Oct 30 2009
BioScrip, Inc. (Nasdaq: BIOS) today announced third quarter net income of $5.7 million, or $0.14 per diluted share, on revenues of $333.5 million. These results compare to net income of $1.4 million, or $0.04 per share, on revenues of $359.4 million for the third quarter of 2008. Third quarter 2009 EBITDAO was $8.9 million compared to $5.3 million for the same period a year ago.
Richard H. Friedman, BioScrip’s Chairman and Chief Executive Officer, stated, “Our results reflect the steady progress of our strategy to provide a full and comprehensive continuum of care, expand our clinical management reach and local market presence, while delivering improved operating margins. We continue to upgrade our talent base with key hires to support the growth of our business.”
Results of Operations
Revenue for the third quarter of 2009 totaled $333.5 million, compared to $359.4 million for the same period a year ago. Revenue declines were expected due to the previously announced elimination of the Medicare Competitive Acquisition Program (“CAP”) effective December 31, 2008 and the termination of the United Health Group (“UHG”) organ transplant and HIV/AIDS contracts, partially offset by increased sales of higher margin infusion therapies and other specialty sales. Excluding the effects of these contracts, 2009 third quarter revenues were 7.9% higher than the 2008 comparable period.
Gross profit for the third quarter of 2009 was $41.5 million, or 12.4% compared to $36.1 million, or 10% for the third quarter of 2008. The increase was primarily the result of improved product mix due to our continued focus on higher margin therapies as well as improved supply chain programs.
Third quarter 2009 operating profit was $6.7 million, or 2.0% compared to $2.8 million, or 0.8% for the third quarter of 2008. The increase in operating income was a result of the improved product and therapy mix discussed above, which was partially offset by bad debt expense returning to normalized levels.
Revenue for the nine months ended September 30, 2009 totaled $988.0 million compared to $1,035.3 million for the comparable period a year ago. Excluding the elimination of CAP and UHG, the year-to-date 2009 revenue grew 7.4% over the comparable period in 2008.
Gross profit for the nine months ended September 30, 2009 was $115.9 million, or 11.7% compared to $104.2 million, or 10.1% for the same period in 2008. The increase in gross margin for the year was the result of improved product and therapy mix, the elimination of lower margin business and improved supply chain programs.
Operating profit for the nine months ended September 30, 2009 was $16.1 million, or 1.6% compared to $6.4 million, or 0.6% for the comparable period of 2008. Net income for the nine months ended 2009 was $13.4 million, or $0.34 per diluted share, compared to $2.6 million, or $0.07 per diluted share, for the same period one year ago.
The Company also announced that Steven Schelhammer has resigned as a member of the company's Board of Directors in order to devote his full-time attention to his position as Chief Executive Officer of Phytel, Inc. “On behalf of the entire Board of Directors, we thank Steve for his important contributions to BioScrip,” stated Friedman.
SOURCE BioScrip, Inc.