BioScrip Reports Fourth Quarter 2015 Financial Results
Q4 Consolidated Adjusted EBITDA of
Reaffirms 2016 Adjusted EBITDA Guidance of Between
Fourth Quarter Highlights
- Same store revenue growth (excluding closed locations) for the quarter grew
$10.3 million or 4.4% year over year on the strength of same store patient census growth of 8.4% for the same year over year period; - Accounts receivable agings improved significantly year over year through increased cash collections. Days sales outstanding improved 10 net days year over year from 51 net days in Q4 2014 down to 41 net days in Q4 2015;
- Consolidated Adjusted EBITDA was
$9.0 million for the fourth quarter 2015, sequentially up$2.8 million from the third quarter 2015 Adjusted EBITDA of$6.2 million . The sequential quarter increase was due primarily to the continued positive effects of the Company’s Financial Improvement Plan (“FIP”) to reduce its costs and focus on its core infusion business; and - The Company generated
$9.2 million of operating cash flow in the fourth quarter of 2015 through solid management of its working capital including strong cash collections which incorporated the cash collection of a$6.8 million accounts receivable balance owed by a former PBM service provider.
Results of Operations
Fourth Quarter 2015 versus Sequential Third Quarter 2015
Revenue from continuing operations for the fourth quarter of 2015 was
Consolidated gross profit for the fourth quarter of 2015 was
During the fourth quarter of 2015, consolidated Adjusted EBITDA from continuing operations increased sequentially by
Interest expense in the fourth quarter of 2015 was
Income tax expense for continuing operations in the fourth quarter of 2015 was
Net loss from continuing operations for the fourth quarter of 2015 was
After excluding restructuring costs and goodwill impairment (both tax effected), fourth quarter 2015 normalized net loss from continuing operations was
Twelve Months Ended 2015 versus Twelve Months Ended 2014
For the full year 2015, revenue from continuing operations was
Consolidated gross profit for the full year was
On a consolidated basis, Adjusted EBITDA from continuing operations for the full year 2015 was
Interest expense for the twelve months ended December 31, 2015 was $37.3 million, down
Income tax benefit from continuing operations was $21.5 million in 2015, compared to an income tax expense of $11.2 million in 2014.
For the full year 2015, net loss from continuing operations was ($313.2) million, or (
After excluding restructuring costs and goodwill impairment (both tax effected), normalized net loss from continuing operations for the full year 2015 was
Liquidity and Capital Resources
As of
As of
FIP Update
As previously announced, the FIP represented the Company’s initiative to accelerate long-term growth, reduce costs and increase operating efficiencies. In connection with the Financial Improvement Plan, we consolidated most corporate functions from our
FY 2016 Guidance
The Company is providing financial guidance for full year 2016 on a consolidated income statement basis as shown below:
(dollars in millions, except EPS) | Low | High | |||||
Revenues | $ | 875.0 | $ | 900.0 | |||
Adjusted EBITDA | 50.0 | 60.0 | |||||
adjusted ebitda margin | 5.7 | % | 6.7 | % | |||
Stock Compensation | 5.0 | 4.5 | |||||
Depreciation & Amortization | 22.0 | 21.0 | |||||
Interest Expense, net | 37.0 | 36.0 | |||||
Restructuring Costs | 5.0 | 3.0 | |||||
Income Tax (Benefit) | (1.1 | ) | (0.3 | ) | |||
Preferred Stock Dividends | 9.1 | 9.1 | |||||
Net Loss - Continuing Ops | $ | (27.0 | ) | $ | (13.3 | ) | |
Diluted Loss Per Common Share | $ | (0.39 | ) | $ | (0.19 | ) | |
Conference Call and Presentation
A replay of the conference call will be available for two weeks after the call's completion by dialing 855-859-2056 (US) or 404-537-3406 (International) and entering conference call ID number 55165908. An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the Company's website.
About
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 future levels of certain charges and expenses, and other statements regarding the Company's financial improvement plan 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," "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 or contribute to such differences include but are not limited to risks associated with: 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; 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
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 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.
TABLES TO FOLLOW
Schedule 1 | ||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except for share amounts) | ||||||||
December 31, | December 31, | |||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 15,577 | $ | 740 | ||||
Receivables, less allowance for doubtful accounts of $59,689 and $66,405 at December 31, 2015 and December 31, 2014, respectively | 108,365 | 131,656 | ||||||
Inventory | 42,983 | 37,215 | ||||||
Prepaid expenses and other current assets | 20,046 | 9,054 | ||||||
Assets held for sale | - | 9,550 | ||||||
Total current assets | 186,971 | 188,215 | ||||||
Property and equipment, net | 31,939 | 38,171 | ||||||
Goodwill | 308,729 | 560,579 | ||||||
Intangible assets, net | 5,128 | 10,269 | ||||||
Deferred financing costs | 12,577 | 13,463 | ||||||
Other non-current assets | 1,161 | 1,272 | ||||||
Non-current assets held for sale | - | 12,744 | ||||||
Total assets | $ | 546,505 | $ | 824,713 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 27,665 | $ | 5,395 | ||||
Accounts payable | 65,077 | 89,203 | ||||||
Amounts due to plan sponsors | 3,491 | 4,869 | ||||||
Accrued interest | 6,898 | 6,853 | ||||||
Accrued expenses and other current liabilities | 52,918 | 46,957 | ||||||
Liabilities held for sale | - | 9,976 | ||||||
Total current liabilities | 156,049 | 163,253 | ||||||
Long-term debt, net of current portion | 406,319 | 418,408 | ||||||
Deferred taxes | 236 | 18,118 | ||||||
Other non-current liabilities | 1,861 | 8,129 | ||||||
Total liabilities | 564,465 | 607,908 | ||||||
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized; 635,822 shares issued and outstanding; and, $69,702 liquidation preference as of December 31, 2015. No convertible preferred stock was authorized or outstanding as of December 31, 2014. |
62,918 | - | ||||||
Stockholders' equity | ||||||||
Preferred stock, $.0001 par value; 4,175,000 and 5,000,000 shares authorized as of December 31, 2015 and 2014, respectively; no shares issued and outstanding as of December 31, 2015 and 2014, respectively |
- | - | ||||||
Common stock, $.0001 par value; 125,000,000 shares authorized; 71,421,664 and 71,274,064 shares issued and 68,767,613 and 68,636,965 shares outstanding as of December 31, 2015 and 2014, respectively |
8 | 8 | ||||||
Treasury stock, 2,654,051 and 2,637,099 shares, at cost, as of December 31, 2015 and 2014, respectively |
(10,737 | ) | (10,679 | ) | ||||
Additional paid-in capital | 531,764 | 529,682 | ||||||
Accumulated deficit | (601,913 | ) | (302,206 | ) | ||||
Total stockholders' (deficit) equity | (80,878 | ) | 216,805 | |||||
Total liabilities and stockholders' equity | $ | 546,505 | $ | 824,713 | ||||
Schedule 2 | |||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in thousands, except per share amounts) | |||||||||||
Years Ended December 31, | |||||||||||
2015 | 2014 | ||||||||||
Net revenue | $ | 982,223 | $ | 922,654 | |||||||
Cost of revenue (excluding depreciation expense) | 721,308 | 671,901 | |||||||||
Gross profit | 260,915 | 250,753 | |||||||||
% of revenues | 26.6 | % | 27.2 | % | |||||||
Other operating expenses | 165,998 | 166,552 | |||||||||
Bad debt expense | 41,042 | 79,547 | |||||||||
General and administrative expenses | 42,524 | 49,314 | |||||||||
Impairment of goodwill | 251,850 | - | |||||||||
Restructuring, integration, and other expenses, net | 24,405 | 30,206 | |||||||||
Depreciation and amortization expense | 22,743 | 22,943 | |||||||||
Loss from continuing operations | (287,647 | ) | (97,809 | ) | |||||||
Interest expense, net | 37,313 | 40,918 | |||||||||
Loss from continuing operations, before income taxes | (324,960 | ) | (138,727 | ) | |||||||
Income tax expense (benefit) | (21,532 | ) | 11,193 | ||||||||
Loss from continuing operations, net of income taxes | (303,428 | ) | (149,920 | ) | |||||||
Income from discontinued operations, net of income taxes | 3,721 | 2,452 | |||||||||
Net loss | $ | (299,707 | ) | $ | (147,468 | ) | |||||
Accrued dividends on preferred stock | (6,120 | ) | - | ||||||||
Deemed dividend on preferred stock | (3,690 | ) | - | ||||||||
Loss attributable to common stockholders | $ | (309,517 | ) | $ | (147,468 | ) | |||||
Denominator - Basic and Diluted: | |||||||||||
Weighted average number of common shares outstanding | 68,710 | 68,476 | |||||||||
Loss from continuing operations, basic and diluted | $ | (4.56 | ) | $ | (2.19 | ) | |||||
Income from discontinued operations, basic and diluted | $ | 0.05 | $ | 0.04 | |||||||
Net loss, basic and diluted | $ | (4.51 | ) | $ | (2.15 | ) | |||||
Schedule 3 | ||||||||
BIOSCRIP, INC AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
Twelve Months Ended December 31, | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (299,707 | ) | $ | (147,468 | ) | ||
Less: Income from discontinued operations, net of income taxes | 3,721 | 2,452 | ||||||
Loss from continuing operations, net of income taxes | (303,428 | ) | (149,920 | ) | ||||
Adjustments to reconcile net loss from continuing operations, net of income taxes to net cash (used in) operating activities: | ||||||||
Depreciation and amortization | 22,743 | 22,943 | ||||||
Impairment of goodwill | 251,850 | - | ||||||
Amortization of deferred financing costs and debt discount | 3,440 | 4,153 | ||||||
Change in fair value of contingent consideration | (30 | ) | (7,364 | ) | ||||
Change in deferred income tax | (20,089 | ) | 9,359 | |||||
Compensation under stock-based compensation plans | 4,513 | 8,570 | ||||||
Loss on extinguishment of debt | - | 2,373 | ||||||
Changes in assets and liabilities, net of acquired business: | ||||||||
Receivables, net of bad debt expense | 16,455 | 27,695 | ||||||
Inventory | (5,769 | ) | (2,952 | ) | ||||
Prepaid expenses and other assets | 170 | 5,474 | ||||||
Accounts payable | (24,129 | ) | 27,093 | |||||
Amounts due to plan sponsors | (1,377 | ) | 562 | |||||
Accrued interest | 44 | 4,681 | ||||||
Accrued expenses and other liabilities | (6,682 | ) | 7,310 | |||||
Net cash used in operating activities from continuing operations | (62,289 | ) | (40,023 | ) | ||||
Net cash provided by (used in) operating activities from discontinued operations | (2,453 | ) | 8,607 | |||||
Net cash (used in) operating activities | (64,742 | ) | (31,416 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment, net | (11,544 | ) | (13,829 | ) | ||||
Cash consideration paid for acquisitions, net of cash acquired | - | (454 | ) | |||||
Net cash proceeds from sale of unconsolidated affiliate | - | 852 | ||||||
Net cash used in investing activities from continuing operations | (11,544 | ) | (13,431 | ) | ||||
Net cash provided by investing activities from discontinued operations | 24,565 | 57,688 | ||||||
Net cash provided by investing activities | 13,021 | 44,257 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of convertible preferred stock and warrants, net of issuance costs | 59,691 | - | ||||||
Proceeds from senior notes due 2021, net of discount, lenders' fees and other expenses | - | 194,539 | ||||||
Deferred and other financing costs | (2,630 | ) | (1,135 | ) | ||||
Borrowings on revolving credit facility | 203,663 | 244,700 | ||||||
Repayments on revolving credit facility | (193,663 | ) | (279,703 | ) | ||||
Principal payments of long-term debt | - | (172,243 | ) | |||||
Repayments of capital leases | (395 | ) | (360 | ) | ||||
Net proceeds from exercise of employee stock compensation plans | (50 | ) | 1,468 | |||||
Surrender of stock to satisfy minimum tax withholding | (58 | ) | (368 | ) | ||||
Net cash provided by (used in) financing activities from continuing operations | 66,558 | (13,102 | ) | |||||
Net change in cash and cash equivalents | 14,837 | (261 | ) | |||||
Cash and cash equivalents - beginning of period | 740 | 1,001 | ||||||
Cash and cash equivalents - end of period | $ | 15,577 | $ | 740 | ||||
DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for interest | $ | 34,302 | $ | 34,133 | ||||
Cash paid during the period for income taxes | $ | 114 | $ | 1,651 |
Schedule 4 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 12/31/2015 | |||||||||||||||||
Net revenue | $ | 244,357 | $ | 246,897 | $ | 247,224 | $ | 243,745 | $ | 982,223 | |||||||||||
Cost of revenue (excluding depreciation expense) | 179,402 | 182,079 | 181,991 | 177,836 | 721,308 | ||||||||||||||||
Gross profit | 64,955 | 64,818 | 65,233 | 65,909 | 260,915 | ||||||||||||||||
% of revenues | 26.6 | % | 26.3 | % | 26.4 | % | 27.0 | % | 26.6 | % | |||||||||||
Other operating expenses | 41,616 | 43,313 | 41,198 | 39,871 | 165,998 | ||||||||||||||||
Bad debt expense | 8,346 | 15,165 | 9,321 | 8,210 | 41,042 | ||||||||||||||||
General and administrative expenses | 11,699 | 11,866 | 9,308 | 9,651 | 42,524 | ||||||||||||||||
Impairment of goodwill | - | 238,000 | 13,850 | - | 251,850 | ||||||||||||||||
Restructuring, integration, and other expenses, net | 3,704 | 5,969 | 5,369 | 9,363 | 24,405 | ||||||||||||||||
Depreciation and amortization expense | 5,794 | 6,247 | 5,471 | 5,231 | 22,743 | ||||||||||||||||
Loss from continuing operations | (6,204 | ) | (255,742 | ) | (19,284 | ) | (6,417 | ) | (287,647 | ) | |||||||||||
Interest expense, net | 9,163 | 9,080 | 9,507 | 9,563 | 37,313 | ||||||||||||||||
Loss from continuing operations, before income taxes | (15,367 | ) | (264,822 | ) | (28,791 | ) | (15,980 | ) | (324,960 | ) | |||||||||||
Income tax expense (benefit) | 1,928 | (19,921 | ) | (4,551 | ) | 1,012 | (21,532 | ) | |||||||||||||
Loss from continuing operations, net of income taxes | (17,295 | ) | (244,901 | ) | (24,240 | ) | (16,992 | ) | (303,428 | ) | |||||||||||
Income from discontinued operations, net of income taxes | (2,379 | ) | 94 | 7,457 | (1,451 | ) | 3,721 | ||||||||||||||
Net loss | $ | (19,674 | ) | $ | (244,807 | ) | $ | (16,783 | ) | $ | (18,443 | ) | $ | (299,707 | ) | ||||||
Accrued dividends on preferred stock | (453 | ) | (1,805 | ) | (1,899 | ) | (1,963 | ) | (6,120 | ) | |||||||||||
Deemed dividend on preferred stock | (1,164 | ) | (2,186 | ) | (169 | ) | (171 | ) | (3,690 | ) | |||||||||||
Loss attributable to common stockholders | $ | (21,291 | ) | $ | (248,798 | ) | $ | (18,851 | ) | $ | (20,577 | ) | $ | (309,517 | ) | ||||||
Denominator - Basic and Diluted: | |||||||||||||||||||||
Weighted average number of common shares outstanding | 68,637 | 68,698 | 68,742 | 68,760 | 68,710 | ||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.28 | ) | $ | (3.62 | ) | $ | (0.38 | ) | $ | (0.28 | ) | $ | (4.56 | ) | ||||||
Income from discontinued operations, basic and diluted | $ | (0.03 | ) | $ | 0.00 | $ | 0.11 | $ | (0.02 | ) | $ | 0.05 | |||||||||
Net loss, basic and diluted | $ | (0.31 | ) | $ | (3.62 | ) | $ | (0.27 | ) | $ | (0.30 | ) | $ | (4.51 | ) | ||||||
Schedule 5 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 12/31/2014 | 12/31/2014 | |||||||||||||||||
Net revenue | $ | 221,341 | $ | 230,111 | $ | 231,458 | $ | 239,744 | $ | 922,654 | |||||||||||
Cost of revenue (excluding depreciation expense) | 159,202 | 167,862 | 168,771 | 176,066 | 671,901 | ||||||||||||||||
Gross profit | 62,139 | 62,249 | 62,687 | 63,678 | 250,753 | ||||||||||||||||
% of revenues | 28.1 | % | 27.1 | % | 27.1 | % | 26.6 | % | 27.2 | % | |||||||||||
Other operating expenses | 41,373 | 41,089 | 42,079 | 42,011 | 166,552 | ||||||||||||||||
Bad debt expense | 6,608 | 8,355 | 26,082 | 38,502 | 79,547 | ||||||||||||||||
General and administrative expenses | 12,844 | 10,767 | 11,726 | 13,977 | 49,314 | ||||||||||||||||
Impairment of goodwill | - | - | - | - | - | ||||||||||||||||
Restructuring, integration, and other expenses, net | 8,882 | 4,545 | 4,682 | 12,097 | 30,206 | ||||||||||||||||
Depreciation and amortization expense | 5,539 | 5,577 | 5,825 | 6,002 | 22,943 | ||||||||||||||||
Loss from continuing operations | (13,107 | ) | (8,084 | ) | (27,707 | ) | (48,911 | ) | (97,809 | ) | |||||||||||
Interest expense, net | 10,499 | 9,137 | 9,567 | 11,715 | 40,918 | ||||||||||||||||
Loss from continuing operations, before income taxes | (23,606 | ) | (17,221 | ) | (37,274 | ) | (60,626 | ) | (138,727 | ) | |||||||||||
Income tax expense (benefit) | 3,491 | 3,063 | 1,930 | 2,709 | 11,193 | ||||||||||||||||
Loss from continuing operations, net of income taxes | (27,097 | ) | (20,284 | ) | (39,204 | ) | (63,335 | ) | (149,920 | ) | |||||||||||
Income from discontinued operations, net of income taxes | 1,783 | 466 | 494 | (291 | ) | 2,452 | |||||||||||||||
Net loss | $ | (25,314 | ) | $ | (19,818 | ) | $ | (38,710 | ) | $ | (63,626 | ) | $ | (147,468 | ) | ||||||
Accrued dividends on preferred stock | - | - | - | - | - | ||||||||||||||||
Deemed dividend on preferred stock | - | - | - | - | - | ||||||||||||||||
Loss attributable to common stockholders | $ | (25,314 | ) | $ | (19,818 | ) | $ | (38,710 | ) | $ | (63,626 | ) | $ | (147,468 | ) | ||||||
Denominator - Basic and Diluted: | |||||||||||||||||||||
Weighted average number of common shares outstanding | 68,171 | 68,468 | 68,615 | 68,637 | 68,476 | ||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.40 | ) | $ | (0.30 | ) | $ | (0.57 | ) | $ | (0.92 | ) | $ | (2.19 | ) | ||||||
Income from discontinued operations, basic and diluted | $ | 0.03 | $ | 0.01 | $ | 0.01 | $ | (0.00 | ) | $ | 0.04 | ||||||||||
Net loss, basic and diluted | $ | (0.37 | ) | $ | (0.29 | ) | $ | (0.56 | ) | $ | (0.93 | ) | $ | (2.15 | ) | ||||||
Schedule 6 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 12/31/2015 | |||||||||||||||||
Adjusted EBITDA by Segment: | |||||||||||||||||||||
Infusion services adjusted EBITDA | $ | 14,993 | $ | 6,340 | $ | 14,714 | $ | 17,828 | $ | 53,875 | |||||||||||
adjusted EBITDA margin % | 6.1 | % | 2.6 | % | 6.0 | % | 7.3 | % | 5.5 | % | |||||||||||
Corporate overhead adjusted EBITDA | (10,042 | ) | (10,704 | ) | (8,476 | ) | (8,789 | ) | (38,011 | ) | |||||||||||
adjusted EBITDA margin % | (4.1 | %) | (4.3 | %) | (3.4 | %) | (3.6 | %) | (3.9 | %) | |||||||||||
Consolidated Adjusted EBITDA | 4,951 | (4,364 | ) | 6,238 | 9,039 | 15,864 | |||||||||||||||
adjusted EBITDA margin % | 2.0 | % | (1.8 | %) | 2.5 | % | 3.7 | % | 1.6 | % | |||||||||||
Interest expense, net | (9,163 | ) | (9,080 | ) | (9,507 | ) | (9,563 | ) | (37,313 | ) | |||||||||||
Income tax (expense) benefit | (1,928 | ) | 19,921 | 4,551 | (1,012 | ) | 21,532 | ||||||||||||||
Depreciation and amortization expense | (5,794 | ) | (6,247 | ) | (5,471 | ) | (5,231 | ) | (22,743 | ) | |||||||||||
Impairment of goodwill | - | (238,000 | ) | (13,850 | ) | - | (251,850 | ) | |||||||||||||
Stock-based compensation expense | (1,657 | ) | (1,162 | ) | (832 | ) | (862 | ) | (4,513 | ) | |||||||||||
Restructuring, integration, and other expenses, net (1) | (3,704 | ) | (5,969 | ) | (5,369 | ) | (9,363 | ) | (24,405 | ) | |||||||||||
Loss from continuing operations, net of income taxes | $ | (17,295 | ) | $ | (244,901 | ) | $ | (24,240 | ) | $ | (16,992 | ) | $ | (303,428 | ) | ||||||
General and Administrative Expense on Face of Income Statement: | |||||||||||||||||||||
Corporate overhead adjusted EBITDA | $ | (10,042 | ) | $ | (10,704 | ) | $ | (8,476 | ) | $ | (8,789 | ) | $ | (38,011 | ) | ||||||
Stock-based compensation expense | (1,657 | ) | (1,162 | ) | (832 | ) | (862 | ) | (4,513 | ) | |||||||||||
General and administrative expenses | $ | (11,699 | ) | $ | (11,866 | ) | $ | (9,308 | ) | $ | (9,651 | ) | $ | (42,524 | ) | ||||||
(1) Restructuring, integration and other expenses include non-operating costs associated with restructuring and integration initiatives such as employee severance costs, certain non-recurring legal and professional fees, non-recurring training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other non-recurring costs related to contract terminations and closed branches/offices. |
Schedule 7 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 12/31/2014 | 12/31/2014 | |||||||||||||||||
Adjusted EBITDA by Segment: | |||||||||||||||||||||
Infusion services adjusted EBITDA | $ | 14,158 | $ | 12,805 | $ | (5,474 | ) | $ | (16,835 | ) | $ | 4,654 | |||||||||
adjusted EBITDA margin % | 6.4 | % | 5.6 | % | (2.4 | %) | (7.0 | %) | 0.5 | % | |||||||||||
Corporate overhead adjusted EBITDA | (9,958 | ) | (8,769 | ) | (9,974 | ) | (12,043 | ) | (40,744 | ) | |||||||||||
adjusted EBITDA margin % | (4.5 | %) | (3.8 | %) | (4.3 | %) | (5.0 | %) | (4.4 | %) | |||||||||||
Consolidated Adjusted EBITDA | 4,200 | 4,036 | (15,448 | ) | (28,878 | ) | (36,090 | ) | |||||||||||||
adjusted EBITDA margin % | 1.9 | % | 1.8 | % | (6.7 | %) | (12.0 | %) | (3.9 | %) | |||||||||||
Interest expense, net | (10,499 | ) | (9,137 | ) | (9,567 | ) | (11,715 | ) | (40,918 | ) | |||||||||||
Income tax (expense) benefit | (3,491 | ) | (3,063 | ) | (1,930 | ) | (2,709 | ) | (11,193 | ) | |||||||||||
Depreciation and amortization expense | (5,539 | ) | (5,577 | ) | (5,825 | ) | (6,002 | ) | (22,943 | ) | |||||||||||
Impairment of goodwill | - | - | - | - | - | ||||||||||||||||
Stock-based compensation expense | (2,886 | ) | (1,998 | ) | (1,752 | ) | (1,934 | ) | (8,570 | ) | |||||||||||
Restructuring, integration, and other expenses, net (1) | (8,882 | ) | (4,545 | ) | (4,682 | ) | (12,097 | ) | (30,206 | ) | |||||||||||
Loss from continuing operations, net of income taxes | $ | (27,097 | ) | $ | (20,284 | ) | $ | (39,204 | ) | $ | (63,335 | ) | $ | (149,920 | ) | ||||||
General and Administrative Expense on Face of Income Statement: | |||||||||||||||||||||
Corporate overhead adjusted EBITDA | $ | (9,958 | ) | $ | (8,769 | ) | $ | (9,974 | ) | $ | (12,043 | ) | $ | (40,744 | ) | ||||||
Stock-based compensation expense | (2,886 | ) | (1,998 | ) | (1,752 | ) | (1,934 | ) | (8,570 | ) | |||||||||||
General and administrative expenses | $ | (12,844 | ) | $ | (10,767 | ) | $ | (11,726 | ) | $ | (13,977 | ) | $ | (49,314 | ) | ||||||
(1) Restructuring, integration and other expenses include non-operating costs associated with restructuring and integration initiatives such as employee severance costs, certain non-recurring legal and professional fees, non-recurring training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other non-recurring costs related to contract terminations and closed branches/offices. |
Contact:Lisa Wilson In-Site Communications, Inc. T: 212-452-2793 E: lwilson@insitecony.com