PPD Delivers 30.8% Revenue and 110% EPS Growth in the First Quarter of 2001; Announces One for One Stock Dividend

Apr 16, 2001, 01:00 ET from PPD, Inc.

    WILMINGTON, N.C., April 16 /PRNewswire/ -- PPD, Inc. (Nasdaq: PPDI) today
 reported its quarterly financial and operating results for the period ending
 March 31, 2001.  Earnings per diluted share were $0.56, representing an
 increase of 110% over comparable earnings reported for the first quarter of
 2000.
     Net revenues for the first quarter of 2001 increased to $107 million, a
 30.8% growth over first quarter 2000 and an 18.5% growth over fourth quarter
 2000.  The operating margin for the first quarter of 2001 reached a historical
 high of 19.9%, driven by the financial impact of the sublicensing of the
 compound, dapoxetine, to Alza Corporation, continued improvement in gross
 margin for the Phase II-IV activities, and strong performance within the
 analytical laboratories.
     New authorizations for the first quarter of 2001 totaled $165 million, a
 24.4% increase over the same period of 2000.  The company's cash position was
 also expanded, driven primarily by a strong cash flow from operations of $26.2
 million.  Net days sales outstanding for the first quarter of 2001 were 37
 days versus 51 days for the fourth quarter of 2000.
     "We are pleased to again deliver to our shareholders a solid financial
 performance," stated Dr. Fred Eshelman, chief executive officer of PPD.  "We
 continue to focus on key objectives, including customer expansion and
 penetration, quality performance, and technology innovations that add value to
 our clients.  Our PPD DirectConnect(TM) initiative announced earlier today
 illustrates a practical approach to using web-based technologies to enhance
 the quality and speed of clinical trials in a cost-effective way.  In
 addition, through our PPD Discovery subsidiary we continue to build our
 intellectual property base, which we believe will create long-term value for
 our shareholders."
     The company also announced that it has declared a one for one stock
 dividend.  The record date for the dividend is April 27, 2001, and the
 distribution date for the dividend is May 11, 2001.  Following this stock
 split, earnings per diluted share will be $0.28 for the first quarter of 2001
 and $0.13 for the same period of 2000.
     "Our consistent performance over the past several quarters and our
 confidence in the future prospects for PPD have prompted our board of
 directors to declare this dividend," said Dr. Eshelman.  "Our management team
 remains dedicated to the delivery of innovative quality services and products
 which enhance our client relationships and drive our financial performance."
     PPD is a leading global provider of discovery and development services and
 products for the pharmaceutical and biotechnology industries.  With a
 corporate mission to provide services that maximize the return on clients' R&D
 investments, PPD provides innovative technologies, therapeutic expertise and
 comprehensive services for drug discovery and preclinical programs, Phase I-IV
 clinical development and post-market support.  The company has more than 3,800
 professionals in 47 facilities in 19 countries around the world.  For more
 information of PPD, see our Web site at http://www.ppdi.com.
     PPD will host its First Quarter 2001 earnings conference call on Tuesday,
 April 17, 2001, at 9:00 a.m. Eastern time.  This call will be broadcast live
 over the Internet and can be accessed by all interested parties through the
 Investors section of the company's Web site at http://www.ppdi.com.  For those
 unable to listen to the live broadcast, the call will be archived on the
 company Web site until 5:00 p.m. Eastern time on May 1, 2001.
     Except for historical information, all of the statements, expectations and
 assumptions contained in the foregoing, including expectations about future
 financial performance of the company, are forward-looking statements that
 involve a number of risks and uncertainties.  Although the company has used
 its best efforts to be accurate in making those forward-looking statements, it
 is possible that the assumptions made by management may not materialize.  In
 addition, other important factors which could cause results to differ
 materially include the following: economic conditions in the pharmaceutical
 and biotechnology industries; outsourcing trends in the pharmaceutical and
 biotechnology industries; risks associated with acquisitions; loss of large
 contracts; competition within the outsourcing industry; continued success in
 sales growth; the ability to attract and retain key personnel; and the other
 risk factors set forth from time to time in the company's SEC filings, copies
 of which are available upon request from the company's investor relations
 department.
 
                                     PPD, Inc.
                           Statement of Operations Data
                     (in thousands, except per share amounts)
                                    (unaudited)
 
 
 
                                                        Three Months Ended
                                                              March 31,
                                                       2001              2000
     Net revenue:
       Development                                $  93,772         $  78,365
       Discovery sciences                            13,181             3,396
       Total net revenue                            106,953            81,761
 
     Direct costs:
       Development                                   45,235            40,198
       Discovery sciences                             5,316             1,215
       Total direct costs                            50,551            41,413
 
     Research and development                           759               766
     Selling, general and administrative             29,586            26,292
     Depreciation and amortization                    4,811             3,998
     Income from operations                          21,246             9,292
 
     Other income, net                                1,789             1,395
 
     Income before income taxes                      23,035            10,687
     Provision for income taxes                       8,498             4,047
 
     Net income                                   $  14,537         $   6,640
 
     Net income per share:
                Basic                             $    0.57         $    0.27
                Diluted                           $    0.56         $    0.27
 
     Weighted average number of
       shares outstanding:
                Basic                                25,633            24,748
                Diluted                              26,039            24,945
 
 
                                    PPD, Inc.
                                Balance Sheet Data
                                  (in thousands)
                                    (unaudited)
 
                                                  March 31,        December 31,
                                                      2001              2000
 
     Cash and cash equivalents                    $ 106,184         $  76,411
     Working capital                              $ 133,532         $ 106,903
     Total assets                                 $ 382,975         $ 344,915
     Long-term debt, including current
      portion                                     $   2,715         $   1,967
     Shareholders' equity                         $ 259,585         $ 233,943
 
 

SOURCE PPD, Inc.
    WILMINGTON, N.C., April 16 /PRNewswire/ -- PPD, Inc. (Nasdaq: PPDI) today
 reported its quarterly financial and operating results for the period ending
 March 31, 2001.  Earnings per diluted share were $0.56, representing an
 increase of 110% over comparable earnings reported for the first quarter of
 2000.
     Net revenues for the first quarter of 2001 increased to $107 million, a
 30.8% growth over first quarter 2000 and an 18.5% growth over fourth quarter
 2000.  The operating margin for the first quarter of 2001 reached a historical
 high of 19.9%, driven by the financial impact of the sublicensing of the
 compound, dapoxetine, to Alza Corporation, continued improvement in gross
 margin for the Phase II-IV activities, and strong performance within the
 analytical laboratories.
     New authorizations for the first quarter of 2001 totaled $165 million, a
 24.4% increase over the same period of 2000.  The company's cash position was
 also expanded, driven primarily by a strong cash flow from operations of $26.2
 million.  Net days sales outstanding for the first quarter of 2001 were 37
 days versus 51 days for the fourth quarter of 2000.
     "We are pleased to again deliver to our shareholders a solid financial
 performance," stated Dr. Fred Eshelman, chief executive officer of PPD.  "We
 continue to focus on key objectives, including customer expansion and
 penetration, quality performance, and technology innovations that add value to
 our clients.  Our PPD DirectConnect(TM) initiative announced earlier today
 illustrates a practical approach to using web-based technologies to enhance
 the quality and speed of clinical trials in a cost-effective way.  In
 addition, through our PPD Discovery subsidiary we continue to build our
 intellectual property base, which we believe will create long-term value for
 our shareholders."
     The company also announced that it has declared a one for one stock
 dividend.  The record date for the dividend is April 27, 2001, and the
 distribution date for the dividend is May 11, 2001.  Following this stock
 split, earnings per diluted share will be $0.28 for the first quarter of 2001
 and $0.13 for the same period of 2000.
     "Our consistent performance over the past several quarters and our
 confidence in the future prospects for PPD have prompted our board of
 directors to declare this dividend," said Dr. Eshelman.  "Our management team
 remains dedicated to the delivery of innovative quality services and products
 which enhance our client relationships and drive our financial performance."
     PPD is a leading global provider of discovery and development services and
 products for the pharmaceutical and biotechnology industries.  With a
 corporate mission to provide services that maximize the return on clients' R&D
 investments, PPD provides innovative technologies, therapeutic expertise and
 comprehensive services for drug discovery and preclinical programs, Phase I-IV
 clinical development and post-market support.  The company has more than 3,800
 professionals in 47 facilities in 19 countries around the world.  For more
 information of PPD, see our Web site at http://www.ppdi.com.
     PPD will host its First Quarter 2001 earnings conference call on Tuesday,
 April 17, 2001, at 9:00 a.m. Eastern time.  This call will be broadcast live
 over the Internet and can be accessed by all interested parties through the
 Investors section of the company's Web site at http://www.ppdi.com.  For those
 unable to listen to the live broadcast, the call will be archived on the
 company Web site until 5:00 p.m. Eastern time on May 1, 2001.
     Except for historical information, all of the statements, expectations and
 assumptions contained in the foregoing, including expectations about future
 financial performance of the company, are forward-looking statements that
 involve a number of risks and uncertainties.  Although the company has used
 its best efforts to be accurate in making those forward-looking statements, it
 is possible that the assumptions made by management may not materialize.  In
 addition, other important factors which could cause results to differ
 materially include the following: economic conditions in the pharmaceutical
 and biotechnology industries; outsourcing trends in the pharmaceutical and
 biotechnology industries; risks associated with acquisitions; loss of large
 contracts; competition within the outsourcing industry; continued success in
 sales growth; the ability to attract and retain key personnel; and the other
 risk factors set forth from time to time in the company's SEC filings, copies
 of which are available upon request from the company's investor relations
 department.
 
                                     PPD, Inc.
                           Statement of Operations Data
                     (in thousands, except per share amounts)
                                    (unaudited)
 
 
 
                                                        Three Months Ended
                                                              March 31,
                                                       2001              2000
     Net revenue:
       Development                                $  93,772         $  78,365
       Discovery sciences                            13,181             3,396
       Total net revenue                            106,953            81,761
 
     Direct costs:
       Development                                   45,235            40,198
       Discovery sciences                             5,316             1,215
       Total direct costs                            50,551            41,413
 
     Research and development                           759               766
     Selling, general and administrative             29,586            26,292
     Depreciation and amortization                    4,811             3,998
     Income from operations                          21,246             9,292
 
     Other income, net                                1,789             1,395
 
     Income before income taxes                      23,035            10,687
     Provision for income taxes                       8,498             4,047
 
     Net income                                   $  14,537         $   6,640
 
     Net income per share:
                Basic                             $    0.57         $    0.27
                Diluted                           $    0.56         $    0.27
 
     Weighted average number of
       shares outstanding:
                Basic                                25,633            24,748
                Diluted                              26,039            24,945
 
 
                                    PPD, Inc.
                                Balance Sheet Data
                                  (in thousands)
                                    (unaudited)
 
                                                  March 31,        December 31,
                                                      2001              2000
 
     Cash and cash equivalents                    $ 106,184         $  76,411
     Working capital                              $ 133,532         $ 106,903
     Total assets                                 $ 382,975         $ 344,915
     Long-term debt, including current
      portion                                     $   2,715         $   1,967
     Shareholders' equity                         $ 259,585         $ 233,943
 
 SOURCE  PPD, Inc.