TIDMRPSE
RNS Number : 4345X
Research Pharmaceutical SRV, Inc
14 August 2009
ReSearch Pharmaceutical Services, Inc.
Unaudited Quarterly Report for the period ended June 30, 2009
ReSearch Pharmaceutical Services, Inc. ("RPS" or the "Company"), a leading
provider of integrated clinical development outsourcing solutions to the
bio-pharmaceutical industry, is pleased to announce its results for the second
quarter and six months ended June 30, 2009. These statements include unaudited
comparative results for RPS for the quarter and six months ended June 30, 2008.
In addition, RPS announces that it has today filed a Form 10-Q in the U.S., as
required by the Securities and Exchange Commission ("SEC"). A copy of the Form
10-Q is available on our website (www.rpsweb.com).
Financial highlights for the three months to June 30, 2009
* Service revenues for the second quarter of 2009 of $48.4 million grew $8.2
million or 20.3% as compared to the same period in 2008
* EBITDA for the second quarter of 2009 of $2.5 million or 5.1% of
service revenues, increased from $2.0 million or 4.4% of service revenues for
the first quarter of 2009
* Net income before provision for income taxes for the second quarter of 2009 of
$1.4 million
Financial highlights for the six months to June 30, 2009
* Service revenues for the six months ended June 30, 2009 of $93.7 million grew
$15.4 million or 19.6% as compared to the same period in 2008
* EBITDA for the six months ended June 30, 2009 of $4.5 million or 4.8% of service
revenues
* Net income before provision for income taxes for the six months ended June 30,
2009 of $2.5 million
Operational highlights for the six months ended June 30, 2009
* On March 30, 2009, the Company announced that it had entered into an agreement
to acquire a clinical research organization (CRO) in China, providing the
Company with expanded capabilities in the Asian market and complementing its
current operations in the Americas and Europe. This acquisition was completed on
July 8, 2009
A description of each non-GAAP financial measure and the related reconciliation
to the comparable GAAP measure are located at the end of this press release.
Commenting on the second quarter results, Daniel M. Perlman, Chairman and CEO of
RPS, said:
"In the second quarter, RPS continued its expansion in Europe with
incorporations completed or in progress in 21 countries. The continued expansion
of our services in Europe and Southeast Asia is part of RPS' ongoing strategy to
meet the growing needs of our clients for global drug development capabilities."
For further information please contact:
+------------------------------------------+------------------------------------------+
| ReSearch Pharmaceutical Services, Inc. | +1 215 540 0700 |
| Dan Perlman, Chief Executive Officer | |
| Steven Bell, Chief Financial Officer | |
+------------------------------------------+------------------------------------------+
| | |
+------------------------------------------+------------------------------------------+
| Nominated Adviser and UK Broker: | +44 20 7012 2100 |
| Arbuthnot Securities Limited | |
| James Steel / Edward Burbidge | |
+------------------------------------------+------------------------------------------+
ReSearch Pharmaceutical Services, Inc.
Unaudited Quarterly Report to June 30, 2009
Background on RPS
Headquartered in Ft. Washington, Pennsylvania, with subsidiary offices across
Latin America and three recently acquired subsidiaries in Europe, RPS is a next
generation CRO and a leading provider of integrated clinical development and
enhanced full-service outsourcing solutions to the bio-pharmaceutical industry.
RPS provides services in connection with the design, initiation and management
of clinical trials programs that are required to obtain regulatory approval to
market bio-pharmaceutical products. Our innovative business model combines the
expertise of a traditional CRO with the ability to provide flexible outsourcing
solutions that are fully integrated within our clients' clinical drug
development infrastructure. This approach was designed to meet the varied needs
of small, medium and large bio-pharmaceutical companies. RPS is quoted on the
Alternative Investment Market ("AIM") of the London Stock Exchange.
Operating review of the three months ended June 30, 2009 compared to three
months ended June 30, 2008
Revenues. Service revenues increased 20.3% to $48.4 million for the three months
ended June 30, 2009 from $40.3 million for the three months ended June 30, 2008
as we generated additional business from existing and new customers. The
majority of the increase is related to the continued build from existing
contracts with several bio-pharmaceutical companies in our Clinical Master
Service Provider ("CMSP") programs in addition to the revenue generated by the
recently acquired companies in Europe. CMSP revenue for the three months ended
June 30, 2009 grew 20.1% over the comparable prior period, and accounted for
60.7% of our total service revenue for the three months ended June 30, 2009.
Reimbursement revenues and offsetting reimbursable out-of-pocket costs fluctuate
from period to period due primarily to the level of pass-through expenses in a
particular period. Reimbursement revenues and reimbursable out-of-pocket costs
increased 29.6% to $5.9 million during the three months ended June 30, 2009 from
$4.6 million during the three months ended June 30, 2008. The increase is due
primarily to an increase in the number of staff incurred expenses on client
programs and an increase related to the European Acquisitions.
Direct Costs. Direct costs increased 16.2% to $34.9 million or 72.1% of service
revenues for the three months ended June 30, 2009 as compared to $30.1 million
or 74.7% of service revenues for the three months ended June 30, 2008. The
increase in direct costs is directly correlated with the increase in revenues as
described above. The primary costs included in direct costs are operational
staff payroll and related taxes and benefits.
Selling, general and administrative expenses. Selling, general and
administrative expenses ("SG&A") increased 42.3% to $11.0 million for the three
months ended June 30, 2009 from $7.8 million for the three months ended June 30,
2008 to support the increase in revenues. The primary reason for the increase in
SG&A was the additional overhead costs of the European Acquisitions which
resulted in increases in employee-related costs such as salaries, health
benefits and payroll taxes to $6.4 million for the three months ended June 30,
2009 as compared to $4.8 million for the three months ended June 30, 2008.
Additionally, due to our increasing global footprint we saw an increase in rent
and travel expense to $1.4 million for the three months ended June 30, 2009 as
compared to $0.9 million for the three months ended June 30, 2008.
Depreciation and amortization expense. Depreciation and amortization expense
increased 108.7% to $0.9 million for the three months ended June 30, 2009 as
compared to $0.4 million for the three months ended June 30, 2008 due primarily
to an increase in the depreciable asset base and amortization of intangible
assets related to the European Acquisitions.
Income from operations. Income from operations decreased to $1.6 million for the
three months ended June 30, 2009 as compared to income from operations of $2.0
million for the three months ended June 30, 2008. The decrease is
attributable primarily to an increase in our SG&A as a result of our integration
efforts in connection with the European Acquisitions, as described above.
Interest income and expense. Interest income increased to $94,000 during the
three months ended June 30, 2009 from $71,000 during the three months ended June
30, 2008 due to the level of investable cash on hand during the second quarter
of 2009. Interest expense increased to $323,000 for the three months ended June
30, 2009 from $89,000 during the three months ended June 30, 2008. The increase
is due to the interest expense calculated on the outstanding balance on our line
of credit.
Provision for income taxes. The provision for income taxes for the three months
ended June 30, 2009 of $0.9 million was consistent with the provision for the
three months ended June 30, 2008. Although the provision for income taxes
remained flat during the three months ended June 30, 2009 as compared to the
three months ended June 30, 2008, the effective tax rate increased as we are not
recording a tax benefit for net operating losses generated in Germany, France
and Spain, as it is more likely than not that we will not realize the tax
benefit of these operating losses.
Net income. As a result of the factors discussed above, net income for the three
months ended June 30, 2009 decreased to $0.5 million or $0.01 per share, basic
and diluted, from net income for the three months ended June 30, 2008 of $1.2
million or $0.04 per basic share and $0.03 per diluted share.
Operating review of the six months ended June 30, 2009 compared to six months
ended June 30, 2008
Revenues. Service revenues increased 19.6% to $93.7 million for the six months
ended June 30, 2009 from $78.3 million for the six months ended June 30, 2008 as
we generated additional business from existing and new customers. The majority
of the increase is related to the continued build from existing contracts with
several bio-pharmaceutical companies in our CMSP programs. CMSP revenue for the
six months ended June 30, 2009 grew 20.2% over the comparable prior period, and
accounted for 61.4% of our total service revenue for the six months ended June
30, 2009.
Reimbursement revenues and offsetting reimbursable out-of-pocket costs fluctuate
from period to period due primarily to the level of pass-through expenses in a
particular period. Reimbursement revenues and reimbursable out-of-pocket costs
increased 31.0% to $10.9 million during the six months ended June 30, 2009 from
$8.3 million during the six months ended June 30, 2008. The increase is due
primarily to an increase in the number of staff incurred expenses on client
programs.
Direct Costs. Direct costs increased 16.7% to $68.2 million or 72.7% of service
revenues for the six months ended June 30, 2009 as compared to $58.4 million or
74.5% of service revenues for the six months ended June 30, 2008. The increase
in direct costs is directly correlated with the increase in revenues as
described above. The primary costs included in direct costs are operational
staff payroll and related taxes and benefits.
Selling, general and administrative expenses. SG&A increased 41.7% to $21.1
million for the six months ended June 30, 2009 from $14.9 million for the six
months ended June 30, 2008 to support the increase in revenues. The primary
reason for the increase in SG&A was the additional overhead costs of the
European Acquisitions which resulted in increases in employee-related costs such
as salaries, health benefits and payroll taxes to $12.3 million for the six
months ended June 30, 2009 as compared to $9.2 million for the six months ended
June 30, 2008. Additionally, due to our increasing global footprint we saw an
increase in rent and travel expense to $2.7 million for the six months ended
June 30, 2009 as compared to $1.7 million for the six months ended June 30,
2008.
Depreciation and amortization expense. Depreciation and amortization expense
increased 113.0% to $1.7 million for the six months ended June 30, 2009 as
compared to $0.8 million for the six months ended June 30, 2008 due primarily to
an increase in the depreciable asset base and amortization of the intangible
assets related to the European Acquisitions.
Income from operations. Income from operations decreased to $2.8 million for the
six months ended June 30, 2009 as compared to income from operations of $4.3
million for the six months ended June 30, 2008. The decrease is primarily
attributable to an increase in our SG&A as a result of our integration efforts
in connection with the European Acquisitions, as described above.
Interest income and expense. Interest income increased to $168,000 during the
six months ended June 30, 2009 from $162,000 during the three months ended June
30, 2008 due to the level of investable cash on hand. Interest expense increased
to $471,000 for the six months ended June 30, 2009 from $140,000 during the
three months ended June 30, 2008. The increase is due to the interest expense
calculated on the outstanding balance on our line of credit.
Provision for income taxes. The provision for income taxes for the six months
ended June 30, 2009 decreased to $1.5 million versus a provision of $1.8 million
for the six months ended June 30, 2008. The decrease is attributed to the
decrease in taxable income for the period. Although the provision for income
taxes decreased during the six months ended June 30, 2009 as compared to the six
months ended June 30, 2008, the effective tax rate increased as we are not
recording a tax benefit for net operating losses generated in Germany, France
and Spain, as it is more likely than not that we will not realize the tax
benefit of these operating losses.
Net income. As a result of the factors discussed above, net income for the six
months ended June 30, 2009 decreased to $1.0 million or $0.03 per basic and
diluted share, for the six months ended June 30, 2009 from net income of $2.5
million for the six months ended June 30, 2008 or $0.08 per basic share and
$0.07 per diluted share.
Balance Sheet and Cash Flow
In the United States, the Company manages its cash function using collection and
cash management accounts. Daily collections are swept into its operating account
with excess funds invested in high quality money market funds of short duration.
Disbursements presented for payment are funded daily out of the money market
accounts. Outside of the United States, cash balances are maintained at levels
necessary to support operating activities. As in the United States, cash
balances for foreign subsidiaries are generally maintained in the functional
currency of the applicable subsidiary.
The Company's expected primary cash needs on both a short and long-term basis
are for capital expenditures, expansion of services, possible future
acquisitions, global expansion, working capital and other general corporate
purposes.
At June 30, 2009 the Company maintained a working capital line of credit with a
bank, with a maximum potential borrowing capacity of $15.0 million. At June 30,
2009, there were $12.4 million in outstanding borrowings under this facility. At
June 30, 2009, interest on outstanding borrowings under this facility was at the
Federal Funds open rate, plus 1% (4.25% at June 30, 2009). The credit facility
contains various financial and other covenants, including a prohibition on
paying dividends or distributions (other than dividends or distributions payable
in our stock). At June 30, 2009, the Company was in compliance with these
covenants. The facility is secured by all of the assets of the Company. At June
30, 2009, the Company had available cash and cash equivalent balances of $1.2
million and working capital of $25.3 million, which the Company believes will
provide sufficient liquidity for the next twelve months.
In July 2009, the Company amended its line of credit agreement, which provided
for an increase in available borrowings to $30 million, an extension of the
expiration date to October 31, 2012 and an increase in the interest rate to the
Federal Funds open rate, as defined, plus 2%. The credit facility contains
various financial and other covenants, including a prohibition on paying
dividends or distributions (other than dividends or distributions payable in our
stock). The facility continues to be secured by all of the assets of the
Company.
During the six months ended June 30, 2009, the Company's operating activities
used cash of $8.8 million, a further use of $10.0 million from the corresponding
amount for the six months ended June 30, 2008. The operating activities use of
cash during the six month period can be attributed to an increase in both the
amount of revenue to be collected, and the time it takes to collect on that
revenue, as reflected in accounts receivable. Accounts receivable, net of
allowance for doubtful accounts, increased $7.6 million, or 17.6%, to $50.8
million at June 30, 2009 from $43.2 million at December 31, 2008. In addition,
during the six months ended June 30, 2009, the Company used cash in other
operating assets and liabilities of $4.8 million consisting primarily of $1.5
million in accounts payable, $1.7 million in prepaid expenses and other assets
and $1.6 million in customer deposits, as well as non cash charges of $0.2
million of deferred taxes. These uses of cash were offset by net income for the
six months ended June 30, 2009 of $1.0 million, a $0.4 million decrease in
deferred revenue, a $0.5 million decrease in accrued expenses and other
liabilities, along with non cash charges of $0.3 million related to stock based
compensation and $1.7 million related to depreciation and amortization.
Cash used in investing activities for the six months ended June 30, 2009 totaled
$1.2 million, consisting primarily of $1.6 million paid during the year relating
to the European Acquisitions and $1.3 million for the purchase of property and
equipment, which was offset by the increase in restricted cash of $1.7 million.
Cash provided by financing activities for the six months ended June 30, 2009
totaled $4.5 million, consisting primarily of $4.9 million in net borrowings on
the Company's line of credit which was offset by $0.4 million in principal
payments on capital lease obligations.
Dividends
The Company does not currently intend to pay cash dividends on its common stock
in the foreseeable future, but rather to reinvest earnings in the business.
Supplemental non-GAAP financial information
EBITDA is defined as net income before interest expense, income taxes and
depreciation and amortization. The Company believes that net income is the most
directly comparable GAAP measurement to EBITDA.EBITDA is presented because the
Company believes it is useful to investors as widely accepted financial
indicators of a company's ability to service and/or incur indebtedness and
because such disclosure provides investors with additional criteria used by the
Company to evaluate our operating performance and the performance bonuses of
certain of our employees. EBITDA is not defined under GAAP, should not be
considered in isolation or as a substitute for a measure of our liquidity or
performance prepared in accordance with GAAP and is not indicative of income
from operations as determined under GAAP. EBITDA and other non-GAAP financial
measures have limitations which should be considered before using these measures
to evaluate the Company's liquidity or financial performance. EBITDA does not
include interest expense, income tax expense or depreciation and amortization
expense, which may be necessary in evaluating the Company's operating results
and liquidity requirements or those of businesses we may acquire. The Company's
management compensates for these limitations by using EBITDA as a supplement to
GAAP results to provide a more comprehensive understanding of the factors and
trends affecting our business or any business we may acquire. Our computation
of EBITDA may not be comparable to other similarly titled measures provided by
other companies, because not all companies calculate this measure in the same
fashion.
The following table and related notes reconciles net income to EBITDA:
+------------------------+--------+--+--------+--+--------+--+--------+
| | (in thousands) | | (in thousands) |
+------------------------+--------------------+--+--------------------+
| |Three months ended | | Six months ended |
+------------------------+--------------------+--+--------------------+
| | June 30, | | June 30, |
+------------------------+--------------------+--+--------------------+
| | 2009 | | 2008 | | 2009 | | 2008 |
+------------------------+--------+--+--------+--+--------+--+--------+
| | | | | | | | |
+------------------------+--------+--+--------+--+--------+--+--------+
| Reconciliation of net income to | | | | | | |
| EBITDA: | | | | | | |
+---------------------------------+--+--------+--+--------+--+--------+
| | | | | | | | |
+------------------------+--------+--+--------+--+--------+--+--------+
| Net income | $ 486 | | $ | | $ 989 | | $ |
| | | | 1,153 | | | | 2,476 |
+------------------------+--------+--+--------+--+--------+--+--------+
| Provision for income | 871 | | 859 | | 1,492 | | 1,823 |
| taxes | | | | | | | |
+------------------------+--------+--+--------+--+--------+--+--------+
| Interest (income) | 229 | | 18 | | 303 | | (22) |
| expense, net | | | | | | | |
+------------------------+--------+--+--------+--+--------+--+--------+
| Depreciation and | 874 | | 419 | | 1,671 | | 784 |
| amortization | | | | | | | |
+------------------------+--------+--+--------+--+--------+--+--------+
| EBITDA | $ | | $ | | $ | | $ |
| | 2,460 | | 2,449 | | 4,455 | | 5,061 |
+------------------------+--------+--+--------+--+--------+--+--------+
Daniel M. Perlman, Chairman and CEO
August 14, 2009
Financial Data
ReSearch Pharmaceutical Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
+-------------------------------------------------------+-------------+-------------+
| | June 30, | December |
| | | 31, |
+-------------------------------------------------------+-------------+-------------+
| | 2009 | 2008 |
+-------------------------------------------------------+-------------+-------------+
| Assets |(unaudited) | |
+-------------------------------------------------------+-------------+-------------+
| Current assets: | | |
+-------------------------------------------------------+-------------+-------------+
| Cash and cash equivalents | $ | $ |
| | 1,154,989 | 6,565,003 |
+-------------------------------------------------------+-------------+-------------+
| Restricted cash | 5,579,733 | 7,247,532 |
+-------------------------------------------------------+-------------+-------------+
| Accounts receivable, less allowance for | 50,823,742 | 43,225,016 |
| doubtful accounts of $807,000 at June | | |
| 30, 2009 and $654,000 at December 31, | | |
| 2008, respectively | | |
+-------------------------------------------------------+-------------+-------------+
| Current deferred tax asset | 970,052 | 970,797 |
+-------------------------------------------------------+-------------+-------------+
| Prepaid expenses and other current assets | 4,095,726 | 2,377,838 |
+-------------------------------------------------------+-------------+-------------+
| Total current assets | $ | $ |
| | 62,624,242 | 60,386,186 |
+-------------------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------------------+-------------+-------------+
| Property and equipment, net | 6,028,438 | 5,993,386 |
+-------------------------------------------------------+-------------+-------------+
| Other assets | 1,149,600 | 1,179,018 |
+-------------------------------------------------------+-------------+-------------+
| Intangible assets subject to amortization, net | 3,157,645 | 3,880,000 |
+-------------------------------------------------------+-------------+-------------+
| Goodwill | 15,355,813 | 15,145,585 |
+-------------------------------------------------------+-------------+-------------+
| Deferred tax asset | 504,366 | 504,366 |
+-------------------------------------------------------+-------------+-------------+
| Total assets | $ | $ |
| | 88,820,104 | 87,088,542 |
+-------------------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------------------+-------------+-------------+
| Liabilities and stockholders' equity (deficit) | | |
+-------------------------------------------------------+-------------+-------------+
| Current liabilities: | | |
+-------------------------------------------------------+-------------+-------------+
| Accounts payable | $ | $ |
| | 1,991,672 | 3,496,309 |
+-------------------------------------------------------+-------------+-------------+
| Accrued expenses | 11,636,832 | 12,069,957 |
+-------------------------------------------------------+-------------+-------------+
| Customer deposits | 5,579,733 | 7,247,532 |
+-------------------------------------------------------+-------------+-------------+
| Deferred revenue | 5,222,676 | 4,781,935 |
+-------------------------------------------------------+-------------+-------------+
| Line of credit | 12,373,471 | 7,500,000 |
+-------------------------------------------------------+-------------+-------------+
| Current portion of capital lease obligations | 490,569 | 682,695 |
+-------------------------------------------------------+-------------+-------------+
| Total current liabilities | $ | $ |
| | 37,294,953 | 35,778,428 |
+-------------------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------------------+-------------+-------------+
| Customer deposits | 4,500,000 | 4,500,000 |
+-------------------------------------------------------+-------------+-------------+
| Deferred tax liability | 1,069,626 | 1,331,955 |
+-------------------------------------------------------+-------------+-------------+
| Other liabilities | 2,045,251 | 2,323,794 |
+-------------------------------------------------------+-------------+-------------+
| Capital lease obligations, less current portion | 714,442 | 871,963 |
+-------------------------------------------------------+-------------+-------------+
| Total liabilities | $ | $ |
| | 45,624,272 | 44,806,140 |
+-------------------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------------------+-------------+-------------+
| Stockholders' equity: | | |
+-------------------------------------------------------+-------------+-------------+
| Common stock, $.0001 par value: | | |
+-------------------------------------------------------+-------------+-------------+
| Authorized shares - 150,000,000 issued | 3,675 | 3,675 |
| and outstanding shares - 36,746,835 and | | |
| 36,746,291 at June 30, 2009 and December | | |
| 31, 2008, respectively. | | |
+-------------------------------------------------------+-------------+-------------+
| Additional paid-in capital | 44,392,060 | 44,083,184 |
+-------------------------------------------------------+-------------+-------------+
| Accumulated other comprehensive (loss) income | (228,640) | 155,535 |
+-------------------------------------------------------+-------------+-------------+
| Accumulated deficit | (971,263) | (1,959,992) |
+-------------------------------------------------------+-------------+-------------+
| Total stockholders' equity | $ | $ |
| | 43,195,832 | 42,282,402 |
+-------------------------------------------------------+-------------+-------------+
| Total liabilities and stockholders' equity | $ | $ |
| | 88,820,104 | 87,088,542 |
+-------------------------------------------------------+-------------+-------------+
ReSearch Pharmaceutical Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | Three Months Ended June | | Six Months Ended June |
| | 30, | | 30, |
+ + +-----------------------------+ +
| | | | |
+-----------------------------+---------------------------+-----------------------------+----------------------------+
| | 2009 | 2008 | | 2009 | 2008 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | (unaudited) | | (unaudited) |
+-----------------------------+---------------------------+-----------------------------+----------------------------+
| | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Service revenue | $ | $ | | $ | $ |
| | 48,446,362 | 40,286,342 | | 93,705,236 | 78,334,195 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Reimbursement revenue | 5,905,352 | 4,554,955 | | 10,940,328 | 8,349,497 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Total revenue | 54,351,714 | 44,841,297 | | 104,645,564 | 86,683,692 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Direct costs | 34,940,337 | 30,076,813 | | 68,159,696 | 58,392,836 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Reimbursable out-of-pocket | 5,905,352 | 4,554,955 | | 10,940,328 | 8,349,497 |
| costs | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Selling, general, and | 11,045,742 | 7,759,741 | | 21,091,012 | 14,880,251 |
| administrative expenses | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Depreciation and | 874,207 | 418,969 | | 1,670,629 | 784,265 |
| amortization | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Income from operations | 1,586,076 | 2,030,819 | | 2,783,899 | 4,276,843 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Interest expense | 323,076 | 89,405 | | 470,868 | 139,931 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Interest income | 93,894 | 71,155 | | 167,829 | 162,001 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Net income before provision | 1,356,894 | 2,012,569 | | 2,480,860 | 4,298,913 |
| for income taxes | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Provision for income taxes | 871,117 | 859,485 | | 1,492,131 | 1,822,780 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Net income | $ 485,777 | $ | | $ 988,729 | $ |
| | | 1,153,084 | | | 2,476,133 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Net income per common | | | | | |
| share: | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Basic | $0.01 | $0.04 | | $0.03 | $0.08 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Diluted | $0.01 | $0.03 | | $0.03 | $0.07 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Weighted average number of | | | | | |
| common shares outstanding: | | | | | |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Basic | 36,746,835 | 32,545,476 | | 36,746,648 | 32,487,641 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
| Diluted | 37,624,649 | 34,133,310 | | 37,707,889 | 34,089,090 |
+-----------------------------+-------------+-------------+-----------------------------+--------------+-------------+
ReSearch Pharmaceutical Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
+----------------------------------------------+--------------+---------------+
| | Six Months Ending |
| | June 30, |
+----------------------------------------------+------------------------------+
| | 2009 | 2008 |
+----------------------------------------------+--------------+---------------+
| | (unaudited) |
+----------------------------------------------+------------------------------+
| Net income | $ | $ 2,476,133 |
| | 988,729 | |
+----------------------------------------------+--------------+---------------+
| Adjustments to reconcile net income (loss) | | |
| to net cash (used in) provided by operating | | |
| activities: | | |
+----------------------------------------------+--------------+---------------+
| Depreciation and amortization | 1,670,629 | 784,265 |
+----------------------------------------------+--------------+---------------+
| Stock-based compensation | 308,675 | 267,253 |
+----------------------------------------------+--------------+---------------+
| Deferred tax benefit | (229,418) | - |
+----------------------------------------------+--------------+---------------+
| Changes in operating assets and liabilities: | | |
+----------------------------------------------+--------------+---------------+
| Accounts receivable | (7,620,488) | 1,190,235 |
+----------------------------------------------+--------------+---------------+
| Prepaid expenses and other assets | (1,717,888) | (752,273) |
+----------------------------------------------+--------------+---------------+
| Accounts payable | (1,496,494) | (770,329) |
+----------------------------------------------+--------------+---------------+
| Accrued expenses and other liabilities | 504,627 | (1,087,909) |
+----------------------------------------------+--------------+---------------+
| Customer deposits | (1,645,565) | 237,827 |
+----------------------------------------------+--------------+---------------+
| Deferred revenue | 446,898 | (1,110,636) |
+----------------------------------------------+--------------+---------------+
| Net cash used in operating activities | (8,790,295) | 1,234,566 |
+----------------------------------------------+--------------+---------------+
| | | |
+----------------------------------------------+--------------+---------------+
| Investing activities | | |
+----------------------------------------------+--------------+---------------+
| Change in restricted cash | 1,645,565 | (237,827) |
+----------------------------------------------+--------------+---------------+
| Business combinations, net of cash acquired | (1,573,752) | - |
+----------------------------------------------+--------------+---------------+
| Purchase of property and equipment | (1,254,484) | (765,987) |
+----------------------------------------------+--------------+---------------+
| Net cash used in investing activities | (1,182,671) | (1,003,814) |
+----------------------------------------------+--------------+---------------+
| | | |
+----------------------------------------------+--------------+---------------+
| Financing activities | | |
+----------------------------------------------+--------------+---------------+
| Net borrowings on line of credit | 4,873,471 | - |
+----------------------------------------------+--------------+---------------+
| Principal payments on capital lease | (349,647) | (542,331) |
| obligations | | |
+----------------------------------------------+--------------+---------------+
| Proceeds from exercise of options | 201 | 8,951 |
+----------------------------------------------+--------------+---------------+
| Merger consideration, net of fees paid | - | (17,880) |
+----------------------------------------------+--------------+---------------+
| Net cash provided by (used in) financing | 4,524,025 | (551,260) |
| activities | | |
+----------------------------------------------+--------------+---------------+
| Effect of exchange rates on cash and cash | 38,927 | (23,895) |
| equivalents | | |
+----------------------------------------------+--------------+---------------+
| Net change in cash and cash equivalents | (5,410,014) | (344,403) |
+----------------------------------------------+--------------+---------------+
| Cash and cash equivalents, beginning of | 6,565,003 | 11,060,255 |
| period | | |
+----------------------------------------------+--------------+---------------+
| Cash and cash equivalents, end of period | $ | $10,715,852 |
| | 1,154,989 | |
+----------------------------------------------+--------------+---------------+
| | | |
+----------------------------------------------+--------------+---------------+
| Supplemental disclosures of cash flow | | |
| information | | |
+----------------------------------------------+--------------+---------------+
| Cash paid during the period for: | | |
+----------------------------------------------+--------------+---------------+
| Interest | $ | $ 162,001 |
| | 470,868 | |
+----------------------------------------------+--------------+---------------+
| Income taxes | $ 4,033,194 | $ 1,792,780 |
| | | |
+----------------------------------------------+--------------+---------------+
| Supplemental disclosures of noncash | | |
| financing activities | | |
+----------------------------------------------+--------------+---------------+
| Acquisition of fixed assets under capital | $ - | $ 1,022,759 |
| leases | | |
+----------------------------------------------+--------------+---------------+
NOTES
The functional currency of RPS is US dollars because that is the currency of the
primary economic environment in which the company operates. These financial
statements are presented
in US dollars.
The financial statements are presented in conformity with accounting principles
generally accepted in the United States and have been prepared using the same
accounting policies as set forth in the financial statements for the year ended
December 31, 2008 which will be included in the Company's Annual Report on Form
10-K to be filed with the SEC.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" that are made pursuant
to the safe harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements can be identified by words such as
"anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects"
and similar references to future periods, or by the inclusion of forecasts or
projections. Forward-looking statements are based on the Company's current
expectations and assumptions regarding its business, financial condition, the
economy and other future conditions. Because forward-looking statements relate
to the future, by their nature, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict, including
those described under the heading "Risk Factors" in the Company's Form
10-K filed with the SEC on March 31, 2009. The Company's actual results may
differ materially from those contemplated by the forward-looking statements.
The Company cautions you therefore that you should not rely on any of these
forward-looking statements as statements of historical fact or as guarantees or
assurances of future performance. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include regional, national or global political, economic, business, competitive,
market and regulatory conditions including: our ability to identify liabilities
associated with the Company; our ability to manage pricing and operational
risks; our ability to manage foreign operations and integrate new operations
into our existing operation; changes in technology; and our ability to acquire
or renew contracts. Any forward-looking statement made in this document speaks
only as of the date on which it is made. Factors or events that could cause the
Company's actual results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company undertakes no
obligation to publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise, unless otherwise required
to do so by law or regulation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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