Covalent Group, Inc. Reports Profitable First Quarter
Results
WAYNE, Pa., April 13 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq: CVGR - news) today announced results for the first
quarter of 1999. Revenues for the quarter increased 46% to $3,265,000 compared to $2,240,000 for the same period last
year. Net income for the three months ended March 31, 1999, amounted to $345,000 or $.03 per share (basic and diluted) as
compared to a net loss of $266,000 or $(.02) per share for the same period last year.
The Company's contractual backlog at March 31, 1999, exceeded $25 million. The current backlog represents the value of
future revenues to be earned from signed contracts, however does not include several projects for which signed contracts have
not yet been received, but for which work has commenced under letters of intent.
Bruce LaMont, Chief Executive Officer, commented, ''We are extremely proud of the results of the first quarter in what we
expect will be a very successful year. Our revenues increased by over $1 million (1Q99 vs. 1Q98) without a significant increase
in operating expenses. This reflects increased efficiencies as well as cost savings resulting from significant consolidation within
our operating structure. The multi-year contracts that we signed in the latter part of 1998 give us an excellent base on which to
build for the future. In addition, we have recently hired Jeffrey Flecken as Director of Business Development. Mr. Flecken, who
was previously Director of Sales for a large multi-national CRO, brings added depth to our efforts for future growth of the
Company. Finally, we expect 1999 to continue to benefit from the recent introduction of new products (e.g., TeleTrial) to
Covalent's capabilities to conduct clinical research and development studies.''
Covalent Group, Inc.
Consolidated Statements of Operations
(all amounts in thousands, except per share amounts)
For the Three Months
Ended March 31,
1999 1998
(Unaudited)
Revenues $3,265 $2,240
Operating Expenses:
Direct 1,893 1,854
Selling and Administrative 839 818
Income (Loss) from Operations 533 (432)
Interest Income 14 30
Income (Loss) before Income Taxes 547 (402)
Income Tax Provision (Benefit) 202 (136)
Net Income (Loss) $345 $(266)
Net Income (Loss) Per Common Share
Basic and Diluted $0.03 $(0.02) |
