LSR Announces First Quarter Results
Monday May 7, 4:05 pm ET
Highlights:
-- Revenues of $54.3 million.
-- Net Income of $3.5 million, or $0.23 per fully diluted share.
-- Net new orders of $66.3 million
-- Cash in excess of $50 million
EAST MILLSTONE, N.J.--(BUSINESS WIRE)--Life Sciences Research, Inc. (NYSE Arca: LSR) announced today that revenues for the quarter ended March 31, 2007 were $54.3 million, 27.9% above the revenues for the same period in the prior year of $42.5 million. Excluding the effect of exchange rate movements, revenues increased 17.4%. Operating income for the quarter ended March 31, 2007 was $6.2 million, or 11.5% of revenues, compared with $4.0 million, or 9.5% of revenues for the same period in the prior year. The quarter included FAS123R Stock option expense of $0.6 million compared with $0.1 million in the same quarter last year. The Company reported net income for the quarter ended March 31, 2007 of $3.5 million compared with $0.5 million for the quarter ended March 31, 2006. Net income per common share for the quarter ended March 31, 2007 was $0.27 compared with $0.04 in the quarter ended March 31, 2006. Net income per fully diluted share was $0.23 for the current quarter compared to $0.03 in the prior year.
The net income for the three months ended March 31, 2007 included Other Expenses of $0.4 million which comprised finance arrangement fees of $0.5 million, offset by $0.1 million from a non-cash foreign exchange re-measurement gain pertaining to the March 2006 $70 million financing (the "New Financing") denominated in US dollars. In the same period in the prior year, Other Expenses of $1.0 million were comprised of finance arrangement fees of $1.3 million primarily reflecting fees of Alconbury Estates, LSR's landlord, which was consolidated under FIN46, and other exchange losses of $0.2 million, offset by a non-cash foreign exchange re-measurement gain pertaining to the Convertible Capital Bonds of $0.5 million.
Net days sales outstanding at March 31, 2007 were 11 (11 at March 31, 2006 and 21 at December 31, 2006). Capital expenditure totaled $4.0 million in the first quarter of 2007, compared to $1.7 million in the first quarter of 2006.
Cash on hand at March 31, 2007 was $50.1 million compared with $44.1 million at December 31, 2006. The increase in cash on hand was primarily due to high cash collections in the first quarter of 2007 associated with the high levels of invoicing in the fourth quarter of 2006. Long-term debt was $89.2 million both at March 31, 2007 and at December 31, 2006. At March 31, 2007 long-term debt predominantly consisted of the $69.9 million outstanding from the New Financing Loan and the $23.7 million of finance leases associated with the sale and leaseback, offset by unamortized lender warrant costs.
Net new business signings totaled $66.3 million for the first quarter of 2007. This represented an increase of 17% from the first quarter orders in 2006. At March 31, 2007 backlog (booked on work) amounted to approximately $182 million.
Brian Cass, LSR's President and Managing Director commented, "We are delighted that the outstanding order levels we achieved in 2006 are now beginning to flow through the business, producing new record levels for revenues and operating profit this quarter. Orders have continued to be strong at $66.3 million which is a constant currency increase of 8% on the same quarter last year, and backlog has increased to $182 million, a new record level. We continue to achieve strong order growth in the Pharmaceutical sector, particularly evident in the 20% increase in orders over last year from our customers who are amongst the top ten global pharma companies. As we've discussed in the past, one of our key strategies is to deepen and expand our relationships with this important group of customers. This, as well as strength in the non-pharma segment, has helped us achieve a gratifying book-to-bill ratio of 1.22, a performance that reflects our ongoing success in growing all of our business, and the continuing strength and growth of the outsourcing market place." |
