Kendle Announces Fourth Quarter and Full-Year 2008 Results and 2009 Guidance
– Net service revenues for 2008 increased 19 percent to
– Full-year earnings per share (EPS) of
– Total business authorizations of
– Full-year net book-to-bill ratio of 1.4 to 1.0
Fourth Quarter Results
Income from operations for the three months ended
Net income for the fourth quarter ended
Cash flow from operations for the fourth quarter 2008 was
Full-Year 2008 Results
Income from operations for the year ended
Net income for the year ended
Capital expenditures for 2008 totaled
New Business Awards
New business awards totaled
In January of this year, the company entered into a transaction to unwind part of the cross-currency hedge associated with intercompany notes denominated in British pounds. This transaction resulted in a cash gain of about
Most of this gain has been recognized in prior years through mark-to-market accounting and, therefore, will not be included in 2009 results. The tax liability, however, has not been previously recognized and will affect income in 2009. The effect of this additional income tax will reduce 2009 EPS by
Also affecting projected results for 2009 is the strengthening of the US dollar. The strong US dollar has had a significant impact on operating results for the last 2 quarters of 2008. Our projections anticipate that the dollar will remain strong throughout 2009, which negatively impacts 2009 projected results when compared to prior years.
For the full year 2009, Kendle is projecting net service revenues in the range of
Fourth Quarter and Year-end 2008 Conference Call and Webcast Details
Kendle will host its Fourth Quarter and Year-end 2008 conference call
Kendle International Inc. (Nasdaq: KNDL) 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 fastest-growing 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.
Kendle was recognized by FORTUNE magazine as one of the 100 fastest- growing companies in
Additional information and investor kits are available upon request from Kendle, 441 Vine Street, Suite 500,
Certain statements and information contained in this press release may be deemed to be forward-looking statements under federal securities laws and the provisions of the Private Securities Litigation Reform Act of 1995 and Kendle intends that such forward-looking statements be subject to the safe-harbor created thereby. All such forward-looking statements, including the statements contained herein regarding anticipated trends in the Company’s business, are based largely on management’s expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, (a) competitive factors and industry consolidation, (b) outsourcing trends in the pharmaceutical and biotechnology industries, (c) the Company’s ability to manage growth and continue to attract and retain qualified personnel (d) the Company’s ability to complete additional acquisitions and to integrate newly acquired businesses, (e) the Company’s ability to penetrate new markets, (f) the fixed price nature of contracts and cost overruns, (g) the loss, cancellation or delay of contracts or amendments thereto, (h) the Company’s the ability to maintain existing customer relationships or enter into new ones, (i) the Company’s sales cycle, (j) the Company’s ability to obtain financing on terms acceptable to the Company, (k) the effects of exchange rate fluctuations, (l) the risks related to the Company’s non-US operations and (m) other risks as detailed from time to time in Kendle’s SEC reports, including its Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Annual Reports on Form 10-K. In addition, no assurance can be given that the Company will be able to realize the net service revenues included in backlog and verbal awards. The Company believes that its aggregate backlog and verbal awards are not necessarily a meaningful indicator of future results. All information in this press release is current as of Feb. 25, 2009. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Kendle International Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2008 2007 2008 2007 Net service revenues $109,151 $104,273 $475,092 $397,584 Reimbursable out-of-pocket revenues 52,143 50,370 203,489 171,234 Total revenues 161,294 154,643 678,581 568,818 Costs and expenses: Direct costs 60,673 54,099 247,436 204,161 Reimbursable out-of-pocket costs 52,143 50,370 203,489 171,234 Selling, general and administrative expenses 33,568 31,173 155,577 125,744 Depreciation and amortization 4,008 3,800 15,253 14,865 Total costs and expenses 150,392 139,442 621,755 516,004 Income from operations 10,902 15,201 56,826 52,814 Other income (expense): Interest expense (2,205) (2,882) (9,637) (14,870) Interest income 277 358 760 1,466 Write-off of deferred financing costs - - - (4,152) Other (1,228) (428) (2,043) (4,816) Total other income (expense) (3,156) (2,952) (10,920) (22,372) Income before income taxes 7,746 12,249 45,906 30,442 Income taxes 2,784 5,883 16,509 11,755 Net income $4,962 $6,366 $29,397 $18,687 Income per share data: Basic: Net income per share $0.33 $0.44 $1.99 $1.29 Weighted average shares outstanding 14,837 14,621 14,751 14,520 Diluted: Net income per share $0.33 $0.43 $1.96 $1.26 Weighted average shares outstanding 15,000 14,944 14,993 14,889
Kendle International Inc. Selected Balance Sheet and Other Information (In thousands) (Unaudited) Selected Balance Sheet Information: December 31, 2008 December 31, 2007 Cash, cash equivalents and marketable securities (including restricted cash) $36,053 $46,356 Receivables, net of advance billings 63,410 57,148 Borrowings under revolving credit facility - - Convertible notes 200,000 200,000 Net Services Revenues by Geographic Region: Three Months Ended Year Ended December 31 December 31 2008 2007 2008 2007 North America 52% 50% 48% 50% Europe 36% 40% 40% 42% Latin America 9% 6% 8% 5% Asia-Pacific 3% 4% 4% 3% Segment Information: Three Months Ended Twelve Months Ended December 31 December 31 Early Stage: Net Service Revenues $9,699 $5,712 $35,199 $21,373 Operating Income 2,301 1,474 6,177 2,941 Late Stage: Net Service Revenues $98,524 $94,612 $430,317 $366,379 Operating Income 25,177 21,674 105,140 85,971 Support and Other: Net Service Revenues $928 $3,949 $9,576 $9,832 Operating Income (16,576) (7,947) (54,491) (36,098)
SOURCE Kendle International Inc.