MIAMI, Sep 5, 2001 (BUSINESS WIRE)
2001 Revenues Expected to Increase 50% Over 2000 2001 Net Income Expected to Increase Almost 100% Outlook for 2002 Encouraging With Accretive KeyStone Acquisition
SFBC International, Inc. (Nasdaq:SFCC), a rapidly expanding provider of specialized, outsourced drug development research services for the pharmaceutical and biotechnology industries, today announced that it expects its revenues and net income to continue to grow at an accelerated rate compared to other similar companies in the clinical research organization industry.
Arnold Hantman, SFBC's Chief Executive Officer, stated: "We are very encouraged about the company's near and longer term financial outlook. We expect 2001 revenues to increase 50% over last year and net income to improve by nearly 100% compared to 2000's net income. In addition, we see our earnings gaining momentum in 2001 because of the recently announced KeyStone acquisition that will enable SFBC to further expand the services provided to our pharmaceutical and biotech clients. We believe that the KeyStone acquisition, now renamed as SFBC Analytical Laboratories, Inc., will have an extremely positive effect on our financial growth over the next two years. Of our anticipated 30+ million in revenues this year, our Phase I and II clinical trials business should be approximately $25 million. Our clients require an equal amount of analytical laboratory work for every clinical research contract. We are confident that we will be able to capture at least 20% or more of the analytical work when we are awarded contracts for Phase I and II clinical trials.
"Our strategy is already working existing clients have placed over $1 million in new analytical business with us. Furthermore, generic companies are scheduling visits to the company because of our new capabilities.
"In addition to the above synergies, our new analytical laboratory has stateoftheart equipment with a replacement value of approximately $2 million, a talented staff and a steady stream of its own business. With SFBC Analytical Laboratories' gross margins expected to be approximately 40%, its earnings will be accretive this year and even more so next year. We are confident that investors will recognize this strategic acquisition as an important step in our growth.
"I am also delighted to report that we have been invited to speak at the Raymond James Institutional Health Conference in four weeks. We expect to present to institutional investors our exciting history of profitable growth, strong management, and accretive acquisitions. We also will demonstrate that our announced goal of $100 million in revenue combined with strong profits is attainable."
Well that release sure stopped the hemorraging FAST!
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