Logo of jester cap with thought bubble with words 'Fool Transcripts' below it

Image source: The Motley Fool.

Bioscrip, Inc. (NASDAQ: BIOS)
Q2 2018 Bio Scrip, Inc. Earnings Conference call
Aug. 7, 2018, 1 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings and welcome to the BioScrip Inc. Second Quarter 2018 Financial Results conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star, zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Matt Dexter, vice president, deputy general counsel. Thank you. You may begin.

Matt Dexter -- Vice President, Deputy General Counsel

Good morning and thank you for joining us today. BioScrip second-quarter 2018 financial results were released earlier this morning. A copy of the earnings release can be found in the Investor Relations section of our website at www.bioscrip.com. Within two hours of this call's completion, an audio replay also will be available in the Investor Relations section of BioScrip's website. Dan Greenleaf, president and chief executive officer and Steve Deitsch, senior vice president, chief financial officer, and treasurer will host this morning's call.

Before we get started, I would like to remind everyone that our comments may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such forward-looking statements are based upon current expectations, and there can be no assurance that the results contemplated in these statements will be realized. Please refer to our press release and our reports filed with the SEC, where you will find factors that could cause actual results to differ materially from these forward-looking statements.

These forward-looking statements are based on information available to BioScrip today, and the company assumes no obligation of these statements to supplement the change. During this presentation, we will refer to adjusted EBITDA, a non-GAAP financial measure. A reconciliation to the most comparable GAAP financial measure is contained in our press release issued this morning. Now, I would like to turn the call over to Dan Greenleaf. Dan?

Dan Greenleaf -- President and Chief Executive Officer

Thanks, Matt. Good morning everyone, and thank you for joining us. This morning, I will discuss our second-quarter 2018 performance. Before I get into the details, I just say that I continue to grow more bullish on BioScrip's transformational position in healthcare. By almost any measure, many of which we will discuss today, BioScrip continues to lead. Second quarter of 2018 was no exception. In the second quarter of 2018, we continued to execute.

We reported record second-quarter adjusted EBITDA of $11.4 million up 14% year over year, which represents the third-best quarter in the company's history. Importantly, BioScrip has established a track record of execution, with three of the last four quarters representing record quarters for adjusted EBITDA results. Moreover, four of the last five quarters represent the only quarters BioScrip has achieved in excess of $10 million of EBITDA as a pure-play infusion company.

Turning to our gross margin performance, in the second quarter, BioScrip's core mix expanded by 150 basis points year over year to 75.1%, helping drive a 510-basis-point improvement in gross margin to 34.1%. Normalizing gross margin for ASC 606 yields a second-quarter 36.1% gross margin. As we drive profitable growth, continue to focus on supply chain, formulary, and asset management, we believe BioScrip's longer-term gross profit margins can approach 40% even when adjusted for ASC 606.

Turning to our operating expenses in the second quarter. BioScrip demonstrated continued improvement in its cost discipline and efficiency. This includes a sharp focus on both labor and other operating expenses. For example, this quarter, we achieved a $3 million year-over-year reduction in operating expenses on a comparable basis when adjusting for ASC 606. BioScrip's performance in the quarter reflects a management team as well as colleagues across our network who are committed to delivering and executing on a daily basis. This level performance has no doubt driven the consistent and ever-increasing net promoter scores that we received from our patients and customers alike, 82.2 and 75,respectively.

As you can tell, we fully understand the responsibility we have to our patients and understand the role of home infusion in the U.S. BioScrip's level of performance has allowed us to invest in our future. In the second quarter, we opened a state-of-the-art pharmacy, what we call the branch of the future. This is not only industry-leading; it has also caught the attention of healthcare executives, physicians, patients, and payers alike in rethinking the way in which care can be delivered in the future.

BioScrip's level of performance has allowed us to attract top talent in healthcare. In July, we recruited and appointed two highly accomplished executives to our senior leadership team. Rich Dennis, a senior vice president, chief commercial officer, and Leslie Mcintosh, a senior vice president and chief human resources officer. Combined, they bring decades of relevant experience in successfully growing large private and public organization. Our BioScrip's teammates' commitment to performance led us to drive in the second half of 2018 from a position of strength. In July, we recorded our best revenue month of the year on a day-rate basis, reflecting strong core revenue growth. As a reminder, BioScrip captures operating leverage during the seasonally strong second half of the year.

We are executing on distinct levels to improve revenue and profitability in the areas of field force effectiveness, supply chain management pricing, formula management, and revenue cycle management. As a result, we are reaffirming our full-year 2018 guidance for revenue between $688 million and $698 million, and adjusted EBITDA between $54 million and $58 million. The midpoint of our 2018 EBITDA guidance represents a 24% improvement year over year. We're increasingly confidence of our ability to deliver a minimum of $75 million of adjusted EBITDA in 2019. As we proceed through the back half of 2018 into 2019, we expect to accelerate sales performance through our vision 2020 initiatives and take advantage of the positive tailwinds in the home infusion industry.

As we previously shared, vision 2020 is our strategic growth plan, which expands our core initiative and is based on four primary pillars: profitable revenue growth, strategic partnerships, revenue cycle optimization, and supply chain improvement. Moreover, in our vision 2020 plan, we have identified about a dozen other secondary initiatives that will be accretive. In each of the four main pillars has the potential to contribute $10 million-plus to our annual adjusted EBITDA over time.

We've come a long way in a relatively short time since I joined BioScrip in September of 2016. I believe we are the destination of choice for teammates, patients, refers, providers, payers, manufacturers, and partners. I'm extremely proud of our team's execution. I remain very emboldened about BioScrip's future and our ability to shape the healthcare market and continue to deliver long-term sustainable growth and value creation to our stakeholders. I'd like to turn the call over to Steve Deitsch.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Thank you, Dan. Good morning, everyone. My prepared remarks will include additional information on the company's second quarter performance and 2018 guidance. Net revenue for the second quarter of 2018 was $175.8 million compared to $218.1 million in the second quarter of 2017, a decrease of $42.3 million or 19.4%. This revenue decrease resulted primarily from our previously discussed shift in strategy to focus on growing BioScrip's core revenue mix, including contract changes with United Healthcare effective September 30th, 2017 and the impact of implementing ASC 606 in 2018.

Our revenue mix in the second quarter was 75.1% quarter and 24.9% non-core, with core mix increasing 150 basis points above our 73.6% core revenue mix in the prior-year quarter. Gross profit for the second quarter of 2018 decreased $7.7 million or 11.3% compared to the prior-year period primarily due to the reduction of revenue related to the ASC 606 adoption and the United healthcare contract transition. Gross profit margin for the second quarter of 2018 was 34.1%. A 510-basis-point improvement compared to the prior-year quarter on a comparable basis adjusted for the impact of ASC 606 adoption.

Gross profit margin improved primarily due to a higher core mix and supply chain improvements. Operating expenses were $48.5 million for the second quarter of 2018, a $9.1 million or 15.8% reduction compared to the second quarter of 2017. Lower labor cost and a reduction in bad debt expense due to the implementation of ASC 606 were the primary drivers of the improvement. Second-quarter 2018 operating expenses were reduced $3 million compared to the prior-year quarter on a comparable basis adjusted for the impact of ASC 606, primarily due to lower labor cost.

Adjusted EBITDA for the quarter of 2018 was $11.4 million compared to $10 million in the Second Quarter of 2017, a 14% improvement. The increase was driven by the improvement in operating expenses which was offset partially by lower gross profit which was primarily the result of the lower revenue base. Restructuring acquisition and integration, and other expenses net, totaled $2 million for the Second Quarter of 2018. A $2.1 million or 51.2% reduction driven by decreased acquisition and integration activity. Changes implemented across our revenue cycle function contributed to the quarter's restructuring expense and I'm pleased that we are ahead of schedule with our revenue cycle optimization plan.

Consistent with our outline vision 2020 strategy, significant progress has been made implementing a single repeatable model across our revenue cycle management function. We have established centers of excellence in Colorado, Missouri, New Jersey, and Connecticut with best-in-class teams focused on quality and trained on standardized policies and practices. Net loss from continuing operations, net of income tax was $15.1 million for the second quarter of 2018 compared to a net loss from continuing operations, net of income tax of $29.2 million in the second quarter of 2017.

Reflecting a $1 million increase in adjusted EBITDA, a $2.1 million decrease in restructuring acquisition integration and other, a $0.7 million decrease in income tax expense, and a $13.5 million decrease in debt extinguishment charges offset partially by a $2.5 million increase in noncash expenses. Cash used in operating and activities for the second quarter of 2018 was $15.1 million, including $7.8 million of operational cash use and $7.3 million of interest payments, the $7.8 million of operational cash use compared to a $16.4 million inflow in the prior-year quarter.

Operational cash flow and liquidity were impacted during the Second Quarter by the timing of strategic inventory purchases and payments related to product shortages in recalls, temporary decreases in cash collections of accounts receivable, as well as, the payment of 2017 incentive compensation. We expect cash balances to increase during the second half of 2018 as a result of accelerated operational cash flow driven by a more normalized level of strategic inventory purchases and cash collection trends and increased EBITDA. As a reminder, during August we will make our second annual bi-annual bond interest payment of $8.9 million.

Total liquidity at June 30th 2018 was $20.8 million composed of cash. At July 31st, our cash on hand was in excess of $26 million. Regarding our outlook for 2018, we are reaffirming our previous adjusted EBITDA guidance for 2018 between $54 million and $58 million, and also reaffirming our 2018 revenue guidance of $688 million to $698 million. During the second half of the year, we expect an acceleration of core revenue growth driven by improved field force effectiveness and seasonality combined with increasing gross profit margins resulting from increased core mix and supply chain improvements to continue to drive EBITDA's expansion. That concludes our prepared remarks. Operator will now open up the call for questions.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, at this time we'll now be conducting the question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate that your line is in the question queue. You may press star two, if you'd like to move your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is coming from the line of Brooks O'Neil with Lake Street Capital Markets. Please proceed with your question.

Brooks O'Neil -- Lake Street Capital Markets -- Analyst

Good morning, and congratulations on a terrific quarter, guys. So, my question is, first, was there any impact of disruptions in Puerto Rico that affected you this quarter, and is there any way to quantify if there was?

Dan Greenleaf -- President and Chief Executive Officer

So, that's hard to say, Brooks. I will say that if we looked at the use of cash, the inventory increases occurred predominantly in the first quarter and the cash use occurred in the second quarter. So, as it relates to Puerto Rico, Brooks, I don't feel as though there is anything that I can point to, to say that the impact was any more significant than it's been in the past. Moreover, there's nothing to indicate that things are getting any worse.

Brooks O'Neil -- Lake Street Capital Markets -- Analyst

Okay, that's good. Switching gears. Obviously, you have the negative impact of the termination of UnitedHealth last year, and how that's affecting the business. Is there any way to break out the rate of organic revenue growth you're achieving at the branch level, or any way to think about that?

Dan Greenleaf -- President and Chief Executive Officer

I'll just say it's improving. As we talked about, June was better than May, and July was better than June, Brooks.

Brooks O'Neil -- Lake Street Capital Markets -- Analyst

Great. Let me ask one last question. Is there any reason to think that July is an unusual month, either seasonally or for any other reason or does it, in your opinion, primarily reflect the impact of the operational steps you've taken to strengthen the business?

Dan Greenleaf -- President and Chief Executive Officer

I would think it's the latter, Brooks. I was pleasantly, I don't know, surprised because I've been expecting this at some point in time, but I will say that if we continue to perform in the summer months that bodes very, very well for us in the rest of the year.

Brooks O'Neil -- Lake Street Capital Markets -- Analyst

I agree with that 1000%. Congratulations, I'm excited for you.

Dan Greenleaf -- President and Chief Executive Officer

Thank you, Brooks.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Thanks, Brooks.

Operator

Thank you. The next question is coming from the line of Brian Tanquilut with Jefferies. Please proceed with your question.

Bryan Ross -- Jefferies -- Analyst

Hey, guys. This is Bryan Ross on for Brian Tanquilut. Again, congrats on the great quarter. I think on the FY '19 and fiscal year '20 outlook with vision 2020, you've laid out EBITDA expectations and goals and some of the initiatives to get there. I guess, can you provide a little more color into, really, the primary initiatives and then some of those secondary initiatives you mentioned? And in terms of the timeline? Which elements are you accomplishing now and over the near term, and then which ones you expect to take a little more time?

Dan Greenleaf -- President and Chief Executive Officer

So, if I look at the ones, Bryan, we're accomplishing now, I would tell you that certainly field force effectiveness is something that's occurring as we speak and again, we've continued to see improvement in our sales. I think the team's done a really amazing job on the operational level and particularly managing our expenses, and I think that's largely been accomplished. But that being said, we still see significant improvement to drive our single, repeatable model. When I look at what we've done on our revenue cycle management front, forever, when I was here, I was told that at some point that we were going to consolidate into four or five locations. Well, that's been done. We've got a facility in Morris Plains that handles our commercial business.

We've got a business in St. Louis that handles our federal health services and our Medicare/Medicaid reimbursement has been centralized in Aurora, and our respiratory therapy durable medical equipment billing collections has been centralized in Cromwell, Connecticut. So, from my standpoint, that's built the scale, and then some of the other things I've talked to you about on the call today Bryan, around the branch of the future. We've made some significant capital investments this year, and we launched our first branch of the future.

We've got another four or five that are going to be coming online in the next three to six months, and then we've made significant investments in our facilities just to upgrade those and to make sure that they have the look and feel we want. On the formulary and supply chain, again, there isn't a month goes by that I've not been pleasantly surprised by the work that the supply chain team, particularly Bob Roose and Brian Scott, along with the operations team, Harriet Booker and her team, have done to ensure that we're optimizing our gross profit margin.

Again, when you look at a company that has achieved a 1,000-basis-point improvement over last year, and again, there isn't a quarter that goes by where we have a continued to see improvement there, certainly, there's other opportunities and we're very fixated on that. But again, I think the team has made some really good progress. Now if we look at Vision 2020, there is really four components of that. One is a revenue cycle and a bad debt optimization, and again, Danny Claycomb and his team have made tremendous progress on that front. Another pillar is as I mentioned, is our supply chain and the work there, and I commented on the work that Bob Roose and Brian Scott and Harriet Booker have done there along with our vice president of operations and the rest of the field team.

So, I think we've made really good progress on that front. We do still think there's lots of opportunity in the area of strategic partnerships, and so, we're very focused on that Bryan, and certainly believe that there's more work to do there. And the last big piece of it is just sales growth and field force effectiveness and given where we've gone, where we've been with this company and where we've taken it, I think we're in the early earnings of that. I believe that we have a lot of opportunity on that front. So, hopefully that answers your question, Bryan.

Bryan Ross -- Jefferies -- Analyst

Yes, it's very helpful. I guess switching over to the cash flow, you talked about returning to more normalized levels in Q3 in the back half and you mentioned a couple of different moving pieces there in 2Q. I guess on the AR's step-up, was that more of a short-term item related to maybe some of the red cycle improvements or any red cycle changes there, or any more color there would be helpful.

Dan Greenleaf -- President and Chief Executive Officer

I'll let Steve handle the other ones. Let's face it, we've done a lot of restructuring here. We've moved a lot of people around in different roles, we've consolidated on a number of fronts and that does have an impact on how we're operating as a business. There's just no two ways around it. So Steve, I know you had some other comments.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Yes. I would just say, Bryan, that the largest factor for the quarter was clearly the timing of the inventory buy-ups that we were executing before the second quarter related to product shortages in recalls. So, we had purchased a large amount of inventory and that was paid for in the second quarter. I'm not going to say that that's going to completely go away, but we're certainly not going to see the level of cash usage like we did in the second quarter related to strategic buy-ups, because as we mentioned in the first-quarter call and talked about we had built inventory and would pay for that in the second quarter, and that's exactly what we did and you see it in the cash flow.

Dan touched on the short-term reductions and cash receipts rates and then the other thing I would highlight is we made a bonus payment for the first time in several years for BioScrip employees.

Dan Greenleaf --  President and Chief Executive Officer
Since '09. Since '09. Again, it's a great thing, but it's a use of the cash.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

So, those three items were the key drivers in the cash usage in the second quarter. We talked about our July, cash balance grew. We expect the cash balance to grow as we move through the second part of the year, and that's going to be driven by increased levels of EBITDA consistent with our guidance and lower levels of strategic inventory buys, and a return to normal on our cash collections rates.

Bryan Ross -- Jefferies -- Analyst

Got it. Makes perfect sense. That's all for me, that's nice.

Dan Greenleaf -- President and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question is coming from the line of Kevin Ellich with Craig-Hallum Capital. Please proceed with your question.

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Hey, good morning. Thanks for taking the questions and I'll follow everyone's line and say congrats on the nice quarter. Dan, I guess going back to the Vision 2020 comments and the strategic partnerships as kind of an interesting aspect, could you give us any color or detail if you could as to what some of these partnerships might look like?

Dan Greenleaf -- President and Chief Executive Officer

Yes, I'm a little sensitive about this candidly, Kevin, because we do have competitors on the line, and so I just want to preface some my comments by saying that. That being said, I mean some of the obvious ones that we believe are, I think, very exciting, and also that we are getting some decent traction on is redirection efforts. There are payers that are consistently coming to us saying we want to figure out a better way of getting these patients serviced in alternative sites of care.

The hospital is too expensive. We know that satisfaction levels are lower when the patients are seen in the hospital as opposed to the home, and we also understand that there are safety issues associated with caring for those patients in the hospital versus a home. We also know that there tends to be a higher level of patient financial responsibility when a patient is seen in hospital or an institution versus the home. So, that's one that we see has a lot of legs and is gathering a lot of steam.

I think we've talked about the strategic partnerships with hospital systems, and that's certainly something that we believe in. We believe that we can create win-win arrangements with them. So, if I think about the strategic partnerships, those are the ones that come to mind, but suffice to say there's other ones that are out there, Kevin. And I'm just not in a position to really, I don't think it's in my best interest to share that with my competitors.

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Sure, totally understand Dan, appreciate that. I guess looking back one quick one for Steve. Going back to the cash flow, one of the things we commented on was decrease in cash collections on the AR. I guess what was driving that, and has that returned to normal as well?

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Yes, as Dan mentioned Kevin, we've made a lot of progress on changing and consolidating our revenue cycle functions. We started the year with approximately 10 centers, and we've gone down to five as we go into the second half of the year, and the byproduct of that due to some of the changes that we've implemented. While we're improving our longer term prospects for cash and our cash in the second half of this year, there is a little bit of bumpiness when you think about the collection rate.

We expect to see that too improve in the third quarter and in the Fourth Quarter, but as I mentioned, the primary driver was the inventory by up during the Second Quarter. So, that was the largest use of cash, and we're going to expect to see cash continue to build in the second half of the year as we normalize the strategic inventory purchases, get our cash collections rates back to a normalized level and drive our EBITDA growth consistent with our guidance.

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Sounds good. Then Dan, one thing you guys have talked about in the past is the in-center infusion initiatives. Just wondering how that's going, and are we going to see that rolled out to more centers throughout the country?

Dan Greenleaf -- President and Chief Executive Officer

Do you mean the ambulate joint infusion centers, Kevin?

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Exactly.

Dan Greenleaf -- President and Chief Executive Officer

No, we continue to see utilization growth as a percent basis with those centers. In fact, we are opening centers in Canton, Philadelphia and Richmond as we speak. So, we are going to continue to expand our ambulatory infusion suite footprint. We think it's a really effective model Kevin. Again, we continue to see increases in utilization.

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Great. Then last thing for me is, Steve, can we get an update, or Dan, can we get an update on search for new controller and or are you planning to replace Alex Schott or are you good on the management front?

Dan Greenleaf -- President and Chief Executive Officer

Yes, Kevin, I'm happy to give you an update on that. We've retained an executive search firm to help us find the right CEO and we are well along in that process, we've got multiple highly qualified candidates interested in this role and we expect to have a new CEO in place this quarter.

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Great. Thanks guys.

Dan Greenleaf -- President and Chief Executive Officer

Thank you, Kevin.

Operator

Thank you. As a reminder, ladies and gentlemen, if you would like to ask a question at this time, please press star one on your telephone keypad. Our next question is coming from the line of Mike Petusky with Barrington Research, please proceed with your question.

Mike Petusky -- Barrington Research -- Analyst

Good morning guys. A lot of good information, thank you. So, a couple of questions. Dan, I think a few conference calls ago you had said, "Hey look, there are some these commercial contracts where we don't feel like we're being paid appropriately.", and you had expressed some optimism around maybe moving the needle a little bit in terms of pricing. Can you give an update on what you guys have been able to accomplish, give us an anecdotal on that front?

Dan Greenleaf -- President and Chief Executive Officer

Yes. Again, I'm a little hesitant to kind of share Mike for obvious reasons but. We've had a fair amount of success on that front. I'm very pleased with what's been accomplished to date, and I'm also very excited about the things we have in the queue and some of the discussions that we have ongoing right now. So clearly, it's something we want to make sure that we're being paid fairly, we want to make sure that we're getting paid, what we've described at fair market value, and where we see GAAPs and what we described as being paid fairly in fair market value.

We're going to have I think very deliberate discussions with respect to payers where that's an issue for us. But again, whether I was at quorum or whether we've been at home solutions or at BioScrip, we've had a lot of success in terms of getting paid or getting our rates increase given where the market is and what people perceive the market value to be, and we believe also that there's more opportunities on that front as well Mike.

Mike Petusky -- Barrington Research -- Analyst

This might seem a little nitpicky, but I'm going to go forward anyway. You guys have made fantastic progress on driving the core mix over the past couple of two, three years but over the past couple of two, three quarters, it sort of flattened out. I'm just wondering, is that 85, 15 target, is that still realistic or maybe that's just a bridge, a little bit too far to cross in today's environment for whatever reason? I guess I was just wondering if you could comment on the flattening of the progress last couple of two, three quarters? Thanks.

Dan Greenleaf -- President and Chief Executive Officer

Yes, I think I would share with you the two big bumps we've got, frankly Mike, were a result of the Home Solutions acquisition. Because Home Solutions quarter and non-core mix was about 86%, 87%. So, the company got a big bump as a result of that, the company also got a big bump as it right sized its contractual relationship with United. At this point, I would describe that the uptick is going to be more incremental, where we got those kind of big swath increases. So, I'm not really surprised by that, I'm not-.

From my standpoint, we still take a lot of non-core business Mike, and our goal is to make sure that it's not so much that we're not going to take non-core business, but is to accelerate our core business faster. If we continue to see the trends that we've seen, for example, in June and July, I expect that we'll continue to see incremental improvement in the percent core.

Mike Petusky -- Barrington Research -- Analyst

Okay. So, the strong revenue growth in July that the core mix was at a level that you were happy with?

Dan Greenleaf -- President and Chief Executive Officer

Yes, we're seeing acceleration in our core revenue, Mike.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Mike, just to reiterate, what I like to see is the progress is just the sequential improvements as Dan mentioned, May was better than April, June was better than May, July was better than August, and that's how we get the flywheel momentum going and it works well.

Dan Greenleaf -- President and Chief Executive Officer

Mike, Steve is struggling a little bit with his month's end. He said July was better than August.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

I'm sorry.

Dan Greenleaf -- President and Chief Executive Officer

What he was trying to say July of this year was better than August of last year.

Mike Petusky -- Barrington Research -- Analyst

Last question. I don't want to miss a step, but I do think it's important given the historical struggles with the previous management team. It sounds like on the cash collections piece, not talking about the strategic purchasing, but on the cash collections piece itself, you guys are essentially trying to communicate, "Hey look, we've done a lot. There's always going to be some bumps with this, but this is a bump in the road not a first cockroach." I mean is that what you're trying to communicate?

Dan Greenleaf -- President and Chief Executive Officer

Yes, I would say that. I mean we hired as you know Mike, Danny Claycomb in December of 2017. Danny is unequivocally the best revenue cycle management guy in this industry. He's done a lot here in a very, very short period of time, and I have a tremendous amount of confidence in him. As you know we hired Harriet Booker as our Chief Operating Officer in December of 2017 as well Mike, and that's really in many respects, the tandem on cash.

So, I have a lot of confidence in the two of them. Certainly, their track record speaks for itself, and I have not been part of an organization where Danny Claycomb has been part of it and that we have not overachieved in our revenue cycle management performance, and again, you combine that with Harry, it's pedigree and expertise. I feel very good about where we are and where we're headed with this.

Mike Petusky -- Barrington Research -- Analyst

Thanks again. Fantastic progress. Thanks.

Dan Greenleaf -- President and Chief Executive Officer

Thanks a lot.

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Thank you.

Operator

Thank you. We have reached the end of our question-and-answer session. So, I would like to pass the floor back over to Mr. Greenleaf for any additional concluding comments.

Dan Greenleaf -- President and Chief Executive Officer

Right. Thank you all for joining today, we are pleased with the solid momentum in the execution of our plans. We look forward to updating you again on our continued progress in November when we announce our Third Quarter 2018 financial results.

Operator

Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation and you may disconnect your lines at this time.

Duration: 38 minutes

Call participants:

Matt Dexter -- Vice President of Deputy General Counsel

Dan Greenleaf -- President and Chief Executive Officer

Steve Deitsch -- Senior Vice President, Chief Financial Officer and Treasurer

Brooks O'Neil -- Lake Street Capital Markets -- Analyst

Bryan Ross -- Jefferies -- Analyst

Kevin Ellich -- Craig-Hallum Capital -- Analyst

Mike Petusky -- Barrington Research -- Analyst

More BIOS analysis

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. The Motley Fool may own shares of and/or recommend stocks mentioned in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

Motley Fool Transcription has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.