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FOR IMMEDIATE RELEASE www.quintiles.com
CONTACT: Pat Grebe, Media Relations (pat.grebe@quintiles.com)
Greg Connors, Investor Relations (invest@quintiles.com)
(919) 998 2000
QUINTILES REPORTS 1ST QUARTER 2001 EARNINGS; EXCEEDS ANALYSTS'
CONSENSUS EXPECTATIONS FOR EPS
GAAP EPS OF $0.06, PRO FORMA EPS OF $0.10
RESEARCH TRIANGLE PARK, N.C. - April 18, 2001 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today announced financial results for first quarter 2001. Net
revenue for the quarter ended March 31, 2001, was $404.5 million compared to
$414.8 million for first quarter 2000. Net income for the quarter was $7.8
million compared to a loss of $26.6 million for first quarter 2000. First
quarter 2001 earnings per share were $0.06 compared to a loss of $0.23 per share
for first quarter 2000. Pro forma net income was $11.8 million for first quarter
2001, or $0.10 per share on a diluted basis, compared to pro forma income from
continuing operations of $3.9 million, or $0.03 per share on a diluted basis,
for first quarter 2000. Pro forma figures exclude expenses related to the
company's Internet initiative and year 2000 restructuring.
On a sequential quarterly basis, first quarter 2001 net revenue of $404.5
million compared to $409.6 million for the fourth quarter 2000. Net income for
the quarter of $7.8 million, or $0.06 per share on a diluted basis, compared to
net income of $6.6 million, or $0.06 per share on a diluted basis, for fourth
quarter 2000. Pro forma net income and diluted earnings per share for first
quarter 2001 were unchanged from fourth quarter 2000.
"We're pleased that we exceeded analysts' EPS expectations," said Quintiles
Chairman Dennis Gillings, Ph.D. "The quarter saw a number of significant events,
including our announcement that Pam Kirby would join Quintiles as chief
executive officer effective April 2. I welcome Pam's leadership and the customer
perspective that she brings to our organization.
"The first quarter also saw our corporate ventures group, PharmaBio Development,
help facilitate several deals tied to the product development and
commercialization sides of our business. One such deal was our previously
announced gain-sharing alliance with Scios to commercialize its lead product,
Natrecor. We are targeting more of these deals in 2001."
Kirby, who joined Quintiles from the pharmaceutical division of F. Hoffmann-La
Roche Ltd., in Basel, Switzerland, said: "In general we're seeing a pickup in
new business in the marketplace in early and later phase product development. If
early phase work is an indicator of what comes later in the pipeline, this could
signal more clinical business for our industry in the second half of the year."
Quintiles Transnational Chief Financial Officer Jim Bierman said: "We're pleased
to have achieved $60 million in cash flow from operations during the first
quarter, following the record cash flow from operations that we reported last
quarter."
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In other first quarter developments, Quintiles repurchased 100,000 shares of its
common stock for an aggregate price of approximately $1.7 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 first quarter 2001 financial briefing will be held at
11 a.m. EDT on Thursday, April 19, 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 5 p.m., Friday, May 4, 2001.
Quintiles Transnational is the world's leading provider of information,
technology and services to help 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 39 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 the
market for our products and services will not grow as we expect, the risk that
our PharmaBio transactions 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, and the ability
to operate successfully in new lines of business. Our data products business
remains subject to state and federal regulations, and contracts with data
vendors, including WebMD. 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 Annual
Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including
Form 10-Qs.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31
2001 2000
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In thousands, except per share data
Net revenue $404,470 $414,845
Costs and expenses:
Direct 241,006 252,409
General and administrative 134,717 138,129
Depreciation and amortization 22,653 23,122
Restructuring 0 58,592
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Total costs and expenses 398,376 472,252
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Income (loss) from operations 6,094 (57,407)
Other income (expense) 5,534 1,948
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Income (loss) before income taxes 11,628 (55,459)
Income tax expense (benefit) 3,837 (18,300)
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Income (loss) from continuing operations 7,791 (37,159)
Income from discontinued operation, net of taxes 0 10,594
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Net income (loss) $7,791 ($26,565)
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Basic net income (loss) per share:
Income (loss) from continuing operations $0.07 ($0.32)
Income from discontinued operation $0.00 $0.09
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Basic net income (loss) per share $0.07 ($0.23)
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Diluted net income (loss) per share:
Income (loss) from continuing operations $0.06 ($0.32)
Income from discontinued operation $0.00 $0.09
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Diluted net income (loss) per share $0.06 ($0.23)
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Shares used in computing net income (loss) per share
Basic 116,338 115,392
Diluted 120,064 115,392
CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
March 31, December 31,
2001 2000
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In millions
Cash, cash equivalents and debt investments $454 $438
Investments in marketable equity securities 258 384
Working capital 368 309
Total assets 1,890 1,962
Debt including current portion 34 39
Shareholders' equity 1,321 1,405
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