BOSTON, Aug. 6, 2014 /PRNewswire/
--
Fourth Quarter Fiscal Year 2014 Results (compared to Fourth
Quarter Fiscal Year 2013)
- 10.2% growth in consolidated service revenue to $510.6 million
- GAAP operating margin of 11.5%; adjusted operating margin of
11.2% (up 260 basis points)
- GAAP diluted earnings per share of $0.70 grew 34.6%; adjusted earnings per share of
$0.65 grew 30.0%
- Net new business wins of $592.5
million; net book-to-bill ratio of 1.16; backlog at
$5.0 billion
Fiscal Year 2014 Results (compared to Fiscal Year 2013)
- 11.8% growth in consolidated service revenue to $1.94 billion
- GAAP and adjusted operating margin of 10.3% (adjusted operating
margin up 230 basis points)
- GAAP diluted earnings per share of $2.25 grew 39.8%; adjusted earnings per share of
$2.17 grew 28.4%
- Net new business wins of $2.21
billion; net book-to-bill ratio of 1.14; backlog up
8.6%
- Operating cash flow of $287.2
million
PAREXEL International Corporation (NASDAQ: PRXL) today reported
financial results for the fourth quarter and Fiscal Year 2014,
which ended on June 30,
2014.
In commenting on the results of the quarter and Fiscal Year, Mr.
Josef H. von Rickenbach, PAREXEL's
Chairman and Chief Executive Officer, stated, "The fourth quarter's
financial results capped a strong fiscal year for PAREXEL.
For the full year, we again drove record service revenue which
increased by almost 12% from the prior year, with all business
segments contributing to the positive results. In the
quarter, 10.4% of the previous quarter's backlog converted to
revenue. On a quarterly average basis for the year, backlog
conversion was 10.2%. We also exceeded our profitability
improvement targets, increasing adjusted operating margin to 11.2%
in the quarter and to 10.3% for the full fiscal year, which were
records on both fronts. The successful execution of
operational efficiency programs, an improved labor mix, and further
leverage of low cost countries drove notable gross margin
improvement in the Clinical Research Services and PAREXEL
Informatics businesses, leading to solid operating margin expansion
during the Fiscal Year. I would like to recognize and thank
our 15,600 employees who delivered high levels of customer service
and enabled us to meet our financial goals and commitments.
We achieved these results while concurrently making strategic
investments to help meet our longer term goals, and returning cash
to shareholders through a $150
million stock buyback program."
Mr. von Rickenbach continued,
"The market for our services remains attractive, and we are proud
to continue to be one of the world's leading biopharmaceutical
services companies. We moved into the new fiscal year with positive
momentum, supported by a strong backlog and market position, and a
healthy business development pipeline. Our priorities for
Fiscal Year 2015 include further building upon our leadership
position in the industry, delivering high quality service to our
clients, and continuing to foster a high performance culture
focused on innovation. At the same time we expect to achieve
solid revenue growth accompanied by continued improvement in
operating profitability and increased earnings per share. We
are also actively working on the implementation of a revised
long-term tax strategy aimed at enhancing shareholder value.
We expect to achieve our Fiscal Year 2015 objectives while also
making investments in our businesses in an effort to continuously
improve the products and services that we offer to our clients,
thereby positioning us for sustained growth."
Fourth Quarter Fiscal Year 2014 Results
For the three months ended June 30,
2014 PAREXEL's consolidated service revenue increased by
10.2% to $510.6 million compared with
$463.1 million in the prior year
period. The positive impact from foreign currency
exchange rate movements on revenue in the quarter was $4.0 million. The recent acquisition of the
HERON Group contributed approximately $3.8
million to revenue in the quarter, and revenue from HERON in
the fourth quarter of Fiscal Year 2013 contributed $2.2 million. On a constant currency, same store
basis, revenue growth was 9.1% year-over-year. Operating
income as reported under Generally Accepted Accounting Principles
(GAAP) totaled $58.8 million, or
11.5% of service revenue, in the fourth quarter of Fiscal Year
2014, as compared with $38.3 million,
or 8.3% of service revenue, in the comparable quarter of the prior
year. GAAP net income for the quarter totaled $40.1 million, or $0.70 per diluted share, compared with GAAP net
income of $30.0 million, or
$0.52 per diluted share for the
quarter ended June 30, 2013.
GAAP diluted earnings per share grew 34.6% year-over-year.
The financial results of the June quarter in the current and
prior year period each included items outside of the Company's
normal operations, as detailed in the financial charts within this
press release. The numbers in this paragraph are adjusted and
exclude the impact of these items. Operating income in the
fourth quarter of Fiscal Year 2014 was $57.2
million, or 11.2% of service revenue. Operating income
in the fourth quarter of Fiscal Year 2013 was $39.7 million, or 8.6% of service revenue.
Net income was $37.5 million, or
$0.65 per diluted share in the
quarter ended June 30, 2014, and was
$29.0 million, or $0.50 per diluted share in the quarter ended
June 30, 2013. Earnings per
share grew 30.0% year-over-year.
On a segment basis, service revenue for the fourth quarter of
Fiscal Year 2014 was $385.6 million
in Clinical Research Services (CRS), $55.2
million in PAREXEL Consulting (PC), and $69.8 million in PAREXEL Informatics (PI).
Fiscal Year 2014 Results
On a GAAP basis for the full fiscal year ended June 30, 2014, consolidated service revenue was
$1.939 billion versus $1.734 billion in the prior year, a
year-over-year increase of 11.8%. Excluding the positive
impact from foreign currency exchange rate movements of
approximately $5.3 million in Fiscal
Year 2014, and approximately $31.8
million of revenue from the LIQUENT and HERON acquisitions,
and $2.6 million of revenue in Fiscal
Year 2013 from acquisitions, revenue growth was 9.8%
year-over-year. For Fiscal Year 2014, GAAP operating income
was $199.5 million, or 10.3% of
consolidated service revenue, compared with GAAP Fiscal Year 2013
operating income of $136.1 million,
or 7.8% of consolidated service revenue. GAAP operating
income increased 46.6% year-over-year. Net income on a GAAP
basis for Fiscal Year 2014 was $129.1
million, or $2.25 per diluted
share, compared with GAAP net income of $96.0 million, or $1.61 per diluted share, in Fiscal Year
2013. On a GAAP basis, net income in the current year
increased by 34.5%, and earnings per diluted share increased by
39.8% year-over-year.
The numbers in this paragraph are adjusted and exclude the
impact of items outside of the Company's normal operations for
Fiscal Year 2014 and Fiscal Year 2013, as detailed in the attached
financial tables in both periods. Operating income was
$200.1 million, or 10.3% of
consolidated service revenue in Fiscal Year 2014, compared with
operating income of $138.9 million,
or 8.0% of consolidated service revenue, in Fiscal Year 2013.
On this basis, operating income in Fiscal Year 2014 increased 44.0%
year-over-year. Net income in Fiscal Year 2014 was
$124.8 million, or $2.17 per diluted share, compared with net income
of $100.5 million, or $1.69 per diluted share, in Fiscal Year
2013. Net income in the current fiscal year increased by
24.2% and earnings per diluted share increased by 28.4%
year-over-year.
On a segment basis, service revenue for Fiscal Year 2014 was
$1.455 billion in CRS, $216.2 million in PC, and $267.9 million in PAREXEL Informatics, Inc.
New Business and Backlog
Backlog at the end of June 2014
was $5.0 billion, an increase of 8.6%
year-over-year. The reported backlog included gross new
business wins in the fourth quarter of $736.3 million, cancellations of $143.8 million, and a negative impact from
foreign currency exchange rates of $1.2
million. The net book-to-bill ratio was 1.16 in the
quarter.
Share Repurchase Program
On June 16, 2014, the Company
announced a $150 million Accelerated
Share Repurchase program. During June, the Company used
$150 million of cash on hand and
borrowings under its credit facility, and received an initial
allotment of approximately 2.3 million shares. The Company
expects to receive additional shares once the program is completed,
which is expected to be prior to the end of this calendar
year. The repurchase resulted in a positive impact on
earnings per share of less than $0.01
in the fourth quarter of Fiscal Year 2014 and in Fiscal Year
2014. The repurchased shares were cancelled and returned to
the status of authorized and unissued shares.
Forward-looking Guidance
The Company issued forward-looking guidance for the first
quarter of Fiscal Year 2015 (ending September 30, 2014) and increased the lower end
of its prior revenue and EPS guidance for Fiscal Year 2015 as
detailed in the chart below. The guidance takes into account
a number of factors, including recent foreign currency exchange
rates, tax rates, and the Company's updated overall outlook.
The Company's guidance is:
|
Guidance Issued
8/06/14
|
Guidance Issued
6/24/14
|
Q1 FY 2015
Revenue
|
$497 - $503
million
|
N/A
|
Q1 FY 2015 GAAP
EPS
|
$0.55 -
$0.59
|
N/A
|
|
FY 2015
Revenue
|
$2.130 - $2.150
billion
|
$2.120 - $2.150
billion
|
FY 2015 GAAP
EPS
|
$2.57 -
$2.75
|
$2.51 -
$2.75
|
Additional Information
In addition to the financial measures prepared in accordance
with GAAP, the Company uses certain non-GAAP financial
measures. The Company believes that presenting the non-GAAP
financial measures contained in this press release assists
investors and others in gaining a better understanding of its core
operating results and future prospects, especially when comparing
such results to previous periods or forecasted guidance, because
such measures exclude items that are outside of the Company's
normal operations and/or, in certain cases, are difficult to
forecast accurately for future periods. Management uses
non-GAAP financial measures, in addition to the measures prepared
in accordance with GAAP, as the basis for measuring the Company's
core operating performance and comparing such performance to that
of prior periods and to the performance of its competitors for the
same reasons stated above. Such measures are also used by
management in its financial and operating decision-making.
Non-GAAP financial measures are not meant to be considered superior
to or a substitute for the Company's results of operations prepared
in accordance with GAAP.
A conference call to discuss PAREXEL's Fourth Quarter and Fiscal
Year 2014 earnings, business, and financial outlook will begin at
10:00 a.m. ET on Thursday, August 7, 2014 and will be broadcast
live over the internet via webcast. The webcast may be
accessed in the "IR Calendar" portion of the main page of the
Investors section of the Company's website at
www.PAREXEL.com. Users should follow the instructions
provided to assure that the necessary audio applications are
downloaded and installed. A replay of this webcast will be
archived on the website approximately two hours after the call and
will continue to be accessible for approximately one year following
the live event. To participate via telephone, dial +1 (408)
940-3886 and ask to join the PAREXEL International Fourth Quarter
and Fiscal Year 2014 earnings conference call.
A presentation of Fourth Quarter and Fiscal Year 2014 results,
as well as certain trended financial information, may be found in
the Investors section of the Company's website under the "Financial
Information" section, in a report titled "Additional
Financials".
About PAREXEL International
PAREXEL International Corporation is a leading global
biopharmaceutical services organization, providing a broad range of
knowledge-based contract research, consulting, medical
communications, and technology solutions and services to the
worldwide pharmaceutical, biotechnology and medical device
industries. Committed to providing solutions that expedite
time-to-market and peak-market penetration, PAREXEL has developed
significant expertise across the development and commercialization
continuum, from drug development and regulatory consulting to
clinical pharmacology, clinical trials management, medical
education and reimbursement. PAREXEL Informatics, Inc. provides
advanced technology solutions, including medical imaging, to
facilitate the clinical development process. Headquartered near
Boston, Massachusetts, PAREXEL
operates in 79 locations in 51 countries around the world, and has
approximately 15,560 employees. For more information about
PAREXEL International visit www.PAREXEL.com.
PAREXEL, PAREXEL Informatics, Perceptive, Perceptive MyTrials,
and "Your Journey. Our Mission." are trademarks or registered
trademarks of PAREXEL International Corporation or its
affiliates.
This release contains "forward-looking" statements regarding
future results and events, including, without limitation,
statements regarding expected financial results, future growth and
customer demand. For this purpose, any statements
contained herein that are not statements of historical fact may be
deemed forward-looking statements. Without limiting the
foregoing, the words "believes," "anticipates," "plans," "expects,"
"intends," "appears," "estimates," "projects," "will," "would,"
"could," "should," "targets," and similar expressions are
also intended to identify forward-looking statements. The
forward-looking statements in this release involve a number of
risks and uncertainties. The Company's actual future results
may differ significantly from the results discussed in the
forward-looking statements contained in this release.
Important factors that might cause such a difference include, but
are not limited to, risks associated with: actual operating
performance; actual expense savings and other operating
improvements resulting from recent and anticipated restructurings;
the loss, modification, or delay of contracts which would, among
other things, adversely impact the Company's recognition of revenue
included in backlog; the Company's dependence on certain industries
and clients; the Company's ability to win new business, manage
growth and costs, and attract and retain employees; the Company's
ability to complete additional acquisitions, and to integrate newly
acquired businesses including the recent acquisitions of LIQUENT,
Inc. and HERON Group Ltd., Inc., or enter into new lines of
business; the impact on the Company's business of government
regulation of the drug, medical device and biotechnology
industry; consolidation within the pharmaceutical industry and
competition within the biopharmaceutical services industry; the
potential for significant liability to clients and third parties;
the potential adverse impact of health care reform; and the effects
of foreign currency exchange rate fluctuations and other
international economic, political, and other risks.
Such factors and others are discussed more fully in the section
entitled "Risk Factors" of the Company's Quarterly Report on Form
10-Q for the quarter ended March 31,
2014 as filed with the Securities and Exchange Commission on
May 2, 2014, which "Risk Factors"
discussion is incorporated by reference in this press
release. The Company specifically disclaims any obligation to
update these forward-looking statements in the future. These
forward-looking statements should not be relied upon as
representing the Company's estimates or views as of any date
subsequent to the date of this press release.
PAREXEL
International Corporation
|
Consolidated
Condensed Statement of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
(in thousands,
except per share data)
|
|
June 30,
2014
|
|
June 30,
2013
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
|
$
510,595
|
|
$
463,128
|
|
$
1,939,360
|
|
$
1,734,442
|
Reimbursement
revenue
|
|
|
74,529
|
|
63,730
|
|
326,982
|
|
261,524
|
Total
revenue
|
|
|
585,124
|
|
526,858
|
|
2,266,342
|
|
1,995,966
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
|
328,328
|
|
314,890
|
|
1,279,178
|
|
1,207,536
|
Reimbursable
out-of-pocket expenses
|
|
74,529
|
|
63,730
|
|
326,982
|
|
261,524
|
Selling, general and
administrative
|
|
102,758
|
|
88,831
|
|
379,800
|
|
318,806
|
Depreciation
|
|
|
17,528
|
|
17,157
|
|
66,376
|
|
63,187
|
Amortization
|
|
|
3,569
|
|
3,981
|
|
14,952
|
|
9,999
|
Restructuring
benefit
|
|
|
(370)
|
|
(59)
|
|
(444)
|
|
(1,209)
|
Total costs and
expenses
|
|
|
526,342
|
|
488,530
|
|
2,066,844
|
|
1,859,843
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
58,782
|
|
38,328
|
|
199,498
|
|
136,123
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
|
|
(2,601)
|
|
397
|
|
(11,637)
|
|
(2,973)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
56,181
|
|
38,725
|
|
187,861
|
|
133,150
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
16,109
|
|
8,684
|
|
58,767
|
|
37,178
|
Effective tax
rate
|
|
|
28.7%
|
|
22.4%
|
|
31.3%
|
|
27.9%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
40,072
|
|
$
30,041
|
|
$
129,094
|
|
$
95,972
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.71
|
|
$0.53
|
|
$2.28
|
|
$1.64
|
Diluted
|
|
|
$0.70
|
|
$0.52
|
|
$2.25
|
|
$1.61
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
|
|
56,534
|
|
56,719
|
|
56,504
|
|
58,388
|
Diluted
|
|
|
57,450
|
|
57,822
|
|
57,477
|
|
59,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Information
|
|
|
Preliminary
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
|
Billed accounts
receivable, net
|
|
|
$
497,108
|
|
$
457,155
|
|
|
|
|
Unbilled accounts
receivable, net
|
|
|
225,514
|
|
248,219
|
|
|
|
|
Deferred
revenue
|
|
|
(466,964)
|
|
(408,336)
|
|
|
|
|
Net
receivables
|
|
|
$
255,658
|
|
$
297,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and marketable
securities
|
|
|
$
283,812
|
|
$
274,164
|
|
|
|
|
Working
capital
|
|
|
$
350,900
|
|
$
403,229
|
|
|
|
|
Total
assets
|
|
|
$
1,834,000
|
|
$
1,779,624
|
|
|
|
|
Short-term
borrowings
|
|
|
$
12,501
|
|
$
20,399
|
|
|
|
|
Long-term
debt
|
|
|
$
337,500
|
|
$
427,500
|
|
|
|
|
Stockholders'
equity
|
|
|
$
577,681
|
|
$
538,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAREXEL
International Corporation
|
Reconciliation of Non-GAAP Measures
|
Certain Line
Items
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
(in thousands,
except per share data)
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
$
102,758
|
|
$ 1,190
|
(a)
|
$ 103,948
|
|
$ 88,831
|
|
$
(1,424)
|
(d)
|
$ 87,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
benefit
|
$
(370)
|
|
$
370
|
(b)
|
$
-
|
|
$
(59)
|
|
$
59
|
(b)
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
58,782
|
|
$ (1,560)
|
|
$ 57,222
|
|
$ 38,328
|
|
$
1,365
|
|
$ 39,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$
(2,601)
|
|
$
-
|
|
$
(2,601)
|
|
$
397
|
|
$
-
|
|
$
397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
56,181
|
|
$ (1,560)
|
|
$ 54,621
|
|
$ 38,725
|
|
$
1,365
|
|
$ 40,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$
16,109
|
|
$ 1,022
|
(c)
|
$ 17,131
|
|
$
8,684
|
|
$
2,365
|
(e)
|
$ 11,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
40,072
|
|
$ (2,582)
|
|
$ 37,490
|
|
$ 30,041
|
|
$
(1,000)
|
|
$ 29,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
0.70
|
|
$
(0.05)
|
|
$
0.65
|
|
$
0.52
|
|
$
(0.02)
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
28.7%
|
|
|
|
31.4%
|
|
22.4%
|
|
|
|
27.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for legal settlements and acquisition and integration related
charges, including the revaluation of HERON earn-out contingent
consideration liability
|
(b) Decrease in
facility-related charges associated with restructuring
plans
|
(c) Tax effect on
non-GAAP adjustments, and a $1.3 million adjustment due to reserve
release
|
(d) Adjustment for
legal settlements and acquisition and integration related
charges
|
(e) Tax effect on
non-GAAP adjustments and a $2.1 million adjustment due to state
valuation allowance release
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAREXEL
International Corporation
|
Reconciliation of Non-GAAP Measures
|
Certain Line
Items
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
(in thousands,
except per share data)
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
$ 379,800
|
|
$ (1,046)
|
(a)
|
$ 378,754
|
|
$ 318,806
|
|
$
(4,027)
|
(e)
|
$ 314,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
benefit
|
$ (444)
|
|
$
444
|
(b)
|
$
-
|
|
$
(1,209)
|
|
$
1,209
|
(b)
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$ 199,498
|
|
$
602
|
|
$ 200,100
|
|
$ 136,123
|
|
$
2,818
|
|
$ 138,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$ (11,637)
|
|
$
(196)
|
(c)
|
$ (11,833)
|
|
$
(2,973)
|
|
$
(302)
|
(f)
|
$
(3,275)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$ 187,861
|
|
$
406
|
|
$ 188,267
|
|
$ 133,150
|
|
$
2,516
|
|
$ 135,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$ 58,767
|
|
$ 4,707
|
(d)
|
$ 63,474
|
|
$ 37,178
|
|
$
(2,001)
|
(g)
|
$ 35,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 129,094
|
|
$ (4,301)
|
|
$ 124,793
|
|
$ 95,972
|
|
$
4,517
|
|
$ 100,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
2.25
|
|
$
(0.08)
|
|
$
2.17
|
|
$
1.61
|
|
$
0.08
|
|
$
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
31.3%
|
|
|
|
33.7%
|
|
27.9%
|
|
|
|
25.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for legal settlements and acquisition and integration related
charges, including the revaluation of HERON earn-out contingent
consideration liability
|
(b) Decrease in
facility-related charges associated with restructuring
plans
|
(c) Recovery from
final bankruptcy settlement on previously impaired
investment
|
(d) Tax effect on
non-GAAP adjustments, and a $4.3 million adjustment due to reserve
release
|
(e) Adjustment for
legal settlements and acquisition and integration related
charges
|
(f) Adjustment
includes $0.4 million gain on facility sale previously impaired and
$0.1 million in accelerated amortization of deferred financing fees
related to credit facility modification
|
(g) Tax effect on
non-GAAP adjustments; a tax expense for one-time adjustments to
deferred tax assets, a net $2.7 million expense due to changes in
interest, penalties and a valuation allowance in a foreign
jurisdiction, and a $2.6 million adjustment due to state valuation
allowance release
|
|
|
|
|
|
PAREXEL
International Corporation
|
Segment
Information
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
(in
thousands)
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
|
|
Clinical Research
Services (CRS)
|
|
|
|
|
Service
revenue
|
|
$
385,604
|
|
$
343,435
|
% of total service
revenue
|
|
75.5%
|
|
74.2%
|
Gross
profit
|
|
$
124,198
|
|
$
96,385
|
Gross margin % of
service revenue
|
|
32.2%
|
|
28.1%
|
|
|
|
|
|
PAREXEL Consulting
Services (PC)
|
|
|
|
|
Service
revenue
|
|
$
55,235
|
|
$
54,288
|
% of total service
revenue
|
|
10.8%
|
|
11.7%
|
Gross
profit
|
|
$
25,458
|
|
$
21,897
|
Gross margin % of
service revenue
|
|
46.1%
|
|
40.3%
|
|
|
|
|
|
|
|
|
|
|
PAREXEL
Informatics (PI)
|
|
|
|
|
Service
revenue
|
|
$
69,756
|
|
$
65,405
|
% of total service
revenue
|
|
13.7%
|
|
14.1%
|
Gross
profit
|
|
$
32,611
|
|
$
29,956
|
Gross margin % of
service revenue
|
|
46.8%
|
|
45.8%
|
|
|
|
|
|
Total service
revenue
|
|
$
510,595
|
|
$
463,128
|
Total gross
profit
|
|
$
182,267
|
|
$
148,238
|
Gross margin % of
service revenue
|
|
35.7%
|
|
32.0%
|
|
|
|
|
|
Revenue by
Geography
|
|
|
|
|
The
Americas
|
|
$
260,503
|
|
$
228,364
|
Europe, Middle East
& Africa
|
|
184,832
|
|
173,885
|
Asia/Pacific
|
|
65,260
|
|
60,879
|
Total service
revenue
|
|
$
510,595
|
|
$
463,128
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Supplemental Financial Data
|
|
|
|
|
Service
revenue
|
|
$
510,595
|
|
$
463,128
|
Reimbursement
revenue
|
|
74,529
|
|
63,730
|
Investigator
fees
|
|
133,206
|
|
122,027
|
Gross
revenue
|
|
$
718,330
|
|
$
648,885
|
|
|
|
|
|
Days sales
outstanding
|
|
32
|
|
42
|
|
|
|
|
|
Capital
expenditures
|
|
$
22,855
|
|
$
30,988
|
|
|
|
|
|
PAREXEL
International Corporation
|
Segment
Information
|
(Unaudited)
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
(in
thousands)
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
|
|
Clinical Research
Services (CRS)
|
|
|
|
|
Service
revenue
|
|
$
1,455,279
|
|
$
1,303,569
|
% of total service
revenue
|
|
75.0%
|
|
75.2%
|
Gross
profit
|
|
$
445,210
|
|
$
347,056
|
Gross margin % of
service revenue
|
|
30.6%
|
|
26.6%
|
|
|
|
|
|
PAREXEL Consulting
Services (PC)
|
|
|
|
|
Service
revenue
|
|
$
216,184
|
|
$
202,524
|
% of total service
revenue
|
|
11.1%
|
|
11.7%
|
Gross
profit
|
|
$
91,498
|
|
$
81,570
|
Gross margin % of
service revenue
|
|
42.3%
|
|
40.3%
|
|
|
|
|
|
PAREXEL
Informatics (PI)
|
|
|
|
|
Service
revenue
|
|
$
267,897
|
|
$
228,349
|
% of total service
revenue
|
|
13.9%
|
|
13.1%
|
Gross
profit
|
|
$
123,474
|
|
$
98,280
|
Gross margin % of
service revenue
|
|
46.1%
|
|
43.0%
|
|
|
|
|
|
Total service
revenue
|
|
$
1,939,360
|
|
$
1,734,442
|
Total gross
profit
|
|
$
660,182
|
|
$
526,906
|
Gross margin % of
service revenue
|
|
34.0%
|
|
30.4%
|
|
|
|
|
|
Revenue by
Geography
|
|
|
|
|
The
Americas
|
|
$
970,894
|
|
$
866,998
|
Europe, Middle East
& Africa
|
|
709,137
|
|
624,010
|
Asia/Pacific
|
|
259,329
|
|
243,434
|
Total service
revenue
|
|
$
1,939,360
|
|
$
1,734,442
|
|
|
|
|
|
CONTACTS:
|
Ingo Bank, Senior
Vice President and Chief Financial Officer
|
|
Jill Baker,
Corporate Vice President of Investor Relations
|
|
+1-781-434-4118
|
SOURCE PAREXEL International Corporation