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BioClinica Reports 15.7% Growth in Service Revenue and 26.1% Increase in Non-GAAP Operating Income for Third Quarter

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

November 8, 2012

BioClinica®, Inc. (NASDAQ: BIOC), a leading global provider of clinical trial management solutions, today announced its financial results for the third quarter and nine months ended September 30, 2012.

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

  • Service revenues increased 15.7% to a record $19.2 million as compared with $16.6 million for the same period 2011.
  • GAAP operating income was $1.1 million including a restructuring charge of $839,000 as compared with $479,000 including a restructuring charge of $1.0 million for the same period 2011.   
  • GAAP net income was $542,000, or $0.03 per fully diluted share, as compared with $358,000, or $0.02 per fully diluted share in the year-ago quarter.
  • Non-GAAP operating income increased 26.1% to $2.6 million as compared with $2.0 million for the same period 2011. 
  • Non-GAAP net income increased 10.3% to $1.5 million compared with $1.4 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 nine months ended September 30, 2012 include:

  • Service revenues increased 14.5% to $56.8 million as compared with $49.7 million for the same period 2011.
  • GAAP operating income was $4.4 million including a restructuring charge of $839,000 as compared with $2.5 million including a restructuring charge of $1.7 million for the same period 2011.   
  • GAAP net income was $2.6 million, or $0.16 per fully diluted share as compared with $1.6 million, or $0.10 per fully diluted share for the same period 2011.
  • Non-GAAP operating income increased 19.1% to $7.0 million as compared with $5.9 million for the same period 2011. 
  • Non-GAAP net income increased 12.7% to $4.3 million compared with $3.8 million; this equated to $0.26 per fully diluted share, as compared with $0.23 per fully diluted share in the same period 2011.

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, "We are extremely pleased with our third quarter operating results, which included strong growth in service revenue and non-GAAP operating income and margin resulting from increased demand for both our eClinical and medical imaging offerings."

"We are excited to have had several significant contract wins this quarter, attracting some of the largest and most discerning global pharmaceutical companies to our roster of clients.  Sanofi's selection of BioClinica's OnPoint as its enterprise CTMS for all of its global clinical trials underscores the strength, scalability and integrity of our technology, the importance of our relationship with Microsoft, and the clear advantages of SharePoint. Additionally, Sanofi has selected us as a preferred provider of medical imaging solutions."  He continued, "Other agreements such as those with Isis Pharmaceuticals and Luitpold Pharmaceuticals for BioClinica's Express EDC also reflect the growing acceptance and recognition of our transformational technology and superior service across the industry. We were also pleased to have recently announced TauRx's selection of both our Trident IWR/IVR and medical imaging solutions for its upcoming Phase III clinical trial, further establishing our position as a leading global player.  Sanofi and TauRx are representative of many of our clients, from small to major global pharmaceutical and biotech companies, that are selecting us for both our eClinical and medical imaging products and services."

Mr. Weinstein continued, "In order to further strengthen our medical imaging solutions offering, we realigned our global operational structure along therapeutic lines during the third quarter.  These changes were implemented and completed during the quarter, and resulted in a restructuring charge, primarily comprised of severance and related costs, of $839,000, or $0.03 per diluted share, all of which was incurred in the quarter.  As a result of this restructuring, we expect to realize $1.0 million of annualized operating savings, commencing immediately."

"Our current backlog of $114.1 million compares favorably with last quarter's $110.2 million.  Our backlog and strong proposal pipeline position us well for future growth.  We are reiterating our full-year 2012 service revenue to be in the range of $73 to $77 million, and our full-year non-GAAP EPS to be in the range of $0.36 to $0.42 per fully diluted share.  As a result of the $0.03 per share restructuring charge, we are revising our full-year GAAP EPS to be in the range of $0.23 to $0.29 per fully diluted share as compared to previous GAAP EPS guidance of $0.26 to $0.32 per diluted share," concluded Mr. Weinstein.

Conference Call Information
Management of BioClinica, Inc. will host a conference call today at 11:00 a.m. EST.  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, Conference ID #401423. 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 companies and 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 Nine Months Ended

 9/30/129/30/119/30/129/30/11
 
Service revenues19,22716,62356,83549,658
Reimbursement revenues     5,701     4,847   13,836   11,887
Total revenues$ 24,928$ 21,470$ 70,671$ 61,545
 
Costs and expenses:  
Cost of service revenues11,96810,43435,24831,432
Cost of reimbursement revenues5,7014,84713,83611,887
Sales & marketing expenses2,4892,0817,8486,324
General & admin. expenses2,6972,4348,0817,027
Amortization of intangible assets related to acquisitions138155429467
Mergers & acquisition related costs---162
Restructuring costs       839     1,040       839     1,719
Total cost and expenses   23,832   20,991  66,281   59,018
 
Operating Income1,0964794,3902,527
Interest income (expense) – net            (34)          (12)         (67)          (26)
Income before income tax1,0624674,3232,501
Income tax provision        520        109    1,754     868
Net income$ ___542$ __358$ _2,569$ _1,633
 
Basic earnings per share$     0.03$     0.02$     0.16$     0.10
Weighted average number of shares - basic15,59615,64015,62615,645
Diluted earnings per share$      0.03$     0.02$     0.16$     0.10

Weighted average number of shares – diluted

16,46116,38316,46716,515

 

BIOCLINICA, INC. AND SUBSIDIARIES

GAAP to non-GAAP Reconciliation (1)

(In thousands, except per share data) (unaudited)

 

For the Three Months Ended

For the Nine Months Ended

 9/30/129/30/119/30/129/30/11
 
GAAP operating income1,0964794,3902,527
Stock-based compensation*4773491,3671,021

Amortization of intangible assets related to acquisitions

138155429467

Merger & acquisition related costs

---162

Restructuring charges

        839     1,040        839__1,719

Non-GAAP operating income

$_ 2,550$_ 2,023$_ 7,025$_ 5,896
 
GAAP net income5423582,5691,633
Stock-based compensation, net of taxes315227902664

Amortization of intangible assets related to acquisitions, net of taxes

91101283304
Mergers & acquisition related cost, net of taxes---105
Restructuring charges, net of taxes       554        676        554     1,117
Non-GAAP net income  _ 1,502  _ 1,362  _4,308   _3,823
GAAP diluted earnings per share$     0.03$     0.02$     0.16$     0.10
Non-GAAP diluted earnings per share$     0.09$     0.08$     0.26$     0.23
 
*Stock based compensation included in total costs and expenses is as follows:
Cost of service revenues137120406351
Sales and marketing expenses13114130
General and admin. expenses_____327_____218_____920_____640
 _____477_____349____1,367____1,021

 

    

(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 nine months ended September 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.

 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands) (unaudited)

 September 30, 2012December 31, 2011
Assets:
Cash and cash equivalents$    13,184$    12,575
Accounts receivable, net18,95016,353

Prepaid expenses and other current assets

1,8861,743
Deferred income taxes        5,522       5,637
Total current assets39,54236,308
 
Property & equipment, net19,77116,186
Intangibles, net1,3781,808
Goodwill34,30234,302
Deferred income taxes431,021
Other assets____765____796
Total assets$   95,801$   90,421
Liabilities:
Accounts payable$    2,320$    2,422

Accrued expenses and other current liabilities

5,7605,944
Deferred revenue14,17913,438
Deferred income tax-526

Current maturities of capital lease obligations

1,006423

Current liability for acquisition earn-out

___2,000___2,000
Total current liabilities25,26524,753
 
Long-term capital lease obligations3,5221,535

Deferred income taxes

4,6894,499

Other liability

___1,453___1,574
Total liabilities34,92932,361
 
Stockholders' Equity

Common stock

44
Treasury stock (3)(2,440)(1,126)
Additional paid-in capital51,15149,564
Retained earnings12,1599,590

Accumulated other comprehensive income

_____(2)_____28
Total stockholders' equity     ___60,872         __58,060

Total liabilities & stockholders' equity

$   95,801$   90,421

(3) During the nine months ended September 30, 2012, the Company repurchased 243,200 shares of BioClinica stock at an average price of $5.40 per share, as part of its stock repurchase program. At September 30, 2012, there was $1.5 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 Nine Months Ended
 9/30/129/30/11

Cash flows from operating activities: Net income

2,5691,633

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

  
Depreciation and amortization3,7673,266
Provision for deferred income taxes769829
Excess tax benefit related to stock options(11)-
Bad debt provision (recovery)32(15)

Stock based compensation

1,3671,019
Gain on sale/leaseback12444
Accretion of acquisition earn-out-114
Changes in operating assets and liabilities:  
Increase in accounts receivable(2,628)(1,603)

Increase in prepaid expenses and other current assets

(166)(89)
Decrease (increase) in other assets32(42)
(Decrease) increase in accounts payable(123)113

Decrease in accrued expenses and other current liabilities

(337)(89)
(Increase) decrease in deferred revenue742(19)
(Decrease) increase in other liabilities             (123)            742

Net cash provided by operating activities

$        6,014$         5,903
 
Cash flows from investing activities:  
Purchases of property and equipment(3,305)(1,352)
Capitalized software development costs(3,731)(2,843)
Net cash used in investing activities$       (7,036)$       (4,195)
 
Cash flows from financing activities:  

Proceeds from sale/leaseback

3,037918

Payments under capital lease obligations

(466)(157)
Purchase of treasure stock(1,314)(784)

Excess tax benefit related to stock options

11-
Proceeds from exercise of stock options_____367_____138
Net cash used provided by financing activities$      1,635$         115
 
Effect of exchange rate changes on cash(4)26
 
Net increase in cash and cash equivalents$    609$    1,849
Cash and cash equivalents at beginning of period$      12,575$      10,443

Cash and cash equivalents at end of period

$      13,184$      12,292

 

About Bioclinica

Bioclinica is a global life science provider that utilizes science and technology to bring clarity to clinical trials – helping companies to develop new life-improving therapies more efficiently and safely. Successful clinical trials require the ability to see key details and uncover hidden insights, and Bioclinica's hundreds of experienced scientific, medical, and domain experts bring unmatched insight across the development lifecycle, from the initial protocol to post-approval. The company's cloud-based offerings include medical imaging and cardiac safety services; clinical adjudication; randomization and trial supply management and optimization; electronic and eSource data capture; site and patient payments and budget forecasting; pharmacovigilance; trial management; and risk-based monitoring solutions. A true multifaceted partner to trial sponsors and Contract Research Organizations (CROs), Bioclinica offers a global network of research sites and patient recruitment services to provide committed, detail-focused service through all stages of drug development. The company's thousands of employees serve more than 400 pharmaceutical, biotechnology and device organizations – including all the top 20 biopharmaceutical companies and leading CROs – through a network of offices in the U.S., Europe, and Asia.

Learn more about Bioclinica and our Clinical Adjudication and other offerings at www.Bioclinica.com and in the Bioclinica Blog. Follow the latest company news and happenings on LinkedIn and Twitter.

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Successful clinical trials require the ability to see key details and uncover hidden insights. Bioclinica utilizes science and technology to bring clarity to clinical trials, helping companies to develop new life-improving therapies more efficiently and safely.

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