-----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, ACYUDZcee89TTX8oIPT9CLyD+67QsY9hcfp6GIpWPa3kLfkzK8rDHqOasFP5cgEl B0MrWew5hjoj+g3gn7Q9xw== 0001005477-02-002131.txt : 20020514 0001005477-02-002131.hdr.sgml : 20020514 ACCESSION NUMBER: 0001005477-02-002131 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020513 ITEM INFORMATION: Other events FILED AS OF DATE: 20020514 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: 02645154 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 d37353_8-k.txt CURRENT REPORT 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): May 13, 2002 PDI, INC. (Exact name of Registrant as specified in its charter) DELAWARE 0-24249 22-2919486 (State or other jurisdiction of (Commission File (IRS Employer incorporation) Number) Identification No.) 10 Mountainview Road, Upper Saddle River, NJ 07458 (Address of principal executive office) (Zip Code) (201) 258-8450 Registrant's telephone number, including area code: Professional Detailing, Inc. (Former name or former address, if changed since last report) Item 5. Other Events On May 13, 2002 the Registrant issued the following press release: "PDI REPORTS FIRST QUARTER 2002 FINANCIAL RESULTS Revenue of $73.9 million; Operating Loss of $4.5 million; and Net Loss per share of $0.16 Upper Saddle River, New Jersey (Monday, May 13, 2002). PDI, Inc. (Nasdaq: PDII) today announced revenue, an operating loss, a net loss and a net loss per share for the quarter ended March 31, 2002. Quarterly Results Net total revenue for the quarter ended March 31, 2002 was $73.9 million, 57.3% lower than net total revenue of $173.1 million for the quarter ended March 31, 2001. Net product revenue for the quarter ended March 31, 2002 was $5.7 million compared to $95.0 million for the quarter ended March 31, 2001. Net service revenue for the quarter ended March 31, 2002 was $68.2 million, 12.7% lower than net service revenue of $78.1 million for the quarter ended March 31, 2001. There was an operating loss for the quarter ended March 31, 2002 of $4.5 million, compared to operating income of $16.7 million for the quarter ended March 31, 2001. There was a net loss for the quarter ended March 31, 2002 of $2.3 million compared to net income of $10.9 million for the quarter ended March 31, 2001. The net loss per share was $0.16 for the quarter ended March 31, 2002 compared to diluted net income per share of $0.77 for the quarter ended March 31, 2001. Charles T. Saldarini, Chief Executive Officer of PDI, Inc. commented, "During the first quarter we continued to focus our efforts on transitioning PDI from a service based to a product driven company by concentrating on leveraging our sales and marketing capabilities, our financial assets and our reputation for high quality work. We believe we are making progress in this transition, which should positively impact future period results." Mr. Saldarini added, "The financial results from our first quarter reflect weakness in our performance based contracts segment. In addition, the net product revenue decline reflects the termination of our sales, marketing and distribution agreement for Ceftin(R). We are continuing to work actively with our partners to monitor our programs' progress and to leverage the sales assets we have deployed to the mutual benefit of both PDI and its pharmaceutical company partners." 2 Webcast and Conference Call PDI will conduct a live webcast of its Earnings Release Briefing at 9:00 AM EDT on Tuesday, May 14, 2002. 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. For those without Internet access, the call can be accessed by dialing 1-800-233-2795 and asking for conference ID# - PDI. About PDI PDI is a commercial partner providing sales and marketing solutions to the pharmaceutical, biotech, and medical devices & diagnostics industries. PDI provides customized plans designed to create win-win situations with our partner companies. With an infrastructure of over 4,000 sales and marketing professionals, PDI has demonstrated the ability to deliver return on investment for products at any stage of their lifecycles, from pre-launch through maturity. Depending on the needs of a product, PDI can provide services, such as contract sales, both dedicated teams and shared teams, marketing research, medical education and communications, managed markets and trade relations, and prelaunch and after sales support. In addition, PDI can enter into strategic relationships such as Product Commercialization, copromotion, LifeCycle Extension or product acquisition. For more information, visit the Company's website at www.pdi-inc.com. This press release contains forward-looking statements regarding the timing and financial impact of the Company's ability to implement its business plan, expected revenues, earnings per share and success during the year 2002. These statements involve a number of risks and uncertainties and 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 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 developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in PDI's periodic reports and registration statements filed with the Securities and Exchange Commission, including without limitation PDI's Annual Report on Form 10-K filed for the year ended December 31, 2001. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. PDI disclaims any obligation to update these statements. 3 PDI, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
March 31, December 31, 2002 2001 --------- ------------ (unaudited) ASSETS Current assets: Cash and cash equivalents ................................................ $ 147,524 $ 160,043 Short-term investments ................................................... 3,397 7,387 Inventory, net ........................................................... -- 442 Accounts receivable, net of allowance for doubtful accounts of $1,560 and $3,692 as of March 31, 2002 and December 31, 2001, respectively ......................................................... 33,020 52,640 Unbilled costs and accrued profits on contracts in progress .............. 9,357 6,898 Deferred training ........................................................ 4,465 5,569 Other current assets ..................................................... 6,336 8,101 Deferred tax asset ....................................................... 24,041 24,041 --------- --------- Total current assets ........................................................ 228,140 265,121 Net property, plant & equipment ............................................. 22,132 21,044 Other long-term assets ...................................................... 15,796 16,506 --------- --------- Total assets ................................................................ $ 266,068 $ 302,671 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ......................................................... $ 5,862 $ 9,493 Accrued rebates and sales discounts ...................................... 59,381 68,403 Accrued contract losses .................................................. 600 12,256 Accrued incentives ....................................................... 16,960 22,213 Accrued salaries and wages ............................................... 10,648 7,167 Unearned contract revenue ................................................ 10,338 10,878 Other accrued expenses ................................................... 13,151 21,026 --------- --------- Total current liabilities ................................................... 116,940 151,436 --------- --------- Long-term liabilities: Deferred tax liability ................................................. 300 300 --------- --------- Total long-term liabilities ................................................. 300 300 --------- --------- Total liabilities ........................................................... $ 117,240 $ 151,736 --------- --------- Stockholders' equity: Common stock, $.01 par value; 100,000,000 shares authorized; shares issued and outstanding March 31, 2002 - 13,969,389; December 31, 2001 - 13,968,097; restricted $.01 par value; shares issued and outstanding, March 31, 2002 - 15,388; December 31, 2001 - 15,388 ............................................. $ 140 $ 140 Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding .......................................... -- -- Additional paid-in capital .................................................. 102,777 102,757 Additional paid-in capital, restricted ...................................... 954 954 Retained earnings ........................................................... 45,741 48,008 Accumulated other comprehensive loss ........................................ (48) (79) Unamortized compensation costs .............................................. (626) (735) Treasury stock, at cost: 2001 - 5,000 shares ................................ (110) (110) --------- --------- Total stockholders' equity .................................................. $ 148,828 $ 150,935 --------- --------- Total liabilities & stockholders' equity .................................... $ 266,068 $ 302,671 ========= =========
4 PDI, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended March 31, ---------------------------- 2002 2001 -------- -------- (unaudited) Revenue Service, net .............................................. $ 68,160 $ 78,087 Product, net .............................................. 5,723 94,978 -------- -------- Total revenue, net ...................................... 73,883 173,065 -------- -------- Cost of goods and services Program expenses (including related party amounts of $97 and $414 for the periods ended March 31, 2002 and 2001, respectively) ................... 67,277 55,395 Cost of goods sold ........................................ -- 64,215 -------- -------- Total cost of goods and services ...................... 67,277 119,610 -------- -------- Gross profit ................................................. 6,606 53,455 Compensation expense ......................................... 7,759 11,015 Other selling, general & administrative expenses ............. 3,325 25,728 -------- -------- Total selling, general & administrative expenses .......... 11,084 36,743 -------- -------- Operating (loss) income ...................................... (4,478) 16,712 Other income, net ............................................ 889 1,870 -------- -------- (Loss) income before provision for taxes ..................... (3,589) 18,582 (Benefit) provision for income taxes ......................... (1,322) 7,653 -------- -------- Net (loss) income ............................................ $ (2,267) $ 10,929 ======== ======== Basic net (loss) income per share ............................ $ (0.16) $ 0.79 ======== ======== Diluted net (loss) income per share .......................... $ (0.16) $ 0.77 ======== ======== Basic weighted average number of shares outstanding .......... 13,969 13,843 ======== ======== Diluted weighted average number of shares outstanding ........ 13,969 14,133 ======== ========
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. PDI, INC. By: /s/ Charles T. Saldarini ------------------------------------ Charles T. Saldarini, Vice Chairman and Chief Executive Officer Date: May 14, 2002 6 -----END PRIVACY-ENHANCED MESSAGE-----