BioScrip, Inc. (BIOS) saw its loss widen to $19.43 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $9.54 million, or $0.17 a share. Revenue during the quarter dropped 8.66 percent to $217.81 million from $238.46 million in the previous year period. Gross margin for the quarter expanded 317 basis points over the previous year period to 30.11 percent. Operating margin for the quarter stood at negative 2.58 percent as compared to a negative 0.14 percent for the previous year period.
Operating loss for the quarter was $5.63 million, compared with an operating loss of $0.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.18 million compared with $7.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 73 basis points in the quarter to 2.38 percent from 3.11 percent in the last year period.
"I am pleased with our Company’s first quarter performance, which was in line with our plan. Our sales team met our revenue target for the quarter and continued to increase our core revenue mix. In addition, our gross profit margin improved 320 basis points year over year and adjusted EBITDA met our expectations, driven by improved core revenue mix, supply chain efficiencies and cost-structure improvements," said Daniel E. Greenleaf, president and chief executive officer. "We also successfully completed the integration of the Home Solutions business and we remain on track to realize the full $17.0 million of cost synergies and incremental $23.0 million to $25.0 million in cost savings."
For fiscal year 2017, BioScrip, Inc. forecasts net loss to be in the range of $53.40 million to $35.90 million. The company projects 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 $54.29 million as at Mar. 31, 2017, up 134.49 percent or $31.14 million from $23.15 million on Mar. 31, 2016. Current ratio was at 1.45 as on Mar. 31, 2017, up from 1.17 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 28 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 19 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 31 for the same period last year.
Debt moves up
BioScrip, Inc. has witnessed an increase in total debt over the last one year. It stood at $472.50 million as on Mar. 31, 2017, up 11.46 percent or $48.57 million from $423.93 million on Mar. 31, 2016. Total debt was 78.43 percent of total assets as on Mar. 31, 2017, compared with 84.20 percent on Mar. 31, 2016.
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