Covance Seeks Acquisitions
Jul 30 14
Covance Inc. (NYSE:CVD) is seeking acquisitions. Joe Herring, Chairman and Chief Executive Officer of Covance, said, "Our business is very, very well positioned. We're investing to expand capacity capabilities in three different locations. We're evaluating a number of acquisitions. We are very committed to this business. It leverages a lot of the tools, instrumentation, scientific talents that we have, you know, in pharmaceutical chemistry. We're expanding in Singapore. And then looking at acquisitions in Latin America, as well as either buy or build in a couple of other Asian markets. So we're definitely going global in this business but trying to do it in a smart and thoughtful and high quality way, and, you know, in a responsible way. We just are really proud of our team's effort to, you know, take the feedback, become more competitive, and win some very significant projects in support of commercial launch, as well as their creative ability to go out and find some really interesting acquisition candidates like the Medaxial.”
Covance Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Announces Impairment Charges; Provides Earnings Guidance for the Third and Fourth Quarter of 2014, Updates Earnings Guidance for the Full Year of 2014 and Provides Effective Tax Guidance for the Remainder of 2014
Jul 29 14
Covance Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported net income of $16,937,000 or $0.30 per basic share and $0.29 per diluted share on total Revenue was $687,108,000 against net income of $40,994,000 or $0.75 per basic share and $0.72 per diluted share on total Revenue was $643,976,000 a year ago. Income from operations was $19,264,000 compared to $51,510,000 a year ago. Income before taxes was $14,913,000 compared to $50,519,000 a year ago. On pro forma basis, total revenues of $687,108,000, income from operations was $76,026,000, income before taxes was $71,675,000, net income of $54,667,000 or $0.98 per basic share and $0.95 per diluted share against total revenues of $643,976,000, income from operations was $57,523,000, income before taxes was $55,825,000, net income of $44,476,000 or $0.81 per basic share and $0.78 per diluted share a year ago.
For the six months, the company reported net income of $67,753,000 or $1.22 per basic share and $1.17 per diluted share on total Revenue was $1,353,396,000 against net income of $89,160,000 or $1.64 per basic share and $1.58 per diluted share on total Revenue was $1,278,311,000 a year ago. Income from operations was $86,152,000 compared to $99,761,000 a year ago. Income before taxes was $80,599,000 compared to $113,257,000 a year ago. Net cash used in operating activities was $2,524,000 compared to $2,582,000 a year ago. Capital expenditures were $73,023,000 compared to $68,433,000 a year ago. On pro forma basis, total revenues of $1,353,396,000, income from operations was $147,052,000, income before taxes was $139,851,000, net income of $107,037,000 or $1.92 per basic share and $1.85 per diluted share against total revenues of $1,278,311,000, income from operations was $111,944,000, income before taxes was $109,040,000, net income of $86,795,000 or $1.59 per basic share and $1.53 per diluted share a year ago.
The company announced impairment charges were $52,564,000.
The company updating full year pro forma diluted earnings per share to the range of $3.78 to $3.92. The company continues to expect full year free cash flow of approximately $130 million, net of capital expenditures of approximately $160 million. The free cash flow target for 2014 assumes net DSO at 40 days at December 31, 2014.
The pro forma effective tax rate is expected to be approximately 24% for the remainder of 2014.
In terms of cycling of 2014 earnings, the company expects sequential growth of a few cents in earnings in both the third and fourth quarters, which will deliver earnings at a new higher midpoint of guidance range.