BOSTON, Aug. 5, 2015 /PRNewswire/ --
Fourth Quarter Fiscal Year 2015 Results (compared to Fourth
Quarter Fiscal Year 2014)
- Adjusted earnings per share of $0.79, up 21.5%; GAAP diluted earnings per share
of $0.61
- Gross new business wins of $818
million, up 11%; net book-to-bill of 1.19; backlog at
$5.3 billion
- Service revenue of $523 million,
up 2.4%; constant currency revenue growth of 5.4%
- SG&A as a percent of service revenue decreased by 470 basis
points
- Restructuring charge of $20
million in fourth quarter 2015 related to Margin
Acceleration Program
- Adjusted operating margin of 10.8%; GAAP operating margin of
7.5%
Fiscal Year 2015 Results (compared to Fiscal Year 2014)
- Adjusted earnings per share of $2.79, up 28.6%; GAAP diluted earnings per share
of $2.65
- Gross new business wins of $3.35
billion; net book-to-bill of 1.23; backlog up 6.5%
- Service revenue of $2.0 billion,
up 4%; constant currency revenue growth of 5.9%
- Adjusted operating margin of 10.7%, up 40 basis points; GAAP
operating margin of 9.9%
PAREXEL International Corporation (NASDAQ: PRXL) today reported
financial results for the fourth quarter and Fiscal Year 2015,
which ended on June 30,
2015.
In commenting on PAREXEL's results for the quarter and Fiscal
Year, Mr. Josef H. von Rickenbach,
Chairman and Chief Executive Officer, stated, "PAREXEL delivered
double-digit adjusted EPS growth and achieved solid new business
wins in the fourth quarter. Clinical Research Services (CRS)
continued to make progress in line with our expectations, and the
integration of QSI, which we acquired in the quarter, is on track.
On the back of solid momentum in biopharmaceutical R&D, we
finished the fourth quarter with a strong backlog and business
development pipeline."
Mr. von Rickenbach continued, "We
are committed to building on this positive momentum in the industry
in Fiscal Year 2016, and we believe we have laid the foundation for
strong performance. PAREXEL has the expertise and broad range of
services to address the increased complexity of drug development
and client requirements. Successful implementation of our Margin
Acceleration Program will enable us to execute more profitably. In
addition, we expect CRS to enter a more favorable operating cycle
as more projects move out of the start-up stage. We believe this
paves the way for stronger backlog conversion as the Fiscal Year
unfolds. Leveraging these positive dynamics, we expect to deliver
accelerated profitable growth, especially in the second half of the
Fiscal Year."
Fourth Quarter Fiscal Year 2015 Results
For the three months ended June 30,
2015 PAREXEL's service revenue increased 2.4% to
$523.0 million, compared with
$510.6 million in the prior-year
period. The negative impact from foreign currency exchange rate
movements on revenue in the quarter was $15.2 million. The acquisition of Quantum
Solutions India (QSI), a leading provider of specialized
pharmacovigilance services, closed in April
2015 and contributed $6.0
million to revenue in the fourth quarter. On a comparable
basis, revenue growth was 4.2% year-over-year. A
restructuring charge of $20.0 million
was recorded in the fourth quarter related to PAREXEL's ongoing
Margin Acceleration Program. Operating income as reported under
Generally Accepted Accounting Principles (GAAP) totaled
$39.3 million, or 7.5% of service
revenue, in the fourth quarter of Fiscal Year 2015, as compared
with $58.8 million, or 11.5% of
service revenue, in the comparable quarter of the prior year.
GAAP net income for the quarter totaled $34.2 million, or $0.61 per diluted share, compared with GAAP net
income of $40.1 million, or
$0.70 per diluted share, for the
quarter ended June 30, 2014.
GAAP diluted earnings per share declined 12.9% 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 tables within this
press release. Adjusted operating income in the fourth
quarter of Fiscal Year 2015 was $56.5
million, or 10.8% of service revenue. Adjusted
operating income in the fourth quarter of Fiscal Year 2014 was
$57.2 million, or 11.2% of service
revenue. Adjusted net income was $44.3
million, or $0.79 per diluted
share, in the quarter ended June 30,
2015, and was $37.5 million,
or $0.65 per diluted share, in the
quarter ended June 30, 2014.
Adjusted earnings per share grew 21.5% year-over-year.
On a segment basis, service revenue for the fourth quarter of
Fiscal Year 2015 was $403.3 million
in CRS, $53.5 million in PAREXEL
Consulting (PC), and $66.2 million in
PAREXEL Informatics (PI).
Fiscal Year 2015 Results
On a GAAP basis for the full Fiscal Year ended June 30, 2015, service revenue was $2.016 billion versus $1.939 billion in the prior year, a
year-over-year increase of 4%. Excluding the negative impact
from foreign currency exchange rate movements of approximately
$37.0 million in Fiscal Year 2015,
and $6.0 million of revenue from the
QSI acquisition, revenue growth was 5.5% year-over-year.
After recording a net restructuring charge of $19.8 million in Fiscal Year 2015, GAAP operating
income was $199.9 million, or 9.9% of
service revenue, compared with GAAP Fiscal Year 2014 operating
income of $199.5 million, or 10.3% of
service revenue. Net income on a GAAP basis for Fiscal Year 2015
was $147.8 million, or $2.65 per diluted share, compared with GAAP net
income of $129.1 million, or
$2.25 per diluted share, in Fiscal
Year 2014. On a GAAP basis, net income in the current year
increased 14.5%, and earnings per diluted share increased 17.8%
year-over-year.
The financial results of the Fiscal Year in the current and
prior year period each included items outside of the Company's
normal operations, as detailed in the financial tables within this
press release. Adjusted operating income was $216.4 million, or 10.7% of service revenue in
Fiscal Year 2015, compared with adjusted operating income of
$200.1 million, or 10.3% of service
revenue, in Fiscal Year 2014. On this basis, adjusted
operating income in Fiscal Year 2015 increased 8.1%
year-over-year. Adjusted net income in Fiscal Year 2015 was
$155.9 million, or $2.79 per diluted share, compared with adjusted
net income of $124.8 million, or
$2.17 per diluted share, in Fiscal
Year 2014. Adjusted net income in the current fiscal year
increased 24.9% and adjusted earnings per diluted share increased
28.6% year-over-year.
On a segment basis, service revenue for Fiscal Year 2015 was
$1.535 billion in CRS, $216.0 million in PC, and $264.7 million in PI.
New Business and Backlog
Backlog at the end of June 2015 was
$5.3 billion, an increase of 6.5%
year-over-year. The reported backlog included gross new
business wins in the fourth quarter of $817.5 million, cancellations of $193.1 million, and a positive impact from
foreign currency exchange rates of $26.5
million. The net book-to-bill ratio was 1.19 in the
quarter.
Forward-looking Guidance
The Company issued forward-looking guidance for the first quarter
of Fiscal Year 2016 (ending September 30,
2015) and confirmed its prior revenue and EPS guidance for
Fiscal Year 2016 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
8/05/15
|
Guidance Issued
6/23/15
|
Q1 FY 2016
Revenue
|
$505 - $515
million
|
N/A
|
Q1 FY 2016 GAAP
EPS
Q1 FY 2016 non-GAAP
EPS*
|
$0.40 -
$0.46
$0.59 -
$0.65
|
N/A
N/A
|
|
FY 2016
Revenue
|
$2.160 - $2.210
billion
|
$2.160 - $2.210
billion
|
FY 2016 GAAP EPS
FY 2016 non-GAAP EPS*
|
$2.79 -
$3.15
$3.02 -
$3.38
|
$2.97 -
$3.33
$3.02 –
3.38
|
*Adjusted diluted EPS guidance for FY 2016 excludes anticipated
charges related to the Company's on-going restructuring program,
known as the Margin Acceleration Program, as detailed in a table
contained within this release.
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 2015 earnings, business, and financial outlook will begin at
10:00 a.m. ET on Thursday, August 6, 2015 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 2015 earnings conference call.
A presentation of Fourth Quarter and Fiscal Year 2015 results,
as well as certain trended financial information, may be found on
the home page of the Investors portion of the Company's website in
a document titled "Q4 Financial Results and Trended
Information".
About PAREXEL International
PAREXEL International Corporation is a leading global
biopharmaceutical services organization, providing a broad range of
expertise-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 provides advanced
technology solutions, including medical imaging, to facilitate the
clinical development process. Headquartered near Boston, Massachusetts, PAREXEL has offices in
80 locations in 51 countries around the world, and had
approximately 18,660 employees in the fourth quarter. For
more information about PAREXEL International visit
www.PAREXEL.com.
PAREXEL and PAREXEL Informatics 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 materially 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 restructurings, including expense
savings from the $30 – $45 million restructuring charge disclosed in the
press release dated June 23, 2015;
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 acquisitions of ClinIntel Limited
and Quantum Solutions India, 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, 2015 as filed
with the Securities and Exchange Commission on May 1, 2015, 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.
CONTACTS:
Ingo Bank, Senior Vice President
and Chief Financial Officer
Investor Relations:
IR@PAREXEL.com or +1-781-434-4118
PAREXEL
International Corporation
|
Consolidated
Condensed Statement of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in thousands,
except per share data)
|
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
|
$
522,983
|
|
$
510,595
|
|
$
2,015,981
|
|
$
1,939,360
|
|
Reimbursement
revenue
|
|
|
82,142
|
|
74,529
|
|
314,293
|
|
326,982
|
|
Total
revenue
|
|
|
605,125
|
|
585,124
|
|
2,330,274
|
|
2,266,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
|
360,059
|
|
328,328
|
|
1,344,153
|
|
1,279,178
|
|
Reimbursable
out-of-pocket expenses
|
|
82,142
|
|
74,529
|
|
314,293
|
|
326,982
|
|
Selling, general and
administrative
|
|
80,892
|
|
102,758
|
|
367,192
|
|
379,800
|
|
Depreciation
|
|
|
17,677
|
|
17,528
|
|
69,321
|
|
66,376
|
|
Amortization
|
|
|
5,086
|
|
3,569
|
|
15,618
|
|
14,952
|
|
Restructuring charge
(benefit)
|
|
|
20,010
|
|
(370)
|
|
19,845
|
|
(444)
|
|
Total costs and
expenses
|
|
|
565,866
|
|
526,342
|
|
2,130,422
|
|
2,066,844
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
39,259
|
|
58,782
|
|
199,852
|
|
199,498
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income, net
|
|
|
(1,824)
|
|
(2,601)
|
|
378
|
|
(11,637)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
37,435
|
|
56,181
|
|
200,230
|
|
187,861
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
3,257
|
|
16,109
|
|
52,409
|
|
58,767
|
|
Effective tax
rate
|
|
|
8.7%
|
|
28.7%
|
|
26.2%
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
34,178
|
|
$
40,072
|
|
$
147,821
|
|
$
129,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.62
|
|
$0.71
|
|
$2.69
|
|
$2.28
|
|
Diluted
|
|
|
$0.61
|
|
$0.70
|
|
$2.65
|
|
$2.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per common share:
|
|
|
|
|
|
|
|
Basic
|
|
|
55,172
|
|
56,534
|
|
54,915
|
|
56,504
|
|
Diluted
|
|
|
56,046
|
|
57,450
|
|
55,838
|
|
57,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Information
|
|
|
Preliminary
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
|
Billed accounts
receivable, net
|
|
|
$
460,561
|
|
$
497,108
|
|
|
|
|
|
Unbilled accounts
receivable, net
|
|
|
262,200
|
|
225,514
|
|
|
|
|
|
Deferred
revenue
|
|
|
(413,962)
|
|
(466,964)
|
|
|
|
|
|
Net
receivables
|
|
|
$
308,799
|
|
$
255,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and marketable
securities
|
|
|
$
207,404
|
|
$
283,812
|
|
|
|
|
|
Working
capital
|
|
|
$
355,696
|
|
$
350,900
|
|
|
|
|
|
Total
assets
|
|
|
$
1,853,914
|
|
$
1,834,000
|
|
|
|
|
|
Short-term
borrowings
|
|
|
$
8,915
|
|
$
12,501
|
|
|
|
|
|
Long-term
debt
|
|
|
$
348,164
|
|
$
337,500
|
|
|
|
|
|
Stockholders'
equity
|
|
|
$
667,309
|
|
$
577,681
|
|
|
|
|
|
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,
2015
|
|
June 30,
2014
|
|
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
$
|
80,892
|
|
$
|
2,819
|
(a)
|
$
|
83,711
|
|
$
|
102,758
|
|
$
|
1,190
|
(a)
|
$
|
103,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
(benefit)
|
|
|
$
|
20,010
|
|
$
|
(20,010)
|
(b)
|
$
|
-
|
|
$
|
(370)
|
|
$
|
370
|
(d)
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
$
|
39,259
|
|
$
|
17,191
|
|
$
|
56,450
|
|
$
|
58,782
|
|
$
|
(1,560)
|
|
$
|
57,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
|
|
$
|
(1,824)
|
|
$
|
-
|
|
$
|
(1,824)
|
|
$
|
(2,601)
|
|
$
|
-
|
|
$
|
(2,601)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
$
|
37,435
|
|
$
|
17,191
|
|
$
|
54,626
|
|
$
|
56,181
|
|
$
|
(1,560)
|
|
$
|
54,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
$
|
3,257
|
|
$
|
7,081
|
(c)
|
$
|
10,338
|
|
$
|
16,109
|
|
$
|
1,022
|
(e)
|
$
|
17,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
34,178
|
|
$
|
10,110
|
|
$
|
44,288
|
|
$
|
40,072
|
|
$
|
(2,582)
|
|
$
|
37,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
|
$
|
0.61
|
|
$
|
0.18
|
|
$
|
0.79
|
|
$
|
0.70
|
|
$
|
(0.05)
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
8.7%
|
|
|
|
18.9%
|
|
28.7%
|
|
|
|
31.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Impact of net
adjustments for legal settlements and acquisition and integration
related charges, including the revaluation of earn-out contingent
consideration liability associated with certain
acquisitions
|
(b) Severance
costs related to the Margin Acceleration
Program
|
|
|
|
|
|
(c) Tax effect on
non-GAAP adjustments, and a $1.7 million adjustment due to reserve
release
|
|
|
|
(d) Decrease in
facility-related charges associated with restructuring
plans
|
|
|
|
|
|
(e) Tax effect on
non-GAAP adjustments, and a $1.3 million adjustment due to reserve
release
|
|
|
|
|
|
|
|
PAREXEL
International Corporation
|
Reconciliation of Non-GAAP Measures
|
Certain Line
Items
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
(in thousands,
except per share data)
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
$
|
367,192
|
|
$
|
3,303
|
(a)
|
$
|
370,495
|
|
$
|
379,800
|
|
$
|
(1,046)
|
(a)
|
$
|
378,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
(benefit)
|
|
|
$
|
19,845
|
|
$
|
(19,845)
|
(b)
|
$
|
-
|
|
$
|
(444)
|
|
$
|
444
|
(e)
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
$
|
199,852
|
|
$
|
16,542
|
|
$
|
216,394
|
|
$
|
199,498
|
|
$
|
602
|
|
$
|
200,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
|
$
|
378
|
|
$
|
137
|
(c)
|
$
|
515
|
|
$
|
(11,637)
|
|
$
|
(196)
|
(f)
|
$
|
(11,833)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
$
|
200,230
|
|
$
|
16,679
|
|
$
|
216,909
|
|
$
|
187,861
|
|
$
|
406
|
|
$
|
188,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
$
|
52,409
|
|
$
|
8,638
|
(d)
|
$
|
61,047
|
|
$
|
58,767
|
|
$
|
4,707
|
(g)
|
$
|
63,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
147,821
|
|
$
|
8,041
|
|
$
|
155,862
|
|
$
|
129,094
|
|
$
|
(4,301)
|
|
$
|
124,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
|
$
|
2.65
|
|
$
|
0.14
|
|
$
|
2.79
|
|
$
|
2.25
|
|
$
|
(0.08)
|
|
$
|
2.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
26.2%
|
|
|
|
28.1%
|
|
31.3%
|
|
|
|
33.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Impact of net
adjustments for legal settlements and acquisition and integration
related charges, including the revaluation of earn-out contingent
consideration liability associated with certain
acquisitions
|
(b) Restructuring
charges include $20 million in severance costs related to the
Margin Acceleration Program
|
(c) Accelerated
amortization of deferred financing fees related to credit facility
modification
|
(d) Tax effect on
non-GAAP adjustments, and a $1.7 million adjustment due to reserve
release
|
(e) Decrease in
facility-related charges associated with restructuring
plans
|
(f) Recovery from
bankruptcy settlement on previously impaired
investment
|
(g) Tax effect on
non-GAAP adjustments, and a $4.3 million adjustment due to reserve
release
|
|
|
|
|
|
PAREXEL
International Corporation
|
Segment
Information
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
(in
thousands)
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
Clinical Research
Services (CRS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
403,365
|
|
$
385,604
|
|
|
% of total service
revenue
|
|
77.1%
|
|
75.5%
|
|
|
Gross
profit
|
|
$
109,037
|
|
$
124,198
|
|
|
Gross margin % of
service revenue
|
|
27.0%
|
|
32.2%
|
|
|
|
|
|
|
|
|
|
PAREXEL Consulting
Services (PC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
53,459
|
|
$
58,319
|
(a)
|
|
% of total service
revenue
|
|
10.2%
|
|
11.4%
|
|
|
Gross
profit
|
|
$
23,020
|
|
$
26,160
|
(a)
|
|
Gross margin % of
service revenue
|
|
43.1%
|
|
44.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAREXEL
Informatics (PI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
66,159
|
|
$
66,672
|
(a)
|
|
% of total service
revenue
|
|
12.7%
|
|
13.1%
|
|
|
Gross
profit
|
|
$
30,867
|
|
$
31,909
|
(a)
|
|
Gross margin % of
service revenue
|
|
46.7%
|
|
47.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total service
revenue
|
|
$
522,983
|
|
$
510,595
|
|
|
Total gross
profit
|
|
$
162,924
|
|
$
182,267
|
|
|
Gross margin % of
service revenue
|
|
31.2%
|
|
35.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Supplemental Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
522,983
|
|
$
510,595
|
|
|
Reimbursement
revenue
|
|
82,142
|
|
74,529
|
|
|
Investigator
fees
|
|
111,913
|
|
133,206
|
|
|
Gross
revenue
|
|
$
717,038
|
|
$
718,330
|
|
|
|
|
|
|
|
|
|
Days sales
outstanding
|
|
39
|
|
32
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
34,560
|
|
$
22,855
|
|
|
|
|
|
|
|
|
|
(a) Effective July
1, 2014, the operating results of PAREXEL Regulatory Outsourcing
Services are included in the PC segment. This service line offering
was previously reported within the PI segment. For the three months
ended June 30, 2015 and 2014, we disclosed the reportable segment
on this basis and the prior period was retroactively restated to
reflect this presentation change.
|
|
|
Segment
Information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
(in
thousands)
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
Clinical Research
Services (CRS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
1,535,359
|
|
$
1,455,279
|
|
|
% of total service
revenue
|
|
76.2%
|
|
75.0%
|
|
|
Gross
profit
|
|
$
449,613
|
|
$
445,210
|
|
|
Gross margin % of
service revenue
|
|
29.3%
|
|
30.6%
|
|
|
|
|
|
|
|
|
|
PAREXEL Consulting
Services (PC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
215,954
|
|
$
229,842
|
(a)
|
% of total service
revenue
|
|
10.7%
|
|
11.9%
|
|
|
Gross
profit
|
|
$
94,755
|
|
$
96,220
|
(a)
|
Gross margin % of
service revenue
|
|
43.9%
|
|
41.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAREXEL
Informatics (PI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
264,668
|
|
$
254,239
|
(a)
|
% of total service
revenue
|
|
13.1%
|
|
13.1%
|
|
|
Gross
profit
|
|
$
127,460
|
|
$
118,752
|
(a)
|
Gross margin % of
service revenue
|
|
48.2%
|
|
46.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total service
revenue
|
|
$
2,015,981
|
|
$
1,939,360
|
|
|
Total gross
profit
|
|
$
671,828
|
|
$
660,182
|
|
|
Gross margin % of
service revenue
|
|
33.3%
|
|
34.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Effective July
1, 2014, the operating results of PAREXEL Regulatory Outsourcing
Services are included in the PC segment. This service line offering
was previously reported within the PI segment. For the twelve
months ended June 30, 2015 and 2014, we disclosed the reportable
segment on this basis and the prior period was retroactively
restated to reflect this presentation change.
|
|
|
PAREXEL
International Corporation
|
|
Reconciliation of Non-GAAP Measures
|
|
Certain Line
Items
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for the
Three Months Ended
|
|
Guidance for the
Twelve Months Ended
|
|
(in thousands,
except per share data)
|
|
September 30,
2015
|
|
June 30,
2016
|
|
|
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
GAAP
Measure
|
|
Adjustments
|
|
Non-GAAP
Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
|
|
$
-
|
|
|
|
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Restructuring
expense
|
|
|
|
|
$ 16,000
|
(a)
|
|
|
|
$ 20,000
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
$ 16,000
|
|
|
|
|
|
$ 20,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
|
|
|
$
-
|
|
|
|
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
|
|
$ 16,000
|
|
|
|
|
|
$ 20,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
|
|
$ 5,440
|
(b)
|
|
|
|
$ 6,800
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$ 10,560
|
|
|
|
|
|
$ 13,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
|
$0.40 -
$0.46
|
$
0.19
|
|
$0.59 -
$0.65
|
|
$2.79 -
$3.15
|
$
0.23
|
|
$3.02 -
$3.38
|
|
|
|
|
|
|
|
(a) Charges
related to the Margin Acceleration Program
|
|
|
|
|
|
|
(b)Tax effect on
non-GAAP adjustments
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/parexel-international-reports-fourth-quarter-and-fiscal-year-2015-results-confirms-previous-revenue-and-adjusted-eps-guidance-for-fiscal-year-2016-300124523.html
SOURCE PAREXEL International Corporation