Full Press Release Details
Hai Tran, Chief Financial
BIOSCRIP REPORTS FOURTH
QUARTER 2013 FINANCIAL RESULTS
ELMSFORD, N.Y., February 26, 2014 - BioScrip, Inc. (NASDAQ:
BIOS) today announced 2013 fourth quarter financial results. Fourth quarter revenue from continuing operations was $243.5 million
and the net loss from continuing operations was $15.4 million, or $0.23 per basic and diluted share.
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 and twelve months ended December 31,
2013 and 2012, 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
"Fourth quarter and full year 2013 results reflect the
progress we've made on growing our infusion business and streamlining our cost structure consistent with our strategic plan.
The national infusion platform that we have carefully built over the past three years is starting to deliver results. On a consolidated
basis, fourth quarter EBITDA grew by 7.8% and revenues grew by 34.7% over the prior year period, further underscoring the strength
of our infusion program," said Rick Smith, President and Chief Executive Officer of BioScrip.
"We believe that 2014 is off to a strong start. The recently
announced agreement to sell our Home Health division, combined with our debt refinancing, enhances our financial flexibility and
allows us to focus on growing our infusion platform to drive shareholder value creation. Our strong clinical programs, customer-focused
model and flexible go-to-market approach are the cornerstones of our infusion program and position us very well in the industry,"
Results of Operations
Fourth Quarter 2013 versus Fourth Quarter 2012
Revenue from continuing operations for the fourth quarter of
2013 totaled $243.5 million, compared to $180.7 million for the same period a year ago, an increase of $62.8 million or 34.7%.
Infusion Services segment revenue was $212.0 million in the fourth quarter as compared to $135.6 million for the same period in
2012. The 56.3% increase was driven primarily by the acquisitions of HomeChoice and CarePoint, as well as continued strong organic
Consolidated gross profit for the fourth quarter of 2013 was
$74.9 million, or 30.8% of revenue, compared to $60.4 million, or 33.4% of revenue, for the fourth quarter of 2012. The increase
in gross profit was the result of the acquisitions of HomeChoice and CarePoint and organic growth. The decline in gross profit
margin percentage resulted primarily from declines in non-core segments, as well as growth of lower-margin Infusion Services revenues
as a percent of total revenue versus the higher margin non-core segment revenue.
During the fourth quarter of 2013, Infusion Services segment
Adjusted EBITDA was $19.5 million, or 9.2% of segment revenue, compared to $11.0 million, or 8.1% of segment revenue, in the prior
year quarter. The 76.7% improvement in Adjusted EBITDA in the Infusion Services segment resulted primarily from organic revenue
growth and the HomeChoice and CarePoint acquisitions. Infusion Services segment Adjusted EBITDA also included a $5.4 million favorable
adjustment to the fair value of contingent consideration relating to our infusion acquisitions, offset by a $5.6 million increase
in the bad debt provision.
Home Health Services segment revenue was $18.0 million for the
fourth quarter of 2013, as compared to $18.3 million in the prior year quarter. Home Health Services segment Adjusted EBITDA in
the fourth quarter of 2013 was $0.3 million, or 1.9% of segment revenue. This compares to segment Adjusted EBITDA of $1.8 million,
or 10.1% of segment revenue, in the comparable prior year period. The decrease in Adjusted EBITDA margin percentage in the Home
Health Services segment was primarily due to increased volume of lower-margin private duty nursing.
PBM Services segment revenue was $13.5 million for the fourth
quarter of 2013, compared to $26.8 million for the prior year period. The decline was related to the termination of a large but
low-margin client during the first quarter of 2013, and declines in discount card revenue primarily driven by the pricing cap related
to a large discount pharmacy retailer. PBM Services segment Adjusted EBITDA was $1.7 million, or 12.7% of segment revenue, for
the fourth quarter of 2013 compared to $6.3 million, or 23.5% of segment revenue, in the prior year quarter.
On a consolidated basis, BioScrip reported $13.0 million of
Adjusted EBITDA during the fourth quarter of 2013, or 5.3% of total revenue, compared to $12.1 million, or 6.7% of total revenue,
in the same period last year. Adjusted EBITDA was impacted by the timing of cost reductions executed throughout the fourth quarter
of 2013, and $0.3 million in recruiting expenses related to the expansion of the Board.
Interest expense in the fourth quarter of 2013 was $8.0 million
compared to $6.4 million in the prior year period.
Income tax expense for continuing operations in the fourth quarter
of 2013 was $2.6 million compared to an income tax benefit of $1.8 million in the prior year period.
The loss from continuing operations, net of taxes, for the fourth
quarter of 2013 was $15.4 million, or a loss of $0.23 per basic and diluted share, compared to a net loss of $1.4 million, or $0.03
per basic and diluted share, in the prior year period.
Twelve Months Ended 2013 versus Twelve Months Ended 2012
Revenue from continuing operations for the twelve months ended
December 31, 2013 totaled $842.2 million, compared to $662.6 million for the same period a year ago, a 27.1% increase. Infusion
Services segment revenue was $697.3 million for the twelve months ended December 31, 2013, compared to $481.6 million for the same
period in 2012. The 44.8% increase was driven primarily by organic growth and additional revenue related to the acquisition of
HomeChoice and CarePoint during 2013.
Consolidated gross profit for the twelve months ended December
31, 2013, was $271.8 million, or 32.3% of revenue, compared to $225.0 million, or 33.9% of revenue, in the comparable prior year
period. The net increase in gross profit was due primarily to the acquisitions of HomeChoice and CarePoint and organic growth.
Consolidated gross profit margin percentage was primarily impacted by declines in non-core segments, as well as growth of lower-margin
Infusion Services revenues as a percent of total revenue versus the higher margin non-core segment revenue.
During the twelve months ended December 31, 2013, Infusion Services
Segment Adjusted EBITDA was $60.7 million, or 8.7% of segment revenue, compared to $36.8 million, or 7.6% of segment revenue, in
Home Health Services segment revenue for the twelve months ended
December 31, 2013, was $72.3 million, compared to $69.2 million in the prior year. The 4.5% increase was primarily the result of
volume growth in private duty nursing activity. Home Health Services Segment Adjusted EBITDA for the twelve months ended December
31, 2013 was $2.9 million, or 4.0% of segment revenue. This compares to Segment Adjusted EBITDA of $5.4 million, or 7.8% of segment
revenue, in the prior year.
PBM Services segment revenue for the twelve months ended December
31, 2013 was $72.6 million, compared to $111.9 million for the prior year period. The 35.1% decrease was primarily due to the termination
of a large but low-margin client during the first quarter of 2013, and declines in discount card revenue primarily driven by the
pricing cap related to a large discount pharmacy retailer. PBM Services Segment Adjusted EBITDA was $17.1 million, or 23.6% of
segment revenue, for the twelve months ended December 31, 2013 compared to $25.7 million, or 22.9% of segment revenue, in the prior
On a consolidated basis, BioScrip reported $48.6 million of
Adjusted EBITDA for the twelve months ended December 31, 2013, or 5.8% of total revenue, compared to $41.1 million, or 6.2% of
total revenue, in the prior year.
Interest expense for the twelve months ended December 31, 2013
was $28.2 million compared to $26.1 million in the prior year.
Income tax expense from continuing operations for the twelve
months ended December 31, 2013 was $2.5 million, compared to an income tax benefit of $4.4 million in 2012.
The loss from continuing operations, net of taxes, for the twelve
months ended December 31, 2013 was $53.6 million, or $0.84 per basic and diluted share, compared to a net loss of $8.3 million,
or $0.15 per basic and diluted share, in the prior year.
Liquidity and Capital Resources
For the twelve months ended December 31, 2013, BioScrip used
$38.5 million in net cash from continuing operating activities, compared to cash provided of $49.9 million during the twelve months
of 2012, a decrease of $88.4 million. The increase in cash used in operating activities was primarily due to the loss from continuing
operations net of income taxes of $53.6 million, as well as an increase in net accounts receivables of $58.2 million as a result
of the acquisitions and organic growth. As of December 31, 2013, the Company's cash balance was $1.0 million and it had $435.6
million of outstanding debt. Subsequent to year end, BioScrip issued $200 million aggregate principal amount of 8.875% Senior Notes
due 2021. The net proceeds of $194.5 million were used to pay down amounts outstanding under the Company's Senior Secured