<PAGE>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Dated April 16, 1999
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
----------------------------------------
(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
235 COHEN STREET
----------------
SAINT LARUENT, QUEBEC CANADA H4R 2N6
------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F X (commenced in calendar
------- ------ year 1998)
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
------ -----
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): ______________
<PAGE>
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, thereunto duly authorized.
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
----------------------------------------
(Registrant)
Date:April 16, 1999 By: /S/ JEAN-YVES CALOZ
-------- --------------------
Jean-Yves Caloz
Senior Vice President, International
Finance and Acquisitions
<PAGE>
Exhibit 99.1
Press Release
Immediate Release
PHOENIX INTERNATIONAL LIFE SCIENCES INC. ANNOUNCES FINANCIAL RESULTS FOR THE
SECOND QUARTER OF FISCAL 1999
Montreal, April 15, 1999 - Phoenix International reported consolidated net
revenues of $56.4 million for the second quarter of fiscal 1999 ended February
28, 1999, a growth of 59% compared to $35.6 million for the corresponding period
of fiscal 1998, as restated to include the ANAWA and Clinserve poolings of
interests. During the second quarter, the company's organic growth in net
revenue was 18%.
Year to date net revenue is $ 117.2 million compared to $ 70.4 million for the
corresponding six-month period or an increase of 66% , including an organic
growth of 20%.
Phoenix International's net income on a US GAAP basis for the second quarter is
$ 100,000 or $0.00 per share as compared to $ 678,000 or $0.03 per share for the
equivalent period in fiscal 1998. On a year to date basis, the company's net
profit is $ 3.6 million or $ 0.13 per share before merger costs of $ 800,000 ($
0.03 per share) related to the Clinserve & McKnight acquisitions under pooling
of interest method, as compared to $ 3 million or $ 0.12 per share for the same
period last year. Cash flow from operations before working capital changes
increased 40% to $10.0 million, compared to $6.9 million in the second quarter
of fiscal 1998.
On a Canadian GAAP basis, the net loss was $ 395,000 in the second quarter of
fiscal 1999 or $0.02 per share compared to a profit of $ 195,000 or $0.01 per
share in the corresponding period of fiscal 1998. Gross margin was 38%, in line
with the comparative prior year quarter.
Dr. John Hooper, Chairman and CEO commented:
The second quarter earnings are consistent with those forecasted in our
February Press Release and we expect the earnings in the third quarter
to improve and to continue to improve in the fourth quarter.
The Chrysalis acquisition announced in November of 1998 is proceeding as planned
with the Chrysalis shareholders meeting to approve the transaction scheduled for
on April 30, 1999. If approved by Chrysalis shareholders, closing is expected to
occur shortly thereafter. Chrysalis, is one of the world's 15 largest CROs, with
strength in preclinical toxicology and pharmacology in Lyon, France and
Scranton, Pennsylvania, and genomics services in Princeton, New Jersey (DNX
Transgenics), and is expected to have a continuing Phase II-IV clinical research
presence in Germany, Eastern Europe, and Israel, complementary to Phoenix's more
substantial operations in this market segment.
Phoenix International is a contract research organisation (CRO) providing a wide
spectrum of clinical, analytical, preclinical, drug discovery support and
ancillary services to the pharmaceutical and biotechnology industries. Since
beginning its operations in 1989, Phoenix International has grown to
approximately 2,000 employees, of whom more than 175 have either medical degrees
or PhD's and over 225 others have masters degrees.
This release contains "forward-looking" statements regarding future results and
events, including statements regarding expected future revenues, earnings and
growth rates and goals and operating plans of management. Phoenix'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 Phoenix to
win new business at the levels required; the cancellation or delay of contracts;
risks associated with the management of growth and the ability to attract and
retain employees; risks of integrating newly acquired businesses; competition;
delays in the consummation of the Chrysalis acquisition; failure to realize
fully expected costs savings from the Chrysalis acquisition; excess costs
relating to the downsizing of Chrysalis; any claims for patent infringement;
unanticipated costs in connection with Year 2000 conversion; the ability to
obtain future financing; adverse regulatory developments; foreign exchange rate
fluctuations; and uncertainty surrounding the Euro.
FOR MORE INFORMATION, PLEASE CONTACT DAVID MOSZKOWSKI, C.A.
Senior Vice-President and Chief Financial Officer
Phoenix International Life Sciences Inc.
Tel: (514) 333-0033 Fax: (514) 335-8351
E-mail: [email protected]
<PAGE>
Exhibit 99.2
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF INCOME
US GAAP
Unaudited
[In thousands of Canadian dollars except per share amounts]
<TABLE>
<CAPTION>
Second Quarter Six Months
1999 1998 1999 1998
$ $ $ $
- ---------------------------------- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROSS REVENUES 71,407 42,826 147,623 81,444
Reimbursed costs 15,001 7,249 30,503 11,106
------------------------------- ------------- ------------
NET REVENUES 56,406 35,577 117,120 70,338
Direct costs - net of
refundable tax credits 35,029 22,286 70,867 42,897
------------------------------- ------------- ------------
GROSS PROFIT 21,377 13,291 46,253 27,441
------------------------------- ------------- ------------
EXPENSES - NET OF
REFUNDABLE TAX CREDITS
Selling, general and
administrative 19,145 10,939 37,305 21,435
Internal research and
development 736 846 1,602 1,748
Interest expense 1,145 336 2,595 563
Amortization of goodwill 316 117 637 165
------------------------------- ------------- ------------
21,342 12,238 42,139 23,911
------------------------------- ------------- ------------
Other income 314 47 560 200
Merger costs - - 800 -
Non-refundable tax credits 750 200 2,250 800
------------------------------- ------------- ------------
Income before income taxes 1,099 1,300 6,124 4,530
Income taxes 999 622 3,333 1,538
------------------------------- ------------- ------------
NET INCOME FOR THE PERIOD 100 678 2,791 2,992
------------------------------- ------------- ------------
BASIC EARNINGS PER SHARE 0(CENT) 3(CENT) 10(CENT) 12(CENT)
------------------------------- ------------- ------------
WEIGHTED AVERAGE SHARES OUTSTANDING 26,064,315 25,132,642 26,055,705 25,132,150
------------------------------- ------------- ------------
BASIC EARNINGS PER SHARE BEFORE MERGER COSTS 0(CENT) 3(CENT) 13(CENT) 12(CENT)
------------------------------- ------------- ------------
</TABLE>
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF INCOME
CANADIAN GAAP
Second Quarter ended February 28
Unaudited
[In thousands of Canadian dollars except per share amounts]
<TABLE>
<CAPTION>
Second Quarter Six Months
1999 1998 1999 1998
$ $ $ $
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROSS REVENUES 71,407 39,744 145,570 75,280
Reimbursed costs 15,001 7,249 30,503 11,106
------------- ------------- ------------ -------------
NET REVENUES 56,406 32,495 115,067 64,174
Direct costs - net of
refundable tax credits 35,029 20,206 69,724 38,736
------------- ------------- ------------ -------------
GROSS PROFIT 21,377 12,289 45,343 25,438
------------- ------------- ------------ -------------
EXPENSES - NET OF REFUNDABLE
TAX CREDITS
Selling, general and
administrative 19,145 10,188 36,665 19,934
Internal research and
development 736 846 1,602 1,748
Goodwill Amortization 811 391 1,543 713
Interest expense 1,145 308 2,570 506
------------- ------------- ------------ -------------
21,837 11,733 42,380 22,901
------------- ------------- ------------ -------------
Other income 314 47 560 199
Nonrefundable tax credits 750 200 2,250 800
------------- ------------- ------------ -------------
Income (loss) before income taxes 604 803 5,773 3,536
Income taxes 999 608 3,314 1,510
------------- ------------- ------------ -------------
NET INCOME (LOSS) (395) 195 2,459 2,026
------------- ------------- ------------ -------------
BASIC INCOME (LOSS) PER SHARE (2(CENT)) 1(CENT) 10(CENT) 8(CENT)
------------- ------------- ------------ -------------
26,064,315 24,290,186 25,607,259 24,289,694
------------- ------------- ------------ -------------
</TABLE>
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
CANADIAN GAAP
For the six months ended February 28
Unaudited
[In thousands of Canadian dollars]
<TABLE>
<CAPTION>
1999 1998
$ $
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAINED EARNINGS, BEGINNING OF PERIOD 18,259 9,192
Net income 2,459 2,026
------------ -------------
RETAINED EARNINGS, END OF PERIOD 20,718 11,218
------------ -------------
</TABLE>
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED BALANCE SHEETS
CANADIAN GAAP
<TABLE>
<CAPTION>
Unaudited
[In thousands of Canadian dollars] February 28 August 31
1999 1998
$ $
- ----------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT
Cash 34,930 17,009
Marketable securities 2,550 2,000
Accounts receivable 43,378 47,712
Investment tax credits recoverable 4,822 3,362
Costs and estimated profit in excess of progress
billings on contracts in progress 28,264 27,847
Other 8,893 6,846
-------------- -----------
122,837 104,776
-------------- -----------
Capital assets 63,673 56,638
Other assets 126,241 110,056
-------------- -----------
312,751 271,470
-------------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness 5,741 831
Accounts payable and accrued liabilities 59,661 52,041
Progress billings in excess of costs and estimated
profit on contracts in progress 48,263 34,882
Current portion of long-term debt and capital lease
obligations 7,497 7,080
-------------- -----------
121,162 94,834
-------------- -----------
Long-term debt and capital lease obligations 41,200 42,440
Other deferred credits 3,761 4,243
-------------- -----------
166,123 141,517
SHAREHOLDERS' EQUITY
Capital stock 125,239 110,559
Retained earnings 20,718 18,259
Cumulative translation adjustment 671 1,135
-------------- -----------
146,628 129,953
-------------- -----------
312,751 271,470
-------------- -----------
</TABLE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FEBRUARY 28, 1999
1) THESE INTERIM FINANCIAL STATEMENTS ARE THE RESPONSIBILTY OF MANAGEMENT AND,
IN ITS OPINION, INCLUDE ALL THE ADJUSTMENTS, WHICH ARE OF A NORMAL
RECURRING NATURE, NECESSARY FOR A FAIR STATEMENT OF THE RESULTS FOR THE
INTERIM PERIOD PRESENTED.
2) DILUTED EARNINGS PER SHARE HAVE NOT BEEN PRESENTED AS THEY DO NOT DIFFER
MATERIALLY FROM BASIC EARNINGS PER SHARE.
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF
CASH FLOW
CANADIAN GAAP
<TABLE>
<CAPTION>
For the six months ended February 28,
Unaudited
[In thousands of Canadian dollars]
1999 1998
$ $
- -------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income 2,459 2,026
Items not affecting cash
Amortization 7,562 4,896
---------- -----------
10,021 6,922
---------- -----------
Net change in non-cash working capital items related
to operations 21,709 225
---------- -----------
CASH PROVIDED BY OPERATING ACTIVITIES 31,730 7,147
---------- -----------
INVESTING ACTIVITIES
Capital asset additions (10,989) (3,842)
Acquistion of IRG - (32,640)
Investment in Chrysalis (8,509) -
Proceeds on disposal of KCAS 3,672 -
Other assets (376) (94)
---------- -----------
CASH USED IN INVESTING ACTIVITIES (16,202) (36,576)
---------- -----------
FINANCING ACTIVITIES
Assumption of long-term debt 7,200 44,548
Repayment of long-term debt (8,028) (1,335)
Other deferred credits and long-term
liabilities (482) 204
Issue of shares 212 11
Increase (decrease) in bank indebtedness 4,910 (606)
Proceeds on sale (purchase) of marketable securities (550) 5,250
Repayment of debentures - (5,250)
---------- -----------
CASH PROVIDED BY FINANCING ACTIVITIES 3,262 42,822
---------- -----------
Effect of exchange rate changes on cash (869) -
INCREASE (DECREASE) IN CASH DURING THE PERIOD 17,921 13,393
Cash beginning of period 17,009 2,530
---------- -----------
CASH END OF PERIOD 34,930 15,923
---------- -----------
---------- -----------
</TABLE>
