Full Press Release Details
| FOR MORE INFORMATION: | Company Contact: |
| Jacqueline Lemke | |
| President, CEO and CFO | |
| Phone: 765.497.5829 | |
| jlemke@BASinc.com | |
| Agency Contact: | |
| Neil Berkman | |
| Berkman Associates | |
| Phone: 310.477.3118 | |
| info@berkmanassociates.com |
BASi Reports Profitable
Fourth Quarter and Fiscal 2013
IN - December 24, 2013 - Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for
the fourth quarter and fiscal 2013, highlighted by net income of $252,000, or $0.03 per diluted share, for the fourth quarter and
$773,000, or $0.09 per diluted share, for the year. This compares to net losses of $2,696,000, or $0.36 per share and $6,317,000,
or $0.88 per share, for the fourth quarter and fiscal 2012.
have work to do to achieve all of our goals for BASi, we are proud of what we already have accomplished to restore profitability
and set the stage for growth in the years ahead," said President & CEO and CFO Jacqueline Lemke.
we consolidated our laboratories into our headquarters in West Lafayette, closing facilities in Oregon and the UK to reduce operating
costs and strengthen our ability to meet clients' needs by improving laboratory utilization. We also implemented personnel reductions
and other cost cutting measures in selling, R&D and general and administrative functions. As a result, while revenue for fiscal
2013 decreased 21.8% compared to fiscal 2012 primarily due to the restructuring, gross margin increased from 24.2% to 32.0%, operating
expenses declined by a third, and operating income increased to $830,000 for fiscal 2013 compared to an operating loss of $2,491,000
before restructuring charges for fiscal 2012. In addition, BASi generated $1,519,000 in cash from operations for fiscal 2013 versus
cash used in operations of $200,000 for fiscal 2012," Lemke said.
2013, cash and cash equivalents were $1,304,000 as compared to $721,000 at the end of fiscal 2012. The Company recently negotiated
an extension of the maturity of the $5,254,000 mortgage on its building in West Lafayette to October 2014, providing the flexibility
to continue to explore a refinancing or sale/leaseback or other transaction to deal with this debt.
we have created fresh opportunities for growth by establishing collaborative research efforts to validate new applications for
our market-changing Culex NxT automated sampling system, and negotiating preferred provider and other agreements in our laboratory
services business that build on BASi's reputation for delivering the quality and timely data that is critical to the drug development
process. These initiatives contributed to the increase in new order bookings we have enjoyed in recent months. The increase also
reflects our refocused and expanded marketing initiatives based on BASi's established strengths in specialty assay and drug discovery,
regulatory excellence, and automated sampling via Culex NxT . These encouraging developments position BASi for higher revenue
in fiscal 2014 even as we continue to improve productivity and maintain control over costs," Lemke said.
Fourth Quarter Results
For the three months
ended September 30, 2013, revenue decreased to $5,508,000 compared to $6,540,000 for the fourth quarter of fiscal 2012. Gross profit
was $1,909,000, or 34.7% of revenue, compared to $2,154,000, or 32.9% of revenue, a year earlier. Operating expenses for the fourth
quarter of fiscal 2013 increased to $1,811,000 compared to $1,785,000 a year earlier, primarily due to expenses associated with
the restatement of financial results for certain prior periods reported on October 18, 2013. Operating income for the fourth quarter
of fiscal 2013 was $98,000, compared to an operating loss of $2,139,000 a year earlier, which included restructuring charges of
$2,508,000. Net income for the fourth quarter of fiscal 2013 was $252,000, or $0.03 per basic share and diluted share, which included
a pre-tax decrease in the fair value of warrant liability of $308,000. This compares to a net loss for the fourth quarter of fiscal
2012 of $2,696,000, or $0.36 per basic and diluted share, which included a pre-tax increase in the fair value of warrant liability
the fourth quarter of fiscal 2013 decreased 23.8% to $3,980,000 from $5,222,000 for the fourth quarter of fiscal 2012. Fiscal 2013
service revenue was negatively affected by the consolidation of BASi's Oregon laboratory into its West Lafayette facility in the
second half of fiscal 2012.
Product revenue increased
15.9% to $1,528,000 versus $1,318,000 for the prior year's fourth quarter, and increased sequentially compared to $1,444,000 for
the third quarter of fiscal 2013, primarily due to higher sales of Culex automated sampling systems.
EBITDAR for the fourth
quarter of fiscal 2013 was $547,000 compared to EBITDAR of $891,000 for the fourth quarter of fiscal 2012.
Twelve Months Results
For the twelve months
ended September 30, 2013, revenue decreased 21.8% to $22,068,000, compared to $28,208,000 for fiscal 2012. A substantial portion
of this decrease reflected the consolidation of BASi's Oregon laboratory into its West Lafayette facility as well as the closure
of the laboratory in the UK in the second half of fiscal 2012. Gross profit increased 3.2% to $7,055,000, or 32.0% of revenue,
compared to $6,838,000, or 24.2% of revenue, for fiscal 2012. Operating income for fiscal 2013 increased to $830,000, compared
to an operating loss for fiscal 2012 of $5,686,000, which included restructuring charges of $3,195,000. Net income for fiscal 2013
of $773,000, or $0.10 per basic and $0.09 per diluted share, included a pre-tax decrease in the fair value of the warrant liability
of $601,000. This compares to a net loss for fiscal 2012 of $6,317,000, or $0.88 per basic and diluted share, which included a
pre-tax decrease in the fair value of the warrant liability of $73,000.
2013 increased to $2,785,000, compared to an EBITDAR loss of $118,000 for fiscal 2012.
Earnings Conference Call
a conference call at 11:00 a.m. EDT this morning to discuss its results for the quarter. To participate in the call, dial 866.825.1709,
passcode #95235310 at least five minutes before the start of the call. A simultaneous webcast may be accessed from the Investors
tab at www.BASInc.com. The webcast will be available for replay after 2:00 p.m. EST at this same Internet address.
For a telephone replay, dial 888.286.8010, passcode #65530693 after 2:00 p.m. EST.
Non-GAAP to GAAP Reconciliation
contains financial measures that are not calculated in accordance with accounting principles generally accepted in the United States
(GAAP). The non-GAAP financial measures are EBITDAR for the fourth quarters and fiscal 2013 and 2012. EBITDAR refers to financial
performance measures that exclude certain income statement line items, such as interest, taxes, depreciation, and amortization
and/or exclude certain non-cash or one-time expenses as permitted by our credit agreements, such as stock-based compensation, restructuring
charges and the income or expense from the change in the warrant liability.
The non-GAAP financial
information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in
accordance with GAAP. Management, however, believes that these non-GAAP financial measures, when used in conjunction with the results
presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate a fuller
analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen to
provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional
analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation. Management
strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety
and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies,
even when similar terms are used to identify such measures.
About Bioanalytical Systems, Inc.
BASi is a pharmaceutical
development company providing contract research services and monitoring instruments to the world's leading drug development companies
and medical research organizations. The company focuses on developing innovative services and products that increase efficiency
and reduce the cost of taking a new drug to market. Visit www.BASinc.com for more about BASi.
This release contains forward-looking
statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes
in the market and demand for our products and services, the development, marketing and sales of products and services, changes
in technology, industry standards and regulatory standards, and various market and operating risks detailed in the company's filings
with the Securities and Exchange Commission.
[SEE BELOW FOR CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS]
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30. | September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Services | $ | 3,980 | $ | 5,222 | $ | 16,473 | $ | 21,312 | ||||||||
| Products | 1,528 | 1,318 | 5,595 | 6,896 | ||||||||||||
| Total Revenue | 5,508 | 6,540 | 22,068 | 28,208 | ||||||||||||
| Cost of Service Revenue | 2,907 | 3,880 | 12,416 | 18,472 | ||||||||||||
| Cost of Product Revenue | 692 | 506 | 2,597 | 2,898 | ||||||||||||
| Total Cost of Revenue | 3,599 | 4,386 | 15,013 | 21,370 | ||||||||||||
| Gross Profit | 1,909 | 2,154 | 7,055 | 6,838 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Selling | 387 | 528 | 1,366 | 3,263 | ||||||||||||
| Research & Development | 122 | 89 | 454 | 542 | ||||||||||||
| General & Administrative | 1,302 | 1,168 | 4,405 | 5,524 | ||||||||||||
| Total Operating Expenses | 1,811 | 1,785 | 6,225 | 9,329 | ||||||||||||
| Restructuring Charge | - | 2,508 | - | 3,195 | ||||||||||||
| Operating Income (Loss) | 98 | (2,139 | ) | 830 | (5,686 | ) | ||||||||||
| Interest Expense | (157 | ) | (174 | ) | (649 | ) | (714 | ) | ||||||||
| Change in fair value of | ||||||||||||||||
| warrant liability - increase (decrease) | 308 | (385 | ) | 601 | 73 | |||||||||||
| Other Income/Expense | 1 | 4 | 7 | 12 | ||||||||||||
| Income (Loss) before Income Taxes | 250 | (2,694 | ) | 789 | (6,315 | ) | ||||||||||
| Income Tax Expense (Benefit) | (2 | ) | (2 | ) | 16 | 2 | ||||||||||
| Net Income (Loss) | $ | 252 | $ | (2,696 | ) | $ | 773 | $ | (6,317 | ) | ||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign Currency Translation Adjustment | (63 | ) | (26 | ) | 3 | (22 | ) | |||||||||
| Comprehensive Income (Loss) | $ | 189 | $ | (2,722 | ) | $ | 776 | $ | (6,339 | ) | ||||||
| Net Earnings (Loss) per Share | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.36 | ) | $ | 0.10 | $ | (0.88 | ) | ||||||
| Diluted | $ | 0.03 | $ | (0.36 | ) | $ | 0.09 | $ | (0.88 | ) | ||||||
| Weighted common shares outstanding: | ||||||||||||||||
| Basic | 7,687 | 7,395 | 7,664 | 7,158 | ||||||||||||
| Diluted | 8,432 | 7,395 | 8,369 | 7,158 |
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
| September 30, | ||||||||
| 2013 | 2012 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,304 | $ | 721 | ||||
| Accounts receivable | ||||||||
| Trade | 3,621 | 3,366 | ||||||
| Unbilled revenues and other | 691 | 921 | ||||||
| Inventories | 1,379 | 1,656 | ||||||
| Prepaid expenses | 238 | 228 | ||||||
| Total current assets | 7,233 | 6,892 | ||||||
| Property and equipment, net | 16,913 | 18,628 | ||||||
| Goodwill | 1,383 | 1,383 | ||||||
| Debt issue costs, net | 21 | 18 | ||||||
| Other assets | 47 | 54 | ||||||
| Total assets | $ | 25,597 | $ | 26,975 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,584 | $ | 3,934 | ||||
| Accrued expenses | 1,689 | 2,067 | ||||||
| Customer advances | 2,815 | 3,012 | ||||||
| Income tax accruals | 30 | 17 | ||||||
| Revolving line of credit | 1,415 | 1,444 | ||||||
| Fair value of warrant liability | 612 | 1,213 | ||||||
| Current portion of capital lease obligation | 268 | 330 | ||||||
| Current portion of long-term debt | 613 | 583 | ||||||
| Total current liabilities | 11,026 | 12,600 | ||||||
| Capital lease obligation, less current portion | 471 | 739 | ||||||
| Long-term debt, less current portion | 4,641 | 5,259 | ||||||
| Total liabilities | 16,138 | 18,598 | ||||||
| Shareholders' equity: | ||||||||
| Preferred shares, authorized 1,000,000 shares, 1,335 Series A shares at $1,000 stated value issued and outstanding at September 30, 2013 and at September 30, 2012 | 1,335 | 1,335 | ||||||
| Common shares, no par value: Authorized 19,000,000 shares; 7,703,891 issued and outstanding at September 30, 2013 and 7,638,738 at September 30, 2012 | 1,887 | 1,871 | ||||||
| Additional paid-in capital | 19,925 | 19,635 | ||||||
| Accumulated deficit | (13,720 | ) | (14,493 | ) | ||||
| Accumulated other comprehensive income | 32 | 29 | ||||||
| Total shareholders' equity | 9,459 | 8,377 | ||||||
| Total liabilities and shareholders' equity | $ | 25,597 | $ | 26,975 |
BIOANALYTICAL SYSTEMS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
(In thousands)(Unaudited)