PPDI ( $51 up $55) Delivers 30.8% Revenue and 110% EPS Growth in the First Quarter of 2001; Announces One for One Stock Dividend
WILMINGTON, N.C., April 16 /PRNewswire/ -- PPD, Inc. (Nasdaq: PPDI - news) today reported its quarterly financial and operating results for the period ending March 31, 2001. Earnings per diluted share were $0.56, representing an increase of 110% over comparable earnings reported for the first quarter of 2000.
Net revenues for the first quarter of 2001 increased to $107 million, a 30.8% growth over first quarter 2000 and an 18.5% growth over fourth quarter 2000. The operating margin for the first quarter of 2001 reached a historical high of 19.9%, driven by the financial impact of the sublicensing of the compound, dapoxetine, to Alza Corporation, continued improvement in gross margin for the Phase II-IV activities, and strong performance within the analytical laboratories.
New authorizations for the first quarter of 2001 totaled $165 million, a 24.4% increase over the same period of 2000. The company's cash position was also expanded, driven primarily by a strong cash flow from operations of $26.2 million. Net days sales outstanding for the first quarter of 2001 were 37 days versus 51 days for the fourth quarter of 2000.
``We are pleased to again deliver to our shareholders a solid financial performance,'' stated Dr. Fred Eshelman, chief executive officer of PPD. ``We continue to focus on key objectives, including customer expansion and penetration, quality performance, and technology innovations that add value to our clients. Our PPD DirectConnect(TM) initiative announced earlier today illustrates a practical approach to using web-based technologies to enhance the quality and speed of clinical trials in a cost-effective way. In addition, through our PPD Discovery subsidiary we continue to build our intellectual property base, which we believe will create long-term value for our shareholders.''
The company also announced that it has declared a one for one stock dividend. The record date for the dividend is April 27, 2001, and the distribution date for the dividend is May 11, 2001. Following this stock split, earnings per diluted share will be $0.28 for the first quarter of 2001 and $0.13 for the same period of 2000.
``Our consistent performance over the past several quarters and our confidence in the future prospects for PPD have prompted our board of directors to declare this dividend,'' said Dr. Eshelman. ``Our management team remains dedicated to the delivery of innovative quality services and products which enhance our client relationships and drive our financial performance.''
PPD is a leading global provider of discovery and development services and products for the pharmaceutical and biotechnology industries. With a corporate mission to provide services that maximize the return on clients' R&D investments, PPD provides innovative technologies, therapeutic expertise and comprehensive services for drug discovery and preclinical programs, Phase I-IV clinical development and post-market support. The company has more than 3,800 professionals in 47 facilities in 19 countries around the world. For more information of PPD, see our Web site at ppdi.com.
PPD will host its First Quarter 2001 earnings conference call on Tuesday, April 17, 2001, at 9:00 a.m. Eastern time. This call will be broadcast live over the Internet and can be accessed by all interested parties through the Investors section of the company's Web site at ppdi.com. For those unable to listen to the live broadcast, the call will be archived on the company Web site until 5:00 p.m. Eastern time on May 1, 2001.
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 outsourcing industry; continued success in sales growth; the ability to attract and retain key personnel; and the other risk factors set forth from time to time in the company's SEC filings, copies of which are available upon request from the company's investor relations department.
PPD, Inc.
Statement of Operations Data
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
2001 2000
Net revenue:
Development $ 93,772 $ 78,365
Discovery sciences 13,181 3,396
Total net revenue 106,953 81,761
Direct costs:
Development 45,235 40,198
Discovery sciences 5,316 1,215
Total direct costs 50,551 41,413
Research and development 759 766
Selling, general and administrative 29,586 26,292
Depreciation and amortization 4,811 3,998
Income from operations 21,246 9,292
Other income, net 1,789 1,395
Income before income taxes 23,035 10,687
Provision for income taxes 8,498 4,047
Net income $ 14,537 $ 6,640
Net income per share:
Basic $ 0.57 $ 0.27
Diluted $ 0.56 $ 0.27
Weighted average number of
shares outstanding:
Basic 25,633 24,748
Diluted 26,039 24,945
PPD, Inc.
Balance Sheet Data
(in thousands)
(unaudited)
March 31, December 31,
2001 2000
Cash and cash equivalents $ 106,184 $ 76,411
Working capital $ 133,532 $ 106,903
Total assets $ 382,975 $ 344,915
Long-term debt, including current
portion $ 2,715 $ 1,967
Shareholders' equity $ 259,585 $ 233,943
SOURCE: PPD, Inc. |
