BioScrip, Inc. (BIOS) saw its loss narrow to $12.47 million, or $0.12 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $18.44 million, or $0.30 a share.
Revenue during the quarter went down marginally by 1.49 percent to $240.12 million from $243.74 million in the previous year period. Gross margin for the quarter expanded 405 basis points over the previous year period to 31.09 percent. Operating margin for the quarter period stood at positive 2.60 percent as compared to a negative 2.63 percent for the previous year period.
Operating income for the quarter was $6.25 million, compared with an operating loss of $6.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.54 million compared with $9.04 million in the prior year period. At the same time, adjusted EBITDA margin improved 26 basis points in the quarter to 3.97 percent from 3.71 percent in the last year period.
"I am extremely pleased with the great results the BioScrip team delivered during the quarter," said Daniel E. Greenleaf, president and chief executive officer. "Our focus on driving profitable growth, improving operating processes and realizing operating cost reductions and synergies generated both revenue and Adjusted EBITDA results for the quarter ahead of our prior expectations. We are in the early stages of our 18 to 24 month turnaround initiative, and through ongoing work the BioScrip team continues to uncover opportunities to drive transformational change and unlock value throughout the organization. BioScrip remains on pace to realize at least $17.0 million of cumulative Home Solutions cost synergies by the end of 2017 and we expect an incremental $23.0 million to $25.0 million in cost structure improvements during the year, a portion of which partially offsets the negative impact of the Cures Act legislation."
For financial year 2017, BioScrip, Inc. forecasts revenue to be in the range of $920 million to $950 million. The company projects net loss to be in the range of $53.40 million to $35.90 million. The company expects diluted loss per share to be in the range of $0.45 to $0.30.
Working capital increases sharply
BioScrip, Inc. has recorded an increase in the working capital over the last year. It stood at $45.70 million as at Dec. 31, 2016, up 47.80 percent or $14.78 million from $30.92 million on Dec. 31, 2015. Current ratio was at 1.35 as on Dec. 31, 2016, up from 1.20 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 15 days for the quarter from 13 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 10 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding was almost stable at 16 days for the quarter, when compared with the previous year period.
Debt moves up
BioScrip, Inc. has witnessed an increase in total debt over the last one year. It stood at $451.93 million as on Dec. 31, 2016, up 8.09 percent or $33.81 million from $418.12 million on Dec. 31, 2015. Total debt was 74.36 percent of total assets as on Dec. 31, 2016, compared with 76.51 percent on Dec. 31, 2015.
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