Full Press Release Details
In-Site Communications, Inc.
BioScrip Reports Third Quarter 2015 Financial
Consolidated Adjusted EBITDA of $6.2
Results Demonstrate Progress Against
Financial Improvement Plan
Reaffirms 2016 Adjusted EBITDA Guidance
of Between $50 Million - $60 Million
ELMSFORD, NY, November 4, 2015 - BioScrip, Inc. (NASDAQ:
BIOS) ("the Company") today announced 2015 third quarter financial results.
Third Quarter Highlights
"Our core infusion business delivered improved performance
through strong revenue growth, reduced expenses and increased operating cash flow," said Rick Smith, Chief Executive Officer
of BioScrip. "We were also able to realize meaningful cost savings through a range of targeted initiatives, including workforce
reductions, supply chain optimization and the successful sale of our non-core PBM business. We are pleased with the early progress
we have made on our Financial Improvement Plan, and expect to see additional benefits through the remainder of the year."
As the Company stated in August 2015, its Financial Improvement
Plan is focused on reducing costs, improving margins and reorganizing the Company's structure around a more focused core
infusion business. During the quarter the Company:
Results of Operations
As a result of the previously announced sale of the Company's
non-core PBM business, the Company's financial statements concerning PBM are presented as "discontinued operations"
on the Consolidated Financial Statements for all periods presented.
Third Quarter 2015 Versus Third Quarter 2014
Revenue from continuing operations for the third quarter of
2015 was $247.2 million, compared to $231.5 million in the prior year period, an increase of $15.8 million or 6.8%. This revenue
increase was due primarily to a $14.4 million increase in product revenues associated with chronic, nutrition and other therapies.
Consolidated gross profit for the third quarter of 2015 was
$63.1 million, or 25.5% of revenue, compared to $60.8 million, or 26.3% of revenue, for the third quarter of 2014. On a sequential
basis, gross profit improved 30 basis points.
During the third quarter of 2015, Infusion Services Adjusted
EBITDA was $12.4 million. Including corporate expenses, total company consolidated Adjusted EBITDA from continuing operations was
Interest expense in the third quarter of 2015 was $9.5 million,
down slightly from $9.6 million in the third quarter of 2014.
During the quarter, the Company recorded a $13.9 million pre-tax
goodwill impairment charge related to the completion of its goodwill valuation initiated during the second quarter of 2015. The
Company also incurred $4.0 million of pre-tax restructuring and other expenses primarily related to its ongoing Financial Improvement
Income tax benefit for continuing operations in the third quarter
of 2015 was $4.6 million, compared to income tax expense of $1.9 million in the prior year period.
Net loss from continuing operations for the third quarter of
2015 was $24.2 million, or $0.38 loss per diluted share, compared to a net loss of $39.2 million, or $0.57 loss per diluted share
in the prior year period.
Liquidity and Capital Resources
As of September 30, 2015, the Company had approximately $69.0
million of liquidity, which is comprised of $29.4 million of cash and $39.6 million of undrawn capacity available on its revolving
credit facility. The Company has improved net Days Sales Outstanding ("DSO") by six days from 51 days at the end of
2014 to 45 days through the first nine months of 2015. The Company has improved its cash flows in 2015 and expects to be operating
cash flow positive in 2016.
As of September 30, 2015 the Company is in compliance with its
bank covenants under the terms of the Amended Credit Facility.
Conference Call and Presentation
BioScrip will host a conference call and live webcast today,
November 4, 2015, at 8:30 a.m. Eastern Standard Time, to discuss its third 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.
The conference call 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 855-859-2056 (US) or 404-537-3406 (International) and entering conference call ID number
64965564. 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 healthcare management solutions. BioScrip partners with healthcare providers, including physicians, hospital systems, skilled
nursing facilities, and with healthcare payors to provide patients better access to high quality, efficient post-acute care services.
BioScrip operates with a commitment to bring infusion therapy services into the home or alternate-site settings. 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
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 execute 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 our 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, loss on sale of assets, income tax
expense, depreciation and amortization, impairment of goodwill, stock-based compensation expense, acquisition and integration expenses,
restructuring-related expenses and investments in start-up operations. 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 our business operations and
facilitates comparisons to our 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.