Attached files
 A leading
global CRO GAAP / Non-GAAP Reconciliation
Exhibit 99.3 |
 A leading
global CRO Regulation G
From time to time, PPD discloses selected non-GAAP financial measures. For
example, we disclose net revenue excluding reimbursed out-of-pockets
because these third party expenses are reimbursed to us by our clients, are
not directly related to the services
we
provide
and
do
not
have
any
impact
on
our
operating
income,
net
income
or
earnings
per
share.
In
addition,
we
present
certain financial measures
excluding
non-
cash
stock
option
expense
and
in some cases special
items
that
are
not
related
to our
core service businesses. While non-GAAP financial measures are not superior to
or a substitute for the comparable GAAP measures, we believe certain
non-GAAP information is useful to investors for historical comparison
purposes and because it provides
additional
information
on
the
performance
of
PPD’s
core
service
businesses.
PPD management also uses this information to measure the Company’s operating
performance
and
to
compare
that
performance
against
results
from
prior
periods
and
the
performance of PPD’s competitors.
For the non-GAAP financial measures that have been disclosed by us, the
following is a presentation of and reconciliation to the most directly comparable
GAAP financial measure.
1 |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Net Revenue, Net Income and EPS (2005-2009)
2
(in thousands, except per share data)
2005
2006
2007
2008
2009
Net Revenue:
Net Revenue, per GAAP
1,037,090
$
1,247,682
$
1,414,465
$
1,551,384
$
1,416,770
$
Less: Reimbursed out-of-pockets
75,074
101,383
119,087
117,132
101,003
Net Revenue less reimbursed out-of-pockets
962,016
1,146,299
1,295,378
1,434,252
1,315,767
Net Income:
Net Income, per GAAP
119,897
$
156,652
$
163,401
$
187,519
$
159,295
$
Plus: Impairment of investments, net of recoveries
5,928
-
690
17,741
2,076
Plus: Impairment of intangible asset
-
-
-
1,607
10,361
Plus: Restructuring charges
-
-
-
-
3,892
Plus: Bad debt expense associated with Accentia
-
-
-
4,708
-
Less: Gain on sale/exchange of assets
(5,144)
-
-
-
-
Less: Tax benefit on impairment of investments, net of recoveries
(2,118)
-
(235)
(5,810)
(569)
Less: Tax benefit on impairment of intangible asset
-
-
-
(526)
(2,839)
Less: Tax benefit on bad debt expense associated with Accentia
-
-
-
(1,542)
-
Plus: Tax expense on gain on sale/exchange of assets
1,800
-
-
-
-
Less: Tax benefit on restructuring charges
-
-
-
-
(1,067)
Less: Tax benefit associated with release of capital loss carryforwards
(774)
-
-
-
-
Net Income excluding above items, including stock option expense
119,589
$
156,652
$
163,856
$
203,697
$
171,149
$
Diluted EPS:
EPS, per GAAP
1.03
$
1.32
$
1.36
$
1.56
$
1.34
$
Plus: Impairment of investments, net of recoveries
0.05
-
0.01
0.15
0.02
Plus: Impairment of intangible asset
-
-
-
0.01
0.09
Plus: Restructuring charges
-
-
-
-
0.03
Plus: Bad debt expense associated with Accentia
-
-
-
0.04
-
Less: Gain on sale/exchange of assets
(0.04)
-
-
-
-
Less: Tax benefit on impairment of investments, net of recoveries
(0.02)
-
(0.01)
(0.05)
-
Less: Tax benefit on impairment of intangible asset
-
-
-
-
(0.02)
Less: Tax benefit on bad debt expense associated with Accentia
-
-
-
(0.01)
-
Less: Tax benefit on restructuring charge
-
-
-
-
(0.01)
Plus: Tax expense on gain on sale/exchange of assets
0.01
-
-
-
-
Less: Tax benefit associated with release of capital loss carryforwards
-
-
-
-
-
EPS excluding above items, including stock option expense
1.03
$
1.32
$
1.36
$
1.70
$
1.45
$
Diluted Shares Outstanding, per GAAP
116,434
118,536
119,953
120,097
118,769
Note:
2008 revenue has been restated to exclude discontinued operations
|
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Net Revenue, Net Income and EPS (2000-2004)
3
(in thousands, except per share data)
2000
2001
2002
2003
2004
Net Revenue:
Net Revenue, per GAAP
372,650
$
460,633
$
608,657
$
726,983
$
841,256
$
Less: Reimbursed out-of-pockets
27,332
29,092
46,008
57,485
67,316
Net Revenue less reimbursed out-of-pockets
345,318
431,541
562,649
669,498
773,940
Net Income:
Net Income, per GAAP
28,934
$
44,666
$
33,681
$
41,410
$
91,684
$
Plus: Costs to acquire dapoxetine
patents
-
-
-
65,000
-
Plus: Impairment of equity investments
-
-
33,787
10,078
2,000
Plus: Restructuring charges
-
-
-
1,917
2,619
Less: Gain on sale/exchange of assets
-
-
-
(5,738)
-
Less:
Tax
benefit
on
costs
to
acquire
dapoxetine
patents
-
-
-
(24,179)
-
Less: Tax benefit on impairments and restructuring charges
-
-
(2,300)
(4,312)
(907)
Plus: Tax expense on gain on sale/exchange of assets
-
-
-
2,065
-
Plus: Tax expense on gain on exchange of assets
-
-
-
-
-
Less: Tax benefit associated with release of capital loss carryforwards
-
-
-
-
(3,721)
Net Income excluding above items, including stock option expense
28,934
$
44,666
$
65,168
$
86,241
$
91,675
$
Diluted EPS:
EPS, per GAAP
0.29
$
0.43
$
0.30
$
0.37
$
0.81
$
Plus: Costs to acquire dapoxetine
patents
-
-
-
0.58
-
Plus: Impairment of equity investments
-
-
0.30
0.09
0.02
Plus: Restructuring charges
-
-
-
0.02
0.02
Less: Gain on sale/exchange of assets
-
-
-
(0.05)
-
Less:
Tax
benefit
on
costs
to
acquire
dapoxetine
patents
-
-
-
(0.22)
-
Less: Tax benefit on impairments and restructuring charges
-
-
(0.02)
(0.04)
(0.01)
Plus: Tax expense on gain on sale/exchange of assets
-
-
-
0.02
-
Plus: Tax expense on gain on exchange of assets
-
-
-
-
-
Less: Tax benefit associated with release of capital loss carryforwards
-
-
-
-
(0.03)
EPS excluding above items, including stock option expense
0.29
$
0.43
$
0.58
$
0.77
$
0.81
$
Diluted Shares Outstanding, per GAAP
100,708
104,988
110,686
112,572
113,808 |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Gross Margin and Operating Margin (FY’08 & FY’09)
4
(in thousands)
Item
2008
2009
Net Revenue:
Net Revenue, per GAAP
1
1,551,384
$
1,416,770
$
Less: Reimbursed out-of-pockets
2
117,132
101,003
Net Revenue less reimbursed out-of-pockets
3
1,434,252
$
1,315,767
$
Direct Costs:
Direct Costs, per GAAP
4
807,170
$
731,755
$
Less: Reimbursable out-of-pocket expenses
5
117,132
101,003
Less: Stock option expense
5
9,694
8,271
Direct Costs excluding reimbursables and stock option expense
6
680,344
$
622,481
$
Gross Margin ($):
Gross Margin, per GAAP
7
744,214
$
685,015
$
Item #1- Item #4
Gross Margin, excluding reimbursables and stock option expense
8
753,908
$
693,286
$
Item #3- Item #6
Gross Margin (%):
Gross Margin, per GAAP
48.0%
48.4%
Item #7/ Item #1
Gross Margin, excluding reimbursables and stock option expense
52.6%
52.7%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
282,397
$
192,890
$
Plus: Stock option expense
23,381
18,108
Plus: Impairment of intangible asset
1,607
10,361
Plus: Restructuring charges
-
3,892
Plus: Bad debt expense associated with
Accentia 4,708
-
Operating Income, excluding reimbursables and above items
10
312,093
$
225,251
$
Operating Margin (%):
Operating Margin, per GAAP
18.2%
13.6%
Item #9/ Item #1
Operating Margin, excluding reimbursables and above items
21.8%
17.1%
Item #10/ Item #3
Note:
2008 has been restated to exclude discontinued operations
Twelve Months Ended
December 31, |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Development Segment
Gross Margin and Operating Margin (FY’08 & FY’09)
5
(in thousands)
Item
2008
2009
Net Revenue:
Net Revenue, per GAAP
1
1,532,679
$
1,410,294
$
Less: Reimbursed out-of-pockets
2
116,850
100,840
Net Revenue less reimbursed out-of-pockets
3
1,415,829
$
1,309,454
$
Direct Costs:
Direct Costs, per GAAP
4
806,274
$
730,962
$
Less: Reimbursable out-of-pocket expenses
5
116,850
100,840
Less: Stock option expense
9,239
7,875
Direct
Costs,
excluding
reimbursables
and
stock
option
expense
6
680,185
$
622,247
$
Gross Margin ($):
Gross Margin, per GAAP
7
726,405
$
679,332
$
Item #1-
Item #4
Gross
Margin,
excluding
reimbursables
and
stock
option
expense
8
735,644
$
687,207
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
47.4%
48.2%
Item #7/ Item #1
Gross
Margin,
excluding
reimbursables
and
stock
option
expense
52.0%
52.5%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
272,540
$
223,165
$
Plus: Stock option expense
23,074
17,763
Plus: Restructuring charges
-
3,892
Plus: Bad debt expense associated with Accentia
4,708
-
Operating
Income,
excluding
reimbursables
and
above
items
10
300,322
$
244,820
$
Operating Margin (%):
Operating Margin, per GAAP
17.8%
15.8%
Item #9/ Item #1
Operating
Margin,
excluding
reimbursables
and
above
items
21.2%
18.7%
Item #10/ Item #3
Note:
2008 has been restated to exclude discontinued operations
Twelve Months Ended
December 31, |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Gross Margin and Operating Margin (Q1’09 & Q1’10)
6
(in thousands)
Item
2009
2010
Net Revenue:
Net Revenue, per GAAP
1
364,370
$
346,769
$
Less: Reimbursed out-of-pockets
2
23,854
22,649
Net Revenue less reimbursed out-of-pockets
3
340,516
$
324,120
$
Direct Costs:
Direct Costs, per GAAP
4
188,318
$
182,802
$
Less: Reimbursable out-of-pocket expenses
5
23,854
22,649
Less: Stock option expense
2,636
2,173
Direct
Costs,
excluding
reimbursables
and
stock
option
expense
6
161,828
$
157,980
$
Gross Margin ($):
Gross Margin, per GAAP
7
176,052
$
163,967
$
Item #1-
Item #4
Gross
Margin,
excluding
reimbursables
and
stock
option
expense
8
178,688
$
166,140
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
48.3%
47.3%
Item #7/ Item #1
Gross
Margin,
excluding
reimbursables
and
stock
option
expense
52.5%
51.3%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
66,588
$
26,071
$
Plus: Stock option expense
4,805
5,420
Operating
Income,
excluding
reimbursables
and
stock
option
expense
10
71,393
$
31,491
$
Operating Margin (%):
Operating Margin, per GAAP
18.3%
7.5%
Item #9/ Item #1
Operating
Margin,
excluding
reimbursables
and
stock
option
expense
21.0%
9.7%
Item #10/ Item #3
Note:2009 has been restated to exclude discontinued operations
Three Months Ended
March 31, |
 A leading
global CRO Direct Costs, excluding reimbursables and stock option expense
GAAP/Non-GAAP Reconciliation
Development Segment
Gross Margin and Operating Margin (Q1’09 & Q1’10)
7
(in thousands)
Item
2009
2010
Net Revenue:
Net Revenue, per GAAP
1
359,208
$
346,476
$
Less: Reimbursed out-of-pockets
2
23,854
22,649
Net Revenue less reimbursed out-of-pockets
3
335,354
$
323,827
$
Direct Costs:
Direct Costs, per GAAP
4
188,023
$
182,650
$
Less: Reimbursable out-of-pocket expenses
5
23,854
22,649
Less: Stock option expense
2,442
2,036
6
161,727
$
157,965
$
Gross Margin ($):
Gross Margin, per GAAP
7
171,185
$
163,826
$
Item #1-
Item #4
8
173,627
$
165,862
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
47.7%
47.3%
Item #7/ Item #1
51.8%
51.2%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
62,612
$
36,811
$
Plus: Stock option expense
4,656
5,282
10
67,268
$
42,093
$
Operating Margin (%):
Operating Margin, per GAAP
17.4%
10.6%
Item #9/ Item #1
20.1%
13.0%
Item #10/ Item #3
Note:
2009 has been restated to exclude discontinued operations
Three Months Ended
March 31,
Gross Margin, excluding reimbursables and stock option expense
Gross Margin, excluding reimbursables and stock option expense
Operating Income, excluding reimbursables and stock option expense
Operating Margin, excluding reimbursables and stock option expense |
 A leading
global CRO 8
GAAP/Non-GAAP Reconciliation
Gross Margin and Operating Margin (Q2’09 & Q2’10)
(in thousands)
Item
2009
2010
Net Revenue:
Net Revenue, per GAAP
1
354,598
$
369,919
$
Less: Reimbursed out-of-pockets
2
24,257
28,423
Net Revenue less reimbursed out-of-pockets
3
330,341
$
341,496
$
Direct Costs:
Direct Costs, per GAAP
4
182,888
$
192,170
$
Less: Reimbursable out-of-pocket expenses
5
24,257
28,423
Less: Stock option expense
1,867
1,211
6
156,764
$
162,536
$
Gross Margin ($):
Gross Margin, per GAAP
7
171,710
$
177,749
$
Item #1-
Item #4
8
173,577
$
178,960
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
48.4%
48.1%
Item #7/ Item #1
52.5%
52.4%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
58,264
$
40,084
$
Plus: Stock option expense
4,397
3,768
Operating Income, excluding reimbursables
and stock option expense
10
62,661
$
43,852
$
Operating Margin (%):
Operating Margin, per GAAP
16.4%
10.8%
Item #9/ Item #1
Operating Margin, excluding reimbursables
and stock option expense
19.0%
12.8%
Item #10/ Item #3
Note:
2009 has been restated to exclude discontinued operations
Three Months Ended
June 30,
Direct Costs, excluding reimbursables and stock option expense Gross Margin,
excluding reimbursables and stock option expense
Gross Margin, excluding reimbursables and stock option expense
|
 A leading
global CRO 9
GAAP/Non-GAAP Reconciliation
Development Segment
Gross Margin and Operating Margin (Q2’09 & Q2’10)
(in thousands)
Item
2009
2010
Net Revenue:
Net Revenue, per GAAP
1
354,436
$
362,202
$
Less: Reimbursed out-of-pockets
2
24,257
28,423
Net Revenue less reimbursed out-of-pockets
3
330,179
$
333,779
$
Direct Costs:
Direct Costs, per GAAP
4
182,743
$
192,196
$
Less: Reimbursable out-of-pocket expenses
5
24,257
28,423
Less: Stock option expense
1,788
1,242
6
156,698
$
162,531
$
Gross Margin ($):
Gross Margin, per GAAP
7
171,693
$
170,006
$
Item #1-
Item #4
8
173,481
$
171,248
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
48.4%
46.9%
Item #7/ Item #1
52.5%
51.3%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
58,942
$
43,085
$
Plus: Stock option expense
4,319
3,799
10
63,261
$
46,884
$
Operating Margin (%):
Operating Margin, per GAAP
16.6%
11.9%
Item #9/ Item #1
19.2%
14.0%
Item #10/ Item #3
Note:
2009 has been restated to exclude discontinued operations
Three Months Ended
June 30,
Direct Costs, excluding reimbursables and stock option expense Gross Margin, excluding
reimbursables and stock option expense Gross Margin, excluding reimbursables and stock option
expense Operating Income, excluding reimbursables and stock option expense
Gross Margin, excluding reimbursables and stock option expense |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Operating Margin (Q3’09 & Q3’10)
10
(in thousands)
Item
2009
2010
Net Revenue:
Net Revenue, per GAAP
1
340,400
$
365,375
$
Less: Reimbursed out-of-pockets
2
24,117
25,985
Net Revenue less reimbursed out-of-pockets
3
316,283
$
339,390
$
Operating Income:
Operating Income, per GAAP
4
51,627
$
56,835
$
Plus: Stock option expense
4,324
3,889
Plus: Restructuring costs
3,892
-
Operating Income, excluding reimbursables, stock option expense
and restructuring costs
5
59,843
$
60,724
$
Operating Margin (%):
Operating Margin, per GAAP
15.2%
15.6%
Item #4/ Item #1
Operating Margin, excluding reimbursables, stock option expense
and restructuring costs
18.9%
17.9%
Item #5/ Item #3
Note:
2009 has been restated to exclude discontinued operations
Three Months Ended
September 30, |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Net
Revenue,
Operating
Income
and
Operating
Margin
(Q1'09
-
Q4'09)
11
(in thousands)
Item
Q1'09
Q2'09
Q3'09
Q4'09
Net Revenue:
Net Revenue, per GAAP
1
364,370
$
354,598
$
340,400
$
357,239
$
Less: Reimbursed out-of-pockets
23,854
24,257
24,117
28,612
Less: Discovery Sciences revenue
5,162
162
442
547
Net Revenue less above items
2
335,354
$
330,179
$
315,841
$
328,080
$
Net Revenue by segment (less above items):
Clinical Development Services Net Revenue
3
268,092
$
260,079
$
249,981
$
256,713
$
Laboratory Services Net Revenue
4
67,262
70,100
65,860
71,367
Net Revenue less above items
335,354
$
330,179
$
315,841
$
328,080
$
Operating Income:
Operating Income, per GAAP
5
66,588
$
58,264
$
51,627
$
37,826
$
Less: Discovery Sciences operating (income) loss
(4,125)
600
323
11,426
Plus: Stock option expense
4,805
4,397
4,324
4,572
Plus: Restructuring costs
-
-
3,892
-
Operating Income excluding above items
6
67,268
$
63,261
$
60,166
$
53,824
$
Operating Income by segment (excluding above items):
Clinical Development Services Operating Income
7
51,866
$
48,030
$
46,986
$
41,037
$
Laboratory Services Operating Income
8
15,402
15,231
13,180
12,787
Operating Income excluding above items
67,268
$
63,261
$
60,166
$
53,824
$
Operating Margin (%):
Operating Margin, per GAAP
18.3%
16.4%
15.2%
10.6%
Item 5/Item 1
Operating Margin, excluding above items
20.1%
19.2%
19.0%
16.4%
Item 6/Item 2
Clinical Development Services Operating Margin, excluding above items
19.3%
18.5%
18.8%
16.0%
Item 7/Item 3
Laboratory Services Operating Margin, excluding above items
22.9%
21.7%
20.0%
17.9%
Item 8/Item 4 |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Net Revenue, Operating Income and Operating Margin (Q1'10
-
Q3'10)
12
(in thousands)
Item
Q1'10
Q2'10
Q3'10
Net Revenue:
Net Revenue, per GAAP
1
346,769
$
369,919
$
365,375
$
Less: Reimbursed out-of-pockets
22,649
28,423
25,985
Less: Discovery Sciences revenue
293
7,717
-
Net Revenue less above items
2
323,827
$
333,779
$
339,390
$
Net Revenue by segment (less above items):
Clinical Development Services Net Revenue
3
249,294
$
255,436
$
260,345
$
Laboratory Services Net Revenue
4
74,533
78,343
79,045
Net Revenue less above items
323,827
$
333,779
$
339,390
$
Operating Income:
Operating Income, per GAAP
5
27,682
$
40,084
$
56,835
$
Less: Discovery Sciences operating (income) loss
8,725
3,032
-
Plus: Stock option expense
5,420
3,768
3,889
Operating Income excluding above items
6
41,827
$
46,884
$
60,724
$
Operating Income by segment (excluding above items):
Clinical Development Services Operating Income
7
31,749
$
34,628
$
47,186
$
Laboratory Services Operating Income
8
10,078
12,256
13,538
Operating Income excluding above items
41,827
$
46,884
$
60,724
$
Operating Margin (%):
Operating Margin, per GAAP
8.0%
10.8%
15.6%
Item 5/Item 1
Operating Margin, excluding above items
12.9%
14.0%
17.9%
Item 6/Item 2
Clinical Development Services Operating Margin, excluding above items
12.7%
13.6%
18.1%
Item 7/Item 3
Laboratory Services Operating Margin, excluding above items
13.5%
15.6%
17.1%
Item 8/Item 4 |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Gross Margin and Operating Margin (Q4’08 & Q4’09)
13
(in thousands)
Item
2008
2009
Net Revenue:
Net Revenue, per GAAP
1
363,139
$
357,402
$
Less: Reimbursed out-of-pockets
2
24,321
28,775
Net Revenue less reimbursed out-of-pockets
3
338,818
$
328,627
$
Direct Costs:
Direct Costs, per GAAP
4
179,510
$
185,952
$
Less: Reimbursable out-of-pocket expenses
5
24,321
28,775
Less: Stock option expense
2,334
1,994
6
152,855
$
155,183
$
Gross Margin ($):
Gross Margin, per GAAP
7
183,629
$
171,450
$
Item #1-
Item #4
8
185,963
$
173,444
$
Item #3-
Item #6
Gross Margin (%):
Gross Margin, per GAAP
50.6%
48.0%
Item #7/ Item #1
54.9%
52.8%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
71,709
$
23,907
$
Plus: Stock option expense
5,159
4,572
Plus: Bad debt expense associated with Accentia
4,708
-
Plus: Impairment on intangible asset
-
10,361
Operating
Income,
excluding
reimbursables
and
above items
10
81,576
$
38,840
$
Operating Margin (%):
Operating Margin, per GAAP
19.8%
6.7%
Item #9/ Item #1
Operating
Margin,
excluding
reimbursables
and
above items
24.1%
11.8%
Item #10/ Item #3
Note:
2008 has been restated to exclude discontinued operations
Three Months Ended
December 31,
Direct Costs, excluding reimbursables and stock option expense
Gross Margin, excluding reimbursables and stock option expense
Gross Margin, excluding reimbursables and stock option expense
|
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Development Segment
Gross Margin and Operating Margin (Q4’08 & Q4’09)
14
(in thousands)
Item
2008
2009
Net Revenue:
Net Revenue, per GAAP
1
362,814
$
356,692
$
Less: Reimbursed out-of-pockets
2
24,105
28,612
Net Revenue less reimbursed out-of-pockets
3
338,709
$
328,080
$
Direct Costs:
Direct Costs, per GAAP
4
179,046
$
185,732
$
Less: Reimbursable out-of-pocket expenses
5
24,105
28,612
Less: Stock option expense
2,132
1,954
Direct Costs, excluding reimbursables and stock option expense
6
152,809
$
155,166
$
Gross Margin ($):
Gross Margin, per GAAP
7
183,768
$
170,960
$
Item #1- Item #4
Gross Margin, excluding reimbursables and stock option expense
8
185,900
$
172,914
$
Item #3- Item #6
Gross Margin (%):
Gross Margin, per GAAP
50.7%
47.9%
Item #7/ Item #1
Gross Margin, excluding reimbursables and stock option expense
54.9%
52.7%
Item #8/ Item #3
Operating Income:
Operating Income, per GAAP
9
72,636
$
49,406
$
Plus: Stock option expense
4,960
4,528
Plus: Bad debt expense associated with Accentia
4,708
-
Operating Income, excluding reimbursables and above items
10
82,304
$
53,934
$
Operating Margin (%):
Operating Margin, per GAAP
20.0%
13.9%
Item #9/ Item #1
Operating Margin, excluding reimbursables and above items
24.3%
16.4%
Item #10/ Item #3
Note:
2008 has been restated to exclude discontinued operations
Three Months Ended
December 31, |
 A leading
global CRO GAAP/Non-GAAP Reconciliation
Net Income and EPS (Q4’08 & Q4’09)
15
(in thousands, except per share data)
2008
2009
Net Income, per GAAP
47,198
$
18,991
$
Plus: Impairment of investments
2,306
2,076
Plus: Impairment of intangibles
-
10,361
Plus: Bad debt expense associated with Accentia
4,708
-
Less: Tax benefit on impairment of investments
(738)
(411)
Less: Tax benefit on impairment of intangibles
-
(2,052)
Less: Tax benefit on bad debt expense associated with
Accentia (1,507)
-
Net income excluding above items
51,967
$
28,965
$
Diluted EPS, per GAAP
0.40
$
0.16
$
Plus: Impairment of investments
0.02
0.02
Plus: Impairment of intangibles
-
0.08
Plus: Bad debt expense associated with Accentia
0.04
-
Less: Tax benefit on impairment of investments
(0.01)
-
Less: Tax benefit on impairment of intangibles
-
(0.02)
Less: Tax benefit on bad debt expense associated with
Accentia (0.01)
-
Diluted EPS excluding above items
0.44
$
0.24
$
Diluted Shares Outstanding, per GAAP
118,837
118,918
Three Months Ended
December 31, |