OPERATING AND REPORTABLE SEGMENTS

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Operating and Reportable Segments

OPERATING AND REPORTABLE SEGMENTS

With the sale of substantially all of the Company’s Home Health Services segment, the Company's operating and reportable segments, “Infusion Services," and “PBM Services,” reflect how the Company's chief operating decision maker reviews the Company's results in terms of allocating resources and assessing performance.

The Infusion Services operating and reportable segment provides services consisting of home infusion therapy, respiratory therapy and the provision of durable medical equipment, products and services. Infusion services include the dispensing and administering of infusion-based drugs, which typically require additional nursing and clinical management services, equipment to administer the correct dosage and patient training designed to improve patient outcomes. Home infusion services also include the dispensing of certain self-injectable therapies.

The PBM Services operating and reportable segment consists of integrated pharmacy benefit management ("PBM") services, which primarily consists of discount card programs. The discount card programs provide a cost effective alternative for individuals who may be uninsured, underinsured or may have restrictive coverage that disallows reimbursement for certain medications. Under these discount programs, individuals who present a discount card at any of the Company's participating network pharmacies receive prescription medications at a discounted price compared to the retail price.

The Company's chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as income (loss) from continuing operations, net of income taxes adjusted for net interest expense, income tax expense (benefit), depreciation, amortization of intangibles and stock-based compensation expense and prior to the allocation of certain corporate expenses. Segment Adjusted EBITDA excludes acquisition, integration, and transitional expenses; restructuring expense; and other expenses related to the Company's strategic assessment. Segment Adjusted EBITDA also excludes the operating losses of start-up branch locations that the Company has invested in organically rather than through acquisition. Segment Adjusted EBITDA is a measure of earnings that management monitors as an important indicator of operating and financial performance. The accounting policies of the operating and reportable segments are consistent with those described in the Company's summary of significant accounting policies.

As a result of the sale of substantially all of the Company's Home Health Services segment, prior period operating results and supplementary data have been reclassified to exclude the Home Health Services segment.

Segment Reporting Information

(in thousands)

	Three Months Ended March 31,
	2014			2013
Results of Operations:
Revenue:
Infusion Services - product revenue	$	215,900		$	150,024
Infusion Services - service revenue	5,519			4,353
Total Infusion Services revenue	221,419			154,377
PBM Services - service revenue	18,224			26,752
Total revenue	$	239,643		$	181,129
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	14,853		$	11,909
PBM Services	1,675			6,195
Total Segment Adjusted EBITDA	16,528			18,104
Corporate overhead	(7,476		)	(7,916		)
Interest expense, net	(10,499		)	(6,478		)
Income tax (expense) benefit	(3,491		)	224
Depreciation	(3,836		)	(2,418		)
Amortization of intangibles	(1,703		)	(2,082		)
Stock-based compensation expense	(2,886		)	(1,973		)
Acquisition and integration expenses	(6,499		)	(4,623		)
Restructuring and other expenses and investments	(5,560		)	(1,279		)
Loss from continuing operations, net of income taxes	$	(25,422	)	$	(8,441	)
Supplemental Operating Data
	March 31, 2014			December 31, 2013
Total Assets:
Infusion Services	$	808,871		$	793,475
PBM Services	31,475			25,239
Corporate unallocated, including cash and cash equivalents	59,714			53,169
Assets from discontinued operations	—			64,959
Assets associated with discontinued operations, not sold	16			16
Total Assets	$	900,076		$	936,858