Kendle Announces Third Quarter 20...( CINCINNATI Nov. 4 /- Kendle (Nasdaq: ...),Health

CINCINNATI, Nov. 4 /PRNewswire-FirstCall/ -- Kendle (Nasdaq: KNDL), a leading, global full-service clinical research organization, today reported solid net income of $8.8 million or $0.59 per diluted share for the third quarter of 2009, primarily the result of strong execution of its cost control initiatives, compared with net income of $9.4 million or $0.62 per diluted share for the third quarter of 2008. On a pro forma basis, excluding the additional non-cash interest and restructuring charge, net income per diluted share for the third quarter of 2009 was $0.71 compared with $0.73 per diluted share for the third quarter of 2008.

Third Quarter 2009 Results

Net revenues for the third quarter ended Sept. 30, 2009, were $104.6 million, down slightly from the second quarter. On a constant currency basis this is $111.9 million compared with $124.8 million for the same period of the prior year.

Operating income for the quarter increased from the second quarter of 2009 to $15.5 million or 14.9 percent of net revenues, primarily related to the Company's cost control initiatives coupled with the resolution of an insurance claim, previously discussed in connection with its Year End 2008 press release. The insurance recovery resulted in a $5.0 million reduction of direct costs for the third quarter of 2009. This reduction was partially offset by $1.6 million of additional expense to adjust a related liability. The net effect of these two items was to increase operating income by $3.4 million or 3.3 percent of net revenue. On a constant currency basis operating income was $17.8 million or 15.9 percent of net revenues compared with $15.9 million or 12.7 percent of net revenues for the third quarter of 2008.

New business awards for the third quarter of 2009 totaled $137.2 million, up from $132 million in the s
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