Full Press Release Details
Tran, Chief Financial Officer
Communications, Inc.
REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS
ELMSFORD, N.Y., May 8, 2014 -
BioScrip, Inc. (NASDAQ: BIOS) today announced 2014 first quarter financial results. First quarter revenue from continuing operations
was $239.6 million and the net loss from continuing operations was $25.4 million, or $0.37 per basic and diluted share. Non-GAAP
adjusted loss from continuing operations per basic and diluted share was $0.13.
As a result of the completed sale
of BioScrip's Home Health business on March 31, 2014, the Company's prior period financial statements have been reclassified to
include the Home Health business as "discontinued operations" in the Consolidated Financial Statements.
First Quarter Highlights
"Our first-quarter results
reflect our success in achieving our two strategic priorities of building a leadership position in the home infusion industry
and generating strong cash collections. We are pleased to deliver double-digit organic growth in Infusion Services, and expect
to continue driving growth through our enhanced scale and expanded physician and payor relationships across our operating footprint.
We also completed the integration of all of our Infusion locations onto a single operating platform. As one team, one company,
we are already realizing greater efficiencies in our business and optimizing our productivity. At the same time, our cash collection
efforts are yielding positive results and providing us with greater financial flexibility to execute our long-term plans,"
said Rick Smith, President and Chief Executive Officer of BioScrip.
"We remain focused on advancing
each of our initiatives to drive organic growth in our core business, while continuing to provide outstanding clinical care to
patients across our network. Our team members across the organization are highly focused on our continued success, and we look
forward to continuing our momentum to drive results and create value for our shareholders," concluded Smith.
Results of Operations
First Quarter 2014 versus First
Revenue from continuing operations
for the first quarter of 2014 totaled $239.6 million, compared to $181.1 million for the same period a year ago, an increase of
$58.5 million or 32.3%. Infusion Services segment revenue was $221.4 million in the first quarter as compared to $154.4 million
for the same period in 2013. The 43.4% increase was driven primarily by the acquisitions of HomeChoice and CarePoint, as well
as continued strong double-digit organic growth.
Consolidated gross profit for the
first quarter of 2014 was $65.1 million, or 27.2% of revenue, compared to $55.9 million, or 30.9% of revenue, for the first quarter
of 2013. The increase in gross profit was the result of the acquisitions of HomeChoice and CarePoint and organic growth, offset
by the decline in the PBM Services segment. The decline in gross profit margin percentage was driven primarily by the decline
in the higher-margin PBM Services segment.
During the first quarter of 2014,
Infusion Services segment Adjusted EBITDA was $14.9 million, or 6.7% of segment revenue, compared to $11.9 million, or 7.7% of
segment revenue, in the prior year quarter. The 24.7% 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 $2.2 million favorable adjustment to the fair value of contingent consideration relating to our infusion acquisitions,
offset by a $2.0 million increase in the bad debt provision relating to acquisition integration disruption.
PBM Services segment revenue was
$18.2 million for the first quarter of 2014, 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. PBM Services
segment Adjusted EBITDA was $1.7 million, or 9.2% of segment revenue, for the first quarter of 2014 compared to $6.2 million,
or 23.2% of segment revenue, in the prior year quarter.
On a consolidated basis, BioScrip
reported $9.1 million of Adjusted EBITDA during the first quarter of 2014, or 3.8% of total revenue, compared to $10.2 million,
or 5.6% of total revenue, in the same period last year. Adjusted EBITDA included $1.4 million of increased investment in reimbursement
resources in the form of overtime, temporary labor, collection incentives and third-party professional fees.
Interest expense in the first quarter
of 2014 was $10.5 million compared to $6.5 million in the prior year period.
Income tax expense for continuing
operations in the first quarter of 2014 was $3.5 million compared to an income tax benefit of $0.2 million in the prior year period.
The loss from continuing operations,
net of taxes, for the first quarter of 2014 was $25.4 million, or a loss of $0.37 per basic and diluted share, compared to a net
loss of $8.4 million, or $0.15 per basic and diluted share, in the prior year period.
Liquidity and Capital Resources
For the three months ended March
31, 2014, BioScrip used $24.5 million in net cash from continuing operating activities, compared to cash used of $14.1 million
during the first quarter of 2013. The increase in cash used in operating activities was primarily due to increase in working capital
to support the growth of the business and an increase in accounts receivable primarily due to the integration of the Infusion
acquisitions. As of March 31, 2014, the Company's cash balance was $9.3 million, and it had $418.7 million of outstanding
debt and an undrawn $75 million revolving credit facility. On March 31, 2014, the Company completed its previously announced sale
of substantially all of its Home Health business to LHC Group, Inc. for a total purchase price of approximately $60 million. The
Company used the net proceeds to pay down a portion of its outstanding debt. Capital expenditures for the first quarter of 2014
The Company believes its 2014 revenue
will be in a range of $940.0 million to $980.0 million and believes its 2014 Adjusted EBITDA will be in a range of $55.0 million
to $60.0 million. This reflects the Company's current assessment of the business and assumes:
BioScrip will host a conference
call to discuss its first quarter 2014 financial results on May 9, 2014 at 8:30 a.m. Eastern Time. Interested parties may participate
in the conference call by dialing 800-896-0105 (US), or 212-231-2922 (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 21715187. 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. is a leading national
provider of infusion and home care solutions. BioScrip partners with physicians, hospital systems, healthcare payors and pharmaceutical
manufacturers to provide patients access to post-acute care services. BioScrip operates with a commitment to bring customer-focused
pharmacy and related healthcare infusion therapy services into the home or alternate- site setting. By collaborating with the
full spectrum of healthcare professionals and the patient, BioScrip provides cost-effective care that is driven by quality, customer
service, and values that promote positive outcomes and an enhanced quality of life for those it serves. BioScrip provides its
infusion and home care services from over 80 locations across 29 states.
Forward-Looking Statements -
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. Because such statements inherently involve risks and uncertainties,
actual future results may differ materially from those expressed or implied by such forward-looking statements. Investors are
cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties,
and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Important
factors that could cause or contribute to such differences include but are not limited to risks associated with: the Company's
ability to integrate the CarePoint business and other acquisitions; the Company's ability to grow its Infusion Services segment
organically or through acquisitions and obtain financing in connection therewith; its ability to reduce operating costs while
sustaining growth; reductions in federal, state and commercial reimbursement for the Company's products and services; increased
government regulation related to the health care and insurance industries; as well as the risks described in the Company's periodic