UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K/A

(Amendment No. 1)

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 8, 2017

 

BIOSCRIP, INC.

(Exact name of Registrant as specified in its charter)

 

Delaware		001-11993		05-0489664
(State of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

1600 Broadway, Suite 700, Denver, Colorado		80202
(Address of principal executive offices)		(Zip Code)

  

Registrant’s telephone number, including area code: (720) 697-5200

 

N/A

(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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Explanatory Note

 

BioScrip, Inc. (the “Company”) is filing this Amendment No. 1 on Form 8-K/A to amend the Company’s Form 8-K, originally filed with the Securities and Exchange Commission on August 8, 2017 (the “Original Filing”), to update the guidance reconciliation table included in its earnings release issued on August 8, 2017 and furnished as an original exhibit to the Original Filing.

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 8, 2017, the Company issued a press release reporting its 2017 second quarter financial results (the “Original Earnings Release”), which was furnished as an exhibit to the Company’s Current Report on Form 8-K filed on August 8, 2017. The Company is hereby revising the Original Earnings Release (the “Revised Earnings Release”) to replace the Schedule 5 included therein with a revised schedule that includes “Loss on Extinguishment of Debt” as a line item in the reconciliation table and revises the number of weighted-average diluted shares. No other changes to the Original Earnings Release were made. The Revised Earnings Release replaces the Original Earnings Release and has been re-posted on the Company’s website. A copy of the Revised Earnings Release is furnished as Exhibit 99.1 to this Form 8-K/A.

 

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

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits

 

See the Exhibit Index, which is hereby incorporated by reference.

 

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02 and in Exhibit 99.1 hereto, as it relates to the Company’s financial results for the quarter ended June 30, 2017, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed incorporated by reference into any filing of the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly provided by specific reference in such filing.

 

 

 

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 hereunto duly authorized.

 

		BIOSCRIP, INC.
Date: August 8, 2017				/s/ Kathryn Stalmack
		By:		Kathryn Stalmack
				Senior Vice President, General Counsel and Secretary

 

 

Exhibit Index

 

Exhibit No.		Description
99.1		Revised Press Release dated August 8, 2017

 

 

Exhibit 99.1

 

 

BioScrip Reports Second Quarter 2017 Financial Results

 

-

Net revenue of $218.1 million, including core product mix of 73.1% compared to 60.3% in the prior year

-

Net loss from continuing operations of $28.7 million, compared to $8.3 million in the prior year, reflecting increased non-cash expenses and interest

-

Adjusted EBITDA of $10.0 million, nearly doubling from the first quarter of 2017

-

Operating Cash Flow of $6.5 million, reflecting $23 million of operational and working capital improvements over the prior year

-

Liquidity of $50.5 million, including $40.5 million of cash, compared to $16.0 million at March 31, 2017

-

Restructuring expenses of $3.9 million, primarily costs related to the ongoing optimization of the Company’s workforce

-

The Company reaffirms EBITDA guidance and updates revenue guidance

 

DENVER, CO, August 8, 2017 – BioScrip, Inc. (NASDAQ: BIOS) ("BioScrip" or the "Company"), the largest independent national provider of infusion and home care management solutions, today announced its second quarter 2017 financial results. For the second quarter, the Company reported revenue from continuing operations of $218.1 million, net loss from continuing operations of $28.7 million, and adjusted EBITDA of $10.0 million.

 

“The second quarter of 2017 marks an important milestone for the Company, as our teammates delivered $10 million of adjusted EBITDA, and a year over year operating cash flow improvement of $23 million, driven by core revenue growth and cost and working capital improvements, positioning us to achieve our financial objectives for 2017,” said Daniel E. Greenleaf, President and Chief Executive Officer. “The improvements in EBITDA and operating cash flow, despite Cures Act reimbursement pressures, underscore the progress our team has made on the turnaround to date, and it is only the beginning of the transformation of this organization.”

 

2017 Guidance

 

The Company is reiterating its prior guidance of adjusted EBITDA in the range of $45.0 million to $55.0 million for full-year 2017. The Company is updating its revenue outlook for the year to a range of $815.0 million to $835.0 million, including the impact of the revised UnitedHealthcare contract. Additionally, the Company expects to incur restructuring expenses in a range of $11.0 million to $12.0 million, reflecting the ongoing restructuring activity that took place in the second quarter of 2017, and further expenses anticipated in the second half of 2017 primarily related to the impact of the revised UnitedHealthcare contract.

 

 

Conference Call and Presentation

 

BioScrip will host a conference call and live webcast, August 8, 2017, at 9:00 a.m. Eastern Time, to discuss its second quarter 2017 financial results. Interested parties may participate by dialing 888-372-9592 (US) or by accessing a link on the Company's website at www.bioscrip.com.

 

A replay of the conference call will be available for two weeks after the call's completion by dialing 855-859-2056 (US) and entering conference call ID number 51901836. An audio webcast and archive will also be available for 30 days under the "Investor Relations" section of the Company's website.

 

About BioScrip, Inc.

 

BioScrip, Inc. is the largest independent national provider of infusion and home care management solutions, with approximately 2,500 teammates and nearly 80 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	David Clair
Chief Financial Officer & Treasurer	ICR, Inc.
T:  (720) 697-5200	T:  (646) 277-1266
stephen.deitsch@bioscrip.com	david.clair@icrinc.com

 

Forward-Looking Statements – Safe Harbor

 

This press release includes statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding 2017 guidance, projections of certain measures of the Company's results of operations, projections of future levels of certain charges and expenses, expectations of Home Solutions cost synergies and incremental cost structure improvements and other statements regarding the Company's financial improvement plan and strategy and anticipated effects of the Cures Act and the UnitedHealthcare contract. 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," "outlook," "aim," "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 actual results to differ materially from those in the forward-looking statement include but are not limited to risks associated with: the Company’s ability to successfully integrate the Home Solutions business into its existing businesses; the Company’s ability to grow its core Infusion revenues; the Company's ability to continue to execute its financial improvement plan to reduce operating costs and focus its business on its Infusion Services segment; the Company’s ability to evaluate opportunities for improvement and implement solutions as part of its strategic review process; the Company’s ability to comply with the covenants in its debt agreements or obtain amendments to such covenants; the UnitedHealthcare contract termination, including potential accounting charges and impacts on other contract provisions and their associated revenue; the success of the Company’s initiatives to mitigate the impact of the Cures Act on its business; 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. 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.

 

 

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, except for share amounts)

 

		June 30, 2017				December 31, 2016
ASSETS
Current assets
Cash and cash equivalents		$	40,533			$	9,569
Restricted cash			5,055				-
Receivables, less allowance for doubtful accounts of $45,651 and $44,730
as of June 30, 2017 and December 31, 2016, respectively			103,089				111,811
Inventory			28,822				36,165
Prepaid expenses and other current assets			12,998				18,507
Total current assets			190,497				176,052
Property and equipment, net			30,063				32,535
Goodwill			365,947				365,947
Intangible assets, net			24,672				31,043
Other non-current assets			2,204				2,163
Total assets		$	613,383			$	607,740
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Current portion of long-term debt		$	1,731			$	18,521
Accounts payable			46,381				59,134
Amounts due to plan sponsors			4,825				3,799
Accrued interest			6,736				6,705
Accrued expenses and other current liabilities			43,209				42,191
Total current liabilities			102,882				130,350
Long-term debt, net of current portion			475,674				433,413
Deferred taxes			3,504				2,281
Other non-current liabilities			17,942				1,257
Total liabilities			600,002				567,301
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized;
21,645 shares issued and outstanding as of June 30, 2017 and December 31, 2016;
and $2,754 and $2,603 liquidation preference as of June 30, 2017 and
December 31, 2016, respectively			2,639				2,462
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized;
614,177 shares issued and outstanding as of June 30, 2017 and December 31, 2016;
and $79,858 and $75,491 liquidation preference as of June 30, 2017 and
December 31, 2016, respectively			74,229				69,540
Stockholders' (deficit) equity
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued and
outstanding as of June 30, 2017 and December 31, 2016, respectively			-				-
Common stock, $.0001 par value; 250,000,000 shares authorized; 127,441,893 and
117,682,543 shares issued and outstanding as of June 30, 2017 and
December 31, 2016, respectively			13				12
Additional paid-in capital			628,545				611,844
Accumulated deficit			(692,045	)			(643,419	)
Total stockholders' deficit			(63,487	)			(31,563	)
Total liabilities and stockholders' deficit		$	613,383			$	607,740

 

 

Schedule 2

 

BIOSCRIP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

		Three Months Ended June 30,								Six Months Ending June 30,
		2017				2016				2017				2016
Net revenue		$	218,106			$	232,462			$	435,916			$	470,924
Cost of revenue (excluding depreciation expense)			149,796				168,298				302,022				342,528
Gross profit			68,310				64,164				133,894				128,396
% of revenues			31.3	%			27.6	%			30.7	%			27.3	%
Other operating expenses			42,486				40,619				86,844				80,277
Bad debt expense			6,223				4,279				13,387				11,871
General and administrative expenses			10,025				9,414				19,504				20,465
Restructuring, acquisition, integration, and other expenses, net			3,911				4,291				7,134				6,958
Depreciation and amortization expense			6,789				4,252				13,777				8,790
Interest expense			12,715				9,469				25,459				18,881
Loss on extinguishment of debt			13,453				-				13,453				-
Loss (gain) on dispositions			685				-				685				(939	)
Loss from continuing operations,  before income taxes			(27,977	)			(8,160	)			(46,349	)			(17,907	)
Income tax expense			718				149				1,337				172
Loss from continuing operations, net of income taxes			(28,695	)			(8,309	)			(47,686	)			(18,079	)
(Loss) income from discontinued operations, net of income taxes			(503	)			75				(940	)			308
Net loss		$	(29,198	)		$	(8,234	)		$	(48,626	)		$	(17,771	)
Accrued dividends on preferred stock			(2,303	)			(2,056	)			(4,517	)			(4,054	)
Deemed dividend on preferred stock			(175	)			(173	)			(349	)			(345	)
Loss attributable to common stockholders		$	(31,676	)		$	(10,463	)		$	(53,492	)		$	(22,170	)
Denominator - Basic and Diluted:
Weighted average number of common shares outstanding			121,189				73,186				119,993				70,978
Loss from continuing operations, basic and diluted		$	(0.26	)		$	(0.14	)		$	(0.44	)		$	(0.32	)
Income from discontinued operations, basic and diluted			-				-				(0.01	)			-
Loss per common share, basic and diluted		$	(0.26	)		$	(0.14	)		$	(0.45	)		$	(0.32	)

 

 

Schedule 3

 

BIOSCRIP, INC. AND SUBSIDIARIES

 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES

(in thousands)

 

		Three Months Ended								Six Months Ended
		6/30/2017				6/30/2016				6/30/2017				6/30/2016
Adjusted EBITDA by Segment:
Infusion Services Adjusted EBITDA		$	19,601			$	19,266			$	33,663			$	36,248
Adjusted EBITDA margin %			9.0	%			8.3	%			7.7	%			7.7	%
Corporate Overhead Adjusted EBITDA			(9,592	)			(8,895	)			(18,477	)			(18,472	)
Adjusted EBITDA margin %			(4.4	%)			(3.8	%)			(4.2	%)			(3.9	%)
Consolidated Adjusted EBITDA			10,009				10,371				15,186				17,776
Adjusted EBITDA margin %			4.6	%			4.5	%			3.5	%			3.8	%
Interest expense			(12,715	)			(9,469	)			(25,459	)			(18,881	)
(Loss) gain on dispositions			(685	)			-				(685	)			939
Loss on extinguishment of debt			(13,453	)			-				(13,453	)			-
Income tax expense			(718	)			(149	)			(1,337	)			(172	)
Depreciation and amortization expense			(6,789	)			(4,252	)			(13,777	)			(8,790	)
Stock-based compensation expense			(433	)			(519	)			(1,027	)			(1,993	)
Restructuring, acquisition, integration, and other expenses, net (1)			(3,911	)			(4,291	)			(7,134	)			(6,958	)
Loss from continuing operations, net of income taxes		$	(28,695	)		$	(8,309	)		$	(47,686	)		$	(18,079	)
General and Administrative Expenses on Face of Income Statement:
Corporate overhead adjusted EBITDA		$	(9,592	)		$	(8,895	)		$	(18,477	)		$	(18,472	)
Stock-based compensation (expense)			(433	)			(519	)			(1,027	)			(1,993	)
General and administrative expenses		$	(10,025	)		$	(9,414	)		$	(19,504	)		$	(20,465	)

 

(1) Restructuring, acquisition, integration and other expenses, net include costs associated with restructuring, acquisition, and integration initiatives such as employee severance costs, certain legal and professional fees, redundant wage costs, impacts recorded from the change in contingent consideration obligations, and other costs related to contract terminations and closed locations.                                

 

 

                      Schedule 4

 

BIOSCRIP, INC AND SUBSIDIARIES

CONSOLIDATED CONDENSED CASH FLOWS

(in thousands)

 

		Three Months Ended								Six Months Ended				Three Months Ended								Six Months Ended
		3/31/2017				6/30/2017				6/30/2017				3/31/2016				6/30/2016				6/30/2016
Cash flows from operating activities:
Net loss from continuing operations		$	(18,991	)		$	(28,695	)		$	(47,686	)		$	(9,770	)		$	(8,309	)		$	(18,079	)
Receivables, net of bad debt expense			2,333				6,388				8,721				(4,417	)			3,136				(1,281	)
Inventory			5,616				1,727				7,343				13,867				(3,330	)			10,537
Prepaid expenses and other assets			3,601				1,868				5,469				7,897				(7,575	)			322
Accounts payable			(11,688	)			(1,065	)			(12,753	)			(11,995	)			(4,195	)			(16,190	)
Accrued interest			(1,157	)			1,188				31				(4,630	)			4,438				(192	)
Accrued expenses and other liabilities			244				1,497				1,741				(2,227	)			(851	)			(3,078	)
Non-Cash Adjustments:
Depreciation and amortization			6,988				6,789				13,777				4,538				4,252				8,790
Loss on extinguishment of debt			-				13,453				13,453				-				-				-
Deferred taxes			619				604				1,223				174				178				352
Other Non-Cash			1,839				2,748				4,587				1,589				1,554				3,143
Operating Cash Flow (Use)			(10,596	)			6,502				(4,094	)			(4,974	)			(10,702	)			(15,676	)
Discontinued operations			(437	)			(503	)			(940	)			(5,989	)			76				(5,913	)
Capital expenditures			(1,684	)			(2,608	)			(4,292	)			(2,429	)			(3,037	)			(5,466	)
Investment in restricted cash			(5,132	)			77				(5,055	)			-				27				27
Proceeds from dispositions			-				-				-				1,105				-				1,105
Proceeds from equity offering, net			-				-				-				-				83,267				83,267
Proceeds from priming credit agreement, net of expenses			23,060				-				23,060				-				-				-
Fees attributable to extinguishment of debt			-				(311	)			(311	)			-				-				-
Net proceeds from equity issuance, net of issuance costs			5,052				15,724				20,776				-				-				-
Proceeds from borrowing on long-term debt			563				293,883				294,446				-				-				-
Principal payments of long-term debt			(3,137	)			(233,633	)			(236,770	)			(3,137	)			(3,137	)			(6,274	)
Revolver borrowings (repayments)			(1,000	)			(54,300	)			(55,300	)			8,000				(23,000	)			(15,000	)
Other			(289	)			(267	)			(556	)			(104	)			(118	)			(222	)
Total All Cash Flow		$	6,400			$	24,564			$	30,964			$	(7,528	)		$	43,376			$	35,848

 

 

 Schedule 5

 

BIOSCRIP, INC AND SUBSIDIARIES

 FULL YEAR 2017 GUIDANCE

(dollars in millions, except EPS)

 

		Low End				High End
		of Range				of Range
Revenues		$	815.0			$	835.0
Adjusted EBITDA			45.0				55.0
adjusted ebitda margin			4.9	%			5.8	%
Stock Compensation			3.0				2.5
Depreciation & Amortization			27.0				25.0
Interest Expense, net			52.0				49.0
Restructuring Costs			12.0				11.0
Loss on Extinguishment of Debt			13.5				13.5
Income Tax Expense			3.0				2.0
Preferred Stock Dividends			9.4				9.4
Net Loss - Continuing Ops		$	(74.9	)		$	(57.4	)
Diluted Loss Per Common Share		$	(0.60	)		$	(0.46	)
weighted-average diluted shares			124,000				124,000

 

 

Schedule 6

 

BIOSCRIP, INC. AND SUBSIDIARIES

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

		Three Months Ended								Six Months Ended
		3/31/2017				6/30/2017				6/30/2017
Net revenue		$	217,810			$	218,106			$	435,916
Cost of revenue (excluding depreciation expense)			152,226				149,796				302,022
Gross profit			65,584				68,310				133,894
% of revenues			30.1	%			31.3	%			30.7	%
Other operating expenses			44,358				42,486				86,844
Bad debt expense			7,164				6,223				13,387
General and administrative expenses			9,479				10,025				19,504
Restructuring, acquisition, integration, and other expenses, net			3,223				3,911				7,134
Depreciation and amortization expense			6,988				6,789				13,777
Interest expense, net			12,744				12,715				25,459
Loss on extinguishment of debt			-				13,453				13,453
Loss on dispositions			-				685				685
Loss from continuing operations,  before income taxes			(18,372	)			(27,977	)			(46,349	)
Income tax expense			619				718				1,337
Loss from continuing operations, net of income taxes			(18,991	)			(28,695	)			(47,686	)
Loss from discontinued operations, net of income taxes			(437	)			(503	)			(940	)
Net loss		$	(19,428	)		$	(29,198	)		$	(48,626	)
Accrued dividends on preferred stock			(2,214	)			(2,303	)			(4,517	)
Deemed dividends on preferred stock			(174	)			(175	)			(349	)
Loss attributable to common stockholders		$	(21,816	)		$	(31,676	)		$	(53,492	)
Loss per common share:
Denominator - Basic and Diluted:
Weighted average number of common shares outstanding			118,783				121,189				119,993
Loss from continuing operations, basic and diluted		$	(0.18	)		$	(0.26	)		$	(0.44	)
Income from discontinued operations, basic and diluted			-				-				(0.01	)
Net loss per common share, basic and diluted		$	(0.18	)		$	(0.26	)		$	(0.45	)

 

 

Schedule 7

 

BIOSCRIP, INC. AND SUBSIDIARIES

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

             

		Three Months Ended																Twelve Months Ended
		3/31/2016				6/30/2016				9/30/2016				12/31/2016				12/31/2016
Net revenue		$	238,462			$	232,462			$	224,542			$	240,123			$	935,589
Cost of revenue (excluding depreciation expense)			174,230				168,298				161,957				165,473				669,958
Gross profit			64,232				64,164				62,585				74,650				265,631
% of revenues			26.9	%			27.6	%			27.9	%			31.1	%			28.4	%
Other operating expenses			39,658				40,619				42,729				47,712				170,718
Bad debt expense			7,592				4,279				7,727				7,201				26,799
General and administrative expenses			11,051				9,414				9,948				8,812				39,225
Change in fair value of equity linked liabilities			-				-				-				(10,450	)			(10,450	)
Restructuring, acquisition, integration, and other expenses, net			2,667				4,291				2,368				6,533				15,859
Depreciation and amortization expense			4,538				4,252				4,166				8,595				21,551
Interest expense, net			9,412				9,469				9,331				10,023				38,235
(Gain) on dispositions			(939	)			-				(3,015	)			-				(3,954	)
Loss from continuing operations,  before income taxes			(9,747	)			(8,160	)			(10,669	)			(3,776	)			(32,352	)
Income tax expense			23				149				421				1,422				2,015
Loss from continuing operations, net of income taxes			(9,770	)			(8,309	)			(11,090	)			(5,198	)			(34,367	)
Income (loss) from discontinued operations, net of income taxes			233				75				(174	)			(7,273	)			(7,139	)
Net loss		$	(9,537	)		$	(8,234	)		$	(11,264	)		$	(12,471	)		$	(41,506	)
Accrued dividends on preferred stock			(1,998	)			(2,056	)			(2,138	)			(2,200	)			(8,392	)
Deemed dividends on preferred stock			(172	)			(173	)			(173	)			(174	)			(692	)
Loss attributable to common stockholders		$	(11,707	)		$	(10,463	)		$	(13,575	)		$	(14,845	)		$	(50,590	)
Loss per common share:
Denominator - Basic and Diluted:
Weighted average number of common shares outstanding			68,771				73,186				114,826				117,683				93,740
Loss from continuing operations, basic and diluted		$	(0.17	)		$	(0.14	)		$	(0.12	)		$	(0.06	)		$	(0.46	)
Income from discontinued operations, basic and diluted			-				-				-				(0.06	)			(0.08	)
Net loss per common share, basic and diluted		$	(0.17	)		$	(0.14	)		$	(0.12	)		$	(0.12	)		$	(0.54	)