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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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): July 22, 1998
QUINTILES TRANSNATIONAL CORP.
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 340-23520 56-1714315
(State or other (Commission File No.) I.R.S. Employer
jurisdiction Identification Number
of incorporation)
4709 CREEKSTONE DRIVE, RIVERBIRCH BUILDING, SUITE 200, DURHAM,
NORTH CAROLINA 27703-8411
(Address of principal executive offices)
(919) 941-2000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On July 21, 1998, Quintiles Transnational Corp. (the "Company") issued
a press release regarding its financial results for the period ended June 30,
1998. A copy of the press release is attached hereto as Exhibit 99.01 and
incorporated by reference herein.
ITEM 7.
(C) EXHIBITS
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<CAPTION>
Exhibit No. Description of Exhibit
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<S> <C>
99.01 Press release, dated July 21, 1998.
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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.
QUINTILES TRANSNATIONAL CORP.
By: /s/ Rachel R. Selisker
-------------------------------------
Dated: July 21, 1998 Rachel R. Selisker
Chief Financial Officer and Executive
Vice President Finance
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EXHIBIT INDEX
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Exhibit No. Description of Exhibit
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<S> <C>
99.01 Press release, dated July 21, 1998
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FOR IMMEDIATE RELEASE WWW.QUINTILES.COM
CONTACT: Pat Grebe, Media Relations ([email protected])
Greg Connors, Investor Relations ([email protected])
(919) 941-2000
QUINTILES TRANSNATIONAL REPORTS INDUSTRY RECORD REVENUE OF $280.8 MILLION
RESEARCH TRIANGLE PARK, N.C. - July 21, 1998 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today reported strong financial results for the second quarter
1998. Net revenue for the quarter was $280.8 million, a 45% increase over net
revenue of $194.2 million for the second quarter 1997. Net income available to
common shareholders grew 52% to $19.5 million versus $12.9 million for the 1997
second quarter. Second quarter 1997 results were restated for acquisitions
completed during 1997 that were accounted for as poolings of interests. Diluted
net income per share grew 51% to $0.25 compared with $0.17 per share as
originally reported for the same period in 1997.
"We are very proud of our strong second quarter results, and extremely grateful
to our customers for another resounding vote of confidence," said Dennis
Gillings, Ph.D., Chairman and CEO of Quintiles Transnational Corp. "But we
remain future-oriented in our approach, because that focus is what brought us to
this point. Our TotalAcceleration(TM) program is continually revamping and
streamlining the way our global services are delivered, adding great value for
our customers. We are concentrating considerable efforts on the development of
our Quinternet(TM) platform, which we believe will revolutionize the way we
conduct clinical trials and detailing."
In the second quarter, Quintiles acquired a production facility in Scotland,
enhancing its ability to prepare and package drugs for use in clinical trials,
especially large-scale multinational trials that can involve thousands of
patients. Quintiles also acquired South Africa's leading biostatistics and data
management company and a U.K.-based company whose centralized electrocardiogram
(ECG) monitoring service offers higher quality ECG data and increased speed of
collation and interpretation of data in both regional and global clinical
trials.
Quintiles also entered into a major agreement with the renowned academic medical
center, Emory University, to collaborate on clinical research opportunities.
Quintiles launched a major new program, Accelerated Site Resources(TM), which
allows sponsors and investigators to hire clinical research coordinators to
perform a wide variety of services at investigator sites, from the
implementation of new electronic data collection systems to turn-key study
management. In addition to service expansion, Quintiles continued its geographic
expansion by opening new offices in Hungary and Bulgaria.
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Quintiles Transnational Corp. is the market leader in providing full-service
contract research, sales and marketing, healthcare policy consulting and health
information management services to the worldwide pharmaceutical, biotechnology,
medical device and healthcare industries. Quintiles is headquartered near
Research Triangle Park, North Carolina. With 13,000 employees worldwide and
offices in 28 countries, Quintiles operates through specialized work groups
dedicated to meeting individual customer needs. Visit our web site at
www.quintiles.com.
Information in this press release contains "forward-looking statements." These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, the ability of recently
combined businesses to be integrated with Quintiles' current worldwide
operations, actual operating performance, the ability to penetrate new and
unproven markets and the rate of such penetration, the ability to maintain large
client contracts or to enter into new contracts, and the actual costs of
combining the businesses. Additional factors that could cause actual results to
differ materially are discussed in the company's recent filings with the
Securities and Exchange Commission, including but not limited to its S-3 and S-4
Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks, and its
other periodic reports, including Form 10-Q, exhibit 99.01.
Condensed Consolidated Statements of Income
(Unaudited)
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Three Months Ended June 30 Six Months Ended June 30
1998 1997*** 1998* 1997***
<S> <C> <C> <C> <C>
In thousands, except per share data
Net revenue 280,810 194,180 536,159 374,065
Costs and expenses:
Direct 146,692 100,654 281,070 192,689
General and administrative 91,129 63,622 173,020 124,483
Depreciation and amortization 13,639 8,793 25,721 16,851
Total costs and expenses 251,460 173,069 479,811 334,023
Income from operations 29,350 21,111 56,348 40,042
Other income (expense) (510) (333) (978) (1,056)
Income before income taxes 28,840 20,778 55,370 38,986
Income taxes 9,323 7,915 17,779 14,644
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<S> <C> <C> <C> <C>
Net income available to
common shareholders $19,517 $12,863 $37,591 $24,342
Basic net income per share** $0.26 $0.18 $0.50 $0.34
Diluted net income per share** $0.25 $0.17 $0.49 $0.33
Shares used in computing
net income per share**
Basic 75,507 72,538 75,340 71,269
Diluted 77,115 74,061 76,940 72,971
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Consolidated Balance Sheet Data
(Unaudited)
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June 30, December 31,
1998 1997
In millions
<S> <C> <C>
Working capital $178 $165
Total assets 897 799
Shareholders' equity 433 387
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* Restated to include ClinData International Pty Ltd. and Cardiac Alert
acquired in the second quarter of 1998 through transactions accounted for
as poolings of interests.
** Restated to reflect the December 1997 two-for-one stock split.
*** Restated to include certain 1997 poolings of interests transactions. On a
restated basis, diluted net income per share for the second quarter 1998
grew 46% over the second quarter 1997.
