Full Press Release Details
FOR MORE INFORMATION: Company Contact:
Jeffrey Potrzebowski
Chief Financial Officer &
Vice President of Finance
BASi Reports Fiscal 2015 Full
Fourth Quarter Results
WEST LAFAYETTE, IN, December
17, 2015 -- Bioanalytical Systems, Inc. ("BASi") (NASDAQ:BASI) today announced financial results for
the full fiscal year and fourth quarter ended September 30, 2015.
Jacqueline Lemke, BASi's
President and Chief Executive Officer said, "BASi continued to make progress on several fronts throughout the year while
managing our financial resources to support key programs. Although we were not able to fully replace revenue from programs coming
to a close in fiscal 2014, we have intensified our business development and marketing outreach efforts to ensure potential new
clients recognize the full line of service capabilities and products we offer and we will continue to pursue repeat business with
our extensive, long-term client base."
Ms. Lemke concluded, "As
I have mentioned previously, this is a multi-year journey. We continue aggressively to pursue strategies for improving our financial
position and achieving top line growth. There's still a lot left to do, but our efforts to date, combined with our renewed focus
on the markets we serve sets the stage for accelerated progress in fiscal 2016 and beyond."
For the twelve months ended September
30, 2015, revenues decreased 7.7% to $22,698,000 from $24,584,000 in fiscal 2014.
Service revenue for fiscal 2015
decreased 7.0% to $17,768,000 compared to $19,097,000 for fiscal 2014. Our Service revenue was negatively impacted by fewer bioequivalence
studies in fiscal 2015 versus fiscal 2014, as well as fewer samples received and analyzed in the fourth quarter of fiscal 2015.
Service revenue was also negatively impacted by the increase in method development and validation projects, which generate lower
revenue but involve more dedicated resources. These declines were partially offset by an increase in our preclinical services revenue
in fiscal 2015, due to an increase in the number of studies from the prior year as well as the benefit from an early termination
of two projects that accelerated revenue into fiscal 2015.
Product revenue decreased 10.2%
for fiscal 2015 to $4,930,000 as compared to $5,487,000 for fiscal 2014. Results in fiscal 2015 were impacted by lower sales of
analytical instruments relating to Culex as compared to the prior fiscal year.
Gross profit for fiscal 2015
decreased 5.9% to $7,489,000, or 33.0% of revenue, compared to $7,962,000, or 32.4% of revenue, for the prior fiscal year. Despite
the negative impact of lower overall revenue, gross margin in fiscal 2015 improved six tenths of a point.
Operating expenses for fiscal 2015 decreased
to $6,580,000 compared to $7,628,000 in fiscal 2014, which included a goodwill impairment charge of $374,000, which did not repeat
in fiscal 2015. The decline in operating expenses year over year resulted primarily from a favorable $605,000 (net) mediation settlement
with one of the Company's former service providers in the third quarter of fiscal 2015. Cost reductions and roughly $350,000
in proceeds from the lease of a portion of our headquarters building also helped to lower operating expenses in fiscal 2015 compared
to one year ago. These benefits were offset in part by the recognition of a reserve for potential bad debt amounting to $505,000.
Operating income for fiscal 2015 amounted
to $909,000 compared to $334,000 for the same period of the prior fiscal year, which included the goodwill impairment charge mentioned
above. The negative impact of lower revenue for fiscal 2015 and the provision for a potential bad debt were more than offset by
the favorable $605,000 (net) mediation settlement and lease proceeds, each as described above.
Net income for fiscal 2015 amounted
to $1,089,000, or $0.07 per diluted share, compared to a net loss of $(1,070,000), or $(0.13) per diluted share, for fiscal 2014,
an improvement of $0.20 per diluted share. These results were impacted by the fair value adjustment for warrant liability,
which increased net income by $487,000 in fiscal 2015 and decreased net income by $918,000 in fiscal 2014.
EBITDA for fiscal 2015 amounted
to $2,402,000 as compared to EBITDA for fiscal 2014 of $2,398,000.
Fourth Quarter Results
For the three months ended September
30, 2015, revenues decreased 22.5% to $4,977,000 compared to $6,420,000 in the fourth quarter of fiscal 2014.
Service revenue for the fourth
quarter of fiscal 2015 decreased 21.7% to $3,839,000 compared to $4,901,000 for the same period of the prior fiscal year. Our Service
revenue was negatively impacted by fewer bioequivalence studies in the fourth quarter of fiscal 2015 versus fiscal 2014 as well
as fewer samples received and analyzed in the fourth quarter of fiscal 2015.
Product revenue for the fourth
quarter of fiscal 2015 amounted to $1,138,000, a 25.1% decrease compared to revenue of $1,519,000 for the fourth quarter of fiscal
2014. Fiscal 2015 results were impacted by lower sales of analytical instruments relating to Culex , as compared
to the fourth quarter of fiscal 2014.
Gross profit decreased to $1,293,000,
or 26.0% of revenue, in the fourth quarter of fiscal 2015 compared to $1,821,000, or 28.4% of revenue, during the comparable period
last fiscal year. Lower revenue was the primary reason for the decline in gross profit margin compared to the same period in fiscal
Operating expenses for the fourth
quarter of fiscal 2015 decreased to $2,088,000 compared to $2,310,000 during the fourth quarter fiscal 2014, which included a goodwill
impairment charge of $374,000, which did not repeat in fiscal 2015. In the fiscal 2015 fourth quarter, proceeds from the lease
of a portion of our headquarters building amounted to $159,000, but these proceeds and cost reduction initiatives were more than
offset by the recognition of a reserve for potential bad debt amounting to $505,000.
Operating loss for the fourth
quarter of fiscal 2015 amounted to $(795,000), compared to an operating loss of $(489,000) for the fourth quarter of fiscal 2014,
which included the goodwill impairment charge mentioned above. Lower revenue and the reserve for a potential bad debt were the
primary drivers for the increase in the operating loss in fiscal 2015 compared to same period last year.
Net loss was $(721,000) for the
fourth quarter of fiscal 2015, or $(0.09) per diluted share, compared to a net loss of $(404,000), or $(0.05) per diluted share,
for the fourth quarter of fiscal 2014.
EBITDA loss for the fourth quarter
of fiscal 2015 amounted to $(439,000) compared to EBITDA for the fourth quarter of fiscal 2014 of $309,000. The decrease year over
year was primarily due to lower revenue and the reserve for a potential bad debt mentioned above.
Cash Provided by Operating
Cash provided by operating activities
was $2,031,000 for fiscal 2015, up 20.6% from fiscal 2014. Cash provided by operating activities in fiscal 2015 included $605,000
and $350,000 from the mediation settlement and lease proceeds, respectively, each as described above. The Company had $438,000
in cash and cash equivalents at September 30, 2015. During fiscal 2015, cash on hand and cash provided by operations
funded capital expenditures for plant, machinery and equipment of approximately $1,467,000, in addition to debt service.
Earnings Conference Call
BASi has scheduled a conference
call at 11:00 a.m. EST this morning to discuss its results for the quarter and full year. To participate in the call, dial 866.865.2633
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 855.859.2056
after 2:00 p.m. EST.
Non-GAAP Reconciliation
The non-GAAP financial information
in this release 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