RESEARCH TRIANGLE PARK, N.C. – August 12, 2003 – Quintiles Transnational Corp. (Nasdaq: QTRN) today announced financial results for the quarter ended June 30, 2003. Earnings per share for second quarter 2003 were $0.25 on a diluted basis, a 47% increase from second quarter 2002 EPS of $0.17 and exceeding analysts' consensus expectation of $0.14 as reported by First Call. Net income for second quarter 2003 was $29.6 million, a 44% increase from second quarter 2002 net income of $20.6 million. Total gross revenues and net revenues for second quarter 2003 were $520 million and $423 million, respectively, compared to $498 million and $390 million for second quarter 2002.
For the first half of 2003, net new business totaled an estimated $727 million, a 25% increase versus the same period in 2002, resulting in a backlog on June 30, 2003, of approximately $1.7 billion, including $63 million in internal backlog generated by Quintiles' strategic investment group, PharmaBio Development.
"Our performance reflects Quintiles' efficiency improvements and our intensive business development efforts," said Quintiles Transnational Chairman Dennis Gillings, Ph.D. "We believe pharma and biotech companies increasingly are recognizing Quintiles' ability to add value to their products, which is a powerful differentiator in today's marketplace."
On April 10, 2003, Quintiles Transnational and Pharma Services Holding, Inc. announced that they had signed a merger agreement for Quintiles' public shareholders to receive $14.50 per share in cash. The transaction is subject to Pharma Services' completion of its committed financing and customary conditions, including regulatory and Quintiles' shareholder approvals. As previously announced, Quintiles anticipates that a special meeting of shareholders to vote on the proposed merger will be held in the third quarter of 2003.
Quintiles Transnational's second quarter 2003 financial briefing will be held at 11 a.m. EDT on Wednesday, August 13, and will be broadcast live over the Web. Interested parties can access the webcast at www.quintiles.com/corporate_info/broadcast_center. Additionally, a replay of the webcast will be available via the same link about two hours after the call, and will be archived for on-demand replay through 5 p.m. EDT, Friday, August 29.
Quintiles Transnational helps improve healthcare worldwide by providing a broad range of professional services, information and partnering solutions to the pharmaceutical, biotechnology and healthcare industries. Headquartered near Research Triangle Park, North Carolina, Quintiles is a member of the S&P 500 and Fortune 1000. For more information visit the company's Web site at www.quintiles.com.
The 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, uncertainties arising in connection with the proposed merger with a subsidiary of Pharma Services Holding, Inc., including the possibility that regulatory authorities and shareholders might not approve the merger, the necessary financing may not be obtained, or that other conditions to closing under the merger agreement may not be satisfied or waived, the risk that the market for our products and services will not grow as we expect, the risk that our PharmaBio transactions will not generate revenue or profit at the rate or levels we anticipate or that royalty revenues under the PharmaBio agreements may not be adequate to offset Quintiles' upfront and ongoing expenses in providing sales and marketing services or in making milestone and marketing payments, our ability to efficiently distribute backlog among project management groups and match demand to resources, actual operating performance, variation in the actual savings and operating improvements resulting from previous restructurings, the ability to maintain large customer 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. 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.