SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 15, 2001
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PROFESSIONAL DETAILING, INC.
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(Exact name of Registrant as specified in its charter)
DELAWARE 0-24249 22-2919486
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(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
10 Mountainview Road,
Upper Saddle River, NJ 07458
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(Address of principal executive (Zip Code)
office)
(201) 258-8450
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Registrant's telephone number, including area code:
N/A
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(Former name or former address, if changed since last
report)
Item 5. Other Events
On February 15, 2001 the Registrant issued the following press release:
"PROFESSIONAL DETAILING, INC. REPORTS FOURTH QUARTER AND
YEAR-END 2000 FINANCIAL RESULTS
Net total revenue up 268% to $185.4 million; operating income up 333%
to $16.8 million and EPS up 221% to $0.77 per share over adjusted fourth
quarter 1999 (Table 1).
Upper Saddle River, New Jersey (Thursday, February 15, 2001) Professional
Detailing, Inc. (Nasdaq: PDII) today announce revenue, net income and net income
per share for the quarter and year ended December 31, 2000.
Quarterly Results
Net total revenue for the quarter ended December 31, 2000 was $185.4 million, an
increase of 267.5% over net total revenue of $50.5 million for the quarter ended
December 31, 1999. Net product revenue for the quarter ended December 31, 2000
was $101.0 million and was zero in the earlier period. Net service revenue for
the quarter ended December 31, 2000 was $84.4 million, an increase of 67.3% over
net service revenue of $50.5 million for the quarter ended December 31, 1999.
Operating income for the quarter ended December 31, 2000 was $16.8 million, an
increase of 332.7% over operating income (adjusted for acquisition and related
expenses - Table 1) of $3.9 million for the quarter ended December 31, 1999. Net
income for the quarter ended December 31, 2000 of $10.9 million increased 274.1%
over net income (adjusted for acquisition and related expenses - Table 1) of
$2.9 million for the quarter ended December 31, 1999. Diluted net income per
share of $0.77 for the quarter ended December 31, 2000 increased 220.8% over
diluted net income per share (adjusted for acquisition and related expenses -
Table 1) of $0.24 for the quarter ended December 31, 1999.
Annual Results
Net total revenue for the twelve months ended December 31, 2000 was $416.9
million, an increase of 138.3% over net total revenue of $174.9 million for the
twelve months ended December 31, 1999. Net product revenue for the twelve months
ended December 31, 2000 was $101.0 million and was zero in the earlier period.
Net service revenue for the twelve months ended December 31, 2000 was $315.9
million, an increase of 80.6% over net service revenue of $174.9 million for the
twelve months ended December 31, 1999. Operating income for the twelve months
ended December 31, 2000 was $40.9 million, an increase of 160.0% over operating
income (adjusted for acquisition and related expenses - Table 1) of $15.7
million for the twelve months ended December 31, 1999. Net income for the twelve
months ended December 31, 2000 of $27.0 million was 134.7% higher than net
income (adjusted for acquisition and related expenses - Table 1) of $11.5
million for the twelve months ended December 31, 1999. Diluted net income per
share of $1.96 for the twelve months ended December 31, 2000 was 106.3% higher
than diluted net income per share (adjusted for acquisition and related expenses
- - Table 1) of $0.95 for the twelve months ended December 31, 1999.
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The Company's historical results have been restated to include the Company's
acquisition of TVG, Inc. (TVG) in May of 1999 in a transaction which was
accounted for as a pooling of interests.
Charles T. Saldarini, Chief Executive Officer of Professional Detailing, Inc.
commented, "The fourth quarter and full year results demonstrate we have been
successful in creating a profitable platform for not just our fee for service
contract business, but also for the full set of commercialization partnerships
we are now offering and have already begun to profit from."
Webcast
PDI will conduct a live webcast of its Earnings Release Briefing at 5:30 PM EST
on February 15, 2001. The live webcast of the event will be accessible through
PDI's website, www.pdi-inc.com and will be archived on the website for future
on-demand replay through March 1, 2001.
Company Background & Services
Professional Detailing, Inc. is a leading provider of customized sales and
marketing solutions to the pharmaceutical industry. The Company designs and
manages customized product detailing programs for some of the world's largest
pharmaceutical companies, managing some of the largest contract sales efforts in
the world.
The Company has three operating segments which provide the following services:
Dedicated Contract Sales Services, in which programs are customized to client
specifications;
Syndicated Contract Sales Services, provided through the Company's ProtoCall
unit, enabling clients to tap into an existing, large-scale sales team for
specific detail positions and periods;
LifeCycle X-Tension Services, providing sales, marketing and distribution
services for companies facing portfolio optimization challenges;
LifeCycle Launch, providing commercial launch services for emerging and
biotechnology companies to independently launch new brands;
Medical Education and Communication Services, provided through the Company's TVG
unit, through which clients can access continuing medical education, Sales Force
Tactical Briefings(TM) and peer to peer promotion; and
Marketing Research and Consulting Services, provided through the Company's TVG
unit, enabling clients to study qualitative and quantitative aspects of brand
performance on a pre-launch, launch and continuing basis.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and Section 21E of the Exchange Act, the
Company notes that statements in this release which look forward in time
involve risks and uncertainties that may cause actual results or
achievements to materially differ from those indicated by the
forward-looking statements. These
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forward-looking statements include statements relating to the Company's
existing programs and development of new business opportunities, as well
as any other statements which are not solely historical. The Company's
plans and objectives are based on assumptions involving judgments with
respect to future economic, regulatory, competitive and market conditions
and future business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of the
Company. Therefore, there can be no assurance that the forward-looking
statements will prove to be accurate. The Company's documents filed with
the SEC, including the Company's recent Registration Statement on Form
S-3, identify important factors that may cause the actual results to
differ materially from those indicated by the forward-looking statements.
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Professional Detailing, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
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2000 1999 2000 1999
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(in thousands, except per share data)
Revenue
Service, net $ 84,423 $ 50,459 $ 315,867 $ 174,902
Product, net 101,007 -- 101,007 --
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Total revenue, net 185,430 50,459 416,874 174,902
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Cost of goods and services
Program expenses 63,893 37,073 235,354 130,121
Cost of goods sold 68,998 -- 68,998 --
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Total cost of goods and services 132,891 37,073 304,352 130,121
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Gross profit 52,539 13,386 112,522 44,781
Compensation expense 9,786 5,978 32,820 19,611
Other selling, general and administrative expenses(1) 25,986 3,533 38,827 9,448
Acquisition and related expenses -- (495) -- 1,246
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Total selling, general and administrative expenses 35,772 9,016 71,647 30,305
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Operating income 16,767 4,370 40,875 14,476
Other income, net 1,941 966 4,865 3,471
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Income before provision for income taxes 18,708 5,336 45,740 17,947
Provision for income tax 7,841 2,477 18,712 7,539
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Net income $ 10,867 $ 2,859 $ 27,028 $ 10,408
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Basic net income per share $ 0.79 $ 0.24 $ 2.00 $ 0.87
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Diluted net income per share $ 0.77 $ 0.24 $ 1.96 $ 0.86
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Basic weighted average number of
shares outstanding 13,768,203 11,972,112 13,503,061 11,958,196
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Diluted weighted average number of
shares outstanding 14,173,968 12,165,968 13,773,040 12,167,321
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Pro forma data
Income before provision for income taxes $ 17,947
Pro forma provision for income taxes(2) 7,677
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Pro forma net income(2) $ 10,270
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Pro forma basic net income per share(2) $ 0.86
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Pro forma diluted net income per share(2) $ 0.84
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Basic weighted average number of
shares outstanding 11,958,196
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Diluted weighted average number of
shares outstanding 12,167,321
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(1) Other selling, general and administrative expenses include the
amortization of goodwill in the amount of $117K and $111K for the quarters
ended December 31, 2000 and 1999, respectively, and $352K and $143K for
the twelve months ended December 31, 2000 and 1999, respectively.
(2) Pro forma provision for income taxes, pro forma net income, and pro forma
basic and diluted net income per share for the twelve months ended
December 31, 1999 reflects a provision for income taxes as if TVG had been
taxed as a C corporation. Prior to its acquisition by PDI on May 12, 1999,
TVG was an S corporation for Federal income tax purposes.
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Professional Detailing, Inc.
Results Excluding Acquisition and Related Expenses
(unaudited)
TABLE 1
Three Months Ended Twelve Months Ended
December 31, December 31,
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2000 1999 2000 1999
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(in thousands, except per share data)
Adjusted for acquisition and related expenses
Operating income $ 16,767 $ 4,370 $ 40,875 $ 14,476
Acquisition and related expenses -- (495) -- 1,246
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Adjusted operating income 16,767 3,875 40,875 15,722
Other income, net 1,941 966 4,865 3,471
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Adjusted income before
provision for income taxes 18,708 4,841 45,740 19,193
Adjusted provision for income taxes(3) 7,841 1,936 18,712 7,677
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Adjusted net income 10,867 2,905 27,028 11,516
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Adjusted basic net income per share $ 0.79 $ 0.24 $ 2.00 $ 0.96
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Adjusted diluted net income per share $ 0.77 $ 0.24 $ 1.96 $ 0.95
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Basic weighted average
number of shares outstanding 13,768,203 11,972,112 13,503,061 11,958,196
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Diluted weighted average
number of shares outstanding 14,173,968 12,165,968 13,773,040 12,167,321
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(3) The provision for income taxes assumes that TVG was taxed as a C
corporation for the periods presented. "
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PROFESSIONAL DETAILING, INC.
By: /s/ Charles T. Saldarini
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Charles T. Saldarini, Vice Chairman
and Chief Executive Officer
Date: February 15, 2001
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