"Financial highlights in the third quarter included consolidated pro forma revenue growth of 12%, operating margin of 11.1%, EPS of
"
"
"Looking ahead to the fourth quarter of 2013, we expect sequential growth in revenue and operating income in both our Early and Late-Stage development segments, despite increased spending on our strategic IT programs. Accordingly, we are increasing our full-year pro forma diluted earnings per share target to approximately
Consolidated Results
($ in millions except EPS) |
3Q13 |
3Q12 |
Change |
YTD13 |
YTD12 |
Change |
Total Revenues |
$647.0 |
$597.6 |
$1,925.3 |
$1,756.6 |
||
Less: Reimbursable Out-of-Pockets |
$40.3 |
$52.8 |
$146.1 |
$138.2 |
||
Net Revenues |
$606.7 |
$544.8 |
11.4% |
$1,779.2 |
$1,618.4 |
9.9% |
Operating Income |
$62.6 |
$30.6 |
104.7% |
$162.4 |
$72.8 |
123.1% |
Operating Margin |
10.3% |
5.6% |
9.1% |
4.5% |
||
Net Income |
$44.2 |
$37.8 |
16.9% |
$133.4 |
$60.8 |
119.2% |
Earnings per Share |
$0.78 |
$0.69 |
13.3% |
$2.35 |
$1.07 |
119.0% |
Revenue from facilities closed in 2012** |
- |
$2.9 |
- |
$7.3 |
||
Net Revenue, continuing ops* |
$606.7 |
$541.9 |
12.0% |
$1,779.2 |
$1,611.2 |
10.4% |
Restructuring Costs and other items |
($4.9) |
($18.1) |
($17.1) |
($66.5) |
||
Loss from facilities closed in 2012** |
- |
($2.6) |
- |
($6.4) |
||
Operating Income, excluding items* |
$67.5 |
$51.3 |
31.7% |
$ 179.5 |
$145.7 |
23.2% |
Operating Margin, excluding items* |
11.1% |
9.5% |
10.1% |
9.0% |
||
Gain on Sale of Investments |
- |
$1.5 |
$16.4 |
$1.5 |
||
Impairment of Equity Investment |
- |
- |
- |
($7.4) |
||
Favorable Income Tax Developments |
- |
$11.5 |
- |
$11.5 |
||
Net Income, excluding items* |
$47.3 |
$39.6 |
19.4% |
$134.1 |
$111.6 |
20.1% |
Diluted EPS, excluding items* |
$0.83 |
$0.72 |
15.8% |
$2.36 |
$1.97 |
20.0% |
* See attached pro forma income statements for reconciliation of 2013 and 2012 GAAP to pro forma amounts. |
Operating Segment Results
Early Development
($ in millions) |
3Q13 |
3Q12 |
Change |
YTD13 |
YTD12 |
Change |
Net Revenues |
$220.4 |
$220.7 |
(0.2%) |
$642.2 |
$652.1 |
(1.5%) |
Operating Income (Loss) |
$27.2 |
$7.1 |
283.3% |
$65.6 |
($14.7) |
|
Operating Margin |
12.3% |
3.2% |
10.2% |
(2.3%) |
||
Revenue from facilities closed in 2012** |
- |
$2.9 |
- |
$7.3 |
||
Net Revenue, continuing ops |
$220.4 |
$217.8 |
1.2% |
$642.2 |
$644.8 |
(0.4%) |
Restructuring Costs and other items |
($1.6) |
($17.2) |
($7.5) |
($65.1) |
||
Loss from facilities closed in 2012** |
- |
($2.6) |
- |
($6.4) |
||
Operating Income, excluding items |
$28.8 |
$26.9 |
7.0% |
$73.1 |
$56.9 |
28.6% |
Operating Margin, excluding items |
13.1% |
12.4% |
11.4% |
8.8% |
** Facilities closed in 2012 include Chandler, Honolulu, and Basel. |
GAAP operating income in the third quarter of 2013 was
On a sequential basis, operating margin was positively impacted by the shift to above margin treatment of the UK R&D tax credit which added 200 basis points. In addition, annual salary merit increases went into effect on
Late-Stage Development
($ in millions) |
3Q13 |
3Q12 |
Change |
YTD13 |
YTD12 |
Change |
Net Revenues |
$386.4 |
$324.1 |
19.2% |
$1,137.0 |
$966.3 |
17.7% |
Operating Income |
$86.8 |
$64.4 |
34.8% |
$249.3 |
$204.9 |
21.7% |
Operating Margin |
22.5% |
19.9% |
21.9% |
21.2% |
||
Restructuring Costs |
($0.5) |
($0.4) |
($3.8) |
($0.6) |
||
Operating Income, excluding items |
$87.4 |
$64.8 |
34.8% |
$253.1 |
$205.5 |
23.2% |
Operating Margin, excluding items |
22.6% |
20.0% |
22.3% |
21.3% |
Operating income for the third quarter was
On a sequential basis, operating margins in the third quarter were positively impacted by the shift to above margin treatment of the UK R&D tax credit which added 90 basis points. In addition, on
Corporate Information
The company reported third quarter adjusted net orders of
Corporate expenses totaled
Cash, cash equivalents and short-term investments at
Net Days Sales Outstanding (DSO) declined 13 days in the third quarter to 35 days at
Free cash flow (defined as operating cash flow less capital expenditures) for the third quarter of 2013 was
The pro forma effective tax rate in the third quarter of 28.3% was impacted by the shift to above margin treatment of the UK R&D tax credit. Previously this credit was recorded as a reduction to income tax expense. As a result of
The company's investor conference call will be webcast on
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss or delay of large studies, risks associated with acquisitions and investments, the company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, testing mix and geographic mix of kit receipts in central laboratories, fluctuations in currency exchange rates, the realization of savings from the company's announced restructuring actions, the cost and pace of completion of our information technology projects and the realization of benefits therefrom, the satisfaction of the conditions of the note purchase agreement and the closing thereof, and other factors described in the company's filings with the
Financial Exhibits Follow
COVANCE INC. |
|||||||||
CONSOLIDATED INCOME STATEMENTS |
|||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 |
|||||||||
(Dollars in thousands, except per share data) |
|||||||||
(UNAUDITED) |
|||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||
2013 |
2012 |
2013 |
2012 |
||||||
Net revenues |
$ 606,722 |
$ 544,818 |
$ 1,779,219 |
$ 1,618,441 |
|||||
Reimbursable out-of-pocket expenses |
40,328 |
52,844 |
146,142 |
138,174 |
|||||
Total revenues |
647,050 |
597,662 |
1,925,361 |
1,756,615 |
|||||
Costs and expenses: |
|||||||||
Cost of revenue |
424,857 |
389,724 |
1,255,316 |
1,174,382 |
|||||
Reimbursable out-of-pocket expenses |
40,328 |
52,844 |
146,142 |
138,174 |
|||||
Selling, general and administrative |
87,052 |
94,401 |
266,448 |
266,031 |
|||||
Depreciation and amortization |
32,191 |
30,102 |
95,072 |
87,285 |
|||||
Goodwill impairment charge |
- |
- |
- |
17,959 |
|||||
Total costs and expenses |
584,428 |
(a) |
567,071 |
(c) |
1,762,978 |
(b) |
1,683,831 |
(d) |
|
Income from operations |
62,622 |
(a) |
30,591 |
(c) |
162,383 |
(b) |
72,784 |
(d) |
|
Other (income) expense, net: |
|||||||||
Interest expense, net |
759 |
920 |
2,634 |
2,353 |
|||||
Foreign exchange transaction loss, net |
882 |
281 |
1,911 |
1,301 |
|||||
Gain on sale of investments |
- |
(1,459) |
(16,400) |
(1,459) |
|||||
Impairment of equity investment |
- |
- |
- |
7,373 |
|||||
Loss on sale of business |
- |
- |
- |
169 |
|||||
Other (income) expense, net |
1,641 |
(258) |
(c) |
(11,855) |
(b) |
9,737 |
(d) |
||
Income before taxes and equity investee earnings |
60,981 |
(a) |
30,849 |
(c) |
174,238 |
(b) |
63,047 |
(d) |
|
Tax expense (benefit) |
16,780 |
(a) |
(6,971) |
(c) |
40,877 |
(b) |
2,229 |
(d) |
|
Equity investee earnings |
- |
- |
- |
17 |
|||||
Net income |
$ 44,201 |
(a) |
$ 37,820 |
(c) |
$ 133,361 |
(b) |
$ 60,835 |
(d) |
|
Basic earnings per share |
$ 0.81 |
(a) |
$ 0.70 |
(c) |
$ 2.45 |
(b) |
$ 1.10 |
(d) |
|
Weighted average shares outstanding - basic |
54,703,763 |
53,687,748 |
54,524,296 |
55,206,190 |
|||||
Diluted earnings per share |
$ 0.78 |
(a) |
$ 0.69 |
(c) |
$ 2.35 |
(b) |
$ 1.07 |
(d) |
|
Weighted average shares outstanding - diluted |
56,939,181 |
55,201,552 |
56,754,527 |
56,701,280 |
|||||
(a) Three months ended September 30, 2013 includes, as applicable, $4,893 in charges associated with restructuring and other cost reduction actions ($3,063 net of tax). |
|||||||||
(b) Nine months ended September 30, 2013 includes, as applicable, $17,076 in charges associated with restructuring and other cost reduction actions ($11,352 net of tax), and $16,400 gain on sale of investments ($10,654 net of tax). |
|||||||||
(c) Three months ended September 30, 2012 includes, as applicable, $14,072 in restructuring costs ($9,647 net of tax), $4,000 in costs associated with the settlement of an inventory supply agreement ($2,756 net of tax), $2,609 in losses at sites in wind-down ($1,821 net of tax), $1,459 gain on sale of investment ($945 net of tax) and favorable income tax items totaling $11,501. |
|||||||||
(d) Nine months ended September 30, 2012 includes, as applicable, $23,739 in restructuring costs ($16,177 net of tax), $24,781 in inventory impairment charges and costs associated with the settlement of an inventory supply agreement ($17,147 net of tax), $17,959 of goodwill impairment charges ($17,959 net of tax), $7,373 of impairment of equity investment ($7,373 net of tax), $6,424 in losses at sites in wind-down ($4,567 net of tax), $1,459 gain on sale of investment ($945 net of tax) and favorable income tax items totaling $11,501. |
Excluding the impact of charges associated with restructuring and other cost reduction actions, impairment charges, costs associated with the settlement of an inventory supply agreement, losses at sites in wind-down, gain on sale of investments and favorable tax items, as applicable: |
|||||||||
Income from operations |
$ 67,515 |
$ 51,272 |
$ 179,459 |
$ 145,687 |
|||||
Taxes on income |
$ 18,610 |
$ 10,473 |
$ 40,855 |
$ 30,269 |
|||||
Net income |
$ 47,264 |
$ 39,598 |
$ 134,059 |
$ 111,612 |
|||||
Basic earnings per share |
$ 0.86 |
$ 0.74 |
$ 2.46 |
$ 2.02 |
|||||
Diluted earnings per share |
$ 0.83 |
$ 0.72 |
$ 2.36 |
$ 1.97 |
|||||
COVANCE INC. |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
SEPTEMBER 30, 2013 and DECEMBER 31, 2012 |
|||||
(Dollars in thousands) |
|||||
September 30 |
December 31 |
||||
2013 |
2012 |
||||
(UNAUDITED) |
|||||
ASSETS |
|||||
Current Assets: |
|||||
Cash & cash equivalents |
$ 482,800 |
$ 492,824 |
|||
Short-term investments |
109,794 |
- |
|||
Accounts receivable, net |
353,940 |
339,558 |
|||
Unbilled services |
147,355 |
136,878 |
|||
Inventory |
49,516 |
49,270 |
|||
Deferred income taxes |
49,363 |
44,903 |
|||
Income taxes receivable |
- |
3,642 |
|||
Prepaid expenses and other current assets |
203,200 |
167,629 |
|||
Total Current Assets |
1,395,968 |
1,234,704 |
|||
Property and equipment, net |
891,680 |
891,319 |
|||
Goodwill |
109,820 |
109,820 |
|||
Other assets |
40,846 |
52,499 |
|||
Total Assets |
$ 2,438,314 |
$ 2,288,342 |
|||
LIABILITIES and STOCKHOLDERS' EQUITY |
|||||
Current Liabilities: |
|||||
Accounts payable |
$ 52,020 |
$ 34,430 |
|||
Accrued payroll and benefits |
143,599 |
144,681 |
|||
Accrued expenses and other current liabilities |
104,032 |
127,686 |
|||
Unearned revenue |
266,522 |
255,776 |
|||
Short-term debt |
265,000 |
320,000 |
|||
Income taxes payable |
11,663 |
- |
|||
Total Current Liabilities |
842,836 |
882,573 |
|||
Deferred income taxes |
21,186 |
27,912 |
|||
Other liabilities |
75,840 |
70,665 |
|||
Total Liabilities |
939,862 |
981,150 |
|||
Stockholders' Equity: |
|||||
Common stock |
807 |
791 |
|||
Paid-in capital |
836,056 |
744,114 |
|||
Retained earnings |
1,733,987 |
1,600,626 |
|||
Accumulated other comprehensive income |
23,966 |
28,520 |
|||
Treasury stock |
(1,096,364) |
(1,066,859) |
|||
Total Stockholders' Equity |
1,498,452 |
1,307,192 |
|||
Total Liabilities and Stockholders' Equity |
$ 2,438,314 |
$ 2,288,342 |
|||
COVANCE INC. |
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 |
||||
(Dollars in thousands) |
||||
(UNAUDITED) |
||||
Nine Months Ended September 30 |
||||
2013 |
2012 |
|||
Cash flows from operating activities: |
||||
Net income |
$ 133,361 |
$ 60,835 |
||
Adjustments to reconcile net income to net cash provided by |
||||
operating activities: |
||||
Depreciation and amortization |
95,072 |
87,285 |
||
Non-cash impairment charges |
- |
44,610 |
||
Non-cash compensation expense associated with employee benefit |
||||
and stock compensation plans |
29,863 |
29,774 |
||
Deferred income tax benefit |
(6,787) |
(23,648) |
||
Gain on sale of investments |
(16,400) |
(1,459) |
||
Loss on sale of business |
- |
169 |
||
Loss on disposal of property and equipment |
487 |
674 |
||
Equity investee earnings |
- |
(17) |
||
Changes in operating assets and liabilities, net of business sold: |
||||
Accounts receivable |
(14,382) |
(10,404) |
||
Unbilled services |
(10,477) |
(27,561) |
||
Inventory |
(246) |
9,115 |
||
Accounts payable |
17,590 |
2,565 |
||
Accrued liabilities |
(24,736) |
(1,396) |
||
Unearned revenue |
10,746 |
33,374 |
||
Income taxes |
20,228 |
568 |
||
Other assets and liabilities, net |
(21,474) |
(51,581) |
||
Net cash provided by operating activities |
212,845 |
152,903 |
||
Cash flows from investing activities: |
||||
Capital expenditures |
(103,703) |
(105,199) |
||
Purchase of short-term investments |
(109,794) |
- |
||
Proceeds from sale of investments |
17,781 |
4,682 |
||
Other, net |
528 |
1,006 |
||
Net cash used in investing activities |
(195,188) |
(99,511) |
||
Cash flows from financing activities: |
||||
Net (repayments) borrowings under revolving credit facility |
(55,000) |
310,000 |
||
Stock issued under option plans |
57,172 |
5,794 |
||
Purchase of treasury stock |
(29,505) |
(322,452) |
||
Net cash used in financing activities |
(27,333) |
(6,658) |
||
Effect of exchange rate changes on cash |
(348) |
5,535 |
||
Net change in cash and cash equivalents |
(10,024) |
52,269 |
||
Cash and cash equivalents, beginning of period |
492,824 |
389,103 |
||
Cash and cash equivalents, end of period |
$ 482,800 |
$ 441,372 |
||
COVANCE INC. |
|||||
GAAP to Pro Forma Reconciliation |
|||||
Q3 2013 |
|||||
(Dollars in thousands, except per share data) |
|||||
(UNAUDITED) |
|||||
Adjustments |
|||||
GAAP |
Restructuring |
Pro Forma |
|||
Net revenues |
$ 606,722 |
$ 606,722 |
|||
Reimbursable out-of-pocket expenses |
40,328 |
40,328 |
|||
Total revenues |
647,050 |
- |
647,050 |
||
Costs and expenses: |
|||||
Cost of revenue |
424,857 |
424,857 |
|||
Reimbursable out-of-pocket expenses |
40,328 |
40,328 |
|||
Selling, general and administrative |
87,052 |
(4,475) |
82,577 |
||
Depreciation and amortization |
32,191 |
(418) |
31,773 |
||
Total costs and expenses |
584,428 |
(4,893) |
579,535 |
||
Income from operations |
62,622 |
4,893 |
67,515 |
||
Other (income) expense, net: |
|||||
Interest expense, net |
759 |
759 |
|||
Foreign exchange transaction loss, net |
882 |
882 |
|||
Other (income) expense, net |
1,641 |
- |
1,641 |
||
Income before taxes |
60,981 |
4,893 |
65,874 |
||
Taxes on income |
16,780 |
1,830 |
18,610 |
||
Net income |
$ 44,201 |
$ 3,063 |
$ 47,264 |
||
Basic earnings per share |
$ 0.81 |
$ 0.06 |
$ 0.86 |
||
Weighted average shares outstanding - basic |
54,703,763 |
54,703,763 |
54,703,763 |
||
Diluted earnings per share |
$ 0.78 |
$ 0.05 |
$ 0.83 |
||
Weighted average shares outstanding - diluted |
56,939,181 |
56,939,181 |
56,939,181 |
||
(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. |
|||||
COVANCE INC. |
|||||||||||
GAAP to Pro Forma Reconciliation |
|||||||||||
Q3 2012 |
|||||||||||
(Dollars in thousands, except per share data) |
|||||||||||
(UNAUDITED) |
|||||||||||
Adjustments |
|||||||||||
GAAP |
Restructuring |
Other |
Operating |
Income Tax |
Pro Forma |
||||||
Net revenues |
$ 544,818 |
$ (2,967) |
$ 541,851 |
||||||||
Reimbursable out-of-pocket expenses |
52,844 |
52,844 |
|||||||||
Total revenues |
597,662 |
- |
- |
(2,967) |
- |
594,695 |
|||||
Costs and expenses: |
|||||||||||
Cost of revenue |
389,724 |
(4,000) |
(4,544) |
381,180 |
|||||||
Reimbursable out-of-pocket expenses |
52,844 |
52,844 |
|||||||||
Selling, general and administrative |
94,401 |
(12,989) |
(162) |
81,250 |
|||||||
Depreciation and amortization |
30,102 |
(1,083) |
(870) |
28,149 |
|||||||
Total costs and expenses |
567,071 |
(14,072) |
(4,000) |
(5,576) |
- |
543,423 |
|||||
Income from operations |
30,591 |
14,072 |
4,000 |
2,609 |
- |
51,272 |
|||||
Other (income) expense, net: |
|||||||||||
Interest expense, net |
920 |
920 |
|||||||||
Foreign exchange transaction loss, net |
281 |
281 |
|||||||||
Gain on sale of investment |
(1,459) |
1,459 |
- |
||||||||
Other (income) expense, net |
(258) |
- |
1,459 |
- |
- |
1,201 |
|||||
Income before taxes |
30,849 |
14,072 |
2,541 |
2,609 |
- |
50,071 |
|||||
Taxes on income |
(6,971) |
4,425 |
730 |
788 |
11,501 |
10,473 |
|||||
Net income |
$ 37,820 |
$ 9,647 |
$ 1,811 |
$ 1,821 |
$ (11,501) |
$ 39,598 |
|||||
Basic earnings per share |
$ 0.70 |
$ 0.18 |
$ 0.03 |
$ 0.03 |
$ (0.21) |
$ 0.74 |
|||||
Weighted average shares outstanding - basic |
53,687,748 |
53,687,748 |
53,687,748 |
53,687,748 |
53,687,748 |
53,687,748 |
|||||
Diluted earnings per share |
$ 0.69 |
$ 0.17 |
$ 0.03 |
$ 0.03 |
$ (0.21) |
$ 0.72 |
|||||
Weighted average shares outstanding - diluted |
55,201,552 |
55,201,552 |
55,201,552 |
55,201,552 |
55,201,552 |
55,201,552 |
|||||
(1) Represents costs incurred to better align capacity to preclinical market demand and reduce cost structure. |
|||||||||||
(2) Consists of costs associated with the settlement of an inventory supply agreement ($4,000) and a gain on the sale of an investment $1,459. |
|||||||||||
(3) Represents results of operations at sites where wind-down activities have commenced. |
|||||||||||
(4) Primarily represents favorable resolutions of income tax matters. |
|||||||||||
COVANCE INC. |
|||||||
GAAP to Pro Forma Reconciliation |
|||||||
YTD Q3 2013 |
|||||||
(Dollars in thousands, except per share data) |
|||||||
(UNAUDITED) |
|||||||
Adjustments |
|||||||
GAAP |
Restructuring |
Other |
Pro Forma |
||||
Net revenues |
$ 1,779,219 |
$ 1,779,219 |
|||||
Reimbursable out-of-pocket expenses |
146,142 |
146,142 |
|||||
Total revenues |
1,925,361 |
- |
- |
1,925,361 |
|||
Costs and expenses: |
|||||||
Cost of revenue |
1,255,316 |
1,255,316 |
|||||
Reimbursable out-of-pocket expenses |
146,142 |
146,142 |
|||||
Selling, general and administrative |
266,448 |
(14,576) |
251,872 |
||||
Depreciation and amortization |
95,072 |
(2,500) |
92,572 |
||||
Total costs and expenses |
1,762,978 |
(17,076) |
- |
1,745,902 |
|||
Income from operations |
162,383 |
17,076 |
- |
179,459 |
|||
Other (income) expense, net: |
|||||||
Interest expense, net |
2,634 |
2,634 |
|||||
Foreign exchange transaction loss, net |
1,911 |
1,911 |
|||||
Gain on sale of investments |
(16,400) |
16,400 |
- |
||||
Other (income) expense, net |
(11,855) |
- |
16,400 |
4,545 |
|||
Income before taxes |
174,238 |
17,076 |
(16,400) |
174,914 |
|||
Taxes on income |
40,877 |
5,724 |
(5,746) |
40,855 |
|||
Net income |
$ 133,361 |
$ 11,352 |
$ (10,654) |
$ 134,059 |
|||
Basic earnings per share |
$ 2.45 |
$ 0.21 |
$ (0.20) |
$ 2.46 |
|||
Weighted average shares outstanding - basic |
54,524,296 |
54,524,296 |
54,524,296 |
54,524,296 |
|||
Diluted earnings per share |
$ 2.35 |
$ 0.20 |
$ (0.19) |
$ 2.36 |
|||
Weighted average shares outstanding - diluted |
56,754,527 |
56,754,527 |
56,754,527 |
56,754,527 |
|||
(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. |
|||||||
(2) Represents gain on sale of investments. |
|||||||
COVANCE INC. |
|||||||||||
GAAP to Pro Forma Reconciliation |
|||||||||||
YTD Q3 2012 |
|||||||||||
(Dollars in thousands, except per share data) |
|||||||||||
(UNAUDITED) |
|||||||||||
Adjustments |
|||||||||||
GAAP |
Restructuring |
Other |
Operating |
Income Tax |
Pro Forma |
||||||
Net revenues |
$ 1,618,441 |
$ (7,256) |
$ 1,611,185 |
||||||||
Reimbursable out-of-pocket expenses |
138,174 |
138,174 |
|||||||||
Total revenues |
1,756,615 |
- |
- |
(7,256) |
- |
1,749,359 |
|||||
Costs and expenses: |
|||||||||||
Cost of revenue |
1,174,382 |
(24,781) |
(11,483) |
1,138,118 |
|||||||
Reimbursable out-of-pocket expenses |
138,174 |
138,174 |
|||||||||
Selling, general and administrative |
266,031 |
(21,446) |
(384) |
244,201 |
|||||||
Depreciation and amortization |
87,285 |
(2,293) |
(1,813) |
83,179 |
|||||||
Goodwill impairment charge |
17,959 |
(17,959) |
- |
||||||||
Total costs and expenses |
1,683,831 |
(23,739) |
(42,740) |
(13,680) |
- |
1,603,672 |
|||||
Income from operations |
72,784 |
23,739 |
42,740 |
6,424 |
- |
145,687 |
|||||
Other (income) expense, net: |
|||||||||||
Interest expense, net |
2,353 |
2,353 |
|||||||||
Foreign exchange transaction loss, net |
1,301 |
1,301 |
|||||||||
Impairment of equity investment |
7,373 |
(7,373) |
- |
||||||||
Gain on sale of investment |
(1,459) |
1,459 |
- |
||||||||
Loss on sale of business |
169 |
169 |
|||||||||
Other (income) expense, net |
9,737 |
- |
(5,914) |
- |
- |
3,823 |
|||||
Income before taxes and equity investee earnings |
63,047 |
23,739 |
48,654 |
6,424 |
- |
141,864 |
|||||
Taxes on income |
2,229 |
7,562 |
7,120 |
1,857 |
11,501 |
30,269 |
|||||
Equity investee earnings |
17 |
17 |
|||||||||
Net income |
$ 60,835 |
$ 16,177 |
$ 41,534 |
$ 4,567 |
$ (11,501) |
$ 111,612 |
|||||
Basic earnings per share |
$ 1.10 |
$ 0.29 |
$ 0.75 |
$ 0.08 |
$ (0.21) |
$ 2.02 |
|||||
Weighted average shares outstanding - basic |
55,206,190 |
55,206,190 |
55,206,190 |
55,206,190 |
55,206,190 |
55,206,190 |
|||||
Diluted earnings per share |
$ 1.07 |
$ 0.29 |
$ 0.73 |
$ 0.08 |
$ (0.20) |
$ 1.97 |
|||||
Weighted average shares outstanding - diluted |
56,701,280 |
56,701,280 |
56,701,280 |
56,701,280 |
56,701,280 |
56,701,280 |
|||||
(1) Represents costs incurred to better align capacity to preclinical market demand and reduce cost structure. |
|||||||||||
(2) Consists of inventory impairment and costs associated with the settlement of an inventory supply agreement ($24,781), goodwill impairment ($17,959), |
|||||||||||
impairment of equity investment ($7,373) and a gain on the sale of an investment $1,459. |
|||||||||||
(3) Represents results of operations at sites where wind-down activities have commenced. |
|||||||||||
(4) Primarily represents favorable resolutions of income tax matters. |
|||||||||||