BASi Reports Revenue Growth in First Quarter of Fiscal 2019

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 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.



(In thousands, except per share amounts)

 Three Months Ended
December 31,
  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 


 (In thousands, except share amounts) 

  December 31,
September 30,
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   



(In thousands)
  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.


 Jill Blumhoff 
Chief Financial Officer &
 Vice President of Finance 
 Phone: 765.497.8381