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FOR IMMEDIATE RELEASE WWW.QUINTILES.COM
CONTACT: Pat Grebe, Media Relations (pat.grebe@quintiles.com)
Greg Connors, Investor Relations (investors.info@quintiles.com)
(919) 998 2000
QUINTILES REPORTS 4TH QUARTER 2000 EPS OF 10 CENTS FROM CORE
OPERATIONS; ACHIEVES 3RD CONSECUTIVE QUARTER OF EARNINGS GROWTH
RESEARCH TRIANGLE PARK, N.C. - January 24, 2001 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today announced financial results for quarter and year ended Dec.
31, 2000. Earnings per share for fourth quarter 2000, excluding costs for the
company's Internet initiative, was $0.10 on a diluted basis, a 12% increase from
the previous quarter's comparable earnings per share of $0.09. Net income for
the quarter, excluding costs from the company's Internet initiative, was $11.8
million, a 12% increase from third quarter 2000 net income of $10.5 million,
excluding such costs. Net revenue for the quarter was $409.6 million, compared
to $412.3 million for third quarter 2000.
Net revenue for the year was $1.66 billion, compared to $1.61 billion for 1999.
Net income for the year was $418.9 million or $3.61 per share on a diluted
basis, compared to $109.3 million and $0.94 respectively for 1999. Net income
for the year ended Dec. 31, 2000, reflects a first quarter restructuring charge,
a net gain on the sales of assets, primarily ENVOY, which was reported in the
second quarter 2000, and includes revenues and expenses related to the company's
Internet initiative, and results from discontinued operations.
"I'm very pleased that we've achieved our third straight quarter of sequential
earnings growth and met analysts' consensus expectations for EPS," said Dennis
Gillings, chairman and chief executive officer, Quintiles Transnational Corp.
"We enter 2001 in a much stronger position compared to a year ago. Our people,
systems and processes are more efficient, and we believe business activity is
increasing and that the pharma industry is returning to a more steady state
following a period of intense merger activity."
During the fourth quarter the company held its second annual Investor Conference
in New York City, during which senior executives discussed Quintiles' strategic
direction and major initiatives. Included in these initiatives were innovative
customer partnering and gain-sharing deals, two of which Quintiles announced
recently.
"Our acquisition of Pharmacia's clinical development unit in Stockholm, Sweden,
illustrates our global ability to provide business solutions tailored to our
customers' strategic needs," said Jim Bierman, chief financial officer,
Quintiles Transnational. "Also, our newly created corporate ventures group,
PharmaBio Development, signed a creative marketing alliance with Scios to
commercialize its lead cardiovascular product. We are targeting more of these
deals in 2001."
Bierman added: "We have focused on improving cash flow from operations, and I'm
particularly pleased about the $69 million in cash flow from operations that we
achieved in the fourth quarter. This is our best quarterly performance ever and
leaves us with a positive cash flow from operations for the year."
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In other fourth quarter developments, Quintiles Transnational repurchased
377,500 shares of its common stock for an aggregate price of approximately $5.3
million as part of its previously announced stock repurchase program.
Supplemental financial information is available now under "Additional
Financials" in the Investors section of Quintiles' Web site,
www.quintiles.com/investors/additional_financials.
Quintiles Transnational's fourth quarter 2000 and full year financial briefing
will be held at 11 a.m. EST on Thursday, Jan. 25, and will be broadcast live
over the Web. Interested parties can access the Webcast at
http://www.quintiles.com/investors/broadcast_center. Additionally, a replay of
the Webcast will be available via the same link about two hours after completion
of the call. The replay will be available through Friday, Feb. 16.
Quintiles Transnational is the world's leading provider of information,
technology and services to bring new medicines to patients faster and improve
healthcare. Headquartered near Research Triangle Park, North Carolina, Quintiles
employs a global workforce of 18,000 in 38 countries. Quintiles Transnational is
a member of the S&P 500 and Fortune 1000. For more information visit the
company's Web site at www.quintiles.com.
Schedules attached to this release are an integral part of this release.
Information in this press release contains "forward-looking statements" about
Quintiles. These statements involve risks and uncertainties that could cause
actual results to differ materially, including without limitation, the risk that
our PharmaBio transactions or Informatics products and services will not
generate revenues or profit at the rate or levels we anticipate, our ability to
efficiently distribute backlog among therapeutic business units and match demand
to resources, actual operating performance, the actual savings and operating
improvements resulting from the restructuring, the ability to maintain large
client contracts or to enter into new contracts, changes in trends in the
pharmaceutical industry, the ability to create data products from data licensed
to us and the ability to operate successfully in new lines of business.
Additional factors that could cause actual results to differ materially are
discussed in the company's recent filings with the Securities and Exchange
Commission, including but not limited to its S-3 and S-4 Registration
Statements, its Annual Report on Form 10-K, its Form 8-Ks, and its other
periodic reports, including Form 10-Qs.
# # #
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PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME**
(Unaudited)
Three Months Ended December 31 Twelve Months Ended December 31
2000 1999 2000 1999*
- ------------------------------------------------------------------------------------------ -----------------------------------
In thousands, except per share data
Net revenue $409,460 $442,609 $1,658,958 $1,607,087
Costs and expenses:
Direct 237,381 252,693 989,997 883,274
General and administrative 136,740 139,864 544,430 505,166
Depreciation and amortization 23,754 22,666 92,527 82,292
- ------------------------------------------------------------------------------------------ -----------------------------------
Total costs and expenses 397,875 415,223 1,626,954 1,470,732
- ------------------------------------------------------------------------------------------ -----------------------------------
Income from operations 11,585 27,386 32,004 136,355
Total other income 6,002 3,522 17,165 5,877
- ------------------------------------------------------------------------------------------ -----------------------------------
Income before income taxes 17,587 30,908 49,169 142,232
Income tax (benefit) expense 5,803 6,529 16,227 42,742
- ------------------------------------------------------------------------------------------ -----------------------------------
Income from continuing operations 11,784 24,379 32,942 99,490
Income from discontinued operation, net of income taxes 0 10,153 16,770 39,844
- ------------------------------------------------------------------------------------------ -----------------------------------
Net income $11,784 $34,532 $49,712 $139,334
- ------------------------------------------------------------------------------------------ -----------------------------------
Basic net income per share:
Income from continuing operations $0.10 $0.21 $0.28 $0.88
Income from discontinued operation $0.00 $0.09 $0.14 $0.35
------------ -------------- ---------------- -------------
Basic net income per share $0.10 $0.30 $0.43 $1.23
============ ============== ================ =============
Diluted net income per share:
Income from continuing operations $0.10 $0.21 $0.28 $0.86
Income from discontinued operation $0.00 $0.09 $0.14 $0.34
------------ -------------- ---------------- -------------
Diluted net income per share $0.10 $0.30 $0.43 $1.20
- ------------------------------------------------------------------------------------------ -----------------------------------
Shares used in computing net income per share
Basic 115,507 115,103 115,968 113,525
Diluted 118,248 116,195 115,968 115,687
* Restated to include SMG and Minerva which were acquired in 1999 in
transactions accounted for as poolings of interests
** Proforma results exclude net revenue and expenses relating to the
Company's Internet initiative, non-recurring charges, transactions costs
and gain on disposal of discontinued operation. Also excludes $3.7 million
of amortization of certain acquired intangible assets in the income from
discontinued operation for the twelve months ended December 31, 1999.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31 Twelve Months Ended December 31
2000 1999 2000 1999*
- --------------------------------------------------------------------------------------- ------------------------------
In thousands, except per share data
Net revenue $409,614 $442,609 $1,659,910 $1,607,087
Costs and expenses:
Direct 237,908 252,693 993,795 883,274
General and administrative 144,033 139,864 565,801 505,166
Depreciation and amortization 23,762 22,666 92,567 82,292
Non-recurring charges:
Restructuring 0 0 58,592 0
Disposal of business 0 0 17,325 0
- --------------------------------------------------------------------------------------- ------------------------------
Total costs and expenses 405,703 415,223 1,728,080 1,470,732
- --------------------------------------------------------------------------------------- ------------------------------
Income (loss) from operations 3,911 27,386 (68,170) 136,355
Transaction costs 0 (214) 0 (26,322)
Other income (expense) 6,002 3,522 17,165 5,877
- --------------------------------------------------------------------------------------- ------------------------------
Total other income (expense) 6,002 3,308 17,165 (20,445)
- --------------------------------------------------------------------------------------- ------------------------------
Income (loss) before income taxes 9,913 30,694 (51,005) 115,910
Income tax (benefit) expense 3,271 6,529 (16,831) 42,742
- --------------------------------------------------------------------------------------- ------------------------------
Income (loss) from continuing operations 6,642 24,165 (34,174) 73,168
Income from discontinued operation, net of taxes 0 10,153 16,770 36,123
- --------------------------------------------------------------------------------------- ------------------------------
Income (loss) before extraordinary gain 6,642 34,318 (17,404) 109,291
Extraordinary gain from sale of discontinued
operation, net of taxes 0 0 436,327 0
- --------------------------------------------------------------------------------------- ------------------------------
Net income $6,642 $34,318 $418,923 $109,291
- --------------------------------------------------------------------------------------- ------------------------------
Basic net income per share:
Income (loss) from continuing operations $0.06 $0.21 ($0.29) $0.64
Income from discontinued operation $0.00 $0.09 $0.14 $0.32
Extraordinary gain from sale of discontinued operation $0.00 $0.00 $3.76 $0.00
--------------- ------------ ------------- ------------
Basic net income per share $0.06 $0.30 $3.61 $0.96
=============== ============ ============= ============
Diluted net income per share:
Income (loss) from continuing operations $0.06 $0.21 ($0.29) $0.63
Income from discontinued operation $0.00 $0.09 $0.14 $0.31
Extraordinary gain from sale of discontinued operation $0.00 $0.00 $3.76 $0.00
--------------- ------------ ------------- ------------
Diluted net income per share $0.06 $0.30 $3.61 $0.94
- --------------------------------------------------------------------------------------- ------------------------------
Shares used in computing net income per share
Basic 115,507 115,103 115,968 113,525
Diluted 118,248 116,195 115,968 115,687
CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
December 31, December 31,
2000 1999
- ---------------------------------------------------------------------------------------
In millions
Cash, cash equivalents and debt investments $438 $301
Investments in marketable equity securities 384 45
Working capital, excluding discontinued operation 340 69
Total assets 1,958 1,611
Debt including current portion 39 185
Shareholders' equity 1,405 992
- ---------------------------------------------------------------------------------------
* Restated to include SMG and Minerva which were acquired in 1999 in
transactions accounted for as poolings of interests
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME RECONCILIATION
FOR THE THREE MONTHS ENDED DECEMBER 31, 2000
(Unaudited)
Non-recurring
As Internet charges &
Reported Initiative gain on disposal Proforma
- -----------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share data
Net revenue $409,614 $154 $0 $409,460
Costs and expenses:
Direct 237,908 527 0 237,381
General and administrative 144,033 7,293 0 136,740
Depreciation and amortization 23,762 8 0 23,754
Non-recurring charges:
Restructuring 0 0 0 0
Disposal of business 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Total costs and expenses 405,703 7,828 0 397,875
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations 3,911 (7,674) 0 11,585
Transaction costs 0 0 0 0
Other income (expense) 6,002 0 0 6,002
- ----------------------------------------------------------------------------------------------------------------------------------
Total other income (expense) 6,002 0 0 6,002
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 9,913 (7,674) 0 17,587
Income tax (benefit) expense 3,271 (2,532) 0 5,803
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations 6,642 (5,142) 0 11,784
Income from discontinued operation, net of taxes 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) before extraordinary gain 6,642 (5,142) 0 11,784
Extraordinary gain from sale of discontinued operation,
net of taxes 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net income $6,642 ($5,142) $0 $11,784
- ----------------------------------------------------------------------------------------------------------------------------------
Basic net income per share:
Income(loss) from continuing operations $0.06 $0.10
Income from discontinued operation $0.00 $0.00
Extraordinary gain from sale of discontinued operation $0.00 $0.00
----------- --------------
Basic net income per share $0.06 $0.10
=========== ==============
Diluted net income per share:
Income(loss) from continuing operations $0.06 $0.10
Income from discontinued operation $0.00 $0.00
Extraordinary gain from sale of discontinued operation $0.00 $0.00
----------- --------------
Diluted net income per share $0.06 $0.10
=========== ==============
- -------------------------------------------------------------------------- --------------
Shares used in computing net income per share
Basic 115,507 115,507
Diluted 118,248 118,248
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME RECONCILIATION
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000
(Unaudited)
Non-recurring
As Internet charges &
Reported Initiative gain on disposal Proforma
- ---------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share data
Net revenue $1,659,910 $952 $0 $1,658,958
Costs and expenses:
Direct 993,795 3,798 0 989,997
General and administrative 565,801 21,371 0 544,430
Depreciation and amortization 92,567 40 0 92,527
Non-recurring charges:
Restructuring 58,592 0 58,592 0
Disposal of business 17,325 0 17,325 0
- ---------------------------------------------------------------------------------------------------------------------------------
Total costs and expenses 1,728,080 25,209 75,917 1,626,954
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations (68,170) (24,257) (75,917) 32,004
Transaction costs 0 0 0 0
Other income (expense) 17,165 0 0 17,165
- ---------------------------------------------------------------------------------------------------------------------------------
Total other income (expense) 17,165 0 0 17,165
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (51,005) (24,257) (75,917) 49,169
Income tax (benefit) expense (16,831) (8,005) (25,053) 16,227
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations (34,174) (16,252) (50,864) 32,942
Income from discontinued operation, net of taxes 16,770 0 0 16,770
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) before extraordinary gain (17,404) (16,252) (50,864) 49,712
Extraordinary gain from sale of discontinued operation,
net of taxes 436,327 0 436,327 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net income $418,923 ($16,252) $385,463 $49,712
- ---------------------------------------------------------------------------------------------------------------------------------
Basic net income per share:
Income(loss) from continuing operations ($0.29) $0.28
Income from discontinued operation $0.14 $0.14
Extraordinary gain from sale of discontinued operation $3.76 $0.00
----------- ------------
Basic net income per share $3.61 $0.43
=========== ============
Diluted net income per share:
Income (loss) from continuing operations ($0.29) $0.28
Income from discontinued operation $0.14 $0.14
Extraordinary gain from sale of discontinued operation $3.76 $0.00
----------- ------------
Diluted net income per share $3.61 $0.43
=========== ============
- -------------------------------------------------------------------------- ------------
Shares used in computing net income per share
Basic 115,968 115,968
Diluted 115,968 115,968