| COVANCE ISSUES FIRST QUARTERLY EARNINGS AS AN INDEPENDENT PUBLIC COMPANY: OPERATING RESULTS STRONG |
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Fourth Quarter Highlights:
- Financial results in line with expectations.
- Continue to deliver diversified and balanced growth.
- Revenues up 24.9%, operating income rose 22.1% and net income increased 18.1%.
- Began manufacturing at state-of-the-art biotech facility.
- Expanded and strengthened global position with new offices in Buenos Aires, Argentina and Montreal, Canada.
- Rated #1 in 'overall rankings for Contract Research Organizations (CRO's)' by CenterWatch.
Princeton, NJ, April 22, 1997 — Covance Inc. (NYSE: CVD), one of the world's largest and most comprehensive biopharmaceutical development service companies, today reported financial results for its first quarter ended March 31, 1997. These results reflect the first quarter of operations for Covance as an independent public company since it was spun-off from Corning Incorporated (Corning), on December 31, 1996.
Total net revenues for the first quarter of 1997 were $135.7 million, up 24.9% compared to $108.7 million for the first quarter of 1996. Operating income for the first quarter was $17.1 million, up 22.1% compared to $14.0 million for the first quarter of 1996. Net income for the first quarter of 1997 was $8.6 million or $0.15/share, up 18.1% compared to $7.3 million or $0.13/share for the first quarter of 1996.
Commenting on the first quarter's results, Chris Kuebler, Chairman and CEO of Covance noted, "we are off to a strong start in 1997 and the first quarter's results were in line with our expectations. This is our first quarter as an independent publicly traded company and we are excited about the opportunities and challenges that lie ahead of us. Covance, with its comprehensive, global and integrated capabilities, is uniquely positioned to grow in this marketplace and, as a company, we are committed to further strengthening our position in this dynamic industry. By participating in all phases of the drug development process through its six lines of business, Covance continues to deliver diversified and balanced growth for its investors."
Earlier this year, in February, in a survey of 198 clinical research centers conducted by CenterWatch, Covance was rated #1 in 'overall rankings for Contract Research Organizations (CRO's)' in a first-of-its-kind study. Commenting on this study, Chris Kuebler noted that, "this ranking is a direct reflection of the experience and capability of our people and the emphasis that we place on high quality service."
Covance's Annual Report on Form 10-K for the fiscal year ended December 31, 1996 is available for distribution to the Company's shareholders. Shareholders may request a copy of the Form 10-K by writing to Covance Inc., 210 Carnegie Center, Princeton, N.J. 08540-6233, Attention: Investor Relations.
Covance, with headquarters in Princeton, NJ, is one of the world's largest and most comprehensive biopharmaceutical development service companies, with 1996 revenues of approximately $495 million, operations currently in more than 16 countries, and more than 5,500 employees worldwide. Covance combines superior development experience, expertise and global presence to provide preclinical, health economics, central laboratory, biomanufacturing, clinical packaging, and clinical and periapproval services to the world's pharmaceutical, biotechnology and medical device companies.
Statements contained in this press release which are not historical facts may be considered forward-looking statements as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on Covance's expectations and are subject to a number of risks and uncertainties, certain of which are beyond Covance's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors including the risk factors described in Covance's filings with the Securities and Exchange Commission such as (i) Covance has not previously operated as a separate independent company and will no longer have access to Corning's combined assets and credit, (ii) changes in regulations governing the drug development process; and (iii) the fixed price nature of contracts or the loss of large contracts. In light of these risks and uncertainties, there can be no assurance that any forward-looking information contained in this press release will in fact transpire.
Links to Financial Exhibits Follow:
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