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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): April 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 April 21, 1998, Quintiles Transnational Corp. issued a press release
regarding its financial results for the three month period ended March 31, 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 April 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: April 22, 1998 Rachel R. Selisker
Chief Financial Officer and Executive
Vice President Finance
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
----------- ----------------------
99.01 Press release, dated April 21, 1998
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EXHIBIT 99.01
[QUINTILES LOGO]
News Release
QUINTILES TRANSNATIONAL'S NET REVENUE EXCEEDS QUARTER BILLION,
SETS INDUSTRY RECORD
RESEARCH TRIANGLE PARK, N.C. - April 21, 1998 - Quintiles Transnational
Corp. (Nasdaq: QTRN) today reported strong financial results for the first
quarter 1998. Net revenue for the quarter was $254.7 million, a 42% increase
over net revenue of $179.9 million for the first quarter 1997. Net income
available to common shareholders grew 57% to $18.0 million versus $11.5 million
for the 1997 first quarter. Diluted net income per share grew 47% to $0.24
compared with $0.16 per share for the same period in 1997. First quarter 1997
results were restated for acquisitions completed during 1997 that were accounted
for as poolings of interests. When compared with first quarter 1997 results as
originally reported, diluted net income per share grew 57% compared with $0.15
per share for the first quarter of 1997.
"We are very pleased by the superb results for the first quarter.
Breaking the one-quarter billion mark is a first in the industry and a major
milestone for us," said Dennis Gillings, Ph.D., Chairman and CEO of Quintiles
Transnational Corp. "We are especially pleased by our customers' resounding vote
of confidence. Our net revenue increases show that we continued to extend our
leadership at a tremendous rate.
"We have differentiated ourselves by our commitment to Total
Acceleration(TM) on a global scale. Our worldwide service capacity is designed
to accelerate both clinical development and sales penetration, which can
effectively add years to a product's sales life before patent protection
expires."
In the first quarter, Quintiles expanded its pan-European sales force
to reinforce its leadership position both in numbers of sales personnel and
therapeutic reach. In the Greater China region, Quintiles continued its
long-term strategy by adding considerable breadth to its clinical development
capabilities. Quintiles also enhanced its health outcomes assessment services,
particularly in patient registries, pharmacoeconomic and quality-of-life
studies, which are crucial areas for customers seeking optimum product market
positioning in a cost-containment environment.
"We offer our customers the powerful combination of the world's largest
clinical trials management capacity and the world's largest contract sales
force," Dr. Gillings said. "Innovex, our product commercialization group, is by
far the leader in the U.S. and Europe, and we are leading the globalization of
contract sales by systematically expanding Innovex to major new markets,
utilizing the global presence of our clinical development group as an efficient
platform for growth.
(more)
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"While building this unique critical mass on a global basis, we have
taken great care to organize ourselves into small, specialized business units.
This way our customers can enjoy the advantages of scale without sacrificing the
entrepreneurial responsiveness that has fueled our growth. This, in a nutshell,
is our `worldwide-next door' program."
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
12,000 employees worldwide and offices in 27 countries, Quintiles operates
through specialized work groups dedicated to meeting individual customer needs.
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
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 Annual
Report on Form 10-K, its Form 8-Ks, and its other periodic reports.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
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1998 1997*
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<S> <C> <C>
In thousands, except per share data
Net revenue 254,690 179,885
Costs and expenses:
Direct 134,021 92,035
General and administrative 81,704 60,861
Depreciation and amortization 12,064 8,058
Total costs and expenses 227,789 160,954
Income from operations 26,901 18,931
Other income (expense) (458) (723)
Income before income taxes 26,443 18,208
Income taxes 8,438 6,729
Net income available to common shareholders $ 18,005 $ 11,479
Basic net income per share ** $ 0.24 $ 0.16
Diluted net income per share ** $ 0.24 $ 0.16
Shares used in computing net income per share **
Basic 74,977 70,017
Diluted 76,554 71,931
</TABLE>
(more)
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Consolidated Balance Sheet Data
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
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<S> <C> <C>
In millions
Working capital $ 168 $ 165
Total assets 890 799
Shareholders' equity 413 387
</TABLE>
* Restated to include Butler Clinical Recruitment and Medical Action
Communications acquired in June 1997, and CerebroVascular Advances
acquired by the Company in July 1997 and Clindepharm International
(Pty) Limited, Rapid Deployment Services, and Intelligent Imaging, Inc.
acquired by the Company in August 1997 through transactions accounted
for as poolings of interests.
** Restated to reflect the December 1997 two-for-one stock split
CONTACT: Pat Grebe, Media Relations -- [email protected], or
Greg Connors, Investor Relations --
[email protected], both of
Quintiles Transnational Corp., (919) 941-2000
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