| COVANCE REPORTS STRONG SECOND QUARTER 1997 OPERATING RESULTS
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Second Quarter Highlights:
- Operating results for quarter and year-to-date in line with expectations.
- Covance delivers another quarter of balanced, diversified growth.
- Revenues up 19.6%, net income up 19.1%.
- Covance central sales force expanded.
- Initiated two major facility expansions totaling over 270,000 square feet in clinical and central labs businesses.
- Enhanced global presence via signing of strategic agreement with the China Innovation Center for Life Sciences (CICLS).
Princeton, NJ, July 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 second quarter ended June 30, 1997. These results reflect the second quarter of operations for Covance as an independent publicly traded company since it was spun off from Corning Incorporated (Corning) on December 31, 1996.
Net revenues for the second quarter of 1997 were $145.4 million, up 19.6% compared to $121.5 million for the second quarter of 1996. Year-to-date, net revenues were $281.1 million, up 22.1% compared to $230.2 million for the first six months of 1996.
Operating income for the second quarter of 1997 was $20.2 million, up 16.7%, in line with expectations and compared to $17.3 million for the second quarter of 1996. The year-over-year increase of 16.7% was lower than the growth in revenues primarily due to strong margins in the second quarter of 1996. Year-to-date, operating income was $37.4 million, up 19.1% compared to $31.4 million for the same period in 1996.
Net income for the second quarter of 1997 was $10.5 million or $0.18/share, up 19.1% compared to $8.8 million or $0.15/share for the second quarter of 1996. Year-to-date, net income was $19.1 million or $0.34/share, up 18.6% compared to $16.1 million or $0.28/share for the first half of 1996.
Commenting on the second quarter and year-to-date financial results, Chris Kuebler, Chairman and CEO of Covance noted, "We are pleased to report another strong quarter as an independent publicly traded company. Both the quarter and the year-to-date results were in line with our expectations. We continue to build on our track record of strong growth and remain excited about the opportunities facing our industry. Our employee owners, along with our comprehensive, global and integrated capabilities, position us well to further strengthen our standing in the marketplace and to provide investors with balanced and diversified growth."
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 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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