CINCINNATI, Nov. 4 /PRNewswire-FirstCall/ -- Kendle , a leading, global full-service clinical research organization, today reported solid net income of $8.8 million or $0.59 per diluted share for the third quarter of 2009, primarily the result of strong execution of its cost control initiatives, compared with net income of $9.4 million or $0.62 per diluted share for the third quarter of 2008. On a pro forma basis, excluding the additional non-cash interest and restructuring charge, net income per diluted share for the third quarter of 2009 was $0.71 compared with $0.73 per diluted share for the third quarter of 2008.
Net revenues for the third quarter ended Sept. 30, 2009, were $104.6 million, down slightly from the second quarter. On a constant currency basis this is $111.9 million compared with $124.8 million for the same period of the prior year.
New business awards for the third quarter of 2009 totaled $137.2 million, up from $132 million in the second quarter of 2009. Gross book to bill for the third quarter was a solid 1.3 to 1.0. Contract cancellations for the quarter were $53.8 million or 6.1 percent of the Company’s backlog at June 30, 2009 and representing a net book-to-bill of 0.8 to 1.0. Total business authorizations amounted to $846.0 million at Sept. 30, 2009.
Open Market Repurchase
Nine-Month Results
Operating income for the first nine months of 2009 was $30.6 million or 9.6 percent of net service revenues. On a constant currency basis and excluding the restructuring charge taken in the second quarter of 2009, operating income is strong at $46.1 million or 13.0 percent of net revenues compared with $45.9 million or 12.5 percent of net revenues for same period of the prior year. The previously discussed insurance recovery and related item had a net positive impact on the year-to-date operating margin of 1.0 percent of net revenues.
Cash flow from operations for the first nine months of 2009 was strong at $50.0 million compared with $3.5 million for the same period of the prior year. Capital expenditures for the nine month period totaled $14.1 million versus $18.1 million for the same period last year.
Kendle will host its Third Quarter 2009 conference call on Nov. 5, 2009, at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed at www.kendle.com. A replay of the Webcast will be available at www.kendle.com shortly after the call for on-demand replay through 5 p.m. Eastern Time on Dec. 4, 2009.
Kendle International Inc. is a leading global clinical research organization providing the full range of early- to late-stage clinical development services for the world’s biopharmaceutical industry. Our focus is on innovative solutions that reduce cycle times for our customers and accelerate the delivery of life-enhancing drugs to market for the benefit of patients worldwide. As one of the world’s largest global providers of Phase I-IV services, we offer experience spanning more than 100 countries, along with industry-leading patient access and retention capabilities and broad therapeutic expertise, to meet our customers’ clinical development challenges.
Use of Non-GAAP Financial Measures
Forward-Looking Statements
Kendle International Inc.
