EX-99.1 3 dex991.htm PRESS RELEASE OF VENTIV HEALTH, INC., DATED NOVEMBER 12, 2003 Press Release of Ventiv Health, Inc., dated November 12, 2003

EXHIBIT 99.1

LOGO

 

Contacts:

Investors/Corporate:

John R. Emery

Chief Financial Officer

(732) 537-4804

investor@ventiv.com

 

VENTIV HEALTH, INC. REPORTS FINANCIAL RESULTS

FOR THIRD QUARTER 2003

 

  Revenues up 26% to $59.3 million and EPS from continuing operations up 178% to $0.12, driven by new contract startups and operating efficiencies

 

  Deployment completed of 390-rep sales force for Watson; New agreement with Bayer for additional 200-rep sales force expansion

 

  2003 EPS guidance raised to $0.29-$0.31 from $0.15-$0.20

 

SOMERSET, NEW JERSEY, November 12, 2003 — Ventiv Health, Inc (Nasdaq: VTIV), a leading provider of comprehensive marketing and sales solutions to the pharmaceutical and life sciences industries, today announced financial results for the third quarter of 2003. Results discussed below exclude Ventiv’s discontinued Communications and European Contract Sales businesses.

 

  Total revenues for the third quarter of 2003 were $59.3 million, compared to $46.9 million for the third quarter of 2002.

 

  Earnings from continuing operations before tax were $4.8 million, compared to $2.1 million for the third quarter of 2002.

 

  Net earnings from continuing operations were $3.0 million, compared to $1.0 million for the third quarter of 2002.

 

  Diluted earnings per share from continuing operations were $0.12, compared to $0.04 for the third quarter of 2002.

 

Divisional results include:

 

  Ventiv Health Sales & Marketing (VHSM) reported revenues of $51.4 million, versus $40.4 million during the third quarter of 2002. This growth was primarily driven by the deployment of two new sales representative teams, for ALTANA Pharma and Watson Pharmaceuticals respectively, partially offset by the previously announced reduction of the Bayer sales force in early 2003.

 

  Health Products Research (HPR), Ventiv’s Planning & Analytics business, reported revenues of $7.9 million, versus $6.4 million during the third quarter of 2002. New and increased business with several key clients was responsible for this growth.


VENTIV HEALTH, INC. REPORTS

THIRD QUARTER 2003 RESULTS

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Eran Broshy, CEO of Ventiv, commented, “I am extremely pleased with Ventiv’s third quarter results, which have substantially exceeded our expectations. Our strong performance was the result of new business wins, including the successful deployment of an additional team for ALTANA Pharma and a team for Watson Pharmaceuticals, as well as ongoing operational efficiencies in several areas. In addition, our HPR Planning & Analytics business continues to perform very strongly.”

 

Mr. Broshy added, “I am also pleased to announce today that we have signed a definitive agreement to provide an additional 200 sales representatives to Bayer Pharmaceutical Corporation. This agreement underscores Ventiv’s ability to maintain key long-term client relationships based on delivering high-impact results in a flexible and cost-effective manner as our clients’ portfolio needs evolve.”

 

Mr. Broshy commented, “Based on our results for the third quarter and our expectations for the remainder of the year, we are raising our guidance for 2003 net earnings per share from continuing operations from $0.15-$0.20 per share to $0.29-$0.31 per share.”

 

Conference call information:

Thursday, November 13, 2003, 8:30am Eastern Time.

Call in number: 706-634-1065

Live and archived webcast: www.ventiv.com

 

 

About Ventiv Health

 

Ventiv Health, Inc. is a leading provider of comprehensive outsourced marketing and sales solutions for the pharmaceutical and life sciences industries. The Company works in consultative partnership with clients to identify strategic goals and develop customized, integrated solutions to optimize clients’ product portfolios. Ventiv Health’s market-leading offerings include: sales force recruitment, training and execution; consulting, analytics and forecasting; market research and intelligence; strategic and tactical planning and product and brand management.

 

For almost three decades, Ventiv Health businesses have provided a broad range of innovative strategic and tactical solutions to clients including: Abbott Laboratories, Allergan, Amgen, ALTANA Pharma, AstraZeneca, Aventis, Bayer, Boehringer Ingleheim, Endo Pharmaceuticals, GlaxoSmithKline, Johnson & Johnson, Merck, Novartis, Noven Pharmaceuticals, Pfizer and Watson Pharmaceuticals. . For more information on Ventiv Health, visit www.ventiv.com.


VENTIV HEALTH, INC. REPORTS

THIRD QUARTER 2003 RESULTS

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Ventiv Health, Inc.

Condensed Consolidated Statements of Operations

($’s in 000’s, except share and per share data)

(unaudited)

 

     Three Months Ended

    Nine Months Ended

 
     September 30,

    September 30,

 
     2003

    2002

    2003

    2002

 

Revenues

   $ 59,291     $ 46,888     $ 149,183     $ 165,525  

Operating expenses:

                                

Costs of services

     47,968       38,642       123,808       139,483  

Selling, general and administrative expenses

     6,516       6,137       17,750       19,449  

Gain on sale of real estate

     —         —         (392 )     —    
    


 


 


 


Total operating expenses

     54,484       44,779       141,166       158,932  
    


 


 


 


Earnings from continuing operations

     4,807       2,109       8,017       6,593  

Net interest expense

     (33 )     (470 )     (54 )     (1,100 )
    


 


 


 


Earnings from continuing operations before income taxes

     4,774       1,639       7,963       5,493  

Provision for income taxes

     (1,814 )     (623 )     (3,026 )     (2,087 )
    


 


 


 


Earnings from continuing operations

     2,960       1,016       4,937       3,406  
    


 


 


 


Discontinued operations:

                                

Losses from discontinued operations, net of taxes

     (525 )     (117 )     (4,154 )     (2,797 )

Gains (losses) on disposals of discontinued operations, net of taxes

     (5,553 )     3,400       (6,906 )     (1,412 )

Tax benefit from disposal of a discontinued operation

     —         —         —         5,400  
    


 


 


 


Net earnings (losses) from discontinued operations, net of taxes (1)

     (6,078 )     3,283       (11,060 )     1,191  
    


 


 


 


Net earnings (losses)

   $ (3,118 )   $ 4,299     $ (6,123 )   $ 4,597  
    


 


 


 


Earnings per share from continuing operations:

                                

Basic

   $ 0.13     $ 0.04     $ 0.22     $ 0.15  

Diluted

   $ 0.12     $ 0.04     $ 0.21     $ 0.15  

Earnings (losses) per share from discontinued operations:

                                

Basic

   $ (0.27 )   $ 0.15     $ (0.49 )   $ 0.05  

Diluted

   $ (0.26 )   $ 0.15     $ (0.48 )   $ 0.05  

Consolidated earnings (losses) per share:

                                

Basic

   $ (0.14 )   $ 0.19     $ (0.27 )   $ 0.20  

Diluted

   $ (0.14 )   $ 0.19     $ (0.27 )   $ 0.20  

Weighted average number of common shares outstanding:

                                

Basic

     22,880,004       22,828,134       22,886,178       22,825,589  

Diluted

     23,910,383       22,830,213       23,634,323       22,830,306  

 

(1) Net Losses from discontinued operations includes Ventiv’s Connecticut-based and Georgia-based communications businesses and Ventiv’s Germany-based, U.K.-based and Hungary-based contract sales businesses, which have been divested, and Ventiv’s France-based contract sales business, which has been divested pursuant to a plan of receivership.

 

(2) For the three and nine month periods ended September 30, 2003, diluted EPS was calculated using the basic share count since the Company incurred net losses for those periods; using the diluted share count in those instances would generate an anti-dilutive effect on EPS.


VENTIV HEALTH, INC. REPORTS

THIRD QUARTER 2003 RESULTS

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Ventiv Health, Inc.

Selected Balance Sheet Data

($’s in 000’s)

(unaudited)

 

    

September 30,

2003


  

December 31,

2002


Cash

   $ 55,080    $ 47,753

Account Receivable, Net

     33,391      28,696

Unbilled Services

     14,958      14,547

Client Advances & Unearned Revenue

     4,944      3,725

Working Capital (1)

     57,608      56,809

Capital Lease Obligations

     15,173      13,052

Depreciation (2)

     2,396      9,585

Amortization (2)

     5      47

Days Sales Outstanding (3)

     89      73

 

  (1) Working Capital is defined as Total Current Assets less Total Current Liabilities.

 

  (2) Depreciation and amortization for September 30, 2003 are reported on a quarter-to-date basis, while December 31, 2002 is reported on a year-to-date basis.

 

  (3) Days Sales Outstanding is measured using the combined amounts of Accounts Receivable and Unbilled Services outstanding as of the balance sheet date, against Revenues for the trailing 12-month period then ended.

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks that may cause Ventiv Health’s performance to differ materially. Such risks include, without limitation: changes in trends in the pharmaceutical industry or in pharmaceutical outsourcing; our ability to compete successfully with other services in the market; our ability to maintain large client contracts or to enter into new contracts; uncertainties related to future incentive payments and revenue share agreements; and, our ability to operate successfully in new lines of business. Readers of this press release are referred to documents filed from time to time by Ventiv Health, Inc. with the Securities and Exchange Commission for further discussion of these and other factors.