UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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OR |
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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
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BIOANALYTICAL SYSTEMS, INC. (Exact name of the registrant as specified in its charter) | |
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INDIANA |
35-1345024 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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2701 KENT AVENUE |
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WEST LAFAYETTE, IN |
47906 |
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(Address of principal executive offices) |
(Zip code) |
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(765) 463-4527 (Registrant's telephone number, including area code) | |
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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.
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NO |
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Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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NO |
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As of April 30, 2005, 4,870,502 common shares of the registrant were outstanding.
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PAGE |
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PART I |
FINANCIAL INFORMATION |
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Item 1 |
Condensed Consolidated Financial Statements (Unaudited): |
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Condensed Consolidated Balance Sheets as of March 31, 2005 and September 30, 2004 |
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Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended March 31, 2005 and 2004 |
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Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2005 and 2004 |
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Notes to Condensed Consolidated Financial Statements |
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Item 2 |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3 |
Quantitative and Qualitative Disclosures About Market Risk |
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Item 4 |
Controls and Procedures |
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PART II |
OTHER INFORMATION |
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Item 4 |
Submission of Matters to Vote of Security Holders |
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Item 6 |
Exhibits |
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SIGNATURES |
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| (Unaudited) March 31, 2005 |
September 30, 2004 | |||||||
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| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,315 | $ | 773 | ||||
| Accounts receivable: | ||||||||
| Trade | 6,740 | 5,352 | ||||||
| Unbilled revenues and other | 1,360 | 1,086 | ||||||
| Inventories | 2,259 | 1,570 | ||||||
| Deferred income taxes | 469 | 469 | ||||||
| Refundable income taxes | 740 | 603 | ||||||
| Prepaid expenses | 668 | 503 | ||||||
| Total current assets | 13,551 | 10,356 | ||||||
| Property and equipment, net | 26,708 | 31,901 | ||||||
| Goodwill | 1,445 | 1,445 | ||||||
| Intangible assets, net | 2,323 | 2,491 | ||||||
| Debt issue costs | 337 | 340 | ||||||
| Other assets | 328 | 262 | ||||||
| Total assets | $ | 44,692 | $ | 46,795 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,555 | $ | 2,021 | ||||
| Accrued expenses | 2,384 | 2,332 | ||||||
| Customer advances | 4,134 | 2,817 | ||||||
| Revolving line of credit | — | 2,826 | ||||||
| Current portion of capital lease obligation | 231 | 73 | ||||||
| Current portion of long-term debt | 691 | 783 | ||||||
| Total current liabilities | 8,995 | 10,852 | ||||||
| Capital lease obligation, less current portion | 759 | 80 | ||||||
| Long-term debt, less current portion | 8,724 | 8,893 | ||||||
| Subordinated debt, long-term | 4,828 | 5,188 | ||||||
| Deferred income taxes | 2,217 | 2,362 | ||||||
| Shareholders' equity: | ||||||||
| Preferred shares: Authorized shares — 1,000, | ||||||||
| Issued and outstanding shares - none | — | — | ||||||
| Common shares: Authorized shares — 19,000, | ||||||||
| Issued and outstanding shares — 4,870 at March 31, 2005 | ||||||||
| and 4,870 at September 30, 2004 | 1,177 | 1,177 | ||||||
| Additional paid-in capital | 11,263 | 11,263 | ||||||
| Retained earnings | 6,802 | 7,295 | ||||||
| Accumulated other comprehensive loss | (73 | ) | (315 | ) | ||||
| Total shareholders' equity | 19,169 | 19,420 | ||||||
| Total liabilities and shareholders' equity | $ | 44,692 | $ | 46,795 | ||||
See accompanying notes to condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||
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| 2005 |
2004 |
2005 |
2004 | |||||||||||
| Service revenue | $ | 7,543 | $ | 5,608 | $ | 14,832 | $ | 11,586 | ||||||
| Product revenue | 1,596 | 3,042 | 4,001 | 5,841 | ||||||||||
| Total revenue | 9,139 | 8,650 | 18,833 | 17,427 | ||||||||||
| Cost of service revenue | 6,056 | 5,217 | 11,271 | 10,276 | ||||||||||
| Cost of product revenue | 657 | 1,229 | 1,509 | 2,312 | ||||||||||
| Total cost of revenue | 6,713 | 6,446 | 12,780 | 12,588 | ||||||||||
| Gross profit | 2,426 | 2,204 | 6,053 | 4,839 | ||||||||||
| Operating expenses: | ||||||||||||||
| Selling | 626 | 665 | 1,202 | 1,291 | ||||||||||
| Research and development | 173 | 295 | 392 | 541 | ||||||||||
| General and administrative | 2,603 | 1,785 | 4,530 | 3,632 | ||||||||||
| Total operating expenses | 3,402 | 2,745 | 6,124 | 5,464 | ||||||||||
| Operating loss | (976 | ) | (541 | ) | (71 | ) | (625 | ) | ||||||
| Interest income | 2 | 2 | 4 | 3 | ||||||||||
| Interest expense | (257 | ) | (207 | ) | (532 | ) | (414 | ) | ||||||
| Other income (expense) | (28 | ) | 2 | (22 | ) | 18 | ||||||||
| Loss on sale of property and equipment | (12 | ) | — | (12 | ) | — | ||||||||
| Loss before income taxes | (1,271 | ) | (744 | ) | (633 | ) | (1,018 | ) | ||||||
| Income taxes | (375 | ) | (241 | ) | (140 | ) | (385 | ) | ||||||
| Net loss | $ | (896 | ) | $ | (503 | ) | $ | (493 | ) | $ | (633 | ) | ||
| Net loss per share: | ||||||||||||||
| Basic | $ | (0.18 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.13 | ) | ||
| Diluted | $ | (0.18 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.13 | ) | ||
| Weighted common and common equivalent | ||||||||||||||
| shares outstanding: | ||||||||||||||
| Basic | 4,870 | 4,870 | 4,870 | 4,851 | ||||||||||
| Diluted | 4,870 | 4,870 | 4,870 | 4,851 | ||||||||||
See accompanying notes to condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six Months Ended March 31, |
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| 2005 |
2004 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (493 | ) | $ | (633 | ) | ||
| Adjustments to reconcile net income (loss) to net | ||||||||
| cash provided by operating activities: | ||||||||
| Depreciation and amortization | 1,429 | 1,617 | ||||||
| Loss on sale of property and equipment | 12 | — | ||||||
| Deferred income taxes | (145 | ) | (93 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,662 | ) | (421 | ) | ||||
| Inventories | (689 | ) | 130 | |||||
| Prepaid expenses and other assets | (231 | ) | (735 | ) | ||||
| Accounts payable | (466 | ) | 24 | |||||
| Refundable income taxes | (137 | ) | — | |||||
| Accrued expenses | 28 | 173 | ||||||
| Customer advances | 1,317 | 1,442 | ||||||
| Net cash provided (used) by operating activities | (1,037 | ) | 1,504 | |||||
| Investing activities | ||||||||
| Capital expenditures | (1,029 | ) | (2,229 | ) | ||||
| Proceeds from sale of property and equipment | 5,866 | — | ||||||
| Net cash provided (used) by investing activities | 4,837 | (2,229 | ) | |||||
| Financing activities | ||||||||
| Borrowings on line of credit | 6,968 | 6,705 | ||||||
| Payments on line of credit | (9,794 | ) | (6,823 | ) | ||||
| Borrowings on construction line of credit | — | 574 | ||||||
| Payments on capital lease obligations | (53 | ) | (130 | ) | ||||
| Payments of long-term debt | (621 | ) | (293 | ) | ||||
| Net cash provided (used) by financing activities | (3,500 | ) | 33 | |||||
| Effects of exchange rate changes | 242 | (179 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 542 | (871 | ) | |||||
| Cash and cash equivalents at beginning of period | 773 | 1,378 | ||||||
| Cash and cash equivalents at end of period | $ | 1,315 | $ | 507 | ||||
See accompanying notes to condensed consolidated financial statements.
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