Covance Reports Second Quarter Net Revenue Growth of 8.0% to $639 Million, Pro Forma EPS Growth of 21.5% to $0.95 and Adjusted Net Orders of $773 Million

-- Updates FY2014 Pro Forma EPS Target to $3.78 to $3.92 --

Jul 29, 2014, 16:01 ET from Covance Inc.

PRINCETON, N.J., July 29, 2014 /PRNewswire/ -- Covance Inc. (NYSE: CVD) today reported results for its second quarter ended June 30, 2014.  Net revenue was $639 million, representing 8.0% growth from the second quarter of 2013.  On a GAAP basis, the company reported earnings of $0.29 per diluted share in the second quarter.  The company reported pro forma earnings per diluted share of $0.95, up 21.5% over the second quarter of 2013. Pro forma results exclude asset impairment charges totaling $52.6 million, or $0.61 per share, and charges associated with restructuring and other cost reduction actions totaling $4.2 million or $0.05 per share.

"In the second quarter, a stronger-than-expected performance in Early Development and continued strong growth in central laboratories more than offset lower-than-expected growth in clinical development, leading to year-on-year revenue growth of 8%, expanded pro forma operating margins of 11.9%, and a 21.5% year-on-year increase in pro forma EPS," said Joe Herring, Chairman and Chief Executive Officer. "Commercial performance strengthened from the first quarter, with second quarter adjusted net orders of $773 million resulting in an adjusted net book-to-bill of 1.21 to 1.  

"In Early Development, revenue of $231.2 million grew 7.7% year-on-year and 5.9% sequentially while pro forma operating margin increased 200 basis points year-on-year and 360 basis points sequentially to 13.3%. These better-than-expected results were driven by growth in demand for toxicology and pharmaceutical chemistry services, and continued strength in clinical pharmacology services.

"Late-Stage Development second quarter revenue grew 8.1% year-on-year to $408.3 million and pro forma operating margins were 22.1%, up 70 basis points from a year ago, but down 110 basis points from the strong first quarter margins on higher IT spending.  Central laboratories and clinical development grew 11% and 4%, respectively, and market access services resumed year-on-year growth.

"Looking ahead, we expect increases of a few cents in earnings per share in both the third and fourth quarter. We now expect 2014 revenue growth of 6% to 8% and pro forma diluted earnings per share of $3.78 to $3.92 (excluding the gain on sale, costs associated with our restructuring activities, asset impairment charges and assuming foreign exchange rates remain at June 30, 2014 levels)."

Consolidated Results

($ in millions except EPS)

2Q14

2Q13

Change

YTD14

YTD13

Change

Total Revenues

$687.1

$644.0

$1,353.4

$1,278.3

Less: Reimbursable Out-of-Pockets 

$47.6

$51.7

$93.9

$105.8

Net Revenues

$639.5

$592.3

8.0%

$1,259.5

$1,172.5

7.4%

Operating Income

$19.3

$51.5

(62.6%)

$86.2

$99.8

(13.6%)

   Operating Margin

3.0%

8.7%

6.8%

8.5%

Net Income

$16.9

$41.0

(58.7%)

$67.8

$89.2

(24.0%)

Diluted Earnings per Share

$0.29

$0.72

(59.2%)

$1.17

$1.58

(25.5%)

Restructuring Costs

($4.2)

($6.0)

($8.3)

($12.2)

Asset Impairments

($52.6)

-

($52.6)

-

Operating Income, excluding items*

$76.0

$57.5

32.2%

$147.1

$ 111.9

31.4%

  Operating Margin, excluding items*

11.9%

9.7%

11.7%

9.5%

Gain on Sale of Business/Investment

-

$0.7

$1.6

$16.4

Net Income, excluding items*

$54.7

$44.5

22.9%

$107.0

$86.8

23.3%

Diluted EPS, excluding items*

$0.95

$0.78

21.5%

$1.85

$1.53

20.8%

* See attached pro forma income statements for reconciliation of 2014 and 2013 GAAP to pro forma amounts.

Operating Segment Results

Early Development

($ in millions)

2Q14

2Q13

Change

YTD14

YTD13

Change

Net Revenues

$231.2

$214.6

7.7%

$449.4

$421.9

6.5%

Operating Income (Loss)

($22.4)

$21.9

n/c

($2.9)

$38.4

n/c

Operating Margin

(9.7%)

10.2%

(0.7%)

9.1%

Restructuring Costs

($0.7)

($2.3)

($2.3)

($5.9)

Asset Impairments

($52.6)

($52.6)

Operating Income, excluding items

$30.8

$24.2

27.1%

$51.9

$44.3

17.1%

Operating Margin, excluding items

13.3%

11.3%

11.5%

10.5%

The Early Development segment includes preclinical toxicology, analytical chemistry, clinical pharmacology, discovery support, and research products.  Net revenues in the second quarter of 2014 increased 7.7% year-on-year to $231.2 million, as strong growth in clinical pharmacology, toxicology and pharmaceutical chemistry services more than offset a decline in discovery support and the impact of the sale of our Seattle genomics laboratory. In the quarter, foreign exchange favorably impacted year-on-year revenue growth by 250 basis points. Sequentially, revenue increased by $13.0 million from the first quarter on continued strength in clinical pharmacology and a rebound in toxicology and pharmaceutical chemistry services.

GAAP operating loss in the second quarter of 2014 was $22.4 million, and included non-cash asset impairments totaling $52.6 million, associated primarily with the company's Chandler, Arizona facility, and $0.7 million in costs associated with our restructuring and cost reduction actions.  This compares to operating income of $21.9 million in the second quarter of 2013, which included charges associated with restructuring and other cost reduction actions of $2.3 million.  Pro forma operating income, excluding these items, was $30.8 million in the second quarter of this year, a 27.1% increase from the second quarter of 2013. Pro forma operating margins were 13.3% in the second quarter of this year, versus 11.3% in the second quarter of 2013 and 9.7% last quarter.  The sequential increase in pro forma operating income was driven by the rebound in toxicology and pharmaceutical chemistry services and continued strength in clinical pharmacology. 

Late-Stage Development                

($ in millions)

2Q14

2Q13

Change

YTD14

YTD13

Change

Net Revenues

$408.3

$377.7

8.1%

$810.1

$750.6

7.9%

Operating Income

$87.1

$79.5

9.5%

$180.1

$162.4

10.9%

Operating Margin

21.3%

21.0%

22.2%

21.6%

Restructuring Costs

($3.1)

($1.4)

($3.4)

($3.3)

Operating Income, excluding items

$90.2

$80.9

11.5%

$183.5

$165.7

10.7%

Operating Margin, excluding items

22.1%

21.4%

22.7%

22.1%

The Late-Stage Development segment includes central laboratory, Phase IIb-IV clinical development, and market access services.  Net revenues for the second quarter of 2014 grew 8.1% year-on-year to $408.3 million, a sequential increase of $6.4 million from the first quarter level. In the quarter, foreign exchange favorably impacted year-over-year revenue growth by 270 basis points. Year-over-year growth was primarily driven by central laboratories and market access services. Sequentially, growth in central laboratories more than offset a decline in clinical development services.

Operating income for the second quarter was $87.1 million on a GAAP basis and included $3.1 million in costs associated with our restructuring and cost reduction actions.  On a pro forma basis, operating income was $90.2 million, up 11.5% year-over-year led by clinical development and central laboratory services, and down from the $93.3 million delivered last quarter. Pro forma operating margins expanded to 22.1% for the second quarter of 2014, up from 21.4% last year, but down from the very strong 23.2% last quarter on increased IT operating expense.    

Corporate Information

The company reported second quarter adjusted net orders of $773 million. Backlog at June 30, 2014 was $6.92 billion compared to $6.90 billion at March 31, 2014 and $6.73 billion at June 30, 2013. Backlog was negatively impacted in the quarter by a $23 million foreign exchange headwind. 

Corporate expenses totaled $45.4 million in the second quarter of 2014 (including $0.4 million in restructuring and other cost reduction actions) versus $45.6 million last quarter (including $2.3 million in restructuring and other cost reduction actions) and $49.9 million (including $2.3 million in restructuring and other cost reduction actions) in the second quarter of 2013. On a pro forma basis, excluding these costs, corporate spending was $45.0 million or 7.0% of net revenue in the second quarter of 2014 versus $43.4 million or 7.0% of net revenue last quarter and $47.6 million or 8.0% of net revenue in the second quarter of 2013.  The sequential increase was driven by higher IT operating expense while the decline from last year was driven by higher incentive compensation expense in the 2013 period. 

Cash, cash equivalents, and short-term investments at June 30, 2014 were $648 million compared to $660 million at March 31, 2014 and $446 million at June 30, 2013.  Free cash flow (defined as operating cash flow less capital expenditures) for the second quarter of 2014 was $30 million, consisting of operating cash flow of $68 million less capital expenditures of $38 million.  Year-to-date free cash flow was negative $76 million, consisting of operating cash flow of negative $3 million less capital expenditures of $73 million.  We continue to expect full year free cash flow of approximately $130 million, net of capital expenditures of approximately $160 million.  The free cash flow target for 2014 assumes net DSO at 40 days at December 31, 2014.

In the second quarter, the company repurchased $75 million of its common stock. Debt outstanding increased to $290 million, up $40 million from March 31, 2014. 

Net Days Sales Outstanding (DSO) were 45 days at June 30, 2014 compared to 38 days at March 31, 2014 and 48 days at June 30, 2013.

The pro forma effective tax rate in the second quarter was 23.7% and is expected to be approximately 24% for the remainder of 2014.

The Company's investor conference call will be webcast on July 30 at 9:30 am ET.  Management's commentary and presentation slides will be available through www.covance.com.  

Covance, the world's most comprehensive drug development company and a leader in nutritional analysis, is dedicated to advancing healthcare and delivering Solutions Made Real.  The company, headquartered in Princeton, New Jersey, has annual revenues greater than $2.4 billion and more than 12,500 employees located in over 60 countries. Information on Covance's solutions, recent press releases, and SEC filings can be obtained through its website at www.covance.com.

Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.  These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss or delay of large studies, risks associated with acquisitions and investments, the Company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, testing mix and geographic mix of kit receipts in central laboratories, fluctuations in currency exchange rates, the realization of savings from the Company's announced restructuring actions, the cost and pace of completion of our information technology projects and the realization of benefits therefrom, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.  The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

Financial Exhibits Follow

COVANCE INC.

CONSOLIDATED INCOME STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(Dollars in thousands, except per share data)

(UNAUDITED)

Three Months Ended June 30

Six Months Ended June 30

2014

2013

2014

2013

Net revenues

$          639,456

$           592,298

$   1,259,508

$   1,172,497

Reimbursable out-of-pocket expenses

47,652

51,678

93,888

105,814

     Total revenues

687,108

643,976

1,353,396

1,278,311

Costs and expenses:

  Cost of revenue

446,659

419,115

879,212

830,459

  Reimbursable out-of-pocket expenses

47,652

51,678

93,888

105,814

  Selling, general and administrative

87,324

90,177

174,606

179,396

  Depreciation and amortization

33,645

31,496

66,974

62,881

  Impairment charges

52,564

-

52,564

-

        Total costs and expenses

667,844

(a)

592,466

(c)

1,267,244

(b)

1,178,550

(d)

Income from operations

19,264

(a)

51,510

(c)

86,152

(b)

99,761

(d)

Other expense (income), net:

  Interest expense, net

2,809

1,004

5,257

1,875

  Foreign exchange transaction loss, net

1,542

694

1,944

1,029

  Gain on sale of business

-

-

(1,648)

-

  Gain on sale of investments

-

(707)

-

(16,400)

        Other expense (income), net

4,351

991

(c)

5,553

(b)

(13,496)

(d)

Income before taxes

14,913

(a)

50,519

(c)

80,599

(b)

113,257

(d)

Tax (benefit) expense

(2,024)

(a)

9,525

(c)

12,846

(b)

24,097

(d)

Net income

$            16,937

(a)

$            40,994

(c)

$        67,753

(b)

$        89,160

(d)

Basic earnings per share

$                0.30

(a)

$                0.75

(c)

$            1.22

(b)

$            1.64

(d)

Weighted average shares outstanding - basic

55,556,218

54,662,093

55,618,752

54,434,563

Diluted earnings per share

$                0.29

(a)

$                0.72

(c)

$            1.17

(b)

$            1.58

(d)

Weighted average shares outstanding - diluted

57,549,868

56,880,115

57,769,847

56,598,936

(a) Three months ended June 30, 2014 includes, as applicable, $52,564 in asset impairment charges ($34,866 net of tax) and $4,198 in charges associated with restructuring and other cost reduction actions ($2,864 net of tax).

(b) Six months ended June 30, 2014 includes, as applicable, $52,564 in asset impairment charges ($34,866 net of tax), $8,336 in charges associated with restructuring and other cost reduction actions ($5,451 net of tax) and $1,648 gain on sale of certain assets of Genomics Laboratory ($1,033 net of tax).

(c) Three months ended June 30, 2013 includes, as applicable, $6,013 in charges associated with restructuring and other cost reduction actions ($3,942 net of tax), and $707 gain on sale of investment ($460 net of tax).

(d) Six months ended June 30, 2013 includes, as applicable, $12,183 in charges associated with restructuring and other cost reduction actions ($8,289 net of tax), and $16,400 gain on sale of investments ($10,654 net of tax).

Excluding the impact of impairment charges, charges associated with restructuring and other cost reduction actions, gain on sale of business and gain on sale of investments, as applicable:

Income from operations

$            76,026

$            57,523

$      147,052

$      111,944

Taxes on income

$            17,008

$            11,349

$        32,814

$        22,245

Net income 

$            54,667

$            44,476

$      107,037

$        86,795

Basic earnings per share

$                0.98

$                0.81

$            1.92

$            1.59

Diluted earnings per share

$                0.95

$                0.78

$            1.85

$            1.53

 

 

COVANCE INC.

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2014 and DECEMBER 31, 2013

(Dollars in thousands)

June 30

December 31

2014

2013

(UNAUDITED)

ASSETS

Current Assets:

Cash & cash equivalents

$       536,009

$      617,686

Short-term investments

111,844

111,359

Accounts receivable, net

355,272

331,815

Unbilled services

162,396

141,707

Inventory

52,429

48,257

Deferred income taxes

54,211

51,543

Prepaid expenses and other current assets

233,574

201,621

    Total Current Assets

1,505,735

1,503,988

Property and equipment, net

875,977

913,612

Goodwill

118,581

109,820

Other assets

38,351

29,168

    Total Assets

$    2,538,644

$   2,556,588

LIABILITIES and STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$         83,048

$        59,713

Accrued payroll and benefits

123,122

170,806

Accrued expenses and other current liabilities

111,889

153,808

Unearned revenue

202,560

240,398

Short-term debt 

40,000

-

Income taxes payable

20,572

7,952

    Total Current Liabilities

581,191

632,677

Long-term debt

250,000

250,000

Deferred income taxes

13,402

32,035

Other liabilities

78,378

76,630

    Total Liabilities

922,971

991,342

Stockholders' Equity:

Common stock

824

809

Paid-in capital

943,652

859,535

Retained earnings

1,847,586

1,779,833

Accumulated other comprehensive income

37,708

25,746

Treasury stock

(1,214,097)

(1,100,677)

    Total Stockholders' Equity

1,615,673

1,565,246

    Total Liabilities and Stockholders'  Equity

$    2,538,644

$   2,556,588

 

COVANCE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(Dollars in thousands)

(UNAUDITED)

Six Months Ended June 30

2014

2013

Cash flows from operating activities:

  Net income

$          67,753

$          89,160

  Adjustments to reconcile net income to net cash used in

    operating activities:

    Depreciation and amortization

66,974

62,881

    Non-cash impairment charges

52,564

-

    Non-cash compensation expense associated with employee benefit

       and stock compensation plans

19,726

19,311

    Deferred income tax benefit

(21,571)

(5,712)

    Gain on sale of business

(1,648)

-

    Gain on sale of investments

-

(16,400)

    Loss on disposal of property and equipment

333

375

    Changes in operating assets and liabilities, net of businesses sold

       and acquired:

       Accounts receivable

(22,552)

(57,095)

       Unbilled services

(20,575)

(17,467)

       Inventory

(5,029)

1,323

       Accounts payable

23,288

18,312

       Accrued liabilities

(91,862)

(45,470)

       Unearned revenue

(37,867)

(14,095)

       Income taxes

17,504

6,736

       Other assets and liabilities, net

(49,562)

(44,441)

Net cash used in operating activities

(2,524)

(2,582)

Cash flows from investing activities:

  Capital expenditures

(73,023)

(68,433)

  Acquisition of business, net of cash acquired

(8,403)

-

  Proceeds from sale of business

8,429

-

  Proceeds from sale of investments

-

17,781

  Other, net

-

394

Net cash used in investing activities

(72,997)

(50,258)

Cash flows from financing activities:

  Net borrowings under revolving credit facility

40,000

5,000

  Stock issued under option plans

59,118

40,226

  Purchase of treasury stock

(113,420)

(27,118)

Net cash (used in) provided by financing activities

(14,302)

18,108

Effect of exchange rate changes on cash

8,146

(12,492)

Net change in cash and cash equivalents

(81,677)

(47,224)

Cash and cash equivalents, beginning of period

617,686

492,824

Cash and cash equivalents, end of period

$        536,009

$        445,600

 

COVANCE INC.

GAAP to Pro Forma Reconciliation

Q2 2014

(Dollars in thousands, except per share data)

(UNAUDITED)

Adjustments

GAAP

 Restructuring

and Other Cost

Reduction

 Activities (1)

Other Items (2)

Pro Forma

Net revenues

$      639,456

$      639,456

Reimbursable out-of-pocket expenses

47,652

47,652

     Total revenues

687,108

-

-

687,108

Costs and expenses:

  Cost of revenue

446,659

446,659

  Reimbursable out-of-pocket expenses

47,652

47,652

  Selling, general and administrative

87,324

(3,784)

83,540

  Depreciation and amortization

33,645

(414)

33,231

  Impairment charges

52,564

(52,564)

-

        Total costs and expenses

667,844

(4,198)

(52,564)

611,082

Income from operations

19,264

4,198

52,564

76,026

Other expense, net:

  Interest expense, net

2,809

2,809

  Foreign exchange transaction loss, net

1,542

1,542

        Other expense, net

4,351

-

-

4,351

Income before taxes

14,913

4,198

52,564

71,675

Tax (benefit) expense

(2,024)

1,334

17,698

17,008

Net income 

$        16,937

$            2,864

$          34,866

$        54,667

Basic earnings per share

$            0.30

$              0.05

$              0.63

$            0.98

Weighted average shares outstanding - basic

55,556,218

55,556,218

55,556,218

55,556,218

Diluted earnings per share

$            0.29

$              0.05

$              0.61

$            0.95

Weighted average shares outstanding - diluted

57,549,868

57,549,868

57,549,868

57,549,868

(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure.

(2) Represents asset impairment charges.

 

 

COVANCE INC.

GAAP to Pro Forma Reconciliation

Q2 2013

(Dollars in thousands, except per share data)

(UNAUDITED)

Adjustments

GAAP

 Restructuring

and Other Cost

Reduction

Activities (1)

Other Items (2)

Pro Forma

Net revenues

$     592,298

$     592,298

Reimbursable out-of-pocket expenses

51,678

51,678

     Total revenues

643,976

-

-

643,976

Costs and expenses:

  Cost of revenue

419,115

419,115

  Reimbursable out-of-pocket expenses

51,678

51,678

  Selling, general and administrative

90,177

(5,428)

84,749

  Depreciation and amortization

31,496

(585)

30,911

        Total costs and expenses

592,466

(6,013)

-

586,453

Income from operations

51,510

6,013

-

57,523

Other expense, net:

  Interest expense, net

1,004

1,004

  Foreign exchange transaction loss, net

694

694

  Gain on sale of investment

(707)

707

-

        Other expense, net

991

-

707

1,698

Income before taxes

50,519

6,013

(707)

55,825

Taxes on income

9,525

2,071

(247)

11,349

Net income 

$      40,994

$                3,942

$            (460)

$      44,476

Basic earnings per share

$          0.75

$                 0.07

$           (0.01)

$          0.81

Weighted average shares outstanding - basic

54,662,093

54,662,093

54,662,093

54,662,093

Diluted earnings per share

$          0.72

$                 0.07

$           (0.01)

$          0.78

Weighted average shares outstanding - diluted

56,880,115

56,880,115

56,880,115

56,880,115

(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure.

(2) Represents gain on sale of investment.

 

COVANCE INC.

GAAP to Pro Forma Reconciliation

YTD Q2 2014

(Dollars in thousands, except per share data)

(UNAUDITED)

Adjustments

GAAP

 Restructuring

and Other

Cost

Reduction

Activities (1)

Other Items (2)

Pro Forma

Net revenues

$   1,259,508

$   1,259,508

Reimbursable out-of-pocket expenses

93,888

93,888

     Total revenues

1,353,396

-

-

1,353,396

Costs and expenses:

  Cost of revenue

879,212

879,212

  Reimbursable out-of-pocket expenses

93,888

93,888

  Selling, general and administrative

174,606

(7,504)

167,102

  Depreciation and amortization

66,974

(832)

66,142

  Impairment charges

52,564

(52,564)

-

        Total costs and expenses

1,267,244

(8,336)

(52,564)

1,206,344

Income from operations

86,152

8,336

52,564

147,052

Other expense, net:

  Interest expense, net

5,257

5,257

  Foreign exchange transaction loss, net

1,944

1,944

  Gain on sale of business

(1,648)

1,648

-

        Other expense, net

5,553

-

1,648

7,201

Income before taxes

80,599

8,336

50,916

139,851

Taxes on income

12,846

2,885

17,083

32,814

Net income 

$        67,753

$            5,451

$          33,833

$      107,037

Basic earnings per share

$            1.22

$              0.10

$              0.61

$            1.92

Weighted average shares outstanding - basic

55,618,752

55,618,752

55,618,752

55,618,752

Diluted earnings per share

$            1.17

$              0.09

$              0.59

$            1.85

Weighted average shares outstanding - diluted

57,769,847

57,769,847

57,769,847

57,769,847

(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure.

(2) Represents asset impairment charges $52,564 and gain on sale of business $1,648.

 

 

COVANCE INC.

GAAP to Pro Forma Reconciliation

YTD Q2 2013

(Dollars in thousands, except per share data)

(UNAUDITED)

Adjustments

GAAP

 Restructuring

and Other Cost

Reduction

Activities (1)

Other Items (2)

Pro Forma

Net revenues

$  1,172,497

$  1,172,497

Reimbursable out-of-pocket expenses

105,814

105,814

     Total revenues

1,278,311

-

-

1,278,311

Costs and expenses:

  Cost of revenue

830,459

830,459

  Reimbursable out-of-pocket expenses

105,814

105,814

  Selling, general and administrative

179,396

(10,101)

169,295

  Depreciation and amortization

62,881

(2,082)

60,799

        Total costs and expenses

1,178,550

(12,183)

-

1,166,367

Income from operations

99,761

12,183

-

111,944

Other (income) expense, net:

  Interest expense, net

1,875

1,875

  Foreign exchange transaction loss, net

1,029

1,029

  Gain on sale of investments

(16,400)

16,400

-

        Other (income) expense, net

(13,496)

-

16,400

2,904

Income before taxes

113,257

12,183

(16,400)

109,040

Taxes on income

24,097

3,894

(5,746)

22,245

Net income 

$      89,160

$                8,289

$       (10,654)

$      86,795

Basic earnings per share

$          1.64

$                 0.15

$           (0.20)

$          1.59

Weighted average shares outstanding - basic

54,434,563

54,434,563

54,434,563

54,434,563

Diluted earnings per share

$          1.58

$                 0.15

$           (0.19)

$          1.53

Weighted average shares outstanding - diluted

56,598,936

56,598,936

56,598,936

56,598,936

(1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure.

(2) Represents gain on sale of investments.

 

 

 

 

SOURCE Covance Inc.



RELATED LINKS

http://www.covance.com