BioScrip Reports Fourth Quarter and Full Year 2017 Financial Results
4Q 2017 Preliminary Highlights
-
Net revenue of
$182.6 million , including core product mix of 75.7%, compared to 69.6% in the prior year quarter -
Net loss from continuing operations of
$1.2 million , compared to$5.2 million in the prior year quarter -
Adjusted EBITDA of
$16.8 million , 77% above the prior year quarter, driven by a 740 basis point improvement in gross profit margin and a$11.6 million reduction in operating expenses -
Operating cash flow of
$10.1 million , reflecting$15.2 million of operational and working capital improvements over the prior year quarter, and$6.9 million of interest payments -
Liquidity of
$49.5 million atDecember 31, 2017 , consisting of$39.5 million of cash and equivalents and$10.0 million of senior credit facility availability, compared to$9.6 million of total liquidity atDecember 31, 2016
2017 Preliminary Highlights
-
Net revenue of
$817.2 million , including core product mix of 73.8%, compared to 63.3% in the prior year -
Net loss from continuing operations of
$61.3 million , compared to$34.4 million in the prior year -
Adjusted EBITDA of
$45.0 million , 45% above the prior year, driven by a 480 basis point improvement in gross profit margin and a$10.3 million reduction in operating expenses -
Operating cash flow of
$5.8 million , reflecting$51.6 million of operational and working capital improvements over the prior year, and$45.4 million of interest payments
“BioScrip concluded 2017 with strong fourth quarter financial results,
delivering significant year-over-year increases in core revenue mix,
gross profit margin, adjusted EBITDA and cash provided by operating
activities. Our fourth quarter adjusted EBITDA of
Financial Guidance
For full year 2018, the Company is establishing revenue guidance of
The above guidance does not reflect the adoption of ASC 606, a new revenue accounting standard to be adopted in the first quarter of 2018, that requires certain bad debt expenses to be reclassified as a deduction to revenue. The adoption of ASC 606 is not expected to impact the Company’s reported operating income or adjusted EBITDA. The Company expects that, as a result of adopting ASC 606, that a majority of its bad debt expense will be reclassified as a deduction to revenue. The Company will provide updated revenue guidance to reflect the adoption of ASC 606 when it releases its first quarter 2018 financial results.
Company’s Internal Accounting Review
As a result of the detailed review of the Company’s financial statements performed by the Company’s CFO and interim-CAO during the preparation of the Company’s financial statements for the full year 2017, the Company identified internal control deficiencies in connection with account reconciliations for certain asset and liability accounts. The potential financial statement errors discovered to date resulting from these internal control deficiencies do not appear to be material, but the review is ongoing. The Company, along with its external auditors, continues to review the possible errors and, if required, will reflect any necessary revisions and may report one or more internal control material weaknesses in its upcoming Form 10-K filing. Depending on the timing of the completion of this review, the Company may need to delay the filing of the Form 10-K.
Separately, the Company has identified and will report a material weakness related to certain spreadsheets used to calculate periodic adjustments to accounts that do not impact Adjusted EBITDA, including amortization of intangible assets, equity-linked liabilities and the amortization of discounts and deferred issuance costs of debt. The material weakness did not have any effect on the Company’s 2017 financial statements.
Conference Call and Presentation
An audio webcast and archive will be available within two hours of the call’s completion under the “Investors" 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 and anticipated
effects of the Cures Act and the UnitedHealthcare contract. 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
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.
Schedule 1 | |||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(in thousands, except for share amounts) | |||||||||
(unaudited) | |||||||||
December 31, | |||||||||
2017 | 2016 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 39,457 | $ | 9,569 | |||||
Restricted cash | 4,950 | - | |||||||
Receivables, less allowance for doubtful accounts of $37,912 and $44,730 | |||||||||
as of December 31, 2017 and 2016, respectively | 87,838 | 111,811 | |||||||
Inventory | 37,271 | 36,165 | |||||||
Deferred taxes | 868 | - | |||||||
Prepaid expenses and other current assets | 18,938 | 18,507 | |||||||
Total current assets | 189,322 | 176,052 | |||||||
Property and equipment, net | 27,569 | 32,535 | |||||||
Goodwill | 367,198 | 365,947 | |||||||
Intangible assets, net | 19,505 | 31,043 | |||||||
Other non-current assets | 2,289 | 2,163 | |||||||
Total assets | $ | 605,883 | $ | 607,740 | |||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||||
Current liabilities | |||||||||
Current portion of long-term debt | $ | 1,722 | $ | 18,521 | |||||
Accounts payable | 57,447 | 59,134 | |||||||
Amounts due to plan sponsors | 4,741 | 3,799 | |||||||
Accrued interest | 6,706 | 6,705 | |||||||
Accrued expenses and other current liabilities | 34,856 | 42,191 | |||||||
Total current liabilities | 105,472 | 130,350 | |||||||
Long-term debt, net of current portion | 478,866 | 433,413 | |||||||
Deferred taxes | - | 2,281 | |||||||
Other non-current liabilities | 20,569 | 1,257 | |||||||
Total liabilities | 604,907 | 567,301 | |||||||
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized; | |||||||||
21,645 shares issued and outstanding as of December 31, 2017 and 2016; and | |||||||||
$2,916 and $2,603 liquidation preference as December 31, 2017 and 2016, respectively | 2,827 | 2,462 | |||||||
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized; | |||||||||
614,177 shares issued and outstanding; and $84,555 and $75,491 liquidation | |||||||||
preference as of December 31, 2017 and 2016, respectively. | 79,252 | 69,540 | |||||||
Stockholders' (deficit) equity | |||||||||
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued and | |||||||||
outstanding as of December 31, 2017 and 2016, respectively | - | - | |||||||
Common stock, $.0001 par value; 250,000,000 and 125,000,000 shares authorized; | |||||||||
127,634,012 and 117,682,543 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 13 | 12 | |||||||
Treasury stock, 5,106 shares outstanding, at cost as of December 31, 2017 and no shares | |||||||||
outstanding as of December 31, 2016. | (16) | - | |||||||
Additional paid-in capital | 624,924 | 611,844 | |||||||
Accumulated deficit | (706,024) | (643,419) | |||||||
Total stockholders' deficit | (81,103) | (31,563) | |||||||
Total liabilities and stockholders' deficit | $ | 605,883 | $ | 607,740 | |||||
Schedule 2 | |||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(in thousands, except per share amounts) | |||||||||
(unaudited) | |||||||||
Years Ended December 31, | |||||||||
2017 | 2016 | ||||||||
Net revenue | $ | 817,190 | $ | 935,589 | |||||
Cost of revenue (excluding depreciation expense) | 545,859 | 669,958 | |||||||
Gross profit | 271,331 | 265,631 | |||||||
% of revenues | 33.2% | 28.4% | |||||||
Other operating expenses | 163,621 | 170,718 | |||||||
Bad debt expense | 24,107 | 26,799 | |||||||
General and administrative expenses | 40,940 | 39,225 | |||||||
Change in fair value of equity linked liabilities | 2,795 | (10,450) | |||||||
Restructuring, acquisition, integration, and other expenses, net | 12,356 | 15,859 | |||||||
Depreciation and amortization expense | 26,306 | 21,551 | |||||||
Interest expense | 52,357 | 38,235 | |||||||
Loss on extinguishment of debt | 13,453 | - | |||||||
Loss (gain) on dispositions | 581 | (3,954) | |||||||
Loss from continuing operations, before income taxes | (65,185) | (32,352) | |||||||
Income tax benefit (expense) | 3,900 | (2,015) | |||||||
Loss from continuing operations, net of income taxes | (61,285) | (34,367) | |||||||
Loss from discontinued operations, net of income taxes | (1,320) | (7,139) | |||||||
Net loss | $ | (62,605) | $ | (41,506) | |||||
Accrued dividends on preferred stock | (9,376) | (8,392) | |||||||
Deemed dividend on preferred stock | (701) | (692) | |||||||
Loss attributable to common stockholders | $ | (72,682) | $ | (50,590) | |||||
Denominator - Basic and Diluted: | |||||||||
Weighted average number of common shares outstanding | 123,791 | 93,740 | |||||||
Loss from continuing operations, basic and diluted | $ | (0.58) | $ | (0.46) | |||||
Income from discontinued operations, basic and diluted | (0.01) | (0.08) | |||||||
Loss per common share, basic and diluted | $ | (0.59) | $ | (0.54) | |||||
Schedule 3 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2017 | 6/30/2017 | 9/30/2017 | 12/31/2017 | 12/31/2017 | |||||||||||||||||
Loss from continuing operations, net of income taxes | (18,991) | (28,695) | (12,404) | (1,195) | (61,285) | ||||||||||||||||
Interest expense | (12,744) | (12,715) | (13,175) | (13,723) | (52,357) | ||||||||||||||||
Loss on extinguishment of debt | - | (13,453) | - | - | (13,453) | ||||||||||||||||
(Loss) gain on dispositions | - | (685) | 33 | 71 | (581) | ||||||||||||||||
Income tax benefit (expense) | (619) | (718) | (60) | 5,297 | 3,900 | ||||||||||||||||
Depreciation and amortization expense | (6,988) | (6,789) | (6,552) | (5,977) | (26,306) | ||||||||||||||||
Stock-based compensation expense | (594) | (433) | (545) | (788) | (2,360) | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | (1,080) | (1,715) | (2,795) | ||||||||||||||||
Restructuring, acquisition, integration, and other expenses, net (1) | (3,223) | (3,911) | (4,037) | (1,185) | (12,356) | ||||||||||||||||
Consolidated Adjusted EBITDA | $ | 5,177 | $ | 10,009 | $ | 13,012 | $ | 16,825 | $ | 45,023 |
(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 4 | |||||||||||||||||||||
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 | |||||||||||||||||
Loss from continuing operations, net of income taxes | (9,770) | (8,309) | (11,090) | (5,198) | (34,367) | ||||||||||||||||
Interest expense | (9,412) | (9,469) | (9,331) | (10,023) | (38,235) | ||||||||||||||||
(Loss) gain on dispositions | 939 | - | 3,015 | - | 3,954 | ||||||||||||||||
Income tax benefit (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 | (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) | ||||||||||||||||
Consolidated Adjusted EBITDA | $ | 7,405 | $ | 10,371 | $ | 3,539 | $ | 9,537 | $ | 30,852 |
(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 5 | |||||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2017 | 6/30/2017 | 9/30/2017 | 12/31/2017 | 2017 | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net loss | $ | (19,428) | $ | (29,198) | $ | (12,517) | $ | (1,462) | $ | (62,605) | |||||||||||
Less: (Loss) income from discontinued operations, net of income taxes | (437) | (503) | (113) | (267) | (1,320) | ||||||||||||||||
Loss from continuing operations, net of income taxes | (18,991) | (28,695) | (12,404) | (1,195) | (61,285) | ||||||||||||||||
Adjustments to reconcile net loss from continuing operations, net of income taxes to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Depreciation and amortization | 6,988 | 6,789 | 6,552 | 5,977 | 26,306 | ||||||||||||||||
Amortization of deferred financing costs and debt discount | 1,318 | 1,557 | 1,737 | 2,386 | 6,998 | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | 1,080 | 1,715 | 2,795 | ||||||||||||||||
Change in deferred income taxes | 619 | 604 | 646 | (5,016) | (3,147) | ||||||||||||||||
Compensation under stock-based compensation plans | 521 | 506 | 546 | 787 | 2,360 | ||||||||||||||||
Loss (gain) on dispositions | - | 685 | (33) | (71) | 581 | ||||||||||||||||
Loss on extinguishment of debt | - | 13,453 | - | - | 13,453 | ||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Receivables, net of bad debt expense | 2,333 | 6,388 | 13,875 | 1,378 | 23,974 | ||||||||||||||||
Inventory | 5,616 | 1,727 | (346) | (8,769) | (1,772) | ||||||||||||||||
Prepaid expenses and other assets | 3,601 | 1,868 | (2,436) | (3,590) | (557) | ||||||||||||||||
Accounts payable | (11,688) | (1,065) | (4,539) | 14,752 | (2,540) | ||||||||||||||||
Amounts due to plan sponsors | 645 | 382 | 64 | (149) | 942 | ||||||||||||||||
Accrued interest | (1,157) | 1,188 | (3,538) | 3,507 | - | ||||||||||||||||
Accrued expenses and other liabilities | (401) | 1,115 | (1,453) | (1,601) | (2,340) | ||||||||||||||||
Net cash (used in) provided by operating activities from continuing operations | (10,596) | 6,502 | (249) | 10,111 | 5,768 | ||||||||||||||||
Net cash used in operating activities from discontinued operations | (437) | (503) | (5,613) | (267) | (6,820) | ||||||||||||||||
Net cash (used in) provided by operating activities | (11,033) | 5,999 | (5,862) | 9,844 | (1,052) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of property and equipment | (1,684) | (2,608) | (753) | (3,345) | (8,390) | ||||||||||||||||
Investment in restricted cash | (5,132) | 77 | 105 | - | (4,950) | ||||||||||||||||
Net cash used in investing activities | (6,816) | (2,531) | (648) | (3,345) | (13,340) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from priming credit agreement, net | 23,060 | - | - | - | 23,060 | ||||||||||||||||
Proceeds from private placement, net of issuance costs | 5,052 | 15,724 | - | 1 | (20,777) | ||||||||||||||||
Fees attributable to extinguishment of debt | - | (311) | (669) | - | (980) | ||||||||||||||||
Borrowings on revolving credit facility | 563 | - | - | - | 563 | ||||||||||||||||
Repayments on revolving credit facility | (1,000) | (54,863) | - | - | (55,863) | ||||||||||||||||
Borrowing of long-term debt | - | 294,446 | - | - | 294,446 | ||||||||||||||||
Principal payments of long-term debt | (3,137) | (233,633) | - | - | (236,770) | ||||||||||||||||
Repayments of capital leases | (238) | (163) | (391) | (280) | (1,072) | ||||||||||||||||
Net proceeds from exercise of employee stock compensation plans | (51) | (104) | 50 | 224 | 119 | ||||||||||||||||
Net cash provided by financing activities | 24,249 | 21,096 | (1,010) | (55) | 2,726 | ||||||||||||||||
Net change in cash and cash equivalents | 6,400 | 24,564 | (7,520) | 6,444 | 29,888 | ||||||||||||||||
Cash and cash equivalents - beginning of period | 9,569 | 15,969 | 40,533 | 33,013 | 9,569 | ||||||||||||||||
Cash and cash equivalents - end of period | $ | 15,969 | $ | 40,533 | $ | 33,013 | $ | 39,457 | $ | 39,457 |
Schedule 6 | |||||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2016 | 6/30/2016 | 9/30/2016 | 12/31/2016 | 2016 | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net loss | $ | (9,536) | $ | (8,234) | $ | (11,265) | $ | (12,471) | $ | (41,506) | |||||||||||
Less: Income (loss) from discontinued operations, net of income taxes | 233 | 75 | (174) | (7,273) | (7,139) | ||||||||||||||||
Loss from continuing operations, net of income taxes | (9,769) | (8,309) | (11,091) | (5,198) | (34,367) | ||||||||||||||||
Adjustments to reconcile net loss from continuing operations, net of income taxes to net cash (used in) operating activities: | |||||||||||||||||||||
Depreciation and amortization | 4,538 | 4,252 | 4,166 | 8,595 | 21,551 | ||||||||||||||||
Amortization of deferred financing costs and debt discount | 1,003 | 986 | 1,016 | 1,037 | 4,042 | ||||||||||||||||
Change in fair value of contingent consideration | 51 | 51 | (4,699) | - | (4,597) | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | - | (10,450) | (10,450) | ||||||||||||||||
Change in deferred income taxes | 174 | 178 | 184 | 1,509 | 2,045 | ||||||||||||||||
Compensation under stock-based compensation plans | 1,474 | 516 | 1,357 | (1,384) | 1,963 | ||||||||||||||||
Loss (gain) on dispositions | (939) | - | (3,015) | - | (3,954) | ||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
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) | ||||||||||||||||
Amounts due to plan sponsors | 321 | (259) | 399 | (153) | 308 | ||||||||||||||||
Accrued interest | (4,630) | 4,438 | (4,437) | 4,436 | (193) | ||||||||||||||||
Accrued expenses and other liabilities | (2,548) | (592) | (4,701) | 10,185 | 2,344 | ||||||||||||||||
Net cash used in operating activities from continuing operations | (4,973) | (10,703) | (16,774) | (2,753) | (35,203) | ||||||||||||||||
Net cash used in operating activities from discontinued operations | (5,989) | 76 | (175) | (1,478) | (7,566) | ||||||||||||||||
Net cash used in operating activities | (10,962) | (10,627) | (16,949) | (4,231) | (42,769) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash consideration paid for acquisition, net of cash acquired | - | (67,516) | - | (67,516) | |||||||||||||||||
Purchases of property and equipment | (2,429) | (3,037) | (2,578) | (1,598) | (9,642) | ||||||||||||||||
Proceeds from sale of property and equipment | 1,106 | 26 | 3,045 | - | 4,177 | ||||||||||||||||
Net cash used in investing activities | (1,323) | (3,011) | (67,049) | (1,598) | (72,981) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from equity offering, net of $7,133 in offering costs | - | 83,267 | - | - | 83,267 | ||||||||||||||||
Deferred and other financing costs | - | - | - | - | - | ||||||||||||||||
Borrowings on revolving credit facility | 21,000 | 24,000 | 39,000 | 20,300 | 104,300 | ||||||||||||||||
Repayments on revolving credit facility | (13,000) | (47,000) | - | (4,000) | (64,000) | ||||||||||||||||
Borrowing of long-term debt | - | - | - | - | - | ||||||||||||||||
Principal payments of long-term debt | (3,137) | (3,137) | (3,137) | (3,139) | (12,550) | ||||||||||||||||
Repayments of capital leases | (51) | (78) | (396) | (548) | (1,073) | ||||||||||||||||
Net proceeds from exercise of employee stock compensation plans | (53) | (40) | (59) | (50) | (202) | ||||||||||||||||
Net cash provided by financing activities | 4,759 | 57,012 | 35,408 | 12,563 | 109,742 | ||||||||||||||||
Net change in cash and cash equivalents | (7,526) | 43,374 | (48,590) | 6,734 | (6,008) | ||||||||||||||||
Cash and cash equivalents - beginning of period | 15,577 | 8,051 | 51,425 | 2,835 | 15,577 | ||||||||||||||||
Cash and cash equivalents - end of period | $ | 8,051 | $ | 51,425 | $ | 2,835 | $ | 9,569 | $ | 9,569 | |||||||||||
Schedule 7 | |||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||
FULL YEAR 2018 GUIDANCE | |||||||
(dollars in millions, except EPS) | |||||||
Low End | High End | ||||||
of Range | of Range | ||||||
Revenues | $ 710.0 | $ 720.0 | |||||
Loss from continuing operations, net of income tax | (51.9) | (43.4) | |||||
Stock Compensation | 5.4 | 4.9 | |||||
Depreciation & Amortization | 27.0 | 26.0 | |||||
Interest Expense, net | 55.0 | 54.0 | |||||
Restructuring Costs | 6.0 | 5.0 | |||||
Income Tax Expense | 2.0 | 1.0 | |||||
Preferred Stock Dividends | 10.5 | 10.5 | |||||
Adjusted EBITDA | $ 54.0 | $ 58.0 | |||||
Adjusted EBITDA Margin | 7.6% | 8.1% | |||||
Diluted Loss Per Common Share | $ (0.41) | $ (0.34) | |||||
Weighted-Average Diluted Shares | 128,000 | 128,000 | |||||
Schedule 8 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
3/31/2017 | 6/30/2017 | 9/30/2017 | 12/31/2017 | 12/31/2017 | |||||||||||||||||
Net revenue | $ | 217,810 | $ | 218,106 | $ | 198,692 | $ | 182,582 | $ | 817,190 | |||||||||||
Cost of revenue (excluding depreciation expense) | 152,226 | 149,796 | 131,516 | 112,321 | 545,859 | ||||||||||||||||
Gross profit | 65,584 | 68,310 | 67,176 | 70,261 | 271,331 | ||||||||||||||||
% of revenues | 30.1% | 31.3% | 33.8% | 38.5% | 33.2% | ||||||||||||||||
Other operating expenses | 44,358 | 42,486 | 38,325 | 38,452 | 163,621 | ||||||||||||||||
Bad debt expense | 7,164 | 6,223 | 6,600 | 4,120 | 24,107 | ||||||||||||||||
General and administrative expenses | 9,478 | 10,025 | 9,784 | 11,653 | 40,940 | ||||||||||||||||
Restructuring, acquisition, integration, and other expenses, net | 3,223 | 3,911 | 4,037 | 1,185 | 12,356 | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | 1,080 | 1,715 | 2,795 | ||||||||||||||||
Depreciation and amortization expense | 6,988 | 6,789 | 6,552 | 5,977 | 26,306 | ||||||||||||||||
Interest expense, net | 12,745 | 12,715 | 13,175 | 13,722 | 52,357 | ||||||||||||||||
Loss on extinguishment of debt | - | 13,453 | - | - | 13,453 | ||||||||||||||||
Loss on dispositions | - | 685 | (33) | (71) | 581 | ||||||||||||||||
Loss from continuing operations, before income taxes | (18,372) | (27,977) | (12,344) | (6,492) | (65,185) | ||||||||||||||||
Income tax expense | (619) | (718) | (60) | 5,297 | 3,900 | ||||||||||||||||
Loss from continuing operations, net of income taxes | (18,991) | (28,695) | (12,404) | (1,195) | (61,285) | ||||||||||||||||
Loss from discontinued operations, net of income taxes | (437) | (503) | (113) | (267) | (1,320) | ||||||||||||||||
Net loss | $ | (19,428) | $ | (29,198) | $ | (12,517) | $ | (1,462) | $ | (62,605) | |||||||||||
Accrued dividends on preferred stock | (2,214) | (2,303) | (2,394) | (2,465) | (9,376) | ||||||||||||||||
Deemed dividends on preferred stock | (175) | (175) | (175) | (176) | (701) | ||||||||||||||||
Loss attributable to common stockholders | $ | (21,817) | $ | (31,676) | $ | (15,086) | $ | (4,103) | $ | (72,682) | |||||||||||
Loss per common share: | |||||||||||||||||||||
Denominator - Basic and Diluted: | |||||||||||||||||||||
Weighted average number of common shares outstanding | 118,783 | 121,189 | 127,488 | 127,488 | 123,791 | ||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.18) | $ | (0.26) | $ | (0.12) | $ | (0.02) | $ | (0.58) | |||||||||||
Income from discontinued operations, basic and diluted | - | - | - | (0.01) | (0.01) | ||||||||||||||||
Net loss per common share, basic and diluted | $ | (0.18) | $ | (0.26) | $ | (0.12) | $ | (0.03) | $ | (0.59) | |||||||||||
Schedule 9 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
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 dispositions | (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) | |||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20180308005540/en/
Source:
Investors
BioScrip, Inc.
Stephen
Deitsch, 720-697-5200
Chief Financial Officer & Treasurer
stephen.deitsch@bioscrip.com
or
The
Equity Group
Kalle Ahl, CFA, 212-836-9614
kahl@equityny.com