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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
AUGUST 7, 1997
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PAREXEL INTERNATIONAL CORPORATION
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(Exact Name of Registrant as Specified in Charter)
Massachusetts 0-27058 04-2776269
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(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
incorporation)
195 West Street, Waltham, Massachusetts 02154
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (617) 487-9900
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report).
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ITEM 5. OTHER EVENTS.
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On August 7, 1997, the Company issued a press release, a copy of which
is attached as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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EXHIBIT NO. EXHIBIT
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99.1 Press release of the Company dated August 7, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PAREXEL International Corporation
Dated: August 7, 1997 By: /S/ WILLIAM T. SOBO, JR.
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William T. Sobo, Jr., Senior
Vice President, Chief Financial
Officer, Treasurer and Clerk
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release of the Company dated August 7, 1997
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Bill Sobo, Senior Vice President, Chief Financial Officer
Virginia Lacke, Investor Relations
(617) 487-9904, ext. 4118
PAREXEL REPORTS FOURTH QUARTER AND
FISCAL YEAR 1997 RESULTS
Boston, MA, August 7, 1997 -- PAREXEL International Corporation (Nasdaq: PRXL)
today reported strong financial results for its fourth quarter and fiscal year
ended June 30, 1997.
For the three months ended June 30, 1997, net revenue was $47.2 million,
representing a 76% increase over net revenue of $26.9 million for the quarter
ended June 30, 1996. Income from operations for the three months ended June 30,
1997 increased 94% to $4.2 million, or 8.9% of net revenue, compared to $2.2
million, or 8.0% of net revenue, in the prior-year period. Net income for the
quarter was $3.5 million, or $0.17 per share, versus $1.6 million, or $0.10 per
share, last year. This represents a 120% increase in net income and a 73%
increase in earnings per share between periods.
For the fiscal year ended June 30, 1997, net revenue grew 81% to $159.7 million
from $88.0 million in fiscal 1996. Income from operations was $13.7 million, or
8.6% of net revenue, in fiscal 1997 compared to $6.5 million, or 7.4% of net
revenue, in the prior year. Net income increased 136% to $10.8 million in fiscal
1997 from $4.6 million last year. Earnings per share increased 69% to $0.57 in
fiscal 1997 from $0.34 in fiscal 1996.
The Company's backlog, which includes signed contracts and signed letter
agreements, was approximately $200 million as of June 30, 1997. This represents
an 82% increase over prior-year levels.
"Fiscal 1997 has been a year of strength, robust growth and exciting momentum
for PAREXEL," remarked Chief Executive Officer and Chairman, Josef H. von
Rickenbach. "We are witnessing not only increased outsourcing levels at our
large pharmaceutical clients, but also new, strategic ways of outsourcing
clinical development and related services. At PAREXEL, we have reaped the
benefits of efficiently executing our focused growth strategy--that is,
concentrating and capitalizing on the tremendous growth opportunity within our
core clinical research business."
-more-
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As previously announced, PAREXEL completed four acquisitions during fiscal 1997:
Lansal Clinical Pharmaceutics Limited, Sheffield Statistical Services Limited,
State and Federal Associates, Inc. ("S&FA"), and RESCON, Inc. "In addition to
successfully managing our strong internal growth, I am very pleased that we have
also been able to augment our portfolio of services through strategic
acquisitions," offered Josef von Rickenbach. "In particular, the S&FA and RESCON
transactions mark the advent of PAREXEL's Medical Marketing Services Unit and
the extension of our strategic vision beyond product regulatory approval to
product launch services. Our clients have affirmed that our core competencies in
clinical research are highly valued in the process of introducing their products
into the commercial marketplace."
During the June 1997 quarter, PAREXEL also announced its Phase I collaboration
with Georgetown University Medical Center. Reflecting on this alliance, Josef
von Rickenbach adds, "We are enthusiastic about our research collaboration with
Georgetown, one of the finest academic medical centers in the United States.
Similar to the CRO industry, the investigator site industry is still evolving
and transforming, giving rise to a variety of models. We look forward to playing
an important role in expediting clinical research at the site level and helping
academic medical centers adapt to today's changing health care environment."
PAREXEL is a leading contract research organization ("CRO") providing a broad
range of knowledge-based outsourcing services to the worldwide pharmaceutical,
biotechnology and medical device industries. Over the past fifteen years,
PAREXEL has developed significant expertise in clinical trials management, data
management, biostatistical analysis, regulatory and medical affairs consulting,
medical writing, health economics, medical marketing, and other drug development
consulting services. The Company'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 has 20 offices in 10
countries.
This release may contain statements which may be "forward-looking" statements
under federal law. The Company's actual results may differ significantly from
the results discussed in the forward-looking statements. Factors that might
cause such a difference include, but are not limited to: risks associated with
the loss or delay of large contracts; the Company's dependence on certain
industries and clients; management of growth and the ability to attract and
retain employees; acquisitions; government regulation of certain industries and
clients; and competition or consolidation within the industry. These 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, 1997.
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PAREXEL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Year ended
June 30, June 30,
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1997 1996 1997 1996
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(Unaudited)
<S> <C> <C> <C> <C>
Net revenue $47,218 $26,910 $159,679 $88,006
Costs and expenses:
Direct costs 32,023 18,113 108,939 60,141
Selling, general and administrative 9,194 5,948 32,054 19,027
Depreciation and amortization 1,816 694 5,015 2,343
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Income from operations 4,185 2,155 13,671 6,495
Other income, net 1,293 514 3,273 1,157
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Income before income taxes $ 5,478 $ 2,669 $ 16,944 $ 7,652
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Net income $ 3,522 $ 1,604 $ 10,848 $ 4,599
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Net income per share $ 0.17 $ 0.10 $ 0.57 $ 0.34
Weighted average common and
common equivalent shares outstanding $20,300 $16,000 $ 18,938 $13,561
</TABLE>
CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
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<S> <C> <C>
Working capital $110,461 $53,428
Total assets 200,764 102,401
Stockholders' equity 137,825 61,212
</TABLE>
