ELMSFORD, N.Y., Feb. 26, 2014 /PRNewswire/ -- BioScrip, Inc.
(NASDAQ: BIOS) today announced 2013 fourth quarter financial
results. Fourth quarter revenue from continuing operations was
$243.5 million and the net loss from
continuing operations was $15.4
million, or $0.23 per basic
and diluted share.
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 and twelve
months ended December 31, 2013 and
2012, 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 $62.8 million, or 34.7%, as compared to the prior
year. Revenue from the Infusion Services segment increased by
$76.4 million, or 56.3%, as compared
to the prior year. Organic revenue growth for the Infusion Services
segment remained in the double digits year-over-year;
- Gross profit from continuing operations was $74.9 million, or 30.8% of revenue, as compared
to $60.4 million, or 33.4% of
revenue, in the prior year period. Gross profit margin from the
Infusion Services segment increased by 60 basis points from the
prior year, offset by declines in gross profit margins in the
non-core segments;
- Adjusted EBITDA from continuing operations was $13.0 million, an increase of $0.9 million over the prior year. Adjusted EBITDA
from the Infusion Services segment increased by $8.5 million, or 76.7% as compared to the prior
year, offset by continued weakness in the non-core segments.
Adjusted EBITDA also included a $5.4
million favorable adjustment to the fair value of contingent
consideration relating to our infusion acquisitions, offset by a
$5.6 million increase in the bad debt
provision. Adjusted EBITDA was further impacted by the timing of
cost reductions executed throughout the fourth quarter of 2013, and
$0.3 million in recruiting expenses
related to the expansion of the Board; and
- The Company has executed on a profit improvement plan that is
expected to yield more than $10
million of annualized savings and reductions in operating
expenses. These cost reductions began at the end of the third
quarter of 2013 in conjunction with the acquisition of CarePoint
and are substantially complete. The Company continues to evaluate
other opportunities to drive improved operating leverage.
- The integration of HomeChoice is essentially complete and the
acquisition is delivering EBITDA margins between 12% and 14% as
originally contemplated. The improved EBITDA margins are driven
primarily by synergies from enhanced purchasing capabilities, the
leveraging of operating infrastructure and consolidation of
overlapping locations.
"Fourth quarter and full year 2013 results reflect the progress
we've made on growing our infusion business and streamlining our
cost structure consistent with our strategic plan. The national
infusion platform that we have carefully built over the past three
years is starting to deliver results. On a consolidated basis,
fourth quarter EBITDA grew by 7.8% and revenues grew by 34.7% over
the prior year period, further underscoring the strength of our
infusion program," said Rick Smith,
President and Chief Executive Officer of BioScrip.
"We believe that 2014 is off to a strong start. The recently
announced agreement to sell our Home Health division, combined with
our debt refinancing, enhances our financial flexibility and allows
us to focus on growing our infusion platform to drive shareholder
value creation. Our strong clinical programs, customer-focused
model and flexible go-to-market approach are the cornerstones of
our infusion program and position us very well in the industry,"
concluded Smith.
Results of Operations
Fourth Quarter 2013 versus Fourth Quarter 2012
Revenue from continuing operations for the fourth quarter of 2013
totaled $243.5 million, compared to
$180.7 million for the same period a
year ago, an increase of $62.8
million or 34.7%. Infusion Services segment revenue was
$212.0 million in the fourth quarter
as compared to $135.6 million for the
same period in 2012. The 56.3% increase was driven primarily by the
acquisitions of HomeChoice and CarePoint, as well as continued
strong organic growth.
Consolidated gross profit for the fourth quarter of 2013 was
$74.9 million, or 30.8% of revenue,
compared to $60.4 million, or 33.4%
of revenue, for the fourth quarter of 2012. The increase in gross
profit was the result of the acquisitions of HomeChoice and
CarePoint and organic growth. The decline in gross profit margin
percentage resulted primarily from declines in non-core segments,
as well as growth of lower-margin Infusion Services revenues as a
percent of total revenue versus the higher margin non-core segment
revenue.
During the fourth quarter of 2013, Infusion Services segment
Adjusted EBITDA was $19.5 million, or
9.2% of segment revenue, compared to $11.0
million, or 8.1% of segment revenue, in the prior year
quarter. The 76.7% improvement in Adjusted EBITDA in the Infusion
Services segment resulted primarily from organic revenue growth and
the HomeChoice and CarePoint acquisitions. Infusion Services
segment Adjusted EBITDA also included a $5.4
million favorable adjustment to the fair value of contingent
consideration relating to our infusion acquisitions, offset by a
$5.6 million increase in the bad debt
provision.
Home Health Services segment revenue was $18.0 million for the fourth quarter of 2013, as
compared to $18.3 million in the
prior year quarter. Home Health Services segment Adjusted EBITDA in
the fourth quarter of 2013 was $0.3
million, or 1.9% of segment revenue. This compares to
segment Adjusted EBITDA of $1.8
million, or 10.1% of segment revenue, in the comparable
prior year period. The decrease in Adjusted EBITDA margin
percentage in the Home Health Services segment was primarily due to
increased volume of lower-margin private duty nursing.
PBM Services segment revenue was $13.5
million for the fourth quarter of 2013, compared to
$26.8 million for the prior year
period. The decline was related to the termination of a large but
low-margin client during the first quarter of 2013, and declines in
discount card revenue primarily driven by the pricing cap related
to a large discount pharmacy retailer. PBM Services segment
Adjusted EBITDA was $1.7 million, or
12.7% of segment revenue, for the fourth quarter of 2013 compared
to $6.3 million, or 23.5% of segment
revenue, in the prior year quarter.
On a consolidated basis, BioScrip reported $13.0 million of Adjusted EBITDA during the
fourth quarter of 2013, or 5.3% of total revenue, compared to
$12.1 million, or 6.7% of total
revenue, in the same period last year. Adjusted EBITDA was impacted
by the timing of cost reductions executed throughout the fourth
quarter of 2013, and $0.3 million in
recruiting expenses related to the expansion of the Board.
Interest expense in the fourth quarter of 2013 was $8.0 million compared to $6.4 million in the prior year period.
Income tax expense for continuing operations in the fourth
quarter of 2013 was $2.6 million
compared to an income tax benefit of $1.8
million in the prior year period.
The loss from continuing operations, net of taxes, for the
fourth quarter of 2013 was $15.4
million, or a loss of $0.23
per basic and diluted share, compared to a net loss of $1.4 million, or $0.03 per basic and diluted share, in the prior
year period.
Twelve Months Ended 2013 versus Twelve Months Ended
2012
Revenue from continuing operations for the twelve
months ended December 31, 2013
totaled $842.2 million, compared to
$662.6 million for the same period a
year ago, a 27.1% increase. Infusion Services segment revenue was
$697.3 million for the twelve months
ended December 31, 2013, compared to
$481.6 million for the same period in
2012. The 44.8% increase was driven primarily by organic growth and
additional revenue related to the acquisition of HomeChoice and
CarePoint during 2013.
Consolidated gross profit for the twelve months ended
December 31, 2013, was $271.8 million, or 32.3% of revenue, compared to
$225.0 million, or 33.9% of revenue,
in the comparable prior year period. The net increase in gross
profit was due primarily to the acquisitions of HomeChoice and
CarePoint and organic growth. Consolidated gross profit margin
percentage was primarily impacted by declines in non-core segments,
as well as growth of lower-margin Infusion Services revenues as a
percent of total revenue versus the higher margin non-core segment
revenue.
During the twelve months ended December
31, 2013, Infusion Services Segment Adjusted EBITDA was
$60.7 million, or 8.7% of segment
revenue, compared to $36.8 million,
or 7.6% of segment revenue, in the prior year.
Home Health Services segment revenue for the twelve months ended
December 31, 2013, was $72.3 million, compared to $69.2 million in the prior year. The 4.5%
increase was primarily the result of volume growth in private duty
nursing activity. Home Health Services Segment Adjusted EBITDA for
the twelve months ended December 31,
2013 was $2.9 million, or 4.0%
of segment revenue. This compares to Segment Adjusted EBITDA of
$5.4 million, or 7.8% of segment
revenue, in the prior year.
PBM Services segment revenue for the twelve months ended
December 31, 2013 was $72.6 million, compared to $111.9 million for the prior year period. The
35.1% decrease was primarily due to the termination of a large but
low-margin client during the first quarter of 2013, and declines in
discount card revenue primarily driven by the pricing cap related
to a large discount pharmacy retailer. PBM Services Segment
Adjusted EBITDA was $17.1 million, or
23.6% of segment revenue, for the twelve months ended December 31, 2013 compared to $25.7 million, or 22.9% of segment revenue, in
the prior year.
On a consolidated basis, BioScrip reported $48.6 million of Adjusted EBITDA for the twelve
months ended December 31, 2013, or
5.8% of total revenue, compared to $41.1
million, or 6.2% of total revenue, in the prior year.
Interest expense for the twelve months ended December 31, 2013 was $28.2 million compared to $26.1 million in the prior year.
Income tax expense from continuing operations for the twelve
months ended December 31, 2013 was
$2.5 million, compared to an income
tax benefit of $4.4 million in
2012.
The loss from continuing operations, net of taxes, for the
twelve months ended December 31, 2013
was $53.6 million, or $0.84 per basic and diluted share, compared to a
net loss of $8.3 million, or
$0.15 per basic and diluted share, in
the prior year.
Liquidity and Capital Resources
For the twelve months
ended December 31, 2013, BioScrip
used $38.5 million in net cash from
continuing operating activities, compared to cash provided of
$49.9 million during the twelve
months of 2012, a decrease of $88.4
million. The increase in cash used in operating activities
was primarily due to the loss from continuing operations net of
income taxes of $53.6 million, as
well as an increase in net accounts receivables of $58.2 million as a result of the acquisitions and
organic growth. As of December 31,
2013, the Company's cash balance was $1.0 million and it had $435.6 million of outstanding debt. Subsequent to
year end, BioScrip issued $200
million aggregate principal amount of 8.875% Senior Notes
due 2021. The net proceeds of $194.5
million were used to pay down amounts outstanding under the
Company's Senior Secured First Lien Revolving Credit Facility and a
portion of its Senior Secured First Lien Term Loan B. On
February 1, 2014, the
Company entered into a Stock Purchase Agreement to sell its
Home Health business for approximately $60
million in cash. The transaction, subject to customary
closing conditions, is expected to close on March 31, 2014. Net proceeds from the sale are
expected to be used to pay down outstanding debt.
Outlook
BioScrip's 2014 projected financial performance contemplates the
following:
- Infusion Services segment revenue is expected to grow by over
20% with double digit organic revenue growth;
- The projected growth in Infusion Services segment revenue is
anticipated to be offset by declines in the PBM Services segment
and the sale of the Home Health Services business;
- Gross profit margin percentage for the Infusion Services
segment is targeted to improve by 200 basis points by the end of
2014;
- Consolidated gross profit margin percentage is forecasted to
decline due to the sale of the Home Health Services business, the
decline in the PBM Services segment gross profit margin and the mix
of business as the lower gross profit margin Infusion Services
segment is on pace to grow faster than the higher margin PBM
Services segment;
- Infusion Services segment Adjusted EBITDA margin percentage is
targeted at 10% by the fourth quarter;
- Seasonality in the Infusion Services segment in the fourth
quarter typically generates the highest Adjusted EBITDA of the year
and the first quarter typically generates the lowest Adjusted
EBITDA of the year; and
- Corporate Overhead is projected to be less than $8.0 million per quarter.
Conference Call
BioScrip will host a conference call to discuss its fourth
quarter 2013 financial results on February
27, 2014 at 8:30 a.m. Eastern
Time. Interested parties may participate in the conference
call by dialing 800-616-4018 (US), or 303-223-2680 (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 21708103. 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. is a leading national provider of infusion and
home care solutions. BioScrip partners with physicians, healthcare
payors, government agencies, hospital systems 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 quality,
customer service, and values that promote positive outcomes and an
enhanced quality of life for those it serves. BioScrip provides its
infusion and home care services from 108 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," "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 integrate the CarePoint business and other
acquisitions; the Company's ability to grow its Infusion segment
organically or through acquisitions and obtain financing in
connection therewith; the Company's ability to complete the sale of
the Home Health Services Business; its ability to reduce operating
costs while sustaining growth; 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, including the Company's annual report on Form 10-K for
the year ended December 31, 2012 and
its quarterly report on Form 10-Q for the quarter ended
September 30, 2013. 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, loss on extinguishment of debt, income
tax expense, depreciation and amortization, 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.
Adjusted EPS, as defined by the Company, represents earnings per
basic and diluted share, excluding the same elements in calculating
Adjusted EBITDA 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.
Contact:
Hai Tran, Chief Financial
Officer
BioScrip
952-979-3768
Schedule
1
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands, except
for share amounts)
|
|
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,001
|
|
$
62,101
|
Receivables, less
allowance for doubtful accounts of $19,213 and $22,212 at December
31, 2013 and December 31, 2012, respectively
|
187,301
|
|
129,103
|
Inventory
|
34,341
|
|
34,034
|
Prepaid expenses and
other current assets
|
14,313
|
|
10,189
|
Total
current assets
|
236,956
|
|
235,427
|
Property and
equipment, net
|
41,612
|
|
23,721
|
Goodwill
|
605,121
|
|
350,810
|
Intangible assets,
net
|
32,224
|
|
17,446
|
Deferred financing
costs
|
17,184
|
|
2,877
|
Investments in and
advances to unconsolidated affiliate
|
-
|
|
10,042
|
Other non-current
assets
|
3,761
|
|
2,053
|
Total
assets
|
$
936,858
|
|
$
642,376
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
60,257
|
|
$
953
|
Accounts
payable
|
64,342
|
|
34,438
|
Claims
payable
|
2,547
|
|
7,411
|
Amounts due to plan
sponsors
|
5,090
|
|
18,173
|
Accrued
interest
|
2,173
|
|
5,803
|
Accrued expenses and
other current liabilities
|
39,897
|
|
41,491
|
Total
current liabilities
|
174,306
|
|
108,269
|
Long-term debt, net
of current portion
|
375,322
|
|
225,426
|
Deferred
taxes
|
15,107
|
|
10,291
|
Other non-current
liabilities
|
17,540
|
|
4,981
|
Total
liabilities
|
582,275
|
|
348,967
|
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; 70,711,439 and 59,600,713
shares issued and 68,128,919 and 57,026,957 shares outstanding as
of December 31, 2013 and 2012, respectively
|
7
|
|
6
|
Treasury stock,
2,582,520 shares at cost
|
(10,311)
|
|
(10,311)
|
Additional paid-in
capital
|
519,625
|
|
388,798
|
Accumulated
deficit
|
(154,738)
|
|
(85,084)
|
Total
stockholders' equity
|
354,583
|
|
293,409
|
Total liabilities
and stockholders' equity
|
$
936,858
|
|
$
642,376
|
Schedule
2
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Product
revenue
|
$
206,090
|
|
$132,785
|
|
$
675,684
|
|
$471,506
|
Service
revenue
|
37,422
|
|
47,953
|
|
166,511
|
|
191,131
|
Total
revenue
|
243,512
|
|
180,738
|
|
842,195
|
|
662,637
|
|
|
|
|
|
|
|
|
Cost of product
revenue
|
142,332
|
|
92,214
|
|
466,155
|
|
325,271
|
Cost of service
revenue
|
26,297
|
|
28,131
|
|
104,226
|
|
112,406
|
Total cost of
revenue
|
168,629
|
|
120,345
|
|
570,381
|
|
437,677
|
|
|
|
|
|
|
|
|
Gross
profit
|
74,883
|
|
60,393
|
|
271,814
|
|
224,960
|
% of
revenues
|
30.8%
|
|
33.4%
|
|
32.3%
|
|
33.9%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
65,865
|
|
49,087
|
|
233,038
|
|
184,491
|
Change in fair value
of contingent consideration
|
(5,374)
|
|
-
|
|
(5,786)
|
|
-
|
Bad debt
expense
|
9,935
|
|
3,358
|
|
20,963
|
|
14,035
|
Acquisition and
integration expenses
|
3,105
|
|
2,241
|
|
16,130
|
|
4,046
|
Restructuring and
other expenses
|
4,261
|
|
1,446
|
|
7,771
|
|
5,143
|
Amortization of
intangibles
|
1,870
|
|
1,113
|
|
6,671
|
|
3,957
|
Income (loss) from
operations
|
(4,779)
|
|
3,148
|
|
(6,973)
|
|
13,288
|
Interest expense,
net
|
8,029
|
|
6,362
|
|
28,197
|
|
26,067
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
15,898
|
|
-
|
Loss from
continuing operations, before income taxes
|
(12,808)
|
|
(3,214)
|
|
(51,068)
|
|
(12,779)
|
Income tax provision
(benefit)
|
2,569
|
|
(1,795)
|
|
2,538
|
|
(4,439)
|
Loss from
continuing operations, net of income taxes
|
(15,377)
|
|
(1,419)
|
|
(53,606)
|
|
(8,340)
|
Income (loss) from
discontinued operations, net of income taxes
|
(3,182)
|
|
8,599
|
|
(16,048)
|
|
73,047
|
Net income
(loss)
|
$(18,559)
|
|
$
7,180
|
|
$(69,654)
|
|
$64,707
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
Loss from continuing
operations, basic and diluted
|
$
(0.23)
|
|
$
(0.03)
|
|
$
(0.84)
|
|
$
(0.15)
|
Income (loss) from
discontinued operations, basic and diluted
|
(0.05)
|
|
0.15
|
|
(0.25)
|
|
1.30
|
Income (loss),
basic and diluted
|
$
(0.28)
|
|
$
0.12
|
|
$
(1.09)
|
|
$
1.15
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,097
|
|
56,922
|
|
64,560
|
|
56,239
|
Schedule
3
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
Years Ended
December 31,
|
|
|
2013
|
|
2012
|
Cash flows from
operating activities:
|
|
|
|
Net (loss)
income
|
$
(69,654)
|
|
$
64,707
|
Less: Income (loss)
from discontinued operations, net of income taxes
|
(16,048)
|
|
73,047
|
|
Loss from continuing
operations, net of income taxes
|
(53,606)
|
|
(8,340)
|
Adjustments to
reconcile net loss from continuing operations to net cash provided
(used in) by operating activities:
|
|
|
|
|
Depreciation
|
13,555
|
|
8,513
|
|
Amortization of
intangibles
|
6,671
|
|
3,957
|
|
Amortization of
deferred financing costs
|
2,260
|
|
1,261
|
|
Change in fair value
of contingent consideration
|
(5,786)
|
|
-
|
|
Change in deferred
income tax
|
4,816
|
|
(4)
|
|
Compensation under
stock-based compensation plans
|
9,450
|
|
6,122
|
|
Loss on disposal of
fixed assets
|
-
|
|
156
|
|
Loss on
extinguishment of debt
|
15,898
|
|
-
|
|
Equity in earnings of
unconsolidated affiliate
|
675
|
|
-
|
Changes in assets and
liabilities, net of acquired business:
|
|
|
|
|
Receivables, net of
bad debt expense
|
(31,861)
|
|
101,230
|
|
Inventory
|
4,939
|
|
(15,249)
|
|
Prepaid expenses and
other assets
|
(368)
|
|
3,726
|
|
Accounts
payable
|
22,136
|
|
(48,200)
|
|
Claims
payable
|
(4,864)
|
|
(4,354)
|
|
Amounts due to plan
sponsors
|
(13,084)
|
|
(7,046)
|
|
Accrued
interest
|
(3,627)
|
|
(22)
|
|
Accrued expenses and
other liabilities
|
(5,735)
|
|
8,112
|
|
Net cash
provided by (used in) operating activities from continuing
operations
|
(38,531)
|
|
49,862
|
|
Net cash
provided by (used in) operating activities from discontinued
operations
|
(16,048)
|
|
(22,978)
|
|
Net cash
(used in) provided by operating activities
|
(54,579)
|
|
26,884
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment, net
|
(25,617)
|
|
(10,986)
|
|
Cash consideration
paid for acquisitions, net of cash acquired
|
(282,981)
|
|
(43,046)
|
|
Net cash proceeds
from sale of unconsolidated affiliate
|
8,617
|
|
-
|
|
Cash advances to
unconsolidated affiliate
|
(2,363)
|
|
-
|
|
Cash consideration
paid to DS Pharmacy
|
-
|
|
(2,935)
|
|
Cash consideration
paid for unconsolidated affiliate, net of cash acquired
|
-
|
|
(10,652)
|
|
Net cash used
in investing activities from continuing operations
|
(302,344)
|
|
(67,619)
|
|
Net cash
provided by investing activities from discontinued
operations
|
-
|
|
161,499
|
|
Net cash
provided by (used in) investing activities
|
(302,344)
|
|
93,880
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from stock
offering
|
118,382
|
|
-
|
|
Proceeds from new
credit facility, net of fees paid to issuers
|
378,091
|
|
-
|
|
Repayment of 10 1/4%
senior unsecured notes
|
(237,397)
|
|
-
|
|
Borrowings on line of
credit
|
449,559
|
|
1,244,050
|
|
Repayments on line of
credit
|
(409,559)
|
|
(1,307,872)
|
|
Principal payments on
long-term debt
|
(5,000)
|
|
-
|
|
Repayments of capital
leases
|
(802)
|
|
(3,278)
|
|
Net proceeds from
exercise of employee stock compensation plans
|
2,549
|
|
8,611
|
|
Surrender of stock to
satisfy minimum tax withholding
|
-
|
|
(174)
|
|
Net cash
provided by (used in) financing activities
|
295,823
|
|
(58,663)
|
Net change in cash
and cash equivalents
|
(61,100)
|
|
62,101
|
Cash and cash
equivalents - beginning of period
|
62,101
|
|
-
|
Cash and cash
equivalents - end of period
|
$
1,001
|
|
$
62,101
|
DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
|
Cash paid during the
period for interest
|
$
22,598
|
|
$
25,589
|
|
Cash paid during the
period for income taxes, net of refunds
|
$
242
|
|
$
3,137
|
DISCLOSURE OF
NON-CASH TRANSACTIONS:
|
|
|
|
|
Capital lease
obligations incurred to acquire property and equipment
|
$
145
|
|
$
20
|
Schedule
4
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
Reconciliation
between GAAP and Non-GAAP Measures
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Results of
Operations:
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Infusion Services -
product revenue
|
$
206,090
|
|
$
132,785
|
|
$
675,684
|
|
$
471,506
|
Infusion Services -
service revenue
|
5,892
|
|
2,838
|
|
21,643
|
|
10,080
|
Total Infusion
Services revenue
|
211,982
|
|
135,623
|
|
697,327
|
|
481,586
|
|
|
|
|
|
|
|
|
Home Health Services
- service revenue
|
18,037
|
|
18,320
|
|
72,276
|
|
69,190
|
PBM Services -
service revenue
|
13,493
|
|
26,795
|
|
72,592
|
|
111,861
|
|
|
|
|
|
|
|
|
Total
revenue
|
$243,512
|
|
$180,738
|
|
$
842,195
|
|
$
662,637
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment before corporate overhead:
|
|
|
|
|
|
|
|
Infusion
Services
|
$
19,476
|
|
$
11,024
|
|
$
60,677
|
|
$
36,764
|
Home Health
Services
|
336
|
|
1,844
|
|
2,884
|
|
5,401
|
PBM
Services
|
1,713
|
|
6,292
|
|
17,110
|
|
25,659
|
Total Segment
Adjusted EBITDA
|
21,525
|
|
19,160
|
|
80,671
|
|
67,824
|
|
|
|
|
|
|
|
|
Corporate
overhead
|
(8,512)
|
|
(7,090)
|
|
(32,042)
|
|
(26,755)
|
Consolidated Adjusted
EBITDA
|
13,013
|
|
12,070
|
|
48,629
|
|
41,069
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(8,029)
|
|
(6,362)
|
|
(28,197)
|
|
(26,067)
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
(15,898)
|
|
-
|
Income tax (expense)
benefit
|
(2,569)
|
|
1,795
|
|
(2,538)
|
|
4,439
|
Depreciation
|
(5,257)
|
|
(2,398)
|
|
(13,555)
|
|
(8,513)
|
Amortization of
intangibles
|
(1,870)
|
|
(1,113)
|
|
(6,671)
|
|
(3,957)
|
Stock-based
compensation expense
|
(2,190)
|
|
(1,724)
|
|
(9,450)
|
|
(6,122)
|
Acquisition and
integration expenses
|
(3,105)
|
|
(2,240)
|
|
(16,130)
|
|
(4,046)
|
Restructuring and
other expenses and investments
|
(5,370)
|
|
(1,447)
|
|
(9,796)
|
|
(5,143)
|
Loss from
continuing operations, net of taxes
|
$
(15,377)
|
|
$
(1,419)
|
|
$
(53,606)
|
|
$
(8,340)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
15,972
|
|
$
6,685
|
Home Health
Services
|
|
|
|
|
69
|
|
171
|
PBM
Services
|
|
|
|
|
-
|
|
-
|
Corporate
unallocated
|
|
|
|
|
9,576
|
|
4,130
|
Total Capital
Expenditures
|
|
|
|
|
$
25,617
|
|
$
10,986
|
|
|
|
|
|
|
|
|
Depreciation
Expense:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
8,640
|
|
$
4,347
|
Home Health
Services
|
|
|
|
|
75
|
|
111
|
PBM
Services
|
|
|
|
|
-
|
|
-
|
Corporate
unallocated
|
|
|
|
|
4,840
|
|
4,055
|
Total Depreciation
Expense
|
|
|
|
|
$
13,555
|
|
$
8,513
|
|
|
|
|
|
|
|
|
Total
Assets:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
794,006
|
|
$
438,623
|
Home Health
Services
|
|
|
|
|
64,428
|
|
62,403
|
PBM
Services
|
|
|
|
|
25,239
|
|
36,354
|
Corporate
unallocated
|
|
|
|
|
53,169
|
|
95,813
|
Assets
associated with discontinued operations, not sold
|
|
|
16
|
|
9,183
|
Total
Assets
|
|
|
|
|
$
936,858
|
|
$
642,376
|
|
|
|
|
|
|
|
|
Goodwill:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
558,593
|
|
$
304,282
|
Home Health
Services
|
|
|
|
|
33,784
|
|
33,784
|
PBM
Services
|
|
|
|
|
12,744
|
|
12,744
|
Total
Goodwill
|
|
|
|
|
$
605,121
|
|
350,810
|
Schedule
5
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
Reconciliation
between GAAP and Non-GAAP Earnings Per Share
|
(in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013(1)
|
|
2012(2)
|
|
2013(3)
|
|
2012(4)
|
Loss from continuing
operations, net of income taxes
|
$ (15,377)
|
|
$ (1,419)
|
|
$ (53,606)
|
|
$ (8,340)
|
|
Non-GAAP adjustments,
net of income taxes:
|
|
|
|
|
|
|
|
|
|
Restructuring and
other related costs and investments
|
5,372
|
|
871
|
|
9,796
|
|
3,099
|
|
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
15,898
|
|
-
|
|
|
Acquisition and
integration expenses
|
3,105
|
|
1,350
|
|
16,130
|
|
2,438
|
|
|
Amortization of
intangibles
|
1,870
|
|
671
|
|
6,671
|
|
2,384
|
|
|
Compensation under
stock-based compensation plans
|
2,190
|
|
1,039
|
|
9,450
|
|
3,689
|
Non-GAAP net income
(loss) from continuing operations
|
$
(2,840)
|
|
$
2,511
|
|
$
4,339
|
|
$
3,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations, basic and diluted
|
$
(0.21)
|
|
$
(0.03)
|
|
$
(0.84)
|
|
$
(0.15)
|
|
Non-GAAP adjustments,
net of income taxes:
|
|
|
|
|
|
|
|
|
|
Restructuring and
other related costs and investments
|
0.08
|
|
0.02
|
|
0.15
|
|
0.06
|
|
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
0.25
|
|
-
|
|
|
Acquisition and
integration expenses
|
0.05
|
|
0.02
|
|
0.25
|
|
0.04
|
|
|
Amortization of
intangibles
|
0.03
|
|
0.01
|
|
0.10
|
|
0.04
|
|
|
Compensation under
stock-based compensation plans
|
0.03
|
|
0.02
|
|
0.15
|
|
0.07
|
Non-GAAP earnings per
share from continuing operations, basic and diluted
|
$
(0.02)
|
|
$
0.04
|
|
$
0.06
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,097
|
|
56,922
|
|
64,560
|
|
56,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the three months ended December 31, 2013 non-GAAP net loss
from continuing operations adjustments are net of tax, calculated
using an annual effective tax rate offset by the effect of our net
operating loss carryforwards. Because of our net operating
loss carryforwards, there is no tax effect related to the non-GAAP
adjustments above for the three months ended December 31,
2013.
|
|
|
|
|
|
|
|
|
|
|
(2) 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 and investments,
acquisition and integration expenses, amortization of intangibles,
and stock-based compensation expense was $575, $891, $442 and $685,
or $(0.01), $(0.02), $(0.01), and $(0.01) per share,
respectively.
|
|
|
|
|
|
|
|
|
|
|
(3) For
the year ended December 31, 2013 non-GAAP net loss from
continuing operations adjustments are net of tax, calculated using
an annual effective tax rate offset by the effect of our net
operating loss carryforwards. Because of our net operating
loss carryforwards, there is no tax effect related to the non-GAAP
adjustments above for the year ended December 31,
2013.
|
|
(4) 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 and investments,
acquisition and integration expenses, amortization of intangibles,
and stock-based compensation expense was $2,044, $1,608, $1,573 and
$2,433, or $(0.04), $(0.03), $(0.03), and $(0.04) per share,
respectively.
|
SOURCE BioScrip, Inc.