ClinTrials Research Reports Positive Second Quarter 1999 Operating Results.RESEARCH TRIANGLE PARK Research Triangle Park, research, business, medical, and educational complex situated in central North Carolina. It has an area of 6,900 acres (2,795 hectares) and is 8 × 2 mi (13 × 3 km) in size. Named for the triangle formed by Duke Univ. , N.C.--(BUSINESS WIRE)--July 29, 1999-- - Revenues and income increased over Q1 99 & Q2 98 - Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.01 - Gross margins increased to 41.3% compared to 36.4% and 31.0% in Q1 99 & Q2 98 respectively. - New business awards were $37.1 million during Q2 99 ClinTrials Research Inc. (Nasdaq: CCRO CCRO County of San Diego Code of Regulatory Ordinances ), a global provider of preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical research services to pharmaceutical, biotechnology and medical device clients, announced today operating results for the second quarter ended June June: see month. 30, 1999. Net revenues in the second quarter were $25,214,000 compared with $22,888,000 in the same period of 1998, an increase of 10.2%. Income before income taxes was $271,000 versus a loss before income taxes of $10,549,000 in the same period last year, which included a $6.4 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . Net income for the quarter was $153,000 compared to a net loss of $10,476,000 in the same period last year. Both diluted earnings per share and basic earnings per share were $0.01 in the second quarter of 1999 compared to First Call consensus analyst estimates of a loss of $0.16 per share. The diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. and basic loss per share a year ago was $0.58, which included a restructuring charge of $0.35 ($6.4 million). Commenting on the positive second quarter results Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. R. Mitchell Mitchell, city (1990 pop. 13,798), seat of Davison co., SE S.Dak.; inc. 1881. Mitchell is a trade, distribution, and shipping center for a dairy and livestock area. , M.D., Ph.D., Chairman and Chief Executive Officer of ClinTrials Research, Inc., stated, "The second quarter results continue the operational success we have been demonstrating since 4Q 98. This solid performance reflects the consolidations that began to be implemented 15 months ago which produced expense reductions in virtually all categories, especially in SG&A. The process and operational changes that were instituted continue to enhance our effectiveness and productivity, as shown by the improvements in gross margins, while increasing capability and capacity. We will continue to focus on building a solid company because this is the best way to grow shareholder value when coupled with an effective marketing program." New business won during the second quarter was $37.1 million. Commenting on the results and expected trend for the remainder of 1999, Colin Col´in n. 1. (Zool.) The American quail or bobwhite. The name is also applied to other related species. See Bobwhite. Neill Neill is a surname, and may refer to
emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. clinical operations benefited from the profitable completion of several studies. Nevertheless, the length of time to start up new clinical projects is increasing due to our changing study mix toward more full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. and global projects. This, along with the timing of new order inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. , makes it likely that revenues in the third and fourth quarters, while substantial, will not reach the levels achieved in the current quarter and therefore sustained profitability is not expected before next year." ClinTrials Research is a global contract research organization headquartered in Research Triangle Park, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. with offices in Montreal, Canada; Maidenhead Maidenhead, city (1991 pop. 59,809), Windsor and Maidenhead, S central England, on the Thames River. It is a residential town with brewing and milling industries as well as a resort. The 13th-century stone bridge was rebuilt in the 1770s. , England; Glasgow, Scotland; Brussels, Belgium; Paris, France; Melbourne, Australia; Tel Aviv Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel; Santiago, Chile Santiago, officially Santiago de Chile (Spanish: (helpinfo)), is the capital of Chile, and the center of its largest conurbation (Greater Santiago). ; and Milan, Italy. With approximately 1300 employees, ClinTrials Research provides comprehensive preclinical, clinical, and post-marketing research services, including monitoring, data management and biostatistics biostatistics /bio·sta·tis·tics/ (-stah-tis´tiks) biometry. bi·o·sta·tis·tics n. The science of statistics applied to the analysis of biological or medical data. , medical and regulatory services to pharmaceutical, biotechnology and medical device clients. Forward looking statements made in this release involve a number of risks and uncertainties, included but not limited to the Company's ability to obtain new business and to accurately estimate the timing of the recognition of net revenues in the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. due to variability in size, scope and duration of projects, regulatory delays, study results which lead to reductions or cancellations of projects, other decisions totally within the control of the clients, and targets of returning to profitability in 1999 and thereafter. These uncertainties are in addition to the risk factors detailed in the Company's Securities and Exchange Commission filings. The condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations and balance sheets are attached.
Condensed Consolidated Income Statements
(Unaudited)
(In thousands, except for per share data)
Quarter Ended June 30
------------------------------
1999 1998
------------ ------------
Net service revenue $25,214 $22,888
Costs and expenses:
Direct costs 14,811 15,880
S, G & A costs 8,610 10,009
Depreciation and amortization 1,635 1,391
Interest (income) expense, net (113) (207)
Restructuring charge 0 6,364
------------ ------------
Income (loss) before income taxes $ 271 $(10,549)
============ ============
Net income (loss) $ 153 $(10,476)
============ ============
Earnings (loss) per share:
Basic $0.01 $(0.58)
Diluted $0.01 $(0.58)
Weighted average shares outstanding for
EPS computation
Basic 18,017 18,195
Diluted 18,678 18,195
Condensed Consolidated Income Statements
(Unaudited)
(In thousands, except for per share data)
Six Months Ended June 30
------------------------------
1999 1998
------------ ------------
Net service revenue $48,917 $46,536
Costs and expenses:
Direct costs 29,886 32,407
S, G & A costs 18,080 19,637
Depreciation and amortization 3,238 2,845
Gain on sale of Ovation (484) 0
Nashville lease termination costs 845 0
Interest (income) expense, net (217) (535)
Restructuring charge 0 6,364
------------ ------------
Loss before income taxes $(2,431) $(14,182)
============ ============
Net loss $(2,788) $(12,716)
============ ============
Earnings (loss) per share:
Basic $(0.15) $(0.70)
Diluted $(0.15) $(0.70)
Weighted average shares outstanding for
EPS computation
Basic 18,021 18,190
Diluted 18,021 18,190
Condensed Consolidated Balance Sheet Information
(Unaudited)
(In thousands)
June 30, December 31,
1999 1998
------------ ------------
Assets
Current Assets:
Cash and cash equivalents $ 6,221 $10,867
Accounts receivable 30,821 30,179
Other current assets 4,623 6,044
------------ ------------
Total current assets 41,665 47,090
Property, plant and equipment, net 39,796 39,774
Excess of purchase price over net
assets acquired 34,412 33,655
Other assets 2,807 2,577
------------ ------------
$118,680 $123,096
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $5,941 $7,332
Advance billings 7,269 12,562
Accrued expenses and other
Current liabilities 13,215 9,970
------------ ------------
Total current liabilities 26,425 29,864
Deferred income taxes 3,954 3,411
Long-term debt 454 265
Stockholders' equity 87,847 89,556
------------ ------------
$118,680 $123,096
============ ============
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