<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 November 2, 1999
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
2350 COHEN STREET
SAINT LAURENT, 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: November 2, 1999 By: /s/ David Moszkowski
----------------- ----------------------------
David Moszkowski
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT 99.1
NEWS RELEASE
Phoenix International Announces Record Fourth Quarter & Fiscal 1999 Operating
Results, Excluding Special Charges
- Fiscal 1999 revenues increased 45%
- Fiscal 1999 net income before special charges and merger costs of 7%
- Company takes special charges totalling $11.5 million
MONTREAL, QUEBEC - OCTOBER 28, 1999 - Phoenix International Life Sciences Inc.
(NASDAQ: PHXI; TSE/ME: PHX), one of the world's leading contract research
organizations, today announced its fiscal 1999 fourth quarter and year end
financial results for the periods ended August 31, 1999. The company reported
record earnings before special charges taken in the fourth quarter. (ALL
FINANCIAL DATA REPORTED IN ACCORDANCE WITH US GAAP IN CANADIAN DOLLARS.)
During the fourth quarter, Phoenix International recognized restructuring
charges intended to improve operating efficiencies in both Europe and North
America. In addition, the company recognized a write-down of capital and other
long term assets associated with discontinued IT systems and its pharmaceutical
analysis laboratory in Montreal. These special charges amounted to $11.5 million
(pretax).
FINANCIAL RESULTS
Net revenues for the fourth quarter of fiscal 1999 increased 34% to $79.7
million, compared with $59.7 million for the corresponding period a year ago.
Net revenues for fiscal 1999 increased 45% to $263.3 million, compared with
$181.1 million in fiscal 1998.
Excluding one-time charges, net income for the fourth quarter of fiscal 1999
increased 11% to $5.9 million ($0.22 per share), compared with $5.3 million
($0.21 per share) in the fourth quarter of fiscal 1998. Net income for fiscal
1999 increased 7% to $12.8 million before merger costs ($0.48 per share),
compared with $11.9 million ($0.48 per share) in the prior year. After the
one-time charge, Phoenix incurred a net loss in the fourth quarter of $5.7
million and net income for the year of $0.4 million.
"Our results reflect continuous growth in early stage development and
establishment of a profitable clinical research franchise acquired over the past
two years," said Ian Lennox, CEO of Phoenix International. "Our priority is to
seamlessly align our operations in order to deliver the best level of service to
our global customers. The initiatives announced today are an important step
towards improving shareholder value."
<PAGE>
Mr. Lennox continued, "Our outlook for fiscal 2000 is encouraging. Phoenix
anticipates growth at or above the consensus CRO industry forecast of 20-25%
over the next few years. Our backlog, as of August 31, 1999, was is
excess of $200 million."
SEGMENTED RESULTS FISCAL YEAR
(Cdn $ in millions)
<TABLE>
<CAPTION>
REVENUE 1999 1998
<S> <C> <C>
Early Stage Development 159.0 116.0
Late Stage Development 104.3 65.1
Total 263.3 181.1
EBIT BEFORE ONE-TIME AND MERGER COSTS
Early Stage Development 12.5 11.4
Late Stage Development 5.5 4.3
Total 18.0 15.7
</TABLE>
ABOUT PHOENIX INTERNATIONAL
Phoenix International is one of the world's leading contract research
organizations. The Company provides 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 2,400 employees worldwide, of whom more
than 215 have either medical degrees or PhD's and over 240 others have masters
level education. Headquartered in Montreal, Quebec, Phoenix International has
operations throughout Europe and North America and research facilities in
Australia, Israel and South Africa. Phoenix International is on the world wide
web at www.pils.com.
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;
ANY CLAIMS FOR PATENT INFRINGEMENT; UNANTICIPATED COSTS IN CONNECTION WITH YEAR
2000CONVERSION; THE ABILITY TO OBTAIN FUTURE FINANCING; ADVERSE REGULATORY
DEVELOPMENTS; FOREIGN EXCHANGE RATE FLUCTUATIONS; AND UNCERTAINTY SURROUNDING
THE EURO.
<PAGE>
A summary of financial statements for the periods ended August 31, 1999, 1998
and 1997 are attached.
FOR MORE INFORMATION, PLEASE CONTACT:
ANALYST 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]
MEDIA CONTACT:
RICHARD GAREAU
Director of Communications
Phoenix International Life Sciences Inc.
Tel: (514) 333-0033 Fax: (514) 335-8351
E-mail: [email protected]
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED BALANCE SHEETS
CANADIAN GAAP
<TABLE>
<CAPTION>
Unaudited
[In thousands of Canadian dollars] August 31 August 31 August 31
1999 1998 1997
$ $ $
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT
Cash 40,907 17,009 2,530
Marketable securities 450 2,000 9,390
Accounts receivable 62,746 47,712 26,080
Investment tax credits recoverable 2,232 3,362 3,416
Costs and estimated profit in excess of progress
billings on contracts in progress 38,710 27,847 15,105
Other 8,114 6,846 1,060
--------------- ----------- ------------
153,159 104,776 57,581
--------------- ----------- ------------
Capital assets 99,404 56,638 46,745
Other assets 136,665 110,056 56,532
--------------- ----------- ------------
389,228 271,470 160,858
--------------- ----------- ------------
--------------- ----------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness 1,389 831 693
Accounts payable and accrued liabilities 82,120 52,041 22,467
Progress billings in excess of costs and estimated
profit on contracts in progress 62,180 34,882 11,002
Current portion of long-term debt and capital lease
obligations 15,700 7,080 6,921
--------------- ----------- ------------
161,389 94,834 41,083
--------------- ----------- ------------
Long-term debt and capital lease obligations 64,321 42,440 4,058
Other deferred credits 10,135 4,243 3,452
--------------- ----------- ------------
235,845 141,517 48,593
SHAREHOLDERS' EQUITY
Capital stock 138,065 110,559 103,073
Retained earnings 15,653 18,259 9,192
Cumulative translation adjustment (335) 1,135 -
--------------- ----------- ------------
153,383 129,953 112,265
--------------- ----------- ------------
389,228 271,470 160,858
--------------- ----------- ------------
--------------- ----------- ------------
</TABLE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 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.
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF INCOME
CANADIAN GAAP
Year ended August 31
Unaudited
[In thousands of Canadian dollars except per share amounts]
<TABLE>
<CAPTION>
Including Excluding
Restructurings Restructurings
1999 1999 1998 1997
$ $ $ $
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROSS REVENUES 324,049 324,049 218,360 86,736
Reimbursed costs 62,807 62,807 47,122 4,259
------------ ------------- ------------- -----------
NET REVENUES 261,242 261,242 171,238 82,477
Direct costs - net of
refundable tax credits 164,062 160,438 99,971 52,992
------------ ------------- ------------- -----------
GROSS PROFIT 97,180 100,804 71,267 29,485
------------ ------------- ------------- -----------
EXPENSES - NET OF REFUNDABLE
TAX CREDITS
Selling, general and
administrative 85,947 77,995 51,855 22,853
Internal research and
development 3,188 3,188 3,698 3,328
Amortization of goodwill 3,787 3,787 2,164 204
Writeoff of deferred start-up costs - - 932 -
Interest expense 4,833 4,833 3,323 659
------------ ------------- ------------- -----------
97,755 89,803 61,972 27,044
------------ ------------- ------------- -----------
Other income 1,583 1,583 1,396 347
Nonrefundable tax credits 3,250 3,250 5,000 2,400
------------ ------------- ------------- -----------
Income before income taxes 4,258 15,834 15,691 5,188
Income taxes 5,610 5,610 6,624 2,839
------------ ------------- ------------- -----------
NET INCOME (LOSS) (1,352) 10,224 9,067 2,349
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
BASIC INCOME (LOSS) PER SHARE (5(cent)) 39(cent) 37(cent) 12(cent)
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
WEIGHTED AVERAGE SHARES 26,197,115 26,197,115 24,478,111 19,911,199
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
OUTSTANDING
<CAPTION>
1999 1998
$ $
- ---------------------------------------------------------------------------------------
<S> <C> <C>
18,259 9,192
10,224 9,067
(1,253) -
------------- -------------
27,230 18,259
------------- -------------
------------- -------------
</TABLE>
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF INCOME
US GAAP
<TABLE>
<CAPTION>
Year ended August 31
Unaudited
[In thousands of Canadian dollars except per share amounts]
Including Excluding
Restructurings Restructurings
1999 1999 1998 1997
$ $ $ $
- ----------------------------------------------------------------------------------------------------- -------------
<S> <C> <C> <C> <C>
GROSS REVENUES 326,101 326,101 228,226 125,618
Reimbursed costs 62,807 62,807 47,122 9,567
--------------- ------------- -------------- -------------
NET REVENUES 263,294 263,294 181,104 116,051
Direct costs - net of
refundable tax credits 165,205 161,581 106,503 71,515
--------------- ------------- -------------- -------------
GROSS PROFIT 98,089 101,713 74,601 44,536
--------------- ------------- -------------- -------------
EXPENSES - NET OF REFUNDABLE
TAX CREDITS
Selling, general and
administrative 86,588 78,636 54,303 35,259
Internal research and
development 3,188 3,188 3,698 3,328
Amortization of goodwill 1,896 1,896 941 404
Interest expense 4,858 4,858 3,419 834
--------------- ------------- -------------- -------------
96,530 88,578 62,361 39,825
--------------- ------------- -------------- -------------
Other income 1,583 1,583 1,399 1,239
Nonrefundable tax credits 3,250 3,250 5,000 2,400
--------------- ------------- -------------- -------------
Income before income taxes 6,392 17,968 18,639 8,350
Income taxes 5,178 5,178 6,668 3,871
--------------- ------------- -------------- -------------
NET INCOME (LOSS) BEFORE MERGER COSTS 1,214 12,790 11,971 4,479
--------------- ------------- -------------- -------------
--------------- ------------- -------------- -------------
Merger Costs 800 800 368 2,464
--------------- ------------- -------------- -------------
NET INCOME (LOSS) 414 11,990 11,603 2,015
--------------- ------------- -------------- -------------
--------------- ------------- -------------- -------------
Weighted Average Shares Outsanding 26,419,494 26,419,494 25,145,350 24,794,916
BASIC INCOME (LOSS) PER SHARE BEFORE MERGER COSTS 5(cent) 48(cent) 48(cent) 18(cent)
--------------- ------------- -------------- -------------
--------------- ------------- -------------- -------------
</TABLE>
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
CANADIAN GAAP
<TABLE>
<CAPTION>
For the year ended August 31
Unaudited
[In thousands of Canadian dollars]
1999 1998 1997
$ $ $
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAINED EARNINGS, BEGINNING OF PERIOD 18,259 9,192 6,843
Net income (1,352) 9,067 2,349
Share issue costs (1,254) - -
----------- ----------- ------------
RETAINED EARNINGS, END OF PERIOD 15,653 18,259 9,192
----------- ----------- -------------
----------- ----------- -------------
</TABLE>
<PAGE>
PHOENIX INTERNATIONAL LIFE SCIENCES INC.
<TABLE>
<CAPTION>
SUMMARY OF SELECTED FINANCIAL DATA
In Canadian GAAP, unless otherwise noted
- -------------------------------------------------------------------------------------------------------------
(In millions of Canadian dollars
except per share amounts) 1999 1998 1997
$ $ $
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS
For Years Ended August 31
Gross revenues 324.0 218.4 86.7
Net revenues 261.2 171.2 82.5
Gross profit 100.8 71.3 29.5
Income (loss) before income taxes 4.3 15.7 5.2
Net Income (loss) (1.4) 9.1 2.3
Net Income before restructuring charges 10.2 9.1 2.3
Net Income US GAAP 0.4 11.5 1.7
Net Income US GAAP before restructuring charges 12.0 11.6 1.7
- -------------------------------------------------------------------------------------------------------------
FINANCIAL POSITION
As at August 31
Shareholders' equity 153.4 130.0 112.3
Total Assets 389.2 271.5 160.9
- -------------------------------------------------------------------------------------------------------------
PER SHARE (DOLLARS)
For Years Ended August 31
Basic earnings per share (0.05)(3) 0.37 (2) 0.12 (1)
Basic earnings per share before restructuring charges 0.39 (3) 0.37 (2) 0.12 (2)
Basic earnings per share US GAAP 0.02 (4) 0.47 (4) 0.07 (4)
Basic earnings per share US GAAP before merger and restructing charges 0.48 (4) 0.48 (4) 0.07 (4)
Shareholders' equity 5.66 (3) 5.31 (2) 5.64 (1)
KEY RATIOS
For Years Ended August 31
Gross revenues/fixed assets 3.26 3.86 1.86
Current ratio 0.95 1.10 1.40
Long-term debt/equity 0.42 0.33 0.04
- -------------------------------------------------------------------------------------------------------------
OTHER STATISTICS
For Years Ended August 31
EBITDA before restructuring charges 35.5 28.5 13.1
EBITDA 24.0 28.5 13.1
Capital expenditures
(net of investment tax credits) 33.4 (5) 12.4 6.2
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Based on weighted average number of shares outstanding at
August 31, 1997 : 19,911,199
(2) Based on weighted average number of shares outstanding at
August 31, 1998 : 24,478,111
(3) Based on weighted average number of shares outstanding at
August 31, 1999 : 26,197,115
(4) Based on fully diluted number of shares for the respective
periods under US GAAP
(5) Includes $11.4 million in respect of the new laboratory building
under construction.
