Covance Reports First Quarter Revenue of $441M and EPS of $0.63; Updates Full Year Financi...(vices). Late-Stage Development net reve...)

Date:4/29/2009

vices). Late-Stage Development net revenues for the first quarter of 2009 grew 18.2% to $248.7 million compared to $210.4 million in the first quarter of 2008. Sequentially, revenues grew 10.8% compared to $224.4 million last quarter. The sequential and year-on-year growth was led by both central laboratory and clinical development. Foreign exchange negatively impacted revenue growth in the quarter by approximately 680 basis points. Revenue growth, excluding the impact of foreign exchange, is expected to be approximately 20% for the balance of the year.

Operating income for the first quarter of 2009 increased 44.9% to $56.3 million compared to $38.9 million in the first quarter of the prior year. Exceptional profitability in central laboratory services and clinical development led to operating margins of 22.6% for the first quarter of 2009 compared to 18.5% in the first quarter of last year and 19.6% last quarter. Operating margin in Late-Stage Development is expected to trend toward approximately 20% in the back half of the year.

Corporate Information

The Company's backlog at March 31, 2009 grew 54.4% year-over-year to $4.42 billion compared to $2.86 billion at March 31, 2008 and $4.33 billion at year-end. Foreign exchange negatively impacted sequential backlog growth by approximately $30 million. Adjusted net orders (net orders adjusted for dedicated capacity contracts) were $589 million in the first quarter of 2009.

Corporate expenses totaled $27.5 million in the first quarter of 2009 compared to $26.3 million last quarter and $26.7 million in the first quarter of last year. We expect corporate expenses to average between 6.0% and 7.0% of revenues going forward as we continue to make investments in infrastructure to enhance our ability to manage future growth.

Cash and cash equivalents at March 31, 2009 were $190 million compared to $221 million at December
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SOURCE Covance Inc. Copyright©2009 PR Newswire. All rights reserved

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