PAREXEL Reports Third Quarter Financial Results
Boston, MA - April 25, 2002
PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the third quarter ended March 31, 2002. In order to conform with newly issued guidelines under Generally Accepted Accounting Principles (GAAP), PAREXEL began reporting revenue and costs associated with reimbursable "out-of-pocket" expenses in the Company's income statements. Implementation of the new accounting guidance has no impact on earnings. To maintain consistency with previous reporting practices, the discussion below is based upon service revenue and related costs, and excludes revenue and costs related to reimbursable out-of-pocket expenses.
--Consolidated service revenue grows 14% year-over-year--
--EPS meets consensus expectations--
For the three months ended March 31, 2002, PAREXEL's consolidated service revenue grew approximately 14% to a record high $112.0 million compared with consolidated service revenue of $98.3 million in the prior year quarter. Operating income was $4.6 million, or 4.1% of service revenue, versus operating income of $684 thousand, or 0.7% of service revenue in the comparable quarter of the prior year. Net income for the quarter was $3.7 million or $0.14 per diluted share, compared with net income of approximately $1.9 million, or $0.08 per diluted share, for the quarter ended March 31, 2001. Excluding the negative impact from the Perceptive Informatics business unit, earnings per diluted share would have been $0.15 in the quarter.
Service revenue for the third quarter was $64.8 million in Clinical Research Services, $25.8 million in the PAREXEL Consulting Group, $16.2 million in Medical Marketing Services, and $5.2 million in Perceptive Informatics, Inc.
For the nine months ended March 31, 2002, consolidated service revenue was $320.7 million versus consolidated service revenue of $280.9 million in the prior year period, an increase of approximately 14%. Operating income for the current nine-month period was $11.3 million compared with a pro forma operating loss of $259 thousand in the prior year nine-month period. Net income for the nine months was $9.2 million or $0.36 per diluted share, compared with pro forma net income of $2.7 million, or $0.11 per diluted share in the prior year nine-month period. Excluding the negative impact from Perceptive Informatics, earnings per diluted share would have been $0.41 in the nine-month period ending March 31, 2002.
Mr. Josef H. von Rickenbach, PAREXEL's Chairman and Chief Executive Officer stated, "We are pleased with the quarter's results which came in at the upper end of the previously-issued EPS guidance, and with the Company's progress in continuing to improve profitability. The PAREXEL Consulting Group and Medical Marketing Services each reported strong year-over-year organic revenue growth in excess of 20% this quarter, while Perceptive Informatics quarterly revenue grew more than 65% year-over-year. The strength of these three units points to the success of our diversified business model. Although Clinical Research Services revenue only grew 7.2% year-over-year, we believe the healthy increase in the dollar value of proposals indicates improved momentum for CRS later in the calendar year".
The Company issued the following forward-looking guidance regarding revenue and earnings per share estimates. For the fourth quarter of Fiscal 2002, the Company anticipates reporting service revenue in the range of $114 to $119 million and earnings per diluted share of approximately $0.15 to $0.16. Achieving those objectives would result in service revenue for Fiscal 2002 (ending June 30, 2002), in the range of $435 to $440 million, and earnings per diluted share in the range of $0.51 to $0.52. For Calendar 2002, the Company anticipates reporting service revenue of between $465 and $480 million, and earnings per diluted share of between $0.61 and $0.65. For Fiscal 2003 (ending June 30, 2003), the Company's preliminary expectations are for service revenue in the range of $485 to $500 million and earnings per diluted share in the range of $0.70 to $0.74.<