BASi Reports Profitable Fourth Quarter and Fiscal 2013

  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
info@berkmanassociates.com