Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced
financial results for the second quarter and first six months of fiscal
Second Quarter Highlights
First Half Highlights
BASi President & CEO and CFO Jacqueline Lemke said, "The trend of
steadily improving operating performance at BASi continued in the second
quarter. The improvement in our financial results was instrumental in
our establishing a new $7,500,000 credit facility this month with The
Huntington National Bank, consisting of a $5,500,000 term loan at LIBOR
plus 325 basis points, and a $2,000,000 revolving line of credit at
LIBOR plus 300 basis points. With substantially more favorable terms
than the long-term debt and line of credit it replaces, this new credit
facility lowers BASi's borrowing costs and enhances our ability to
implement our growth plan. In addition to these tangible benefits, our
new credit facility is a strong vote of confidence in BASi's future, and
we are pleased that The Huntington National Bank has recognized our
progress. We intend to use our new term loan facility to pay off the
current portion of our long-term debt, which amounted to approximately
$4,953,000 at March 31, 2014.
"We are leveraging our existing laboratory capacity and an incremental
investment in people and skills to drive growth. We took steps to
upgrade BASi's executive leadership during the second quarter, as we
continue building a management team with the depth, experience and
dedication to take the company to the next level.
"Our focus on BASi's established strengths in specialty assay and drug
discovery, regulatory excellence, and our market-changing Culex® NxT
automated sampling system is generating an increase in orders in our
traditional businesses and creating opportunities for us to win
contracts in new areas such as discovery work on stem cell therapies and
related pre-clinical work. This expansion of our portfolio of services
is especially important as we work to increase our book of business with
the current generation of smaller, specialty drug development
organizations that generally do not have the extensive scientific and
regulatory capabilities required to move a drug candidate through the
arduous FDA approval process. We are seeking to develop a sustainable
competitive advantage by balancing the requirements of our large
pharmaceutical company clients with a higher touch, full service
approach for smaller biotech accounts."
Second Quarter Results
For the three months ended March 31, 2014, revenue increased 14.7% to
$5,912,000 compared to $5,156,000 for the second quarter of fiscal 2013.
Gross profit increased to $2,012,000, or 34.0% of revenue, compared to
$1,258,000, or 24.4% of revenue, during the comparable period last year.
The net loss for the second quarter of fiscal 2014 was $219,000, or
$0.03 per share, compared to a net loss for the second quarter of fiscal
2013 of $311,000, or $0.04 per share.
The net loss for the second fiscal quarter was affected by a non-cash
increase in the fair value of the warrant liability of $200,000.
Excluding this charge, the non-GAAP net loss for the second quarter of
fiscal 2014 was $19,000, or $0.00 per share. For the second quarter of
fiscal 2013, the net loss included a non-cash increase in the fair value
of the warrant liability of $142,000. Excluding this charge, the
non-GAAP net loss for the second quarter of fiscal 2013 was $169,000, or
$0.02 per basic and diluted share.
Operating expenses for the second quarter of fiscal 2014 increased to
$1,907,000 compared to $1,267,000 during the second quarter of fiscal
2013, primarily due to planned increases in selling and R&D expenses.
Operating income increased to $105,000 compared to an operating loss of
$9,000 for last fiscal year's second quarter.
Service revenue increased 23.4% to $4,526,000 for the second quarter of
fiscal 2014 compared to $3,667,000 for the prior fiscal year period
primarily due to higher toxicology and bioanalytical revenues offset
slightly by lower pharmaceutical analysis revenues.
Product revenue decreased 6.9% for the second quarter of fiscal 2014 to
$1,386,000 compared to $1,489,000 during the second quarter of fiscal
2013, primarily due to expected upgrades postponed until the third
quarter of fiscal 2014.
EBITDA for the second quarter of fiscal 2014 was $504,000 compared to
EBITDA for the second quarter of fiscal 2013 of $490,000.
First Half Results
For the six months ended March 31, 2014, revenue increased 10.7% to
$12,132,000 compared to $10,960,000 for the first six months of fiscal
2013. Gross margin for this year's first half increased 33.5% to
$4,157,000, or 34.3% of revenue, compared to $3,114,000, or 28.4% of
revenue, for the same period of the prior fiscal year. Operating income
increased 92.9% to $567,000 compared to $294,000 a year earlier.
The net loss for the first six months of fiscal 2014 of $881,000, or
$0.11 per share, included an increase in the fair value of the warrant
liability of $1,161,000. Excluding this charge, non-GAAP net income for
the first six months of fiscal 2014 was $280,000, or $0.04 per basic and
diluted share. For the first six months of fiscal 2013, the net loss of
$55,000, or $0.01 per basic and diluted share, included an increase in
the fair value of the warrant liability of $25,000. Excluding this
charge, the non-GAAP net loss for the first six months of fiscal 2013
was $30,000, or $0.00 per basic and diluted share.
EBITDA for the first six months of fiscal 2014 was $1,416,000 compared
to EBITDA for the first six months of fiscal 2013 of $1,342,000.
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
866.713.8563, passcode #24051454 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. EDT at this
same Internet address. For a telephone replay, dial 888.286.8010,
passcode #60437922 after 2:00 p.m. EDT.
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 net income
excluding the income or expense of the change in the warrant liability,
and EBITDA for the first two quarters of fiscal 2014 and 2013. EBITDA
refers to financial performance measures that exclude certain income
statement line items, such as interest, taxes, depreciation, and
amortization. EBITDA may also exclude certain non-cash or one-time
expenses, such as stock-based compensation 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
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]
Preferred shares, authorized 1,000,000 shares, no par value: 1,185
Series A shares at $1,000 stated value issued and outstanding at
March 31, 2014 and 1,335 at September 30, 2013
Common shares, no par value: authorized 19,000,000 shares;
8,057,267 issued and outstanding at March 31, 2014 and 7,703,891
at September 30, 2013
BIOANALYTICAL SYSTEMS, INC.
EBITDA - Earnings before interest, taxes, depreciation,
amortization, stock option expenses and the change in the fair
value of warrant liability.
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