* 2009 Total Revenues Targets of $1.1 to $1.2 billion * 2009 EBITDA Targets of $135 to $155 million * 2009 EPS Targets of $1.25 to $1.50 * Expect 2008 Non-cash Pre-tax Intangible Impairment Charge of $225 to $275 million
SOMERSET, N.J., Feb. 5, 2009 (GLOBE NEWSWIRE) -- inVentiv Health, Inc. (Nasdaq:VTIV), a leading provider of commercialization services to the global pharmaceutical and healthcare industries, today issued its initial 2009 financial targets. inVentiv provided total revenue targets for 2009 of $1.1 to $1.2 billion, which represents flat to mid-single digit growth over estimates for 2008. The company expects 2009 EBITDA to be relatively flat versus the prior year adjusted EBITDA with a targeted range of $135 to $155 million and earnings per share of $1.25 to $1.50.
The Company further reported that it expects to continue to generate strong cash flow from operations that will exceed $80 million in 2009. The Company's estimated capital expenditures for 2009 are $25 to $30 million, which will be partially offset by landlord funding of up to $8 million of tenant improvements for its new office lease in Somerset, NJ.
In other news, inVentiv announced it will record a non-cash pre-tax goodwill and other intangible assets impairment of $225 to $275 million in accordance with Statement of Financial Accounting Standards ("SFAS") No. 142 ("Goodwill and Other Intangible Assets") and SFAS No. 144 ("Accounting for the Impairment or Disposal of Long-Lived Assets"). The estimated impairment charge is primarily driven by adverse equity market conditions that caused a decrease in the current market multiples and the company's stock price as of December 31, 2008. The estimated charge is subject to finalization, which the company will complete prior to reporting its 2008 financial results. This non-cash charge does not impact the company's normal business operations.
"While our market environment continues to be challenging as pharmaceutical companies scale back spending, inVentiv remains well positioned", said Blane Walter, Chief Executive Officer of inVentiv. "We anticipate Q4 2008 adjusted earnings per share will be solid and demonstrate reasonable growth over last quarter. Although we believe 2009 will be a challenging and transformational year for the pharmaceutical industry, we expect inVentiv to hold its own or modestly grow revenues and EBITDA as our clients turn to outsourcing to lower their costs and increase flexibility. We continue to benefit from our broadly diversified client base, a structure that enables us to deliver integrated solutions to clients, a solid balance sheet and strong cash flow."
inVentiv will report fourth quarter and full year 2008 financial results on February 26, 2009 and will webcast its earnings conference call at 9 a.m. EST.
Conference Call Information
Friday, February 6, 2009, 9:00 a.m. Eastern Time Call in number: (800) 358-8448 (Domestic) or (706) 634-1367 (International) Live and archived webcast: www.inVentivHealth.com
A replay of the call will be available immediately following the call through February 13, 2009, at (800) 642-1687 or (706) 645-9291. The conference ID number for the replay is 83883161.
About inVentiv Health
inVentiv Health, Inc. (Nasdaq:VTIV) is an insights-driven global healthcare leader that provides dynamic solutions to deliver customer and patient success. inVentiv delivers its customized clinical, sales, marketing and communications solutions through its four core business segments: inVentiv Clinical, inVentiv Communications, inVentiv Commercial, and inVentiv Patient Outcomes. inVentiv Health's client roster is comprised of more than 350 leading pharmaceutical, biotech, life sciences and healthcare payer companies, including all top 20 global pharmaceutical manufacturers. For more information, visit www.inVentivHealth.com.
The inVentiv Health, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4942
(1) USE OF NON-GAAP FINANCIAL MEASURES
This press release contains non-GAAP financial measures. The Company's objectives in presenting non-GAAP financial measures are:
* To present the financial statements on a more comparable period-to-period basis; * To enhance investors' overall understanding of the Company's past financial performance and its planning and forecasting of future periods; and * To allow investors to assess the Company's financial performance using management's analytical approach.
Table 1 below contains a reconciliation of EBITDA, a non-GAAP financial measure. The Company defines EBITDA as earnings before depreciation, amortization, interest expense, income tax expense, minority interest in income of subsidiary and income from equity investments. We use EBITDA to more closely assess and measure the operating performance of our business.
These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. Management believes that the non-GAAP financial measures included herein, when shown in conjunction with the corresponding GAAP measures, is useful to investors for the reasons discussed above. Management uses these non-GAAP financial measures in assessing the performance of the Company's operations on a consistent basis from period to period.
Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks that may cause inVentiv Health's performance to differ materially. Such risks include, without limitation: the potential impact of a recessionary environment on our customers and business; our ability to sufficiently increase our revenues and maintain or decrease expenses and cash capital expenditures to permit us to fund our operations; our ability to continue to comply with the covenants and terms of our credit facility and to access sufficient capital under our credit agreement or from other sources of debt or equity financing to fund our operations; the impact of any default by our credit providers or swap counterparties; our ability to accurately forecast costs to be incurred in providing services under fixed price contracts, including with respect to the leasing costs for our fleet vehicles and related fuel costs; the possibility that customer agreements will be terminated or not renewed; our ability to grow our existing client relationships, obtain new clients and cross-sell our services; our ability to successfully operate new lines of business; our ability to successfully identify new businesses to acquire, conclude acquisition negotiations and integrate the acquired businesses into our operations; any disruptions, impairments, or malfunctions affecting software as well as excessive costs or delays that may adversely impact our continued investment in and development of software; the potential impact of government regulation on us and on our clients base; our ability to comply with all applicable laws as well as our ability to successfully implement from a timing and cost perspective any changes in applicable laws; our ability to recruit, motivate and retain qualified personnel, including sales representatives and clinical staff; the actual impact of the adoption of certain accounting standards; our ability to maintain technological advantages in a variety of functional areas, including sales force automation, electronic claims surveillance and patient compliance; the actual outcome of pending litigation; any potential impairments of intangible assets derived from reductions in market capitalization; changes in trends in the pharmaceutical industries or in pharmaceutical outsourcing; and our inability to determine the actual time at which the liquidation of the Columbia Strategic Cash Portfolio will be completed or the total losses that we will actually realize from that investment vehicle. Readers of this press release are referred to documents filed from time to time by inVentiv Health, Inc. with the Securities and Exchange Commission for further discussion of these and other factors.
Table 1
inVentiv Health, Inc.
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Non-GAAP EBITDA Reconciliation
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Reconciliation of Operating Income and EBITDA Twelve-Months Ended
--------------------------------------------- December 31, 2009
(in millions) -------------------
Operating income* $95 - $110
Add: Depreciation and Amortization 40 - 45
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EBITDA $135 - $155
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* before minority interest in income of subsidiary and income from
equity investments