PAREXEL REPORTS SECOND QUARTER FINANCIAL RESULTS
BOSTON, MA, January 25, 2000 — PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the second quarter ended December 31, 1999.
For the three months ended December 31, 1999, PAREXEL¡¦s consolidated net revenue increased 11.5% to $98.0 million, from $87.9 million in the prior-year quarter. Income from operations was $6.3 million, a 13.1% decrease from $7.3 million in the prior-year quarter. Net income for the quarter was $5.1 million, or $0.20 per diluted share, compared with net income of $5.1 million, or $0.21 per diluted share for the quarter ended December 31, 1998. On a proforma basis, excluding non-recurring other income of $630,000 from the sale of a minority investment in a company, diluted earnings per share were $0.19 in the current quarter.
For the six months ended December 31, 1999, consolidated net revenue of $189.7 million grew 11.2% over the prior year period net revenue of $170.7 million. Income from operations for the six months ended December 31, 1999, was $12.4 million which represents a year over year decrease of 17.0%. Net income for the six months was $9.5 million which was a decrease of 10.7% over the prior year period.
On a segment basis, revenues for the second quarter were $69.5 million in Clinical Research Services, $16.9 million in the Consulting Group, and $11.6 million in Medical Marketing Services.
Highlights of the quarter ended December 31, 1999, included:
- The launch of ParXnetTM, a portfolio of web-based tools, which facilitates clinical trial management and communications, as well as training, e-commerce, product launch, and knowledge management.
- The signing of a collaborative agreement with Pediatric Clinical Trials International, Inc. (PCTI), a wholly-owned corporation of Columbus Children¡¦s Hospital, to offer pediatric clinical research services to pharmaceutical and biotechnology companies worldwide.
- Operating cash flow of $20.0 million.
- Sequential improvement in days sales outstanding (DSOs) which decreased from 62 days in the September quarter to 45 in the December quarter.
- Improvement in the operating income margin, which increased sequentially by 200 basis points.
- Progress with the Company¡¦s share repurchase program, resulting in a total of 360,000 shares repurchased to date at a total expenditure of $3.7 million.
In closing, Mr. von Rickenbach stated, ¡§Over the past few months, we have put into place the foundation which is helping us to regain our momentum, and I am pleased to see results in line with expectations this quarter.¡¨
This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected future growth and customer demand. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Factors that might cause such a difference include, but are not limited to, risks associated with: the loss or delay of large contracts; the Company's dependence on certain industries and clients; the Company's ability to manage growth and its ability to attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses; government regulation of certain industries and clients; competition and consolidation within the industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations. These factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 1999.
PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing and other drug development consulting services. The Company¡¦s integrated services, therapeutic area depth and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL operates in 44 locations throughout 29 countries around the world, and has approximately 4,580 employees.