UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 4, 2008

BioScrip, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware		0-28740		05-0489664
(State or Other Jurisdiction of		(Commission		(IRS Employer
Incorporation)		File Number)		Identification No.)
100 Clearbrook Road, Elmsford, New York				10523
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s telephone number, including area code (914) 460-1600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 

 

Item 2.02		Results of Operations and Financial Condition.

     On March 4, 2008, BioScrip, Inc. issued a press release reporting its earnings for the fourth quarter and year ended December 31, 2007. A copy of that press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

     The press release includes certain non-GAAP financial measures as described therein. As required by Regulation G, a reconciliation between any non-GAAP financial measures presented and the most directly comparable GAAP financial measures is also provided.

     As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

Item 9.01		Financial Statements and Exhibits.

(c) Exhibits. The following information is furnished as an exhibit to this Current Report:

Exhibit No.				Description of Exhibit
99.1				Press Release dated March 4, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

Exhibit 99.1

BioScrip, Inc. Reports EPS of $0.06 for Fourth Quarter 2007; EPS of $0.09 for 2007; Twelve Months’ Operating Income Improves by $25.1 Million

ELMSFORD, N.Y.—(BUSINESS WIRE)- March 4, 2008—BioScrip, Inc. (Nasdaq: BIOS) today reported fourth quarter 2007 net income of $2.5 million, or $0.06 per diluted share, on revenues of $309.2 million. Fourth quarter EBITDAO (earnings before interest, taxes, depreciation, amortization and option expense) was $5.9 million. Full year 2007 net income was $3.3 million or $0.09 per diluted share on revenues of $1.2 billion. EBITDAO for the full year was $18.9 million.

Chairman and CEO, Richard H. Friedman, stated, “BioScrip’s fourth quarter results are indicative of the successful execution of our strategic initiatives. Our focus on a service driven approach to specialty pharmacy management is resulting in positive outcomes for our customers. This service model is being accepted in the market and differentiates BioScrip from commoditized specialty drug distribution.”

Fourth Quarter Reported Results

Total revenue for the fourth quarter 2007 increased 5.9% to $309.2 million compared to $292.1 million for the same period a year ago. Net income increased $30.6 million to $2.5 million or $0.81 per diluted share. In the fourth quarter of 2006, BioScrip established a non-cash reserve of $25.7 million against its deferred tax assets primarily associated with its net operating loss carry forwards (“NOL”).

Fourth quarter 2007 Specialty Services revenue increased 10.4% to $256.7 million, an increase of $24.2 million over the prior year, primarily due to additional revenues associated with preferred drug distribution arrangements with manufacturers, specialty contracts with payors and Medicare’s Competitive Acquisition Program (“CAP”). As a result of previously reported losses of certain PBM customers, fourth quarter 2007 PBM Services revenue decreased $7.1 million to $52.5 million as compared to the fourth quarter 2006.

Fourth quarter 2007 operating income increased $5.5 million to $3.1 million compared to an operating loss of $2.4 million for the fourth quarter of 2006. The increase is primarily due to higher sales, improved drug acquisition costs, lower bad debt and lower amortization expense partially offset by an increase in employee incentives resulting from the Company’s improved performance.

Year End 2007 Period Results

For the twelve-month period ended December 31, 2007, net income was $3.3 million, or $0.09 per share compared to a net loss of $38.3 million, or $1.03 per share for the same period a year ago. The 2006 financial results include a non-cash reserve associated with the Company’s deferred tax assets discussed above. Revenues for the twelve-month period ended December 31, 2007 totaled $1,197.7 million compared to $1,151.9 million in 2006. The improvement includes an increase in Specialty Services revenue of $107.6

million or 12.4% to $974.2 million for the twelve-month period ended December 31, 2007. Partially offsetting the Specialty Services increase was the previously reported loss of significant PBM customers totaling $61.8 million.

Operating income for the full year 2007 increased $25.1 million to $8.9 million as compared to an operating loss of $16.2 million for the full year of 2006. The increase is primarily due to higher sales, improved drug acquisition costs, lower bad debt and lower amortization expense. These improvements were partially offset by an increase in employee incentives resulting from the Company’s improved performance.

Conference Call Information

BioScrip will host a conference call to discuss fourth quarter and year end 2007 financial results on Tuesday, March 4, at 10:00 am. ET. Interested parties may participate in the conference call by dialing 800-732-5617 (US), or 212-231-2900 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 12:00 p.m. ET on March 4, through 12:00 p.m. ET on March 10, by dialing 800-633-8284 (US), or 402-9797-9140 (International), and entering reservation #21375994. An audio webcast and archive of the conference call will also be available under the investor relations section of the BioScrip website, www.bioscrip.com.

Earnings before interest, taxes, depreciation, amortization, and option expense (“EBITDAO”) is a non-GAAP financial measure as defined under U.S. Securities and Exchange Commission Regulation G. As required by Regulation G, BioScrip has provided on Schedule 2 a reconciliation of this measure to the most comparable GAAP financial measure. The non-GAAP measure presented provides important insight into the ongoing operations and a meaningful benchmark to evidence the Company’s trend towards a return to profitability and improved cash flows.

About BioScrip, Inc.

BioScrip, Inc. (www.bioscrip.com) (Nasdaq: BIOS) is a specialty pharmaceutical healthcare organization that partners with patients, physicians, healthcare payors and pharmaceutical manufacturers to provide access to medications and management solutions to optimize outcomes for chronic and other complex healthcare conditions.

Forward Looking Statements

This press release may contain statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company. 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 such differences are described in the Company’s periodic filings with the Securities and Exchange Commission.

CONTACT:

BioScrip, Inc.
Craig Allison, 914-460-1636
Director, Corporation Communications
callison@bioscrip.com

BIOSCRIP, INC

CONSOLIDATED BALANCE SHEETS
SCHEDULE 1
(in thousands, except for share amounts)

		December 31,				December 31,
		2007				2006
		(unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	—			$	—
Receivables, less allowance for doubtful accounts of $12,083 and $13,774 at December 31, 2007 and December 31, 2006 respectively			128,969				135,139
Inventory			33,598				33,471
Prepaid expenses and other current assets			1,434				2,090
Total current assets			164,001				170,700
Property and equipment, net			11,742				10,409
Other assets and investments			478				681
Goodwill			114,824				114,991
Intangible assets, net			5,777				8,675
Total assets		$	296,822			$	305,456
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Line of credit		$	33,778			$	52,895
Accounts payable			57,342				51,724
Claims payable			5,164				9,548
Amounts due to plan sponsors			4,568				10,280
Accrued expenses and other current liabilities			13,936				9,230
Total current liabilities			114,788				133,677
Deferred taxes			12,754				9,946
Unrecognized tax benefits			3,077				—
Total liabilities			130,619				143,623
Stockholders’ equity
Common stock, $.0001 par value; 75,000,000 shares authorized, 41,331,346 shares issued and 38,250,633 outstanding at December 31, 2007; 40,680,233 shares issued and 37,488,257 outstanding at December 31, 2006,			4				4
Treasury stock, 2,436,642 and 2,247,150 shares at cost			(9,399	)			(8,002	)
Additional paid-in capital			244,186				239,315
Accumulated deficit			(68,588	)			(69,484	)
Total stockholders’ equity			166,203				161,833
Total liabilities and stockholders’ equity		$	296,822			$	305,456

Schedule 2

BIOSCRIP, INC

Reconciliation between GAAP and Non-GAAP Measures
(in thousands)
(unaudited)

		Three Months								Twelve Months
		Ended December 31,								Ended December 31,
		2007				2006				2007				2006
Net Income (loss)		$	2,516			$	(28,035	)		$	3,317			$	(38,289	)
Addback items:
Amortization of intangibles			484				1,639				2,898				6,538
Depreciation			1,081				1,163				4,192				4,316
Net interest			602				920				3,270				3,018
Taxes			(59	)			24,753				2,264				19,030
Stock option expense			1,269				810				3,004				2,529
Earnings before interest, taxes, depreciation amortization and stock option expense (EBITDAO)		$	5,893			$	1,250			$	18,945			$	(2,858	)

Schedule 3

BIOSCRIP, INC

CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)

		Three Months								Twelve Months
		Ended December 31,								Ended December 31,
		2007				2006				2007				2006
Revenue		$	309,196			$	292,125			$	1,197,732			$	1,151,940
Cost of revenue			273,017				261,868				1,060,717				1,033,884
Gross profit			36,180				30,257				137,015				118,056
% of Revenue			11.7	%			10.4	%			11.4	%			10.2	%
Operating expenses
Selling, general and administrative expenses			32,323				27,995				120,147				115,258
Bad debt expense			314				2,985				5,119				12,443
Amortization of intangibles			484				1,639				2,898				6,538
Merger related expenses			—				—				—				58
Total operating expenses			33,121				32,619				128,164				134,297
% of Revenue			10.7	%			11.2	%			10.7	%			11.7	%
Income (loss) from operations			3,059				(2,362	)			8,851				(16,241	)
Interest (expense), net			(602	)			(920	)			(3,270	)			(3,018	)
Income (loss) before income taxes			2,457				(3,282	)			5,581				(19,259	)
Provision for (benefit from) income taxes			(59	)			24,753				2,264				19,030
Net income (loss)		$	2,516			$	(28,035	)		$	3,317			$	(38,289	)
Basic weighted average shares			37,991				37,402				37,647				37,304
Diluted weighted average shares			40,013				37,402				38,491				37,304
Basic net income (loss) per share		$	0.07			$	(0.75	)		$	0.09			$	(1.03	)
Diluted net income (loss) per share		$	0.06			$	(0.75	)		$	0.09			$	(1.03	)