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): July 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 July 30, 2009, BioScrip, Inc. issued a press release reporting its financial results for the three and six months ended June 30, 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.
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Item 9.01 |
Financial Statements and Exhibits. |
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(c) Exhibits |
The following information is furnished as an exhibit to this Current Report: |
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Exhibit No. |
Description of Exhibit |
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99.1 |
Press Release dated July 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.
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Date: July 30, 2009 |
BIOSCRIP, INC.
| |
|
By: |
/s/ Barry A. Posner
Barry A. Posner, Executive Vice President | |
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
BIOSCRIP, INC. REPORTS SECOND QUARTER EARNINGS OF $0.11 PER SHARE
ELMSFORD, N.Y.--(BUSINESS WIRE)—July 30, 2009—BioScrip, Inc. (Nasdaq: BIOS) today announced second quarter net income of $4.4 million, or $0.11 per diluted share, on revenues of $328.7 million. These results compare to net income of $1.6 million, or $0.04 per diluted share, on revenues of $348.4 million for the second
quarter of 2008. Second quarter 2009 EBITDAO was $7.0 million compared to $5.9 million for the same period a year ago.
Richard H. Friedman, BioScrip’s Chairman and Chief Executive Officer, stated, "We are pleased with our overall performance. These results reflect the successful execution of our strategy to deliver improved operating margins. The strength of our outcomes-based management and clinical programs positions BioScrip well for
the future.”
Results of Operations
Revenue for the second quarter of 2009 totaled $328.7 million compared to $348.4 million for the same period a year ago. Excluding the impact of the terminated Medicare Competitive Acquisition Program (“CAP”) and the United Health Group (“UHG”) organ transplant and HIV/AIDS contracts, second quarter 2009
revenues grew 8.0% over the comparable period in 2008. The increase was due primarily to a greater number of patients served within the Company’s oncology, multiple sclerosis and immunology therapies.
Gross profit for the second quarter of 2009 was $38.4 million, compared to $35.7 million for the second quarter of 2008. Reported second quarter 2009 gross margin was 11.7%, compared to 10.3% for the second quarter of 2008. The increase in gross margin in the second quarter of 2009 was the result of improved product
mix, the elimination of lower margin business and improved purchasing. Excluding the impact of the terminated contracts, the gross margin for the second quarter of 2008 was 11.3%.
Second quarter 2009 operating profit was $5.2 million compared to $3.4 million for the second quarter of 2008. This increase was primarily due to improved product mix, cost containment efforts relating to fixed expenses, offset by higher variable costs, and a return to normalized bad debt expense.
Revenue for the six months ended June 30, 2009 totaled $654.5 million compared to $675.9 million for the comparable period a year ago. Excluding the impact of the terminated contracts, second quarter 2009 revenues grew 7.2% over the comparable period in 2008. The increase was due primarily to a greater number of patients
served within the Company’s oncology, multiple sclerosis and immunology therapies.
Gross profit for the six months ended June 30, 2009 was $74.4 million compared to $68.1 million for the second quarter of 2008. Six month reported 2009 gross margin was 11.4%, compared to 10.1% for the comparable period of 2008. The increase in gross margin for the year was the result of improved product
mix, the elimination of lower margin business and improved purchasing. Excluding the impact of the terminated contracts, the gross margin for the six month period of 2009 and 2008 was 11.5% and 11.1%, respectively.
Operating profit for the six months ended June 30, 2009 was $9.5 million compared to $3.6 million for the comparable period of 2008. This increase was primarily due to improved product mix, cost containment efforts relating to fixed expenses, partially offset by higher variable costs and a return to a normalized bad debt expense.
Conference Call
BioScrip will host a conference call to discuss its second quarter 2009 financial results on Thursday, July 30, at 9:00 a.m. Eastern Time. Interested parties may participate in the conference call by dialing 800-768-5109 (US), or 212-231-2906 (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, July 30, through 12:00 p.m. Eastern Time on August 13, by dialing 800-633-8284 (US), or 402-977-9140 (International), and entering reservation number 21431976. 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 payers and pharmaceutical manufacturers to provide access to medications and management solutions to optimize outcomes for chronic and other complex health care conditions.
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
1
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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) |
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June 30, |
December 31, |
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2009 |
2008 |
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ASSETS |
(unaudited) |
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Current assets |
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Cash and cash equivalents |
$ | - | $ | - | ||||
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Receivables, less allowance for doubtful accounts of $9,681 and $11,629 |
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at June 30, 2009 and December 31, 2008, respectively |
137,214 | 158,649 | ||||||
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Inventory |
48,504 | 45,227 | ||||||
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Prepaid expenses and other current assets |
4,026 | 2,766 | ||||||
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Total current assets |
189,744 | 206,642 | ||||||
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Property and equipment, net |
16,436 | 14,748 | ||||||
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Other assets |
1,254 | 1,069 | ||||||
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Goodwill |
24,498 | 24,498 | ||||||
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Total assets |
$ | 231,932 | $ | 246,957 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Line of credit |
$ | 33,067 | $ | 50,411 | ||||
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Accounts payable |
70,301 | 76,936 | ||||||
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Claims payable |
4,851 | 5,230 | ||||||
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Amounts due to plan sponsors |
5,152 | 5,646 | ||||||
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Accrued expenses and other current liabilities |
9,679 | 9,575 | ||||||
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Total current liabilities |
123,050 | 147,798 | ||||||
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Deferred taxes |
857 | 533 | ||||||
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Income taxes payable |
3,370 | 3,089 | ||||||
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Total liabilities |
127,277 | 151,420 | ||||||
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Stockholders' equity |
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Common stock, $.0001 par value; 75,000,000 shares authorized; shares issued: |
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41,843,194, and 41,622,629, respectively; shares outstanding; 38,780,865 and |
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38,691,356, respectively |
4 | 4 | ||||||
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Treasury stock, shares at cost: 2,653,007 and 2,624,186, respectively |
(10,320 | ) | (10,288 | ) | ||||
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Additional paid-in capital |
249,929 | 248,441 | ||||||
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Accumulated deficit |
(134,958 | ) | (142,620 | ) | ||||
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Total stockholders' equity |
104,655 | 95,537 | ||||||
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Total liabilities and stockholders' equity |
$ | 231,932 | $ | 246,957 | ||||
2
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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) |
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Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2009 |
2008 |
2009 |
2008 |
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Revenue |
$ | 328,749 | $ | 348,440 | $ | 654,498 | $ | 675,911 | ||||||||
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Cost of revenue |
290,361 | 312,714 | 580,120 | 607,813 | ||||||||||||
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Gross profit |
38,388 | 35,726 | 74,378 | 68,098 | ||||||||||||
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% of revenue |
11.7 | % | 10.3 | % | 11.4 | % | 10.1 | % | ||||||||
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Operating expenses |
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Selling, general and administrative expenses |
31,607 | 31,635 | 61,933 | 63,172 | ||||||||||||
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Bad debt expense |
1,597 | 723 | 2,977 | 1,373 | ||||||||||||
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Total operating expense |
33,204 | 32,358 | 64,910 | 64,545 | ||||||||||||
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% of revenue |
10.1 | % | 9.3 | % | 9.9 | % | 9.5 | % | ||||||||
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Income from operations |
5,184 | 3,368 | 9,468 | 3,553 | ||||||||||||
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Interest expense, net |
430 | 677 | 1,024 | 1,262 | ||||||||||||
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Income before income taxes |
4,754 | 2,691 | 8,444 | 2,291 | ||||||||||||
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Tax provision |
377 | 1,072 | 782 | 1,149 | ||||||||||||
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Net income |
$ | 4,377 | $ | 1,619 | $ | 7,662 | $ | 1,142 | ||||||||
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Basic net income per share |
$ | 0.11 | $ | 0.04 | $ | 0.20 | $ | 0.03 | ||||||||
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Diluted net income per share |
$ | 0.11 | $ | 0.04 | $ | 0.20 | $ | 0.03 | ||||||||
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Basic weighted average shares |
38,748 | 38,242 | 38,729 | 38,210 | ||||||||||||
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Diluted weighted average shares |
39,227 | 39,023 | 39,026 | 39,257 | ||||||||||||
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_______________________
(1) Certain amounts have been relassified to conform to the current presentation. Such classifications have had no impact on income from operations or net income. |
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3
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Schedule 3 |
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BIOSCRIP, INC |
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Reconciliation between GAAP and Non-GAAP Measures |
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(in thousands, except per share amounts) |
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(unaudited) |
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Three Months |
Six Months |
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Ended June 30, |
Ended June 30, |
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2009 |
2008 |
2009 |
2008 |
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Net income |
$ | 4,377 | $ | 1,619 | $ | 7,662 | $ | 1,142 | ||||||||
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Addback items: |
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Depreciation and amortization |
1,129 | 1,514 | 2,240 | 3,065 | ||||||||||||
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Interest expense, net |
430 | 677 | 1,024 | 1,262 | ||||||||||||
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Tax provision |
377 | 1,072 | 782 | 1,149 | ||||||||||||
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Stock-based compensation expense |
712 | 1,038 | 1,488 | 1,995 | ||||||||||||
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Earnings before interest, taxes, depreciation, amortization and share-based compensation expense (EBITDAO) |
$ | 7,025 | $ | 5,920 | $ | 13,196 | $ | 8,613 | ||||||||
4