Full Press Release Details
| FOR MORE INFORMATION: | Company Contact: |
| Jill Blumhoff | |
| Chief Financial Officer & | |
| Vice President of Finance | |
| Phone: 765.497.8381 | |
| jblumhoff@BASinc.com |
Reports Continued Profitability Improvement
WEST LAFAYETTE, IN, August
14, 2017 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi" or the "Company") today announced
financial results for the third quarter and first nine months of fiscal 2017.
Third Quarter Results
For the three months ended June
30, 2017, revenue amounted to $5,836,000, a 15% increase from $5,053,000 in the third quarter of fiscal 2016.
Service revenue for the third
quarter of fiscal 2017 increased 31% to $4,954,000, compared to $3,773,000 for the same period in fiscal 2016. Preclinical services
revenues improved due to an overall increase in the number of studies in the third quarter compared to the prior fiscal year period.
Other laboratory services revenues were positively impacted by higher pharmaceutical analysis revenues in the third quarter of
fiscal 2017 versus the comparable period in fiscal 2016. Also, archive services revenue added $216,000 to other laboratory services
revenue in the third fiscal quarter of 2017. Bioanalytical analysis revenues declined due to a lower number of samples received
and analyzed in the third quarter of fiscal 2017.
Sales in our Products segment
decreased 31% in the third quarter of fiscal 2017 from $1,280,000 to $882,000 when compared to the same period in the prior fiscal
year. The majority of the decrease stems from lower sales of our Culex automated in vivo sampling systems and our analytical
instruments over the same period in the prior fiscal year.
Gross profit increased to $1,931,000,
or 33% of revenue, in the third quarter of fiscal 2017, compared to $1,173,000, or 23% of revenue, during the comparable fiscal
2016 period. The principal cause for the improvement was the increase in Service revenue, which led to a higher absorption of fixed
Operating expenses for the third quarter
of fiscal 2017 amounted to $1,594,000, a 4% increase when compared to $1,538,000 incurred during the third quarter of fiscal 2016.
Lower salaries and benefits due to the loss of business development and other management personnel were offset by higher consulting
services costs in the third quarter of fiscal 2017.
Operating income for the third quarter
of fiscal 2017 amounted to $337,000 compared to an operating loss of $365,000 for the third quarter of fiscal 2016. The improvement
was primarily due to higher revenue and the improved operating margins.
Net income for the third quarter
of fiscal 2017 amounted to $221,000, or $0.03 per diluted share, compared to a net loss of $433,000, or $0.05 per diluted share
for the third quarter of fiscal 2016.
EBITDA for the third quarter
of fiscal 2017, amounted to $734,000, compared to a negative EBITDA of $2,000 for the third quarter of fiscal 2016.
First Nine Months Results
For the nine months ended June
30, 2017, revenue amounted to $18,369,000 a 20% increase from $15,287,000 in the comparable period of fiscal 2016.
Service revenue increased 28%
in the nine months ended June 30, 2017 to $15,180,000 from $11,881,000 in the first nine months of fiscal 2016. Preclinical services
revenues improved due to an overall increase in the number of studies compared to the prior year period. Other laboratory services
revenues were positively impacted by higher discovery and pharmaceutical analysis revenues in fiscal 2017 versus the comparable
period in fiscal 2016. Also, archive services revenue added $453,000 to other laboratory services revenue in fiscal 2017.
Sales in our Products segment
decreased 6% in the nine months ended June 30, 2017, from $3,406,000 to $3,189,000 when compared to the same period in the prior
fiscal year. The majority of the decrease stems from lower sales of our analytical instruments over the same period in the prior
Gross profit in the nine months
ended June 30, 2017 increased to $5,833,000, or 32% of revenue, compared to $3,473,000, or 23% of revenue, for the same period
of the prior fiscal year. The improvement was driven by an increase in revenues which led to a higher absorption of fixed costs
and a favorable change in sales mix.
Operating expenses for the nine
months ended June 30, 2017 increased 5% to $4,847,000 from $4,629,000 for the comparable fiscal 2016 period. The principal reason
for the increase was higher costs for consulting services, offset, in part, by decreased spending for outside services generally,
as well as lower salaries and benefits due to the loss of business development personnel at the end of fiscal 2016.
Operating income for the first
nine months of fiscal 2017 amounted to $986,000 compared to an operating loss of $1,156,000 for the first nine months of fiscal
2016. The improvement was primarily due to higher revenue and the improved operating margins partially offset by increased operating
Net income amounted to $655,000,
or $0.08 per diluted share, for the first nine months of fiscal 2017. Net loss amounted to $1,193,000, or $0.15 per diluted share,
for the first nine months of fiscal 2016.
EBITDA was $2,151,000 for the
first nine months of fiscal 2017, compared to a negative EBITDA of $89,000 for the first nine months of fiscal 2016.
Cash Provided by Operating
Cash provided by operating activities
was $1,250,000 for the first nine months of fiscal 2017 due in part to the improved operating income performance and lower working
capital levels. The Company had $919,000 in cash and cash equivalents at June 30, 2017.
During the first nine months
of fiscal 2017, cash from operations funded capital expenditures for building improvements and equipment of approximately $205,000.
On June 23, 2017, we entered into a new
Credit Agreement (the "Credit Agreement") with First Internet Bank of Indiana ("FIB"). The Credit Agreement
includes both a term loan and a revolving line of credit and is secured by mortgages on our facilities and personal property in
West Lafayette and Evansville, Indiana. We used the proceeds from the term loan to satisfy our indebtedness with Huntington Bank
and terminated the related interest rate swap. During fiscal 2016 and throughout most of the first nine months of fiscal 2017,
we had operated either in default of, or under forbearance arrangements with respect to, our credit agreements with Huntington
The term loan for $4,500,000 bears interest
at a fixed rate of 3.99%, with monthly principal and interest payments of approximately $33,000. The term loan matures in June
2022. The balance on the term loan at June 30, 2017 was $4,500,000. The revolving line of credit for up to $2,000,000 matures in
June 2019 and bears interest at the Prime Rate (as defined in the Credit Agreement) less 25 basis points (0.25%). The balance on
the revolving line of credit at June 30, 2017 was $256,000. We must pay accrued and unpaid interest on the outstanding balance
under the credit line on a monthly basis. The Credit Agreement is subject to customary affirmative, negative and financial covenants.
Jill Blumhoff, BASi's Vice
President of Finance and Chief Financial Officer commented, "I am very pleased to say that following our improved performance
during the first half of fiscal 2017, we had a strong third quarter. We continue to experience strong demand for preclinical services
and steady improvement in pharmaceutical analysis revenues. Combined with our archive revenue initiative, these factors contributed
to our significant profitability improvement year over year."
"Finalizing the new credit
facility in June was a significant accomplishment, providing liquidity to continue to implement the initiatives begun earlier this
year. Moving forward, we intend to continue to invest in new product development and to attract additional customers for all of
our business units, while maintaining our focus on quality and customer service. I want to thank our employees, board members and
shareholders for their support and continued dedication, which helped us achieve the results thus far this year. It has been a
rewarding team effort," Ms. Blumhoff concluded.
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 EBITDA for the third quarter and first nine months of fiscal 2017 and 2016, respectively. EBITDA refers
to a financial performance measure that excludes certain income statement line items, such as interest, taxes, depreciation, and
amortization. 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 EBITDA, when used in conjunction with the results presented in accordance with GAAP,