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BioScrip's pharmacy sales climb in 2Q
July 30th, 2010
ELMSFORD, N.Y. – BioScrip Inc. recorded increases in pharmacy sales and overall revenue, along with improved operating results, for its 2010 second quarter.
The company said Friday that starting with the second quarter its financial results have been realigned into two segments, pharmacy services and infusion/home health services, following its acquisition of Critical Homecare Solutions (CHS), a provider of home infusion and home nursing products and services. The $375 million deal closed in March.
For the quarter ended June 30, total revenue climbed 25% to $412 million from $328.7 million a year earlier, BioScrip reported.
Pharmacy services sales, which include the company's retail pharmacy network, rose 4.5% in the second quarter to $305.4 million from $292.3 million in the prior-year period. BioScrip said the gain stemmed mainly from organic sales growth combined with normalized drug inflation, partially offset by the impact of the industrywide average wholesale price class-action settlement and price concessions in the first quarter.
Infusion/home health services revenue for the second quarter jumped to $106.7 million from $36.4 million a year earlier, with CHS revenue contributing $64.8 million. Excluding the CHS sales, infusion/home health services revenue increased 18.7%, according to BioScrip.
Operating profit in the 2010 second quarter came in at $13.5 million, or 3.3% of revenue, compared with $5.2 million, or 1.6% of revenue, in the year-ago span. The 2010 quarter includes $1.1 million of CHS transaction and integration expenses.
During the second quarter, BioScrip generated $26.3 million of segment adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), or 6.4% of total revenue, versus $14 million, or 4.3% of total revenue, a year earlier. Pharmacy services tallied $12.4 million of segment adjusted EBITDA, or 4.1% of that segment's revenue, compared with $11.3 million, or 3.9% of revenue, in the prior-year period.
Net income for the second quarter was $3.1 million, or 6 cents per diluted share, compared with $4.4 million, or 11 cents per diluted share, a year ago. Adjusting for one-time transaction related expenses in 2010, earnings per diluted share would have been 7 cents in both periods.
"The CHS acquisition is meeting all of our expectations. Our strong second-quarter results reflect the execution of our vision for margin and geographic expansion, with a focus on increasing profitability through a targeted approach," BioScrip chairman and chief executive officer Richard Friedman said in a statement.
"We are focused on changing the paradigm of health care services in the alternate site and home care setting. Our efforts are aimed at capitalizing on trends favoring home health care and specialty pharmacy," Friedman added.
BioScrip provides specialty and retail pharmacy services along with pharmacy benefit management, infusion and other health care services. It operates a network of 33 retail community pharmacies in 17 states and the District of Columbia.