BioClinica Announces Third Quarter 2011 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 management and technology solutions, today announced its financial results for the third quarter and nine months ended September 30, 2011.

Financial highlights for the three months ended September 30, 2011 include:

• Service revenues increased 4.1% to $16.6 million as compared with $16.0 million for the same period in 2010.
• GAAP operating income was $479,000 (which included a restructuring charge of $1.0 million) as compared with $1.3 million for the same period in 2010.
• GAAP net income was $358,000, or $0.02 per fully diluted share (which included a restructuring charge of $676,000, or $0.04 per share) as compared with $808,000, or $0.05 per fully diluted share, for the same period in 2010.
• Non-GAAP operating income increased 8.2% to $2.0 million as compared with $1.9 million for the same period in 2010.
• Non-GAAP net income increased to $1.4 million as compared with $1.2 million for the same period in 2010; on a fully diluted basis, non-GAAP earnings per share increased to $0.08 per fully diluted share as compared with $0.07 per fully diluted share reported for the same period in 2010.
• Backlog increased 8.7% to $115.6 million as of September 30, 2011 as compared with $106.3 million as of September 30, 2010.

Financial highlights for the nine months ended September 30, 2011 include:

• Service revenues increased 7.4% to $49.7 million as compared with $46.2 million for the same period in 2010.
• GAAP operating income was $2.5 million as compared with $3.1 million for the same period in 2010.
• GAAP net income was $1.6 million, or $0.10 per fully diluted share, as compared with $1.9 million, or $0.12 per fully diluted share, for the same period in 2010.
• Non-GAAP operating income increased 17.5% to $5.9 million as compared with $5.0 million for the same period in 2010.
• Non-GAAP net income increased to $3.8 million as compared with $3.1 million for the same period in 2010; on a fully diluted basis, non-GAAP earnings per share increased to $0.23 per fully diluted share as compared with $0.20 per fully diluted share reported for the same period in 2010.

“We continue to build our reputation in the industry for providing superior integrated clinical research technology solutions to our clients. With a full range of hosted and SaaS solutions, we support a growing number of clinical trials across the world,” said Mark L. Weinstein, President and CEO of BioClinica. “Our third quarter results reflect the progress we have made as our clients seek improved speed and efficiency to implement and execute their clinical trials. These improvements reflect the momentum that is building across all areas of our business, including increased interest in our core medical imaging services, Express EDC, OnPoint CTMS, Optimizer and Trident IVR/IWR. In addition to a growing revenue base, our continued development of our BioPACS™ imaging management system is resulting in efficiency gains that have contributed to improved year-over-year non-GAAP operating income.”

“Further, as clinical trial sponsors continue to reduce the number of vendors they use by selecting providers who can fulfill more of their clinical trial software and imaging needs, BioClinica’s best-of-breed, interoperable platforms are gaining more traction across the industry. In addition to a growing base of pharmaceutical and medical device clients, we are also experiencing increased interest from leading CROs to serve as their preferred providers for their global clinical trials,” Mr. Weinstein continued.

Two weeks ago BioClinica hosted its first annual eClinical users conference at the Microsoft Technology Center in Malvern, Pennsylvania. The two-day meeting was attended by over 80 current and prospective clients that ranged from the largest pharmaceutical and medical device companies to small biotech companies. In commenting on the successful conference, Mr. Weinstein said, “Some of the most rewarding results of this conference were hearing our current clients talk about how satisfied they are with the solutions we provide them, and having them share their ideas on how we can continue to further advance our products and services.”

“With increased sales of our products and a strong backlog, we are on track to meet 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 $0.07 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,” he concluded.

During the third quarter, BioClinica purchased 51,700 shares of its stock at an average price of $4.81 per share, as part of its stock repurchase program. For the nine months ended September 30, 2011, BioClinica purchased 156,713 shares of its stock at an average price of $5.04 per share. At September 30, 2011, there was $1.2 million of funds remaining that may yet be used to repurchase shares under the plan that originally authorized purchases up to $2 million.

Conference Call Information

Management of BioClinica, Inc. will host a conference call 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 # 380957. 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 BioClinica’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 BioClinica’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 BioClinica’s control. The factors discussed herein and expressed from time to time in BioClinica’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 BioClinica undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstance. You should review the BioClinica’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				For the Nine Months Ended
	09/30/11		09/30/10		09/30/11		09/30/10
Service revenues		16,623		15,969		49,658		46,248
Reimbursement revenues		4,847		2,352		11,887		9,413
Total revenues	$	21,470	$	18,321	$	61,545	$	55,661
Costs and expenses:
Cost of service revenues		10,434		10,212		31,432		29,109
Cost of reimbursement revenues		4,847		2,352		11,887		9,413
Sales & marketing expenses		2,081		2,090		6,324		6,865
General & admin. expenses		2,434		2,069		7,027		6,057
Amortization of intangible assets
related to acquisitions		155		194		467		473
Mergers & acquisition related costs	-			119		162		635
Restructuring costs		1,040	-			1,719	-
Total cost and expenses		20,991		17,036		59,018		52,552
Operating income		479		1,285		2,527		3,109
Interest income (expense) – net		(12)		10		(26)		11
Income before income tax		467		1,295		2,501		3,120
Income tax provision		109		487		868		1,198
Net income		358		808		1,633		1,922
Basic earnings per share	$	0.02	$	0.05	$	0.10	$	0.13
Weighted average number
of shares - basic		15,640		15,174		15,645		14,958
Diluted earnings per share	$	0.02	$	0.05	$	0.10	$	0.12
Weighted average number of
shares – diluted		16,383		15,796		16,515		15,730

BIOCLINICA, INC. AND SUBSIDIARIES GAAP to non-GAAP Reconciliation (1) (In thousands, except per share data) (unaudited)
	For the Three Months Ended				For the Nine Months Ended
	09/30/11		09/30/10		09/30/11		09/30/10
GAAP operating income		479		1,285		2,527		3,120
Stock-based compensation*		349		271		1,021		791
Amortization of intangible assets
related to acquisitions		155		194		467		473
Merger & acquisition related costs		--		119		162		635
Restructuring charges		1,040		--		1,719		--
Non-GAAP operating income		2,023		1,869		5,896		5,019
GAAP net income		358		808		1,633		1,922
Stock-based compensation, net of taxes		227		167		664		487
Amortization of intangible assets
related to acquisitions, net of taxes		101		120		304		291
M&A related cost, net of taxes		--		73		105		391
Restructuring charges, net of taxes		676		--		1,117		--
Non-GAAP net income		1,362		1,168		3,823		3,091
GAAP diluted earnings per share	$	0.02	$	0.05	$	0.10	$	0.12
Non-GAAP diluted earnings per share	$	0.08	$	0.07	$	0.23	$	0.20
*Stock based compensation included in total costs and expenses is as follows:
Cost of service revenues		120		97		351		284
Sales and marketing expenses		11		13		30		37
General and admin. expenses		218		161		640		470
Total stock-based compensation		349		271		1,021		791
(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 nine months ended September 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 34.9%.

BIOCLINICA, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands) (unaudited)
ASSETS
	September 30, 2011		December 31, 2010
Current assets:
Cash and cash equivalents	$	12,292	$	10,443
Accounts receivable, net		13,482		11,866
Prepaid expenses and other
current assets		2,594		2,501
Deferred income taxes		4,098		3,625
Total current assets		32,466		28,435
Property & equipment, net		15,459		14,029
Intangibles, net		1,963		2,430
Goodwill		34,302		34,302
Deferred income taxes		87		128
Other assets		748		705
Total assets	$	85,025	$	80,029
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,168	$	1,983
Accrued expenses and
other current liabilities		4,185		4,283
Deferred revenue		13,377		13,395
Current maturities of capital
lease obligations		342		168
Long-term liability for acquisition
earn-out		2,000	-
Total current liabilities		22,072		19,829
Long-term capital lease obligations		1,296		710
Long-term liability for acquisition
earn-out	-			1,886
Deferred income taxes		3,107		1,845
Other liability		1,621		880
Total liabilities		28,096		25,150
Stockholders’ equity:
Common stock	4		4
Treasury stock		(800)		(16)
Additional paid-in capital		49,231		48,074
Retained earnings		8,425		6,792
Accumulated other
comprehensive income		69		25
Total stockholders’ equity		56,929		54,879
Total liabilities &
stockholders’ equity	$	85,025	$	80,029

BIOCLINICA, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) (unaudited)
	For the Nine Months Ended
	09/30/11		09/30/10
Cash flows from operating activities:
Net income		1,633		1,922
Adjustments to reconcile net income to net cash provided by
Operating activities:
Depreciation and amortization		3,310		2,501
Provision for deferred income taxes		829		47
Bad debt recovery		(15)		(9)
Stock based compensation expense		1,019		791
Accretion of acquisition earn-out		114		245
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(1,603)		278
Increase in prepaid expenses and
other current assets		(89)		(625)
(Increase) decrease in other assets		(42)		17
Increase (decrease) in accounts payable		113		(199)
Decrease in accrued expenses and
other current liabilities		(89)		(1,136)
Decrease in deferred revenue		(19)		(1,127)
Increase in other liabilities		742		368
Net cash provided by operating activities	$	5,903	$	3,073
Cash flows from investing activities:
Purchases of property and equipment		(1,352)		(2,296)
Capitalized software development costs		(2,843)		(3,783)
Net cash used in investing activities	$	(4,195)	$	(6,079)
Cash flows from financing activities:
Proceeds from sale/leaseback		918		195
Payments under equipment lease obligations		(157)		--
Purchase of treasury stock		(784)		--
Excess tax benefit related to stock options		--		35
Proceeds from exercise of stock options		138		21
Net cash provided by financing activities	$	115	$	251
Effect of exchange rate changes on cash		26	1
Net increase (decrease) in cash and cash equivalents		1,849		(2,754)
Cash and cash equivalents at beginning of period		10,443		14,570
Cash and cash equivalents at end of period	$	12,292	$	11,816