BioScrip Reports Fourth Quarter and Full Year 2018 Financial Results
Fourth Quarter 2018 Highlights
- Net revenue of
$183.6 million , up 2.8% compared to$178.5 million in the fourth quarter of 2017, on a comparable ASC 606 basis. - The company recorded a bad debt adjustment which reduced both net revenue and adjusted EBITDA by
$7.5 million . - Net revenue year over year growth of 7.8%, excluding bad debt expense of
$13.3 million and$4.0 million from both current and prior year net revenue. - Net loss from continuing operations of
$15.4 million , compared to$1.7 million in the prior year. - Adjusted EBITDA of
$11.6 million , or$19.1 million before the$7.5 million bad debt adjustment, compared to$17.1 million in the prior year quarter. - Liquidity of
$14.5 million atDecember 31, 2018 , consisting of cash and cash equivalents.
2018 Highlights
- Net revenue of
$708.9 million , compared to$793.5 million in 2017, on a comparable ASC 606 basis. - Net loss from continuing operations of
$51.6 million , compared to$63.3 million in 2017. - Adjusted EBITDA of
$45.1 million , or$52.6 million before the bad debt expense adjustment of$7.5 million , compared to$45.0 million in the prior year.
Mr. Greenleaf continued, “This morning
Financial Guidance
Given the pending combination announced today with Option Care, the Company will not be providing updated 2019
Conference Call and Presentation
A copy of the merger agreement investor presentation will be available under the “Investors” section of the Company’s website at www.bioscrip.com.
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.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
PARTICIPANTS IN THE SOLICITATION
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the matters discussed above. Information about the Company’s directors and executive officers is set forth in the Proxy Statement on Schedule 14A for the Company’s 2018 annual meeting of stockholders, which was filed with the
About
Investor Contacts
Stephen Deitsch
Chief Financial Officer & Treasurer
T: (720) 697-5200
stephen.deitsch@bioscrip.com
The
T: (212) 836-9614
kahl@equityny.com
Forward-Looking Statements – Safe Harbor
This communication, in addition to historical information, contains “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of
Many of these risks, uncertainties and assumptions are beyond BioScrip’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the parties on the date they are made, and neither
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) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 14,539 | $ | 39,457 | |||
Restricted cash | 4,321 | 4,950 | |||||
Accounts receivable, net | 114,864 | 85,522 | |||||
Inventory | 26,689 | 38,044 | |||||
Prepaid expenses and other current assets | 14,292 | 18,620 | |||||
Total current assets | 174,705 | 186,593 | |||||
Property and equipment, net | 28,788 | 26,973 | |||||
Goodwill | 367,198 | 367,198 | |||||
Deferred taxes | 1,032 | 1,098 | |||||
Intangible assets, net | 10,470 | 19,114 | |||||
Other non-current assets | 1,745 | 2,116 | |||||
Total assets | $ | 583,938 | $ | 603,092 | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 3,179 | $ | 1,722 | |||
Accounts payable | 67,025 | 65,963 | |||||
Amounts due to plan sponsors | 956 | 4,621 | |||||
Accrued interest | 6,706 | 6,706 | |||||
Accrued expenses and other current liabilities | 29,450 | 26,118 | |||||
Total current liabilities | 107,316 | 105,130 | |||||
Long-term debt, net of current portion | 501,495 | 478,866 | |||||
Other non-current liabilities | 25,842 | 21,769 | |||||
Total liabilities | 634,653 | 605,765 | |||||
Series A convertible preferred stock, $.0001 par value | 3,231 | 2,827 | |||||
Series C convertible preferred stock, $.0001 par value | 90,058 | 79,252 | |||||
Stockholders' deficit | |||||||
Preferred stock, $.0001 par value | - | - | |||||
Common stock, $.0001 par value | 13 | 13 | |||||
Treasury stock, shares at cost | (950 | ) | (16 | ) | |||
Additional paid-in capital | 618,137 | 624,762 | |||||
Accumulated deficit | (761,204 | ) | (709,511 | ) | |||
Total stockholders' deficit | (144,004 | ) | (84,752 | ) | |||
Total liabilities and stockholders' deficit | $ | 583,938 | $ | 603,092 | |||
Schedule 2 | |||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, expect per share amounts) | |||||||
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Net revenue | $ | 708,903 | $ | 817,190 | |||
Cost of revenue (excluding depreciation expense) | 465,865 | 547,948 | |||||
Gross profit | 243,038 | 269,242 | |||||
Percentage of revenues | 34.3 | % | 32.9 | % | |||
Operating expenses: | |||||||
Service location operation expenses | 154,813 | 163,273 | |||||
General and administrative expenses | 47,264 | 39,625 | |||||
Depreciation and amortization expense | 23,601 | 27,725 | |||||
Restructuring, acquisition, integration, and other expenses | 6,457 | 12,662 | |||||
Bad debt expense | - | 23,697 | |||||
Total operating expenses | 232,135 | 266,982 | |||||
Operating income | 10,903 | 2,260 | |||||
Other expense: | |||||||
Interest expense, net | 57,433 | 52,072 | |||||
Change in fair value of equity linked liabilities | 4,836 | 3,587 | |||||
Loss (gain) on dispositions | (342 | ) | 581 | ||||
Loss on extinguishment of debt | - | 13,453 | |||||
Total other expense | 61,927 | 69,693 | |||||
Loss from continuing operations, before income taxes | (51,024 | ) | (67,433 | ) | |||
Income tax (expense) benefit | (568 | ) | 4,130 | ||||
Loss from continuing operations | (51,592 | ) | (63,303 | ) | |||
Loss from discontinued operations, net of income taxes | (101 | ) | (893 | ) | |||
Net loss | (51,693 | ) | (64,196 | ) | |||
Accrued dividends on preferred stock | (11,210 | ) | (10,077 | ) | |||
Loss attributable to common stockholders | $ | (62,903 | ) | $ | (74,273 | ) | |
Loss per common share: | |||||||
Loss from continuing operations, basic and diluted | $ | (0.49 | ) | $ | (0.59 | ) | |
Loss from discontinued operations, basic and diluted | - | (0.01 | ) | ||||
Loss per common share, basic and diluted | $ | (0.49 | ) | $ | (0.60 | ) | |
Weighted average number of common shares outstanding: | |||||||
Basic and diluted | 127,942 | 123,791 | |||||
Schedule 3 | ||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | December 31, 2018 | ||||||||||||||||
Loss from continuing operations | $ | (12,987 | ) | $ | (15,124 | ) | $ | (8,103 | ) | $ | (15,378 | ) | $ | (51,592 | ) | |||||
Interest expense, net | (13,395 | ) | (13,805 | ) | (14,971 | ) | (15,262 | ) | (57,433 | ) | ||||||||||
Change in fair value of equity linked liabilities | 3,439 | (3,064 | ) | (1,605 | ) | (3,606 | ) | (4,836 | ) | |||||||||||
Gain on dispositions | 305 | 13 | 10 | 14 | 342 | |||||||||||||||
Income tax expense | (48 | ) | (43 | ) | (102 | ) | (375 | ) | (568 | ) | ||||||||||
Depreciation and amortization expense | (6,486 | ) | (6,366 | ) | (5,767 | ) | (4,982 | ) | (23,601 | ) | ||||||||||
Stock-based compensation | (556 | ) | (1,253 | ) | (1,224 | ) | (1,142 | ) | (4,175 | ) | ||||||||||
Restructuring, acquisition, integration, and other expenses, net (1) | (1,882 | ) | (2,024 | ) | (885 | ) | (1,666 | ) | (6,457 | ) | ||||||||||
Consolidated Adjusted EBITDA | $ | 5,636 | $ | 11,418 | $ | 16,441 | $ | 11,641 | $ | 45,136 | ||||||||||
(1) Restructuring, acquisition, integration, and other expenses include non-recurring costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed branches/offices. | ||||||||||||||||||||
Schedule 4 | ||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | ||||||||||||||||
Loss from continuing operations | $ | (19,419 | ) | $ | (29,151 | ) | $ | (13,058 | ) | $ | (1,675 | ) | $ | (63,303 | ) | |||||
Interest expense, net | (12,659 | ) | (12,630 | ) | (13,360 | ) | (13,423 | ) | (52,072 | ) | ||||||||||
Change in fair value of equity linked liabilities | - | - | (1,103 | ) | (2,484 | ) | (3,587 | ) | ||||||||||||
Loss on extinguishment of debt | - | (13,453 | ) | - | - | (13,453 | ) | |||||||||||||
Gain (loss) on dispositions | - | (685 | ) | 33 | 71 | (581 | ) | |||||||||||||
Income tax (expense) benefit | (619 | ) | (718 | ) | (60 | ) | 5,527 | 4,130 | ||||||||||||
Depreciation and amortization expense | (7,165 | ) | (7,065 | ) | (7,058 | ) | (6,437 | ) | (27,725 | ) | ||||||||||
Stock-based compensation | (594 | ) | (433 | ) | (545 | ) | (788 | ) | (2,360 | ) | ||||||||||
Restructuring, acquisition, integration, and other expenses, net (1) | (3,223 | ) | (4,147 | ) | (4,037 | ) | (1,255 | ) | (12,662 | ) | ||||||||||
Consolidated Adjusted EBITDA | $ | 4,841 | $ | 9,980 | $ | 13,072 | $ | 17,114 | $ | 45,007 | ||||||||||
(1) Restructuring, acquisition, integration, and other expenses include non-recurring costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, training costs, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed branches/offices. | ||||||||||||||||||||
Schedule 5 | |||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | December 31, 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net loss | $ | (13,017 | ) | $ | (15,139 | ) | $ | (8,174 | ) | $ | (15,363 | ) | $ | (51,693 | ) | ||||
Less: Income (loss) from discontinued operations, net of income taxes | (30 | ) | (15 | ) | (73 | ) | 17 | (101 | ) | ||||||||||
Loss from continuing operations | (12,987 | ) | (15,124 | ) | (8,101 | ) | (15,380 | ) | (51,592 | ) | |||||||||
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities: | |||||||||||||||||||
Depreciation and amortization | 6,486 | 6,366 | 5,765 | 4,984 | 23,601 | ||||||||||||||
Amortization of deferred financing costs and debt discount | 2,023 | 2,048 | 2,013 | 2,088 | 8,172 | ||||||||||||||
Change in deferred taxes | 31 | 25 | 52 | (42 | ) | 66 | |||||||||||||
Stock-based compensation | 556 | 1,253 | 1,223 | 1,143 | 4,175 | ||||||||||||||
Paid-in-kind interest capitalized as principal on Second Lien Note Facility | - | - | 3,800 | 3,987 | 7,787 | ||||||||||||||
Loss (gain) on dispositions | (305 | ) | (13 | ) | (12 | ) | (12 | ) | (342 | ) | |||||||||
Change in fair value of equity linked liabilities | (3,439 | ) | 3,064 | 1,603 | 3,608 | 4,836 | |||||||||||||
Changes in assets and liabilities, net of acquired businesses: | |||||||||||||||||||
Accounts receivable | (2,663 | ) | (8,734 | ) | (16,709 | ) | (1,236 | ) | (29,342 | ) | |||||||||
Inventory | (3,505 | ) | 16,264 | 2,180 | (3,584 | ) | 11,355 | ||||||||||||
Prepaid expenses and other assets | 8,807 | 1,247 | (3,098 | ) | (2,257 | ) | 4,699 | ||||||||||||
Accounts payable | 2,872 | (19,574 | ) | 14,640 | 3,124 | 1,062 | |||||||||||||
Amounts due to plan sponsors | (969 | ) | (1,468 | ) | (638 | ) | (590 | ) | (3,665 | ) | |||||||||
Accrued interest | (4,487 | ) | 4,510 | (4,461 | ) | 4,438 | - | ||||||||||||
Accrued expenses and other liabilities | 2,418 | (4,984 | ) | 1,899 | (148 | ) | (815 | ) | |||||||||||
Net cash provided by (used in) operating activities from continuing operations | (5,162 | ) | (15,120 | ) | 156 | 123 | (20,003 | ) | |||||||||||
Net cash provided by (used in) operating activities from discontinued operations | (30 | ) | (15 | ) | (72 | ) | 16 | (101 | ) | ||||||||||
Net cash used in operating activities | (5,192 | ) | (15,135 | ) | 84 | 139 | (20,104 | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of property and equipment, net | (2,646 | ) | (4,300 | ) | (2,462 | ) | (4,467 | ) | (13,875 | ) | |||||||||
Proceeds from sales of property and equipment | - | - | - | 360 | 360 | ||||||||||||||
Net cash used in investing activities | (2,646 | ) | (4,300 | ) | (2,462 | ) | (4,107 | ) | (13,515 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from private issuances, net | - | - | - | - | - | ||||||||||||||
Proceeds from priming credit agreement, net | - | - | - | - | - | ||||||||||||||
Fees attributable to extinguishment of debt | - | - | - | - | - | ||||||||||||||
Borrowings on revolving credit facility | - | - | - | - | - | ||||||||||||||
Repayments on revolving credit facility | - | - | - | - | - | ||||||||||||||
Borrowing of long-term debt, net of expenses | - | 10,000 | - | - | 10,000 | ||||||||||||||
Principal payments of long-term debt | - | - | - | - | - | ||||||||||||||
Repayments of capital leases | (967 | ) | (218 | ) | (438 | ) | (250 | ) | (1,873 | ) | |||||||||
Net activity from exercise of employee stock awards | (300 | ) | 121 | 310 | (186 | ) | (55 | ) | |||||||||||
Net cash provided by financing activities | (1,267 | ) | 9,903 | (128 | ) | (436 | ) | 8,072 | |||||||||||
Net change in cash and cash equivalents and restricted cash | (9,105 | ) | (9,532 | ) | (2,506 | ) | (4,404 | ) | (25,547 | ) | |||||||||
Cash and cash equivalents and restricted cash - beginning of period | 44,407 | 35,302 | 25,770 | 23,264 | 44,407 | ||||||||||||||
Cash and cash equivalents and restricted cash - end of period | $ | 35,302 | $ | 25,770 | $ | 23,264 | $ | 18,860 | $ | 18,860 | |||||||||
Schedule 6 | |||||||||||||||||||
BIOSCRIP, INC AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED CONDENSED CASH FLOWS | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net loss | $ | (19,718 | ) | $ | (29,525 | ) | $ | (12,992 | ) | $ | (1,961 | ) | $ | (64,196 | ) | ||||
Less: Income (loss) from discontinued operations, net of income taxes | (299 | ) | (373 | ) | 66 | (287 | ) | (893 | ) | ||||||||||
Loss from continuing operations | (19,419 | ) | (29,152 | ) | (13,058 | ) | (1,674 | ) | (63,303 | ) | |||||||||
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities: | |||||||||||||||||||
Depreciation and amortization | 7,165 | 7,067 | 7,056 | 6,437 | 27,725 | ||||||||||||||
Amortization of deferred financing costs and debt discount | 1,318 | 1,557 | 1,801 | 2,322 | 6,998 | ||||||||||||||
Change in deferred taxes | 619 | 604 | 645 | (5,247 | ) | (3,379 | ) | ||||||||||||
Stock-based compensation | 521 | 433 | 571 | 835 | 2,360 | ||||||||||||||
Loss (gain) on dispositions | - | 685 | (33 | ) | (71 | ) | 581 | ||||||||||||
Change in fair value of equity linked liabilities | - | - | 1,103 | 2,484 | 3,587 | ||||||||||||||
Loss on extinguishment of debt | - | 13,453 | - | - | 13,453 | ||||||||||||||
Changes in assets and liabilities, net of acquired businesses: | |||||||||||||||||||
Accounts receivable | 2,210 | 6,281 | 13,766 | 1,307 | 23,564 | ||||||||||||||
Inventory | 5,616 | 1,727 | 1,048 | (10,935 | ) | (2,544 | ) | ||||||||||||
Prepaid expenses and other assets | 3,601 | 1,872 | (2,440 | ) | (3,272 | ) | (239 | ) | |||||||||||
Accounts payable | (10,936 | ) | (43 | ) | (3,737 | ) | 15,405 | 689 | |||||||||||
Amounts due to plan sponsors | 645 | 382 | 64 | (149 | ) | 942 | |||||||||||||
Accrued interest | (1,157 | ) | 1,188 | (3,539 | ) | 3,509 | 1 | ||||||||||||
Accrued expenses and other liabilities | (917 | ) | 316 | (2,199 | ) | (2,005 | ) | (4,805 | ) | ||||||||||
Net cash provided by (used in) operating activities from continuing operations | (10,734 | ) | 6,370 | 1,048 | 8,946 | 5,630 | |||||||||||||
Net cash provided by (used in) operating activities from discontinued operations | (299 | ) | (373 | ) | (5,434 | ) | (287 | ) | (6,393 | ) | |||||||||
Net cash used in operating activities | (11,033 | ) | 5,997 | (4,386 | ) | 8,659 | (763 | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of property and equipment, net | (1,684 | ) | (2,608 | ) | (2,278 | ) | (2,110 | ) | (8,680 | ) | |||||||||
Proceeds from sales of property and equipment | - | - | - | - | - | ||||||||||||||
Net cash used in investing activities | (1,684 | ) | (2,608 | ) | (2,278 | ) | (2,110 | ) | (8,680 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from private issuances, net | 5,052 | 15,724 | 46 | (45 | ) | 20,777 | |||||||||||||
Proceeds from priming credit agreement, net | 23,060 | - | - | - | 23,060 | ||||||||||||||
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, net of expenses | - | 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 activity from exercise of employee stock awards | (51 | ) | (102 | ) | 53 | 220 | 120 | ||||||||||||
Net cash provided by financing activities | 24,249 | 21,098 | (961 | ) | (105 | ) | 44,281 | ||||||||||||
Net change in cash and cash equivalents and restricted cash | 11,532 | 24,487 | (7,625 | ) | 6,444 | 34,838 | |||||||||||||
Cash and cash equivalents and restricted cash - beginning of period | 9,569 | 21,101 | 45,588 | 37,963 | 9,569 | ||||||||||||||
Cash and cash equivalents and restricted cash - end of period | $ | 21,101 | $ | 45,588 | $ | 37,963 | $ | 44,407 | $ | 44,407 | |||||||||
Schedule 7 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | December 31, 2018 | |||||||||||||||||
Net revenue | $ | 168,584 | $ | 175,789 | $ | 180,962 | $ | 183,568 | $ | 708,903 | |||||||||||
Cost of revenue (excluding depreciation expense) | 113,536 | 115,832 | 115,051 | 121,446 | 465,865 | ||||||||||||||||
Gross profit | 55,048 | 59,957 | 65,911 | 62,122 | 243,038 | ||||||||||||||||
Percentage of revenues | 32.7 | % | 34.1 | % | 36.4 | % | 33.8 | % | 34.3 | % | |||||||||||
Operating expenses: | |||||||||||||||||||||
Service location operation expenses | 39,299 | 38,861 | 38,216 | 38,437 | 154,813 | ||||||||||||||||
General and administrative expenses | 10,669 | 10,931 | 12,478 | 13,186 | 47,264 | ||||||||||||||||
Depreciation and amortization expense | 6,486 | 6,366 | 5,767 | 4,982 | 23,601 | ||||||||||||||||
Restructuring, acquisition, integration, and other expenses | 1,882 | 2,024 | 885 | 1,666 | 6,457 | ||||||||||||||||
Total operating expenses | 58,336 | 58,182 | 57,346 | 58,271 | 232,135 | ||||||||||||||||
Operating income (loss) | (3,288 | ) | 1,775 | 8,565 | 3,851 | 10,903 | |||||||||||||||
Other expense: | - | ||||||||||||||||||||
Interest expense, net | 13,395 | 13,805 | 14,971 | 15,262 | 57,433 | ||||||||||||||||
Change in fair value of equity linked liabilities | (3,439 | ) | 3,064 | 1,605 | 3,606 | 4,836 | |||||||||||||||
Loss (gain) on dispositions | (305 | ) | (13 | ) | (10 | ) | (14 | ) | (342 | ) | |||||||||||
Total other expense | 9,651 | 16,856 | 16,566 | 18,854 | 61,927 | ||||||||||||||||
Loss from continuing operations, before income taxes | (12,939 | ) | (15,081 | ) | (8,001 | ) | (15,003 | ) | (51,024 | ) | |||||||||||
Income tax (expense) benefit | (48 | ) | (43 | ) | (102 | ) | (375 | ) | (568 | ) | |||||||||||
Loss from continuing operations | (12,987 | ) | (15,124 | ) | (8,103 | ) | (15,378 | ) | (51,592 | ) | |||||||||||
Loss from discontinued operations, net of income taxes | (30 | ) | (15 | ) | (71 | ) | 15 | (101 | ) | ||||||||||||
Net loss | (13,017 | ) | (15,139 | ) | (8,174 | ) | (15,363 | ) | (51,693 | ) | |||||||||||
Accrued dividends on preferred stock | (2,657 | ) | (2,756 | ) | (2,861 | ) | (2,936 | ) | (11,210 | ) | |||||||||||
Loss attributable to common stockholders | $ | (15,674 | ) | $ | (17,895 | ) | $ | (11,035 | ) | $ | (18,299 | ) | $ | (62,903 | ) | ||||||
Loss per common share: | |||||||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.49 | ) | ||||||
Loss from discontinued operations, basic and diluted | - | - | - | - | - | ||||||||||||||||
Loss per common share, basic and diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.49 | ) | ||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||
Basic and diluted | 127,772 | 128,038 | 127,528 | 128,074 | 127,942 | ||||||||||||||||
Schedule 8 | |||||||||||||||||||||
BIOSCRIP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||||
Net revenue | $ | 217,810 | $ | 218,106 | $ | 198,692 | $ | 182,582 | $ | 817,190 | |||||||||||
Cost of revenue (excluding depreciation expense) | 152,936 | 150,495 | 132,129 | 112,388 | 547,948 | ||||||||||||||||
Gross profit | 64,874 | 67,611 | 66,563 | 70,194 | 269,242 | ||||||||||||||||
Percentage of revenues | 29.8 | % | 31.0 | % | 33.5 | % | 38.4 | % | 32.9 | % | |||||||||||
Operating expenses: | |||||||||||||||||||||
Service location operation expenses | 44,319 | 42,293 | 38,143 | 38,518 | 163,273 | ||||||||||||||||
General and administrative expenses | 9,266 | 9,654 | 9,405 | 11,300 | 39,625 | ||||||||||||||||
Depreciation and amortization expense | 7,165 | 7,065 | 7,058 | 6,437 | 27,725 | ||||||||||||||||
Restructuring, acquisition, integration, and other expenses | 3,223 | 4,147 | 4,037 | 1,255 | 12,662 | ||||||||||||||||
Bad debt expense | 7,042 | 6,117 | 6,488 | 4,050 | 23,697 | ||||||||||||||||
Total operating expenses | 71,015 | 69,276 | 65,131 | 61,560 | 266,982 | ||||||||||||||||
Operating income (loss) | (6,141 | ) | (1,665 | ) | 1,432 | 8,634 | 2,260 | ||||||||||||||
Other expense: | - | ||||||||||||||||||||
Interest expense, net | 12,659 | 12,630 | 13,360 | 13,423 | 52,072 | ||||||||||||||||
Change in fair value of equity linked liabilities | - | - | 1,103 | 2,484 | 3,587 | ||||||||||||||||
Loss (gain) on dispositions | - | 685 | (33 | ) | (71 | ) | 581 | ||||||||||||||
Loss on extinguishment of debt | - | 13,453 | - | - | 13,453 | ||||||||||||||||
Total other expense | 12,659 | 26,768 | 14,430 | 15,836 | 69,693 | ||||||||||||||||
Loss from continuing operations, before income taxes | (18,800 | ) | (28,433 | ) | (12,998 | ) | (7,202 | ) | (67,433 | ) | |||||||||||
Income tax (expense) benefit | (619 | ) | (718 | ) | (60 | ) | 5,527 | 4,130 | |||||||||||||
Loss from continuing operations | (19,419 | ) | (29,151 | ) | (13,058 | ) | (1,675 | ) | (63,303 | ) | |||||||||||
Loss from discontinued operations, net of income taxes | (299 | ) | (373 | ) | 66 | (287 | ) | (893 | ) | ||||||||||||
Net loss | (19,718 | ) | (29,524 | ) | (12,992 | ) | (1,962 | ) | (64,196 | ) | |||||||||||
Accrued dividends on preferred stock | (2,388 | ) | (2,478 | ) | (2,569 | ) | (2,642 | ) | (10,077 | ) | |||||||||||
Loss attributable to common stockholders | $ | (22,106 | ) | $ | (32,002 | ) | $ | (15,561 | ) | $ | (4,604 | ) | $ | (74,273 | ) | ||||||
Loss per common share: | |||||||||||||||||||||
Loss from continuing operations, basic and diluted | $ | (0.18 | ) | $ | (0.26 | ) | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.59 | ) | ||||||
Loss from discontinued operations, basic and diluted | - | - | - | (0.01 | ) | (0.01 | ) | ||||||||||||||
Loss per common share, basic and diluted | $ | (0.18 | ) | $ | (0.26 | ) | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.60 | ) | ||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||
Basic and diluted | 118,783 | 121,189 | 127,488 | 127,488 | 123,791 |
Source: BioScrip, Inc.