SOURCE: Pharma-Bio Serv Inc.

Pharma-Bio Serv Inc.

June 16, 2014 16:38 ET

Pharma-Bio Serv Announces Stock Repurchase Program and Results for the Quarter Ended April 30, 2014

DORADO, PUERTO RICO--(Marketwired - Jun 16, 2014) - Pharma-Bio Serv. (OTCQB: PBSV), a compliance, project management and technology transfer support consulting firm, announced today that its Board of Directors has authorized a stock repurchase program to purchase up to 2 million shares of its outstanding common stock. The timing, manner, price and amount of any repurchases will be at the discretion of the Company, subject to the requirements of the Securities Exchange Act of 1934, as amended, and related rules. The program does not oblige the Company to repurchase any shares and it may be modified, suspended or terminated at any time and for any reason. No shares will be repurchased directly from directors or officers of the Company.

The Company announced net revenues for the three and six months ended April 30, 2014 of $6.6 and $13.6 million, respectively, a decrease of approximately $1.7 and $2.3 million, or 20.3% and 14.6%, respectively, when compared to the same periods last year. This decrease is mainly attributable to a decline in revenues from projects in the United States, Europe and Puerto Rico consulting markets of $0.8, $0.4 and $0.3 million, respectively, for the three-month period ended April 30, 2014, and $1.3, $0.6 and $0.3 million, respectively, for the six-month period ended April 30, 2014. Other Company divisions sustained minor revenue gains/losses or remained constant, when compared to the same period last year. The Company continues to invest in business development and operations support for all of its divisions in order to diversify and expand their market and customer base.

Selling, general and administrative expenses for the three and six months ended April 30, 2014 were approximately $1.7 and $3.2 million, respectively, a net increase in expenses of approximately $0.3 and $0.6 million, respectively, as compared to the same period last year.

Net income for three and six months ended April 30, 2014 was approximately $0.3 and $1.0 million, a decrease of $1.1 and $1.5 million, respectively, when compared with the same periods last year. The net income variance, when compared to the same periods last year, is mainly attributable to the decline in revenue, the increase in selling general and administrative expenses for the business and operations investments incurred aimed to diversify and expand markets and customer base, and the effect of the effective income tax rates (including Puerto Rico favorable tax grants) over income before tax.

"We remain steadfast in our commitment to executing on our strategic initiatives to drive growth," said Ms. Elizabeth Plaza, Principal Executive Officer of Pharma-Bio Serv. "The Board's authorization of a share repurchase program reflects our continued confidence in the health and long-term profitable growth of the company," she continued.

Pharma-Bio Serv had approximately 23 million shares of Common Stock outstanding as of April 30, 2014.

About Pharma-Bio Serv Inc.

Pharma-Bio Serv is a compliance, project management and technology transfer support consulting firm, headquartered in Puerto Rico, with operations in the U.S., Ireland and Spain. Pharma-Bio Serv's core business is FDA and international agencies regulatory compliance related services with integrated portfolio services including microbiological and chemical testing services for clients in the Pharmaceutical, Biotechnology, Chemical, Medical Device, Cosmetic, Food and Allied Products industries, at its laboratory testing facility in Puerto Rico. Services also include "Integratek," an information technology consulting practice, and "Pharma Serv Academy" a division that provides technical and regulatory standards seminars/training conducted by industry experts. The Company's global team includes more than 300 leading engineering and life science professionals, quality assurance managers and directors.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of Pharma-Bio Serv. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release. Although Pharma-Bio Serv's management believes these expectations, estimates, or projections to be reasonable as of the date of this news release, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies, which could cause its actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause Pharma-Bio Serv's actual results or performance to differ materially from the forward-looking statements include those set forth in the "Risk Factors" section of Pharma-Bio Serv's Annual Report on Form 10-K for the year ended October 31, 2013 and in its other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. Pharma-Bio Serv disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.

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