Bioanalytical Systems, Inc. Reports 24% Revenue Increase for Second Quarter Fiscal 2004.Business Editors/Health/Medical Writers WEST LAFAYETTE West Lafayette, city (1990 pop. 25,907), Tippecanoe co., W Ind., a suburb of Lafayette, on the Wabash River; inc. 1924. A primarily residential city, it is the seat of Purdue Univ. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--April 28, 2004 Bioanalytical Systems, Inc. (Nasdaq:BASI) today reported financial results for its second fiscal quarter and six months ended March 31, 2004. Revenue for the second quarter increased 24% to $8.7 million compared to $7.0 million for the second quarter of the prior year. The net loss for the second quarter of 2004 was $(503,000), or $(0.10), per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus a net loss of $(167,000), or $(0.04) per diluted share, for the second fiscal quarter of 2003. The increases in revenues were the result of a 23% increase in service revenues driven by the two acquisitions completed in 2003, and a 28% increase in product revenues. Product sales continue to be driven by increasing Culex Culex /Cu·lex/ (ku´leks) a genus of mosquitoes found throughout the world, many species of which are vectors of disease-producing organisms. Cu·lex n. ABS (Automatic Backup System) See backup program. sales. Cost of revenue for the current second quarter was $6.4 million, or 75% of revenue, compared to $4.7 million, or 68% of revenue in the same period last year. The increase in costs as a percentage of revenues is due primarily to costs associated with underutilized capacity of the two acquisitions, and to a shift in the mix of service projects with a higher percentage of revenue being generated by smaller projects, which on average have lower margins. General and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. were $1.8 million for the quarter, an increase of $0.6 million over the second quarter of last year. This increase is primarily attributable to the Company's acquisitions in fiscal 2003 and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. financial consulting fees incurred to support our financial reporting and internal controls for an interim period beginning in October October: see month. 2003 as a result of the resignation of the Company's Chief Financial Officer. As previously announced, the Company named Michael R. Cox its new Chief Financial Officer effective April 1, 2004. Revenue for the six months ended March 31, 2004 increased 25% to $17.4 million compared to $13.9 million for the similar period of the prior year. The net loss for the six months was $(633,000), or $(0.13), per diluted share versus net income of $108,000, or $0.02 per diluted share for the first six months of fiscal 2003. The increases in revenues were the result of a 27% increase in service revenues and a 21% increase in product revenues as a result of the same factors mentioned in the current quarter. Cost of revenue for the current six months was $12.6 million, or 72% of revenue, compared to $9.0 million, or 65% of revenue in the same period last year. In addition to the factors cited for the current quarter, the first half of the fiscal year was also impacted by a loss contract in the first quarter. The increase in general and administrative costs of $1.3 million to $3.6 million for the six months was the result of the same factors cited in the current quarter. The Company discloses earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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 other financial statement data presented in the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 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 second fiscal quarter and six months ended March, 2004 was $0.3 million and $1.0 million, respectively, compared to $0.5 million and $1.6 million for the comparable periods in the prior year. Set forth below is a reconciliation of the Company's GAAP net income (loss) to EBITDA (in thousands):
Three Months Ended Six Months Ended
March 31, March 31,
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2004 2003 2004 2003
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Net income (loss) $(503) $(167) $(633) $108
Interest expense 207 138 414 248
Income tax expense (benefit) (241) (92) (385) 59
Depreciation and amortization 789 586 1,618 1,155
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EBITDA $252 $465 $1,014 $1,570
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The Company is focusing its efforts on operations integration, greater capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. , aggressive marketing, cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. , and productivity improvement which should improve financial performance. Peter T. Kissinger, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We continue to be cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op . The pharmaceutical research market continues to improve. Unfortunately, there is a lag between some of the market activity we see and its impact on our results. We had strong contract activity in the most recent quarter that we expect to translate into improving revenues and results in the remainder of the year. Sales of our Culex line continued to drive the increase in product sales for the quarter and six months. We continue to devote significant resources to efficiency and cost control, which we believe will improve our financial results and competitive position in the future." Kissinger went on to say that, "While not apparent in our quarterly results, we believe we have made great strides in integrating our Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. Clinical Research Unit. As we have said previously, our efforts there will take several quarters to produce a positive financial impact, but we are pleased with the qualitative improvement in our facility, personnel and leadership at that location." 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. detailed in the company's filings with the Securities and Exchange Commission.
Bioanalytical Systems, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
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2004 2003 2004 2003
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Service revenue $5,608 $4,564 $11,586 $9,096
Product revenue 3,042 2,386 5,841 4,828
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Total revenue 8,650 6,950 17,427 13,924
Cost of service revenue 5,217 3,721 10,276 6,976
Cost of product revenue 1,229 972 2,312 2,006
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Total cost of revenue 6,446 4,693 12,588 8,982
Gross profit 2,204 2,257 4,839 4,942
Operating expenses:
Selling 665 884 1,291 1,642
Research and development 295 323 541 691
General and administrative 1,785 1,197 3,632 2,287
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Total operating expenses 2,745 2,404 5,464 4,620
Operating income (loss) (541) (147) (625) 322
Interest income 2 1 3 2
Interest expense (207) (138) (414) (248)
Other income (expense) 2 30 18 59
Gain (loss) on sale of
property and equipment -- (5) -- 32
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Income (loss) before income
taxes (744) (259) (1,018) 167
Income taxes (241) (92) (385) 59
------------------- --------------------
Net income (loss) $(503) $(167) $(633) $108
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Net income (loss) per share:
Basic $(0.10) $(0.04) $(0.13) $0.02
Diluted $(0.10) $(0.04) $(0.13) $0.02
Weighted common and common
equivalent shares outstanding:
Basic 4,870 4,601 4,851 4,590
Diluted 4,870 4,601 4,851 4,619
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