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8-K - 8-K - BIOCLINICA INCa12-17910_18k.htm

Exhibit 99.1

 

 

Company Contact - Jim Dorsey

 

BioClinica, Inc.

 

267-757-3040

 

 

GRAPHIC

Trade Media — Rachel Summers

Diccicco Battista Communications

484-342-3600

 

 

 

Investor Contact - Michael Porter

 

Financial Media - Bill Gordon

 

Porter, LeVay & Rose, Inc.

 

212-564-4700

 

FOR IMMEDIATE RELEASE

 

BIOCLINICA REPORTS 12.8% GROWTH IN SECOND QUARTER SERVICE REVENUE

-Reiterates Full-Year Guidance-

Conference Call Today at 11:00 A.M. EDT —

 

NEWTOWN, PA, August 8, 2012 — BioClinica®, Inc. (NASDAQ: BIOC), a leading global provider of clinical trial management solutions, today announced its financial results for the second quarter and six months ended June 30, 2012.

 

Financial highlights for the quarter ended June 30, 2012 include:

 

·                  Service revenues increased 12.8% to $19.1 million as compared with $16.9 million for the same period 2011.

 

·                  GAAP operating income was $1.7 million as compared with $1.5 million for the same period 2011.

 

·                  GAAP net income was $1.0 million, or $0.06 per fully diluted share as compared with $924,000, or $0.06 per fully diluted share in the year-ago quarter.

 

·                  Non-GAAP operating income increased 14.3% to $2.3 million as compared with $2.0 million for the same period 2011.

 

·                  Non-GAAP net income increased 11.4% to $1.4 million compared with $1.3 million; this equated to $0.09 per fully diluted share, as compared with $0.08 per fully diluted share in the same period 2011.

 

Financial highlights for the six months ended June 30, 2012 include:

 

·                  Service revenues increased 13.8% to $37.6 million as compared with $33.0 million for the same period 2011.

 

·                  GAAP operating income was $3.3 million as compared with $2.0 million including a restructuring charge of $679,000 for the same period 2011.

 

·                  GAAP net income was $2.0 million, or $0.12 per fully diluted share as compared with $1.3 million, or $0.08 per fully diluted share. The first half of 2011 results included a restructuring charge of $679,000 or $0.03 per share.

 

·                  Non-GAAP operating income increased 15.5% to $4.5 million as compared with $3.9 million for the same period 2011.

 

·                  Non-GAAP net income increased 14.1% to $2.8 million compared with $2.4 million; this equated to $0.17 per fully diluted share, as compared with $0.15 per fully diluted share in the same period 2011.

 

-more-

 



 

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, “Both our eClinical and medical imaging solutions contributed to our strong second quarter revenue growth.  We continue to add new customers across our product categories, many of whom contracted with us for multiple clinical trial solutions. Our growth is coming from new customers as well as from further penetration of our existing customers. Currently 40% of our eClinical clients are using more than one of our solutions.”

 

He continued, “Strategic partnerships remain an important component of our business model, helping to transform our technology products and service offerings into comprehensive clinical trial solutions.  These relationships extend our competitive advantage, while providing clients with innovative technology and clear financial benefits. As an example, in June we were awarded Microsoft’s prestigious Life Sciences Innovation Award for the “Monitor Visit Report” capability of our OnPoint CTMS developed in collaboration with C.R. Bard.  This solution makes it easier for clinical site monitors to enter essential study information, and is an example of how our relationship with Microsoft creates cost-saving innovations that enable drugs to get to market efficiently and cost-effectively.”

 

Mr. Weinstein added, “During the second quarter, we experienced strong year-over-year growth in service revenues reflecting increased customer acceptance of our integrated eClinical suite, including our Trident IWR, OnPoint CTMS, Express EDC and Optimizer product offerings.  Combined with continued strong demand for our medical imaging solutions, this led to a record quarter of service revenues of $19.1 million. As our overall business improves, so has our profitability, with increases in both sequential and year-over-year GAAP and non-GAAP operating margin. The growth in business in each of these products demonstrates our successful acquisition strategy, as we acquired companies with innovative technologies, integrated the operations, re-branded the products, and increased the customer base.”

 

“Our current backlog  of $110.2 million  is lower than last year’s second quarter backlog of $112.5 million and this year’s first quarter backlog of $125.8 million because  of the cancellation of a large drug program due to lack of efficacy.  This cancelled program for which we were providing medical imaging solutions was long term in nature and had a remaining backlog of approximately $17 million and a  remaining duration of seven years. Even with the cancellation, the $110.2 million of backlog combined with our strong proposal pipeline positions us well to support our future growth.  We are reiterating our full-year 2012 service revenue to be in the range of $73 to $77 million,  our full-year GAAP EPS to be in the range of $0.26 to $0.32 per fully diluted share and our full-year non-GAAP EPS to be in the range of $0.36 to $0.42 per fully diluted share,” concluded Mr. Weinstein.

 

Conference Call Information

 

Management of BioClinica, Inc. will host a conference call today at 11:00 a.m. EDT.  Those who wish to participate in the conference call may telephone 877-869-3847 from the U.S.; international callers may telephone 201-689-8261, approximately 15 minutes before the call.  There will be a simultaneous webcast on www.bioclinica.com.  A digital replay will be available by telephone approximately two hours after the call’s completion for two weeks, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, Acct # 360; Replay ID # 397185. The replay will also be on the website under the “Investors” section at www.bioclinica.com for two weeks.

 

Non-GAAP Financial Information

 

BioClinica is providing information on 2012 and 2011 non-GAAP income from operations, non-GAAP net income and non-GAAP diluted earnings per share that exclude certain items, as well as the related income tax effects, because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. The non-GAAP information excludes, certain of which are recurring in nature, the impact of stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges and merger and acquisition costs. We believe the non-GAAP information provides supplemental information useful to investors in comparing our results of operations on a consistent basis from period to period. Management uses these non-GAAP measures in assessing our core operating performance and evaluating our ongoing business operations. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by

 

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other companies. Therefore, the information may not necessarily be comparable to that of other companiesand should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.  Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP results, which are included below in this press release.

 

About BioClinica, Inc.

 

BioClinica, Inc. is a leading global provider of integrated, technology-enhanced clinical trial management solutions. BioClinica supports pharmaceutical and medical device innovation with imaging core lab, internet image transport, electronic data capture, interactive voice and web response, clinical trial management and clinical supply chain design and optimization solutions. BioClinica solutions maximize efficiency and manageability throughout all phases of the clinical trial process. With over 20 years of experience and more than 2,000 successful trials to date, BioClinica has supported the clinical development of many new medicines from early phase trials through final approval. BioClinica operates state-of-the-art, regulatory-body-compliant imaging core labs on two continents, and supports worldwide eClinical and data management services from offices in the United States, Europe and Asia. For more information, please visit www.bioclinica.com

 

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.  In particular, the Company’s statements regarding trends in the marketplace and potential future results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the Company’s ability to convert backlog into revenue as a result of many factors, including but not limited to, contract cancelations; the consummation and the successful integration of current and proposed acquisitions, the timing of projects due to the variability in size, scope and duration of projects, estimates and guidance made by management with respect to the Company’s financial results, backlog, critical accounting policies, regulatory delays, clinical study results which lead to reductions or cancellations of projects, and other factors, including general economic conditions and regulatory developments, not within the Company’s control.  The factors discussed herein and expressed from time to time in the Company’s filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements.  The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstance. You should review the Company’s filings, especially risk factors contained in the Form 10-K and the recent Form 10-Q.

 

- FINANCIAL TABLES TO FOLLOW –

 

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BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/12

 

6/30/11

 

6/30/12

 

6/30/11

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

19,057

 

16,891

 

37,608

 

33,035

 

Reimbursement revenues

 

4,001

 

3,519

 

8,135

 

7,040

 

Total revenues

 

$

23,058

 

$

20,410

 

$

45,743

 

$

40,075

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

11,682

 

10,441

 

23,280

 

20,998

 

Cost of reimbursement revenues

 

4,001

 

3,519

 

8,135

 

7,040

 

Sales & marketing expenses

 

2,745

 

2,383

 

5,359

 

4,243

 

General & admin. expenses

 

2,782

 

2,371

 

5,384

 

4,593

 

Amortization of intangible assets related to acquisitions

 

138

 

156

 

291

 

312

 

Mergers & acquisition related costs

 

 

59

 

 

162

 

Restructuring costs

 

 

 

 

679

 

Total cost and expenses

 

21,348

 

18,929

 

42,449

 

38,027

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,710

 

1,481

 

3,294

 

2,048

 

Interest income (expense) - net

 

(20

)

(7

)

(33

)

(14

)

Income before income tax

 

1,690

 

1,474

 

3,261

 

2,034

 

Income tax provision

 

657

 

550

 

1,234

 

759

 

Net income

 

$

1,033

 

$

924

 

$

2,027

 

$

1,275

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.07

 

$

0.06

 

$

0.13

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares - basic

 

15,640

 

15,647

 

15,670

 

15,649

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.06

 

$

0.06

 

$

0.12

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares - diluted

 

16,552

 

16,491

 

16,596

 

16,566

 

 

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BIOCLINICA, INC. AND SUBSIDIARIES

GAAP to non-GAAP Reconciliation (1)

(in thousands, except per share data)

(unaudited)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/12

 

6/30/11

 

6/30/12

 

6/30/11

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income

 

1,710

 

1,481

 

3,294

 

2,048

 

Stock-based compensation *

 

466

 

329

 

890

 

672

 

Amortization of intangible assets related to acquisitions

 

138

 

156

 

291

 

312

 

Mergers & acquisition related costs

 

 

59

 

 

162

 

Restructuring charges

 

 

 

 

679

 

Non-GAAP operating income

 

$

2,314

 

$

2,025

 

$

4,475

 

$

3,873

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

1,033

 

924

 

2,027

 

1,275

 

Stock-based compensation, net of taxes

 

290

 

206

 

553

 

421

 

Amortization of intangible assets related to acquisitions, net of taxes

 

86

 

98

 

181

 

196

 

Mergers & acquisition related costs, net of taxes

 

 

37

 

 

102

 

Restructuring charges, net of taxes

 

 

 

 

426

 

Non-GAAP net income (2)

 

$

1,409

 

$

1,265

 

$

2,761

 

$

2,420

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

0.06

 

$

0.06

 

$

0.12

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

$

0.09

 

$

0.08

 

$

0.17

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

* Stock based compensation included in total costs and expenses is as follows:

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

135

 

107

 

269

 

230

 

Sales & marketing expenses

 

14

 

8

 

28

 

20

 

General & admin. expenses

 

317

 

214

 

593

 

422

 

 

 

466

 

329

 

890

 

672

 

 


(1)       This table presents a reconciliation of GAAP to non-GAAP income from operations, net income and diluted earnings per share for the three and six months ended June 30, 2012 and 2011.  The non-GAAP information excludes the impact of stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges and merger and acquisition costs.

 

(2)       The effective tax rate for fiscal 2012 is 38.9%

 

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BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

June 30, 2012

 

December 31, 2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

13,087

 

$

12,575

 

Accounts receivable, net

 

15,823

 

16,353

 

Prepaid expenses & other current assets

 

2,053

 

1,743

 

Deferred income taxes

 

5,460

 

5,637

 

Total current assets

 

36,423

 

36,308

 

 

 

 

 

 

 

Property & equipment, net

 

18,515

 

16,186

 

Intangibles, net

 

1,517

 

1,808

 

Goodwill

 

34,302

 

34,302

 

Deferred income taxes

 

6

 

1,021

 

Other assets

 

864

 

796

 

 

 

 

 

 

 

Total assets

 

$

91,627

 

$

90,421

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,564

 

$

2,422

 

Accrued expenses & other current liabilities

 

4,349

 

5,944

 

Deferred revenue

 

12,339

 

13,438

 

Deferred income tax

 

 

526

 

Current maturities of capital lease obligations

 

774

 

423

 

Current liability for acquisition earn-out

 

2,000

 

2,000

 

Total current liabilities

 

23,026

 

24,753

 

 

 

 

 

 

 

Long-term capital lease obligations

 

2,677

 

1,535

 

Deferred income taxes

 

4,333

 

4,499

 

Other liability

 

1,465

 

1,574

 

Total liabilities

 

31,501

 

32,361

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

4

 

4

 

Treasury stock (3)

 

(2,103

)

(1,126

)

Additional paid-in-capital

 

50,620

 

49,564

 

Retained earnings

 

11,617

 

9,590

 

Accumulated other comprehensive income

 

(12

)

28

 

Total stockholders’ equity

 

60,126

 

58,060

 

 

 

 

 

 

 

Total liabilities & stockholders’ equity

 

$

91,627

 

$

90,421

 

 


(3) During the first half of 2012, the company repurchased 181,400 shares of BioClinica stock at an average price of $5.38 per share, as part of its stock repurchase program.  At June 30, 2012, there was $1.9 million of funds remaining that may yet be used to repurchase shares under the plan that authorizes purchases up to $4 million.

 

6



 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the Six Months Ended

 

 

 

6/30/12

 

6/30/11

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

2,027

 

1,275

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

2,399

 

2,154

 

Provision for deferred income taxes

 

446

 

558

 

Excess tax benefit related to stock options

 

53

 

(19

)

Bad debt recovery

 

(2

)

(15

)

Stock based compensation

 

890

 

672

 

Gain on sale/leaseback

 

73

 

 

Accretion of acquistion earn-out

 

 

114

 

Changes in operating assets and liabilities:

 

 

 

 

 

Decrease (increase) in accounts receivable

 

532

 

(2,781

)

(Increase) decrease in prepaid expenses & other current assets

 

(322

)

410

 

Increase in other assets

 

(66

)

(2

)

(Decrease) increase in accounts payable

 

(14

)

2,077

 

Decrease in accrued expenses & other current liabilities

 

(1,671

)

(1,146

)

(Decrease) increase in deferred revenue

 

(1,099

)

133

 

(Decrease) increase in other liabilities

 

(110

)

234

 

Net cash provided by operating activities

 

$

3,136

 

$

3,664

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property & equipment

 

(959

)

(738

)

Capitalized software development costs

 

(2,428

)

(1,908

)

Net cash used in investing activities

 

$

(3,387

)

$

(2,646

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Payments under capital lease obligations

 

(240

)

(88

)

Proceeds from sale/leaseback

 

1,734

 

514

 

Purchase of treasure stock

 

(977

)

(538

)

Excess tax benefit related to stock options

 

(53

)

19

 

Proceeds from exercise of stock options

 

317

 

87

 

Net cash used provided by (used in) financing activities

 

$

781

 

$

(6

)

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

(18

)

64

 

 

 

 

 

 

 

Net increase in cash & cash equivalents

 

$

512

 

$

1,076

 

Cash and cash equivalents at beginning of period

 

$

12,575

 

10,443

 

Cash and cash equivalents at end of period

 

$

13,087

 

$

11,519

 

 

####

 

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