NEW YORK, September 18, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on BioScrip, Inc. (NASDAQ: BIOS). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=BIOS
Highlights from our BIOS Report include:
- Q2 2015 Financial Highlights - On August 10, 2015, BioScrip Inc. reported financial results for Q2 2015. Revenue from continuing operations rose 6.2% Y-o-Y to $262.4 million, but missed the Zacks Consensus Estimate of $270 million. Consolidated gross profit was marginally higher at $66.0 million versus $65.4 million reported in Q2 2014. The Company attributed this increase in gross profit to revenue growth in the Infusion Services segment partially offset by lower PBM Services gross profit. Net loss from continuing operations was $243.2 million or a $3.60 loss per diluted share, versus net loss of $18.6 million or $0.27 loss per diluted share in the corresponding period prior year, largely due to the $238.0 million pre-tax goodwill impairment charge and the $8.6 million incremental pre-tax bad debt charge.
- Segment Results - Revenue from the Infusion Services segment increased to $247.0 million, climbing by 7.1% Y-o-Y, primarily due to continued strong organic growth particularly in chronic, nutrition and other therapies. However, revenues from the PBM Services segment totaled $15.4 million, down from $16.6 million for the prior year period. Infusion Services segment's adjusted EBITDA was $4.1 million versus $16.2 million in the prior year quarter. The decrease was chiefly due to lower gross margin revenue mix shift combined with the $8.6 million incremental pre-tax bad debt charge. Further, PBM Services segment's adjusted EBITDA was $1.7 million for the second quarter of 2015, compared to $1.8 million in the prior year quarter.
- Guidance - The Company expects EBITDA to be in the range of $50-$60 million for full year 2016. Expected revenues for 2016 are projected between $730 million and $760 million. The current Zacks consensus estimate for 2016 is pegged at $1.19 billion, significantly higher than the Company's revenue projection.
- Steps to Enhance Shareholder Value - In a separate press release on the same day, BioScrip announced a financial improvement plan to reduce its cost structure, improve financial flexibility, enhance shareholder value and position itself as a pure play infusion services company focused on high-growth services. As part of its financial improvement plan, BioScrip now expects $35-$40 million in annualized net cost savings to be realized over the next 12 months. Additionally, the Company reported that it has entered into an asset purchase agreement to sell its non-core PBM business to ProCare Pharmacy Benefit Manager Inc. for $25 million in cash which is expected to close in the third quarter. Meanwhile, the Company has also retained Jefferies LLC to explore a range of strategic alternatives. Furthermore, BioScrip has also made some changes in its executive leadership team, naming Chris Luthin as Chief Operating Officer and Scott Davido as Chief Implementation Officer, in addition to other executive appointments.
To find out how this influences our rating on BioScrip, Inc., read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=BIOS
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