Exhibit 99.1
IMS Health Reports Strong Momentum in Second-Quarter 2005,
With Double-Digit Revenue and Earnings-Per-Share Growth
FAIRFIELD, Conn.--(BUSINESS WIRE)--July 20, 2005--IMS Health
(NYSE: RX) today announced second-quarter 2005 revenues of $433.3
million, up 14 percent (12 percent constant dollar), compared with
revenues of $379.6 million for the second quarter of 2004.
Second-quarter diluted earnings per share on an SEC-reported basis was
$0.41, up 52 percent, compared with $0.27 in the 2004 second quarter.
Second-quarter adjusted diluted earnings per share was $0.34, compared
with $0.29 per share in the same period of 2004, an increase of 17
percent. Net income on an SEC-reported basis was $93.2 million, up 43
percent compared with net income of $65.1 million in the year-earlier
quarter. On an adjusted basis, net income for the second quarter of
2005 was $77.8 million, up 12 percent, compared with net income of
$69.5 million in the prior year.
"Our second-quarter results were strong around the world, led by
the U.S. and Europe. In fact, our teams delivered double-digit
reported revenue gains in all regions-the Americas, Europe and Asia
Pacific," said David R. Carlucci, IMS chief executive officer and
president. "IMS's outstanding performance demonstrates our continued
success in delivering essential market intelligence to help clients
with their most critical business decisions. Our momentum is strong,
and we remain confident that we will achieve our financial objectives
for the year."
Operating income in the second quarter was $103.3 million on an
SEC-reported basis and $110.7 million on an adjusted basis, compared
with operating income of $102.5 million on both an SEC-reported and
adjusted basis in the year-earlier period. Adjusted operating income
excludes a charge of $7.4 million for costs associated with the
proposed merger of IMS and VNU, N.V. Operating income rose 1 percent
on an SEC-reported basis and 8 percent on an adjusted basis (7 percent
constant dollar).
Adjusted results for the second quarter of 2005 exclude the
merger-related costs mentioned above, certain net pre-tax income items
totaling $5.1 million, and certain net tax benefits of $17.6 million,
including a $24.3 million tax benefit related to a technical
correction Congress passed in the American Jobs Creation Act of 2004
(AJCA).
Adjusted results for the 2004 second quarter exclude certain net
pre-tax expense items totaling approximately $0.4 million, as well as
certain net tax provisions of approximately $4.0 million. See Tables 5
and 7 for a reconciliation between SEC and adjusted results for the
quarters ended June 30, 2005 and 2004, respectively.
On July 11, 2005, IMS announced a definitive agreement to merge
with VNU, a global information and media company with leading market
positions and recognized brands in marketing information (ACNielsen),
media measurement and information (Nielsen Media Research) and
business information (publications and trade shows). The merger, which
is expected to be completed in the first quarter of 2006, is subject
to the approval of shareholders of IMS and VNU, regulatory approvals
and other customary conditions.
First-Half 2005 Results
For the first half of 2005, revenues were $844.3 million, up 14
percent (11 percent constant dollar) over the first six months of
2004. SEC-reported diluted earnings per share for the 2005 first half
was $0.54, compared with $0.61 in the year-earlier period, down 11
percent. Adjusted diluted earnings per share in the 2005 first half
was $0.63, a 17 percent increase over the $0.54 reported in the
prior-year period. On an SEC-reported basis, net income for the first
six months of this year was $123.5 million, compared with $146.2
million for the year-ago period, a 16 percent decrease. On an adjusted
basis, net income for the 2005 first half was $145.9 million, up 11
percent, compared with adjusted net income of $131.0 million in the
first half of 2004.
For the first six months of 2005, operating income was $200.2
million on an SEC-reported basis and $207.6 million on an adjusted
basis, compared with $198.7 million on both an SEC-reported and
adjusted basis in the year-earlier period. Operating income in the
2005 first half rose 1 percent on an SEC-reported basis and was up 4
percent on an adjusted basis (3 percent constant dollar) from the same
period last year.
Adjusted results for the 2005 first half exclude the
merger-related costs mentioned above and certain net pre-tax income
items totaling approximately $14.5 million, as well as certain net tax
provisions of approximately $29.5 million, primarily related to the
tax recorded in the first half of 2005 on cash IMS intends to
repatriate under the AJCA. Adjusted results for the first half of 2004
exclude certain net pre-tax income items of approximately $11.3
million and certain net tax benefits of approximately $3.9 million.
See Tables 6 and 8 for a reconciliation between SEC and adjusted
results for the six months ended June 30, 2005 and 2004, respectively.
Balance Sheet Highlights
IMS's cash, cash equivalents and short-term marketable securities
as of June 30, 2005 was $399.8 million, compared with $460.0 million
on December 31, 2004. Total debt as of June 30, 2005 was $710.4
million, up from $626.7 million at the end of 2004. See Table 9 for
selected consolidated balance sheet items.
Share Repurchase Program, Shares Outstanding
IMS repurchased approximately 2.3 million shares in the second
quarter at a total cost of $55.4 million. Year-to-date, the company
has repurchased 6.2 million shares at a total cost of $147.9 million.
As a result of the proposed merger with VNU, IMS has suspended its
current share buyback program.
The number of shares outstanding as of June 30, 2005 was
approximately 225.8 million, compared with 233.9 million the same
period a year ago.
Repatriation
On April 19, 2005, IMS announced that it is taking the opportunity
provided by the AJCA to repatriate approximately $650 million of
previously undistributed foreign earnings. IMS will continue with its
previously announced plans to repatriate all of the $650 million
during 2005.
About IMS
Operating in more than 100 countries, IMS Health is the world's
leading provider of information solutions to the pharmaceutical and
healthcare industries. With $1.6 billion in 2004 revenue and more than
50 years of industry experience, IMS offers leading-edge business
intelligence products and services that are integral to clients'
day-to-day operations, including portfolio optimization capabilities;
launch and brand management solutions; sales force effectiveness
innovations; managed care and over-the-counter offerings; and
consulting and services solutions that improve ROI and the delivery of
quality healthcare worldwide. Additional information is available at
http://www.imshealth.com.
Conference Call and Webcast Details
IMS will host a conference call at 8:30 a.m. (EDT) today to
discuss its second-quarter 2005 financial results. To participate,
please dial 1-800-396-0424 (U.S. and Canada) and 1-415-908-4714
(outside the United States and Canada) approximately 15 minutes before
the scheduled start of the call. The conference call also will be
accessible live on the Investor Relations section of the IMS Website
at www.imshealth.com.
A replay of the conference call will be available online on the
Investor Relations section of the IMS Website and via telephone by
dialing 1-800-633-8284 (U.S. and Canada) or 1-402-977-9140 (outside
the U.S. and Canada), and entering access code 21251512.
Forward-Looking Statements
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Although IMS
Health believes the expectations contained in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove correct. This information may involve risks
and uncertainties that could cause actual results of IMS Health to
differ materially from the forward-looking statements. Factors that
could cause or contribute to such differences include, but are not
limited to (i) the risks associated with operating on a global basis,
including fluctuations in the value of foreign currencies relative to
the U.S. dollar, and the ability to successfully hedge such risks,
(ii) to the extent IMS Health seeks growth through acquisitions and
joint ventures, the ability to identify, consummate and integrate
acquisitions and joint ventures on satisfactory terms, (iii) the
ability to develop new or advanced technologies and systems for its
businesses on time and on a cost-effective basis, (iv) regulatory,
legislative and enforcement initiatives, particularly in the areas of
medical privacy and tax, (v) to the extent unforeseen cash needs
arise, the ability to obtain financing on favorable terms, (vi)
deterioration in economic conditions, particularly in the
pharmaceutical, healthcare or other industries in which IMS Health's
customers operate, and (vii) the inability, for any reason, to
consummate the merger with VNU, N.V., as expected. Additional
information on factors that may affect the business and financial
results of the Company can be found in filings of the Company made
from time to time with the Securities and Exchange Commission.
Table 1
IMS Health
SEC Income Statement (a)
Three Months Ended June 30
(unaudited, in millions except per share)
2005 2004 % Fav
SEC SEC (Unfav)
--------------------------
Revenue (b)
Sales Force Effectiveness $207.5 $190.0 9 %
Portfolio Optimization 122.3 111.0 10
Launch, Brand and Other 103.5 78.6 32
------- -------
Total 433.3 379.6 14
Operating Expenses (c)
Operating Costs (189.5) (163.2) (16)
Selling and Administrative (107.4) (91.6) (17)
Depreciation and Amortization (25.6) (22.3) (15)
Merger Costs (f) (7.4) 0.0 NM
------- -------
Total (330.0) (277.1) (19)
Operating Income 103.3 102.5 1
Interest Expense, net (4.6) (2.1)
Gains (Losses) from Investments, net (e) (0.3) 2.1
Losses on Issuance of Investees' Stock, net 0.0 (0.1)
Other Income (Expense), net (g) 8.6 (1.6)
------- -------
Pretax Income 107.0 100.8 6
Provision for Income Taxes (h) (13.9) (35.4)
TriZetto Equity Loss, net (d) 0.0 (0.3)
------- -------
Net Income $93.2 $65.1 43
Diluted EPS:
Total Diluted EPS $0.41 $0.27 52 %
Shares Outstanding:
Weighted Average Diluted 229.5 240.3 4 %
End-of-Period Actual 225.8 233.9 3
The accompanying notes are an integral part of these financial
tables.
Table 2
IMS Health
SEC Income Statement (a)
Six Months Ended June 30
(unaudited, in millions except per share)
2005 2004 % Fav
SEC SEC (Unfav)
--------------------------
Revenue (b)
Sales Force Effectiveness $407.4 $369.7 10 %
Portfolio Optimization 247.8 225.8 10
Launch, Brand and Other 189.1 145.7 30
------- -------
Total 844.3 741.2 14
Operating Expenses (c)
Operating Costs (372.9) (315.9) (18)
Selling and Administrative (213.5) (182.5) (17)
Depreciation and Amortization (50.3) (44.0) (14)
Merger Costs (f) (7.4) 0.0 NM
------- -------
Total (644.1) (542.5) (19)
Operating Income 200.2 198.7 1
Interest Expense, net (8.4) (5.4)
Gains from Investments, net (e) 2.4 8.5
Losses on Issuance of Investees' Stock, net 0.0 (0.1)
Other Income, net (g) 17.9 1.2
------- -------
Pretax Income 212.0 202.9 4
Provision for Income Taxes (h) (88.5) (55.5)
TriZetto Equity Loss, net (d) 0.0 (1.3)
------- -------
Net Income $123.5 $146.2 (16)
Diluted EPS:
Total Diluted EPS $0.54 $0.61 (11)%
Shares Outstanding:
Weighted Average Diluted 230.5 240.3 4 %
End-of-Period Actual 225.8 233.9 3
The accompanying notes are an integral part of these financial
tables.
Table 3
IMS Health
Adjusted Income Statement (a)
Three Months Ended June 30
(unaudited, in millions except per share)
Constant
2005 2004 % Fav $ Growth
Adjusted Adjusted (Unfav) (j)
--------------------------------------
Revenue (b)
Sales Force Effectiveness $207.5 $190.0 9 % 7 %
Portfolio Optimization 122.3 111.0 10 8
Launch, Brand and Other 103.5 78.6 32 29
-------- --------
Total 433.3 379.6 14 12
Operating Expenses (c)
Operating Costs (189.5) (163.2) (16)
Selling and Administrative (107.4) (91.6) (17)
Depreciation and Amortization (25.6) (22.3) (15)
-------- --------
Total (322.6) (277.1) (16)
Operating Income 110.7 102.5 8 7
Interest Expense, net (4.6) (2.1) (124)
Other Income, net 3.2 0.8 NM
-------- --------
Pretax Income 109.3 101.2 8
Provision for Income Taxes (31.5) (31.4) 0
TriZetto Equity Loss, net (d) 0.0 (0.3) NM
-------- --------
Net Income $77.8 $69.5 12 %
Diluted EPS:
Total Diluted EPS $0.34 $0.29 17 %
Shares Outstanding:
Weighted Average Diluted 229.5 240.3 5 %
End-of-Period Actual 225.8 233.9 3
The accompanying notes are an integral part of these financial
tables.
Table 4
IMS Health
Adjusted Income Statement (a)
Six Months Ended June 30
(unaudited, in millions except per share)
Constant
2005 2004 % Fav $ Growth
Adjusted Adjusted (Unfav) (j)
--------------------------------------
Revenue (b)
Sales Force Effectiveness $407.4 $369.7 10 % 8 %
Portfolio Optimization 247.8 225.8 10 7
Launch, Brand and Other 189.1 145.7 30 27
-------- --------
Total 844.3 741.2 14 11
Operating Expenses (c)
Operating Costs (372.9) (315.9) (18)
Selling and Administrative (213.5) (182.5) (17)
Depreciation and Amortization (50.3) (44.0) (14)
-------- --------
Total (636.7) (542.5) (17)
Operating Income 207.6 198.7 4 3
Interest Expense, net (8.4) (5.4) (57)
Gain from Investments, net (e) 3.0 0.0 NM
Other Income (Expense), net 2.8 (1.7) NM
-------- --------
Pretax Income 205.0 191.6 7
Provision for Income Taxes (59.1) (59.4) 1
TriZetto Equity Loss, net (d) 0.0 (1.3) NM
-------- --------
Net Income $145.9 $131.0 11 %
Diluted EPS:
Total Diluted EPS $0.63 $0.54 17 %
Shares Outstanding:
Weighted Average Diluted 230.5 240.3 4 %
End-of-Period Actual 225.8 233.9 3
The accompanying notes are an integral part of these financial
tables.
Table 5
IMS Health
Reconciliation from SEC to Adjusted Income Statement (a)
Three Months Ended June 30, 2005
(unaudited, in millions except per share)
Adjusted
SEC Q2 Adjustments Q2
-----------------------------------
Revenue (b)
Sales Force Effectiveness $207.5 $0.0 $207.5
Portfolio Optimization 122.3 0.0 122.3
Launch, Brand and Other 103.5 0.0 103.5
------- ------- -------
Total 433.3 0.0 433.3
Operating Expenses (c)
Operating Costs (189.5) 0.0 (189.5)
Selling and Administrative (107.4) 0.0 (107.4)
Depreciation and Amortization (25.6) 0.0 (25.6)
Merger Costs (f) (7.4) 7.4 0.0
------- ------- -------
Total (330.0) 7.4 (322.6)
Operating Income 103.3 7.4 110.7
Interest Expense, net (4.6) 0.0 (4.6)
Losses from Investments, net (e) (0.3) 0.3 0.0
Other Income, net (g) 8.6 (5.4) 3.2
------- ------- -------
Pretax Income 107.0 2.3 109.3
Provision for Income Taxes (h) (13.9) (17.6) (31.5)
------- ------- -------
Net Income $93.2 $(15.4) $77.8
Diluted EPS:
Total Diluted EPS $0.41 $(0.07) $0.34
Shares Outstanding:
Weighted Average Diluted 229.5 0.0 229.5
End-of-Period Actual 225.8 0.0 225.8
The accompanying notes are an integral part of these financial
tables.
Table 6
IMS Health
Reconciliation from SEC to Adjusted Income Statement (a)
Six Months Ended June 30, 2005
(unaudited, in millions except per share)
Adjusted
SEC Q2 Adjustments Q2
-----------------------------------
Revenue (b)
Sales Force Effectiveness $407.4 $0.0 $407.4
Portfolio Optimization 247.8 0.0 247.8
Launch, Brand and Other 189.1 0.0 189.1
------- ------- -------
Total 844.3 0.0 844.3
Operating Expenses (c)
Operating Costs (372.9) 0.0 (372.9)
Selling and Administrative (213.5) 0.0 (213.5)
Depreciation and Amortization (50.3) 0.0 (50.3)
Merger Costs (f) (7.4) 7.4 0.0
------- ------- -------
Total (644.1) 7.4 (636.7)
Operating Income 200.2 7.4 207.6
Interest Expense, net (8.4) 0.0 (8.4)
Gains from Investments, net (e) 2.4 0.7 3.0
Other Income, net (g) 17.9 (15.1) 2.8
------- ------- -------
Pretax Income 212.0 (7.1) 205.0
Provision for Income Taxes (h) (88.5) 29.5 (59.1)
------- ------- -------
Net Income $123.5 $22.4 $145.9
Diluted EPS:
Total Diluted EPS $0.54 $0.09 $0.63
Shares Outstanding:
Weighted Average Diluted 230.5 0.0 230.5
End-of-Period Actual 225.8 0.0 225.8
The accompanying notes are an integral part of these financial
tables.
Table 7
IMS Health
Reconciliation from SEC to Adjusted Income Statement (a)
Three Months Ended June 30, 2004
(unaudited, in millions except per share)
Adjusted
SEC Q2 Adjustments Q2
-----------------------------------
Revenue (b)
Sales Force Effectiveness $190.0 $0.0 $190.0
Portfolio Optimization 111.0 0.0 111.0
Launch, Brand and Other 78.6 0.0 78.6
------- ------- -------
Total 379.6 0.0 379.6
Operating Expenses (c)
Operating Costs (163.2) 0.0 (163.2)
Selling and Administrative (91.6) 0.0 (91.6)
Depreciation and Amortization (22.3) 0.0 (22.3)
------- ------- -------
Total (277.1) 0.0 (277.1)
Operating Income 102.5 0.0 102.5
Interest Expense, net (2.1) 0.0 (2.1)
Gains from Investments, net (e) 2.1 (2.1) 0.0
Losses on Issuance of Investees'
Stock, net (0.1) 0.1 0.0
Other Income (Expense), net (g) (1.6) 2.4 0.8
------- ------- -------
Pretax Income 100.8 0.4 101.2
Provision for Income Taxes (h) (35.4) 4.0 (31.4)
TriZetto Equity Loss, net (d) (0.3) 0.0 (0.3)
------- ------- -------
Net Income $65.1 $4.4 $69.5
Diluted EPS:
Total Diluted EPS $0.27 $0.02 $0.29
Shares Outstanding:
Weighted Average Diluted 240.3 0.0 240.3
End-of-Period Actual 233.9 0.0 233.9
The accompanying notes are an integral part of these financial
tables.
Table 8
IMS Health
Reconciliation from SEC to Adjusted Income Statement (a)
Six Months Ended June 30, 2004
(unaudited, in millions except per share)
Adjusted
SEC Q2 Adjustments Q2
-----------------------------------
Revenue (b)
Sales Force Effectiveness $369.7 $0.0 $369.7
Portfolio Optimization 225.8 0.0 225.8
Launch, Brand and Other 145.7 0.0 145.7
------- ------- -------
Total 741.2 0.0 741.2
Operating Expenses (c)
Operating Costs (315.9) 0.0 (315.9)
Selling and Administrative (182.5) 0.0 (182.5)
Depreciation and Amortization (44.0) 0.0 (44.0)
------- ------- -------
Total (542.5) 0.0 (542.5)
Operating Income 198.7 0.0 198.7
Interest Expense, net (5.4) 0.0 (5.4)
Gains from Investments, net (e) 8.5 (8.5) 0.0
Losses on Issuance of Investees'
Stock, net (0.1) 0.1 0.0
Other Income (Expense), net (g) 1.2 (2.9) (1.7)
------- ------- -------
Pretax Income 202.9 (11.3) 191.6
Provision for Income Taxes (h) (55.5) (3.9) (59.4)
TriZetto Equity Loss, net (d) (1.3) 0.0 (1.3)
------- ------- -------
Net Income $146.2 $(15.2) $131.0
Diluted EPS:
Total Diluted EPS $0.61 $(0.07) $0.54
Shares Outstanding:
Weighted Average Diluted 240.3 0.0 240.3
End-of-Period Actual 233.9 0.0 233.9
The accompanying notes are an integral part of these financial
tables.
Table 9
IMS Health
Selected Consolidated Balance Sheet Items
(unaudited, in millions)
June 30, 2005 Dec. 31, 2004
------------- -------------
Cash and cash equivalents $399.8 $444.9
Short-term marketable securities 0.0 15.1
Accounts receivable, net (i) 296.6 264.8
Total debt 710.4 626.7
The accompanying notes are an integral part of these financial
tables.
IMS Health
NOTES TO FINANCIAL TABLES
(a) "SEC Income Statement" (Tables 1 and 2) differs from the
"Adjusted Income Statement" (Tables 3 and 4) by amounts that
are detailed on Tables 5, 6, 7 and 8. Adjusted results are
those used by management for the purposes of global business
decision-making, including developing budgets and managing
expenditures. Adjusted results exclude certain U.S. GAAP
measures to the extent that management believes exclusion will
facilitate comparisons across periods and more clearly
indicate trends. Although IMS discloses adjusted results in
order to give a full picture to investors of its business as
seen by management, these adjusted results are not prepared
specifically for investors and are not a replacement for the
more comprehensive information for investors included in IMS's
U.S. GAAP results. The method IMS uses to prepare adjusted
results differs in significant respects from U.S. GAAP and is
likely to differ from the methods used by other companies.
Investors interested in management's adjusted results are
urged to review the detailed reconciliations of the adjusted
measures to comparable U.S. GAAP results.
(b) Revenue in 2004 has been reclassified to conform to the 2005
presentation, including a reclassification of Consulting and
Services revenue into the other three business lines.
Consulting and Services revenue was $62.4 million in
second-quarter 2005, up 35% (33% constant dollar) from $46.2
million in second-quarter 2004. Consulting and Services
revenue was $117.1 million in first-half 2005, up 47% (44%
constant dollar) from $79.6 million in first-half 2004.
(c) Operating expenses in 2004 reflect a reclassification between
operating costs and selling and administrative expenses to
make them comparable with the 2005 presentation.
(d) In the fourth quarter of 2004, IMS sold its entire interest in
TriZetto back to the company.
(e) Losses from investments, net were $0.3 million in the second
quarter of 2005, relating primarily to management fees for the
Enterprise investments. This is compared with a net gain of
$2.1 million in the second quarter of 2004 primarily from the
sale of certain Enterprise investments, partially offset by
$0.4 million of management fees for the Enterprise
investments. For the first six months of 2005, Gains from
investments, net were $2.4 million relating primarily to a
$3.0 million gain from the sale of a 20% interest we held in a
German company (GPI), partially offset by $0.6 million of
management fees for the Enterprise investments. This is
compared with a net gain of $8.5 million in the first six
months of 2004 from the sale of certain Enterprise
investments. These gains and losses from Enterprise
investments are excluded from adjusted results because they
relate to non-strategic investments and are not related to
IMS's core business operations.
(f) Merger costs relate to professional fees incurred during the
second quarter of 2005 in connection with IMS's proposed
merger with VNU, N.V., as announced on July 11, 2005. These
costs, and the associated tax benefits, are excluded from
adjusted results because they were incurred specifically in
relation to the proposed merger of IMS with VNU, N.V. and are
not related to IMS's core business operations.
(g) Other income (expense), net includes $0.0 million and $1.2
million of expenses for legal fees in the second quarter of
2005 and 2004, respectively, related to the IRI litigation.
For the first six months, IRI litigation legal fees were $1.2
million and $1.6 million in 2005 and 2004, respectively. These
expenses are excluded from adjusted results because they
relate to a D&B legacy matter and are not related to IMS's
core business operations. In addition, Other income (expense),
net excludes a quarterly phasing adjustment of foreign
currency hedge gains (losses), net of $(5.4) million and
$(16.3) million in the second quarter and first six months of
2005, respectively, compared with $1.2 million and $(4.4)
million in the second quarter and first six months of 2004,
respectively. This phasing adjustment is made to adjusted
results in order to more closely match the timing of foreign
exchange hedge gains (losses) with the operating income being
hedged. For the full year, there is no difference between the
hedge gains in adjusted and SEC results.
(h) The tax provision for the second quarter and first six months
of 2005 includes a tax benefit of $1.2 million and a tax
provision of $2.0 million, respectively, related to the
Enterprise investments described in note (e) and the items
described in notes (f) and (g). The tax provision for the
second quarter and first six months of 2004 includes a tax
benefit of $0.2 million and a tax provision of $4.0 million,
respectively, related to the items described in notes (e) and
(g). These tax provisions are excluded from adjusted results
because the related charges and gains are excluded from
adjusted results. The tax provision in the first six months of
2005 also included a $29.3 million tax benefit related to a
favorable audit resolution in Japan of the tax years through
2003. Adjusted results include a phasing adjustment to
recognize this benefit ratably throughout the year; the
phasing adjustment for the second quarter and first six months
of 2005 was $(7.8) million and $15.3 million, respectively.
This phasing adjustment allows the full year effective tax
rate to be applied in each quarter to adjusted pretax results.
Also in the first six months of 2005, $42.8 million of tax
expense was recorded related to the decision to repatriate
approximately $650 million of foreign earnings back to the
U.S. during 2005 under the American Jobs Creation Act of 2004
(AJCA), including a tax benefit of $24.3 million recorded in
the second quarter as a result of Congress passing a technical
correction to the AJCA. As the AJCA is a one-time event, this
tax expense has been excluded from adjusted results. In
addition, the first quarter 2004 tax provision also includes a
$15.6 million tax benefit related to a favorable audit
resolution in the U.S. of the 1998 and 1999 tax years. The
phasing adjustment for the second quarter of 2004 was $(4.2)
million and $7.9 million for the first six months of 2004.
(i) December 31, 2004 Accounts receivable, net has been
reclassified to conform to current period presentation.
(j) Constant-dollar growth rates eliminate the impact of
year-over-year foreign currency fluctuations.
Amounts presented in the financial tables may not add due to
rounding.
These financial tables should be read in conjunction with IMS
Health's filings previously made or to be made with the Securities and
Exchange Commission.
CONTACT: IMS Health
Corporate Communications:
Bill Hughes, 203-319-4732
bhughes@imshealth.com
or
Investor Relations:
Darcie Peck, 203-319-4766
dpeck@imshealth.com