| COVANCE REPORTS ANOTHER STRONG QUARTER - THIRD QUARTER 1997 EARNINGS IN LINE WITH EXPECTATIONS |
|
Third Quarter Highlights:
- Earnings for third quarter and year-to-date in line with expectations.
- Covance delivers another quarter of balanced, diversified growth.
- Revenues up 19.1%, operating income up 19.4% and net income up 19.7%.
- Launched first-of-its kind investigator alliance initiative.
- Expanded clinical capabilities via new office opening in Warsaw, Poland.
Princeton, NJ, October 21, 1997 — Covance Inc. (NYSE: CVD), one of the world's largest and most comprehensive biopharmaceutical development service companies, today reported financial results for its third quarter ended September 30, 1997. These results reflect the third 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 third quarter of 1997 were $151.5 million, up 19.1% compared to $127.2 million for the third quarter of 1996. Year-to-date, net revenues were $432.6 million, up 21.0% compared to $357.4 million for the same period in 1996.
Operating income for the third quarter of 1997 was $20.9 million, up 19.4%, compared to $17.5 million for the third quarter of 1996. Year-to-date, operating income was $58.3 million, up 19.2% compared to $48.9 million for the first nine months of 1996.
Net income for the third quarter of 1997 was $10.9 million or $0.19/share, up 19.7% compared to $9.1 million or $0.16/share for the third quarter of 1996. Year-to-date, net income was $30.0 million or $0.52/share, up 19.0% compared to $25.2 million or $0.44/share for the first three quarters of 1996.
Chris Kuebler, Chairman and CEO of Covance, commenting on the third quarter and year-to-date results noted, "We are pleased to report another strong quarter as an independent publicly traded company. Results for the quarter and first nine months were in line with our expectations. We've made good progress over the last nine months establishing ourselves as an independent company and can now intensify our focus and energies on delivering balanced and diversified growth to investors over the long term."
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 5,800 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:
|
|
|
