BioScrip Announces Second Quarter Financial Results; Reports $6.6 Million of Special Charges Related to Merger and Re-Branding Efforts.ELMSFORD, N.Y. & MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- BioScrip, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BIOS BIOS in full Basic Input/Output System Computer program that is typically stored in EPROM and used by the CPU to perform start-up procedures when the computer is turned on. ) today reported second quarter 2005 revenue of $286.6 million and a loss per share of $0.10 including special charges totaling $6.6 million ($4.2 million net of taxes), or $0.12 per share. Excluding these charges, earnings per share for the quarter would have been $0.02. "Our strategy of expanding therapies through our community pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major has commenced," stated Henry F. Blissenbach, BioScrip's President and Chief Executive Officer. "We are on track to meet our integration and cost savings targets, with at least $10 million in annual cost savings as we start 2006. However, in the second quarter, we had increased costs as a result of duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. expenses that were, in fact, planned. We are on track with our first quarter 2006 financial expectations." Mr. Blissenbach continued, "We have also decided to drive our marketing strategy to a single brand, BioScrip, resulting in a $5.8 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. tradename intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with previous brands. We are confident that a unified marketing A unified market is the economic term for a single market where goods, services, capital and people can move freely without regard to national boundaries. These "four freedoms" are implemented by, among other things, removal of tariffs on the transfer of goods and services among theme utilizing the BioScrip name will provide value and clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the in all the markets we serve. In addition to the tradename charge, we incurred $0.8 million in merger and related costs in the quarter." Second Quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Reported Results Revenue for the second quarter of 2005 increased 86% to $286.6 million, compared to $154.1 million reported in the second quarter of 2004. Revenue was up due to the acquisition of Chronimed Inc. on March 12, 2005, the results of which are not included in last year's second quarter 2004 results. Net loss was $3.5 million or $0.10 per share for the second quarter of 2005, compared with net income of $1.9 million, or $0.09 per share, for the second quarter of 2004. Net income decreased due primarily to special charges, gross margin pressures in the Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. Services segment, increased amortization expense from the merger, and duplicative du·pli·cate adj. 1. Identically copied from an original. 2. Existing or growing in two corresponding parts; double. 3. operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to be eliminated as part of the cost savings efforts. Special charges for the second quarter of 2005 include $5.8 million for the write-off of tradename intangible assets and $0.8 million for merger and related expenses totaling $6.6 million ($4.2 million net of taxes), or $0.12 per share. Second quarter GAAP reported results are provided in Schedules 1, 2 and 3 attached to this press release. Second Quarter Adjusted Results (1) Second quarter non-GAAP adjusted financial results and reconciliations to GAAP financial results are provided in Schedules 4 through 9 attached to this press release. These financial results reflect operations as if the merger were completed at the beginning of each period presented and exclude special charges. Revenue for second quarter 2005 decreased 8% to $286.6 million, compared to $311.8 million in the second quarter of 2004. Second quarter 2005 Specialty Services revenue declined $25.0 million or 11% to $193.1 million compared to $218.1 million for the same period last year, due primarily to the loss of the Aetna Aetna, volcano: see Etna, Italy. specialty pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. distribution contract that ended February February: see month. 28, 2005. Revenue from Aetna was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $31 million in last year's second quarter. PBM PBM - play by mail. See play by electronic mail. Services revenue, which includes traditional mail service, decreased slightly for the second quarter 2005 to $93.5 million compared to $93.7 million for the same period last year. PBM Services was impacted negatively by the loss of previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). contracts, offset by continued growth from core customers. Gross profit for second quarter 2005 was $30.5 million, or 10.6% of revenue compared to $33.6 million, or 10.8% of revenue during the same period last year, due primarily to gross margin pressures in Specialty Services, particularly specialty mail and infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. . Selling, general and administrative expenses were $27.6 million for second quarter 2005 compared to $26.2 million for the same period a year ago. The majority of cost savings expected from the merger are not yet reflected in the second quarter 2005 spending rate. Amortization expense was $2.0 million for the second quarter 2005 compared to $0.8 million last year, reflecting the increased amortization coming from the intangible assets acquired from Chronimed Inc. in the merger. Adjusted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter 2005 decreased 85% to $1.0 million, before special charges, compared to $6.7 million for the same period a year ago. Net income for the second quarter 2005, before special charges, was $0.6 million, or $0.02 per share compared to $4.0 million or $0.11 per share for second quarter 2004. Mr. Blissenbach commented further, "I am especially pleased with our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). progress. Our sales and marketing team has targeted key physicians, clinics and hospitals in driving our community pharmacy initiative. We rolled out our expanded product line of HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. , oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. , transplant transplant or graft Partial or complete organ or other body part removed from one site and attached at another. It may come from the same or a different person or an animal. One from the same person—most often a skin graft—is not rejected. and other key injectables to four community pharmacies in July July: see month. , and expect to implement eight more by year end. This initiative, along with better performance in our mail and PBM businesses, will drive revenue growth in 2006." "Our spending actions will begin to show benefits in the second half, particularly in the fourth quarter, as we move through our integration plan. Our mail service consolidation in second quarter and our Finance, IT and corporate function integrations through fourth quarter will improve our spending performance as we enter 2006," concluded Blissenbach. Financial Outlook Calendar Year 2005 The Company anticipates revenue for 2005 to be $1.17 to $1.18 billion, with revenue of $580 to $590 million in the second half of 2005; earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The above financial outlook assumes that the MIM MIM Metal Injection Molding MIM Mendelian Inheritance in Man MIM Mobile Instant-Messaging MIM Man in the Middle MIM Multilateral Initiative on Malaria MIM Metal-Insulator-Metal MIM Master of International Management MIM Made in Mexico and Chronimed merger was completed January January: see month. 1, 2005, excludes special charges, and is consistent with the financial presentation in Schedules 4 and 7 attached to this press release. First Quarter 2006 The Company expects first quarter March 2006 revenue of approximately $303 to $308 million, EBITDA of $8.5 to $9.5 million, and EPS of $0.08 to $0.10, based on first quarter 2006 shares outstanding of 37.5 to 38.0 million and an effective tax rate of 39%. Conference Call Information BioScrip will hold a conference call to discuss second quarter 2005 financial results on Thursday Thursday: see week. , August 4, 2005 at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To access the live conference call, dial 212-231-6027 at least five to ten minutes prior to the scheduled time In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas and follow the operator's instructions. The conference call will also be webcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . To access the live webcast, visit the BioScrip website at www.bioscrip.com and follow the logon See login. 1. (jargon) logon - login. 2. (networking) logon - In ACF/VTAM, an unformatted session-initiation request for a session between two logical units. prompts. If you are unable to listen to the live call, a webcast replay will be archived on the BioScrip website. In addition, a recording of the conference call will be available for a 24-hour period beginning at 12:00 p.m. EDT August 4 through 12:00 p.m. EDT August 11, 2005. To access the replay of the call, dial 800-633-8284 or 402-977-9140, and enter reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 21252717. About BioScrip, Inc. BioScrip provides comprehensive pharmaceutical care solutions. We partner with healthcare payors, pharmaceutical manufacturers, government agencies, physicians, and patients to deliver cost effective programs that enhance the quality of patient life. We focus our products and services in two core areas: Specialty medication medication /med·i·ca·tion/ (med?i-ka´shun) 1. medicine (1). 2. impregnation with a medicine. 3. administration of a medicine or other remedy. distribution and clinical management services, both nationally and community-based; and Pharmacy Benefit Management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. services. Our specialty medication distribution capabilities include condition-specific clinical management programs tailored to improve the care of individuals with complex health conditions such as HIV/AIDS HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome , Cancer, Infusion IVIG IVIG Intravenous immunoglobulin, see there , Hepatitis C Hepatitis C Definition Hepatitis C is a form of liver inflammation that causes primarily a long-lasting (chronic) disease. Acute (newly developed) hepatitis C is rarely observed as the early disease is generally quite mild. , Rheumatoid Arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. , Multiple Sclerosis multiple sclerosis (MS), chronic, slowly progressive autoimmune disease in which the body's immune system attacks the protective myelin sheaths that surround the nerve cells of the brain and spinal cord (a process called demyelination), resulting in damaged areas , and Transplantation transplantation /trans·plan·ta·tion/ (trans?plan-ta´shun) the grafting of tissues taken from the patient's own body or from another. . Our complete pharmacy benefit management programs include customized benefit plan design, pharmacy network management and sophisticated reporting capabilities that deliver improved clinical and economic outcomes. In addition, we have 30 community pharmacy locations in 25 major metropolitan markets across the U.S., providing nationwide access and clinical management capabilities in a high-touch community-based environment. Forward Looking Statements This press release may contain statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 and our success with respect to the integration and consolidation. 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. Notes to Press Release Tables On March 12, 2005 we completed our merger with Chronimed Inc. The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. balance sheet (Schedule 2) as of June June: see month. 30, 2005, reflects the impact of this transaction and the preliminary allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of the purchase price to the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. from Chronimed Inc. This purchase price allocation is based on an independent valuation and management's assessment of that valuation. We anticipate that some adjustments may need to be made to this purchase price allocation as certain assets acquired in the merger are settled through March 2006. BioScrip financial results include Chronimed Inc. financial results for the nineteen days ended March 31, 2005 and the three months ended June 30, 2005. Actual GAAP reported financial results are provided in Schedules 1, 2 and 3 attached to this press release. To assist you in understanding the impact of the merger with Chronimed, we have prepared the attached schedules 4 and 7 to reflect the combined adjusted results of operations of BioScrip, Inc. (formerly MIM Corporation) and Chronimed as if the merger with Chronimed had been completed at the beginning of each period presented, without special charges. This press release also includes certain non-GAAP financial measures as defined under Regulation G. As required by Regulation G, we have provided in Schedules 5, 6, 8 and 9 to this press release a reconciliation of those measures to the most comparable GAAP financial measures. (1) See Table of Reconciliations on Schedules 5, 6, 8 and 9 for the differences between the non-GAAP financial measures and the most directly comparable GAAP financial measures. As required by Regulation G, the Company has provided a quantitative quantitative /quan·ti·ta·tive/ (kwahn´ti-ta?tiv) 1. denoting or expressing a quantity. 2. relating to the proportionate quantities or to the amount of the constituents of a compound. comparison between GAAP and disclosed non-GAAP financial measures. The non-GAAP measures presented provide important insight into the ongoing operations and a meaningful comparison of revenue, gross profit, selling, general and administrative expense, operating income, earnings before interest, taxes, depreciation and amortization (EBITDA), net income and earnings per share.
Schedule 1
BIOSCRIP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2005 (a) 2004 (b) 2005 (c) 2004 (b)
-------------------------------------------------- -------------------
Revenue $286,617 $154,125 $475,015 $302,178
Cost of revenue 256,104 137,275 424,055 268,364
-------------------------------------------------- -------------------
Gross profit 30,513 16,850 50,960 33,814
% of Revenue 10.6% 10.9% 10.7% 11.2%
Operating expenses
Selling, general and
administrative expenses 27,587 12,607 43,872 25,102
Amortization of intangibles 1,956 768 2,847 1,408
Special charges 6,633 - 7,020 -
-------------------------------------------------- -------------------
Total operating expenses 36,176 13,375 53,739 26,510
% of Revenue 12.6% 8.7% 11.3% 8.8%
(Loss) income from operations (5,663) 3,475 (2,779) 7,304
% of Revenue -2.0% 2.3% -0.6% 2.4%
Interest income (expense), net 12 (231) (141) (427)
-------------------------------------------------- -------------------
(Loss) income before income
taxes (5,651) 3,244 (2,920) 6,877
Income tax benefit (expense) 2,111 (1,298) 1,047 (2,751)
-------------------------------------------------- -------------------
Net (loss) income $(3,540) $1,946 $(1,873) $4,126
-------------------------------------------------- -------------------
% of Revenue -1.2% 1.3% -0.4% 1.4%
Basic net (loss) income per
share $(0.10) $0.09 $(0.06) $0.19
Diluted net (loss) income per
share $(0.10) $0.09 $(0.06) $0.18
-------------------------------------------------- -------------------
Basic weighted-average shares 36,829 22,214 31,238 22,187
Diluted weighted-average shares 36,829 22,780 31,238 22,724
-------------------------------------------------- -------------------
Supplemental presentation of
non-GAAP financial measures:
(Loss) Income from Operations $(5,663) $3,475 $(2,779) $7,304
Addbacks:
Amortization 1,956 768 2,847 1,408
Depreciation 897 490 1,538 1,045
--------- --------- --------- ---------
EBITDA (Earnings before
interest, taxes, depreciation
and amort.) $(2,810) $4,733 $1,606 $9,757
========= ========= ========= =========
(a) Reflects the full quarter results of operations of BioScrip which
was formed by the merger of MIM and Chronimed on March 12, 2005.
(b) Includes the results of operations of MIM only for the period
presented.
(c) Includes the results of operations of MIM for the full six months
and of Chronimed from March 13, 2005 through June 30, 2005.
Schedule 2
BIOSCRIP, INC.
Consolidated Balance Sheets
(in thousands)
June 30,
2005 December 31,
(unaudited) 2004
----------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $5,443 $2,957
Accounts receivable (net of allowances of
$3,989 and $3,240, respectively) 109,137 65,439
Inventory 23,484 11,897
Prepaid expenses 2,618 2,112
Short term deferred taxes 5,713 2,798
----------------------------------------------------------------------
Total current assets 146,395 85,203
Property and equipment, net 8,018 4,300
Long term deferred taxes, net - 2,383
Goodwill 116,245 74,874
Intangible assets, net 18,540 17,583
Deferred acquisition costs - 1,702
Other assets, net 710 427
----------------------------------------------------------------------
Total assets $289,908 $186,472
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Line of credit $- $7,303
Accounts payable 30,263 20,012
Claims payable 26,917 28,659
Payables to plan sponsors 2,167 2,217
Accrued expenses 11,528 12,598
----------------------------------------------------------------------
Total current liabilities 70,875 70,789
Deferred taxes 2,529 -
Shareholders' equity
Common stock, issued and outstanding shares
-- 36,901 and 22,307 shares outstanding at
June 30, 2005 and December 31, 2004,
respectively 4 2
Treasury stock, 2,198 shares at cost at June
30, 2005 and December 31, 2004,
respectively (8,002) (8,002)
Additional paid-in capital 233,723 131,031
Accumulated deficit (9,221) (7,348)
----------------------------------------------------------------------
Total shareholders' equity 216,504 115,683
----------------------------------------------------------------------
Total liabilities and shareholders' equity $289,908 $186,472
----------------------------------------------------------------------
Schedule 3
BIOSCRIP, INC.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended
-------------------
June 30, June 30,
2005 2004
----------------------------------------------------------------------
Operating activities
Net (loss) income $(1,873) $4,126
Adjustments to reconcile income to net cash
provided by (used in) operating activities:
Depreciation 1,538 1,045
Amortization 2,847 1,408
Tradename write-off 5,756 -
Issuance of stock to employees 57 44
Provision for losses on receivables 2,018 776
Changes in operating assets and liabilities:
Accounts receivable (3,057) (3,683)
Inventory (1,926) 1,681
Prepaid expenses and other current assets 772 768
Accounts payable 5,176 (3,278)
Claims payable (1,742) 2,799
Payables to plan sponsors and others (49) (8,592)
Accrued expenses (17,838) 103
----------------------------------------------------------------------
Net cash used in operating activities (8,321) (2,803)
Investing activities
Purchases of property and equipment (1,486) (355)
Costs of acquisitions, net of cash acquired 16,992 (14,256)
Decrease (increase) in other assets 1,563 (24)
----------------------------------------------------------------------
Net cash provided by (used in) investing
activities 17,069 (14,635)
Financing activities
(Repayments) borrowings on line of credit (7,303) 10,585
Principal payments on capital lease obligations (34) (197)
Principal payments on short term debt - (467)
Proceeds from exercise of stock options 1,075 588
----------------------------------------------------------------------
Net cash provided by (used in) financing
activities (6,262) 10,509
Increase (decrease) in cash and cash equivalents 2,486 (6,929)
Cash and cash equivalents at beginning of year 2,957 9,428
----------------------------------------------------------------------
Cash and cash equivalents at end of period $5,443 $2,499
----------------------------------------------------------------------
Schedule 4
BIOSCRIP, INC.
Consolidated Adjusted Statements of Income (a)
(in thousands, except per share data)
(unaudited)
Three Months Ended
----------------------
June 30, June 30,
2005 2004
Combined Combined
Adjusted Adjusted
BioScrip(b) BioScrip
----------------------------------------------------------------------
Revenue $286,617 $311,784
Cost of revenue 256,104 278,143
----------------------------------------------------------------------
Gross profit 30,513 33,641
% of Revenue 10.6% 10.8%
Operating expenses
Selling, general and administrative expenses 27,587 26,184
Amortization of intangibles 1,956 768
Special charges - -
----------------------------------------------------------------------
Total operating expenses 29,543 26,952
% of Revenue 10.3% 8.6%
Income from operations 970 6,689
% of Revenue 0.3% 2.1%
Interest income (expense), net 12 (169)
Other income - -
----------------------------------------------------------------------
Income before income taxes 982 6,520
Income tax expense (363) (2,543)
----------------------------------------------------------------------
Net income $619 $3,977
----------------------------------------------------------------------
% of Revenue 0.2% 1.3%
Diluted net income per share $0.02 $0.11
----------------------------------------------------------------------
Diluted weighted-average shares 37,260 37,284
----------------------------------------------------------------------
Supplemental presentation of financial measures:
Income from operations $970 $6,689
EBITDA addbacks:
Amortization 1,956 768
Depreciation 897 1,068
----------- ----------
EBITDA (Earnings before interest, taxes,
depreciation and amort.) $3,823 $8,525
=========== ==========
(a) These consolidated adjusted statements of income reflect
operations as if the merger had been completed at the beginning of
each quarter presented and excludes special charges.
(b) Excludes $6,633 of special charges for the June 2005 quarter.
Schedule 5
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP
Measures
For the Three Months Ended June 30, 2005
(in thousands, except per share data)
(unaudited)
As Special BioScrip
Reported Charges As Adjusted
----------------------------------------------------------------------
Revenue $286,617 $286,617
Cost of revenue 256,104 256,104
----------------------------------------------------------------------
Gross profit 30,513 30,513
% of Revenue 10.6% 10.6%
Operating expenses
Selling, general and admin. expenses 27,587 27,587
Amortization of intangibles 1,956 1,956
Special charges 6,633 (6,633) -
----------------------------------------------------------------------
Total operating expenses 36,176 (6,633) 29,543
% of Revenue 12.6% 10.3%
(Loss) income from operations (5,663) 6,633 970
% of Revenue -2.0% 0.3%
Interest income (expense), net 12 - 12
Other income - - -
----------------------------------------------------------------------
(Loss) income before income taxes (5,651) 6,633 982
Income tax benefit (expense) 2,111 (2,474) (363)
----------------------------------------------------------------------
Net (loss) income $(3,540) $4,159 $619
----------------------------------------------------------------------
Diluted net (loss) income per share $(0.10) $0.02
----------------------------------------------------------------------
Diluted weighted-average shares 36,829 37,260
----------------------------------------------------------------------
Supplemental presentation of financial
measures:
(Loss) Income from operations $(5,663) $6,633 $970
EBITDA addbacks:
Amortization 1,956 - 1,956
Depreciation 897 - 897
------------------------------
EBITDA $(2,810) $6,633 $3,823
==============================
Schedule 6
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP
Measures
For the Three Months Ended June 30, 2004
(unaudited)
MIM Corp. Chronimed Special BioScrip
As Reported As Reported Charges As Adjusted
----------------------------------------------------------------------
Revenue $154,125 $157,659 $- $311,784
Cost of revenue 137,275 140,868 - 278,143
----------------------------------------------------------------------
Gross profit 16,850 16,791 - 33,641
% of Revenue 10.9% 10.7% 10.8%
Operating expenses
Selling, general and
admin. expenses 12,607 13,577 - 26,184
Amortization of
intangibles 768 - - 768
Special charges - - - -
----------------------------------------------------------------------
Total operating
expenses 13,375 13,577 - 26,952
% of Revenue 8.7% 8.6% 8.6%
Income from operations 3,475 3,214 - 6,689
% of Revenue 2.3% 2.0% 2.1%
Interest income (expense),
net (231) 62 - (169)
Other income - - - -
----------------------------------------------------------------------
Income before income taxes 3,244 3,276 - 6,520
Income tax expense (1,298) (1,245) - (2,543)
----------------------------------------------------------------------
Net income $1,946 $2,031 $- $3,977
----------------------------------------------------------------------
Diluted net income per
share $0.09 $0.11
----------------------------------------------------------------------
Diluted weighted-average
shares 22,780 37,284
----------------------------------------------------------------------
Supplemental presentation
of financial measures:
Income from operations $3,475 $3,214 $- $6,689
EBITDA addbacks:
Amortization 768 - - 768
Depreciation 490 578 - 1,068
-------------------------------------------
EBITDA $4,733 $3,792 $- $8,525
===========================================
Schedule 7
BIOSCRIP, INC.
Consolidated Adjusted Statements of Income (a)
(in thousands, except per share data)
(unaudited)
Six Months Ended
---------------------
June 30, June 30,
2005 2004
Combined Combined
Adjusted Adjusted
BioScrip(b) BioScrip
----------------------------------------------------------------------
Revenue $589,094 $602,179
Cost of revenue 525,210 536,208
----------------------------------------------------------------------
Gross profit 63,884 65,971
% of Revenue 10.8% 11.0%
Operating expenses
Selling, general and administrative expenses 55,210 51,745
Amortization of intangibles 2,847 1,408
Special charges - -
----------------------------------------------------------------------
Total operating expenses 58,057 53,153
% of Revenue 9.9% 8.8%
Income from operations 5,827 12,818
% of Revenue 1.0% 2.1%
Interest income (expense), net (57) (295)
Other income - 75
----------------------------------------------------------------------
Income before income taxes 5,770 12,598
Income tax expense (2,307) (4,925)
----------------------------------------------------------------------
Net income $3,463 $7,673
----------------------------------------------------------------------
% of Revenue 0.6% 1.3%
Diluted net income per share $0.09 $0.21
----------------------------------------------------------------------
Diluted weighted-average shares 37,022 37,284
----------------------------------------------------------------------
Supplemental presentation of financial measures:
Income from operations $5,827 $12,818
EBITDA addbacks:
Amortization 2,847 1,408
Depreciation 2,020 2,175
----------- ---------
EBITDA (Earnings before interest, taxes,
depreciation and amort.) $10,694 $16,401
=========== =========
(a) These consolidated adjusted statements of income reflect
operations as if the merger had been completed at the beginning of
each quarter presented and exclude special charges.
(b) Excludes $9,057 of special charges for the full six month period
ended June 30, 2005.
Schedule 8
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP
Measures
For the Six Months Ended June 30, 2005
(in thousands, except per share data)
(unaudited)
As Chronimed Special BioScrip
Reported Pre-Merger Charges As Adjusted
----------------------------------------------------------------------
Revenue $475,015 $114,079 $589,094
Cost of revenue 424,055 101,155 525,210
----------------------------------------------------------------------
Gross profit 50,960 12,924 63,884
% of Revenue 10.7% 11.3% 10.8%
Operating expenses
Selling, general and
admin. expenses 43,872 11,338 55,210
Amortization of
intangibles 2,847 - 2,847
Special charges 7,020 2,037 (9,057) -
----------------------------------------------------------------------
Total operating
expenses 53,739 13,375 (9,057) 58,057
% of Revenue 11.3% 11.7% 9.9%
(Loss) income from operations (2,779) (451) 9,057 5,827
% of Revenue -0.6% -0.4% 1.0%
Interest income (expense), net (141) 84 - (57)
Other income - - - -
----------------------------------------------------------------------
(Loss) income before income
taxes (2,920) (367) 9,057 5,770
Income tax benefit (expense) 1,047 143 (3,497) (2,307)
----------------------------------------------------------------------
Net (loss) income $(1,873) $(224) $5,560 $3,463
----------------------------------------------------------------------
Diluted net (loss) income per
share $(0.06) $0.09
----------------------------------------------------------------------
Diluted weighted-average
shares 31,238 37,022
----------------------------------------------------------------------
Supplemental presentation of
financial measures:
(Loss) Income from operations $(2,779) $(451) $9,057 $5,827
EBITDA addbacks:
Amortization 2,847 - - 2,847
Depreciation 1,538 482 - 2,020
----------------------------------------
EBITDA $1,606 $31 $9,057 $10,694
========================================
Schedule 9
BIOSCRIP, INC.
Statement of Operations Reconciliation between GAAP and Non-GAAP
Measures
For the Six Months Ended June 30, 2004
(unaudited)
MIM Corp. Chronimed Special BioScrip
As Reported As Reported Charges As Adjusted
----------------------------------------------------------------------
Revenue $302,178 $300,001 $- $602,179
Cost of revenue 268,364 267,844 - 536,208
----------------------------------------------------------------------
Gross profit 33,814 32,157 - 65,971
% of Revenue 11.2% 10.7% 11.0%
Operating expenses
Selling, general and
admin. expenses 25,102 26,643 - 51,745
Amortization of
intangibles 1,408 - - 1,408
Special charges - - - -
----------------------------------------------------------------------
Total operating
expenses 26,510 26,643 - 53,153
% of Revenue 8.8% 8.9% 8.8%
Income from operations 7,304 5,514 - 12,818
% of Revenue 2.4% 1.8% 2.1%
Interest income (expense),
net (427) 132 - (295)
Other income - 75 - 75
----------------------------------------------------------------------
Income before income taxes 6,877 5,721 - 12,598
Income tax expense (2,751) (2,174) - (4,925)
----------------------------------------------------------------------
Net income $4,126 $3,547 $- $7,673
----------------------------------------------------------------------
Diluted net income per
share $0.18 $0.21
----------------------------------------------------------------------
Diluted weighted-average
shares 22,724 37,284
----------------------------------------------------------------------
Supplemental presentation
of financial measures:
Income from operations $7,304 $5,514 $- $12,818
EBITDA addbacks:
Amortization 1,408 - - 1,408
Depreciation 1,045 1,130 - 2,175
-------------------------------------------
EBITDA $9,757 $6,644 $- $16,401
===========================================
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