BioScrip Inc. (BIOS) Posts Q4 Results, Notes 2010 Challenges

By @ibtimes on

BioScrip Inc., a national provider of specialty pharmacy and home care products and services, Friday announced 2010 fourth quarter and year-end financial results.

Fourth-quarter revenue increased 31.9 percent to $450.4 million compared to $341.6 million for the same period a year ago. The increase was primarily driven by BioScrip’s CHS acquisition, which contributed $69.4 million during the fourth quarter of 2010.
Consolidated gross profit for the fourth quarter of 2010 was $72.6 million, or 16.1 percent of revenue, compared to $41.9 million, or 12.3 percent of revenue, over the comparable quarter of 2009. The increase in gross profit percentage from 2009 to 2010 was primarily the result of the CHS acquisition.

The company reported a fourth quarter 2010 operating loss of $(3.6 million), compared to an operating loss of $(0.7 million) for the fourth quarter of 2009. The fourth-quarter loss included legal settlement expense of $3.9 million; restructuring expense of $3.5 million; CAP bad debt expense of $1.3 million; and acquisition, integration and severance expenses of $0.5 million, which on a combined basis totaled $9.2 million of the fourth quarter 2010 operating loss.

Revenue for the year ended December 31, 2010, was $1.6 billion compared to $1.3 billion for the comparable period a year ago, $207.2 million of which was contributed by CHS.

Consolidated gross profit for the year ended December 31, 2010, increased 65 percent to $260.4 million, or 15.9 percent of revenue, compared to $157.8 million, or 11.9 percent of revenue, for the same period a year ago.

Net loss for the year ended December 31, 2010, was $(69.1 million), or $(1.37) per diluted share, as compared to net income of $54.1 million, or $1.36 per diluted share for the same period last year.

Rick Smith, president and CEO of BioScrip, noted the struggles the company faced in the last 12 months and said the company is assessing its business strategy to get back on track.

“2010 was a challenging year for BioScrip. During the year, revenue and margins were impacted by pricing concessions on various specialty drugs, reimbursement pressures, the new industry-wide AWP standard and the overall impact of the weak economic environment. As a result, we commenced a strategic assessment of our business lines and overhead structure to position BioScrip for the future,” Smith stated in the press release.

Smith also noted that the company’s acquisition of CHS has positioned it as a stronger competitor in the industry.

“At the beginning of the year, we acquired CHS, which has been seamlessly integrated. Through this acquisition, we enhanced our competitive position in Infusion and Home Health Services, giving us a foundation to expand our national footprint by increasing the number of our direct managed care relationships and solidifying those that already existed. As a result, BioScrip has greater access to a larger patient population from which to grow,” Smith stated. “We are entering 2011 with an enhanced strategic focus and have recently implemented initiatives to materially lower our corporate cost structure. We believe there are significant opportunities for BioScrip to improve operating performance and cash flow generation.”

For more information visit www.bioscrip.com

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