BIOS BioPlus Acquisition Corporation

BioScrip, Inc. (NASDAQ:BIOS) ("BioScrip" or the "Company"), the largest independent national provider of infusion and home care management solutions, today announced that the Company has filed timely its Annual Report on Form 10-K for the year ended December 31, 2017 with the U.S. Securities and Exchange Commission (“SEC”), within the 15-day automatic extension period granted through its Form 12b-25 filing on March 16, 2018.

As disclosed on the Company’s Form 10-K filed today with the SEC, the Company’s full year 2017 financial results reflect anticipated immaterial corrections to the preliminary financial results reported in the Company’s press release dated March 8, 2018.  These immaterial corrections  predominately relate to accounts receivable, accounts payable, and accrued liability suspense accounts.  Below is a summary of the impact of these immaterial corrections on certain items reported in the Company’s March 8, 2018 press release:

	Year Ended December 31, 2017
In $000s	March 8, 2018Press Release		Corrections		Reductionin Bonus Expense		As Disclosedin 10-K
Net revenue	817,190		—		—		817,190
Gross profit	271,331		(2,089	)	—		269,242
Total operating expenses	270,125		(1) 594		(150	)	270,569
Interest expense	52,357		(285	)	—		52,072
Income tax benefit	3,900		230		—		4,130
(Loss) income from continuing operations, net of income taxes	(61,285	)	(2,168	)	150		(63,303	)
(Loss) income from discontinued operations, net of income taxes	(1,320	)	427		—		(893	)
Net (loss) income	(62,605	)	(1,741	)	150		(64,196	)
Adjusted EBITDA	45,023		(166	)	150		45,007

(1) The following operating expenses decreased: Other operating expenses $349, Bad debt expense $409, and General and administrative expenses $1,165.  The following operating expenses increased: Change in fair value of equity linked liabilities $793, Restructuring, acquisition, integration, and other expenses, net $305, and Depreciation and amortization $1,419.

“BioScrip concluded its previously announced management-initiated accounting review and corrected certain immaterial errors in the Company’s financial statements,” said Daniel E. Greenleaf, President and Chief Executive Officer. “In addressing these primarily legacy issues in a transparent manner, our new leadership team has taken the necessary proactive steps to ensure the accuracy of our financial statements.  While the errors identified were immaterial in nature, we are implementing a thorough remediation plan to address related weaknesses in our internal controls.  BioScrip’s business fundamentals have never been stronger and we are committed to delivering continued improvement in 2018 and long-term sustainable growth and value creation to our stakeholders.” 

Additionally, the following table sets forth the effect of immaterial corrections to the Company’s 2016 and 2015 statements of operations, as reported on the Company’s Form 10-K:

	Year Ended December 31, 2016													Year Ended December 31, 2015
In $000s	Previously Reported					Corrections				As Revised				Previously Reported				Corrections				As Revised
Net revenue		935,589				—				935,589				982,223				—				982,223
Gross profit		265,631				(3,549	)			262,082				260,915				(963	)			259,952
Total operating expenses		263,702				(1,081	)			262,621				548,562				803				549,365
Interest expense		38,235				(663	)			37,572				37,313				(375	)			36,938
Loss from continuing operations, net of income taxes		(34,367	)			(1,805	)			(36,172	)			(303,428	)			(1,391	)			(304,819	)
(Loss) income from discontinued operations, net of income taxes		(7,139	)			546				(6,593	)			3,721				970				4,691
Net loss		(41,506	)			(1,259	)			(42,765	)			(299,707	)			(421	)			(300,128	)
Adjusted EBITDA		30,852				(2,156	)			28,696				15,864				(1,645	)			14,219

The following table sets forth the effect of immaterial corrections to the Company’s 2016 balance sheet, as reported on the Company’s Form 10-K:

	Year Ended December 31, 2016
In $000s	Previously Reported				Corrections				As Revised
Total assets		607,740				(2,755	)			604,985
Total liabilities	567,301				(697		)		566,604
Additional paid-in capital	611,844				(162		)		611,682
Accumulated deficit	(643,419		)		(1,896		)		(645,315		)
Total stockholders' equity	(31,563		)		(2,058		)		(33,621		)
Total liabilities and stockholders' equity	607,740				(2,755		)		604,985

About BioScrip, Inc.

BioScrip, Inc. is the largest independent national provider of infusion and home care management solutions, with approximately 2,200 teammates and nearly 80 service locations across the U.S. BioScrip partners with physicians, hospital systems, payors, pharmaceutical manufacturers and skilled nursing facilities 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.

Investor Contacts

Stephen Deitsch                                                                        Chief Financial Officer & Treasurer                                       T:  (720) 697-5200                                                                        stephen.deitsch@bioscrip.com         

Kalle Ahl, CFAThe Equity GroupT:  (212) 836-9614kahl@equityny.com                                      

Forward-Looking Statements – Safe Harbor

This press release includes statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding guidance, projections of certain measures of the Company's results of operations, projections of future levels of certain charges and expenses, incremental cost structure improvements and other statements regarding the Company's financial improvement plan and strategy and anticipated effects of the Cures Act. You can identify these statements by the fact that they do not relate strictly to historical or current facts. In some cases, forward-looking statements can be identified by words such as "may," "should," "could," "anticipate," "estimate," "expect," "project," "outlook," "aim," "intend," "plan," "believe," "predict," "potential," "continue" or comparable terms. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Important factors that could cause actual results to differ materially from those in the forward-looking statement include but are not limited to risks associated with: the Company’s ability to make principal and interest payments on our debt and unsecured notes and satisfy the other covenants contained in its debt agreements; the Company’s ability to grow its core Infusion revenues; the Company's ability to continue to execute its financial improvement plan to reduce operating costs and focus its business on its Infusion Services segment; the Company’s ability to evaluate opportunities for improvement and implement solutions as part of its strategic review process; the success of the Company’s initiatives to mitigate the impact of the Cures Act on its business; reductions in federal, state and commercial reimbursement for the Company's products and services; increased government regulation related to the health care and insurance industries; as well as the risks described in the Company's periodic filings with the Securities and Exchange Commission. The Company does not undertake any duty to update these forward-looking statements after the date hereof, even though the Company's situation may change in the future. All of the forward-looking statements herein are qualified by these cautionary statements.

Note Regarding Use of Non-GAAP Financial Measures

In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies. Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, impairment of goodwill, stock-based compensation expense, and restructuring, integration and other expenses. As part of restructuring, the Company may incur significant charges such as the write down of certain long−lived assets, temporary redundant expenses, retraining expenses, potential cash bonus payments and potential accelerated payments or terminated costs for certain of its contractual obligations. Management believes that Adjusted EBITDA provides useful supplemental information regarding the performance of BioScrip’s business operations and facilitates comparisons to the Company’s historical operating results. For a full reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, please see the attachment to this earnings release.

BIOSCRIP, INC. AND SUBSIDIARIESRECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES(in thousands)

	Twelve Months Ended
	12/31/2017				12/31/2016				12/31/2015
Income (loss) from continuing operations, net of income taxes	$  (63,303		)		$  (36,172		)		$  (304,819		)
Interest expense, net		(52,072	)			(37,572	)			(36,938	)
Loss on extinguishment of debt		(13,453	)			—				—
(Loss) gain on dispositions		(581	)			3,954				—
Income tax benefit (expense)		4,130				(2,015	)			21,532
Depreciation and Amortization expense		(27,725	)			(22,025	)			(22,864	)
Impairment of goodwill		—				—				(251,850	)
Stock-based compensation expense		(2,360	)			(1,801	)			(4,513	)
Change in fair value of equity linked liabilities		(3,587	)			10,450				—
Acquisition, integration, restructuring, and other expenses, net		(12,662	)			(15,859	)			(24,405	)
Consolidated Adjusted EBITDA	$  45,007				$  28,696				$  14,219