BOSTON, June 24, 2014 /PRNewswire/ -- In conjunction with its Investor Day being held tomorrow, PAREXEL International Corporation (Nasdaq: PRXL) has reconfirmed its forward-looking guidance for the fourth quarter of Fiscal Year 2014 (ending June 30, 2014), and for all of Fiscal Year 2014. This guidance was previously issued in a press release on April 29, 2014. The Company also issued guidance for Fiscal Year 2015 for the first time. The guidance takes into account a number of factors, including recent foreign currency exchange rates, the Company's updated overall outlook, and the estimated impact of the Accelerated Share Repurchase Program (ASR)(as announced on June 16, 2014) on projected Fiscal Year 2015 earnings per share.
The Company's guidance is:
Guidance Issued 6/24/14
Guidance Issued 4/29/14
Q4 FY 2014 Revenue
$507 - $513 million
$507 - $513 million
Q4 FY 2014 GAAP EPS
$0.59 - $0.63
$0.59 - $0.63
FY 2014 Revenue
$1.936 - $1.942 billion
$1.936 - $1.942 billion
FY 2014 GAAP EPS
$2.13 - $2.17
$2.13 - $2.17
FY 2014 Non-GAAP EPS
$2.11 - $2.15
$2.11 - $2.15
FY 2015 Revenue
$2.120 - $2.150 billion
FY 2015 GAAP EPS
$2.51 - $2.75
The impact of the ASR program on Q4 and full year FY 2014 guidance is expected to be immaterial. For Fiscal Year 2015, guidance assumes an estimated benefit of $0.08 to $0.12 from the ASR program.
Adjusted diluted EPS guidance for Fiscal Year 2014 excludes the impact of certain items that were recorded in the first, second, and third quarters of Fiscal Year 2014, as detailed in a chart contained within this release. This information is also posted in the Investor Relations section of PAREXEL.com under Financial Information/2014 Quarterly Results/Q3 Additional Financials.
Those who wish to listen to the Company's Investor Day presentations on June 25, 2014 and to view the accompanying slides should log onto the Company's website at www.PAREXEL.com and click on the PAREXEL International 2014 Investor Day link under the "Upcoming Events" section of the Investors homepage at least 15 minutes prior to the event's broadcast which will start at 8:30 a.m. ET. Users should follow the instructions provided to assure that the necessary audio applications are downloaded and installed. In addition, an archived version of the event's presentations will be located in the Investor Relations section of PAREXEL's website.
In addition to the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. The Company believes that presenting the non-GAAP financial measures contained in this press release assists investors and others in gaining a better understanding of its core operating results and future prospects, especially when comparing such results to previous periods or forecasted guidance, because such measures exclude items that are outside of the Company's normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. Management uses non-GAAP financial measures, in addition to the measures prepared in accordance with GAAP, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods and to the performance of its competitors for the same reasons stated above. Such measures are also used by management in its financial and operating decision-making. Non-GAAP financial measures are not meant to be considered superior to or a substitute for the Company's results of operations prepared in accordance with GAAP.
About PAREXEL International
PAREXEL International Corporation is a leading global biopharmaceutical services organization, providing a broad range of knowledge-based contract research, consulting, medical communications, and technology solutions and services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. PAREXEL Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 75 locations in 50 countries around the world, and has approximately 15,335 employees. For more information about PAREXEL International visit www.PAREXEL.com.
PAREXEL, PAREXEL Informatics, Perceptive, Perceptive MyTrials, and "Your Journey. Our Mission." are trademarks or registered trademarks of PAREXEL International Corporation or its affiliates.
This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," "estimates," "projects," "will," "would," "could," "should," "targets," and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from recent and anticipated restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company's recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions, and to integrate newly acquired businesses including the recent acquisitions of LIQUENT, Inc. and HERON Group Ltd., Inc., or enter into new lines of business; the impact on the Company's business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission (SEC) on May 2, 2014, which "Risk Factors" discussion is incorporated by reference in this press release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release.
PAREXEL International Corporation
Reconciliation of Non-GAAP Measures
Certain Line Items
Guidance for the Twelve Months Ending
(in thousands, except per share data)
June 30, 2014
Selling, general and administrative
Income from operations
Other expense, net
Income before income taxes
Provision for income taxes
Diluted earnings per common share
$2.13 - 2.17
$2.11 - 2.15
Note: The sum quarterly Diluted EPS amounts do not equal year-to-date Diluted EPS amounts due to rounding
(a) Adjustments include $2.3 million of legal settlements and acquisition and integration related charges, partially offset by $0.1 million gain related to the revaluation of HERON earn-out contingent consideration liability
(b) Decrease in facility-related charges associated with restructuring plans
(c) Recovery from final bankruptcy settlement on previously impaired investment
(d) Tax effect on non-GAAP adjustments, and a $3.0 million adjustment due to reserve release
Ingo Bank, Senior Vice President and Chief Financial Officer
Jill Baker, Corporate Vice President of Investor Relations
SOURCE PAREXEL International Corporation