BioScrip, Inc. Q2 2010 Earnings Call Transcript

BioScrip, Inc. Q2 2010 Earnings Call Transcript
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BioScrip, Inc. (BIOS)

Q2 2010 Earnings Call

July 30, 2010 08:30 pm ET


Rich Friedman

- Chairman and CEO

Stanley Rosenbaum - EVP and CFO

Rick Smith - President and COO


Mark Arnold - Piper Jaffray

Kyle Smith - Jefferies & Company

Brooks O'Neil - Dougherty & Company

Mike Petusky - Noble Research

Brian Tanquilut



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Ladies and gentlemen, thank you for standing by. Welcome to the BioScrip, Inc. 2010 second quarter conference call. (Operator Instructions). As a reminder, this conference is being recorded today, Friday, July 30, 2010. I would now like to turn the conference over to Mr. Bill Bunting. Please go ahead, sir.

Bill Bunting

Good morning and thank you for joining us today. By now you should have received a copy of our press release issued this morning. If you have not, you may access it through the Investor Relations section at our website. Rich Friedman, Chairman and Chief Executive Officer; Stanley Rosenbaum, Executive Vice President and Chief Financial Officer; and Rick Smith, President and Chief Operating Officer will host this morning's call.

The call is expected to last about 45 minutes and may be accessed through our website at BioScrip. A replay of the conference call will be available shortly after the call. Interested parties can access the replay by dialing 800-633-8284 in the United States or 402-977-9140 internationally and enter the access code 21476669.

Before we get started, I'd like to remind everyone that any statements made on the conference call today or in our press release that expressed a belief, expectation, anticipation or intent as well as those that are historical facts, are considered forward-looking statements and are protected under the Safe Harbor of the Private Securities Litigation and Reform Act.

These forward-looking statements are based on information available to BioScrip today and the company assumes no obligation to update these statements as circumstances change. These forward-looking statements may involve a number of risks and uncertainties which may cause the company's results to differ materially from such statements. Forward looking statements are qualified by inherent risk and uncertainties surrounding future expectations generally and may differ materially from the actual future experience.

Risks and uncertainties that could affect forward-looking statements including the failure to realize synergies as a result of operational efficiencies or revenue opportunities, and the risks that are described from time to time in BioScrip's reports filed with the SEC, including BioScrip's annual report on Form 10-K for the year ended December 31, 2009.

Also the company urges caution in considering any trends and guidance that maybe disclosed and discussed on the conference call. The pharmacy services, home infusion, home health industries are competitive and trends and guidance are subject to various factors, risks and influences, which are described in the company's periodic reports filed with the SEC.

In addition, as required by Regulation G, reconciliation of non-GAAP financial measures mentioned during our call today most comparable to GAAP financial measures can be found in Schedule 5 of today's press release. That schedule is available on our website under the link to 'News' found in the 'About Us' section of our home page at

Thank you, and now I'd like to turn the call over to Rich Friedman. Rich.

Rich Friedman

Thank you, Bill and good morning and thank you for joining today's call. We are extremely pleased with the accomplishments this quarter especially the seamless integration of CHS, a transformative event for BioScrip. This brings BioScrip to a whole new level in our market. Today, we reported for the second quarter revenues of $412 million, EBITDA of $18.4 million, net income of $3.1 million or $0.06 cent per diluted share and on an adjusted basis $0.07 cents per diluted share.

Second quarter results is the first full quarter inclusive of CHS acquired on March 25th. As such, it represents an important milestone for BioScrip. We now have over 120 points of service and 1,000 plus managed care relationships, direct contact with over 100,000 prescribing physicians and a patient census of over 125,000.

Our clinical expertise combined with our expanding infrastructure consisting of community and infusion pharmacies, now order and nursing capabilities provide us with a comprehensive package of services for the healthcare community.

We are seeing the tangible results of our vision, consisting of margin and geographic expansion and to be one of the leading national pharmacy and Infusion Home/Health services organization. Our model is to dispense specialty pharmaceuticals, administer IV therapies, provide comprehensive nursing services and offer clinical solutions that deliver optimal outcomes for our key constituents. Patients, physicians, payers and pharmaceutical partners.

Optical outcomes are achieved through the management of the chronically ill, focusing on education and relationships then improve compliance, adherence and retention. I want to share a few of my observations regarding BioScrip, the CHS acquisition and integration efforts. The acquisition of CHS is meeting all of our financial expectations including access to higher margin therapies as well as providing us higher margin therapies as well as providing us addition clinical expertise. Again, I am extremely pleased with the improvement and consolidated results in the second quarter.

We have achieved our internal targeted goals. We are on track and on schedule to realize the full potential that the combined CHS BioScrip organization brings to the market. Momentum is building across all our businesses. As an example, we have seen increased new patient census, in the targeted therapies. The combined organization shares a consistent work effort in business philosophy and commitment to patient care.

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