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BioScrip Inc. Reports Operating Results (10-Q)

May 05, 2011 | About:
10qk

10qk

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BioScrip Inc. (BIOS) filed Quarterly Report for the period ended 2011-03-31.

Bioscrip Inc. has a market cap of $357.3 million; its shares were traded at around $6.6 with a P/E ratio of 29.9 and P/S ratio of 0.1.

Highlight of Business Operations:

Infusion/Home Health Services revenue for the three months ended March 31, 2011 was $110.5 million, compared to revenue of $46.1 million for the same period in 2010, an increase of $64.4 million, or 139.6%. The acquired CHS business contributed an incremental $63.3 million of revenue for the three months ended March 31, 2011. Excluding revenue associated with the acquired CHS business, our home infusion revenue increased $1.1 million, or 2.4%, over the prior period as a result of overall volume growth.

Pharmacy Services revenue for the three months ended March 31, 2011 was $328.8 million compared to revenue of $289.0 million for the same period in 2010, an increase of $39.9 million, or 13.8%. The increase was primarily due to revenue on new contracts, the expansion of the number of patients served on existing contracts and industry-wide drug inflation. Growth in our PBM business, mainly from an increase in the discount cash card programs, resulted in a revenue increase of $10.1 million. The acquisition of the prescription pharmacy business of DS Pharmacy resulted in new revenue of $5.6 million during the period.

Cost of Revenue and Gross Profit. Cost of revenue for the three months ended March 31, 2011 was $362.0 million compared to $296.2 million for the same period in 2010. Gross profit for the three months ended March 31, 2011 was $77.3 million compared to $38.9 million for the same period in 2010, an increase of $38.3 million, or 98.5%. Gross profit as a percentage of revenue increased to 17.6% in the three months ended March 31, 2011 from 11.6% in the three months ended March 31, 2010. The increase in gross profit and in gross profit as a percentage of revenue was primarily the result of the acquisition of CHS and purchasing synergies generated post-acquisition. In addition, the gross profit percentage increased due to our continued focus on those revenue sources which contribute to gross margin improvement.

Interest Expense, Net. Net interest expense was $7.3 million for the three months ended March 31, 2011, compared to $3.2 million for the same period in 2010. The increase in interest expense was due to a full quarter of interest on the debt instruments primarily used to finance the CHS acquisition. Interest expense included $5.8 million of interest expense related to our $225.0 million of senior unsecured notes and $1.3 million related to the $150.0 million senior secured revolving credit facility.

Net Income (Loss) and Income (Loss) Per Share. Net income for the three months ended March 31, 2011 was $2.9 million, or $0.05 per diluted share. Net loss was $7.2 million, or $0.18 per diluted share, for the same period last year.

Approximately $29.3 million of the decrease in working capital requirements related to the change in accrued expenses and other liabilities compared to the prior year. Accrued expenses and other liabilities was a source of $2.5 million of cash in 2011. Accrued expenses and other liabilities was a use of $26.8 million of cash in 2010 as a result of the acquisition of CHS and resulting cash payments of accrued expenses and other liabilities. In addition, $29.0 million of the decrease in working capital requirements was related to a reduction in inventory, which was a result of the timing of purchases and mail order process improvements. These changes were partially offset by an increase in working capital requirements related to receivables, largely due to an increase in receivables from a major customer.

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