PRINCETON, N.J., July 29, 2014 /PRNewswire/ -- Covance Inc. (NYSE: CVD) today reported results for its second quarter ended June 30, 2014. Net revenue was $639 million, representing 8.0% growth from the second quarter of 2013. On a GAAP basis, the company reported earnings of $0.29 per diluted share in the second quarter. The company reported pro forma earnings per diluted share of $0.95, up 21.5% over the second quarter of 2013. Pro forma results exclude asset impairment charges totaling $52.6 million, or $0.61 per share, and charges associated with restructuring and other cost reduction actions totaling $4.2 million or $0.05 per share.
"In the second quarter, a stronger-than-expected performance in Early Development and continued strong growth in central laboratories more than offset lower-than-expected growth in clinical development, leading to year-on-year revenue growth of 8%, expanded pro forma operating margins of 11.9%, and a 21.5% year-on-year increase in pro forma EPS," said Joe Herring, Chairman and Chief Executive Officer. "Commercial performance strengthened from the first quarter, with second quarter adjusted net orders of $773 million resulting in an adjusted net book-to-bill of 1.21 to 1.
"In Early Development, revenue of $231.2 million grew 7.7% year-on-year and 5.9% sequentially while pro forma operating margin increased 200 basis points year-on-year and 360 basis points sequentially to 13.3%. These better-than-expected results were driven by growth in demand for toxicology and pharmaceutical chemistry services, and continued strength in clinical pharmacology services.
"Late-Stage Development second quarter revenue grew 8.1% year-on-year to $408.3 million and pro forma operating margins were 22.1%, up 70 basis points from a year ago, but down 110 basis points from the strong first quarter margins on higher IT spending. Central laboratories and clinical development grew 11% and 4%, respectively, and market access services resumed year-on-year growth.
"Looking ahead, we expect increases of a few cents in earnings per share in both the third and fourth quarter. We now expect 2014 revenue growth of 6% to 8% and pro forma diluted earnings per share of $3.78 to $3.92 (excluding the gain on sale, costs associated with our restructuring activities, asset impairment charges and assuming foreign exchange rates remain at June 30, 2014 levels)."
Consolidated Results
($ in millions except EPS) 2Q14 2Q13 Change YTD14 YTD13 Change ------------------------- ---- ---- ------ ----- ----- ------ Total Revenues $687.1 $644.0 $1,353.4 $1,278.3 Less: Reimbursable Out-of-Pockets $47.6 $51.7 $93.9 $105.8 Net Revenues $639.5 $592.3 8.0% $1,259.5 $1,172.5 7.4% Operating Income $19.3 $51.5 (62.6%) $86.2 $99.8 (13.6%) Operating Margin 3.0% 8.7% 6.8% 8.5% Net Income $16.9 $41.0 (58.7%) $67.8 $89.2 (24.0%) Diluted Earnings per Share $0.29 $0.72 (59.2%) $1.17 $1.58 (25.5%) -------------------------- ----- ----- ------ ----- ----- ------ Restructuring Costs ($4.2) ($6.0) ($8.3) ($12.2) Asset Impairments ($52.6) - ($52.6) - Operating Income, excluding items* $76.0 $57.5 32.2% $147.1 $111.9 31.4% Operating Margin, excluding items* 11.9% 9.7% 11.7% 9.5% Gain on Sale of Business/ Investment - $0.7 $1.6 $16.4 Net Income, excluding items* $54.7 $44.5 22.9% $107.0 $86.8 23.3% Diluted EPS, excluding items* $0.95 $0.78 21.5% $1.85 $1.53 20.8% ---------------------------- ----- ----- ---- ----- ----- ----
* See attached pro forma income statements for reconciliation of 2014 and 2013 GAAP to pro forma amounts.
Operating Segment Results
Early Development
($ in millions) 2Q14 2Q13 Change YTD14 YTD13 Change -------------- ---- ---- ------ ----- ----- ------ Net Revenues $231.2 $214.6 7.7% $449.4 $421.9 6.5% Operating Income (Loss) ($22.4) $21.9 n/c ($2.9) $38.4 n/c Operating Margin (9.7%) 10.2% (0.7%) 9.1% ---------------- ----- ---- ----- --- Restructuring Costs ($0.7) ($2.3) ($2.3) ($5.9) Asset Impairments ($52.6) ($52.6) Operating Income, excluding items $30.8 $24.2 27.1% $51.9 $44.3 17.1% Operating Margin, excluding items 13.3% 11.3% 11.5% 10.5% ----------------- ---- ---- ---- ----
The Early Development segment includes preclinical toxicology, analytical chemistry, clinical pharmacology, discovery support, and research products. Net revenues in the second quarter of 2014 increased 7.7% year-on-year to $231.2 million, as strong growth in clinical pharmacology, toxicology and pharmaceutical chemistry services more than offset a decline in discovery support and the impact of the sale of our Seattle genomics laboratory. In the quarter, foreign exchange favorably impacted year-on-year revenue growth by 250 basis points. Sequentially, revenue increased by $13.0 million from the first quarter on continued strength in clinical pharmacology and a rebound in toxicology and pharmaceutical chemistry services.
GAAP operating loss in the second quarter of 2014 was $22.4 million, and included non-cash asset impairments totaling $52.6 million, associated primarily with the company's Chandler, Arizona facility, and $0.7 million in costs associated with our restructuring and cost reduction actions. This compares to operating income of $21.9 million in the second quarter of 2013, which included charges associated with restructuring and other cost reduction actions of $2.3 million. Pro forma operating income, excluding these items, was $30.8 million in the second quarter of this year, a 27.1% increase from the second quarter of 2013. Pro forma operating margins were 13.3% in the second quarter of this year, versus 11.3% in the second quarter of 2013 and 9.7% last quarter. The sequential increase in pro forma operating income was driven by the rebound in toxicology and pharmaceutical chemistry services and continued strength in clinical pharmacology.
Late-Stage Development
($ in millions) 2Q14 2Q13 Change YTD14 YTD13 Change -------------- ---- ---- ------ ----- ----- ------ Net Revenues $408.3 $377.7 8.1% $810.1 $750.6 7.9% Operating Income $87.1 $79.5 9.5% $180.1 $162.4 10.9% Operating Margin 21.3% 21.0% 22.2% 21.6% ---------------- ---- ---- ---- ---- Restructuring Costs ($3.1) ($1.4) ($3.4) ($3.3) Operating Income, excluding items $90.2 $80.9 11.5% $183.5 $165.7 10.7% Operating Margin, excluding items 22.1% 21.4% 22.7% 22.1% ----------------- ---- ---- ---- ----
The Late-Stage Development segment includes central laboratory, Phase IIb-IV clinical development, and market access services. Net revenues for the second quarter of 2014 grew 8.1% year-on-year to $408.3 million, a sequential increase of $6.4 million from the first quarter level. In the quarter, foreign exchange favorably impacted year-over-year revenue growth by 270 basis points. Year-over-year growth was primarily driven by central laboratories and market access services. Sequentially, growth in central laboratories more than offset a decline in clinical development services.
Operating income for the second quarter was $87.1 million on a GAAP basis and included $3.1 million in costs associated with our restructuring and cost reduction actions. On a pro forma basis, operating income was $90.2 million, up 11.5% year-over-year led by clinical development and central laboratory services, and down from the $93.3 million delivered last quarter. Pro forma operating margins expanded to 22.1% for the second quarter of 2014, up from 21.4% last year, but down from the very strong 23.2% last quarter on increased IT operating expense.
Corporate Information
The company reported second quarter adjusted net orders of $773 million. Backlog at June 30, 2014 was $6.92 billion compared to $6.90 billion at March 31, 2014 and $6.73 billion at June 30, 2013. Backlog was negatively impacted in the quarter by a $23 million foreign exchange headwind.
Corporate expenses totaled $45.4 million in the second quarter of 2014 (including $0.4 million in restructuring and other cost reduction actions) versus $45.6 million last quarter (including $2.3 million in restructuring and other cost reduction actions) and $49.9 million (including $2.3 million in restructuring and other cost reduction actions) in the second quarter of 2013. On a pro forma basis, excluding these costs, corporate spending was $45.0 million or 7.0% of net revenue in the second quarter of 2014 versus $43.4 million or 7.0% of net revenue last quarter and $47.6 million or 8.0% of net revenue in the second quarter of 2013. The sequential increase was driven by higher IT operating expense while the decline from last year was driven by higher incentive compensation expense in the 2013 period.
Cash, cash equivalents, and short-term investments at June 30, 2014 were $648 million compared to $660 million at March 31, 2014 and $446 million at June 30, 2013. Free cash flow (defined as operating cash flow less capital expenditures) for the second quarter of 2014 was $30 million, consisting of operating cash flow of $68 million less capital expenditures of $38 million. Year-to-date free cash flow was negative $76 million, consisting of operating cash flow of negative $3 million less capital expenditures of $73 million. We continue 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.
In the second quarter, the company repurchased $75 million of its common stock. Debt outstanding increased to $290 million, up $40 million from March 31, 2014.
Net Days Sales Outstanding (DSO) were 45 days at June 30, 2014 compared to 38 days at March 31, 2014 and 48 days at June 30, 2013.
The pro forma effective tax rate in the second quarter was 23.7% and is expected to be approximately 24% for the remainder of 2014.
The Company's investor conference call will be webcast on July 30 at 9:30 am ET. Management's commentary and presentation slides will be available through www.covance.com.
Covance, the world's most comprehensive drug development company and a leader in nutritional analysis, is dedicated to advancing healthcare and delivering Solutions Made Real(TM). The company, headquartered in Princeton, New Jersey, has annual revenues greater than $2.4 billion and more than 12,500 employees located in over 60 countries. Information on Covance's solutions, recent press releases, and SEC filings can be obtained through its website at www.covance.com.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss or delay of large studies, risks associated with acquisitions and investments, the Company's ability to increase order volume, the pace of translation of orders into revenue in late-stage development services, testing mix and geographic mix of kit receipts in central laboratories, fluctuations in currency exchange rates, the realization of savings from the Company's announced restructuring actions, the cost and pace of completion of our information technology projects and the realization of benefits therefrom, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Financial Exhibits Follow
COVANCE INC. CONSOLIDATED INCOME STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (Dollars in thousands, except per share data) (UNAUDITED) Three Months Ended June 30 Six Months Ended June 30 -------------------------- ------------------------ 2014 2013 2014 2013 ---- ---- ---- ---- Net revenues $639,456 $592,298 $1,259,508 $1,172,497 Reimbursable out-of-pocket expenses 47,652 51,678 93,888 105,814 Total revenues 687,108 643,976 1,353,396 1,278,311 ------- ------- --------- --------- Costs and expenses: Cost of revenue 446,659 419,115 879,212 830,459 Reimbursable out-of-pocket expenses 47,652 51,678 93,888 105,814 Selling, general and administrative 87,324 90,177 174,606 179,396 Depreciation and amortization 33,645 31,496 66,974 62,881 Impairment charges 52,564 - 52,564 - Total costs and expenses 667,844 (a) 592,466 (c) 1,267,244 (b) 1,178,550 (d) ------- ------- --------- --------- Income from operations 19,264 (a) 51,510 (c) 86,152 (b) 99,761 (d) Other expense (income), net: Interest expense, net 2,809 1,004 5,257 1,875 Foreign exchange transaction loss, net 1,542 694 1,944 1,029 Gain on sale of business - - (1,648) - Gain on sale of investments - (707) - (16,400) Other expense (income), net 4,351 991 (c) 5,553 (b) (13,496) (d) ----- --- ----- ------- Income before taxes 14,913 (a) 50,519 (c) 80,599 (b) 113,257 (d) Tax (benefit) expense (2,024) (a) 9,525 (c) 12,846 (b) 24,097 (d) Net income $16,937 (a) $40,994 (c) $67,753 (b) $89,160 (d) ======= ======= ======= ======= Basic earnings per share $0.30 (a) $0.75 (c) $1.22 (b) $1.64 (d) Weighted average shares outstanding -basic 55,556,218 54,662,093 55,618,752 54,434,563 Diluted earnings per share $0.29 (a) $0.72 (c) $1.17 (b) $1.58 (d) Weighted average shares outstanding -diluted 57,549,868 56,880,115 57,769,847 56,598,936 (a) Three months ended June 30, 2014 includes, as applicable, $52,564 in asset impairment charges ($34,866 net of tax) and $4,198 in charges associated with restructuring and other cost reduction actions ($2,864 net of tax). (b) Six months ended June 30, 2014 includes, as applicable, $52,564 in asset impairment charges ($34,866 net of tax), $8,336 in charges associated with restructuring and other cost reduction actions ($5,451 net of tax) and $1,648 gain on sale of certain assets of Genomics Laboratory ($1,033 net of tax). (c) Three months ended June 30, 2013 includes, as applicable, $6,013 in charges associated with restructuring and other cost reduction actions ($3,942 net of tax), and $707 gain on sale of investment ($460 net of tax). (d) Six months ended June 30, 2013 includes, as applicable, $12,183 in charges associated with restructuring and other cost reduction actions ($8,289 net of tax), and $16,400 gain on sale of investments ($10,654 net of tax). Excluding the impact of impairment charges, charges associated with restructuring and other cost reduction actions, gain on sale of business and gain on sale of investments, as applicable: --- Income from operations $76,026 $57,523 $147,052 $111,944 Taxes on income $17,008 $11,349 $32,814 $22,245 Net income $54,667 $44,476 $107,037 $86,795 Basic earnings per share $0.98 $0.81 $1.92 $1.59 Diluted earnings per share $0.95 $0.78 $1.85 $1.53
COVANCE INC. CONSOLIDATED BALANCE SHEETS JUNE 30, 2014 and DECEMBER 31, 2013 (Dollars in thousands) June 30 December 31 2014 2013 ---- ---- (UNAUDITED) ASSETS Current Assets: Cash & cash equivalents $536,009 $617,686 Short-term investments 111,844 111,359 Accounts receivable, net 355,272 331,815 Unbilled services 162,396 141,707 Inventory 52,429 48,257 Deferred income taxes 54,211 51,543 Prepaid expenses and other current assets 233,574 201,621 Total Current Assets 1,505,735 1,503,988 Property and equipment, net 875,977 913,612 Goodwill 118,581 109,820 Other assets 38,351 29,168 Total Assets $2,538,644 $2,556,588 LIABILITIES and STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $83,048 $59,713 Accrued payroll and benefits 123,122 170,806 Accrued expenses and other current liabilities 111,889 153,808 Unearned revenue 202,560 240,398 Short-term debt 40,000 - Income taxes payable 20,572 7,952 Total Current Liabilities 581,191 632,677 Long-term debt 250,000 250,000 Deferred income taxes 13,402 32,035 Other liabilities 78,378 76,630 Total Liabilities 922,971 991,342 Stockholders' Equity: Common stock 824 809 Paid-in capital 943,652 859,535 Retained earnings 1,847,586 1,779,833 Accumulated other comprehensive income 37,708 25,746 Treasury stock (1,214,097) (1,100,677) Total Stockholders' Equity 1,615,673 1,565,246 Total Liabilities and Stockholders' Equity $2,538,644 $2,556,588
COVANCE INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (Dollars in thousands) (UNAUDITED) Six Months Ended June 30 ------------------------ 2014 2013 ---- ---- Cash flows from operating activities: Net income $67,753 $89,160 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 66,974 62,881 Non-cash impairment charges 52,564 - Non-cash compensation expense associated with employee benefit and stock compensation plans 19,726 19,311 Deferred income tax benefit (21,571) (5,712) Gain on sale of business (1,648) - Gain on sale of investments - (16,400) Loss on disposal of property and equipment 333 375 Changes in operating assets and liabilities, net of businesses sold and acquired: Accounts receivable (22,552) (57,095) Unbilled services (20,575) (17,467) Inventory (5,029) 1,323 Accounts payable 23,288 18,312 Accrued liabilities (91,862) (45,470) Unearned revenue (37,867) (14,095) Income taxes 17,504 6,736 Other assets and liabilities, net (49,562) (44,441) Net cash used in operating activities (2,524) (2,582) ------ ------ Cash flows from investing activities: Capital expenditures (73,023) (68,433) Acquisition of business, net of cash acquired (8,403) - Proceeds from sale of business 8,429 - Proceeds from sale of investments - 17,781 Other, net - 394 Net cash used in investing activities (72,997) (50,258) ------- ------- Cash flows from financing activities: Net borrowings under revolving credit facility 40,000 5,000 Stock issued under option plans 59,118 40,226 Purchase of treasury stock (113,420) (27,118) Net cash (used in) provided by financing activities (14,302) 18,108 ------- ------ Effect of exchange rate changes on cash 8,146 (12,492) ----- ------- Net change in cash and cash equivalents (81,677) (47,224) Cash and cash equivalents, beginning of period 617,686 492,824 ------- ------- Cash and cash equivalents, end of period $536,009 $445,600 ======== ========
COVANCE INC. GAAP to Pro Forma Reconciliation Q2 2014 (Dollars in thousands, except per share data) (UNAUDITED) Adjustments ----------- GAAP Restructuring Other Pro Forma Items (2) and Other Cost Reduction Activities (1) --- Net revenues $639,456 $639,456 Reimbursable out-of- pocket expenses 47,652 47,652 Total revenues 687,108 - - 687,108 ------- --- --- ------- Costs and expenses: Cost of revenue 446,659 446,659 Reimbursable out-of- pocket expenses 47,652 47,652 Selling, general and administrative 87,324 (3,784) 83,540 Depreciation and amortization 33,645 (414) 33,231 Impairment charges 52,564 (52,564) - Total costs and expenses 667,844 (4,198) (52,564) 611,082 ------- ------ ------- ------- Income from operations 19,264 4,198 52,564 76,026 Other expense, net: Interest expense, net 2,809 2,809 Foreign exchange transaction loss, net 1,542 1,542 Other expense, net 4,351 - - 4,351 ----- --- --- ----- Income before taxes 14,913 4,198 52,564 71,675 Tax (benefit) expense (2,024) 1,334 17,698 17,008 Net income $16,937 $2,864 $34,866 $54,667 ======= ====== ======= ======= Basic earnings per share $0.30 $0.05 $0.63 $0.98 Weighted average shares outstanding -basic 55,556,218 55,556,218 55,556,218 55,556,218 Diluted earnings per share $0.29 $0.05 $0.61 $0.95 Weighted average shares outstanding -diluted 57,549,868 57,549,868 57,549,868 57,549,868 (1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. (2) Represents asset impairment charges.
COVANCE INC. GAAP to Pro Forma Reconciliation Q2 2013 (Dollars in thousands, except per share data) (UNAUDITED) Adjustments ----------- GAAP Restructuring Other Pro Forma Items (2) and Other Cost Reduction Activities (1) --- Net revenues $592,298 $592,298 Reimbursable out-of- pocket expenses 51,678 51,678 Total revenues 643,976 - - 643,976 ------- --- --- ------- Costs and expenses: Cost of revenue 419,115 419,115 Reimbursable out-of- pocket expenses 51,678 51,678 Selling, general and administrative 90,177 (5,428) 84,749 Depreciation and amortization 31,496 (585) 30,911 Total costs and expenses 592,466 (6,013) - 586,453 ------- ------ --- ------- Income from operations 51,510 6,013 - 57,523 Other expense, net: Interest expense, net 1,004 1,004 Foreign exchange transaction loss, net 694 694 Gain on sale of investment (707) 707 - Other expense, net 991 - 707 1,698 --- --- --- ----- Income before taxes 50,519 6,013 (707) 55,825 Taxes on income 9,525 2,071 (247) 11,349 Net income $40,994 $3,942 $(460) $44,476 ======= ====== ===== ======= Basic earnings per share $0.75 $0.07 $(0.01) $0.81 Weighted average shares outstanding -basic 54,662,093 54,662,093 54,662,093 54,662,093 Diluted earnings per share $0.72 $0.07 $(0.01) $0.78 Weighted average shares outstanding -diluted 56,880,115 56,880,115 56,880,115 56,880,115 (1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. (2) Represents gain on sale of investment.
COVANCE INC. GAAP to Pro Forma Reconciliation YTD Q2 2014 (Dollars in thousands, except per share data) (UNAUDITED) Adjustments ----------- GAAP Restructuring Other Pro Forma Items (2) and Other Cost Reduction Activities (1) --- Net revenues $1,259,508 $1,259,508 Reimbursable out-of- pocket expenses 93,888 93,888 Total revenues 1,353,396 - - 1,353,396 --------- --- --- --------- Costs and expenses: Cost of revenue 879,212 879,212 Reimbursable out-of- pocket expenses 93,888 93,888 Selling, general and administrative 174,606 (7,504) 167,102 Depreciation and amortization 66,974 (832) 66,142 Impairment charges 52,564 (52,564) - Total costs and expenses 1,267,244 (8,336) (52,564) 1,206,344 --------- ------ ------- --------- Income from operations 86,152 8,336 52,564 147,052 Other expense, net: Interest expense, net 5,257 5,257 Foreign exchange transaction loss, net 1,944 1,944 Gain on sale of business (1,648) 1,648 - Other expense, net 5,553 - 1,648 7,201 ----- --- ----- ----- Income before taxes 80,599 8,336 50,916 139,851 Taxes on income 12,846 2,885 17,083 32,814 Net income $67,753 $5,451 $33,833 $107,037 ======= ====== ======= ======== Basic earnings per share $1.22 $0.10 $0.61 $1.92 Weighted average shares outstanding -basic 55,618,752 55,618,752 55,618,752 55,618,752 Diluted earnings per share $1.17 $0.09 $0.59 $1.85 Weighted average shares outstanding -diluted 57,769,847 57,769,847 57,769,847 57,769,847 (1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. (2) Represents asset impairment charges $52,564 and gain on sale of business $1,648.
COVANCE INC. GAAP to Pro Forma Reconciliation YTD Q2 2013 (Dollars in thousands, except per share data) (UNAUDITED) Adjustments ----------- GAAP Restructuring Other Pro Forma Items (2) and Other Cost Reduction Activities (1) --- Net revenues $1,172,497 $1,172,497 Reimbursable out-of- pocket expenses 105,814 105,814 Total revenues 1,278,311 - - 1,278,311 --------- --- --- --------- Costs and expenses: Cost of revenue 830,459 830,459 Reimbursable out-of- pocket expenses 105,814 105,814 Selling, general and administrative 179,396 (10,101) 169,295 Depreciation and amortization 62,881 (2,082) 60,799 Total costs and expenses 1,178,550 (12,183) - 1,166,367 --------- ------- --- --------- Income from operations 99,761 12,183 - 111,944 Other (income) expense, net: Interest expense, net 1,875 1,875 Foreign exchange transaction loss, net 1,029 1,029 Gain on sale of investments (16,400) 16,400 - Other (income) expense, net (13,496) - 16,400 2,904 ------- --- ------ ----- Income before taxes 113,257 12,183 (16,400) 109,040 Taxes on income 24,097 3,894 (5,746) 22,245 Net income $89,160 $8,289 $(10,654) $86,795 ======= ====== ======== ======= Basic earnings per share $1.64 $0.15 $(0.20) $1.59 Weighted average shares outstanding -basic 54,434,563 54,434,563 54,434,563 54,434,563 Diluted earnings per share $1.58 $0.15 $(0.19) $1.53 Weighted average shares outstanding -diluted 56,598,936 56,598,936 56,598,936 56,598,936 (1) Represents costs incurred to better align capacity to preclinical market demand and reduce overall cost structure. (2) Represents gain on sale of investments.
SOURCE Covance Inc.