Category: Healthcare

BioScrip Reports Fourth Quarter and Full-Year 2016 Financial Results

DENVER, March 03, 2017 -- BioScrip, Inc. (NASDAQ:BIOS) (“BioScrip” or the “Company”) today announced its fourth quarter and full-year 2016 financial results. For the fourth quarter, the Company reported revenue from continuing operations of $240.1 million, net loss from continuing operations of ($5.2) million and diluted EPS of ($0.06) loss per share.  For the full-year 2016, the Company reported revenue from continuing operations of $935.6 million, net loss from continuing operations of ($34.4) million and diluted EPS of ($0.46) loss per share.
 
Fourth Quarter Highlights
Net revenue for the fourth quarter 2016 was $240.1 million, a decrease of $3.6 million or 1.5% year over year, reflecting the ongoing favorable shift in revenue mix to a greater percentage of core revenue and less lower-margin non-core revenue;
Core revenue increased $21.9 million or 15.1% year over year to $166.8 million, representing core mix of 70%, up from 60% core mix in the fourth quarter of 2015;
 
We are on track to achieve the full $17.0 million in Home Solutions synergies, and we expect to achieve an additional $23.0 to $25.0 million in cost reductions by the end of 2017. These additional savings include workforce optimization and reorganization, procurement and formulary management savings, improved asset utilization, enhanced nursing productivity and reduction of delivery costs;
 
Consolidated Loss from continuing operations, net of income taxes was $(5.2) million, an improvement of $11.8 million compared to the prior year fourth quarter consolidated loss from continuing operations, net of income taxes of $(17.0) million. The year over year reduction in loss was the result of improved operating results combined with lower restructuring costs;
 
Consolidated Adjusted EBITDA was $9.5 million for the fourth quarter 2016, as compared to the $9.0 million consolidated Adjusted EBITDA in the prior year fourth quarter.  The year over year increase in consolidated Adjusted EBITDA was the result of improved core mix, higher gross margins, and expense leverage in 2016.
“I am extremely pleased with the great results the BioScrip team delivered during the quarter,” said Daniel E. Greenleaf, President and Chief Executive Officer.  “Our focus on driving profitable growth, improving operating processes and realizing operating cost reductions and synergies generated both revenue and Adjusted EBITDA results for the quarter ahead of our prior expectations.  We are in the early stages of our 18 to 24 month turnaround initiative, and through ongoing work the BioScrip team continues to uncover opportunities to drive transformational change and unlock value throughout the organization.  BioScrip remains on pace to realize at least $17.0 million of cumulative Home Solutions cost synergies by the end of 2017 and we expect an incremental $23.0 million to $25.0 million in cost structure improvements during the year, a portion of which partially offsets the negative impact of the Cures Act legislation.”
 
Mr. Greenleaf added, “During the quarter our leadership team launched the CORE initiative, a program focused on improving Core growth, Operational efficiencies, Revenue collections and Employee effectiveness.  Continued execution of the CORE initiative positions BioScrip for the sustainable growth of our higher-margin core business and ongoing improvement of our operating processes, driving our future financial performance and creating value for our shareholders.”
 
Mr. Greenleaf continued, “Additionally, we are working diligently, both internally and externally, to mitigate the unfavorable impact of the Cures Act legislation on our business and on the critically ill patients relying on home infusion therapies.  These efforts include actively working with Congress and the Centers for Medicare and Medicaid Services (CMS) to propose an amendment to the legislation to account for the infusion benefit as well as the formation of Keep My Infusion Care at Home, a newly established coalition of patients, family members, caregivers, healthcare providers and related industry organizations.  For further information, please visit http://www.keepmyinfusioncareathome.org.  We have made significant progress internally to offset the negative financial impact of the Cures Act and through the National Home Infusion Association (NHIA) and lobbying efforts, we remain in ongoing discussions with the U.S. Congress on the benefits of home infusion therapy and the impact of the Cures Act legislation.”
 
The Company achieved $2.6 million in Home Solutions cost synergies in the fourth quarter of 2016.  In total, between fourth quarter 2016 realized synergies of $2.6 million and 2017 expected incremental synergies of $14.4 million, the Company believes it is positioned to achieve the full $17.0 million in expected Home Solutions cost synergies.
 
Results of Operations
 
Fourth Quarter 2016 versus Prior Year Fourth Quarter 2015
 
Revenue from continuing operations for the fourth quarter of 2016 was $240.1 million, compared to $243.7 million in the fourth quarter of 2015, a decrease of $3.6 million or 1.5%. This revenue decrease resulted from of the Company’s previously announced shift in its revenue mix to a greater percentage of core revenue and less lower-margin non-core revenue.
 
Consolidated gross profit for the fourth quarter of 2016 was $74.7 million, or 31.1% of revenue, up 410 basis points as a percentage of revenue, compared to the prior year fourth quarter 2015 gross profit of $65.9 million, or 27.0% of revenue.  The improvement in gross profit percentage was the result of the improved revenue mix year over year.
 
Consolidated Loss from continuing operations, net of income taxes for the fourth quarter of 2016 was ($5.2) million, representing an improvement of $11.8 million versus the same period prior year Consolidated Loss from continuing operations, net of income taxes of ($17.0) million.  The year over year reduction in loss was the result of improved operating results combined with lower restructuring costs.
 
Consolidated Adjusted EBITDA from continuing operations for the fourth quarter of 2016 was $9.5 million, representing an increase of $0.5 million versus the same period prior year Consolidated Adjusted EBITDA of $9.0 million.  The increase in Consolidated Adjusted EBITDA was the result of improved operating results in 2016.
 
Full-Year 2016 versus Prior Full-Year 2015
 
Revenue from continuing operations for the full year 2016 was $935.6 million, compared to $982.2 million in the full year 2015, a decrease of $46.6 million or 4.7%. This revenue decrease was the result of the Company’s previously announced shift in its revenue mix to a greater percentage of core revenue and less lower-margin non-core revenue.
 
Consolidated gross profit for the full year 2016 was $265.6 million, or 28.4% of revenue, up 180 basis points as a percentage of revenue, compared to the prior full year 2015 gross profit of $260.9 million, or 26.6% of revenue.  The improvement in gross profit percentage was the result of the improved revenue mix year over year.
 
Consolidated Loss from continuing operations, net of income taxes for the full year 2016 was ($34.4) million, representing an improvement of $269.0 million versus the prior full year 2015 Consolidated Loss from continuing operations, net of income taxes of ($303.4) million.  The year over year change was the result of improved operating results in 2016 combined with the prior year 2015 non-cash goodwill impairment charge, which did not recur in 2016.
 
Consolidated Adjusted EBITDA from continuing operations for the full year 2016 was $30.9 million, representing an increase of $15.0 million as compared to the prior full year 2015 Consolidated Adjusted EBITDA of $15.9 million.  The increase in Consolidated Adjusted EBITDA resulted from improved operational performance in 2016.
 
2017 Guidance
 
The Company is providing guidance for full-year 2017.  This full-year 2017 guidance incorporates the estimated negative impact of the Cures Act legislation on the Company.  The Cures Act legislation results in a significant reduction in Medicare reimbursement rates on certain drugs effective January 1, 2017 and does not reimburse any services payments for the administration of these drugs to patients via home infusion pharmacies.   For the full-year 2017, we are guiding to revenues in the range of $920.0 million to $950.0 million and adjusted EBITDA in the range of $45.0 million to $55.0 million.
 
Liquidity and Capital Resources
 
As of yesterday, March 2, 2017, the Company had $21.8 million of liquidity in the form of cash held in bank.  Under the terms of the Company’s Amended Credit Agreement, the Company no longer has access to a revolving credit facility and therefore cash held in bank represents the Company’s liquidity position.  As of December 31, 2016 the Company was in full compliance with its bank covenants under the terms of the Amended Credit Agreement.  The Company’s net Days Sales Outstanding (“DSO”) at December 31, 2016, was 43 days.
 
Conference Call and Presentation
 
BioScrip will host a conference call and live webcast, March 3, 2017, at 9:00 a.m. Eastern Time, to discuss its fourth quarter and full year 2016 financial results. Interested parties may participate by dialing 888-372-9592 (US) or by accessing a link on the Company's website at www.bioscrip.com. 
 
A replay of the conference call will be available for two weeks after the call's completion by dialing 855-859-2056 (US) and entering conference call ID number 5266355.  An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the Company's website.
 
About BioScrip, Inc.
 
BioScrip, Inc. is a leading national provider of infusion and home care management solutions. BioScrip partners with physicians, hospital systems, skilled nursing facilities, healthcare payors, and pharmaceutical manufacturers to provide patients access to post-acute care services. BioScrip operates with a commitment to bring customer-focused pharmacy and related healthcare infusion therapy services into the home or alternate-site setting. By collaborating with the full spectrum of healthcare professionals and the patient, BioScrip provides cost-effective care that is driven by clinical excellence, customer service, and values that promote positive outcomes and an enhanced quality of life for those it serves.
 
Forward-Looking Statements – Safe Harbor 
 
This press release includes statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding 2017 guidance, projections of certain measures of the Company's results of operations, projections of future levels of certain charges and expenses, expectations of Home Solutions cost synergies and incremental cost structure improvements and other statements regarding the Company's financial improvement plan and strategy. You can identify these statements by the fact that they do not relate strictly to historical or current facts. In some cases, forward-looking statements can be identified by words such as "may," "should," "could," "anticipate," "estimate," "expect," "project," "outlook," "aim," "intend," "plan," "believe," "predict," "potential," "continue" or comparable terms. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Important factors that could cause actual results to differ materially from those in the forward-looking statement include but are not limited to risks associated with: the Company’s ability to successfully integrate the HS Infusion Holdings, Inc. business into its existing businesses; 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 Company’s ability to comply with the covenants in its debt agreements or obtain amendments to such covenants; 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 Securities and Exchange Commission. The Company does not undertake any duty to update these forward-looking statements after the date hereof, even though the Company's situation may change in the future. All of the forward-looking statements herein are qualified by these cautionary statements.
 
Note Regarding Use of Non-GAAP Financial Measures
 
In addition to reporting financial information in accordance with generally accepted accounting principles (GAAP), the Company is also reporting Adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of the Company’s liquidity. In addition, the Company's definition of Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies. Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, impairment of goodwill, stock-based compensation expense, and restructuring, integration and other expenses. As part of restructuring, the Company may incur significant charges such as the write down of certain long−lived assets, temporary redundant expenses, retraining expenses, potential cash bonus payments and potential accelerated payments or terminated costs for certain of its contractual obligations. Management believes that Adjusted EBITDA provides useful supplemental information regarding the performance of BioScrip’s business operations and facilitates comparisons to the Company’s historical operating results. For a full reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, please see the attachment to this earnings release. 
 

TABLES TO FOLLOW

Schedule 1  
BIOSCRIP, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(in thousands, except for share amounts)  
         
  December 31, 2016   December 31, 2015  
         
ASSETS        
Current assets        
Cash and cash equivalents $   9,569     $   15,577    
Receivables, less allowance for doubtful accounts of $44,730 and $59,689        
at December 31, 2016 and 2015, respectively     111,811         97,353    
Inventory     36,165         42,983    
Prepaid expenses and other current assets     18,507         27,772    
Total current assets     176,052         183,685    
Property and equipment, net     32,535         31,939    
Goodwill     365,947         308,729    
Intangible assets, net     31,043         5,128    
Other non-current assets     2,163         1,161    
Total assets $    607,740     $    530,642    
LIABILITIES AND STOCKHOLDERS' DEFICIT        
Current liabilities        
Current portion of long-term debt $   18,521     $   24,380    
Accounts payable     59,134         65,077    
Amounts due to plan sponsors     3,799         3,491    
Accrued interest     6,705         6,898    
Accrued expenses and other current liabilities     42,191         52,918    
Total current liabilities     130,350         152,764    
Long-term debt, net of current portion     433,413         393,741    
Deferred taxes     2,281         236    
Other non-current liabilities     1,257         1,861    
Total liabilities     567,301         548,602    
         
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized;         
21,645 and 635,822 shares issued and outstanding; and, $2,603 and $69,702        
liquidation preference as of December 31, 2016 and December 31, 2015, respectively     2,462         62,918    
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized;         
614,177 shares issued and outstanding; and $75,491 liquidation preference as of        
December 31, 2016     69,540         -    
Stockholders' (deficit) equity        
Preferred stock, $.0001 par value; 5,000,000 and 4,175,000 shares authorized; no shares        
issued and outstanding as of December 31, 2016 and December 31, 2015, respectively     -         -    
Common stock, $.0001 par value; 250,000,000 and 125,000,000 shares authorized as of         
December 31, 2016 and December 31, 2015, respectively; 117,682,543 and 71,421,664        
shares issued and 117,682,543 and 68,767,613 shares outstanding as of         
December 31, 2016 and December 31, 2015, respectively     12         8    
Treasury stock, no shares outstanding as of December 31, 2016 and 2,654,051 shares         
outstanding, at cost, as of December 31, 2015     -         (10,737 )  
Additional paid-in capital     611,844         531,764    
Accumulated deficit     (643,419 )       (601,913 )  
Total stockholders' deficit     (31,563 )       (80,878 )  
Total liabilities and stockholders' deficit $    607,740     $    530,642    

 

Schedule 2
BIOSCRIP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS 
(in thousands, except per share amounts)
           
    Years Ended December 31, 
        2016       2015  
           
Net revenue     $    935,589     $    982,223  
Cost of revenue (excluding depreciation expense)         669,958         721,308  
Gross profit         265,631         260,915  
  % of revenues       28.4 %     26.6 %
           
Other operating expenses         170,718         165,998  
Bad debt expense         26,799         41,042  
General and administrative expenses         39,225         42,524  
Change in fair value of equity linked liabilities         (10,450 )       -   
Impairment of goodwill         -          251,850  
Restructuring, acquisition, integration, and other expenses, net         15,859         24,405  
Depreciation and amortization expense         21,551         22,743  
Interest expense, net         38,235         37,313  
(Gain) on dispositions         (3,954 )       -   
Loss from continuing operations,  before income taxes         (32,352 )       (324,960 )
Income tax expense (benefit)         2,015         (21,532 )
Loss from continuing operations, net of income taxes         (34,367 )       (303,428 )
Income (loss) from discontinued operations, net of income taxes         (7,139 )       3,721  
Net loss     $    (41,506 )   $    (299,707 )
Accrued dividends on preferred stock         (8,392 )       (6,120 )
Deemed dividend on preferred stock         (692 )       (3,690 )
Loss attributable to common stockholders     $    (50,590 )   $    (309,517 )
           
 Denominator - Basic and Diluted:           
 Weighted average number of common shares outstanding          93,740         68,710  
           
Loss from continuing operations, basic and diluted     $   (0.46 )   $   (4.56 )
Income from discontinued operations, basic and diluted         (0.08 )       0.05  
Loss per common share, basic and diluted     $   (0.54 )   $   (4.51 )
           

 

Schedule 3  
BIOSCRIP, INC. AND SUBSIDIARIES  
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share amounts)  
               
    Three Months Ended   Twelve Months Ended  
    3/31/2016   6/30/2016   9/30/2016   12/31/2016   12/31/2016  
                       
Net revenue   $    238,462     $    232,462     $    224,542     $    240,123     $    935,589    
Cost of revenue (excluding depreciation expense)       174,230         168,298         161,957         165,473         669,958    
Gross profit       64,232         64,164         62,585         74,650         265,631    
  % of revenues     26.9 %     27.6 %     27.9 %     31.1 %     28.4 %  
                       
Other operating expenses       39,658         40,619         42,729         47,712         170,718    
Bad debt expense       7,592         4,279         7,727         7,201         26,799    
General and administrative expenses       11,051         9,414         9,948         8,812         39,225    
Change in fair value of equity linked liabilities       -          -          -          (10,450 )       (10,450 )  
Restructuring, acquisition, integration, and other expenses, net       2,667         4,291         2,368         6,533         15,859    
Depreciation and amortization expense       4,538         4,252         4,166         8,595         21,551    
Interest expense, net       9,412         9,469         9,331         10,023         38,235    
(Gain) on disposition of property and equipment       (939 )       -          (3,015 )       -          (3,954 )  
Loss from continuing operations,  before income taxes       (9,747 )       (8,160 )       (10,669 )       (3,776 )       (32,352 )  
Income tax expense       23         149         421         1,422         2,015    
Loss from continuing operations, net of income taxes       (9,770 )       (8,309 )       (11,090 )       (5,198 )       (34,367 )  
Income (loss) from discontinued operations, net of income taxes       233         75         (174 )       (7,273 )       (7,139 )  
Net loss   $    (9,537 )   $    (8,234 )   $    (11,264 )   $    (12,471 )   $    (41,506 )  
Accrued dividends on preferred stock       (1,998 )       (2,056 )       (2,138 )       (2,200 )       (8,392 )  
Deemed dividends on preferred stock       (172 )       (173 )       (173 )       (174 )       (692 )  
Loss attributable to common stockholders   $    (11,707 )   $    (10,463 )   $    (13,575 )   $    (14,845 )   $    (50,590 )  
                       
Loss per common share:                      
 Denominator - Basic and Diluted:                       
 Weighted average number of common shares outstanding        68,771         73,186         114,826         117,683         93,740    
                       
Loss from continuing operations, basic and diluted   $   (0.17 )   $   (0.14 )   $   (0.12 )   $   (0.06 )   $   (0.46 )  
Income from discontinued operations, basic and diluted       -          -          -          (0.06 )       (0.08 )  
Net loss per common share, basic and diluted   $   (0.17 )   $   (0.14 )   $   (0.12 )   $   (0.12 )   $   (0.54 )  

 

Schedule 4
BIOSCRIP, INC. AND SUBSIDIARIES
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
             
    Three Months Ended   Twelve  Months Ended
    3/31/2015   6/30/2015   9/30/2015   12/31/2015   12/31/2015
                     
Net revenue   $    244,357     $    246,897     $    247,224     $    243,745     $    982,223  
Cost of revenue (excluding depreciation expense)       179,402         182,079         181,991         177,836         721,308  
Gross profit       64,955         64,818         65,233         65,909         260,915  
  % of revenues     26.6 %     26.3 %     26.4 %     27.0 %     26.6 %
                     
Other operating expenses       41,616         43,313         41,198         39,871         165,998  
Bad debt expense       8,346         15,165         9,321         8,210         41,042  
General and administrative expenses       11,699         11,866         9,308         9,651         42,524  
Impairment of goodwill       -          238,000         13,850         -          251,850  
Restructuring, acquisition, integration, and other expenses, net       3,704         5,969         5,369         9,363         24,405  
Depreciation and amortization expense       5,794         6,247         5,471         5,231         22,743  
Interest expense, net       9,163         9,080         9,507         9,563         37,313  
Loss from continuing operations,  before income taxes       (15,367 )       (264,822 )       (28,791 )       (15,980 )       (324,960 )
Income tax expense (benefit)       1,928         (19,921 )       (4,551 )       1,012         (21,532 )
Loss from continuing operations, net of income taxes       (17,295 )       (244,901 )       (24,240 )       (16,992 )       (303,428 )
(Loss) income from discontinued operations, net of income taxes       (2,379 )       94         7,457         (1,451 )       3,721  
Net loss   $    (19,674 )   $    (244,807 )   $    (16,783 )   $    (18,443 )   $    (299,707 )
Accrued dividends on preferred stock       (453 )       (1,805 )       (1,899 )       (1,963 )       (6,120 )
Deemed dividends on preferred stock       (1,164 )       (2,186 )       (169 )       (171 )       (3,690 )
Loss attributable to common stockholders   $    (21,291 )   $    (248,798 )   $    (18,851 )   $    (20,577 )   $    (309,517 )
                     
Loss per common share:                    
 Denominator - Basic and Diluted:                     
 Weighted average number of common shares outstanding        68,637         68,698         68,742         68,760         68,710  
                     
Loss from continuing operations, basic and diluted   $   (0.28 )   $   (3.62 )   $   (0.38 )   $   (0.28 )   $   (4.56 )
Income from discontinued operations, basic and diluted       (0.03 )       -          0.11         (0.02 )       0.05  
Net loss per common share, basic and diluted   $   (0.31 )   $   (3.62 )   $   (0.27 )   $   (0.30 )   $   (4.51 )

 

Schedule 5
BIOSCRIP, INC. AND SUBSIDIARIES
 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)
                     
    Three Months Ended   Twelve Months Ended
    3/31/2016   6/30/2016   9/30/2016   12/31/2016   12/31/2016
Adjusted EBITDA by Segment:                    
Infusion Services Adjusted EBITDA   $ 16,982     $ 19,266     $ 12,129     $ 19,737     $ 68,114  
  Adjusted EBITDA margin %     7.1 %     8.3 %     5.4 %     8.2 %     7.3 %
Corporate Overhead Adjusted EBITDA     (9,577 )     (8,895 )     (8,590 )     (10,200 )     (37,262 )
  Adjusted EBITDA margin %     (4.0 %)     (3.8 %)     (3.8 %)     (4.2 %)     (4.0 %)
                     
Consolidated Adjusted EBITDA       7,405         10,371         3,539         9,537         30,852  
  Adjusted EBITDA margin %     3.1 %     4.5 %     1.6 %     4.0 %     3.3 %
                     
Interest expense, net     (9,412 )     (9,469 )     (9,331 )     (10,023 )     (38,235 )
Gain on dispositions     939       -       3,015       -       3,954  
Income tax expense     (23 )     (149 )     (421 )     (1,422 )     (2,015 )
Depreciation and amortization expense     (4,538 )     (4,252 )     (4,166 )     (8,595 )     (21,551 )
Stock-based compensation (expense) benefit     (1,474 )     (519 )     (1,358 )     1,388       (1,963 )
Change in fair value of equity linked liabilities     -       -       -       10,450       10,450  
Restructuring, acquisition, integration, and other expenses, net (1)     (2,667 )     (4,291 )     (2,368 )     (6,533 )     (15,859 )
Loss from continuing operations, net of income taxes   $  (9,770 )   $  (8,309 )   $ (11,090 )   $ (5,198 )   $   (34,367 )
                                         
                     
General and Administrative Expenses on Face of Income Statement:                    
Corporate overhead adjusted EBITDA   $ (9,577 )   $ (8,895 )   $ (8,590 )   $ (10,200 )   $ (37,262 )
Stock-based compensation (expense)     (1,474 )     (519 )     (1,358 )     1,388       (1,963 )
  General and administrative expenses   $ (11,051 )   $ (9,414 )   $ (9,948 )   $ (8,812 )   $ (39,225 )
                     
(1) Restructuring, acquisition, integration and other expenses, net include costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed locations.  

 

Schedule 6
BIOSCRIP, INC. AND SUBSIDIARIES
 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)
                     
    Three Months Ended   Twelve Months Ended
    3/31/2015   6/30/2015   9/30/2015   12/31/2015   12/31/2015
Adjusted EBITDA by Segment:                    
Infusion Services Adjusted EBITDA   $ 14,993     $ 6,340     $ 14,714     $ 17,828     $ 53,875  
  Adjusted EBITDA margin %     6.1 %     2.6 %     6.0 %     7.3 %     5.5 %
Corporate Overhead Adjusted EBITDA     (10,042 )     (10,704 )     (8,476 )     (8,789 )     (38,011 )
  Adjusted EBITDA margin %     (4.1 %)     (4.3 %)     (3.4 %)     (3.6 %)     (3.9 %)
                     
Consolidated Adjusted EBITDA       4,951         (4,364 )       6,238         9,039         15,864  
  Adjusted EBITDA margin %     2.0 %     (1.8 %)     2.5 %     3.7 %     1.6 %
                     
Interest expense, net     (9,163 )     (9,080 )     (9,507 )     (9,563 )     (37,313 )
Income tax (expense) benefit     (1,928 )     19,921       4,551       (1,012 )     21,532  
Depreciation and amortization expense     (5,794 )     (6,247 )     (5,471 )     (5,231 )     (22,743 )
Stock-based compensation expense     (1,657 )     (1,162 )     (832 )     (862 )     (4,513 )
Impairment of goodwill     -       (238,000 )     (13,850 )     -       (251,850 )
Restructuring, acquisition, integration, and other expenses, net (1)     (3,704 )     (5,969 )     (5,369 )     (9,363 )     (24,405 )
Loss from continuing operations, net of income taxes   $ (17,295 )   $ (244,901 )   $ (24,240 )   $ (16,992 )   $ (303,428 )
                                         
                     
General and Administrative Expenses on Face of Income Statement:                    
Corporate overhead adjusted EBITDA   $ (10,042 )   $ (10,704 )   $ (8,476 )   $ (8,789 )   $ (38,011 )
Stock-based compensation expense     (1,657 )     (1,162 )     (832 )     (862 )     (4,513 )
  General and administrative expenses   $ (11,699 )   $ (11,866 )   $ (9,308 )   $ (9,651 )   $ (42,524 )
                     
(1) Restructuring, acquisition, integration and other expenses, net include costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed locations.    

 

                  Schedule 7  
BIOSCRIP, INC AND SUBSIDIARIES  
CONSOLIDATED CONDENSED CASH FLOWS  
(in thousands)  
                     
  Three Months Ended   Twelve Months Ended  
  3/31/2016   6/30/2016   9/30/2016   12/31/2016   12/31/2016  
Cash flows from operating activities:                    
Net loss from continuing operations $    (9,770 )   $    (8,309 )   $    (11,090 )   $    (5,198 )   $    (34,367 )  
Receivables, net of bad debt expense     (4,417 )       3,136         8,001         (9,222 )       (2,502 )  
Inventory     13,867         (3,330 )       2,265         (2,786 )       10,016    
Prepaid expenses and other assets     7,897         (7,575 )       8,839         (10,053 )       (892 )  
Accounts payable     (11,995 )       (4,195 )       (15,058 )       10,731         (20,517 )  
Accrued interest     (4,630 )       4,438         (4,437 )       4,436         (193 )  
Accrued expenses and other liabilities     (2,227 )       (851 )       (4,302 )       (418 )       (7,798 )  
Non-Cash Adjustments:                    
Depreciation and amortization     4,538         4,252         4,166         8,595         21,551    
Deferred taxes     174         178         184         1,509         2,045    
Other Non-Cash     1,589         1,554         (5,342 )       (347 )       (2,546 )  
Operating Cash Flow (Use)     (4,974 )       (10,702 )       (16,774 )       (2,753 )       (35,203 )  
Discontinued operations     (5,989 )       76         (175 )       (1,478 )       (7,566 )  
Capital expenditures     (2,429 )       (3,037 )       (2,578 )       (1,598 )       (9,642 )  
Proceeds from dispositions     1,105         27         3,045         -          4,177    
Common stock raise, net     -          83,267         -          -          83,267    
Home Solutions Acquisition     -          -          (67,516 )       -          (67,516 )  
Term note (repayments)     (3,137 )       (3,137 )       (3,137 )       (3,139 )       (12,550 )  
Revolver borrowing (repayments)     8,000         (23,000 )       39,000         16,300         40,300    
Deferred financing costs and other     (104 )       (118 )       (455 )       (598 )       (1,275 )  
Total All Cash Flow (Use) $    (7,528 )   $    43,376     $    (48,590 )   $    6,734     $    (6,008 )  
                     

 

                  Schedule 8  
BIOSCRIP, INC AND SUBSIDIARIES  
CONSOLIDATED CONDENSED CASH FLOWS  
(in thousands)  
                     
  Three Months Ended   Twelve Months Ended  
  3/31/2015   6/30/2015   9/30/2015   12/31/2015   12/31/2015  
Cash flows from operating activities:                    
Net loss from continuing operations $    (17,295 )   $    (244,901 )   $    (24,240 )   $    (16,992 )   $    (303,428 )  
Receivables, net of bad debt expense     799         7,134         (4,310 )       17,005         20,628    
Inventory     (4,666 )       (483 )       15,477         (16,097 )       (5,769 )  
Prepaid expenses and other assets     (854 )       163         (2,695 )       (617 )       (4,003 )  
Accounts payable     995         (13,723 )       (23,094 )       11,693         (24,129 )  
Accrued interest     (4,585 )       4,437         (4,438 )       4,630         44    
Accrued expenses and other liabilities     (11,200 )       1,267         24         1,850         (8,059 )  
Non-Cash Adjustments:                    
Depreciation and amortization     5,794         6,247         5,471         5,231         22,743    
Impairment of goodwill     -          238,000         13,850         -          251,850    
Deferred Taxes     1,927         (17,761 )       (5,374 )       1,119         (20,089 )  
Other Non-Cash     2,458         2,081         2,570         814         7,923    
Operating Cash Flow (Use)     (26,627 )       (17,539 )       (26,759 )       8,636         (62,289 )  
Discontinued operations     (1,421 )       (573 )       28,669         (4,563 )       22,112    
Capital expenditures     (2,063 )       (3,734 )       (4,349 )       (1,398 )       (11,544 )  
Preferred stock and warrants     58,951         -          740         -          59,691    
Revolver borrowing (repayments)     (5,000 )       -          30,000         (15,000 )       10,000    
Deferred financing costs and other     (1,365 )       (229 )       -          (1,539 )       (3,133 )  
Total All Cash Flow (Use) $    22,475     $    (22,075 )   $    28,301     $    (13,864 )   $    14,837    
                     

 

 Schedule 9 
       
BIOSCRIP, INC AND SUBSIDIARIES
 FULL YEAR 2017 GUIDANCE 
(dollars in millions, except EPS)
 
   Low End     High End 
     of Range     of Range 
       
 Revenues  $   920.0     $   950.0  
       
 Adjusted EBITDA      45.0         55.0  
  adjusted ebitda margin    4.9 %     5.8 %
       
 Stock Compensation      3.0         2.5  
 Depreciation & Amortization      27.0         25.0  
 Interest Expense, net      52.0         49.0  
 Restructuring Costs      4.0         3.0  
 Income Tax Expense      3.0         2.0  
 Preferred Stock Dividends      9.4         9.4  
  Net Loss - Continuing Ops  $   (53.4 )   $   (35.9 )
       
 Diluted Loss Per Common Share  $    (0.45 )   $    (0.30 )
       
 weighted-average diluted shares      118,000         118,000  
Investor Contacts:

Jeffrey M. Kreger			
Chief Financial Officer & Treasurer
T: (720) 697-5200			
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David Clair
ICR, Inc.
T: (646) 277-1266
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