Full Press Release Details
Communications, Inc.
REPORTS FOURTH QUARTER 2014 FINANCIAL RESULTS
Elmsford, NY - March 2,
2015 - BioScrip , Inc. (NASDAQ: BIOS) (the "Company") today announced 2014 fourth quarter
financial results. Fourth quarter revenue from continuing operations was $253.7 million and the net loss from continuing operations
was $61.9 million, or $0.90 per basic and diluted share. Non-GAAP adjusted loss from continuing operations per basic and diluted
Fourth Quarter Highlights
"Fourth quarter and full year
2014 results reflect double digit organic revenue growth in our infusion business. We have taken a number of actions to align
our cost structure and focus our resources in support of core infusion therapies, which we believe will continue to drive profitable
growth and shareholder value. In addition, following an in-depth review of our bad debt reserve, we recorded a charge this quarter
that we feel appropriately reserves older account receivables," said Rick Smith, President and Chief Executive Officer of
"As we head into 2015, we
expect to continue to focus on double digit organic growth, operating cash flow generation and cost savings initiatives. We have
confidence that our platform and our solid payor and hospital relationships will continue to drive profitable growth," concluded
Results of Operations
Fourth Quarter 2014 versus Fourth
Revenue from continuing operations
for the fourth quarter of 2014 totaled $253.7 million, compared to $225.5 million for the same period a year ago, an increase
of $28.2 million or 12.5%. Infusion Services segment revenue was $239.5 million in the fourth quarter of 2014 as compared to $212.0
million for the same period in 2013. The 13.0% increase was driven primarily by continued strong organic growth.
Consolidated gross profit for the
fourth quarter of 2014 was $65.6 million, or 25.9% of revenue, compared to $68.2 million, or 30.2% of revenue, for the fourth
quarter of 2013. The decrease in gross profit dollars and margin percentage was primarily the result of a decrease in the PBM
Services segment and the impact of therapy mix on the Infusion Services segment.
During the fourth quarter of 2014,
on a consolidated basis, Adjusted EBITDA from continuing operations declined by $43.9 million to a loss of $30.6 million, compared
to $13.3 million in the prior year period. Infusion Services segment Adjusted EBITDA was a loss of $18.3 million in the fourth
PBM Services segment revenue was
$14.2 million for the fourth quarter of 2014, compared to $13.5 million for the prior year period. PBM Services segment Adjusted
EBITDA was $1.6 million, or 11.2% of segment revenue, for the fourth quarter of 2014 compared to $1.7 million, or 12.7% of segment
revenue, in the prior year quarter.
Interest expense in the fourth quarter
of 2014 was $9.3 million compared to $8.0 million in the prior year period.
Income tax expense for continuing
operations in the fourth quarter of 2014 was $2.9 million compared to an income tax expense of $2.6 million in the prior year
Net loss from continuing operations
for the fourth quarter of 2014 was $61.9 million, or a loss of $0.90 per basic and diluted share, compared to a net loss of $15.6
million, or $0.23 per basic and diluted share, in the prior year period.
Twelve Months Ended 2014 versus
Twelve Months Ended 2013
Revenue from continuing operations
for the twelve months ended December 31, 2014 totaled $984.1 million, compared to $769.5 million for the same period a year ago.
The 27.9% increase was driven primarily by organic growth in infusion therapies. Infusion Services segment revenue was $922.7
million for the twelve months ended December 31, 2014, compared to $696.9 million for the same period in 2013, a 32.4% increase.
Consolidated gross profit for the
twelve months ended December 31, 2014, was $261.1 million, or 26.5% of revenue, compared to $243.6 million, or 31.7% of revenue,
in the prior year. The net increase in gross profit was primarily due to organic growth. Consolidated gross profit margin percentage
was primarily impacted by the PBM Services segment and the impact of therapy mix on the Infusion Services segment.
PBM Services segment revenue for
the twelve months ended December 31, 2014 was $61.4 million, compared to $72.6 million for the prior year period.
For the twelve months ended December
31, 2014, on a consolidated basis, Adjusted EBITDA from continuing operations declined by $68.8 million to a loss of $23.0 million,
compared to $45.7 million in the prior year period. Infusion Services segment Adjusted EBITDA was $6.5 million, or 0.7% of segment
revenue, compared to $60.7 million, or 8.7% of segment revenue, in the prior year. On a pro-forma basis, Infusion Services segment
Adjusted EBITDA was $62.8 million, compared to $60.7 million, in the prior year period.
On a pro-forma basis, consolidated
Adjusted EBITDA from continuing operations was $39.3 million, which adjusts for the impact of non-recurring items that primarily
include $56.3 million in Infusion Services pro-forma adjustments and $5.8 million of one-time accounting fees incurred during
the fourth quarter of 2014.
Interest expense for the twelve
months ended December 31, 2014 was $38.5 million compared to the $28.2 million in the prior year.
Income tax expense from continuing
operations for the twelve months ended December 31, 2014 was $11.4 million, compared to an income tax expense of $2.5 million
The net loss from continuing operations,
net of taxes, for the twelve months ended December 31, 2014 was $143.4 million, or $2.09 per basic and diluted share, compared
to a net loss of $57.0 million, or $0.89 per basic and diluted share, in the prior year.
Liquidity and Capital Resources
For the twelve months ended December
31, 2014, BioScrip used $24.6 million in net cash from continuing operating activities, compared to cash used of $46.0 million
during the twelve months of 2013, a decrease of $21.4 million. The Company achieved positive cash flow from continuing operations
during the last two quarters of 2014. As of December 31, 2014, the Company has $740,000 in cash and $423.8 million of outstanding
debt. In addition, the Company had availability of $70.0 million on its $75.0 million revolving credit facility.
Conference Call and Presentation
BioScrip will host a conference
call and live webcast to discuss its fourth quarter 2014 financial results on March 2, 2015 at 8:30 a.m. Eastern Time. Interested
parties may participate by dialing 800-771-6917 (US), or 212-231-2919 (International) or accessing a link on the Company's
website at www.bioscrip.com. The Company is also providing supplemental slides that will be posted prior to the conference call
and will be accessible through the "Investor Relations" section of the BioScrip website at www.bioscrip.com.
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 21762174. An audio webcast and archive will also be available for 30 days under the "Investor Relations"
section of the Company's website.
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. BioScrip provides its infusion services from over 70 locations across 29 states.
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 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,"
"outlook," "aim," "intend," "plan," "believe," "predict," "potential,"