BioScrip, Inc (BIOS) saw its loss narrow to $11.26 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $16.78 million, or $0.28 a share. Revenue during the quarter dropped 9.17 percent to $224.54 million from $247.22 million in the previous year period. Gross margin for the quarter expanded 149 basis points over the previous year period to 27.87 percent. Operating margin for the quarter stood at negative 0.60 percent as compared to a negative 7.90 percent for the previous year period.
Operating loss for the quarter was $1.34 million, compared with an operating loss of $19.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.54 million compared with $6 million in the prior year period. At the same time, adjusted EBITDA margin contracted 85 basis points in the quarter to 1.58 percent from 2.43 percent in the last year period.
Daniel E. Greenleaf, president and chief executive officer stated, "I have just completed my first few weeks with the Company and based on my initial review it is clear we have work ahead of us. We are acutely focused on continuing to improve our operating processes and deliver on our financial commitments. I believe there is tremendous opportunity at the Company for improved financial performance over the next 18 months. I have made it clear to my leadership team and to the overall organization that the top five priorities that we must deliberately execute upon are driving profitable growth, delivering customer-centric service excellence, enhancing employee effectiveness, optimizing operational efficiencies, and exceeding cash collection targets. Executing upon these five priorities drove the tremendous financial successes and increases to shareholder value at Coram and later at Home Solutions and I am confident that they will drive similar outcomes at BioScrip."
For fiscal year 2016, BioScrip, Inc forecasts revenue to be in the range of $928 million to $934 million.
For fiscal year 2017, BioScrip, Inc forecasts revenue to be in the range of $940 million to $980 million.
Working capital drops significantly
BioScrip, Inc has witnessed a decline in the working capital over the last year. It stood at $18.45 million as at Sep. 30, 2016, down 64.91 percent or $34.12 million from $52.58 million on Sep. 30, 2015. Current ratio was at 1.13 as on Sep. 30, 2016, down from 1.36 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 32 days for the last year period. Days sales outstanding went up to 48 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 18 days for the previous year period. At the same time, days payable outstanding went up to 35 days for the quarter from 33 for the same period last year.
Debt comes down marginally
BioScrip, Inc has recorded a decline in total debt over the last one year. It stood at $436.24 million as on Sep. 30, 2016, down 2.82 percent or $12.67 million from $448.92 million on Sep. 30, 2015. Total debt was 73.27 percent of total assets as on Sep. 30, 2016, compared with 79.78 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
