UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X]
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the quarterly period ended June 30, 2003.
or
[ ]
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
For the transition period from
to
.
Commission File Number: 0-23357
BIOANALYTICAL SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
| INDIANA | 35-1345024 | |
|
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
|
2701 Kent Avenue West Lafayette, IN |
47906 | |
| (Address of principal executive offices) | (Zip Code) | |
| (765) 463-4527 | ||
|
(Registrant's telephone number, including area code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
As of August 19, 2003, 4,631,460 Common Shares of the registrant were outstanding.
– 1 –
PAGE
NUMBER
| PART I. | FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements (Unaudited): | ||
| Consolidated Balance Sheets as of | |||
| June 30, 2003 and September 30, 2002 | 3 | ||
| Consolidated Statements of Operations for the | |||
| Three Months and Nine Months ended June 30, 2003 and 2002 | 5 | ||
| Consolidated Statements of Cash Flows for the | |||
| Nine Months Ended June 30, 2003 and 2002 | 6 | ||
| Notes to Consolidated Financial Statements | 7 | ||
| Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
10 | |
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
15 | |
| Item 4. | Controls and Procedures | 15 | |
| PART II. | OTHER INFORMATION | ||
| Item 6. | Exhibits and Reports on Form 8-K | 16 | |
| SIGNATURES | 20 |
– 2 –
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| June 30, 2003 (Unaudited) |
September 30, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 972 | $ | 826 | ||||
| Accounts receivable | ||||||||
| Trade | 4,374 | 3,699 | ||||||
| Grants | 14 | 116 | ||||||
| Unbilled revenues and other | 456 | 739 | ||||||
| Inventories | 2,418 | 2,624 | ||||||
| Deferred income taxes | 455 | 455 | ||||||
| Refundable income taxes | 117 | 52 | ||||||
| Prepaid expenses | 365 | 283 | ||||||
| Total current assets | 9,171 | 8,794 | ||||||
| Property and equipment: | ||||||||
| Land and improvements | 486 | 496 | ||||||
| Buildings and improvements | 24,200 | 14,476 | ||||||
| Machinery and equipment | 14,237 | 13,363 | ||||||
| Office furniture and fixtures | 1,144 | 1,114 | ||||||
| Construction in process | 1,564 | 2,359 | ||||||
| Total property and equipment | 41,631 | 31,808 | ||||||
| Less accumulated depreciation | (10,719 | ) | (8,984 | ) | ||||
| Net property and equipment | 30,912 | 22,824 | ||||||
| Goodwill, less accumulated amortization of $360 | 3,766 | 884 | ||||||
| Intangible and other assets | 240 | 961 | ||||||
| Debt issue costs | 446 | --- | ||||||
| Total assets | $ | 44,535 | $ | 33,463 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,529 | $ | 2,459 | ||||
| Income taxes payable | 15 | 42 | ||||||
| Accrued expenses | 1,171 | 753 | ||||||
| Customer advances | 1,601 | 1,285 | ||||||
| Revolving line of credit | 1,620 | 3,750 | ||||||
| Current portion of capital lease obligation | 188 | 1,138 | ||||||
| Current portion of long-term debt | 428 | 278 | ||||||
| Total current liabilities | 8,552 | 9,705 | ||||||
| Capital lease obligation, less current portion | 3 | 124 | ||||||
| Construction line of credit | 1,139 | --- | ||||||
| Long-term debt, less current portion | 7,056 | 3,124 | ||||||
| Subordinated debt, long-term | 5,754 | --- | ||||||
| Deferred income taxes | 1,922 | 1,612 | ||||||
| Shareholders' equity: | ||||||||
| Preferred Shares: | ||||||||
| Authorized shares - 1,000,000 | ||||||||
| Issued and outstanding shares - none | --- | --- | ||||||
| Common Shares: | ||||||||
| Authorized shares - 19,000,000 | ||||||||
| Issued and outstanding shares - 4,831,460 and | ||||||||
| 4,578,516 | 1,168 | 1,014 | ||||||
| Additional paid-in capital | 11,472 | 10,521 | ||||||
| Retained earnings | 7,873 | 7,411 | ||||||
| Accumulated other comprehensive loss | (54 | ) | (48 | ) | ||||
| Total shareholders' equity | 20,009 | 18,898 | ||||||
| Total liabilities and shareholders' equity | $ | 44,535 | $ | 33,463 | ||||
See accompanying notes to consolidated financial statements.
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in thousands)
(Unaudited)
| Preferred Shares |
Common Shares |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders Equity | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at September 30, 2002 | $ | --- | $ | 1,014 | $ | 10,521 | $ | 7,411 | $ | (48 | ) | $ | 18,898 | ||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||
| Net income | --- | --- | --- | 275 | --- | 275 | |||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Foreign currency | |||||||||||||||||||||||
| translation adjustments | --- | --- | --- | --- | (1 | ) | (1 | ) | |||||||||||||||
| Total comprehensive income | 274 | ||||||||||||||||||||||
| Exercise of stock options | --- | 3 | 16 | --- | --- | 19 | |||||||||||||||||
| Balance at December 31, 2002 | --- | 1,017 | 10,537 | 7,686 | (49 | ) | 19,191 | ||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||
| Net income | --- | --- | --- | (166 | ) | --- | (167 | ) | |||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Foreign currency | |||||||||||||||||||||||
| translation adjustments | --- | --- | --- | --- | 1 | 1 | |||||||||||||||||
| Total comprehensive income | (166 | ) | |||||||||||||||||||||
| Exercise of stock options | --- | 3 | 17 | --- | --- | 20 | |||||||||||||||||
| Balance at March 31, 2003 | --- | 1,020 | 10,554 | 7,519 | (48 | ) | 19,045 | ||||||||||||||||
| Total comprehensive income | --- | --- | |||||||||||||||||||||
| Net income | --- | --- | --- | 334 | --- | 354 | |||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Foreign currency | |||||||||||||||||||||||
| translation adjustments | (6 | ) | (6 | ) | |||||||||||||||||||
| Total comprehensive income | 349 | ||||||||||||||||||||||
| Issuance of new shares | --- | 248 | 918 | --- | --- | 1,166 | |||||||||||||||||
| Balance at June 30, 2003 | --- | 1,268 | 11,472 | 7,873 | (54 | ) | 20,559 | ||||||||||||||||
See accompanying notes
.
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended June 30, 2003 |
Three Months Ended June 30, 2002 |
Nine Months Ended June 30, 2003 |
Nine Months Ended June 30, 2002 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Service revenue | $ | 5,643 | $ | 4,086 | $ | 14,739 | $ | 11,902 | ||||||
| Product revenue | 2,231 | 2,490 | 7,059 | 8,082 | ||||||||||
| Total revenue | 7,874 | 6,576 | 21,798 | 19,984 | ||||||||||
| Cost of service revenue | 3,864 | 3,050 | 10,840 | 8,463 | ||||||||||
| Cost of product revenue | 858 | 1,034 | 2,864 | 3,326 | ||||||||||
| Total cost of revenue | 4,722 | 4,084 | 13,704 | 11,789 | ||||||||||
| Gross profit | 3,152 | 2,492 | 8,094 | 8,195 | ||||||||||
| Operating expenses: | ||||||||||||||
| Selling | 557 | 621 | 2,199 | 2,275 | ||||||||||
| Research and development | 305 | 393 | 996 | 1,105 | ||||||||||
| General and administrative | 1,436 | 1,170 | 3,723 | 3,275 | ||||||||||
| Total operating expenses | 2,298 | 2,184 | 6,918 | 6,655 | ||||||||||
| Operating income | 854 | 308 | 1,176 | 1,540 | ||||||||||
| Interest income | 1 | --- | 3 | 2 | ||||||||||
| Interest expense | (148 | ) | (62 | ) | (396 | ) | (177 | ) | ||||||
| Other income | 20 | 13 | 79 | 65 | ||||||||||
| Gain (loss) on sale of property and equipment | 49 | - | 81 | (13 | ) | |||||||||
| Income before income taxes | 776 | 259 | 943 | 1,417 | ||||||||||
| Income taxes (benefit) | 422 | (22 | ) | 481 | 370 | |||||||||
| Net income | $ | 354 | $ | 281 | $ | 462 | $ | 1,047 | ||||||
| Basic and diluted net income per common share and | ||||||||||||||
| common equivalent share | $ | .08 | $ | .06 | $ | .10 | $ | .23 | ||||||
| Basic weighted average common shares outstanding | ||||||||||||||
| 4,605,118 | 4,578,261 | 4,594,993 | 4,575,146 | |||||||||||
| Diluted weighted average common and common | ||||||||||||||
| equivalent shares outstanding | 4,608,541 | 4,614,622 | 4,615,530 | 4,620,150 | ||||||||||
See accompanying notes to consolidated financial statements.
BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
| Nine Months Ended June 30, 2003 |
Nine Months Ended June 30, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| Operating activities: | ||||||||
| Net income | $ | 462 | $ | 1,047 | ||||
| Adjustments to reconcile net income to net cash (used) provided by | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | 1,783 | 1,478 | ||||||
| Loss (gain) on sale of property and equipment | (81 | ) | 13 | |||||
| Deferred income taxes | 242 | 293 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 605 | (257 | ) | |||||
| Inventories | ||||||||