ELMSFORD, N.Y., May 7, 2015 /PRNewswire/ -- BioScrip, Inc. (NASDAQ: BIOS) (the "Company") today announced 2015 first quarter financial results. First quarter revenue from continuing operations was $261.7 million and the net loss from continuing operations was $15.9 million, or $0.26 per diluted share.
First Quarter Highlights
- Total revenue increased by $22.4 million, or 9.4%, compared to the prior year period. Revenue from the Infusion Services segment increased to $244.4 million, reflecting 10.6% growth year-over-year, driven by continued strong organic growth;
- Gross profit from continuing operations was $66.5 million, or 25.4% of revenue, compared to $65.1 million, or 27.2% of revenue, in the prior year period;
- Adjusted EBITDA from continuing operations was $6.3 million, a $2.8 million decrease compared to Adjusted EBITDA of $9.2 million in the prior year period. The decrease was primarily due to the prior year benefit of a $2.2 million contingent consideration gain, and current year incremental bad debt expense; and
- Raised gross proceeds of $62.5 million through a private placement of convertible preferred stock to Coliseum Capital Management, LLC.
"First quarter results reflect double-digit organic growth and increasing patient census, tempered by seasonality and the impact of severe weather affecting many of our markets. Our business gained additional momentum in March, and we expect to see continued growth in our infusion platform," said Rick Smith, President and Chief Executive Officer of BioScrip.
"With the addition of Jeff Kreger as our new Chief Financial Officer, we are working steadily to achieve our previously-stated cost savings goals, increase operating cash flow and strengthen our balance sheet," concluded Mr. Smith.
Results of Operations
First Quarter 2015 versus First Quarter 2014
Revenue from continuing operations for the first quarter of 2015 totaled $261.7 million, compared to $239.3 million for the same period a year ago, an increase of $22.4 million or 9.4%. Infusion Services segment revenue was $244.4 million in the first quarter of 2015 compared to $221.1 million for the same period in 2014. The 10.6% increase was driven primarily by continued strong organic growth.
Consolidated gross profit for the first quarter of 2015 was $66.5 million, or 25.4% of revenue, compared to $65.1 million, or 27.2% of revenue, for the first quarter of 2014. The increase in gross profit dollars was due to revenue growth in the Infusion Services segment partially offset by lower PBM Services gross profit. The decrease in gross margin percentage was impacted by a shift in our Infusion Services segment towards lower margin chronic therapies.
During the first quarter of 2015, consolidated Adjusted EBITDA from continuing operations declined by $2.8 million down to $6.3 million. Infusion Services segment Adjusted EBITDA was $12.7 million in the first quarter of 2015, compared to $14.9 million in the prior year quarter.
PBM Services segment revenue was $17.2 million for the first quarter of 2015, compared to $18.2 million for the prior year period. PBM Services segment Adjusted EBITDA was $1.4 million for the first quarter of 2015, compared to $1.7 million in the prior year quarter.
Interest expense in the first quarter of 2015 was $9.2 million compared to $10.5 million in the prior year period.
Income tax expense for continuing operations in the first quarter of 2015 was $1.9 million compared to income tax expense of $3.5 million in the prior year period.
Net loss from continuing operations for the first quarter of 2015 was $15.9 million, or a loss of $0.26 per diluted share, compared to a net loss of $25.3 million, or $0.37 per diluted share in the prior year period.
Liquidity and Capital Resources
For the three months ended March 31, 2015, BioScrip used $24.3 million in net cash from continuing operating activities, as compared to $24.3 million of net cash used in continuing operating activities in the prior year period.
As of March 31, 2015, the Company had $23.2 million in cash and $418.8 million of outstanding debt. In addition, as of March 31, 2015, the Company had approximately $69.8 million of its revolving credit facility available for working capital needs after considering outstanding letters of credit totaling $5.2 million.
During the first quarter of 2015, BioScrip sold $62.5 million in Series A Convertible Preferred Stock to Coliseum Capital Management, LLC and affiliated funds. BioScrip intends to commence a registered rights offering on or before June 30, 2015 to allow all of BioScrip's stockholders of record, on a date to be determined by the Board, the non-transferable right to purchase their pro rata share of $20.0 million of Series A Convertible Preferred Stock and warrants on the same terms as the completed private placement to Coliseum Capital. Coliseum Capital and its affiliates will not participate in the rights offering.
Additional details regarding the rights offering are included in the Company' s Form S -3 filed with the Securities and Exchange Commission on March 10, 2015, and the Company will be filing a final prospectus at the time the rights offering is commenced, which will contain final terms. The rights and securities offered for subscription thereunder may not be sold, nor may offers to buy be accepted, prior to the time such registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these rights offering securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Conference Call and Presentation
BioScrip will host a conference call and live webcast to discuss its first quarter 2015 financial results on May 8, 2015 at 8:30 a.m. Eastern Time. Interested parties may participate by dialing 800-754-1336 (US), or 212-231-2920 (International) or accessing a link on the Company's website at www.bioscrip.com. The Company is also providing supplemental slides that will be posted prior to the conference call and will be accessible through the "Investor Relations" section of the BioScrip website at www.bioscrip.com.
A replay of the conference call will be available for two weeks after the call's completion by dialing 800-633-8284 (US) or 402-977-9140 (International) and entering conference call ID number 21767966. 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. BioScrip provides its infusion services from over 70 locations across 28 states.
Forward-Looking Statements Safe Harbor
This press release includes statements that may constitute "forward-looking statements," including projections of certain measures of the Company's results of operations, projections of certain charges and expenses, and other statements regarding the Company's goals, regulatory approvals and strategy. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 or contribute to such differences include but are not limited to risks associated with: the Company's ability to grow its Infusion Services segment organically or through acquisitions and obtain financing in connection therewith; its ability to reduce operating costs while sustaining growth; 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.
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