2014

BioScrip Reports Second Quarter 2013 Financial Results

ELMSFORD, N.Y., Aug. 7, 2013 /PRNewswire/ -- BioScrip®, Inc. (NASDAQ: BIOS) today announced 2013 second quarter financial results.  Second quarter revenue from continuing operations was $190.7 million and the net loss from continuing operations was $8.3 million, or $0.13 per diluted share. Consolidated Adjusted EBITDA for the second quarter was $12.1 million, and consolidated adjusted earnings per diluted share for the second quarter was $0.04 per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20130117/NY44138LOGO )

As a result of the sale of the Company's traditional and specialty pharmacy mail operations and community retail pharmacy stores on May 4, 2012 (the "Pharmacy Services Asset Sale"), the Company's financial statements reflect the discontinued operations' results for the three months and six months ended June 30, 2013 and 2012 separate from the continuing operations of the business. The remaining assets and liabilities of the divested business that were not transferred as a part of the Pharmacy Services Asset Sale are included in continuing operations.

Second Quarter Highlights

  • Revenue from continuing operations increased $34.8 million, or 22.3%, as compared to the prior year period.  Revenue from the Infusion Services segment increased by $45.2 million, or 40.7%, as compared to the prior year period;
  • Gross profit from continuing operations was $65.0 million, or 34.1% of revenue, as compared to $53.0 million, or 34.0% of revenue, in the prior year period. 
  • Adjusted EBITDA from continuing operations was $12.1 million, or 6.3% of revenue, an increase of $3.1 million as compared to $9.0 million, or 5.8% of revenue, in the prior year period;
  • Adjusted EBITDA from the Infusion Services segment was $14.2 million, or 9.1% of revenue, an increase of $6.2, as compared to $8.0 million, or 7.2% of revenue, in the prior year period;
  • Entered into a definitive agreement to acquire the net assets of CarePoint Partners Holdings LLC and its subsidiaries (collectively, "CarePoint Business"); and,
  • Entered into a new $475.0 million senior credit facility comprised of a $75.0 million revolving credit facility, a $250.0 million senior secured term loan B, and a $150.0 million secured delayed draw term loan B.  In conjunction with the new credit facility, the Company also initiated the redemption of its 10 ¼% Senior Notes.

"The infusion business again posted robust organic growth and reflects continued progress in the execution of our infusion-focused strategy. Our goals of expanding infusion margins and generating operating leverage are consistent with our expectations and are beginning to yield results. We remain focused on the key growth drivers of our business and our strategic plan.   In the quarter, however, our results were impacted by weaker-than-expected contributions from our PBM segment," said Rick Smith, President and Chief Executive Officer of BioScrip.

"We will continue to target opportunistic acquisitions that enable us to expand our national infusion footprint while remaining focused on completing and integrating recent transactions.  We remain confident in our ability to drive sustained growth in our infusion segment," concluded Smith.  

Results of Operations

Second Quarter 2013 versus Second Quarter 2012
Revenue from continuing operations for the second quarter of 2013 totaled $190.7 million, compared to $155.9 million in the prior year period, an increase of $34.8 million, or 22.3%.  Infusion Services segment revenue was $156.2 million in the second quarter of 2013, as compared to $111.0 million in the prior year period.  The 40.7% increase was driven primarily by overall organic volume growth as well as the impact of the HomeChoice and InfuScience acquisitions.  Home Health Services segment revenue was $18.2 million for the second quarter of 2013, as compared to $16.9 million in the prior year period.  The 8.1% increase was primarily the result of growth in volume from private duty nursing activity.  PBM Services segment revenue was $16.3 million for the second quarter of 2013, compared to $28.1 million for the prior year period.  The decrease was due primarily to a decline in the funded PBM business, mostly associated with the loss of one low-margin client as previously disclosed, and a reduction in discount card volume.  The decline in discount card volume was due to a decrease in marketing from certain distribution partners. We expect that overall discount card volume should benefit from the implementation by new distribution partners of prescription discount cards through their pre-existing network.

Consolidated gross profit for the second quarter of 2013 was $65.0 million, or 34.1% of revenue, compared to $53.0 million, or 34.0% of revenue, in the prior year period.  The increase in gross profit was the result of growth in the Infusion Services segment and the Home Health Services segment, offset by the decline in the PBM Services segment.  Consolidated gross profit margin percentage was impacted by mix of business as the Infusion Services segment has grown more quickly than the higher margin PBM Services segment. 

During the second quarter of 2013, Infusion Services Segment Adjusted EBITDA was $14.2 million, or 9.1% of segment revenue, compared to $8.0 million, or 7.2% of segment revenue, in the prior year period. The improvement in Adjusted EBITDA margin percentage in the Infusion Services segment resulted primarily from an improved shift in therapy mix, impact of acquisitions, and the generation of operating leverage. 

The Home Health Services Segment Adjusted EBITDA in the second quarter of 2013 was $1.1 million, or 6.0% of segment revenue, compared $1.1 million, or 6.4% of segment revenue, in the comparable prior year period. The decrease in Adjusted EBITDA margin percentage in the Home Health Services segment was primarily due to business mix as the lower margin private duty nursing volume continues to grow.

The PBM Services Segment Adjusted EBITDA was $4.9 million, or 30.1% of segment revenue, for the second quarter of 2013 compared to $6.4 million, or 22.7% of segment revenue, in the prior year period. The improvement in Adjusted EBITDA margin percentage in the PBM Services segment was primarily due to the departure of one low-margin client in the funded business.

On a consolidated basis, BioScrip reported $12.1 million of Adjusted EBITDA during the second quarter of 2013, or 6.3% of total revenue, compared to $9.0 million, or 5.8% of total revenue, in the prior year period.  The performance in the quarter reflects growth in the Infusion business offset by lower than expected performance in other segments, primarily in the PBM business.

Interest expense in the second quarter of 2013 was $6.5 million compared to $6.6 million in the prior year period.

Income tax expense for continuing operations in the second quarter was $0.5 million compared to an income tax expense of $0.4 million in the prior year period.

Net loss from continuing operations for the second quarter of 2013 was $8.3 million, or a loss of $0.13 per diluted share, compared to a net loss of $4.3 million, or $0.07 per diluted share, in the prior year period.

Six Months Ended June 30, 2013 versus Six Months Ended June 30, 2012
Revenue from continuing operations for the six months ended June 30, 2013 totaled $389.8 million, compared to $311.5 million in the prior year period, a 25.1% increase.  Infusion Services segment revenue was $310.5 million for the six months ended June 30, 2013, compared to $220.0 million in the prior year period.  The 41.1% increase was driven primarily by an increase in volume growth as well as the impact of the HomeChoice and InfuScience acquisitions.  Home Health Services segment revenue for the six months ended June 30, 2013 was $36.2 million compared to $33.6 million in the prior year period.  The 7.7% increase was primarily the result of growth in volume from private duty nursing activity.  PBM Services segment revenue for the six months ended June 30, 2013 was $43.1 million, compared to $57.9 million in the prior year period.  The 25.6% decrease was due primarily to a decline in the funded PBM business, mostly associated with the departure of one client as previously disclosed, and a reduction in discount card volume.  The decline in discount card volume was due to a decrease in marketing from certain distribution partners. We expect that overall discount card volume should benefit from the implementation by new distribution partners of prescription discount cards through their pre-existing network.

Consolidated gross profit for the six months ended June 30, 2013 was $128.2 million, or 32.9% of revenue, compared to $106.6 million, or 34.2% of revenue, in the prior year period.  The increase in gross profit was the result of growth in the Infusion Services segment and the Home Health Services segment, offset by the decline in the PBM Services segment.  Consolidated gross profit margin percentage was impacted by mix of business as the Infusion Services segment has grown more quickly than the higher margin PBM Services segment. 

During the six months ended June 30, 2013, the Infusion Services Segment Adjusted EBITDA was $26.5 million, or 8.5% of segment revenue, compared to $15.8 million, or 7.2% of segment revenue, in the prior year period.  The improvement in Adjusted EBITDA margin percentage in the Infusion Services segment resulted primarily from an improved shift in therapy mix, the impact of acquisitions, and the generation of operating leverage. 

The Home Health Services Segment Adjusted EBITDA for the six months ended June 30, 2013 was $2.0 million, or 5.5% of segment revenue compared to $2.2 million, or 6.4% of segment revenue in the prior year period. The decrease in Adjusted EBITDA margin percentage in the Home Health Services segment was primarily due to business mix as the lower margin private duty nursing volume continues to grow.

The PBM Services Segment Adjusted EBITDA was $11.1 million, or 25.8% of segment revenue, for the six months ended June 30, 2013 compared to $12.5 million, or 21.5% of segment revenue, in the prior year period.  The improvement in Adjusted EBITDA margin percentage in the PBM Services segment was primarily due to the departure of one low-margin client in the funded business.

On a consolidated basis, BioScrip reported $23.6 million of Adjusted EBITDA for the six months ended June 30, 2013, or 6.0% of total revenue, compared to $17.4 million, or 5.6% of total revenue, in the prior year period.

Interest expense for the six months ended June 30, 2013 was $13.0 million compared to $13.2 million in the prior year period.

Income tax expense for continuing operations for the six months ended June 30, 2013 was $0.6 million compared to an income tax benefit of $0.1 million in the prior year period.

Net loss from continuing operations for the six months ended June 30, 2013 was $15.8 million, or $0.26 per diluted share, compared to a net loss of $6.3 million, or $0.11 per diluted share, in the prior year period.

Liquidity and Capital Resources

For the six months ended June 30, 2013, BioScrip used $20.8 million in net cash from continuing operating activities compared to $42.8 million generated from operating activities during the six months ended June 30, 2012.  Cash flow from operations during this period was primarily impacted by the collection of accounts receivable retained after the Pharmacy Services Asset Sale, net of accounts payable paid related to those businesses as well as the impact of acquisitions.  The Company's cash balance at the end of the second quarter of 2013 was $81.6 million.

Outlook

The Company believes its 2013 revenue will be in a range of $830.0 million to $865.0 million and its 2013 Adjusted EBITDA will be in a range of $67.0 million to $73.0 million.  This reflects the Company's current assessment of the net impact of: accelerating growth and profit improvement opportunities in the Infusion business; continuation of recent trends in the PBM segment; and consolidation of the CarePoint Business, assuming the transaction closes in the third quarter of 2013.  The performance of the Infusion business will be driven by continued initiatives to: (i) deliver double-digit organic growth; (ii) drive improved therapy mix and expand margins; (iii) improve operating leverage while scaling the enterprise; and (iv) achieve expected synergies from the HomeChoice acquisition.

Conference Call

BioScrip will host a conference call to discuss its second quarter 2013 financial results on August 8, 2013 at 8:30 a.m. Eastern Time.

Interested parties may participate in the conference call by dialing 800-916-9049 (US), or 212-231-2918 (International), 5-10 minutes prior to the start of the call. 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 21669105. An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the BioScrip website at www.bioscrip.com.

About BioScrip, Inc.

BioScrip, Inc. provides comprehensive infusion and home care solutions. By partnering with patients, physicians, healthcare payors, government agencies and pharmaceutical manufacturers we are able to provide access to infusible medications and management solutions. Our goal is to optimize outcomes for chronic and other complex healthcare conditions and enhance the quality of patient life. BioScrip brings clinical competence in providing high-touch, comprehensive infusion and nursing services to patients in the most convenient ways possible. Through our customer services and treatments we aim to ensure the best possible therapy outcome.


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," "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 complete the acquisition of the CarePoint Business, and to successfully integrate the CarePoint Business after acquisition; the Company's ability to grow its Infusion segment organically or through acquisitions and obtain financing in connection therewith; its ability to effectively integrate other acquisitions; 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, including the Company's annual report on Form 10-K for the year ended December 31,  2012.  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.

Reconciliation to Non-GAAP Financial Measures

In addition to reporting all financial information required in accordance with generally accepted accounting principles (GAAP), the Company is also reporting EBITDA, Adjusted EBITDA, and Adjusted EPS, which are non-GAAP financial measures. EBITDA, Adjusted EBITDA and Adjusted EPS are not measurements 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 our liquidity. In addition, the Company's definitions of EBITDA, Adjusted EBITDA and Adjusted EPS may not be comparable to similarly titled non-GAAP financial measures reported by other companies.  EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization.  Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, acquisition and integration expenses, restructuring-related expenses and investments in start-up operations. 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. Adjusted EPS, as defined by the Company, represents earnings per diluted share, excluding the same elements in calculating Adjusted EBITDA (restructuring and other related costs, investments in start-up operations, acquisition and integration expenses, stock-based compensation expense) as well as the impact of acquisition-related intangible amortization.  Management believes that these non-GAAP financial measures provide useful supplemental information regarding the performance of our business operations and facilitates comparisons to our historical operating results. For a full reconciliation of EBITDA, Adjusted EBITDA and Adjusted EPS to the most comparable GAAP financial measures, please see the attachments to this earnings release. 

(Financial Tables Follow)

 

 

Schedule 1

BIOSCRIP, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS

(in thousands, except for share amounts)






June 30, 2013


December 31, 2012


(unaudited)



ASSETS




Current assets




Cash and cash equivalents

$          81,641


$           62,101

Receivables, less allowance for doubtful accounts of $22,175 and $22,728 at June 30, 2013 and December 31, 2012, respectively

156,741


129,103

Inventory

25,921


34,034

Prepaid expenses and other current assets

10,108


10,189

Total current assets

274,411


235,427

Property and equipment, net

31,920


23,721

Goodwill

415,324


350,810

Intangible assets, net

17,654


17,446

Deferred financing costs

3,182


2,877

Investments in and advances to unconsolidated affiliate


10,042

Other non-current assets

4,221


2,053

Total assets

$        746,712


$         642,376

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Current portion of long-term debt

$               178


953

Accounts payable

41,179


34,438

Claims payable

3,848


7,411

Amounts due to plan sponsors

12,549


18,173

Accrued interest

5,766


5,803

Accrued expenses and other current liabilities

35,862


41,491

Total current liabilities

99,382


108,269

Long-term debt, net of current portion

225,317


225,426

Deferred taxes

11,314


10,291

Other non-current liabilities

9,796


4,981

Total liabilities

345,809


348,967

Stockholders' equity




Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued or outstanding


Common stock, $.0001 par value; 125,000,000 shares authorized; shares issued: 70,291,640 and 59,600,713, respectively; shares outstanding: 67,709,120 and 57,026,957, respectively

7


6

Treasury stock, shares at cost: 2,582,520 and 2,582,520, respectively

(10,311)


(10,311)

Additional paid-in capital

513,299


388,798

Accumulated deficit

(102,092)


(85,084)

Total stockholders' equity

400,903


293,409

Total liabilities and stockholders' equity

$        746,712


$         642,376









 

 

 

Schedule 2

BIOSCRIP, INC. AND SUBSIDIARIES









UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS 

(in thousands, except per share amounts)










Three Months Ended


Six Months Ended


June 30,


June 30,


2013


2012


2013


2012

Product revenue

$      150,559


$      108,557


$      300,583


$      215,360

Service revenue

40,174


47,344


89,221


96,174

Total revenue

190,733


155,901


389,804


311,534









Cost of product revenue

102,725


75,120


208,258


147,446

Cost of service revenue

22,996


27,740


53,297


57,525

Total cost of revenue

125,721


102,860


261,555


204,971

Gross profit

65,012


53,041


128,249


106,563

% of revenues

34.1%


34.0%


32.9%


34.2%

Selling, general and administrative expenses

55,971


44,057


108,762


88,632

Bad debt expense

3,684


3,772


7,081


7,237

Acquisition and integration expenses

3,512


636


8,135


808

Restructuring and other expenses

1,446


988


2,724


1,375

Amortization of intangibles

1,710


878


3,792


1,757

Income from operations

(1,311)


2,710


(2,245)


6,754

Interest expense, net

6,508


6,639


12,986


13,208

Net income (loss) from continuing operations,  before income taxes

(7,819)


(3,929)


(15,231)


(6,454)

Tax provision (benefit)

498


364


556


(138)

Net income (loss) from continuing operations, net of income taxes

(8,317)


(4,293)


(15,787)


(6,316)

Net income (loss) from discontinued operations, net of income taxes

(563)


76,059


(1,221)


75,379

Net income (loss)

$        (8,880)


$        71,766


$      (17,008)


$        69,063









Basic weighted average shares

65,025


55,746


61,058


55,143

Diluted weighted average shares

65,025


55,746


61,058


55,143









Income (loss) per common share:








Basic loss from continuing operations

$          (0.13)


$          (0.07)


$          (0.26)


$          (0.11)

Basic income (loss) from discontinued operations

$          (0.01)


$            1.36


$          (0.02)


$            1.36

Basic income (loss)

$          (0.14)


$            1.29


$          (0.28)


$            1.25









Diluted loss from continuing operations

$          (0.13)


$          (0.07)


$          (0.26)


$          (0.11)

Diluted  income (loss) from discontinued operations

$          (0.01)


$            1.36


$          (0.02)


$            1.36

Diluted income (loss)

$          (0.14)


$            1.29


$          (0.28)


$            1.25

















 

 

Schedule 3

BIOSCRIP, INC AND SUBSIDIARIES





UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



Six Months Ended June 30,


2013


2012

Cash flows from operating activities:




Net income (loss)

$         (17,008)


$        69,063

Less: Income from discontinued operations, net of income taxes

(1,221)


75,379

Loss from continuing operations, net of income taxes

(15,787)


(6,316)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:




Depreciation

5,029


3,981

Amortization of intangibles

3,792


1,757

Amortization of deferred financing costs

722


576

Change in deferred income tax

1,023


1,404

Compensation under stock-based compensation plans

5,833


2,711

(Gain) loss on disposal of fixed assets

(16)


45

Equity in net loss of unconsolidated affiliate

661


-

Changes in assets and liabilities, net of acquired business:




Receivables, net of bad debt expense

(15,141)


78,925

Inventory

10,097


(3,104)

Prepaid expenses and other assets

1,318


4,769

Accounts payable

6,219


(50,313)

Claims payable

(3,564)


(860)

Amounts due to plan sponsors

(7,893)


462

Accrued expenses and other liabilities

(13,129)


8,797

Net cash provided by (used in) operating activities from continuing operations

(20,836)


42,834

Net cash provided by (used in) operating activities from discontinued operations

(1,221)


(21,195)

Net cash provided by (used in) operating activities

(22,057)


21,639

Cash flows from investing activities:




Purchases of property and equipment, net

(11,014)


(3,682)

Cash consideration paid for asset acquisitions

234


-

Cash consideration paid for acquisitions, net of cash acquired

(72,921)


(466)

Net cash proceeds from sale of unconsolidated affiliate

8,509


-

Cash advances to unconsolidated affiliate

(2,348)


-

Cash consideration paid to DS Pharmacy

-


(2,935)

Cash consideration paid for unconsolidated affiliate, net of cash acquired

-


(7,100)

Net cash provided by (used in) investing activities from continuing operations

(77,540)


(14,183)

Net cash provided by (used in) investing activities from discontinued operations

-


161,499

Net cash used in investing activities

(77,540)


147,316

Cash flows from financing activities:




Proceeds from public stock offering

118,570


-

Borrowings on line of credit

351,859


848,633

Repayments on line of credit

(351,859)


(882,455)

Repayments of capital leases

(884)


(2,211)

Net proceeds from exercise of common stock purchase warrants

399


-

Net proceeds from exercise of employee stock compensation plans

1,052


5,675

Surrender of stock to satisfy minimum tax withholding

-


(174)

Net cash provided by (used in) financing activities from continuing operations

119,137


(30,532)

Net change in cash and cash equivalents

19,540


138,423

Cash and cash equivalents - beginning of period

62,101


Cash and cash equivalents - end of period

$          81,641


$      138,423

DISCLOSURE OF CASH FLOW INFORMATION:




Cash paid during the period for interest

$          12,327


$        13,641

Cash paid during the period for income taxes

$               235


$             313

DISCLOSURE OF NON-CASH TRANSACTIONS:




Capital lease obligations incurred to acquire property and equipment

$                   -


$               20





 

 

Schedule 4

BIOSCRIP, INC


Reconciliation between GAAP and Non-GAAP Measures

(in thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2013


2012


2013


2012

Results of Operations:








Revenue:








Infusion Services - product revenue

$         150,559


$        108,557


$         300,583


$           215,360

Infusion Services - service revenue

5,606


2,416


9,959


4,667

Total Infusion Services revenue

156,165


110,973


310,542


220,027









Home Health Services - service revenue

18,228


16,860


36,169


33,571

PBM Services - service revenue

16,340


28,068


43,093


57,936









Total revenue

$         190,733


$        155,901


$         389,804


$           311,534









Adjusted EBITDA by Segment before corporate overhead:








Infusion Services

$           14,193


$            8,026


$           26,508


$             15,809

Home Health Services

1,097


1,075


1,980


2,155

PBM Services

4,920


6,364


11,119


12,462

Total Segment Adjusted EBITDA

20,210


15,465


39,607


30,426









Corporate overhead

(8,132)


(6,458)


(16,048)


(13,040)

Consolidated Adjusted EBITDA

12,078


9,007


23,559


17,386









Interest expense, net

(6,508)


(6,639)


(12,986)


(13,208)

Income tax (expense) benefit

(498)


(364)


(556)


138

Depreciation

(2,570)


(2,050)


(5,029)


(3,981)

Amortization of intangibles

(1,710)


(878)


(3,792)


(1,757)

Stock-based compensation expense

(3,860)


(1,745)


(5,833)


(2,711)

Acquisition and integration expenses

(3,512)


(636)


(8,135)


(808)

Restructuring and other expenses and investments1

(1,737)


(988)


(3,015)


(1,375)

Net (loss) income:

$           (8,317)


$           (4,293)


$         (15,787)


$             (6,316)

















Supplemental Operating Data





June 30,


December 31,






2013


2012

Total Assets








Infusion Services





$         534,571


$           438,623

 Home Health Services





63,366


62,403

PBM Services





33,453


36,354

Corporate unallocated





113,039


95,813

 Assets associated with discontinued operations, not sold





2,283


9,183

 Total





$         746,712


$           642,376









1

Restructuring and other expenses and investments include costs associated with restructuring such as employee severance, third party consulting costs and facility closure costs; training and transitional costs as well as redundant salaries; and, losses in the short-term investment of the unconsolidated affiliate and investment in start-up branch locations.

 

 

Schedule 5

BIOSCRIP, INC


Reconciliation between GAAP and Non-GAAP Earnings Per Share

(in thousands)
























Three Months Ended


Six Months Ended




June 30,


June 30,




2013 1,3


2012 2,4


2013 1,3


2012 2,4

Net income from continuing operations

$        (8,317)


$        (4,293)


$      (15,787)


$        (6,316)


Non-GAAP adjustments:










Restructuring and other expenses and investments5

1,737


1,067


3,015


1,344



Acquisition and integration expenses

3,512


687


8,135


790



Amortization of intangibles

1,710


949


3,792


1,717



Compensation under stock-based compensation plans

3,860


1,885


5,833


2,650

Non-GAAP net income from continuing operations

$          2,502


$             295


$          4,988


$             185





















Earnings per share from continuing operations, basic and diluted

$          (0.13)


$          (0.07)


$          (0.26)


$          (0.11)


Non-GAAP adjustments:










Restructuring and other expenses and investments5

0.03


0.02


0.05


0.02



Acquisition and integration expenses

0.05


0.01


0.13


0.01



Amortization of intangibles

0.03


0.02


0.06


0.03



Compensation under stock-based compensation plans

0.06


0.03


0.10


0.05

Non-GAAP earnings per share from continuing operations, basic and diluted

$            0.04


$            0.01


$            0.08


$                -











Weighted average shares outstanding, basic 

65,025


55,746


61,058


55,143

Weighted average shares outstanding, diluted

65,025


55,746


61,058


55,143









































1.

For the three and six months ended June 30, 2013 non-GAAP net income from continuing operations adjustments are net of tax, calculated using an annual effective tax rate offset by the effect of our net operating loss carryforwards.  The tax expense netted against restructuring and other expenses and investments, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was zero for each, respectively.











2.

For the three and six months ended June 30, 2012, non-GAAP net income from continuing operations adjustments are net of tax, calculated using an annual effective tax rate offset by the effect of our net operating loss carryforwards.  The tax benefit netted against restructuring and other expenses and investments, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense for the three months ended June 30, 2012 was $79, $51, $71 and $140, respectively.  For the six months ended June 30, 2012, the tax expense netted against restructuring and other expenses and investments, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was $31, $18, $40 and $61, respectively.











3.

For the three and six months ended June 30, 2013, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate method offset by the effect of our net operating loss carryforwards.  The tax expense per basic and diluted share netted against restructuring and other expenses and investments, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was zero per share, respectively.











4.

For the three and six months ended June 30, 2012, non-GAAP Adjusted EPS per basic and diluted share from continuing operations adjustments are net of tax, calculated using an annual effective tax rate offset by the effect of our net operating loss carryforwards.  The tax benefit per basic and diluted share netted against restructuring and other expenses and investments, acquisition and integration expenses, amortization of intangibles, and stock-based compensation expense was zero per share for the three months and six months ended June 30, 2012.

 

5.

Restructuring and other expenses and investments include costs associated with restructuring such as employee severance, third party consulting costs and facility closure costs; training and transitional costs as well as redundant salaries; and, losses in the short-term investment of the unconsolidated affiliate and investment in start-up branch locations.

SOURCE BioScrip, Inc.



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