BioScrip (NASDAQ: BIOS) reported Q2 EPS of ($0.14), $0.02 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $175.8 million versus the consensus estimate of $168.71 million.

• Net revenue of $175.8 million, including core product mix of 75.1%, compared to 73.6% in the prior year quarter, reflecting the impact of the implementation of ASC 606*, which resulted in the recognition of amounts previously reported as bad debt expense as a reduction to revenue
• Net loss from continuing operations of $15.1 million, a $14.0 million improvement compared to the prior year quarter
• Adjusted EBITDA of $11.4 million, 14% above the prior year quarter, driven by a 510 basis point improvement in gross profit margin and a $3.0 million reduction in operating expenses, reflecting ASC 606 pro forma adjustments
• Net cash used in operating activities of $15.1 million, reflecting operational cash use of $7.8 million and interest payments of $7.3 million
• Liquidity of $20.8 million at June 30, 2018, consisting of cash and equivalents
• Operational cash flow and liquidity impacted by the timing of strategic inventory purchases related to product shortages and recalls, temporary decreases in cash collections of accounts receivable, as well as payment of 2017 incentive compensation; operational cash flow is expected to return to more normalized levels beginning in the third quarter of 2018

Daniel E. Greenleaf, President and Chief Executive Officer, commented, “BioScrip achieved record second quarter adjusted EBITDA of $11.4 million, up 14% compared to the prior year period, driven by improved core product mix, higher gross profit margin, and ongoing operating expense discipline. We commenced the third quarter with our best sales month of the year during July and are reaffirming our full year 2018 guidance for revenue between $688 million and $698 million*, and adjusted EBITDA between $54 million and $58 million.

“We remain increasingly confident that BioScrip can achieve at least $75 million in adjusted EBITDA in 2019 and are positioning the Company for revitalized longer-term revenue growth and enhanced profitability though key initiatives in sales force productivity, revenue cycle management, procurement and managed care relationships.”

GUIDANCE:

BioScrip sees FY2018 EPS of ($0.40)-($0.34), versus the consensus of ($0.33). BioScrip sees FY2018 revenue of $688-698 million, versus the consensus of $694.03 million.

For earnings history and earnings-related data on BioScrip (BIOS) click here.