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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): February 4, 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 January 26, 1998, Quintiles Transnational Corp. (the "Company")
issued a press release regarding its financial results for the period ended
December 31, 1997. A copy of the press release is attached hereto as Exhibit
99.01 and incorporated by reference herein.
ITEM 7.
(C) EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
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<S> <C>
99.01 Press release, dated January 26, 1998.
</TABLE>
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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: February 4, 1998 Rachel R. Selisker
Chief Financial Officer
and Executive Vice
President Finance
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
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<S> <C>
99.01 Press release, dated January 26, 1998
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EXHIBIT 99.01
FOR IMMEDIATE RELEASE WWW.QUINTILES.COM
CONTACT: Pat Grebe, Media Relations ([email protected])
Greg Connors, Investor Relations ([email protected])
(919) 941-2000
QUINTILES REPORTS RECORD REVENUE OF $814 MILLION FOR 1997
RESEARCH TRIANGLE PARK, N.C. - January 26, 1998 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today announced record financial results for the quarter and
year ended December 31, 1997. Net revenue for the year was $814 million, a 47%
increase over net revenue of $554 million for 1996. Net income available to
common shareholders grew 59% to $55 million over $35 million for 1996. Diluted
earnings per share grew 50% to $0.75 compared to $0.50 for 1996. The earnings
comparisons with 1996 exclude non-recurring costs incurred during 1996.
Net revenue for the fourth quarter 1997 increased 40% to $234 million, from
$167 million for the fourth quarter 1996. Net income available to common
shareholders grew 62% to $17 million versus $10 million for the 1996 fourth
quarter. Diluted earnings per share grew 52% to $0.22 compared to $0.15 for
the fourth quarter of 1996. Again, the comparisons with the 1996 fourth
quarter exclude non-recurring costs incurred during 1996.
The 1996 financial results for Quintiles have been restated for several
strategic acquisitions completed during 1997 which were accounted for as
poolings of interests. When compared to the 1996 results as originally
reported, net revenues grew 52% in 1997, the operating margin improved from
9.8% to 10.8% and diluted earnings per share grew 59%. For the fourth quarter
of 1997, net revenues increased 44% and diluted fourth quarter earnings per
share increased 63% as compared to the fourth quarter of 1996 without
restatements. The earnings comparisons with 1996 exclude non-recurring costs
incurred during 1996.
Business development was strong during 1997, resulting in a backlog at year-end
of $1.06 billion in contract services to be performed in the future. This
represents a 50% increase in backlog from $708 million at the end of 1996.
Dennis Gillings, Ph.D., Chairman and CEO, said: "We began 1997 as the No. 1
company in our industry and I'm proud to say we widened the gap by substantial
revenue increases as the year progressed. I'm particularly proud of the 50
percent increase in business development backlog, which reflects our success in
meeting our customers' needs.
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"Breaking the $800 million barrier is extremely gratifying. Our size is
creating the opportunity for greater efficiencies and new ways to speed products
from the development stage to launch and peak sales in a world market."
Quintiles Transnational Corp. is the market leader in providing full-service
contract research, sales, marketing and 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. Our 10,000 employees serve customers
in customized operating units in 25 countries.
Information in the 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 operations, actual
operation performance, the ability to maintain large client contracts or to
enter into new contracts, and the actual costs of the combining of the
businesses. Particularly, backlog reflects current customer commitments which
are subject to delay, change and cancellation and other factors, many of which
are beyond the control of the company. 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 and its periodic reports.
###
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Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Excluding Non-Recurring Charges
----------------------------------------
Three Months Ended Year Ended Three Months Ended Year Ended
December 31, 9997 December 31, 1997 December 31, 1996* December 31, 1996**
- --------------------------------------------- ------------------------------------- ------------------ -------------------
<S> <C> <C> <C> <C>
In thousands, except per share data
Net revenue 233,714 814,476 167,170 554,227
Costs and expenses:
Direct 119,992 421,855 85,002 278,981
General and administrative 77,509 267,463 57,160 192,184
Depreciation and amortization 11,050 37,459 7,381 25,195
Non-recurring:
Restructuring - - - -
Special pension contribution - - - -
- -------------------------------------------- ------------------------------------- ----------------------------------------
Total costs and expenses 208,551 726,777 149,543 496,360
- --------------------------------------------- ------------------------------------- ----------------------------------------
Income from operations 25,163 87,699 17,627 57,867
Other income (expense) (236) (2,121) (865) (2,422)
- --------------------------------------------- ------------------------------------- ----------------------------------------
Income before income taxes 24,927 85,578 16,762 55,445
Income taxes 8,160 30,262 5,930 18,808
- --------------------------------------------- ------------------------------------- ----------------------------------------
Net income 16,767 55,316 10,832 36,637
Non-equity dividend - - (478) (1,785)
- --------------------------------------------- ------------------------------------- ----------------------------------------
Net income available to common shareholders $16,767 $55,316 $10,354 $34,852
- --------------------------------------------- ------------------------------------- ----------------------------------------
Basic net income per share** $ 0.23 $ 0.76 $ 0.15 $ 0.52
Diluted net income per share** $ 0.22 $ 0.75 $ 0.15 $ 0.50
- --------------------------------------------- ------------------------------------- ----------------------------------------
Shares used in computing net income per share
Basic 73,635 72,394 67,392 67,377
Diluted 74,892 73,931 70,210 70,013
<CAPTION>
Including Non-Recurring Charges
-----------------------------------------
Three Months Ended Year Ended
December 31, 1996* December 31, 1996*
- --------------------------------------------- -----------------------------------------
<S> <C> <C>
In thousands, except per share data
Net revenue 167,170 554,227
Costs and expenses:
Direct 85,002 278,981
General and administrative 57,160 192,184
Depreciation and amortization 7,381 25,195
Non-recurring:
Restructuring 10,729 13,102
Special pension contribution - 2,329
- -------------------------------------------- -----------------------------------------
Total costs and expenses 160,272 511,791
- --------------------------------------------- -----------------------------------------
Income from operations 6,898 42,436
Other income (expense) (17,983) (19,539)
- --------------------------------------------- -----------------------------------------
Income before income taxes (11,085) 22,897
Income taxes 2,251 14,015
- --------------------------------------------- ----------------------------------------
Net income (13,336) 8,882
Non-equity dividend (478) (1,785)
- --------------------------------------------- -----------------------------------------
Net income available to common shareholders ($13,814) $7,097
- --------------------------------------------- -----------------------------------------
Basic net income per share** ($ 0.21) $ 0.11
Diluted net income per share** ($ 0.21) $ 0.10
- --------------------------------------------- -----------------------------------------
Shares used in computing net income per share
Basic 67,392 67,377
Diluted 67,392 70,013
</TABLE>
* Restated to include Innovex,Ltd., BRI International, Inc., Medical Action
Communication Limited, Cerebro Vascular Advances, and Clindepharm
International (Pty) Limited acquired by the Company through transactions
accounted for as poolings of interests.
** Restated to reflect the November 1997 two-for-one stock split
