Full Press Release Details
Chief Financial Officer
BASi Closes Fiscal 2019 with
Strong Fourth Quarter
WEST LAFAYETTE, IN, December
23, 2019 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our")
doing business as Inotiv, a leading provider of nonclinical and analytical contract research services, today announced financial
results for the three and twelve months ended September 30, 2019.
Robert Leasure, Jr., BASi's President
and Chief Executive Officer commented "In the fourth Quarter of 2019 we have started to see the financial results of many
of the improvements and aquisitions over the last 18 months. In fiscal 2019, we continued the integration of the Seventh Wave acquisition,
completed in July 2018, and completed the acquisition of Smithers Avanza's toxicology facility in Gaithersburg, Maryland,
in May 2019. We have been able to take advantage of increases in capacity and broadened scientific expertise acquired to reach
additional clients. The Evansville new building expansion and facility improvements are substantially complete and are expected
to be available for operations the second half of fiscal 2020. In recent weeks, we finalized the acquisition of Pre-Clinical Research
Services, Inc., further adding to our capabilities and strong scientific expertise. We have also seen improvements and internal
growth in developing our Discovery and DMPK business models. We obtained funding to support our acquisitions, expansion, and other
improvements to our facilities and equipment. We have been able to recruit and retain a significant group of talented people. We
continue to invest in further integrating our laboratories in our effort to develop existing facilities and services into "Centers
of Excellence" in order to distinguish our services within the industry, and will continue to evaluate additional opportunities
for internal and external growth. We have also invested in developing improved internal systems. Our services backlog and quoting
activities are growing as a result of the acquisitions and investments in sales and marketing, including our recent launch of our
new brand, "Inotiv," and our unwavering focus on the customer experience."
Mr. Leasure further commented,
" We saw revenue growth of 36.1% compared to the third quarter of 2019 and overall revenue growth of 65.6% compared to fiscal
2018, including growth attributable to internal growth and our acquisitions. We reported net income of nearly $290,000 in the fourth
quarter as compared to a net loss in each prior quarter of fiscal 2019. The fourth quarter of 2019 did include $174,000 in acquisition
related expenses. Adjusted EBITDA for the fourth quarter of fiscal 2019 amounted to $1,425,000, compared to Adjusted EBITDA for
the fourth quarter of fiscal 2018 of $1,029,000."
"I am very proud of our
team, what we have accomplished and what we are building. We have much more we can accomplish in the years ahead. The transactions,
facility improvements and focus on recruiting talented people in 2019 were part of a strategic, focused plan. We believe many of
these investments should allow us to provide enhanced service offerings and sustained growth into 2020. Together, we continue to
build a bright future." Mr. Leasure concluded.
Fourth Quarter Results
For the quarter, revenue amounted
to $14,786,000, a 64.5% increase from $8,986,000 in the fourth quarter of fiscal 2018. Revenue growth was driven by the incremental
sales associated with the Seventh Wave and Smithers Avanza acquisitions, plus increased organic sales in the Services segment.
Net income for the fourth quarter
of fiscal 2019 amounted to $290,000, or $0.03 per diluted share, compared to a net loss of $200,000, or $0.02 per diluted share
for the fourth quarter of fiscal 2018.
Net income and earnings per
share were impacted by, among other factors, the increase in revenues and acquisition-related and integration-related costs, as
well as higher sales and marketing expenses and bringing on board additional employees. The higher sales and marketing expenses
are driven by our focus on promoting our combined brand and revenue growth.
Adjusted EBITDA for the fourth
quarter of fiscal 2019 amounted to $1,430,000, compared to Adjusted EBITDA for the fourth quarter of fiscal 2018 of $1,029,000.
Fourth Quarter Segment Results
Service revenue for the fourth quarter
of fiscal 2019 increased 68.3% to $13,493,000 compared to $8,019,000 for the same period in fiscal 2018. Nonclinical services revenues
increased nearly $4,943,000 in the fourth quarter of fiscal 2019. Included in the growth was $2,846,000 of revenue related to the
acquisition of Smithers Avanza. Bioanalytical analysis and other laboratory revenues also increased by $269,000 and $263,000, respectively,
in the fourth quarter of fiscal 2019.
Cost of Service revenue as a percentage
of Service revenue increased slightly to 67.8% during the fourth quarter of fiscal 2019 from 65.9% in the comparable period in
fiscal 2018. The principal cause of this increase was the mix of service revenues favoring nonclinical revenues versus bioanalytical
Sales in our Products segment increased
in the fourth quarter of fiscal 2019 from $967,000 to $1,293,000 when compared to the same period in the prior fiscal year.
Cost of Products revenue as a percentage
of Products revenue in the fourth quarter of fiscal 2019 increased to 63.7% from 54.9% in the comparable prior-year period mainly
due to the mix of products sold and the increased cost of a few raw materials.
For fiscal 2019, revenue amounted
to $43,616,000, a 65.6% increase from $26,346,000 in fiscal 2018. Revenue growth was driven by incremental sales associated with
the Seventh Wave and Smithers Avanza acquisitions in addition to increases in existing services. In addition there were increased
sales in the Products segments.
Net loss for fiscal 2019 amounted
to $790,000, or $0.08 per diluted share, compared to net loss of $194,000, or $0.02 per diluted share for fiscal 2018.
Despite the increase in revenues,
net loss was impacted by, among other factors, acquisition and integration related costs, recruiting and bringing on board additional
people, as well as increased sales and marketing expenses.
Adjusted EBITDA for fiscal 2019
amounted to $3,375,000, compared to Adjusted EBITDA for fiscal 2018 of $2,424,000.
Fiscal Year Segment Results
Service revenue for fiscal 2019 increased
74.0% to $39,048,000 compared to $22,440,000 for fiscal 2018. Nonclinical services revenues increased $14,378,000 in fiscal 2019
due to additional revenues attributable to the full-year performance of Seventh Wave Laboratories and the revenues attributable
to the Smithers Avanza acquisition of $7,060,000 and $4,267,000, respectively, as well as an overall increase in the number of
studies compared to the prior year period. Bioanalytical analysis revenues increased by $2,137,000 in fiscal 2019, both from additional
revenues attributable to the full-year performance of the Seventh Wave Laboratories acquisition of $1,889,000 and from an increase
in samples received and analyzed.
Cost of Service revenue as a percentage
of Service revenue remained flat at 70.9% during fiscal 2019 as compared to fiscal 2018.
Sales in our Products segment increased
16.9% in fiscal 2019 from $3,906,000 to $4,568,000 when compared to the prior fiscal year.
Cost of Products revenue as a percentage
of Products revenue in fiscal 2019 increased to 65.5% from 59.5% in fiscal 2018. This increase is mainly due to higher material
costs and during fiscal 2019.
Cash Provided by Operating Activities
Cash provided by operating activities was
$1,777,000 for fiscal 2019 compared to $3,487,000 for fiscal 2018.
As of September 30, 2019, the Company had
$606,000 in cash and cash equivalents, a $1,063,000 balance on its general line of credit, a $3,158,000 balance on its $4,445,000
construction line of credit, a $1,143,000 balance on its $1,429,250 equipment line of credit and a $655,000 balance on its capex
line of credit. During fiscal 2019, cash from operations, cash on hand and financing activities funded capital expenditures of
approximately $6,878,000 for the expansion of our Evansville facility in addition to laboratory equipment and building improvements
as well as computer equipment and software.
On December 1, 2019, the Company acquired
from Pre-Clinical Research Services, Inc. ("Seller") substantially all of the assets used by the Seller in connection
with the performance of surgical and medical device in-vivo mammalian toxicology CRO services. The Company also purchased a building
and real estate in Fort Collins used in the Seller's business. The consideration for the acquisition consisted of $1,500,000