Full Press Release Details
In-Site Communications, Inc.
BioScrip Reports First Quarter 2016 Financial
DENVER, CO, May 5, 2016 - BioScrip, Inc. (NASDAQ: BIOS)
("BioScrip" or the "Company") today announced financial results for the first quarter 2016. For the first
quarter, the Company reported revenue from continuing operations of $238.5 million, net loss from continuing operations of ($11.9)
million and diluted EPS of ($0.17) loss per share.
First Quarter Highlights
Rick Smith, President and Chief Executive Officer stated, "We
are pleased with our first quarter results, which reflect continued patient census growth tempered by seasonality. The improvement
in our Adjusted EBITDA results in the quarter is continued evidence of our strengthening operations. The infusion platform we have
developed through BioScrip's clinical and operational teams enables us to serve our patients daily with high-quality care
and outstanding service."
Results of Operations
First Quarter 2016 versus Prior Year First Quarter 2015
Revenue from continuing operations for the first quarter of
2016 was $238.5 million, compared to $244.4 million in the first quarter of 2015, a decrease of $5.9 million or 2.4%. The decrease
was due primarily to the Company's planned shift in revenue mix to greater core revenues away from lower margin chronic.
Consolidated gross profit for the first quarter of 2016 was
$64.2 million, or 26.9% of revenue, up 30 basis points as a percentage of revenue as compared to the same period prior year.
Consolidated Adjusted EBITDA from continuing operations for
the first quarter of 2016 was $7.4 million representing an increase of $2.5 million or 51% over the same period prior year Consolidated
Adjusted EBITDA which was $4.9 million. Excluding Corporate Overhead Adjusted EBITDA, Infusion Services Adjusted EBITDA was $17.0
million for the first quarter 2016, an increase of $2.0 million over the first quarter 2015. This increase was due to the continued
operating improvement initiatives employed by the Company to further reduce operating costs including reducing bad debt costs as
a result of improved cash collection experience on accounts receivables. Adjusted EBITDA excludes, among other things, restructuring
expenses such as severance and retention costs and certain restructuring related consulting & professional fees. Restructuring,
integration and other expenses in the first quarter 2016 totaled $2.7 million, down $1.0 million from the same quarter prior year.
Interest expense in the first quarter of 2016 was $9.4 million,
roughly consistent with $9.2 million in the first quarter 2015.
Income tax expense from continuing operations in the first quarter
of 2016 was negligible and decreased as compared to the income tax expense in the same period prior year of $1.9 million.
Net loss from continuing operations for the first quarter of
2016 was ($11.9) million, or ($0.17) per diluted share, compared to the same first quarter period in 2015 net loss of ($18.9) million,
or ($0.28) per diluted share.
Liquidity and Capital Resources
As of May 5, 2016, the Company had $54.2 million of liquidity,
which is comprised of $7.6 million of cash and $46.6 of undrawn capacity available on its revolving credit facility. The Company's
net Days Sales Outstanding ("DSO") was 39 days at March 31, 2016 which was seven days lower than the prior year first
quarter 2015 DSO of 46 days, and was comparable to the sequential fourth quarter 2015 DSO of 37 days.
The Company generated solid operating cash in the first quarter
2016 and was able to use its operating cash flow to fund 100% of all operating costs of the business. The Company had a net use
of cash of $5.0 million for the first quarter 2016 when factoring in the $8.9 million semi-annual cash interest payment on the
The Company expects to be operating cash flow positive for the
full 2016 fiscal year. In addition to being operating cash flow positive for the full 2016 fiscal year, 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 March 31, 2016 the Company is in compliance with its bank
covenants under the terms of the Amended Credit Facility.
The Company is re-affirming its previously announced guidance
for the full year 2016.
Conference Call and Presentation
BioScrip will host a conference call and live webcast tomorrow,
May 6, 2016, at 8:00 a.m. Eastern Time, to discuss its first quarter 2016 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
94119366. 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, including its revenues and
cash flows, projections of future cost savings associated with the absence or reduction of certain charges and expenses, and other
statements regarding the Company's expectations regarding the impact of its 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
can be identified by words such as "may," "should," "could," "anticipate," "estimate,"
"expect," "project," "outlook," "aim," "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 continue to experience positive results from its financial improvement plan to reduce operating costs
and focus its business on its Infusion Services segment; 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 filings with the Securities and Exchange Commission. The Company does not undertake any duty
to update these forward-looking statements after the date hereof, even though the Company's situation may change in the future.
All of the forward-looking statements herein are qualified by these cautionary statements.
Reconciliation to Non-GAAP Financial Measures
In addition to reporting all financial information required
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, gain on sale of property and equipment, 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.
BIOSCRIP, INC. AND SUBSIDIARIES