SADDLE RIVER, N.J., Nov. 3 /PRNewswire-FirstCall/ -- PDI, Inc. a healthcare sales and marketing company, today announced its third quarter 2004 financial results.
Third Quarter Results
Revenue for the quarter ended September 30, 2004 was $92.5 million, 2.1% lower than revenue of $94.6 million for the quarter ended September 30, 2003. Operating income was $9.0 million for the quarter ended September 30, 2004, an increase of 38.1% compared to operating income of $6.5 million for the quarter ended September 30, 2003. Net income was $5.5 million for the quarter ended September 30, 2004, compared to net income of $4.2 million in the quarter ended September 30, 2003. Diluted net income per share for the quarter ended September 30, 2004 was $0.37 versus diluted net income per share of $0.29 for the quarter ended September 30, 2003.
Year-to-Date Results
Total revenue for the nine months ended September 30, 2004 was $276.6 million, 12.8% higher than total revenue of $245.3 million for the nine months ended September 30, 2003. Operating income was $27.1 million for the nine months ended September 30, 2004 an increase of 122.9% compared to operating income of $12.1 million for the nine months ended September 30, 2003. Net income was $16.5 million for the nine months ended September 30, 2004 versus net income of $7.8 million for the nine months ended September 30, 2003. Diluted net income per share was $1.11 for the nine months ended September 30, 2004 compared to diluted net income per share of $0.54 for the nine months ended September 30, 2003.
The Company raised its 2004 EPS estimates to $1.40 to $1.45 from $1.25 to $1.35.
Charles T. Saldarini, Vice Chairman and CEO, said, “I am pleased with the way PDI is performing. The steps we have taken to focus on our sales and marketing services and to maintain cost controls have enhanced our performance and brought consistency to our financial results. Our Sales and Marketing Services Group in particular performed well as its revenue in the first nine months of 2004 is up 30.8% versus the first nine months of 2003. We believe that the pharmaceutical industry is looking for ways to be more efficient and flexible. Outsourcing more of their sales and marketing efforts is one way to do that. As an industry leader with a proven track record of results, PDI is structured to provide services to pharmaceutical manufacturers that help them to meet the challenges they face today.”
Regarding the 2005 outlook, Mr. Saldarini continued, “We are finalizing our 2005 forecast and will be providing 2005 EPS estimates early in December.”
Webcast Conference Call
PDI will conduct a live webcast of its Earnings Release Briefing at 9:00 AM EDT on Thursday, November 4, 2004. The live webcast of the event will be accessible through PDI’s website, http://www.pdi-inc.com/ and will be archived on the website for future on-demand replay. For those without internet access, the call can be accessed by dialing 1-877-423-4030 within the US and 1-706-634-1929 internationally and asking for the PDI Earnings Release Conference Call. The call will be archived for two weeks and can be accessed by calling 1-800-642-1687 or 1-706-645-9291 and entering the conference ID number 1462871.
About PDI
PDI, Inc. is a leading provider of outsourced sales and marketing services to the biopharmaceutical and medical device and diagnostics industries. PDI’s comprehensive set of next-generation solutions is designed to increase its clients’ strategic flexibility and enhance their efficiency and profitability. Headquartered in Saddle River, NJ, PDI also has offices in Pennsylvania and Illinois.
PDI’s sales and marketing services include dedicated, shared, clinical and combination sales teams; marketing research and consulting; medical education and communications; talent recruitment; and integrated commercial solutions from pre-launch through patent-expiration. The company’s experience extends across multiple therapeutic categories and includes office and hospital-based initiatives. PDI’s global presence is maintained through a strategic partnership with In2Focus, a leading U.K. provider of outsourced sales services.
PDI’s commitment is to deliver innovative solutions, excellent execution and superior results to its clients. Through strategic partnership and client-driven innovation, PDI maintains some of the longest sales and marketing relationships in the industry. Recognized as an industry pioneer, PDI continues to innovate today as a thought-starter for the outsourcing of sales and marketing services.
For more information, visit the Company’s website at http://www.pdi-inc.com/.
Forward-Looking Statement
This press release contains forward-looking statements regarding future events and financial performance. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond PDI’s control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, changes in our operating expenses, adverse patent rulings, FDA, legal or accounting developments, competitive pressures, failure to meet performance benchmarks in significant contracts, changes in customer and market requirements and standards, and the risk factors detailed from time to time in PDI’s periodic filings with the Securities and Exchange Commission, including without limitation, PDI’s Annual Report on Form 10-K/A for the year ended December 31, 2003, and PDI’s periodic reports on Forms 10-Q/A, 10-Q and 8-K filed with the Securities and Exchange Commission since January 1, 2004. The forward looking-statements in this press release are based upon management’s reasonable belief as of the date hereof. PDI undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
PDI, Inc. Consolidated Balance Sheets (in thousands, except share data) (unaudited) September 30, December 31 2004 2003 ASSETS Current assets: Cash and cash equivalents. $77,284 $113,288 Short-term investments 29,032 1,344 Inventory, net -- 43 Accounts receivable, net of allowance for doubtful accounts of $349 and $749 as of September 30, 2004 and December 31, 2003, respectively 22,932 40,885 Unbilled costs and accrued profits on contracts in progress 2,442 4,041 Deferred training and other program costs 1,656 1,643 Other current assets 10,836 8,847 Deferred tax asset 3,900 11,053 Total current assets. 148,082 181,144 Net property and equipment 18,369 14,494 Deferred tax asset 6,797 7,304 Goodwill 21,759 11,132 Other intangible assets 20,021 1,648 Other long-term assets 3,833 3,901 Total assets $218,861 $219,623 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $3,394 $8,689 Accrued returns 4,602 22,811 Accrued incentives 17,149 20,486 Accrued salaries and wages 8,897 9,031 Unearned contract revenue 9,809 3,604 Restructuring accruals 321 744 Income taxes and other accrued expenses 15,422 15,770 Total current liabilities 59,594 81,135 Total long-term liabilities -- -- Total liabilities 59,594 81,135 Stockholders’ equity: Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding -- -- Common stock, $.01 par value, 100,000,000 shares authorized: shares issued and outstanding, September 30, 2004- 14,625,537, and December 31, 2003 - 14,387,126; 161,115 and 136,178 restricted shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively 148 145 Additional paid-in capital 115,492 109,531 Retained earnings 45,990 29,505 Accumulated other comprehensive income 47 25 Unamortized compensation costs (2,300) (608) Treasury stock, at cost: 5,000 shares (110) (110) Total stockholders’ equity 159,267 138,488 Total liabilities & stockholders’ equity $218,861 $219,623 PDI, Inc. Consolidated Statements Of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 (restated) (restated) Revenue Service $92,525 $94,470 $277,666 $245,111 Product, net (3) 81 (1,034) 197 Total revenue 92,522 94,551 276,632 245,308 Cost of goods and services Program expenses (including related party amounts of $0 and $653 for the quarters ended September 30, 2004 and 2003, respectively and $180 and $1,287 for the nine months ended September 30, 2004 and 2003, respectively) 68,127 70,085 203,670 182,227 Cost of goods sold 10 952 244 1,097 Total cost of goods and services 68,137 71,037 203,914 183,324 Gross profit 24,385 23,514 72,718 61,984 Compensation expense 8,409 9,297 26,549 27,294 Other selling, general and administrative expenses 6,941 7,676 19,089 20,714 Restructuring and other related expenses -- -- -- (270) Litigation settlement -- -- -- 2,100 Total operating expenses 15,350 16,973 45,638 49,838 Operating income 9,035 6,541 27,080 12,146 Other income, net 231 246 860 741 Income before provision for taxes 9,266 6,787 27,940 12,887 Provision for income taxes 3,799 2,605 11,455 5,115 Net income $5,467 $4,182 $16,485 $7,772 Basic net income per share $0.37 $0.29 $1.13 $0.55 Diluted net income per share $0.37 $0.29 $1.11 $0.54 Basic weighted average number of shares outstanding 14,621 14,252 14,538 14,202 Diluted weighted average number of shares outstanding 14,933 14,543 14,873 14,349
PDI, Inc.
CONTACT: Stephen P. Cotugno, Executive Vice President-CorporateDevelopment of PDI, Inc., +1-201-574-8617
Web site: http://www.pdi-inc.com/