BioClinica Announces First Quarter 2010 Financial Results

BioClinica Announces First Quarter 2010 Financial Results
Conference Call Today at 11:00 A.M. EDT

NEWTOWN, Pa.--(BUSINESS WIRE)--BioClinicaTM, Inc. (NASDAQ: BIOC), a global provider of clinical trial management services, today announced its financial results for the first quarter ended March 31, 2010.

"Further, BioClinica WebSend and WebView, formerly CardioNow, which we acquired from Agfa HealthCare, are proven and established solutions for managing the electronic sharing, blinding, tracking, archiving and analysis of medical images for clinical trials worldwide."
.Financial highlights for the quarter ended March 31, 2010 include:

 

  • Service revenues were $14,746,000 as compared with $14,475,000 for the same period 2009.
  • Backlog was $99.7 million as of March 31, 2010, as compared with $93.3 million as of March 31, 2009.
  • Non-GAAP income from operations was $1,748,000 as compared with $1,577,000 for the same period 2009.
  • GAAP income from operations was $1,167,000 as compared with $1,222,000 for the same period 2009.
  • Non-GAAP net income was $1,065,000, or $0.07 per fully diluted share, as compared with $1,010,000, or $0.07 per fully diluted share, for the same period 2009.
  • GAAP net income was $711,000, or $0.05 per fully diluted share, as compared with $786,000, or $0.05 per fully diluted share, for the same period 2009.

In addition, the Company reported several milestones in its growth strategy, including:

 

 

  • The acquisition of TranSenda International, including its Office-Smart Clinical Trial Manager ("CTMS") and Office-Smart Clinical Payment Manager, each designed to take full advantage of the powerful Microsoft Office tools and based on native interoperability with the Microsoft SharePoint System.
  • The launch of BioClinica WebSend and WebView which provide best-in-class regulatory compliant electronic image transport solutions for its medical image management clients worldwide.
  • The signing of a multi-year "end-to-end" clinical data management outsourcing agreement with Cephalon, Inc.
  • The launch of BioClinica Optimizer, a leading product in the field of clinical supply chain forecasting and optimization, with four of the top ten pharmaceutical companies among its clients.
  • Reaching the final development stages of its Trident IVR/IWR, the next generation of Interactive Voice Response/ Interactive Web Response ("IVR/IWR") software.

Mark Weinstein, CEO of BioClinica, said, "These milestones and initiatives provide us the opportunity to sell individual best of breed 'point solutions' as well as create opportunities for cross-selling integrated clinical trial solutions."

 

He continued, "The acquisition of TranSenda represents an important advancement in the execution of our comprehensive eClinical solutions strategy. TranSenda's CTMS solutions are an important part of our Microsoft Office and SharePoint enabled delivery vision, and provide a real-time window on the vital metrics managers need to oversee efficient clinical trials. We are excited about this acquisition, the company's relationship with Microsoft, and the ways in which it further expands our footprint in the eClinical services industry."

"The multi-year outsourcing agreement with Cephalon, under which we will be providing "end-to-end" clinical data management services to Cephalon's global clinical trial operations, was another significant milestone. With the pharmaceutical industry trending towards more creative outsourcing agreements, this innovative and logical approach has already led to discussions with other companies interested in benefiting from similar arrangements," he added.

"BioClinica Optimizer (formerly Tourtellotte Solutions tcVisualize), which we launched this quarter, offers our clients clinical supply chain forecasting with the most sophisticated simulation and optimization technology available, and its importance is underscored by the fact that currently four of the top ten pharmaceutical companies use this product. In addition, we are in the final stages of completing our Trident IVR/IWR and are excited about its launch during the second half of this year. We believe the Trident IVR/IWR is the next-generation integrated voice/web response solution that the market is seeking, and our clients seem to agree," he said.

Mr. Weinstein continued, "Further, BioClinica WebSend and WebView, formerly CardioNow, which we acquired from Agfa HealthCare, are proven and established solutions for managing the electronic sharing, blinding, tracking, archiving and analysis of medical images for clinical trials worldwide."

Mr. Weinstein concluded, "With industry trends showing renewed strength and the continued refinement and additions to our suite of clinical trial services, we remain on track to achieve our previously stated financial estimates. We reiterate our previous full-year 2010 service revenue to be in the range of $61 to $65 million and non-GAAP EPS to be in the range of $0.33 to $0.37 per share, including the financial impact of the TranSenda acquisition. We have revised our GAAP EPS to be in the range of $0.23 to $0.27 per share from $0.25 to $0.29 per share, due to transaction expenses and amortization of intangible assets related to the TranSenda acquisition."

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# 349492. The replay will also be on the website under "Investor Relations" at www.bioclinica.com for two weeks.

Non-GAAP Financial Information

BioClinica is providing information on 2010 and 2009 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 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 services. BioClinica supports pharmaceutical and medical device innovation with imaging core lab, internet image transport, electronic data capture, interactive voice and web response, Microsoft Office-Smart clinical trial management, and clinical supply chain forecasting and optimization solutions. BioClinica services maximize efficiency and manageability throughout all phases of the clinical trial process. With more than 20 years of experience and over 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.

BIOCLINICA, INC. AND SUBSIDIARIES
 
Consolidated Statements of Income
 
   
(In thousands, except per share data)  
(unaudited)  
   
 
       For the Three Months Ended
 
    03/31/10
        03/31/09
 
   
Service revenues     14,746     14,475  
Reimbursement revenues       3,358       2,595  
Total revenues    $  18,104    $  17,070  
   
Costs and expenses:        
Cost of service revenues     8,951     9,061  
Cost of reimbursement revenues     3,358     2,595  
Sales & marketing expenses     2,210     2,156  
General & admin. expenses     2,072     1,917  
Amortization of intangible assets        
related to acquisitions     141     119  
Mergers & acquisition related costs       205       -  
Total cost and expenses       16,937       15,848  
Income from operations     1,167     1,222  
Interest income (expense) - net       3       20  
Income before income tax     1,170     1,242  
Income tax provision       459       456  
Net income       711       786  
   
Basic earnings per share    $  0.05    $  0.05  
   
Weighted average number        
of shares - basic     14,545     14,341  
   
Diluted earnings per share    $  0.05    $  0.05  
   
Weighted average number of        
shares - diluted     15,382     15,085  
           
BIOCLINICA, INC. AND SUBSIDIARIES
 
GAAP to non-GAAP Reconciliation (1)
 
(In thousands, except per share data) 
(unaudited) 
  
 
    For the Three Months Ended
 
  3/31/10
    3/31/09
 
        
GAAP income from operations    1,167    1,222 
Stock-based compensation*    235    236 
Amortization of intangible assets     
related to acquisitions    141    119 
Merger & acquisition related costs      205      -- 
Non-GAAP income from operations      1,748      1,577 
      
      
GAAP net income    711    786 
Stock-based compensation, net of taxes    143    149 
Amortization of intangible assets     
related to acquisitions, net of taxes    86    75 
M&A related cost, net of taxes      125      -- 
Non-GAAP net income      1,065      1,010 
        
GAAP diluted earnings per share   $  0.05   $  0.05 
        
Non-GAAP diluted earnings per share:   $  0.07   $  0.07 
      
      
*Stock based compensation included in totalcosts and expenses is as follows:
 
Cost of service revenues    91    91 
Sales and marketing expenses    10    10 
General and admin. expenses      134      135 
Total stock-based compensation      235      236 

(1) This table presents a reconciliation of GAAP to non-GAAP income from operations, net income and diluted earnings per share for the three monthsended March 31, 2010 and 2009. 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)  
       
ASSETS  
     
    March 31, 2010
   December 31, 2009
 
Current assets:        
Cash and cash equivalents   $  13,469     $  14,570  
Accounts receivable, net    10,107      10,966  
Prepaid expenses and other        
current assets    1,963      1,869  
Deferred income taxes      2,970        3,370  
Total current assets    28,509      30,775  
Property & equipment, net    11,118      9,040  
Intangibles, net    2,928      1,969  
Goodwill    34,327      32,933  
Deferred income taxes    35      -  
Other assets    621      620  
     
Total assets   $  77,538     $  75,337  
     
LIABILITIES AND STOCKHOLDERS' EQUITY  
   
Current liabilities:        
Accounts payable   $  4,229     $  3,899  
Accrued expenses and        
other current liabilities    3,787      4,134  
Deferred revenue    13,031      14,256  
Current liability for        
acquisition earn-out      1,220        1,184  
Total current liabilities    22,267      23,473  
Long-term liability for acquisition earn-out    1,715      1,657  
Deferred income taxes    1,034      1,167  
Other liability      586        505  
Total liabilities      25,602        26,802  
     
Stockholders' equity:        
Common stock    4      4  
Additional paid-in capital    45,871      43,104  
Contingent consideration    1,309      1,309  
Retained earnings    4,750      4,039  
Accumulated other        
comprehensive income      2        79  
Total stockholders' equity      51,936        48,535  
     
Total liabilities &        
stockholders' equity   $  77,538     $  75,337  
           
BIOCLINICA, INC. AND SUBSIDIARIES
 
Consolidated Statements of Cash Flows
 
(In thousands) 
(unaudited) 
     
       For the Three Months Ended
 
    03/31/10
    03/31/09
  
Cash flows from operating activities:       
Net income     711     786   
Adjustments to reconcile net income to net cash provided by       
Operating activities:       
Depreciation and amortization     728     486   
Provision for deferred income taxes     163     854   
Accretion of acquisition earn-out     94     --   
Bad debt recovery     (9  )    (11  )  
Stock based compensation expense     235     204   
Changes in operating assets and liabilities:       
Decrease in accounts receivable     1,246     2,268   
(Increase) decrease in prepaid expenses and       
other current assets     (168  )    268   
Decrease in other assets     11     90   
Decrease in accounts payable     (153  )    (365  )  
Decrease in accrued expenses and other current liabilities     (624  )    (2,287  )  
Decrease in deferred revenue     (1,218  )    (1,723  )  
Increase (decrease) in other liabilities       122       (1  )  
Net cash provided by operating activities    $  1,138    $  569   
     
Cash flows from investing activities:       
Purchases of property and equipment     (2,255  )    (397  )  
Net cash received for sale of assets of discontinued operations       --       500   
Net cash (used in) provided by investing activities    $  (2,255  )   $  103   
     
Cash flows from financing activities:       
Payments under equipment lease obligations     --     (19  )  
Excess tax benefit related to stock options     27     --   
Proceeds from exercise of stock options       38       --   
Net cash provided by (used in) financing activities    $  65    $  (19  )  
     
Effect of exchange rate changes on cash     (49  )    (35  )  
     
Net (decrease) increase in cash and cash equivalents     (1,101  )    618   
Cash and cash equivalents at beginning of period       14,570       14,265   
     
Cash and cash equivalents at end of period    $  13,469    $  14,883   


Contacts
BioClinica, Inc.
Jim Dorsey, 267-757-3040
or
Porter, LeVay & Rose, Inc.
Investor Contact - Linda Decker
Financial Media - Bill Gordon
212-564-4700
or
Diccicco Battista Communications
Trade Media Contact - Beth Nestlerode
215-957-0300