Diplomat Pharmacy (NYSE:DPLO) slumps 52% premarket on increased volume on the heels of its Q3 report.
Revenue was down 5% to $1,301M while loss/share was ($2.35) compared to break-even a year ago.
Specialty segment prescriptions dispensed were up 3% to 237K, but adjusted PBM segment volume cratered 52% to 922K and net PBM sales were down 51% to $82.5M.
Cash flow ops (9 mo.) was up 225% to $108.0M.
2019 guidance: Revenue: $4.9B – 5.1B from $4.7B – 5.0B; net loss: ($368M – 361M) from ($201M – 191M); loss/share: ($4.91 – 4.81 from $2.69 – 2.55).
The company is exploring strategic alternatives as its liquidity dries up. At the end of September, it only had $8.4M in cash and equivalents and $95M in borrowing capacity compared to $105M in borrowings under its credit revolver and $456M in outstanding term loans. It says it may not be able to meet its total net leverage and interest coverage ratio covenants in its credit agreement this quarter, opening the door for creditors to foreclose on its assets. It is currently working with lenders on renegotiating the covenants or amend the credit agreement.
