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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):
April 23, 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 April 23, 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 April 23, 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: April 24, 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 April 23, 1997
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EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
CONTACTS: Bill Sobo, Senior Vice President, Chief Financial Officer
Virginia Lacke, Investor Relations
(617) 487-9904, ext. 4118
PAREXEL REPORTS INCREASED REVENUES AND EARNINGS
FOR MARCH QUARTER
Boston, MA, April 23, 1997 -- PAREXEL International Corporation (Nasdaq: PRXL)
today reported strong financial results for its third fiscal quarter ended March
31, 1997.
Net revenue for the three months ended March 31, 1997 was $42.3 million, a
record 88% increase over net revenue of $22.5 million for the quarter ended
March 31, 1996. Existing operations generated 70% revenue growth, with the
remainder attributable to businesses acquired during the last twelve months.
Income from operations for the three months ended March 31, 1997 increased 111%
to $3.7 million, or 8.7% of net revenue, compared to $1.7 million in the
prior-year period. Net income for the quarter was $3.1 million, or $0.15 per
share, versus $1.3 million, or $0.09 per share, last year. This represents a
140% increase in net income and a 67% increase in earnings per share between
periods, with a 36% increase in average shares outstanding.
For the nine months ended March 31, 1997, net revenue grew 84% to $112.5 million
from $61.1 million in the prior-year period. Net income for the nine months
ended March 31, 1997 increased 145% to $7.3 million compared to $3.0 million in
the prior year, resulting in earnings per share of $0.40 and $0.24,
respectively.
"These outstanding results are indicative of our clients' confidence and
interest in strategically outsourcing to PAREXEL substantial clinical
development programs, as well as product launch services which draw upon our
core clinical research competencies," remarked Josef H. von Rickenbach, Chief
Executive Officer and Chairman of PAREXEL. "In my opinion, we can help tighten
the integration of the research and marketing functions at our pharmaceutical
clients, which should have a significant impact on accelerating time-to-market
and optimizing the market penetration of their products. This quarter's
performance also demonstrates PAREXEL's ability to aggressively grow revenues
while effecting margin improvement, a testament to the dedication of PAREXEL's
employees."
-more-
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As previously announced, PAREXEL completed two acquisitions during the third
fiscal quarter which were treated as poolings of interests for financial
accounting purposes: RESCON, Inc., a medical marketing firm in the Washington,
D.C. area, and Sheffield Statistical Services, Ltd. ("S-Cubed"), a CRO in the
United Kingdom specializing in biostatistical analysis.
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 in Boston, MA, PAREXEL has 18 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
acquisitions; management of growth and the ability to attract and retain
employees; the loss or delay of large contracts; the Company's dependence on
certain industries and clients; government regulation of such 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 December 31, 1996.
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PAREXEL INTERNATIONAL CORPORATION
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
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1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Net revenue $42,261 $22,507 $112,460 $61,096
Costs and expenses:
Direct costs 28,736 15,154 76,915 42,027
Selling, general and administrative 8,558 5,001 22,859 13,079
Depreciation and amortization 1,311 616 3,199 1,649
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Income from operations 3,656 1,736 9,487 4,341
Other income, net 1,191 422 1,980 642
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Income before income taxes $ 4,847 $ 2,158 $ 11,467 $ 4,983
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Net income $ 3,117 $ 1,297 $ 7,326 $ 2,995
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Net income per share $ 0.15 $ 0.09 $ 0.40 $ 0.24
Weighted average common and
common equivalent shares outstanding 20,198 14,902 18,484 12,543
</TABLE>
<TABLE>
CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
<CAPTION>
March 31, June 30,
1997 1996
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(Unaudited)
<S> <C> <C>
Working capital $109,452 $ 53,428
Total assets 185,012 102,401
Stockholders' equity 130,738 61,212
</TABLE>
