Pharmaceutical Marketing Reports Results for Fiscal 1998; Successful
Completion of Sale of Non-US Assets to IMS Health
NEW YORK, Aug. 26 /PRNewswire/ -- Pharmaceutical Marketing Services Inc.
(PMSI) (Nasdaq: PMRX - news), a leading international provider of
information services to the pharmaceutical and healthcare industry,
today reported its financial results for its fourth quarter of fiscal
1998 and for the year ended June 30, 1998.
The net loss for the three months ended June 30, 1998 was $0.4 million,
or $0.03 per share compared with net income of $1.9 million or $0.14 per
share for the fourth quarter of 1997, reflecting continuing investment
to support the development of Source Europe and divestitures of business
during the year. The net loss for the year was $0.3 million or $0.02 per
share compared with a net loss of $5.3 million or $0.40 per share for
fiscal 1997.
Revenues of $18.8 million for the three months ended June 30, 1998, were
20 percent above revenues in the same period of the previous year after
excluding those businesses divested during the year. Scott-Levin, the
Company's US subsidiary, a leading provider of market research and
managed care information services to the US pharmaceutical industry,
generated revenue growth of 21 percent over the previous year.
Revenues for the year ended June 30, 1998 were $78.0 million, a decline
of $20.5 million (21 percent) compared with revenues for the year ended
June, 30 1997. The decrease resulted from those businesses divested
during the year. In the year ended June 30, 1997 revenues from the
divested businesses totaled $37.3 million. The divestments masked
revenue growth in the Company's ongoing businesses, in particular
Scott-Levin in the US and the Company's targeting business in Japan,
both of which experienced revenue growth of more than 20 percent
compared with the prior year. Currency exchange rate movements
negatively impacted the year's revenue by $2.3 million, or 3 percent.
''This brings to an end a complicated year in which much has been
accomplished to build intrinsic shareholder value,'' commented Dennis
Turner, PMSI's Chief Executive Officer. ''However, the financial
performance of our ongoing business compared with last year is being
obscured by the significant re-organization and divestment activity.
During the year we have divested our international publishing business,
our French point of sale business and our interest in the Source joint
venture and OTC business in the US, recognizing a pre-tax gain of $34
million. We also acquired Source Europe, a business developing
prescription databases in certain major European markets. In addition,
since year end, we have divested all of our businesses outside the
United States in the transaction with IMS Health.''
On August 5, 1998, the Company announced completion of the sale of its
non-US assets (including Source Europe) to IMS Health (NYSE: RX - news)
for consideration of $75 million comprising approximately 1.2 million
shares of IMS Health common stock. PMSI remains a publicly traded
corporation comprising Scott-Levin, a leading provider of market
research and managed care services to the pharmaceutical industry in the
US. The Scott-Levin business delivered pre-tax operating profits of $6.6
million on revenues of $26.2 million in the year to June 30,1998, a
growth of 34 percent and 21 percent respectively compared with fiscal
1997.
''Given the major issues we faced in completing the sale of the entire
business to Cognizant, announced on March 23, 1998, and the uncertain
timetable for their resolution, we believe the transaction we have now
completed with IMS Health offers the best way forward for PMSI,'' said
Mr. Turner. ''With the substantial proceeds from this transaction,
together with PMSI's strong existing asset base, and our rapidly growing
Scott-Levin business in the United States, we believe we have created an
excellent vehicle to build value for PMSI's shareholders.''
At June 30, 1998, the Company had $112 million in cash and marketable
securities, an increase of $47 million over June 30, 1997. This excludes
the consideration received from the transaction with IMS Health.
PMSI provides a range of information and market research services to
pharmaceutical and healthcare companies in the United States to enable
them to optimize their sales and marketing performance. Most of the
Company's information services are generated from proprietary databases
which contain unique prescription, physician, managed care and
healthcare market data. |
