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 --

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

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.