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APPLIED BIOSCIENCE INTERNATIONAL INC. REPORTS 1993 FIRST QUARTER FINANCIAL RESULTS

 ARLINGTON, Va., April 28 /PRNewswire/ -- Applied Bioscience International Inc. (NASDAQ: APBI) today reported financial results for the first quarter of 1993.
 For the three months that ended March 31, 1993, revenues increased 7.9 percent to $45,499,000 from $42,160,000 in the first quarter of 1992. Revenues of the Life Sciences Group, Pharmaco-LSR, increased 18.2 percent to $30,847,000 from $26,099,000 including $768,000 attributable to the acquisition of Expertises et Developpements Industriels, S.A. in July 1992. Environmental Sciences Group revenues declined 8.8 percent to $14,652,000 from $16,061,000 including an increase of $1,536,000 from the acquisition of National Express Laboratories which was acquired on June 30, 1992.
 Quarterly net income was $590,000 or $0.02 per share, in 1993 compared with a net loss of $1,023,000, or $0.03 per share, recorded in the corresponding period in 1992. Financial results in the first quarter of 1992 included a restructuring charge of $1,984,000 and merger costs of $4,296,000, which were incurred in connection with the February 1992 acquisition of Pharmaco Dynamics Research, Inc., (Pharmaco). The Pharmaco acquisition was accounted for on a pooling-of-interests basis.
 Mr. Grover Wrenn, president and CEO, stated, "Revenues increased less than expected, which contributed to a decline in profitability in the Life Sciences and Environmental groups." First quarter operating income declined 55.3 percent in the Life Sciences Group to $1,835,000 from $4,105,000, while the Environmental Sciences Group incurred an operating loss of $45,000 in the first quarter of 1993, compared with operating income of $3,251,000 in the first quarter of 1992.
 "The near term outlook for both of our business segments is weaker than expected, and in the current business environment, it now appears that the company's revenues will grow 5 percent to 8 percent in 1993, to a range of $190 million to $195 million," added Mr. Wrenn. "Because of this uncertainty, we are implementing aggressive expense reduction measures in order to bring our costs into line with current business conditions. However, given the revenue outlook for the remainder of 1993, these expense reduction measures will not be sufficient for the company to achieve its previously announced earnings projections."
 "We have increased marketing and sales efforts in order to improve revenues longer term. Specifically, we now have an integrated Environmental Sciences Group marketing plan, which is headed by our first group marketing executive. In the Life Sciences Group, our marketing plan is backed by a global advertising campaign."
 Mr. Wrenn noted that APBI's environmental analytical testing division, ETC, incurred a loss, which was only partially offset by income from the consulting division, ENVIRON. In addition, results from the pre-clinical toxicology business in the Life Sciences Group were below last year's. Revenues from clinical studies increased substantially, but operating profit was flat because of an increase in costs from an expansion in Europe and a decline in the profit margins of the clinical analytical laboratory.
 Mr. Wrenn also commented that to date, the company has purchased 1,440,000 shares of its common stock in a 2 million-share repurchase program, which was initiated in January. In addition, he noted that the company remains in strong financial condition. At March 31, 1993, stockholders' equity totaled $108 million, or $3.75 per share, and the company's total debt (both short-term and long-term) was $29 million or less than 27 percent of stockholders' equity. As previously announced, the company is considering seeking additional debt financing in order to expand its share repurchase program.
 APBI provides a broad range of inter-related services including biological safety testing and clinical research and development through its Life Sciences Group, Pharmaco-LSR, and assessment and management of chemical and environmental risk, agrochemical research and development and related analytical chemistry services through its Environmental Sciences Group. These services are provided under contract to clients in the pharmaceutical, general chemical, agrochemical and other industries throughout the world.
 APPLIED BIOSCIENCE INTERNATIONAL INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 Three months ended March 31 1993 1992
 (Unaudited)
 Pharmaco-LSR revenues -
 net of subcontractor costs of
 $2,389 and $1,101, respectively $30,847 $26,099
 Environmental sciences revenues -
 net of subcontractor costs of
 $1,487 and $1,743, respectively 14,652 16,061
 Total 45,499 42,160
 Direct costs - Pharmaco-LSR 21,706 16,399
 Direct costs - Environmental sciences 11,050 10,710
 Selling, general and administrative
 expenses 11,829 8,407
 Restructuring costs -- 1,984
 Total 44,585 37,500
 Operating income 914 4,660
 Merger costs -- (4,296)
 Interest - (expense) (424) (254)
 - income 180 302
 Other income (expense) 255 338
 Income before provision for income taxes 925 760
 Provision for income taxes 335 1,773
 Net income 590 (1,023)
 Weighted average number of
 common shares outstanding 29,488 29,506
 Earnings per share 0.02 (0.03)
 APPLIED BIOSCIENCE INTERNATIONAL INC.
 Results By Business Segment
 (In thousands, except per share amounts)
 Three months ended March 31 1993 1992 Pct. Change
 Net Revenues
 Pharmaco-LSR $30,847 $26,099 18.2
 Environmental Sciences 14,652 16,061 -8.8
 Total 45,499 42,160 7.9
 Direct Costs
 Pharmaco-LSR 21,706 16,399 32.4
 Environmental Sciences 11,050 10,710 3.2
 Total 32,756 27,109 20.8
 Selling, General and Administrative
 Expenses
 Pharmaco-LSR 7,306 5,595 30.6
 Environmental Sciences 3,647 2,100 73.7
 General corporate expenses 876 712 23.0
 Total 11,829 8,407 40.7
 Operating Income
 Pharmaco-LSR 1,835 4,105 -55.3
 Environmental Sciences (45) 3,251 -101.4
 General corporate expenses (876) (712) 23.0
 Provision for business restructuring -- (1,984) --
 Total 914 4,660 -80.4
 -0- 4/28/93
 /CONTACT: John H. Timoney, senior vice president of Applied Bioscience International Inc., 609-951-9090, or John McNamara, president of John McNamara Advertising, Inc., 212-509-7779, for Applied Bioscience International Inc./
 (APBI)


CO: Applied Bioscience International Inc. ST: Virginia IN: SU: ERN

WB-OS -- NY098 -- 2283 04/28/93 16:54 EDT
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