-----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, V7Sd2guC7M0iUHq0gHuQSVQ2/vHWv4C4Rp7nwkYzl5TA43oI/DtaMFfXgl5GT6jN J/0Q2cQh6FtN0uCYvlOPzw== 0001047469-99-015187.txt : 19990419 0001047469-99-015187.hdr.sgml : 19990419 ACCESSION NUMBER: 0001047469-99-015187 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990416 FILED AS OF DATE: 19990416 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOENIX INTERNATIONAL LIFE SCIENCES INC CENTRAL INDEX KEY: 0000935016 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 223209631 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-29942 FILM NUMBER: 99595552 BUSINESS ADDRESS: STREET 1: 2350 COHEN STREET STREET 2: ST LAURENT QUEBEC CITY: H4R 2P7 CANADA STATE: A8 ZIP: 00000 6-K 1 FORM 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Dated April 16, 1999 PHOENIX INTERNATIONAL LIFE SCIENCES INC. ---------------------------------------- (TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH) 235 COHEN STREET ---------------- SAINT LARUENT, QUEBEC CANADA H4R 2N6 ------------------------------------ (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F X (commenced in calendar ------- ------ year 1998) Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ------ ----- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ______________ 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, thereunto duly authorized. PHOENIX INTERNATIONAL LIFE SCIENCES INC. ---------------------------------------- (Registrant) Date:April 16, 1999 By: /S/ JEAN-YVES CALOZ -------- -------------------- Jean-Yves Caloz Senior Vice President, International Finance and Acquisitions EX-99.1 2 EX99-1 Exhibit 99.1 Press Release Immediate Release PHOENIX INTERNATIONAL LIFE SCIENCES INC. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 1999 Montreal, April 15, 1999 - Phoenix International reported consolidated net revenues of $56.4 million for the second quarter of fiscal 1999 ended February 28, 1999, a growth of 59% compared to $35.6 million for the corresponding period of fiscal 1998, as restated to include the ANAWA and Clinserve poolings of interests. During the second quarter, the company's organic growth in net revenue was 18%. Year to date net revenue is $ 117.2 million compared to $ 70.4 million for the corresponding six-month period or an increase of 66% , including an organic growth of 20%. Phoenix International's net income on a US GAAP basis for the second quarter is $ 100,000 or $0.00 per share as compared to $ 678,000 or $0.03 per share for the equivalent period in fiscal 1998. On a year to date basis, the company's net profit is $ 3.6 million or $ 0.13 per share before merger costs of $ 800,000 ($ 0.03 per share) related to the Clinserve & McKnight acquisitions under pooling of interest method, as compared to $ 3 million or $ 0.12 per share for the same period last year. Cash flow from operations before working capital changes increased 40% to $10.0 million, compared to $6.9 million in the second quarter of fiscal 1998. On a Canadian GAAP basis, the net loss was $ 395,000 in the second quarter of fiscal 1999 or $0.02 per share compared to a profit of $ 195,000 or $0.01 per share in the corresponding period of fiscal 1998. Gross margin was 38%, in line with the comparative prior year quarter. Dr. John Hooper, Chairman and CEO commented: The second quarter earnings are consistent with those forecasted in our February Press Release and we expect the earnings in the third quarter to improve and to continue to improve in the fourth quarter. The Chrysalis acquisition announced in November of 1998 is proceeding as planned with the Chrysalis shareholders meeting to approve the transaction scheduled for on April 30, 1999. If approved by Chrysalis shareholders, closing is expected to occur shortly thereafter. Chrysalis, is one of the world's 15 largest CROs, with strength in preclinical toxicology and pharmacology in Lyon, France and Scranton, Pennsylvania, and genomics services in Princeton, New Jersey (DNX Transgenics), and is expected to have a continuing Phase II-IV clinical research presence in Germany, Eastern Europe, and Israel, complementary to Phoenix's more substantial operations in this market segment. Phoenix International is a contract research organisation (CRO) providing a wide spectrum of clinical, analytical, preclinical, drug discovery support and ancillary services to the pharmaceutical and biotechnology industries. Since beginning its operations in 1989, Phoenix International has grown to approximately 2,000 employees, of whom more than 175 have either medical degrees or PhD's and over 225 others have masters degrees. This release contains "forward-looking" statements regarding future results and events, including statements regarding expected future revenues, earnings and growth rates and goals and operating plans of management. Phoenix's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Factors that may cause such a difference include, but are not limited to: the inability of Phoenix to win new business at the levels required; the cancellation or delay of contracts; risks associated with the management of growth and the ability to attract and retain employees; risks of integrating newly acquired businesses; competition; delays in the consummation of the Chrysalis acquisition; failure to realize fully expected costs savings from the Chrysalis acquisition; excess costs relating to the downsizing of Chrysalis; any claims for patent infringement; unanticipated costs in connection with Year 2000 conversion; the ability to obtain future financing; adverse regulatory developments; foreign exchange rate fluctuations; and uncertainty surrounding the Euro. FOR MORE INFORMATION, PLEASE CONTACT DAVID MOSZKOWSKI, C.A. Senior Vice-President and Chief Financial Officer Phoenix International Life Sciences Inc. Tel: (514) 333-0033 Fax: (514) 335-8351 E-mail: david@pils.com EX-99.2 3 EX-99.2 Exhibit 99.2 PHOENIX INTERNATIONAL LIFE SCIENCES INC. CONSOLIDATED STATEMENTS OF INCOME US GAAP Unaudited [In thousands of Canadian dollars except per share amounts]
Second Quarter Six Months 1999 1998 1999 1998 $ $ $ $ - ---------------------------------- -------------------------------------------------------------------------------- GROSS REVENUES 71,407 42,826 147,623 81,444 Reimbursed costs 15,001 7,249 30,503 11,106 ------------------------------- ------------- ------------ NET REVENUES 56,406 35,577 117,120 70,338 Direct costs - net of refundable tax credits 35,029 22,286 70,867 42,897 ------------------------------- ------------- ------------ GROSS PROFIT 21,377 13,291 46,253 27,441 ------------------------------- ------------- ------------ EXPENSES - NET OF REFUNDABLE TAX CREDITS Selling, general and administrative 19,145 10,939 37,305 21,435 Internal research and development 736 846 1,602 1,748 Interest expense 1,145 336 2,595 563 Amortization of goodwill 316 117 637 165 ------------------------------- ------------- ------------ 21,342 12,238 42,139 23,911 ------------------------------- ------------- ------------ Other income 314 47 560 200 Merger costs - - 800 - Non-refundable tax credits 750 200 2,250 800 ------------------------------- ------------- ------------ Income before income taxes 1,099 1,300 6,124 4,530 Income taxes 999 622 3,333 1,538 ------------------------------- ------------- ------------ NET INCOME FOR THE PERIOD 100 678 2,791 2,992 ------------------------------- ------------- ------------ BASIC EARNINGS PER SHARE 0(CENT) 3(CENT) 10(CENT) 12(CENT) ------------------------------- ------------- ------------ WEIGHTED AVERAGE SHARES OUTSTANDING 26,064,315 25,132,642 26,055,705 25,132,150 ------------------------------- ------------- ------------ BASIC EARNINGS PER SHARE BEFORE MERGER COSTS 0(CENT) 3(CENT) 13(CENT) 12(CENT) ------------------------------- ------------- ------------
PHOENIX INTERNATIONAL LIFE SCIENCES INC. CONSOLIDATED STATEMENTS OF INCOME CANADIAN GAAP Second Quarter ended February 28 Unaudited [In thousands of Canadian dollars except per share amounts]
Second Quarter Six Months 1999 1998 1999 1998 $ $ $ $ - --------------------------------------------------------------------------------------------------- GROSS REVENUES 71,407 39,744 145,570 75,280 Reimbursed costs 15,001 7,249 30,503 11,106 ------------- ------------- ------------ ------------- NET REVENUES 56,406 32,495 115,067 64,174 Direct costs - net of refundable tax credits 35,029 20,206 69,724 38,736 ------------- ------------- ------------ ------------- GROSS PROFIT 21,377 12,289 45,343 25,438 ------------- ------------- ------------ ------------- EXPENSES - NET OF REFUNDABLE TAX CREDITS Selling, general and administrative 19,145 10,188 36,665 19,934 Internal research and development 736 846 1,602 1,748 Goodwill Amortization 811 391 1,543 713 Interest expense 1,145 308 2,570 506 ------------- ------------- ------------ ------------- 21,837 11,733 42,380 22,901 ------------- ------------- ------------ ------------- Other income 314 47 560 199 Nonrefundable tax credits 750 200 2,250 800 ------------- ------------- ------------ ------------- Income (loss) before income taxes 604 803 5,773 3,536 Income taxes 999 608 3,314 1,510 ------------- ------------- ------------ ------------- NET INCOME (LOSS) (395) 195 2,459 2,026 ------------- ------------- ------------ ------------- BASIC INCOME (LOSS) PER SHARE (2(CENT)) 1(CENT) 10(CENT) 8(CENT) ------------- ------------- ------------ ------------- 26,064,315 24,290,186 25,607,259 24,289,694 ------------- ------------- ------------ -------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS CANADIAN GAAP For the six months ended February 28 Unaudited [In thousands of Canadian dollars]
1999 1998 $ $ - --------------------------------------------------------------------------------------------------- RETAINED EARNINGS, BEGINNING OF PERIOD 18,259 9,192 Net income 2,459 2,026 ------------ ------------- RETAINED EARNINGS, END OF PERIOD 20,718 11,218 ------------ -------------
PHOENIX INTERNATIONAL LIFE SCIENCES INC. CONSOLIDATED BALANCE SHEETS CANADIAN GAAP
Unaudited [In thousands of Canadian dollars] February 28 August 31 1999 1998 $ $ - ---------------------------------------------------------------------------------------- ASSETS CURRENT Cash 34,930 17,009 Marketable securities 2,550 2,000 Accounts receivable 43,378 47,712 Investment tax credits recoverable 4,822 3,362 Costs and estimated profit in excess of progress billings on contracts in progress 28,264 27,847 Other 8,893 6,846 -------------- ----------- 122,837 104,776 -------------- ----------- Capital assets 63,673 56,638 Other assets 126,241 110,056 -------------- ----------- 312,751 271,470 -------------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT Bank indebtedness 5,741 831 Accounts payable and accrued liabilities 59,661 52,041 Progress billings in excess of costs and estimated profit on contracts in progress 48,263 34,882 Current portion of long-term debt and capital lease obligations 7,497 7,080 -------------- ----------- 121,162 94,834 -------------- ----------- Long-term debt and capital lease obligations 41,200 42,440 Other deferred credits 3,761 4,243 -------------- ----------- 166,123 141,517 SHAREHOLDERS' EQUITY Capital stock 125,239 110,559 Retained earnings 20,718 18,259 Cumulative translation adjustment 671 1,135 -------------- ----------- 146,628 129,953 -------------- ----------- 312,751 271,470 -------------- -----------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FEBRUARY 28, 1999 1) THESE INTERIM FINANCIAL STATEMENTS ARE THE RESPONSIBILTY OF MANAGEMENT AND, IN ITS OPINION, INCLUDE ALL THE ADJUSTMENTS, WHICH ARE OF A NORMAL RECURRING NATURE, NECESSARY FOR A FAIR STATEMENT OF THE RESULTS FOR THE INTERIM PERIOD PRESENTED. 2) DILUTED EARNINGS PER SHARE HAVE NOT BEEN PRESENTED AS THEY DO NOT DIFFER MATERIALLY FROM BASIC EARNINGS PER SHARE. PHOENIX INTERNATIONAL LIFE SCIENCES INC. CONSOLIDATED STATEMENTS OF CASH FLOW CANADIAN GAAP
For the six months ended February 28, Unaudited [In thousands of Canadian dollars] 1999 1998 $ $ - ------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income 2,459 2,026 Items not affecting cash Amortization 7,562 4,896 ---------- ----------- 10,021 6,922 ---------- ----------- Net change in non-cash working capital items related to operations 21,709 225 ---------- ----------- CASH PROVIDED BY OPERATING ACTIVITIES 31,730 7,147 ---------- ----------- INVESTING ACTIVITIES Capital asset additions (10,989) (3,842) Acquistion of IRG - (32,640) Investment in Chrysalis (8,509) - Proceeds on disposal of KCAS 3,672 - Other assets (376) (94) ---------- ----------- CASH USED IN INVESTING ACTIVITIES (16,202) (36,576) ---------- ----------- FINANCING ACTIVITIES Assumption of long-term debt 7,200 44,548 Repayment of long-term debt (8,028) (1,335) Other deferred credits and long-term liabilities (482) 204 Issue of shares 212 11 Increase (decrease) in bank indebtedness 4,910 (606) Proceeds on sale (purchase) of marketable securities (550) 5,250 Repayment of debentures - (5,250) ---------- ----------- CASH PROVIDED BY FINANCING ACTIVITIES 3,262 42,822 ---------- ----------- Effect of exchange rate changes on cash (869) - INCREASE (DECREASE) IN CASH DURING THE PERIOD 17,921 13,393 Cash beginning of period 17,009 2,530 ---------- ----------- CASH END OF PERIOD 34,930 15,923 ---------- ----------- ---------- -----------
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