-----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, FcdYr3HCNuzqGaevhvYs5D0QRufQo9B9EgouhwRpobtnaRMrNaaC9jXxd08whGuc n0Dy4KkQbDgNI7JZRHwR7Q== 0000799729-99-000026.txt : 19991110 0000799729-99-000026.hdr.sgml : 19991110 ACCESSION NUMBER: 0000799729-99-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991026 ITEM INFORMATION: FILED AS OF DATE: 19991109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAREXEL INTERNATIONAL CORP CENTRAL INDEX KEY: 0000799729 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731] IRS NUMBER: 042776269 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-27058 FILM NUMBER: 99743889 BUSINESS ADDRESS: STREET 1: 195 WEST ST CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 6174879900 MAIL ADDRESS: STREET 1: 195 WEST ST CITY: WALTHAM STATE: MA ZIP: 02154 8-K 1 PAREXEL INTERNATIONAL CORPORATION 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): October 26, 1999 ---------------------- PAREXEL International Corporation (Exact name of Registrant as specified in its charter) Massachusetts 0-27058 04-2776269 (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification Number) incorporation or organization) 195 West Street, Waltham, Massachusetts 02451 (Address of principal executive offices) (Zip Code) (781) 487-9900 (Registrant's telephone number including area code) Item 5. Other Events On October 26, 1999, the Company issued two press releases, copies of which are attached as Exhibit 99.1 and 99.2 to this Current Report on Form 8-K. Item 7. Financial Statements and Exhibits Exhibit No. Exhibit 99.1 Press release of the Company dated October 26, 1999. 99.2 Press release of the Company dated October 26, 1999. 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, thereunto duly authorized, on this 8th day of November, 1999. PAREXEL INTERNATIONAL CORPORATION Dated November 8, 1999 By: /s/ William T. Sobo, Jr. William T. Sobo, Jr. Senior Vice President Chief Financial Officer Treasurer and Clerk EXHIBIT INDEX Exhibit No. Description 99.1 Press release of the Company dated October 26, 1999 99.2 Press release of the Company dated October 26, 1999 EXHIBIT 99.1 FOR IMMEDIATE RELEASE www.PAREXEL.com CONTACT: Ethel Shepard, Public Relations (781) 434-4709 ethel.shepard@parexel.com PAREXEL ANNOUNCES CLIENT-BASED ORGANIZATION -- Client Research Units Formed With Global Client Accountability -- Boston, MA, October 26, 1999 - PAREXEL International Corporation (Nasdaq: PRXL) announced today the realignment of its Contract Research Services (CRS) business into discrete operating units. These units, known as Client Research Units (CRUs), focus on the needs of specific client segments, with full operational capability tailored to the differing requirements of each segment. Each CRU, led by a general manager responsible for all CRU activity worldwide, encompasses personnel for client-focused project management, clinical monitoring and data management. "The CRU structure is an evolution of our existing client service model, which has been very effective in providing PAREXEL customers with the highest level of customized service and worldwide development expertise," stated Josef H. von Rickenbach, Chairman and Chief Executive Officer of PAREXEL. "As we continue to innovate and build on the excellence of our core clinical research activities, this organization allows us to optimize our global resources to meet the expanding needs of our clients and positions us for client-focused growth. In addition, it positions PAREXEL to better leverage our significant scientific resources and more rapidly implement new technologies." The realignment also includes the creation of two additional operating units designed to provide drug development and therapeutic expertise, advanced technologies and clinical trial optimization services to CRUs. The Scientific and Medical Services (SMS) Unit, led by Warren Stern, Ph.D., integrates PAREXEL's scientific and medical expertise into a single operating unit. The Advanced Technology & Informatics (ATI) Group, led by Mark A. Goldberg, M.D., focuses on applying new technologies to accelerate the clinical development process. The SMS Unit will incorporate Medical Affairs, Medical Writing, Biostatistics, Pediatric Drug Development, Therapeutic Area Groups and the Company's Academic Alliances. An important function of this unit is to support the CRUs in designing and implementing full development programs for new compounds. PAREXEL's ATI Group leads technology development, implementation and innovation for the CRUs. It includes a comprehensive array of technology-based services for clinical development, trial management and communications, and data management. A key component of ATI is the newly-formed e-Services group, which integrates PAREXEL's web-based offerings including electronic data capture, patient randomization, knowledge management tools, electronic diaries, and customized trial management and communications tools. Other services within the ATI Group include medical diagnostics services, (including medical imaging and ECG), interactive voice response systems (IVRS), site services, data capture and advanced data management tools. The group is also responsible for information technology supporting clinical research applications. This release contains "forward-looking" statements regarding future results and events, including statements regarding expected future growth and customer demand. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Factors that might cause such a difference include, but are not limited to risks associated with: the Company's ability to execute the realignment of the CRS business; client acceptance of the Company's realignment of the CRS business; loss or delay of large contracts; the Company's dependence on certain industries and clients; the Company's ability to manage growth and its ability to attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses; government regulation of certain industries and clients; competition and consolidation within the industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations. These factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended June 30, 1999. PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing and other drug development consulting services. The Company's integrated services, therapeutic area depth and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL operates in 46 locations throughout 29 countries around the world, and has approximately 4,400 employees. EXHIBIT 99.2 FOR IMMEDIATE RELEASE www.PAREXEL.com CONTACTS: Bill Sobo, Senior Vice President, Chief Financial Officer Jill Baker, Director of Investor Relations (781) 434-4118 PAREXEL REPORTS FIRST QUARTER FINANCIAL RESULTS Boston, MA, October 26, 1999 - PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the first quarter ended September 30, 1999. For the three months ended September 30, 1999, PAREXEL's consolidated net revenue increased 11% to $91.8 million, from $82.8 million in the prior-year quarter. Income from operations was $6.1 million, a 20.7% decrease over operating income of $7.7 million in the prior-year quarter. Net income for the quarter was $4.4 million, or $0.18 per diluted share, compared with net income of $5.5 million, or $0.22 per diluted share for the quarter ended September 30, 1998. On a segment basis, revenues for the first quarter were $65.1 million in Contract Research Services, $15.3 million in the Consulting Group, and $11.3 million in Medical Marketing Services. "I am pleased that PAREXEL delivered results in line with analysts' consensus estimates in the first fiscal quarter. During the quarter, we focused on redefining our strategy and realigning our core business, Contract Research Services, to more efficiently and effectively meet the needs of our clients. We believe that the actions we are taking in this key business unit will improve both operational execution and client satisfaction," said Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL. This release contains "forward-looking" statements regarding future results and events, including statements regarding expected future growth and customer demand. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Factors that might cause such a difference include, but are not limited to, risks associated with: the loss or delay of large contracts; the Company's dependence on certain industries and clients; the Company's ability to manage growth and its ability to attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses; government regulation of certain industries and clients; competition and consolidation within the industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations. These factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1999. PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing and other drug development consulting services. The Company's integrated services, therapeutic area depth and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL operates in 46 locations throughout 29 countries around the world, and has approximately 4,400 employees. PAREXEL International Corporation Consolidated Condensed Statement of Operations (In thousands, except per share data) (Unaudited) Three months ended September 30, 1999 1998 ---------------- -----------------
Net revenue $91,768 $82,835 ---------------- ----------------- Costs and expenses: Direct costs 62,133 53,737 Selling, general and administrative 18,765 17,179 Depreciation and amortization 5,095 4,242 Facilities charge (benefit) (a) (312) - ---------------- ----------------- Income from operations 6,087 7,677 Other income, net 774 713 ---------------- ----------------- Income before income taxes $6,861 $8,390 ================ ================= Net income $4,439 $5,505 ================ ================= Earnings per common share: Basic $0.18 $0.22 Diluted $0.18 $0.22 Shares used in computing earnings per common share: Basic 25,153 24,677 Diluted 25,285 25,097 Consolidated Balance Sheet Information (In thousands) (Unaudited) September 30, June 30, 1999 1999 ---------------- ----------------- Working capital $135,511 $132,757 Total assets 365,636 333,565 Stockholders' equity 198,602 192,032
(a) Adjustment to the $2.8 million leasehold abandonment charge recorded in the June 1999 quarter, to reflect the favorable impact of a lease buyout agreement. PAREXEL International Corporation Segment Information ($ in thousands) (Unaudited) Three months ended September 30, 1999 1998 ---------------- -----------------
Contract Research Services ------------------------------------ Net revenue $65,093 $55,775 % of Total net revenue 71% 67% Gross profit $23,446 $21,086 Gross margin 36% 38% Consulting Group ------------------------------------ Net revenue $15,335 $13,249 % of Total net revenue 17% 16% Gross profit $3,143 $4,156 Gross margin 20% 31% Medical Marketing Services ------------------------------------ Net revenue $11,340 $13,811 % of Total net revenue 12% 17% Gross profit $3,046 $3,856 Gross margin 27% 28% Total net revenue $91,768 $82,835 Total gross profit $29,635 $29,098 Gross margin 32% 35%
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