PAREXEL REPORTS THIRD QUARTER FINANCIAL RESULTS
BOSTON, MA, April 26, 2001 — PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the third quarter ended March 31, 2001.
For the three months ended March 31, 2001, PAREXEL reported consolidated net revenue of $98.3 million, a record high for the Company, compared with net revenue of $97.2 million in the prior year period. Operating income was $0.7 million versus pro forma restated operating income of $4.8 million in the prior year quarter. Net income for the quarter was $1.9 million or $0.08 per diluted share, compared with pro forma restated net income of $3.5 million, or $0.14 per diluted share for the quarter ended March 31, 2000. Excluding the negative impact of the Perceptive Informatics business unit, earnings for the third quarter would have been $0.12 per share.
For the nine months ended March 31, 2001, PAREXEL’s consolidated net revenue was $280.9 million compared with net revenue of $286.9 million in the prior year nine-month period. The pro forma restated operating loss for the nine months ended March 31, 2001 was $0.3 million versus pro forma restated operating income of $16.5 million in the comparable prior year period. Pro forma restated net income for the nine months ended March 31, 2001 was $2.7 million or $0.11 per diluted share, compared with pro forma restated net income of $12.1 million, or $0.48 per diluted share for the nine months ended March 31, 2000. Excluding the negative impact of Perceptive Informatics, pro forma restated earnings for the nine months ended March 31, 2001 would have been $0.21 per share.
On a segment basis, net revenue for the third quarter grew sequentially in each of the Company’s strategic business units. Net revenue was $60.5 million in Clinical Research Services (representing the second consecutive quarter of revenue growth in the Company’s largest business segment), $21.2 million in the PAREXEL Consulting Group, $13.4 million in Medical Marketing Services, and $3.2 million in Perceptive Informatics, Inc.
The Company also stated that it would take a restructuring charge during the fourth quarter as part of its on-going effort to reduce its cost structure. Although details have not yet been finalized, the charge is expected to be in the range of $2 to 4 million.
Mr. Josef von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer stated, "In recent months, our focus has been on restoring the Company’s growth momentum, and the current quarter’s record level of revenue demonstrates that we are on track in this respect. We believe that this top-line growth, coupled with reduced levels of cancellations, is a strong indicator that revenue will continue to increase in the coming quarters. Our greatest challenge now is to improve the profitability of the company, and to find ways to better leverage our global franchise and broad-based infrastructure. A significant factor in helping us to achieve our goals is the addition of Carl Spalding as our new President and Chief Operating Officer, adding depth to our senior management team."
The Company issued forward-looking guidance regarding revenue and pro forma earnings per share (not taking into account any unusual charges) for the remainder of Fiscal 2001 (ending June 30, 2001), and for calendar 2001. For the fourth quarter of FY 2001 the Company anticipates reporting net revenue in the range of $99 to $102 million and earnings per diluted share of $0.11 to $0.12. For calendar 2001, expectations are for revenues in the range of $400 to $415 million and earnings per diluted share of $0.40 to $0.50.
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 expedite 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. Its newest subsidiary, Perceptive Informatics, Inc., provides a variety of technology products and services, including web-based portal solutions and voice and data systems, which are designed to accelerate and enhance the clinical development and launch processes. 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 51 locations throughout 29 countries around the world, and has approximately 4,550 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", "appears" 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 Form 10-Q for the period ended December 31, 2000, as filed with the Securities and Exchange Commission.