Bioanalytical Systems, Inc. (NASDAQ:BASI) (the “Company”, “We”,
“Our” or “Inotiv”), doing business as Inotiv, a leading provider of
nonclinical and analytical contract research services, today
announced financial results for the three months ended December 31,
2020 (“Q1 FY 2021”).
Q1 FY 2021 Highlights
- Revenue grew
38.5% to $17.9 million, from $12.9 million during the fiscal
quarter ended December 31, 2019 (“Q1 FY 2020”), driven by $3.5
million of internal growth and $1.5 million of incremental revenue
from a full quarter of operations at our Fort Collins, CO, location
(legacy Pre-Clinical Research Services, Inc. [“PCRS”]).
- Gross profit
increased 69.0% to $5.9 million, from $3.5 million in Q1 FY 2020,
reflecting higher revenue and a 594 basis point expansion in gross
margin to 32.86%.
- Operating income
totaled $14,000, compared to an operating loss of $1.0 million in
Q1 FY 2020, reflecting higher gross profit on higher revenue and a
203 basis point decrease in operating expenses as a percent of
revenue.
- Net loss was
$366,000, or $(0.03) per diluted share, compared to a net loss of
$1.4 million, or $(0.13) per diluted share, in Q1 FY 2020.
- Adjusted EBITDA
increased 169.4% to $1.3 million, from $481,000 in Q1 FY 2020.
- Book-to-bill
ratio of 1.16x for services business.
- Ending backlog
of $45.3 million, up 26.9% compared to $35.7 million at the end of
Q1 FY 2020 and up from $43.8 million at September 30, 2020.
Robert Leasure, Jr., the Company's President and
Chief Executive Officer, commented, “We commenced fiscal 2021 with
improved first quarter financial results, including 38.5% revenue
growth year over year, expanding margins, positive operating income
and $1.3 million of adjusted EBITDA. This quarter demonstrates the
operating leverage inherent in our business as we grow revenue and
the value of continuing to invest in our people, capacity,
infrastructure, systems and services. Our organization’s
unification under the Inotiv brand name, along with our
client-service oriented culture, continued to drive performance, as
reflected in our increasing revenue, quarter-end backlog of $45.3
million and book-to-bill ratio of 1.16x.”
Mr. Leasure concluded, “Our quarter-end backlog,
positive first quarter book-to-bill ratio and seeing our team and
business mature this quarter gives us additional confidence to
continue to invest in our future. We believe that we have
significant opportunities ahead of us to expand our services,
generate favorable returns on our investments and drive value for
shareholders. We also have opportunities to continue to improve and
escalate the client experience, while strengthening our winning
culture and creating a professional, gratifying work
environment.”
Q1 FY 2021 Review
Q1 FY 2021 revenue increased 38.5% to $17.9
million, from $12.9 million in Q1 FY 2020. The majority of the
increase in revenue was due to internal growth, augmented by $1.5
million of incremental revenue from PCRS, which the Company
acquired in December of 2019.
Service segment revenue for Q1 FY 2021 increased
40.3% to $17.0 million, from $12.1 million in Q1 FY 2020. The
increase in service revenue was due to incremental revenue of $1.5
million in Q1 FY 2020 attributable to a full quarter of Fort
Collins, CO, (legacy PCRS) related operations, combined with
additional revenue as a result of the expansion of our Evansville
location and organic growth.
Cost of Service revenue as a percentage of
Service revenue decreased to 68.1% in Q1 FY 2021, from 73.4% in Q1
FY 2020. Service gross margin increased to 31.9% in Q1 FY 2021,
from 26.6% in Q1 FY 2020, reflecting operating leverage and the
greater utilization of recently expanded capacity.
Product segment revenue increased 9.9% to
$853,000 in Q1 FY 2021, from $776,000 in Q1 FY 2020, reflecting
higher sales of Culex in-vivo sampling systems and analytical
instruments, partially offset by a decrease in other
instruments.
Cost of Product revenue as a percentage of
Product revenue in Q1 FY 2021 decreased to 48.2% from 68.3% in Q1
FY 2020, due to expense reductions implemented in the last half of
FY 2020 and improved margins on existing sales. Product gross
margin increased to 51.8% in Q1 FY 2021, from 31.7% in Q1 FY
2020.
The book-to-bill ratio for Q1 FY 2021 was 1.16x.
We continued to build our infrastructure for growth, which included
additional headcount and investments in research and development,
technology, and systems. We believe the benefit of the PPP loan has
allowed us to continue to retain our employees and safely maintain
business operations through recent periods. Our backlog at the end
of Q1 FY 2021 was $45.3 million, compared to $35.7 million at the
end of Q1 FY 2020.
Net loss in Q1 FY 2021 totaled $366,000, or
$(0.03) per diluted share, an improvement of $1.1 million compared
to a net loss of $1.4 million, or $(0.13) per diluted share in Q1
FY 2020.
Adjusted EBITDA increased 169.4% to $1.3 million
in Q1 FY 2021, from $481,000 in Q1 FY 2020.
Cash Provided by Operating Activities
and Financial Condition
Cash provided by operating activities was $1.7
million in Q1 FY 2021, compared to $1.5 million in Q1 FY 2020.
As of December 31, 2020, the Company had $1.2
million in cash and cash equivalents and there was a $0 balance on
its general line of credit. Borrowings on our $3.0 million capex
line of credit increased by $387 to the maximum balance of $3.0
million. In Q1 FY 2021, cash from operations, cash on hand and
financing activities funded capital expenditures of $1.5 million
for the investment in laboratory equipment to increase capacity and
improvements to our Fort Collins facility.
Conference Call
Management will host a conference call on
Tuesday, February 9, 2021, at 4:30 pm ET to discuss Q1 FY 2021
financial results.
Interested parties may participate in the call
by dialing:
- (877) 407-9753 (Domestic)
- (201) 493-6739 (International)
The live conference call webcast also will be
accessible in the Investors section of the Company’s website, and
directly via the following
link:https://78449.themediaframe.com/dataconf/productusers/bas2/mediaframe/43273/indexl.html.
For those who cannot listen to the live
broadcast, an online webcast replay will be available in the
Investors section of Inotiv’s web site at:
https://www.inotivco.com/investors/investor-information/.
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 months ended
December 31, 2020 and 2019. 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,
United Kingdom lease liability reversal benefit, non-recurring
acquisition and integration costs and other non-recurring
third-party costs, such as recruiting costs, consulting fees
related to the adoption of two accounting standards, and expenses
for rebranding and new website launch.
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 the Company
Bioanalytical Systems, Inc., doing business as
Inotiv, 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. The Company’s products focus on
increasing efficiency, improving data, and reducing the cost of
taking new drugs to market. Visit inotivco.com for more
information about the Company.
This release may contain forward-looking
statements that are subject to risks and uncertainties including,
but not limited to, risks and uncertainties related to changes in
the market and demand for our products and services, the
development, marketing and sales of products and services, changes
in technology, industry and regulatory standards, the timing of
acquisitions and the successful closing, integration and business
and financial impact thereof, the impact of the COVID-19 pandemic
on the economy, demand for our services and products and our
operations, including the measures taken by governmental
authorities to address the pandemic, which may precipitate or
exacerbate other risks and/or uncertainties and various other
market and operating risks, including those detailed in the
Company's filings with the U.S. Securities and Exchange
Commission.
Company Contact |
|
Investor Relations |
Bioanalytical Systems, Inc., dba Inotiv |
|
The Equity Group Inc. |
Beth A. Taylor, Chief Financial Officer |
|
Kalle Ahl, CFA |
(765) 497-8381 |
|
(212) 836-9614 |
btaylor@inotivco.com |
|
kahl@equityny.com |
|
|
|
|
|
Devin Sullivan |
|
|
(212) 836-9608 |
|
|
dsullivan@equityny.com |
Financial Tables Follow:
BIOANALYTICAL SYSTEMS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share amounts)
|
Three Months Ended December 31, |
|
|
2020 |
|
|
2019 |
|
|
(unaudited) |
(unaudited) |
Service revenue |
$ |
17,032 |
|
$ |
12,142 |
|
Product revenue |
|
853 |
|
|
776 |
|
Total
revenue |
|
17,885 |
|
|
12,918 |
|
|
|
|
Cost of service revenue |
|
11,597 |
|
|
8,911 |
|
Cost of product revenue |
|
411 |
|
|
530 |
|
Total
cost of revenue |
|
12,008 |
|
|
9,441 |
|
|
|
|
Gross profit |
|
5,877 |
|
|
3,477 |
|
Operating expenses: |
|
|
Selling |
|
625 |
|
|
882 |
|
Research and development |
|
196 |
|
|
162 |
|
General and
administrative |
|
5,042 |
|
|
3,453 |
|
Total operating expenses |
|
5,863 |
|
|
4,497 |
|
|
|
|
Operating income (loss) |
|
14 |
|
|
(1,020 |
) |
|
|
|
Interest
expense |
|
(347 |
) |
|
(311 |
) |
Other
income |
|
— |
|
|
2 |
|
Net loss before income
taxes |
|
(333 |
) |
|
(1,329 |
) |
|
|
|
Income tax expense |
|
33 |
|
|
97 |
|
|
|
|
Net loss |
$ |
(366 |
) |
$ |
(1,426 |
) |
|
|
|
|
|
|
Basic net loss per share |
$ |
(0.03 |
) |
$ |
(0.13 |
) |
Diluted net loss per
share |
$ |
(0.03 |
) |
$ |
(0.13 |
) |
|
|
|
Weighted common shares
outstanding: |
|
|
Basic |
|
11,016 |
|
|
10,669 |
|
Diluted |
|
11,016 |
|
|
10,669 |
|
|
|
|
BIOANALYTICAL SYSTEMS,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
|
December 31,2020 |
September 30,2020 |
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
1,155 |
|
|
$ |
1,406 |
|
Accounts receivable |
|
|
|
|
Trade,
net of allowance of $561 at December 31, 2020 and September 30,
2020 |
|
8,937 |
|
|
|
8,681 |
|
Unbilled
revenues and other |
|
2,448 |
|
|
|
2,142 |
|
Inventories,
net |
|
876 |
|
|
|
700 |
|
Prepaid
expenses |
|
2,546 |
|
|
|
2,371 |
|
Total current assets |
|
15,962 |
|
|
|
15,300 |
|
|
|
|
|
|
Property and equipment,
net |
|
29,316 |
|
|
|
28,729 |
|
Operating lease right-of
use-assets, net |
|
4,093 |
|
|
|
4,001 |
|
Finance lease right-to use
assets, net |
|
4,742 |
|
|
|
4,778 |
|
Goodwill |
|
4,368 |
|
|
|
4,368 |
|
Other intangible assets,
net |
|
4,104 |
|
|
|
4,261 |
|
Lease rent receivable |
|
131 |
|
|
|
75 |
|
Other assets |
|
82 |
|
|
|
81 |
|
|
|
|
|
Total assets |
$ |
62,798 |
|
|
$ |
61,593 |
|
|
|
|
|
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts
payable |
$ |
3,630 |
|
|
$ |
3,196 |
|
Restructuring liability |
|
178 |
|
|
|
168 |
|
Accrued
expenses |
|
1,599 |
|
|
|
2,688 |
|
Customer
advances |
|
13,635 |
|
|
|
11,392 |
|
Capex lines of credit |
|
3,000 |
|
|
|
2,613 |
|
Current portion on long-term
operating lease |
|
949 |
|
|
|
866 |
|
Current portion of
long-term finance lease |
|
4,693 |
|
|
|
4,728 |
|
Current portion of
long-term debt |
|
6,877 |
|
|
|
5,991 |
|
Total current liabilities |
|
34,561 |
|
|
|
31,642 |
|
Long-term operating leases,
net |
|
3,358 |
|
|
|
3,344 |
|
Long-term finance leases,
net |
|
40 |
|
|
|
44 |
|
Long-term debt, less current
portion, net of debt issuance costs |
|
17,208 |
|
|
|
18,826 |
|
Deferred tax liabilities |
|
175 |
|
|
|
141 |
|
Total liabilities |
|
55,342 |
|
|
|
53,997 |
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
Preferred shares,
authorized 1,000,000 shares, no par value: |
|
|
|
|
25 Series A shares at $1,000
stated value issued and outstanding at December 31, 2020 and at
September 30, 2020 |
|
25 |
|
|
|
25 |
|
Common shares, no
par value: |
|
|
|
|
Authorized 19,000,000 shares; 11,117,999 issued and outstanding
atDecember 31, 2020 and 10,977,675 at September 30, 2020 |
|
2,741 |
|
|
|
2,706 |
|
Additional paid-in
capital |
|
26,966 |
|
|
|
26,775 |
|
Accumulated deficit |
(22,276 |
) |
|
|
(21,910 |
) |
Total shareholders’
equity |
|
7,456 |
|
|
|
7,596 |
|
Total liabilities and
shareholders’ equity |
$ |
62,798 |
|
|
$ |
61,593 |
|
BIOANALYTICAL SYSTEMS,
INC.RECONCILIATION OF GAAP TO NON-GAAP
EARNINGS (In thousands)(Unaudited)
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
GAAP Net income (loss) |
$ |
(366 |
) |
$ |
(1,426 |
) |
|
|
|
|
|
Add back: Interest expense |
|
347 |
|
|
311 |
|
Income tax expense |
|
33 |
|
|
97 |
|
Depreciation and
amortization |
|
1,101 |
|
|
749 |
|
Stock option expense |
|
181 |
|
|
97 |
|
United Kingdom lease liability
reversal benefit |
|
— |
|
|
(60 |
) |
Acquisition and integration
costs |
|
— |
|
|
270 |
|
Other non-recurring,
third-party costs |
|
— |
|
|
443 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
1,296 |
|
$ |
481 |
|
|
|
|
|
|
Adjusted
EBITDA - Earnings before interest expense, income taxes
(benefit) expense, depreciation and amortization, stock option
expense, United Kingdom lease liability reversal benefit and
foreign currency impact on liability, non-recurring acquisition and
integration costs and other non-recurring third-party costs. |
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