FOR IMMEDIATE RELEASE

 

BioScrip reports SECOND QUARTER 2012 financial results

 

Elmsford, NY – August 8, 2012 – BioScrip, Inc. (NASDAQ: BIOS) today announced 2012 second quarter financial results. Second quarter revenue, from continuing operations, was $155.9 million and net loss, from continuing operations, was $4.3 million, or $0.07 per diluted share. Consolidated Adjusted EBITDA for the second quarter was $9.0 million.

 

As a result of the sale of the Company’s traditional and specialty pharmacy mail operations and community retail pharmacy stores on May 4, 2012 (the “Pharmacy Services Asset Sale”), the Company’s financial statements reflect the discontinued operations’ results for the three months ended June 30, 2012 and 2011 and assets transferred in the transaction as of June 30, 2012 and December 31, 2011, separate from the continuing operations of the business. The remaining assets and liabilities of the divested business that were not transferred as a part of the Pharmacy Services Asset Sale are included in continuing operations. The Company anticipates the collection, payment or resolution of these balances during the remainder of the year.

 

During the first quarter of 2012, the Company changed its operating and reportable segments from “Infusion/Home Health Services” and “Pharmacy Services” to its new operating and reportable segments: “Infusion Services,” “Home Health Services,” and “PBM Services.” As a result, prior period financial statements and related disclosures have been reclassified to conform to the current year presentation, and we have included the quarterly financial statements for 2011 as part of this release.

 

Second Quarter Highlights

·

Revenue from continuing operations increased $24.3 million or 18.5% compared to prior year;

·

Gross profit from continuing operations was $53.0 million or 34.0% of revenue, compared to $51.8 million or 39.4% of revenue in the prior year;

·

Adjusted EBITDA from continuing operations was $9.0 million, compared to $11.5 million in the prior year and $8.4 million in the first quarter, a 7.5% sequential quarter improvement; and

·

The Company completed the Pharmacy Services Asset Sale.

 

 

Acquisition of InfuScience

On July 31, 2012, BioScrip acquired privately held InfuScience, Inc. (“InfuScience”) for $38.0 million in cash. The purchase price could increase an additional $3.0 million based on the results of operations during the 24 month period following the closing. Headquartered in Gurnee, IL, InfuScience acquires, develops and operates businesses providing alternate site infusion pharmacy services. InfuScience generates approximately $40.0 million in annual revenue and has five infusion centers located in Eagan, Minnesota; Omaha, Nebraska; Chantilly, Virginia; Charleston, South Carolina; and Savannah, Georgia.

 

“The second quarter results demonstrate our progress in executing on our strategic plan,” said Rick Smith, President and Chief Executive Officer of BioScrip. “We were able to close on the divestiture of the non-core pharmacy services assets and redeploy a portion of the proceeds towards the acquisition of InfuScience, while delivering sequential improvement on our Adjusted EBITDA.”

 

Smith continued, “The InfuScience transaction is consistent with our stated goal of building our infusion business through strategic and opportunistic acquisitions, which meet our financial criteria and build our national presence. We are pleased to have the InfuScience team join us and believe their focus on clinical excellence and high-touch service model are consistent with BioScrip’s customer-centric approach.”

 

Results of Operations

 

Second Quarter 2012 versus Second Quarter 2011

 

Revenue from continuing operations for the second quarter of 2012 totaled $155.9 million, compared to $131.6 million for the same period a year ago, an increase of $24.3 million or 18.5%. Infusion Services segment revenue was $111.0 million in the second quarter, compared to revenue of $89.9 million for the same period in 2011, an increase of $21.1 million or 23.5%. This increase was driven primarily by volume growth. Home Health Services segment revenue for the second quarter of 2012 was $16.9 million compared to revenue of $17.7 million in the prior year, a decrease of $0.8 million or 4.6%. This decrease was primarily the result of reimbursement reductions from Medicare and the state of Tennessee TennCare program. PBM Services segment revenue for the second quarter of 2012 was $28.1 million, compared to $24.0 million for the prior year period, an increase of $4.0 million or 16.7%. Revenue in this segment benefitted from the addition of a new Managed Medicare contract in late 2011.

 

Consolidated gross profit for the second quarter of 2012 was $53.0 million, or 34.0% of revenue, compared to $51.8 million, or 39.4% of revenue, for the second quarter of 2011. The gross profit margin was impacted primarily by therapy mix in the Infusion Services segment. As previously anticipated, in connection with the Pharmacy Services Asset Sale, the Company continued to provide certain lower margin services on behalf of key customers during the second quarter. Additionally, there was a substantial decrease in cross referrals of certain therapies from the specialty sales personnel affiliated with the divested business. The Company believes the impact of these factors is short-term in nature.

 

 

During the second quarter of 2012, BioScrip generated $15.5 million of segment Adjusted EBITDA, or 9.9% of total revenue, compared to $16.9 million, or 12.8% of total revenue in the same period last year. The Infusion Services Segment Adjusted EBITDA was $8.0 million, or 7.2% of segment revenue, compared to $8.3 million, or 9.3% of segment revenue, in the prior year. These results were also affected by the Pharmacy Services Asset Sale as gross profit was impacted by the factors highlighted above and by an increased cost allocation to the Infusion Segment of certain retained corporate resources that are being redirected to grow and support the Infusion business.

 

The Home Health Services Segment Adjusted EBITDA in the second quarter of 2012 was $1.1 million, or 6.4% of segment revenue. This compares to Segment Adjusted EBITDA of $1.8 million, or 10.1% of segment revenue in the comparable prior year period. The PBM Services Segment Adjusted EBITDA was $6.4 million, or 22.7% of segment revenue, for the second quarter of 2012 compared to $6.8 million, or 28.1% of segment revenue, in the prior year.

 

On a consolidated basis, BioScrip reported $9.0 million of Adjusted EBITDA during the second quarter of 2012, or 5.8% of total revenue, compared to $11.5 million, or 8.8% of total revenue, in the same period last year. On a sequential basis, Adjusted EBITDA has increased by $0.6 million, or 7.5%, and Adjusted EBITDA as a percent of revenue from continuing operations has increased 0.4% from 5.4% to 5.8%.

 

Interest expense in the second quarter of 2012 was $6.8 million compared to $6.2 million in the prior year.

 

Income tax expense for continuing operations in the second quarter was $0.4 million compared to income tax benefit of $0.1 million in the second quarter of 2011. Income tax expense in Q2 2012 relates to state taxes and alternative minimum tax.

 

Net loss from continuing operations for the second quarter of 2012 was $4.3 million, or $0.07 per diluted share, compared to a net loss of $1.6 million, or $0.03 per diluted share, in the comparable prior year period.

 

Six Months Ended 2012 versus Six Months Ended 2011

 

Revenue from continuing operations for the six months ended June 30, 2012 totaled $311.5 million, compared to $262.4 million for the same period a year ago, an increase of $49.1 million or 18.7%. Infusion Services segment revenue was $220.0 million for the six months ended June 30, 2010, compared to revenue of $181.6 million for the same period in 2011, an increase of $38.4 million or 21.2%. This increase was driven primarily by volume growth. Home Health Services segment revenue for the six months ended June 30, 2012 was $33.6 million compared to revenue of $34.9 million in the prior year, a decrease of $1.3 million or 3.8%. This decrease was primarily the result of reimbursement reductions from Medicare and the state of Tennessee TennCare program. PBM Services segment revenue for the six months ended June 30, 2012 was $57.9 million, compared to $46.0 million for the prior year period, an increase of $12.0 million or 26.1%. The performance in this segment was impacted by the addition of a new Managed Medicare contract in late 2011.

 

 

Consolidated gross profit for the six months ended June 30, 2012 was $106.6 million, or 34.2% of revenue, compared to $103.2 million, or 39.3% of revenue, in the comparable prior year period. The gross profit margin was impacted primarily by therapy mix in the Infusion Services segment. As previously anticipated, in connection with the Pharmacy Services Asset Sale, the Company continued to provide certain lower margin services on behalf of key customers during the first half of the year. Additionally, there was a substantial decrease in cross referrals of certain therapies from the specialty sales personnel affiliated with the divested business. The Company believes the impact of these factors is short-term in nature.

 

During the six months ended June 30, 2012, BioScrip generated $30.4 million of segment Adjusted EBITDA, or 9.8% of total revenue, compared to $33.3 million, or 12.7% of total revenue in the same period last year. The Infusion Services Segment Adjusted EBITDA was $15.8 million, or 7.2% of segment revenue, compared to $17.6 million, or 9.7% of segment revenue, in the prior year. These results were also affected by the Pharmacy Services Asset Sale as gross profit was impacted by the factors highlighted above and by an increased cost allocation to the Infusion Segment of certain retained corporate resources that are being redirected to grow and support the Infusion business.

 

The Home Health Services Segment Adjusted EBITDA for the six months ended June 30, 2012 was $2.2 million, or 6.4% of segment revenue. This compares to Segment Adjusted EBITDA of $2.8 million, or 8.0% of segment revenue in the comparable prior year period. The PBM Services Segment Adjusted EBITDA was $12.5 million, or 21.5% of segment revenue, for the six months ended June 30, 2012 compared to $12.9 million, or 28.0% of segment revenue, in the prior year.

 

On a consolidated basis, BioScrip reported $17.4 million of Adjusted EBITDA for the six months ended June 30, 2012, or 5.6% of total revenue, compared to $21.3 million, or 8.1% of total revenue, in the same period last year.

 

Interest expense for the six months ended June 30, 2012 was $13.4 million compared to $12.8 million in the prior year.

 

Income tax benefit for continuing operations for the six months ended June 30, 2012 was $0.1 million compared to income tax benefit of $0.5 million in 2011.

 

Net loss from continuing operations for the six months ended June 30, 2012 was $6.3 million, or $0.11 per diluted share, compared to a net loss of $2.7 million, or $0.05 per diluted share, in the comparable prior year period.

 

 

2011 Quarterly Financial Data, Restated for Discontinued Operations

 

A summary of quarterly financial information, restated to exclude discontinued operations, for the year ended December 31, 2011 is as follows (in thousands):

 

		First Quarter				Second Quarter				Third Quarter				Fourth Quarter
Results of Operations:
Revenue:
Infusion Services		$	91,725			$	89,853			$	90,246			$	102,458
Home Health Services			17,208				17,673				17,548				17,206
PBM Services			21,904				24,049				26,036				38,600
Total revenue		$	130,837			$	131,575			$	133,830			$	158,264
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services		$	9,284			$	8,340			$	7,557			$	9,947
Home Health Services			1,006				1,787				1,663				1,498
PBM Services			6,123				6,764				7,961				9,274
Total Segment Adjusted EBITDA			16,413				16,891				17,181				20,719
Corporate overhead			(6,650	)			(5,362	)			(5,443	)			(5,853	)
Consolidated Adjusted EBITDA			9,763				11,529				11,738				14,866
Interest expense, net			(6,612	)			(6,235	)			(6,528	)			(6,167	)
Income tax benefit (expense)			417				127				1,862				(2,841	)
Depreciation			(1,333	)			(1,647	)			(1,784	)			(1,827	)
Amortization of intangibles			(819	)			(819	)			(858	)			(880	)
Stock-based compensation expense			(1,132	)			(1,120	)			(1,731	)			(484	)
Acquisition, integration, severance and other employee costs			-				-				(1,284	)			(190	)
Restructuring expense			(1,299	)			(3,475	)			(1,750	)			89
Income (loss) from continuing operations, net of income taxes		$	(1,015	)		$	(1,640	)		$	(335	)		$	2,566

 

Liquidity and Capital Resources

For the six months ended June 30, 2012, BioScrip generated $42.8 million in net cash from continuing operating activities compared to $9.5 million generated from operating activities during the first six months of 2011, an increase of $33.3 million. This increase was due to the collection of accounts receivable retained after the Pharmacy Services Asset Sale, net of accounts payable paid related to those businesses. The Company’s cash balance at the end of the second quarter was $138.4 million.

 

The Company’s outstanding debt as of June 30, 2012 was comprised of $30.0 million under its revolving credit facility and $225.0 million of senior unsecured notes. The Company continues to evaluate options to deploy its capital resources, taking into account its cost of capital as well as growth opportunities in support of its strategic plan.

 

Outlook

The Company is increasing its target annualized revenue from $600-$620 million to $620-$650 million, and reiterating its annualized Adjusted EBITDA of $62-65 million in the fourth quarter of 2012. As previously disclosed, the Company anticipates certain short-term factors and additional costs during the third quarter of 2012 will impact near-term financial results.

 

 

Conference Call

BioScrip will host a conference call to discuss its second quarter 2012 financial results on August 9, 2012 at 9:00 a.m. Eastern Time. Interested parties may participate in the conference call by dialing 800-750-5857 (US), or 212-231-2921 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available for two weeks after the call's completion by dialing 800-633-8284 (US) or 402-977-9140 (International) and entering conference call ID number 21600696. An audio webcast and archive will also be available under the “Investor Relations” section of the BioScrip website at www.bioscrip.com for a period of 30 days following the conference call.

 

About BioScrip, Inc.

 

BioScrip, Inc. provides comprehensive infusion and home care solutions. By partnering with patients, physicians, healthcare payors, government agencies and pharmaceutical manufacturers we are able to provide access to infusible medications and management solutions. Our goal is to optimize outcomes for chronic and other complex healthcare conditions and enhance the quality of patient life. BioScrip brings unsurpassed clinical competence in providing high-touch, comprehensive infusion and nursing services to patients in the most convenient ways possible. Through our customer services and treatments we aim to ensure the best possible therapy outcome.

 

Forward Looking Statements – Safe Harbor

 

This press release includes statements that may constitute "forward-looking statements," including projections of certain measures of the Company's results of operations, projections of certain charges and expenses, and other statements regarding the Company's goals, regulatory approvals and strategy.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts.  In some cases, forward-looking statements can be identified by words such as "may," "should," "could," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "predict," "potential," "continue"  or comparable terms. Because such statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Important factors that could cause  or contribute to such differences include but are not limited to risks associated with: the Company’s ability to grow its Infusion segment organically or through acquisitions and obtain financing in connection therewith; its ability to reduce operating costs while sustaining growth; reductions in federal, state and commercial payor reimbursement for the Company’s products and services; increased government regulation related to the health care and insurance industries; as well as the risks described in the Company's periodic filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31,  2012.  The Company does not undertake any duty to update these forward-looking statements after the date hereof, even though the Company’s situation may change in the future.  All of the forward-looking statements herein are qualified by these cautionary statements.

 

 

Reconciliation to Non-GAAP Financial Measures

 

In addition to reporting all financial information required in accordance with generally accepted accounting principles (GAAP), the Company is also reporting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP and should not be used in isolation or as a substitute or alternative to net income, operating income or any other performance measure derived in accordance with GAAP, or as a substitute or alternative to cash flow from operating activities or a measure of our liquidity. In addition, the Company's definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled non-GAAP financial measures reported by other companies. EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA, as defined by the Company, represents net income before net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense, acquisition, integration, severance and other employee costs, and restructuring-related expenses. As part of restructuring, the Company may incur significant charges such as the write down of certain long−lived assets, temporary redundant expenses, retraining expenses, potential cash bonus payments and potential accelerated payments or terminated costs for certain of its contractual obligations. Management believes these non-GAAP financial measures provide additional important insight into the Company’s ongoing operations and meaningful metrics to evidence the Company's continuing profitability trend. For a full reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measures, please see the attachments to this earnings release. 

 

Contacts:

Hai Tran

BioScrip, Inc.

952-979-3768

 

Lisa Wilson

In-Site Communications, Inc.

212-759-3929

 

 

Schedule 1

BIOSCRIP, INC

 

CONSOLIDATED BALANCE SHEETS

(in thousands, except for share amounts)

 

		June 30,				December 31,
		2012				2011
		(unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	138,423			$	-
Receivables, less allowance for doubtful accounts of $22,719 and $22,728 at June 30, 2012 and December 31, 2011, respectively			146,469				225,412
Inventory			21,242				17,997
Prepaid expenses and other current assets			5,725				10,184
Current assets from discontinued operations			-				38,876
Total current assets			311,859				292,469
Property and equipment, net			20,857				26,951
Goodwill			312,387				312,387
Intangible assets, net			18,058				19,622
Deferred financing costs			3,353				3,992
Investments in and advances to unconsolidated affiliate			6,949				-
Other non-current assets			1,455				1,552
Non-current assets from discontinued operations			-				20,129
Total assets		$	674,918			$	677,102
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt		$	31,230			$	66,161
Accounts payable			28,842				79,155
Claims payable			10,906				11,766
Amounts due to plan sponsors			25,681				25,219
Accrued interest			5,845				5,825
Accrued expenses and other current liabilities			36,493				32,648
Total current liabilities			138,997				220,774
Long-term debt, net of current portion			226,216				227,298
Deferred taxes			9,008				10,295
Other non-current liabilities			5,798				3,456
Total liabilities			380,019				461,823
Stockholders' equity
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued or outstanding			-				-
Common stock, $.0001 par value; 125,000,000 shares authorized; shares issued: 59,115,499 and 57,800,791, respectively; shares outstanding: 56,534,396 and 55,109,038, respectively			6				6
Treasury stock, shares at cost: 2,582,520 and 2,638,421, respectively			(10,311	)			(10,461	)
Additional paid-in capital			385,931				375,525
Accumulated deficit			(80,727	)			(149,791	)
Total stockholders' equity			294,899				215,279
Total liabilities and stockholders' equity		$	674,918			$	677,102

 

 

Schedule 2

BIOSCRIP, INC

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2012				2011				2012				2011
Product revenue		$	108,557			$	87,717			$	215,360			$	177,499
Service revenue			47,344				43,858				96,174				84,913
Total revenue			155,901				131,575				311,534				262,412
Cost of product revenue			75,120				56,667				147,446				114,276
Cost of service revenue			27,740				23,078				57,525				44,954
Total cost of revenue			102,860				79,745				204,971				159,230
Gross profit			53,041				51,830				106,563				103,182
% of revenue			34.0	%			39.4	%			34.2	%			39.3	%
Operating expenses
Selling, general and administrative expenses			44,692				40,430				89,354				81,829
Bad debt expense			3,772				2,638				7,237				5,293
Acquisition and integration expenses			636				-				808				-
Restructuring expense			202				3,475				502				4,774
Amortization of intangibles			878				819				1,757				1,638
Total operating expense			50,180				47,362				99,658				93,534
% of revenue			32.2	%			36.0	%			32.0	%			35.6	%
Income from continuing operations			2,861				4,468				6,905				9,648
Interest expense, net			6,790				6,235				13,359				12,847
Loss from continuing operations before income taxes			(3,929	)			(1,767	)			(6,454	)			(3,199	)
Income tax expense (benefit)			364				(127	)			(138	)			(544	)
Loss from continuing operations, net of income taxes			(4,293	)			(1,640	)			(6,316	)			(2,655	)
Income (loss) from discontinued operations, net of income taxes			76,059				(686	)			75,379				3,270
Net income (loss)		$	71,766			$	(2,326	)		$	69,063			$	615
Basic weighted average shares			55,746				54,298				55,143				54,216
Diluted weighted average shares			55,746				54,298				55,143				54,216
Basic loss per share from continuing operations		$	(0.07	)		$	(0.03	)		$	(0.11	)		$	(0.05	)
Basic income (loss) per share from discontinued operations			1.36				(0.01	)			1.36				0.06
Basic net income (loss) per share		$	1.29			$	(0.04	)		$	1.25			$	0.01
Diluted loss per share from continuing operations		$	(0.07	)		$	(0.03	)		$	(0.11	)		$	(0.05	)
Diluted income (loss) per share from discontinued operations			1.36				(0.01	)			1.36				0.06
Diluted net income (loss) per share		$	1.29			$	(0.04	)		$	1.25			$	0.01

 

 

Schedule 3

BIOSCRIP, INC

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

 

		Six Months Ended
		June 30,
		2012				2011
Cash flows from operating activities:
Net income		$	69,063			$	615
Less: income from discontinued operations, net of income taxes			75,379				3,270
Loss from continuing operations, net of income taxes			(6,316	)			(2,655	)
Adjustments to reconcile loss from continuing operations, net of income taxes to net cash provided by operating activities:
Depreciation			3,981				2,980
Amortization of intangibles			1,757				1,638
Amortization of deferred financing costs			576				503
Change in deferred income tax			1,404				(167	)
Compensation under stock-based compensation plans			2,711				2,252
Loss on disposal of fixed assets			45				64
Changes in assets and liabilities:
Receivables, net of bad debt expense			78,925				(7,905	)
Inventory			(3,104	)			2,337
Prepaid expenses and other assets			4,769				(63	)
Accounts payable			(50,313	)			(803	)
Claims payable			(860	)			2,161
Amounts due to plan sponsors			462				4,062
Accrued expenses and other liabilities			8,797				5,144
Net cash provided by operating activities from continuing operations			42,834				9,548
Net cash (used in) provided by operating activities from discontinued operations			(21,195	)			28,950
Net cash provided by operating activities			21,639				38,498
Cash flows from investing activities:
Purchases of property and equipment, net			(3,682	)			(4,422	)
Cash consideration paid for acquisitions, net of cash acquired			(466	)			-
Cash consideration paid to DS Pharmacy			(2,935	)			-
Cash consideration paid for unconsolidated affiliate, net of cash acquired			(7,100	)			-
Net cash used in investing activities from continuing operations			(14,183	)			(4,422	)
Net cash provided by (used in) investing activities from discontinued operations			161,499				(1,447	)
Net cash provided by (used in) investing activities			147,316				(5,869	)
Cash flows from financing activities:
Borrowings on line of credit			848,633				841,200
Repayments on line of credit			(882,455	)			(874,301	)
Repayments of capital leases			(2,211	)			(59	)
Deferred and other financing costs			-				(22	)
Net proceeds from exercise of employee stock compensation plans			5,675				691
Surrender of stock to satisfy minimum tax withholding			(174	)			(138	)
Net cash used in financing activities			(30,532	)			(32,629	)
Net change in cash and cash equivalents			138,423				-
Cash and cash equivalents - beginning of period			-				-
Cash and cash equivalents - end of period		$	138,423			$	-
DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest		$	13,641			$	14,020
Cash paid during the period for income taxes		$	313			$	682
DISCLOSURE OF NON-CASH TRANSACTIONS:
Capital lease obligations incurred to acquire property and equipment		$	20			$	-

 

 

Schedule 4

BIOSCRIP, INC

 

Reconciliation between GAAP and Non-GAAP Measures

(unaudited and in thousands)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2012				2011				2012				2011
Results of Operations:
Revenue:
Infusion Services - product revenue		$	108,557			$	87,717			$	215,360			$	177,499
Infusion Services - service revenue			2,416				2,136				4,667				4,079
Total Infusion Services revenue			110,973				89,853				220,027				181,578
Home Health Services - service revenue			16,860				17,673				33,571				34,881
PBM Services - service revenue			28,068				24,049				57,936				45,953
Total revenue		$	155,901			$	131,575			$	311,534			$	262,412
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services		$	8,026			$	8,340			$	15,809			$	17,624
Home Health Services			1,075				1,787				2,155				2,793
PBM Services			6,364				6,764				12,462				12,887
Total Segment Adjusted EBITDA			15,465				16,891				30,426				33,304
Corporate overhead			(6,458	)			(5,362	)			(13,040	)			(12,012	)
Consolidated Adjusted EBITDA			9,007				11,529				17,386				21,292
Interest expense, net			(6,790	)			(6,235	)			(13,359	)			(12,847	)
Income tax (expense) benefit			(364	)			127				138				544
Depreciation			(2,050	)			(1,647	)			(3,981	)			(2,980	)
Amortization of intangibles			(878	)			(819	)			(1,757	)			(1,638	)
Stock-based compensation expense			(1,745	)			(1,120	)			(2,711	)			(2,252	)
Acquisition, integration, severance and other employee costs			(1,271	)			-				(1,530	)			-
Restructuring expense			(202	)			(3,475	)			(502	)			(4,774	)
Loss from continuing operations, net of income taxes		$	(4,293	)		$	(1,640	)		$	(6,316	)		$	(2,655	)