PDI, Inc. Reports 2012 First Quarter Financial Results

PARSIPPANY, N.J., May 14, 2012 /PRNewswire/ -- PDI, Inc. (Nasdaq: PDII), today reported financial and operational results for the first quarter ended March 31, 2012. Summary financial and operating highlights include:

  • First quarter 2012 operating loss from continuing operations of $0.2 million improved 84% compared to the first quarter of 2011.
  • First quarter 2012 adjusted EBITDA was $0.7 million, compared to $0.1 million in the same period of 2011.
  • Announced new and renewal contracts totaling $16 million in revenues, approximately $13 million of which is expected to be recognized during 2012.






Condensed Summary Statements of Continuing Operations










1st Quarter Ended




March 31,*




2012


2011







Revenue, net


$ 31.7


$ 44.3







Gross profit


7.4


8.2







Operating expenses:





Compensation expense

4.6


5.3

Other SG&A


3.0


4.3

Total operating expenses

7.6


9.6







Operating loss


$ (0.2)


$ (1.4)







Other expense, net


-


(0.1)

Provision (benefit) for income tax

0.1


(1.0)

Loss from continuing operations

$ (0.3)


$ (0.4)







Diluted loss per share from continuing operations

$ (0.02)


$ (0.03)

*Unaudited











CEO Comments

"While first quarter 2012 revenues were below those of the same period in 2011, due primarily to the anticipated expiration of certain contracts, gross profit margins improved from 18% in 2011 to 23% in 2012, and expenses were reduced significantly due to continued cost control measures," stated Nancy Lurker, PDI's chief executive officer. "On the revenue front, we are pleased to note that, during the quarter, we began to see tangible conversion of our pipeline opportunities. This was reflected in our recent announcement of the signing of several new and renewal contracts. Together, these contracts are expected to generate total revenues of $16 million over the life of the contracts, and approximately $13 million in 2012. These business wins cover a range of promotional and communications agreements under which PDI will variously provide promotional and support services through the company's established relationship team, dedicated sales teams, clinical educators, and/or talent acquisition and training services. These latest contract wins and renewals are indicative of PDI's strong market position and reflect an upswing in market activity and momentum. Our new business pipeline remains robust and we are confident we will win additional contracts moving forward.

"Looking ahead, we are optimistic about our potential for growth and expect 2012 to be a year of continued execution on all fronts. The initiatives we have put into place have put the company on solid footing to achieve long-term profitability. As such, we remain highly focused on cost containment efforts, which have allowed us to drive down our cost basis, and improve our gross margin during the first quarter of this year. Additionally, as noted above, our core business and pipeline are strong, which we anticipate will lead to additional key contract wins and renewals over the remainder of the year. Meanwhile, we also continue to see interest and growth opportunities for Interpace BioPharma, which offers full product commercialization services. As such, we are committed to executing on our accelerated growth strategy for this important business unit.

"Finally, as previously announced, Frank Ryan, who has been on our Board for close to 10 years, will be retiring effective May 28. I would like to thank Frank for his many years of valuable service and important contributions to PDI."

Business Review Continuing Operations

Revenue- For the first quarter of 2012, revenue of $31.7 million was 28% lower than the first quarter of 2011. The overall decrease is primarily attributable to lower Sales Services revenue.

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