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| 8-K - CURRENT REPORT - Pharma-Bio Serv, Inc. | pbsv_8k.htm |
Exhibit 99.1
Pharma-Bio Serv Announces Results for the Quarter Ended July 31,
2016
DORADO, PUERTO RICO / ACCESSWIRE / September 14, 2016 /
Pharma-Bio Serv, Inc. (Pharma-Bio Serv or the Company) (OTCQB:
PBSV), a compliance, project management and technology transfer
support consulting firm, that provides services to the
pharmaceutical, biotechnology, chemical, medical device, cosmetic,
food and allied products industries, today announced net revenues
for the three and nine months ended July 31, 2016 were $4.9 million
and $14.9 million, respectively, a decrease of approximately $1.3
million and $2.6 million, or 21.3% and 14.9%, respectively, when
compared to the same periods last year.
The
decline for the three months ended July 31, 2016, when compared to
the same period last year, is mainly attributable to a decline in
projects in the Puerto Rico consulting market of $1.0 million, of
which $0.2 million is attributable to projects in Latin America
which were managed from Puerto Rico, plus decreases in the United
States and Europe consulting markets of $0.3 million and $0.1
million, respectively, partially offset by a gain in the Puerto
Rico Lab operation of approximately $0.1 million. Other Company
divisions sustained minor revenue gains/losses or remained
constant, when compared to the same period last year. The decline
for the nine months ended in July 31, 2016, when compared to the
same period last year, is mainly attributable to a $1.9 million
decrease in the Puerto Rico consulting market, of which $1.1
million is attributable to projects in Latin America which were
managed from Puerto Rico, plus decreases in the United States and
Europe consulting markets for $1.0 million and $0.3 million,
respectively, partially offset by a gain in the Puerto Rico Lab
operation and project revenue from the Brazil consulting market of
approximately $0.6 million and $0.1 million, respectively. Other
Company divisions had minor revenue gains/losses or remained
constant.
Selling,
general and administrative expenses for the three and nine months
ended July 31, 2016 were approximately $1.5 and $4.3 million,
respectively. For the three months ended July 31, 2016 the Company
incurred $0.1 million for the planned business development
positions, however, these additional costs were offset by savings
on various expenses and maintained total expenses constant. The
nine months ended July 31, 2016 reflects an increase of $0.1
million when compared to the same period last year. The increase is
attributable to $0.2 million incurred for the planned business
development positions, partially offset by savings on various
expenses.
During
the nine month period ended July 31, 2016, the Company determined
that an other than temporary impairment of $55,000 occurred for an
available for sale security. Accordingly, the credit loss of
$55,000 was recognized on earnings.
For the
three months ended July 31, 2016, the Company sustained a net loss
of approximately $130,000, while for the nine months ended July 31,
2016, the Company reported net income of approximately $257,000, a
decrease of $0.6 and $0.8 million, respectively, when compared with
the same periods last year. Our net income variance is mainly
attributable to the decline in revenue, continued investment on
business development and operational support expenses, recorded
other than temporary impairment on available for sale securities,
and the effect of the effective income tax rates (including Puerto
Rico favorable tax grants) over income before tax.
For the
three months ended July 31, 2016, losses per common share for both,
basic and diluted were $0.006, a decrease of $0.026 and $0.025,
respectively, when compared to the same period last year. The
decrease is mainly attributable to the net loss for the three
months ended July 31, 2016, as compared to the net income attained
for the same period last year.
For the
nine months ended July 31, 2016, earnings per common share for
both, basic and diluted were $0.011, a decrease of $0.037 and
$0.036 per share, respectively, when compared to the same period
last year. The variance is mainly attributable to the decrease in
net income for the nine months ended July 31, 2016, as compared to
the same period last year.
“We
remain steadfast in our approach and resolute in our vision to
continue our transformative efforts to grow our business across a
broader geographical and services footprint. As such, we continue
to selectively invest in additional human capital, new markets, and
Lab facilities and equipment while refining our model to achieve
our future growth objectives,” said Victor Sanchez, CEO of
Pharma-Bio Serv.
About Pharma-Bio Serv, Inc.
Pharma-Bio
Serv is a compliance, project management and technology transfer
support consulting firm, headquartered in Puerto Rico, with
operations in the U.S., Ireland, Spain and Brazil. Pharma-Bio
Serv's core business is FDA and other international regulatory
compliance agency related services, with integrated portfolio
services including microbiological, chemical testing, and
calibration services for clients in the Pharmaceutical,
Biotechnology, Chemical, Medical Device, Cosmetic, Food and Allied
Products industries. The Company's services also include "Pharma
Serv Academy," a division that provides technical and regulatory
standards seminars/training conducted by industry experts. The
Company's global team includes leading engineering and life science
professionals, quality assurance managers and
directors.
Forward Looking Statements
This
news release contains "forward-looking statements" within the
meaning of the U.S. federal securities laws, which statements may
include information regarding the plans, intentions, expectations,
future financial performance, or future operating performance of
Pharma-Bio Serv. Forward-looking statements are based on the
expectations, estimates, or projections of management as of the
date of this news release. Although Pharma-Bio Serv's management
believes these expectations, estimates, or projections to be
reasonable as of the date of this news release, forward-looking
statements are inherently subject to significant business risks,
economic and competitive uncertainties, or other contingencies,
which could cause its actual results or performance to differ
materially from what may be expressed or implied in the
forward-looking statements. There can be no assurance that the
processes being undertaken by Pharma-Bio Serv will result in growth
through business development or mergers and acquisitions. Important
factors that could cause Pharma-Bio Serv's actual results or
performance to differ materially from the forward-looking
statements include those set forth in the "Risk Factors" section of
Pharma-Bio Serv's Annual Report on Form 10-K for the year ended
October 31, 2015, and in its other filings with the Securities and
Exchange Commission, which filings are available on www.sec.gov.
Pharma-Bio Serv disclaims any intention or obligation to update or
revise any forward-looking statements to reflect subsequent events
and circumstances, except to the extent required by applicable
law.
Investor
Relations Contact:
Scott
Gordon
President
CorProminence
LLC
scottg@corprominence.com
631 703
4900