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ELMSFORD, N.Y. — Pharmacy services revenue climbed by double digits in the 2011 first quarter at BioScrip Inc.
BioScrip said Tuesday that for the first quarter ended March 31, pharmacy services sales — which account for about three-quarters of the company’s overall revenue — came in at $328.8 million, up 13.8% from $289 million a year earlier.
Total revenue in the quarter surged 31.1% year over year to $439.3 million, primarily due to BioScrip’s acquisition of Critical Homecare Solutions (CHS), a home infusion and nursing provider, a little over a year ago.
Infusion/home health services revenue jumped 139.6% to $110.5 million in the quarter from $46.1 million in the prior-year period, with CHS contributing revenue of $63.3 million. Excluding the CHS sales, revenue in the infusion/home health services business rose 2.4% or $1.1 million, according to BioScrip.
On the profit side, BioScrip posted net income of $2.9 million, or 5 cents per diluted share, in the 2011 first quarter versus a net loss of $7.2 million, or 18 cents per basic share, a year earlier.
Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter totaled $16.6 million, compared with $2.7 million in the year-ago period.
BioScrip had $25.1 million of segment adjusted EBITDA in the 2011 quarter versus $10.8 million a year earlier. The pharmacy services business generated $13.7 million of segment adjusted EBITDA, up from $8 million a year ago, while the infusion/home health business generated $11.5 million of segment adjusted EBITDA, up from $2.9 million in the prior-year time span.
First-quarter 2011 operating income was $10.4 million, compared with an operating loss of $6.3 million in the 2010 quarter.
"We are beginning to realize early results of the restructuring efforts put in place last year, particularly in reducing our overall expenses," Rick Smith, president and chief executive officer of BioScrip, said in a statement. "As a result, the first quarter benefited from operating cash flow of $31.7 million and a reduction in debt of $28.8 million. Margins were up sequentially as a result of the actions taken under our strategic assessment, including focusing on improving revenue mix, supply chain initiatives and other cost reduction measures. While there is still more work to do, we believe that we are making progress in the right direction."
Based in Elmsford, N.Y., BioScrip provides retail pharmacy and specialty pharmacy services along with pharmacy benefit management, home infusion and other health care services. It operates a network of 31 community retail pharmacies in 16 states and the District of Columbia.
