[COMPANY LOGO] Exhibit 99.1
For Immediate Release
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Contacts:
Mark L. Weinstein Porter, LeVay & Rose, Inc.
President & Chief Executive Officer Linda Decker, VP-Investor Relations
Tel: (267) 757-3039 Jeff Myhre, VP-Editorial
Christian Pflaumer, VP-Media Relations
Ted I. Kaminer Tel: (212) 564-4700
Chief Financial Officer
Tel: (267) 757-3189
BIO-IMAGING TECHNOLOGIES REPORTS RECORD SECOND QUARTER REVENUES AND
OPERATING INCOME
Service Revenue Grows 22%; Operating Income up 38%
NEWTOWN, PA, August 13, 2003 - Bio-Imaging Technologies, Inc., ("Bio-Imaging")
(AMEX: BIT) today announced its financial results for the second quarter and six
months ended June 30, 2003.
Total revenue for the second quarter 2003 increased 22% to $6.17 million,
compared with $5.06 million in the prior year second quarter. Service revenues,
which management believes is the key revenue component to measure the Company's
top line performance, also surged 22% to $5.36 million in the second quarter of
2003 from $4.39 million during the same period in 2002. The backlog increased to
$37.9 million as of June 30, 2003 from $34.6 million year over year, an increase
of 9.4%, and from $36.3 million at the end of the first quarter of 2003.
These revenues were generated from 50 clients encompassing 118 distinct
projects, down slightly from the 54 clients and 126 projects that generated
second quarter 2002 revenues. The decrease in the number of clients and projects
is primarily due to the sales and marketing efforts being focused on larger
clinical trials.
Operating income for second quarter 2003 increased 37% to a record $512,000 as
compared to $372,000 during the same prior year period.
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Second quarter 2003 income before income tax increased 37% to $469,000 from
$340,000 in the second quarter of 2002. Income tax provision rose to $124,000
for the second quarter of 2003 from $49,000 in the second quarter of 2002; this
was the result of the increase in the Company's effective tax rate in the second
quarter of 2003 as compared to the prior year second quarter. Accordingly, the
increase in income before income taxes was offset by the increase in the income
tax provision.
The Company's effective tax rate for the second quarter of 2003 was 26.5% as
compared to 14.5% for the prior year second quarter because of diminishing
levels of state and federal net operating losses available to the Company in
2003. The increase in the effective tax rate resulted in net income of $345,000,
or $0.03 earnings per diluted share in the second quarter of 2003 as compared to
net income of $291,000, or $0.03 earnings per diluted share in the second
quarter of 2002.
Mark L. Weinstein, President and Chief Executive Officer of Bio-Imaging, said,
"The second quarter of 2003 was the 12th consecutive profitable quarter, during
a period in which we made the necessary expenditures to position Bio-Imaging for
long-term growth."
Mr. Weinstein also said, "In the last six months, we have consolidated our
physical plants in the US, integrating the assets from our Quintiles Intelligent
Imaging acquisition into our Newtown, PA, operations. Also in the last several
months, we have added some top managerial talent, and we have expanded our
offices in Leiden, Netherlands."
For the six months ended June 30, 2003, total revenues were up over 20% at
$11.87 million compared with $9.8 million in total revenue for the half year
ended June 30, 2002. Service revenues rose to $10.46 million for the first
half-year 2003 from $8.26 million for the first half-year 2002.
Income before income tax provision for the first half year of 2003 was $835,000
up from $660,000 in the first half year of 2002. Income tax provision rose to
$234,000 for the first six months of 2003 up from $72,000 for the first six
months of 2002. Again, this reflected the diminishing levels of state and
federal net operating losses available to the Company in 2003.
As a result, net income was up marginally at $601,000, or $0.06 per diluted
share, for the first six months of 2003 compared with $588,000, or $0.06 per
diluted share for the first six months of 2002.
Mr. Weinstein added, "Looking ahead, we foresee an increase in the utilization
of medical imaging in clinical trials for two reasons. First, regulatory
requirements will drive demand, and second, the technology of medical imaging
continually improves, making it increasingly valuable as a clinical tool."
He continued, "We are bullish on the growth in our market. Over the past three
years, we believe we have proved our operational model with sequential growth in
revenues. We look forward to a second half of continued sound performance."
Weinstein concluded, "We are pleased that our operating margin improved to 8.3%
in the second quarter of 2003, as compared to 7.4% during the prior year period,
while absorbing a full quarter of general and administrative expenses related to
the significant infrastructure improvements made during 2002 and the first
quarter of 2003. As we look out to the remainder of 2003, we anticipate our
total revenue for 2003 to be in the range of $22 - $26 million and diluted
earnings per share of $0.12 - $0.15 per share. For 2004, we expect total revenue
growth in excess of 20% and earnings per share growth in excess of 30%."
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Mr. Weinstein, Dr. David Nowicki, the Company's Chairman, and Ted Kaminer, the
Company's Chief Financial Officer, will hold a conference call to discuss these
results. The conference call will take place at 11 a.m. EDT on August 13, 2003.
Those who wish to participate in the conference call may telephone (888)
335-6674. A digital replay will be available by telephone for two weeks and may
be accessed by dialing (877) 519-4471, from the U.S., or (973) 341-3080, for
international callers, and entering PIN #4047082.
Bio-Imaging Technologies, Inc. is a healthcare contract service organization
providing services that support the product development process of the
pharmaceutical, biotechnology and medical device industries. The Company has
specialized in assisting its clients in the design and management of the
medical-imaging component of clinical trials since 1990. Bio-Imaging serves its
clients on a global basis through its US Core Lab (Newtown, PA), European Core
Lab (Leiden, The Netherlands) and US Business Offices (Massachusetts and
California).
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 timing of
projects due to the variability in size, scope and duration of projects,
estimates made by management with respect to the Company's 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
circumstances.
-FINANCIAL TABLES FOLLOW-
BIO-IMAGING TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
(In thousands, except per share data)
For the Three Months Ended For the Six Months Ended
06/30/03 06/30/02 06/30/03 06/30/02
-------- -------- -------- --------
Service revenues 5,364 4,385 10,460 8,258
Reimbursement revenues 805 672 1,413 1,542
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Total revenues $ 6,169 $ 5,057 $ 11,873 $ 9,800
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Costs and Expenses:
Cost of revenues 4,129 3,555 8,076 6,952
General & admin. expenses 998 690 1,911 1,282
Sales & marketing expenses 530 440 981 856
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Total cost and expenses 5,657 4,685 10,968 9,090
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Income from operations 512 372 905 710
Interest Expense - net 43 32 70 50
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Income before taxes 469 340 835 660
Income tax provision 124 49 234 72
------- ------- -------- -------
Net income 345 291 601 588
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Basic Earning per share $ 0.04 $ 0.03 $ 0.07 $ 0.07
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Weighted average number
of shares - basic 8,732 8,335 8,641 8,314
Diluted earnings per share $ 0.03 $ 0.03 $ 0.06 $ 0.06
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Weighted average number of
shares - diluted 10,299 9,743 10,120 9,682
Condensed Consolidated Balance Sheets
(In thousands)
ASSETS
June 30, 2003 December 31, 2002
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Current assets: (unaudited)
Cash and cash equivalents $ 3,494 $ 2,563
Accounts receivable 4,181 3,928
Prepaid expenses and other
current assets 568 399
Deferred income taxes 364 364
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Total current assets 8,607 7,254
Property & equipment net 4,051 3,611
Other assets 563 575
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Total assets $ 13,221 $ 11,440
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 831 $ 660
Accrued expenses and
other current liabilities 1,379 1,364
Deferred revenue 4,162 3,265
Current maturities of long-term
debt and capital lease obligations 648 585
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Total current liabilities 7,020 5,874
Long-term debt and capital lease
obligations 1,238 1,379
Other liability -- 568
Total liabilities ---------- ----------
8,258 7,821
Stockholders' equity:
Common stock - 2 2
Additional paid-in capital 10,148 9,405
Accumulated deficit (5,187) (5,788)
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Total stockholders' equity 4,963 3,619
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Total liabilities &
stockholders' equity $ 13,221 $ 11,440
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