(Source: Business Wire)
BioScrip, Inc. (Nasdaq: BIOS) today announced third quarter net income
of $5.7 million, or $0.14 per diluted share, on revenues of $333.5
million. These results compare to net income of $1.4 million, or $0.04
per share, on revenues of $359.4 million for the third quarter of 2008.
Third quarter 2009 EBITDAO was $8.9 million compared to $5.3 million for
the same period a year ago.
Richard H. Friedman, BioScrip's Chairman and Chief Executive Officer,
stated, "Our results reflect the steady progress of our strategy to
provide a full and comprehensive continuum of care, expand our clinical
management reach and local market presence, while delivering improved
operating margins. We continue to upgrade our talent base with key hires
to support the growth of our business."
Results of Operations
Revenue for the third quarter of 2009 totaled $333.5 million, compared
to $359.4 million for the same period a year ago. Revenue declines were
expected due to the previously announced elimination of the Medicare
Competitive Acquisition Program ("CAP") effective December 31, 2008 and
the termination of the United Health Group ("UHG") organ transplant and
HIV/AIDS contracts, partially offset by increased sales of higher margin
infusion therapies and other specialty sales. Excluding the effects of
these contracts, 2009 third quarter revenues were 7.9% higher than the
2008 comparable period.
Gross profit for the third quarter of 2009 was $41.5 million, or 12.4%
compared to $36.1 million, or 10% for the third quarter of 2008. The
increase was primarily the result of improved product mix due to our
continued focus on higher margin therapies as well as improved supply
chain programs.
Third quarter 2009 operating profit was $6.7 million, or 2.0% compared
to $2.8 million, or 0.8% for the third quarter of 2008. The increase in
operating income was a result of the improved product and therapy mix
discussed above, which was partially offset by bad debt expense
returning to normalized levels.
Revenue for the nine months ended September 30, 2009 totaled $988.0
million compared to $1,035.3 million for the comparable period a year
ago. Excluding the elimination of CAP and UHG, the year-to-date 2009
revenue grew 7.4% over the comparable period in 2008.
Gross profit for the nine months ended September 30, 2009 was $115.9
million, or 11.7% compared to $104.2 million, or 10.1% for the same
period in 2008. The increase in gross margin for the year was the result
of improved product and therapy mix, the elimination of lower margin
business and improved supply chain programs.
Operating profit for the nine months ended September 30, 2009 was $16.1
million, or 1.6% compared to $6.4 million, or 0.6% for the comparable
period of 2008. Net income for the nine months ended 2009 was $13.4
million, or $0.34 per diluted share, compared to $2.6 million, or $0.07
per diluted share, for the same period one year ago.
The Company also announced that Steven Schelhammer has resigned as a
member of the company's Board of Directors in order to devote his
full-time attention to his position as Chief Executive Officer of
Phytel, Inc. "On behalf of the entire Board of Directors, we thank Steve
for his important contributions to BioScrip," stated Friedman.
Conference Call
BioScrip will host a conference call to discuss its third quarter 2009
financial results on Friday, October 30, at 8:30 a.m. Eastern Time.
Interested parties may participate in the conference call by dialing
800-920-2986(US), or 212-231-2900 (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 Friday, October 30, through
12:00 p.m. Eastern Time on Friday, November 13, by dialing 800-633-8284
(US), or 402-977-9140 (International), and entering reservation number
21440281. 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 payers 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.
TABLES TO FOLLOW
BIOSCRIP, INC
CONSOLIDATED BALANCE SHEETS
SCHEDULE 1
(in thousands, except for share amounts)
September 30, December 31,
2009 2008
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ - $ -
Receivables, less allowance for doubtful accounts of $9,828 and $11,629
at September 30, 2009 and December 31, 2008, respectively 147,326 158,649
Inventory 47,833 45,227
Prepaid expenses and other current assets 3,866 2,766
Total current assets 199,025 206,642
Property and equipment, net 15,674 14,748
Other assets 983 1,069
Goodwill 24,498 24,498
Total assets $ 240,180 $ 246,957
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Line of credit $ 39,584 $ 50,411
Accounts payable 62,909 76,936
Claims payable 4,228 5,230
Amounts due to plan sponsors 5,951 5,646
Accrued expenses and other current liabilities 10,200 9,575
Total current liabilities 122,872 147,798
Deferred taxes 1,095 533
Income taxes payable 3,512 3,089
Total liabilities 127,479 151,420
Stockholders' equity
Common stock, $.0001 par value; 75,000,000 shares authorized; shares issued:
42,349,728, and 41,622,629, respectively; shares outstanding; 39,272,399 and
38,691,356, respectively 4 4
Treasury stock, shares at cost: 2,653,007 and 2,624,186, respectively (10,366 ) (10,288 )
Additional paid-in capital 252,274 248,441
Accumulated deficit (129,211 ) (142,620 )
Total stockholders' equity 112,701 95,537
Total liabilities and stockholders' equity $ 240,180 $ 246,957
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Schedule 2
BIOSCRIP, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenue $ 333,476 $ 359,427 $ 987,974 $ 1,035,338
Cost of revenue 291,980 323,346 872,100 931,159
Gross profit 41,496 36,081 115,874 104,179
% of Revenue 12.4 % 10.0 % 11.7 % 10.1 %
Operating expenses
Selling, general and administrative expenses 32,402 31,859 94,335 95,031
Bad debt expense 2,433 1,413 5,410 2,786
Total operating expense 34,835 33,272 99,745 97,817
% of Revenue 10.4 % 9.3 % 10.1 % 9.4 %
Income from operations 6,661 2,809 16,129 6,362
Interest expense, net 447 669 1,471 1,931
Income before income taxes 6,214 2,140 14,658 4,431
Tax provision 467 730 1,249 1,879
Net income $ 5,747 $ 1,410 $ 13,409 $ 2,552
Basic weighted average shares 38,961 38,403 38,807 38,359
Diluted weighted average shares 40,184 38,934 39,345 39,187
Basic net income per share $ 0.15 $ 0.04 $ 0.35 $ 0.07
Diluted net income per share $ 0.14 $ 0.04 $ 0.34 $ 0.07
(1) Certain amounts have been relassified to conform to the current presentation. Suchclassifications have had no impact on income from operations or net income.
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Schedule 3
BIOSCRIP, INC
Reconciliation between GAAP and Non-GAAP Measures
(in thousands, except per share amounts)
(unaudited)
Three Months Nine Months
September 30, September 30,
2009 2008 2009 2008
Net Income $ 5,747 $ 1,410 $ 13,409 $ 2,552
Addback items:
Depreciation and Amortization 1,356 1,620 3,596 4,685
Net interest 447 669 1,471 1,931
Taxes 467 730 1,249 1,879
Stock-based compensation expense 897 864 2,385 2,859
Earnings before interest, taxes, depreciation, amortization and
share-based compensation expense (EBITDAO) $ 8,914 $ 5,293 $ 22,110 $ 13,906
Net Income $ 5,747 $ 1,410 $ 13,409 $ 2,552
Add back items:
OIG Settlement - 795 - 795
Pro forma Net Income $ 5,747 $ 2,205 $ 13,409 $ 3,347
Basic weighted average shares 38,961 38,403 38,807 38,359
Diluted weighted average shares 40,184 38,934 39,345 39,187
Basic pro forma net income per share $ 0.15 $ 0.06 $ 0.35 $ 0.09
Diluted pro forma net income per share $ 0.14 $ 0.06 $ 0.34 $ 0.09
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