PAREXEL REPORTS RETROSPECTIVE FINANCIAL STATEMENT ADJUSTMENTS
BOSTON, MA, November 14, 2001 — PAREXEL reported today that in connection with the Company’s intercompany reconciliation process for the fiscal quarter ended September 30, 2000, the Company identified certain items that will require the Company to restate its consolidated balance sheet for the fiscal year ended June 30, 2000. The June 30, 2000 consolidated balance sheet included in the Company’s Quarterly Report on Form 10-Q, which is being filed with the Securities and Exchange Commission today, does not reflect this restatement, but instead is the same as the Company’s consolidated balance sheet included in its Annual Report on Form 10-K for the fiscal year ended June 30, 2000. The Company anticipates that the restatement will result in adjustments of approximately $5-$7 million, principally related to currency translation adjustments which will increase the previously reported balance for current liabilities and correspondingly decrease stockholder’s equity. In this process, the Company also identified certain charges to its consolidated statement of income for the fiscal year ended June 30, 2000, which the Company believes will be less than $2 million on a pre-tax basis. The Company is in the process of completing a review of its June 30, 2000 consolidated financial statements and expects to file shortly a Form 10-K/A for its fiscal year ended June 30, 2000 that will restate its consolidated balance sheet and, if necessary, its consolidated statement of income for the fiscal year ended on that date.
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 45 locations throughout 29 countries around the world, and has approximately 4,200 employees.
This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects", "intends", and similar expressions are intended to identify forward-looking statements. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from recent restructurings; the cancellation, revision, or delay of contracts, including those contracts in backlog; 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 or enter into new lines of business; government regulation of certain industries and clients; competition and consolidation within the pharmaceutical 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. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the period ended June 30, 2000.