ELMSFORD, N.Y., March 11, 2013 /PRNewswire/ -- BioScrip,
Inc. (NASDAQ: BIOS) today announced 2012 fourth quarter financial
results. Fourth quarter revenue from continuing operations
was $180.7 million and the net loss
from continuing operations was $1.4
million, or $0.03 per diluted
share. Consolidated Adjusted EBITDA for the fourth quarter was
$12.1 million, and consolidated
adjusted earnings per diluted share for the fourth quarter was
$0.04 per diluted share.
(Logo: http://photos.prnewswire.com/prnh/20130117/NY44138LOGO
)
This quarter, the Company will also begin reporting adjusted
earnings per diluted share ("Adjusted EPS"), which excludes the
same elements in calculating Adjusted EBITDA (restructuring and
other expenses, acquisition and integration expenses, stock-based
compensation expense) as well as the impact of acquisition-related
intangible amortization. Management believes that this
non-GAAP financial measure provides useful supplemental information
regarding the performance of our business operations and
facilitates comparisons to our historical operating results.
As a result of the sale of the Company's traditional and
specialty pharmacy mail operations and community retail pharmacy
stores on May 4, 2012 (the "Pharmacy
Services Asset Sale"), the Company's financial statements reflect
the discontinued operations' results for the three months ended
December 31, 2012 and 2011, and
assets transferred in the transaction as of December 31, 2012 and 2011, separate from the
continuing operations of the business. The remaining assets and
liabilities of the divested business that were not transferred as a
part of the Pharmacy Services Asset Sale are included in continuing
operations.
Fourth Quarter Highlights
- Revenue from continuing operations increased by $22.5 million, or 14.2%, as compared to the prior
year;
- Gross profit from continuing operations was $60.4 million, or 33.4% of revenue, as compared
to $58.6 million, or 37.0% of
revenue, in the prior year period;
- Adjusted EBITDA from continuing operations was $12.1 million, compared to $11.6 million in the third quarter, a 4.3%
sequential quarter improvement, despite the impact of Hurricane
Sandy on the Northeast market; and,
- Entered into a definitive agreement to acquire HomeChoice
Partners, Inc. ("HomeChoice"), a majority-owned subsidiary of
DaVita HealthCare Partners Inc. (NYSE: DVA).
"We are pleased to report solid fourth quarter
performance. Our consolidated results reflect continued
progress in the execution of our strategic goals and growth in our
infusion business," said Rick Smith,
President and Chief Executive Officer of BioScrip.
"Overall, 2012 was a year of positive progress and momentum for
BioScrip. We accomplished a number of our key objectives towards
repositioning the Company to focus on our infusion and home health
businesses. In 2013, we will continue to build on our organic
growth initiatives, which will be augmented with targeted
acquisitions. The core drivers of organic growth will be
delivering on our strong clinical programs, flexible go-to-market
approach, and high-touch customer service model," concluded
Smith.
Results of Operations
Fourth Quarter 2012 versus Fourth Quarter 2011
Revenue from continuing operations for the fourth quarter of 2012
totaled $180.7 million, compared to
$158.3 million for the same period a
year ago, an increase of $22.5
million or 14.2%. Infusion Services segment revenue
was $135.6 million in the fourth
quarter, as compared to $102.5
million for the same period in 2011. The 32.4%
increase was driven primarily by overall volume growth as well as
the addition of the InfuScience acquisition. Home Health
Services segment revenue was $18.3
million for the fourth quarter of 2012, as compared to
$17.2 million in the prior year
quarter. The 6.5% increase was primarily the result of volume
growth offset by the previously announced reimbursement reductions
from Medicare and the state of Tennessee TennCare program.
PBM Services segment revenue was $26.8
million for the fourth quarter of 2012, compared to
$38.6 million for the prior year
period. The decrease was due primarily to a decline in the
funded PBM business and a reduction in discount card revenues.
Consolidated gross profit for the fourth quarter of 2012 was
$60.4 million, or 33.4% of revenue,
compared to $58.6 million, or 37.0%
of revenue, for the fourth quarter of 2011. The increase in
gross profit was the result of growth in the volume of Infusion
Services segment revenues and growth in the Home Health Services
business. The decline in gross profit margin percentage
resulted primarily from a shift in the therapy mix in the Infusion
Services segment, as well as a decrease in home health
reimbursement rates from certain government payors.
During the fourth quarter of 2012, Infusion Services Segment
Adjusted EBITDA was $11.0 million, or
8.1% of segment revenue, compared to $9.9
million, or 9.7% of segment revenue in the prior year
quarter, and $9.9 million, or 7.9% of
segment revenue in the third quarter of 2012.
The Home Health Services Segment Adjusted EBITDA in the fourth
quarter of 2012 was $1.8 million, or
10.1% of segment revenue. This compares to Segment Adjusted EBITDA
of $1.5 million, or 8.7% of segment
revenue, in the comparable prior year period, and $1.4 million, or 8.1% of segment revenue in the
third quarter of 2012. The PBM Services Segment Adjusted
EBITDA was $6.3 million, or 23.5% of
segment revenue, for the fourth quarter of 2012 compared to
$9.3 million, or 24.0% of segment
revenue, in the prior year quarter.
On a consolidated basis, BioScrip reported $12.1 million of Adjusted EBITDA during the
fourth quarter of 2012, or 6.7% of total revenue, compared to
$14.9 million, or 9.4% of total
revenue, in the same period last year.
Interest expense in the fourth quarter of 2012 was $6.4 million compared to $6.2 million in the prior year period.
Income tax benefit for continuing operations in the fourth
quarter was $1.8 million compared to
an income tax expense of $2.8 million
in the fourth quarter of 2011.
Net loss from continuing operations for the fourth quarter of
2012 was $1.4 million, or a loss of
$0.03 per diluted share, compared to
a net income of $2.6 million, or
$0.05 per diluted share, for the
fourth quarter of 2011.
Twelve Months Ended 2012 versus Twelve Months Ended
2011
Revenue from continuing operations for the
twelve months ended December 31, 2012
totaled $662.6 million, compared to
$554.5 million for the same period a
year ago, a 19.5% increase. Infusion Services segment revenue
was $481.6 million for the twelve
months ended December 31, 2012,
compared to $374.3 million for the
same period in 2011. The 28.7% increase was driven primarily
by an increase in volume growth and the InfuScience
acquisition. Home Health Services segment revenue for the
twelve months ended December 31, 2012
was $69.2 million, compared to
$69.6 million in the prior
year. The 0.6% decrease was primarily the result of
reimbursement reductions as previously discussed. PBM
Services segment revenue for the twelve months ended December 31, 2012 was $111.9 million, compared to $110.6 million for the prior year period.
The 1.2% increase is primarily due to an increase in discount card
program sales.
Consolidated gross profit for the twelve months ended
December 31, 2012 was $225.0 million, or 33.9% of revenue, compared to
$215.4 million, or 38.8% of revenue,
in the comparable prior year period. The net increase in
gross profit was due primarily to organic growth and the
contribution from InfuScience. As previously disclosed, in
connection with the Pharmacy Services Asset Sale, the Company
provided certain lower margin services on behalf of key customers
after the sale. Additionally, there was a substantial
decrease in cross referrals of certain therapies from the specialty
sales personnel affiliated with the divested business.
During the twelve months ended December
31, 2012, Infusion Services Segment Adjusted EBITDA was
$36.8 million, or 7.6% of segment
revenue, compared to $35.1 million,
or 9.4% of segment revenue, in the prior year.
The Home Health Services Segment Adjusted EBITDA for the twelve
months ended December 31, 2012 was
$5.4 million, or 7.8% of segment
revenue. This compares to Segment Adjusted EBITDA of $6.0 million, or 8.6% of segment revenue, in the
prior year. The PBM Services Segment Adjusted EBITDA was
$25.7 million, or 22.9% of segment
revenue, for the twelve months ended December 31, 2012 compared to $30.1 million, or 27.2% of segment revenue, in
the prior year.
On a consolidated basis, BioScrip reported $41.1 million of Adjusted EBITDA for the twelve
months ended December 31, 2012, or
6.2% of total revenue, compared to $47.9
million, or 8.6% of total revenue, in the same period last
year.
Interest expense for the twelve months ended December 31, 2012 was $26.1 million compared to $25.5 million in the prior year.
Income tax benefit for continuing operations for the twelve
months ended December 31, 2012 was
$4.4 million, compared to an income
tax expense of $0.4 million in
2011.
Net loss from continuing operations for the twelve months ended
December 31, 2012 was $8.3 million, or $0.15 per diluted share, compared to a net loss
of $0.4 million, or $0.01 per diluted share, in the comparable prior
year period.
Liquidity and Capital Resources
For the twelve
months ended December 31, 2012,
BioScrip generated $49.9 million in
net cash from continuing operating activities, compared to
$3.1 million generated from operating
activities during the twelve months of 2011, an increase of
$46.7 million. This increase
was primarily due to the collection of accounts receivable retained
after the Pharmacy Services Asset Sale, net of accounts payable
paid related to those businesses. The Company's cash balance
at the end of the fourth quarter was $62.1
million.
Outlook
Revenue in 2013 is projected to grow by
25% to 30% to a range of $830.0 million to
$865.0 million and the Company is initially targeting 2013
Adjusted EBITDA of $67.0 million to $73.0
million. The range of Adjusted EBITDA reflects the on-going
impact of Hurricane Sandy in the first quarter of 2013 as well as
the estimated impact of competitive bidding. Additionally,
revenue and Adjusted EBITDA for 2013 may be impacted by therapy
mix, any lingering effects of Hurricane Sandy on the Northeast
market beyond the first quarter, additional acquisitions, de
novo activities, and the timing and earnings contribution from
the integration of HomeChoice.
Conference Call
BioScrip will host a conference call to discuss its fourth
quarter 2012 financial results on March 12,
2013 at 8:30 a.m. Eastern
Time.
Interested parties may participate in the conference call by
dialing 800-705-5308 (US), or 303-223-4377 (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 21648877. 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. provides comprehensive infusion and home care
solutions. By partnering with patients, physicians, healthcare
payors, government agencies and pharmaceutical manufacturers we are
able to provide access to infusible medications and management
solutions. Our goal is to optimize outcomes for chronic and other
complex healthcare conditions and enhance the quality of patient
life. BioScrip brings clinical competence in providing high-touch,
comprehensive infusion and nursing services to patients in the most
convenient ways possible. Through our customer services and
treatments we aim to ensure the best possible therapy outcome.
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," "intend," "plan," "believe,"
"predict," "potential," "continue" or comparable
terms. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and, because
such statements inherently involve risks and uncertainties, actual
results may differ materially from those in the forward-looking
statements. Factors that could cause or contribute
to such differences include but are not limited to risks
associated with: the Company's ability to grow its Infusion segment
organically or through acquisitions and obtain financing in
connection therewith; its ability to effectively integrate
acquisitions; its ability to reduce operating costs while
sustaining growth; reductions in federal, state and commercial
payor 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, including the Company's annual report on Form 10-K for
the year ended December 31, 2011. 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 EBITDA, Adjusted EBITDA, and Adjusted
EPS, which are non-GAAP financial measures. EBITDA, Adjusted
EBITDA and Adjusted EPS are not measurements 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 definitions of EBITDA, Adjusted EBITDA and Adjusted
EPS may not be comparable to similarly titled non-GAAP financial
measures reported by other companies. EBITDA represents net
income before net interest expense, income tax expense,
depreciation and amortization. Adjusted EBITDA, as
defined by the Company, represents net income before net
interest expense, income tax expense, depreciation and
amortization, stock-based compensation expense, acquisition and
integration expenses, and restructuring and other expenses. As part
of restructuring and other expenses, the Company may incur
significant charges such as, but not limited to, 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. Adjusted EPS, as defined by the Company, represents
earnings per diluted share, excluding the same elements in
calculating Adjusted EBITDA (restructuring and other expenses,
acquisition and integration expenses, stock-based compensation
expense) as well as the impact of acquisition-related intangible
amortization. Management believes that these non-GAAP
financial measures provide useful supplemental information
regarding the performance of our business operations and
facilitates comparisons to our historical operating results. For a
full reconciliation of EBITDA, Adjusted EBITDA and Adjusted EPS to
the most comparable GAAP financial measures, please see the
attachments to this earnings release.
(Financial Tables Follow)
Schedule 1
|
BIOSCRIP, INC
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
(in
thousands, except for share amounts)
|
|
|
|
|
|
December 31, 2012
|
|
December 31, 2011
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and
cash equivalents
|
$
62,101
|
|
—
|
Receivables, less allowance for doubtful accounts of
$22,212 and $22,728 at
December
31, 2012 and December 31, 2011, respectively
|
129,103
|
|
225,412
|
Inventory
|
34,034
|
|
17,997
|
Prepaid
expenses and other current assets
|
10,189
|
|
10,184
|
Current
assets from discontinued operations
|
—
|
|
38,876
|
Total
current assets
|
235,427
|
|
292,469
|
Property
and equipment, net
|
23,721
|
|
26,951
|
Goodwill
|
350,810
|
|
312,387
|
Intangible
assets, net
|
17,446
|
|
19,622
|
Deferred
financing costs
|
2,877
|
|
3,992
|
Investments in and advances to unconsolidated
affiliate
|
10,042
|
|
—
|
Other
non-current assets
|
2,053
|
|
1,552
|
Non-current assets from discontinued
operations
|
—
|
|
20,129
|
Total
assets
|
$
642,376
|
|
677,102
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current
portion of long-term debt
|
$
953
|
|
66,161
|
Accounts
payable
|
34,438
|
|
79,155
|
Claims
payable
|
7,411
|
|
11,766
|
Amounts
due to plan sponsors
|
18,173
|
|
25,219
|
Accrued
interest
|
5,803
|
|
5,825
|
Accrued
expenses and other current liabilities
|
41,491
|
|
32,648
|
Total
current liabilities
|
108,269
|
|
220,774
|
Long-term
debt, net of current portion
|
225,426
|
|
227,298
|
Deferred
taxes
|
10,291
|
|
10,295
|
Other
non-current liabilities
|
4,981
|
|
3,456
|
Total
liabilities
|
348,967
|
|
461,823
|
Stockholders' equity
|
|
|
|
Preferred stock, $.0001 par value; 5,000,000
shares authorized; no shares issued or
outstanding
|
—
|
|
—
|
Common
stock, $.0001 par value; 125,000,000 shares authorized; shares
issued:
59,600,713
and 57,800,791, respectively; shares outstanding: 57,026,957
and
55,109,038, respectively
|
6
|
|
6
|
Treasury
stock, shares at cost: 2,582,520 and 2,638,421,
respectively
|
(10,311)
|
|
(10,461)
|
Additional
paid-in capital
|
388,798
|
|
375,525
|
Accumulated deficit
|
(85,084)
|
|
(149,791)
|
Total
stockholders' equity
|
293,409
|
|
215,279
|
Total
liabilities and stockholders' equity
|
$
642,376
|
|
$
677,102
|
Schedule 2
|
BIOSCRIP, INC
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Product
revenue
|
$
132,785
|
|
$
100,158
|
|
$
471,506
|
|
$
365,526
|
Service
revenue
|
47,953
|
|
58,107
|
|
191,131
|
|
188,980
|
Total
revenue
|
180,738
|
|
158,265
|
|
662,637
|
|
554,506
|
|
|
|
|
|
|
|
|
Cost of
product revenue
|
92,214
|
|
66,025
|
|
325,271
|
|
238,072
|
Cost of
service revenue
|
28,131
|
|
33,642
|
|
112,406
|
|
101,019
|
Total cost
of revenue
|
120,345
|
|
99,667
|
|
437,677
|
|
339,091
|
Gross
profit
|
60,393
|
|
58,598
|
|
224,960
|
|
215,415
|
% of
revenues
|
33.4%
|
|
37.0%
|
|
33.9%
|
|
38.8%
|
Selling,
general and administrative expenses
|
49,087
|
|
42,971
|
|
184,491
|
|
167,136
|
Bad debt
expense
|
3,358
|
|
3,073
|
|
14,035
|
|
11,441
|
Acquisition and integration expenses
|
2,241
|
|
—
|
|
4,046
|
|
—
|
Restructuring and other expenses
|
1,446
|
|
101
|
|
5,143
|
|
7,909
|
Amortization of intangibles
|
1,113
|
|
880
|
|
3,957
|
|
3,376
|
Income
from operations
|
3,148
|
|
11,573
|
|
13,288
|
|
25,553
|
Interest
expense, net
|
6,362
|
|
6,167
|
|
26,067
|
|
25,542
|
Net income
(loss) from continuing operations, before income
taxes
|
(3,214)
|
|
5,406
|
|
(12,779)
|
|
11
|
Tax
provision (benefit)
|
(1,795)
|
|
2,841
|
|
(4,439)
|
|
435
|
Net income
(loss) from continuing operations, net of income
taxes
|
(1,419)
|
|
2,565
|
|
(8,340)
|
|
(424)
|
Net income
(loss) from discontinued operations, net of income
taxes
|
8,599
|
|
4,144
|
|
73,047
|
|
8,296
|
Net income
(loss)
|
$
7,180
|
|
$
6,709
|
|
$
64,707
|
|
$
7,872
|
|
|
|
|
|
|
|
|
Basic
weighted average shares
|
56,922
|
|
54,972
|
|
56,239
|
|
54,505
|
Diluted
weighted average shares
|
56,922
|
|
55,608
|
|
56,239
|
|
54,505
|
|
|
|
|
|
|
|
|
Income
(loss) per common share:
|
|
|
|
|
|
|
|
Basic loss
from continuing operations
|
$
(0.03)
|
|
$
0.05
|
|
$
(0.15)
|
|
$
(0.01)
|
Basic
income (loss) from discontinued operations
|
$
0.15
|
|
$
0.07
|
|
$
1.30
|
|
$
0.15
|
Basic
income (loss)
|
$
0.12
|
|
$
0.12
|
|
$
1.15
|
|
$
0.14
|
|
|
|
|
|
|
|
|
Diluted
loss from continuing operations
|
$
(0.03)
|
|
$
0.05
|
|
$
(0.15)
|
|
$
(0.01)
|
Diluted income (loss) from discontinued
operations
|
$
0.15
|
|
$
0.07
|
|
$
1.30
|
|
$
0.15
|
Diluted
income (loss)
|
$
0.12
|
|
$
0.12
|
|
$
1.15
|
|
$
0.14
|
Schedule 3
|
BIOSCRIP, INC
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(in
thousands)
|
|
|
Years
Ended December 31,
|
|
2012
|
|
2011
|
Cash
flows from operating activities:
|
|
|
|
Net income
(loss)
|
$
64,707
|
|
$
7,872
|
Less:
Income from discontinued operations, net of income taxes
|
73,047
|
|
8,296
|
Loss from
continuing operations, net of income taxes
|
(8,340)
|
|
(424)
|
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating
activities:
|
|
|
|
Depreciation
|
8,513
|
|
6,591
|
Amortization of intangibles
|
3,957
|
|
3,376
|
Amortization of deferred financing costs
|
1,261
|
|
1,055
|
Change in
deferred income tax
|
(4)
|
|
1,153
|
Compensation under stock-based compensation
plans
|
6,122
|
|
4,467
|
Loss on
disposal of fixed assets
|
156
|
|
201
|
Changes in
assets and liabilities, net of acquired business:
|
|
|
|
Receivables, net of bad debt expense
|
101,230
|
|
(31,690)
|
Inventory
|
(15,249)
|
|
(2,497)
|
Prepaid
expenses and other assets
|
3,726
|
|
11,211
|
Accounts
payable
|
(48,200)
|
|
(1,659)
|
Claims
payable
|
(4,354)
|
|
8,729
|
Amounts
due to plan sponsors
|
(7,046)
|
|
5,437
|
Accrued
interest
|
(22)
|
|
59
|
Accrued
expenses and other liabilities
|
8,112
|
|
(2,945)
|
Net cash
provided by (used in) operating activities from continuing
operations
|
$
49,862
|
|
$
3,064
|
Net cash
provided by (used in) operating activities from discontinued
operations
|
(22,978)
|
|
23,905
|
Net cash
provided by (used in) operating activities
|
$
26,884
|
|
$
26,969
|
Cash
flows from investing activities:
|
|
|
|
Purchases
of property and equipment, net
|
$
(10,986)
|
|
$
(7,853)
|
Cash
consideration paid for asset acquisitions
|
(43,046)
|
|
(463)
|
Cash
consideration paid to DS Pharmacy
|
(2,935)
|
|
—
|
Cash
consideration paid for unconsolidated affiliate, net of cash
acquired
|
(10,652)
|
|
—
|
Net cash
provided by (used in) investing activities from continuing
operations
|
(67,619)
|
|
(8,316)
|
Net cash
provided by (used in) investing activities from discontinued
operations
|
161,499
|
|
(1,591)
|
Net cash
used in investing activities
|
$
93,880
|
|
$
(9,907)
|
Cash
flows from financing activities:
|
|
|
|
Borrowings
on line of credit
|
1,244,050
|
|
1,773,644
|
Repayments
on line of credit
|
(1,307,872)
|
|
(1,791,058)
|
Repayments
of capital leases
|
(3,278)
|
|
(2,635)
|
Deferred
and other financing costs
|
—
|
|
(22)
|
Net
proceeds from exercise of employee stock compensation
plans
|
8,611
|
|
3,198
|
Surrender
of stock to satisfy minimum tax withholding
|
(174)
|
|
(189)
|
Net cash
provided by (used in) financing activities from continuing
operations
|
(58,663)
|
|
(17,062)
|
Net cash
provided by (used in) financing activities from discontinued
operations
|
—
|
|
—
|
Net cash
(used in) provided by financing activities
|
$
(58,663)
|
|
$
(17,062)
|
Net change
in cash and cash equivalents
|
62,101
|
|
—
|
Cash
and cash equivalents - beginning of period
|
—
|
|
—
|
Cash
and cash equivalents - end of period
|
$
62,101
|
|
—
|
DISCLOSURE OF CASH FLOW
INFORMATION:
|
|
|
|
Cash paid
during the period for interest
|
$
25,589
|
|
$
27,528
|
Cash paid
during the period for income taxes
|
$
2,757
|
|
$
1,042
|
DISCLOSURE OF NON-CASH
TRANSACTIONS:
|
|
|
|
Capital
lease obligations incurred to acquire property and
equipment
|
$
20
|
|
$
6,631
|
Schedule 4
|
BIOSCRIP, INC
|
|
Reconciliation between GAAP and Non-GAAP
Measures
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Years
Ended
|
|
December 31,
|
|
December 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Results of
Operations:
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Infusion
Services - product revenue
|
$
132,785
|
|
$
100,158
|
|
$
471,506
|
|
$
365,526
|
Infusion
Services - service revenue
|
2,838
|
|
2,301
|
|
10,080
|
|
8,756
|
Total
Infusion Services revenue
|
135,623
|
|
102,459
|
|
481,586
|
|
374,282
|
|
|
|
|
|
|
|
|
Home
Health Services - service revenue
|
18,320
|
|
17,206
|
|
69,190
|
|
69,635
|
PBM
Services - service revenue
|
26,795
|
|
38,600
|
|
111,861
|
|
110,589
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
180,738
|
|
$
158,265
|
|
$
662,637
|
|
$
554,506
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA by Segment before corporate overhead:
|
|
|
|
|
|
|
|
Infusion
Services
|
$
11,024
|
|
$
9,947
|
|
$
36,764
|
|
$
35,128
|
Home
Health Services
|
1,844
|
|
1,498
|
|
5,401
|
|
5,954
|
PBM
Services
|
6,292
|
|
9,274
|
|
25,659
|
|
30,122
|
Total
Segment Adjusted EBITDA
|
19,160
|
|
20,719
|
|
67,824
|
|
71,204
|
|
|
|
|
|
|
|
|
Corporate
overhead
|
(7,090)
|
|
(5,853)
|
|
(26,755)
|
|
(23,308)
|
Consolidated Adjusted EBITDA
|
12,070
|
|
14,866
|
|
41,069
|
|
47,896
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(6,362)
|
|
(6,167)
|
|
(26,067)
|
|
(25,542)
|
Income tax
(expense) benefit
|
1,795
|
|
(2,841)
|
|
4,439
|
|
(435)
|
Depreciation
|
(2,398)
|
|
(1,828)
|
|
(8,513)
|
|
(6,591)
|
Amortization of intangibles
|
(1,113)
|
|
(880)
|
|
(3,957)
|
|
(3,376)
|
Stock-based compensation expense
|
(1,724)
|
|
(484)
|
|
(6,122)
|
|
(4,467)
|
Acquisition and integration expenses
|
(2,241)
|
|
-
|
|
(4,046)
|
|
—
|
Restructuring and other expenses
|
(1,446)
|
|
(101)
|
|
(5,143)
|
|
(7,909)
|
Net (loss)
income:
|
$
(1,419)
|
|
$
2,565
|
|
$
(8,340)
|
|
$
(424)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
6,685
|
|
$
4,826
|
Home
Health Services
|
|
|
|
|
171
|
|
170
|
PBM
Services
|
|
|
|
|
0
|
|
0
|
Corporate
unallocated
|
|
|
|
|
4,130
|
|
2,857
|
Total
|
|
|
|
|
$
10,986
|
|
$
7,853
|
|
|
|
|
|
|
|
|
Depreciation Expense:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
4,347
|
|
$
5,242
|
Home
Health Services
|
|
|
|
|
111
|
|
48
|
PBM
Services
|
|
|
|
|
0
|
|
0
|
Corporate
unallocated
|
|
|
|
|
4,055
|
|
1,301
|
Total
|
|
|
|
|
$
8,513
|
|
$
6,591
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
438,623
|
|
$
353,999
|
Home
Health Services
|
|
|
|
|
62,403
|
|
64,672
|
PBM
Services
|
|
|
|
|
36,354
|
|
40,418
|
Corporate
unallocated
|
|
|
|
|
95,813
|
|
24,348
|
Assets
from discontinued operations
|
|
|
|
|
0
|
|
59,005
|
Assets
associated with discontinued operations, not sold
|
|
|
|
|
9,183
|
|
134,660
|
Total
|
|
|
|
|
$
642,376
|
|
$
677,102
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
304,282
|
|
$
265,859
|
Home
Health Services
|
|
|
|
|
33,784
|
|
33,784
|
PBM
Services
|
|
|
|
|
12,744
|
|
12,744
|
Total
|
|
|
|
|
$
350,810
|
|
$
312,387
|
Schedule 5
|
BIOSCRIP, INC
|
|
Reconciliation between GAAP and Non-GAAP Earnings
Per Share
|
(in
thousands)
|
|
|
|
Three
Months Ended
|
|
Years
Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
1,2
|
|
2011
3,4
|
|
2012
5,6
|
|
2011
7,8
|
Net income
from continuing operations
|
$
(1,419)
|
|
$
2,565
|
|
$
(8,340)
|
|
$
(424)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and other expenses
|
871
|
|
61
|
|
3,099
|
|
4,798
|
|
|
Acquisition and integration expenses
|
1,350
|
|
-
|
|
2,438
|
|
-
|
|
|
Amortization of intangibles
|
671
|
|
534
|
|
2,384
|
|
2,048
|
|
|
Compensation under stock-based compensation
plans
|
1,039
|
|
294
|
|
3,689
|
|
2,710
|
Non-GAAP
Net income from continuing operations
|
$
2,512
|
|
$
3,454
|
|
$
3,270
|
|
$
9,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share from continuing operations, basic and diluted
|
$
(0.03)
|
|
$
0.05
|
|
$
(0.15)
|
|
$
(0.01)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and other related costs
|
0.02
|
|
-
|
|
0.06
|
|
0.09
|
|
|
Acquisition and integration expenses
|
0.02
|
|
-
|
|
0.04
|
|
-
|
|
|
Amortization of intangibles
|
0.01
|
|
0.01
|
|
0.04
|
|
0.04
|
|
|
Compensation under stock-based compensation
plans
|
0.02
|
|
0.01
|
|
0.07
|
|
0.05
|
Non-GAAP
earnings per share from continuing operations, basic and
diluted
|
$
0.04
|
|
$
0.07
|
|
$
0.06
|
|
$
0.17
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding, basic
|
56,922
|
|
54,972
|
|
56,239
|
|
54,505
|
Weighted
average shares outstanding, diluted
|
57,948
|
|
55,608
|
|
57,001
|
|
55,150
|
Schedule 5
|
BIOSCRIP, INC
|
|
Reconciliation between GAAP and Non-GAAP Earnings
Per Share
|
(in
thousands)
|
|
|
(1)
|
For the
three months ended December 31, 2012, non-GAAP net income from
continuing operations adjustments are net of tax, calculated using
an annual effective tax rate method. The tax expense netted
against restructuring and other expenses, acquisition and
integration expenses, amortization of intangibles, and stock-based
compensation expense was $575, $891, $442, and $685
respectively.
|
|
|
|
|
(2)
|
For the
three months ended December 31, 2012, non-GAAP Adjusted EPS per
basic and diluted share from continuing operations adjustments are
net of tax, calculated using an annual effective tax rate
method. The tax expense per basic and diluted share netted
against restructuring and other expenses, acquisition and
integration expenses, amortization of intangibles, and stock-based
compensation expense was $(0.01), $(0.02), $(0.01), and $(0.01) per
share, respectively.
|
|
|
|
|
|
(3)
|
For the
three months ended December 31, 2011, non-GAAP net income from
continuing operations adjustments are net of tax, calculated using
an annual effective tax rate method. The tax expense netted
against restructuring and other expenses, amortization of
intangibles, and stock-based compensation expense was $40, $346,
and $190, respectively.
|
|
|
|
|
(4)
|
For the
three months ended December 31, 2011, non-GAAP Adjusted EPS per
basic and diluted share from continuing operations adjustments are
net of tax, calculated using an annual effective tax rate
method. The tax expense per basic and diluted share netted
against restructuring and other expenses, amortization of
intangibles, and stock-based compensation expense were $(0.00),
$(0.01), and $(0.00) per share, respectively.
|
|
|
|
|
|
(5)
|
For the
year ended December 31, 2012, non-GAAP net income from continuing
operations adjustments are net of tax, calculated using an annual
effective tax rate method. The tax expense netted against
restructuring and other expenses, acquisition and integration
expenses, amortization of intangibles, and stock-based compensation
expense was $2,044, $1,608, 1,573, and $2,433,
respectively.
|
|
|
|
|
(6)
|
For the
year ended December 31, 2012, non-GAAP Adjusted EPS per basic and
diluted share from continuing operations adjustments are net of
tax, calculated using an annual effective tax rate method.
The tax expense per basic and diluted share netted against
restructuring and other expenses, acquisition and integration
expenses, amortization of intangibles, and stock-based compensation
expense was $(0.04), $(0.03), $(0.03), and $(0.04) per share,
respectively.
|
|
|
|
|
|
(7)
|
For the
year ended December 31, 2011, non-GAAP net income from continuing
operations adjustments are net of tax, calculated using an annual
effective tax rate method. The tax expense netted against
restructuring and other expenses, amortization of intangibles, and
stock-based compensation expense was $3,111, $1,328, and $1,757,
respectively.
|
|
|
|
|
(8)
|
For the
year ended December 31, 2011, non-GAAP Adjusted EPS per basic and
diluted share from continuing operations adjustments are net of
tax, calculated using an annual effective tax rate method.
The tax expense per basic and diluted share netted against
restructuring and other expenses, amortization of intangibles, and
stock-based compensation expense were $(0.06), $(0.02), and $(0.03)
per share, respectively.
|
|
|
|
SOURCE BioScrip, Inc.