News - Year End, 4th Quarter Results
Covalent Group, Inc. Reports 57% Increase in Revenues and $.20/Share Improvement in Earnings, 1999 Vs 1998 Fourth Quarter Revenues Increase 70% Over Previous Year
WAYNE, Pa., Feb. 29 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq: CVGR) today announced record results for the year ended December 31, 1999. Revenues for the year increased 57% to $14.7 million as compared to $9.4 million for 1998. Net income for the year amounted to $1,438,000 ($0.12 per share basic and diluted) as compared to a net loss of $942,000 ($0.08 per share loss) a year ago.
For the fourth quarter ended December 31, 1999, revenues increased 70% to $3.2 million as compared to revenues of $1.9 million for the same quarter in the prior year. Net income amounted to $255,000 ($0.02 per share) for the quarter ended December 31, 1999, compared to a net loss of $656,000 ($0.05 per
share loss) for the quarter ended December 31, 1998.
Kenneth M. Borow, M.D. Chief Executive Officer of Covalent said, "We are extremely pleased with the $.20 per share improvement in 1999's earnings as compared to 1998, and the pace of accelerating momentum that continued throughout the year. The quarter and the year continued to demonstrate strong revenue growth and earnings performance and reflect efforts to expand new trial activity and improve profit. Specifically, operating margins for the year improved to 15% of revenues in 1999 from a prior year loss; selling and administrative expenses fell by 9%."
"Having stabilized operations through the first half of 1999, the Company initiated an aggressive expansion strategy focused on establishing three channels for new growth -- 1) escalate penetration of the worldwide cardiology market, 2) geographic expansion, and 3) diversification into new therapeutic areas. These efforts are on track and accelerating. During 1999, we opened our European headquarters, initiated clinical trials in four European countries and Canada, entered into a major strategic alliance involving state-of-the-art electron beam tomography (which has since been incorporated into several domestic and international clinical trials), and positioned the Company to move into a range of new opportunities in the year ahead."
"Last month we announced that our founder, Mr. Bruce LaMont, sold a 51% equity stake to an investment group. Our new investors are very supportive of our expansion objectives. Similarly, the additions of Dr. Anthony Cerami and Mr. Donald Holdsworth to the Board of Directors will result in very active involvement from each in our efforts to enter new therapeutic areas, in particular diabetes and aging. With an outstanding client base and a sound operating foundation now in place, I am confident that we are extremely well-
positioned to pursue our growth plans."
"As recently reported, we remain committed to our year 2000 strategic goals of doubling our client base and backlog, increasing revenues by 50% and increasing earnings by 100%. We believe that these operating targets should be achieved from our current clients and existing backlog." |
