Exhibit 99.1
PHOENIX INTERNATIONAL ANNOUNCES FISCAL 2000
FIRST QUARTER RESULTS
. Phoenix International posts revenue growth of 27%
. Record first quarter net income from operations of $0.14/share before
special items
Montreal, January 25, 2000 - Phoenix International Life Sciences (NASDAQ:PHXI;
TSE:PHX), one of the world's leading contract research organizations, today
announced its fiscal 2000 first quarter financial results for the period ended
November 30, 1999. (All figures are in Canadian dollars and in accordance with
U.S. GAAP.) The company reported consolidated net revenues of $77.2 million and
record quarterly net income from operations of $3.8 million or $0.14 per share,
before restructuring costs.
Revenue for the first quarter of fiscal 2000 increased 27% to $77.2 million,
compared with $60.7 million in the first quarter of fiscal 1999. Net income from
operations for the first quarter was $3.8 million or $0.14 per share, before
restructuring costs of $2.2 million, and a $1.8 million profit on the sale of
its pharmacology facility in Laval, France, and net income after such items was
$3.4 million or $0.12 per share. In the corresponding period in fiscal 1999, net
income was $3.5 million or $0.13 per share, before merger costs of $800,000.
"We are pleased with our first quarter performance, particularly in Early Stage
Development, and management is focused on improving performance throughout
business lines. We are committed to increasing value for all of our
stakeholders," said Ian Lennox, CEO, Phoenix International.
Early Stage Development grew significantly as a result of the company's record
revenues and profits in its global Bioanalytical operations, and modest
improvement in revenues from global Phase I and from the transgenic and
toxicology business acquisitions of 1999. Late Stage Development results were
mixed. The company's strong performance in Clinical Research in North America
was offset by disappointing operating results in Europe/Asia.
Segmented Results
(Cdn$, in millions, U.S. GAAP)
1/st/ Quarter
Revenue 2000 1999 %
Early Stage Development 51.5 34.5 49%
Late Stage Development 25.7 26.2 (2%)
Total 77.2 60.7 27%
EBIT (before special charges, sale of
Pharmacology facility and merger costs)
Early Stage Development 5.3 3.9 36%
Late Stage Development 1.2 1.7 (30%)
Total 6.5 5.6 16%
About Phoenix International
Phoenix International is one of the world's leading contract research
organizations. The Company is a global leader in early stage pharmaceutical
development and has a growing presence in late stage pharmaceutical development.
Headquartered in Montreal, Quebec, the Company employs over 2,000 people in 19
countries around the world. Phoenix International is on the worldwide web at
www.pils.com.
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This release contains "forward-looking" statements regarding future results and
events, including statements regarding expected future revenues, earnings and
growth rates and goals and operating plans of management. Phoenix'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 Phoenix 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; competition;
any claims for patent infringement; unanticipated costs in connection with Year
2000 conversion; the ability to obtain future financing; adverse regulatory
developments; foreign exchange rate fluctuations; and uncertainty surrounding
the Euro.
FOR MORE INFORMATION, PLEASE CONTACT:
MEDIA: ANALYST CONTACT:
RICHARD GAREAU DAVID MOSZKOWSKI, C.A.
Director of Communications Senior Vice President and CFO
Phoenix International Life Sciences Phoenix International Life Sciences
Inc. Inc.
Tel: (514) 333-0033, extension 4638 Tel: (514) 333-0033 Fax: (514) 335-8351
E-mail: richard.gareau@pils.com E-mail: david.moszkowski@pils.com
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Phoenix International Life Sciences Inc.
CONSOLIDATED BALANCE SHEETS
Canadian GAAP
Unaudited
[In millions of Canadian dollars] November 30 August 31
1999 1999
$ $
- -------------------------------------------------------------------------------
ASSETS
Current
Cash 41.4 40.9
Marketable securities 3.0 0.5
Accounts receivable 73.4 62.7
Investment tax credits recoverable 2.8 2.2
Costs and estimated profit in excess of progress
billings on contracts in progress 24.6 38.7
Other 9.9 8.1
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155.1 153.1
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Capital assets 101.7 99.4
Other assets 133.7 136.7
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390.5 389.2
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 11.3 1.4
Accounts payable and accrued liabilities 83.3 82.2
Progress billings in excess of costs and estimated
profit on contracts in progress 56.9 62.2
Current portion of long-term debt and capital lease
obligations 13.4 15.7
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164.9 161.5
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Long-term debt and capital lease obligations 61.9 64.3
Other deferred credits 9.9 10.0
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236.7 235.8
Shareholders' equity
Capital stock 138.1 138.1
Retained earnings 16.7 15.6
Cumulative translation adjustment (1.0) (0.3)
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153.8 153.4
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390.5 389.2
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
November 30, 1999
1) These interim financial statements are the responsibility of management and,
in its opinion, include all the adjustments, which are of a normal recurring
nature, necessary for a fair statement of the results for the interim period
presented.
Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF INCOME
US GAAP
First Quarter, ended November 30
Unaudited
[In millions of Canadian dollars except per share amounts]
1999 1998
$ $
- ------------------------ -----------------------------------------------
Gross revenues 95.7 76.2
Reimbursed costs 18.5 15.5
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Net revenues 77.2 60.7
Direct costs - net of
refundable tax credits 47.6 35.8
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Gross profit 29.6 24.9
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Expenses - net of refundable
tax credits
Selling, general and
administrative 21.2 18.2
Internal research and
development 1.2 0.9
Interest expense 1.9 1.5
Amortization of goodwill 0.7 0.3
Restructuring costs 2.2 -
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27.2 20.9
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Other income 0.5 0.3
Gain on disposal of Pharamacolgy 1.8 -
Merger costs - 0.8
Non-refundable tax credits 1.8 1.5
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Income before income taxes 6.5 5.0
Income taxes 3.1 2.3
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Net income 3.4 2.7
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Basic earnings per share 12 cents 10 cents
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Weighted average shares outstanding 27,145,247 26,047,189
============== ==============
Net income before special items 3.8 3.5
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Basic earnings per share before special
items 14 cents 13 cents
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Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF INCOME
Canadian GAAP
First Quarter, ended November 30
Unaudited
[In millions of Canadian dollars except per share amounts]
1999 1998
$ $
- -------------------------------- ------------------------------------
Gross revenues 95.7 74.1
Reimbursed costs 18.5 15.5
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Net revenues 77.2 58.6
Direct costs - net of
refundable tax credits 47.6 34.7
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Gross profit 29.6 23.9
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Expenses - net of refundable
tax credits
Selling, general and
administrative 21.2 17.5
Internal research and
development 1.2 0.9
Interest expense 1.9 1.4
Amortization of goodwill 1.3 0.7
Restructuring costs 2.1 -
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27.7 20.5
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Other income 0.5 0.2
Non-refundable tax credits 1.8 1.5
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Income (loss) before income taxes 4.2 5.1
Income taxes 3.1 2.3
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Net Income (loss) for the period 1.1 2.8
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Basic earnings (loss) per share 4 cents 11 cents
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Weighted average shares outstanding 27,145,247 25,155,226
============== ==============
Net income before special items 3.2 2.8
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Basic earnings per share before
special items 12 cents 11 cents
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CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
Canadian GAAP
For the three months ended November 30
Unaudited
[In thousands of Canadian dollars]
1998 1998
$ $
- -------------------------------- ------------------------------------
Retained earnings, beginning of period 15.6 18.2
Net income (loss) 1.0 2.9
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Retained earnings, end of period 16.6 21.1
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Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOW
Canadian GAAP
For the three month period ended November 30
Unaudited
[In millions of Canadian dollars]
1999 1998
$ $
- --------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income 1.1 2.9
Items not affecting cash
Amortization 5.1 3.7
Net change in non-cash working capital items related
to operations (4.7) (0.5)
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Cash provided by operating activities 1.5 6.1
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INVESTING ACTIVITIES
Capital asset additions (7.9) (3.9)
Proceeds on disposal of Laval Pharmacology 3.2 -
Investment in Chrysalis - (7.2)
Proceeds on disposal of KCAS - 3.7
Other assets - (0.2)
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Cash used in investing activities (4.7) (7.6)
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FINANCING ACTIVITIES
Assumption of long-term debt 5.5 7.2
Repayment of long-term debt (9.0) (6.5)
Increase in bank indebtedness 9.9 2.7
Other deferred credits and long-term liabilities (0.1) (0.5)
Purchase of marketable securities (2.6) -
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Cash provided by financing activities 3.7 2.9
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Increase in cash position during the period 0.5 1.4
Cash beginning of period 40.9 17.0
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Cash end of period 41.4 18.4
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