BioScrip Inc. (BIOS, Financial) filed Annual Report for the period ended 2011-12-31.
Bioscrip Inc has a market cap of $401.7 million; its shares were traded at around $6.67 with a P/E ratio of 17 and P/S ratio of 0.3.
Infusion/Home Health Services revenue for the year ended December 31, 2010 was $377.2 million, compared to revenue of $148.2 million for the same period in 2009, an increase of $229.0 million, or 154.5%. Product revenue increased $168.5 million, or 117.5%, as a result of incremental revenue contributed by the CHS business, which was acquired March 25, 2010. The acquired CHS business contributed $147.7 million of product revenue for the year ended December 31, 2010. Excluding product revenue associated with the acquired CHS business, our home infusion revenue increased $20.9 million, or 14.5%, over the prior period as a result of new infusion contracts and overall volume growth. Service revenue increased $60.5 million as a result of revenue contributed by the CHS acquisition.
Pharmacy Services revenue for the year ended December 31, 2010 was $1.3 billion compared to revenue of $1.2 billion for the same period in 2009, an increase of $80.1 million, or 6.8%. Product revenue increased $76.8 million, or 6.9%, primarily due to revenue on new contracts, including wholesale agreements, the expansion of the number of patients served on existing contracts and industry-wide drug inflation. The acquisition of the prescription pharmacy business of DS Pharmacy resulted in new revenue of $9.0 million during the period. Service revenue increased $3.3 million, or 5.3%, due to growth in our PBM business, mainly in the discount cash card operations.
Cost of Revenue and Gross Profit. Cost of revenue for the year ended December 31, 2010 was $1.4 billion compared to $1.2 billion for the same period in 2009. Gross profit for the year ended December 31, 2010 was $260.4 million compared to $157.8 million for the same period in 2009, an increase of $102.6 million, or 65.0%. Gross profit as a percentage of revenue increased to 15.9% in the year ended December 31, 2010 from 11.9% in the year ended December 31, 2009. The increase in gross profit percentage from 2009 to 2010 was primarily the result of the acquisition of CHS and purchasing synergies generated post-acquisition. The increase was partially offset by price concessions granted to a major customer starting January 1, 2010, totaling $10.6 million. Also partially offsetting the increase was a $5.0 million decrease in reimbursement from certain state governmental agencies that declined to adjust their reimbursement rates following the implementation of the industry-wide AWP settlement in September 2009. As such, our reimbursement for services provided to government funded and/or operated programs was reduced. In addition to reimbursement reductions from government funded and/or operated plans, we experienced other rate reductions from commercial payors in the wake of the AWP settlement of approximately $4.0 million.
Bad Debt Expense. For the year ended December 31, 2010, bad debt expense was $19.3 million, or 1.2% of revenue, compared to $8.6 million, or 0.6% of revenue, for the same period in 2009. Of this $10.7 million increase, $1.9 million of the total 2010 expense of $2.7 million, related to increased provisions for uncollected receivables remaining under the CMS CAP contract, which was terminated effective December 31, 2008. The write-off of CAP receivables during the year resulted in an increase in bad debt expense of 0.2% of revenue. Approximately $4.0 million of the bad debt expense increase was related to the acquisition of CHS and resulting increase in revenue. The remaining $4.0 million increase was due to our collection experience on aged balances.
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Bioscrip Inc has a market cap of $401.7 million; its shares were traded at around $6.67 with a P/E ratio of 17 and P/S ratio of 0.3.
Highlight of Business Operations:
Infusion/Home Health Services segment revenue for the year ended December 31, 2011 was $451.0 million, compared to revenue of $377.2 million for the same period in 2010, an increase of $73.8 million, or 19.6%. Product revenue increased $60.7 million, or 19.5%, as a result of incremental first quarter revenue contributed by the legacy Critical Homecare Solutions, Inc. (“CHS”) business, which was acquired March 25, 2010. Service revenue increased $13.1 million, or 20.1%, as a result of incremental revenue contributed by the CHS acquisition. This increase was partially offset by a $2.3 million revenue reduction resulting from a 5% decrease in Medicare home health rates for the calendar year 2011 and TennCare's 4.25% decrease in reimbursement rates as of July 1, 2011. Excluding first quarter incremental revenue associated with the acquired CHS business, our Infusion/Home Health Services segment revenue increased $10.5 million, or 2.8%, over the prior period as a result of overall volume growth.Infusion/Home Health Services revenue for the year ended December 31, 2010 was $377.2 million, compared to revenue of $148.2 million for the same period in 2009, an increase of $229.0 million, or 154.5%. Product revenue increased $168.5 million, or 117.5%, as a result of incremental revenue contributed by the CHS business, which was acquired March 25, 2010. The acquired CHS business contributed $147.7 million of product revenue for the year ended December 31, 2010. Excluding product revenue associated with the acquired CHS business, our home infusion revenue increased $20.9 million, or 14.5%, over the prior period as a result of new infusion contracts and overall volume growth. Service revenue increased $60.5 million as a result of revenue contributed by the CHS acquisition.
Pharmacy Services revenue for the year ended December 31, 2010 was $1.3 billion compared to revenue of $1.2 billion for the same period in 2009, an increase of $80.1 million, or 6.8%. Product revenue increased $76.8 million, or 6.9%, primarily due to revenue on new contracts, including wholesale agreements, the expansion of the number of patients served on existing contracts and industry-wide drug inflation. The acquisition of the prescription pharmacy business of DS Pharmacy resulted in new revenue of $9.0 million during the period. Service revenue increased $3.3 million, or 5.3%, due to growth in our PBM business, mainly in the discount cash card operations.
Cost of Revenue and Gross Profit. Cost of revenue for the year ended December 31, 2010 was $1.4 billion compared to $1.2 billion for the same period in 2009. Gross profit for the year ended December 31, 2010 was $260.4 million compared to $157.8 million for the same period in 2009, an increase of $102.6 million, or 65.0%. Gross profit as a percentage of revenue increased to 15.9% in the year ended December 31, 2010 from 11.9% in the year ended December 31, 2009. The increase in gross profit percentage from 2009 to 2010 was primarily the result of the acquisition of CHS and purchasing synergies generated post-acquisition. The increase was partially offset by price concessions granted to a major customer starting January 1, 2010, totaling $10.6 million. Also partially offsetting the increase was a $5.0 million decrease in reimbursement from certain state governmental agencies that declined to adjust their reimbursement rates following the implementation of the industry-wide AWP settlement in September 2009. As such, our reimbursement for services provided to government funded and/or operated programs was reduced. In addition to reimbursement reductions from government funded and/or operated plans, we experienced other rate reductions from commercial payors in the wake of the AWP settlement of approximately $4.0 million.
Bad Debt Expense. For the year ended December 31, 2010, bad debt expense was $19.3 million, or 1.2% of revenue, compared to $8.6 million, or 0.6% of revenue, for the same period in 2009. Of this $10.7 million increase, $1.9 million of the total 2010 expense of $2.7 million, related to increased provisions for uncollected receivables remaining under the CMS CAP contract, which was terminated effective December 31, 2008. The write-off of CAP receivables during the year resulted in an increase in bad debt expense of 0.2% of revenue. Approximately $4.0 million of the bad debt expense increase was related to the acquisition of CHS and resulting increase in revenue. The remaining $4.0 million increase was due to our collection experience on aged balances.
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