Full Press Release Details
In-Site Communications, Inc.
BioScrip Reports Fourth Quarter 2015
Q4 Consolidated Adjusted EBITDA of $9.0
Reaffirms 2016 Adjusted EBITDA Guidance
of Between $50 Million - $60 Million
DENVER, CO, March 2, 2016 - BioScrip, Inc. (NASDAQ: BIOS)
("BioScrip" or the "Company") today announced financial results for the fourth quarter and full year 2015.
For the fourth quarter, the Company reported revenue from continuing operations of $243.8 million, net loss from continuing operations
of ($19.1) million and diluted EPS of ($0.28) loss per share. Excluding restructuring costs, the Company reported normalized net
loss from continuing operations for the quarter of ($9.2) million and normalized diluted EPS of ($0.13) loss per share.
Fourth Quarter Highlights
Rick Smith, President and Chief Executive Officer stated, "We
are pleased with the patient census growth experienced in the quarter as well as the strong cash collections and significant improvement
in our accounts receivable balances. The improvement in our Adjusted EBITDA results and the positive operating cash flow generated
by the Company in the fourth quarter are both excellent leading indicators of our strengthening operations. I am very proud of
our outstanding clinical and operating teams and believe as a Company we are poised for success in 2016."
Results of Operations
Fourth Quarter 2015 versus Sequential Third Quarter 2015
Revenue from continuing operations for the fourth quarter of
2015 was $243.8 million, compared to $247.2 million in the third quarter of 2015, a decrease of $3.5 million or 1.4%. This revenue
decrease was due primarily to the Company's planned shift in revenue mix to greater core revenues from lower margin chronic.
Consolidated gross profit for the fourth quarter of 2015 was
$65.9 million, or 27.0% of revenue, compared sequentially to $65.2 million, or 26.4% of revenue, for the third quarter of 2015.
During the fourth quarter of 2015, consolidated Adjusted EBITDA
from continuing operations increased sequentially by $2.8 million to $9.0 million. Infusion Services Adjusted EBITDA was $17.8
million during the fourth quarter, an increase of $3.1 million over the third quarter of 2015. This increase was a direct result
of the continued operating improvements realized from the previously announced FIP, including improvements realized in our accounts
receivable agings and related bad debt costs. Adjusted EBITDA excludes, among other things, restructuring expenses such as severance
and retention costs associated with the FIP and certain restructuring related consulting & professional fees.
Interest expense in the fourth quarter of 2015 was $9.6 million,
roughly consistent with $9.5 million in the third quarter.
Income tax expense for continuing operations in the fourth quarter
of 2015 was $1.0 million, compared sequentially to an income tax benefit of $4.6 million in the third quarter.
Net loss from continuing operations for the fourth quarter of
2015 was ($19.1) million, or ($0.28) per diluted share, compared sequentially to a net loss of ($26.3) million, or ($0.38) per
diluted share, in the third quarter of 2015.
After excluding restructuring costs and goodwill impairment
(both tax effected), fourth quarter 2015 normalized net loss from continuing operations was ($9.2) million and normalized diluted
EPS was a ($0.13) loss per share, as compared sequentially to a third quarter 2015 normalized net loss from continuing operations
of ($12.2m) and normalized diluted EPS of ($0.18) loss per share. Comparatively, the Company posted a normalized sequential improvement
in normalized net loss from continuing operations of $3.0 million or $0.05 normalized EPS per diluted share.
Twelve Months Ended 2015 versus Twelve Months Ended 2014
For the full year 2015, revenue from continuing operations was $982.2 million versus $922.7 million in 2014, an increase of
Consolidated gross profit for the full year was $260.9 million,
or 26.6% of revenue, compared to $250.8 million, or 27.2% of revenue, in 2014.
On a consolidated basis, Adjusted EBITDA from continuing operations
for the full year 2015 was $15.9 million, compared to the prior year Adjusted EBITDA loss of ($36.1) million in 2014. Infusion
Services Adjusted EBITDA was $53.9 million for the year, versus Adjusted EBITDA of $4.7 million in 2014. This increase in
Adjusted EBITDA on both a consolidated and segment basis was a direct result of the continued operating improvements realized from
the previously announced FIP, including improvements realized in our accounts receivable agings and related bad debt costs.
Interest expense for the twelve months ended December 31,
2015 was $37.3 million, down $3.6 million from the prior year interest expense of $40.9 million.
Income tax benefit from continuing operations was $21.5
million in 2015, compared to an income tax expense of $11.2 million in 2014.
For the full year 2015, net loss from continuing operations
was ($313.2) million, or ($4.56) loss per diluted share, compared to a net loss of ($149.9) million, or ($2.19) loss
per diluted share, in the prior year 2014.
After excluding restructuring costs and goodwill impairment
(both tax effected), normalized net loss from continuing operations for the full year 2015 was ($61.6) million and normalized diluted
EPS was a ($0.90) loss per share.
Liquidity and Capital Resources
As of December 31, 2015, the Company had $70.2 million of liquidity,
which is comprised of $15.6 million of cash and $54.6 of undrawn capacity available on its revolving credit facility. The Company
improved its net Days Sales Outstanding ("DSO") by ten days from 51 net days at the end of 2014 to 41 net days at the
end of 2015. The Company was operating cash flow positive for the fourth quarter of 2015 and expects to be operating cash flow
positive for the full 2016 fiscal year. In addition to being operating cash flow positive in 2016, the Company also expects to
pay down more than $12 million of bank term debt in 2016 from cash flow generated by operations.
As of December 31, 2015 the Company is in compliance with its
bank covenants under the terms of the Amended Credit Facility.
As previously announced, the FIP represented the Company's
initiative to accelerate long-term growth, reduce costs and increase operating efficiencies. In connection with the Financial Improvement
Plan, we consolidated most corporate functions from our Eden Prairie, Minnesota corporate office and our Elmsford, New York executive
office into our new executive and corporate office located in Denver, Colorado. The Financial Improvement Plan was substantially
completed by the end of 2015. Since inception, the Company has incurred approximately $14.3 million in total expenses for the FIP,
consisting of $7.8 million of employee severance and other benefit-related costs related to workforce reductions and $6.5 million
of other consulting and professional fees in the year ended December 31, 2015.
The Company is providing financial guidance for full year 2016
on a consolidated income statement basis as shown below:
| (dollars in millions, except EPS) | Low | High | ||||||
| Revenues | $ | 875.0 | $ | 900.0 | ||||
| Adjusted EBITDA | 50.0 | 60.0 | ||||||
| adjusted ebitda margin | 5.7 | % | 6.7 | % | ||||
| Stock Compensation | 5.0 | 4.5 | ||||||
| Depreciation & Amortization | 22.0 | 21.0 | ||||||
| Interest Expense, net | 37.0 | 36.0 | ||||||
| Restructuring Costs | 5.0 | 3.0 | ||||||
| Income Tax (Benefit) | (1.1 | ) | (0.3 | ) | ||||
| Preferred Stock Dividends | 9.1 | 9.1 | ||||||
| Net Loss - Continuing Ops | $ | (27.0 | ) | $ | (13.3 | ) | ||
| Diluted Loss Per Common Share | $ | (0.39 | ) | $ | (0.19 | ) |
Conference Call and Presentation
BioScrip will host a conference call and live webcast tomorrow,
March 3, 2016, at 8:30 a.m. Eastern Time, to discuss its fourth quarter 2015 financial results. Interested parties may participate
by dialing 888-372-9592 (US) or 918-559-5628 (International) or by accessing a link on the Company's website at www.bioscrip.com.
A replay of the conference call will be available for two weeks
after the call's completion by dialing 855-859-2056 (US) or 404-537-3406 (International) and entering conference call ID number
55165908. An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the
About BioScrip, Inc.
BioScrip, Inc. is a leading national provider of infusion and
home care management solutions. BioScrip partners with physicians, hospital systems, skilled nursing facilities, 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 clinical
excellence, customer service, and values that promote positive outcomes and an enhanced quality of life for those it serves.
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 future levels
of certain charges and expenses, and other statements regarding the Company's financial improvement plan 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