DELAWARE
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0-24249
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22-2919486
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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99.1
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Press Release dated November 9, 2011.
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* * * * * * * | |||
SIGNATURE |
PDI, INC. | |
By: /s/ Jeffrey Smith | |
Jeffrey Smith | |
Chief Financial Officer |
PDI CONTACT: | INVESTOR CONTACT: |
Lisa Ellen | Melody Carey |
PDI, Inc. | Rx Communications Group, LLC |
(862) 207-7866 | (917) 322-2571 |
lellen@pdi-inc.com, www.pdi-inc.com | Mcarey@RxIR.com |
·
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Revenues increased to $37.2 million for the third quarter of 2011 vs. $36.0 million in the third quarter of 2010
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·
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Consolidated third quarter 2011 operating income from continuing operations of $32,000 vs. $400,000 in the third quarter of 2010; excluding Group DCA operations, earned $200,000 in operating income in the third quarter of 2011
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·
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Reported positive cash flow from operations of $3.1 million in the first nine months of 2011, cash and equivalents at September 30, 2011 of $65.5 million and no debt
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·
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Gerald R. Melillo, Jr., pharmaceutical industry veteran, joined PDI as senior vice president of Business Development
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·
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Announced the 7th consecutive renewal of a seasonal sales services agreement with a Top 10 pharmaceutical company, utilizing PDI’s Shared Sales team. Expected to generate approximately $11 million in revenue from Fall 2011 through Spring 2012, $6 million of which will be realized in 2011
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3rd Quarter Ended
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Nine Months Ended
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September 30,*
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September 30,*
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$'s in millions except EPS
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2011
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2010
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2011
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2010
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Revenue, net
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$ | 37.2 | $ | 36.0 | $ | 124.0 | $ | 100.0 | ||||||||
Gross profit
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8.2 | 8.5 | 26.1 | 22.7 | ||||||||||||
Operating expenses:
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Compensation expense
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4.7 | 4.5 | 16.8 | 13.5 | ||||||||||||
Other SG&A
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3.5 | 3.5 | 11.5 | 10.4 | ||||||||||||
Facilities realignment
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- | - | - | 0.6 | ||||||||||||
Total operating expenses
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8.1 | 8.0 | 28.3 | 24.5 | ||||||||||||
Operating income (loss)
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$ | - | $ | 0.4 | $ | (2.2 | ) | $ | (1.7 | ) | ||||||
Other (expense) income, net
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- | 0.1 | (0.1 | ) | 0.1 | |||||||||||
Provision (benefit) for income tax
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0.2 | 0.1 | (0.7 | ) | 0.2 | |||||||||||
(Loss) income from continuing operations
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$ | (0.2 | ) | $ | 0.4 | $ | (1.6 | ) | $ | (1.8 | ) | |||||
Diluted (loss) income from continuing
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operations per share
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$ | (0.01 | ) | $ | 0.03 | $ | (0.11 | ) | $ | (0.13 | ) | |||||
*Unaudited
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Reconciliation of Condensed Consolidating Summary of Continuing Operations*
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For the Quarter Ended September 30, 2011
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$'s in millions
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Legacy
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Total
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Cons.
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PDI**
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Group DCA
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PDI***
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Revenue, net
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$ | 33.4 | $ | 3.8 | $ | 37.2 | ||||||
Gross Profit
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6.7 | 1.5 | 8.2 | |||||||||
Total Operating Expenses
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6.4 | 1.7 | 8.1 | |||||||||
Operating Income (Loss)
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$ | 0.2 | $ | (0.2 | ) | $ | 0.0 | |||||
For the Nine Months Ended September 30, 2011
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Revenue, net
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$ | 115.2 | $ | 8.8 | $ | 124.0 | ||||||
Gross Profit
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24.0 | 2.1 | 26.1 | |||||||||
Total Operating Expenses
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22.3 | 6.0 | 28.3 | |||||||||
Operating Income (Loss)
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$ | 1.7 | $ | (3.9 | ) | $ | (2.2 | ) | ||||
·
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Sales Services segment revenue for the third quarter of 2011 of $29.3 million was 12% lower than the third quarter of 2010. As anticipated, the carryover of 2010 and 2011 new business wins were more than offset by the non-renewal of contracts.
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Marketing Services segment revenue for the third quarter of 2011 of $2.4 million was 91% higher than the third quarter of 2010 due to $3.8 million of Group DCA revenue recorded, partially offset by a decrease in Pharmakon revenue, as a result of fewer projects being won and executed.
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·
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Product Commercialization Services segment revenue for the third quarter of 2011 of $2.9 million is related to services under a new fee-for-service arrangement within the company’s new Interpace BioPharma division. There was no revenue in the third quarter of 2010, as there were no ongoing product commercialization activities during that period.
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Sales Services segment gross profit for the third quarter of 2011 of $5.6 million was 24% lower than the third quarter of 2010 primarily due to lower revenue.
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Marketing Services segment gross profit for the third quarter of 2011 of $2.1 million was 81% higher due to the inclusion of Group DCA.
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Product Commercialization Services segment had gross profit for the third quarter of 2011 of $500,000.
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The company had positive net cash provided by operations of $3.1 million for the nine months of 2011.
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As of September 30, 2011, the company's cash equivalents were predominantly invested in U.S. Treasury money market funds, and the company had no commercial debt.
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PDI, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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(in thousands, except per share data)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2011
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2010
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2011
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2010
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Revenue, net
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$ | 37,246 | $ | 35,972 | $ | 123,974 | $ | 99,952 | ||||||||
Cost of services
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29,073 | 27,489 | 97,828 | 77,209 | ||||||||||||
Gross profit
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8,173 | 8,483 | 26,146 | 22,743 | ||||||||||||
Compensation expense
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4,646 | 4,518 | 16,818 | 13,481 | ||||||||||||
Other selling, general and administrative expenses
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3,495 | 3,545 | 11,488 | 10,410 | ||||||||||||
Facilities realignment
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- | - | - | 583 | ||||||||||||
Total operating expenses
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8,141 | 8,063 | 28,306 | 24,474 | ||||||||||||
Operating income (loss)
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32 | 420 | (2,160 | ) | (1,731 | ) | ||||||||||
Other (expense) income, net
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(40 | ) | 58 | (123 | ) | 133 | ||||||||||
(Loss) income from continuing operations before
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income tax
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(8 | ) | 478 | (2,283 | ) | (1,598 | ) | |||||||||
Provision (benefit) for income tax
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183 | 71 | (672 | ) | 208 | |||||||||||
(Loss) income from continuing operations
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(191 | ) | 407 | (1,611 | ) | (1,806 | ) | |||||||||
Loss from discontinued operations, net of tax
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(11 | ) | (2,081 | ) | (37 | ) | (2,457 | ) | ||||||||
Net loss
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$ | (202 | ) | $ | (1,674 | ) | $ | (1,648 | ) | $ | (4,263 | ) | ||||
Basic (loss) income per share of common stock:
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From continuing operations
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$ | (0.01 | ) | $ | 0.03 | $ | (0.11 | ) | $ | (0.13 | ) | |||||
From discontinued operations
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- | (0.15 | ) | - | (0.17 | ) | ||||||||||
Net loss per basic share of common stock
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$ | (0.01 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.30 | ) | ||||
Diluted (loss) income per share of common stock:
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From continuing operations
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$ | (0.01 | ) | $ | 0.03 | $ | (0.11 | ) | $ | (0.13 | ) | |||||
From discontinued operations
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- | (0.14 | ) | - | (0.17 | ) | ||||||||||
Net loss per diluted share of common stock
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$ | (0.01 | ) | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.30 | ) | ||||
Weighted average number of common shares and
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common share equivalents outstanding:
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Basic
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14,479 | 14,325 | 14,417 | 14,291 | ||||||||||||
Diluted
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14,479 | 14,661 | 14,417 | 14,291 | ||||||||||||
Segment Data (Unaudited)
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($ in thousands)
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Sales
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Marketing
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PC
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Services
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Services
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Services*
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Consolidated
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Three months ended September 30, 2011:
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Revenue, net
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$ | 29,267 | $ | 5,129 | $ | 2,850 | $ | 37,246 | ||||||||
Gross profit
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$ | 5,574 | $ | 2,073 | $ | 526 | $ | 8,173 | ||||||||
Gross profit %
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19.0 | % | 40.4 | % | 18.5 | % | 21.9 | % | ||||||||
Three months ended September 30, 2010:
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Revenue, net
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$ | 33,292 | $ | 2,680 | $ | - | $ | 35,972 | ||||||||
Gross profit
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$ | 7,337 | $ | 1,146 | $ | - | $ | 8,483 | ||||||||
Gross profit %
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22.0 | % | 42.8 | % | - | 23.6 | % | |||||||||
Nine months ended September 30, 2011:
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Revenue, net
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$ | 106,207 | $ | 14,233 | $ | 3,534 | $ | 123,974 | ||||||||
Gross profit
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$ | 20,713 | $ | 4,623 | $ | 810 | $ | 26,146 | ||||||||
Gross profit %
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19.5 | % | 32.5 | % | 22.9 | % | 21.1 | % | ||||||||
Nine months ended September 30, 2010:
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Revenue, net
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$ | 91,937 | $ | 8,015 | $ | - | $ | 99,952 | ||||||||
Gross profit
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$ | 19,483 | $ | 3,260 | $ | - | $ | 22,743 | ||||||||
Gross profit %
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21.2 | % | 40.7 | % | - | 22.8 | % | |||||||||
* Product Commercialization (PC) Services
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Selected Balance Sheet Data (Unaudited)
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(in thousands)
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September 30,
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December 31,
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2011
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2010
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Cash and cash equivalents
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$ | 65,451 | $ | 62,711 | ||||
Total current assets
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$ | 82,849 | $ | 80,652 | ||||
Total current liabilities
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45,147 | 43,328 | ||||||
Working capital
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$ | 37,702 | $ | 37,324 | ||||
Total assets
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$ | 124,212 | $ | 124,389 | ||||
Total liabilities
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$ | 54,671 | $ | 54,876 | ||||
Total stockholders' equity
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$ | 69,541 | $ | 69,513 | ||||
Selected Cash Flow Data (Unaudited)
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(in thousands)
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September 30,
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2011 | 2010 | |||||||
Net loss
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$ | (1,648 | ) | $ | (4,263 | ) | ||
Non-cash items:
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Depreciation and amortization
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2,352 | 1,137 | ||||||
Stock-based compensation
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1,683 | 1,111 | ||||||
Other
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77 | 720 | ||||||
Net change in assets and liabilities
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621 | 13,760 | ||||||
Net cash provided by operations
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$ | 3,085 | $ | 12,465 | ||||
Change in cash and cash equivalents
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$ | 2,740 | $ | 10,892 |