Quintiles Reports 1st Quarter 2001 Earnings; Exceeds Analysts' Consensus Expectations for EPS

GAAP EPS of $0.06, Pro Forma EPS of $0.10



Apr 18, 2001, 01:00 ET from Quintiles Transnational Corp.

    RESEARCH TRIANGLE PARK, N.C., April 18 /PRNewswire/ --
     Quintiles Transnational Corp. (Nasdaq:   QTRN) today announced financial
 results for first quarter 2001.  Net revenue for the quarter ended
 March 31, 2001, was $404.5 million compared to $414.8 million for first
 quarter 2000.  Net income for the quarter was $7.8 million compared to a loss
 of $26.6 million for first quarter 2000.  First quarter 2001 earnings per
 share were $0.06 compared to a loss of $0.23 per share for first quarter 2000.
 Pro forma net income was $11.8 million for first quarter 2001, or $0.10 per
 share on a diluted basis, compared to pro forma income from continuing
 operations of $3.9 million, or $0.03 per share on a diluted basis, for first
 quarter 2000.  Pro forma figures exclude expenses related to the company's
 Internet initiative and year 2000 restructuring.
     On a sequential quarterly basis, first quarter 2001 net revenue of
 $404.5 million compared to $409.6 million for the fourth quarter 2000.  Net
 income for the quarter of $7.8 million, or $0.06 per share on a diluted basis,
 compared to net income of $6.6 million, or $0.06 per share on a diluted basis,
 for fourth quarter 2000.  Pro forma net income and diluted earnings per share
 for first quarter 2001 were unchanged from fourth quarter 2000.
     "We're pleased that we exceeded analysts' EPS expectations," said
 Quintiles Chairman Dennis Gillings, Ph.D.  "The quarter saw a number of
 significant events, including our announcement that Pam Kirby would join
 Quintiles as chief executive officer effective April 2.  I welcome Pam's
 leadership and the customer perspective that she brings to our organization.
     "The first quarter also saw our corporate ventures group, PharmaBio
 Development, help facilitate several deals tied to the product development and
 commercialization sides of our business.  One such deal was our previously
 announced gain-sharing alliance with Scios to commercialize its lead product,
 Natrecor.  We are targeting more of these deals in 2001."
     Kirby, who joined Quintiles from the pharmaceutical division of F.
 Hoffmann-La Roche Ltd., in Basel, Switzerland, said:  "In general we're seeing
 a pickup in new business in the marketplace in early and later phase product
 development.  If early phase work is an indicator of what comes later in the
 pipeline, this could signal more clinical business for our industry in the
 second half of the year."
     Quintiles Transnational Chief Financial Officer Jim Bierman said:  "We're
 pleased to have achieved $60 million in cash flow from operations during the
 first quarter, following the record cash flow from operations that we reported
 last quarter."
     In other first quarter developments, Quintiles repurchased 100,000 shares
 of its common stock for an aggregate price of approximately $1.7 million as
 part of its previously announced stock repurchase program.
     Supplemental financial information is available now under "Additional
 Financials" in the Investors section of Quintiles' Web site,
 www.quintiles.com/investors/additional_financials.
     Quintiles Transnational's first quarter 2001 financial briefing will be
 held at 11 a.m. EDT on Thursday, April 19, and will be broadcast live over the
 Web.  Interested parties can access the Webcast at
 http://www.quintiles.com/investors/broadcast_center.  Additionally, a replay
 of the Webcast will be available via the same link about two hours after
 completion of the call.  The replay will be available through 5 p.m., Friday,
 May 4, 2001.
     Quintiles Transnational is the world's leading provider of information,
 technology and services to help bring new medicines to patients faster and
 improve healthcare.  Headquartered near Research Triangle Park, North
 Carolina, Quintiles employs a global workforce of 18,000 in 39 countries.
 Quintiles Transnational is a member of the S&P 500 and Fortune 1000.  For more
 information visit the company's Web site at www.quintiles.com.
     Schedules attached to this release are an integral part of this release.
 Information in this press release contains "forward-looking statements" about
 Quintiles.  These statements involve risks and uncertainties that could cause
 actual results to differ materially, including without limitation, the risk
 the market for our products and services will not grow as we expect, the risk
 that our PharmaBio transactions will not generate revenues or profit at the
 rate or levels we anticipate, our ability to efficiently distribute backlog
 among therapeutic business units and match demand to resources, actual
 operating performance, the actual savings and operating improvements resulting
 from the restructuring, the ability to maintain large client contracts or to
 enter into new contracts, changes in trends in the pharmaceutical industry,
 and the ability to operate successfully in new lines of business.  Our data
 products business remains subject to state and federal regulations, and
 contracts with data vendors, including WebMD.  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 Annual Report on Form 10-K, its Form 8-Ks, and its other
 periodic reports, including Form 10-Qs.
 
 
     Condensed Consolidated Statements of Income
     (Unaudited)
 
                                                   Three Months Ended March 31
                                                      2001             2000
     In thousands, except per share data
 
     Net revenue                                   $404,470          $414,845
 
     Costs and expenses:
       Direct                                       241,006           252,409
       General and administrative                   134,717           138,129
       Depreciation and amortization                 22,653            23,122
       Restructuring                                      0            58,592
     Total costs and expenses                       398,376           472,252
     Income (loss) from operations                    6,094           (57,407)
 
     Other income (expense)                           5,534             1,948
 
     Income (loss) before income taxes               11,628           (55,459)
     Income tax expense (benefit)                     3,837           (18,300)
 
     Income (loss) from continuing
      operations                                      7,791           (37,159)
     Income from discontinued operation,
      net of taxes                                        0            10,594
 
     Net income (loss)                               $7,791          ($26,565)
 
     Basic net income (loss) per share:
       Income (loss) from continuing
        operations                                    $0.07            ($0.32)
       Income from discontinued
        operation                                     $0.00             $0.09
       Basic net income (loss) per
        share                                         $0.07            ($0.23)
 
     Diluted net income (loss) per share:
       Income (loss) from continuing
        operations                                    $0.06            ($0.32)
       Income from discontinued
        operation                                     $0.00             $0.09
       Diluted net income (loss) per
        share                                         $0.06            ($0.23)
 
     Shares used in computing net income
      (loss) per share
        Basic                                       116,338           115,392
        Diluted                                     120,064           115,392
 
 
     Consolidated Balance Sheet Data
     (Unaudited)
 
                                                     March 31,     December 31,
                                                       2001              2000
     In millions
 
     Cash, cash equivalents and debt
      investments                                      $454              $438
     Investments in marketable equity
      securities                                        258               384
     Working capital                                    368               309
     Total assets                                     1,890             1,962
     Debt including current portion                      34                39
     Shareholders' equity                             1,321             1,405
 
 

SOURCE Quintiles Transnational Corp.
    RESEARCH TRIANGLE PARK, N.C., April 18 /PRNewswire/ --
     Quintiles Transnational Corp. (Nasdaq:   QTRN) today announced financial
 results for first quarter 2001.  Net revenue for the quarter ended
 March 31, 2001, was $404.5 million compared to $414.8 million for first
 quarter 2000.  Net income for the quarter was $7.8 million compared to a loss
 of $26.6 million for first quarter 2000.  First quarter 2001 earnings per
 share were $0.06 compared to a loss of $0.23 per share for first quarter 2000.
 Pro forma net income was $11.8 million for first quarter 2001, or $0.10 per
 share on a diluted basis, compared to pro forma income from continuing
 operations of $3.9 million, or $0.03 per share on a diluted basis, for first
 quarter 2000.  Pro forma figures exclude expenses related to the company's
 Internet initiative and year 2000 restructuring.
     On a sequential quarterly basis, first quarter 2001 net revenue of
 $404.5 million compared to $409.6 million for the fourth quarter 2000.  Net
 income for the quarter of $7.8 million, or $0.06 per share on a diluted basis,
 compared to net income of $6.6 million, or $0.06 per share on a diluted basis,
 for fourth quarter 2000.  Pro forma net income and diluted earnings per share
 for first quarter 2001 were unchanged from fourth quarter 2000.
     "We're pleased that we exceeded analysts' EPS expectations," said
 Quintiles Chairman Dennis Gillings, Ph.D.  "The quarter saw a number of
 significant events, including our announcement that Pam Kirby would join
 Quintiles as chief executive officer effective April 2.  I welcome Pam's
 leadership and the customer perspective that she brings to our organization.
     "The first quarter also saw our corporate ventures group, PharmaBio
 Development, help facilitate several deals tied to the product development and
 commercialization sides of our business.  One such deal was our previously
 announced gain-sharing alliance with Scios to commercialize its lead product,
 Natrecor.  We are targeting more of these deals in 2001."
     Kirby, who joined Quintiles from the pharmaceutical division of F.
 Hoffmann-La Roche Ltd., in Basel, Switzerland, said:  "In general we're seeing
 a pickup in new business in the marketplace in early and later phase product
 development.  If early phase work is an indicator of what comes later in the
 pipeline, this could signal more clinical business for our industry in the
 second half of the year."
     Quintiles Transnational Chief Financial Officer Jim Bierman said:  "We're
 pleased to have achieved $60 million in cash flow from operations during the
 first quarter, following the record cash flow from operations that we reported
 last quarter."
     In other first quarter developments, Quintiles repurchased 100,000 shares
 of its common stock for an aggregate price of approximately $1.7 million as
 part of its previously announced stock repurchase program.
     Supplemental financial information is available now under "Additional
 Financials" in the Investors section of Quintiles' Web site,
 www.quintiles.com/investors/additional_financials.
     Quintiles Transnational's first quarter 2001 financial briefing will be
 held at 11 a.m. EDT on Thursday, April 19, and will be broadcast live over the
 Web.  Interested parties can access the Webcast at
 http://www.quintiles.com/investors/broadcast_center.  Additionally, a replay
 of the Webcast will be available via the same link about two hours after
 completion of the call.  The replay will be available through 5 p.m., Friday,
 May 4, 2001.
     Quintiles Transnational is the world's leading provider of information,
 technology and services to help bring new medicines to patients faster and
 improve healthcare.  Headquartered near Research Triangle Park, North
 Carolina, Quintiles employs a global workforce of 18,000 in 39 countries.
 Quintiles Transnational is a member of the S&P 500 and Fortune 1000.  For more
 information visit the company's Web site at www.quintiles.com.
     Schedules attached to this release are an integral part of this release.
 Information in this press release contains "forward-looking statements" about
 Quintiles.  These statements involve risks and uncertainties that could cause
 actual results to differ materially, including without limitation, the risk
 the market for our products and services will not grow as we expect, the risk
 that our PharmaBio transactions will not generate revenues or profit at the
 rate or levels we anticipate, our ability to efficiently distribute backlog
 among therapeutic business units and match demand to resources, actual
 operating performance, the actual savings and operating improvements resulting
 from the restructuring, the ability to maintain large client contracts or to
 enter into new contracts, changes in trends in the pharmaceutical industry,
 and the ability to operate successfully in new lines of business.  Our data
 products business remains subject to state and federal regulations, and
 contracts with data vendors, including WebMD.  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 Annual Report on Form 10-K, its Form 8-Ks, and its other
 periodic reports, including Form 10-Qs.
 
 
     Condensed Consolidated Statements of Income
     (Unaudited)
 
                                                   Three Months Ended March 31
                                                      2001             2000
     In thousands, except per share data
 
     Net revenue                                   $404,470          $414,845
 
     Costs and expenses:
       Direct                                       241,006           252,409
       General and administrative                   134,717           138,129
       Depreciation and amortization                 22,653            23,122
       Restructuring                                      0            58,592
     Total costs and expenses                       398,376           472,252
     Income (loss) from operations                    6,094           (57,407)
 
     Other income (expense)                           5,534             1,948
 
     Income (loss) before income taxes               11,628           (55,459)
     Income tax expense (benefit)                     3,837           (18,300)
 
     Income (loss) from continuing
      operations                                      7,791           (37,159)
     Income from discontinued operation,
      net of taxes                                        0            10,594
 
     Net income (loss)                               $7,791          ($26,565)
 
     Basic net income (loss) per share:
       Income (loss) from continuing
        operations                                    $0.07            ($0.32)
       Income from discontinued
        operation                                     $0.00             $0.09
       Basic net income (loss) per
        share                                         $0.07            ($0.23)
 
     Diluted net income (loss) per share:
       Income (loss) from continuing
        operations                                    $0.06            ($0.32)
       Income from discontinued
        operation                                     $0.00             $0.09
       Diluted net income (loss) per
        share                                         $0.06            ($0.23)
 
     Shares used in computing net income
      (loss) per share
        Basic                                       116,338           115,392
        Diluted                                     120,064           115,392
 
 
     Consolidated Balance Sheet Data
     (Unaudited)
 
                                                     March 31,     December 31,
                                                       2001              2000
     In millions
 
     Cash, cash equivalents and debt
      investments                                      $454              $438
     Investments in marketable equity
      securities                                        258               384
     Working capital                                    368               309
     Total assets                                     1,890             1,962
     Debt including current portion                      34                39
     Shareholders' equity                             1,321             1,405
 
 SOURCE  Quintiles Transnational Corp.