PPD, Inc. Reports Record Revenue and EPS for Third Quarter 1999
WILMINGTON, N.C., Oct. 20 /PRNewswire/ -- PPD, Inc. (Nasdaq: PPDI), a leading provider
of research and development contract and consulting services for life and discovery
sciences, today reported record financial results, with revenue of $79.4 million for the
third quarter of 1999 while earnings per share from continuing operations totaled $0.30.
Net revenue for the quarter increased $17.9 million, or 29.1%, over revenue for the
third quarter a year ago. For the nine months ended September 30, 1999, net revenue was
$225.2 million, up 31.7% compared to $171.1 million for the same period in 1998.
Earnings per share from continuing operations were $0.30 per share for the current
quarter, up 57.4%, as compared to $0.19 per share for Q398. For the nine-month period,
EPS before non-recurring gains and charges (merger costs, acquired R&D costs, gain on
sale of subsidiary and discontinued operations) was $0.82 compared to $0.46 for the same
period a year ago, a 76.7% increase. Including non-recurring gains and charges, EPS was
$0.29 and $0.80 for the three-month and nine-month periods ending September 30, 1999,
which represents 19.4% and 42.6% increases over the $0.24 and $0.56 reported for the same
periods a year ago.
"We are pleased to report these outstanding results, particularly in view of recent
events in our sector," stated Dr. Fred Eshelman, chief executive officer for PPD. "This
again points to the closely integrated management of finance and operations."
PPD is a leading global provider of contract and consulting research and development
services for pharmaceutical and biotechnology companies. With a corporate mission to
help clients maximize the return on their massive R&D investments, PPD offers innovative
technologies, therapeutic expertise and comprehensive resources for drug discovery,
clinical development and post- market support. The company now employs approximately
3,500 professionals in 47 offices in 19 countries around the world.
Except for historical information, all of the statements, expectations and assumptions
contained in the foregoing, including expectations about future financial performance of
the Company, are forward looking statements that involve a number of risks and
uncertainties. Although the Company has used its best efforts to be accurate in making
those forward-looking statements, it is possible that the assumptions made by management
may not materialize. In addition, other important factors which could cause results to
differ materially include the following: economic conditions in the pharmaceutical and
biotechnology industries; outsourcing trends in the pharmaceutical and biotechnology
industries; risks associated with acquisitions; loss of large contracts; competition
within the CRO industry; continued success in sales growth; the ability to attract and
retain key personnel; and the risk factors set forth from time to time in the Company's
SEC filings, copies of which are available upon request from PPD's investor relations
department.
PPD, Inc.
Statement of Operations Data
(in thousands, except per share amounts)
(Unaudited)
Excludes ATP merger costs in 1999, gain on sale of CCCR and acquired
in-process research and development costs in 1998 and discontinued
operations (ENVIRON) in 1999 and 1998.
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Net revenue:
Life sciences $78,849 $61,357 $223,191 $170,786
Discovery sciences 509 96 2,031 286
Total net revenue 79,358 61,453 225,222 171,072
Direct costs:
Life sciences 37,913 30,773 108,432 85,840
Discovery sciences 2,453 935 5,586 2,639
Total direct costs 40,366 31,708 114,018 88,479
Gross margin 38,992 29,745 111,204 82,593
Selling, general and
administrative 24,182 20,130 70,285 57,634
Depreciation and amortization 3,848 3,019 10,905 9,041
Income from operations 10,962 6,596 30,014 15,918
Other income (expense), net 1,123 724 3,331 1,860
Income before taxes 12,085 7,320 33,345 17,778
Income tax expense 4,689 2,892 12,938 6,977
Net income 7,396 4,428 20,407 10,801
Net income per share:
Basic $0.30 $0.19 $0.83 $0.47
Diluted $0.30 $0.19 $0.82 $0.46
Weighted average number of
shares outstanding:
Basic 24,629 23,267 24,544 23,124
Diluted 24,875 23,445 24,889 23,276
PPD, Inc.
Statement of Operations Data
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Net revenue:
Life sciences $78,849 $61,357 $223,191 $170,786
Discovery sciences 509 96 2,031 286
Total net revenue 79,358 61,453 225,222 171,072
Direct costs:
Life sciences 37,913 30,773 108,432 85,840
Discovery sciences 2,453 935 5,586 2,639
Total direct costs 40,366 31,708 114,018 88,479
Gross margin 38,992 29,745 111,204 82,593
Selling, general and
administrative 24,182 20,130 70,285 57,634
Depreciation and amortization 3,848 3,019 10,905 9,041
Merger costs - - 218 -
Acquired in-process research
and development - - - 3,163
Income from operations 10,962 6,596 29,796 12,755
Other income (expense), net 1,123 724 3,331 2,932
Income from continuing operations
before taxes 12,085 7,320 33,127 15,687
Income tax expense 4,689 2,892 12,853 6,156
Income from continuing
operations 7,396 4,428 20,274 9,531
Income (loss) from operations of
discontinued division
(less applicable income taxes
of $(171), $782, $(250),
and $2,289, respectively) (270) 1,198 (395) 3,506
Net Income $7,126 $5,626 $19,879 $13,037
Net income per share:
Basic $0.29 $0.24 $0.81 $0.56
Diluted $0.29 $0.24 $0.80 $0.56
Income from continuing
operations per share:
Basic $0.30 $0.19 $0.83 $0.41
Diluted $0.30 $0.19 $0.81 $0.41
Weighted average number of
shares outstanding:
Basic 24,629 23,267 24,544 23,124
Diluted 24,875 23,445 24,889 23,276
PPD, Inc.
Balance Sheet Data
(in thousands)
(unaudited)
September 30, December 31,
1999 1998
Cash and cash equivalents $41,393 $34,083
Working capital $99,046 $93,917
Total assets $265,232 $236,582
Long-term debt, including current portion $392 $3,741
Shareholders' equity $184,548 $155,410
Contact Dr. Fred Eshelman, Chief Executive Officer, or Rudy Howard, Chief Financial
Officer, 910-251-0081, both of PPD, Inc., or for General Inquiries/Analyst, Katharine
Waggener of Strategic Equity Marketing, 704-333-3305.
/EDITOR'S ADVISORY: For more information on PPD, Inc. please visit the company
website at ppdi.com /
/Contact: Dr. Fred Eshelman, Chief Executive Officer, or Rudy Howard,
Chief Financial Officer, 910-251-0081, both of PPD, Inc., or for General
Inquiries/Analyst, Katharine Waggener of Strategic Equity Marketing,
704-333-3305, for PPD, Inc./
17:30 EDT |
