26 Jul. 2011
- Gross authorizations of $753 million
- Net book-to-bill ratio of 1.29
- Clinical Development Services segment net revenue growth of 14.1% over Q2 2010
- Sequential Laboratory Services segment operating margin expansion
- Diluted EPS of $0.41
WILMINGTON, N.C. (July 26, 2011) - PPD, Inc. (Nasdaq: PPDI) today reported its financial and operating results for the second quarter ended June 30, 2011.
PPD recorded net revenue of $407.7 million for the second quarter of 2011, an increase of 10.2% over net revenue of $369.9 million for the second quarter of 2010. Second quarter 2011 income from operations was $57.1 million, compared to $40.1 million for the second quarter of 2010. Income from operations for the second quarter of 2011 was higher than the same period last year due primarily to higher net revenue and a decrease in research and development and operating expenses due to the June 2010 spin-off of Furiex Pharmaceuticals, Inc.
Diluted earnings per share for the second quarter of 2011 were $0.41, compared to $0.18 for the second quarter of 2010. Second quarter 2011 diluted earnings per share included income of $10.6 million related to the company's investment in Celtic Therapeutics and a $1.3 million loss on investments.
"Strong client demand for our services resulted in record high request for proposal levels, gross authorizations of $752.6 million, and a net book-to-bill ratio of 1.29 for the second quarter," said Fred Eshelman, executive chairman of PPD. "While cancellations were higher than we expected, we continued to deliver solid backlog growth of 14% and double-digit percentage net revenue growth year-over-year in the quarter. We intend to remain focused on high-quality operational execution and cost control to drive value for our clients and shareholders."
Clinical Development Services
Clinical Development Services segment net revenue for the second quarter of 2011 grew 14.1% year-over-year to $291.5 million, compared to $255.4 million for the second quarter of 2010. Second quarter 2011 income from operations for this segment was $48.5 million, compared to $31.1 million for the second quarter of 2010.
Laboratory Services segment net revenue for the second quarter of 2011 increased 8.1% year-over-year to $84.7 million, compared to $78.3 million for the second quarter of 2010. Second quarter 2011 income from operations for this segment was $8.7 million, compared to $11.9 million for the second quarter of 2010.
Other Financial Information
Gross authorizations for the second quarter of 2011 totaled $752.6 million. Backlog at June 30, 2011 was $3.7 billion. Contract cancellations and adjustments for the second quarter of 2011 were $268.6 million, including a $43.2 million cancellation for a global clinical trial.
Cash flow from operations for the six months ended June 30, 2011 was $59.6 million. At June 30, 2011, PPD had $440.1 million in cash and investments. The effective tax rate in the second quarter of 2011 was 32.0 percent.
PPD will conduct a live conference call and webcast tomorrow, July 27, 2011, at 9:00 a.m. ET to discuss its second quarter 2011 results. A Q&A session will follow. All interested parties can access the webcast through the Presentations & Events link in the Investors section of the PPD Web site at www.ppdi.com. The webcast will be archived shortly after the call for on-demand replay. The conference call will be broadcast live over the Internet, and the live call may be accessed via the following direct dial numbers:
| Participant dial-in:
|| +1 877 644 0692 (U.S./Canada)
+1 973 200 3387 (International)
| Conference ID: