Exhibit 99.1 [LETTERHEAD OF PDI] For more information contact: Stephen P. Cotugno Executive Vice President-Corporate Development PDI, Inc. 201.574.8617 PDI REPORTS REVISED 1st QUARTER 2003 EPS OF $0.05 ON REVENUE OF $67.5M Revised EPS of $0.05 versus previously reported $0.02 gives effect to settlement of Auxilium litigation for less than previously estimated reserve Reiterates guidance for 2003 EPS at $0.48 to $0.53, excluding settlement expense. Upper Saddle River, New Jersey (Wednesday, May 14, 2003). PDI, Inc. (Nasdaq:PDII) a commercial sales and marketing provider to the biopharmaceutical and medical devices and diagnostics industries, today announced its final first quarter 2003 financial results. These results give effect to the settlement with Auxilium Pharmaceuticals, Inc. and related expenses, totaling $2.1 million, an amount less than the $3.0 million previously estimated by the Company. Net total revenue for the quarter ended March 31, 2003 was $67.5 million, 8.6% lower than net total revenue of $73.9 million for the quarter ended March 31, 2002. Operating income for the quarter ended March 31, 2003 was $1.1 million, compared to an operating loss of $4.5 million for the quarter ended March 31, 2002. Net income for the quarter ended March 31, 2003 was $253778,000 compared to a net loss of $2.3 million for the quarter ended March 31, 2002. Diluted net income per share was $0.05 for the quarter ended March 31, 2003 compared to a net loss per share of $0.16 for the quarter ended March 31, 2002. Quarter ended March 31, 2003 (in thousands except per share data) ------------------------------------ **Excluding Litigation As Reported Reserve ----------- ---------- Net Revenue $67,545 $67,545 Operating income 1,065 1,065 Special items: Litigation settlement 2,100 Operating income 1,065 3,165 Net income $ 778 $ 2,002 Net income per share $ 0.05 $ 0.14 ** Adjusted amounts are not in accordance with GAAP, but are presented for analytical purposes. About PDI PDI is an innovative commercial sales and marketing provider to the biopharmaceutical and medical devices & diagnostics industries. Its three business units offer service and product-based capabilities for companies seeking to maximize profitable brand sales growth. The three units include the PDI Pharmaceutical Products Group, the PDI Sales and Marketing Services Group and the PDI Medical Devices and Diagnostics Group. For more information, visit the Company's website at www.pdi-inc.com. This press release contains forward-looking statements regarding the timing and financial impact of the Company's ability to implement its business plan, expected revenues, earnings per share and success during 2003. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to 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. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, changes in our operating expenses, adverse patent, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and 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, 2002. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. PDI disclaims any obligation to update these statements. Page 2 PDI, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited)
March 31, December 31, 2003 2002 --------- --------- ASSETS Current assets: Cash and cash equivalents ................................................ $ 64,255 $ 66,827 Short-term investments ................................................... 4,094 5,834 Inventory, net ........................................................... 964 646 Accounts receivable, net of allowance for doubtful accounts of $798 and $1,063 as of March 31, 2003 and December 31, 2002, respectively ........................................................... 34,887 40,729 Unbilled costs and accrued profits on contracts in progress .............. 9,472 3,360 Deferred training ........................................................ 2,168 1,106 Prepaid income tax ....................................................... 16,204 18,856 Other current assets ..................................................... 5,960 4,804 Deferred tax asset ....................................................... 7,420 7,420 --------- --------- Total current assets ........................................................ 145,424 149,582 Net property and equipment .................................................. 17,266 18,295 Deferred tax asset .......................................................... 7,820 7,820 Goodwill .................................................................... 11,132 11,132 Other intangible assets ..................................................... 2,108 2,261 Other long-term assets ...................................................... 1,749 1,849 --------- --------- Total assets ................................................................ $ 185,499 $ 190,939 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ......................................................... $ 5,011 $ 5,374 Accrued returns, rebates and sales discounts ............................. 16,186 16,500 Accrued incentives ....................................................... 9,936 11,758 Accrued salaries and wages ............................................... 7,191 6,617 Unearned contract revenue ................................................ 8,164 9,473 Restructuring accruals ................................................... 1,851 4,699 Other accrued expenses ................................................... 13,029 13,307 --------- --------- Total current liabilities ................................................... 61,368 67,728 Total long-term liabilities ................................................. -- -- --------- --------- Total liabilities ........................................................... $ 61,368 $ 67,728 --------- --------- Stockholders' equity: Common stock, $.01 par value, 100,000,000 shares authorized: shares issued and outstanding, March 31, 2003 and - 14,165,880, December 31, 2002 - 14,165,880; 44,325 restricted shares issued and outstanding at March 31, 2003 and December 31, 2002 ............................................. $ 142 $ 142 Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding .......................................... -- -- Additional paid-in capital (includes restricted of $1,547 at March 31, 2003 and December 31, 2002) .................................. 106,673 106,673 Retained earnings ........................................................... 18,025 17,247 Accumulated other comprehensive loss ........................................ (69) (100) Unamortized compensation costs .............................................. (530) (641) Treasury stock, at cost: 5,000 shares ....................................... (110) (110) --------- --------- Total stockholders' equity .................................................. $ 124,131 $ 123,211 --------- --------- Total liabilities & stockholders' equity .................................... $ 185,499 $ 190,939 ========= =========
Page 3 PDI, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
Three Months Ended March 31, ---------------------------- 2003 2002 -------- -------- Revenue Service, net ........................................... $67,511$ 68,160 Product, net ........................................... 34 5,723 -------- -------- Total revenue, net ................................... 67,545 73,883 -------- -------- Cost of goods and services Program expenses (including related party amounts of $73 and $97 for the periods ended March 31, 2003 and 2002, respectively) ................ 49,881 67,277 Cost of goods sold ..................................... 62 -- -------- -------- Total cost of goods and services ..................... 49,943 67,277 -------- -------- Gross profit .............................................. 17,602 6,606 Operating expenses Compensation expense ................................... 8,874 7,759 Other selling, general and administrative expenses ..... 5,833 3,325 Restructuring and other related expenses ............... (270) -- Litigation settlement .................................. 2,100 -- -------- -------- Total operating expenses ............................. 16,537 11,084 -------- -------- Operating income (loss) ................................... 1,065 (4,478) Other income, net ......................................... 269 889 -------- -------- Income (loss) before provision for taxes .................. 1,334 (3,589) Provision (benefit) for income taxes ...................... 556 (1,322) -------- -------- Net income (loss) ......................................... $ 778 $ (2,267) ======== ======== Basic net income (loss) per share ......................... $ 0.05 $ (0.16) ======== ======== Diluted net income (loss) per share ....................... $ 0.05 $ (0.16) ======== ======== Basic weighted average number of shares outstanding ....... 14,166 13,969 ======== ======== Diluted weighted average number of shares outstanding ..... 14,237 13,969 ======== ========
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