Exhibit 99.1
[LOGO] PDI News Release
10 Mountanview Road Suite C200
Upper Saddle River, New Jersey 07458
T: 800.242.7494 F: 201.258.8400
www.pdi-inc.com
For more information contact:
Stephen P. Cotugno
Executive Vice President-Corporate Development
PDI, Inc.
201.574.8617
PDI REPORTS 3rd QUARTER 2003 EPS OF $0.29
Revenue up 33.6% to $86.3 million
Raises 2003 EPS guidance to $0.90 to $0.95 from $0.75 to $0.80, excluding
litigation reserve
Upper Saddle River, New Jersey (Wednesday, November 5, 2003). PDI, Inc.
(Nasdaq:PDII) a premier healthcare sales and marketing company, today announced
its third quarter 2003 financial results.
Quarterly Results
Net total revenue for the quarter ended September 30, 2003 was $86.3 million,
33.6% more than net total revenue of $64.6 million for the quarter ended
September 30, 2002. Operating income was $6.5 million for the quarter ended
September 30, 2003 compared to an operating loss of $22.5 million for the
quarter ended September 30, 2002. Net income was $4.2 million for the quarter
ended September 30, 2003 compared to a net loss of $14.3 million for the quarter
ended September 30, 2002. Diluted net income per share for the quarter ended
September 30, 2003 was $0.29 versus a net loss per share of $1.02 for the
quarter ended September 30, 2002.
Year-to-Date Results
Net total revenue for the nine months ended September 30, 2003 was $225.1
million, 9.8% higher than net total revenue of $205.0 million for the nine
months ended September 30, 2002. Operating income was $12.1 million for the nine
months ended September 30, 2003 versus an operating loss of $41.9 million for
the nine months ended September 30, 2002. Net income was $7.8 million for the
nine months ended September 30, 2003 versus a net loss of $25.8 million for the
nine months ended September 30, 2002. Diluted net income per share was $0.54 for
the nine months ended September 30, 2003 compared to a net loss per share of
$1.84 for the nine months ended September 30, 2002. Results for the quarter and
nine months ended September 30, 2002 were significantly impacted by a loss on
the Evista contract including a reserve recognized in the third quarter of 2002,
as well as certain restructuring costs.
Year-to-date operating income and net income per share results, excluding the
litigation reserve recorded in the first quarter, are as follows:
---------------------------------------------------------
Nine Months Ended
September 30, 2003
(in thousands except per share data)
---------------------------------------------------------
**Excluding
As Reported Litigation
Reserve
---------------------------------------------------------
Net Revenue $225,085 $225,085
---------------------------------------------------------
Operating income 12,146 12,146
---------------------------------------------------------
Special items:
---------------------------------------------------------
Litigation reserve 2,100
---------------------------------------------------------
Operating income 12,146 14,246
---------------------------------------------------------
Net income $ 7,772 $ 9,039
---------------------------------------------------------
Net income per share $ 0.54 $ 0.63
---------------------------------------------------------
** Adjusted amounts are not in accordance with GAAP, but are presented
for analytical purposes.
Charles T. Saldarini, Vice Chairman and CEO, PDI stated, "We are obviously very
pleased with our third quarter performance. We had significant increases, both
year over year and quarter to quarter, in revenue and earnings based on
realizing the impact from the contract sales business we announced earlier in
the year as well as our continued focus on controlling costs."
Regarding the 2004 outlook, Mr. Saldarini continued, "We are finalizing our 2004
profit plan and will be providing 2004 EPS guidance during the first or second
week of December."
Webcast Conference Call
PDI will conduct a live webcast of its Earnings Release Briefing at 9:00 AM EDT
on Thursday, November 6, 2003. 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. For those without internet access, the call can be
accessed by dialing 1-877-423-4030 within the US and 1-706-634-1929
internationally and asking for the PDI Earnings Release Conference Call. The
call will be archived for two weeks and can be accessed by calling
1-800-642-1687 or 1-706-645-9291 and entering the conference ID number 3369650.
Page 2 Structure/Strategy/Vision
About PDI
PDI, a premier healthcare sales and marketing company, provides strategic
alternatives to the portfolio challenges of biopharmaceutical and medical device
and diagnostics manufacturers. Focusing on two core businesses, sales and
marketing services and product commercialization, PDI leverages its expertise
and commercial infrastructure to maximize profitable brand growth. Manufacturers
choose the relationship which best meets their strategic and financial
objectives, ranging from individual or bundled service agreements to broader
commercial partnerships.
For more information, visit the Company's website at www.pdi-inc.com.
Forward Looking Statement
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, finalization of contract negotiations, 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 rulings, FDA or legal developments,
competitive pressures, failure to meet performance benchmarks in significant
contracts, 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, and PDI's periodic
reports on Forms 10-Q and 8-K filed with the Securities and Exchange Commission
since January 1, 2003 . The forward looking-statements in this press release are
based upon management's reasonable belief as of the date hereof. PDI undertakes
no obligation to revise or update publicly any forward-looking statements for
any reason.
Page 3 Structure/Strategy/Vision
PDI, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
September 30, December 31,
2003 2002
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents ........................................... $ 99,125 $ 66,827
Short-term investments .............................................. 1,697 5,834
Inventory, net of obsolescence reserve of $835 and $0 as of
September 30, 2003 and December 31, 2002, respectively ............ 174 646
Accounts receivable, net of allowance for doubtful accounts of
$1,328 and $1,063 as of September 30, 2003 and December
31, 2002, respectively .......................................... 37,700 40,729
Unbilled costs and accrued profits on contracts in progress ......... 4,466 3,360
Deferred training ................................................... 1,703 1,106
Prepaid income tax .................................................. -- 18,856
Other current assets ................................................ 7,853 4,804
Deferred tax asset .................................................. 7,420 7,420
--------- ---------
Total current assets ................................................... 160,138 149,582
Net property and equipment ............................................. 15,809 18,295
Deferred tax asset ..................................................... 7,820 7,820
Goodwill ............................................................... 11,132 11,132
Other intangible assets ................................................ 1,801 2,261
Other long-term assets ................................................. 1,709 1,849
--------- ---------
Total assets ........................................................... $ 198,409 $ 190,939
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .................................................... $ 5,164 $ 5,374
Accrued returns, rebates and sales discounts ........................ 10,767 16,500
Accrued incentives .................................................. 17,004 11,758
Accrued salaries and wages .......................................... 8,425 6,617
Unearned contract revenue ........................................... 8,673 9,473
Restructuring accruals .............................................. 474 4,699
Other accrued expenses .............................................. 15,301 13,307
--------- ---------
Total current liabilities .............................................. 65,808 67,728
--------- ---------
Total liabilities ...................................................... $ 65,808 $ 67,728
--------- ---------
Stockholders' equity:
Common stock, $.01 par value, 100,000,000 shares authorized:
shares issued and outstanding, September 30, 2003 - 14,259,203,
December 31, 2002 - 14,165,880; restricted shares issued and
outstanding at September 30, 2003 - 141,770, December 31, 2002
- 44,325 .......................................................... $ 144 $ 142
Preferred stock, $.01 par value, 5,000,000 shares authorized, no
shares issued and outstanding ..................................... -- --
Additional paid-in capital (includes restricted shares of $2,253 and
$1,547 at September 30, 2003 and December 31, 2002, respectively) ... 108,264 106,673
Retained earnings ...................................................... 25,019 17,247
Accumulated other comprehensive income (loss) .......................... 43 (100)
Unamortized compensation costs ......................................... (759) (641)
Treasury stock, at cost: 5,000 shares .................................. (110) (110)
--------- ---------
Total stockholders' equity ............................................. 132,601 123,211
--------- ---------
Total liabilities & stockholders' equity ............................... $ 198,409 $ 190,939
========= =========
Page 4 Structure/Strategy/Vision
PDI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- -------------------------
2003 2002 2003 2002
------- -------- --------- ---------
Revenue
Service, net .................................................... $86,200 $ 64,353 $ 224,888 $ 198,546
Product, net .................................................... 81 215 197 6,438
------- -------- --------- ---------
Total revenue, net ........................................... 86,281 64,568 225,085 204,984
------- -------- --------- ---------
Cost of goods and services
Program expenses (including related party amounts of $653
and $4 for the quarters ended September 30, 2003 and 2002,
respectively and $1,287 and $109 for the nine months ended
September 30, 2003 and 2002, respectively) .................... 61,815 67,475 162,004 200,473
Cost of goods sold .............................................. 952 -- 1,097 --
------- -------- --------- ---------
Total cost of goods and services ............................. 62,767 67,475 163,101 200,473
------- -------- --------- ---------
Gross profit (loss) ................................................ 23,514 (2,907) 61,984 4,511
Compensation expense ............................................... 9,297 9,157 27,294 26,210
Other selling, general and administrative expenses ................. 7,676 9,433 20,714 19,207
Restructuring and other related expenses .......................... -- 972 (270) 972
Litigation settlement .............................................. -- -- 2,100 --
------- -------- --------- ---------
Total operating expenses ........................................ 16,973 19,562 49,838 46,389
------- -------- --------- ---------
Operating income (loss) ............................................ 6,541 (22,469) 12,146 (41,878)
Other income, net .................................................. 246 459 741 1,704
------- -------- --------- ---------
Income (loss) before provision for taxes ........................... 6,787 (22,010) 12,887 (40,174)
Provision (benefit) for income taxes ............................... 2,605 (7,696) 5,115 (14,403)
------- -------- --------- ---------
Net income (loss) .................................................. $ 4,182 $(14,314) $ 7,772 $ (25,771)
======= ======== ========= =========
Basic net income (loss) per share .................................. $ 0.29 $ (1.02) $ 0.55 $ (1.84)
======= ======== ========= =========
Diluted net income (loss) per share ................................ $ 0.29 $ (1.02) $ 0.54 $ (1.84)
======= ======== ========= =========
Basic weighted average number of shares outstanding ................ 14,252 14,063 14,202 14,012
======= ======== ========= =========
Diluted weighted average number of shares outstanding .............. 14,543 14,063 14,349 14,012
======= ======== ========= =========
Page 5 Structure/Strategy/Vision