BioClinica Reports 12.8 Percent Growth in Second Quarter Service Revenue

– Reiterates Full-Year Guidance –

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

August 8, 2012.  NEWTOWN, PA – 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.

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 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.

 

– FINANCIAL TABLES TO FOLLOW –

 

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

 

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

Merger & acquisition related costs

- 59 - 162

Restructuring charges

            -             -          - ___679

Non-GAAP income from operations

$_ 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 cost, 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 and marketing expenses 14 8 28 20
General and 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%

 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands) (unaudited)

  June 30, 2012 December 31, 2011
Assets:
Cash and cash equivalents $    13,087 $    12,575
Accounts receivable, net 15,823 16,353

Prepaid expenses and 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 and 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.

 

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 acquisition earn-out - 114
Changes in operating assets and liabilities:    
Decrease (increase) in accounts receivable 532 (2,781)

(Increase) decrease in prepaid expenses and other current assets

(322) 410
Decrease in other assets (66) (2)
(Decrease) increase in accounts payable (14) 2,077

Decrease in accrued expenses and 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 and 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 and 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

 

About BioClinica, Inc.
BioClinica accelerates the development of new medical therapies by delivering expertise and technologies that enhance clinical research, worldwide. Our industry-leading medical imaging services, cardiac safety, and enterprise eClinical platform bring a new level of quality and efficiency to every phase of clinical development. Our experience spans three decades and includes thousands of studies in all therapeutic areas, from design and management, through submission and post-approval. BioClinica serves more than 400 pharmaceutical, biotechnology, and device companies – including all the top 20 - through a network of offices in the U.S., Europe, and Asia.