BioScrip, Inc. (Nasdaq: BIOS) today announced third quarter net income of $5.7 million, or $0.14 per diluted share, on revenues of $333.5 million. These results compare to net income of $1.4 million, or $0.04 per share, on revenues of $359.4 million for the third quarter of 2008. Third quarter 2009 EBITDAO was $8.9 million compared to $5.3 million for the same period a year ago.
Richard H. Friedman, BioScrip’s Chairman and Chief Executive Officer, stated, “Our results reflect the steady progress of our strategy to provide a full and comprehensive continuum of care, expand our clinical management reach and local market presence, while delivering improved operating margins. We continue to upgrade our talent base with key hires to support the growth of our business.”
Results of Operations
Revenue for the third quarter of 2009 totaled $333.5 million, compared to $359.4 million for the same period a year ago. Revenue declines were expected due to the previously announced elimination of the Medicare Competitive Acquisition Program (“CAP”) effective December 31, 2008 and the termination of the United Health Group (“UHG”) organ transplant and HIV/AIDS contracts, partially offset by increased sales of higher margin infusion therapies and other specialty sales. Excluding the effects of these contracts, 2009 third quarter revenues were 7.9% higher than the 2008 comparable period.
Gross profit for the third quarter of 2009 was $41.5 million, or 12.4% compared to $36.1 million, or 10% for the third quarter of 2008. The increase was primarily the result of improved product mix due to our continued focus on higher margin therapies as well as improved supply chain programs.
Third quarter 2009 operating profit was $6.7 million, or 2.0% compared to $2.8 million, or 0.8% for the third quarter of 2008. The increase in operating income was a result of the improved product and therapy mix discussed above, which was partially offset by bad debt expense returning to normalized levels.