BioScrip Reports Fourth Quarter 2012 Financial Results

            BioScrip Reports Fourth Quarter 2012 Financial Results

PR Newswire

ELMSFORD, N.Y., March 11, 2013

ELMSFORD, N.Y., March 11, 2013 /PRNewswire/ --BioScrip, Inc. (NASDAQ: BIOS)
today announced 2012 fourth quarter financial results. Fourth quarter revenue
from continuing operations was $180.7 million and the net loss from continuing
operations was $1.4 million, or $0.03 per diluted share. Consolidated Adjusted
EBITDA for the fourth quarter was $12.1 million, and consolidated adjusted
earnings per diluted share for the fourth quarter was $0.04 per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20130117/NY44138LOGO )

This quarter, the Company will also begin reporting adjusted earnings per
diluted share ("Adjusted EPS"), which excludes the same elements in
calculating Adjusted EBITDA (restructuring and other expenses, acquisition and
integration expenses, stock-based compensation expense) as well as the impact
of acquisition-related intangible amortization. Management believes that this
non-GAAP financial measure provides useful supplemental information regarding
the performance of our business operations and facilitates comparisons to our
historical operating results.

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 December 31,
2012 and 2011, and assets transferred in the transaction as of December 31,
2012 and 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.

Fourth Quarter Highlights

  oRevenue from continuing operations increased by $22.5 million, or 14.2%,
    as compared to the prior year;
  oGross profit from continuing operations was $60.4 million, or 33.4% of
    revenue, as compared to $58.6 million, or 37.0% of revenue, in the prior
    year period;
  oAdjusted EBITDA from continuing operations was $12.1 million, compared to
    $11.6 million in the third quarter, a 4.3% sequential quarter improvement,
    despite the impact of Hurricane Sandy on the Northeast market; and,
  oEntered into a definitive agreement to acquire HomeChoice Partners, Inc.
    ("HomeChoice"), a majority-owned subsidiary of DaVita HealthCare Partners
    Inc. (NYSE: DVA).

"We are pleased to report solid fourth quarter performance. Our consolidated
results reflect continued progress in the execution of our strategic goals and
growth in our infusion business," said Rick Smith, President and Chief
Executive Officer of BioScrip.

"Overall, 2012 was a year of positive progress and momentum for BioScrip. We
accomplished a number of our key objectives towards repositioning the Company
to focus on our infusion and home health businesses. In 2013, we will
continue to build on our organic growth initiatives, which will be augmented
with targeted acquisitions. The core drivers of organic growth will be
delivering on our strong clinical programs, flexible go-to-market approach,
and high-touch customer service model," concluded Smith.

Results of Operations

Fourth Quarter 2012 versus Fourth Quarter 2011
Revenue from continuing operations for the fourth quarter of 2012 totaled
$180.7 million, compared to $158.3 million for the same period a year ago, an
increase of $22.5 million or 14.2%. Infusion Services segment revenue was
$135.6 million in the fourth quarter, as compared to $102.5 million for the
same period in 2011. The 32.4% increase was driven primarily by overall
volume growth as well as the addition of the InfuScience acquisition. Home
Health Services segment revenue was $18.3 million for the fourth quarter of
2012, as compared to $17.2 million in the prior year quarter. The 6.5%
increase was primarily the result of volume growth offset by the previously
announced reimbursement reductions from Medicare and the state of Tennessee
TennCare program. PBM Services segment revenue was $26.8 million for the
fourth quarter of 2012, compared to $38.6 million for the prior year period.
The decrease was due primarily to a decline in the funded PBM business and a
reduction in discount card revenues.

Consolidated gross profit for the fourth quarter of 2012 was $60.4 million, or
33.4% of revenue, compared to $58.6 million, or 37.0% of revenue, for the
fourth quarter of 2011. The increase in gross profit was the result of growth
in the volume of Infusion Services segment revenues and growth in the Home
Health Services business. The decline in gross profit margin percentage
resulted primarily from a shift in the therapy mix in the Infusion Services
segment, as well as a decrease in home health reimbursement rates from certain
government payors.

During the fourth quarter of 2012, Infusion Services Segment Adjusted EBITDA
was $11.0 million, or 8.1% of segment revenue, compared to $9.9 million, or
9.7% of segment revenue in the prior year quarter, and $9.9 million, or 7.9%
of segment revenue in the third quarter of 2012.

The Home Health Services Segment Adjusted EBITDA in the fourth quarter of 2012
was $1.8 million, or 10.1% of segment revenue. This compares to Segment
Adjusted EBITDA of $1.5 million, or 8.7% of segment revenue, in the comparable
prior year period, and $1.4 million, or 8.1% of segment revenue in the third
quarter of 2012. The PBM Services Segment Adjusted EBITDA was $6.3 million,
or 23.5% of segment revenue, for the fourth quarter of 2012 compared to $9.3
million, or 24.0% of segment revenue, in the prior year quarter.

On a consolidated basis, BioScrip reported $12.1 million of Adjusted EBITDA
during the fourth quarter of 2012, or 6.7% of total revenue, compared to $14.9
million, or 9.4% of total revenue, in the same period last year.

Interest expense in the fourth quarter of 2012 was $6.4 million compared to
$6.2 million in the prior year period.

Income tax benefit for continuing operations in the fourth quarter was $1.8
million compared to an income tax expense of $2.8 million in the fourth
quarter of 2011.

Net loss from continuing operations for the fourth quarter of 2012 was $1.4
million, or a loss of $0.03 per diluted share, compared to a net income of
$2.6 million, or $0.05 per diluted share, for the fourth quarter of 2011.

Twelve Months Ended 2012 versus Twelve Months Ended 2011
Revenue from continuing operations for the twelve months ended December 31,
2012 totaled $662.6 million, compared to $554.5 million for the same period a
year ago, a 19.5% increase. Infusion Services segment revenue was $481.6
million for the twelve months ended December 31, 2012, compared to $374.3
million for the same period in 2011. The 28.7% increase was driven primarily
by an increase in volume growth and the InfuScience acquisition. Home Health
Services segment revenue for the twelve months ended December 31, 2012 was
$69.2 million, compared to $69.6 million in the prior year. The 0.6% decrease
was primarily the result of reimbursement reductions as previously discussed.
PBM Services segment revenue for the twelve months ended December 31, 2012 was
$111.9 million, compared to $110.6 million for the prior year period. The
1.2% increase is primarily due to an increase in discount card program sales.

Consolidated gross profit for the twelve months ended December 31, 2012 was
$225.0 million, or 33.9% of revenue, compared to $215.4 million, or 38.8% of
revenue, in the comparable prior year period. The net increase in gross
profit was due primarily to organic growth and the contribution from
InfuScience. As previously disclosed, in connection with the Pharmacy
Services Asset Sale, the Company provided certain lower margin services on
behalf of key customers after the sale. Additionally, there was a substantial
decrease in cross referrals of certain therapies from the specialty sales
personnel affiliated with the divested business.

During the twelve months ended December 31, 2012, Infusion Services Segment
Adjusted EBITDA was $36.8 million, or 7.6% of segment revenue, compared to
$35.1 million, or 9.4% of segment revenue, in the prior year.

The Home Health Services Segment Adjusted EBITDA for the twelve months ended
December 31, 2012 was $5.4 million, or 7.8% of segment revenue. This compares
to Segment Adjusted EBITDA of $6.0 million, or 8.6% of segment revenue, in the
prior year. The PBM Services Segment Adjusted EBITDA was $25.7 million, or
22.9% of segment revenue, for the twelve months ended December 31, 2012
compared to $30.1 million, or 27.2% of segment revenue, in the prior year.

On a consolidated basis, BioScrip reported $41.1 million of Adjusted EBITDA
for the twelve months ended December 31, 2012, or 6.2% of total revenue,
compared to $47.9 million, or 8.6% of total revenue, in the same period last
year.

Interest expense for the twelve months ended December 31, 2012 was $26.1
million compared to $25.5 million in the prior year.

Income tax benefit for continuing operations for the twelve months ended
December 31, 2012 was $4.4 million, compared to an income tax expense of $0.4
million in 2011.

Net loss from continuing operations for the twelve months ended December 31,
2012 was $8.3 million, or $0.15 per diluted share, compared to a net loss of
$0.4 million, or $0.01 per diluted share, in the comparable prior year period.

Liquidity and Capital Resources
For the twelve months ended December 31, 2012, BioScrip generated $49.9
million in net cash from continuing operating activities, compared to $3.1
million generated from operating activities during the twelve months of 2011,
an increase of $46.7 million. This increase was primarily 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 fourth quarter was $62.1 million.

Outlook
Revenue in 2013 is projected to grow by 25% to 30% to a range of $830.0
million to $865.0 million and the Company is initially targeting 2013 Adjusted
EBITDA of $67.0 million to $73.0 million. The range of Adjusted EBITDA
reflects the on-going impact of Hurricane Sandy in the first quarter of 2013
as well as the estimated impact of competitive bidding. Additionally, revenue
and Adjusted EBITDA for 2013 may be impacted by therapy mix, any lingering
effects of Hurricane Sandy on the Northeast market beyond the first quarter,
additional acquisitions, de novo activities, and the timing and earnings
contribution from the integration of HomeChoice.

Conference Call

BioScrip will host a conference call to discuss its fourth quarter 2012
financial results on March 12, 2013 at 8:30 a.m. Eastern Time.

Interested parties may participate in the conference call by dialing
800-705-5308 (US), or 303-223-4377 (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 21648877. An audio
webcast and archive will also be available for 30 days under the "Investor
Relations" section of the BioScrip website at www.bioscrip.com.

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 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'sresults of operations, projections of certain charges and expenses,
and other statements regardingthe Company'sgoals, 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. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and, because such
statements inherently involve risks and uncertainties, actual results may
differ materially from those in the forward-looking statements.Factors that
could causeor contribute tosuch 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 effectively integrate acquisitions; 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 31,2011. 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, Adjusted EBITDA, and Adjusted EPS, which are non-GAAP financial
measures. EBITDA,Adjusted EBITDA and Adjusted EPS are not measurementsof
financial performance under GAAP and should not beused in isolation or as a
substitute or alternative to net income, operating income or any other
performance measure derived in accordance with GAAP, or asa substitute
oralternative to cash flow from operating activities or a measure of our
liquidity. In addition, the Company's definitions of EBITDA, Adjusted EBITDA
and Adjusted EPS 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 definedby the Company,represents net income before net interest
expense, income tax expense, depreciation and amortization, stock-based
compensation expense, acquisition and integration expenses, and restructuring
and other expenses. As part of restructuring and other expenses, the Company
may incur significant charges such as, but not limited to, 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. Adjusted EPS, as defined by
the Company, represents earnings per diluted share, excluding the same
elements in calculating Adjusted EBITDA (restructuring and other expenses,
acquisition and integration expenses, stock-based compensation expense) as
well as the impact of acquisition-related intangible amortization. Management
believes that these non-GAAP financial measures provide useful supplemental
information regarding the performance of our business operations and
facilitates comparisons to our historical operating results. For a full
reconciliation of EBITDA, Adjusted EBITDA and Adjusted EPS to the most
comparable GAAP financial measures, please see the attachments to this
earnings release.

(Financial Tables Follow)



Schedule 1
BIOSCRIP, INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except for share amounts)
                                        December31, 2012    December31, 2011
ASSETS
Current assets
Cash and cash equivalents               $     62,101    —
Receivables, less allowance for
doubtful accounts of $22,212 and
$22,728 at                              129,103              225,412

December 31, 2012 and December 31,
2011, respectively
Inventory                               34,034               17,997
Prepaid expenses and other current      10,189               10,184
assets
Current assets from discontinued        —                    38,876
operations
Total current assets                    235,427              292,469
Property and equipment, net             23,721               26,951
Goodwill                                350,810              312,387
Intangible assets, net                  17,446               19,622
Deferred financing costs                2,877                3,992
Investments in and advances to          10,042               —
unconsolidated affiliate
Other non-current assets                2,053                1,552
Non-current assets from discontinued    —                    20,129
operations
Total assets                            $    642,376     677,102
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt       $        953  66,161
Accounts payable                        34,438               79,155
Claims payable                          7,411                11,766
Amounts due to plan sponsors            18,173               25,219
Accrued interest                        5,803                5,825
Accrued expenses and other current      41,491               32,648
liabilities
Total current liabilities               108,269              220,774
Long-term debt, net of current portion  225,426              227,298
Deferred taxes                          10,291               10,295
Other non-current liabilities           4,981                3,456
Total liabilities                       348,967              461,823
Stockholders' equity
Preferredstock, $.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:

59,600,713 and 57,800,791,              6                    6
respectively; shares outstanding:
57,026,957 and

55,109,038, respectively
Treasury stock, shares at cost:         (10,311)             (10,461)
2,582,520 and 2,638,421, respectively
Additional paid-in capital              388,798              375,525
Accumulated deficit                     (85,084)             (149,791)
Total stockholders' equity              293,409              215,279
Total liabilities and stockholders'     $    642,376     $     677,102
equity



Schedule 2
BIOSCRIP, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                          Three Months Ended        Year Ended
                          December 31,              December 31,
                          2012         2011         2012           2011
Product revenue           $       $       $         $     
                          132,785      100,158      471,506        365,526
Service revenue           47,953       58,107       191,131        188,980
Total revenue             180,738      158,265      662,637        554,506
Cost of product revenue   92,214       66,025       325,271        238,072
Cost of service revenue   28,131       33,642       112,406        101,019
Total cost of revenue     120,345      99,667       437,677        339,091
Gross profit              60,393       58,598       224,960        215,415
% of revenues             33.4%        37.0%        33.9%          38.8%
Selling, general and      49,087       42,971       184,491        167,136
administrative expenses
Bad debt expense          3,358        3,073        14,035         11,441
Acquisition and           2,241        —            4,046          —
integration expenses
Restructuring and other   1,446        101          5,143          7,909
expenses
Amortization of           1,113        880          3,957          3,376
intangibles
Income from operations    3,148        11,573       13,288         25,553
Interest expense, net     6,362        6,167        26,067         25,542
Net income (loss) from
continuing operations,
before income             (3,214)      5,406        (12,779)       11

taxes
Tax provision (benefit)   (1,795)      2,841        (4,439)        435
Net income (loss) from
continuing operations,
net of income             (1,419)      2,565        (8,340)        (424)

taxes
Net income (loss) from
discontinued operations,
net of income             8,599        4,144        73,047         8,296

taxes
Net income (loss)         $       $       $        $     
                            7,180      6,709    64,707           7,872
Basic weighted average    56,922       54,972       56,239         54,505
shares
Diluted weighted average  56,922       55,608       56,239         54,505
shares
Income (loss) per common
share:
Basic loss from           $       $       $        $     
continuing operations       (0.03)      0.05    (0.15)         (0.01)
Basic income (loss) from  $       $       $        $     
discontinued operations      0.15      0.07     1.30          0.15
Basic income (loss)       $       $       $        $     
                             0.12      0.12     1.15          0.14
Diluted loss from         $       $       $        $     
continuing operations       (0.03)      0.05    (0.15)         (0.01)
Diluted income (loss)    $       $       $        $     
from discontinued            0.15      0.07     1.30          0.15
operations
Diluted income (loss)     $       $       $        $     
                             0.12      0.12     1.15          0.14



Schedule 3
BIOSCRIP, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                        Years Ended December 31,
                                        2012                  2011
Cash flows from operating activities:
Net income (loss)                       $     64,707     $     7,872
Less: Income from discontinued          73,047                8,296
operations, net of income taxes
Loss from continuing operations, net of (8,340)               (424)
income taxes
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating

activities:
Depreciation                            8,513                 6,591
Amortization of intangibles             3,957                 3,376
Amortization of deferred financing      1,261                 1,055
costs
Change in deferred income tax           (4)                   1,153
Compensation under stock-based          6,122                 4,467
compensation plans
Loss on disposal of fixed assets        156                   201
Changes in assets and liabilities, net
of acquired business:
Receivables, net of bad debt expense    101,230               (31,690)
Inventory                               (15,249)              (2,497)
Prepaid expenses and other assets       3,726                 11,211
Accounts payable                        (48,200)              (1,659)
Claims payable                          (4,354)               8,729
Amounts due to plan sponsors            (7,046)               5,437
Accrued interest                        (22)                  59
Accrued expenses and other liabilities  8,112                 (2,945)
Net cash provided by (used in)
operating activities from continuing    $     49,862     $     3,064
operations
Net cash provided by (used in)
operating activities from discontinued  (22,978)              23,905
operations
Net cash provided by (used in)          $     26,884     $    26,969
operating activities
Cash flows from investing activities:
Purchases of property and equipment,    $     (10,986)    $    (7,853)
net
Cash consideration paid for asset       (43,046)              (463)
acquisitions
Cash consideration paid to DS Pharmacy  (2,935)               —
Cash consideration paid for
unconsolidated affiliate, net of cash   (10,652)              —
acquired
Net cash provided by (used in)
investing activities from continuing    (67,619)              (8,316)
operations
Net cash provided by (used in)
investing activities from discontinued  161,499               (1,591)
operations
Net cash used in investing activities   $     93,880     $    (9,907)
Cash flows from financing activities:
Borrowings on line of credit            1,244,050             1,773,644
Repayments on line of credit            (1,307,872)           (1,791,058)
Repayments of capital leases            (3,278)               (2,635)
Deferred and other financing costs      —                     (22)
Net proceeds from exercise of employee  8,611                 3,198
stock compensation plans
Surrender of stock to satisfy minimum   (174)                 (189)
tax withholding
Net cash provided by (used in)
financing activities from continuing    (58,663)              (17,062)
operations
Net cash provided by (used in)
financing activities from discontinued  —                     —
operations
Net cash (used in) provided by          $     (58,663)    $   (17,062)
financing activities
Net change in cash and cash equivalents 62,101                —
Cash and cash equivalents - beginning   —                     —
of period
Cash and cash equivalents - end of      $     62,101     —
period
DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for         $     25,589     $    27,528
interest
Cash paid during the period for income  $      2,757    $     1,042
taxes
DISCLOSURE OF NON-CASH TRANSACTIONS:
Capital lease obligations incurred to   $         20  $     6,631
acquire property and equipment



Schedule 4
BIOSCRIP, INC
Reconciliation between GAAP and Non-GAAP Measures
(in thousands)
                            Three Months Ended        Years Ended
                            December 31,              December 31,
                            2012         2011         2012         2011
Results of Operations:
Revenue:
Infusion Services - product $        $         $        $   
revenue                     132,785      100,158     471,506      365,526
Infusion Services - service 2,838        2,301        10,080       8,756
revenue
Total Infusion Services     135,623      102,459      481,586      374,282
revenue
Home Health Services -      18,320       17,206       69,190       69,635
service revenue
PBM Services - service      26,795       38,600       111,861      110,589
revenue
Total revenue               $        $         $        $   
                            180,738      158,265     662,637      554,506
Adjusted EBITDA by Segment
before corporate overhead:
Infusion Services           $       $       $       $    
                            11,024       9,947       36,764       35,128
Home Health Services        1,844        1,498        5,401        5,954
PBM Services                6,292        9,274        25,659       30,122
Total Segment Adjusted      19,160       20,719       67,824       71,204
EBITDA
Corporate overhead          (7,090)      (5,853)      (26,755)     (23,308)
Consolidated Adjusted       12,070       14,866       41,069       47,896
EBITDA
Interest expense, net       (6,362)      (6,167)      (26,067)     (25,542)
Income tax (expense)        1,795        (2,841)      4,439        (435)
benefit
Depreciation                (2,398)      (1,828)      (8,513)      (6,591)
Amortization of intangibles (1,113)      (880)        (3,957)      (3,376)
Stock-based compensation    (1,724)      (484)        (6,122)      (4,467)
expense
Acquisition and integration (2,241)      -            (4,046)      —
expenses
Restructuring and other     (1,446)      (101)        (5,143)      (7,909)
expenses
Net (loss) income:          $       $       $       $     
                            (1,419)      2,565       (8,340)       (424)
Supplemental Operating Data
Capital Expenditures:
Infusion Services                                     $       $     
                                                       6,685      4,826
Home Health Services                                  171          170
PBM Services                                          0            0
Corporate unallocated                                 4,130        2,857
Total                                                 $       $     
                                                      10,986       7,853
Depreciation Expense:
Infusion Services                                     $       $     
                                                       4,347      5,242
Home Health Services                                 111          48
PBM Services                                          0            0
Corporate unallocated                                 4,055        1,301
Total                                                 $       $     
                                                       8,513      6,591
Total Assets
Infusion Services                                     $        $   
                                                      438,623      353,999
Home Health Services                                  62,403       64,672
PBM Services                                          36,354       40,418
Corporate unallocated                                 95,813       24,348
Assets from discontinued                              0            59,005
operations
Assets associated with
discontinued operations,                              9,183        134,660
not sold
Total                                                 $        $   
                                                      642,376      677,102
Goodwill
Infusion Services                                     $        $   
                                                      304,282      265,859
Home Health Services                                  33,784       33,784
PBM Services                                          12,744       12,744
Total                                                 $        $   
                                                      350,810      312,387



Schedule 5
BIOSCRIP, INC
Reconciliation between GAAP and Non-GAAP Earnings Per Share
(in thousands)
                               Three Months Ended      Years Ended
                               December 31,            December 31,
                               2012 ^1,2    2011 ^3,4  2012 ^5,6    2011 ^7,8
Net income from continuing     $       $      $       $    
operations                     (1,419)       2,565   (8,340)        (424)
    Non-GAAP adjustments:
       Restructuring and other 871          61         3,099        4,798
       expenses
       Acquisition and         1,350        -          2,438        -
       integration expenses
       Amortization of         671          534        2,384        2,048
       intangibles
       Compensation under
       stock-based             1,039        294        3,689        2,710
       compensation plans
Non-GAAP Net income from       $       $      $       $    
continuing operations          2,512        3,454   3,270        9,132
Earnings per share from        $       $      $       $    
continuing operations, basic    (0.03)       0.05   (0.15)       (0.01)
and diluted
    Non-GAAP adjustments:
       Restructuring and other 0.02         -          0.06         0.09
       related costs
       Acquisition and         0.02         -          0.04         -
       integration expenses
       Amortization of         0.01         0.01       0.04         0.04
       intangibles
       Compensation under
       stock-based             0.02         0.01       0.07         0.05
       compensation plans
Non-GAAP earnings per share    $       $      $       $    
from continuing operations,     0.04        0.07   0.06        0.17
basic and diluted
Weighted average shares        56,922       54,972     56,239       54,505
outstanding, basic
Weighted average shares        57,948       55,608     57,001       55,150
outstanding, diluted



Schedule 5
BIOSCRIP, INC
Reconciliation between GAAP and Non-GAAP Earnings Per Share
(in thousands)
    For the three months ended December 31, 2012, non-GAAP net income from
(1) continuing operations adjustments are net of tax, calculated using an
    annual effective tax rate method. The tax expense netted against
    restructuring and other expenses, acquisition and integration expenses,
    amortization of intangibles, and stock-based compensation expense was
    $575, $891, $442, and $685 respectively.
    For the three months ended December 31, 2012, non-GAAP Adjusted EPS per
(2) basic and diluted share from continuing operations adjustments are net of
    tax, calculated using an annual effective tax rate method. The tax
    expense per basic and diluted share netted against restructuring and other
    expenses, acquisition and integration expenses, amortization of
    intangibles, and stock-based compensation expense was $(0.01), $(0.02),
    $(0.01), and $(0.01) per share, respectively.
(3) For the three months ended December 31, 2011, non-GAAP net income from
    continuing operations adjustments are net of tax, calculated using an
    annual effective tax rate method. The tax expense netted against
    restructuring and other expenses, amortization of intangibles, and
    stock-based compensation expense was $40, $346, and $190, respectively.
(4) For the three months ended December 31, 2011, non-GAAP Adjusted EPS per
    basic and diluted share from continuing operations adjustments are net of
    tax, calculated using an annual effective tax rate method. The tax
    expense per basic and diluted share netted against restructuring and other
    expenses, amortization of intangibles, and stock-based compensation
    expense were $(0.00), $(0.01), and $(0.00) per share, respectively.
    For the year ended December 31, 2012, non-GAAP net income from continuing
(5) operations adjustments are net of tax, calculated using an annual
    effective tax rate method. The tax expense netted against restructuring
    and other expenses, acquisition and integration expenses, amortization of
    intangibles, and stock-based compensation expense was $2,044, $1,608,
    1,573, and $2,433, respectively.
    For the year ended December 31, 2012, non-GAAP Adjusted EPS per basic and
(6) diluted share from continuing operations adjustments are net of tax,
    calculated using an annual effective tax rate method. The tax expense per
    basic and diluted share netted against restructuring and other expenses,
    acquisition and integration expenses, amortization of intangibles, and
    stock-based compensation expense was $(0.04), $(0.03), $(0.03), and
    $(0.04) per share, respectively.
(7) For the year ended December 31, 2011, non-GAAP net income from continuing
    operations adjustments are net of tax, calculated using an annual
    effective tax rate method. The tax expense netted against restructuring
    and other expenses, amortization of intangibles, and stock-based
    compensation expense was $3,111, $1,328, and $1,757, respectively.
    For the year ended December 31, 2011, non-GAAP Adjusted EPS per basic and
(8) diluted share from continuing operations adjustments are net of tax,
    calculated using an annual effective tax rate method. The tax expense per
    basic and diluted share netted against restructuring and other expenses,
    amortization of intangibles, and stock-based compensation expense were
    $(0.06), $(0.02), and $(0.03) per share, respectively.



SOURCE BioScrip, Inc.

Website: http://www.bioscrip.com
Contact: Hai Tran, BioScrip, Inc., +1-952-979-3768, or Lisa Wilson, In-Site
Communications, Inc., +1-212-759-3929
 
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