PAREXEL INTERNATIONAL UPDATES EARNINGS GUIDANCE IN CONJUNCTION WITH ITS INVESTOR DAY
BOSTON, MA, June 1, 2004 — PAREXEL International Corporation (Nasdaq: PRXL) announced today that it will discuss forward-looking earnings expectations for the fourth quarter of Fiscal Year 2004 (ending June 30, 2004), for Fiscal 2004 in its entirety, for Calendar 2004 and for Fiscal 2005 at its Investor Day being held tomorrow in New York City.
For the fourth quarter of Fiscal Year 2004, the Company anticipates reporting consolidated service revenue in the range of $143 to $148 million and earnings per diluted share of $0.23 to $0.25. For Fiscal 2004 (ending June 30, 2004) the Company expects consolidated service revenue to be in the range of $550 to $555 million and earnings per diluted share to be in the range of $0.50 to $0.52 as calculated in accordance with Generally Accepted Accounting Principles (GAAP). Proforma earnings per diluted share for Fiscal 2004 (excluding the impact of $12.0 million in restructuring and one-time charges recorded in the third quarter of FY 2004) are expected to be $0.81 to $0.83. This reflects a narrowing of the previously issued EPS guidance. For Calendar Year 2004, the Company expects consolidated service revenue to be in the range of $570 to $590 million, and diluted earnings per share on a GAAP basis to be in the range of $0.57 to $0.61. On a proforma basis (excluding the impact of $12.0 million in restructuring and one-time charges recorded in the third quarter of FY 2004), Calendar Year 2004 diluted earnings per share are expected to be $0.88 to $0.92. The change in Calendar Year EPS guidance reflects required increases in resources in anticipation of accelerated growth in the second half of Fiscal 2005. For Fiscal 2005, the Company anticipates reporting consolidated service revenue in the range of $610 to $630 million, and earnings per diluted share of $0.98 to $1.08.
The Company believes that presenting the proforma information contained in this press release assists investors and others to gain a better understanding of its core operating results and future prospects, especially when comparing such results to previous periods or forecasts. Management uses this proforma information, in addition to the GAAP information, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. Such measures are also used by management in its financial and operating decision-making. Proforma information is not meant to be considered superior to or a substitute for the Company’s results of operations prepared in accordance with GAAP.
Those who wish to listen to the Company’s Investor Day presentations and to view the accompanying slides should log onto the Company’s website at www.parexel.com and click on "Investor Relations," then "Webcasts", at least 15 minutes prior to the event’s broadcast which will start at 8:30 a.m. ET. Users should follow the instructions provided to assure that the necessary audio applications are downloaded and installed. In addition, an archived version of the event’s presentations will be located in the Investor Relations section of PAREXEL’s website.
PAREXEL is one of the largest biopharmaceutical 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 information technology subsidiary, Perceptive Informatics, Inc., develops and offers a portfolio of innovative technology-based products and services that facilitate clinical drug development and are designed to decrease time to peak sales. The technology portfolio includes web-based portal solutions and tracking tools, Interactive Voice Response Systems (IVRS), Clinical Trial Management Systems (CTMS), electronic diary and investigator database solutions. Perceptive also offers advanced medical diagnostics services to assess rapidly and objectively the safety and efficacy of new drugs, biologics, and medical devices in clinical trials. PAREXEL’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 52 locations throughout 36 countries around the world, and has 5,015 employees.
This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand, such as the guidance provided by the Company with respect to the fourth quarter of Fiscal Year 2004, the full Fiscal Year 2004, Calendar 2004, and Fiscal 2005. 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", "estimates", "projects" and similar expressions are intended to identify forward-looking statements. These statements involve a number of risks and uncertainties. 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 loss, modification, or delay of contracts; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth, and 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 the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry; competition within the biopharmaceutical services 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 and other international economic, political, and other risks. Such 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 March 31, 2004 as filed with the SEC on May 13, 2004, which "Risk Factors" discussion is incorporated by reference in this press release. The forward-looking statements included in this press release represent the Company’s estimates as of the date of this release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this press release.