BioScrip Reports Fourth Quarter and Full-Year 2016 Financial Results
Fourth Quarter Highlights
- Net revenue for the fourth quarter 2016 was
$240.1 million , a decrease of$3.6 million or 1.5% year over year, reflecting the ongoing favorable shift in revenue mix to a greater percentage of core revenue and less lower-margin non-core revenue;
- Core revenue increased
$21.9 million or 15.1% year over year to$166.8 million , representing core mix of 70%, up from 60% core mix in the fourth quarter of 2015;
- We are on track to achieve the full
$17.0 million in Home Solutions synergies, and we expect to achieve an additional$23.0 to $25.0 million in cost reductions by the end of 2017. These additional savings include workforce optimization and reorganization, procurement and formulary management savings, improved asset utilization, enhanced nursing productivity and reduction of delivery costs;
- Consolidated Loss from continuing operations, net of income taxes was
$(5.2) million , an improvement of$11.8 million compared to the prior year fourth quarter consolidated loss from continuing operations, net of income taxes of$(17.0) million . The year over year reduction in loss was the result of improved operating results combined with lower restructuring costs;
- Consolidated Adjusted EBITDA was
$9.5 million for the fourth quarter 2016, as compared to the$9.0 million consolidated Adjusted EBITDA in the prior year fourth quarter. The year over year increase in consolidated Adjusted EBITDA was the result of improved core mix, higher gross margins, and expense leverage in 2016.
“I am extremely pleased with the great results the
Mr. Greenleaf added, “During the quarter our leadership team launched the CORE initiative, a program focused on improving Core growth, Operational efficiencies, Revenue collections and Employee effectiveness. Continued execution of the CORE initiative positions
Mr. Greenleaf continued, “Additionally, we are working diligently, both internally and externally, to mitigate the unfavorable impact of the Cures Act legislation on our business and on the critically ill patients relying on home infusion therapies. These efforts include actively working with
The Company achieved
Results of Operations
Fourth Quarter 2016 versus Prior Year Fourth Quarter 2015
Revenue from continuing operations for the fourth quarter of 2016 was
Consolidated gross profit for the fourth quarter of 2016 was
Consolidated Loss from continuing operations, net of income taxes for the fourth quarter of 2016 was
Consolidated Adjusted EBITDA from continuing operations for the fourth quarter of 2016 was
Full-Year 2016 versus Prior Full-Year 2015
Revenue from continuing operations for the full year 2016 was
Consolidated gross profit for the full year 2016 was
Consolidated Loss from continuing operations, net of income taxes for the full year 2016 was
Consolidated Adjusted EBITDA from continuing operations for the full year 2016 was
2017 Guidance
The Company is providing guidance for full-year 2017. This full-year 2017 guidance incorporates the estimated negative impact of the Cures Act legislation on the Company. The Cures Act legislation results in a significant reduction in
Liquidity and Capital Resources
As of yesterday,
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) and entering conference call ID number 5266355. 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" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding 2017 guidance, projections of certain measures of the Company's results of operations, projections of future levels of certain charges and expenses, expectations of Home Solutions cost synergies and incremental cost structure improvements and other statements regarding the Company's financial improvement plan and strategy. 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 successfully integrate the
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.
TABLES TO FOLLOW
Schedule 1 | ||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except for share amounts) | ||||||||
December 31, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 9,569 | $ | 15,577 | ||||
Receivables, less allowance for doubtful accounts of $44,730 and $59,689 | ||||||||
at December 31, 2016 and 2015, respectively | 111,811 | 97,353 | ||||||
Inventory | 36,165 | 42,983 | ||||||
Prepaid expenses and other current assets | 18,507 | 27,772 | ||||||
Total current assets | 176,052 | 183,685 | ||||||
Property and equipment, net | 32,535 | 31,939 | ||||||
Goodwill | 365,947 | 308,729 | ||||||
Intangible assets, net | 31,043 | 5,128 | ||||||
Other non-current assets | 2,163 | 1,161 | ||||||
Total assets | $ | 607,740 | $ | 530,642 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 18,521 | $ | 24,380 | ||||
Accounts payable | 59,134 | 65,077 | ||||||
Amounts due to plan sponsors | 3,799 | 3,491 | ||||||
Accrued interest | 6,705 | 6,898 | ||||||
Accrued expenses and other current liabilities | 42,191 | 52,918 | ||||||
Total current liabilities | 130,350 | 152,764 | ||||||
Long-term debt, net of current portion | 433,413 | 393,741 | ||||||
Deferred taxes | 2,281 | 236 | ||||||
Other non-current liabilities | 1,257 | 1,861 | ||||||
Total liabilities | 567,301 | 548,602 | ||||||
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized; | ||||||||
21,645 and 635,822 shares issued and outstanding; and, $2,603 and $69,702 | ||||||||
liquidation preference as of December 31, 2016 and December 31, 2015, respectively | 2,462 | 62,918 | ||||||
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized; | ||||||||
614,177 shares issued and outstanding; and $75,491 liquidation preference as of | ||||||||
December 31, 2016 | 69,540 | - | ||||||
Stockholders' (deficit) equity | ||||||||
Preferred stock, $.0001 par value; 5,000,000 and 4,175,000 shares authorized; no shares | ||||||||
issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | - | - | ||||||
Common stock, $.0001 par value; 250,000,000 and 125,000,000 shares authorized as of | ||||||||
December 31, 2016 and December 31, 2015, respectively; 117,682,543 and 71,421,664 | ||||||||
shares issued and 117,682,543 and 68,767,613 shares outstanding as of | ||||||||
December 31, 2016 and December 31, 2015, respectively | 12 | 8 | ||||||
Treasury stock, no shares outstanding as of December 31, 2016 and 2,654,051 shares | ||||||||
outstanding, at cost, as of December 31, 2015 | - | (10,737 | ) | |||||
Additional paid-in capital | 611,844 | 531,764 | ||||||
Accumulated deficit | (643,419 | ) | (601,913 | ) | ||||
Total stockholders' deficit | (31,563 | ) | (80,878 | ) | ||||
Total liabilities and stockholders' deficit | $ | 607,740 | $ | 530,642 |
Schedule 2 | |||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(in thousands, except per share amounts) | |||||||||
Years Ended December 31, | |||||||||
2016 | 2015 | ||||||||
Net revenue | $ | 935,589 | $ | 982,223 | |||||
Cost of revenue (excluding depreciation expense) | 669,958 | 721,308 | |||||||
Gross profit | 265,631 | 260,915 | |||||||
% of revenues | 28.4 | % | 26.6 | % | |||||
Other operating expenses | 170,718 | 165,998 | |||||||
Bad debt expense | 26,799 | 41,042 | |||||||
General and administrative expenses | 39,225 | 42,524 | |||||||
Change in fair value of equity linked liabilities | (10,450 | ) | - | ||||||
Impairment of goodwill | - | 251,850 | |||||||
Restructuring, acquisition, integration, and other expenses, net | 15,859 | 24,405 | |||||||
Depreciation and amortization expense | 21,551 | 22,743 | |||||||
Interest expense, net | 38,235 | 37,313 | |||||||
(Gain) on dispositions | (3,954 | ) | - | ||||||
Loss from continuing operations, before income taxes | (32,352 | ) | (324,960 | ) | |||||
Income tax expense (benefit) | 2,015 | (21,532 | ) | ||||||
Loss from continuing operations, net of income taxes | (34,367 | ) | (303,428 | ) | |||||
Income (loss) from discontinued operations, net of income taxes | (7,139 | ) | 3,721 | ||||||
Net loss | $ | (41,506 | ) | $ | (299,707 | ) | |||
Accrued dividends on preferred stock | (8,392 | ) | (6,120 | ) | |||||
Deemed dividend on preferred stock | (692 | ) | (3,690 | ) | |||||
Loss attributable to common stockholders | $ | (50,590 | ) | $ | (309,517 | ) | |||
Denominator - Basic and Diluted: | |||||||||
Weighted average number of common shares outstanding | 93,740 | 68,710 | |||||||
Loss from continuing operations, basic and diluted | $ | (0.46 | ) | $ | (4.56 | ) | |||
Income from discontinued operations, basic and diluted | (0.08 | ) | 0.05 | ||||||
Loss per common share, basic and diluted | $ | (0.54 | ) | $ | (4.51 | ) | |||
Schedule 3 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2016 | 6/30/2016 | 9/30/2016 | 12/31/2016 | 12/31/2016 | |||||||||||||||||
Net revenue | $ | 238,462 | $ | 232,462 | $ | 224,542 | $ | 240,123 | $ | 935,589 | |||||||||||
Cost of revenue (excluding depreciation expense) | 174,230 | 168,298 | 161,957 | 165,473 | 669,958 | ||||||||||||||||
Gross profit | 64,232 | 64,164 | 62,585 | 74,650 | 265,631 | ||||||||||||||||
% of revenues | 26.9 | % | 27.6 | % | 27.9 | % | 31.1 | % | 28.4 | % | |||||||||||
Other operating expenses | 39,658 | 40,619 | 42,729 | 47,712 | 170,718 | ||||||||||||||||
Bad debt expense | 7,592 | 4,279 | 7,727 | 7,201 | 26,799 | ||||||||||||||||
General and administrative expenses | 11,051 | 9,414 | 9,948 | 8,812 | 39,225 | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | - | (10,450 | ) | (10,450 | ) | ||||||||||||||
Restructuring, acquisition, integration, and other expenses, net | 2,667 | 4,291 | 2,368 | 6,533 | 15,859 | ||||||||||||||||
Depreciation and amortization expense | 4,538 | 4,252 | 4,166 | 8,595 | 21,551 | ||||||||||||||||
Interest expense, net | 9,412 | 9,469 | 9,331 | 10,023 | 38,235 | ||||||||||||||||
(Gain) on disposition of property and equipment | (939 | ) | - | (3,015 | ) | - | (3,954 | ) | |||||||||||||
Loss from continuing operations, before income taxes | (9,747 | ) | (8,160 | ) | (10,669 | ) | (3,776 | ) | (32,352 | ) | |||||||||||
Income tax expense | 23 | 149 | 421 | 1,422 | 2,015 | ||||||||||||||||
Loss from continuing operations, net of income taxes | (9,770 | ) | (8,309 | ) | (11,090 | ) | (5,198 | ) | (34,367 | ) | |||||||||||
Income (loss) from discontinued operations, net of income taxes | 233 | 75 | (174 | ) | (7,273 | ) | (7,139 | ) | |||||||||||||
Net loss | $ | (9,537 | ) | $ | (8,234 | ) | $ | (11,264 | ) | $ | (12,471 | ) | $ | (41,506 | ) | ||||||
Accrued dividends on preferred stock | (1,998 | ) | (2,056 | ) | (2,138 | ) | (2,200 | ) | (8,392 | ) | |||||||||||
Deemed dividends on preferred stock | (172 | ) | (173 | ) | (173 | ) | (174 | ) | (692 | ) | |||||||||||
Loss attributable to common stockholders | $ | (11,707 | ) | $ | (10,463 | ) | $ | (13,575 | ) | $ | (14,845 | ) | $ | (50,590 | ) | ||||||
Loss per common share: | |||||||||||||||||||||
Denominator - Basic and Diluted: | |||||||||||||||||||||
Weighted average number of common shares outstanding | 68,771 | 73,186 | 114,826 | 117,683 | 93,740 | ||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.17 | ) | $ | (0.14 | ) | $ | (0.12 | ) | $ | (0.06 | ) | $ | (0.46 | ) | ||||||
Income from discontinued operations, basic and diluted | - | - | - | (0.06 | ) | (0.08 | ) | ||||||||||||||
Net loss per common share, basic and diluted | $ | (0.17 | ) | $ | (0.14 | ) | $ | (0.12 | ) | $ | (0.12 | ) | $ | (0.54 | ) |
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, acquisition, 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 | |||||||||||||||
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 | ) | ||||||||||
(Loss) 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 dividends 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 | ) | |||||
Loss per common share: | ||||||||||||||||||||
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 | ) | - | 0.11 | (0.02 | ) | 0.05 | |||||||||||||
Net loss per common share, basic and diluted | $ | (0.31 | ) | $ | (3.62 | ) | $ | (0.27 | ) | $ | (0.30 | ) | $ | (4.51 | ) |
Schedule 5 | ||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended |
Twelve Months Ended | |||||||||||||||||||
3/31/2016 | 6/30/2016 | 9/30/2016 | 12/31/2016 | 12/31/2016 | ||||||||||||||||
Adjusted EBITDA by Segment: | ||||||||||||||||||||
Infusion Services Adjusted EBITDA | $ | 16,982 | $ | 19,266 | $ | 12,129 | $ | 19,737 | $ | 68,114 | ||||||||||
Adjusted EBITDA margin % | 7.1 | % | 8.3 | % | 5.4 | % | 8.2 | % | 7.3 | % | ||||||||||
Corporate Overhead Adjusted EBITDA | (9,577 | ) | (8,895 | ) | (8,590 | ) | (10,200 | ) | (37,262 | ) | ||||||||||
Adjusted EBITDA margin % | (4.0 | %) | (3.8 | %) | (3.8 | %) | (4.2 | %) | (4.0 | %) | ||||||||||
Consolidated Adjusted EBITDA | 7,405 | 10,371 | 3,539 | 9,537 | 30,852 | |||||||||||||||
Adjusted EBITDA margin % | 3.1 | % | 4.5 | % | 1.6 | % | 4.0 | % | 3.3 | % | ||||||||||
Interest expense, net | (9,412 | ) | (9,469 | ) | (9,331 | ) | (10,023 | ) | (38,235 | ) | ||||||||||
Gain on dispositions | 939 | - | 3,015 | - | 3,954 | |||||||||||||||
Income tax expense | (23 | ) | (149 | ) | (421 | ) | (1,422 | ) | (2,015 | ) | ||||||||||
Depreciation and amortization expense | (4,538 | ) | (4,252 | ) | (4,166 | ) | (8,595 | ) | (21,551 | ) | ||||||||||
Stock-based compensation (expense) benefit | (1,474 | ) | (519 | ) | (1,358 | ) | 1,388 | (1,963 | ) | |||||||||||
Change in fair value of equity linked liabilities | - | - | - | 10,450 | 10,450 | |||||||||||||||
Restructuring, acquisition, integration, and other expenses, net (1) | (2,667 | ) | (4,291 | ) | (2,368 | ) | (6,533 | ) | (15,859 | ) | ||||||||||
Loss from continuing operations, net of income taxes | $ | (9,770 | ) | $ | (8,309 | ) | $ | (11,090 | ) | $ | (5,198 | ) | $ | (34,367 | ) | |||||
General and Administrative Expenses on Face of Income Statement: | ||||||||||||||||||||
Corporate overhead adjusted EBITDA | $ | (9,577 | ) | $ | (8,895 | ) | $ | (8,590 | ) | $ | (10,200 | ) | $ | (37,262 | ) | |||||
Stock-based compensation (expense) | (1,474 | ) | (519 | ) | (1,358 | ) | 1,388 | (1,963 | ) | |||||||||||
General and administrative expenses | $ | (11,051 | ) | $ | (9,414 | ) | $ | (9,948 | ) | $ | (8,812 | ) | $ | (39,225 | ) | |||||
(1) Restructuring, acquisition, integration and other expenses, net include costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed locations. |
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 | ) | ||||||||||
Stock-based compensation expense | (1,657 | ) | (1,162 | ) | (832 | ) | (862 | ) | (4,513 | ) | ||||||||||
Impairment of goodwill | - | (238,000 | ) | (13,850 | ) | - | (251,850 | ) | ||||||||||||
Restructuring, acquisition, 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 Expenses 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, acquisition, integration and other expenses, net include costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed locations. |
Schedule 7 | ||||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
3/31/2016 | 6/30/2016 | 9/30/2016 | 12/31/2016 | 12/31/2016 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss from continuing operations | $ | (9,770 | ) | $ | (8,309 | ) | $ | (11,090 | ) | $ | (5,198 | ) | $ | (34,367 | ) | |||||
Receivables, net of bad debt expense | (4,417 | ) | 3,136 | 8,001 | (9,222 | ) | (2,502 | ) | ||||||||||||
Inventory | 13,867 | (3,330 | ) | 2,265 | (2,786 | ) | 10,016 | |||||||||||||
Prepaid expenses and other assets | 7,897 | (7,575 | ) | 8,839 | (10,053 | ) | (892 | ) | ||||||||||||
Accounts payable | (11,995 | ) | (4,195 | ) | (15,058 | ) | 10,731 | (20,517 | ) | |||||||||||
Accrued interest | (4,630 | ) | 4,438 | (4,437 | ) | 4,436 | (193 | ) | ||||||||||||
Accrued expenses and other liabilities | (2,227 | ) | (851 | ) | (4,302 | ) | (418 | ) | (7,798 | ) | ||||||||||
Non-Cash Adjustments: | ||||||||||||||||||||
Depreciation and amortization | 4,538 | 4,252 | 4,166 | 8,595 | 21,551 | |||||||||||||||
Deferred taxes | 174 | 178 | 184 | 1,509 | 2,045 | |||||||||||||||
Other Non-Cash | 1,589 | 1,554 | (5,342 | ) | (347 | ) | (2,546 | ) | ||||||||||||
Operating Cash Flow (Use) | (4,974 | ) | (10,702 | ) | (16,774 | ) | (2,753 | ) | (35,203 | ) | ||||||||||
Discontinued operations | (5,989 | ) | 76 | (175 | ) | (1,478 | ) | (7,566 | ) | |||||||||||
Capital expenditures | (2,429 | ) | (3,037 | ) | (2,578 | ) | (1,598 | ) | (9,642 | ) | ||||||||||
Proceeds from dispositions | 1,105 | 27 | 3,045 | - | 4,177 | |||||||||||||||
Common stock raise, net | - | 83,267 | - | - | 83,267 | |||||||||||||||
Home Solutions Acquisition | - | - | (67,516 | ) | - | (67,516 | ) | |||||||||||||
Term note (repayments) | (3,137 | ) | (3,137 | ) | (3,137 | ) | (3,139 | ) | (12,550 | ) | ||||||||||
Revolver borrowing (repayments) | 8,000 | (23,000 | ) | 39,000 | 16,300 | 40,300 | ||||||||||||||
Deferred financing costs and other | (104 | ) | (118 | ) | (455 | ) | (598 | ) | (1,275 | ) | ||||||||||
Total All Cash Flow (Use) | $ | (7,528 | ) | $ | 43,376 | $ | (48,590 | ) | $ | 6,734 | $ | (6,008 | ) | |||||||
Schedule 8 | ||||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 12/31/2015 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss from continuing operations | $ | (17,295 | ) | $ | (244,901 | ) | $ | (24,240 | ) | $ | (16,992 | ) | $ | (303,428 | ) | |||||
Receivables, net of bad debt expense | 799 | 7,134 | (4,310 | ) | 17,005 | 20,628 | ||||||||||||||
Inventory | (4,666 | ) | (483 | ) | 15,477 | (16,097 | ) | (5,769 | ) | |||||||||||
Prepaid expenses and other assets | (854 | ) | 163 | (2,695 | ) | (617 | ) | (4,003 | ) | |||||||||||
Accounts payable | 995 | (13,723 | ) | (23,094 | ) | 11,693 | (24,129 | ) | ||||||||||||
Accrued interest | (4,585 | ) | 4,437 | (4,438 | ) | 4,630 | 44 | |||||||||||||
Accrued expenses and other liabilities | (11,200 | ) | 1,267 | 24 | 1,850 | (8,059 | ) | |||||||||||||
Non-Cash Adjustments: | ||||||||||||||||||||
Depreciation and amortization | 5,794 | 6,247 | 5,471 | 5,231 | 22,743 | |||||||||||||||
Impairment of goodwill | - | 238,000 | 13,850 | - | 251,850 | |||||||||||||||
Deferred Taxes | 1,927 | (17,761 | ) | (5,374 | ) | 1,119 | (20,089 | ) | ||||||||||||
Other Non-Cash | 2,458 | 2,081 | 2,570 | 814 | 7,923 | |||||||||||||||
Operating Cash Flow (Use) | (26,627 | ) | (17,539 | ) | (26,759 | ) | 8,636 | (62,289 | ) | |||||||||||
Discontinued operations | (1,421 | ) | (573 | ) | 28,669 | (4,563 | ) | 22,112 | ||||||||||||
Capital expenditures | (2,063 | ) | (3,734 | ) | (4,349 | ) | (1,398 | ) | (11,544 | ) | ||||||||||
Preferred stock and warrants | 58,951 | - | 740 | - | 59,691 | |||||||||||||||
Revolver borrowing (repayments) | (5,000 | ) | - | 30,000 | (15,000 | ) | 10,000 | |||||||||||||
Deferred financing costs and other | (1,365 | ) | (229 | ) | - | (1,539 | ) | (3,133 | ) | |||||||||||
Total All Cash Flow (Use) | $ | 22,475 | $ | (22,075 | ) | $ | 28,301 | $ | (13,864 | ) | $ | 14,837 | ||||||||
Schedule 9 | |||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||
FULL YEAR 2017 GUIDANCE | |||||||
(dollars in millions, except EPS) | |||||||
Low End | High End | ||||||
of Range | of Range | ||||||
Revenues | $ | 920.0 | $ | 950.0 | |||
Adjusted EBITDA | 45.0 | 55.0 | |||||
adjusted ebitda margin | 4.9 | % | 5.8 | % | |||
Stock Compensation | 3.0 | 2.5 | |||||
Depreciation & Amortization | 27.0 | 25.0 | |||||
Interest Expense, net | 52.0 | 49.0 | |||||
Restructuring Costs | 4.0 | 3.0 | |||||
Income Tax Expense | 3.0 | 2.0 | |||||
Preferred Stock Dividends | 9.4 | 9.4 | |||||
Net Loss - Continuing Ops | $ | (53.4 | ) | $ | (35.9 | ) | |
Diluted Loss Per Common Share | $ | (0.45 | ) | $ | (0.30 | ) | |
weighted-average diluted shares | 118,000 | 118,000 |
Investor Contacts:Jeffrey M. Kreger Chief Financial Officer & Treasurer T: (720) 697-5200 jeffrey.kreger@bioscrip.comDavid Clair ICR, Inc. T: (646) 277-1266 david.clair@icrinc.com