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8-K - 8-K - BIOCLINICA INCa11-23561_18k.htm

Exhibit 99.1

 

GRAPHIC

Company Contact - Jim Dorsey
BioClinica, Inc.
267-757-3040

 

Trade Media — Rachel Summers
Diccicco Battista Communications
484-342-3600

 

Investor Contact - Michael Porter
Financial Media - Bill Gordon
Porter, LeVay & Rose, Inc.
212-564-4700

 

FOR IMMEDIATE RELEASE

 

BIOCLINICA REPORTS RECORD QUARTERLY SERVICE REVENUES

 

—Non-GAAP Operating Income Increases 45.6% on an 8.7% Increase in Service Revenues—

 

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

 

NEWTOWN, PA, August 3, 2011 — BioClinica®, Inc. (NASDAQ: BIOC), a global provider of clinical trial management solutions, today announced its financial results for the second quarter and six months ended June 30, 2011.

 

Financial highlights for the quarter ended June 30, 2011 include:

 

·                  Service revenues increased 8.7% to a record $16.9 million as compared with $15.5 million for the same period 2010.

 

·                  GAAP income from operations was $1.5 million, as compared with $657,000 for the same period 2010, an increase of 125%.

 

·                  GAAP net income was $924,000, or $0.06 per fully diluted share, as compared with $403,000, or $0.03 per fully diluted share, for the same period 2010.

 

·                  Non-GAAP income from operations increased 45.6% to $2.0 million as compared with $1.4 million for the same period 2010.

 

·                  Non-GAAP net income increased 48.6% to $1.3 million as compared with $851,000; on a fully diluted basis, Non-GAAP earnings per share increased 60% to $0.08 per share, as compared with $0.05 per fully diluted share reported for the same period 2010.

 

·                  Backlog was $112.5 million as of June 30, 2011, an 8.0% increase as compared with $104.2 million as of June 30, 2010.

 

Financial highlights for the six months ended June 30, 2011 include:

 

·                  Service revenues increased 9.1% to $33.0 million as compared with $30.3 million for the same period 2010.

 

·                  GAAP income from operations was $2.0 million as compared with $1.8 million for the same period 2010, an increase of 12.3%.

 

·                  GAAP net income was $1.3 million, or $0.08 per fully diluted share, as compared with $1.1 million, or $0.07 per fully diluted share, for the same period 2010.

 

·                  Non-GAAP income from operations increased 23.4% to $3.9 million as compared with $3.1 million for the same period 2010.

 

-more-

 



 

·                  Non-GAAP net income increased 26.3% to $2.4 million compared with $1.9 million in the prior year’s period, and was $0.15 per fully diluted share, a 25% increase compared with $0.12 per fully diluted share reported for the same period 2010.

 

·                  During the second quarter, we repurchased 67,400 shares of BioClinica stock at an average price of $5.19 per share, as part of our stock repurchase program. For the first half of 2011, we purchased 105,013 shares of BioClinica stock at an average price of $5.12 per share.  At June 30, 2011, there was $1.4 million of funds remaining that may yet be used to repurchase shares under the plan that originally authorized purchases up to $2 million.

 

“By providing best-in-class combined technology and service solutions and a clear line of site to a unified clinical research solution, we are getting a tremendous reception from the entire continuum of pharma and medical device companies.  The industry is rapidly accepting that a new development paradigm is needed and that the new paradigm requires new solutions, i.e. BioClinica.  Our second quarter financial results show the strength of our historical core medical imaging services combined with the ever-increasing acceptance of our new products and services.  For the quarter we showed growth across the board, including: service revenue, gross margin on service revenue, operating income, net income and earnings per share, and we ended the quarter with a strong backlog of $112.5 million,” said Mark L. Weinstein, President and CEO of BioClinica.

 

Mr. Weinstein added, “We continue to get tremendous traction on our Trident IVR/IWR product which we released in the fourth quarter of last year.  Since its initial launch we have had 11 new clients involving 24 studies commit to the Trident platform for their IVR/IWR needs.  Everyone that is introduced to Trident is very pleased with its unparalleled efficiency and accuracy.”

 

“Similar to Trident, we are also beginning to see traction for our OnPoint CTMS, Clinical Trial Management System (‘CTMS’) solution,” he continued. “Initially oriented towards small- to medium- pharma companies, we are now seeing tremendous interest from major global pharmaceutical companies and medical device companies as well. OnPoint’s tight integration with Microsoft® SharePoint enables users to interact with our CTMS solution via Microsoft Office applications (Outlook, Excel, Word, etc.), speeding user adoption and compliance. BioClinica’s growth is not only attributed to our technologies that meet and exceed client demands, it is also the result of our agile and innovative staff, including our expert development organization that creates and supports these various technologies.”

 

Mr. Weinstein concluded, “We intend to continue this momentum by broadening our client base and increasing the adoption of our products and services.  With our strong backlog, and our continued strengthening of our suite of products and services, we remain on track to achieve our previously issued guidance.  We are reiterating our expectations for full-year 2011 service revenues to be in the range of $66 to $70 million, our full-year GAAP EPS, including a restructuring charge of $0.06 per share, to be in the range of $0.16 to $0.21 per diluted share, and our full-year non-GAAP EPS to be in the range of $0.30 to $0.35 per diluted share.”

 

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 # 375931. The replay will also be on the website under “Investor Relations” at www.bioclinica.com for two weeks.

 

2



 

Non-GAAP Financial Information

 

BioClinica is providing information on 2011 and 2010 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.

 

About BioClinica, Inc.

 

BioClinica, Inc. is a leading global provider of integrated, technology-enhanced clinical trial management solutions. BioClinica supports pharmaceutical and medical device innovation with imaging core lab, internet image transport, electronic data capture, interactive voice and web response, clinical trial management and clinical supply chain design and optimization solutions. BioClinica solutions maximize efficiency and manageability throughout all phases of the clinical trial process. With over 20 years of experience and more than 2,000 successful trials to date, BioClinica has supported the clinical development of many new medicines from early phase trials through final approval. BioClinica operates state-of-the-art, regulatory-body-compliant imaging core labs on two continents, and supports worldwide eClinical and data management services from offices in the United States, Europe and Asia. For more information, please visit www.bioclinica.com.

 

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.  In particular, the Company’s statements regarding trends in the marketplace and potential future results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the consummation and the successful integration of current and proposed acquisitions, the timing of projects due to the variability in size, scope and duration of projects, estimates and guidance made by management with respect to the Company’s financial results, backlog, critical accounting policies, regulatory delays, clinical study results which lead to reductions or cancellations of projects, and other factors, including general economic conditions and regulatory developments, not within the Company’s control.  The factors discussed herein and expressed from time to time in the Company’s filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements.  The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstance. You should review the Company’s filings, especially risk factors contained in the Form 10-K and the recent Form 10-Q.

 

- FINANCIAL TABLES TO FOLLOW —

 

3



 

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

 

 

 

06/30/11

 

06/30/10

 

06/30/11

 

06/30/10

 

Service revenues

 

16,891

 

15,533

 

33,035

 

30,279

 

Reimbursement revenues

 

3,519

 

3,703

 

7,040

 

7,061

 

Total revenues

 

$

20,410

 

$

19,236

 

$

40,075

 

$

37,340

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

10,441

 

9,946

 

20,998

 

18,897

 

Cost of reimbursement revenues

 

3,519

 

3,703

 

7,040

 

7,061

 

Sales & marketing expenses

 

2,383

 

2,565

 

4,243

 

4,775

 

General & admin. expenses

 

2,371

 

1,916

 

4,593

 

3,988

 

Amortization of intangible assets related to acquisitions

 

156

 

138

 

312

 

279

 

Mergers & acquisition related costs

 

59

 

311

 

162

 

516

 

Restructuring costs

 

 

 

679

 

 

Total cost and expenses

 

18,929

 

18,579

 

38,027

 

35,516

 

Income from operations

 

1,481

 

657

 

2,048

 

1,824

 

Interest income (expense) — net

 

(7

)

(2

)

(14

)

1

 

Income before income tax

 

1,474

 

655

 

2,034

 

1,825

 

Income tax provision

 

550

 

252

 

759

 

711

 

Net income

 

924

 

403

 

1,275

 

1,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.06

 

$

0.03

 

$

0.08

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares - basic

 

15,647

 

15,115

 

15,649

 

14,852

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.06

 

$

0.03

 

$

0.08

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares — diluted

 

16,491

 

16,065

 

16,566

 

15,861

 

 

4



 

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

 

 

 

06/30/11

 

06/30/10

 

06/30/11

 

06/30/10

 

GAAP income from operations

 

1,481

 

657

 

2,048

 

1,824

 

Stock-based compensation*

 

329

 

285

 

672

 

520

 

Amortization of intangible assets related to acquisitions

 

156

 

138

 

312

 

279

 

Merger & acquisition related costs

 

59

 

311

 

162

 

516

 

Restructuring charges

 

 

 

679

 

 

Non-GAAP income from operations

 

2,025

 

1,391

 

3,873

 

3,139

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

924

 

403

 

1,275

 

1,114

 

Stock-based compensation, net of taxes

 

206

 

174

 

421

 

317

 

Amortization of intangible assets related to acquisitions, net of taxes

 

98

 

84

 

196

 

170

 

M&A related cost, net of taxes

 

37

 

190

 

102

 

315

 

Restructuring charges, net of taxes

 

 

 

426

 

 

Non-GAAP net income

 

1,265

 

851

 

2,420

 

1,916

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

0.06

 

$

0.03

 

$

0.08

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

$

0.08

 

$

0.05

 

$

0.15

 

$

0.12

 

 


*Stock based compensation included in total costs and expenses is as follows:

 

 

 

 

Cost of service revenues

 

107

 

99

 

230

 

189

 

Sales and marketing expenses

 

8

 

13

 

20

 

26

 

General and admin. expenses

 

214

 

173

 

422

 

305

 

Total stock-based compensation

 

329

 

285

 

672

 

520

 

 

(1) This table presents a reconciliation of GAAP to non-GAAP income from operations, net income and diluted earnings per share for the three months and six months ended June 30, 2011 and 2010. 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 used for fiscal 2011 is 37.3%.

 

5



 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)

(unaudited)

 

 

 

June 30, 2011

 

December 31, 2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

11,519

 

$

10,443

 

Accounts receivable, net

 

14,659

 

11,866

 

Prepaid expenses and other current assets

 

2,095

 

2,501

 

Deferred income taxes

 

3,950

 

3,625

 

Total current assets

 

32,223

 

28,435

 

Property & equipment, net

 

15,131

 

14,029

 

Intangibles, net

 

2,119

 

2,430

 

Goodwill

 

34,302

 

34,302

 

Deferred income taxes

 

94

 

128

 

Other assets

 

707

 

705

 

 

 

 

 

 

 

Total assets

 

$

84,576

 

$

80,029

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

4,345

 

$

1,983

 

Accrued expenses and other current liabilities

 

3,125

 

4,283

 

Deferred revenue

 

13,529

 

13,395

 

Current maturities of capital lease obligations

 

268

 

168

 

Long-term liability for acquisition earn-out

 

2,000

 

 

Total current liabilities

 

23,267

 

19,829

 

Long-term capital lease obligations

 

1,034

 

710

 

Long-term liability for acquisition earn-out

 

 

1,886

 

Deferred income taxes

 

2,675

 

1,845

 

Other liability

 

1,113

 

880

 

Total liabilities

 

28,089

 

25,150

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

4

 

4

 

Treasury stock

 

(553

)

(16

)

Additional paid-in capital

 

48,853

 

48,074

 

Retained earnings

 

8,067

 

6,792

 

Accumulated other comprehensive income

 

116

 

25

 

Total stockholders’ equity

 

56,487

 

54,879

 

 

 

 

 

 

 

Total liabilities & stockholders’ equity

 

$

84,576

 

$

80,029

 

 

6



 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

 

 

For the Six Months Ended

 

 

 

06/30/11

 

06/30/10

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

1,275

 

1,114

 

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

 

 

 

 

 

Depreciation and amortization

 

1,767

 

1,588

 

Provision for deferred income taxes

 

539

 

285

 

Bad debt (recovery) expense

 

(15

)

(9

)

Stock based compensation expense

 

672

 

519

 

Accretion of acquisition earn-out

 

114

 

188

 

Changes in operating assets and liabilities:

 

 

 

 

 

(Increase) decrease in accounts receivable

 

(2,781

)

147

 

Decrease (increase) in prepaid expenses and other current assets

 

410

 

(54

)

(Increase) decrease in other assets

 

(2

)

50

 

Increase in accounts payable

 

2,077

 

665

 

Decrease in accrued expenses and other current liabilities

 

(1,146

)

(762

)

Increase (decrease) in deferred revenue

 

133

 

(2,146

)

Increase in other liabilities

 

234

 

248

 

Net cash provided by operating activities

 

$

3,277

 

$

1,833

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(351

)

(2,001

)

Capitalized software development costs

 

(1,908

)

(2,815

)

Net cash used in investing activities

 

$

(2,259

)

$

(4,816

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from sale/leaseback

 

514

 

 

Payments under equipment lease obligations

 

(88

)

 

Purchase of treasury stock

 

(538

)

 

Excess tax benefit related to stock options

 

19

 

30

 

Proceeds from exercise of stock options

 

87

 

22

 

Net cash (used in) provided by financing activities

 

$

(6

)

$

52

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

64

 

(70

)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

1,077

 

(3,001

)

Cash and cash equivalents at beginning of period

 

10,443

 

14,570

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

11,519

 

$

11,569

 

 

#####

 

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