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8-K - 8-K - BIOCLINICA INCa13-3942_78k.htm

Exhibit 99.1

 

 

 

GRAPHIC

 

Company Contact — Ted Kaminer

BioClinica, Inc.

267-757-3097

 

Investor Contact - Cheryl Schneider

Porter, LeVay & Rose, Inc.

212-564-4700

 

FOR IMMEDIATE RELEASE

 

BIOCLINICA ANNOUNCES FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL RESULTS

 

NEWTOWN, PA, February 6, 2013 — BioClinica®, Inc. (NASDAQ: BIOC), a leading global provider of clinical trial management solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2012.

 

Financial highlights for the quarter ended December 31, 2012 include:

 

·                  Service revenues increased 20.9% to $22.2 million as compared with $18.3 million for the same period 2011.

 

·                  GAAP operating income was $2.1 million compared with $1.8 million for the same period 2011.

 

·                  GAAP net income was $1.2 million, or $0.07 per fully diluted share, as compared with $1.2 million, or $0.07 per fully diluted share in the year-ago quarter.

 

·                  Non-GAAP operating income increased 23.0% to $2.9 million as compared with $2.4 million for the same period 2011.

 

·                  Non-GAAP net income increased 12.5% to $1.7 million, or $0.10 per fully diluted share, compared to $1.5 million or $0.09 per fully diluted share reported in last year’s fourth quarter.

 

·                  Backlog was $122.2 million compared with $123.1 million in the year-ago fourth quarter.

 

Financial highlights for the full year ended December 31, 2012 include:

 

·                  Service revenues increased 16.2% to $79.0 million as compared with $68.0 million for the same period 2011.

 

·                  GAAP operating income was $6.5 million (after a restructuring charge of $839,000), as compared with $4.4 million (after a restructuring charge of $1.7 million) for the same period 2011.

 

·                  GAAP net income was $3.7 million or $0.23 per fully diluted share (after the $839,000, or $0.03 per fully diluted share restructuring charge), as compared with $2.8 million or $0.17 per fully diluted share (after the $1.7 million or $0.07 per fully diluted share restructuring charge) for the same period 2011.

 

·                  Non-GAAP operating income increased 20.2% to $9.9 million as compared with $8.2 million for the same period 2011.

 

·                  Non-GAAP net income increased 12.8% to $6.0 million or $0.36 per fully diluted share, compared with $5.3 million or $0.32 per fully diluted share in 2011.

 

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, “During the fourth quarter we continued to execute our business plan, focusing on our goals of being a leading global provider of clinical trial solutions, advancing our comprehensive clinical trial development platform with best-in-class solutions, and leveraging our investment in technology and infrastructure.”

 

-more-

 



 

Mr. Weinstein continued, “We value each of our clients, and strive to deliver the best-in-class services to each of them.  Accordingly, as we have previously discussed, in order to remain competitive and offer a best-in-class solution, we continue to invest in our business and our software platform.”

 

“As a result of the transaction announced on January 30, 2013, we do not intend to issue earnings guidance for 2013.  However, the forthcoming Schedule 14D-9 is expected to be filed on or about February 11, 2013, and this filing is expected to contain the material forecasts and projections shared with our potential buyer,” he concluded.

 

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.

 

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

 

Important Information About the Tender Offer

 

This announcement and the description contained herein are for informational purposes only and are not an offer to purchase or a solicitation of an offer to sell securities of BioClinica, Inc. The tender offer described herein has not yet been commenced. At the time the tender offer is commenced, affiliates of JLL Partners, Inc. intend to file a tender offer statement on a Schedule TO containing an offer to purchase, a letter of transmittal and other related documents with the Securities and Exchange Commission. At the time the tender offer is commenced, BioClinica, Inc. intends to file with the Securities and Exchange Commission a solicitation/recommendation statement on Schedule 14D-9 and, if required, will, file a proxy statement or information statement with the Securities and Exchange Commission in connection with the merger, the second step of the transaction, at a later date. Such documents will be mailed to stockholders of record and will also be made available for distribution to beneficial owners of common stock of BioClinica, Inc. The solicitation of offers to buy common stock of BioClinica will only be made pursuant to the offer to purchase, the letter of transmittal and related documents. Stockholders are advised to read the offer to purchase and the letter of transmittal, the solicitation/recommendation statement, the proxy statement, the information statement and all related documents, if and when such documents are filed and become available, as they will contain important information about the tender offer and proposed merger. Stockholders can obtain these documents

 

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when they are filed and become available free of charge from the Securities and Exchange Commission’s website at http://www.sec.gov, or from the information agent JLL selects. In addition, copies of the solicitation/recommendation statement, the proxy statement and other filings containing information about BioClinica, Inc., the tender offer and the merger may be obtained, if and when available, without charge, by directing a request to BioClinica, Inc. Attention: Ted Kaminer, Chief Financial Officer, at 826 Newtown-Yardley Rd., Newtown, PA 18940, or on BioClinica’s corporate website at http://www.bioclinica.com.

 

Forward-looking statements

 

Certain statements made 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.  Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believes”, “expects”, “may”, “should” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties.  Such forward-looking statements include the decision by BioClinica, Inc. to enter into an agreement to be acquired by the holding company controlled by JLL Partners, the ability of BioClinica, Inc. and the holding company controlled by JLL Partners to complete the transaction contemplated by the definitive agreement, including the parties’ ability to satisfy the conditions set forth in the merger agreement, and the possibility of any termination of the definitive agreement.  The forward-looking statements contained in this press release are based on our current expectations, and those made at other times will be based on our expectations when the statements are made.  Factors that could cause or contribute to such differences include, but are not limited to, the expected timetable for completing the proposed transaction; the risk and uncertainty in connection with a strategic alternative process; financial results; the demand for our services and technologies; growing recognition for the use of independent medical image review services; trends toward the outsourcing of imaging services in clinical trials; realized return from our marketing efforts; increased use of digital medical images in clinical trials; integration of our acquired companies and businesses; expansion into new business segments; the success of any potential acquisitions and the integration of current acquisitions; and the level of our backlog are examples of such forward-looking statements; the timing of revenues due to the variability in size, scope and duration of projects; estimates made by management with respect to our 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 our control.  Further information can be found in the risk factors contained in the Annual Report of BioClinica, Inc. on Form 10-K for the year ended December 31, 2011 and its most recent filings.  BioClinica, Inc. does not undertake to update the disclosures made herein, and you are urged to read our filings with the Securities and Exchange Commission.

 

- FINANCIAL TABLES TO FOLLOW –

 

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BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

 

12/31/12

 

12/31/11

 

12/31/12

 

12/31/11

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

22,167

 

18,335

 

79,002

 

67,993

 

Reimbursement revenues

 

5,440

 

4,084

 

19,276

 

15,971

 

Total revenues

 

$

27,607

 

$

22,419

 

$

98,278

 

$

83,964

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

13,391

 

10,785

 

48,639

 

42,217

 

Cost of reimbursement revenues

 

5,440

 

4,084

 

19,276

 

15,971

 

Sales & marketing expenses

 

2,884

 

2,402

 

10,732

 

8,726

 

General & admin. expenses

 

3,479

 

3,145

 

11,560

 

10,172

 

Amortization of intangible assets related to acquisitions

 

105

 

156

 

534

 

623

 

Mergers & acquisition related costs

 

190

 

 

190

 

162

 

Restructuring costs

 

 

 

839

 

1,719

 

Total cost and expenses

 

25,489

 

20,572

 

91,770

 

79,590

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

2,118

 

1,847

 

6,508

 

4,374

 

Interest income (expense) - net

 

(37

)

(14

)

(104

)

(40

)

Income before income tax

 

2,081

 

1,833

 

6,404

 

4,334

 

Income tax provision (1)

 

923

 

668

 

2,677

 

1,536

 

Net income

 

$

1,158

 

$

1,165

 

$

3,727

 

$

2,798

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.07

 

$

0.07

 

$

0.24

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares - basic

 

15,604

 

15,677

 

15,626

 

15,652

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.07

 

$

0.07

 

$

0.23

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares - diluted

 

16,522

 

16,165

 

16,486

 

16,432

 

 


(1)         Our effective tax rate would have been less by approximately 3%,  with the federal research and experimentation credit, if Congress had enacted the American Taxpayer Relief Act before December 31, 2012.

 

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 Twelve Months Ended

 

 

 

12/31/12

 

12/31/11

 

12/31/12

 

12/31/11

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income

 

2,118

 

1,847

 

6,508

 

4,374

 

Stock-based compensation *

 

479

 

348

 

1,846

 

1,369

 

Amortization of intangible assets related to acquisitions

 

105

 

156

 

534

 

623

 

Mergers & acquisition related costs

 

190

 

 

190

 

162

 

Restructuring charges

 

 

 

839

 

1,719

 

Non-GAAP operating income

 

$

2,892

 

$

2,351

 

$

9,917

 

$

8,247

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (2)

 

1,158

 

1,165

 

3,727

 

2,798

 

Stock-based compensation, net of taxes

 

316

 

220

 

1,218

 

884

 

Amortization of intangible assets related to acquisitions, net of taxes

 

69

 

98

 

352

 

402

 

Mergers & acquisition related costs, net of taxes

 

125

 

 

125

 

105

 

Restructuring charges, net of taxes

 

 

 

554

 

1,110

 

Non-GAAP net income

 

1,668

 

$

1,483

 

5,976

 

$

5,299

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

0.07

 

$

0.07

 

$

0.23

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

$

0.10

 

$

0.09

 

$

0.36

 

$

0.32

 

 


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

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

138

 

120

 

544

 

471

 

Sales & marketing expenses

 

14

 

11

 

55

 

41

 

General & admin. expenses

 

327

 

217

 

1,247

 

857

 

 

 

479

 

348

 

1,846

 

1,369

 

 

(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 twelve months ended December 31, 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)

 

Our effective tax rate would have been less by approximately 3%, with the federal research and experimentation credit, if Congress had enacted the American Taxpayer Relief Act before December 31, 2012.

 

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BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 31, 2012

 

December 31, 2011

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

13,915

 

$

12,575

 

Accounts receivable, net

 

22,620

 

16,353

 

Prepaid expenses & other current assets

 

1,858

 

1,743

 

Deferred income taxes

 

4,807

 

5,637

 

Total current assets

 

43,200

 

36,308

 

 

 

 

 

 

 

Property & equipment, net

 

21,463

 

16,186

 

Intangibles, net

 

1,274

 

1,808

 

Goodwill

 

34,302

 

34,302

 

Deferred income taxes

 

 

1,021

 

Other assets

 

1,055

 

796

 

 

 

 

 

 

 

Total assets

 

101,294

 

$

90,421

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,630

 

$

2,422

 

Accrued expenses & other current liabilities

 

6,656

 

5,944

 

Deferred revenue

 

14,907

 

13,438

 

Deferred income tax

 

 

526

 

Current maturities of capital lease obligations

 

1,176

 

423

 

Current liability for acquisition earn-out

 

 

2,000

 

Total current liabilities

 

28,369

 

24,753

 

 

 

 

 

 

 

Long-term capital lease obligations

 

3,948

 

1,535

 

Deferred income taxes

 

5,002

 

4,499

 

Other liability

 

1,512

 

1,574

 

Total liabilities

 

38,831

 

32,361

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

4

 

4

 

Treasury stock

 

(2,479

)

(1,126

)

Additional paid-in-capital

 

51,598

 

49,564

 

Retained earnings

 

13,317

 

9,590

 

Accumulated other comprehensive (loss) income

 

23

 

28

 

Total stockholders’ equity

 

62,463

 

58,060

 

 

 

 

 

 

 

Total liabilities & stockholders’ equity

 

$

101,294

 

$

90,421

 

 

6



 

BIOCLINICA, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the Twelve Months Ended

 

 

 

12/31/12

 

12/31/11

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

3,727

 

2,798

 

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

 

 

 

 

 

Depreciation and amortization

 

5,251

 

4,550

 

Provision for deferred income taxes

 

1,776

 

295

 

Excess tax benefit related to stock options

 

(101

)

(20

)

Change in deferred taxes related to canceled options

 

152

 

 

Bad debt provision

 

10

 

22

 

Stock based compensation

 

1,846

 

1,369

 

Gain on sale/leaseback

 

147

 

47

 

Accretion of acquistion earn-out

 

 

114

 

Changes in operating assets and liabilities:

 

 

 

 

 

Increase in accounts receivable

 

(6,277

)

(4,507

)

(Increase) decrease in prepaid expenses & other current assets

 

(143

)

761

 

Increase in other assets

 

(260

)

(91

)

Increase in accounts payable

 

2,540

 

355

 

(Decrease) increase in accrued expenses & other current liabilities

 

(69

)

1,294

 

Increase in deferred revenue

 

1,469

 

42

 

(Decrease) increase in other liabilities

 

(65

)

697

 

Net cash provided by operating activities

 

$

10,003

 

$

7,726

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property & equipment

 

(3,918

)

(1,859

)

Capitalized software development costs

 

(4,986

)

(3,908

)

Net cash paid for acquisition earn-out

 

(2,000

)

 

Net cash used in investing activities

 

(10,904

)

(5,767

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from sale/leaseback

 

3,893

 

1,335

 

Payments under capital lease obligations

 

(727

)

(253

)

Purchase of treasury stock

 

(1,353

)

(1,110

)

Excess tax benefit related to stock options

 

101

 

20

 

Change in deferred taxes related to canceled options

 

(152

)

 

 

Proceeds from exercise of stock options

 

466

 

205

 

Net cash provided by financing activities

 

$

2,228

 

$

197

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

13

 

(24

)

 

 

 

 

 

 

Net increase in cash & cash equivalents

 

$

1,340

 

$

2,132

 

Cash and cash equivalents at beginning of period

 

$

12,575

 

10,443

 

Cash and cash equivalents at end of period

 

$

13,915

 

$

12,575

 

 

###

 

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