Full Press Release Details
FOR MORE INFORMATION: Company Contact:
Jeffrey Potrzebowski
Chief Financial Officer &
Vice President of Finance
BASi Reports Third Quarter Net Income
WEST LAFAYETTE, IN, August 13, 2015
- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi" or the "Company") today announced
financial results for the third quarter and first nine months of fiscal 2015.
Jacqueline Lemke, BASi's President
and Chief Executive Officer, said, "I am pleased to report net income of $1,478,000, or 24% of revenue, and $.16 per diluted
share for the third quarter of fiscal year 2015 and $1,810,000 or 10.2% of revenue and $.16 per diluted share for the first nine
months of fiscal 2015. The fiscal year 2015 results to date reflect improvement over the prior fiscal year third quarter net income
of $215,000 or 3.6% of revenue and $.02 per diluted share and the net loss for the first nine months of the prior fiscal year of
$666,000 or a negative 3.7% of revenues and negative $.08 per diluted share. A portion of our fiscal 2015 third quarter
net income performance was positively impacted by the accelerated recognition of Preclinical service revenue due to early project
terminations and a one-time mediation settlement with a former service provider."
Ms. Lemke continued, "With revenue
in the third quarter of fiscal 2015 increasing sequentially by 7.4% versus the second quarter of fiscal 2015 and 2.0% versus the
same quarter in the prior fiscal year, the overall performance this quarter was very encouraging. Adjusted EBITDA for the third
quarter of fiscal 2015 improved to $1,892,000 from $762,000 and Adjusted EBITDA for the first nine months of fiscal year 2015 improved
to $2,842,000 from $2,089,000 as compared to the same period in fiscal year 2014. Adjusted EBITDA through the first nine months
of fiscal 2015 amounted to 16.0% of revenue versus 11.5% during the comparable fiscal 2014 period."
Ms. Lemke concluded, "We continue
to strive to enhance shareholder value by delivering high quality data, instruments and customer service to our clients through
BASi's established strengths in specialty assay development, drug discovery service offerings, regulatory excellence and
Third Quarter Results
For the three months ended June 30, 2015,
revenue increased 2.0% to $6,150,000 compared to $6,032,000 in the third quarter of fiscal 2014.
Service revenue for the third quarter of
fiscal 2015 increased 5.2% to $5,001,000 compared to $4,754,000 for the same period of the prior fiscal year. The increase reflects
improvement in Preclinical service and Bioanalytical analysis revenues partially offset by lower Other laboratory services revenue.
Product revenue for the third quarter of
fiscal 2015 decreased 10.1% to $1,149,000 compared to revenue of $1,278,000 for the same period of fiscal 2014. The decline was
due primarily to lower Analytical instrument sales.
Gross profit increased to $2,490,000 or
40.5% of revenue, in the third quarter of fiscal 2015 compared to $1,984,000, or 32.9% of revenue, for the comparable period of
fiscal 2014. Services margins increased favorably due to the early termination of two Preclinical services projects resulting in
the accelerated reporting of revenue. Product margins decreased due to a less favorable mix than the same period of fiscal 2014.
Operating expenses for the third quarter
of fiscal 2015 decreased to $956,000 compared to $1,728,000 during the third quarter of fiscal 2014. The decline resulted primarily
from a favorable $620,000 (net) mediation settlement with one of the Company's former service providers in the third quarter
of fiscal 2015. This settlement was recorded under operating expenses in the condensed consolidated statements of operations and
comprehensive income (loss). Other factors decreasing operating expenses included lower personnel costs compared to the same period
one year ago and roughly $140,000 in proceeds from the lease of a portion of our headquarters building.
Net income for the third quarter of fiscal
2015 was $1,478,000, or $0.16 per diluted share, compared to net income of $215,000, or $0.02 per diluted share, for the same period
Adjusted EBITDA for the third quarter of
fiscal 2015 amounted to $1,892,000 compared to Adjusted EBITDA for the third quarter of fiscal 2014 of $762,000. This 148% improvement
reflects the increase in operating income in the quarter.
For the nine months ended June 30, 2015,
revenue decreased 2.4% to $17,721,000 compared to $18,164,000 for the first nine months of fiscal 2014.
Service revenue decreased 1.9% compared
to the first nine months of fiscal 2014, representing a decline in Other laboratory services due to a decreased number of bioequivalence
studies partially offset by the early termination of two Preclinical services projects resulting in the accelerated reporting of
revenue in the third quarter.
Product revenue decreased 4.4% compared
to the first nine months of fiscal 2014, mainly due to lower Analytical instruments revenue and lower hardware maintenance services.
Gross profit increased to $6,196,000 or
34.9% of revenue compared to $6,141,000 or 33.8% of revenue for the same period of the prior fiscal year.
Operating expenses decreased 15.5% to $4,492,000
from $5,318,000 in the same period of fiscal 2014. The decline resulted primarily from the favorable mediation settlement approximating
$600,000 (net), described above. Other factors decreasing operating expenses included lower discretionary spending compared to
same period one year ago and roughly $190,000 in rental income relating to leasing a portion of our headquarters building.
Net income for the first nine months of
fiscal 2015 amounted to $1,810,000, or $0.22 per diluted share, compared to net loss of $666,000, or negative $0.08 per diluted
share, for the same period of fiscal 2014. The increase in net income was positively impacted by the mediation settlement described
above and the early termination of two Preclinical services projects recognized in the third quarter of fiscal 2015.
Adjusted EBITDA for the first nine months
of fiscal 2015 amounted to $2,842,000, which is a 36% increase, as compared to $2,089,000 for the first nine months of fiscal 2014.
Cash Used in Operating Activities and
Cash provided by operating activities was
$1,175,000 for the first nine months of fiscal 2015 in line with the first nine months of fiscal 2014. The Company had $516,000
in cash and cash equivalents at June 30, 2015. During the first nine months, cash from operations, and cash on hand
funded capital expenditures for plant, machinery and equipment aggregating approximately $666,000 and reductions in long-term debt
and capital lease obligations totaling roughly $800,000.
Earnings Conference Call
BASi has scheduled a conference call at
11:00 a.m. Eastern Daylight Time (EDT) on August 14, 2015 to discuss the results. To participate in the call, dial (866) 865-2633,
participant passcode: 2120136.
A simultaneous webcast of the conference
call may be accessed online from the Investors tab at www.BASinc.com. The webcast will be available for replay after 2:00 p.m.
EDT at this same internet address. For a telephone replay, dial (855) 859-2056 from August 13th through August 20th, 2015.
Non-GAAP to GAAP Reconciliation
This press release contains financial measures
that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial
measures are adjusted EBITDA for the three and nine months ended June 30, 2015 and 2014, respectively. Adjusted EBITDA refers to
a financial performance measure that excludes certain income statement line items, such as interest, taxes, depreciation, and amortization.
Adjusted EBITDA may also exclude certain non-cash expenses, such as stock-based compensation 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