ELMSFORD, N.Y.--(BUSINESS WIRE)--
BioScrip, Inc. (Nasdaq: BIOS), announced today that it will record a
fourth quarter non-cash, after-tax charge of approximately $80.0 million
for the impairment of goodwill and the write off of intangible assets in
accordance with Statement of Financial Accounting Standards (“SFAS”) 142
"Goodwill and Other Intangible Assets," and SFAS 144 “Accounting for the
Impairment or Disposal of Long Lived Assets.”The pre-tax charge totaled
$94.0 million before recognizing a tax benefit of approximately $14
million in the fourth quarter of 2008.
This write off and impairment are the result of adverse equity and other
market conditions which caused a decrease in current market valuations
in the healthcare services industry and BioScrip’s stock price relative
to its book value at December 31, 2008. Consequently, BioScrip will
report a net loss for the fourth quarter and 2008. The charge is
non-cash in nature and will not affect BioScrip's liquidity, cashflows
from operating activities, debt covenants or its ability to borrow under
its existing credit facility.
BioScrip's Chief Financial Officer, Stanley G. Rosenbaum, stated,
"Despite the current economic environment, we remain optimistic about
the growth potential of our specialty pharmacy business. Additionally,
we reiterate our guidance of revenue growth, without CAP and United, in
the range of 10-15%, gross profit margin in the range of 10.5-11%, and
improved cash flows from operations for 2009.”
BioScrip’s management performed its required testing of goodwill using a
discounted cash flow analysis supported by comparative market multiples
to determine the fair value of each of its businesses as compared to
their respective book values as of December 31, 2008.
BioScrip is expected to report its fourth quarter financial results on
March 3, 2009.
About BioScrip, Inc.
BioScrip, Inc. (www.bioscrip.com)
(Nasdaq: BIOS) is a specialty pharmaceutical healthcare organization
that partners with patients, physicians, healthcare payors and
pharmaceutical manufacturers to provide access to medications and
management solutions to optimize outcomes for chronic and other complex
Forward Looking Statements
This press release may contain statements which constitute forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding the
intent, belief or current expectations of the Company, its directors, or
its officers with respect to the future operating performance of the
Company and our success with respect to the integration and
consolidation. 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 such differences are described in the
Company's periodic filings with the Securities and Exchange Commission.
Source: BioScrip, Inc.
Stanley G. Rosenbaum, 952-979-3768
Lisa Wilson, 917-543-9932