Exhibit 99
COVALENT GROUP, INC.
REPORTS PROFITABLE FIRST QUARTER RESULTS
WAYNE, PA, April 13, 1999: Covalent Group, Inc. (Nasdaq: CVGR) today announced
results for the first quarter of 1999. Revenues for the quarter increased 46% to
$3,265,000 compared to $2,240,000 for the same period last year. Net income for
the three months ended March 31, 1999 amounted to $345,000 or $.03 per share
(basic and diluted) as compared to a net loss of $266,000 or $(.02) per share
for the same period last year.
The Company's contractual backlog at March 31, 1999 exceeded $25 million. The
current backlog represents the value of future revenues to be earned from signed
contracts, however does not include several projects for which signed contracts
have not yet been received, but for which work has commenced under letters of
intent.
Bruce LaMont, Chief Executive Officer commented, "We are extremely proud of the
results of the first quarter in what we expect will be a very successful year.
Our revenues increased by over $1 million (1Q99 vs. 1Q98) without a significant
increase in operating expenses. This reflects increased efficiencies as well as
cost savings resulting from significant consolidation within our operating
structure. The multi-year contracts that we signed in the latter part of 1998
give us an excellent base on which to build for the future. In addition, we
have recently hired Jeffrey Flecken as Director of Business Development. Mr.
Flecken, who was previously Director of Sales for a large multi-national CRO,
brings added depth to our efforts for future growth of the Company. Finally, we
expect 1999 to continue to benefit from the recent introduction of new products
(e.g., TeleTrial) to Covalent's capabilities to conduct clinical research and
development studies."
Consolidated Statements of Operations
(all amounts in thousands, except per share amounts)
For the Three Months
Ended March 31,
------------------------
1999 1998
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(Unaudited)
Revenues $3,265 $2,240
Operating Expenses:
Direct 1,893 1,854
Selling and Administrative 839 818
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Income (Loss) from Operations 533 (432)
Interest Income 14 30
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Income (Loss) before Income Taxes 547 (402)
Income Tax Provision (Benefit) 202 (136)
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Net Income (Loss) $ 345 $ (266)
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Net Income (Loss) Per Common Share
Basic and Diluted $0.03 $(0.02)
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Covalent provides drug development services and health management solutions to
pharmaceutical, biotechnology, and device manufacturers as well as managed care
organizations. To aid its customers, Covalent has developed several currently
available proprietary products utilizing interactive speech recognition
technology including TeleTrial, for use in clinical trials, and Virtual
HouseCall, a disease assessment system.
This press release contains forward-looking statements identified by words such
as "believe," "expect" and similar expressions. Backlog is subject to
modification or possible cancellation. Actual results might differ materially
from those projected in, expressed in or implied by, the forward-looking
statements. Potential risks and uncertainties that could affect the Company's
future operating results include, without limitation: (i) the Company's success
in attracting new business; (ii) the size, duration and timing of clinical
trials; and (iii) the termination, delay or cancellation of clinical trials.
Additional information concerning factors that could cause actual results to
materially differ from those in forward-looking statements is contained in
Covalent's SEC filings, including periodic reports under the Securities Exchange
Act of 1934, as amended, copies of which are available upon request from
Covalent's investor relations department.
Company Contact: William Robinson, CFO 610-975-9533
Contact us on-line: http://www.cracorp.com/