-----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, TIG5OtxRopL1CBgvJavswOJp3EBrZ5b01h30vw/B0xjbe4zc8Dl4z0OG3N50U3nq M97DKmgWVli/6Dkp+9bizw== 0000950144-99-004835.txt : 19990423 0000950144-99-004835.hdr.sgml : 19990423 ACCESSION NUMBER: 0000950144-99-004835 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990422 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUINTILES TRANSNATIONAL CORP CENTRAL INDEX KEY: 0000919623 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731] IRS NUMBER: 561714315 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-23520 FILM NUMBER: 99599107 BUSINESS ADDRESS: STREET 1: 4709 CREEKSTONE DR STREET 2: RIVERBIRCH BLDG STE 200 CITY: DURHAM STATE: NC ZIP: 27703-8411 BUSINESS PHONE: 9199982000 MAIL ADDRESS: STREET 1: 4709 CREEKSTONE DR STREET 2: STE 300 CITY: DURHAM STATE: NC ZIP: 27703-8411 8-K 1 QUINTILES TRANSNATIONAL 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 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): April 22, 1999 QUINTILES TRANSNATIONAL CORP. (Exact name of registrant as specified in its charter) NORTH CAROLINA 340-23520 56-1714315 (State or other (Commission File No.) I.R.S. Employer jurisdiction Identification Number of incorporation) 4709 CREEKSTONE DRIVE, RIVERBIRCH BUILDING, SUITE 200, DURHAM, NORTH CAROLINA 27703-8411 (Address of principal executive offices) (919) 998-2000 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) 2 ITEM 5. OTHER EVENTS. On April 21, 1999, Quintiles Transnational Corp. (the "Company") issued a press release regarding its financial results for the three month period ended March 31, 1999. A copy of the press release is attached hereto as Exhibit 99.01 and incorporated by reference herein. ITEM 7. (c) EXHIBITS Exhibit No. Description of Exhibit ----------- ---------------------- 99.01 Press release, dated April 21, 1999. 3 SIGNATURES 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. QUINTILES TRANSNATIONAL CORP. By: /s/ Rachel R. Selisker --------------------------------------- Dated: April 22, 1999 Rachel R. Selisker Chief Financial Officer and Executive Vice President Finance 4 EXHIBIT INDEX Exhibit No. Description of Exhibit ----------- ---------------------- 99.01 Press release, dated April 21, 1999 EX-99.01 2 PRESS RELEASE DATED 4-21-1999 1 FOR IMMEDIATE RELEASE www.quintiles.com CONTACT: Pat Grebe, Media Relations (pgrebe@quintiles.com) Greg Connors, Investor Relations (invest@quintiles.com) (919) 998 2000 QUINTILES TRANSNATIONAL REPORTS RECORD 1ST QUARTER RESULTS WITH NET REVENUE OF $408 MILLION, UP 32% FROM 1998 DILUTED NET INCOME PER SHARE GROWS 36%, TO $0.31, EXCLUDING NON-RECURRING COSTS RESEARCH TRIANGLE PARK, N.C. - April 21, 1999 - Quintiles Transnational Corp. (Nasdaq: QTRN) today reported record financial results for the first quarter 1999. Net revenue for the quarter was $408.1 million, a 32% increase over net revenue of $309.1 million for the first quarter 1998. Excluding amortization of acquired intangible assets and transaction costs, net income grew 38% to $33.8 million versus $24.5 million for the 1998 first quarter, and diluted net income per share grew 36% to $0.31 versus $0.23 for the same period in 1998. Including amortization of acquired intangible assets and transaction costs, net income was $7.7 million versus $18.9 million for the 1998 first quarter, and diluted net income per share was $0.07 versus $0.17 for the same period in 1998. As of March 31, 1999, these acquired intangible assets have been fully amortized. First quarter 1998 results were restated for acquisitions completed during 1999 that were accounted for as poolings of interests. "These superb results for the first quarter reflect Quintiles' strong fundamentals and continued success in extending our market leadership," said Dennis Gillings, Ph.D., Chairman and CEO of Quintiles Transnational Corp. "Pharmaceutical industry leaders are increasingly using our outcome-based approach to product development and commercialization as strategic tools to achieve success in the global marketplace. "Combining these recent acquisitions of ENVOY and Scott-Levin with our global QUINTERNET(TM) technology platform, we now can provide our customers with real-time information about what's happening in both the pharmaceutical and medical sectors of the U.S. healthcare market. The speed at which we can provide in-depth market intelligence - which we can deliver in hours instead of weeks or months - offers a major strategic advantage in every phase of drug development and marketing. Our QUINTERNET(TM) Informatics group, which includes ENVOY and its Synergy Health Care group, plus Scott-Levin, is experiencing great customer interest in its informatics products. "Just last week, we introduced a new product comparing regional treatment patterns to national benchmarks. We found, for example, that in one specific market of interest to our customer, there was a much higher incidence of use of one drug therapy than the national average among older patients with certain medical conditions." QUINTERNET(TM) Informatics already is working to maximize the performance of a large Innovex sales force by providing strategic sales and marketing intelligence for sales force 2 optimization. QUINTERNET(TM) Informatics also is helping to expedite the recruitment of investigators for late-phase clinical trials by identifying doctors nationally who treat the greatest numbers of patients meeting tight inclusion criteria. In addition, the QUINTERNET(TM) Informatics group is providing daily-updated sales data on a current product launch that includes prescriptions within 36 hours of the time they are filled. Launch data also includes the number of patients starting a drug for the first time, the total number of patients using the drug and the number of patients switching from one drug to another. These patient trends are described without identifying any individual patients. "This patient trend data is commercially very important," Gillings said, "because it gives the customer an immediate understanding of whether market growth is due to new or repeat business, and how customers gain and lose market share. We are currently providing aggregate data to customers showing pharmaceutical sales of competing products broken down by medical diagnosis, age and gender. This gives customers a more timely, accurate picture of how their drugs are being used. "We also have recently provided surveillance of non-compliance with indicated drug use in connection with a product experiencing significant adverse events, as well as drug concomitancy profiles to show how often drugs are used together by the same patient." Quintiles Transnational Corp. is the market leader in providing a full range of integrated product development and commercialization solutions to the pharmaceutical, biotechnology and medical device industries. Quintiles also is a leader in the electronic data interchange and healthcare informatics industry and provides healthcare policy consulting to governments and other organizations worldwide. Headquartered near Research Triangle Park, North Carolina, Quintiles is a Fortune 1000 company and a member of the Nasdaq-100 Index. With more than 16,000 employees worldwide and offices in 31 countries, Quintiles operates through specialized work groups dedicated to meeting customers' individual needs. Visit the Quintiles Transnational web site at www.quintiles.com. Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the ability of the recently combined businesses to be integrated with Quintiles' current operations, actual operating performance, the ability to operate successfully in the lines of business resulting from the ENVOY and Scott-Levin transactions, the ability to maintain large client contracts or to enter into new contracts, and the actual costs of combining the businesses. Additional factors that could cause actual results to differ materially are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its S-3 and S-4 Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs. # # # 3 Condensed Consolidated Statements of Income (Unaudited)
Proforma** --------------------------------- Three Months Ended March 31 Three Months Ended March 31 1999 1998* 1999 1998* - ---------------------------------------------------------------------------------- --------------------------------- In thousands, except per share data Net revenue 408,098 309,068 408,098 309,068 Costs and expenses: Direct 210,466 160,851 210,466 160,851 General and administrative 123,493 95,367 123,493 95,367 Depreciation and amortization 25,129 21,879 21,408 16,814 - ---------------------------------------------------------------------------------- --------------------------------- Total costs and expenses 359,088 278,097 355,367 273,032 - ---------------------------------------------------------------------------------- --------------------------------- Income from operations 49,010 30,971 52,731 36,036 Transaction costs (22,363) (532) 0 0 Other income (expense) 426 (290) 426 (290) - ---------------------------------------------------------------------------------- --------------------------------- Total other income (expense) (21,937) (822) 426 (290) - ---------------------------------------------------------------------------------- --------------------------------- Income before income taxes 27,073 30,149 53,157 35,746 Income taxes 19,370 11,277 19,370 11,277 - ---------------------------------------------------------------------------------- --------------------------------- Net income $7,703 $18,872 $33,787 $24,469 - ---------------------------------------------------------------------------------- --------------------------------- Basic net income per share $0.07 $0.19 $0.32 $0.24 Diluted net income per share $0.07 $0.17 $0.31 $0.23 - ---------------------------------------------------------------------------------- --------------------------------- Shares used in computing net income per share Basic 107,027 101,499 107,027 101,499 Diluted 109,729 108,219 109,729 108,219
* Restated to include ENVOY and Niehaus & Botha which were acquired in 1999 in transactions accounted for as poolings of interests ** Excludes transaction costs and amortization of acquired intangible assets of $3.7 million and $5.1 million for the quarters ended March 31, 1999 and 1998, respectively. As of March 31, 1999, these acquired intangible assets have been fully amortized. -----END PRIVACY-ENHANCED MESSAGE-----