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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): November 2, 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 November 2, 2017 (the “Original Filing”), to update the guidance reconciliation table included in its earnings release issued on November 2, 2017 and furnished as an original exhibit to the Original Filing.

 

Item 2.02. Results of Operations and Financial Condition.

 

On November 2, 2017, the Company issued a press release reporting its 2017 third 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 November 2, 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. 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. No other changes to the Original Earnings Release were made.

 

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

 

Exhibit No.   Description
99.1    Revised Press Release dated November 2, 2017

 

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 September 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: November 2, 2017       /s/ Kathryn Stalmack     
    By:   Kathryn Stalmack  
       

Senior Vice President, General Counsel and Secretary 

 

 

 

 

 

 

 

Exhibit 99.1

 

 

 

 

 

 

BioScrip Reports Third Quarter 2017 Financial Results

 

-Net revenue of $198.7 million, including core product mix of 75.0%, compared to 65.8% in the prior year
-Net revenue and adjusted EBITDA reduced $10.0 million and $3.0 million, respectively, due to sales disruption from Hurricane Irma, Hurricane Harvey, and completion of the UnitedHealthcare contract transition
-Net loss from continuing operations of $12.4 million, compared to $11.1 million in the prior year
-Adjusted EBITDA of $13.0 million, more than three times the prior year, driven by a 590 basis point improvement in gross profit margin and a $4.8 million reduction in operating expenses
-Operating cash use of $0.3 million, reflecting $15.8 million of interest, including $8.9 million of bi-annual bond interest payments, and $19.6 million of operational and working capital improvements over the prior year
-Discontinued operations cash use of $5.6 million, inclusive of settlement payment accrued in the fourth quarter of 2016
-Liquidity of $43.0 million, including $33.0 million of cash
-Full year revenue guidance updated to $805 million to $810 million and full year adjusted EBITDA guidance updated to $42 million to $44 million

 

DENVER, CO, November 2, 2017 – BioScrip, Inc. (NASDAQ: BIOS) ("BioScrip" or the "Company"), the largest independent national provider of infusion and home care management solutions, today announced its third quarter 2017 financial results. For the third quarter, the Company reported revenue from continuing operations of $198.7 million, net loss from continuing operations of $12.4 million, and adjusted EBITDA of $13.0 million.

 

“BioScrip delivered adjusted EBITDA of $13.0 million during the third quarter of 2017, while completing the UnitedHealthcare contract transition and enduring disruption from both Hurricane Harvey and Hurricane Irma, which impacted 12 of our branches,” said Daniel E. Greenleaf, President and Chief Executive Officer. “I am extremely proud of the significant progress the team has made on the turnaround plan since I joined the company just over a year ago. The turnaround plan is on schedule, driven by success in our CORE initiatives which has driven much improved and sustainable profitability and cash flow. With the UnitedHealthcare contract transition complete, we look forward to Core revenue acceleration.”

 

 

 

 

2017 Guidance

 

The Company has updated its revenue guidance for the full year 2017 to a range of $805.0 million to $810.0 million, reflecting the disruption from the hurricanes and the UnitedHealthcare contract transition during the third quarter, and the resulting lower patient census to begin the fourth quarter. The Company has also updated its adjusted EBITDA guidance to a range of $42.0 million to $44.0 million for full-year 2017, reflecting the third quarter results and the impact of updated revenue guidance for 2017. The Company expects to incur restructuring expenses in a range of $11.5 million to $12.0 million in 2017.

 

Conference Call and Presentation

 

BioScrip will host a conference call and live webcast, November 2, 2017, at 9:00 a.m. Eastern Time, to discuss its third quarter 2017 financial results. Interested parties may participate by dialing 888-372-9592 (US) or by accessing a link under the "Investors" section on the Company's website at www.bioscrip.com.

 

A replay of the conference call will be available two hours after the call's completion by dialing 855-859-2056 (US) and entering conference call ID number 1115410. An audio webcast and archive will also be available two hours after the call’s completion under the “Investors" 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 2,200 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)
(unaudited)

 

   September 30, 2017   December 31, 2016 
         
ASSETS          
Current assets          
Cash and cash equivalents  $33,013   $9,569 
Restricted cash   4,950    - 
Receivables, less allowance for doubtful accounts of $46,820 and $44,730          
as of September 30, 2017 and December 31, 2016, respectively   89,215    111,811 
Inventory   27,775    36,165 
Prepaid expenses and other current assets   15,222    18,507 
Total current assets   170,175    176,052 
Property and equipment, net   28,726    32,535 
Goodwill   367,198    365,947 
Intangible assets, net   21,734    31,043 
Other non-current assets   2,415    2,163 
Total assets  $590,248   $607,740 
LIABILITIES AND STOCKHOLDERS' DEFICIT          
Current liabilities          
Current portion of long-term debt  $1,828   $18,521 
Accounts payable   42,691    59,134 
Amounts due to plan sponsors   4,890    3,799 
Accrued interest   3,198    6,705 
Accrued expenses and other current liabilities   36,419    42,191 
Total current liabilities   89,026    130,350 
Long-term debt, net of current portion   476,753    433,413 
Deferred taxes   4,150    2,281 
Other non-current liabilities   18,879    1,257 
Total liabilities   588,808    567,301 
           
Series A convertible preferred stock, $.0001 par value; 825,000 shares authorized;          
21,645 shares issued and outstanding as of September 30, 2017 and December 31, 2016;          
and $2,833 and $2,603 liquidation preference as of September 30, 2017 and          
December 31, 2016, respectively   2,732    2,462 
Series C convertible preferred stock, $.0001 par value; 625,000 shares authorized;          
614,177 shares issued and outstanding as of September 30, 2017 and December 31, 2016;          
and $82,173 and $75,491 liquidation preference as of September 30, 2017 and          
December 31, 2016, respectively   76,706    69,540 
Stockholders' (deficit) equity          
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued and          
outstanding as of September 30, 2017 and December 31, 2016, respectively   -    - 
Common stock, $.0001 par value; 250,000,000 shares authorized; 127,520,628 and          
117,682,543 shares issued and outstanding as of September 30, 2017 and          
December 31, 2016, respectively   13    12 
Treasury stock, 5,106 and no shares outstanding as of September 30, 2017 and          
December 31, 2016, respectively   (16)   - 
Additional paid-in capital   626,567    611,844 
Accumulated deficit   (704,562)   (643,419)
Total stockholders' deficit   (77,998)   (31,563)
Total liabilities and stockholders' deficit  $590,248   $607,740 

 

 

 

Schedule 2
BIOSCRIP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 

   Three Months Ended September 30,   Nine Months Ending September 30, 
   2017   2016   2017   2016 
                 
Net revenue  $198,692   $224,542   $634,608   $695,466 
Cost of revenue (excluding depreciation expense)   131,516    161,957    433,538    504,485 
Gross profit   67,176    62,585    201,070    190,981 
      % of revenues   33.8%   27.9%   31.7%   27.5%
                     
Other operating expenses   38,325    42,729    125,169    123,006 
Bad debt expense   6,600    7,727    19,987    19,598 
General and administrative expenses   9,784    9,948    29,287    30,413 
Restructuring, acquisition, integration, and other expenses, net   4,037    2,368    11,171    9,326 
Change in fair value of equity linked liabilities   1,080    -    1,080    - 
Depreciation and amortization expense   6,552    4,166    20,329    12,956 
Interest expense   13,175    9,331    38,635    28,212 
Loss on extinguishment of debt   -    -    13,453    - 
(Gain) loss on dispositions   (33)   (3,015)   652    (3,954)
Loss from continuing operations,  before income taxes   (12,344)   (10,669)   (58,693)   (28,576)
Income tax expense   60    421    1,397    593 
Loss from continuing operations, net of income taxes   (12,404)   (11,090)   (60,090)   (29,169)
(Loss) income from discontinued operations, net of income taxes   (113)   (174)   (1,053)   134 
Net loss  $(12,517)  $(11,264)  $(61,143)  $(29,035)
Accrued dividends on preferred stock   (2,394)   (2,138)   (6,911)   (6,192)
Deemed dividend on preferred stock   (175)   (173)   (525)   (518)
Loss attributable to common stockholders  $(15,086)  $(13,575)  $(68,579)  $(35,745)
                     
 Denominator - Basic and Diluted:                    
 Weighted average number of common shares outstanding   127,488    114,826    122,519    85,701 
                     
Loss from continuing operations, basic and diluted  $(0.12)  $(0.12)  $(0.55)  $(0.42)
Income from discontinued operations, basic and diluted   -    -    (0.01)   - 
Loss per common share, basic and diluted  $(0.12)  $(0.12)  $(0.56)  $(0.42)

 

 

 

Schedule 3
BIOSCRIP, INC. AND SUBSIDIARIES
 QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)

 

   Three Months Ended   Nine Months Ended 
    9/30/2017    9/30/2016    9/30/2017    9/30/2016 
                     
Loss from continuing operations, net of income taxes   (12,404)   (11,090)   (60,090)   (29,169)
                     
Interest expense   (13,175)   (9,331)   (38,635)   (28,212)
Change in fair value of equity linked liabilities   (1,080)   -    (1,080)   - 
Gain (loss) on dispositions   33    3,015    (652)   3,954 
Loss on extinguishment of debt   -    -    (13,453)   - 
Income tax expense   (60)   (421)   (1,397)   (593)
Depreciation and amortization expense   (6,552)   (4,166)   (20,329)   (12,956)
Stock-based compensation expense   (545)   (1,358)   (1,573)   (3,347)
Restructuring, acquisition, integration, and other expenses, net (1)   (4,037)   (2,368)   (11,171)   (9,326)
Consolidated Adjusted EBITDA  $13,012   $3,539   $28,200   $21,311 

 

(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)
(unaudited)

 

   Three Months Ended   Nine Months Ended   Three Months Ended   Nine Months Ended 
   3/31/2017   6/30/2017   9/30/2017   9/30/2017   3/31/2016   6/30/2016   9/30/2016   9/30/2016 
Cash flows from operating activities:                                        
Net loss from continuing operations  $(18,991)  $(28,695)  $(12,404)  $(60,090)  $(9,770)  $(8,309)  $(11,090)  $(29,169)
Receivables, net of bad debt expense   2,333    6,388    13,875    22,596    (4,417)   3,136    8,001    6,720 
Inventory   5,616    1,727    (346)   6,997    13,867    (3,330)   2,265    12,802 
Prepaid expenses and other assets   3,601    1,868    (2,436)   3,033    7,897    (7,575)   8,839    9,161 
Accounts payable   (11,688)   (1,065)   (4,539)   (17,292)   (11,995)   (4,195)   (15,058)   (31,248)
Accrued interest   (1,157)   1,188    (3,538)   (3,507)   (4,630)   4,438    (4,437)   (4,629)
Accrued expenses and other liabilities   244    1,497    (1,389)   352    (2,227)   (851)   (4,302)   (7,380)
Non-Cash Adjustments:                                        
Depreciation and amortization   6,988    6,789    6,552    20,329    4,538    4,252    4,166    12,956 
Loss on extinguishment of debt   -    13,453    -    13,453    -    -    -    - 
Deferred taxes   619    604    646    1,869    174    178    184    536 
Other Non-Cash   1,839    2,748    3,330    7,917    1,589    1,554    (5,342)   (2,199)
Operating Cash Flow (Use)   (10,596)   6,502    (249)   (4,343)   (4,974)   (10,702)   (16,774)   (32,450)
Discontinued operations   (437)   (503)   (5,613)   (6,553)   (5,989)   76    (175)   (6,088)
Cash consideration paid for acquisition   -    -    -    -    -    -    (67,516)   (67,516)
Capital expenditures   (1,684)   (2,608)   (753)   (5,045)   (2,429)   (3,037)   (2,578)   (8,044)
Investment in restricted cash   (5,132)   77    105    (4,950)   -    27    (27)   - 
Proceeds from dispositions   -    -    -    -    1,105    -    3,072    4,177 
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)   (669)   (980)   -    -    -    - 
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)   (3,137)   (9,411)
Revolver borrowings (repayments)   (1,000)   (54,300)   -    (55,300)   8,000    (23,000)   39,000    24,000 
Other   (289)   (267)   (341)   (897)   (104)   (118)   (455)   (677)
Total All Cash Flow  $6,400   $24,564   $(7,520)  $23,444   $(7,528)  $43,376   $(48,590)  $(12,742)

 

 

 

 Schedule 5 
       
BIOSCRIP, INC AND SUBSIDIARIES
 FULL YEAR 2017 GUIDANCE 
(dollars in millions, except EPS)

 

   Low End   High End 
   of Range   of Range 
         
Revenues  $805.0   $810.0 
           
Net Loss - Continuing Ops   (80.9)   (73.4)
           
Stock Compensation   2.5    2.0 
Depreciation & Amortization   27.0    25.0 
Interest Expense, net   53.0    52.0 
Restructuring Costs   12.0    11.5 
Change in Fair Value of Equity Linked Liabilities   2.5    2.0 
Loss on Extinguishment of Debt   13.5    13.5 
Income Tax Expense   3.0    2.0 
Preferred Stock Dividends   9.4    9.4 
         Adjusted EBITDA  $42.0   $44.0 
            adjusted ebitda margin   5.2%   5.4%
           
Diluted Loss Per Common Share  $(0.66)  $(0.60)
           
weighted-average diluted shares   123,000    123,000 

 

 

 

Schedule 6
BIOSCRIP, INC. AND SUBSIDIARIES
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 

   Three Months Ended   Nine Months Ended 
   3/31/2017   6/30/2017   9/30/2017   9/30/2017 
                 
Net revenue  $217,810   $218,106   $198,692   $634,608 
Cost of revenue (excluding depreciation expense)   152,226    149,796    131,516    433,538 
Gross profit   65,584    68,310    67,176    201,070 
       % of revenues   30.1%   31.3%   33.8%   31.7%
                     
Other operating expenses   44,358    42,486    38,325    125,169 
Bad debt expense   7,164    6,223    6,600    19,987 
General and administrative expenses   9,478    10,025    9,784    29,287 
Restructuring, acquisition, integration, and other expenses, net   3,223    3,911    4,037    11,171 
Change in fair value of equity linked liabilities   -    -    1,080    1,080 
Depreciation and amortization expense   6,988    6,789    6,552    20,329 
Interest expense, net   12,745    12,715    13,175    38,635 
Loss on extinguishment of debt   -    13,453    -    13,453 
Loss on dispositions   -    685    (33)   652 
Loss from continuing operations,  before income taxes   (18,372)   (27,977)   (12,344)   (58,693)
Income tax expense   619    718    60    1,397 
Loss from continuing operations, net of income taxes   (18,991)   (28,695)   (12,404)   (60,090)
Loss from discontinued operations, net of income taxes   (437)   (503)   (113)   (1,053)
Net loss  $(19,428)  $(29,198)  $(12,517)  $(61,143)
Accrued dividends on preferred stock   (2,214)   (2,303)   (2,394)   (6,911)
Deemed dividends on preferred stock   (175)   (175)   (175)   (525)
Loss attributable to common stockholders  $(21,817)  $(31,676)  $(15,086)  $(68,579)
                     
Loss per common share:                    
 Denominator - Basic and Diluted:                    
 Weighted average number of common shares outstanding   118,783    121,189    127,488    122,519 
                     
Loss from continuing operations, basic and diluted  $(0.18)  $(0.26)  $(0.12)  $(0.55)
Income from discontinued operations, basic and diluted   -    -    -    (0.01)
Net loss per common share, basic and diluted  $(0.18)  $(0.26)  $(0.12)  $(0.56)

 

 

 

Schedule 7
BIOSCRIP, INC. AND SUBSIDIARIES
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 

   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)