ELMSFORD, N.Y., Aug. 6, 2014 /PRNewswire/ -- BioScrip, Inc.
(NASDAQ: BIOS) today announced its financial results for the second
quarter of 2014. Second quarter revenue from continuing operations
was $247.1 million, and the net loss
from continuing operations, net of income taxes, was $18.6 million, or $0.27 per basic and diluted share. Non-GAAP
adjusted loss from continuing operations per basic
and diluted share was $0.07.
Second Quarter Highlights
- Total revenue increased by $74.8
million, or 43.4%, as compared to the prior year period.
Revenue from the Infusion Services segment increased by
$74.6 million, or 47.8%, as compared
to the prior year period. Organic revenue growth for the Infusion
Services segment remained in the double digits year-over-year.
- Gross profit from continuing operations was $65.4 million, or 26.4% of revenue, as compared
to $57.8 million, or 33.5% of
revenue, in the prior year period. The decline in gross profit
margin percentage was driven primarily by the decline in the higher
margin PBM Services segment.
- Adjusted EBITDA from continuing operations was $11.0 million, an increase of $0.2 million over the prior year period. Adjusted
EBITDA from the Infusion Services segment increased by $2.2 million, or 15.7%, as compared to the prior
year, offset by a $3.1 million, or
62.6%, decrease in the PBM Services segment. Adjusted EBITDA also
included $4.6 million of income
related to the decrease of the fair value of contingent
consideration relating to the Company's Infusion acquisitions,
offset by a $5.5 million increase in
the bad debt and contractual reserve provisions relating to the
integration of our acquisitions. Additionally, Adjusted EBITDA
included $0.5 million of increased
investment in reimbursement resources in the form of overtime,
temporary labor and third-party professional fees.
- As a result of the continued focus on cash collections,
BioScrip has increased monthly average accounts receivable
collections from $69.3 million in the
first quarter of 2014 to $80.9
million in the second quarter of 2014.
"During the second quarter, we made continued progress in
executing our strategic priorities to deliver strong organic
growth, improve cash flows and strengthen our balance sheet. Our
team members worked tirelessly to deliver strong cash collections
throughout the quarter, and we expect to continue this momentum
into the third quarter," said Rick
Smith, President and Chief Executive Officer of
BioScrip.
"We are a leading infusion provider and believe our recent
accomplishments position us well for continued improvement in
operating performance as we head into the second half of the year.
We intend to continue to deliver exceptional clinical care to
patients, and strengthen our relationships with physicians,
hospital systems and managed care companies to deliver enhanced
value for our shareholders," concluded Smith.
Results of Operations
Second Quarter 2014 versus Second Quarter 2013
Total
revenue for the second quarter of 2014 was $247.1 million, compared to $172.3 million for the same period a year ago, an
increase of $74.8 million, or 43.4%.
Infusion Services segment revenue was $230.5
million in the second quarter as compared to $156.0 million for the same period in 2013. The
47.8% increase was driven primarily by continued strong
double-digit organic growth and the acquisition of CarePoint
Partners. PBM Services segment revenue was stable year-over-year at
$16.6 million, versus $16.3 million in the second quarter of last
year.
Consolidated gross profit for the second quarter of 2014 was
$65.4 million, or 26.4% of revenue,
compared to $57.8 million, or 33.5%
of revenue, for the second quarter of 2013. The increase in gross
profit was the result of organic growth and the acquisition of
CarePoint Partners, offset by a decline in the PBM Services
segment. The decline in gross profit margin percentage was driven
primarily by the decline in the higher-margin PBM Services
segment.
During the second quarter of 2014, Infusion Services segment
Adjusted EBITDA was $16.2 million,
compared to $14.0 million in the
prior year quarter. The 15.7% improvement in Adjusted EBITDA in the
Infusion Services segment resulted primarily from organic revenue
growth and the acquisition of CarePoint Partners. Infusion Services
segment Adjusted EBITDA also included $4.6
million of income related to the decrease of the fair value
of contingent consideration relating to our infusion acquisitions,
offset by a $5.5 million increase in
the bad debt and contractual reserve provisions relating to the
integration of our acquisitions.
PBM Services segment revenue was $16.6
million for the second quarter of 2014, compared to
$16.3 million for the prior year
period. The increase was related to the growth in traditional PBM
volume, offset by declines in prescription discount card volume.
PBM Services segment Adjusted EBITDA was $1.8 million, or 11.1% of segment revenue, for
the second quarter of 2014 compared to $4.9
million, or 30.1% of segment revenue, in the prior year
quarter.
On a consolidated basis, BioScrip reported $11.0 million of Adjusted EBITDA during the
second quarter of 2014, or 4.5% of total revenue, compared to
$10.8 million, or 6.3% of total
revenue, in the same period last year. Adjusted EBITDA included
$0.5 million of increased investment
in reimbursement resources in the form of overtime, temporary labor
and third-party professional fees.
Interest expense in the second quarter of 2014 was $9.1 million compared to $6.5 million in the prior year period.
Income tax expense for continuing operations in the second
quarter of 2014 was $3.1 million
compared to an income tax expense of $0.1
million in the prior year period.
The loss from continuing operations, net of taxes, for the
second quarter of 2014 was $18.6
million, or a loss of $0.27
per basic and diluted share, compared to a net loss of $9.3 million, or $0.14 per basic and diluted share, in the prior
year period.
Liquidity and Capital Resources
For the six months ended June 30,
2014, BioScrip used $26.7
million in net cash from continuing operating activities,
compared to cash used of $22.8
million during the six months ended June 30, 2013. Sequentially, net cash from
continuing operating activities improved by $22.0 million from the first quarter of 2014. As
of June 30, 2014, the Company's cash
balance was $1.5 million, and it had
$418.7 million of outstanding debt
and an undrawn $75 million revolving
credit facility. Capital expenditures for the second quarter of
2014 were $3.9 million.
Outlook
The Company projects that its 2014 revenue will be at the high
end of its guidance range of $940.0 million
to $980.0 million and that its 2014 Adjusted EBITDA will be
in a range of $55.0 million to $60.0
million. This reflects the Company's current assessment of
the business and assumes:
- Infusion Services segment is expected to continue to deliver
double-digit organic revenue growth;
- Infusion Services segment Adjusted EBITDA margin percentage is
expected to sequentially improve;
- Momentum to collect older receivables impacted by the
integration of the acquisitions continues in the second half of the
year. These efforts are on-going, but timing may be uncertain;
and
- Continued stability is expected in our PBM Services segment
from an adjusted EBITDA perspective, consistent with its
performance in the first half of the year.
Conference Call
BioScrip will host a conference call to discuss its second
quarter 2014 financial results on August 7,
2014 at 8:30 a.m. Eastern
Time. Interested parties may participate in the conference
call by dialing 800-679-2940 (US), or 303-223-2690 (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 21728610. 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 management solutions. BioScrip partners with physicians,
hospital systems, facilities-based providers, 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 and home care services
from over 80 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 Services
segment organically or through acquisitions and obtain financing in
connection therewith; 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, 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.
(Financial Tables Follow)
Schedule
1
|
BIOSCRIP, INC. AND
SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands, except
for share amounts)
|
|
|
|
|
|
June 30,
2014
|
|
December 31,
2013
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,547
|
|
$
1,001
|
Receivables, less
allowance for doubtful accounts of $26,340 and $17,836 at June 30,
2014 and December 31, 2013, respectively
|
190,479
|
|
172,187
|
Inventory
|
34,478
|
|
34,341
|
Prepaid
expenses and other current assets
|
12,289
|
|
14,110
|
Current
assets of discontinued operations
|
-
|
|
15,316
|
Total current
assets
|
238,793
|
|
236,955
|
Property and
equipment, net
|
39,861
|
|
41,182
|
Goodwill
|
572,931
|
|
571,337
|
Intangible assets,
net
|
13,501
|
|
16,824
|
Deferred financing
costs
|
17,418
|
|
17,184
|
Other non-current
assets
|
1,318
|
|
3,733
|
Non-current assets of
discontinued operations
|
-
|
|
49,643
|
Total
assets
|
$
883,822
|
|
$
936,858
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long-term debt
|
$
431
|
|
$
60,257
|
Accounts
payable
|
69,747
|
|
63,575
|
Claims
payable
|
4,022
|
|
2,547
|
Amounts due to plan
sponsors
|
5,642
|
|
4,826
|
Accrued
interest
|
6,937
|
|
2,173
|
Accrued expenses and
other current liabilities
|
38,801
|
|
34,352
|
Current liabilities
of discontinued operations
|
-
|
|
6,576
|
Total current
liabilities
|
125,580
|
|
174,306
|
Long-term debt, net
of current portion
|
418,313
|
|
375,322
|
Deferred
taxes
|
16,328
|
|
8,954
|
Other non-current
liabilities
|
8,579
|
|
17,540
|
Other non-current
liabilities of discontinued operations
|
-
|
|
6,153
|
Total
liabilities
|
568,800
|
|
582,275
|
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: 71,177,319
and 70,711,439, respectively; shares outstanding: 68,594,799 and
68,128,919 as of June 30, 2014 and December 31, 2013,
respectively
|
8
|
|
7
|
Treasury stock,
2,582,520 shares at cost
|
(10,311)
|
|
(10,311)
|
Additional paid-in
capital
|
525,195
|
|
519,625
|
Accumulated
deficit
|
(199,870)
|
|
(154,738)
|
Total
stockholders' equity
|
315,022
|
|
354,583
|
Total liabilities
and stockholders' equity
|
$
883,822
|
|
$
936,858
|
|
|
|
|
Schedule
2
|
BIOSCRIP, INC. AND
SUBSIDIARIES
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Product
revenue
|
$ 225,277
|
|
$ 150,559
|
|
$ 441,180
|
|
$ 300,583
|
Service
revenue
|
21,848
|
|
21,764
|
|
45,238
|
|
52,760
|
Total
revenue
|
247,125
|
|
172,323
|
|
486,418
|
|
353,343
|
|
|
|
|
|
|
|
|
Cost of product
revenue
|
161,658
|
|
102,725
|
|
313,398
|
|
208,258
|
Cost of service
revenue
|
20,111
|
|
11,823
|
|
42,564
|
|
31,323
|
Total cost of
revenue
|
181,769
|
|
114,548
|
|
355,962
|
|
239,581
|
|
|
|
|
|
|
|
|
Gross
profit
|
65,356
|
|
57,775
|
|
130,456
|
|
113,762
|
% of
revenues
|
26.4%
|
|
33.5%
|
|
26.8%
|
|
32.2%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
57,244
|
|
50,295
|
|
116,424
|
|
97,217
|
Change in fair value
of contingent consideration
|
(4,646)
|
|
-
|
|
(6,855)
|
|
-
|
Bad debt
expense
|
8,360
|
|
3,461
|
|
14,961
|
|
6,641
|
Acquisition and
integration expenses
|
5,333
|
|
3,512
|
|
11,832
|
|
8,135
|
Restructuring and
other expenses
|
3,858
|
|
1,439
|
|
8,450
|
|
2,679
|
Amortization of
intangibles
|
1,620
|
|
1,710
|
|
3,323
|
|
3,792
|
Loss from
continuing operations
|
(6,413)
|
|
(2,642)
|
|
(17,679)
|
|
(4,702)
|
Interest expense,
net
|
9,135
|
|
6,508
|
|
19,634
|
|
12,986
|
Loss from
continuing operations, before income taxes
|
(15,548)
|
|
(9,150)
|
|
(37,313)
|
|
(17,688)
|
Income tax
(benefit)
|
3,063
|
|
146
|
|
6,554
|
|
(29)
|
Loss from
continuing operations, net of income taxes
|
(18,611)
|
|
(9,296)
|
|
(43,867)
|
|
(17,659)
|
Income (loss) from
discontinued operations, net of income taxes
|
(1,207)
|
|
416
|
|
(1,265)
|
|
651
|
Net
loss
|
$ (19,818)
|
|
$
(8,880)
|
|
$ (45,132)
|
|
$ (17,008)
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
Loss from continuing
operations, basic and diluted
|
$
(0.27)
|
|
$
(0.14)
|
|
$
(0.64)
|
|
$
(0.29)
|
Income (loss) from
discontinued operations, basic and diluted
|
(0.02)
|
|
-
|
|
(0.02)
|
|
0.01
|
Net loss, basic
and diluted
|
$
(0.29)
|
|
$
(0.14)
|
|
$
(0.66)
|
|
$
(0.28)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,468
|
|
65,025
|
|
68,354
|
|
61,058
|
Schedule
3
|
BIOSCRIP, INC AND
SUBSIDIARIES
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
Six Months Ended
June 30,
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(45,132)
|
|
$
(17,008)
|
Less: Income (loss)
from discontinued operations, net of income taxes
|
(1,265)
|
|
651
|
Loss from continuing
operations, net of income taxes
|
(43,867)
|
|
(17,659)
|
Adjustments to
reconcile (loss) from continuing operations, net of income taxes to
net cash provided by (used in) operating activities:
|
|
|
|
Depreciation
|
7,794
|
|
4,945
|
Amortization of
intangibles
|
3,323
|
|
3,792
|
Amortization of
deferred financing costs and debt discount
|
2,745
|
|
722
|
Change in fair value
of contingent consideration
|
(6,855)
|
|
-
|
Change in deferred
income tax
|
6,358
|
|
1,018
|
Compensation under
stock-based compensation plans
|
4,884
|
|
5,833
|
Loss on disposal of
fixed assets
|
-
|
|
(16)
|
Equity in net loss of
unconsolidated affiliate
|
-
|
|
661
|
Changes in assets and
liabilities, net of acquired business:
|
|
|
|
Receivables, net of
bad debt expense
|
(19,019)
|
|
(15,890)
|
Inventory
|
(58)
|
|
10,097
|
Prepaid expenses and
other assets
|
3,745
|
|
1,281
|
Accounts
payable
|
6,105
|
|
6,320
|
Claims
payable
|
1,475
|
|
(3,564)
|
Amounts due to plan
sponsors
|
816
|
|
(7,836)
|
Accrued
interest
|
4,764
|
|
(38)
|
Accrued expenses and
other liabilities
|
1,116
|
|
(12,468)
|
Net cash provided by
(used in) operating activities from continuing
operations
|
(26,674)
|
|
(22,802)
|
Net cash provided by
(used in) operating activities from discontinued
operations
|
(4,304)
|
|
745
|
Net cash provided
by (used in) operating activities
|
(30,978)
|
|
(22,057)
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment, net
|
(6,925)
|
|
(10,977)
|
Proceeds from sales
of property and equipment
|
-
|
|
234
|
Cash consideration
paid for acquisitions, net of cash acquired
|
(454)
|
|
(72,921)
|
Net cash proceeds
from sale of unconsolidated affiliate
|
-
|
|
8,509
|
Cash advances to
unconsolidated affiliate
|
-
|
|
(2,348)
|
Net cash provided by
(used in) investing activities from continuing
operations
|
(7,379)
|
|
(77,503)
|
Net cash provided by
(used in) investing activities from discontinued
operations
|
57,688
|
|
(37)
|
Net cash provided
by (used in) investing activities
|
50,309
|
|
(77,540)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from public
stock offering
|
-
|
|
118,570
|
Proceeds from new
senior notes due 2021, net of fees paid to lenders
|
193,868
|
|
-
|
Deferred and other
financing costs
|
(1,161)
|
|
-
|
Borrowings on line of
credit
|
85,400
|
|
351,859
|
Repayments on line of
credit
|
(125,403)
|
|
(351,859)
|
Principal payments on
long-term debt
|
(172,243)
|
|
-
|
Repayments of capital
leases
|
(151)
|
|
(884)
|
Net proceeds from
exercise of common stock purchase warrants
|
-
|
|
399
|
Net proceeds from
exercise of employee stock compensation plans
|
905
|
|
1,052
|
Net cash provided
by (used in) financing activities from continuing
operations
|
(18,785)
|
|
119,137
|
Net change in cash
and cash equivalents
|
546
|
|
19,540
|
Cash and cash
equivalents - beginning of period
|
1,001
|
|
62,101
|
Cash and cash
equivalents - end of period
|
$
1,547
|
|
$
81,641
|
DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
Cash paid during the
period for interest
|
$
12,232
|
|
$
12,327
|
Cash paid during the
period for income taxes
|
$
349
|
|
$
235
|
Schedule
4
|
BIOSCRIP,
INC
|
|
Reconciliation
between GAAP and Non-GAAP Measures
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Results of
Operations:
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Infusion Services -
product revenue
|
$
225,277
|
|
$
150,559
|
|
$
441,180
|
|
$
300,583
|
Infusion Services -
service revenue
|
5,271
|
|
5,424
|
|
10,437
|
|
9,668
|
Total Infusion
Services revenue
|
230,548
|
|
155,983
|
|
451,617
|
|
310,251
|
PBM Services -
service revenue
|
16,577
|
|
16,340
|
|
34,801
|
|
43,092
|
Total
revenue
|
$
247,125
|
|
$
172,323
|
|
$
486,418
|
|
$
353,343
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment before corporate overhead:
|
|
|
|
|
|
|
|
Infusion
Services
|
$
16,194
|
|
$
13,995
|
|
$
31,155
|
|
$
25,992
|
PBM
Services
|
1,837
|
|
4,916
|
|
3,512
|
|
11,111
|
Total Segment
Adjusted EBITDA
|
18,031
|
|
18,911
|
|
34,667
|
|
37,103
|
|
|
|
|
|
|
|
|
Corporate
overhead
|
(7,016)
|
|
(8,132)
|
|
(14,492)
|
|
(16,048)
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA
|
11,015
|
|
10,779
|
|
20,175
|
|
21,055
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(9,135)
|
|
(6,508)
|
|
(19,634)
|
|
(12,986)
|
Income tax (expense)
benefit
|
(3,063)
|
|
(146)
|
|
(6,554)
|
|
29
|
Depreciation
|
(3,958)
|
|
(2,527)
|
|
(7,794)
|
|
(4,945)
|
Amortization of
intangibles
|
(1,620)
|
|
(1,710)
|
|
(3,323)
|
|
(3,792)
|
Stock-based
compensation expense
|
(1,998)
|
|
(3,860)
|
|
(4,884)
|
|
(5,833)
|
Acquisition and
integration expenses
|
(5,333)
|
|
(3,512)
|
|
(11,832)
|
|
(8,135)
|
Restructuring and
other expenses and investments (1)
|
(4,519)
|
|
(1,812)
|
|
(10,021)
|
|
(3,052)
|
Loss from
continuing operations, net of income taxes
|
$
(18,611)
|
|
$
(9,296)
|
|
$
(43,867)
|
|
$
(17,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Data
|
|
|
|
|
June
30,
|
|
Deecember
31,
|
|
|
|
|
|
2014
|
|
2013
|
Total
Assets:
|
|
|
|
|
|
|
|
Infusion
Services
|
|
|
|
|
$
806,127
|
|
$
793,475
|
PBM
Services
|
|
|
|
|
27,203
|
|
25,239
|
Corporate
unallocated
|
|
|
|
|
50,485
|
|
53,169
|
Assets from
discontinued operations
|
|
|
|
|
-
|
|
64,959
|
Assets
associated with discontinued operations, not sold
|
|
|
|
|
7
|
|
16
|
Total
Assets
|
|
|
|
|
$
883,822
|
|
$
936,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Restructuring and other expenses and investments include costs
associated with restructuring such as employee severance, third
party consulting costs and facility closure costs; training and
transitional costs as well as redundant salaries; and, losses in
the short-term investment of the unconsolidated affiliate and
investment in start-up branch locations.
|
Schedule
5
|
BIOSCRIP,
INC
|
|
Reconciliation
between GAAP and Non-GAAP Earnings Per Share
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2014
1,3
|
|
2013
2,3
|
|
2014
1,3
|
|
2013
2,3
|
Net income from
continuing operations, net of income taxes
|
$ (18,611)
|
|
$
(9,296)
|
|
$ (43,867)
|
|
$ (17,659)
|
|
Non-GAAP adjustments,
net of income tax:
|
|
|
|
|
|
|
|
|
|
Restructuring and
other expenses and investments 3
|
4,519
|
|
1,753
|
|
10,021
|
|
2,966
|
|
|
Acquisition and
integration expenses
|
5,333
|
|
3,399
|
|
11,832
|
|
7,906
|
|
|
Amortization of
intangibles
|
1,620
|
|
1,655
|
|
3,323
|
|
3,685
|
|
|
Compensation under
stock-based compensation plans
|
1,998
|
|
3,735
|
|
4,884
|
|
5,669
|
Non-GAAP net income
from continuing operations
|
$
(5,141)
|
|
$
1,246
|
|
$ (13,807)
|
|
$
2,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations, basic and diluted
|
$
(0.27)
|
|
$
(0.14)
|
|
$
(0.64)
|
|
$
(0.29)
|
|
Non-GAAP adjustments,
net of income tax:
|
|
|
|
|
|
|
|
|
|
Restructuring and
other expenses and investments3
|
0.07
|
|
0.03
|
|
0.15
|
|
0.05
|
|
|
Acquisition and
integration expenses
|
0.08
|
|
0.05
|
|
0.17
|
|
0.13
|
|
|
Amortization of
intangibles
|
0.02
|
|
0.03
|
|
0.05
|
|
0.06
|
|
|
Compensation under
stock-based compensation plans
|
0.03
|
|
0.06
|
|
0.07
|
|
0.10
|
Non-GAAP earnings per
share from continuing operations, basic and diluted
|
$
(0.07)
|
|
$
0.03
|
|
$
(0.20)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
68,468
|
|
65,025
|
|
68,354
|
|
61,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
For the three months
and six months ended June 30, 2014, non-GAAP adjustments to net
loss from continuing operations are net of tax, calculated using an
annual effective tax rate method. However, the Company has
recorded a full valuation allowance on its deferred tax assets and,
as a result, no tax benefit is being recognized for the non-GAAP
net loss from continuing operations. The tax expense in
continuing operations relates to indefinite-lived intangible assets
and an insignificant amount of state tax expense which would not be
impacted by the non-GAAP adjustments above. Accordingly, no
tax expense has been allocated to the non-GAAP
adjustments.
|
2
|
For the three months
and six months ended June 30, 2013, 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 $59, $113, $55 and $125,
respectively, for the three months ended June 30, 2013 and $86,
$229, $107 and $164, respectively, for the six months ended June
30, 2013. The tax effect of these adjustments on a per share
basis is not meaningful.
|
3
|
Restructuring and
other expenses and investments include costs associated with
restructuring such as employee severance, third party consulting
costs and facility closure costs; training and transitional costs
as well as redundant salaries; losses in the short-term investment
in the unconsolidated affiliate; and investments in start-up branch
locations.
|
Contact:
Hai Tran, Chief Financial
Officer
BioScrip
952-979-3768
SOURCE BioScrip, Inc.