PARSIPPANY, N.J., Aug. 5, 2013 /PRNewswire/ -- PDI, Inc. (Nasdaq: PDII), today reported financial and operational results for the second quarter ended June 30, 2013. Summary financial and operating highlights include:
Condensed Summary Statements of Continuing Operations ($'s in millions, expect per share data)
Condensed Summary Statements of Continuing Operations
($'s in millions, expect per share data)2nd Quarter EndedSix Months EndedJune 30,*June 30,*2013201220132012Revenue, net$ 37.2$ 27.8$ 80.2$ 59.5Gross profit6.86.615.313.9Operating expenses:Compensation expense220.127.116.11.7Other SG&A18.104.22.168.8Total operating expenses7.76.913.914.5Operating (loss) income$ (0.8)$ (0.3)$ 1.4$ (0.5)Provision for income tax0.10.10.10.1(Loss) income from continuing operations$ (0.9)$ (0.4)$ 1.2$ (0.7)Diluted (loss) income per share from continuing operations$(0.06)$(0.03)$ 0.08$(0.05)*UnauditedCEO CommentsCommenting on the results, Nancy Lurker, chief executive officer of PDI, Inc., noted, "Revenues from contracts signed in the second half of 2012 and the first half of 2013 positively impacted our top line, resulting in revenue for the second quarter of 2013 increasing 34% to $37.2 million compared to the same period last year. Gross profit increased marginally to $6.8 million although, as anticipated, our gross profit as a percentage of revenue decreased to 18% in the second quarter of 2013, from 24% in the same period last year due to increasing competitive pressures. We continue to focus on cost containment and reduction but primarily as a result of the company's announced strategic initiatives, operating expenses increased $0.8 million in the 2013 quarter compared to last year. The operating loss for the 2013 second quarter was $0.8 million compared to $0.3 million last year. Adjusted EBITDA, our measure of cash flow from the ongoing business, was $0.2 million for the quarter."
Ms. Lurker continued, "As we have previously discussed, we entered 2013 with a strong backlog of business under contract, and we are pleased to note that during the second quarter, PDI signed additional new contracts valued at approximately $13 million, an estimated $5 million of which will fall into 2013. This brings our total new business for the year thus far to approximately $30 million, with an estimated $12 million to be recorded this year. Given the strong results through the second quarter and assuming a reasonable level of additional new business wins and no early termination of existing contracts, we continue to anticipate revenue for the full year to be approximately 25% higher than 2012. Additionally, as stated prior, we still expect our gross profit percentages to continue to decline over the course of 2013, resulting in gross profit dollars for the full year at or as much as 5% below the level achieved in 2012. We also still expect that full year operating expenses that support our core business will increase modestly compared to 2012 to support increased revenues in our Sales Services segment and in addition, we still expect to expense up to $3 million to support our strategic initiatives.
"We previously announced that 2013 would be a year of investment and expansion of our strategic focus. Given the dynamics of our current core businesses, we are committed to continuing to grow our top line, and to streamline costs while developing more predictable, higher growth and higher margin businesses. Strategically, we are also pursuing full product commercialization partnering opportunities that leverage our current PDI infrastructure and capabilities through Interpace BioPharma, our specialty biopharmaceutical division. In addition, we plan to launch a new Group DCA product that will connect health care providers, sales representatives and other promotional channels in a new and unique way."
Second Quarter Business Review Revenue- For the second quarter of 2013, revenue of $37.2 million was $9.4 million or 34% higher than the second quarter of 2012 driven by an increase in the company's Sales Services segment.
Gross Profit- For the second quarter of 2013, gross profit of $6.8 million was $0.3 million higher than the second quarter of 2012. The overall gross profit percentage however, decreased to 18% in 2013 from 24% in 2012.
Total Operating Expenses- Total operating expenses for the second quarter of 2013 of $7.7 million were $0.8 million higher than 2012. The net increase is primarily a result of the company's investment in strategic initiatives.
Operating Loss- The operating loss for the second quarter of 2013 was $0.8 million, compared to $0.3 million in the second quarter of 2012. The $0.5 million increase in 2013 operating loss was the result of lower margins on new business and the increase in operating expenses discussed above.
Liquidity and Cash Flow- Adjusted EBITDA (a non-GAAP measure defined in the release) for the second quarter of 2013 was $0.2 million compared to $0.8 million in the second quarter of 2012. Cash and cash equivalents at the end of the second quarter were $51.0 million, down $1.8 million from December 31, 2012 due primarily to working capital changes and capital expenditures.
As of June 30, 2013, the company's cash equivalents were predominantly invested in U.S. Treasury money market funds and the company had no commercial debt.
Non-GAAP Financial MeasuresIn addition to the United States generally accepted accounting principles, or GAAP, results provided throughout this document, PDI has provided certain non-GAAP financial measures to help evaluate the results of its performance. The company believes that these non-GAAP financial measures, when presented in conjunction with comparable GAAP financial measures, are useful to both management and investors in analyzing the company's ongoing business and operating performance. The company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the company's financial results in the way that management views financial results.
In this document, the company discusses Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is a metric used by management to measure cash flow of the ongoing business. Adjusted EBITDA is defined as operating income or loss, plus depreciation and amortization, non-cash stock-based compensation, and other non-cash expenses. The table below includes a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.Adjusted EBITDA (Unaudited)($ in thousands)2nd Quarter EndedSix Months EndedJune 30,June 30,2013201220132012Operating (loss) income$ (847)$ (316)$ 1,406$ (537)Depreciation and amortization289495577996Stock compensation7226071,0731,036Adjusted EBITDA$ 164$ 786$ 3,056$ 1,495
Conference CallAs previously announced, PDI will hold a conference call today, Monday, August 5, 2013 to discuss financial and operational results of the second quarter ended June 30, 2013 as follows:
Time: 4:30 PM (ET)
Dial-in numbers: (866) 644-4654 (U.S. and Canada) or (706) 643-1203
Conference ID#: 13699000
Live webcast: www.pdi-inc.com, under "Investor Relations"
The teleconference replay will be available three hours after completion through August 9, 2013 at (800) 585-8367 (U.S. and Canada) or (404) 537-3406. The replay pass code is 13699000. The archived web cast will be available for one year.
About PDI, Inc.PDI is a leading health care commercialization company providing superior insight-driven, integrated multi-channel message delivery to established and emerging health care companies. The company is dedicated to enhancing engagement with health care practitioners and optimizing commercial investments for its clients by providing strategic flexibility, full product commercialization services, innovative multi-channel promotional solutions, and sales and marketing expertise. For more information, please visit the company's website at http://www.pdi-inc.com.
Forward-Looking StatementsThis press release contains forward-looking statements regarding future events and financial performance. These statements are based on current expectations and assumptions involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond PDI's control. These statements also involve known and unknown risks, uncertainties and other factors that may cause PDI's actual results to be materially different from those expressed or implied by any forward-looking statement. For example, with respect to statements regarding projections of future revenues, growth and profitability, actual results may differ materially from those set forth in this release based on the loss, early termination or significant reduction of any of our existing service contracts, the failure to meet performance goals in PDI's incentive-based arrangements with customers or the inability to secure additional business. Additionally, all forward-looking statements are subject to the risk factors detailed from time to time in PDI's periodic filings with the Securities and Exchange Commission, including without limitation, PDI's Annual Report on Form 10-K for the year ended December 31, 2012, and PDI's subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, PDI undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
(Tables to Follow)
PDI, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(in thousands, except per share data)Three Months EndedSix Months EndedJune 30,June 30,2013201220132012Revenue, net
59,486Cost of services
4,9144,0699,0698,651Other selling, general and administrative expenses
2,7822,8174,8475,822Total operating expenses
7,6966,88613,91614,473Operating (loss) income
(847)(316)1,406(537)Other expense, net
(24)(15)(34)(15)(Loss) Income from continuing operations beforeincome tax
(871)(331)1,372(552)Provision for income tax
6463128145(Loss) income from continuing operations
(935)(394)1,244(697)(Loss) income from discontinued operations, net of tax
52(45)(2)(14)Net (loss) income
(711)Basic (loss) income per share of common stock:From continuing operations
(0.05)From discontinued operations
----Net (loss) income per basic share of common stock
(0.05)Diluted (loss) income per share of common stock:From continuing operations
(0.05)From discontinued operations
---- Net (loss) income per diluted share of common stock
(0.05)Weighted average number of common shares and common share equivalents outstanding:Basic
14,71314,56915,15414,553Segment Data (Unaudited)($ in thousands)SalesMarketingPCServicesServicesServices*ConsolidatedThree months ended June 30, 2013:Revenue, net
,849Gross profit %
16.3%38.8%29.0%18.4%Three months ended June 30, 2012:Revenue, net
,570Gross profit %
20.0%36.9%31.0%23.6%Six months ended June 30, 2013:Revenue, net
5,322Gross profit %
17.8%32.1%26.7%19.1%Six months ended June 30, 2012:Revenue, net
3,936Gross profit %
20.6%38.7%26.6%23.4%* Product Commercialization (PC) ServicesSelected Balance Sheet Data (Unaudited)($ in thousands) June 30, December 31, 20132012Cash and cash equivalents
52,783Total current assets
71,583Total current liabilities
42,817Total stockholders' equity
35,630Selected Cash Flow Data (Unaudited)($ in thousands) Six Months Ended June 30, 20132012Net income (loss)
(711)Non-cash items:Depreciation and amortization
7171Net change in assets and liabilities
(3,537)(8,233)Net cash used in operations
(6,841)Change in cash and cash equivalents
|SOURCE PDI, Inc.|
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