EXHIBIT 99.1
[LOGO] VENTIV HEALTH
Contacts:
Investors/Corporate:
John R. Emery
Chief Financial Officer
(732) 537-4804
investor@ventiv.com
VENTIV HEALTH, INC. REPORTS FINANCIAL RESULTS
FOR FIRST QUARTER 2003
o Business from continuing operations profitable for five
consecutive quarters
o Mid-year start-up of 250 rep sales force on track under letter of
intent (LOI) with growing phamaceutical company
o Q3 startup of 385 rep sales force for Watson Pharmaceuticals is
on track
o $61 million net cash at March 31, 2003
SOMERSET, NEW JERSEY, May 13, 2003 -- Ventiv Health, Inc (Nasdaq: VTIV), a
leading provider of comprehensive marketing and sales solutions to the
pharmaceutical and life sciences industries, today announced financial results
for the first quarter of 2003. Results discussed below exclude Ventiv's
discontinued Communications and European Contract Sales businesses.
o Total revenues for the first quarter of 2003 were $43.7 million,
compared to $69.9 million for the first quarter of 2002.
o EBITDA (as defined) was $2.5 million, versus $5.5 million for the
first quarter of 2002.
o EBIT (as defined) was $0.4 million, compared to $2.2 million for the
first quarter of 2002.
o Net earnings were $0.2 million, compared to $1.1 million for the first
quarter of 2002.
o Diluted earnings per share were $0.01, compared with $0.05 for the
first quarter of 2002.
Divisional results include:
o Ventiv Health Sales & Marketing ("VHSM") reported revenues of $36.2
million, versus $62.0 million during the first quarter of 2002. This
decrease was primarily due to the previously announced conversion of
the Reliant Pharmaceuticals sales force and completion of the Bristol
Myers Squibb contract on March 31, 2002, and was partially offset by
new and increased business with ALTANA Pharma and Allergan and
renegotiated contract terms with Bayer.
o Health Products Research (HPR), our Planning & Analytics business,
reported revenues of $6.3 million, versus $6.2 million during the
first quarter of 2002. New and increased business with Amgen, Aventis
and Schering was offset by decreases with AstraZeneca, McNeil Consumer
and Novo Nordisk.
Eran Broshy, CEO of Ventiv, commented, "I am pleased with Ventiv's results for
the first quarter of 2003, which have exceeded our expectations. This is our
fifth straight quarter of
VENTIV HEALTH, INC. REPORTS
FIRST QUARTER 2003 RESULTS
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profitability from continuing operations, as we continue to execute well and win
significant new business in a challenging marketplace." Mr. Broshy added, "We
continue to execute well for all of our clients, including our contract for 350
sales representatives with Bayer. Our HPR planning & analytics business also
continues to perform solidly. Furthermore, we are on track to deploy 385 sales
representatives in the third quarter of this year under our new contract with
Watson Pharmaceuticals. In addition, we are on track to deploy 250 sales
representatives mid-year under our previously-announced LOI with a growing
phamaceutical company."
Mr. Broshy added, "With the above wins, we expect that Ventiv will deliver
increasingly stronger results over the course of the year. In addition, Ventiv's
financial position is strong, with net cash of $61 million on March 31, 2003.
This balance sheet, combined with the Company's unused line of credit, provides
significant support for the business going forward."
Conference call information:
Wednesday, May 14, 2003, 8:30am Eastern Time.
Call in number: 210-234-0000
Live and archived webcast: www.ventiv.com
Ventiv's earnings conference call will be webcast live on the Internet at 8:30
a.m. tomorrow at www.ventiv.com. The financial and statistical information
included in the webcast will be made available shortly following the call at
www.ventiv.com in the Investor Relations section.
About Ventiv Health
- -------------------
Ventiv Health, Inc. is a leading provider of comprehensive outsourced marketing
and sales solutions for the pharmaceutical and life sciences industries. The
Company works in consultative partnership with clients to identify strategic
goals and develop customized, integrated solutions to optimize clients' product
portfolios. Ventiv Health's market-leading offerings include: sales force
recruitment, training and execution; consulting, analytics and forecasting;
market research and intelligence; strategic and tactical planning and product
and brand management.
For almost three decades, Ventiv Health has provided a broad range of innovative
strategic and tactical solutions to clients including: Abbott Laboratories,
Allergan, ALTANA Pharma, AstraZeneca, Aventis, Bayer, Bristol-Myers Squibb, Eli
Lilly, Endo Pharmaceuticals, GlaxoSmithKline, Johnson & Johnson, Merck,
Novartis, Pfizer and Pharmacia. For more information on Ventiv Health, visit
www.ventiv.com.
VENTIV HEALTH, INC. REPORTS
FIRST QUARTER 2003 RESULTS
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Ventiv Health, Inc.
Condensed Consolidated Statements of Operations
($'s in 000's, except per share data)
Three Months Ended
March 31,
----------------------------
2003 2002
----------------------------
(unaudited)
Revenues .................................................. $ 43,654 $ 69,868
Operating expenses:
Costs of services ...................................... 37,856 61,016
Selling, general and admin expenses .................... 5,433 6,650
----------------------------
Earnings from continuing operations ....................... 365 2,202
Net interest expense ...................................... (3) (509)
----------------------------
Earnings from continuing operations before income taxes ... 362 1,693
Income tax provision ...................................... (138) (643)
----------------------------
Earnings from continuing operations ....................... 224 1,050
Losses from discontinued operations, net of taxes ......... (843) (644)
Losses on disposal of discontinued operations, net of taxes (553) --
----------------------------
Losses from discontinued operations (1) ................... (1,396) (644)
----------------------------
Net earnings (losses) ..................................... $ (1,172) $ 406
============================
Earnings (losses) per share:
From Continuing Operations
Basic .................................................. $ 0.01 $ 0.05
Diluted ................................................ $ 0.01 $ 0.05
From Discontinued Operations
Basic .................................................. $ (0.06) $ (0.03)
Diluted ................................................ $ (0.06) $ (0.03)
Consolidated
Basic .................................................. $ (0.05) $ 0.02
Diluted ................................................ $ (0.05) $ 0.02
Number of shares
Basic .................................................. 22,892,000 22,823,000
Diluted ................................................ 23,104,000 23,823,000
(1) Net Losses from discontinued operations includes Ventiv's Connecticut-based
and Georgia-based communications businesses and Ventiv's Germany-based,
U.K.-based and Hungary-based contract sales businesses, which have been
divested, and Ventiv's France-based contract sales business, which is being held
for sale pursuant to a plan of divestiture adopted by Ventiv.
VENTIV HEALTH, INC. REPORTS
FIRST QUARTER 2003 RESULTS
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Ventiv Health, Inc.
Selected Balance Sheet Data
($'s in 000's)
March 31, December 31,
2003 2002
---------------------------
(unaudited)
Cash ............................. $60,547 $47,753
Bank Debt ........................ 0 0
Account Receivable, Net .......... 25,955 28,696
Unbilled Services ................ 9,475 14,547
Client Advances & Unearned Revenue 10,247 3,725
Working Capital (1) .............. 56,899 56,809
Capital Lease Obligations ........ 11,274 13,052
Depreciation (2) ................. 2,090 9,585
Amortization (2) ................. 4 47
Days Sales Outstanding (3) ....... 68 73
(1) Working Capital is defined as Total Current Assets less Total Current
Liabilities.
(2) Depreciation and amortization for March 31, 2003 are reported on a
quarter-to-date basis, while December 31, 2002 is reported on a
year-to-date basis.
(3) Days Sales Outstanding is measured using the combined amounts of Accounts
Receivable and Unbilled Services outstanding as of the balance sheet date,
against Revenues for the trailing 12-month period then ended.
VENTIV HEALTH, INC. REPORTS
FIRST QUARTER 2003 RESULTS
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Ventiv Health, Inc.
Calculation of EBIT and EBITDA
(in thousands)
Three Months Ended March 31,
----------------------------
2003 2002
----------------------------
(unaudited)
Net earnings (losses) ................ $(1,172) $ 406
Add backs:
Losses from discontinued operations 1,396 644
Income tax provision .............. 138 643
Net interest expense .............. 3 509
----------------------------
EBIT ................................. 365 2,202
Depreciation and amortization ........ 2,094 3,330
----------------------------
EBITDA ............................... 2,459 5,532
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks that may cause Ventiv Health's
performance to differ materially. Such risks include, without limitation:
changes in trends in the pharmaceutical industry or in pharmaceutical
outsourcing; our ability to compete successfully with other services in the
market; our ability to maintain large client contracts or to enter into new
contracts; uncertainties related to future incentive payments and revenue share
agreements; and, our ability to operate successfully in new lines of business.
Readers of this press release are referred to documents filed from time to time
by Ventiv Health, Inc. with the Securities and Exchange Commission for further
discussion of these and other factors.