Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the fourth quarter and fiscal 2013, highlighted by net income of $252,000, or $0.03 per diluted share, for the fourth quarter and $773,000, or $0.09 per diluted share, for the year. This compares to net losses of $2,696,000, or $0.36 per share and $6,317,000, or $0.88 per share, for the fourth quarter and fiscal 2012.
"While we still have work to do to achieve all of our goals for BASi, we are proud of what we already have accomplished to restore profitability and set the stage for growth in the years ahead," said President & CEO and CFO Jacqueline Lemke.
"In fiscal 2012 we consolidated our laboratories into our headquarters in West Lafayette, closing facilities in Oregon and the UK to reduce operating costs and strengthen our ability to meet clients' needs by improving laboratory utilization. We also implemented personnel reductions and other cost cutting measures in selling, R&D and general and administrative functions. As a result, while revenue for fiscal 2013 decreased 21.8% compared to fiscal 2012 primarily due to the restructuring, gross margin increased from 24.2% to 32.0%, operating expenses declined by a third, and operating income increased to $830,000 for fiscal 2013 compared to an operating loss of $2,491,000 before restructuring charges for fiscal 2012. In addition, BASi generated $1,519,000 in cash from operations for fiscal 2013 versus cash used in operations of $200,000 for fiscal 2012," Lemke said.
As of September 30, 2013, cash and cash equivalents were $1,304,000 as compared to $721,000 at the end of fiscal 2012. The Company recently negotiated an extension of the maturity of the $5,254,000 mortgage on its building in West Lafayette to October 2014, providing the flexibility to continue to explore a refinancing or sale/leaseback or other transaction to deal with this debt.
"Just as important, we have created fresh opportunities for growth by establishing collaborative research efforts to validate new applications for our market-changing Culex® NxT automated sampling system, and negotiating preferred provider and other agreements in our laboratory services business that build on BASi's reputation for delivering the quality and timely data that is critical to the drug development process. These initiatives contributed to the increase in new order bookings we have enjoyed in recent months. The increase also reflects our refocused and expanded marketing initiatives based on BASi's established strengths in specialty assay and drug discovery, regulatory excellence, and automated sampling via Culex®NxT. These encouraging developments position BASi for higher revenue in fiscal 2014 even as we continue to improve productivity and maintain control over costs," Lemke said.
Fourth Quarter Results
For the three months ended September 30, 2013, revenue decreased to $5,508,000 compared to $6,540,000 for the fourth quarter of fiscal 2012. Gross profit was $1,909,000, or 34.7% of revenue, compared to $2,154,000, or 32.9% of revenue, a year earlier. Operating expenses for the fourth quarter of fiscal 2013 increased to $1,811,000 compared to $1,785,000 a year earlier, primarily due to expenses associated with the restatement of financial results for certain prior periods reported on October 18, 2013. Operating income for the fourth quarter of fiscal 2013 was $98,000, compared to an operating loss of $2,139,000 a year earlier, which included restructuring charges of $2,508,000. Net income for the fourth quarter of fiscal 2013 was $252,000, or $0.03 per basic share and diluted share, which included a pre-tax decrease in the fair value of warrant liability of $308,000. This compares to a net loss for the fourth quarter of fiscal 2012 of $2,696,000, or $0.36 per basic and diluted share, which included a pre-tax increase in the fair value of warrant liability of $385,000.
Service revenue for the fourth quarter of fiscal 2013 decreased 23.8% to $3,980,000 from $5,222,000 for the fourth quarter of fiscal 2012. Fiscal 2013 service revenue was negatively affected by the consolidation of BASi's Oregon laboratory into its West Lafayette facility in the second half of fiscal 2012.
Product revenue increased 15.9% to $1,528,000 versus $1,318,000 for the prior year's fourth quarter, and increased sequentially compared to $1,444,000 for the third quarter of fiscal 2013, primarily due to higher sales of Culex automated sampling systems.
EBITDAR for the fourth quarter of fiscal 2013 was $547,000 compared to EBITDAR of $891,000 for the fourth quarter of fiscal 2012.
Twelve Months Results
For the twelve months ended September 30, 2013, revenue decreased 21.8% to $22,068,000, compared to $28,208,000 for fiscal 2012. A substantial portion of this decrease reflected the consolidation of BASi's Oregon laboratory into its West Lafayette facility as well as the closure of the laboratory in the UK in the second half of fiscal 2012. Gross profit increased 3.2% to $7,055,000, or 32.0% of revenue, compared to $6,838,000, or 24.2% of revenue, for fiscal 2012. Operating income for fiscal 2013 increased to $830,000, compared to an operating loss for fiscal 2012 of $5,686,000, which included restructuring charges of $3,195,000. Net income for fiscal 2013 of $773,000, or $0.10 per basic and $0.09 per diluted share, included a pre-tax decrease in the fair value of the warrant liability of $601,000. This compares to a net loss for fiscal 2012 of $6,317,000, or $0.88 per basic and diluted share, which included a pre-tax decrease in the fair value of the warrant liability of $73,000.
EBITDAR for fiscal 2013 increased to $2,785,000, compared to an EBITDAR loss of $118,000 for fiscal 2012.
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