BioScrip, Inc. (Nasdaq: BIOS) today announced first quarter net income
of $3.3 million, or $0.08 per diluted share, on revenue of $325.7
million. These results compare to a net loss of $0.5 million, or $0.01
per share, on revenue of $327.5 million for the first quarter of 2008.
First quarter 2009 EBITDAO was $6.2 million compared to $2.7 million for
the same period a year ago.
Richard H. Friedman, BioScrip’s Chairman and Chief Executive Officer,
stated, "During the quarter, we strengthened our management
organization, delivered on margin expansion, met our annual cost
reduction target and increased our operating cash flows. Operationally
we continue to expand our national footprint as well as our
bioscripcare™ clinical management programs which are built upon our
‘Center of Excellence’ model.”
Results of Operations
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First Quarter Highlights
|
|
|
|
1st Quarter 2009
|
|
1st Quarter 2008
|
|
|
|
($'s in Millions)
|
|
Actual
|
|
Actual
|
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% Change
|
|
Revenues
|
|
$
|
325.7
|
|
|
$
|
327.5
|
|
|
-0.5
|
%
|
|
|
|
|
|
|
|
|
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Gross Margin
|
|
$
|
36.0
|
|
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$
|
32.4
|
|
|
11.1
|
%
|
|
Gross Margin %
|
|
|
11.0
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%
|
|
|
9.9
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%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense
|
|
$
|
31.7
|
|
|
$
|
32.2
|
|
|
-1.6
|
%
|
|
Operating Expense Percent
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|
|
9.7
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%
|
|
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9.8
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%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
$
|
4.3
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAO
|
|
$
|
6.2
|
|
|
$
|
2.7
|
|
|
129.6
|
%
|
Revenue for the first quarter of 2009 totaled $325.7 million compared to
$327.5 million for the same period a year ago. Excluding the impact of
the Medicare Competitive Acquisition Program (“CAP”) and the United
Health Group (“UHG”) organ transplant and HIV/AIDS contract, first
quarter 2009 revenues grew 6.3% over the comparable period in 2008. The
increase was due to the Company’s focus on higher priced disease
therapies including oncology, multiple sclerosis and immunology.
Gross profit for the first quarter of 2009 was $36.0 million compared to
$32.4 million for the first quarter of 2008. First quarter 2009 gross
margin was 11.0%, compared to 9.9% for the first quarter of 2008.
First quarter 2009 operating income was $4.3 million compared to $0.2
million for the first quarter of 2008. This increase was primarily due
to improved product mix, the exiting of CAP and cost reduction efforts,
partially offset by a return to normalized bad debt expense.
Balance Sheet Highlights
Accounts receivable days sales outstanding for the quarter ended March
31, 2009 were 44.3 days compared to 43.8 days for the fourth quarter of
2008. The increase in DSO is primarily due to slower payments from state
Medicaid programs over the past six months. Inventory days on hand for
the quarter ended March 31, 2009 were 12.3 days versus 11.8 days for the
fourth quarter of 2008. Days’ inventory on hand increased in the first
quarter as a result of strategic investments in inventory and the
transition to higher cost disease therapies.
Average borrowings during the first quarter were approximately $33.0
million, an improvement of $8.0 million over the fourth quarter of 2008
BioScrip’s total credit line is $85.0 million.
Conference Call
BioScrip will host a conference call to discuss its first quarter 2009
financial results on Thursday, April 30, at 9:00 a.m. Eastern Time.
Interested parties may participate in the conference call by dialing
866-740-0378 (US), or 706-679-9096 (International), 5-10 minutes prior
to the start of the call. A replay of the conference call will be
available from 12:00 p.m. Eastern Time on Thursday, April 30, through
12:00 p.m. Eastern Time on May 14, by dialing 800-633-8284 (US), or
402-977-9140 (International), and entering reservation #21422586. An
audio web cast and archive of the conference call will also be available
under the investor relations section of the BioScrip website at www.bioscrip.com.
About BioScrip, Inc.
BioScrip, Inc. (www.bioscrip.com)
(Nasdaq: BIOS) is a specialty pharmaceutical healthcare organization
that partners with patients, physicians, healthcare payors and
pharmaceutical manufacturers to provide access to medications and
management solutions to optimize outcomes for chronic and other complex
health care conditions.
Forward Looking Statements-Safe Harbor
This press release may contain statements which constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding the
intent, belief or current expectations of the Company, its directors, or
its officers with respect to the future operating performance of the
Company, 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 such differences are described in the
Company's periodic filings with the Securities and Exchange Commission.
Earnings before interest, taxes, depreciation, amortization, and option
expense ("EBITDAO") is a non-GAAP financial measure as defined under
U.S. Securities and Exchange Commission Regulation G. As required by
Regulation G, BioScrip has provided on Schedule 3 a reconciliation of
this measure to the most comparable GAAP financial measure. The non-GAAP
measure presented provides important insight into the ongoing operations
and a meaningful benchmark to evidence the Company's continuing
profitability trend.
|
Schedule 1
|
|
BIOSCRIP, INC
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except for share amounts)
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2009
|
|
2008
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Receivables, less allowance for doubtful accounts of $9,866 and
$11,629
|
|
|
|
|
|
at March 31, 2009 and December 31, 2008, respectively
|
|
|
144,612
|
|
|
|
158,649
|
|
|
Inventory
|
|
|
39,040
|
|
|
|
45,227
|
|
|
Prepaid expenses and other current assets
|
|
|
3,210
|
|
|
|
2,766
|
|
|
Total current assets
|
|
|
186,862
|
|
|
|
206,642
|
|
|
Property and equipment, net
|
|
|
14,714
|
|
|
|
14,748
|
|
|
Other assets
|
|
|
1,103
|
|
|
|
1,069
|
|
|
Goodwill
|
|
|
24,498
|
|
|
|
24,498
|
|
|
Total assets
|
|
$
|
227,177
|
|
|
$
|
246,957
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Line of credit
|
|
$
|
36,114
|
|
|
$
|
50,411
|
|
|
Accounts payable
|
|
|
67,341
|
|
|
|
76,936
|
|
|
Claims payable
|
|
|
4,891
|
|
|
|
5,230
|
|
|
Amounts due to plan sponsors
|
|
|
5,699
|
|
|
|
5,646
|
|
|
Accrued expenses and other current liabilities
|
|
|
9,607
|
|
|
|
9,575
|
|
|
Total current liabilities
|
|
|
123,652
|
|
|
|
147,798
|
|
|
Deferred taxes
|
|
|
730
|
|
|
|
533
|
|
|
Income taxes payable
|
|
|
3,229
|
|
|
|
3,089
|
|
|
Total liabilities
|
|
|
127,611
|
|
|
|
151,420
|
|
|
Stockholders' equity
|
|
|
|
|
|
Common stock, $.0001 par value; 75,000,000 shares authorized; shares
issued:
|
|
|
|
|
|
41,763,194, and 41,622,629, respectively; shares outstanding;
38,718,278 and
|
|
|
|
|
|
38,691,356, respectively
|
|
|
4
|
|
|
|
4
|
|
|
Treasury stock, shares at cost: 2,642,260 and 2,624,186, respectively
|
|
|
(10,320
|
)
|
|
|
(10,288
|
)
|
|
Additional paid-in capital
|
|
|
249,217
|
|
|
|
248,441
|
|
|
Accumulated deficit
|
|
|
(139,335
|
)
|
|
|
(142,620
|
)
|
|
Total stockholders' equity
|
|
|
99,566
|
|
|
|
95,537
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
227,177
|
|
|
$
|
246,957
|
|
|
Schedule 2
|
|
BIOSCRIP, INC
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
|
|
(in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2009
|
|
2008
|
|
Revenue
|
|
$
|
325,749
|
|
|
$
|
327,471
|
|
|
Cost of revenue
|
|
|
289,759
|
|
|
|
295,099
|
|
|
Gross profit
|
|
|
35,990
|
|
|
|
32,372
|
|
|
% of Revenue
|
|
|
11.0
|
%
|
|
|
9.9
|
%
|
|
Operating expenses
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
30,327
|
|
|
|
31,537
|
|
|
Bad debt expense
|
|
|
1,380
|
|
|
|
650
|
|
|
Total operating expense
|
|
|
31,707
|
|
|
|
32,187
|
|
|
% of Revenue
|
|
|
9.7
|
%
|
|
|
9.8
|
%
|
|
Income from operations
|
|
|
4,283
|
|
|
|
185
|
|
|
Interest expense, net
|
|
|
(594
|
)
|
|
|
(585
|
)
|
|
Income (loss) before income taxes
|
|
|
3,689
|
|
|
|
(400
|
)
|
|
Tax provision
|
|
|
404
|
|
|
|
77
|
|
|
Net income (loss)
|
|
$
|
3,285
|
|
|
$
|
(477
|
)
|
|
|
|
|
|
|
|
Basic weighted average shares
|
|
|
38,709
|
|
|
|
38,177
|
|
|
Diluted weighted average shares
|
|
|
38,787
|
|
|
|
38,177
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share
|
|
$
|
0.08
|
|
|
$
|
(0.01
|
)
|
|
Diluted net income (loss) per share
|
|
$
|
0.08
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Certain amounts have been reclassified to conform to the current
presentation. Such classifications have had no impact on income
from operations or net income.
|
|
Schedule 3
|
|
BIOSCRIP, INC
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP Measures
|
|
(in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
Three Months
|
|
|
|
Ended March 31,
|
|
|
|
2009
|
|
2008
|
|
Net income (loss)
|
|
$
|
3,285
|
|
$
|
(477
|
)
|
|
Addback items:
|
|
|
|
|
|
Depreciation & Amortization
|
|
|
1,111
|
|
|
1,552
|
|
|
Net interest
|
|
|
594
|
|
|
585
|
|
|
Taxes
|
|
|
404
|
|
|
77
|
|
|
Stock-based compensation expense
|
|
|
776
|
|
|
957
|
|
|
Earnings before interest, taxes, depreciation, amortization and
|
|
|
|
|
|
share-based compensation expense (EBITDAO)
|
|
$
|
6,170
|
|
$
|
2,694
|
|
BioScrip, Inc.
Stanley G. Rosenbaum, 952-979-3768
Executive
Vice President and Chief Financial Officer
srosenbaum@bioscrip.com
or
In-Site
Communications
Lisa M. Wilson, 917-543-9932
lwilson@insitecony.com
