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