Bioanalytical Systems, Inc. Reports 26% Revenue Increase for First Quarter Fiscal 2004
WEST LAFAYETTE, Ind.--Feb. 12, 2004--
Bioanalytical Systems, Inc. (Nasdaq:BASI) today reported financial
results for its first quarter ended December 31, 2003.
Revenue for the first fiscal quarter ended December 31, 2003
increased 25.9% to $8.8 million compared to $7.0 million for the
quarter ended December 31, 2002. Net loss for the first fiscal quarter
of 2004 was $(130,000), or $(0.03), per diluted share versus net
income of $275,000, or $0.06 per diluted share, for the first fiscal
quarter of 2003. Service revenue increases were the result of the
Company's two acquisitions completed in 2003. Preclinical services and
UK-based bioanalytical services showed significant improvement as the
quarter ended. Product revenues continued to be strong, driven by
increasing Culex ABS sales.
Cost of revenue for the first quarter ended December 31, 2003 was
$6.2 million, or 70% of revenue, compared to $4.3 million, or 62% of
revenue, for the first quarter ended December 31, 2002. The increase
in cost of revenues is due to the acquisitions in fiscal 2003 and a
material loss from unreimbursed project overruns on one contract. The
increase in cost of revenue as a percentage of revenue is related to
the operating inefficiencies of the acquisitions and the project
overruns previously mentioned.
General and administrative costs were $1.8 million for the quarter
vs. $1.1 million for the first quarter ended December 31, 2002. This
increase is primarily attributable to the Company's acquisitions in
fiscal 2003, higher-than-planned financial audit costs, and
incremental financial consulting fees incurred due to the resignation
of the Company's Chief Financial Officer in October 2003.
The Company discloses earnings before interest, taxes,
depreciation and amortization (EBITDA), which is not a measure of
performance calculated in accordance with generally accepted
accounting principles (GAAP) in the United States. The Company has
presented this to supplement GAAP measures because management believes
it to be an indicator of operating health of the Company. EBITDA
should not be considered in isolation or as an alternative to net
income (loss), cash flows from operating, investing or financing
activities or other financial statement data presented in the
consolidated financial statements as an indicator of financial
performance or liquidity. Because EBITDA is not a measurement
determined in accordance with GAAP and is thus susceptible to varying
calculations, the benchmarks presented may not be comparable to other
similarly titled measures of other companies. EBITDA for the first
fiscal quarter ended December 31, 2003 was $0.8 million compared to
$1.1 million for the comparable quarter ended December 31, 2002.
Set forth below is a reconciliation of the Company's GAAP net
income (loss) to EBITDA (in thousands):
Three Months Ended
December 31,
------------------------
2003 2002
---------- ----------
Net income (loss) $ (130) $ 275
Interest expense 207 110
Income tax expense (benefit) (144) 151
Depreciation and amortization 829 569
--------- ---------
EBITDA $ 762 $ 1,105
========= =========
The Company is focusing its efforts on operations integration,
greater capacity utilization, aggressive marketing, cost containment,
and productivity improvement which should improve financial
performance.
Peter T. Kissinger, Chairman and CEO said, "We are cautiously
optimistic. The pharmaceutical research market is improving. Strong
preclinical and UK analytical revenue and record Culex shipments in
the first quarter reflect developing trends throughout BASi. Efforts
to reduce debt, control costs and improve efficiency, in part through
company-wide IT improvements, including ERP software, are all
positive."
"Our biggest challenge in the quarter," Kissinger went on to say,
"continued to be the turnaround of the Baltimore Clinical Research
Unit. Clients have been pleased with new leadership and improved
aesthetics. Integration is progressing well, and this new East Coast
site is starting to deliver the strategic market value we expected.
Realistically though, locking in new, high-profile clients and
creating long-term relationships will likely take a few quarters of
effort.
"Personally, I believe that positive trends in the business
combined with the prospect of reducing G&A costs as we move into 2004,
should help us deliver improved results. We've also made good progress
toward recruiting a highly qualified Chief Financial Officer.
Financially, we want 2004 to be a year of new leadership, planning,
consolidation, and improving efficiency."
Bioanalytical Systems, Inc. is a pharmaceutical development
company providing contract research services and monitoring
instruments to the world's leading drug development and medical device
companies. BASi focuses on developing innovative services and products
that increase efficiency and reduce costs associated with taking new
drugs to market. Visit www.bioanalytical.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 the development 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.
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Bioanalytical Systems, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
December 31,
-----------------------
2003 2002
----------- -----------
Service revenue $ 5,978 $ 4,532
Product revenue 2,799 2,442
---------- ----------
Total revenue 8,777 6,974
Cost of service revenue 5,059 3,255
Cost of product revenue 1,083 1,034
---------- ----------
Total cost of revenue 6,142 4,289
Gross profit 2,635 2,685
Operating expenses:
Selling 626 758
Research and development 246 368
General and administrative 1,847 1,090
---------- ----------
Total operating expenses 2,719 2,216
Operating income (84) 469
Interest income 1 1
Interest expense (207) (110)
Other income 16 29
Gain on sale of property and equipment -- 37
---------- ----------
Income (loss) before income taxes (274) 426
Income tax expense (benefit) (144) 151
---------- ----------
Net income (loss) $ (130) $ 275
========== ==========
Net income (loss) per share
Basic $ (0.03) $ 0.06
Diluted $ (0.03) $ 0.06
Weighted average common shares outstanding
Basic 4,831,874 4,579,034
Diluted 4,831,874 4,636,591
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