BioClinica Announces Fourth Quarter and Year End 2010 Financial Results

Conference Call Today at 11:00 A.M. EST

NEWTOWN, Pa.--(BUSINESS WIRE)--BioClinica^®, Inc. (NASDAQ: BIOC), a global provider of clinical trial services, today announced its financial results for the fourth quarter and year ended December 31, 2010.

Financial highlights for the quarter ended December 31, 2010 include:

• Service revenues were $16.5 million as compared with $14.9 million for the same period 2009.
• GAAP income from operations was $1.2 million as compared with $1.6 million for same period 2009.
• GAAP net income was $831,000, or $0.05 per fully diluted share, as compared with $943,000, or $0.06 per fully diluted share, for the same period 2009.
• Non-GAAP income from operations was $1.8 million as compared with $2.0 million for the same period 2009.
• Non-GAAP net income was $1.2 million, or $0.08 per fully diluted share, as compared to $1.2 million, or $0.08 per fully diluted share, for the same period 2009.
• Backlog was $110.7 million as compared with $98.7 million for the same period 2009.

Financial highlights for the year ended December 31, 2010 include:

• Service revenues were $62.7 million as compared with $57.4 million for the same period 2009.
• GAAP income from operations was $4.3 million as compared with $4.7 million for the same period 2009.
• GAAP net income was $2.8 million, or $0.17 per fully diluted share, as compared with $3.0 million, or $0.20 per fully diluted share, for the same period 2009.
• Non-GAAP income from operations was $6.8 million as compared with $7.1 million for the same period 2009.
• Non-GAAP net income was $4.3 million, or $0.27 per fully diluted share, as compared with $4.5 million, or $0.30 per fully diluted share, for the same period 2009.

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, “Our strategy to expand our suite of clinical trial solutions has proven to be successful in making us a stronger, more competitive company than ever before in our twenty-year history. During 2010 we fully integrated our acquisitions, strengthened our service offerings and launched several new products, while also making technological advances with respect to our existing services. This strategy is enabling us to attract new clients, both large and small, and to provide additional services to the more than 150 companies that we currently work with. There is a growing awareness that efficiencies need to be brought to the clinical trial process and we believe that with our current portfolio of products and services, we are very well-positioned to be part of the solution.”

Some of the highlights of BioClinica’s record year included:

• New product launches — Trident, Optimizer, WebSend, WebView
• Acquisition of TranSenda International
• Several large multi-year enterprise agreements were signed with leading pharma companies, as described below:
  • GlaxoSmithKline is deploying our Trident IWR product across its Phase I-IV clinical trials.
  • Cephalon entered into an outsourcing agreement with us for clinical trial technology and support services to centralize and streamline its clinical data management operations.
  • We entered into an agreement with another top 10 pharmaceutical client to utilize our BioClinica Optimizer product, making this the sixth of the top 10 pharma companies utilizing this product.
  • We entered into an agreement with another top 10 pharmaceutical client to use our BioClinica Express product with full data management services on approximately 200 studies per year.
• We hired a Chief Technology Officer and realigned our technology resources to ensure that all of our technology offerings are “best in class” and to ensure that we continue to move towards truly unified clinical trial solutions.

In December 2010 the Board of Directors authorized a share repurchase program of up to $2.0 million of the Company’s common stock over the next eighteen months. During December 2010, we purchased 3,500 shares at an average purchase price of $4.62 per share.

Mr. Weinstein continued, “The launch of our BioPacs imaging management system and the release of our integrated BioRead image review software further enhances the quality of our imaging corelab service offering and has enabled us to gain efficiencies by better utilizing resources across our U.S. and European operations. As a result, in 2011, we are realigning our global resources to eliminate certain duplicate functions and expect to take a total restructuring charge, primarily comprised of severance and facility restructuring costs, of $1.6 million, or $0.06 per fully diluted share, with half to be incurred in the first quarter and the other half to be incurred during the second and third quarters of this year. When fully implemented we expect annual operating savings achieved to benefit earnings per diluted share by $0.05 per share.

Mr. Weinstein concluded, “Our backlog of $110.7 million, which is a 12 percent increase from last year, is a good indicator that we are being successful in converting our strong proposal pipeline into contracts. With our strengthened suite of services, the increased level of proposal activity and our improved backlog, we expect our full year 2011 service revenue 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 share, and our full-year non-GAAP EPS to be in the range of $0.30 to $0.35 per share.”

Conference Call Information

Management of BioClinica, Inc. will host a conference today at 11:00 a.m. EST. Those who wish to participate in the conference call may telephone [phone] from the U.S.; international callers may telephone [phone], 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# 365105. 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, 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 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.

- FINANCIAL TABLES TO FOLLOW –

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
	For the Three Months Ended				For the Year Ended
	12/31/2010		12/31/2009		12/31/10		12/31/2009
Service revenues		16,466		14,851		62,714		57,393
Reimbursement revenues		3,061		5,366		12,474		15,330
Total revenues	$	19,527	$	20,217	$	75,188	$	72,723
Costs and expenses:
Cost of service revenues		10,450		9,024		39,559		35,630
Cost of reimbursement revenues		3,061		5,366		12,474		15,330
Sales & marketing expenses		2,139		2,113		9,004		8,052
General & admin. expenses		2,389		1,871		8,446		7,414
Amortization of intangible assets
related to acquisitions		165		145		638		489
Mergers & acquisition related costs		114		94		749		654
Restructuring costs		-		-		-		466
Total cost and expenses		18,318		18,613		70,870		68,035
Income from operations		1,209		1,604		4,318		4,688
Interest income (expense) – net		-		(3)		11		28
Income before income tax		1,209		1,601		4,329		4,716
Income tax provision		378		658		1,576		1,757
Net income		831		943		2,753		2,959
Basic earnings per share	$	0.06	$	0.07	$	0.18	$	0.21
Weighted average number
of shares - basic		15,246		14,358		15,035		14,354
Diluted earnings per share	$	0.05	$	0.06	$	0.17	$	0.20
Weighted average number of
shares – diluted		15,960		15,158		15,874		15,100

BIOCLINICA, INC. AND SUBSIDIARIES
GAAP to non-GAAP Reconciliation (1)
(In thousands, except per share data)
(unaudited)
	For the Three Months Ended				For the Year Ended
	12/31/10		12/31/09		12/31/10		12/31/09
GAAP income from operations		1,209		1,604		4,318		4,688
Stock-based compensation*		289		161		1,080		760
Amortization of intangible assets
related to acquisitions		165		145		638		489
Merger & acquisition related costs		114		94		749		654
Restructuring charges		--		--		--		466
Non-GAAP income from operations		1,777		2,004		6,785		7,057
GAAP net income		831		943		2,753		2,959
Stock-based compensation, net of taxes		199		91		687		480
Amortization of intangible assets
related to acquisitions, net of taxes		113		85		406		309
M&A related cost, net of taxes		78		49		476		413
Restructuring charges, net of taxes		--		--		--		295
Non-GAAP net income (2)		1,221		1,168		4,322		4,456
GAAP diluted earnings per share	$	0.05	$	0.06	$	0.17	$	0.20
Non-GAAP diluted earnings per share	$	0.08	$	0.08	$	0.27	$	0.30
*Stock based compensation included in total costs and expenses is as follows:
Cost of service revenues		202		127		750		598
Sales and marketing expenses		41		17		171		81
General and admin. expenses		46		17		159		81
Total stock-based compensation		289		161		1,080		760

(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 year ended December 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.

(2) The effective tax rate used for fiscal 2010 is 36.4%

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(unaudited)
ASSETS
	December 31, 2010		December 31, 2009
Current assets:
Cash and cash equivalents	$	10,443	$	14,570
Accounts receivable, net		11,866		10,966
Prepaid expenses and other
current assets		2,427		1,869
Deferred income taxes		4,011		3,370
Total current assets		28,747		30,775
Property & equipment, net		14,029		9,040
Intangibles, net		2,430		1,969
Goodwill		34,327		32,933
Deferred income taxes		1,358		-
Other assets		705		620
Total assets	$	81,596	$	75,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,983	$	3,899
Accrued expenses and
other current liabilities		4,283		4,134
Deferred revenue		13,395		14,256
Deferred income tax		411		-
Current liability for
acquisition earn-out		-		1,184
Current maturities of capital
lease obligations		168		-
Total current liabilities		20,240		23,473
Long-term liability for acquisition earn-out		1,886		1,657
Long-term maturities of capital lease
Obligations		710		-
Deferred income taxes		3,001		1,167
Other liability		880		505
Total liabilities		26,717		26,802
Stockholders’ equity:
Common stock		4		4
Treasury stock		(16)		--
Additional paid-in capital		48,074		43,104
Contingent consideration		--		1,309
Retained earnings		6,792		4,039
Accumulated other
comprehensive income		25		79
Total stockholders’ equity		54,879		48,535
Total liabilities &
stockholders’ equity	$	81,596	$	75,337

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
	For the Year Ended
	12/31/10			12/31/09
Cash flows from operating activities:
Net income		2,753			2,959
Adjustments to reconcile net income to net cash provided by
Operating activities:
Depreciation and amortization		3,452			2,711
Stock based compensation expense		1,080			760
Provision for deferred income taxes		348			336
Bad debt (recovery) expense		(9	)		93
Accretion of acquisition earn-out		302			94
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(682	)		1,802
(Increase) decrease in prepaid expenses and
other current assets		(620	)		447
Decrease in other assets		(67	)		(30	)
(Decrease) increase in accounts payable		(1,848	)		403
Decrease in accrued expenses and
other current liabilities		(195	)		(1,100	)
Decrease in deferred revenue		(855	)		(852	)
Increase (decrease) in other liabilities		388			(71	)
Net cash provided by operating activities	$	4,047		$	7,552
Cash flows from investing activities:
Purchases of property and equipment		(2,981	)		(2,763	)
Capitalized software development costs		(4,212	)		(1,806	)
Net cash paid for acquisitions, net of cash acquired		--			(3,144	)
Net cash paid for acquisition earn-out		(1,257	)		--
Net cash received for sale of assets of discontinued operations		--			500
Net cash used in investing activities	$	(8,450	)	$	(7,213	)
Cash flows from financing activities:
Proceeds from sale/leaseback		195			-
Payments under equipment lease obligations		-			(118	)
Purchase of treasury stock		(15	)		-
Proceeds from exercise of stock options		67			31
Excess tax benefit related to stock options		46			44
Net cash provided by (used in) financing activities	$	293		$	(43	)
Effect of exchange rate changes on cash		(17	)		9
Net (decrease) increase in cash and cash equivalents		(4,127	)		305
Cash and cash equivalents at beginning of period		14,570			14,265
Cash and cash equivalents at end of period	$	10,443		$	14,570