ELMSFORD, N.Y. — BioScrip Inc. reported a robust gain in pharmacy services revenue for its 2011 second quarter.
BioScrip said Monday that for the second quarter ended June 30, pharmacy services sales rose 8.7% to $332.1 million from $305.4 million a year earlier. Pharmacy services represented about 75% of the company’s revenue for the quarter.
Overall sales for the second quarter came in at $441.4 million, up 7.1% from $412 million in the prior-year period. Infusion/home health services accounted for $109.3 million of the 2011 quarter’s sales, with that business segment posting a 2.5% year-over-year gain.
On the earnings side, BioScrip saw a net loss of $2.3 million, or 4 cents per diluted share, for the 2011 second quarter versus net income of $3.1 million, or 6 cents per diluted share, a year ago.
Excluding the after-tax impact of $8.7 million in restructuring charges and a legal settlement charges, the company had net earnings of $5.5 million, or 10 cents per diluted share, in the quarter. That topped the average analyst estimate for net income of 6 cents per share, according to Thomson Financial.
On a consolidated basis, BioScrip reported $18.1 million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) during the second quarter of 2011, or 4.1% of total revenue, compared with $18.4 million, or 4.5% of total revenue, a year eariler.
BioScrip totaled $25 million of segment adjusted EBITDA, or 5.7% of total revenue, in the 2011 quarter versus $26.3 million, or 6.4% of total revenue, in the year-ago period. The pharmacy services segment generated $14.1 million of segment adjusted EBITDA, or 4.2% of segment revenue, in the quarter, up from to $12.4 million, or 4.1% of segment revenue, in the prior year. The infusion/home health segment posted $10.9 million of adjusted EBITDA, or 10.0% of segment revenue, in the quarter, down from $13.9 million, or 13% of segment revenue, a year earlier.
Second-quarter 2011 operating income came in at $4.5 million, including $8.7 million of restructuring and legal settlement charges, versus $13.5 million for the second quarter of 2010.
"In the second quarter, we continued to execute key elements of our strategic assessment and improve our competitive position. We achieved further cost savings, generated operating cash flow of $6.8 million, enabling us to reduce our debt by $4.3 million. With $18.1 million of adjusted EBITDA and growing patient census achieved in the quarter, we look forward to building on this momentum in the second half of 2011," BioScrip president and chief executive officer Rick Smith said in a statement.
"Overall, we are making positive steps forward in establishing ourselves as a recognized national provider of infusion and pharmacy services, and the initiatives we put in place with managed care payers over the last year are beginning to produce results," Smith added. "While there is still more work to be done, we are pleased to see progress as we look to the second half of the year."
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 32 community retail pharmacies in 16 states and the District of Columbia.
