Bioanalytical Systems, Inc. Reports 26% Revenue Increase for First 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.--(BUSINESS WIRE)--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 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 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 preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. services and UK-based bioanalytical services showed significant improvement as the quarter ended. Product revenues continued to be strong, 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 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 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 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 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 due to the resignation of the Company's Chief Financial Officer in October 2003. 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.
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 net income (loss), cash flows from operating, investing or financing activities or 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 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,
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2003 2002
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Net income (loss) $ (130) $ 275
Interest expense 207 110
Income tax expense (benefit) (144) 151
Depreciation and amortization 829 569
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EBITDA $ 762 $ 1,105
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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 are 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 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 (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. 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 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 share and per share amounts)
(Unaudited)
Three Months Ended
December 31,
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2003 2002
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Service revenue $ 5,978 $ 4,532
Product revenue 2,799 2,442
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Total revenue 8,777 6,974
Cost of service revenue 5,059 3,255
Cost of product revenue 1,083 1,034
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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
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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
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Income (loss) before income taxes (274) 426
Income tax expense (benefit) (144) 151
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Net income (loss) $ (130) $ 275
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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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