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):
January 27, 1999
PAREXEL International Corporation
(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 02451
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (781) 487-9900
Not Applicable
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Former Name or Former Address, if Changed Since Last Report).
Item 5. Other Events.
On January 27, 1999, 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.
Exhibit No. Exhibit
99.1 Press release of the Company dated January 27, 1999
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: January 27, 1999 By:/s/William T. Sobo
William T. Sobo, Jr., Senior
Vice President, Chief Financial
Officer, Treasurer and Clerk
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release of the Company dated January 27, 1999
FOR IMMEDIATE RELEASE www.PAREXEL.com
CONTACTS: Bill Sobo, Senior Vice President, Chief Financial Officer
Virginia Lacke, Director, Investor Relations
(781) 487-9904, ext. 4118
PAREXEL REPORTS FINANCIAL RESULTS FOR
SECOND QUARTER ENDED DECEMBER 31, 1998
o Second quarter net revenue of $87.9 million
o Second quarter EPS of $.21 per share
o Record new business awards of $120 million during the quarter
o DSOs decline from 65 to 56 days
Boston, MA, January 27, 1999 -- PAREXEL International Corporation (Nasdaq:
PRXL)today reported its financial results for the second fiscal quarter ended
December 31, 1998.
PAREXEL's consolidated net revenue for the three months ended December 31, 1998
was $87.9 million which reflected growth of 29.2% over net revenue of $68.0
million in the prior-year period after restating for acquisitions. Revenue
growth was 49.9% over the prior year net revenue of $58.6 million as originally
reported. For the quarter ended December 31, 1998 income from operations was
$7.3 million, a 12.3% increase over pro-forma operating income of $6.5 million
in the prior year quarter, which is restated for subsequent pooling acquisitions
but does not reflect $4.1 million of acquisition-related charges.
For the six months ended December 31, 1998, consolidated net revenue of $170.7
million grew 30.3% over the prior year period net revenue of $131.0 million
after restating for acquisitions. Operating income for the six months ended
December 31, 1998 was $15.0 million which reflects year over year growth of
21.4% when compared to pro-forma operating income of $12.3 million, which is
restated for subsequent pooling acquisitions but does not reflect $4.1 million
of acquisition-related charges.
"I am pleased to report that PAREXEL's revenue grew 29.2% over the prior year
period. Even more importantly as we look to the future, our new business
authorizations during the quarter were up 60% over the prior year to a level of
$120.0 million, which reflects a strong endorsement by our clients of the
quality of the services provided by PAREXEL," said Josef von Rickenbach,
Chairman and Chief Executive Officer of PAREXEL.
"As previously indicated, PAREXEL has expanded its selling capacity over the
past few quarters, and we have started to see some results from this investment,
which provides us with a positive view toward the future. The broader CRO
industry also looks very healthy, and the growth of this sector continues to be
fueled by significant R&D investments by our clients. According to the
Pharmaceutical Research and Manufacturing Association, PhRMA, R&D spending is
expected to grow 13.7% in 1999, a significant increase over prior years' growth
rates," commented von Rickenbach.
This release contains "forward-looking" statements regarding future results and
events, including statements regarding expected future growth and customer
demand. The Company's actual future results may differ significantly from the
results discussed in the forward-looking statements contained in this release.
Factors that may cause such a difference include, but are not limited to: the
inability of the Company to win new business at the levels required; the ability
to hire, train and retain qualified personnel; the cancellation or delay of
contracts; risks associated with the management of growth and the risks of
integrating newly acquired businesses; and competition. These and other factors
are discussed more fully in the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the fiscal year ended June 30, 1998 and Quarterly
Report on Form 10-Q for the quarter ended September 30, 1998.
PAREXEL is one of the largest contract pharmaceutical outsourcing organizations
in the world, providing a broad range of knowledge-based contract research,
medical marketing and consulting services to the worldwide pharmaceutical,
biotechnology and medical device industries. With a commitment to providing
clients solutions that accelerate time-to-market and peak market penetration,
PAREXEL has developed significant expertise in clinical trials management, data
management, biostatistical analysis, medical marketing, clinical pharmacology,
regulatory and medical consulting, industry training and publishing, 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 more than 45
offices and approximately 4,100 employees in 25 countries around the world.
PAREXEL International Corporation
Consolidated Condensed Statements of Operations
(In thousands, except per share data)
(Unaudited) (Unaudited)
Three months ended Six months ended
December 31, December 31,
1998 1997 (a) 1998 1997 (a)
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Net revenue .......................... $87,855 $67,993 $170,690 $130,984
Costs and expenses:
Direct costs ...................... 58,890 44,252 112,627 85,561
Selling, general and administrative 17,215 14,089 34,394 27,311
Depreciation and amortization ..... 4,473 3,167 8,715 5,797
Acquisition-related charges ....... -- 4,100 -- 4,100
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Income from operations ............... 7,277 2,385 14,954 8,215
Other income, net .................... 627 883 1,340 2,041
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Income before income taxes ........... $ 7,904 $ 3,268 $ 16,294 $ 10,256
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Net income ........................... $ 5,141 $ 1,907 $ 10,646 $ 6,246
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Earnings per common share:
Basic .................... $ 0.21 $ 0.08 $ 0.43 $ 0.26
Diluted .................. $ 0.21 $ 0.08 $ 0.42 $ 0.25
Shares used in computing earnings per common share:
Basic . 24,787 23,790 24,732 23,751
Diluted 25,077 24,652 25,084 24,650
Consolidated Balance Sheet Information
(In thousands) ......................... (Unaudited)
Dec. 31, June 30,
1998 1998
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Working capital .... $130,316 $118,937
Total assets ....... 286,681 261,758
Stockholders' equity 180,378 168,380
(a) The three and six month periods ended December 31, 1997 have been restated
to include the results of operations for businesses acquired during fiscal
1998 and accounted for using the pooling of interests method.
