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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): October 20, 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 October 20, 1998, Quintiles Transnational Corp. (the "Company")
issued a press release regarding its financial results for the three month
period ended September 30, 1998. A copy of the press release is attached hereto
as Exhibit 99.01 and incorporated by reference herein.
Item 7.
(c) Exhibits
Exhibit No. Description of Exhibit
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99.01 Press release, dated October 20, 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: October 20, 1998 Rachel R. Selisker
Chief Financial Officer and
Executive Vice President Finance
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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99.01 Press release, dated October 20, 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 POSTS 47% GROWTH,
AGAIN BREAKS ITS INDUSTRY RECORDS IN REVENUE AND INCOME
RESEARCH TRIANGLE PARK, N.C. - October 20, 1998 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today reported net revenue of $303.5 million for the third
quarter 1998, breaking its own industry record for quarterly revenue and
representing a 47% increase over net revenue of $206.7 million for the third
quarter 1997. Quintiles Transnational also exceeded its own industry record for
net income available to common shareholders, which grew 47% to $20.9 million
versus $14.2 million for the 1997 third quarter. Diluted net income per share
grew 41% to $0.27 compared with $0.19 per share for the third quarter of 1997.
"Our continuing success allows us to expand and integrate our healthcare
intelligence network to create new opportunities for our customers to succeed,"
said Dennis Gillings, Ph.D., Chairman and CEO of Quintiles Transnational Corp.
"For example, our ability to cross-reference demographic information about
disease patterns with our extensive database of high-quality investigators is
designed to dramatically accelerate patient recruitment. Slow recruitment is the
No. 1 cause of delays in clinical trials, and this is just one component of our
worldwide TotalAcceleration(TM) program aimed at improving drug development
while compressing timelines.
"On the sales and marketing side, we're growing our capabilities globally and by
adding new services, such as sophisticated sales management software and
territory alignment systems to help our customers optimize sales forces
productivity. These capabilities further strengthen our ability to help
accelerate the commercial success of our customers' products."
While all of Quintiles Transnational's service groups contributed to its robust
third-quarter results, the greatest growth occurred in U.S. contract research
services, the most mature part of Quintiles' business. Since the beginning of
the third quarter Quintiles Transnational's organic growth was balanced with
five high-quality acquisitions - two in Europe and three in the U.S. - to
broaden the depth and breadth of the company's service offerings, and by the
openings of new offices in Israel and Brazil.
Quintiles Transnational's Innovex service group, already the world's largest
supplier of pharmaceutical contract sales and marketing services, further
extended its capabilities by adding high-quality contract sales organizations in
the United Kingdom and France, and a premier sales force planning company in the
United States.
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Recently Quintiles Transnational added to its growing Quintiles Medical
Communications capabilities by acquiring a leading U.S. supplier of integrated
product marketing and communication services. Quintiles also acquired a
full-service clinical packaging facility in the U.S. and entered into an
agreement with the renowned academic medical center, Johns Hopkins Medicine, to
collaborate on clinical research opportunities.
Quintiles Transnational Corp. is the market leader in providing a full range of
integrated product development and marketing services to the pharmaceutical,
biotechnology and medical device industries. Quintiles also provides healthcare
policy consulting and health information management services to healthcare and
governmental organizations worldwide. Quintiles is headquartered near Research
Triangle Park, North Carolina. With more than 14,000 employees worldwide and
offices in 30 countries, Quintiles operates through specialized work groups
dedicated to meeting customers' individual 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.
# # #
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30 Nine Months Ended September 30
1998 1997 1998* 1997***
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<S> <C> <C> <C> <C>
In thousands, except per share data
Net revenue 303,474 206,697 848,379 580,762
Costs and expenses:
Direct 159,284 109,174 444,369 301,863
General and administrative 98,298 65,471 274,925 189,954
Depreciation and amortization 14,166 9,558 40,431 26,409
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Total costs and expenses 271,748 184,203 759,725 518,226
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Income from operations 31,726 22,494 88,654 62,536
Other income (expense) (989) (829) (1,917) (1,885)
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Income before income taxes 30,737 21,665 86,737 60,651
Income taxes 9,825 7,458 27,823 22,102
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Net income available to common shareholders $20,912 $14,207 $58,914 $38,549
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Basic net income per share** $0.27 $0.19 $0.77 $0.54
Diluted net income per share** $0.27 $0.19 $0.76 $0.52
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Shares used in computing net income per share**
Basic 76,724 73,011 76,476 71,948
Diluted 78,108 74,686 77,987 73,632
</TABLE>
CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
<TABLE>
<CAPTION>
Sept 30, December 31,
1998 1997
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<S> <C> <C>
In millions
Working capital $198 $165
Total assets 938 799
Shareholders' equity 465 387
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</TABLE>
* Restated to include ClinData International Pty Ltd., Cardiac Alert,
Royce Consultancy, Ltd. and Data Analysis Systems acquired in the
second and third quarters 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 interest transactions.
