Exhibit 99.1
PDI Reports $0.34 Diluted EPS in Second Quarter 2004
Second Quarter Revenue of $83.2 Million a 16.8% Increase Over Year Ago
SADDLE RIVER, N.J., Aug. 9 /PRNewswire-FirstCall/ — PDI, Inc. (Nasdaq: PDII) a healthcare sales and marketing company, today announced its second quarter 2004 financial results.
Second Quarter Results
Net revenue for the quarter ended June 30, 2004 was $83.2 million, 16.8% higher than net revenue of $71.3 million for the quarter ended June 30, 2003. Operating income was $8.2 million for the quarter ended June 30, 2004, compared to operating income of $4.5 million for the quarter ended June 30, 2003. Net income was $5.0 million for the quarter ended June 30, 2004, compared to net income of $2.8 million in the quarter ended June 30, 2003. Diluted net income per share for the quarter ended June 30, 2004 was $0.34 versus diluted net income per share of $0.20 for the quarter ended June 30, 2003.
Year-to-Date Results
Net total revenue for the six months ended June 30, 2004 was $171.6 million, 23.6% higher than total net revenue of $138.8 million for the six months ended June 30, 2003. Operating income was $18.0 million for the six months ended June 30, 2004 versus operating income of $5.6 million for the six months ended June 30, 2003. Net income was $11.0 million for the six months ended June 30, 2004 versus net income of $3.6 million for the six months ended June 30, 2003. Diluted net income per share was $0.74 for the six months ended June 30, 2004 compared to diluted net income per share of $0.25 for the six months ended June 30, 2003.
Charles T. Saldarini, Vice Chairman and CEO, said, “Our strong performance in the second quarter is acceptable. More important is our view that the macro-level drivers of our business are favorable and we feel energized to execute our growth strategy.”
Webcast Conference Call
PDI will conduct a live webcast of its Earnings Release Briefing at 9:00 AM EDT on Tuesday, August 10, 2004. The live webcast of the event will be accessible through PDI’s website, http://www.pdi-inc.com and will be archived on the website for future on-demand replay. For those without internet access, the call can be accessed by dialing 1-877-423-4030 within the US and 1-706-634-1929 internationally and asking for the PDI Earnings Release Conference Call. The call will be archived for two weeks and can be accessed by calling 1-800-642-1687 or 1-706-645-9291 and entering the conference ID number 8680828.
About PDI
PDI, a premier healthcare sales and marketing company, provides strategic alternatives to the portfolio challenges of biopharmaceutical and medical device and diagnostics manufacturers. Focusing on two core businesses, sales and marketing services and product commercialization, PDI leverages its expertise and commercial infrastructure to maximize profitable brand growth. Manufacturers choose the relationship which best meets their strategic and financial objectives, ranging from individual or bundled service agreements to broader commercial partnerships. For more information, visit the Company’s website at http://www.pdi-inc.com.
Forward Looking Statement
This press release contains forward-looking statements regarding future events and financial performance. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond PDI’s control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, failure to meet performance benchmarks in significant contracts, changes in customer and market requirements and standards, and the risk factors detailed from time to time in PDI’s periodic filings with the Securities and Exchange Commission, including without limitation, PDI’s Annual Report on Form 10-K for the year ended December 31, 2003, and PDI’s periodic reports on Forms 10-Q and 8-K filed with the Securities and Exchange Commission since January 1, 2004. The forward looking-statements in this press release are based upon management’s reasonable belief as of the date hereof. PDI undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
PDI, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
| June 30, | December 31, |
|---|
| 2004 | 2003 |
|---|
| ASSETS | | | | | |
| Current assets: | |
| Cash and cash equivalents | | $ 91,545 | | $ 113,288 | |
| Short-term investments | | 33,795 | | 1,344 | |
| Inventory, net | | — | | 43 | |
| Accounts receivable, net of allowance for | |
| doubtful accounts of $559 and $749 as of | |
| June 30, 2004 and December 31, 2003, | |
| respectively | | 30,848 | | 40,885 | |
| Unbilled costs and accrued profits on | |
| contracts in progress | | 4,991 | | 4,041 | |
| Deferred training and other program costs | | 3,037 | | 1,643 | |
| Other current assets | | 11,831 | | 8,847 | |
| Deferred tax asset | | 6,834 | | 11,053 | |
| Total current assets | | 182,881 | | 181,144 | |
| | | | | | |
| Net property and equipment | | 16,892 | | 14,494 | |
| Deferred tax asset | | 7,304 | | 7,304 | |
| Goodwill | | 11,132 | | 11,132 | |
| Other intangible assets | | 1,341 | | 1,648 | |
| Other long-term assets | | 3,830 | | 3,901 | |
| Total assets | | $ 223,380 | | $ 219,623 | |
| | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| Current liabilities: | |
| Accounts payable | | $ 5,162 | | $ 8,689 | |
| Accrued returns | | 11,382 | | 22,811 | |
| Accrued incentives | | 14,050 | | 20,486 | |
| Accrued salaries and wages | | 9,203 | | 9,031 | |
| Unearned contract revenue | | 15,397 | | 3,604 | |
| Restructuring accruals | | 444 | | 744 | |
| Income taxes and other accrued expenses | | 14,294 | | 15,770 | |
| Total current liabilities | | 69,932 | | 81,135 | |
| Total long-term liabilities | | — | | — | |
| Total liabilities | | $ 69,932 | | $ 81,135 | |
| | | | | | |
| Commitments and Contingencies | |
| | |
| Stockholders’ equity: | |
| Common stock, $.01 par value, 100,000,000 | |
| shares authorized: shares issued and | |
| outstanding, June 30, 2004 - 14,619,271, | |
| and December 31, 2003 - 14,387,126; | |
| 161,115 and 136,178 restricted shares | |
| issued and outstanding at June 30, 2004 | |
| and December 31, 2003, respectively | | $ 148 | | $ 145 | |
| Preferred stock, $.01 par value, 5,000,000 | |
| shares authorized, no shares issued and | |
| outstanding | | — | | — | |
| Additional paid-in capital (includes restricted | |
| of $4,955 and $2,361 as of June 30, 2004 and | |
| December 31, 2003, respectively) | | 115,421 | | 109,531 | |
| Retained earnings | | 40,523 | | 29,505 | |
| Accumulated other comprehensive income | | 58 | | 25 | |
| Unamortized compensation costs | | (2,592 | ) | (608 | ) |
| Treasury stock, at cost: 5,000 shares | | (110 | ) | (110 | ) |
| Total stockholders’ equity | | $ 153,448 | | $ 138,488 | |
| Total liabilities & stockholders’ equity | | $ 223,380 | | $ 219,623 | |
PDI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| | | | |
|---|
| | | | |
|---|
| | | Three Months Ended June 30 | Six Months Ended June 30, |
| | | 2004 | | 2003 | | 2004 | | 2003 | |
| Revenue | |
| Service, net | | $ 84,334 | | $71,177 | | $ 172,600 | | $ 138,688 | |
| Product, net | | (1,131 | ) | 82 | | (1,030 | ) | 116 | |
| Total revenue, net | | 83,203 | | 71,259 | | 171,570 | | 138,804 | |
| Cost of goods and | |
| services | |
| Program expenses | |
| (including related | |
| party amounts of | |
| $0 and $328 for | |
| the quarters ended | |
| June 30, 2004 and | |
| 2003, respectively | |
| and $180 and $401 | |
| for the six months | |
| ended June 30, 2004 | |
| and 2003, | |
| respectively) | | 61,298 | | 50,307 | | 123,005 | | 100,188 | |
| Cost of goods sold | | 89 | | 83 | | 233 | | 145 | |
| Total cost of goods | |
| and services | | 61,387 | | 50,390 | | 123,238 | | 100,333 | |
| | | | | | | | | | |
| Gross profit | | 21,816 | | 20,869 | | 48,332 | | 38,471 | |
| Compensation expense | | 7,924 | | 9,123 | | 18,140 | | 17,997 | |
| Other selling, general | |
| and administrative | |
| expenses | | 5,657 | | 7,206 | | 12,148 | | 13,039 | |
| Restructuring and other | |
| related expenses | | — | | — | | — | | (270 | ) |
| Litigation settlement | | — | | — | | — | | 2,100 | |
| Total operating | |
| expenses | | 13,581 | | 16,329 | | 30,288 | | 32,866 | |
| Operating income | | 8,235 | | 4,540 | | 18,044 | | 5,605 | |
| Other income, net | | 313 | | 226 | | 631 | | 495 | |
| Income before provision | |
| for taxes | | 8,548 | | 4,766 | | 18,675 | | 6,100 | |
| Provision for income | |
| taxes | | 3,505 | | 1,954 | | 7,657 | | 2,510 | |
| Net income | | $ 5,043 | | $ 2,812 | | $ 11,018 | | $ 3,590 | |
| | | | | | | | | | |
| Basic net income per | |
| share | | $ 0.35 | | $ 0.20 | | $ 0.76 | | $ 0.25 | |
| Diluted net income per | |
| share | | $ 0.34 | | $ 0.20 | | $ 0.74 | | $ 0.25 | |
| | | | | | | | | | |
| Basic weighted average | |
| number of shares | |
| outstanding | | 14,533 | | 14,188 | | 14,497 | | 14,177 | |
| Diluted weighted average | |
| number of shares | |
| outstanding | | 14,918 | | 14,266 | | 14,843 | | 14,252 | |
SOURCE PDI, Inc.
-0- 08/09/2004
/CONTACT: Stephen P. Cotugno, Executive Vice President-Corporate Development of PDI, Inc., +1-201-574-8617/
/Web site: http://www.pdi-inc.com /
(PDII)
CO: PDI, Inc.
ST: New Jersey
IN: HEA BIO MTC ADV
SU: ERN CCA
