- Quarterly revenues up 51% to $75.3 million
- Quarterly earnings per share from continuing operations up 186% from $0.07 to $0.20, driven by operating leverage on higher revenues
- Deployment completed of 200-rep sales force expansion for Bayer
- 2004 new business wins to-date totaling 365 reps with 10 clients, including Synthon
- Year-end cash balance of $57 million; $11.8 million cash from operations for full year
- Total revenues for the fourth quarter of 2003 were $75.3 million, compared to $49.9 million for the fourth quarter of 2002.
- Earnings from continuing operations before income taxes were $7.9 million, compared to $2.5 million for the fourth quarter of 2002
- Net earnings from continuing operations were $5.0 million, compared to $1.5 million for the fourth quarter of 2002.
- Diluted earnings per share from continuing operations were $0.20, compared to $0.07 for the fourth quarter of 2002.
- Total revenues for 2003 were $224.5 million, compared to $215.4 million for 2002.
- Earnings from continuing operations before tax were $15.4 million, compared to $8.0 million for 2002.
- Net earnings from continuing operations were $9.6 million, compared to $4.9 million for 2002.
- Diluted earnings per share from continuing operations were $0.41, compared to $0.22 for 2002.
- Ventiv Health Sales & Marketing (VHSM) reported quarterly and annual revenues of $67.0 million and $194.5 million, respectively, during the fourth quarter and year ended December 31, 2003, versus $43.3 million and $189.0 million, respectively, during the fourth quarter and year ended December 31, 2002.
- Health Products Research (HPR), Ventiv’s Planning & Analytics business, reported quarterly and annual revenues of $8.3 million and $29.9 million, respectively, during the fourth quarter and year ended December 31, 2003, versus $6.6 million and $25.7 million, respectively, during the fourth quarter and year ended December 31, 2002.
- Momentum in new VHSM wins: Deployment of new sales forces totaling 950 sales representatives for ALTANA Pharma, Bayer Pharmaceutical Corporation, Watson Pharmaceuticals and other clients.
- HPR growth and momentum: 16% overall increase in revenue resulting from additional services provided to new and existing clients. New three-year contract signed with large pharma client. HPR now provides services to 15 of 20 largest pharmaceutical companies.
- New offerings: A variety of specialty offerings initiated. Relationship Sales Organization (RSO) offering launched and refined.
- Cost management: Continuing tight cost management contributed to a $5.3 million increase in gross margins and $1.2 million decrease in fixed SG&A costs, which created significant operating leverage.
- Divestitures completed: Divestitures of Ventiv’s European contract sales businesses and select medical communications businesses completed, enabling a full focus on Ventiv’s core U.S. businesses.
- Cash generation: Ventiv generated $11.8 million of cash from operations during the year, ending the year with $57 million of cash and no debt.
VENTIV HEALTH, INC. REPORTS FOURTH QUARTER 2003 RESULTS |
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2003 | 2002 | 2003 | 2002 | ||||
Revenues | $75,270 | $49,862 | $224,453 | $215,387 | |||
Operating expenses: | |||||||
Costs of services | 58,851 | 39,417 | 182,658 | 178,901 | |||
Selling, general and administrative expenses | 8,473 | 7,949 | 26,223 | 27,397 | |||
Gain on sale of real estate | - | - | (392) | - | |||
Total operating expenses | 67,324 | 47,366 | 208,489 | 206,298 | |||
Earnings from continuing operations | 7,946 | 2,496 | 15,964 | 9,089 | |||
Net interest expense | (82) | (20) | (136) | (1,120) | |||
Earnings from continuing operations before income taxes | 7,864 | 2,476 | 15,828 | 7,969 | |||
Provision for income taxes | (2,907) | (941) | (5,933) | (3,028) | |||
Earnings from continuing operations | 4,957 | 1,535 | 9,895 | 4,941 | |||
Discontinued operations: | |||||||
Earnings (losses) from discontinued operations, net of taxes | 62 | (1,975) | (4,092) | (4,772) | |||
Gains (losses) on disposals of discontinued operations, net of taxes | 2,500 | 3,737 | (4,406) | 2,323 | |||
Tax benefit from disposals of discontinued operations | 4,379 | - | 4,379 | 5,400 | |||
Net earnings (losses) from discontinued operations, net of taxes (1) | 6,941 | 1,762 | (4,119) | 2,951 | |||
Net earnings | $11,898 | $3,297 | $5,776 | $7,892 | |||
Earnings per share from continuing operations: | |||||||
Basic | $0.22 | $0.07 | $0.43 | $0.22 | |||
Diluted | $0.20 | $0.07 | $0.42 | $0.22 | |||
Earnings (losses) per share from discontinued operations: | |||||||
Basic | $0.30 | $0.07 | $(0.18) | $0.13 | |||
Diluted | $0.29 | $0.07 | $(0.18) | $0.13 | |||
Consolidated earnings per share: | |||||||
Basic | $0.52 | $0.14 | $0.25 | $0.35 | |||
Diluted | $0.49 | $0.14 | $0.24 | $0.35 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 23,018,295 | 22,892,003 | 22,919,479 | 22,842,329 | |||
Diluted | 24,355,187 | 22,894,067 | 23,800,613 | 22,856,640 |
(1) Net Losses from discontinued operations includes Ventiv’s Connecticut-based and Georgia-based communications businesses and Ventiv’s Germany-based, U.K.-based, France-based and Hungary-based contract sales businesses, which have been divested.
VENTIV HEALTH, INC. REPORTS FOURTH QUARTER 2003 RESULTS |
December 31, | December 31, | |
2003 | 2002 | |
Cash (1)................... | $56,642 | $47,753 |
Account Receivable, Net........... | 41,674 | 28,696 |
Unbilled Services................ | 21,347 | 14,547 |
Client Advances & Unearned Revenue....... | 4,859 | 3,725 |
Working Capital (2)............... | 68,402 | 56,809 |
Capital Lease Obligations............ | 26,588 | 13,052 |
Depreciation (3)............... | 9,485 | 9,585 |
Amortization (3)............... | 19 | 47 |
Days Sales Outstanding (4).......... | 102 | 73 |
(1) Cash includes restricted cash of $1.7 million at December 31, 2002 and $1.7 million at December 31, 2003.
(2)Working Capital is defined as Total Current Assets less Total Current Liabilities.
(3)Depreciation and amortization are reported on a year-to-date basis.
(4)Days Sales Outstanding is measured using the combined amounts of Accounts Receivable and Unbilled Services outstanding as of the balance sheet date, against Revenues for the trailing 12-month period then ended.