SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
October 29, 1998
PAREXEL International Corporation
(Exact Name of Registrant as Specified in Charter)
Massachusetts 0-27058 04-2776269
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
incorporation)
195 West Street, Waltham, Massachusetts 02451
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (781)487-9900
Not Applicable
(Former Name or Former Address, if Changed Since Last Report).
Item 5. Other Events.
On October 29, 1998, the Company issued a press
release, a copy of which is attached as Exhibit 99.1 to
this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits.
Exhibit No. Exhibit
99.1 Press release of the Company dated
October 29, 1998
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
PAREXEL International Corporation
Dated: October 29, 1998 By:/s/William T. Sobo, Jr.
William T. Sobo, Jr.
Senior Vice President,
Chief Financial Officer,
Treasurer and Clerk
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release of the Company dated October 28, 1998
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
www.PAREXEL.com
CONTACTS: Bill Sobo, Senior Vice President,
Chief Financial Officer
Virginia Lacke, Investor Relations
(781) 487-9904, ext. 4118
PAREXEL REPORTS FINANCIAL RESULTS FOR
FIRST QUARTER ENDED SEPTEMBER 30, 1998
First quarter net revenue of $82.8 million and earnings per
share of $0.22 up 32% and 24%, respectively, from last
year.
Record new business awards of $113 million during the
quarter.
Fiscal year 1999 revenue and earnings per share expected to
grow 25%-30%.
Second quarter net revenue and earnings per share expected
to grow 20%-25%.
Boston, MA, October 29, 1998 -- PAREXEL International
Corporation (Nasdaq: PRXL) today reported its financial
results for the first fiscal quarter ended September 30,
1998.
For the three months ended September 30, 1998, net revenue
increased 32% to $82.8 million from $63 million in the
prior year after restating for acquisitions. When compared
to $51.2 million as originally reported for the quarter
ended September 30, 1997, net revenue grew 62%. Income
from operations for the first quarter of fiscal 1999 was
$7.7 million, a 32% increase over $5.8 million in the prior-
year period. Net income for the current quarter grew 27%
to $5.5 million, or $0.22 diluted earnings per share,
compared to $4.3 million, or $0.18 per share, last year.
"We are very pleased with our record new business wins of
$113 million in the September quarter following a very
strong $110 million in the June quarter, in each case
representing a substantial increase over prior-year
levels," said Josef von Rickenbach, Chairman and Chief
Executive Officer of PAREXEL. "Despite this significant
upturn in new business, the September quarter results,
nevertheless, fall slightly below analysts' consensus
expectations, largely reflecting the level of new business
authorizations during prior quarters as well as extended
start-up times for recently awarded large clinical
programs."
Based on current backlog levels, recent new business
authorizations, and general market conditions for the
Company's services, the Company projects annual net revenue
and earnings per share growth of 25%-30% for fiscal year
1999, with second-quarter year-over-year growth in the 20%-
25% range.
"Given the healthy demand for pharmaceutical outsourcing
services and our successful selling efforts over the last
two quarters, we believe the September quarter and
projected fiscal 1999 results represent a temporary
moderation of growth and look for a higher growth rate in
the future," stated von Rickenbach. "Operational execution
and effective cost management will remain top priorities of
management and all personnel at the Company."
This release contains "forward-looking" statements
regarding future results and events, including statements
regarding expected future revenues, earnings and growth
rates, customer demand, and goals and operating plans of
management. 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 cancellation or delay of
contracts; risks associated with the management of growth
and the ability to attract and retain employees; risks of
integrating newly acquired businesses; and competition.
These and other factors are discussed more fully in the
section entitled "Risk Factors" of the Company's Annual
Report on Form 10-K for the fiscal year ended June 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 3,900 employees throughout 25
countries around the world.
PAREXEL International Corporation
Consolidated Condensed Statement of Operations
(In thousands,
except per share
data)
(Unaudited)
Three Months ended
September 30,
1998 1997 (a)
Net revenue $82,835 $62,991
Costs and
expenses:
Direct costs 53,737 41,309
Selling, general and 17,179 13,222
administrative
Depreciation 4,242 2,630
and amortization
Income from operations 7,677 5,830
Other income, net 713 1,158
Income before $8,390 $6,988
income taxes
Net income $5,505 $4,339
Earnings per
common share:
Basic $0.22 $0.18
Diluted $0.22 $0.18
Shares used in
computing
earnings per
common share:
Basic 24,677 23,638
Diluted 25,097 24,630
Consolidated
Balance Sheet
Information
(In thousands) (Unaudited)
Sept. 30, June 30,
1998 1998
Working capital $125,335 $118,937
Total assets 265,971 261,758
Stockholders' 175,609 168,380
equity
(a) The three months ended September 30, 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.