BASi Reports Profitable Fourth Quarter and Fiscal 2013 Business Wire WEST LAFAYETTE, Ind. -- December 24, 2013 Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the fourth quarter and fiscal 2013, highlighted by net income of $252,000, or $0.03 per diluted share, for the fourth quarter and $773,000, or $0.09 per diluted share, for the year. This compares to net losses of $2,696,000, or $0.36 per share and $6,317,000, or $0.88 per share, for the fourth quarter and fiscal 2012. "While we still have work to do to achieve all of our goals for BASi, we are proud of what we already have accomplished to restore profitability and set the stage for growth in the years ahead," said President & CEO and CFO Jacqueline Lemke. "In fiscal 2012 we consolidated our laboratories into our headquarters in West Lafayette, closing facilities in Oregon and the UK to reduce operating costs and strengthen our ability to meet clients' needs by improving laboratory utilization. We also implemented personnel reductions and other cost cutting measures in selling, R&D and general and administrative functions. As a result, while revenue for fiscal 2013 decreased 21.8% compared to fiscal 2012 primarily due to the restructuring, gross margin increased from 24.2% to 32.0%, operating expenses declined by a third, and operating income increased to $830,000 for fiscal 2013 compared to an operating loss of $2,491,000 before restructuring charges for fiscal 2012. In addition, BASi generated $1,519,000 in cash from operations for fiscal 2013 versus cash used in operations of $200,000 for fiscal 2012," Lemke said. As of September30, 2013, cash and cash equivalents were $1,304,000 as compared to $721,000 at the end of fiscal 2012. The Company recently negotiated an extension of the maturity of the $5,254,000 mortgage on its building in West Lafayette to October 2014, providing the flexibility to continue to explore a refinancing or sale/leaseback or other transaction to deal with this debt. "Just as important, we have created fresh opportunities for growth by establishing collaborative research efforts to validate new applications for our market-changing Culex® NxT automated sampling system, and negotiating preferred provider and other agreements in our laboratory services business that build on BASi's reputation for delivering the quality and timely data that is critical to the drug development process. These initiatives contributed to the increase in new order bookings we have enjoyed in recent months. The increase also reflects our refocused and expanded marketing initiatives based on BASi's established strengths in specialty assay and drug discovery, regulatory excellence, and automated sampling via Culex^®NxT. These encouraging developments position BASi for higher revenue in fiscal 2014 even as we continue to improve productivity and maintain control over costs," Lemke said. Fourth Quarter Results For the three months ended September 30, 2013, revenue decreased to $5,508,000 compared to $6,540,000 for the fourth quarter of fiscal 2012. Gross profit was $1,909,000, or 34.7% of revenue, compared to $2,154,000, or 32.9% of revenue, a year earlier. Operating expenses for the fourth quarter of fiscal 2013 increased to $1,811,000 compared to $1,785,000 a year earlier, primarily due to expenses associated with the restatement of financial results for certain prior periods reported on October 18, 2013. Operating income for the fourth quarter of fiscal 2013 was $98,000, compared to an operating loss of $2,139,000 a year earlier, which included restructuring charges of $2,508,000. Net income for the fourth quarter of fiscal 2013 was $252,000, or $0.03 per basic share and diluted share, which included a pre-tax decrease in the fair value of warrant liability of $308,000. This compares to a net loss for the fourth quarter of fiscal 2012 of $2,696,000, or $0.36 per basic and diluted share, which included a pre-tax increase in the fair value of warrant liability of $385,000. Service revenue for the fourth quarter of fiscal 2013 decreased 23.8% to $3,980,000 from $5,222,000 for the fourth quarter of fiscal 2012. 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 increased 15.9% to $1,528,000 versus $1,318,000 for the prior year's fourth quarter, and increased sequentially compared to $1,444,000 for the third quarter of fiscal 2013, primarily due to higher sales of Culex automated sampling systems. EBITDAR for the fourth quarter of fiscal 2013 was $547,000 compared to EBITDAR of $891,000 for the fourth quarter of fiscal 2012. Twelve Months Results For the twelve months ended September 30, 2013, revenue decreased 21.8% to $22,068,000, compared to $28,208,000 for fiscal 2012. A substantial portion of this decrease reflected the consolidation of BASi's Oregon laboratory into its West Lafayette facility as well as the closure of the laboratory in the UK in the second half of fiscal 2012. Gross profit increased 3.2% to $7,055,000, or 32.0% of revenue, compared to $6,838,000, or 24.2% of revenue, for fiscal 2012. Operating income for fiscal 2013 increased to $830,000, compared to an operating loss for fiscal 2012 of $5,686,000, which included restructuring charges of $3,195,000. Net income for fiscal 2013 of $773,000, or $0.10 per basic and $0.09 per diluted share, included a pre-tax decrease in the fair value of the warrant liability of $601,000. This compares to a net loss for fiscal 2012 of $6,317,000, or $0.88 per basic and diluted share, which included a pre-tax decrease in the fair value of the warrant liability of $73,000. EBITDAR for fiscal 2013 increased to $2,785,000, compared to an EBITDAR loss of $118,000 for fiscal 2012. Earnings Conference Call BASi has scheduled a conference call at 11:00 a.m. EST this morning to discuss its results for the quarter. To participate in the call, dial 866.825.1709, passcode #95235310 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 #65530693 after 2:00 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 fourth quarters and 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. BIOANALYTICAL SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except per share amounts)(Unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2013 2012 2013 2012 Services $ 3,980 $ 5,222 $ 16,473 $ 21,312 Products 1,528 1,318 5,595 6,896 Total Revenue 5,508 6,540 22,068 28,208 Cost of Service Revenue 2,907 3,880 12,416 18,472 Cost of Product Revenue 692 506 2,597 2,898 Total Cost of Revenue 3,599 4,386 15,013 21,370 Gross Profit 1,909 2,154 7,055 6,838 Operating Expenses: Selling 387 528 1,366 3,263 Research & Development 122 89 454 542 General & Administrative 1,302 1,168 4,405 5,524 Total Operating Expenses 1,811 1,785 6,225 9,329 Restructuring Charge -- 2,508 -- 3,195 Operating Income (Loss) 98 (2,139 ) 830 (5,686 ) Interest Expense (157 ) (174 ) (649 ) (714 ) Change in fair value of warrant liability - increase 308 (385 ) 601 73 (decrease) Other Income/Expense 1 4 7 12 Income (Loss) before Income 250 (2,694 ) 789 (6,315 ) Taxes Income Tax Expense (Benefit) (2 ) (2 ) 16 2 Net Income (Loss) $ 252 $ (2,696 ) $ 773 $ (6,317 ) Other comprehensive income (loss): Foreign Currency Translation (63 ) (26 ) 3 (22 ) Adjustment Comprehensive Income (Loss) $ 189 $ (2,722 ) $ 776 $ (6,339 ) Net Earnings (Loss) per Share Basic $ 0.03 $ (0.36 ) $ 0.10 $ (0.88 ) Diluted $ 0.03 $ (0.36 ) $ 0.09 $ (0.88 ) Weighted common shares outstanding: Basic 7,687 7,395 7,664 7,158 Diluted 8,432 7,395 8,369 7,158 BIOANALYTICAL SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) September 30, 2013 2012 Assets Current assets: Cash and cash equivalents $ 1,304 $ 721 Accounts receivable Trade 3,621 3,366 Unbilled revenues and other 691 921 Inventories 1,379 1,656 Prepaid expenses 238 228 Total current assets 7,233 6,892 Property and equipment, net 16,913 18,628 Goodwill 1,383 1,383 Debt issue costs, net 21 18 Other assets 47 54 Total assets $ 25,597 $ 26,975 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 3,584 $ 3,934 Accrued expenses 1,689 2,067 Customer advances 2,815 3,012 Income tax accruals 30 17 Revolving line of credit 1,415 1,444 Fair value of warrant liability 612 1,213 Current portion of capital lease obligation 268 330 Current portion of long-term debt 613 583 Total current liabilities 11,026 12,600 Capital lease obligation, less current portion 471 739 Long-term debt, less current portion 4,641 5,259 Total liabilities 16,138 18,598 Shareholders’ equity: Preferred shares, authorized 1,000,000 shares, 1,335 Series A shares at $1,000 stated value issued and outstanding at September 30, 2013 and at September 1,335 1,335 30, 2012 Common shares, no par value: Authorized 19,000,000 shares; 7,703,891 issued and outstanding at September 30, 2013 and 7,638,738 at September 30, 2012 1,887 1,871 Additional paid-in capital 19,925 19,635 Accumulated deficit (13,720 ) (14,493 ) Accumulated other comprehensive income 32 29 Total shareholders' equity 9,459 8,377 Total liabilities and shareholders' equity $ 25,597 $ 26,975 BIOANALYTICAL SYSTEMS, INC. RECONCILIATION OF GAAP TO NON-GAAP EARNINGS (In thousands)(Unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2013 2012 2013 2012 GAAP Net income $ 252 $ (2,696 ) $ 773 $ (6,317 ) (loss) Addback: 157 174 649 714 Interest expense Income taxes (2 ) 2 16 2 Depreciation and 410 554 1,723 2,278 amortization Change in fair value of warrant (308 ) 385 (601 ) (73 ) liability Restructuring -- 2,508 -- 3,195 expenses Stock option 38 (36 ) 225 83 expense NON-GAAP EBITDAR $ 547 $ 891 $ 2,785 $ (118 ) EBITDAR -- Earnings before interest, taxes, depreciation, amortization, restructuring, stock option expenses and the change in the fair value of warrant liability. 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 firstname.lastname@example.org
BASi Reports Profitable Fourth Quarter and Fiscal 2013
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