BioClinica Announces First Quarter 2011 Financial Results

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

NEWTOWN, Pa.--(BUSINESS WIRE)--BioClinica^®, Inc. (NASDAQ: BIOC), a leading global provider of clinical trial management solutions, today announced its financial results for the first quarter ended March 31, 2011.

Financial highlights for the quarter ended March 31, 2011 include:

• Service revenues were $16.1 million as compared with $14.7 million for the same period 2010.
• GAAP income from operations was $567,000, including a restructuring charge of $679,000, as compared with $1.2 million for the same period 2010.
• GAAP net income was $351,000, or $0.02 per fully diluted share, including a restructuring charge of $426,000 or $0.03 per share, as compared with $711,000, or $0.05 per fully diluted share, for the same period 2010.
• Non-GAAP income from operations was $1.8 million as compared with $1.7 million for the same period 2010.
• Non-GAAP net income was $1.2 million, or $0.07 per fully diluted share, as compared to $1.1 million, or $0.07 per fully diluted share, for the same period 2010.
• Backlog was $111.3 million as compared with $99.7 million for the same period 2010.

Mark L. Weinstein, President and Chief Executive Officer of BioClinica said, “Our results for the quarter reflect our successful acquisition and organic growth strategies. Over the past three years we have transformed BioClinica into an integrated provider of a full suite of technology-enhanced clinical trial solutions including Medical Imaging Solutions, EDC, IVR/IWR and CTMS. This quarter represents our 5th consecutive quarter of year-over-year growth in service revenue, reflecting the traction we have made in the industry as clients look to us to provide a broad array of services.”

Highlights of our quarter include:

• We signed seven new agreements for Trident IWR, our recently launched solution that enables clinical operations personnel to intuitively set up, monitor and maintain randomization supplies for clinical trials in a fraction of the time previously required. Trident’s ability to efficiently build and deploy complex trials without the need for programming, has been instrumental in our building of market share.

• Millennium: The Takeda Oncology Company, signed an agreement for our new Enterprise Demand Aggregator (“EDA”) product. With this agreement, Millennium Pharmaceuticals becomes the first licensed customer of EDA, which greatly extends BioClinica Optimizer capabilities.
• We experienced continuing interest in our clinical trial management system (“CTMS”) which leverages the power and ease of use of Microsoft SharePoint, and helps sponsors and CROs efficiently access, share and analyze operational clinical trial data in real-time.
• We established a strategic partnership with Symbiance, a specialty contract research organization, who joins our expanding Certified Partner Program.
• The implementation of our BioPACS™ imaging management system and release of our integrated BioREAD™ image review software continues to provide efficiencies to our entire organization. We have begun to realign our global resources to eliminate certain duplicate functions and reduce operating expenses. During the quarter we recorded a $679,000 or $0.03 per share charge, primarily comprised of severance and facility restructuring costs. The remaining $900,000 charge will be taken during the second and third quarters of 2011. The restructuring is expected to result in $1.2 million, or $0.05 per share, in annual operating expense savings.
• During the first quarter, we repurchased 37,613 shares of BioClinica stock at an average price of $5.02 per share, as part of our stock repurchase program. At the end of the first quarter, there was $1,795,000 of funds remaining that may yet be used to repurchase shares under the plan that originally authorized purchases up to $2 million.
• We ended the quarter with a strong balance sheet, including $10.2 million in cash and cash equivalents, positioning us well for future growth.

“We currently work with more than 200 pharmaceutical and medical device companies and CROs. These companies range in size from the largest to virtual and the projects transcend all phases of the clinical trial process. BioClinica is well-positioned to continue to win new clients and to expand our relationships with our current clients based on our comprehensive product portfolio, which includes medical image management, full service EDC including Data Management, IVR and CTMS.” Mr. Weinstein added, “Our go-to-market strategy continues to be to provide our clients with a blend of services and technology that results in best-in-class clinical research solutions. We have made the investments necessary and will drive increased shareholder value by leveraging our global operational capabilities and sales and marketing organization as we provide these solutions.”

Mr. Weinstein concluded, “Our $111.3 million backlog, an 11.6 percent increase from last year, is indicative of customer acceptance and our ability to convert our proposal pipeline into signed agreements. With this strong backlog, and our expectations to continue to strengthen our suite of services and expand our customer relationships, we remain on track to achieve our previously issued guidance. We are reiterating our expectations for 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 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 [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# 371242. 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 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 –

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
		For the Three Months Ended
		03/31/11		3/31/10
	Service revenues		16,144		14,746
	Reimbursement revenues		3,521		3,358
	Total revenues	$	19,665	$	18,104
	Costs and expenses:
	Cost of service revenues		10,557		8,951
	Cost of reimbursement revenues		3,521		3,358
	Sales & marketing expenses		1,860		2,210
	General & admin. expenses		2,222		2,072
	Amortization of intangible assets
	related to acquisitions		156		141
	Mergers & acquisition related costs		103		205
	Restructuring costs		679		-
	Total cost and expenses		19,098		16,937
	Income from operations		567		1,167
	Interest income (expense) – net		(7)		3
	Income before income tax		560		1,170
	Income tax provision		209		459
	Net income		351		711
	Basic earnings per share	$	0.02	$	0.05
	Weighted average number
	of shares - basic		15,652		14,545
	Diluted earnings per share	$	0.02	$	0.05
	Weighted average number of
	shares – diluted		16,417		15,382

BIOCLINICA, INC. AND SUBSIDIARIES
GAAP to non-GAAP Reconciliation (1)
(In thousands, except per share data)
(unaudited)
		For the Three Months Ended
		03/31/11			03/31/10
	GAAP income from operations		567		1,167
	Stock-based compensation*		341		235
	Amortization of intangible assets
	related to acquisitions		156		141
	Merger & acquisition related costs		103		205
	Restructuring charges		679		--
	Non-GAAP income from operations		1,846		1,748
	GAAP net income		351		711
	Stock-based compensation, net of taxes		214		143
	Amortization of intangible assets
	related to acquisitions, net of taxes		98		86
	M&A related cost, net of taxes		65		125
	Restructuring charges, net of taxes		426		--
	Non-GAAP net income (2)		1,154		1,065
	GAAP diluted earnings per share	$	0.02	$	0.05
	Non-GAAP diluted earnings per share	$	0.07	$	0.07
	*Stock based compensation included in total costs and expenses is as follows:
	Cost of service revenues		245		160
	Sales and marketing expenses		44		40
	General and admin. expenses		52		35
	Total stock-based compensation		341		235

(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 ended March 31, 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%

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(unaudited)
ASSETS
	March 31, 2011			December 31, 2010
Current assets:
Cash and cash equivalents	$	10,203		$	10,443
Accounts receivable, net		12,644			11,866
Prepaid expenses and other
current assets		2,622			2,501
Deferred income taxes		3,729			3,625
Total current assets		29,198			28,435
Property & equipment, net		14,564			14,029
Intangibles, net		2,275			2,430
Goodwill		34,302			34,302
Deferred income taxes		119			128
Other assets		727			705
Total assets	$	81,185		$	80,029
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,553		$	1,983
Accrued expenses and
other current liabilities		3,203			4,283
Deferred revenue		13,174			13,395
Current maturities of capital
lease obligations		180			168
Total current liabilities		20,110			19,829
Long-term capital lease obligations		657			710
Long-term liability for acquisition
earn-out		1,943			1,886
Deferred income taxes		1,990			1,845
Other liability		1,002			880
Total liabilities		25,702			25,150
Stockholders’ equity:
Common stock		4			4
Treasury stock		(204	)		(16	)
Additional paid-in capital		48,450			48,074
Retained earnings		7,143			6,792
Accumulated other
comprehensive income		90			25
Total stockholders’ equity		55,483			54,879
Total liabilities &
stockholders’ equity	$	81,185		$	80,029

BIOCLINICA, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
		For the Three Months Ended
		03/31/11			03/31/10
	Cash flows from operating activities:
	Net income		351			711
	Adjustments to reconcile net income to net cash provided by
	Operating activities:
	Depreciation and amortization		1,030			728
	Stock based compensation expense		341			235
	Provision for deferred income taxes		41			163
	Bad debt (recovery) expense		--			(9	)
	Accretion of acquisition earn-out		57			94
	Changes in operating assets and liabilities:
	(Increase) decrease in accounts receivable		(778	)		1,246
	Increase in prepaid expenses and
	other current assets		(111	)		(168	)
	(Increase) decrease in other assets		(22	)		11
	Increase (decrease) in accounts payable		1,435			(153	)
	Decrease in accrued expenses and
	other current liabilities		(1,077	)		(624	)
	Decrease in deferred revenue		(221	)		(1,218	)
	Increase in other liabilities		122			122
	Net cash provided by operating activities	$	1,168		$	1,138
	Cash flows from investing activities:
	Purchases of property and equipment		(303	)		(867	)
	Capitalized software development costs		(977	)		(1,388	)
	Net cash used in investing activities	$	(1,280	)	$	(2,255	)
	Cash flows from financing activities:
	Payments under equipment lease obligations		(40	)		--
	Purchase of treasury stock		(188	)		--
	Proceeds from exercise of stock options		35			38
	Excess tax benefit related to stock options		--			27
	Net cash provided by (used in) financing activities	$	(193	)	$	65
	Effect of exchange rate changes on cash		65			(49	)
	Net decrease in cash and cash equivalents		(240	)		(1,101	)
	Cash and cash equivalents at beginning of period		10,443			14,570
	Cash and cash equivalents at end of period	$	10,203		$	13,469