BIOS - BioScrip Reports Fourth Quarter and Full Year 2018 Financial Results

March, 15 2019 07:01 AM BioPlus Acquisition Corp.

DENVER, March 15, 2019 (GLOBE NEWSWIRE) -- BioScrip, Inc. (NASDAQ: BIOS) ("BioScrip" or the "Company"), the largest independent national provider of infusion and home care management solutions, today announced its fourth quarter and full year 2018 financial results.

Fourth Quarter 2018 Highlights

Net revenue of $183.6 million, up 2.8% compared to $178.5 million in the fourth quarter of 2017, on a comparable ASC 606 basis.
The company recorded a bad debt adjustment which reduced both net revenue and adjusted EBITDA by $7.5 million.
Net revenue year over year growth of 7.8%, excluding bad debt expense of $13.3 million and $4.0 million from both current and prior year net revenue.
Net loss from continuing operations of $15.4 million, compared to $1.7 million in the prior year.
Adjusted EBITDA of $11.6 million, or $19.1 million before the $7.5 million bad debt adjustment, compared to $17.1 million in the prior year quarter.
Liquidity of $14.5 million at December 31, 2018, consisting of cash and cash equivalents.

2018 Highlights

Net revenue of $708.9 million, compared to $793.5 million in 2017, on a comparable ASC 606 basis.
Net loss from continuing operations of $51.6 million, compared to $63.3 million in 2017.
Adjusted EBITDA of $45.1 million, or $52.6 million before the bad debt expense adjustment of $7.5 million, compared to $45.0 million in the prior year.

Daniel E. Greenleaf, President and Chief Executive Officer, commented, “BioScrip delivered record comparable net revenue growth of almost 8% in the fourth quarter of 2018. Excluding the bad debt adjustment, we achieved adjusted EBITDA of $52.6 million for the year, which was slightly below the low-end of our expectations due to slower than anticipated revenue growth in the month of December. However, we commenced 2019 on a very strong note, with gross revenue growth of approximately 9% in both January and February, and March gross revenue to date trending at similar levels.”

Mr. Greenleaf continued, “This morning BioScrip and Option Care jointly announced a definitive merger agreement, which will create the nation’s preeminent home infusion company and transform the industry. The combined company will have a national footprint of more than 150 locations in 46 states and revenue exceeding $2.6 billion, as well as improved financial strength and flexibility through an optimized capital structure. We are extremely excited about the value this combination will create for all of our combined stakeholders and patients and look forward to closing the transaction.”

Financial Guidance

Given the pending combination announced today with Option Care, the Company will not be providing updated 2019 BioScrip financial guidance.

Conference Call and Presentation

BioScrip will host a conference call and live webcast on March 15, 2019, at 9:00 a.m. Eastern Time, to discuss the definitive merger agreement with Option Care as well as its fourth quarter and full year 2018 financial results. Interested parties may participate by dialing 877-423-9820 (U.S.) or by accessing a link under the "Investors" section on the Company's website at www.bioscrip.com.

A copy of the merger agreement investor presentation will be available under the “Investors” section of the Company’s website at www.bioscrip.com.

An audio webcast and archive will be available within two hours of the call’s completion under the “Investors" section of the Company's website.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

BioScrip, Inc. (“BioScrip” or the “Company”) will file with the Securities and Exchange Commission (“SEC”) a proxy statement in connection with the proposed transaction. The proxy statement will contain important information about the proposed transaction and related matters. INVESTORS AND SECURITY HOLDERS ARE URGED AND ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The proxy statement and other relevant materials (when they become available) and any other documents filed by the Company with the SEC may be obtained free of charge at the SEC’s website, at www.sec.gov. In addition, security holders will be able to obtain free copies of the proxy statement and other relevant materials from the Company by contacting Investor Relations by mail at 1600 Broadway, Suite 700, Denver, CO 80202, Attn: Investor Relations, by telephone at (720) 697-5200, or by going to the Company’s Investor Relations page on its corporate web site at https://investors.bioscrip.com.

PARTICIPANTS IN THE SOLICITATION

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the matters discussed above. Information about the Company’s directors and executive officers is set forth in the Proxy Statement on Schedule 14A for the Company’s 2018 annual meeting of stockholders, which was filed with the SEC on April 4, 2018. This document can be obtained free of charge from the sources indicated above. Information regarding the ownership of the Company’s directors and executive officers in the Company’s securities is included in the Company’s SEC filings on Forms 3, 4, and 5, which can be found through the SEC’s website at www.sec.gov. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the preliminary proxy statement and the definitive proxy statement and other relevant materials to be filed with the SEC when they become available.

About BioScrip, Inc.

BioScrip, Inc. is the largest independent national provider of infusion and home care management solutions, with approximately 2,100 teammates and nearly 70 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
Chief Financial Officer & Treasurer
T: (720) 697-5200
stephen.deitsch@bioscrip.com

Kalle Ahl, CFA
The Equity Group
T: (212) 836-9614
kahl@equityny.com

Forward-Looking Statements – Safe Harbor

This communication, in addition to historical information, contains “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of BioScrip and Option Care. All statements other than statements of historical facts are forward-looking statements. In addition, words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words, and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. Forward-looking statements relating to the proposed transaction include, but are not limited to: statements about the benefits of the proposed transaction between BioScrip and Option Care, including future financial and operating results; BioScrip’s and Option Cares plans, objectives, expectations and intentions; the expected timing of completion of the proposed transaction; and other statements relating to the acquisition that are not historical facts. Forward-looking statements are based on information currently available to BioScrip and Option Care and involve estimates, expectations and projections. Investors are cautioned that all such forward-looking statements are subject to risks and uncertainties (both known and unknown), and many factors could cause actual events or results to differ materially from those indicated by such forward-looking statements. With respect to the proposed transaction between BioScrip and Option Care, these factors could include, but are not limited to: the risk that BioScrip or Option Care may be unable to obtain governmental and regulatory approvals required for the transaction, or that required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could reduce the anticipated benefits from the proposed transaction or cause the parties to abandon the proposed transaction; the risk that a condition to closing of the transaction may not be satisfied; the length of time necessary to consummate the proposed transaction, which may be longer than anticipated for various reasons; the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on transaction-related issues; the effect of future regulatory or legislative actions on the companies or the industries in which they operate; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; economic and foreign exchange rate volatility; and the other risks contained in BioScrip’s most recently filed Annual Report on Form 10-K.

Many of these risks, uncertainties and assumptions are beyond BioScrip’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the parties on the date they are made, and neither BioScrip nor Option Care undertakes any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication. Nothing in this communication is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per BioScrip share for the current or any future financial years or those of the combined company, will necessarily match or exceed the historical published earnings per BioScrip share, as applicable. Neither BioScrip nor Option Care gives any assurance (1) that either BioScrip or Option Care will achieve its expectations, or (2) concerning any result or the timing thereof, in each case, with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decrees, cost reductions, business strategies, earnings or revenue trends or future financial results. All subsequent written and oral forward-looking statements concerning BioScrip, Option Care, the proposed transaction, the combined company or other matters and attributable to BioScrip or Option Care or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

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)


December 31,

2018

2017
ASSETS



Current assets



Cash and cash equivalents
$
14,539


$
39,457

Restricted cash

4,321



4,950

Accounts receivable, net

114,864



85,522

Inventory

26,689



38,044

Prepaid expenses and other current assets

14,292



18,620

Total current assets

174,705



186,593

Property and equipment, net

28,788



26,973

Goodwill

367,198



367,198

Deferred taxes

1,032



1,098

Intangible assets, net

10,470



19,114

Other non-current assets

1,745



2,116

Total assets
$
583,938


$
603,092

LIABILITIES AND STOCKHOLDERS' DEFICIT



Current liabilities



Current portion of long-term debt
$
3,179


$
1,722

Accounts payable

67,025



65,963

Amounts due to plan sponsors

956



4,621

Accrued interest

6,706



6,706

Accrued expenses and other current liabilities

29,450



26,118

Total current liabilities

107,316



105,130

Long-term debt, net of current portion

501,495



478,866

Other non-current liabilities

25,842



21,769

Total liabilities

634,653



605,765

Series A convertible preferred stock, $.0001 par value

3,231



2,827

Series C convertible preferred stock, $.0001 par value

90,058



79,252

Stockholders' deficit



Preferred stock, $.0001 par value

-



-

Common stock, $.0001 par value

13



13

Treasury stock, shares at cost

(950
)


(16
)
Additional paid-in capital

618,137



624,762

Accumulated deficit

(761,204
)


(709,511
)
Total stockholders' deficit

(144,004
)


(84,752
)
Total liabilities and stockholders' deficit
$
583,938


$
603,092





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









Year Ended December 31,

2018

2017




Net revenue
$
708,903


$
817,190

Cost of revenue (excluding depreciation expense)

465,865



547,948

Gross profit

243,038



269,242

Percentage of revenues

34.3
%


32.9
%




Operating expenses:



Service location operation expenses

154,813



163,273

General and administrative expenses

47,264



39,625

Depreciation and amortization expense

23,601



27,725

Restructuring, acquisition, integration, and other expenses

6,457



12,662

Bad debt expense

-



23,697

Total operating expenses

232,135



266,982

Operating income

10,903



2,260

Other expense:



Interest expense, net

57,433



52,072

Change in fair value of equity linked liabilities

4,836



3,587

Loss (gain) on dispositions

(342
)


581

Loss on extinguishment of debt

-



13,453

Total other expense

61,927



69,693

Loss from continuing operations, before income taxes

(51,024
)


(67,433
)
Income tax (expense) benefit

(568
)


4,130

Loss from continuing operations

(51,592
)


(63,303
)
Loss from discontinued operations, net of income taxes

(101
)


(893
)
Net loss

(51,693
)


(64,196
)
Accrued dividends on preferred stock

(11,210
)


(10,077
)
Loss attributable to common stockholders
$
(62,903
)

$
(74,273
)




Loss per common share:



Loss from continuing operations, basic and diluted
$
(0.49
)

$
(0.59
)
Loss from discontinued operations, basic and diluted

-



(0.01
)
Loss per common share, basic and diluted
$
(0.49
)

$
(0.60
)




Weighted average number of common shares outstanding:



Basic and diluted

127,942



123,791


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













Three Months Ended

Twelve Months Ended


March 31, 2018

June 30, 2018

September 30, 2018

December 31, 2018

December 31, 2018











Loss from continuing operations

$
(12,987
)

$
(15,124
)

$
(8,103
)

$
(15,378
)

$
(51,592
)











Interest expense, net


(13,395
)


(13,805
)


(14,971
)


(15,262
)


(57,433
)
Change in fair value of equity linked liabilities


3,439



(3,064
)


(1,605
)


(3,606
)


(4,836
)
Gain on dispositions


305



13



10



14



342

Income tax expense


(48
)


(43
)


(102
)


(375
)


(568
)
Depreciation and amortization expense


(6,486
)


(6,366
)


(5,767
)


(4,982
)


(23,601
)
Stock-based compensation


(556
)


(1,253
)


(1,224
)


(1,142
)


(4,175
)
Restructuring, acquisition, integration, and other expenses, net ⁽¹⁾


(1,882
)


(2,024
)


(885
)


(1,666
)


(6,457
)
Consolidated Adjusted EBITDA

$
5,636


$
11,418


$
16,441


$
11,641


$
45,136























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


Schedule 4
BIOSCRIP, INC. AND SUBSIDIARIES
QUARTERLY RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES
(in thousands)













Three Months Ended

Twelve Months Ended


March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017

December 31, 2017











Loss from continuing operations

$
(19,419
)

$
(29,151
)

$
(13,058
)

$
(1,675
)

$
(63,303
)











Interest expense, net


(12,659
)


(12,630
)


(13,360
)


(13,423
)


(52,072
)
Change in fair value of equity linked liabilities


-



-



(1,103
)


(2,484
)


(3,587
)
Loss on extinguishment of debt


-



(13,453
)


-



-



(13,453
)
Gain (loss) on dispositions


-



(685
)


33



71



(581
)
Income tax (expense) benefit


(619
)


(718
)


(60
)


5,527



4,130

Depreciation and amortization expense


(7,165
)


(7,065
)


(7,058
)


(6,437
)


(27,725
)
Stock-based compensation


(594
)


(433
)


(545
)


(788
)


(2,360
)
Restructuring, acquisition, integration, and other expenses, net ⁽¹⁾


(3,223
)


(4,147
)


(4,037
)


(1,255
)


(12,662
)
Consolidated Adjusted EBITDA

$
4,841


$
9,980


$
13,072


$
17,114


$
45,007























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











Schedule 5
BIOSCRIP, INC AND SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOWS
(in thousands)
(unaudited)











Three Months Ended

Twelve Months Ended

March 31, 2018

June 30, 2018

September 30, 2018

December 31, 2018

December 31, 2018
Cash flows from operating activities:









Net loss
$
(13,017
)

$
(15,139
)

$
(8,174
)

$
(15,363
)

$
(51,693
)
Less: Income (loss) from discontinued operations, net of income taxes

(30
)


(15
)


(73
)


17



(101
)
Loss from continuing operations

(12,987
)


(15,124
)


(8,101
)


(15,380
)


(51,592
)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:









Depreciation and amortization

6,486



6,366



5,765



4,984



23,601

Amortization of deferred financing costs and debt discount

2,023



2,048



2,013



2,088



8,172

Change in deferred taxes

31



25



52



(42
)


66

Stock-based compensation

556



1,253



1,223



1,143



4,175

Paid-in-kind interest capitalized as principal on Second Lien Note Facility

-



-



3,800



3,987



7,787

Loss (gain) on dispositions

(305
)


(13
)


(12
)


(12
)


(342
)
Change in fair value of equity linked liabilities

(3,439
)


3,064



1,603



3,608



4,836

Changes in assets and liabilities, net of acquired businesses:









Accounts receivable

(2,663
)


(8,734
)


(16,709
)


(1,236
)


(29,342
)
Inventory

(3,505
)


16,264



2,180



(3,584
)


11,355

Prepaid expenses and other assets

8,807



1,247



(3,098
)


(2,257
)


4,699

Accounts payable

2,872



(19,574
)


14,640



3,124



1,062

Amounts due to plan sponsors

(969
)


(1,468
)


(638
)


(590
)


(3,665
)
Accrued interest

(4,487
)


4,510



(4,461
)


4,438



-

Accrued expenses and other liabilities

2,418



(4,984
)


1,899



(148
)


(815
)
Net cash provided by (used in) operating activities from continuing operations

(5,162
)


(15,120
)


156



123



(20,003
)
Net cash provided by (used in) operating activities from discontinued operations

(30
)


(15
)


(72
)


16



(101
)
Net cash used in operating activities

(5,192
)


(15,135
)


84



139



(20,104
)
Cash flows from investing activities:









Purchases of property and equipment, net

(2,646
)


(4,300
)


(2,462
)


(4,467
)


(13,875
)
Proceeds from sales of property and equipment

-



-



-



360



360

Net cash used in investing activities

(2,646
)


(4,300
)


(2,462
)


(4,107
)


(13,515
)
Cash flows from financing activities:









Proceeds from private issuances, net

-



-



-



-



-

Proceeds from priming credit agreement, net

-



-



-



-



-

Fees attributable to extinguishment of debt

-



-



-



-



-

Borrowings on revolving credit facility

-



-



-



-



-

Repayments on revolving credit facility

-



-



-



-



-

Borrowing of long-term debt, net of expenses

-



10,000



-



-



10,000

Principal payments of long-term debt

-



-



-



-



-

Repayments of capital leases

(967
)


(218
)


(438
)


(250
)


(1,873
)
Net activity from exercise of employee stock awards

(300
)


121



310



(186
)


(55
)
Net cash provided by financing activities

(1,267
)


9,903



(128
)


(436
)


8,072

Net change in cash and cash equivalents and restricted cash

(9,105
)


(9,532
)


(2,506
)


(4,404
)


(25,547
)
Cash and cash equivalents and restricted cash - beginning of period

44,407



35,302



25,770



23,264



44,407

Cash and cash equivalents and restricted cash - end of period
$
35,302


$
25,770


$
23,264


$
18,860


$
18,860











Schedule 6
BIOSCRIP, INC AND SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOWS
(in thousands)
(unaudited)











Three Months Ended

Twelve Months Ended

March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017

December 31, 2017
Cash flows from operating activities:









Net loss
$
(19,718
)

$
(29,525
)

$
(12,992
)

$
(1,961
)

$
(64,196
)
Less: Income (loss) from discontinued operations, net of income taxes

(299
)


(373
)


66



(287
)


(893
)
Loss from continuing operations

(19,419
)


(29,152
)


(13,058
)


(1,674
)


(63,303
)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:









Depreciation and amortization

7,165



7,067



7,056



6,437



27,725

Amortization of deferred financing costs and debt discount

1,318



1,557



1,801



2,322



6,998

Change in deferred taxes

619



604



645



(5,247
)


(3,379
)
Stock-based compensation

521



433



571



835



2,360

Loss (gain) on dispositions

-



685



(33
)


(71
)


581

Change in fair value of equity linked liabilities

-



-



1,103



2,484



3,587

Loss on extinguishment of debt

-



13,453



-



-



13,453

Changes in assets and liabilities, net of acquired businesses:









Accounts receivable

2,210



6,281



13,766



1,307



23,564

Inventory

5,616



1,727



1,048



(10,935
)


(2,544
)
Prepaid expenses and other assets

3,601



1,872



(2,440
)


(3,272
)


(239
)
Accounts payable

(10,936
)


(43
)


(3,737
)


15,405



689

Amounts due to plan sponsors

645



382



64



(149
)


942

Accrued interest

(1,157
)


1,188



(3,539
)


3,509



1

Accrued expenses and other liabilities

(917
)


316



(2,199
)


(2,005
)


(4,805
)
Net cash provided by (used in) operating activities from continuing operations

(10,734
)


6,370



1,048



8,946



5,630

Net cash provided by (used in) operating activities from discontinued operations

(299
)


(373
)


(5,434
)


(287
)


(6,393
)
Net cash used in operating activities

(11,033
)


5,997



(4,386
)


8,659



(763
)
Cash flows from investing activities:









Purchases of property and equipment, net

(1,684
)


(2,608
)


(2,278
)


(2,110
)


(8,680
)
Proceeds from sales of property and equipment

-



-



-



-



-

Net cash used in investing activities

(1,684
)


(2,608
)


(2,278
)


(2,110
)


(8,680
)
Cash flows from financing activities:









Proceeds from private issuances, net

5,052



15,724



46



(45
)


20,777

Proceeds from priming credit agreement, net

23,060



-



-



-



23,060

Fees attributable to extinguishment of debt

-



(311
)


(669
)


-



(980
)
Borrowings on revolving credit facility

563



-



-



-



563

Repayments on revolving credit facility

(1,000
)


(54,863
)


-



-



(55,863
)
Borrowing of long-term debt, net of expenses

-



294,446



-



-



294,446

Principal payments of long-term debt

(3,137
)


(233,633
)


-



-



(236,770
)
Repayments of capital leases

(238
)


(163
)


(391
)


(280
)


(1,072
)
Net activity from exercise of employee stock awards

(51
)


(102
)


53



220



120

Net cash provided by financing activities

24,249



21,098



(961
)


(105
)


44,281

Net change in cash and cash equivalents and restricted cash

11,532



24,487



(7,625
)


6,444



34,838

Cash and cash equivalents and restricted cash - beginning of period

9,569



21,101



45,588



37,963



9,569

Cash and cash equivalents and restricted cash - end of period
$
21,101


$
45,588


$
37,963


$
44,407


$
44,407



Schedule 7

BIOSCRIP, INC. AND SUBSIDIARIES

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



























Three Months Ended

Twelve Months Ended



March 31, 2018

June 30, 2018

September 30, 2018

December 31, 2018

December 31, 2018













Net revenue

$
168,584


$
175,789


$
180,962


$
183,568


$
708,903


Cost of revenue (excluding depreciation expense)


113,536



115,832



115,051



121,446



465,865


Gross profit


55,048



59,957



65,911



62,122



243,038


Percentage of revenues


32.7
%


34.1
%


36.4
%


33.8
%


34.3
%













Operating expenses:











Service location operation expenses


39,299



38,861



38,216



38,437



154,813


General and administrative expenses


10,669



10,931



12,478



13,186



47,264


Depreciation and amortization expense


6,486



6,366



5,767



4,982



23,601


Restructuring, acquisition, integration, and other expenses


1,882



2,024



885



1,666



6,457


Total operating expenses


58,336



58,182



57,346



58,271



232,135


Operating income (loss)


(3,288
)


1,775



8,565



3,851



10,903


Other expense:








-




Interest expense, net


13,395



13,805



14,971



15,262



57,433


Change in fair value of equity linked liabilities


(3,439
)


3,064



1,605



3,606



4,836


Loss (gain) on dispositions


(305
)


(13
)


(10
)


(14
)


(342
)

Total other expense


9,651



16,856



16,566



18,854



61,927


Loss from continuing operations, before income taxes


(12,939
)


(15,081
)


(8,001
)


(15,003
)


(51,024
)

Income tax (expense) benefit


(48
)


(43
)


(102
)


(375
)


(568
)

Loss from continuing operations


(12,987
)


(15,124
)


(8,103
)


(15,378
)


(51,592
)























Loss from discontinued operations, net of income taxes


(30
)


(15
)


(71
)


15



(101
)

Net loss


(13,017
)


(15,139
)


(8,174
)


(15,363
)


(51,693
)

Accrued dividends on preferred stock


(2,657
)


(2,756
)


(2,861
)


(2,936
)


(11,210
)

Loss attributable to common stockholders

$
(15,674
)

$
(17,895
)

$
(11,035
)

$
(18,299
)

$
(62,903
)













Loss per common share:











Loss from continuing operations, basic and diluted

$
(0.12
)

$
(0.14
)

$
(0.09
)

$
(0.14
)

$
(0.49
)

Loss from discontinued operations, basic and diluted


-



-



-



-



-


Loss per common share, basic and diluted

$
(0.12
)

$
(0.14
)

$
(0.09
)

$
(0.14
)

$
(0.49
)













Weighted average number of common shares outstanding:











Basic and diluted


127,772



128,038



127,528



128,074



127,942



Schedule 8

BIOSCRIP, INC. AND SUBSIDIARIES

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



























Three Months Ended

Twelve Months Ended



March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017

December 31, 2017













Net revenue

$
217,810


$
218,106


$
198,692


$
182,582


$
817,190


Cost of revenue (excluding depreciation expense)


152,936



150,495



132,129



112,388



547,948


Gross profit


64,874



67,611



66,563



70,194



269,242


Percentage of revenues


29.8
%


31.0
%


33.5
%


38.4
%


32.9
%













Operating expenses:











Service location operation expenses


44,319



42,293



38,143



38,518



163,273


General and administrative expenses


9,266



9,654



9,405



11,300



39,625


Depreciation and amortization expense


7,165



7,065



7,058



6,437



27,725


Restructuring, acquisition, integration, and other expenses


3,223



4,147



4,037



1,255



12,662


Bad debt expense


7,042



6,117



6,488



4,050



23,697


Total operating expenses


71,015



69,276



65,131



61,560



266,982


Operating income (loss)


(6,141
)


(1,665
)


1,432



8,634



2,260


Other expense:








-




Interest expense, net


12,659



12,630



13,360



13,423



52,072


Change in fair value of equity linked liabilities


-



-



1,103



2,484



3,587


Loss (gain) on dispositions


-



685



(33
)


(71
)


581


Loss on extinguishment of debt


-



13,453



-



-



13,453


Total other expense


12,659



26,768



14,430



15,836



69,693


Loss from continuing operations, before income taxes


(18,800
)


(28,433
)


(12,998
)


(7,202
)


(67,433
)

Income tax (expense) benefit


(619
)


(718
)


(60
)


5,527



4,130


Loss from continuing operations


(19,419
)


(29,151
)


(13,058
)


(1,675
)


(63,303
)























Loss from discontinued operations, net of income taxes


(299
)


(373
)


66



(287
)


(893
)

Net loss


(19,718
)


(29,524
)


(12,992
)


(1,962
)


(64,196
)

Accrued dividends on preferred stock


(2,388
)


(2,478
)


(2,569
)


(2,642
)


(10,077
)

Loss attributable to common stockholders

$
(22,106
)

$
(32,002
)

$
(15,561
)

$
(4,604
)

$
(74,273
)













Loss per common share:











Loss from continuing operations, basic and diluted

$
(0.18
)

$
(0.26
)

$
(0.12
)

$
(0.03
)

$
(0.59
)

Loss from discontinued operations, basic and diluted


-



-



-



(0.01
)


(0.01
)

Loss per common share, basic and diluted

$
(0.18
)

$
(0.26
)

$
(0.12
)

$
(0.04
)

$
(0.60
)













Weighted average number of common shares outstanding:











Basic and diluted


118,783



121,189



127,488



127,488



123,791

Company Name:	BioPlus Acquisition Corp.
Stock Symbol:	BIOS
Market:	NASDAQ

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