NEWS RELEASE
Contact:
Stanley G. Rosenbaum
Executive Vice President and Chief Financial Officer
Tel: 952-979-3768
srosenbaum@bioscrip.com
Lisa M. Wilson
In-Site Communications
Tel: (917) 543-9932
lwilson@insitecony.com
BIOSCRIP, INC. REPORTS THIRD QUARTER EARNINGS OF $0.14 PER SHARE
ELMSFORD, N.Y.--(BUSINESS WIRE)—October 30, 2009—BioScrip, Inc. (Nasdaq: BIOS) today announced third quarter net income of $5.7 million, or $0.14 per diluted share, on revenues of $333.5 million. These results compare to net income of $1.4 million, or $0.04 per share, on revenues of $359.4 million for the third quarter of 2008. Third quarter 2009 EBITDAO was $8.9 million compared to $5.3 million for the same period a year ago.
Richard H. Friedman, BioScrip’s Chairman and Chief Executive Officer, stated, “Our results reflect the steady progress of our strategy to provide a full and comprehensive continuum of care, expand our clinical management reach and local market presence while delivering improved operating margins. We continue to upgrade our talent base with key hires to support the growth of our business.”
Results of Operations
Revenue for the third quarter of 2009 totaled $333.5 million, compared to $359.4 million for the same period a year ago. Revenue declines were expected due to the previously announced elimination of the Medicare Competitive Acquisition Program (“CAP”) effective December 31, 2008 and the termination of the United Health Group (“UHG”) organ transplant and HIV/AIDS contracts, partially offset by increased sales of higher margin infusion therapies and other specialty sales. Excluding the effects of these contracts, 2009 third quarter revenues were 7.9% higher than the 2008 comparable period.
Gross profit for the third quarter of 2009 was $41.5 million, or 12.4% compared to $36.1 million, or 10% for the third quarter of 2008. The increase was primarily the result of improved product mix due to our continued focus on higher margin therapies as well as improved supply chain programs.
Third quarter 2009 operating profit was $6.7 million, or 2.0% compared to $2.8 million, or 0.8% for the third quarter of 2008. The increase in operating income was a result of the improved product and therapy mix discussed above, which was partially offset by bad debt expense returning to normalized levels.
Revenue for the nine months ended September 30, 2009 totaled $988.0 million compared to $1,035.3 million for the comparable period a year ago. Excluding the elimination of CAP and UHG, the year-to-date 2009 revenue grew 7.4% over the comparable period in 2008.
Gross profit for the nine months ended September 30, 2009 was $115.9 million, or 11.7% compared to $104.2 million, or 10.1% for the same period in 2008. The increase in gross margin for the year was the result of improved product and therapy mix, the elimination of lower margin business and improved supply chain programs.
Operating profit for the nine months ended September 30, 2009 was $16.1 million, or 1.6% compared to $6.4 million, or 0.6% for the comparable period of 2008. Net income for the nine months ended 2009 was $13.4 million, or $0.34 per diluted share, compared to $2.6 million, or $0.07 per diluted share, for the same period one year ago.
The Company also announced that Steven Schelhammer has resigned as a member of the company's Board of Directors in order to devote his full-time attention to his position as Chief Executive Officer of Phytel, Inc. “On behalf of the entire Board of Directors, we thank Steve for his important contributions to BioScrip,” stated Friedman.
Conference Call
BioScrip will host a conference call to discuss its third quarter 2009 financial results on Friday, October 30, at 8:30 a.m. Eastern Time. Interested parties may participate in the conference call by dialing 800-920-2986 (US), or 212-231-2900 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 12:00 p.m. Eastern Time on Friday, October 30, through 12:00 p.m. Eastern Time on Friday, November 13, by dialing 800-633-8284 (US), or 402-977-9140 (International), and entering reservation number 21440281. An audio web cast and archive of the conference call will also be available under the investor relations section of the BioScrip website at www.bioscrip.com.
About BioScrip, Inc.
BioScrip, Inc. (www.bioscrip.com) (Nasdaq: BIOS) is a specialty pharmaceutical healthcare organization that partners with patients, physicians, healthcare payers and pharmaceutical manufacturers to provide access to medications and management solutions to optimize outcomes for chronic and other complex health care conditions.
Forward Looking Statements-Safe Harbor
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, 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.
Earnings before interest, taxes, depreciation, amortization, and option expense ("EBITDAO") is a non-GAAP financial measure as defined under U.S. Securities and Exchange Commission Regulation G. As required by Regulation G, BioScrip has provided on Schedule 3 a reconciliation of this measure to the most comparable GAAP financial measure. The non-GAAP measure presented provides important insight into the ongoing operations and a meaningful benchmark to evidence the Company's continuing profitability trend.
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TABLES TO FOLLOW
| Schedule 1 | |
| BIOSCRIP, INC | |
| CONSOLIDATED BALANCE SHEETS | |
| (in thousands, except for share amounts) | |
| | September 30, | | December 31, | |
| | 2009 | | 2008 | |
| ASSETS | (unaudited) | | | |
| Current assets | | | | |
| Cash and cash equivalents | $ | - | | $ | - | |
| Receivables, less allowance for doubtful accounts of $9,828 and $11,629 | | | | | | |
| at September 30, 2009 and December 31, 2008, respectively | | 147,326 | | | 158,649 | |
| Inventory | | 47,833 | | | 45,227 | |
| Prepaid expenses and other current assets | | 3,866 | | | 2,766 | |
| Total current assets | | 199,025 | | | 206,642 | |
| Property and equipment, net | | 15,674 | | | 14,748 | |
| Other assets | | 983 | | | 1,069 | |
| Goodwill | | 24,498 | | | 24,498 | |
| Total assets | $ | 240,180 | | $ | 246,957 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
| Current liabilities | | | | | | |
| Line of credit | $ | 39,584 | | $ | 50,411 | |
| Accounts payable | | 62,909 | | | 76,936 | |
| Claims payable | | 4,228 | | | 5,230 | |
| Amounts due to plan sponsors | | 5,951 | | | 5,646 | |
| Accrued expenses and other current liabilities | | 10,200 | | | 9,575 | |
| Total current liabilities | | 122,872 | | | 147,798 | |
| Deferred taxes | | 1,095 | | | 533 | |
| Income taxes payable | | 3,512 | | | 3,089 | |
| Total liabilities | | 127,479 | | | 151,420 | |
| Stockholders' equity | | | | | | |
| Common stock, $.0001 par value; 75,000,000 shares authorized; shares issued: | | | | | | |
| 42,349,728, and 41,622,629, respectively; shares outstanding; 39,272,399 and | | | | | | |
| 38,691,356, respectively | | 4 | | | 4 | |
| Treasury stock, shares at cost: 2,653,007 and 2,624,186, respectively | | (10,366 | ) | | (10,288 | ) |
| Additional paid-in capital | | 252,274 | | | 248,441 | |
| Accumulated deficit | | (129,211 | ) | | (142,620 | ) |
| Total stockholders' equity | | 112,701 | | | 95,537 | |
| Total liabilities and stockholders' equity | $ | 240,180 | | $ | 246,957 | |
| Schedule 2 | |
| BIOSCRIP, INC | |
| CONSOLIDATED STATEMENTS OF OPERATIONS (1) | |
| (in thousands, except per share amounts) | |
| (unaudited) | |
| | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | |
| | | September 30, | | September 30, | |
| | | 2009 | | | 2008 | | 2009 | | 2008 | |
| Revenue | | $ | 333,476 | | | $ | 359,427 | | $ | 987,974 | | $ | 1,035,338 | |
| Cost of revenue | | | 291,980 | | | | 323,346 | | | 872,100 | | | 931,159 | |
| Gross profit | | | 41,496 | | | | 36,081 | | | 115,874 | | | 104,179 | |
| % of Revenue | | | 12.4 | % | | | 10.0 | % | | 11.7 | % | | 10.1 | % |
| Operating expenses | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 32,402 | | | | 31,859 | | | 94,335 | | | 95,031 | |
| Bad debt expense | | | 2,433 | | | | 1,413 | | | 5,410 | | | 2,786 | |
| Total operating expense | | | 34,835 | | | | 33,272 | | | 99,745 | | | 97,817 | |
| % of Revenue | | | 10.4 | % | | | 9.3 | % | | 10.1 | % | | 9.4 | % |
| | | | | | | | | | | | | | | |
| Income from operations | | | 6,661 | | | | 2,809 | | | 16,129 | | | 6,362 | |
| Interest expense, net | | | 447 | | | | 669 | | | 1,471 | | | 1,931 | |
| Income before income taxes | | | 6,214 | | | | 2,140 | | | 14,658 | | | 4,431 | |
| Tax provision | | | 467 | | | | 730 | | | 1,249 | | | 1,879 | |
| Net income | | $ | 5,747 | | | $ | 1,410 | | $ | 13,409 | | $ | 2,552 | |
| | | | | | | | | | | | | | | |
| Basic weighted average shares | | | 38,961 | | | | 38,403 | | | 38,807 | | | 38,359 | |
| Diluted weighted average shares | | | 40,184 | | | | 38,934 | | | 39,345 | | | 39,187 | |
| | | | | | | | | | | | | | | |
| Basic net income per share | | $ | 0.15 | | | $ | 0.04 | | $ | 0.35 | | $ | 0.07 | |
| Diluted net income per share | | $ | 0.14 | | | $ | 0.04 | | $ | 0.34 | | $ | 0.07 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| (1) Certain amounts have been relassified to conform to the current presentation. Such classifications have had no impact on income from operations or net income. | | | | |
| Schedule 3 | |
| BIOSCRIP, INC | |
| | | | | | | | | | |
| Reconciliation between GAAP and Non-GAAP Measures | |
| (in thousands, except per share amounts) | |
| (unaudited) | |
| | | | | | | | | | |
| | | Three Months | | Nine Months | |
| | | September 30, | | September 30, | |
| | | 2009 | | 2008 | | 2009 | | 2008 | |
| Net Income | | $ | 5,747 | | $ | 1,410 | | $ | 13,409 | | $ | 2,552 | |
| Addback items: | | | | | | | | | | | | | |
| Depreciation and Amortization | | | 1,356 | | | 1,620 | | | 3,596 | | | 4,685 | |
| Net interest | | | 447 | | | 669 | | | 1,471 | | | 1,931 | |
| Taxes | | | 467 | | | 730 | | | 1,249 | | | 1,879 | |
| Stock-based compensation expense | | | 897 | | | 864 | | | 2,385 | | | 2,859 | |
| Earnings before interest, taxes, depreciation, amortization and share-based compensation expense (EBITDAO) | | $ | 8,914 | | $ | 5,293 | | $ | 22,110 | | $ | 13,906 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Net Income | | $ | 5,747 | | $ | 1,410 | | $ | 13,409 | | $ | 2,552 | |
| Add back items: | | | | | | | | | | | | | |
| OIG Settlement | | | - | | | 795 | | | - | | | 795 | |
| Pro forma Net Income | | $ | 5,747 | | $ | 2,205 | | $ | 13,409 | | $ | 3,347 | |
| | | | | | | | | | | | | | |
| Basic weighted average shares | | | 38,961 | | | 38,403 | | | 38,807 | | | 38,359 | |
| Diluted weighted average shares | | | 40,184 | | | 38,934 | | | 39,345 | | | 39,187 | |
| | | | | | | | | | | | | | |
| Basic pro forma net income per share | | $ | 0.15 | | $ | 0.06 | | $ | 0.35 | | $ | 0.09 | |
| Diluted pro forma net income per share | | $ | 0.14 | | $ | 0.06 | | $ | 0.34 | | $ | 0.09 | |
