- Second quarter net revenue of $87.9 million -- Second quarter EPS of $.21 per share -- Record new business awards of $120 million during the quarter -- DSOs decline from 65 to 56 days
BOSTON, Jan. 27 /PRNewswire/ -- PAREXEL International Corporation (Nasdaq: PRXL - news) today reported its financial results for the second fiscal quarter ended December 31, 1998.
PAREXEL's consolidated net revenue for the three months ended December 31, 1998 was $87.9 million which reflected growth of 29.2% over net revenue of $68.0 million in the prior-year period after restating for acquisitions. Revenue growth was 49.9% over the prior year net revenue of $58.6 million as originally reported. For the quarter ended December 31, 1998 income from operations was $7.3 million, a 12.3% increase over pro-forma operating income of $6il million in the prior year quarter, which is restated for subsequent pooling acquisitions but does not reflect $4.1 million of acquisition-related charges.
For the six months ended December 31, 1998, consolidated net revenue of $170.7 million grew 30.3% over the prior year period net revenue of $131.0 million after restating for acquisitions. Operating income for the six months ended December 31, 1998 was $15.0 million which reflects year over year growth of 21.4% when compared to pro-forma operating income of $12.3 million, which is restated for subsequent pooling acquisitions but does not reflect $4.1 million of acquisition-related charges.
''I am pleased to report that PAREXEL's revenue grew 29.2% over the prior year period. Even more importantly as we look to the future, our new business authorizations during the quarter were up 60% over the prior year to a level of $120.0 million, which reflects a strong endorsement by our clients of the quality of the services provided by PAREXEL,'' said Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL.
''As previously indicated, PAREXEL has expanded its selling capacity over the past few quarters, and we have started to see some results from this investment, which provides us with a positive view toward the future. The broader CRO industry also looks very healthy, and the growth of this sector continues to be fueled by significant R&D investments by our clients. According to the Pharmaceutical Research and Manufacturing Association, PhRMA, R&D spending is expected to grow 13.7% in 1999, a significant increase over prior years' growth rates,'' commented von Rickenbach.
This release contains ''forward-looking'' statements regarding future results and events, including statements regarding expected future growth and customer demand. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Factors that may cause such a difference include, but are not limited to: the inability of the Company to win new business at the levels required; the ability to hire, train and retain qualified personnel; the cancellation or delay of contracts; risks associated with the management of growth and the risks of integrating newly acquired businesses; and competition. These and other factors are discussed more fully in the section entitled ''Risk Factors'' in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 and Quarterly Report on Form 10-Q for the quarter ended September 30, 1998.
PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing clients solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing, and other drug development consulting services. The Company's integrated services, therapeutic area depth, and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL has more than 45 offices and approximately 4,100 employees in 25 countries around the world.
PAREXEL International Corporation
Consolidated Condensed Statements of Operations
(In thousands, except per share data)
(Unaudited) (Unaudited)
Three months ended Six months ended
December 31, December 31,
1998 1997 (a) 1998 1997 (a)
Net revenue $87,855 $67,993 $170,690 $130,984
Costs and expenses:
Direct costs 58,890 44,252 112,627 85,561
Selling, general
and administrative 17,215 14,089 34,394 27,311
Depreciation and
amortization 4,473 3,167 8,715 5,797
Acquisition-related
charges -- 4,100 -- 4,100
Income from operations 7,277 2,385 14,954 8,215
Other income, net 627 883 1,340 2,041
Income before
income taxes $7,904 $3,268 $16,294 $10,256
Net income $5,141 $1,907 $10,646 $6,246
Earnings per common share:
Basic $0.21 $0.08 $0.43 $0.26
Diluted $0.21 $0.08 $0.42 $0.25
Shares used in computing
earnings per common share:
Basic 24,787 23,790 24,732 23,751
Diluted 25,07t 24,652 25,084 24,650
Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
Dec. 31, June 30,
1998 1998
Working capital $130,316 $118,937
Total assets 286,681 261,758
Stockholders' equity 180,378 168,380
(a) The three and six month periods ended December 31, 1997 have been
restated to include the results of operations for businesses
acquired during fiscal 1998 and accounted for using the pooling of
interests method.
|
