Bioanalytical Systems, Inc. (NASDAQ:BASI) today announced financial results for the third quarter and first nine months of fiscal 2012, highlighted by a return to operating profitability before restructuring charges for the third quarter.
"The benefits of the restructuring program we announced just a few months ago are clearly evident in our third quarter financial performance. As anticipated, revenue decreased compared to last year's third quarter but increased sequentially compared to the second quarter. The company delivered earnings before interest taxes depreciation amortization, restructuring and non-cash compensation expenses (EBITDAR) of $716,000 for this year's third quarter, as compared to a negative EBITDAR of $1,021,000 for the 2012 second quarter and a negative EBITDAR of $704,000 for the first quarter of fiscal 2012," said Interim President & CEO and CFO Jacqueline Lemke.
"We completed our downsizing at the end of July, including all planned headcount reductions and the consolidation of our Oregon lab into our West Lafayette facility. We are now in the process of closing our UK lab. This closure will be substantially complete by the end of this month. This streamlining has permanently reduced our costs and improved capacity utilization while allowing us to continue providing the high quality services and instruments our clients expect from BASi. We are on track to deliver at least $4.5 million of annual operating cost reductions once our restructuring is fully implemented.
"The decrease in this year's third quarter revenue compared to the third quarter of fiscal 2011 was primarily due to lower toxicology services revenue, as well as the run-off of bioanalytical projects in the UK that were not replaced due to the closure of this facility. Encouragingly, pharmacological and discovery services and instrument sales for this year's third quarter returned to the higher levels reported in the first quarter. While we expect fourth quarter revenue to be about equal to this year's third quarter, despite the absence of revenue from the UK facility, EBITDAR should increase sequentially in the fourth quarter versus the third as our costs continue to fall. We also are evaluating options to refinance the current mortgage debt on our balance sheet prior to its maturity in November.