BASi Reports Profitable Third Quarter

  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
info@berkmanassociates.com