BASi Reports Profitable Third Quarter Business Wire WEST LAFAYETTE, Ind. -- October 18, 2013 Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the third quarter and first nine months of fiscal 2013. As set forth in the Company’s Amended Annual Report on Form 10-K/A for the fiscal year ended September30, 2012 as well the Amended Quarterly Reports on Forms 10-Q/A for the three months ended December 31, 2012 and March 31, 2013, respectively, the Company has restated its previously issued financial statements for the fiscal years ended September30, 2011 and September30, 2012and the first two quarters of fiscal 2013 and its selected financial data for the relevant periods. Any comparisons to prior periods reflect restated financial results for those periods. Accordingly, investors should no longer rely upon the Company’s previously released financial statements for these periods and any earnings releases or other communications relating to these periods. BASi returned to profitability in the third quarter, as higher gross margin and lower operating expenses generated an increase in operating income to $438,000 compared to an operating loss of $540,000 last year, despite a decrease in revenue for the quarter. Net income improved to $0.07 per diluted share for this year’s third quarter compared to a net loss of $0.03 per share for the third quarter of the prior year. For the nine months, operating income increased to $732,000 compared to an operating loss of $3,547,000 for the prior year period, and net income increased to $0.06 per diluted share versus a net loss of $0.51 per diluted share last year. "What is more, each of our critical operating metrics, including revenue, gross margin, operating income and cash flow, improved sequentially in the third quarter compared to this year’s second quarter. Cash increased and debt decreased during the third quarter compared to the second, and cash provided by operations for the third quarter was $855,000," said President & CEO and CFO Jacqueline Lemke. "We believe these gains are sustainable, as our marketing initiatives focused on our established strengths in specialty assay and drug discovery, regulatory excellence, and our market-changing Culex^® NxT automated sampling system gain traction among current and new customers. On the product side, as previously announced, we are collaborating with Pinnacle Technology to create a better way to monitor glucose and with Data Sciences International to add value to our Culex system. On the services side, BASi has built a reputation for delivering the quality and timely data that are a critical part of the drug development process. We believe our recent contract to provide IND-enabling safety and toxicology studies for NanoViricides, Inc. and the preferred provider agreement with G1 Therapeutics we announced earlier this week, provide a solid foundation for generating the long-term growth and profitability we are striving for," Lemke said. Third Quarter Results For the three months ended June 30, 2013, revenue decreased to $5,600,000 compared to $7,186,000 for the third quarter of fiscal 2012, but increased sequentially compared to $5,156,000 for the second quarter of fiscal 2013. Gross profit was $2,032,000, or 36.3% of revenue, compared to $2,059,000, or 28.7% of revenue, a year earlier. Operating income for the third quarter of fiscal 2013 was $438,000, compared to an operating loss of $540,000 for the same quarter last year, reflecting the higher gross margin and a 19.3% reduction in operating expenses. Net income for the third quarter of fiscal 2013 was $576,000, or $0.08 per basic share and $0.07 per diluted share, including a pre-tax decrease in the fair value of warrant liability of $318,000. This compares to a net loss for the third quarter of fiscal 2012 of $246,000, or $0.03 per basic and diluted share, which included a pre-tax decrease in the fair value of warrant liability of $458,000. Service revenue for the third quarter of fiscal 2013 decreased 20.1% to $4,156,000 versus $5,200,000 for the same quarter of the prior year, but increased sequentially compared to $3,667,000 for the second quarter of fiscal 2013. The 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 decreased 27.3% to $1,444,000 versus $1,986,000 last year, primarily due to lower sales of our Culex automated sampling systems. EBITDAR for the third quarter of fiscal 2013 was $896,000, an improvement of $180,000 compared to the EBITDAR of $716,000 for the third quarter of fiscal 2012. Nine Months Results For the nine months ended June 30, 2013, revenue decreased 23.4% to $16,560,000, compared to $21,668,000 for the first nine months of fiscal 2012. A substantial portion of this decrease reflected the consolidation of BASi's Oregon laboratory into its West Lafayette facility in the second half of fiscal 2012. Gross profit increased to $5,146,000, or 31.1% of revenue, compared to $4,684,000, or 21.6% of revenue, for last year’s first nine months. Operating income for the first nine months of fiscal 2013 increased to $732,000, compared to an operating loss for the first nine months of fiscal 2012 of $3,547,000. Net income for this year's first nine months of $521,000, or $0.07 per basic share and $0.06 per diluted share, included a pre-tax decrease in the fair value of warrant liability of $293,000. This compares to a net loss for the first nine months of fiscal 2012 of $3,621,000, or $0.51 per basic and diluted share, which included a pre-tax decrease in the fair value of warrant liability of $458,000. EBITDAR for the first nine months of fiscal 2013 increased to $2,238,000, compared to an EBITDAR loss of $1,009,000 for the first nine months of fiscal 2012. Cash provided by operations for this year's first nine months was $1,343,000, versus cash used in operations of $437,000 last year. Balance Sheet Highlights At June 30, 2013, BASi reported cash and cash equivalents of $313,000, total long-term obligations of $540,000, and shareholders' equity of $9,211,000. Current liabilities at June 30, 2013 included mortgage debt of $5,403,000 that matures in October 2013. The Company continues to explore ways to deal with this debt, including a sale leaseback transaction on its building in West Lafayette. At September 30, 2012, cash and cash equivalents were $721,000, total long-term obligations were $5,998,000, and shareholders' equity was $8,377,000. Earnings Conference Call BASi has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its results for the quarter. To participate in the call, dial 877.474.9502, passcode #70599127 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 #96932141 after 1:00 p.m. EST. Non-GAAP to GAAP Reconciliation This press release 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 third quarters and first nine months of 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. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2013 2012 2013 2012 (Restated) (Restated) Service $ 4,156 $ 5,200 $ 12,493 $ 16,090 revenue Product 1,444 1,986 4,067 5,578 revenue Total revenue 5,600 7,186 16,560 21,668 Cost of service 2,897 4,270 9,509 14,592 revenue Cost of product 671 857 1,905 2,392 revenue Total cost of 3,568 5,127 11,414 16,984 revenue Gross profit 2,032 2,059 5,146 4,684 Operating expenses: Selling 317 741 979 2,735 Research and 124 113 332 453 development General and 1,153 1,122 3,103 4,356 administrative Total operating 1,594 1,976 4,414 7,544 expenses Restructuring -- 623 -- 687 charges Operating 438 (540 ) 732 (3,547 ) income (loss) Interest (163 ) (172 ) (492 ) (540 ) expense Change in fair value of warrant 318 458 293 458 liability -- decrease Other income 1 8 6 8 Income (loss) before income 594 (246 ) 539 (3,621 ) taxes Income taxes 18 -- 18 -- Net income $ 576 $ (246 ) $ 521 $ (3,621 ) (loss) Other comprehensive income (loss): Foreign currency 11 (17 ) 66 4 translation adjustment Comprehensive $ 587 $ (263 ) $ 587 $ (3,617 ) income (loss) Basic net income (loss) $ 0.08 $ (0.03 ) $ 0.07 $ (0.51 ) per share Diluted net income (loss) $ 0.07 $ (0.03 ) $ 0.06 $ (0.51 ) per share Weighted common shares outstanding: Basic 7,673 7,259 7,656 7,079 Diluted 8,400 7,259 8,353 7,079 BIOANALYTICAL SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) June 30, September 30, 2013 2012 Assets (Unaudited) (Restated) Current assets: Cash and cash equivalents $ 313 $ 721 Accounts receivable Trade 2,777 3,366 Unbilled revenues and other 559 921 Inventories 1,479 1,656 Prepaid expenses 246 228 Total current assets 5,374 6,892 Property and equipment, net 17,329 18,628 Goodwill 1,383 1,383 Debt issue costs 40 18 Other assets 49 54 Total assets $ 24,175 $ 26,975 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 3,851 $ 3,934 Accrued expenses 1,245 2,067 Customer advances -- deferred revenues 2,377 3,012 Income tax accruals 32 17 Revolving line of credit 332 1,444 Fair value of warrant liability 920 1,213 Current portion of capital lease 264 330 obligation Current portion of long-term debt 5,403 583 Total current liabilities 14,424 12,600 Capital lease obligation, less current 540 739 portion Long-term debt, less current portion -- 5,259 Shareholders' equity: Preferred shares, authorized 1,000,000 shares, no par value: 1,335 Series A shares at $1,000 stated value issued and outstanding at June 30, 2013 and at 1,335 1,335 September 30, 2012 Common shares, no par value: Authorized 19,000,000 shares; 7,687,216 issued and outstanding at June 30, 2013 and 7,638,738 at 1,883 1,871 September 30, 2012 Additional paid-in capital 19,870 19,635 Accumulated deficit (13,972 ) (14,493 ) Accumulated other comprehensive income 95 29 Total shareholders' equity 9,211 8,377 Total liabilities and shareholders' $ 24,175 $ 26,975 equity BIOANALYTICAL SYSTEMS, INC. RECONCILIATION OF GAAP TO NONGAAP EARNINGS (In thousands)(Unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2013 2012 2013 2012 (Restated) (Restated) GAAP Net income (loss) $ 576 $ (246 ) $ 521 $ (3,621 ) Addback: Interest 163 172 492 540 expense Income taxes 18 -- 18 -- Depreciation and 405 579 1,313 1,724 amortization Change in fair value of (318 ) (458 ) (293 ) (458 ) warrant liability Restructuring -- 623 -- 687 expenses Stock option 52 46 187 119 expense NONGAAP EBITDAR $ 896 $ 716 $ 2,238 $ (1,009 ) EBITDAR Earnings before interest, taxes, depreciation, amortization, -- restructuring, stock option expenses and the change in the fair value of warrant liability. Contact: Company Contact: Bioanalytical Systems, Inc. Jacqueline Lemke President, CEO and CFO 765-497-5829 jlemke@BASinc.com or Agency Contact: Berkman Associates Neil Berkman 310-477-3118 email@example.com
BASi Reports Profitable Third Quarter
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