BioScrip Inc.

03/15/2019 | Press release | Distributed by Public on 03/15/2019 05:16

BioScrip Reports Fourth Quarter and Full Year 2018 Financial Results

DENVER, March 15, 2019 (GLOBE NEWSWIRE) -- BioScrip, Inc. (NASDAQ: BIOS) ('BioScrip' or the 'Company'), the largest independent national provider of infusion and home care management solutions, today announced its 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 at December 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.

Daniel E. Greenleaf, President and Chief Executive Officer, commented, 'BioScrip delivered record comparable net revenue growth of almost 8% in the fourth quarter of 2018. Excluding the bad debt adjustment, we achieved adjusted EBITDA of $52.6 million for the year, which was slightly below the low-end of our expectations due to slower than anticipated revenue growth in the month of December. However, we commenced 2019 on a very strong note, with gross revenue growth of approximately 9% in both January and February, and March gross revenue to date trending at similar levels.'

Mr. Greenleaf continued, 'This morning BioScrip and Option Care jointly announced a definitive merger agreement, which will create the nation's preeminent home infusion company and transform the industry. The combined company will have a national footprint of more than 150 locations in 46 states and revenue exceeding $2.6 billion, as well as improved financial strength and flexibility through an optimized capital structure. We are extremely excited about the value this combination will create for all of our combined stakeholders and patients and look forward to closing the transaction.'

Financial Guidance

Given the pending combination announced today with Option Care, the Company will not be providing updated 2019 BioScrip financial guidance.

Conference Call and Presentation

BioScrip will host a conference call and live webcast on March 15, 2019, at 9:00 a.m. Eastern Time, to discuss the definitive merger agreement with Option Care as well as its fourth quarter and full year 2018 financial results. Interested parties may participate by dialing 877-423-9820 (U.S.) or by accessing a link under the 'Investors' section on the Company's website at www.bioscrip.com.

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

BioScrip, Inc. ('BioScrip' or the 'Company') will file with the Securities and Exchange Commission ('SEC') a proxy statement in connection with the proposed transaction. The proxy statement will contain important information about the proposed transaction and related matters. INVESTORS AND SECURITY HOLDERS ARE URGED AND ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The proxy statement and other relevant materials (when they become available) and any other documents filed by the Company with the SEC may be obtained free of charge at the SEC's website, at www.sec.gov. In addition, security holders will be able to obtain free copies of the proxy statement and other relevant materials from the Company by contacting Investor Relations by mail at 1600 Broadway, Suite 700, Denver, CO 80202, Attn: Investor Relations, by telephone at (720) 697-5200, or by going to the Company's Investor Relations page on its corporate web site at https://investors.bioscrip.com.

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 SEC on April 4, 2018. This document can be obtained free of charge from the sources indicated above. Information regarding the ownership of the Company's directors and executive officers in the Company's securities is included in the Company's SEC filings on Forms 3, 4, and 5, which can be found through the SEC's website at www.sec.gov. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the preliminary proxy statement and the definitive proxy statement and other relevant materials to be filed with the SEC when they become available.

About BioScrip, Inc.

BioScrip, Inc. is the largest independent national provider of infusion and home care management solutions, with approximately 2,100 teammates and nearly 70 service locations across the U.S. BioScrip partners with physicians, hospital systems, payors, pharmaceutical manufacturers and skilled nursing facilities 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.

Investor Contacts

Stephen Deitsch
Chief Financial Officer & Treasurer
T: (720) 697-5200
[email protected]

Kalle Ahl, CFA
The Equity Group
T: (212) 836-9614
[email protected]

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 BioScrip and Option Care. All statements other than statements of historical facts are forward-looking statements. In addition, words such as 'anticipate,' 'believe,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target,' 'will,' 'would,' or the negative of these words, and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. Forward-looking statements relating to the proposed transaction include, but are not limited to: statements about the benefits of the proposed transaction between BioScrip and Option Care, including future financial and operating results; BioScrip's and Option Cares plans, objectives, expectations and intentions; the expected timing of completion of the proposed transaction; and other statements relating to the acquisition that are not historical facts. Forward-looking statements are based on information currently available to BioScrip and Option Care and involve estimates, expectations and projections. Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties (both known and unknown), and many factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the proposed transaction between BioScrip and Option Care, these factors could include, but are not limited to: the risk that BioScrip or Option Care may be unable to obtain governmental and regulatory approvals required for the transaction, or that required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could reduce the anticipated benefits from the proposed transaction or cause the parties to abandon the proposed transaction; the risk that a condition to closing of the transaction may not be satisfied; the length of time necessary to consummate the proposed transaction, which may be longer than anticipated for various reasons; the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on transaction-related issues; the effect of future regulatory or legislative actions on the companies or the industries in which they operate; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; economic and foreign exchange rate volatility; and the other risks contained in BioScrip's most recently filed Annual Report on Form 10-K.

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 BioScrip nor Option Care undertakes any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication. Nothing in this communication is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per BioScrip share for the current or any future financial years or those of the combined company, will necessarily match or exceed the historical published earnings per BioScrip share, as applicable. Neither BioScrip nor Option Care gives any assurance (1) that either BioScrip or Option Care will achieve its expectations, or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decrees, cost reductions, business strategies, earnings or revenue trends or future financial results. All subsequent written and oral forward-looking statements concerning BioScrip, Option Care, the proposed transaction, the combined company or other matters and attributable to BioScrip or Option Care or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

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.