WEST LAFAYETTE, Ind., Feb. 14, 2019 (GLOBE NEWSWIRE) -- Bioanalytical Systems, Inc. (NASDAQ: BASI ) (“BASi”, the “Company”, “We” or “Our”) today announced financial results for the three months ended December 31, 2018.

Robert Leasure, Jr., BASi’s President and Chief Executive Officer commented, “In only six months, we have accomplished much as a Company.  We acquired the business of Seventh Wave Laboratories, LLC, commenced the expansion of our facilities in Evansville, Indiana, obtained funding to support these initiatives and enhanced our scientific capabilities and client service offerings. We are excited to report revenue growth during the first quarter of fiscal 2019 as compared to fiscal 2018 and proud of the foundation we continue to build for future growth.” 

Mr. Leasure continued, “We are beginning to see our services backlog grow as we promote our combined brand and vision for our future.  We will continue to focus on and invest in business development and marketing efforts to drive revenue growth in the current year and beyond.  Additionally, we will also continue to invest in our business, equipment and people while delivering excellent data and results for our clients.  As we focus on these organic growth initiatives, we will continue to evaluate other options to grow the company.”

“Through all of our efforts, we continue to emphasize and maintain a positive culture for which we can recruit and retain our talented team.  It is with the whole team’s talent and dedication to the Company and to our clients that we will succeed with our initiatives,” Mr. Leasure concluded.

First Quarter Results

For the quarter, revenue amounted to $8,625,000, a 60.4% increase from $5,377,000 in the first quarter of fiscal 2018.  Revenue growth was mainly driven by the incremental sales associated with the Seventh Wave acquisition plus increased sales in both the Services and Products segments.

Net loss for the first quarter of fiscal 2019 amounted to $85,000, or $0.01 per diluted share, compared to net income of $26,000, or $0.00 per diluted share for the first quarter of fiscal 2018.

Net income and earnings per share were impacted by the mix of revenues and higher sales and marketing expenses.  The higher sales and marketing expenses are driven by our focus on promoting our combined brand and revenue growth.

Adjusted EBITDA for the first quarter of fiscal 2019, amounted to $900,000, compared to Adjusted EBITDA for the first quarter of fiscal 2018 of $446,000.

First Quarter Segment Results

Service revenue for the first quarter of fiscal 2019 increased 71% to $7,735,000 compared to $4,525,000 for the same period in fiscal 2018. Nonclinical services revenues increased $2,478,000 due to an overall increase in the number of studies from the prior year and additional revenues attributable to the Seventh Wave Laboratories acquisition of $1,926,000 in the first fiscal quarter of 2019.  Bioanalytical analysis revenues increased by $662,000 in the first quarter of fiscal 2019, mainly due to additional revenues attributable to the Seventh Wave Laboratories acquisition.  Other laboratory services revenues were positively impacted by higher pharmaceutical analysis revenues in the first quarter of fiscal 2019 versus the comparable period in fiscal 2018.

Cost of Service revenue as a percentage of Service revenue increased to 72.4% during the first quarter of fiscal 2019 from 72.3% in the comparable period in fiscal 2018.  The principal cause of this increase was due to the mix of services provided in the current quarter. 

Sales in our Products segment increased 4.5% in the first quarter of fiscal 2019 from $852,000 to $890,000 when compared to the same period in the prior fiscal year.  The majority of the increase stems from higher sales of our analytical instruments and consumables in the current quarter as compared to the prior year quarter. 

Cost of Products revenue as a percentage of Products revenue in the first quarter of fiscal 2019 increased to 68.4% from 61.4% in the comparable prior-year period.  This increase is mainly due to higher material costs and the mix of product sales during the first quarter of fiscal 2019.

Cash Provided by Operating Activities

Cash provided by operating activities was $907,000 for the first quarter of fiscal 2019 compared to $760,000 for the same period in fiscal 2018.

As of December 31, 2018, the Company had $723,000 in cash and cash equivalents and $3,500,000 available on its general line of credit.  The Company had a zero balance on its $4,445,000 construction line of credit and a zero balance on its $1,429,250 equipment line of credit.  During fiscal 2019, cash from operations funded capital expenditures for the expansion of our Evansville facility in addition to laboratory equipment and building improvements as well as computer equipment and software of approximately $684,000.

Non-GAAP to GAAP Reconciliation

This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP).  The non-GAAP financial measures are Adjusted EBITDA for the three month periods ended December 31, 2018 and 2017. Adjusted EBITDA as reported herein refers to a financial performance measure that excludes from net income (loss) income statement line items interest expense and income taxes (benefit) expense, as well as non-cash charges for depreciation and amortization, stock option (benefit) expense and non-recurring acquisition and integration costs.

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 Adjusted EBITDA, 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 our results and to illustrate our 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 emerging pharmaceutical companies and the world's leading drug development companies and medical research organizations. The Company focuses on developing innovative services supporting its clients’ discovery and development objectives for improved decision-making and accelerated goal attainment. BASi products focus on increasing efficiency, improving data, and reducing the cost of taking new drugs to market. Visit  www.BASinc.com  for more information 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 our financial condition, 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.  BASi assumes no obligation to update any forward-looking statement except as may be required by law. Actual results may vary, and could differ materially, from those anticipated, estimated, projected or expected in these forward-looking statements for a number of reasons, including, among others, the risk factors disclosed in the Company's most recent Annual Report, as filed, with the Securities and Exchange Commission.

(SEE BELOW FOR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS)

 

BIOANALYTICAL SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except per share amounts)

  Three Months Ended December 31, (Unaudited)
    2018     2017  
     
Service revenue $   7,735   $   4,525  
Product revenue   890     852  
Total revenue   8,625     5,377  
     
Cost of service revenue   5,597     3,273  
Cost of product revenue   609     523  
Total cost of revenue   6,206     3,796  
     
Gross profit   2,419     1,581  
Operating expenses:    
Selling   653     294  
Research and development   124     139  
General and administrative   1,601     1,137  
Total operating expenses   2,378     1,570  
     
Operating income   41      11  
     
Interest expense   (126 )    (52 )
Other income   1       —  
Net income (loss) before income taxes    (84 )     (41 )
     
Income tax expense (benefit)     1       (67 )
     
Net income (loss) $      (85 ) $   26  
     
Other comprehensive income (loss):     —        —  
     
Comprehensive income (loss) $      (85 ) $   26  
     
     
Basic net income (loss) per share $      (0.01 ) $    0.00  
Diluted net income (loss) per share $      (0.01 ) $  0.00  
     
Weighted common shares outstanding:    
Basic   10,245     8,244  
Diluted   10,245     8,795  

 

BIOANALYTICAL SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS  (In thousands, except share amounts) 

    December 31, 2018 September 30, 2018
Assets      
Current assets:      
Cash and cash equivalents $    723      $  773  
Accounts receivable      
Trade, net of allowance of $1,950 at December 31, 2018 and $1,948 at September 30, 2018   3,665       4,128  
Unbilled revenues and other   984       1,012  
Inventories, net   1,171       1,182  
Prepaid expenses   1,194       966  
Total current assets   7,737       8,061  
       
Property and equipment, net   16,761       16,610  
Goodwill   3,072       3,072  
Other intangible assets, net   3,154       3,318  
Lease rent receivable   121       115  
Deferred tax asset   31       62  
Other assets   27       30  
Total assets $   30,903      $ 31,268  
       
Liabilities and shareholders’ equity      
Current liabilities:      
Accounts payable $ 3,073     $ 3,192  
Restructuring liability   558       1,117  
Accrued expenses   1,888        1,571  
Customer advances   5,320       4,925  
Current portion of capital lease obligation   54       87  
Current portion of long-term debt   920       909  
Total current liabilities   11,813       11,801  
               
Capital lease obligation, less current portion   32       37  
Long-term debt, less current portion, net of debt issuance costs   8,310       8,546  
Total liabilities   20,155       20,384  
       
Shareholders’ equity:      
Preferred shares, authorized 1,000,000 shares, no par  value:      
35 Series A shares at $1,000 stated value issued and outstanding at December 31, 2018 and at September 30, 2018   35       35  
Common shares, no par value:      
Authorized 19,000,000 shares; 10,245,277 issued and outstanding at December 31, 2018 and 10,245,277 at September 30, 2018   2,523        2,523  
Additional paid‑in capital   24,582       24,557  
Accumulated deficit   (16,392 )      (16,231 )
Total shareholders’ equity    10,748       10,884   
Total liabilities and shareholders’ equity $ 30,903      $ 31,268    

 

  BIOANALYTICAL SYSTEMS, INC.
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
(In thousands) (Unaudited)
 
    Three Months Ended    
  December 31,    
    2018       2017          
                 
GAAP Net income (loss) $    (85 )   $   26             
                 
Add back: Interest expense     126          52           
  Income taxes (benefit) expense      1         (67 )        
  Depreciation and amortization      703         401          
  Stock option (benefit) expense      25          34          
  Acquisition and integration costs      130         —          
                 
Adjusted EBITDA $      900      $   446             
                 
Adjusted EBITDA - Earnings before interest expense, income taxes (benefit) expense, depreciation and amortization, stock option (benefit) expense and non-recurring acquisition and integration costs.

 

FOR MORE INFORMATION: Company Contact: 
  Jill Blumhoff 
Chief Financial Officer &
  Vice President of Finance 
  Phone: 765.497.8381 
  jblumhoff@BASinc.com