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): April 30, 2009
BioScrip,
Inc.
(Exact
Name of Registrant as Specified in its Charter)
|
Delaware
|
0-28740
|
05-0489664
|
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
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
________________________________________________________________________
(Former
Name or Former Address, if Changed Since Last Report)
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:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240-14d-2(b)).
¨ 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 April
30, 2009, BioScrip, Inc. issued a press release reporting its earnings for the
quarter ended March 31, 2009. 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 April 30, 2009
2
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.
|
Date:
April 30, 2009
|
BIOSCRIP,
INC.
|
|
|
By:
/s/
Barry A. Posner
Barry A. Posner, Executive Vice President
Secretary and General Counsel
|
3
NEWS
RELEASE
Contact:
Stanley
G. Rosenbaum
Executive
Vice President and Chief Financial Officer
Tel:
952-979-3768
srosenbaum@bioscrip.com
Lisa M.
Wilson
In-Site
Communications
Tel:
(917) 543-9932
lwilson@insitecony.com
FOR
IMMEDIATE RELEASE
BIOSCRIP,
INC. REPORTS 2009 FIRST QUARTER EARNINGS OF $0.08 PER SHARE
ELMSFORD,
N.Y.--(BUSINESS WIRE)—April 30, 2009—BioScrip, Inc. (Nasdaq: BIOS) today
announced first quarter net income of $3.3 million, or $0.08 per diluted share,
on revenue of $325.7 million. These results compare to a net loss of
$0.5 million, or $0.01 per share, on revenue of $327.5 million for the first
quarter of 2008. First quarter 2009 EBITDAO was $6.2 million compared
to $2.7 million for the same period a year ago.
Richard
H. Friedman, BioScrip’s Chairman and Chief Executive Officer, stated, "During
the quarter, we strengthened our management organization, delivered on margin
expansion, met our annual cost reduction target and increased our operating cash
flows. Operationally we continue to expand our national footprint as
well as our bioscripcare™ clinical management programs which are built upon our
‘Center of Excellence’ model.”
Results
of Operations
|
First
Quarter Highlights
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||||||||||||
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($'s
in Millions)
|
1st Quarter 2009 Actual
|
1st Quarter 2008 Actual
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% Change
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|||||||||
|
Revenues
|
$ | 325.7 | $ | 327.5 | -0.5 | % | ||||||
|
Gross
Margin
|
$ | 36.0 | $ | 32.4 | 11.1 | % | ||||||
|
Gross
Margin %
|
11.0 | % | 9.9 | % | ||||||||
|
Operating
Expense
|
$ | 31.7 | $ | 32.2 | -1.6 | % | ||||||
|
Operating
Expense Percent
|
9.7 | % | 9.8 | % | ||||||||
|
Operating
Profit
|
$ | 4.3 | $ | 0.2 | ||||||||
|
EBITDAO
|
$ | 6.2 | $ | 2.7 | 129.6 | % | ||||||
Revenue
for the first quarter of 2009 totaled $325.7 million compared to $327.5 million
for the same period a year ago. Excluding the impact of the Medicare
Competitive Acquisition Program (“CAP”) and the United Health Group (“UHG”)
organ transplant and HIV/AIDS contract, first quarter 2009 revenues grew 6.3%
over the comparable period in 2008. The increase was due to the
Company’s focus on higher priced disease therapies including oncology, multiple
sclerosis and immunology.
Gross
profit for the first quarter of 2009 was $36.0 million compared to $32.4 million
for the first quarter of 2008. First quarter 2009 gross margin was
11.0%, compared to 9.9% for the first quarter of 2008.
First
quarter 2009 operating income was $4.3 million compared to $0.2 million for the
first quarter of 2008. This increase was primarily due to improved product mix,
the exiting of CAP and cost reduction efforts, partially offset by a return to
normalized bad debt expense.
2
Balance
Sheet Highlights
Accounts
receivable days sales outstanding for the quarter ended March 31, 2009 were 44.3
days compared to 43.8 days for the fourth quarter of 2008. The
increase in DSO is primarily due to slower payments from state Medicaid programs
over the past six months. Inventory days on hand for the quarter
ended March 31, 2009 were 12.3 days versus 11.8 days for the fourth quarter of
2008. Days’ inventory on hand increased in the first quarter as a
result of strategic investments in inventory and the transition to higher cost
disease therapies.
Average
borrowings during the first quarter were approximately $33.0 million, an
improvement of $8.0 million over the fourth quarter of
2008 BioScrip’s total credit line is $85.0
million.
Conference
Call
BioScrip
will host a conference call to discuss its first quarter 2009 financial results
on Thursday, April 30, at 9:00 a.m. Eastern Time. Interested parties may
participate in the conference call by dialing 866-740-0378 (US), or 706-679-9096
(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. Eastern Time on Thursday,
April 30, through 12:00 p.m. Eastern Time on May 14, by dialing 800-633-8284
(US), or 402-977-9140 (International), and entering reservation #21422586. An
audio web cast and archive of the conference call will also be available under
the investor relations section of the BioScrip website at
www.bioscrip.com.
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 health care
conditions.
3
Forward
Looking Statements-Safe Harbor
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.
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 3 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 continuing profitability trend.
###
TABLES TO
FOLLOW
4
|
Schedule
1
|
||||||||
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BIOSCRIP,
INC
|
||||||||
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CONSOLIDATED
BALANCE SHEETS
|
||||||||
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(in
thousands, except for share amounts)
|
||||||||
|
March
31,
|
December
31,
|
|||||||
|
2009
|
2008
|
|||||||
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ASSETS
|
(unaudited)
|
|||||||
|
Current
assets
|
||||||||
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Cash
and cash equivalents
|
$ | - | $ | - | ||||
|
Receivables,
less allowance for doubtful accounts of $9,866 and $11,629
|
||||||||
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at
March 31, 2009 and December 31, 2008, respectively
|
144,612 | 158,649 | ||||||
|
Inventory
|
39,040 | 45,227 | ||||||
|
Prepaid
expenses and other current assets
|
3,210 | 2,766 | ||||||
|
Total
current assets
|
186,862 | 206,642 | ||||||
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Property
and equipment, net
|
14,714 | 14,748 | ||||||
|
Other
assets
|
1,103 | 1,069 | ||||||
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Goodwill
|
24,498 | 24,498 | ||||||
|
Total
assets
|
$ | 227,177 | $ | 246,957 | ||||
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LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities
|
||||||||
|
Line
of credit
|
$ | 36,114 | $ | 50,411 | ||||
|
Accounts
payable
|
67,341 | 76,936 | ||||||
|
Claims
payable
|
4,891 | 5,230 | ||||||
|
Amounts
due to plan sponsors
|
5,699 | 5,646 | ||||||
|
Accrued
expenses and other current liabilities
|
9,607 | 9,575 | ||||||
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Total
current liabilities
|
123,652 | 147,798 | ||||||
|
Deferred
taxes
|
730 | 533 | ||||||
|
Income
taxes payable
|
3,229 | 3,089 | ||||||
|
Total
liabilities
|
127,611 | 151,420 | ||||||
|
Stockholders'
equity
|
||||||||
|
Common
stock, $.0001 par value; 75,000,000 shares authorized; shares
issued:
|
||||||||
|
41,763,194,
and 41,622,629, respectively; shares outstanding; 38,718,278
and
|
||||||||
|
38,691,356,
respectively
|
4 | 4 | ||||||
|
Treasury
stock, shares at cost: 2,642,260 and 2,624,186,
respectively
|
(10,320 | ) | (10,288 | ) | ||||
|
Additional
paid-in capital
|
249,217 | 248,441 | ||||||
|
Accumulated
deficit
|
(139,335 | ) | (142,620 | ) | ||||
|
Total
stockholders' equity
|
99,566 | 95,537 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 227,177 | $ | 246,957 | ||||
5
|
Schedule
2
|
|
|||||||
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BIOSCRIP,
INC
|
||||||||
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CONSOLIDATED
STATEMENTS OF OPERATIONS (1)
|
||||||||
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(in
thousands, except per share amounts)
|
||||||||
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(unaudited)
|
||||||||
|
Three
Months Ended
|
||||||||
|
March
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Revenue
|
$ | 325,749 | $ | 327,471 | ||||
|
Cost
of revenue
|
289,759 | 295,099 | ||||||
|
Gross
profit
|
35,990 | 32,372 | ||||||
|
%
of Revenue
|
11.0 | % | 9.9 | % | ||||
|
Operating
expenses
|
||||||||
|
Selling,
general and administrative expenses
|
30,327 | 31,537 | ||||||
|
Bad
debt expense
|
1,380 | 650 | ||||||
|
Total
operating expense
|
31,707 | 32,187 | ||||||
|
%
of Revenue
|
9.7 | % | 9.8 | % | ||||
|
Income
from operations
|
4,283 | 185 | ||||||
|
Interest
expense, net
|
(594 | ) | (585 | ) | ||||
|
Income
(loss) before income taxes
|
3,689 | (400 | ) | |||||
|
Tax
provision
|
404 | 77 | ||||||
|
Net
income (loss)
|
$ | 3,285 | $ | (477 | ) | |||
|
Basic
weighted average shares
|
38,709 | 38,177 | ||||||
|
Diluted
weighted average shares
|
38,787 | 38,177 | ||||||
|
Basic
net income (loss) per share
|
$ | 0.08 | $ | (0.01 | ) | |||
|
Diluted
net income (loss) per share
|
$ | 0.08 | $ | (0.01 | ) | |||
|
(1) Certain
amounts have been reclassified to conform to the current presentation.
Such classifications
have had no impact on income from operations or net
income.
|
||||||||
|
|
||||||||
6
|
Schedule
3
|
||||||||
|
BIOSCRIP,
INC
|
||||||||
|
Reconciliation
between GAAP and Non-GAAP Measures
|
||||||||
|
(in
thousands, except per share amounts)
|
||||||||
|
(unaudited)
|
||||||||
|
Three
Months
|
||||||||
|
Ended
March 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Net
income (loss)
|
$ | 3,285 | $ | (477 | ) | |||
|
Addback
items:
|
||||||||
|
Depreciation
& Amortization
|
1,111 | 1,552 | ||||||
|
Net
interest
|
594 | 585 | ||||||
|
Taxes
|
404 | 77 | ||||||
|
Stock-based
compensation expense
|
776 | 957 | ||||||
|
Earnings
before interest, taxes, depreciation, amortization and
|
||||||||
|
share-based
compensation expense (EBITDAO)
|
$ | 6,170 | $ | 2,694 | ||||
7