-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SGW8WjDXMIT10zskQLoNDNm6UvOei0KoVD3VHNCfCoyKD6AsB6mqMJA3Xd5lvd0q hHH2CHeUWxMi0/jdOpqBoA== 0001005477-01-500700.txt : 20010816 0001005477-01-500700.hdr.sgml : 20010816 ACCESSION NUMBER: 0001005477-01-500700 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010813 ITEM INFORMATION: Other events FILED AS OF DATE: 20010815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROFESSIONAL DETAILING INC CENTRAL INDEX KEY: 0001054102 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 223562897 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-46321 FILM NUMBER: 1715144 BUSINESS ADDRESS: STREET 1: 10 MOUNTAINVIEW ROAD CITY: UPPER SADDLE RIVER STATE: NJ ZIP: 07458 BUSINESS PHONE: 2012588450 MAIL ADDRESS: STREET 1: 10 MOUNTAINVIEW ROAD CITY: UPPER SADDLE RIVER STATE: NJ ZIP: 07438 8-K 1 d01-34303.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): August 13, 2001 --------------- PROFESSIONAL DETAILING, INC. - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) DELAWARE 0-24249 22-2919486 - ---------------------------- ------------------------ -------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 10 Mountainview Road, Upper Saddle River, NJ 07458 - ------------------------ ------------------------- (Address of principal (Zip Code) executive office) (201) 258-8450 - -------------------------------------------------------------------------------- Registrant's telephone number, including area code: N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events On August 13, 2001 the Registrant issued the following press release: "PDI REPORTS SECOND QUARTER 2001 FINANCIAL RESULTS Revenue of $143.9 million; Operating Income of $6.4 million; and Earnings of $0.31 per share Upper Saddle River, New Jersey (Monday, August 13, 2001). Professional Detailing, Inc. (Nasdaq:PDII) today announced revenue, operating income, net income and net income per share for the quarter and six months ended June 30, 2001. Quarterly Results Net total revenue for the quarter ended June 30, 2001 was $143.9 million, an increase of 89.9% over net total revenue of $75.8 million for the quarter ended June 30, 2000. Net product revenue was $79.2 million and was zero in the comparable prior year period. Net service revenue was $64.8 million, 14.5% less than net service revenue of $75.8 million for the quarter ended June 30, 2000. Operating income was $6.4 million or 19.2% less than operating income of $7.9 million for the quarter ended June 30, 2000. Net income was $4.4 million, 8.3% less than net income of $4.8 million for the quarter ended June 30, 2000. Diluted net income per share for the quarter ended June 30, 2001 was $0.31 versus $0.35 for the quarter ended June 30, 2000. Year-to-Date Results Net total revenue for the six months ended June 30, 2001 was $317.0 million, an increase of 115.5% over net total revenue of $147.1 million for the six months ended June 30, 2000. Net product revenue was $174.1 million and was zero in the comparable prior year period. Net service revenue was $142.9 million versus $147.1 million for the six months ended June 30, 2000. Operating income was $23.1 million versus $16.7 million for the six months ended June 30, 2000. Net income was $15.3 million versus $10.5 million for the six months ended June 30, 2000. Diluted net income per share of $1.08 for the six months ended June 30, 2001 was 38.5% higher than diluted net income per share of $0.78 for the six months ended June 30, 2000. Charles T. Saldarini, Chief Executive Officer of Professional Detailing, Inc. commented, "We are very pleased with our results for the second quarter which reflects the current dynamics of the fee-for-service industry and the increasing emphasis and investments that we are placing on our current co-promotion and commercialization agreements." Recent Developments On August 8, 2001, Bayer Corporation announced that it was voluntarily withdrawing Baycol from the U.S. market. PDI confirmed that it has an agreement with Bayer, pursuant to which its sales force markets three different products on Bayer's behalf, including Baycol. Based upon PDI's most recent discussions with Bayer, Bayer has informed PDI that it has no present intention of modifying its contract 2 with PDI at this time, although Bayer has a contractual right to terminate the contract upon 75 days written notice. Webcast PDI will conduct a live webcast of its Earnings Release Briefing at 9:00 AM EDT on August 14, 2001. The live webcast of the event will be accessible through PDI's website, www.pdi-inc.com and will be archived on the website for future on-demand replay. Company Background & Services Professional Detailing, Inc. is a leading provider of sales and marketing services to the United States pharmaceutical industry. We have achieved our leadership position based on more than 15 years of designing and executing customized sales and marketing programs for many of the pharmaceutical industry's largest companies and have long standing relationships with our major clients. The Company provides several principal services: Dedicated Contract Sales Services, in which programs are customized to client specifications; Syndicated Contract Sales Services, provided through the Company's ProtoCall unit, enabling clients to tap into an existing, large-scale sales team for specific detail positions and periods; LifeCycle X-Tension Services, provides sales, marketing and distribution services for companies facing portfolio optimization challenges; PDI Product Commercialization, provides commercial launch services for emerging and biotechnology companies to independently launch new brands; PDI Co-promotion, provides co-promotion opportunities through PDI's existing sales teams; Medical Education and Communication Services, provided through the Company's TVG unit, in which clients can access continuing medical education, Sales Force Tactical Briefings(TM) and peer to peer promotion; and Marketing Research and Consulting Services, provided through the Company's TVG unit, enabling clients to study qualitative and quantitative aspects of brand performance on a pre-launch, launch and continuing basis. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this release which look forward in time involve risks and uncertainties that may cause actual results or achievements to materially differ from those indicated by the forward-looking statements. These forward-looking statements include any statements relating to increased demand for the Company's services, expansion of the Company's business as well as any other statements which are not solely historical. The Company's plans and objectives are based on 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 the control of the Company. Therefore, there can be no assurance that the forward-looking statements will prove to be accurate. The Company's documents filed with the SEC identify important factors that may cause the actual results to differ materially from those indicated by the forward-looking statements. 3 PROFESSIONAL DETAILING, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
June 30, December 31, 2001 2000 ----------- (unaudited) ASSETS Current assets: Cash and cash equivalents ......................................................... $77,408 $109,000 Short-term investments ............................................................ 41,900 4,907 Inventory, net .................................................................... 70,281 36,385 Accounts receivable, net of allowance for doubtful accounts of $2,566 and $250 as of June 30, 2001 and December 31, 2000, respectively ........................ 70,052 84,529 Unbilled costs and accrued profits on contracts in progress ....................... 10,809 2,953 Deferred training ................................................................. 10,645 4,930 Other current assets .............................................................. 2,936 4,541 Deferred tax asset ................................................................ 4,758 4,758 -------- -------- Total current assets ................................................................. 288,789 252,003 Net property, plant & equipment ...................................................... 14,332 9,965 Other investments .................................................................... 1,862 760 Other long-term assets ............................................................... 7,504 7,497 -------- -------- Total assets ......................................................................... $312,487 $270,225 -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable .................................................................. $42,921 $31,328 Accrued rebates and sales discounts ............................................... 53,561 24,368 Accrued incentives ................................................................ 20,748 19,824 Accrued salaries and wages ........................................................ 7,244 6,568 Unearned contract revenue ......................................................... 21,265 23,813 Other accrued expenses ............................................................ 11,669 25,382 -------- -------- Total current liabilities ............................................................ 157,408 131,283 -------- -------- Long-term liabilities: Deferred compensation ........................................................... 169 169 Deferred tax liability ............................................................ 663 663 Other long-term liabilities .......................................................... -- -- -------- -------- Total long-term liabilities .......................................................... 832 832 -------- -------- Total liabilities .................................................................... $158,240 $132,115 -------- -------- Stockholders' equity: Common stock, $.01 par value; 30,000,000 shares authorized; shares issued and outstanding June 30, 2001 - 13,873,867; December 31, 2000 - 13,837,390; restricted $.01 par value; shares issued and outstanding, June 30, 2001 - 7,972; December 31, 2000 - 7,972 ...................................................... 139 138 Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding .................................................. -- -- Additional paid-in capital ........................................................... 97,583 96,945 Additional paid-in capital, restricted ............................................... 217 217 Retained earnings .................................................................... 56,985 41,654 Accumulated other comprehensive loss ................................................. (63) (34) Unamortized compensation costs ....................................................... (614) (810) -------- -------- Total stockholders' equity ........................................................... 154,247 138,110 -------- -------- Total liabilities & stockholders' equity ............................................. $312,487 $270,225 ======== ========
4 PROFESSIONAL DETAILING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)
Three Months Ended June 30, Six Months Ended June 30, ---------------------------- ---------------------------- 2001 2000 2001 2000 ----------- ----------- ----------- ----------- (unaudited) Revenue Service, net ............................................ $64,789 $75,789 $142,876 $147,078 Product, net ............................................ 79,155 -- 174,133 -- ----------- ----------- ----------- ----------- Total revenue, net ................................... 143,944 75,789 317,009 147,078 ----------- ----------- ----------- ----------- Cost of goods and services Program expenses (including related party amounts of $426 and $361 for the quarters ended June 30, 2001 and 2000, and $585 and $1,064 for the six months ended June 30, 2001 and 2000, respectively) .......... 53,321 58,108 108,716 108,228 Cost of goods sold ...................................... 51,523 -- 115,738 -- ----------- ----------- ----------- ----------- Total cost of goods and services ..................... 104,844 58,108 224,454 108,228 ----------- ----------- ----------- ----------- Gross profit ............................................... 39,100 17,681 92,555 38,850 Compensation expense ....................................... 9,162 6,794 20,177 15,187 Other selling, general & administrative expenses ........... 23,546 2,972 49,273 6,979 ----------- ----------- ----------- ----------- Total selling, general & administrative expenses ....... 32,708 9,766 69,450 22,166 ----------- ----------- ----------- ----------- Operating income ........................................... 6,392 7,915 23,105 16,684 Other income, net .......................................... 1,537 255 3,407 939 ----------- ----------- ----------- ----------- Income before provision for taxes .......................... 7,929 8,170 26,512 17,623 Provision for income taxes ................................. 3,527 3,332 11,181 7,171 ----------- ----------- ----------- ----------- Net income ................................................. $4,402 $4,838 $15,331 $10,452 =========== =========== =========== =========== Basic net income per share ................................. $0.32 $0.36 $1.11 $0.79 =========== =========== =========== =========== Diluted net income per share ............................... $0.31 $0.35 $1.08 $0.78 =========== =========== =========== =========== Basic weighted average number of shares outstanding ........ 13,855,662 13,592,028 13,849,327 13,298,612 =========== =========== =========== =========== Diluted weighted average number of shares outstanding ...... 14,245,993 13,774,124 14,189,349 13,478,765 =========== =========== =========== ===========
5 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PROFESSIONAL DETAILING, INC. By: /s/Charles T. Saldarini --------------------------------- Charles T. Saldarini Chief Executive Officer Date: August 14, 2001 6 -----END PRIVACY-ENHANCED MESSAGE-----