News Release
BIOSCRIP ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
Elmsford, NY and Minneapolis, MN — November 3, 2005 —BioScrip, Inc. (NASDAQ: BIOS) today reported third quarter 2005 revenue of $294.0 million and earnings per share of $0.02. Excluding special charges totaling $1.0 million ($0.6 million net of taxes), or $0.01 per share in the third quarter 2005, earnings per share for the quarter would have been $0.03.
“We are right on track to deliver our expected financial performance for first quarter 2006. We are making good progress with the rollout of new product lines through our community pharmacies and with our cost savings efforts,” noted Henry F. Blissenbach, BioScrip’s President and Chief Executive Officer. “We now have 10 of our 31 community pharmacies driving our expanded specialty product lines, including oncology, multiple sclerosis and rheumatoid arthritis, along with our traditional HIV and transplant lines. We continue to expect to achieve our annualized cost savings target of at least $10 million as we begin calendar 2006.”
Mr. Blissenbach commented further, “I am enthusiastic about our growth initiatives for 2006. We are investing much of our time and energy in strengthening and expanding our presence in the community specialty pharmacy market, as evidenced by our recently completed acquisition of Northland Pharmacy in Columbus, Ohio, and the added regional presence it brings us.”
Third Quarter Reported Results
Revenue for the third quarter 2005 was $294.0 million. Revenue, gross profit and operating expenses were up significantly in 2005 due to the acquisition of Chronimed Inc. on March 12, 2005, the results of which are not included in third quarter 2004 results. Net income was $0.6 million or $0.02 per share for the third quarter 2005 compared with net income of $1.7 million or $0.08 per share for the third quarter 2004. Special charges in the third quarter 2005 were $1.0 million ($0.6 million net of taxes) or $0.01 per share, which include merger and related re-branding costs. Third quarter reported results are provided in Schedules 1, 2 and 3 attached to this press release.
Third Quarter Adjusted Results (1)
Third quarter adjusted statements of operations and related reconciliations to reported financial results are provided in Schedules 4 through 8 attached to this press release. Those adjusted financial results reflect operations as if the merger were completed at the beginning of each period presented and exclude special charges for merger and related re-branding costs.
Revenue for third quarter 2005 decreased 3% to $294.0 million, compared to $304.1 million in the third quarter 2004. Third quarter 2005 Specialty Services revenue declined $12.1 million or 6% to $196.1 million compared to $208.2 million for the same period last year, due primarily to the loss of the Aetna specialty pharmacy distribution contract that ended February 28, 2005, partially offset by
growth in community pharmacy. Revenue from Aetna was approximately $30.0 million in last year’s third quarter. Excluding the lost business from Aetna, Specialty Services revenue grew 10% over the same period a year ago. PBM Services revenue, which includes traditional mail service, increased in the third quarter 2005 to $97.9 million compared to $95.9 million for the same period last year. PBM Services was impacted negatively by previously disclosed contract expirations, offset by continued growth from core customers.
Gross profit for third quarter 2005 was $31.7 million, or 10.8% of revenue compared to $32.3 million, or 10.6% of revenue for the same period last year. PBM Services margins are ahead of last year due to consistent pricing and improved generic mix in traditional mail service. Specialty Services margins are holding steady despite price pressures in infusion and specialty mail. Selling, general and administrative expenses were $27.9 million for third quarter 2005 compared to $26.0 million for the same period a year ago. Amortization expense was $1.8 million for third quarter 2005 compared to $0.8 million last year, reflecting the increased amortization coming from the intangible assets acquired from Chronimed Inc. in the merger. Adjusted operating income for the third quarter 2005 decreased to $2.0 million compared to $5.6 million for the same period a year ago.
Net income for the third quarter 2005 was $1.3 million or $0.03 per share compared to $3.4 million or $0.09 per share for third quarter 2004.
Financial Outlook
The following financial outlook assumes that the MIM and Chronimed merger was completed effective January 1, 2005. The outlook excludes special charges and is consistent with the adjusted financial presentation in Schedule 4 attached to this press release and the adjusted results discussed above.
Fourth Quarter and Calendar Year 2005
The Company expects revenue for total year 2005 to be approximately $1.18 billion, with revenue of $295 to $300 million in fourth quarter 2005; earnings before interest, taxes, depreciation and amortization (EBITDA) for 2005 of approximately $20 million before special charges, with approximately $5 million in fourth quarter 2005; and total year adjusted EPS of approximately $0.17 before special charges, with approximately $0.04 adjusted EPS in fourth quarter 2005. Also, the Company continues to expect special charges related to the merger and re-branding will continue through first quarter March 2006.
First Quarter 2006
As previously communicated, the Company expects first quarter March 2006 revenue of approximately $303 to $308 million, EBITDA of $8.5 to $9.5 million, and EPS of $0.08 to $0.10.
Expensing of Share-Based Payments
The Company’s financial outlook above does not reflect the impact of expensing share-based payments under the new Financial Accounting Standards Board Statement (SFAS) No. 123(R) to be implemented in the first quarter of 2006. The Company is completing its review of SFAS No. 123(R) and will provide estimates of the earnings impact when the review is completed.
Conference Call Information
BioScrip will hold a conference call to discuss third quarter 2005 financial results on Thursday, November 3, 2005 at 10:00 a.m. EST. To access the live conference call, dial 888-214-7566 at least five to ten minutes prior to the scheduled time and follow the operator’s instructions. The conference call will also be webcast live over the Internet. To access the live webcast, visit the BioScrip website at www.bioscrip.com and follow the logon prompts.
If you are unable to listen to the live call, a webcast replay will be archived on the BioScrip website. In addition, a recording of the conference call will be available beginning at 12:00 p.m. EST November 3 through 12:00 p.m. EST November 10, 2005. To access the replay of the call, dial 800-633-8284 or 402-977-9140, and enter reservation number 21266460.
About BioScrip, Inc.
BioScrip provides comprehensive pharmaceutical care solutions. We partner with healthcare payors, pharmaceutical manufacturers, government agencies, physicians, and patients to deliver cost effective programs that enhance the quality of patient life. We focus our products and services in two core areas: Specialty medication distribution and clinical management services, both nationally and community-based; and Pharmacy Benefit Management services. Our specialty medication distribution capabilities include condition-specific clinical management programs tailored to improve the care of individuals with complex health conditions such as HIV/AIDS, Cancer, Infusion IVIG, Hepatitis C, Rheumatoid Arthritis, Multiple Sclerosis, and Transplantation. Our complete pharmacy benefit management programs include customized benefit plan design, pharmacy network management and sophisticated reporting capabilities that deliver improved clinical and economic outcomes. In addition, we have 31 community pharmacy locations in 26 major metropolitan markets across the U.S., providing nationwide access and clinical management capabilities in a high-touch community-based environment.
Forward Looking Statements
This press release may contain statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company
and our success with respect to the integration and consolidation. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Important factors that could cause such differences are described in the Company’s periodic filings with the Securities and Exchange Commission.
Notes to Press Release Tables
On March 12, 2005 we completed our merger with Chronimed Inc. The accompanying balance sheet (Schedule 2) as of September 30, 2005, reflects the impact of this transaction and the preliminary allocation of the purchase price to the net assets from Chronimed Inc. This purchase price allocation is based on an independent valuation and management’s assessment of that valuation. We anticipate that some adjustments may need to be made to this purchase price allocation as certain assets acquired in the merger are settled through March 2006.
BioScrip financial results include Chronimed Inc. financial results for the nineteen days ended March 31, 2005 through the most recently completed quarter ended September 30, 2005. Actual GAAP reported financial results are provided in Schedules 1, 2 and 3 attached to this press release. To assist you in understanding the impact of the merger with Chronimed, we have prepared the attached schedule 4 to reflect the combined adjusted results of operations of BioScrip, Inc. (formerly MIM Corporation) and Chronimed as if the merger with Chronimed had been completed at the beginning of each period presented, without special charges. This press release also includes certain non-GAAP financial measures as defined under Regulation G. As required by Regulation G, we have provided in Schedules 5, 6, 7 and 8 to this press release a reconciliation of those measures to the most comparable GAAP financial measures.
| | (1) | | See Table of Reconciliations on Schedules 5, 6, 7 and 8 for the differences between the non-GAAP financial measures and the most directly comparable GAAP financial measures. As required by Regulation G, the Company has provided a quantitative comparison between GAAP and disclosed non-GAAP financial measures. The non-GAAP measures presented provide important insight into the ongoing operations and a meaningful comparison of revenue, gross profit, selling, general and administrative expense, operating income, earnings before interest, taxes, depreciation and amortization (EBITDA), net income and earnings per share. |
Contact
Brad Schumacher
Investor Relations
BioScrip, Inc.
952-979-3942
bschumacher@bioscrip.com
(more)
Schedule 1
BIOSCRIP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | |
| | | 2005 | | | 2004 | | | 2005 (a) | | | 2004 | |
| |
| Revenue | | $ | 293,976 | | | $ | 161,498 | | | $ | 768,991 | | | $ | 463,676 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue | | | 262,257 | | | | 144,764 | | | | 686,312 | | | | 413,128 | |
| |
| Gross profit | | | 31,719 | | | | 16,734 | | | | 82,679 | | | | 50,548 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 27,944 | | | | 12,843 | | | | 71,816 | | | | 37,944 | |
| Amortization of intangibles | | | 1,752 | | | | 817 | | | | 4,599 | | | | 2,225 | |
| Special charges | | | 972 | | | | — | | | | 7,991 | | | | — | |
| |
| Total operating expenses | | | 30,668 | | | | 13,660 | | | | 84,406 | | | | 40,169 | |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 1,051 | | | | 3,074 | | | | (1,727 | ) | | | 10,379 | |
| Interest income (expense), net | | | (50 | ) | | | (204 | ) | | | (191 | ) | | | (632 | ) |
| |
| Income before income taxes | | | 1,001 | | | | 2,870 | | | | (1,918 | ) | | | 9,747 | |
| | | | | | | | | | | | | | | | | |
| Income tax (expense) benefit | | | (360 | ) | | | (1,148 | ) | | | 686 | | | | (3,899 | ) |
| |
| Net income | | $ | 641 | | | $ | 1,722 | | | $ | (1,232 | ) | | $ | 5,848 | |
| |
| Basic net (loss) income per share | | $ | 0.02 | | | $ | 0.08 | | | $ | (0.04 | ) | | $ | 0.26 | |
| Diluted net income per share | | $ | 0.02 | | | $ | 0.08 | | | $ | (0.04 | ) | | $ | 0.26 | |
| |
| | | | | | | | | | | | | | | | | |
| Basic weighted-average shares | | | 36,932 | | | | 22,301 | | | | 33,157 | | | | 22,225 | |
| Diluted weighted-average shares | | | 37,449 | | | | 22,730 | | | | 33,157 | | | | 22,734 | |
| |
| | |
| (a) | | Includes the results of operations of MIM for the full nine months and of Chronimed from March 13, 2005 through September 30, 2005. |
Schedule 2
BIOSCRIP, INC.
Consolidated Balance Sheets
(in thousands)
| | | | | | | | | |
| | | Sept. 30, | | | | |
| | | 2005 | | | December 31, | |
| | | (unaudited) | | | 2004 | |
| |
ASSETS | | | | | | | | |
| Current assets | | | | | | | | |
| | | | | | | | | |
| Cash and cash equivalents | | $ | — | | | $ | 2,957 | |
| Accounts receivable (net of allowances of $4,861 and $3,240, respectively) | | | 113,096 | | | | 65,439 | |
| Inventory | | | 23,721 | | | | 11,897 | |
| Prepaid expenses and other current assets | | | 2,914 | | | | 2,112 | |
| Short term deferred taxes | | | 7,780 | | | | 2,798 | |
| |
| Total current assets | | | 147,511 | | | | 85,203 | |
| | | | | | | | | |
| Property and equipment, net | | | 8,880 | | | | 4,300 | |
| Long term deferred taxes, net | | | — | | | | 2,383 | |
| Goodwill | | | 116,348 | | | | 74,874 | |
| Intangible assets, net | | | 16,801 | | | | 17,583 | |
| Deferred acquisition costs | | | — | | | | 1,702 | |
| Other assets, net | | | 682 | | | | 427 | |
| |
| Total assets | | $ | 290,222 | | | $ | 186,472 | |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities | | | | | | | | |
| Line of credit | | $ | — | | | $ | 7,303 | |
| Accounts payable | | | 27,475 | | | | 20,012 | |
| Claims payable | | | 25,447 | | | | 28,659 | |
| Payables to plan sponsors | | | 1,678 | | | | 2,217 | |
| Accrued expenses | | | 14,411 | | | | 12,598 | |
| |
| Total current liabilities | | | 69,011 | | | | 70,789 | |
| | | | | | | | | |
| Deferred taxes | | | 3,795 | | | | — | |
| Shareholders’ equity | | | | | | | | |
| Common stock, issued and outstanding shares — 36,950 and 22,307 shares outstanding at September 30, 2005 and December 31, 2004, respectively | | | 4 | | | | 2 | |
| Treasury stock, 2,198 shares at cost at September 30, 2005 and December 31, 2004, respectively | | | (8,002 | ) | | | (8,002 | ) |
| Additional paid-in capital | | | 233,994 | | | | 131,031 | |
| Accumulated deficit | | | (8,580 | ) | | | (7,348 | ) |
| |
| Total shareholders’ equity | | | 217,416 | | | | 115,683 | |
| |
| Total liabilities and shareholders’ equity | | $ | 290,222 | | | $ | 186,472 | |
| |
Schedule 3
BIOSCRIP, INC.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| | | | | | | | | |
| | | Nine Months Ended | |
| | | Sept. 30, | | | Sept. 30, | |
| | | 2005 | | | 2004 | |
| |
| | | | | | | | | |
| Operating activities | | | | | | | | |
| Net (loss) income | | $ | (1,232 | ) | | $ | 5,848 | |
| | | | | | | | | |
| Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | | | | | | | | |
| Depreciation | | | 2,447 | | | | 1,518 | |
| Amortization | | | 4,599 | | | | 2,225 | |
| Tradename write-off | | | 5,756 | | | | — | |
| Change in deferred tax | | | (2,548 | ) | | | 2,194 | |
| Non-cash stock compensation | | | 84 | | | | 69 | |
| Provision for losses on receivables | | | 3,492 | | | | 1,224 | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable, net | | | (8,752 | ) | | | (1,376 | ) |
| Inventory | | | (2,163 | ) | | | (712 | ) |
| Prepaid expenses and other current assets | | | 477 | | | | (120 | ) |
| Accounts payable | | | 2,387 | | | | (484 | ) |
| Claims payable | | | (3,212 | ) | | | 1,492 | |
| Payables to plan sponsors and others | | | (539 | ) | | | (8,724 | ) |
| Accrued expenses | | | (13,048 | ) | | | (2,260 | ) |
| |
| Net cash (used in) provided by operating activities | | | (12,252 | ) | | | 894 | |
| | | | | | | | | |
| Investing activities | | | | | | | | |
| Purchases of property and equipment, net of disposals | | | (3,256 | ) | | | (444 | ) |
| Cash acquired (used in) acquisition, net | | | 16,992 | | | | (14,256 | ) |
| Decrease (increase) in other assets | | | 1,577 | | | | (640 | ) |
| |
| Net cash provided by (used in) investing activities | | | 15,313 | | | | (15,340 | ) |
| | | | | | | | | |
| Financing activities | | | | | | | | |
| (Repayments) borrowings on line of credit | | | (7,303 | ) | | | 8,169 | |
| Principal payments on capital lease obligations | | | (35 | ) | | | (296 | ) |
| Proceeds from exercise of stock options | | | 1,320 | | | | 876 | |
| Principal payments on short term debt | | | — | | | | (467 | ) |
| |
| Net cash (used in) provided by financing activities | | | (6,018 | ) | | | 8,282 | |
| | | | | | | | | |
| Decrease in cash and cash equivalents | | | (2,957 | ) | | | (6,164 | ) |
| Cash and cash equivalents at beginning of year | | | 2,957 | | | | 9,428 | |
| |
| Cash and cash equivalents at end of period | | $ | — | | | $ | 3,264 | |
| |
Schedule 4
BIOSCRIP, INC.
Consolidated Adjusted Statements of Operations (a)
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | | | Sept. 30, | |
| | | 2005 (b) | | | 2004 | | | 2005 (b) | | | 2004 (c) | |
| |
| Revenue | | $ | 293,976 | | | $ | 304,123 | | | $ | 883,070 | | | $ | 906,302 | |
| Cost of revenue | | | 262,257 | | | | 271,782 | | | | 787,467 | | | | 807,990 | |
| |
| Gross profit | | | 31,719 | | | | 32,341 | | | | 95,603 | | | | 98,312 | |
% of Revenue | | | 10.8 | % | | | 10.6 | % | | | 10.8 | % | | | 10.8 | % |
| | | | | | | | | | | | | | | | | |
| Operating expenses | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 27,944 | | | | 25,960 | | | | 83,154 | | | | 77,704 | |
| Amortization of intangibles | | | 1,752 | | | | 817 | | | | 4,599 | | | | 2,225 | |
| Special charges | | | — | | | | — | | | | — | | | | — | |
| |
| Total operating expenses | | | 29,696 | | | | 26,777 | | | | 87,753 | | | | 79,929 | |
% of Revenue | | | 10.1 | % | | | 8.8 | % | | | 9.9 | % | | | 8.8 | % |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 2,023 | | | | 5,564 | | | | 7,850 | | | | 18,383 | |
% of Revenue | | | 0.7 | % | | | 1.8 | % | | | 0.9 | % | | | 2.0 | % |
| | | | | | | | | | | | | | | | | |
| Interest income (expense), net | | | (50 | ) | | | (160 | ) | | | (107 | ) | | | (456 | ) |
| Other income | | | — | | | | 251 | | | | — | | | | 326 | |
| |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 1,973 | | | | 5,655 | | | | 7,743 | | | | 18,253 | |
| Income tax expense | | | (710 | ) | | | (2,234 | ) | | | (2,761 | ) | | | (7,159 | ) |
| |
| Net income | | $ | 1,263 | | | $ | 3,421 | | | $ | 4,982 | | | $ | 11,094 | |
| |
% of Revenue | | | 0.4 | % | | | 1.1 | % | | | 0.6 | % | | | 1.2 | % |
| | | | | | | | | | | | | | | | | |
| Diluted net income per share | | $ | 0.03 | | | $ | 0.09 | | | $ | 0.13 | | | $ | 0.30 | |
| |
| | | | | | | | | | | | | | | | | |
| Diluted weighted-average shares | | | 37,449 | | | | 37,270 | | | | 37,333 | | | | 37,267 | |
| |
Supplemental presentation of financial measures: | | | | | | | | | | | | | | | | |
| Income from operations | | $ | 2,023 | | | $ | 5,564 | | | $ | 7,850 | | | $ | 18,383 | |
| EBITDA addbacks: | | | | | | | | | | | | | | | | |
| Amortization | | | 1,752 | | | | 817 | | | | 4,599 | | | | 2,225 | |
| Depreciation | | | 908 | | | | 1,057 | | | | 2,929 | | | | 3,232 | |
| | | |
| EBITDA | | $ | 4,683 | | | $ | 7,438 | | | $ | 15,378 | | | $ | 23,840 | |
| | | |
(Earnings before interest, taxes, depreciation and amort.)
| | |
| (a) | | These consolidated adjusted statements of income reflect operations as if the merger had been completed at the beginning of each quarter presented and excludes special charges. |
| |
| (b) | | Excludes $972 of special charges for the Sept. 2005 quarter and $10,028 September 2005 year to date. |
| |
| (c) | | Excludes $896 of special charges for the period September 2004 year to date. |
Schedule 5
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP Measures
For the Three Months Ended September 30, 2005
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | |
| | | As | | | Special | | | BioScrip | |
| | | Reported | | | Charges | | | As Adjusted | |
| |
| Revenue | | $ | 293,976 | | | $ | — | | | $ | 293,976 | |
| | | | | | | | | | | | | |
| Cost of revenue | | | 262,257 | | | | — | | | | 262,257 | |
| |
| Gross profit | | | 31,719 | | | | — | | | | 31,719 | |
% of Revenue | | | 10.8 | % | | | | | | | 10.8 | % |
| | | | | | | | | | | | | |
| Operating expenses | | | | | | | | | | | | |
| Selling, general and admin. expenses | | | 27,944 | | | | — | | | | 27,944 | |
| Amortization of intangibles | | | 1,752 | | | | — | | | | 1,752 | |
| Special charges | | | 972 | | | | (972 | ) | | | — | |
| |
| Total operating expenses | | | 30,668 | | | | (972 | ) | | | 29,696 | |
% of Revenue | | | 10.4 | % | | | | | | | 10.1 | % |
| | | | | | | | | | | | | |
| Income from operations | | | 1,051 | | | | 972 | | | | 2,023 | |
% of Revenue | | | 0.4 | % | | | | | | | 0.7 | % |
| | | | | | | | | | | | | |
| Interest income (expense), net | | | (50 | ) | | | — | | | | (50 | ) |
| Other income | | | — | | | | — | | | | — | |
| |
| | | | | | | | | | | | | |
| Income before income taxes | | | 1,001 | | | | 972 | | | | 1,973 | |
| Income tax benefit (expense) | | | (360 | ) | | | (350 | ) | | | (710 | ) |
| |
| Net income | | $ | 641 | | | $ | 622 | | | $ | 1,263 | |
| |
| | | | | | | | | | | | | |
| Diluted net income per share | | $ | 0.02 | | | | | | | $ | 0.03 | |
| |
| Diluted weighted-average shares | | | 37,449 | | | | | | | | 37,449 | |
| |
| | | | | | | | | | | | | |
Supplemental presentation of financial measures: | | | | | | | | | | | | |
| (Loss) Income from operations | | $ | 1,051 | | | $ | 972 | | | $ | 2,023 | |
| EBITDA addbacks: | | | | | | | | | | | | |
| Amortization | | | 1,752 | | | | — | | | | 1,752 | |
| Depreciation | | | 908 | | | | — | | | | 908 | |
| | | |
| EBITDA | | $ | 3,711 | | | $ | 972 | | | $ | 4,683 | |
| | | |
November 3, 2005
Page 10
Schedule 6
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP Measures
For the Three Months Ended September 30, 2004
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | MIM Corp. | | | Chronimed | | | Special | | | BioScrip | |
| | | As Reported | | | As Reported | | | Charges | | | As Adjusted | |
| |
| Revenue | | $ | 161,498 | | | $ | 142,625 | | | $ | — | | | $ | 304,123 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue | | | 144,764 | | | | 127,018 | | | | — | | | | 271,782 | |
| |
| Gross profit | | | 16,734 | | | | 15,607 | | | | — | | | | 32,341 | |
% of Revenue | | | 10.4 | % | | | 10.9 | % | | | | | | | 10.6 | % |
| | | | | | | | | | | | | | | | | |
Operating expenses
Selling, general and admin. expenses | | | 12,843 | | | | 13,117 | | | | — | | | | 25,960 | |
| Amortization of intangibles | | | 817 | | | | — | | | | — | | | | 817 | |
| Special charges | | | — | | | | 896 | | | | (896 | ) | | | — | |
| |
| Total operating expenses | | | 13,660 | | | | 14,013 | | | | (896 | ) | | | 26,777 | |
% of Revenue | | | 8.5 | % | | | 9.8 | % | | | | | | | 8.8 | % |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 3,074 | | | | 1,594 | | | | 896 | | | | 5,564 | |
% of Revenue | | | 1.9 | % | | | 1.1 | % | | | | | | | 1.8 | % |
| | | | | | | | | | | | | | | | | |
| Interest income (expense), net | | | (204 | ) | | | 44 | | | | — | | | | (160 | ) |
| Other income | | | — | | | | 251 | | | | — | | | | 251 | |
| |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 2,870 | | | | 1,889 | | | | 896 | | | | 5,655 | |
| Income tax expense | | | (1,148 | ) | | | (737 | ) | | | (349 | ) | | | (2,234 | ) |
| |
| Net income | | $ | 1,722 | | | $ | 1,152 | | | $ | 547 | | | $ | 3,421 | |
| |
| | | | | | | | | | | | | | | | | |
| Diluted net income per share | | $ | 0.08 | | | | | | | | | | | $ | 0.09 | |
| |
| Diluted weighted-average shares | | | 22,730 | | | | | | | | | | | | 37,270 | |
| |
| | | | | | | | | | | | | | | | | |
Supplemental presentation of financial measures: | | | | | | | | | | | | | | | | |
| Income from operations | | $ | 3,074 | | | $ | 1,594 | | | $ | 896 | | | $ | 5,564 | |
| EBITDA addbacks: | | | | | | | | | | | | | | | | |
| Amortization | | | 817 | | | | — | | | | — | | | | 817 | |
| Depreciation | | | 473 | | | | 584 | | | | — | | | | 1,057 | |
| | | |
| EBITDA | | $ | 4,364 | | | $ | 2,178 | | | $ | 896 | | | $ | 7,438 | |
| | | |
November 3, 2005
Page 11
Schedule 7
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP Measures
For the Nine Months Ended September 30, 2005
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | As | | | Chronimed | | | Special | | | BioScrip | |
| | | Reported | | | Pre-Merger | | | Charges | | | As Adjusted | |
| |
| Revenue | | $ | 768,991 | | | $ | 114,079 | | | $ | — | | | $ | 883,070 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue | | | 686,312 | | | | 101,155 | | | | — | | | | 787,467 | |
| |
| Gross profit | | | 82,679 | | | | 12,924 | | | | — | | | | 95,603 | |
% of Revenue | | | 10.8 | % | | | 11.3 | % | | | | | | | 10.8 | % |
| | | | | | | | | | | | | | | | | |
Operating expenses Selling, general and admin. expenses | | | 71,816 | | | | 11,338 | | | | — | | | | 83,154 | |
| Amortization of intangibles | | | 4,599 | | | | — | | | | — | | | | 4,599 | |
| Special charges | | | 7,991 | | | | 2,037 | | | | (10,028 | ) | | | — | |
| |
| Total operating expenses | | | 84,406 | | | | 13,375 | | | | (10,028 | ) | | | 87,753 | |
% of Revenue | | | 11.0 | % | | | 11.7 | % | | | | | | | 9.9 | % |
| | | | | | | | | | | | | | | | | |
| (Loss) income from operations | | | (1,727 | ) | | | (451 | ) | | | 10,028 | | | | 7,850 | |
% of Revenue | | | -0.2 | % | | | -0.4 | % | | | | | | | 0.9 | % |
| | | | | | | | | | | | | | | | | |
| Interest income (expense), net | | | (191 | ) | | | 84 | | | | — | | | | (107 | ) |
| Other income | | | — | | | | — | | | | — | | | | — | |
| |
| | | | | | | | | | | | | | | | | |
| (Loss) income before income taxes | | | (1,918 | ) | | | (367 | ) | | | 10,028 | | | | 7,743 | |
| Income tax benefit (expense) | | | 686 | | | | 143 | | | | (3,590 | ) | | | (2,761 | ) |
| |
| Net (loss) income | | $ | (1,232 | ) | | $ | (224 | ) | | $ | 6,438 | | | $ | 4,982 | |
| |
| | | | | | | | | | | | | | | | | |
| Diluted net (loss) income per share | | $ | (0.04 | ) | | | | | | | | | | $ | 0.13 | |
| |
| Diluted weighted-average shares | | | 33,157 | | | | | | | | | | | | 37,333 | |
| |
| | | | | | | | | | | | | | | | | |
Supplemental presentation of financial measures: | | | | | | | | | | | | | | | | |
| (Loss) Income from operations | | $ | (1,727 | ) | | $ | (451 | ) | | $ | 10,028 | | | $ | 7,850 | |
| EBITDA addbacks: | | | | | | | | | | | | | | | | |
| Amortization | | | 4,599 | | | | — | | | | — | | | | 4,599 | |
| Depreciation | | | 2,447 | | | | 482 | | | | — | | | | 2,929 | |
| | | |
| EBITDA | | $ | 5,319 | | | $ | 31 | | | $ | 10,028 | | | $ | 15,378 | |
| | | |
November 3, 2005
Page 11
Schedule 8
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP Measures
For the Nine Months Ended September 30, 2004
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | MIM Corp. | | | Chronimed | | | Special | | | BioScrip | |
| | | As Reported | | | As Reported | | | Charges | | | As Adjusted | |
| |
| Revenue | | $ | 463,676 | | | $ | 442,626 | | | $ | — | | | $ | 906,302 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue | | | 413,128 | | | | 394,862 | | | | — | | | | 807,990 | |
| |
| Gross profit | | | 50,548 | | | | 47,764 | | | | — | | | | 98,312 | |
% of Revenue | | | 10.9 | % | | | 10.8 | % | | | | | | | 10.8 | % |
| | | | | | | | | | | | | | | | | |
Operating expenses Selling, general and admin. expenses | | | 37,944 | | | | 39,760 | | | | — | | | | 77,704 | |
| Amortization of intangibles | | | 2,225 | | | | — | | | | — | | | | 2,225 | |
| Special charges | | | — | | | | 896 | | | | (896 | ) | | | — | |
| |
| Total operating expenses | | | 40,169 | | | | 40,656 | | | | (896 | ) | | | 79,929 | |
% of Revenue | | | 8.7 | % | | | 9.2 | % | | | | | | | 8.8 | % |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 10,379 | | | | 7,108 | | | | 896 | | | | 18,383 | |
% of Revenue | | | 2.2 | % | | | 1.6 | % | | | | | | | 2.0 | % |
| | | | | | | | | | | | | | | | | |
| Interest income (expense), net | | | (632 | ) | | | 176 | | | | — | | | | (456 | ) |
| Other income | | | — | | | | 326 | | | | — | | | | 326 | |
| |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 9,747 | | | | 7,610 | | | | 896 | | | | 18,253 | |
| Income tax expense | | | (3,899 | ) | | | (2,911 | ) | | | (349 | ) | | | (7,159 | ) |
| |
| Net income | | $ | 5,848 | | | $ | 4,699 | | | $ | 547 | | | $ | 11,094 | |
| |
| | | | | | | | | | | | | | | | | |
| Diluted net income per share | | $ | 0.26 | | | | | | | | | | | $ | 0.30 | |
| |
| Diluted weighted-average shares | | | 22,734 | | | | | | | | | | | | 37,267 | |
| |
| | | | | | | | | | | | | | | | | |
Supplemental presentation of financial measures: | | | | | | | | | | | | | | | | |
| Income from operations | | $ | 10,379 | | | $ | 7,108 | | | $ | 896 | | | $ | 18,383 | |
| EBITDA addbacks: | | | | | | | | | | | | | | | | |
| Amortization | | | 2,225 | | | | — | | | | — | | | | 2,225 | |
| Depreciation | | | 1,518 | | | | 1,714 | | | | — | | | | 3,232 | |
| | | |
| EBITDA | | $ | 14,122 | | | $ | 8,822 | | | $ | 896 | | | $ | 23,840 | |
| | | |
