17,398 | ) | ||||||||||
| Income (loss) from continuing operations, net of income taxes | (259,069 | ) | 3,127 | (1,106 | ) | (261,090 | ) | |||||||||
| Income (loss) from discontinued operations, net of income taxes | (5,412 | ) | - | (5,412 | ) | |||||||||||
| Net income (loss) | (264,481 | ) | 3,127 | (1,106 | ) | (266,502 | ) | |||||||||
| Accrued dividends on preferred stock | (2,258 | ) | - | - | (2,258 | ) | ||||||||||
| Deemed dividend on preferred stock | (3,350 | ) | - | - | (3,350 | ) | ||||||||||
| Net income (loss) attributable to common stockholders | $ | (270,089 | ) | $ | 3,127 | $ | (1,106 | ) | $ | (272,110 | ) | |||||
| Loss per common share | ||||||||||||||||
| Loss from continuing operations, basic and diluted | $ | (3.85 | ) | $ | (3.88 | ) | ||||||||||
| Loss from discontinued operations, basic and diluted | (0.08 | ) | (0.08 | ) | ||||||||||||
| Net loss, basic and diluted | $ | (3.93 | ) | $ | (3.96 | ) | ||||||||||
| Weighted average shares outstanding, basic and diluted | 68,668 | 68,668 |
BIOSCRIP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT
(in thousands, except for per share
| Year ended December 31, 2014 | ||||||||||||||||
| Historical BioScrip | Disposition | Pro Forma Adjustments | Pro Forma | |||||||||||||
| Product revenue | $ | 901,653 | $ | - | $ | - | $ | 901,653 | ||||||||
| Service revenue | 82,402 | 61,401 | - | 21,001 | ||||||||||||
| Total revenue | 984,055 | 61,401 | - | 922,654 | ||||||||||||
| Cost of product revenue | 645,419 | - | - | 645,419 | ||||||||||||
| Cost of service revenue | 77,570 | 43,766 | - | 33,804 | ||||||||||||
| Total cost of revenue | 722,989 | 43,766 | - | 679,223 | ||||||||||||
| Gross profit | 261,066 | 17,635 | - | 243,431 | ||||||||||||
| Selling, general and administrative expenses | 239,810 | 10,878 | 3,750 | (D) | 225,182 | |||||||||||
| Change in fair value of contingent consideration | (7,364 | ) | - | - | (7,364 | ) | ||||||||||
| Bad debt expense | 79,574 | 27 | - | 79,547 | ||||||||||||
| Impairment of goodwill | - | - | - | - | ||||||||||||
| Acquisition and integration expenses | 17,924 | - | - | 17,924 | ||||||||||||
| Restructuring and other expenses | 15,646 | - | - | 15,646 | ||||||||||||
| Amortization of intangibles | 6,555 | - | - | 6,555 | ||||||||||||
| Income (loss) from continuing operations | (91,079 | ) | 6,730 | (3,750 | ) | (94,059 | ) | |||||||||
| Interest expense, net | 38,539 | (6 | ) | 38,545 | ||||||||||||
| Loss on extinguishment of debt | 2,373 | - | - | 2,373 | ||||||||||||
| Income (loss) from continuing operations before income taxes | (131,991 | ) | 6,736 | (3,750 | ) | (134,977 | ) | |||||||||
| Income tax expense (benefit) | 11,391 | - | (1,313 | )(E) | 10,078 | |||||||||||
| Income (loss) from continuing operations, net of income taxes | (143,382 | ) | 6,736 | (2,438 | ) | (147,680 | ) | |||||||||
| Income (loss) from discontinued operations, net of income taxes | (4,086 | ) | - | - | (4,086 | ) | ||||||||||
| Net income (loss) | (147,468 | ) | 6,736 | (2,438 | ) | (151,766 | ) | |||||||||
| Accrued dividends on preferred stock | - | - | - | - | ||||||||||||
| Deemed dividend on preferred stock | - | - | - | - | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | (147,468 | ) | $ | 6,736 | $ | (2,438 | ) | $ | (151,766 | ) | |||||
| Loss per common share | ||||||||||||||||
| Loss from continuing operations, basic and diluted | $ | (2.09 | ) | $ | (2.22 | ) | ||||||||||
| Loss from discontinued operations, basic and diluted | (0.06 | ) | (0.06 | ) | ||||||||||||
| Net loss, basic and diluted | $ | (2.15 | ) | $ | (2.28 | ) | ||||||||||
| Weighted average shares outstanding, basic and diluted | 68,476 | 68,476 |
BIOSCRIP, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED
FINANCIAL INFORMATION
| Sources: | ||||
| Cash received as disposal consideration, including est. working capital | $ | 25,568 | ||
| Uses: | ||||
| Repayment of debt | (22,700 | ) | ||
| Estimated disposal-related transaction costs | (2,300 | ) | ||
| Net | $ | 568 |