EXHIBIT 99.2
Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF INCOME
US GAAP
Third Quarter ended May 31
Unaudited
[In thousands of Canadian dollars except per share amounts]
Third Quarter Nine Months
1999 1998 1999 1998
$ $ $ $
Gross revenues 79,869 69,282 227,492 150,726
Reimbursed costs 13,412 18,211 43,915 29,317
Net revenues 66,457 51,071 183,577 121,409
Direct costs - net of
refundable tax credits 42,287 29,985 113,154 72,881
Gross profit 24,170 21,086 70,423 48,528
Expenses - net of refundable
tax credits
Selling, general and
administrative 19,066 14,686 56,371 36,122
Internal research and
development 547 1,030 2,149 2,778
Amortization of goodwill 444 379 1,081 545
Interest expense 1,014 1,427 3,609 1,988
21,071 17,522 63,210 41,433
Other income 359 696 919 697
Nonrefundable tax credits 1,000 2,800 3,250 3,600
Income before income taxes 4,458 7,060 11,382 11,592
Income taxes 1,128 3,441 4,461 4,983
Net income before merger costs 3,330 3,619 6,921 6,609
Basic income per share 0.13 0.15 0.26 0.27
before merger costs
Merger Costs -- 368 800 368
Net income 3,330 3,251 6,121 6,241
Basic and diluted income 0.13 0.13 0.23 0.25
per share
Weighted average shares 26,414,516 24,826,446 26,176,623 24,819,545
outstanding
Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF INCOME
CANADIAN GAAP
Third Quarter ended May 31
Unaudited
[In thousands of Canadian dollars except per share amounts]
Third Quarter Nine Months
1999 1998 1999 1998
$ $ $ $
Gross revenues 79,869 66,816 225,439 142,096
Reimbursed costs 13,412 18,211 43,915 29,317
Net revenues 66,457 48,605 181,524 112,779
Direct costs - net of
refundable tax credits 42,287 28,352 112,011 67,089
Gross profit 24,170 20,253 69,513 45,690
Expenses - net of refundable
tax credits
Selling, general and
administrative 19,065 14,074 55,730 34,008
Internal research and
development 547 1,030 2,149 2,778
Amortization of goodwill 936 685 2,479 1,398
Interest expense 1,014 1,403 3,584 1,909
21,562 17,192 63,942 40,093
Other income 359 695 919 894
Nonrefundable tax credits 1,000 2,800 3,250 3,600
Income before income taxes 3,967 6,556 9,740 10,091
Income taxes 1,579 3,430 4,893 4,940
Net income 2,388 3,126 4,847 5,151
Basic income per share 0.09 0.13 0.19 0.21
Weighted average shares 26,414,516 24,476,012 25,879,302 24,352,300
outstanding
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
CANADIAN GAAP
For the nine months ended May 31
Unaudited
[In thousands of Canadian dollars]
1999 1998
$ $
Retained earnings, beginning of period 18,259 9,192
Net income 4,847 5,151
Share issue costs (1,253) --
Retained earnings, end of period 21,853 14,343
Phoenix International Life Sciences Inc.
CONSOLIDATED BALANCE SHEETS
Canadian GAAP
Unaudited
[In thousands of Canadian dollars] 31-May 28-Feb 31-Aug
1999 1999 1998
$ $ $
ASSETS
Current
Cash 31,967 34,930 17,009
Marketable securities 3,500 2,550 2,000
Accounts receivable 63,289 43,378 47,712
Investment tax credits recoverable 1,853 4,822 3,362
Costs and estimated profit in excess of progress
billings on contracts in progress 35,383 28,264 27,847
Other 10,372 8,893 6,846
146,364 122,837 104,776
Capital assets 92,454 63,673 56,638
Other assets 145,071 126,241 110,056
383,889 312,751 271,470
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 10,096 5,741 831
Accounts payable and 78,783 59,661 52,041
accrued liabilities
Progress billings in excess of costs and
estimated profit on contracts
in progress 58,231 48,263 34,882
Current portion of long-term debt and
capital lease
obligations 9,185 7,497 7,080
156,295 121,162 94,834
Long-term debt and
capital lease obligations 60,539 41,200 42,440
Other deferred credits 8,404 3,761 4,243
225,238 166,123 141,517
Shareholders' equity
Capital stock 137,945 125,239 110,559
Retained earnings 21,853 20,718 18,259
Cumulative translation adjustment (1,147) 671 1,135
158,651 146,628 129,953
383,889 312,751 271,470
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
31-May-99
1) These interim financial statements are the responsibilty 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.
2) Diluted earnings per share have not been presented as they do not
differ materially from basic earnings per share.
Phoenix International Life Sciences Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOW
CANADIAN GAAP
For the nine months ended May 31,
Unaudited
[In thousands of Canadian dollars]
1999 1998
$ $
OPERATING ACTIVITIES
Net income 4,847 5,151
Items not affecting cash
Amortization 11,443 8,579
16,290 13,730
Net change in non-cash working capital items related
to operations 26,176 1,312
Cash provided by operating activities 42,466 15,042
INVESTING ACTIVITIES
Capital asset additions (22,458) (8,490)
Acquistion of IRG -- (35,062)
Acquisition of Chrysalis (22,203) --
Proceeds on disposal of KCAS 3,672 --
Other assets (678) 345
Cash used in investing activities (41,667) (43,207)
FINANCING ACTIVITIES
Assumption of long-term debt 28,640 42,200
Repayment of long-term debt (19,630) (2,774)
Other deferred credits and long-term liabilities (674) 217
Issue of shares 454 11
Increase (decrease) in bank indebtedness 8,276 4,869
Proceeds on sale (purchase) of marketable securities (1,235) 5,250
Repayment of debentures -- (5,250)
Cash provided by financing activities 15,831 44,523
Effect of exchange rate changes on cash (1,672) 92
Increase in cash during the period 14,958 16,358
Cash beginning of period 17,009 2,530
Cash end of period 31,967 18,888