Covance Announces Plan to Repatriate Accumulated Foreign Earnings Under the Provisions of the American Jobs Creation Act
PRINCETON, N.J., Dec. 19 /PRNewswire-FirstCall/ -- Covance Inc. (NYSE: CVD) announced today that its Board of Directors approved a plan to repatriate approximately $103 million of undistributed foreign earnings during the fourth quarter of 2005 under the provisions of the American Jobs Creation Act. The American Jobs Creation Act provides a temporary incentive for United States companies to repatriate accumulated income earned in foreign jurisdictions at a reduced income tax cost, provided that the funds are invested in certain qualified investments in the United States. The estimated income tax expense and related liability associated with this repatriation is approximately $4.2 million, or $0.07 per fully diluted share, which will be recorded in the fourth quarter of 2005. Excluding the impact of this repatriation, the Company continues to expect full-year 2005 EPS of at least $1.91.
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $1 billion, global operations in 18 countries, and more than 7,000 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at http://www.covance.com.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, risks associated with acquisitions and investments, the Company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.